Southern District of New York

Damian Williams, the United States Attorney for the Southern District of New York, announced today that TREVOR MILTON was sentenced by U.S. District Judge Edgardo Ramos to four years in prison for engaging in securities and wire fraud in connection with his scheme to defraud and mislead investors about the development of products and technology by the company he founded, Nikola Corporation (“Nikola”).  MILTON was previously convicted after a one-month trial before Judge Ramos.

U.S. Attorney Damian Williams said: “Trevor Milton lied to investors again and again — on social media, on television, on podcasts, and in print.  But today’s sentence should be a warning to start-up founders and corporate executives everywhere — ‘fake it till you make it’ is not an excuse for fraud, and if you mislead your investors, you will pay a stiff price.”

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

From at least in or about November 2019 up through and including at least in or about September 2020, TREVOR MILTON engaged in a scheme to defraud investors by inducing them to purchase shares of Nikola Corporation, the electric- and hydrogen-powered vehicle and energy company that MILTON founded, through false and misleading statements regarding Nikola’s product and technology development.  MILTON’s scheme targeted individual, non-professional investors — so-called “retail investors” — by making false and misleading statements directly to the investing public through social media and television, print, and podcast interviews.

MILTON made these false and misleading statements regarding Nikola’s products and capabilities to induce retail investors to purchase Nikola stock.  MILTON took advantage of the fact that Nikola went public by merging with a Special Purpose Acquisition Company or “SPAC,” rather than through a traditional IPO, by making many of his false and misleading claims during a period where he would have not been allowed to make public statements under rules that govern IPOs.

MILTON made false claims regarding nearly all aspects of Nikola’s business, including: (i) false and misleading statements that the company had early success in creating a “fully functioning” semi-truck prototype known as the “Nikola One,” when MILTON knew the prototype was inoperable; (ii) false and misleading statements that Nikola had engineered and built an electric- and hydrogen-powered pickup truck known as “the Badger” from the “ground up” using Nikola’s parts and technology, when MILTON knew that was not true; (iii) false and misleading statements that Nikola was producing hydrogen and was doing so at a reduced cost, when MILTON knew that in fact no hydrogen was being produced at all by Nikola, at any cost; and (iv) false and misleading claims that reservations made for the future delivery of Nikola’s semi-trucks were binding orders representing billions in revenue, when the vast majority of those orders could be cancelled at any time. 

For example, when Nikola’s stock was publicly traded in 2020, MILTON claimed that Nikola had defied expectations as a young, disruptive company when it managed to build its prototype hydrogen-powered semi-truck, the Nikola One, which Nikola unveiled on or about December 1, 2016, at a large event that was filmed and broadcast on the internet.  During that event and later, MILTON claimed that the prototype Nikola One “fully functions and works, which is really incredible.”  In fact, the Nikola One prototype was never completed and never functioned.  Rather, the prototype was wholly missing significant parts, including gears and motors, and the control system (i.e., the system that communicates the driver’s directions to the vehicle) and other significant systems were missing or incomplete.  Later, in or about January 2018, and despite the fact that the Nikola One prototype was never completed or operational, MILTON published on Twitter and also published on his own Twitter account a video in which the Nikola One appeared to be driving on its own power down a road with no incline.  In fact, to film these clips, the Nikola One was towed to the top of a hill, at which point the “driver” released the brakes, and the truck rolled down the hill until being brought to a stop in front of the stop sign.

Also in 2020, at the same time he was spreading misinformation to investors generally to increase Nikola stock price, MILTON also made false and misleading statements about Nikola’s business and technology to a particular individual as part of an effort to use Nikola stock to make purchases, even when MILTON was subject to a lockup and so could not yet sell his stock.  Specifically, MILTON made misrepresentations about Nikola’s business to an individual in order to induce that individual to accept options to purchase Nikola stock (the value of which had already been inflated by MILTON’s scheme to defraud retail investors) in lieu of cash for the purchase of a substantial ranch in Utah.

*                *                *

In addition to the prison sentence, MILTON, 41, of Alpine, Wyoming, was sentenced to three years of supervised release, ordered to forfeit a property in Utah, and ordered to pay a fine of $1 million.  Judge Ramos will set restitution in a future proceeding.

Mr. Williams praised the outstanding work of the U.S. Postal Inspection Service, which jointly conducted the investigation in this case with special agents from the U.S. Attorney’s Office.  Mr. Williams further thanked the U.S. Securities and Exchange Commission, which filed a parallel civil action, for its cooperation.

The prosecution of this case is being overseen by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Matthew Podolsky and Nicolas Roos are in charge of the case.

Damian Williams, the United States Attorney for the Southern District of New York, announced that BRADLEY PIERRE pled guilty today to conspiracy to commit bribery and conspiracy to defraud the Internal Revenue Service (“IRS”) in connection with his orchestration of a $60 million fraud targeting No-Fault automobile insurance companies. PIERRE pled guilty before the Honorable Paul G. Gardephe and is scheduled to be sentenced on May 7, 2024.

U.S. Attorney Damian Williams said: “For over a decade, Bradley Pierre led one of the largest No-Fault insurance frauds in the history of New York, bribing medical professionals and others, scamming insurance companies, defrauding the IRS, and ultimately denying many accident victims fair and proper treatment because of his rigged system. But innocent victims will not stand alone. Those who seek to shamelessly reap the benefits of scams like this will be brought to justice.”    

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

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

From at least in or about 2008 through in or about 2021, PIERRE agreed with others (the “Clinic Controllers”) to unlawfully own and run medical clinics located in the New York area including, among others, Veda Medical, Sky Medical, Sun Medical, and Rutland Medical (the “Clinics”).  PIERRE knew that clinics are unable to bill insurance companies for No-Fault benefits if the medical facilities are controlled by non-physicians.  PIERRE nonetheless agreed with others, including doctors, to submit bills to insurance companies falsely representing that the Clinics were owned and operated by licensed doctors, and for doctors to lie under oath during Examinations under Oath (“EUOs”) about the ownership, control, and finances of the Clinics.  PIERRE personally coached doctors to lie under oath in these EUOs.

PIERRE used his control of the Clinics for personal profit.  Between 2008 and 2021, PIERRE took over $20,000,000 from the Clinics by either transferring the funds directly to bank accounts under his control or using the Clinics' bank accounts to pay his personal finances.  PIERRE also used his control of the Clinics to steer prescriptions to pharmacies in return for over a million dollars in kickbacks and to steer patients to seek legal representation from his wife’s law firm, the Law Firm of Nonna Shikh (the“Shikh Firm”).  The Shikh Firm then filed lawsuits against insurance companies on these patients’ behalf.  PIERRE maintained an office at the Shikh Firm and was actively involved in the legal practice as a “manager.”

PIERRE used his control of the Clinics and his managerial role at the Shikh Firm to also steer patients to seek MRIs at a medical facility over which he exercised substantial control (the “MRI Facility”).  PIERRE also agreed with the purported sole owner of the MRI Facility, who was a doctor, that the doctor would falsely report injuries in MRI reports.  These falsified injuries allowed the Clinics to bill insurance companies for additional, unnecessary medical services and allowed attorneys to falsely claim injuries in lawsuits against insurance companies.  PIERRE and the doctor agreed that the doctor would lie to insurance companies during EUOs about PIERRE’s role in the MRI Facility. 

PIERRE hid his control over several of the Clinics and the MRI Facility using phony loan arrangements.  These agreements claimed that PIERRE was making non-recourse loans to the Clinics and the MRI Facility, which would only have to be paid back if insurance companies paid the medical practices’ claims.  The agreements also set PIERRE’s “fee” as twice the amount loaned to the practices.  However, in reality, PIERRE took almost $10,000,000 in excess of what these purported loan agreements permitted.

PIERRE further agreed to pay bribes to fill the Clinics and the MRI Facility with patients.  From at least in or about 2015 up to and including 2021, PIERRE agreed with others to pay bribes to hospital employees, 911 dispatchers, and other individuals (collectively, “lead sources”) for the confidential names and numbers of motor vehicle accident victims.  PIERRE agreed that others, including Anthony Rose, a/k/a “Todd Chambers,” would then call victims and lie to them to induce victims to receive medical treatment at the Clinics and legal representation from the Shikh Firm.  PIERRE helped Rose expand his bribery operation to New Jersey by recommending clinics and attorneys in the state that would pay kickbacks for referrals.  PIERRE also recommended that Rose open a shell company to hide the illegality of the payments, which Rose in fact did.  PIERRE paid Rose over $800,000 as part of the bribery scheme.

PIERRE further recruited his own lead sources to participate in the bribery scheme.  For instance, in or about 2017, PIERRE recruited Andrew Prime, knowing that Prime was bribing 911 operators and a hospital employee for confidential information.  PIERRE paid Prime over $800,000 as part of the bribery scheme.  PIERRE also personally recruited and bribed several of his own lead sources, including 911 operators and a source in 2019 that PIERRE codenamed the “Motherload” or “ML.”

PIERRE also agreed to bribe medical offices to send patients to the MRI Facility for MRIs.  These medical offices included, among others, Epione Medical Center and Modern Brooklyn Medical.  PIERRE facilitated these bribe payments through several intermediaries, including Anthony Rose, Jelani Wray, and others.  PIERRE paid Jelani Wray over $800,000 in connection with these bribes.

PIERRE then engaged in tax evasion.  PIERRE utilized two companies in connection with the healthcare fraud and bribery schemes: Medical Reimbursement Consultants (“MRC”) and Marketing 4 You (“M4Y”).  PIERRE hid income from the IRS by concealing multiple bank accounts for MRC and using a series of check cashers for checks made out to MRC and M4Y.  PIERRE also paid personal expenses from MRC and M4Y’s bank accounts but improperly reported these payments as “business expenses.”  These included payments for his wedding, home renovations, jewelry, furniture, luxury clothing, travel, and gifts.  In total, PIERRE underreported income, falsely reported expenses of over $4 million, and deprived the IRS of approximately $1.5 million in taxes due.

*                *                *

BRADLEY PIERRE, 41, of Closter, New Jersey, pled guilty to one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison, and one count of conspiracy to defraud the IRS, which carries a maximum sentence of five years in prison.

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

Mr. Williams praised the work of the Federal Bureau of Investigation and the Internal Revenue Service. 

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit and the White Plains Division.  Assistant U.S. Attorneys Mathew Andrews, Qais Ghafary, and Michael Lockard are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced that EARL INGARFIELD was sentenced to 30 months in prison for orchestrating multiple “pump and dump” stock fraud schemes designed to target retail investors and manipulate trading in penny stock shares, including a scheme to manipulate the shares of Suburban Minerals Corporation (“SUBB”) from which INGARFIELD made more than $1.4 million.  INGARFIELD previously pled guilty before U.S. District Judge Jed S. Rakoff, who imposed today’s sentence.

U.S. Attorney Damian Williams said: “Earl Ingarfield engaged in a classic pump and dump scheme that victimized innocent investors and undermined the integrity of our public markets.  Those who defraud investors by spreading false and misleading information for their own monetary gain will face stiff punishment for their crimes.”

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

From at least 2013 through March 2014, EARL INGARFIELD was the leader of multiple schemes to manipulate the stock of penny stocks, including the price of SUBB, a public company traded on the over-the-counter (“OTC”) market.  In or about 2013, INGARFIELD obtained control of SUBB, installing management at the company that acted at his direction and financing SUBB’s operations.  INGARFIELD also obtained convertible promissory notes issued by SUBB, which he then converted into tens of millions of SUBB shares that were nominally held by offshore shell entities.  INGARFIELD used these shell entities to conceal his involvement and the fact that he owned and controlled the vast majority of the shares of SUBB. 

In early 2014, at INGARFIELD’s direction, SUBB announced that it was purportedly acquiring a producing African diamond mine worth $5 billion.  But in reality, no such mine existed.  Between January 2014 and March 2014, SUBB issued a series of press releases making false representations regarding that purported mine acquisition and SUBB’s operations.  During the same time period, INGARFIELD orchestrated a marketing campaign through which promotional materials echoing the same false claims were distributed to the investing public by email.  The false and misleading press releases and email marketing campaign caused SUBB’s share price and trading volume to become artificially inflated.

While SUBB’s price was artificially inflated, INGARFIELD profited by selling millions of his secretly amassed shares, all at the expense of the investing public.  Between January and March 2014, he made more than $1.4 million from the sale of SUBB shares.  

On March 7, 2014, the Securities and Exchange Commission halted trading in SUBB, after which the share price dropped precipitously and never recovered.   

*                *                *

In addition to his prison term, EARL INGARFIELD, 64, of Las Vegas, Nevada, was sentenced to two years of supervised release and ordered to pay restitution of $1,804,738 and forfeiture of $1,418,473. 

Mr. Williams praised the outstanding work of Homeland Security Investigation’s El Dorado Task Force. 

The matter is being handled by the Money Laundering and Transnational Criminal Enterprises Unit.  Assistant U.S. Attorneys Emily Deininger, Shiva Logarajah, and Tara La Morte are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of JOHN ARTHUR HANRATTY for charges in connection with a fraudulent scheme to steal money from a Federal Deposit Insurance Corporation (“FDIC”)-insured bank through lines of credit totaling $20 million granted to HANRATTY’s municipal tax lien investment firm.  HANRATTY was arrested this morning and is expected to be presented today before a U.S. Magistrate Judge in the District of Puerto Rico.

U.S. Attorney Damian Williams said: “John Arthur Hanratty, a New York-licensed attorney and the founder of a multi-million-dollar municipal tax lien investment firm, allegedly stole money from a bank to obtain lines of credit totaling $20 million, which he misappropriated by paying back investors who had sued his firm.  Thanks to this Office’s teamwork with the FBI, Hanratty is now facing serious criminal charges for his alleged fraud.”          

FBI Assistant Director in Charge James Smith said: “Fraudsters are very good at what they do. They are extremely convincing and will jump at every opportunity to defraud a new pool of potential victims. John Hanratty allegedly prioritized his own greed over decency and respect for the laws of our country. The FBI and our law enforcement partners remain dedicated to investigating and holding accountable those who flagrantly disregard our laws by seeking to enrich themselves at the expense of their victims.” 

According to the allegations in the Complaint unsealed today in Manhattan federal Court:[1]

HANRATTY was the Founder and Managing Director of Ebury Street Capital, LLC (“Ebury Street Capital”), an investment firm with a portfolio primarily comprised of municipal tax liens.  At all relevant times, HANRATTY served as the Managing Director and Principal for Ebury Street Capital, which manages two different funds known as Ebury Fund 1 and Ebury Fund 2.  HANRATTY has been an attorney licensed to practice law in the State of New York since 2002 and has previously held legal and compliance positions at well-known investment firms and financial institutions, including serving as the Chief Compliance Officer and General Counsel for a trading broker dealer. 

Between 2017 and 2021, HANRATTY participated in a fraudulent scheme to steal money from an FDIC-insured bank (“Victim Bank-1”) by drawing down on $20 million in commercial lines of credit that had been extended to Ebury Street Capital.  Specifically, HANRATTY made materially false statements on spreadsheets (known as “borrowing base certificates”) submitted to Victim Bank-1 summarizing the value of the municipal tax liens that Ebury Street Capital was offering as collateral for its commercial line of credit.  As a result of these false statements on Ebury Street Capital’s borrowing base certificates, Victim Bank-1 paid Ebury Street Capital large sums of money to which it was not entitled.  The false statements on Ebury Street Capital’s borrowing base certificates included, among other things, listing large quantities of municipal tax liens on the borrowing base certificates that Ebury Street Capital did not actually own and double-counting municipal tax liens by listing the same liens on multiple borrowing base certificates. 

Additionally, although Ebury Street Capital was contractually required to use money from Victim Bank-1 either to purchase municipal tax liens or for ordinary business expenses, HANRATTY actually used portions of the money obtained from Victim Bank-1 to pay off Ebury Street Capital’s investors who were threatening to sue and who, in fact, ended up suing Ebury Street Capital and HANRATTY after Ebury Street Capital was unable to pay investors who were seeking to pull out their investments from the fund. 

Ebury Street Capital’s commercial line of credit has now been completely exhausted, and the entity owes over $20 million in principal and interest to Victim Bank-1.

*                *                *

HANRATTY, 49, of San Juan, Puerto Rico, is charged with one count of wire fraud affecting a financial institution and one count of bank fraud, each of which carries a maximum sentence of 30 years in prison. 

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

Mr. Williams praised the investigative work of the FBI.  Mr. Williams also thanked the FBI Field Office in San Juan for their assistance in the investigation of this case.

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Andrew K. Chan and Nicholas Chiuchiolo 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 Complaint constitutes only allegations, and every fact described herein should be treated as an allegation.

Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging DEWAYNE BARRETT and O’NEIL WRIGHT under the Rodchenkov Anti-Doping Act (“RADA”), which proscribes doping schemes at international sports competitions including the Olympic Games.  The Indictment alleges that BARRETT and WRIGHT obtained various performance enhancing drugs (“PEDs”) and distributed those PEDs to certain athletes in advance of, and for the purpose of cheating at, the 2020 Olympic Games held in Tokyo in the summer of 2021.  In addition to the charge under the Rodchenkov Act, BARRETT and WRIGHT are alleged to have conspired to violate the drug misbranding and adulteration laws of the U.S., and BARRETT is separately charged for his involvement in a scheme to fraudulently obtain loans through the Small Business Administration’s Paycheck Protection Program (“PPP”).

BARRETT was taken into federal custody last Thursday and presented in federal court in Manhattan before U.S. Magistrate Judge Ona T. Wang.  WRIGHT was taken into federal custody last Wednesday and was presented on Thursday in the Northern District of Georgia before U.S. Magistrate Judge Justin S. Anand.  

U.S. Attorney Damian Williams said: “As alleged, Barret and Wright’s supposed ‘coaching’ services included providing Olympic-level athletes with prohibited, performance-enhancing drugs.  Supplying illegal drugs to athletes is dangerous and illegal.  This Office is committed to rooting out corruption in international sporting events.  We will continue to prosecute those who engage in illicit doping schemes to the full extent of the law under the Rodchenkov Anti-Doping Act.”

FBI Assistant Director in Charge James Smith said: “Performance enhancing substances deprive competitors of a level playing field.  At a moment when the games offered thousands of athletes validation after years of training, Dewayne Barrett and O’Neil Wright allegedly schemed to ruin that moment by peddling illegal drugs.  Let me be clear, the FBI and our law enforcement partners will not yield in our efforts to disrupt criminal enterprises that seek to corrupt international competition.”

As alleged in the Indictment:[1]

The charges in this Indictment arise from an investigation of a scheme to provide Olympic athletes with PEDs, including drugs widely banned throughout competitive sports such as human growth hormone, clenbuterol, and the “blood building” drug erythropoietin, in advance of and for the purpose of corrupting the 2020 Olympic Games that convened in Tokyo in the summer of 2021.

BARRETT and WRIGHT purported to coach athletes, including Olympic-level athletes competing on behalf of Nigeria (“Athlete-1”), Switzerland (“Athlete-2”), and the United Kingdom (“Athlete-3”), but instead, in order to obtain an unfair and unlawful advantage, BARRETT and WRIGHT provided those athletes with prohibited, performance-enhancing drugs that were obtained and administered without valid prescriptions.

BARRETT was a track and field coach and personal trainer based in the New York City area who operated a fitness facility located in Manhattan.  WRIGHT, a former Olympic-level sprinter, was a track and field coach based in Atlanta, Georgia.  Neither BARRETT nor WRIGHT are doctors.  CC-1, an individual who held himself out as a naturopathic doctor, but was not a licensed doctor, supplied banned drugs to athletes at BARRETT and WRIGHT’s behest.

The Rodchenkov Act, which was signed into law in December 2020, prohibits any person, other than an athlete, to knowingly carry into effect, attempt to carry into effect, or conspire with any other person to carry into effect a scheme in commerce to influence by use of a prohibited substance or prohibited method any major international sports competition. 21 U.S.C. § 2402.

BARRETT is also charged with his involvement in a scheme to fraudulently obtain loans through PPP.  As alleged in the Indictment, between 2020 and 2021, BARRETT submitted online applications seeking over $2.5 million on behalf of individuals whom he represented to be independent contractors on the loan applications.  BARRETT provided a falsified Internal Revenue Service Form 1040 in support of each application, showing an inaccurate annual income for the applicant in the prior tax year.  In many cases, BARRETT was directly paid by the applicant for having submitted the fraudulent paperwork.

*                *                *

DEWAYNE BARRETT, 41, of Elmont, New York, and O’NEIL WRIGHT, 43, of Snellville, Georgia, are each charged with one count of conspiracy to violate the Rodchenkov Act, which carries a maximum sentence of 10 years, and one count of conspiracy to violate the misbranding laws, which carries a maximum sentence of five years.  BARRETT is further charged with one count of wire fraud conspiracy, which carries a maximum sentence of 20 years. 

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

Mr. Williams praised the outstanding investigative work of the FBI and the FBI’s Integrity in Sports and Gaming Initiative.  Mr. Williams also thanked the U.S. Customs and Border Protection, the New York City Police Department, and the U.S. Anti-Doping Agency for their assistance in the investigation.

This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit.  Assistant U.S. Attorneys Sarah Mortazavi, Benjamin Gianforti and T. Josiah Pertz are in charge of the prosecution.

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

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

Damian Williams, the United States Attorney for the Southern District of New York, announced that JOHNNY ROMAN was sentenced today to 20 years in prison for sexual exploitation of children and conspiring to sexually exploit children, including while incarcerated at the Metropolitan Detention Center in Brooklyn.  On May 23, 2023, ROMAN pled guilty to one count of sexual exploitation of children and two counts of conspiracy to commit sexual exploitation of a child before U.S. District Judge J. Paul Oetken, who imposed today’s sentence.

U.S. Attorney Damian Williams said: “Johnny Roman used multiple fake online personas to convince and, in some cases, threaten young women to create and send him heinous videos in which the women performed oral sex on minors, many of them infants and toddlers.  Once he was arrested and detained for that conduct, he continued his disturbing scheme from jail using contraband cellphones.  This lengthy prison sentence holds Roman accountable for his horrific crimes and the extraordinary harm and trauma he caused to many minor victims and their families.” 

According to the Indictment, court documents, and based on statements made in open court:

Since at least 2020, ROMAN used multiple fake online personas to contact young women about the prospect of a “job” sexting with an older man on encrypted messaging applications and to manipulate the women into creating disturbing pornographic videos in which they performed oral sex on minors, many of them infants or toddlers.  ROMAN communicated with at least 3,000 different women on one user account alone.  Through that broad outreach, at least eight individuals performed oral sex on minor victims based on ROMAN’s requests or threats.  At least 11 minor victims — ranging from 16 years old to four months old — were victims of ROMAN’s criminal conduct, which resulted in the creation of over 50 videos in which women performed oral sex on minors.

On December 22, 2020, ROMAN was arrested on the instant charges.  While detained, ROMAN continued to induce women to film themselves performing oral sex on minors using at least three contraband cellphones.

*                *                *

In addition to his prison term, ROMAN, 37, of Albany, New York, was sentenced to a lifetime of supervised release.

Mr. Williams praised the outstanding investigative work of Homeland Security Investigations and the New York City Police Department.  

The prosecution is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Rebecca T. Dell is in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, and Erin Keegan, the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today the return of 13 Khmer antiquities to the Kingdom of Cambodia, pursuant to an agreement between the U.S. Attorney’s Office for the Southern District of New York and the Metropolitan Museum of Art (the “Met”).  The Met has voluntarily agreed to return the antiquities, and they are in the process of being turned over.  

U.S. Attorney Damian Williams said: “All of the pieces being returned today were tied directly to illicit trafficking, and specifically to a man named Douglas Latchford – a collector and dealer that my Office charged in 2019 for running a vast antiquities trafficking network out of Southeast Asia.  I want to thank the Metropolitan Museum of Art, where these pieces were previously housed, for their decision to cooperate and work with my Office to facilitate the return of these pieces to the Kingdom of Cambodia.  We look forward to our continued dialogue with the Met on these important issues.  My Office will continue to vigorously investigate the illegal trade in stolen antiquities.  We urge those in this space, including cultural institutions, to be vigilant.  And if you work at one of these institutions or for a private collection and have concerns that certain pieces may be tied to illicit trafficking, do the right thing: come forward and work with us on a voluntary basis to facilitate the return to the rightful owners.  That is a far better outcome for you and your institution than if our investigation leads to a knock on your door.  In other words, come see us before we come see you.” 

HSI Acting Special Agent in Charge Erin Keegan said: “As demonstrated with today's announcement, pieces linked to the investigation of Douglas Latchford continue to reveal themselves.  The Metropolitan Museum of Art has not only recognized the significance of these 13 Khmer artifacts, which were shamelessly stolen, but has also volunteered to return them, as part of their ongoing cooperation, to their rightful owners: the People of Cambodia.  I want to thank HSI New York’s Cultural Property, Art, and Antiquities unit and the Southern District of New York for their unwavering commitment to reuniting nations with these unforgettable pieces of history.”

All of the antiquities being returned to the Kingdom of Cambodia are linked to the art dealer and collector Douglas Latchford, who was previously indicted in the Southern District of New York in 2019 for orchestrating a multi-year scheme to sell looted Cambodian antiquities on the international art market.  The Indictment was later dismissed due to Latchford’s death.  Since 2012, the U.S. Attorney’s Office for the Southern District of New York, in partnership with HSI, has successfully investigated, identified, and repatriated dozens of stolen and illegally imported Cambodian antiquities in the possession of individuals and institutions in the United States. 

Among the statutes being returned to the Kingdom of Cambodia are statutes from the Koh Ker archaeological site, including a 10th century goddess sandstone statute, as depicted below.  The history of Koh Ker and the illicit trafficking in Cambodian cultural patrimony is described in prior forfeiture actions filed in the Southern District of New York, including United States v. A Late 12th Century Khmer Sandstone Sculpture Depicting Standing Prajnaparamita, et al., 21 Civ. 9217; United States v. A Late 12th Century Bayon-Style Sandstone Sculpture Depicting Eight-Armed Avalokiteshvara, 22 Civ. 229;  United States v. A 10th Century Cambodian Sandstone Sculpture, 12 Civ. 2600; and United States v. A 10th Century Cambodian Sandstone Sculpture Depicting Skanda on a Peacock, 21 Civ. 6065.  In September 2023, Koh Ker — the 10th Century former royal capital of the Angkorian empire — was officially added to the United Nations Education, Scientific, and Cultural Organization’s World Heritage List.  Other statutes being returned date from as far back as the 7th Century, including an over-life-size head of Buddha.   

10th century goddess sandstone statue from Koh Ker

7th century Head of Buddha

*                *                *

Mr. Williams thanked HSI for its outstanding work to facilitate the repatriation and praised its ongoing efforts to find and repatriate stolen and looted cultural property.  Mr. Williams also thanked the Kingdom of Cambodia’s Ministry of Culture and Fine Arts for its partnership and assistance.

This matter is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit.  Assistant U. S. Attorney Shiva Logarajah is in charge of the case.    

Damian Williams, the United States Attorney for the Southern District of New York, announced today the unsealing of charges against TROY CARUSO, the owner and chief executive officer of a commercial construction and contracting company headquartered in New York, New York (the “Contracting Company”), and JOHN NOLAN, a senior executive at the Contracting Company, for their participation in a scheme to bribe a senior project manager at a Fortune 500 real estate services firm in order to obtain contracting work.  CARUSO was arrested this morning in Melville, New York, and NOLAN was arrested this morning in Brooklyn, New York.  Both CARUSO and NOLAN are expected to be presented in federal court in Manhattan later today. 

U.S. Attorney Damian Williams said: “As alleged, Troy Caruso and John Nolan bribed a senior-level individual at a Fortune 500 company to award their company favorable contracts, resulting in the parties involved fraudulently obtaining millions. In the construction world, fair bidding is crucial to the success or downfall of a business, and kickback schemes like the one we allege in this case can undermine that process. Those attempting to corrupt the bidding process by gaining an unfair advantage over their law-abiding counterparts will face criminal prosecution.”

According to the allegations in the Indictment:[1]

From at least in or about February 2021, up to and including in or about September 2023, CARUSO and NOLAN agreed to pay and did pay kickbacks to an employee of a global and publicly traded commercial real estate services company (the “Real Estate Firm”) in exchange for assistance and preferential treatment so that the Contracting Company would be awarded projects managed by the Real Estate Firm (the “Kickback Scheme”). 

In or about March 2021, CARUSO and NOLAN were introduced by an individual (“CC-1”) to a senior project manager at the Real Estate Firm (“CC-2”).  CC-2 managed the process by which contracting companies bid for and were awarded contracts to work on construction projects for various of the Real Estate Firm’s clients.  Beginning in or about March 2021 because of the Kickback Scheme, CC-2 took a series of actions CC-2 otherwise would not have taken to ensure that the Contracting Company was awarded a pre-construction contract and a construction contract relating to a certain project (“Project-1”), which was managed by the Real Estate Firm on behalf of its client, a health services business that provides hospital, medical, and other health services to patients.  For example, CC-2 ensured that the Contracting Company was on the Real Estate Firm’s “bid list” so that it could submit bids relating to Project-1 that it otherwise could not have submitted.  CC-2 also provided non-public information to CARUSO and NOLAN about the bidding process and recommended the Contracting Company for both the pre-construction contract and the construction contract relating to Project-1.  As a result of the Kickback Scheme and CC-2’s actions, the Contracting Company was awarded the pre-construction and construction contracts for Project-1, the latter of which was valued at approximately $3.55 million (to be paid to the Contracting Company). 

In exchange for CC-2’s assistance and preferential treatment, CARUSO and NOLAN agreed to pay kickbacks to CC-2 in the amount of approximately one percent of the construction value of any project managed by the Real Estate Firm that resulted in a contract award to the Contracting Company.  Accordingly, CARUSO and NOLAN agreed to pay CC-2 approximately $35,500 for Project-1 and ultimately paid CC-2 approximately $33,000 in kickbacks for CC-2’s assistance on Project-1.  Most of these payments were made in cash at locations around New York City.  CARUSO and NOLAN also paid CC-1 approximately $15,000 for CC-1’s assistance in the Kickback Scheme, which included connecting CC-2 with CARUSO and NOLAN.

CARUSO and NOLAN attempted to obtain additional contracts from the Real Estate Firm with CC-2’s assistance as part of the Kickback Scheme.  Between in or about 2022 and in or about 2023, in exchange for CARUSO and NOLAN’s promise of payment for any contract awarded to the Contracting Company, CC-2 provided CARUSO and NOLAN with assistance relating to two additional construction projects managed by the Real Estate Firm that did not result in contract awards to the Contracting Company. 

*                *                *

CARUSO, 56, of Smithtown, New York, and Ludlow, Vermont, and NOLAN, 42, of Brooklyn, New York, are each charged with one count of conspiracy to commit honest services wire fraud and one count of honest services wire fraud, which each carry a maximum sentence of 20 years in prison.

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

Mr. Williams praised the outstanding investigative work of the Special Agents and the Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York.  Mr. Williams also thanked the Federal Bureau of Investigation for their assistance in the investigation.

This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Jane Kim and Nicholas Folly are in charge of the prosecution.

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

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

The U.S. Attorney’s Office for the Southern District of New York is providing notice to individuals and entities that bought and sold stock of Nikola Corporation (ticker NKLA) or VectoIQ (tickers VTIQU, VTIQ, and VTIQW) between March and September 2020 of the upcoming sentencing of TREVOR MILTON, the founder and former CEO of Nikola.  In October 2022, MILTON was convicted by a jury of securities fraud and wire fraud in connection with his scheme to defraud and mislead investors about the development of products and technology by Nikola. 

The sentencing is scheduled for December 18, 2023, at 11:00 a.m. before the Honorable Edgardo Ramos in Courtroom 619 at the Thurgood Marshall United States Courthouse, 40 Foley Square, New York, NY 10007.  The proceeding is open to the public.  MILTON faces a maximum term of 60 years in prison, and the sentence will be determined by the court.  If you believe you are a victim of TREVOR MILTON and have questions about the sentencing or wish to submit a victim impact statement, please email: USANYS.NIKOLAVICTIMS@USDOJ.GOV.

A former Special Agent in Charge (SAC) of the FBI Counterintelligence Division in New York, was sentenced to 50 months in prison and ordered to pay a $40,000 fine for conspiring to violate the International Emergency Economic Powers Act (IEEPA) and to commit money laundering in connection with his 2021 agreement to provide services to Oleg Deripaska, a sanctioned Russian oligarch.

According to court documents and statements made in court proceedings, Charles McGonigal, 55, of New York, New York, pleaded guilty in August.

“Charles McGonigal helped advance the interests of a sanctioned Russian oligarch, breaking his oath to safeguard our nation and uphold its laws,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s sentence holds him accountable for this betrayal and demonstrate this department’s commitment to deny designated individuals the means to circumvent U.S. sanctions.”

“Charles McGonigal violated the trust his country placed in him by using his high-level position at the FBI to prepare for his future in business,” said U.S. Attorney Damian Williams for the Southern District of New York. “Once he left public service, he jeopardized our national security by providing services to Oleg Deripaska, a Russian tycoon who acts as Vladimir Putin’s agent.  Today’s sentence is a reminder that anyone who violates United States sanctions — particularly those in whom this country has placed its trust — will pay a heavy penalty.”

“Charles McGonigal’s conduct can be summed up in one word – betrayal. He betrayed everything he once swore to protect.” said Executive Assistant Director Larissa L. Knapp of the National Security Branch. “Today’s sentencing is a message to all, no matter who they are, the FBI does not tolerate those who choose to jeopardize US National Security. Prioritizing personal gains over one’s oath to protect the American people and uphold the Constitution, will be prosecuted to the full extent of the law.”

In 2014, the President issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine. To address this national emergency, the President blocked all property of individuals determined by the U.S. Treasury to be responsible for or complicit in actions or policies that threatened the security, sovereignty, or territorial integrity of Ukraine, or who materially assist, sponsor, or provide support to individuals or entities engaging in such activities. Executive Order 13660 and regulations issued pursuant to it prohibit providing or receiving any funds, goods, or services by, to, from, or for the benefit of any person designated by the U.S. Treasury.

On April 6, 2018, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Oleg Deripaska as a Specially Designated National in connection with its finding that the actions of the Government of the Russian Federation with respect to Ukraine constitute an unusual and extraordinary threat to U.S. national security and foreign policy.  According to the U.S. Treasury, Deripaska was sanctioned for having acted or purported to act on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation and for operating in the energy sector of the Russian Federation economy. The U.S. District Court for the District of Columbia affirmed the sanctions against Deripaska. It found, among other things, that OFAC’s determination that Deripaska acted as an agent of Russian President Vladimir Putin was supported by the evidence.

As an FBI official, McGonigal helped investigate Deripaska and other Russian oligarchs. As a SAC, he supervised investigations into sanctions violations. Yet at the same time, he began building a relationship with an agent of Deripaska, in the hopes of doing business with Deripaska after he retired from the FBI.

In 2021, McGonigal conspired to provide services to Deripaska, in violation of U.S. sanctions imposed on Deripaska in 2018. Specifically, following his negotiations with Deripaska’s agent, McGonigal agreed to and did investigate a rival Russian oligarch in return for concealed payments from Deripaska. While negotiating and performing services for Deripaska, McGonigal and the agent attempted to conceal Deripaska’s involvement by, among other means, not directly naming Deripaska in electronic communications, using shell companies as counterparties in the contract that outlined the services to be performed, using a forged signature on that contract, and using the same shell companies to send and receive payment from Deripaska. McGonigal hoped to do millions of dollars in business with Deripaska, but FBI agents from the same division McGonigal used to lead foiled his scheme after only a few months of operation.

The FBI New York Field Office’s Counterintelligence Division investigated the case, with valuable assistance from U.S. Customs and Border Protection as well as the New York City Police Department.  

Assistant U.S. Attorneys Hagan Scotten, Rebecca T. Dell, and Derek Wikstrom for the Southern District of New York are prosecuting the case, with assistance from Trial Attorney Christina A. Clark of the National Security Division’s Counterintelligence and Export Control Section.

Damian Williams, the United States Attorney for the Southern District of New York, James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division, announced today that CHARLES MCGONIGAL, a former Special Agent in Charge (“SAC”) of the FBI’s Counterintelligence Division in New York, was sentenced by U.S. District Judge Jennifer H. Rearden to 50 months in prison for conspiring to violate the International Emergency Economic Powers Act and to commit money laundering in connection with his 2021 agreement to provide services to Oleg Deripaska, a sanctioned Russian oligarch.

U.S. Attorney Damian Williams said: “Charles McGonigal violated the trust his country placed in him by using his high-level position at the FBI to prepare for his future in business.  Once he left public service, he jeopardized our national security by providing services to Oleg Deripaska, a Russian tycoon who acts as Vladimir Putin’s agent.  Today’s sentence is a reminder that anyone who violates United States sanctions — particularly those in whom this country has placed its trust — will pay a heavy penalty.”

Assistant Director in Charge James Smith said: “Charles McGonigal was justly punished today for knowingly aiding the agents of foreign adversaries who targeted the United States through his fraud and deception to satisfy his own greed.  The FBI is determined to ensure any individual who commits federal crimes – even a former FBI Special Agent in Charge – is held accountable to face the consequences.  This sentence marks not only an important outcome by the U.S. justice system, but also reflects the dedication of the men and women of the FBI to investigate crimes, regardless of who commits them.”

Assistant Attorney General Matthew G. Olsen said: “Charles McGonigal helped advance the interests of a sanctioned Russian oligarch, breaking his oath to safeguard our nation and uphold its laws.  Today's sentence holds him accountable for this betrayal and demonstrates this department’s commitment to deny designated individuals the means to circumvent U.S. sanctions.”           

According to publicly filed court documents and statements made in court proceedings:

In 2014, the President issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine.  To address this national emergency, the President blocked all property of individuals determined by the U.S. Treasury to be responsible for or complicit in actions or policies that threatened the security, sovereignty, or territorial integrity of Ukraine, or who materially assist, sponsor, or provide support to individuals or entities engaging in such activities.  Executive Order 13660 and regulations issued pursuant to it prohibit providing or receiving any funds, goods, or services by, to, from, or for the benefit of any person designated by the U.S. Treasury.

On April 6, 2018, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated Oleg Deripaska as a Specially Designated National in connection with its finding that the actions of the Government of the Russian Federation with respect to Ukraine constitute an unusual and extraordinary threat to U.S. national security and foreign policy.  According to the U.S. Treasury, Deripaska was sanctioned for having acted or purported to act on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation and for operating in the energy sector of the Russian Federation economy.  The U.S. District Court for the District of Columbia affirmed the sanctions against Deripaska.  It found, among other things, that OFAC’s determination that Deripaska acted as an agent of Russian President Vladimir Putin was supported by the evidence.

As an FBI official, MCGONIGAL helped investigate Deripaska and other Russian oligarchs.  As an SAC, he supervised investigations into sanctions violations.  Yet at the same time, he began building a relationship with an agent of Deripaska, in the hopes of doing business with Deripaska after he retired from the FBI.

In 2021, MCGONIGAL conspired to provide services to Deripaska, in violation of U.S. sanctions imposed on Deripaska in 2018.  Specifically, following his negotiations with Deripaska’s agent, MCGONIGAL agreed to and did investigate a rival Russian oligarch in return for concealed payments from Deripaska.  While negotiating and performing services for Deripaska, MCGONIGAL and the agent attempted to conceal Deripaska’s involvement by, among other means, not directly naming Deripaska in electronic communications, using shell companies as counterparties in the contract that outlined the services to be performed, using a forged signature on that contract, and using the same shell companies to send and receive payment from Deripaska.  MCGONIGAL hoped to do millions of dollars in business with Deripaska, but FBI agents from the same division MCGONIGAL used to lead foiled his scheme after only a few months of operation.

*                *                *

In addition to the prison sentence, MCGONIGAL, 55, of New York, New York, was ordered to pay a fine of $40,000, to forfeit $17,500, and sentenced to three years of supervised release.

Mr. Williams praised the outstanding work of the FBI New York Field Office’s Counterintelligence Division and the valuable assistance from U.S. Customs and Border Protection as well as the New York City Police Department.   

The case is being prosecuted by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Hagan Scotten, Rebecca T. Dell, and Derek Wikstrom are in charge of the prosecution with assistance from Trial Attorney Christina A. Clark of the National Security Division’s Counterintelligence and Export Control Section.

Damian Williams, the United States Attorney for the Southern District of New York, announced the guilty plea today of SHAKEEB AHMED in connection with his hack of two separate decentralized cryptocurrency exchanges, one of which was the July 2022 hack of Nirvana Finance.  AHMED pled guilty to computer fraud before U.S. Magistrate Judge Ona T. Wang.  AHMED also agreed to forfeit over $12.3 million, including forfeiture of approximately $5.6 million in fraudulently obtained cryptocurrency.

U.S. Attorney Damian Williams said: “Five months ago, my Office announced the first ever arrest involving an attack on a smart contract.  Today, senior security engineer Shakeeb Ahmed pled guilty and agreed to return all of the stolen crypto to his victims. That arrest is now the first ever conviction for such a hack.  Ahmed’s plea has also resulted in him further admitting that he carried out a previously unsolved second multi-million-dollar hack, this time of decentralized finance protocol Nirvana Finance.  In total, Ahmed used his technical knowhow to steal over $12 million and tried to cover his tracks by swapping stolen crypto for Monero, using cryptocurrency mixers, hopping across blockchains, and utilizing overseas crypto exchanges.  Today’s conviction shows that no matter how sophisticated the methods used, fraud is fraud, and we will swiftly catch and convict you.”

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

In July 2022, AHMED executed hacks on two separate decentralized cryptocurrency exchanges, an exchange referred to herein as the “Crypto Exchange” and Nirvana Finance (“Nirvana”).  In July 2023, AHMED was publicly charged with the hack of the Crypto Exchange. Today’s guilty plea is the first public filing acknowledging AHMED’s responsibility for a second sophisticated, multi-million dollar hack he executed in July 2022 of Nirvana.

At the time of both attacks, AHMED, a U.S. citizen, was a senior security engineer for an international technology company whose resume reflected skills in, among other things, reverse engineering smart contracts and blockchain audits, which are some of the specialized skills AHMED used to execute the hacks.  

The Crypto Exchange allowed users to exchange different kinds of cryptocurrencies, and paid fees to users who deposited cryptocurrency to provide liquidity on the Crypto Exchange.

On or about July 2 and 3, 2022, AHMED carried out an attack on the Crypto Exchange by exploiting a vulnerability in one of the Crypto Exchange’s smart contracts and inserting fake pricing data to fraudulently cause that smart contract to generate approximately $9 million dollars’ worth of inflated fees that AHMED did not legitimately earn. AHMED was able to withdraw said fees from the Crypto Exchange in the form of cryptocurrency.  This conduct defrauded the Crypto Exchange and its users whose cryptocurrency AHMED had fraudulently obtained.  

After he stole the fees he never legitimately earned, AHMED had communications with the Crypto Exchange in which he agreed to return all of the stolen funds except for $1.5 million if the Crypto Exchange agreed not to refer the attack to law enforcement.  

Nirvana was a second decentralized finance protocol.  Nirvana bought and sold its cryptocurrency token, ANA.  Nirvana was designed so that when a user purchased a substantial quantity of ANA, the price of ANA increased, and when a user sold a substantial quantity of ANA, the price of ANA decreased.

On or about July 28, 2022, a few weeks after the hack of the Crypto Exchange, AHMED carried out an attack on Nirvana in which he took out a flash loan for approximately $10 million, used those funds to purchase ANA from Nirvana, and used an exploit he discovered in Nirvana’s smart contracts to purchase the ANA at its initial, low price, rather than at the higher price that Nirvana was designed to charge him in light of the size of his purchase.  When the price of ANA updated to reflect his large purchase, AHMED resold the ANA he had purchased to Nirvana at the new, higher price, resulting in a profit to him of approximately $3.6 million.  Nirvana offered AHMED a “bug bounty” of as much as $600,000 to return the stolen funds, but AHMED instead demanded $1.4 million, did not reach agreement with Nirvana, and kept all the stolen funds.  The $3.6 million AHMED stole represented approximately all the funds possessed by Nirvana, which as a result shut down shortly after AHMED’s attack.

AHMED laundered the millions that he stole from the Crypto Exchange and from Nirvana to conceal their source and ownership, using sophisticated techniques including token-swap transactions, “bridging” fraud proceeds from the Solana blockchain over to the Ethereum blockchain, exchanging fraud proceeds into Monero, an anonymized and particularly difficult cryptocurrency to trace, using overseas cryptocurrency exchanges, and using cryptocurrency mixers such as Samourai Whirlpool.

After the attacks, AHMED searched online for information about the hacks, his own criminal liability, criminal defense attorneys with expertise in similar cases, law enforcement’s ability to successfully investigate the attacks, and fleeing the U.S. to avoid criminal charges.  For example, approximately two days after the hack of the Crypto Exchange, AHMED conducted an internet search for the term “defi hack,” read several news articles about the hack of the Crypto Exchange, and visited several pages on the Crypto Exchange’s website.  In the days after the hack of Nirvana, AHMED conducted internet searches for the term “defi hacks prosecution” and searches related to the charges in the Indictment, including the terms “wire fraud” and “evidence laundering.”  Finally, AHMED conducted internet searches or visited websites related to his ability to flee the U.S., avoid extradition, and keep his stolen cryptocurrency.  He searched for the terms “can I cross border with crypto,” “how to stop federal government from seizing assets,” and “buying citizenship.” He also visited a website titled “16 Countries Where Your Investments Can Buy Citizenship . . .”

*                *                *

AHMED, 34, of New York, New York, pled guilty to one count of computer fraud, which carries a maximum sentence of five years in prison.  AHMED also agreed to pay restitution to his victims totaling $5,071,074.23. 

The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.   AHMED is scheduled to be sentenced by United States District Judge Victor Marrero on March 13, 2024.

Mr. Williams praised the outstanding work of Homeland Security Investigations and Internal Revenue Service – Criminal Investigation.  Mr. Williams also thanked the U.S. Attorney’s Office for the Southern District of California for its assistance in the investigation.

The case is being prosecuted by the Office’s Money Laundering & Transnational Criminal Enterprises Unit and Complex Frauds & Cybercrime Unit. Assistant U.S. Attorneys David R. Felton and Kevin Mead are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced that ISMAEL BIMBOW was sentenced to 22 years in prison today for his participation in a large-scale narcotics trafficking operation that sold kilogram quantities of fentanyl and heroin and for possessing firearms to protect the drug operation.  BIMBOW was convicted following a week-long jury trial in April 2022 before U.S. District Judge J. Paul Oetken, who imposed today’s sentence. 

U.S. Attorney Damian Williams said: “The sentence today reaffirms this Office’s commitment to hold large-scale fentanyl traffickers accountable.  Armed fentanyl traffickers such as this defendant promote violence, ruin lives, and destroy communities.  This defendant sought to profit from trafficking significant quantities of this horrific drug, used multiple firearms to protect his operation, and profited handsomely, but he has now been justly punished for his crimes and will spend many years in federal prison.”

According to court documents and the evidence presented at the trial of BIMBOW:

BIMBOW and his co-conspirators ran a large-scale wholesale fentanyl operation out of numerous residences in New Jersey, while obtaining drug supplies and enlisting co-conspirators to “bag up” for him in the Southern District of New York.  BIMBOW also obtained and kept multiple loaded firearms to protect his drugs and drug supplies. 

On December 8, 2020, following a months-long investigation into his narcotics trafficking operation, BIMBOW was arrested outside of his stash house in East Orange, New Jersey.  Law enforcement agents then searched the vehicle that he was in and recovered a semi-automatic handgun, bundled U.S. currency, and several bundles of fentanyl hidden in the car’s secret compartment, a photograph of which is below:

Officers then searched BIMBOW’s stash house and multiple luxury apartments and residences and recovered large quantities of fentanyl and heroin — including over 50,000 individually packaged doses of fentanyl ready to be distributed into the community — as well as more bricks of fentanyl and equipment used to weigh, package, stamp, and sell fentanyl on the street.  Photographs of the over 50,000 doses of fentanyl recovered at the stash house are below:

During the search of BIMBOW’s three luxury apartments throughout northern New Jersey, agents located two additional firearms (including one with an extended magazine) and more fentanyl in one, a gold digital money counter in another, and over $450,000 in narcotics proceeds in the third.  A photograph on BIMBOW’s phone showed that same money counter surrounded by cash.  Photographs of the seized firearms, some of the seized cash, and the money counter from BIMBOW’s phone are below:  

BIMBOW used his massive profits from fentanyl dealing to obtain numerous luxury vehicles, live in his multiple luxury apartments, invest in a club, and show off his earnings.  For example, evidence from BIMBOW’s phone showed him taking a video of hundreds of thousands of dollars in the very apartment in which it was seized in an apparent attempt to boast about his criminal proceeds, a screenshot of which is below:

BIMBOW’s phone also contained photographs of at least four additional kilograms of fentanyl, two photos of which are shown below:  

Even after BIMBOW was arrested and detained, he continued to traffic fentanyl through the use of multiple contraband phones, which agents seized from his jail cell.  Evidence from those devices showed that BIMBOW continued his attempts to sell large quantities of dangerous fentanyl both before and even after he was convicted at trial in this matter.

*                *                *

ISMAEL BIMBOW, 46, of Newark, New Jersey, was convicted after trial of narcotics conspiracy and using and carrying firearms during and in relation to, or possessing firearms in furtherance of, the narcotics conspiracy.  In addition to the prison term, Judge Oetken sentenced BIMBOW to five years of supervised release.

Mr. Williams praised the outstanding investigative work of the Drug Enforcement Administration. 

The prosecution of this case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Michael R. Herman, David J. Robles, and Frank J. Balsamello are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, Naomi Gruchacz, the Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services – Office of the Inspector General (“HHS-OIG”), Erin Keegan, the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Thomas Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced the unsealing of an Indictment today charging NIRANJAN MITTAL, a Brooklyn-based cardiologist, in connection with a scheme to fabricate patient records, pay physicians for patient referrals, and bill for medically unnecessary vascular procedures.  The U.S. Attorney’s Office for the Southern District of New York also filed a civil fraud complaint today under the False Claims Act against MITTAL, DIVANSHU BANSAL, who manages MITTAL’s medical practice and supervises staff, and NIRANJAN K. MITTAL, PHYSICIAN, PLLC d/b/a/ CARECUBE, and NEW YORK PET IMAGING CENTER LLC, the entities that own MITTAL’s practice and diagnostic testing facility.  MITTAL was presented in federal court before U.S. Magistrate Judge Ona T. Wang.  The case is assigned to U.S. District Judge Ronnie Abrams.

U.S. Attorney Damian Williams said: “We put our faith in doctors and trust their expertise.  As alleged, Dr. Niranjan Mittal betrayed that trust.  He subjected patients to surgical procedures that they did not need.  He directed his staff to make up patient symptoms in medical records to justify these unnecessary procedures so he could receive lucrative insurance payments, and he bribed other doctors to send him their patients.  Thanks to our law enforcement partners, Mittal now faces criminal prosecution and civil penalties for his alleged conduct.”

HHS-OIG Special Agent in Charge Naomi Gruchacz said: “Health care providers who falsify records and recommend medically unnecessary services to drive up profits pose a significant risk to patients.  HHS-OIG will continue to work with our law enforcement partners to hold accountable individuals who, to satisfy their own greed, exploit federal health care programs.”

HSI Acting Special Agent in Charge Erin Keegan said: “Niranjan Mittal is accused of defrauding the government and private insurers of millions of dollars while treating his patients like commodities he could use to further enrich himself. He put profit over patient well-being, convincing individuals who sought his care to undergo potentially unnecessary medical procedures.  Through partnerships, such as those established within HSI's Document and Benefits Fraud Task Force, we are actively raising awareness among the public and deterring those who aim to exploit the vulnerable.” 

IRS-CI Special Agent in Charge Thomas Fattorusso said: “While Dr. Mittal may have taken the Hippocratic Oath when he became a doctor, the irony is not lost on the hypocrisy of his alleged fraud, where instead of caring for his patients, he cared for himself and lining his own pockets.  Mittal’s alleged schemes were devoid of concern for his patients, and his practice to treat certain patients with unnecessary procedures is outright dangerous.  Today’s arrest ensures that he will no longer be able to continue his fraud and victimize those who sought legitimate care and treatment.”

According to the Indictment:[1]

Since at least 2016, MITTAL operated a medical clinic in Brooklyn, New York (the “Brooklyn Clinic”), with a patient base consisting of many individuals of limited economic means who were insured by government health care programs.  In order to ensure a steady flow of new patients to the Brooklyn Clinic, MITTAL paid rental payments to other providers pursuant to purported “leases” for office space.  Often, however, the timing and amount of the payments bore no relation to the terms of those leases.  In fact, MITTAL made the purported lease payments to induce other providers to refer patients to MITTAL’s staff members, who, at the direction of MITTAL, periodically traveled to the providers’ offices, performed basic tests on the referred patients, and convinced the patients to attend follow-up appointments at the Brooklyn Clinic.

Once patients arrived at the Brooklyn Clinic, often without understanding why they had been referred to the practice, they underwent a series of diagnostic tests and follow-up office visits.  These tests and office visits generally were not based on the patients’ actual treatment needs.  Rather, MITTAL and others acting at his direction ordered these tests and office visits to create documentation sufficient to justify subjecting patients to unnecessary peripheral vascular interventional procedures—surgical procedures focused on clearing purported blockages in the blood vessels in patients’ legs.  MITTAL directed others to, among other things, fabricate the descriptions of patients’ symptoms recorded in the practice’s office visit notes, varying the symptoms across patients so that it was not apparent that the symptoms were fake.

As a result of MITTAL’s scheme, patients at the Brooklyn Clinic, many of whom were already in poor health, routinely underwent medically unnecessary vascular interventions at MITTAL’s office, with some patients undergoing ten or more interventional procedures over the course of several years.  The patients’ conditions often did not improve, despite these repeated interventions.  Through his operating entity, MITTAL billed Medicare, Medicaid, and private insurers over $100 million for the relevant vascular procedures.

According to the Civil Complaint: [2]

In addition to fraudulently billing Medicare and Medicaid for medically unnecessary peripheral vascular procedures, fabricating patient records to make it appear these procedures were justified, and paying kickbacks for patient referrals:

MITTAL, BANSAL, and MITTAL’s operating entities billed Medicare and Medicaid for medically unnecessary cardiac diagnostic imaging studies, including but not limited to PET scans, stress tests, echocardiograms, and carotid artery doppler studies.  These tests were repeatedly performed on the same patients without any clinical basis and without taking into account the results of prior, duplicative tests.  At the direction of MITTAL and BANSAL, staff prepared fabricated medical records to make it appear that patients exhibited symptoms and complaints that would justify performing these tests.  The lawsuit seeks to recover treble damages and civil penalties under the False Claims Act.

*                *                *

MITTAL, 70, of Brooklyn, New York, is charged with one count of conspiracy to commit health care fraud and wire fraud, which carries a maximum sentence of 20 years in prison, one count of health care fraud, which carries a maximum sentence of ten years in prison, one count of conspiracy to violate the Anti-Kickback Statute, which carries a maximum sentence of five years in prison, and one count of violation of the Anti-Kickback Statute, which carries a maximum sentence of 10 years in prison. 

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

Mr. Williams praised the outstanding investigative work of HHS-OIG, HSI, and IRS-CI.

The criminal case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Patrick R. Moroney and Matthew Weinberg are in charge of the prosecution.  The civil lawsuit is being handled by the Office’s Civil Frauds Unit.  Assistant U.S. Attorneys Jeffrey K. Powell and Pierre G. Armand are in charge of the civil case.

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

If you or someone you know has information about the conduct at MITTAL’s cardiology practice, please call the HHS-OIG tip line at 1-800-HHS-TIPS.

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

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

Damian Williams, the United States Attorney for the Southern District of New York, announced today that a jury returned a guilty verdict against NADINE JAZIMNE WADE on all four counts in the Indictment, which contained money laundering and bank fraud charges.  The defendant was found guilty following a two-week trial before U.S. District Judge Katherine Polk Failla.

U.S. Attorney Damian Williams said: “Nadine Wade used a sham women’s clothing company as a front to launder over $2 million in fraud proceeds on behalf of scam artists in Nigeria and South Africa.  The romance scams perpetrated by Wade’s partners were cruel, targeting vulnerable, elderly men and women and tricking them into transferring their life savings to the defendant, who then took her cut and sent the money to other members of the scheme.  Money launderers who assist online scammers abroad will be held accountable for their crimes by this Office.”

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

From in or about 2016 through in or about 2021, co-conspirators of WADE based in Nigeria and South Africa committed a series of romance scams against individuals located across the United States.  Those co-conspirators used aliases, including the names “Diego Francisco” and “Richard Francisco” (the “Francisco Alias”), to meet victims on various dating websites.  The co-conspirators used online photographs of a male model when providing victims with photos of the Francisco Alias.  After engaging in romantic conversations with the victims via phone, text, and email, those co-conspirators, posing as the Francisco Alias, asked victims for money.  The reasons why the Francisco Alias needed money varied.  In one version of the scheme, the Francisco Alias supposedly worked on an oil rig and needed funds to repair the rig.  The Francisco Alias then instructed the victims to transfer funds to bank accounts controlled by WADE and others.  The means of transfer also varied.  In some cases, for example, the Francisco Alias instructed victims to obtain cashier’s checks made payable to WADE or her shell company and to mail those checks to WADE.

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

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

*                *                *

NADINE JAZMINE WADE, 30, of the Bronx, New York, was convicted of one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; one count of money laundering, which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison; and one count of bank fraud, which carries a maximum sentence of 30 years in prison. 

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

Mr. Williams praised the outstanding work of the U.S. Secret Service and the Internal Revenue Service – Criminal Investigation for their assistance in this investigation.

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

Damian Williams, the United States Attorney for the Southern District of New York, and Anne Milgram, the Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced that a jury returned a guilty verdict against CARLOS ORENSE AZOCAR yesterday on all three counts in the Indictment, which contained cocaine-importation and weapons charges.  The defendant was found guilty following a two-week trial before U.S. District Judge Vernon S. Broderick.

U.S. Attorney Damian Williams said: “For more than a decade, Carlos Orense Azocar worked with some of the largest narcotics traffickers in the world to send tons of cocaine to the United States.  He partnered with corrupt high-ranking government and military officials in Venezuela and employed an arsenal of high-powered weapons to protect his cocaine distribution organization.  For years, Orense Azocar shipped mountains of poison to this country and made millions of dollars in drug money.  But no more.  A jury in this district has unanimously held Orense Azocar responsible for his crimes, and now he will face a possible life sentence behind bars.” 

DEA Administrator Anne Milgram said: “Orense Azocar and his drug trafficking organization used every means available, including high-powered weaponry, government corruption, and bribery, to safeguard his expansive operation and traffic hundreds of tons of cocaine into the United States.  Today’s verdict is another example of the dangerous and vital work DEA does every day across the globe and our relentless pursuit of justice for those responsible for causing harm to the American people.”

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

Beginning in or about 2003, ORENSE AZOCAR and his drug trafficking organization distributed tons of cocaine destined for importation into the United States.  ORENSE AZOCAR helped transport, receive, and distribute loads of cocaine ranging from hundreds to thousands of kilograms from Venezuela to Mexico, the Dominican Republic, and elsewhere, using air and maritime routes.  ORENSE AZOCAR operated fincas, or ranches, in Venezuela, where he stored his cocaine in underground tanks, stored hundreds of deadly weapons and thousands of rounds of ammunition, and which had clandestine landing strips from which he dispatched airplanes loaded with cocaine.  ORENSE AZOCAR also loaded cocaine on “go-fast” boats that sped from the Venezuelan coastline to intermediate delivery points in the Caribbean, including the Dominican Republic and close to Puerto Rico.  To aid in his cocaine distribution, ORENSE AZOCAR worked with and paid bribes to high-ranking officials throughout the Venezuelan government, including military generals and army officials, national police commissioners, and high-ranking officials in the Venezuelan intelligence agencies.  ORENSE AZOCAR’s corrupt Venezuelan government connections secured access to military-grade weaponry, protection from military and law enforcement raids, safe passage for ORENSE AZOCAR’s cocaine convoys through checkpoints, and fraudulent airplane transponder codes to permit ORENSE AZOCAR’s cocaine-laden aircraft to freely depart Venezuela en route to Central America and Mexico.  ORENSE AZOCAR similarly partnered with armed guerilla forces operating in Colombia and Venezuela to source cocaine and secure safe passage for his cocaine shipments.  ORENSE AZOCAR distributed hundreds of tons of cocaine and made tens of millions of dollars through his narcotics trafficking.

To protect and expand his cocaine trafficking organization, ORENSE AZOCAR employed high-powered weaponry.  He had armed security teams that guarded his finca; traveled in armored vehicles with armed security; and used armed security, military forces, and police to protect his convoys of cocaine.  Among other weapons, ORENSE AZOCAR employed automatic rifles, submachine guns, handguns modified to operate as machine guns, and a 50-caliber mounted machine gun. 

*                *                *

ORENSE AZOCAR, 68, of Venezuela, was convicted on three counts: (i) conspiring to import cocaine into the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum potential sentence of life in prison; (ii) using and carrying machine guns during, and possessing machine guns in furtherance of, the cocaine-importation conspiracy, which carries a mandatory consecutive minimum sentence of 30 years in prison and maximum potential sentence of life in prison; and (iii) conspiring to use and carry machine guns during, and to possess machine guns in furtherance of, the cocaine-importation conspiracy, which carries a maximum potential sentence of life in prison.

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

This prosecution is part of an Organized Crime Drug Enforcement Task Force (“OCDETF”) operation.  OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.

Mr. Williams praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, OCDETF New York Strike Force, and SDNY Digital Forensics Unit, as well as the U.S. Department of Justice’s Office of International Affairs.

This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Kaylan E. Lasky, Michael D. Lockard, and Kevin Sullivan are in charge of the prosecution, with assistance from Paralegal Specialist William Sirmon.

Damian Williams, the United States Attorney for the Southern District of New York, and Nicole M. Argentieri, the Acting Assistant Attorney General of the Justice Department’s Criminal Division, announced today that the Madoff Victim Fund (“MVF”) began its ninth distribution of approximately $158 million in funds forfeited to the U.S. Government in connection with the Bernard L. Madoff Investment Securities LLC (“BLMIS”) fraud scheme.

In this distribution, payments will be sent to 24,875 victims across the globe, bringing their total recoveries to 91% of their fraud losses.  Through its nine distributions, MVF has paid over $4.22 billion to 40,843 victims as compensation for losses they suffered from the collapse of BLMIS.

U.S. Attorney Damian Williams said: “In 2009, when the Southern District of New York charged Bernie Madoff for his $64 billion securities fraud ‘Ponzi’ scheme, it was one of the most prolific financial crimes in American history.  Among Madoff’s many victims were not only wealthy and institutional investors, but charities and pension funds alike – some of which invested money with Madoff on behalf of individuals working paycheck-to-paycheck who were relying on their pension accounts for their retirements.  The financial toll on those who entrusted their money with Madoff was devasting, and this Office’s unprecedented efforts to return money to Madoff’s victims has now resulted in clawbacks of 91% of fraud losses to their rightful owners.  I commend the career prosecutors of this Office for today’s distribution of over $158 million and for their relentless pursuit of justice for victims of Wall Street fraudsters, like Bernie Madoff.”

Acting Assistant Attorney General Nicole M. Argentieri said: “The department’s Madoff Victim Fund has exceeded expectations in the level of recovery provided to victims of the fraud committed by Bernard Madoff, which devastated thousands of lives.  To date, the Madoff Victim Fund has assisted more than 40,800 individual victims in recovering over 90% of victim losses.  The department continues to prioritize the use of civil asset forfeiture to ensure compensation is available for victims of fraud.” 

According to court documents and information presented in related proceedings:

For decades, BERNARD L. MADOFF used his position as chairman of BLMIS, the investment advisory business he founded in 1960, to steal billions of dollars from his clients.  On March 12, 2009, MADOFF pled guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family, and select members of his inner circle.

On June 29, 2009, MADOFF was sentenced to 150 years in prison for running the largest fraudulent scheme in history.  Of the over $4 billion that has been made available to victims, approximately $2.2 billion was collected as part of the historic civil forfeiture recovery from the estate of deceased MADOFF investor, Jeffry Picower.  An additional $1.7 billion was collected as part of a deferred prosecution agreement with JPMorgan Chase Bank N.A. and civilly forfeited in a parallel action.  The remaining funds were collected through a civil forfeiture action against investor Carl Shapiro and his family and from civil and criminal forfeiture actions against MADOFF, Peter B. Madoff, and their co-conspirators.

*                *                *

The MVF’s payouts would not have been possible without the extraordinary efforts of the U.S. Attorney’s Office for the Southern District of New York, the Criminal Division’s Money Laundering and Asset Recovery Section, and the Federal Bureau of Investigation in the prosecution of MADOFF’s crimes and the recovery of assets supporting the forfeiture in the case.

The MVF is overseen by Richard Breeden, former chairman of the U.S. Securities and Exchange Commission, who serves as Special Master appointed by the Justice Department to assist in connection with the victim remission proceedings.  Breeden and his team at MVF provided essential assistance to evaluate over 68,000 remission petitions involving billions in cash flows and to compute each victim’s fraud losses to enable payments to be made.

The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit.  The remission of these forfeited funds is being handled by the Office and the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section.

More information about MVF and its compensation of BLMIS is available on the MVF website at www.madoffvictimfund.com, such as eligibility criteria, process updates, and frequently asked questions.  Further questions may be directed to the MVF at 866-624-3670 or info@madoffvictimfund.com.

Damian Williams, the United States Attorney for the Southern District of New York, and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced today that a grand jury in Manhattan federal court returned an eight-count Indictment charging New Jersey resident HERMAN CALVIN BRIGHTMAN, a/k/a “Nazir Griffiths,” a/k/a “Nazir Luckett,” with kidnapping, interstate travel to commit domestic violence, interstate communication of a threat, cyberstalking, and interstate stalking.  BRIGHTMAN’s case is assigned to U.S. District Judge John P. Cronan. 

U.S. Attorney Damian Williams said: “As alleged, for over a year, Herman Brightman preyed upon woman after woman using the internet to lure these women into meeting and dating him and posing as a nurse or nurse practitioner to gain their trust.  He then quickly became physically abusive towards them, going so far as to kidnap the women at knifepoint and threaten to kill them.  Today’s charges put a stop to this abusive and violent behavior.  We thank and commend the courageous women who came forward to report Brightman.” 

NYPD Commissioner Edward A. Caban said: “The men and women of the NYPD condemn these deeply disturbing and heinous acts allegedly committed by a serial predator. Across jurisdictional boundaries, we and our law enforcement partners take all accusations of abuse seriously and remain dedicated to ensuring justice for the victims.”

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

From between in or about January 2022 to in or about September 2023, BRIGHTMAN used social media platforms such as Facebook and the dating application Hinge to meet, and occasionally date, several women under false pretenses.  Specifically, BRIGHTMAN, often used an alias and posed as a nurse or nurse practitioner working at New York City-area hospitals, even sending pictures and videos of himself wearing scrubs and lab coats, and creating false IDs for himself.  Some of those photos are included below:

Shortly after he began dating his victims, BRIGHTMAN began to act violently towards them, particularly if they attempted to end the relationship.  As set forth in the Indictment, between January 2022 and September 2023, BRIGHTMAN brutalized at least four such women.

In or about July 2022, BRIGHTMAN traveled from New Jersey to the Southern District of New York and forced at knifepoint a woman (“Victim-1”) who had recently decided to break up with him and her minor child (“Minor Victim-1”) to travel from the Southern District of New York to BRIGHTMAN’s residence in New Jersey.  Once they arrived at BRIGHTMAN’s residence, BRIGHTMAN threatened to kill Victim-1 if she “made any problems” and literally held onto Victim-1 for an entire evening to prevent her from escaping.  Victim-1 eventually did escape the next morning and was able to contact local police after she convinced BRIGHTMAN to let her leave his residence temporarily. 

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

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

A few days later, BRIGHTMAN returned to the Bronx to confront Victim-3 at her job.  During the confrontation, BRIGHTMAN repeatedly asked Victim-3 if she had contacted the police.  BRIGHTMAN then followed Victim-3 home where BRIGHTMAN assaulted her again, pushing Victim-3 to the ground and throwing a traffic cone at her.

In or about late September 2023, BRIGHTMAN traveled to the Bronx and convinced a fourth woman (“Victim-4”), who had previously ended their relationship, to allow him into her home.  Inside Victim-4’s home, BRIGHTMAN assaulted and strangled Victim-4, leaving her with bruising on her neck.  BRIGHTMAN also repeatedly threatened to kill Victim-4 and attempted to rape her.  Victim-4 was ultimately able to escape with the help of a friend.

If you have been victimized by HERMAN CALVIN BRIGHTMAN, a/k/a “Nazir Griffiths,” a/k/a “Nazir Luckett,” or have any additional information about his alleged illegal behavior, please contact the U.S. Attorney's Office for the Southern District of New York at 1-866-874-8900 and reference this case. 

*                *                *

BRIGHTMAN, 30, of West New York, New Jersey, is charged with one count of kidnapping a minor, which carries a minimum sentence of 20 years in prison and a maximum sentence of life in prison; one count of threatening physical harm by interstate communication, which carries a maximum sentence of five years in prison; one count of cyberstalking, which carries a maximum sentence of five years in prison; two counts of kidnapping, which each carry a maximum sentence of 20 years in prison; two counts of travel in interstate commerce to commit a crime of violence, which each carry a maximum sentence of five years in prison; and one count of travel in interstate commerce to stalk, which carries a maximum potential sentence of five years in prison.

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

Mr. Williams praised the outstanding investigative work of the NYPD, Task Force Officers assigned to the U.S. Attorney’s Office for the Southern District of New York, and the Complex Analytics and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Areas office for their work on the investigation.  Mr. Williams also thanked the Bronx District Attorney’s Office, the Queens District Attorney’s Office, and the Ocean County District Attorney’s Office in New Jersey for their assistance in the investigation.

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

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

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

Damian Williams, the United States Attorney for the Southern District of New York, announced that BORIS AMINOV pled guilty today to conspiracy to commit health care fraud in connection with engaging in a years-long scheme to defraud Medicaid, Medicare, and private insurance companies out of at least $20 million.  10 other defendants were charged in connection with the scheme in two separate indictments unsealed in March and October 2023.  AMINOV pled guilty before U.S. District Judge Mary Kay Vyskocil and is scheduled to be sentenced on April 17, 2024.

U.S. Attorney Damian Williams said: “Boris Aminov orchestrated a scheme to get rich by lying to Medicaid, Medicare, and private insurance companies and by depriving vulnerable HIV patients of legitimate and safe medications.  Aminov also made millions of dollars through buying and distributing black-market HIV medications to pharmacies all over New York City.  This Office will be tireless in its pursuit of those who seek to line their pockets by preying on vulnerable members of society.”

According to the allegations contained in the Superseding Indictments and statements made in court proceedings:

From at least in or about 2017 through at least in or about 2023, AMINOV and others engaged in a scheme that defrauded Medicaid, Medicare, and private insurance companies out of at least approximately $20 million through trafficking in black-market HIV medication.  In doing so, they exploited at least hundreds of low-income individuals who had been prescribed HIV medication, jeopardizing the health and safety of those vulnerable patients. 

AMINOV distributed black-market HIV medications to pharmacies that were owned and operated by other co-conspirators.  That medication was then dispensed to unknowing patients who believed they were receiving legitimate medication.  To further their scheme and conceal their proceeds, co-conspirators used bank accounts associated with their respective pharmacies to funnel money to shell companies controlled by AMINOV.

*                *                *

AMINOV, 47, of Brooklyn, New York, pled guilty to one count of conspiracy to commit health care fraud, which carries a maximum potential sentence of 10 years in prison.

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

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

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Jeffrey W. Coyle and Jackie Delligatti are in charge of the prosecution.

The Justice Department announced today that the Madoff Victim Fund (MVF) began its ninth distribution of over $158.9 million in funds forfeited to the U.S. government in connection with the Bernard L. Madoff Investment Securities LLC (BLMIS) fraud scheme.

In this distribution, payments will be sent to 24,875 victims across the globe, bringing their total recoveries to 91% of their fraud losses. Through its nine distributions, MVF has paid over $4.22 billion to 40,843 victims as compensation for losses they suffered from the collapse of BLMIS.

“The department’s Madoff Victim Fund has exceeded expectations in the level of recovery provided to victims of the fraud committed by Bernard Madoff, which devastated thousands of lives,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “To date, the Madoff Victim Fund has assisted more than 40,800 individual victims in recovering over 90% of victim losses. The department continues to prioritize the use of civil asset forfeiture to ensure compensation is available for victims of fraud.” 

“In 2009, when the Southern District of New York charged Bernie Madoff for his $64 billion securities fraud ‘Ponzi’ scheme, it was one of the most prolific financial crimes in American history. Among Madoff’s many victims were not only wealthy and institutional investors, but charities and pension funds alike — some of which invested money with Madoff on behalf of individuals working paycheck-to-paycheck who were relying on their pension accounts for their retirements,” said U.S. Attorney Damian Williams for the Southern District of New York. “The financial toll on those who entrusted their money with Madoff was devasting, and this office’s unprecedented efforts to return money to Madoff’s victims has now resulted in clawbacks of 91% of fraud losses to their rightful owners. I commend the career prosecutors of this office for today’s distribution of over $158 million and for their relentless pursuit of justice for victims of Wall Street fraudsters, like Bernie Madoff.”

According to court documents and information presented in related proceedings, for decades, Bernard L. Madoff used his position as chairman of BLMIS, the investment advisory business he founded in 1960, to steal billions of dollars from his clients. On March 12, 2009, Madoff pleaded guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family, and select members of his inner circle.

On June 29, 2009, Madoff was sentenced to 150 years in prison for running the largest fraudulent scheme in history. Of the over $4 billion that has been made available to victims, approximately $2.2 billion was collected as part of the historic civil forfeiture recovery from the estate of deceased Madoff investor, Jeffry Picower. An additional $1.7 billion was collected as part of a deferred prosecution agreement with JPMorgan Chase Bank N.A. and civilly forfeited in a parallel action. The remaining funds were collected through a civil forfeiture action against investor Carl Shapiro and his family, and from civil and criminal forfeiture actions against Madoff, Peter B. Madoff, and their co-conspirators.

The MVF’s payouts would not have been possible without the extraordinary efforts of the Criminal Division’s Money Laundering and Asset Recovery Section, U.S. Attorney’s Office for the Southern District of New York, and FBI in the prosecution of Madoff’s crimes and the recovery of assets supporting the forfeiture in the case.

The MVF is overseen by Richard Breeden, former chairman of the U.S. Securities and Exchange Commission, who serves as Special Master appointed by the Justice Department to assist in connection with the victim remission proceedings. Breeden and his team at MVF provided essential assistance to evaluate over 68,000 remission petitions involving billions in cash flows, and to compute each victim’s fraud losses to enable payments to be made. 

More information about MVF and its compensation to victims of BLMIS is at www.madoffvictimfund.com, such as eligibility criteria, process updates, and frequently asked questions. Further questions may be directed to the MVF at 866-624-3670 or info@madoffvictimfund.com.

Damian Williams, the United States Attorney for the Southern District of New York, announced on December 11, 2023, that a federal jury found DIONISIO FIGUEROA, a/k/a “Dionicio,” an employee of the U.S. District Court for the Southern District of New York (“the SDNY District Court”), guilty of bribery, conspiracy, and false statements charges for his participation in a scheme in which he referred criminal defendants to a criminal defense attorney and encouraged those defendants to retain the attorney, all in exchange for cash bribes.  The attorney pled guilty to all counts on November 16, 2023.  FIGUEROA will be sentenced by U.S. District Judge Mae A. D’Agostino on April 8, 2024.

U.S. Attorney Damian Williams said: “Figueroa, a longtime clerk at the SDNY District Court, betrayed his employer, the public, and those who rely on the court to remain impartial.  His actions violated his duties as a court employee, undermined the fair administration of justice, and undermined the work of the many good people in the courthouse who serve the criminal justice system with honesty and integrity.  A federal jury has now held Figueroa accountable for his crimes.  This verdict should remind public servants in positions of trust that if you betray the public, my Office will not hesitate to enforce the law.”

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

As a clerk in the SDNY Magistrate Clerk’s Office since in or about 2002, FIGUEROA was responsible for performing duties that included, among other things, making data entries regarding official case events in criminal cases, making summary entries of documents and proceedings on case dockets, and performing inquiries and furnishing information, either in person or by correspondence, regarding the status of cases.  FIGUEROA also played a role with respect to the intake of criminal cases, including by preparing appearance bonds, advising defendants and their family members about the conditions of the bonds, and ensuring that appearance bonds were signed by all parties prior to a defendant’s release. 

SDNY District Court personnel policies prohibited FIGUEROA from having outside employment that would pose a conflict of interest; receiving payments, gifts, or other benefits from persons having business before the District Court; and recommending particular attorneys to members of the public.  FIGUEROA was also subject to the U.S. Courts’ Code of Conduct for Judicial Employees (the “Code of Conduct”), which cautioned judicial employees that “[a] number of criminal statutes of general applicability govern federal employees’ performance of official duties.  These include:  18 U.S.C. § 201 (bribery of public officials and witnesses) . . . ”  The Code of Conduct likewise admonished, among other things, that “[a] judicial employee should never influence or attempt to influence the assignment of cases, or perform any discretionary or ministerial function of the court in a manner that improperly favors any litigant or attorney, nor should a judicial employee imply that he or she is in a position to do so.” 

TELESFORO DEL VALLE, JR., was a private attorney who had appeared in numerous federal criminal cases pending before the SDNY District Court.

Between at least 2011 and 2022, FIGUEROA and DEL VALLE engaged in a scheme whereby FIGUEROA used his position as an employee of the SDNY District Court to encourage criminal defendants to retain DEL VALLE to represent them in pending criminal cases.  In return, DEL VALLE paid FIGUEROA a portion of the fees clients paid to DEL VALLE.  Over the course of more than a decade, FIGUEROA referred at least 45 SDNY criminal defendants to DEL VALLE, and DEL VALLE paid FIGUEROA tens of thousands of dollars in referral fees.  DEL VALLE paid FIGUEROA directly and through an intermediary who would pick up envelopes of cash for FIGUEROA from DEL VALLE’s law office.  Many of the clients who ended up retaining and paying DEL VALLE were assigned free, court-appointed counsel.  Nevertheless, FIGUEROA encouraged those individuals to change counsel, including by vouching for DEL VALLE’s abilities as a lawyer.

FIGUEROA and DEL VALLE were also charged with making false statements to law enforcement during the investigation. In November 2022, federal law enforcement agents separately interviewed both FIGUEROA and DEL VALLE.  After advising each that lying to federal law enforcement agents is a federal crime, FIGUEROA and DEL VALLE each made materially false, fictitious, and fraudulent statements and representations in response to the agents’ questions.  In particular, FIGUEROA denied making any referrals to DEL VALLE except on a small number of occasions concerning close relations or friends. He further denied ever having received payments from DEL VALLE for referrals.  DEL VALLE, upon being served with a federal grand jury subpoena requiring the production of records from his law firm, falsely denied having any records reflecting client referrals from or payments to FIGUEROA or anyone else.

DEL VALLE pled guilty to all charges on November 16, 2023, and is scheduled to be sentenced by Judge D’Agostino on March 12, 2024.

*                *                *

FIGUEROA, 66, of New York, New York, was convicted of one count of conspiracy to bribe a federal employee and pay illegal compensation to a judicial employee, which carries a maximum potential sentence of five years in prison; one count of federal employee bribery, which carries a maximum potential sentence of 15 years in prison; one count of receiving illegal compensation as a judicial employee, which carries a maximum potential sentence of five years in prison; and one count of making material false statements, which carries a maximum potential sentence of five years in prison.

DEL VALLE, 65, of Leonia, New Jersey, was convicted of one count of conspiracy to bribe a federal employee and pay illegal compensation to a judicial employee, which carries a maximum potential sentence of five years in prison; one count of federal employee bribery, which carries a maximum potential sentence of 15 years in prison; one count of paying illegal compensation to a judicial employee, which carries a maximum potential sentence of five years in prison; and one count of making material false statements, which carries a maximum potential sentence of five years in prison.

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

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

The case is being prosecuted by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Frank Balsamello, Jarrod L. Schaeffer, and Stephanie Simon, with the assistance of Paralegal Specialist Christopher de Grandpre, are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that AMIT BHARDWAJ, the former Chief Information Security Officer at Lumentum Holdings Inc. (“Lumentum”), was sentenced by U.S. District Judge Gregory H. Woods to 24 months in prison for his participation in a scheme to commit insider trading based on material, non-public information (“MNPI”) that BHARDWAJ misappropriated from his employer, Lumentum.  BHARDWAJ previously pled guilty to 13 counts relating to the insider trading scheme.

U.S. Attorney Damian Williams said: “Amit Bhardwaj violated the trust placed in him by his employer by tipping his associates with valuable, non-public information regarding Lumentum’s planned corporate acquisitions.  Today’s sentence should serve as a stark reminder to corporate executives regularly entrusted with confidential business information that if you try to illegally profit from this information, you will pay a stiff price.”

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

In approximately December 2020, BHARDWAJ learned that Lumentum was considering acquiring Coherent, Inc (“Coherent”).  Based on this information, BHARDWAJ purchased Coherent stock and call options, then tipped three associates –– his friend Dhirenkumar Patel, another friend, and one of BHARDWAJ’s close family relatives –– and these individuals all traded in Coherent securities as a result.  BHARDWAJ and Patel agreed that Patel would pay BHARDWAJ 50% of the profits that Patel earned by trading in Coherent based on the MNPI provided by BHARDWAJ.  When Coherent’s stock price increased substantially following the announcement of the Lumentum acquisition, BHARDWAJ, his close family member, his friend Patel, and another friend closed their positions in Coherent securities and collectively profited by nearly $900,000.

In or about October 2021, BHARDWAJ learned that Lumentum was engaged in confidential discussions with Neophotonics Corporation (“Neophotonics”) about a potential acquisition.  BHARDWAJ provided this information to Srinivasa Kakkera, Abbas Saeedi, and Ramesh Chitor, and these individuals all subsequently traded in Neophotonics securities.  In connection with Chitor’s trading, BHARDWAJ and Chitor agreed that Chitor and BHARDWAJ would split the profits equally.  When Neophotonics’s stock price increased substantially following the announcement of the Lumentum acquisition in November 2021, Kakkera, Saeedi, and Chitor closed their positions in Neophotonics securities and collectively made approximately $4.3 million in realized and unrealized profits.

After they were interviewed by the Federal Bureau of Investigation (“FBI”) voluntarily and served with federal grand jury subpoenas on approximately March 29, 2022, BHARDWAJ took steps to obstruct the federal investigation of their conduct.  On the day of the March 29, 2022, FBI interviews, BHARDWAJ drove to the homes of certain of his co-conspirators to encourage them not to tell the federal authorities the truth about their insider trading scheme.  BHARDWAJ and his associates subsequently met in person on multiple occasions and discussed, among other things, potential false stories that would conceal their insider trading scheme.  They also created false documents to buttress lies regarding payments that were, in reality, related to the insider trading scheme.

*                *                *

In addition to the prison sentence, BHARDWAJ, 49, of San Ramon, California, was ordered to forfeit $547,286 and pay a fine of $975,000.

Mr. Williams praised the outstanding work of the FBI.  He also acknowledged the assistance of the Securities and Exchange Commission, which separately initiated civil proceedings against BHARDWAJ. 

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

Damian Williams, the United States Attorney for the Southern District of New York, announced that SINA MOAYEDI, the owner of a construction company, Montage, Inc., was sentenced today to 10 years in prison, stemming from his 25-year fraud on the United States Government.  MOAYEDI pled guilty in April 2023 to conspiracy to commit wire and bank fraud, conspiracy to commit bribery of a public official, and aggravated identity theft.  MOAYEDI’s sentence was imposed by U.S. District Judge Jed S. Rakoff, who also presided over his guilty plea.

U.S. Attorney Damian Williams said: “From 1995 until 2021, Sina Moayedi defrauded the U.S. Government and various of its agencies through a sprawling, sophisticated scheme.  Moayedi lied repeatedly about his company’s ownership and qualifications, including by claiming that it was woman-owned and Hispanic-owned; he lied to obtain a Top-Secret national security clearance; and he repeatedly paid bribes to a State Department employee to illegally obtain inside information.  In total, Moayedi’s company fraudulently obtained more than 25 government contracts worth more than $125 million.  Even after he was arrested in this case, Moayedi continued to commit crime, destroying electronic evidence of his frauds.  For his brazen fraud on the federal government, Moayedi has now been sentenced to prison.”

According to court filings and statements made in Manhattan federal court:

 In 1986, MOAYEDI founded Montage, Inc., a U.S.-based business that is primarily involved in Government construction projects, including embassies, consulates, military posts, and marine barracks around the world.  From 1995 to 2021, MOAYEDI defrauded the U.S. Government — including the State Department, Treasury Department, Department of Defense, and General Services Administration — by lying in various respects.  In bids for contracting work, MOAYEDI mispresented his company’s ownership, his employees’ qualifications, his company’s construction experience, and his company’s financial condition, among other things. 

As to ownership, MOAYEDI falsely represented, repeatedly, that Montage was a female-owned business (or a female- and minority-owned business) in order to secure unmerited advantages in the bidding process.  In fact, MOAYEDI founded, owned, ran, and controlled Montage, and he made all material decisions on Montage’s behalf.  As MOAYEDI revealed to a bank that inquired about Montage’s ownership status in 2016, “I am the sole owner and president of Montage and have always been.” 

As to his employees’ qualifications, MOAYEDI significantly overstated the qualifications of various Montage employees in order to, among other things, meet State Department and contractual requirements for minimum experience in certain key positions.  For instance, MOAYEDI claimed, falsely, that certain Montage employees possessed engineering degrees.  He also claimed, falsely, that certain individuals worked for Montage when, in fact, they did not.

As to Montage’s construction experience, MOAYEDI submitted bids to the Government in which he repeatedly falsified Montage’s purported construction experience in order to burnish the company’s alleged credentials.  To ensure that the U.S. Government did not uncover these lies, MOAYEDI “backstopped” this fabricated experience by creating fraudulent email accounts and personas, so that someone else appeared to be “vouching” that Montage had performed this prior work.  This required creating online web domains (the “Fabricated Domains”), so that Montage’s purported references appeared legitimate.  These Fabricated Domains were extremely similar to, but one character or word different from, the legitimate web domains associated with actual entities. 

As to financial condition, MOAYEDI paid a Certified Public Accountant to prepare at least four different sets of books and records, each of which was provided to a different recipient (e.g., one fraudulent set for the U.S. Government, another fraudulent set for the bank, another fraudulent set for a company that sold construction bonds, etc.).

And to ensure Montage’s eligibility for sensitive U.S. Government contracts, MOAYEDI lied to obtain and maintain his Top-Secret national security clearance, including by concealing his ties to Iran, such as his dual citizenship with Iran, his Iranian passport, and his travel to Iran.

Further, between 2014 and 2020, MOAYEDI repeatedly paid cash bribes and kickbacks to an engineer in the State Department’s Overseas Building Operations division, May Salehi, in exchange for confidential inside information relating to several State Department construction projects, including projects in Ecuador, Spain, and Bermuda.  For instance, in late 2016 and early 2017, MOAYEDI paid $60,000 in cash to Salehi after Salehi provided confidential inside bidding information to MOAYEDI about the relationship between Montage’s original bid and his competitors’ bids — information that allowed Montage to raise its bid by nearly $1 million yet remain the lowest bidder on a construction project that was ultimately awarded to Montage. 

In addition to fraudulently obtaining government contracts, MOAYEDI’s company also committed fraud in the execution of government contracts, including by using substandard materials, using unqualified personnel, and falsifying an architect’s signature and stamp on architectural plans that had not been reviewed by the architect, including plans that related to safety and structural issues, such as fire protection, roof design, and structural steel drawings.

MOAYEDI also defrauded his primary bank (“Bank-1”) through various misrepresentations.  Montage had a multimillion-dollar line of credit at Bank-1, which MOAYEDI maintained through misrepresentations about Montage’s ownership and the value, progress, status, and existence of construction projects that Montage was performing for the U.S. Government.  For instance, in or about both 2014 and 2019, MOAYEDI made material misrepresentations to Bank-1 in support of an annual extension of Montage’s line of credit, including misrepresentations about purportedly lucrative “classified” government construction projects with distinctive names like “Area 6,” which, in fact, did not exist.

MOAYEDI also obstructed justice in multiple respects: (i) in September 2021, shortly after his release on bail in this case, MOAYEDI destroyed electronic evidence of his fraud on the U.S. Government by deleting six Fabricated Domains, which (as noted) he had used to help inflate Montage’s purported construction experience in bids for U.S. Government construction projects; (ii) shortly after the execution of search warrants at Montage’s offices in September 2020, MOAYEDI witness tampered by pressuring a co-conspirator to lie to investigators; and (iii) during a civil lawsuit between the State Department and Montage, MOAYEDI lied during a sworn deposition in 2019 by falsely claiming that a Hispanic woman had been the President of Montage “ever since” 2002 and that he was merely the Vice President of Montage.

Finally, in October 2023, the Court held a multiday Fatico hearing regarding the quality of construction that MOAYEDI and Montage provided the State Department.  The Court determined that MOAYEDI “provided grossly inadequate construction for several of the contracts of which he was in charge” and “that these numerous defects were intentional.”  In particular, the Court found that, “[r]epeatedly, Moayedi falsely inflated the credentials of key personnel -- and in some cases, submitted names of people who never even worked for Montage -- that he touted to the State Department to win bids, only to send in their stead people that he knew were patently unqualified for their roles once he secured the contract in question.”

*                *                *

In addition to his prison sentence, MOAYEDI, 68, of Chevy Chase, Maryland, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $6,588,679.63 and forfeit $17,795,098.50.

May Salehi was previously sentenced to one year in prison, three years of supervised release, a fine of $500,000, and forfeiture of $60,000.

Mr. Williams praised the exceptional investigative work of the State Department, Office of Inspector General; Special Agents from the U.S. Attorney’s Office for the Southern District of New York; and the Internal Revenue Service. 

The Office’s Complex Frauds and Cybercrime Unit is handling this criminal case.  Assistant U.S. Attorney Michael D. Neff is in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced that ELIEZER TILSON, a real estate promoter based in Israel, pled guilty to violating the Travel Act in connection with his embezzlement of $650,000 in investor funds. 

U.S. Attorney Damian Williams said: “Investment fraud, like all financial crimes, has the potential to turn lives upside down and breed distrust in vital economic sectors.  Eliezer Tilson took advantage of real estate’s integral role in the U.S. economy, admitting today to defrauding innocent victims who believed their investments were secure when, in fact, their money was being used to pay off debts and other victims.  This Office will continue to keep a watchful eye on the markets and prosecute those attempting to deceive the investing public.”

According to the allegations contained in the Information: 

In October 2019, TILSON solicited investments from two investors in New York City in an investment fund that focused on multifamily residential real estate projects.  The two investors together sent $650,000 to TILSON for investment in the fund.  TILSON never transmitted any of the victims' money to the fund.  Instead, he used most of the money to pay dividends to other investors in separate, unrelated real estate projects and pay down prior debt incurred by other, unrelated entities.

When the victims first asked why their funds had not arrived at the investment fund, TILSON falsely assured them that the fund had their money.  He later told the victims that he had arranged to send their money to the fund by wire transfer but that the wire had not yet gone through.  He subsequently sent the victims a document purportedly from his bank showing a balance of more than $800,000 in his account when, in fact, that account was overdrawn.  The next day, TILSON sent the victims a purported bank document falsely indicating that he had wired the first victim's money back to him and another purported bank document falsely indicating that his account had a balance of more than $400,000 when the account was overdrawn.  TILSON admitted to the victims that he had taken their money a few days later to make other payments.

*                *                *

TILSON, 37, of Netanya, Israel, pled guilty to one count of violating the Travel Act, which prohibits the use of facilities in interstate and foreign commerce, including wire communications, to carry out unlawful activities such as engaging in monetary transactions in property derived from fraud in the sale of securities.  It carries a maximum sentence of five years in prison. 

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

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

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

Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of GINA MESTRE, a former New York City Police Officer, in connection with her involvement in obstructing a federal investigation into the Shooting Boys gang and serving as an accessory after the fact to a murder committed by the gang’s leader.  MESTRE pled guilty today before U.S. District Judge Denise Cote.  

U.S. Attorney Damian Williams said: “As she has now admitted, Gina Mestre, a former NYPD Officer, abused her position of public trust and betrayed the oath she took to protect and serve the citizens of New York City by helping a gang member evade capture for a murder of a rival gang member that he committed in broad daylight.  When law enforcement officers break the laws they are sworn to uphold, they do a disservice to their fellow officers, to the departments that employ them, and to the public they serve.  My Office will work tirelessly with our law enforcement partners to uncover and prosecute such corruption.”    

As alleged in the Indictment, other public court documents, and statements made during court proceedings:

MESTRE was an NYPD Police Officer from July 2013 to May 2022 and assigned to the 52nd Precinct’s Public Safety Unit.  In the summer of 2020, a major focus of the precinct and the Public Safety Unit was the reduction of gun violence, much of which was committed by members of the Shooting Boys gang.

The Shooting Boys gang is a criminal organization based in the University Heights section of the Bronx.  Since at least 2017, members of the gang have sold drugs, used guns, and committed numerous acts of violence against rival gang members.  The gang’s territory and base of operations fell within the jurisdiction of the NYPD’s 52nd Precinct, where MESTRE worked.  The leader of the Shooting Boys was Andrew Done, a/k/a “Caballo.”

In or about June 2020, MESTRE began communicating with Done through secret social media accounts and phone numbers.  MESTRE and Done began an intimate relationship, during which MESTRE provided Done and other gang members with confidential, non-public law enforcement information about the federal grand jury investigation into the Shooting Boys.  For example, MESTRE warned Done and other gang members that federal authorities were investigating the gang and preparing to bring a federal indictment.  MESTRE also warned Done about impending law enforcement operations, enabling Done and other gang members to conceal their criminal activity.  In addition, MESTRE disclosed the identity of a witness cooperating with law enforcement and providing information about the gang, which allowed Done and other Shooting Boys to assault and intimidate the witness in an effort to prevent the witness from further cooperation.  

On November 5, 2020, Done shot and killed a rival gang member (“Victim-1”) as Victim-1 sat in his car in the Bronx.  NYPD Detectives investigating the murder recovered security camera video capturing Done’s commission of the murder.  Several members of the 52nd Precinct were called upon to assist in the identification of the person captured on the video.  MESTRE was one of several officers who identified Done as the perpetrator.

During the manhunt to apprehend Done, of which MESTRE was a part, MESTRE covertly advised Done that authorities were looking for him and sent Done a copy of the video that showed him committing the murder (thus making clear to Done that the evidence against him was overwhelming).  In the days and weeks following the murder, MESTRE continued to secretly communicate with Done and warn him about law enforcement’s efforts to capture him, which helped him avoid apprehension and eventually flee the United States.  During this time, while authorities were trying to locate Done, MESTRE was aware of the cellphone numbers being used by Done, communicated with Done while he used those cellphones, knew that the cellphone numbers could be used by law enforcement to track Done’s location, but failed to share the information regarding Done’s use of the cellphone numbers with other law enforcement officers.

In March 2022, 10 members of the Shooting Boys were charged in a 15-count indictment with various federal crimes, including racketeering conspiracy and murder.  Done was charged with the murder of Victim-1 and was apprehended in the Dominican Republic several months later. 

On November 17, 2022, Done pled guilty to racketeering conspiracy and admitted to murdering Victim-1.  On February 22, 2023, Done was sentenced to 35 years in prison.

*                *                *

MESTRE, 33, of Mohegan Lake, New York, pled guilty to one count of accessory after the fact to murder in aid of racketeering, which carries a maximum sentence of 15 years in prison.

The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  MESTRE will be sentenced by Judge Cote on March 21, 2024.

Mr. Williams praised the outstanding investigative work of the NYPD’s Internal Affairs Bureau, Group 25, and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.   

The case is being prosecuted by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Dominic A. Gentile and Jim Ligtenberg are in charge of the prosecution.  

Damian Williams, the United States Attorney for the Southern District of New York, announced that JALEEL SHAKOOR, a/k/a “Midnight,” was sentenced today to 30 years in prison in connection with the murder of Gerry Mazzella on June 3, 2021, in the Bronx, New York.  SHAKOOR previously pled guilty to racketeering conspiracy and interstate transportation of a firearm before U.S. District Judge Colleen McMahon, who imposed today’s sentence. 

U.S. Attorney Damian Williams said: “Jaleel Shakoor murdered 26-year-old Gerry Mazzella by shooting him in the back of the neck from point-blank range.  Mazzella’s death was senseless.  New Yorkers must be able to lead their lives free from the threat of gang violence.  Gang members who commit violent crimes will be apprehended and prosecuted to the fullest extent of the law.”

As alleged in the Indictment and other documents filed in federal court and based on statements made in public court proceedings: 

From at least 2020 to 2022, SHAKOOR was a member of the Untouchable Gorilla Stone Nation (“Gorilla Stone”), which is a set of the national Bloods gang.  Gorilla Stone operated primarily in the northeast United States, including in the Bronx, and in the jails and prisons of New York City and the State of New York.

Members of Gorilla Stone committed robberies and distributed controlled substances in order to enrich themselves.  They also murdered and assaulted members of rival gangs and members of Gorilla Stone in order to resolve disputes within the gang.  Gorilla Stone members promoted and celebrated the gang’s criminal conduct — including drug distribution, acts of violence, and firearms usage — on social media.

On June 3, 2021, in the vicinity of West 165th Street and Woodycrest Avenue in the Bronx, SHAKOOR shot Mazzella in the back of the neck, causing Mazzella’s death.  SHAKOOR committed this murder to retaliate against one of Mazzella’s friends, with whom SHAKOOR had an ongoing, gang-related dispute.

*                *                *

In addition to his prison sentence, SHAKOOR, 28, of the Bronx, New York, was sentenced to three years of supervised release.

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

This case is being prosecuted by the Office’s Violent & Organized Crime Unit.  Assistant U.S. Attorneys Patrick R. Moroney, Christopher D. Brumwell, and Emily A. Johnson are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that DUJOHN WILLETTE was sentenced to 47 months in prison in connection with a shootout he engaged in on September 27, 2021, that resulted in a 14-year-old being shot in the ankle.  WILLETTE previously pled guilty before U.S. District Judge Richard M. Berman, who also imposed today’s sentence, to one count of possessing ammunition after conviction for a felony.

U.S. Attorney Damian Williams said: “In September 2021, Dujohn Willette engaged in a shootout in broad daylight in the middle of a crowded street in the Bronx.  Residents of the Bronx were endangered that day, and a 14-year-old was injured.  Willette is a repeat offender, having been prosecuted by our Office twice before for illegally possessing firearms.  As today’s sentence demonstrates, our Office is committed to keeping New York City safe by vigorously prosecuting perpetrators of gun violence.”

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

At approximately 2:32 p.m. on September 27, 2021, WILLETTE was riding his moped on the sidewalk of East 228th Street in the Bronx.  As WILLETTE approached the corner of East 228th Street and White Plains Road, he rode past a group of men, jumped off his moped, and, while running backwards, fired a gun.  In total, WILLETTE and another shooter shot at each other seven times.  Below are two photographs showing WILLETTE firing his weapon:

In the crossfire, a 14-year-old boy was shot in the ankle. 

Before this conviction, WILLETTE had three prior felony convictions for illegally possessing firearms and had twice before been prosecuted by the U.S. Attorney’s Office for possessing a firearm after a felony conviction. 

*                *                *

In addition to his prison term, WILLETTE, 35, of the Bronx, New York, was sentenced to three years of supervised release.

Mr. Williams praised the outstanding investigative work of the Special Agents of the U.S. Attorney’s Office.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Adam Sowlati and Danielle Sassoon are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, Frank A. Tarentino III, the Special Agent in Charge of the New York Field Office of the Drug Enforcement Administration (“DEA”), and Robert Noble, Chief of the Yorktown Police Department, announced that PERRY FREEMAN was charged today with distributing fentanyl that resulted in the death of a victim and illegally possessing ammunition.  FREEMAN was arrested and presented today before U.S. Magistrate Judge Andrew E. Krause. 

U.S. Attorney Damian Williams said: “As alleged, Perry Freeman sold fentanyl to a victim who died a horrific death shortly after taking the drugs.  Investigators concluded that the victim parked his car and, with his foot on the gas, passed out from ingesting lethal levels of the drugs allegedly provided by Freeman.  The engine sparked a fire that engulfed the vehicle and burned the victim’s body.  We also allege that Freeman regularly sold fentanyl to a confidential informant and warned the informant to be careful with the drugs, indicating he knew how unsafe his product was.  This Office will not rest until those who peddle this poison have been brought to justice.”

DEA Special Agent in Charge Frank A. Tarentino III said: “Data doesn’t lie, and law enforcement continues to track fatal fentanyl poisonings to the person responsible.  This arrest is an example of DEA and our law enforcement partners’ efforts to thwart more drug poisonings and bring to justice those responsible for causing the most harm to our communities.  I commend the men and women of the Yorktown Police Department, the DEA’s Westchester Resident Office’s Tactical Diversion Squad, and the U.S. Attorney’s Office for the Southern District of New York for their tenacious work on this investigation.” 

Yorktown Police Chief Robert Noble said: “It is good for our community to see their local police department request assistance from federal agencies like the DEA and the U.S. Attorney’s Office for the Southern District of New York and have it culminate with the arrest of an alleged dangerous drug dealer.  I commend the determination, intelligence, and teamwork demonstrated throughout this investigation.  Yorktown is a law and order community.  We’ll continue to work hard, share information, and work shoulder to shoulder on our streets with all of our partners in law enforcement to keep it that way.”

As alleged in the Complaint:[1]

On or about November 10, 2021, FREEMAN sold fentanyl to his victim.  Shortly thereafter, the police responded to a report of a burning car in a parking lot in 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, declared dead, was pulled out.  Investigators determined that the car caught on fire after overheating while the accelerator pedal was depressed for an excessive period and 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.  According to a report prepared by the Department of Laboratories and Research, as well as a conversation between a law enforcement officer and a member of the Medical Examiner’s office, the victim had lethal levels of both fentanyl and norfentanyl, a metabolite of fentanyl, in his blood and there was some darkening of his lungs, which indicated smoke inhalation before his death.  Moreover, the victim’s cause of death was certified as both acute fentanyl intoxication and accident.

*                *                *

FREEMAN, 37, of Mohegan Lake, New York, is charged with one count of fentanyl distribution resulting in death, which carries a minimum sentence of 20 years in prison and a maximum sentence of life in prison, and one count of illegally possessing ammunition as a convicted felon, which carries a maximum sentence of 15 years in prison. 

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

Mr. Williams praised the outstanding work of the DEA and the Yorktown Police Department.

The case is being prosecuted by the Office’s White Plains Division.  Assistant U.S. Attorneys Michael D. Maimin and Ben Arad 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, constitutes only allegations, and every fact described therein should be treated as an allegation.

Damian Williams, the United States Attorney for the Southern District of New York, Stuart M. Goldberg, the Acting Deputy Assistant Attorney General for Criminal Matters of the Justice Department’s Tax Division, and Jim Lee, the Chief of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the filing of criminal charges against Swiss Bank, BANQUE PICTET ET CIE SA (“BANQUE PICTET” or the “Bank”) for conspiring with U.S. taxpayers and others to hide more than $5.6 billion in 1,637 secret bank accounts in Switzerland and elsewhere and to conceal the income generated in those accounts from the IRS.

As part of today’s resolution, BANQUE PICTET entered into a Deferred Prosecution Agreement (“DPA”) and agreed to pay approximately $122.9 million to the U.S. Treasury.  Today’s resolution is one of a series of cases brought by the Department of Justice in connection with its investigations since 2008 into facilitation of offshore U.S. tax evasion by foreign banks.  The case has been assigned to U.S. District Judge Edgardo Ramos. 

U.S. Attorney Damian Williams said: “As it has admitted today, Banque Pictet knowingly conspired to conceal from the IRS the income generated by accounts which held more than $5.6 billion.  Thanks to the hard work of the career prosecutors of this Office and our law enforcement partners, Banque Pictet has agreed to pay more than $122.9 million and will continue to cooperate with the Department of Justice.  Rooting out financial malfeasance remains a priority for this Office, and we encourage companies and financial institutions to come to us to report wrongdoing before we come to you.”

Acting Deputy Assistant Attorney General Stuart M. Goldberg said: “Today, Banque Pictet et Cie admitted to actively helping U.S. taxpayers use coded accounts, foreign trusts and entities, nominee beneficiaries and other deceits to conceal their income and assets abroad.  For this criminal conduct the bank will be paying nearly $122.9 million in restitution, disgorgement of fees and a financial penalty, and is required to fully cooperate with investigations relating to these secret accounts.”

IRS-CI Chief Jim Lee said: “This case should provide a clear message to others who try to hide their assets and income offshore.  Our special agents are experts in following the money, and they are the best at uncovering schemes that try to defraud the U.S. tax system.  Offshore tax evasion is a priority for IRS Criminal Investigation, and today’s deferred prosecution agreement with Bank Pictet collects more than $120 million owed to the U.S. government.”

According to documents filed today in Manhattan federal court:

The Pictet Group was founded in 1805 and is a privately held Swiss financial institution headquartered in Geneva that has historically operated as a general partnership and, since 2014, as a corporate partnership.  A limited number of managing partners, generally eight or fewer, collectively known as “The Salon,” own and manage the Pictet Group.

As of December 31, 2014, the Pictet Group had approximately 3,800 employees in various locations, primarily in Switzerland, but also in Luxembourg, Hong Kong, Singapore, and the Bahamas.   The Pictet Group operates two main business divisions: institutional asset management and private banking for individuals.

From 2008 to 2014, the Pictet Group’s private banking division was operated by the group’s following banking entities: the Swiss bank (BANQUE PICTET & CIE SA); Pictet & Cie (Europe) SA, headquartered in Luxembourg; Bank Pictet & Cie (Asia) Ltd. in Singapore; and the Bahamian bank, Pictet Bank & Trust Ltd.  The Pictet Group provided offshore corporation and trust formation and administration services to certain U.S. taxpayers, first through the Estate Planning and Trust Services unit and later through a wholly owned subsidiary called Rhone Trust and Fiduciary Services SA (Rhone).

As of December 31, 2014, the Pictet Group’s private banking division managed or held custody of approximately $165 billion in assets under management (“AUM”).  From 2008 to 2014, the Pictet Group served approximately 3,736 private accounts that had U.S. taxpayers as beneficial owners, whose aggregate maximum AUM, including declared assets, was approximately $20 billion.

Though the Pictet Group adopted early measures to confirm that U.S. clients complied with U.S. law, from 2008 through 2014, the Pictet Group assisted certain U.S. taxpayer-clients with Pictet Group accounts in evading their U.S. tax obligations and otherwise hiding undeclared accounts[1] from the IRS.

In total, from 2008 through 2014, the Pictet Group held 1,637 U.S. Penalty Accounts,[2] with aggregate maximum AUM of approximately $5.6 billion in January 2008, on behalf of U.S. taxpayer-clients, who collectively evaded approximately $50.6 million in U.S. taxes.

The Pictet Group assisted U.S. taxpayer-clients with evading their U.S. taxes by opening and maintaining undeclared accounts for U.S. taxpayer-clients at the Pictet Group, either directly or through external asset managers.  The Pictet Group also maintained accounts of certain U.S. taxpayer-clients within the Pictet Group in a manner that allowed the U.S. taxpayer-clients to further conceal their undeclared accounts from the IRS.  The Pictet Group and certain of its employees knew or should have known that some of their U.S. taxpayer-clients were evading U.S. taxes.  In every instance, managing partners approved the opening of new private client relationships and were informed of the closing of U.S. taxpayer-clients’ accounts, which included some undeclared accounts.

As further detailed below, the Pictet Group used a variety of means to assist U.S. taxpayer-clients in concealing their undeclared accounts, including by:

• Forming or administering offshore entities in whose name the Pictet Group opened and maintained accounts, some of which were undeclared, for U.S. taxpayer-clients; 
• Opening and maintaining undeclared accounts in the names of offshore entities formed by others for U.S. taxpayer-clients;
• Opening and maintaining Private Placement Life Insurance policy accounts, also called insurance wrappers, held in the name of insurance companies but beneficially owned by U.S. taxpayers and improperly managed or funded through undeclared accounts at the Pictet Group;
• Transferring funds from undeclared U.S. taxpayer-client accounts to accounts nominally held by non-U.S. clients but still controlled by U.S. taxpayer-clients via fictitious donations, thus assisting U.S. taxpayer-clients in continuing to maintain undeclared funds offshore; and
• Providing traditional Swiss banking products such as hold-mail account services, where account-related mail is held at the bank rather than sent to the client, and coded or numbered accounts; and
• Accepting IRS Forms W-8BEN[3] or Pictet Group’s substitute forms that the group knew or should have known falsely stated or implied under penalty of perjury that offshore entities beneficially owned the assets in the undeclared accounts.

The $122.9 million BANQUE PICTET agreed to pay to the U.S. Treasury pursuant to the DPA consists of (i) $52,164,201 to the United States, which represents gross fees (not profits) that the bank earned on its undeclared accounts between 2008 and 2014; (ii) $31,844,192 in restitution to the IRS, which represents the unpaid taxes resulting from BANQUE PICTET’s participation in the conspiracy; and (iii) a $38,950,998 penalty.  The penalty considers the nature and seriousness of the Pictet Group's conduct, the Bank’s extensive internal investigation, the Bank’s substantial provision of documents to the Justice Department, and the Bank’s facilitation of witness interviews.  The Bank further implemented remedial measures to protect against the use of its services for future tax evasion.

In addition to the payment, BANQUE PICTET also agrees under the DPA to accept responsibility for its conduct by stipulating to the accuracy of an extensive Statements of Facts.  BANQUE PICTET further agreed to refrain from all future criminal conduct, implement remedial measures and cooperate fully with further investigations into hidden bank accounts.  Specifically, the Bank is required to cooperate fully with ongoing investigations and affirmatively disclose any information it may later uncover regarding U.S.-related accounts.  The Bank is also required to disclose information consistent with the Justice Department’s Swiss Bank Program relating to accounts closed between January 1, 2008, and December 31, 2022.  The agreements provide no protection from criminal or civil prosecution for any individuals.

If BANQUE PICTET continues to comply with its agreement, the United States has agreed to defer prosecution of BANQUE PICTET for a period of three years, after which time the United States will seek to dismiss the charge against BANQUE PICTET.

*                *                *

Mr. Williams praised the outstanding investigative work of the special agents of IRS-CI.

The prosecution of this case is being handled by the Justice Department’s Tax Division and the Complex Frauds and Cybercrime Unit of the U.S. Attorney’s Office for the Southern District of New York.  Senior Litigation Counsel Nanette Davis of the Tax Division and Assistant U.S. Attorneys Daniel G. Nessim and Olga Zverovich are in charge of the prosecution.

[1] An “undeclared account” was a financial account beneficially owned by an individual subject to U.S. tax obligations and maintained in a foreign country that had not been reported by the individual account owner to the U.S. Government on an income tax return or an FBAR—a Report of Foreign Bank and Financial Accounts, FinCEN Form 114 (formerly known as Form TD F 90 22.1).

[2] “U.S. Penalty Accounts” are defined as U.S. accounts valued over $50,000 that the parties agree should be subject to a penalty for the offense conduct.

[3] The IRS Form W-8BEN is a tax form that identifies the foreign status of non-U.S. persons for U.S. tax withholding purposes.

Swiss private bank Banque Pictet et Cie SA admitted today to conspiring with U.S. taxpayers and others to hide more than $5.6 billion in 1,637 secret bank accounts in Switzerland and elsewhere and to conceal the income generated in those accounts from the IRS.

As part of today’s resolution, Banque Pictet entered into a deferred prosecution agreement and agreed to pay approximately $122.9 million to the U.S. Treasury. Today’s resolution is one of a series of cases by the Justice Department in connection with its investigations since 2008 into facilitation of offshore U.S. tax evasion by foreign banks. The case has been assigned to U.S. District Judge Edgardo Ramos for the Southern District of New York. 

“Today, Banque Pictet et Cie admitted to actively helping U.S. taxpayers use coded accounts, foreign trusts and entities, nominee beneficiaries and other deceits to conceal their income and assets abroad,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg. “For this criminal conduct the bank will be paying nearly $122.9 million in restitution, disgorgement of fees and a financial penalty, and is required to fully cooperate with investigations relating to these secret accounts.”

“As it has admitted today, Banque Pictet knowingly conspired to conceal from the IRS the income generated by accounts which held more than $5.6 billion,” said U.S. Attorney Damian Williams for the Southern District of New York. “Thanks to the hard work of the career prosecutors of this Office and our law enforcement partners, Banque Pictet has agreed to pay more than $122.9 million and will continue to cooperate with the Department of Justice.  Rooting out financial malfeasance remains a priority for this Office, and we encourage companies and financial institutions to come to us to report wrongdoing before we come to you.”

“This case should provide a clear message to others who try to hide their assets and income offshore. Our special agents are experts in following the money, and they are the best at uncovering schemes that try to defraud the U.S. tax system,” said IRS Criminal Investigation Chief Jim Lee. “Offshore tax evasion is a priority for IRS Criminal Investigation, and today’s deferred prosecution agreement with Bank Pictet collects more than $120 million owed to the U.S. government.”

According to documents filed today in Manhattan federal court:

The Pictet Group was founded in 1805 and is a privately held Swiss financial institution headquartered in Geneva that has historically operated as a general partnership and, since 2014, as a corporate partnership. A limited number of managing partners, generally eight or fewer, collectively known as “The Salon,” own and manage the Pictet Group.

As of Dec. 31, 2014, the Pictet Group had approximately 3,800 employees in various locations, primarily in Switzerland, but also in Luxembourg, Hong Kong, Singapore and the Bahamas. The Pictet Group operates two main business divisions: institutional asset management and private banking for individuals.

From 2008 to 2014, Pictet Group’s private banking division was operated by the group’s following banking entities: the Swiss bank (Banque Pictet & Cie SA); Pictet & Cie (Europe) SA, headquartered in Luxembourg; Bank Pictet & Cie (Asia) Ltd. in Singapore and the Bahamian bank, Pictet Bank & Trust Ltd. The Pictet Group provided offshore corporation and trust formation and administration services to certain U.S. taxpayers, first through the Estate Planning and Trust Services unit and later through a wholly owned subsidiary called Rhone Trust and Fiduciary Services SA (Rhone).

As of Dec. 31, 2014, the Pictet Group’s private banking division managed or held custody of approximately $165 billion in assets under management (AUM). From 2008 to 2014, the Pictet Group served approximately 3,736 private accounts that had U.S. taxpayers as beneficial owners, whose aggregate maximum AUM, including declared assets, was approximately $20 billion.

Though Pictet Group adopted early measures to confirm that U.S. clients complied with U.S. law, from 2008 through 2014, the Pictet Group assisted certain U.S. taxpayer-clients with Pictet Group accounts in evading their U.S. tax obligations and otherwise hiding undeclared accounts[1] from the IRS.

In total, from 2008 through 2014, the Pictet Group held 1,637 U.S. Penalty Accounts[2] with aggregate maximum AUM of approximately $5.6 billion in January 2008, on behalf of U.S. taxpayer-clients, who collectively evaded approximately $50.6 million in U.S. taxes.

The Pictet Group assisted U.S. taxpayer-clients with evading their U.S. taxes by opening and maintaining undeclared accounts for U.S. taxpayer-clients at the Pictet Group, either directly or through external asset managers. The Pictet Group also maintained accounts of certain U.S. taxpayer-clients within the Pictet Group in a manner that allowed the U.S. taxpayer-clients to further conceal their undeclared accounts from the IRS. The Pictet Group and certain of its employees knew or should have known that some of their U.S. taxpayer-clients were evading U.S. taxes. In every instance, managing partners approved the opening of new private client relationships and were informed of the closing of U.S. taxpayer-clients’ accounts, which included some undeclared accounts.

As further detailed below, the Pictet Group used a variety of means to assist U.S. taxpayer-clients in concealing their undeclared accounts, including by:

• forming or administering offshore entities in whose name the Pictet Group opened and maintained accounts, some of which were undeclared, for U.S. taxpayer-clients; 
• opening and maintaining undeclared accounts in the names of offshore entities formed by others for U.S. taxpayer-clients;
• opening and maintaining Private Placement Life Insurance policy accounts, also called insurance wrappers, held in the name of insurance companies but beneficially owned by U.S. taxpayers and improperly managed or funded through undeclared accounts at the Pictet Group;
• transferring funds from undeclared U.S. taxpayer-client accounts to accounts nominally held by non-U.S. clients but still controlled by U.S. taxpayer-clients via fictitious donations, thus assisting U.S. taxpayer-clients in continuing to maintain undeclared funds offshore;
• providing traditional Swiss banking products such as hold-mail account services, where account-related mail is held at the bank rather than sent to the client, and coded or numbered accounts and
• accepting IRS Forms W-8BEN[3] or Pictet Group’s substitute forms that the group knew or should have known falsely stated or implied under penalty of perjury that offshore entities beneficially owned the assets in the undeclared accounts.

The $122.9 million Banque Pictet agreed to pay to the U.S. Treasury pursuant to the deferred prosecution agreement consists of (i) $52,164,201 to the United States, which represents gross fees (not profits) that the bank earned on its undeclared accounts between 2008 and 2014; (ii) $31,844,192 in restitution to the IRS, which represents the unpaid taxes resulting from Banque Pictet’s participation in the conspiracy and (iii) a $38,950,998 penalty. The penalty considers the nature and seriousness of the Pictet Group's conduct, the Bank’s extensive internal investigation, the Bank’s substantial provision of documents to the Justice Department, and the Bank’s facilitation of witness interviews. The Bank further implemented remedial measures to protect against the use of its services for future tax evasion.

In addition to the payment, Banque Pictet also agrees under the deferred prosecution agreement to accept responsibility for its conduct by stipulating to the accuracy of an extensive statement of facts. Banque Pictet further agreed to refrain from all future criminal conduct, implement remedial measures and cooperate fully with further investigations into hidden bank accounts. Specifically, the Bank is required to cooperate fully with ongoing investigations and affirmatively disclose any information it may later uncover regarding U.S.-related accounts. The Bank is also required to disclose information consistent with the Justice Department’s Swiss Bank Program relating to accounts closed between Jan. 1, 2008, and Dec. 31, 2022. The agreements provide no protection from criminal or civil prosecution for any individuals.

If Banque Pictet continues to comply with its agreement, the United States has agreed to defer prosecution of Banque Pictet for a period of three years, after which time the United States will seek to dismiss the charge against Banque Pictet.

Acting Deputy Assistant Attorney for Criminal Matters General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Damian Williams for the Southern District of New York and Chief Jim Lee of the IRS Criminal Investigation made the announcement.

Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Williams praised the outstanding investigative work of the special agents of IRS Criminal Investigation.

Senior Litigation Counsel Nanette Davis of the Tax Division and Assistant U.S. Attorneys Daniel G. Nessim and Olga Zverovich for the Southern District of New York are prosecuting the case.

[1] An “undeclared account” was a financial account beneficially owned by an individual subject to U.S. tax obligations and maintained in a foreign country that had not been reported by the individual account owner to the U.S. Government on an income tax return or an FBAR—a Report of Foreign Bank and Financial Accounts, FinCEN Form 114 (formerly known as Form TD F 90 22.1).

[2] “U.S. Penalty Accounts” are defined as U.S. accounts valued over $50,000 that the parties agree should be subject to a penalty for the offense conduct. 

[3]     The IRS Form W-8BEN is a tax form that identifies the foreign status of non-U.S. persons for U.S. tax withholding purposes.

Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of SETH MARKIN in connection with his participation in a scheme to trade in stock of Pandion Therapeutics (“Pandion”) based on inside information that he misappropriated from his then-girlfriend, who was an attorney at a major law firm assigned to work on the acquisition of Pandion by Merck & Co. (“Merck”).  MARKIN was arrested in July 2022 and pled guilty to securities fraud based on insider trading before U.S. District Judge Edgardo Ramos.

U.S. Attorney Damian Williams said: “Seth Markin, who had been accepted into the Federal Bureau of Investigation as a new agent trainee, chose to act as if the law did not apply to him when he misappropriated confidential information, traded based on that information, and tipped several friends and family members, resulting in millions of dollars of illegally obtained trading profits.  Markin knew his actions were wrong, deleted evidence of his crimes, and lied to try to cover up his scheme.  No one is above the law, and this Office’s commitment to protecting the integrity of the financial markets remains a priority.”

As alleged in the Indictment, other public court documents, and statements made during court proceedings:

In early 2021, SETH MARKIN and BRANDON WONG together made more than $1.4 million in illegal profits by trading in stock based on inside information that MARKIN stole from his then-girlfriend, who was at the time an attorney at a major law firm in Washington D.C. (the “Law Firm Associate”).  At the time, MARKIN had been accepted into the Federal Bureau of Investigation (“FBI”) as a new agent trainee, and WONG was a systems analyst at an education company.  In February 2021, MARKIN secretly looked through the Law Firm Associate’s confidential work documents, without her permission, and learned that, in a matter of weeks, Merck, a publicly traded pharmaceutical company, was going to acquire Pandion, a publicly traded biotechnology company, for approximately three times the value of Pandion’s share price.  MARKIN immediately purchased Pandion stock on the basis of this material non-public information and also told several family members and friends to purchase Pandion’s stock, causing WONG, another friend, and several family members to do so, including Family Member-1, Family Member-2, Family Member-3, Family Member-4, and Friend-1.  In text messages, MARKIN assured WONG that he was “not uncertain” that when the “news drop[ped]” about Pandion, the price would “EXPLODE” and they would earn “triple gains.”  

WONG purchased hundreds of thousands of dollars’ worth of Pandion shares based on the material non-public information he received from MARKIN.  In addition to his purchases of Pandion stock, WONG told at least seven other people to purchase Pandion shares, causing some of the people he tipped to purchase tens or hundreds of thousands of dollars’ worth of Pandion stock, including Family Member-5, Friend-2, Friend-3, Friend-4, Friend-5, Friend-6, and Friend-7.

In total, MARKIN and WONG together caused at least 20 people to trade in Pandion stock based on the material non-public information that MARKIN misappropriated from his girlfriend, resulting in millions of dollars of illegally obtained trading profits.  To conceal their illegal insider trading scheme, MARKIN and WONG used an encrypted messaging application and deleted many of their text messages with each other.  They also agreed on a cover story that they could provide to law enforcement, namely, that if they were asked how they anticipated Pandion’s stock price increase, they could say they “read it on Stocktwit,” in reference to a social media platform for sharing stock ideas, and falsely say that the news was “publicly being announced there.”

After Merck’s acquisition of Pandion was announced publicly, and the Pandion stockholdings of MARKIN and WONG, and those whom they tipped, significantly increased in value, the defendants sold their shares of Pandion for significant profits.  With their illegal profits, the defendants and their tippees purchased luxury items and bought gifts for each other.  For example, WONG purchased for MARKIN a Rolex watch valued at approximately $40,000, a trip to Hawaii, and a meal at a three-Michelin-starred restaurant in New York that cost more than $1,000.  WONG also purchased a home in Florida.

Thereafter, MARKIN lied in order to hide his illegal insider trading.  In or about June 2021, after MARKIN and the Law Firm Associate had ended their relationship, and as MARKIN was preparing to begin training as a new agent at the FBI Academy in Quantico, Virginia, the Law Firm Associate called MARKIN to ask why MARKIN’s name had come up in an inquiry by the Financial Industry Regulatory Authority into trading in Pandion stock.  In response, MARKIN lied to the Law Firm Associate and falsely claimed that he did not trade in Pandion stock.

MARKIN subsequently took steps to further conceal his criminal activity.  On November 18, 2021, Markin lied to FBI agents when he was interviewed about his Pandion trading.  That day, Special Agents from the FBI interviewed MARKIN in connection with an investigation they told him was being conducted by law enforcement in the Southern District of New York relating to insider trading in Pandion stock.  During the interview, MARKIN adhered to the fake cover story he and WONG had concocted and falsely told the agents (i) that he learned about Pandion on StockTwits, (ii) that he purchased the stock because of a recent earnings report and a new board member addition, and (iii) that he did not know that his former girlfriend worked on the Pandion transaction.

*                *                *

MARKIN, 32, of Washington Crossing, Pennsylvania, pled guilty to one count of securities fraud, which carries a maximum term of 20 years in prison. 

WONG, 40, of New York, New York, pled guilty on April 10, 2023, to one count of securities fraud, which carries a maximum term of 20 years in prison.

BRIAN WONG, 45, of Secaucus, New Jersey, pled guilty on November 10, 2022, to being an accessory after the fact to conspiracy to commit securities fraud and tender offer fraud, which carries a maximum term of two and a half years in prison, and was sentenced on April 12, 2023, to three years’ probation with three months’ home confinement and forfeiture in the amount of $403,375.75. 

JONATHAN BECKER, 34, of Weehawken, New Jersey, pled guilty on September 20, 2023, to one count of securities fraud, which carries a maximum term of 20 years in prison.

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.  MARKIN will be sentenced by Judge Ramos on March 13, 2024; WONG will be sentenced by Judge Ramos on January 26, 2024; and BECKER will be sentenced by Judge Ramos on December 19, 2023. 

Mr. Williams praised the outstanding investigative work of the FBI and the Department of Justice’s Office of the Inspector General.  Mr. Williams also thanked the U.S. Securities and Exchange Commission, which has filed parallel civil actions.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Kiersten A. Fletcher, Nicolas Roos, and Negar Tekeei are in charge of the prosecution.

ਅੱਜ ਨਿਊਯਾਰਕ ਦੇ ਦੱਖਣੀ ਜ਼ਿਲ੍ਹੇ ਵਿੱਚ, ਨਿਊਯਾਰਕ ਸਿਟੀ ਵਿੱਚ ਇੱਕ ਅਮਰੀਕੀ ਨਾਗਰਿਕ ਦੀ ਹੱਤਿਆ ਕਰਨ ਦੀ ਨਾਕਾਮ ਸਾਜ਼ਿਸ਼ ਵਿੱਚ ਭਾਗ ਲੈਣ ਦੇ ਸਬੰਧ ਵਿੱਚ ਭਾਰਤੀ ਨਾਗਰਿਕ ਨਿਖਿਲ ਗੁਪਤਾ ਉਰਫ਼ ਨਿਕ, 52, ਦੇ ਖਿਲਾਫ ਕਿਰਾਏ ਦੇ ਲਈ ਕਤਲ ਦੇ ਦੋਸ਼ਾਂ ਵਿੱਚ ਇੱਕ ਪਰਤੱਖ ਮੁਕੱਦਮਾ ਅਣ-ਸੀਲ ਕਰ ਦਿੱਤਾ ਗਿਆ। ਚੈੱਕ ਅਧਿਕਾਰੀਆਂ ਨੇ ਸੰਯੁਕਤ ਰਾਜ ਅਤੇ ਚੈੱਕ ਗਣਰਾਜ ਵਿਚਕਾਰ ਦੁਵੱਲੀ ਹਵਾਲਗੀ ਸੰਧੀ ਦੇ ਅਨੁਸਾਰ 30 ਜੂਨ, 2023 ਨੂੰ ਗੁਪਤਾ ਨੂੰ ਗ੍ਰਿਫਤਾਰ ਕੀਤਾ ਅਤੇ ਨਜ਼ਰਬੰਦ ਕੀਤਾ।

ਅਦਾਲਤੀ ਦਸਤਾਵੇਜ਼ਾਂ ਦੇ ਅਨੁਸਾਰ, ਇਸ ਸਾਲ ਦੇ ਸ਼ੁਰੂ ਵਿੱਚ, ਇੱਕ ਭਾਰਤੀ ਸਰਕਾਰੀ ਕਰਮਚਾਰੀ (CC-1), ਭਾਰਤ ਵਿੱਚ ਅਤੇ ਹੋਰ ਥਾਵਾਂ 'ਤੇ ਗੁਪਤਾ ਸਮੇਤ ਹੋਰਾਂ ਨਾਲ ਮਿਲ ਕੇ ਕੰਮ ਕਰ ਰਿਹਾ ਸੀ, ਨੇ ਅਮਰੀਕਾ ਦੀ ਧਰਤੀ 'ਤੇ ਇੱਕ ਅਟਾਰਨੀ ਅਤੇ ਰਾਜਨੀਤਿਕ ਕਾਰਕੁਨ ਜੋ ਕਿ ਇੱਕ ਅਮਰੀਕੀ ਨਾਗਰਿਕ ਹੈ, ਦੀ ਹੱਤਿਆ ਕਰਨ ਦੀ ਸਾਜ਼ਿਸ਼ ਰਚੀ ਸੀ। ਨਿਊਯਾਰਕ ਸਿਟੀ (ਪੀੜਤ) ਵਿੱਚ ਰਹਿਣ ਵਾਲੇ ਭਾਰਤੀ ਮੂਲ ਦੇ।

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

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

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

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

18 ਜੂਨ ਜਾਂ ਇਸ ਤਰੀਕ ਨੂੰ, ਕੈਨੇਡਾ ਦੇ ਬ੍ਰਿਟਿਸ਼ ਕੋਲੰਬੀਆ ਵਿੱਚ ਇੱਕ ਸਿੱਖ ਮੰਦਰ ਦੇ ਬਾਹਰ ਨਕਾਬਪੋਸ਼ ਬੰਦੂਕਧਾਰੀਆਂ ਨੇ ਹਰਦੀਪ ਸਿੰਘ ਨਿੱਝਰ ਦਾ ਕਤਲ ਕਰ ਦਿੱਤਾ। ਨਿੱਝਰ ਵਿਕਟਿਮ ਦਾ ਸਹਿਯੋਗੀ ਸੀ, ਅਤੇ ਵਿਕਟਿਮ ਵਾਂਗ, ਸਿੱਖ ਵੱਖਵਾਦੀ ਲਹਿਰ ਦਾ ਆਗੂ ਅਤੇ ਭਾਰਤ ਸਰਕਾਰ ਦਾ ਸਪੱਸ਼ਟ ਆਲੋਚਕ ਸੀ। ਨਿੱਝਰ ਦੇ ਕਤਲ ਤੋਂ ਅਗਲੇ ਦਿਨ 19 ਜੂਨ ਨੂੰ ਜਾਂ ਲਗਭਗ, ਗੁਪਤਾ ਨੇ UC ਨੂੰ ਦੱਸਿਆ ਕਿ ਨਿੱਝਰ ਵੀ "ਨਿਸ਼ਾਨਾ ਸੀ" ਅਤੇ "ਸਾਡੇ ਬਹੁਤ ਸਾਰੇ ਨਿਸ਼ਾਨੇ ਹਨ।" ਗੁਪਤਾ ਨੇ ਅੱਗੇ ਕਿਹਾ ਕਿ, ਨਿੱਝਰ ਦੇ ਕਤਲ ਦੇ ਮੱਦੇਨਜ਼ਰ, ਪੀੜਤ ਨੂੰ ਮਾਰਨ ਲਈ "ਹੁਣ ਇੰਤਜ਼ਾਰ ਕਰਨ ਦੀ ਕੋਈ ਲੋੜ ਨਹੀਂ" ਸੀ। 20 ਜੂਨ ਨੂੰ ਜਾਂ ਇਸ ਦੇ ਲਗਭਗ, CC-1 ਨੇ ਗੁਪਤਾ ਨੂੰ ਪੀੜਤ ਬਾਰੇ ਇੱਕ ਖ਼ਬਰ ਭੇਜੀ ਅਤੇ ਗੁਪਤਾ ਨੂੰ ਸੁਨੇਹਾ ਦਿੱਤਾ, "[i] ਹੁਣ [a] ਤਰਜੀਹ ਹੈ”।

ਗੁਪਤਾ 'ਤੇ ਕਿਰਾਏ 'ਤੇ ਕਤਲ ਕਰਨ ਅਤੇ ਕਿਰਾਏ 'ਤੇ ਕਤਲ ਕਰਨ ਦੀ ਸਾਜ਼ਿਸ਼ ਰਚਣ ਦਾ ਦੋਸ਼ ਹੈ। ਹਰੇਕ ਗਿਣਤੀ ਵਿੱਚ 10 ਸਾਲ ਦੀ ਕੈਦ ਦੀ ਅਧਿਕਤਮ ਕਾਨੂੰਨੀ ਸਜ਼ਾ ਹੈ। ਇੱਕ ਸੰਘੀ ਜ਼ਿਲ੍ਹਾ ਅਦਾਲਤ ਦਾ ਜੱਜ ਯੂ.ਐੱਸ. ਸਜ਼ਾ ਸੁਣਾਉਣ ਦੇ ਦਿਸ਼ਾ-ਨਿਰਦੇਸ਼ਾਂ ਅਤੇ ਹੋਰ ਕਾਨੂੰਨੀ ਕਾਰਕਾਂ 'ਤੇ ਵਿਚਾਰ ਕਰਨ ਤੋਂ ਬਾਅਦ ਕੋਈ ਵੀ ਸਜ਼ਾ ਨਿਰਧਾਰਤ ਕਰੇਗਾ।

ਡੀਈਏ ਦੀ ਨਿਊਯਾਰਕ ਡਿਵੀਜ਼ਨ ਅਤੇ ਐਫਬੀਆਈ ਦੇ ਨਿਊਯਾਰਕ ਫੀਲਡ ਆਫਿਸ ਦੀ ਕਾਊਂਟਰ ਇੰਟੈਲੀਜੈਂਸ ਡਿਵੀਜ਼ਨ, ਡੀਈਏ ਦੇ ਸਪੈਸ਼ਲ ਓਪਰੇਸ਼ਨ ਡਿਵੀਜ਼ਨ, ਡੀਈਏ ਦੇ ਵਿਏਨਾ ਕੰਟਰੀ ਆਫਿਸ, ਐਫਬੀਆਈ ਦੇ ਪ੍ਰਾਗ ਕੰਟਰੀ ਆਫਿਸ, ਅੰਤਰਰਾਸ਼ਟਰੀ ਮਾਮਲਿਆਂ ਦੇ ਨਿਆਂ ਵਿਭਾਗ ਦੇ ਦਫਤਰ, ਅਤੇ ਚੈੱਕ ਗਣਰਾਜ ਦਾ ਰਾਸ਼ਟਰੀ ਡਰੱਗ ਹੈੱਡਕੁਆਰਟਰ।

ਨਿਊਯਾਰਕ ਦੇ ਦੱਖਣੀ ਜ਼ਿਲ੍ਹੇ ਲਈ ਸਹਾਇਕ ਯੂਐਸ ਅਟਾਰਨੀ ਕੈਮਿਲ ਐਲ. ਫਲੈਚਰ, ਐਸ਼ਲੇ ਸੀ. ਨਿਕੋਲਸ ਅਤੇ ਅਲੈਗਜ਼ੈਂਡਰ ਲੀ ਰਾਸ਼ਟਰੀ ਸੁਰੱਖਿਆ ਡਿਵੀਜ਼ਨ ਦੇ ਕਾਊਂਟਰ ਇੰਟੈਲੀਜੈਂਸ ਅਤੇ ਐਕਸਪੋਰਟ ਕੰਟਰੋਲ ਸੈਕਸ਼ਨ ਦੇ ਟ੍ਰਾਇਲ ਅਟਾਰਨੀ ਕ੍ਰਿਸਟੋਫਰ ਕੁੱਕ ਅਤੇ ਰਾਬਰਟ ਮੈਕੁਲਰਸ ਦੀ ਸਹਾਇਤਾ ਨਾਲ ਕੇਸ ਦੀ ਪੈਰਵੀ ਕਰ ਰਹੇ ਹਨ। ਟ੍ਰਾਇਲ ਅਟਾਰਨੀ ਏ.ਜੇ. ਰਾਸ਼ਟਰੀ ਸੁਰੱਖਿਆ ਡਿਵੀਜ਼ਨ ਦੇ ਅੱਤਵਾਦ ਵਿਰੋਧੀ ਸੈਕਸ਼ਨ ਦੇ ਡਿਕਸਨ।

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

ਨਿਖਿਲ ਗੁਪਤਾ ਨੂੰ ਸੁਪਰਸਾਈਡਿੰਗ ਇਲਜ਼ਾਮ

आज न्यूयॉर्क के दक्षिणी जिले में, 52 वर्षीय भारतीय नागरिक निखिल गुप्ता उर्फ निक के विरुद्ध भाड़े-पर-हत्या का आरोप लगाते हुए एक अभियोग पत्र खोला गया। यह आरोप न्यूयॉर्क शहर में एक अमेरिकी नागरिक की हत्या की नाकाम साजिश में उसकी भागीदारी के संबंध में लगाया गया है। चेक अधिकारियों ने संयुक्त राज्य अमेरिका और चेक गणराज्य के बीच द्विपक्षीय प्रत्यर्पण संधि के अनुसार 30 जून, 2023 को गुप्ता को गिरफ्तार कर लिया और हिरासत में ले लिया।

अदालती दस्तावेजों के अनुसार, इस वर्ष के प्रारंभ में, एक भारतीय सरकारी कर्मचारी (CC-1) ने भारत और अन्य स्थानों पर गुप्ता सहित अन्य लोगों के साथ मिलकर, अमेरिकी धरती पर एक वकील और राजनीतिक कार्यकर्ता की हत्या की निर्देश दिया, जो न्यूयॉर्क शहर में रहने वाला भारतीय मूल का अमेरिकी नागरिक था (पीड़ित)।

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

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

CC-1 के निर्देश पर, गुप्ता ने एक व्यक्ति से संपर्क किया, जिसके बारे में गुप्ता का मानना था कि वह एक आपराधिक सहयोगी है, लेकिन वास्तव में वह यू.एस. ड्रग प्रवर्तन प्रशासन (DEA) (CS) के साथ काम करने वाला एक गोपनीय स्रोत (CS) था, ताकि न्यूयॉर्क शहर में पीड़ित की हत्या करने के लिए एक हत्यारे को अनुबंधित करने में सहायता मिल सके। CS ने गुप्ता को एक कथित हिटमैन से मिलवाया, जो वास्तव में DEA का एक गोपनीय स्रोत अधिकारी (UC) था। इसके बाद CC-1 ने गुप्ता द्वारा मध्यस्थता किए गए सौदों में पीड़ित की हत्या के लिए UC को 100,000 डॉलर का भुगतान करने पर सहमति व्यक्त की। 9 जून के आसपास, CC-1 और गुप्ता ने एक सहयोगी के माध्यम से हत्या के लिए अग्रिम भुगतान के रूप में UC को 15,000 डॉलर नकद पहुंचाने की व्यवस्था की। इसके बाद CC-1 के सहयोगी ने मैनहट्टन स्थित UC को 15,000 डॉलर की राशि पहुंचा दी।

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

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

गुप्ता पर भाड़े-पर-हत्या करने और भाड़े-पर-हत्या की साजिश रचने का आरोप है। प्रत्येक मामले में अधिकतम 10 वर्ष की जेल की वैधानिक सजा का प्रावधान है। संघीय जिला न्यायालय का न्यायाधीश अमेरिकी सजा संबंधी दिशानिर्देशों और अन्य वैधानिक कारकों पर विचार करने के बाद ही कोई सजा निर्धारित करेगा।

DEA का न्यूयॉर्क प्रभाग और FBI के न्यूयॉर्क फील्ड ऑफिस का काउंटरइंटेलिजेंस प्रभाग मामले की जांच कर रहे हैं, जिसमें DEA के विशेष ऑपरेशन प्रभाग, DEA के वियना कंट्री ऑफिस, FBI के प्राग कंट्री ऑफिस, न्याय विभाग के अंतर्राष्ट्रीय मामलों के कार्यालय और चेक गणराज्य के राष्ट्रीय ड्रग मुख्यालय द्वारा बहुमूल्य सहायता प्रदान की गई है।

सहायक अमेरिकी अटॉर्नी केमिली एल. फ्लेचर, एशले सी. निकोलस, और अलेक्जेंडर ली, दक्षिणी जिला न्यूयॉर्क के लिए राष्ट्रीय सुरक्षा प्रभाग के प्रति-खुफिया और निर्यात नियंत्रण अनुभाग के ट्रायल अटॉर्नी क्रिस्टोफर कुक और रॉबर्ट मैककुलर्स के साथ-साथ राष्ट्रीय सुरक्षा प्रभाग के आतंकवाद-रोधी अनुभाग के ट्रायल अटॉर्नी ए.जे. डिक्सन की सहायता से मामले पर मुकदमा चला रहे हैं।

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

निखिल गुप्ता पर अभियोग हटाया गया

Damian Williams, the United States Attorney for the Southern District of New York, Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division, Anne Milgram, the Administrator of the Drug Enforcement Administration (“DEA”), and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the filing of murder-for-hire charges against Indian national NIKHIL GUPTA, a/k/a “Nick,” in connection with his participation in a foiled plot to assassinate a U.S. citizen in New York City.  The charges are contained in a Superseding Indictment unsealed today in the U.S. District Court for the Southern District of New York.  The case is pending before U.S. District Judge Victor Marrero.  Czech authorities arrested and detained GUPTA on June 30, 2023, pursuant to the bilateral extradition treaty between the United States and the Czech Republic.

U.S. Attorney Damian Williams said: “As alleged, the defendant conspired from India to assassinate, right here in New York City, a U.S. citizen of Indian origin who has publicly advocated for the establishment of a sovereign state for Sikhs, an ethnoreligious minority group in India.  I am grateful that my Office and our law enforcement partners neutralized this deadly and outrageous threat.  We will not tolerate efforts to assassinate U.S. citizens on U.S. soil, and stand ready to investigate, thwart, and prosecute anyone who seeks to harm and silence Americans here or abroad.”

Assistant Attorney General Matthew G. Olsen said: “The dedicated law enforcement agents and prosecutors in this case foiled and exposed a dangerous plot to assassinate a U.S. citizen on U.S. soil.  The Department of Justice will be relentless in using the full reach of our authorities to pursue accountability for lethal plotting emanating from overseas.”

DEA Administrator Anne Milgram said: “When a foreign government employee allegedly committed the brazen act of recruiting an international narcotics trafficker to murder a U.S. citizen on U.S. soil, DEA was there to stop the plot.  I want to recognize the outstanding work of the DEA New York Field Division for their leadership in this investigation, the prosecution team at the U.S. Attorney’s Office in Manhattan for pursuing today’s indictment, and our federal and global law enforcement partners for their assistance.” 

FBI Assistant Director in Charge James Smith said: “Murder for hire is a crime out of a movie, but the plot in this case was all too real.  The excellent teamwork of the law enforcement partners in this case exposed this brazen conspiracy and is why Nikhil Gupta finds himself in jail waiting to answer to these charges.”

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

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

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

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

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

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

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

*                *                *

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

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

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

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

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

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

Damian Williams, the United States Attorney for the Southern District of New York, and  James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that JEREMY JOSEPH pled guilty to two counts of sending interstate threats to injure or kill two former co-workers.  JOSEPH was indicted on this case on February 6, 2023, and arrested in Sarnia, Canada.  JOSEPH pled guilty today before U.S. District Judge J. Paul Oetken only two days after his trial on the charges had begun.  Sentencing is scheduled for March 14, 2024, before Judge Oetken. 

U.S. Attorney Damian Williams said: “Jeremy Joseph terrified two former co-workers from a decade prior by repeatedly emailing them hateful, violent, and antisemitic death threats.  No individual deserves to be at the receiving end of hateful threats or to be targeted because of their religion.  This Office is committed to aggressively prosecuting hate crimes of all kinds and seeking justice for the victims of these offensive and harmful acts.”

FBI Assistant Director in Charge James Smith said: “Jeremy Joseph tracked down personal information on people he worked with years ago and threatened them with bombs and firearms.  This along with his details of how he planned to kill the victims and their families was terrifying.  Now he will answer to the judicial system for his actions.”

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

From in or about December 2022 through at least in or about January 2023, JOSEPH sent emails with antisemitic death threats to two former colleagues (the “Victims”) with whom JOSEPH had worked more than a decade ago.  The emails detailed how JOSEPH planned to murder his Victims and included photographs of pipe bombs, ammunition, and a firearm.  The emails also included personal information about the Victims and their families. 

JOSEPH’s threats toward the Victims were part of a larger pattern of death threats sent to various other individuals from JOSEPH’s life, as well as politicians, judges, and prosecutors.  The targets of his threats spanned multiple countries and the U.S.  In these communications, JOSEPH consistently used violent and threatening language that targeted Jewish people. 

*                *                *

JOSEPH, 41, of Houston, Texas, pled guilty to two counts of sending interstate threats to injure or kill another person, which each carry a maximum sentence of five years in prison. 

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

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

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

Damian Williams, the United States Attorney for the Southern District of New York, announced that ESTEBAN CABRERA DA CORTE, a/k/a “Esteban Cabrera,” a/k/a “Esteban Da Corte,” a/k/a “Steban,” was sentenced to 63 months in prison by U.S. District Judge Katherine Polk Failla for organizing a scheme to steal millions of dollars’ worth of cryptocurrency and trick U.S. banks into refunding the millions used to purchase that cryptocurrency by using, in part, personal identifying information stolen from other people. 

U.S. Attorney Damian Williams said: “Esteban Cabrera Da Corte orchestrated a scheme to steal millions of dollars by buying cryptocurrency using false and stolen identities, then deceiving U.S. banks regarding those transactions.  Cabrera Da Corte now faces years in prison for this crime.  This sentencing should send a clear message that we, together with our law enforcement partners, will continue to zealously prosecute cryptocurrency scammers and money launderers.”

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

From at least in or about 2020 through at least in or about March 2020, CABRERA DA CORTE and his co-conspirators engaged in a scheme to deceive U.S. banks and a leading cryptocurrency exchange platform (the “Cryptocurrency Exchange”) by purchasing more than $4 million in cryptocurrency and then falsely claiming that the cryptocurrency purchase transactions were unauthorized, deceiving the U.S. banks and the Cryptocurrency Exchange into reversing those transactions and redepositing the money into the bank accounts that the defendants controlled.  The defendants then withdrew the money from the bank accounts while also keeping the cryptocurrency for themselves.

To effect this scheme, CABRERA DA CORTE and his co-conspirators opened accounts with the Cryptocurrency Exchange, frequently using photos of fake U.S. passports, fake drivers’ licenses, and stolen personal identifying information.  The Cryptocurrency Exchange accounts were linked to bank accounts that the defendants controlled.  The defendants used money that had been deposited into the linked bank accounts, frequently through a series of cash deposits made using ATMs, to purchase cryptocurrency.  That cryptocurrency was then quickly transferred to other cryptocurrency wallets outside of the Cryptocurrency Exchange that were controlled by the defendants and their co-conspirators.  After the cryptocurrency was transferred, the defendants made telephone calls to the U.S. banks during which they falsely represented that the cryptocurrency purchases were unauthorized, leading the banks to reverse the transactions. 

The operation of this scheme by the defendants resulted in U.S. banks processing more than $4 million in fraudulent reversals and the Cryptocurrency Exchange losing more than $3.5 million worth of cryptocurrency. 

*                *                *

In addition to his prison term, CABRERA DA CORTE, 27, of Miami, Florida, was ordered to pay restitution of $3,578,786.69 and forfeiture of $1,200,000. 

Mr. Williams praised the outstanding work of Homeland Security Investigation’s El Dorado Task Force. 

This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit.  Assistant U. S. Attorneys Emily Deininger and Josiah Pertz are in charge of the prosecution.

Today in the Southern District of New York, a superseding indictment was unsealed alleging murder-for-hire charges against Indian national Nikhil Gupta, aka Nick, 52, in connection with his participation in a foiled plot to assassinate a U.S. citizen in New York City. Czech authorities arrested and detained Gupta on June 30, 2023 pursuant to the bilateral extradition treaty between the United States and the Czech Republic.

According to court documents, earlier this year, an Indian government employee (CC-1), working together with others, including Gupta, in India and elsewhere, directed a plot to assassinate on U.S. soil an attorney and political activist who is a U.S. citizen of Indian origin residing in New York City (the Victim).

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

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

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

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

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

Gupta is charged with murder-for-hire and conspiracy to commit murder-for-hire. Each count carries a maximum statutory penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The DEA’s New York Division and the Counterintelligence Division of the FBI’s New York Field Office are investigating the case, with valuable assistance provided by the DEA’s Special Operations Division, DEA’s Vienna Country Office, FBI’s Prague Country Office, Justice Department’s Office of International Affairs, and Czech Republic’s National Drug Headquarters.

Assistant U.S. Attorneys Camille L. Fletcher, Ashley C. Nicolas, and Alexander Li for the Southern District of New York are prosecuting the case with assistance from Trial Attorneys Christopher Cook and Robert McCullers of the National Security Division’s Counterintelligence and Export Control Section, as well as Trial Attorney A.J. Dixon of the National Security Division’s Counterterrorism Section.

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

Damian Williams, the United States Attorney for the Southern District of New York, and Daniel B. Brubaker, the Inspector in Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing of an Indictment charging MICHAEL CASTILLERO, a/k/a Michael Alejandro, FRANCINE LANAIA, and BRIAN MARTINSEN with conspiracy, securities fraud, wire fraud, and investment adviser fraud in connection with their management of StraightPath Venture Partners LLC (“SPVP”), StraightPath Management LLC, and nine related StraightPath Funds.  CASTILLERO and MARTINSEN are also charged with conspiracy to obstruct justice and obstruction of justice in connection with their deletion of records that had been subpoenaed by the Securities and Exchange Commission (“SEC”).

The defendants’ fraudulent misrepresentations about the operation of the StraightPath Funds allowed them to raise approximately $386 million from hundreds of investors.  Based in large part on the excessive and undisclosed share price markups they charged to investors and their practice of commingling funds in violation of representations made to investors, the defendants were able to divert nearly $75 million in investor funds to themselves over an approximately three-and-a-half-year period.

LANAIA and MARTINSEN were taken into custody earlier today and presented this afternoon before U.S. Magistrate Judge Sarah L. Cave.  CASTILLERO is expected to be presented tomorrow.  The case has been assigned to U.S. District Judge Jesse M. Furman.

U.S. Attorney Damian Williams said: “As alleged, Michael Castillero, Francine Lanaia, and Brian Martinsen, the founders and former owners of the StraightPath Funds, took advantage of the relative lack of information and lower trading volumes for non-public companies by offering retail investors interests in shares of pre-IPO companies at inflated prices, allowing the defendants to skim off the top without investors realizing they’d been duped.  To conceal their fraud, Castillero and Martinsen allegedly then took steps to destroy records that had been subpoenaed as part of an ongoing federal investigation.  These exploitative practices in the pre-IPO markets will not be tolerated.”

USPIS Inspector in Charge Daniel B. Brubaker said: “These individuals used the U.S. Mail to facilitate their criminal activities by allegedly devising a fraud scheme designed to swindle innocent investors of their hard-earned money.  The U.S. Postal Inspection Service is committed to uncovering investment scams and protecting the public from becoming a victim to these schemes that claim millions of dollars each year.  We will be relentless in our efforts to pursue these criminals until justice is served.  Postal Inspectors remind investors it is key to educate themselves and ask questions regarding these investments, even more so when they notice undisclosed fees.”

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

From at least in or about 2017 through at least in or about April 2022, CASTILLERO, LANAIA, and MARTINSEN engaged in a scheme to defraud investors in a group of nine related private funds known generally as the “StraightPath Funds.”  In particular, the defendants, and others working at their direction, used “boiler room”-style call centers to market the StraightPath Funds, including to individual, non-professional investors, as presenting an opportunity to invest in privately held companies expected to go public in the near future (“pre-IPO companies”).  The defendants purported to offer investors the chance to acquire shares in pre-IPO companies at favorable prices in advance of an anticipated public offering, at which time, they claimed, the shares would be worth significantly more.

Although the defendants and their agents represented to existing and prospective investors in the StraightPath Funds that the defendants would earn no upfront fees in connection with the StraightPath Funds’ acquisition of pre-IPO shares, in reality, and contrary to their fiduciary duties, the defendants acquired the shares and then sold them to investors at arbitrarily inflated and excessive prices without disclosing to investors the nature or extent of the markup.  The defendants also misled investors regarding the nature of their investments and hid the involvement of CASTILLERO and LANAIA who had been previously barred from the securities industry by the Financial Industry Regulatory Authority (“FINRA”).  Moreover, in order to evade detection of their scheme, CASTILLERO and BRIAN MARTINSEN destroyed records and otherwise obstructed the efforts of the SEC to uncover the defendants’ fraud on investors.

In order to generate interest in the StraightPath Funds among retail investors, CASTILLERO, LANAIA, and MARTINSEN used finders, or “referral agents,” to pitch prospective investors and thereafter to serve as the investors’ primary point of contact.  In turn, these agents used “boiler room”-style call centers to cold-call potential investors, many of whom were not sophisticated, and give aggressive sales pitches using notes and pitch scripts approved by the defendants.  Contrary to the defendants’ claim that they and their agents did not make money unless and until investors received a profit on their investments, SPVP paid referral agents a commission, typically a 10 to 15 percent front-end fee based on the amount of the investment, plus a portion of the carried interest on the back end.

In addition to misleading prospective investors about the compensation paid to referral agents, CASTILLERO, LANAIA, and MARTINSEN defrauded investors in the StraightPath Funds, for which they acted as fiduciaries, by (i) charging investors excessive and undisclosed markups on share prices of pre-IPO companies, which benefited the defendants and their associates at the expense of investors and the StraightPath Funds; (ii) routinely overstating to investors the number of pre-IPO shares that backed the interests in StraightPath Funds they sold; (iii) falsely representing that investors were investing in a specific “Series” within a specific StraightPath Fund and that their contributions correlated to specific shares of specific pre-IPO companies, when, in actuality, investor funds were commingled across Series and Funds and used for purposes not disclosed to investors, including to pay out other investors and to compensate the defendants and their associates; (iv) falsely representing that a particular individual (“Fund Manager-1”) acted as manager of each of the StraightPath Funds and the SP Adviser when, in actuality, CASTILLERO, LANAIA, and MARTINSEN performed the functions ascribed to Fund Manager-1 in StraightPath’s offering documents including, among other things, using an email address in the name of Fund Manager-1 to correspond with investors; and (v) otherwise actively taking steps to prevent investors from learning about LANAIA’s and CASTILLERO’s leadership roles in light of the fact that both had been suspended and later permanently barred from involvement in the securities industry by FINRA.

Throughout the StraightPath Funds’ operation, CASTILLERO, LANAIA, and MARTINSEN actively took steps to conceal the true nature of SPVP’s operations not only from investors but also from regulatory bodies, including FINRA and the SEC.  For example, MARTINSEN, CASTILLERO, and LANAIA discussed making Fund Manager-1 the scapegoat with the SEC, in the event the SEC identified any problems with StraightPath’s operations.  MARTINSEN then added, “Fran [LANAIA] is going to wamboosle the sec lady tomorrow. They will talk weather for 45 min and the lady will forget what she’s looking for.”

In early May 2021, MARTINSEN and CASTILLERO agreed to and did delete certain email records that had been called for by an SEC subpoena and then falsely represented to SEC staff that the emails had never existed.

The StraightPath entities and StraightPath Funds are no longer operational and are under the control of a court-appointed Receiver tasked with taking possession of StraightPath’s assets and recommending a plan to return value to investors.

*                *                *

A chart containing the names, ages, residences, charges, and maximum penalties for the defendants is attached.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

Mr. Williams praised the outstanding work of the USPIS.  Mr. Williams further thanked the SEC, which previously filed separate civil charges against CASTILLERO, LANAIA, MARTINSEN, and others in connection with the operation of the StraightPath Funds in SEC v. Straightpath Venture Partners LLC et al., 22 Civ. 3897 (LAK) and SEC v. Hollender et al., 23 Civ. 2456 (LAK).

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Allison Nichols, Adam Hobson, and Jason Richman are in charge of the prosecution.

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

Defendant

Age

Residence

Charges

Maximum Potential Sentence(s)

CASTILLERO

46

Staten Island, New York

Conspiracy to commit securities fraud, wire fraud, and investment adviser fraud

(Count One)

Securities fraud

(Count Two)

Wire fraud

(Count Three)

Investment adviser fraud

(Count Four)

Conspiracy to obstruct justice

(Count Five)

Obstruction of justice

(Count Six)

5 years

20 years

20 years

5 years

5 years

20 years

LANAIA

59

Fort Salonga, New York

Conspiracy to commit securities fraud, wire fraud, and investment adviser fraud

(Count One)

Securities fraud

(Count Two)

Wire fraud

(Count Three)

Investment adviser fraud

(Count Four)

5 years

20 years

20 years

5 years

MARTINSEN

47

Saint James, New York

Conspiracy to commit securities fraud, wire fraud, and investment adviser fraud

(Count One)

Securities fraud

(Count Two)

Wire fraud

(Count Three)

Investment adviser fraud

(Count Four)

Conspiracy to obstruct justice

(Count Five)

Obstruction of justice

(Count Six)

5 years

20 years

20 years

5 years

5 years

20 years

[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.

Damian Williams, the United States Attorney for the Southern District of New York, James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of an Indictment charging DONXING ZHENG, WANGCHAO HE, a/k/a “Ah Chao,” JIANGNAN LIN, a/k/a “Xiao Pang,” a/k/a “Little Fatty,” DONG LIU, a/k/a “Ah Dong,” and SUI ZHANG, a/k/a “60,” with kidnapping resulting in the death of Peng Cheng Li (the “Victim”), kidnapping conspiracy, and conspiring to distribute ketamine.  HE, LIN, LIU, and ZHANG were arrested today and will be presented before U.S. Magistrate Judge Victoria Reznik.  ZHENG was arrested on a complaint on July 31, 2023, and presented on August 1, 2023, before Judge Reznik.  ZHENG will be arraigned on the Indictment at a later date.

U.S. Attorney Damian Williams said: “As alleged, these five defendants lured Peng Cheng Li to a location with the intent to hold him for ransom, assaulting him and transporting him to the resulting of his death.  Today’s arrest is a testament to my Office’s dedication to protecting the safety and security of our citizens and pursuing those who dare violate that to justice.”

FBI Assistant Director in Charge James Smith said: “These five defendants deprived the victim Peng Cheng Li of his freedom and ultimately his life when they allegedly kidnapped, assaulted, and murdered him in a failed attempt to collect a payment.  This type of barbaric behavior has no place in our society and will not be tolerated.  The FBI will be sure that anyone attempting to use violence to make money will be brought to justice.”  

NYPD Commissioner Edward A. Caban said: “As demonstrated by this case, the dangerous combination of illicit drugs and brutal violence will never be tolerated in New York City.  Today’s charges are the next step in our journey toward justice for Mr. Li.  The tireless work of NYPD investigators, FBI agents, and prosecutors from the office of the U.S. Attorney for the Southern District will ensure that all involved in these grievous crimes are held accountable for their despicable acts.”

As alleged in public court filings and the Indictment unsealed today in White Plains federal court:[1] 

On or about July 19, 2023, ZHENG, HE, LIN, LIU, ZHANG, and others known and unknown used an Internet-based cellphone application to call a restaurant to lure the Victim, an employee of the restaurant, to a location in Flushing, Queens.  When the Victim arrived at that location, ZHENG, HE, LIN, LIU, ZHANG, and others known and unknown abducted, assaulted, and held the Victim for the promise of payment.  Thereafter, ZHENG and others known and unknown drove the Victim through, among other locations, Manhattan, the Bronx, and Westchester County, and eventually took the Victim to New Hampshire.  At some point after he was abducted, the Victim died, and ZHENG and others known and unknown buried the Victim’s body in a forest in New Hampshire.

*                *                *

HE, 29, LIN, 22, LIU, 35, ZHANG, 22, and ZHENG, 28, all of Queens, New York, are each charged with kidnapping resulting in death, which carries a maximum potential sentence of death or life in prison; kidnapping conspiracy, which carries a maximum potential sentence of life in prison; and conspiracy to distribute ketamine, which carries a maximum potential sentence of 10 years in prison.

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

Mr. Williams praised the work of the FBI and the NYPD. 

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

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

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

Damian Williams, the United States Attorney for the Southern District of New York, announced that FRANKLIN RAY was sentenced today by U.S. District Judge Analisa Torres to 212 months in prison for engaging in multiple fraud schemes, including a $40 million Ponzi scheme and two COVID-19 loan fraud schemes, and committing aggravated identity theft in connection with one of those schemes.  RAY previously pled guilty to four counts of wire fraud and one count of aggravated identity theft.

U.S. Attorney Damian Williams said: “In the span of less than two years, Franklin Ray engaged in four separate fraudulent schemes, including a $40 million Ponzi scheme that victimized hundreds of people and schemes that stole funds intended for those in need during the COVID-19 pandemic.  Ray even had the audacity to continue his Ponzi scheme while on pretrial release after his arrest in March 2022, stealing approximately $2 million from unsuspecting victims after he was charged with federal crimes.  Today’s sentence shows that engaging in fraudulent conduct will have severe consequences.”

As alleged in the previously filed Complaint and Indictment and other court documents:

Beginning in at least June 2021, FRANKLIN RAY began to offer investors an opportunity to invest in his trucking and logistics company, CSA Business Solutions LLC (the “Truck Investment Scheme”).  Specifically, RAY and the investors entered into contracts pursuant to which CSA Business Solutions LLC would procure and operate a truck in its trucking business for each $20,000 contributed by the investor.  RAY told investors that the trucks would perform delivery services for a multinational e-commerce company and/or a multinational shipping company and that the investors would be entitled to 77% of the net income of the trucks.  In reality, CSA Business Solutions LLC operated few trucks and had minimal revenues from trucking activities.  Instead, investors in the Truck Investment Scheme received payments from new investments into the scheme or from other sources.  After the investors purchased the rights to trucks from CSA Business Solutions LLC, RAY sent them falsified spreadsheets at regular intervals, purporting to show the performance of their trucks during the relevant period.  RAY ultimately persuaded approximately 275 investors to invest at least $40 million and fraudulently claimed to have purchased over 2,000 trucks with the investments.

RAY also carried out fraudulent schemes to obtain over $1.9 million in government-guaranteed loans designed to provide relief to small businesses during the COVID-19 pandemic on behalf of CSA Business Solutions LLC and another Michigan-based trucking company (the “SBA Loan Fraud Schemes”).  In connection with the SBA Loan Fraud Schemes, RAY submitted false information and forged documents to the Small Business Administration and commercial lenders.  RAY claimed that these businesses engaged in significant trucking business, but they had minimal revenues and trucking activity.  RAY also committed aggravated identity theft with respect to one of the SBA Loan Fraud Schemes.

In addition, RAY fraudulently induced a New York City-based real estate company (the “Company”) to pay $175,000 in startup costs for a joint venture (the “Joint Venture”) between the Company and CSA Business Solutions LLC.  In order to persuade the Company to enter into the Joint Venture and pay the $175,000, RAY lied about his personal business experience and the trucking business conducted by CSA Business Solutions LLC.  Rather than pay for startup costs, RAY spent the funds on personal expenses, including private airplane trips.  The Joint Venture was never formed.

RAY was arrested in early March 2022, and a CSA Business Solutions LLC bank account was seized at that time.  After his arrest, up until his Indictment in April 2022, RAY continued to operate the Truck Investment Scheme.  RAY hid the fact of his arrest and the seizure of the bank account and lied to investors about why he did not make expected payments after his arrest.  During the period after his arrest, RAY opened new bank accounts on behalf of CSA Business Solutions LLC and continued to solicit and accept investor funds for trucks that did not exist.  In the post-arrest period alone, RAY defrauded investors into paying at least $1.9 million into his scheme.

RAY previously pled guilty to bank fraud and wire fraud in the Eastern District of Michigan.  He received a two-year sentence in connection with those crimes and was released from federal custody in 2010.

*                *                *

In addition to the prison term, RAY, 52, of Canton, Michigan, was sentenced to five years of supervised release and ordered to forfeit $42,128,912.00 and several assets, including a 1968 Chevy Camaro.  The defendant was also ordered to pay restitution in an amount to be determined.

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

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

Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of LAWRENCE BILLIMEK in connection with his participation in a multimillion-dollar insider trading scheme.  BILLIMEK was arrested in December 2022 and pled guilty to securities fraud based on insider trading before U.S. District Judge Paul G. Gardephe. 

U.S. Attorney Damian Williams said: “For more than five years, Lawrence Billimek abused his trusted position in a major financial services organization to illicitly generate tens of millions of dollars in profits through insider trading.  Billimek knew his actions were wrong, using burner phones and lies to try to cover his scheme, but he continued to undermine the integrity of the market anyway.  Insider trading is a serious crime, and Billimek now faces substantial prison time.”

As alleged in the Indictment and statements made during court proceedings:

Through his employment at TIAA-CREF, BILLIMEK had advance access to certain of TIAA-CREF’s anticipated trades.  Due to the size of certain of these TIAA-CREF trade orders, they often caused market movement in the securities they traded.  From at least 2016 through his arrest in December 2022, BILLIMEK misused his insider access and provided inside information about these trades to his co-conspirator (“CC-1”) who then bought or sold the same securities in advance of the TIAA-CREF trading.  CC-1 then provided BILLIMEK with a portion of the profits on these trades. 

BILLIMEK and CC-1 engaged in these front-running trades on over a thousand occasions between in or about 2016 and December 2022.  In an effort to hide their scheme, BILLIMEK used prepaid, unregistered “burner” phones to communicate with CC-1 throughout the trading day.  BILLIMEK and CC-1 also lied to various financial institutions about the source of funds they received during the scheme, claiming that they were, among other things, gifts.  In total, BILLIMEK and CC-1 generated tens of millions of dollars in profits. 

*                *                *

BILLIMEK, 52, of Hailey, Idaho, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison. 

The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  BILLIMEK will be sentenced by U.S. District Judge Paul G. Gardephe. 

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

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

Damian Williams, the United States Attorney for the Southern District of New York, and Daniel B. Brubaker, the Inspector in Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing of an Indictment charging KYLE TSUI with wire fraud and mail fraud in connection with a scheme that resulted in sales of approximately $5.9 million worth of fabricated allergy and sensitivity tests to customers.  TSUI was extradited from Spain to the U. S. based on the Indictment and will be presented today before U. S. Magistrate Judge Judith C. McCarthy.

U.S. Attorney Damian Williams said: “As alleged, Kyle Tsui defrauded customers of millions of dollars by claiming he would perform allergy and sensitivity testing on customers’ hair samples.  However, Tsui performed no such testing and provided fabricated test results.  Tsui now stands charged with defrauding thousands of innocent victims whose health was put at risk with false results.”

USPIS Inspector in Charge Daniel B. Brubaker said: “It’s unconscionable to think anyone would put the health of their clients at risk for money, but allegedly in this case, greed won out over the lives of innocent, trusting victims.  Mr. Tsui’s alleged fabricated test results and lies were relied upon by many to make health-altering decisions, which we now know were worthless.  Postal Inspectors remind consumers to thoroughly read the fine print of any offer providing medical breakthroughs to avoid falling victim to a scam, especially one that could cause physical harm.”

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

From September 2018 through April 2019, TSUI orchestrated a scheme to defraud customers of his company, the “Allergy Testing Company,” by purporting to sell food and environmental sensitivity testing services that TSUI knew were not, in fact, being performed.  In total, customers paid approximately $5.9 million through an online marketplace for tests that TSUI claimed would be done on their hair samples. 

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

*                *                *

KYLE TSUI, 41, of Ontario, Canada is charged with wire fraud, which carries a maximum sentence of 20 years in prison, and mail fraud, which carries a maximum sentence of 20 years in prison.  

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

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

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

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

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

Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of MICHAEL MEYERS.  MEYERS is charged with sexual exploitation of a child and receipt and distribution of child pornography.  MEYERS was presented today before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court.

U.S. Attorney Damian Williams said: “Michael Meyers’s alleged conduct is disturbing, especially given that Meyers was entrusted with the care of children for many years as an occupational therapist at a school.  This Office will do everything in our power to protect the children of our community, and we will use every tool available to law enforcement to investigate and prosecute those who sexually exploit children.”

FBI Assistant Director in Charge James Smith said: “Meyers allegedly used an online communication app to receive sexually explicit pictures from a minor child.  The fact Meyers was employed in a school makes this alleged crime even more horrific.  Both the bad guys and the American public need to know the FBI is committed to protecting the most vulnerable members of our society, and anyone attempting to sexually exploit a child can expect to end up in handcuffs and face serious punishment in the criminal justice system.”

According to the allegations in the Complaint filed in White Plains federal court and unsealed today:[1]

A review of MEYERS’s phone revealed the existence of communications between MEYERS and a 16-year-old minor (“Victim-1”) on the online application Discord.  In connection with these communications, Victim-1 sent MEYERS several sexually explicit photos of Victim-1 at MEYERS’s request.

Records received by law enforcement indicate that MEYERS was employed as an occupational therapist at a school in Oceanside, New York, from on or about September 1, 1998.

*                *                *

MEYERS, 62, of Port Jervis, New York, is charged with one count of 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 one count of receipt and distribution of child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison. 

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

Mr. Williams praised the efforts of the FBI’s Hudson Valley Resident Agency’s Safe Streets Task Force, the El Dorado Police Department, the Port Jervis Police Department, the St. John’s County Sheriff’s Office, the U.S. Postal Inspection Service, the New York State Police, and the Putnam County Sheriff’s Office.  He added that the investigation is ongoing.  

Any individuals who believe they have information that may be relevant to this investigation should contact the FBI at 1-800-CALL-FBI or https://tips.fbi.gov.

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

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

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

Damian Williams, the United States Attorney for the Southern District of New York, announced that DWIGHT REID, a/k/a “Dick Wolf,” and CHRISTOPHER ERSKINE, a/k/a “Beagle,” were found guilty yesterday of racketeering and narcotics conspiracy in connection with their leadership of the Untouchable Gorilla Stone Nation Bloods Gang (“Gorilla Stone”), a brutally violent street and prison gang that operates across the country.  REID, the gang’s highest-ranking member, is the gang’s founder and prison leader.  ERSKINE, the gang’s street leader, also known as the “Sun,” is the gang’s second highest-ranking member.  The convictions followed a nearly three-week trial before U.S. District Judge Philip M. Halpern.  REID will be sentenced on May 21, 2024, and ERSKINE will be sentenced on May 23, 2024.

U.S. Attorney Damian Williams said: “Dwight Reid and Christopher Erskine are the two highest-ranking members of Gorilla Stone, a ruthless gang, and are responsible for terrible violent acts and trafficking dangerous narcotics across the country and state, including throughout the New York State prison system.  They now stand convicted of their crimes and will no longer be able to inflict harm on the people of our District.”      

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

REID founded Gorilla Stone over 20 years ago.  Gorilla Stone has many members across New York State, including throughout New York City, Westchester, Upstate New York, and the New York State Prison System, and all over the country, such as in Florida.  Gorilla Stone is comprised of various sets (or “Caves,” as they are called by gang members).  Gorilla Stone is a highly organized and efficient street gang with an organizational commitment to violence that strictly enforces its internal laws.

Among Gorilla Stone’s acts of violence are:

• A September 2020 broad daylight murder of a minor on a busy Poughkeepsie street;

• An October 24, 2020, gang-related shooting outside of a Miami, Florida, strip club, in which two rival gang members were shot and seriously wounded, requiring one to be airlifted from the scene;

• Multiple shootings and attempted murders, including an August 8, 2018, shooting in Brooklyn, New York; July 5, 2020, gang shootings at a house party in Miami, Florida; and a July 20, 2020, drive-by shooting in New Rochelle, New York;

• A June 12, 2020, gunpoint drug-related robbery in Peekskill, New York; and

• A vicious January 12, 2018, face slashing of a rival gang member on 125th Street in Manhattan. 

As for the gang’s sources of revenue, in addition to some more traditional sources such as the proceeds of nationwide narcotics trafficking both inside and outside of prisons, Gorilla Stone is deeply involved in several fraud schemes that are well organized and sophisticated and net a significant amount of money for the gang, including a fraudulent unemployment benefits scheme during the COVID-19 pandemic.

*                *                *

REID, 51, of New York, New York, and ERSKINE, 40, of Brooklyn, New York, were convicted of one count of racketeering conspiracy, which carries a maximum sentence of life in prison, and one count of narcotics conspiracy, which also carries a maximum sentence of life in prison with a mandatory minimum of 25 years in prison for REID and 10 years in prison for ERSKINE.  ERSKINE was also convicted of one count of narcotics distribution, which carries a maximum sentence of 20 years in prison.  The defendants were acquitted of a gun possession offense.

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

With REID and ERSKINE’s trial convictions, all 21 defendants in the Gorilla Stone case before Judge Halpern have been convicted.  13 defendants have been sentenced and eight defendants, including REID and ERSKINE, have been convicted and are awaiting sentencing.  The 13 defendants who have been sentenced by Judge Halpern to date are:

• Godfather DONAVAN GILLARD, a/k/a “Donnie Love,” who was sentenced to 248 months in prison;

• Godmother NAYA AUSTIN, a/k/a “Baby,” who was sentenced to 234 months in prison;

• Godmother BRINAE THORNTON, a/k/a “Luxury,” who was sentenced to 210 months in prison;

• JARRETT CRISLER, Jr., a/k/a “Jayecee,” who was sentenced to 207 months in prison;

• CASWELL SENIOR, a/k/a “Casanova,” who was sentenced to 188 months in prison;

• Godfather BRANDON NIEVES, a/k/a “Untouchable Dot,” who was sentenced to 110 months in prison;

• JAMAL TRENT, a/k/a “Trap Smoke,” who was sentenced to nine years in prison;

• DEZON WASHINGTON, a/k/a “Blakk,” who was sentenced to 97 months in prison;

• ROBERTA SLIGH, a/k/a “Trouble,” who was sentenced to eight years in prison;  

• JORDAN INGRAM, a/k/a “Flow,” who was sentenced to eight years in prison;

• STEPHEN HUGH, a/k/a “Chino,” who was sentenced to seven years in prison;

• ISAIAH SANTOS, a/k/a “Zay,” who was sentenced to seven years in prison; and

• SHANAY OUTLAW, a/k/a “Easy,” who was sentenced to three years in prison.

In addition to REID and ERSKINE, who are awaiting sentencing, six additional defendants have pled guilty and are awaiting sentencing: Godfather DESHAWN THOMAS, a/k/a “Don,” Godfather WALTER LUSTER, a/k/a “Shells,” AHMED WALKER, a/k/a “Ammo,” BRANDON SOTO, a/k/a “Stacks,” NEIKO CRUDUP, a/k/a “JhitRilla,” and ROBERT WOODS, a/k/a “Blakk Rob.”

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation (“FBI”) Westchester County Safe Streets Task Force, which is comprised of special agents and task force officers from the FBI, U.S. Probation, New York State Police, New York State Department of Corrections and Community Supervision, Westchester County District Attorney’s Office, Putnam County Sheriff’s Office, Rockland District Attorney’s Office, and the New York City, Westchester County, Yonkers, New Rochelle, Mount Vernon, Greenburgh, White Plains, Peekskill, Ramapo, and Clarkstown Police Departments.

This case is being prosecuted by the Office’s White Plains Division.  Assistant U.S. Attorneys Shiva H. Logarajah, David R. Felton, Kathryn P. Wheelock, and Courtney L. Heavey, with the assistance of Paralegal Specialists Shannon Becker and Liam Ronan, are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrests of ZHONG SHI GAO, a/k/a “George,” NAIFENG XU, a/k/a “Andy,” and FEI JIANG, a/k/a “Jeffrey,” a/k/a “Brother Fei,” for charges in connection with a scheme to steal and launder millions of dollars from financial institutions, which resulted in the theft of over $10 million.  GAO and JIANG were arrested this morning and will be presented today before U.S. Magistrate Judge Robert W. Lehrburger.  XU was arrested in Oklahoma and will be presented in the U.S. District Court for the Eastern District of Oklahoma.  The case is assigned to U.S. District Judge Colleen McMahon.

U.S. Attorney Damian Williams said: “For years, Zhong Shi Gao, Naifeng Xu, and Fei Jiang allegedly participated in a complex scheme to steal over $10 million from nearly a dozen U.S. banks and financial institutions, which they converted into cryptocurrency and moved to foreign cryptocurrency exchanges.  These charges should serve as a warning to fraudsters and cybercriminals who think they can turn to cryptocurrency to hide their identities – together with our partner agencies, we will find you and hold you accountable for your crimes.”

FBI Assistant Director in Charge James Smith said: “Gao, Jiang, and Xu were arrested for allegedly stealing and laundering more than $10 million dollars by scamming multiple financial institutions and using foreign cryptocurrency exchanges.  Schemes like this harm institutions and make it tougher to report suspicious transfers.  The arrests today serve as a warning to anyone thinking of attempting to engage in bank fraud. The FBI will hold you accountable in the criminal justice system.” 

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

Between at least in or about 2018 and in or about 2022, ZHONG SHI GAO, a/k/a “George,” NAIFENG XU, a/k/a “Andy,” and FEI JIANG, a/k/a “Jeffrey,” a/k/a “Brother Fei,” participated in a scheme with others to steal millions of dollars from financial institutions by causing transfers of funds between accounts they controlled, then falsely and fraudulently reporting that the transfers were unauthorized, which induced the financial institutions to credit them the amount of the transfers.  The scheme proceeded in the following manner:

 First, GAO, XU, JIANG, and other members of the scheme would recruit other people — frequently foreign nationals from China and Taiwan temporarily residing in the United States — to open bank accounts at various bank branches in the New York City metropolitan area and elsewhere.  Control over these bank accounts would then be given to GAO, XU, JIANG, and other members of the scheme. 

Second, GAO, XU, JIANG, and other members of the scheme would arrange for funds to be deposited and transferred between bank accounts controlled by members of the scheme.  Next, GAO, XU, JIANG, and other members of the scheme would cause fraudulent reports to be filed with the banks claiming that these wire transfers were unauthorized.  This prompted the banks — both the bank issuing the wire transfer and the bank receiving the wire transfer — to temporarily credit the accounts in the amount of the transferred funds, effectively doubling the amount of money initially deposited into these accounts, even though GAO, XU, JIANG, and other members of the scheme had in fact authorized the transfers and maintained control over the transferred funds all along. 

Finally, GAO, XU, JIANG, and other members of the scheme would arrange for the credited funds to be quickly withdrawn as cash or converted into cryptocurrency and moved to foreign cryptocurrency exchanges before the banks realized that the unauthorized-transfer reports were fraudulent.  This resulted in GAO, XU, JIANG, and other members of the scheme withdrawing nearly double the money initially deposited while leaving the bank accounts with negative balances.

In total, GAO, XU, JIANG, and other members of the scheme are responsible for over $10 million in actual losses to nearly a dozen banks and financial institutions.

*                *                *

ZHONG SHI GAO, 31, of Flushing, New York; NAIFENG XU, 37, of Guthrie, Oklahoma; and FEI JIANG, 41, of Brooklyn, New York, are each charged with one count of bank fraud conspiracy, which carries a maximum sentence of 30 years in prison; one count of conspiracy to commit wire fraud affecting a financial institution, which carries a maximum sentence of 30 years in prison; one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed. 

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

Mr. Williams praised the investigative work of the FBI’s Asian and African Organized Crime Squad.  Mr. Williams also thanked the FBI Field Office in Oklahoma City for their assistance in the investigation of this case.

This case is being handled by the Office’s Violent & Organized Crime Unit.  Assistant U.S. Attorneys Andrew K. Chan, James Ligtenberg, and Ni Qian are in charge of the prosecution.

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

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

Damian Williams, the United States Attorney for the Southern District of New York, announced today that ZACHARY HUEBSCH was sentenced to 10 years in prison by U.S. District Judge Kenneth M. Karas for distribution and receipt of child pornography.  The sentencing today followed HUEBSCH’s guilty plea on May 24, 2023.

U.S. Attorney Damian Williams said: “The defendant’s conduct was abhorrent and illustrates the danger that online predators pose to vulnerable members of our community, our children.  As today’s sentencing demonstrates, we will use all of the law enforcement tools available to us to prosecute and punish those who exploit children.”

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

HUEBSCH communicated on Discord, a social media application, with a 12-year-old minor (“Victim-1”) in July and August of 2021.  Using the Discord username “yourdarkmaster2,” HUEBSCH instructed Victim-1 to engage in various sexual acts and to perform those acts on live-streaming video.  HUEBSCH preserved sexually explicit images of Victim-1 from those live-streaming sessions.  HUEBSCH also discussed meeting with Victim-1 in person to engage in sexual activity, and he sent her a screenshot of a map of a park near Victim-1’s house with a suggested location at which to meet.

The investigation concerning HUEBSCH began following a report from Victim-1’s mother concerning the mother’s discovery of communications on Victim-1’s phone that concerned her. 

*                *                *

In addition to the prison term, HEUBSCH, 25, of Pine Bush, New York, was sentenced to 10 years of supervised release.

Mr. Williams praised the efforts of the Federal Bureau of Investigation, the Hudson Valley Safe Streets Task Force, the Town of Crawford Police Department, and the Morris County Prosecutor’s Office in connection with this investigation.           

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

Damian Williams, the United States Attorney for the Southern District of New York, announced that AVIRAM AZARI was sentenced today to 80 months in prison for computer intrusion, wire fraud, and aggravated identity theft in connection with his involvement in a massive computer-hacking campaign targeting companies and individuals in the U.S. and around the world.  AZARI was arrested on these charges in September 2019 while traveling to the U. S. from abroad and has been detained since his arrest.  U.S. District Judge John G. Koeltl imposed today’s sentence.

U.S. Attorney Damian Williams said: “From his home in Israel, Aviram Azari played a major role in orchestrating and facilitating an international hacking-for-hire spearphishing campaign.  The conspiracy targeted individuals and companies in the U.S. and abroad, resulting in the theft of data and netting Azari over $4.8 million in criminal proceeds.  Today’s sentencing sends an unmistakable message about my Office’s firm commitment to prosecuting hackers, domestic and foreign alike.”

According to the allegations contained in the Indictment to which AZARI pled guilty, public court filings, and statements made during court proceedings:

From approximately November 2014 to September 2019, AZARI engaged in an extensive spearphishing campaign that targeted individuals and companies in the U. S. and around the globe.  AZARI owned and operated an Israeli intelligence firm.  Clients hired AZARI to manage “Projects” that were described as intelligence gathering efforts but were, in fact, hacking campaigns specifically targeting certain groups of victims, including climate change activists and individuals and financial firms that had been a critical part of the German payment processing company Wirecard A.G.  AZARI paid different hacking groups, including a particular group located in India, to send spearphishing emails to victims of the various Projects.  The hacking groups updated AZARI on their progress, including sending him lists that tracked their hacking efforts against specific victims.  The hackers also sent AZARI reports, advising when they were successful in accessing victims’ accounts and stealing information.

One of AZARI’s hacking Projects was focused on targeting individuals and organizations involved with climate change advocacy.  Some of the hacked documents that were stolen from various of the victims’ online accounts were leaked to the press, resulting in articles relating to the New York and Massachusetts Attorneys Generals’ investigations into Exxon Mobil Corporation’s knowledge about climate change and potential misstatements made by Exxon regarding what it knew about the risks of climate change.   

Clients of AZARI’s Israeli private intelligence company paid AZARI more than approximately $4.8 million over a nearly five-year period for managing the intelligence gathering and spearphishing campaign.  AZARI executed his crimes deliberately and over an extended period primarily for his own self-enrichment.  Some of AZARI’s thousands of victims have described the devastating personal, financial, and reputational impact AZARI’s crimes had on them.  Victims have described the persistent and relentless targeting of them and their associates, as well as the theft of their identities and personal data, as “psychological assault” that has caused them “anxiety, paranoia, depression, sleeplessness, and fear,” and the victims have expressed continued concerns for their personal safety.

*                *                *

AZARI, 52, of Kiryat Yam, Israel, pled guilty to one count of conspiracy to commit computer hacking, one count of wire fraud, and one count of aggravated identity theft.  In addition to his prison term, AZARI was sentenced to three years of supervised release and was ordered to pay forfeiture of $4,844,968.  

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

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Juliana N. Murray and Olga Zverovich are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that TELESFORO DEL VALLE, JR., a/k/a “Ted,” a criminal defense attorney who has appeared in cases in the U.S. District Court for the Southern District of New York (“SDNY District Court”) and elsewhere for more than 20 years, pled guilty to charges of conspiracy, bribery, paying illegal compensation to a court employee, and making material false statements to law enforcement to conceal his crimes.

U.S. Attorney Damian Williams said: “Practicing law, particularly criminal law, demands integrity and honesty.  The public relies on attorneys and court employees to maintain and validate its faith in our criminal justice system.  As he admitted today, Del Valle Jr. betrayed that trust by engaging in a scheme that spanned more than a decade and corrupted the fair administration of justice for personal gain.  My Office will always pursue corrupt actors without fear or favor.  The people in our District and this country deserve nothing less.”

According to the allegations in the Indictment:[1]

DEL VALLE is a private attorney who has appeared in numerous federal criminal cases pending before the SDNY District Court.  DIONISIO FIGUEROA, a/k/a “Dionicio,” a clerk in the SDNY Magistrate Clerk’s Office since in or about 2002, was responsible for performing duties that included, among other things, making data entries regarding official case events in criminal cases, making summary entries of documents and proceedings on case dockets, and performing inquiries and furnishing information, either in person or by correspondence, regarding the status of cases.  FIGUEROA also played a role with respect to the intake of criminal cases, including by preparing appearance bonds, advising defendants and their family members about the conditions of the bonds, and ensuring that appearance bonds were signed by all parties prior to a defendant’s release. 

SDNY District Court personnel policies prohibited FIGUEROA from, among other things, having outside employment that would pose a conflict of interest; receiving payments, gifts, or other benefits from persons having business before the District Court; and recommending particular attorneys to members of the public.  FIGUEROA was also subject to the U. S. Courts’ Code of Conduct for Judicial Employees (the “Code of Conduct”), which cautioned judicial employees that “[a] number of criminal statutes of general applicability govern federal employees’ performance of official duties.  These include:  18 U.S.C. § 201 (bribery of public officials and witnesses) . . .”  The Code of Conduct likewise admonished, among other things, that “[a] judicial employee should never influence or attempt to influence the assignment of cases, or perform any discretionary or ministerial function of the court in a manner that improperly favors any litigant or attorney, nor should a judicial employee imply that he or she is in a position to do so.” 

Between at least 2011 and 2022, DEL VALLE and FIGUEROA engaged in a scheme whereby FIGUEROA used his position as an employee of the SDNY District Court to encourage criminal defendants to retain DEL VALLE to represent them in pending criminal cases.  In return, DEL VALLE paid FIGUEROA a portion of the fees referred clients paid to DEL VALLE.  Over the course of more than a decade, FIGUEROA referred at least 45 SDNY criminal defendants to DEL VALLE, and DEL VALLE paid FIGUEROA tens of thousands of dollars in referral fees.  DEL VALLE paid FIGUEROA directly and through an intermediary who would pick up envelopes of cash for FIGUEROA from DEL VALLE’s law office.  Many of the clients who ended up retaining and paying DEL VALLE previously had been assigned court-appointed counsel at no cost to them.

In November 2022, federal law enforcement agents separately interviewed both DEL VALLE and FIGUEROA after advising each that lying to federal law enforcement agents is a federal crime.  DEL VALLE and FIGUEROA each made materially false, fictitious, and fraudulent statements and representations in response to the agents’ questions.  In particular, DEL VALLE, upon being served with a federal grand jury subpoena requiring the production of records from his law firm, falsely denied having any records reflecting client referrals from or payments to FIGUEROA or anyone else.  FIGUEROA falsely denied making any referrals to DEL VALLE, except on a small number of occasions concerning close relations or friends, and further falsely denied ever having received payments from DEL VALLE for referrals.

*                *                *

DEL VALLE, 65, of Leonia, New Jersey, pled guilty to one count of conspiracy to bribe a federal employee and pay illegal compensation to a judicial employee, which carries a maximum potential sentence of five years in prison; one count of bribery of a federal employee, which carries a maximum potential sentence of 15 years in prison; one count of paying illegal compensation to a judicial employee, which carries a maximum potential sentence of five years in prison; and one count of making material false statements, which carries a maximum potential sentence of five years in prison.  Sentencing is scheduled for March 12, 2024, before the Hon. Mae A. D’Agostino, U. S. District Judge for the Northern District of New York, sitting by designation.

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

FIGUEROA has pled not guilty to the charges contained in the Indictment, which are merely accusations, and the trial in his case is scheduled to begin on December 4, 2023.  FIGUEROA is presumed innocent unless and until proven guilty.

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

The case is being prosecuted by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Frank Balsamello, Jarrod L. Schaeffer, and Stephanie Simon have charge of the prosecution.

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

Damian Williams, the United States Attorney for the Southern District of New York, announced that JOSEPH GARRISON pled guilty today to conspiracy to commit computer intrusion in connection with a scheme to hack user accounts at a fantasy sports and betting website (the “Betting Website”) and sell access to those accounts in order to steal hundreds of thousands of dollars from them.  GARRISON pled guilty before U.S. Magistrate Judge Robert W. Lehrburger and is scheduled to be sentenced by U.S. District Judge Lewis A. Kaplan on January 16, 2024.

U.S. Attorney Damian Williams said: “Joseph Garrison and his co-conspirators launched an online cyberattack, stealing approximately $600,000 from innocent victims’ accounts.  Garrison now stands convicted of a federal crime for targeting the accounts of victims making legitimate online wagers.”

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

On or about November 18, 2022, GARRISON 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 large-scale data breaches of companies that can be purchased on the dark web.  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, there was a series of attempts to log into the Betting Website accounts using a large list of stolen credentials.

GARRISON and others successfully accessed approximately 60,000 accounts at the Betting Website (the “Victim Accounts”) through the credential stuffing attack.  In some instances, the individuals who unlawfully accessed the Victim Accounts were able to add a new payment method on the account, deposit $5 into that account through the new payment method to verify that method, and then withdraw all the existing funds in the Victim Account through the new payment method (i.e., to a newly added financial account belonging to the hacker), thus stealing the funds in the Victim Account.  Using this method, GARRISON and others stole approximately $600,000 from approximately 1,600 Victim Accounts.

Law enforcement executed a search on GARRISON’s home in February 2023.  In that search, they located programs typically used for credential stuffing attacks.  Those programs require individualized “config” files for a target website to launch credential stuffing attacks, and law enforcement located approximately 700 such config files for dozens of different corporate websites on GARRISON’s computer.  Law enforcement also located files containing nearly 40 million username and password pairs on GARRISON’s computer, which are also used in credential stuffing attacks.

On GARRISON’s cellphone, law enforcement also located conversations between GARRISON and his co-conspirators, which included discussions about how to hack the Betting Website and how to profit from the hack of the Betting Website by extracting funds from the Victim Accounts directly or by selling access to the Victim Accounts.  In one particular conversation, GARRISON discussed, in substance and in part, how successful he was at credential stuffing attacks, how much he enjoyed credential stuffing attacks, and how GARRISON believed that law enforcement would not catch or prosecute him.  Specifically, GARRISON messaged the following, in substance and in part: “fraud is fun . . . im addicted to see money in my account . . . im like obsessed with bypassing shit.”

*                *                *

GARRISON, 19, of Madison, Wisconsin, pled guilty to one count of conspiring to commit computer intrusion, which carries a maximum sentence of five years in prison.

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

Mr. Williams 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.

Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a 34-Count Superseding Indictment charging 28 members and associates of the Young Gunnaz Gang (“YG”), including the gang’s high-ranking street leaders, with committing various racketeering, narcotics, and firearms offenses.  The case is assigned to U.S. District Judge Kenneth M. Karas.

The Superseding Indictment adds 15 additional defendants and 26 new charges.  The Superseding Indictment charges 23 YG members and associates with acts of violence.  This includes KASHAD SAMPSON, a/k/a “Shoca,” a YG leader who is charged with participating in multiple assaults with a dangerous weapon in Poughkeepsie and Newburgh, New York.  In addition to serious acts of violence, the gang was also responsible for trafficking large amounts of narcotics across the City of Newburgh and New York State and perpetrated fraud schemes to enrich members of the gang. 

U.S. Attorney Damian Williams said: “As alleged, Kashad Sampson, along with 27 other members of the YG Gang, not only used dangerous weapons to assault members of rival gangs, drug dealers, and others for the purpose of maintaining their position in the gang, but also distributed narcotics and other drugs and conspired to commit fraud.  My Office will work tirelessly to protect New Yorkers from assault, racketeering, and other dangerous crimes associated with gang activity.”

FBI Assistant Director in Charge James Smith said: "The 28 members and associates of the Young Gunnaz Gang are alleged to have engaged in a gang-related conspiracy, acting with a sense of impunity that resulted in numerous senseless acts of violence and significant narcotics distribution.  The FBI will not tolerate rampant gang violence terrorizing our communities.  FBI New York's Hudson Valley Safe Streets Task Force, along with our law enforcement partners, are committed to removing these violent criminals from the streets and bringing them to justice."

As alleged in public court filings and the Superseding Indictment unsealed today in White Plains federal court:[1]

KASHAD SAMPSON, a/k/a “Shoca,” GEORGE DELGADO, a/k/a “Groc,” GABRIEL ROMAN, a/k/a “Gabe,” DALLAS ARCHER, a/k/a “Muggas,” BRUCE ALLEN, a/k/a “Bam,” SYNCERE TATUM, a/k/a “Syn,” JOHN LALANNE, a/k/a “JJ,” RAEKWON JACKSON, a/k/a Tree,” BASHIR MALLORY, a/k/a “BG,” a/k/a “Bear,” MEKHI McDONALD, a/k/a “Khi,” CHRISTOPHER TATE, a/k/a “Bag,” KRISTOPHER BURGESS CUNNINGHAM, a/k/a “KG,” DEJON SCOTT, a/k/a “Red Dot,” DAVON WADDELL, a/k/a “Spotem,” a/k/a “Light Skin Day Day,” ZYRELL WILLIAMS, a/k/a “Zabb,” DEMETRIUS WARE, a/k/a “Doom Doom,” ANTONIO PITTMAN, a/k/a “Ant,” DAQUAN CUETO, CHRISTOPHER JOHNSON, a/k/a “Brisko,” HARRY PIMENTEL, ERIC STEADMAN, a/k/a “Little Man,” DONALD LEID, a/k/a “Big Lip Day Day,” TEVIN GEORGE, a/k/a “Tev Roc,” DEVIN WILLIAMS, a/k/a “Twin,” a/k/a “Dev,” DANTE JOHNSON, a/k/a “D Rose,” GEORGE TATUM, a/k/a “Buddy,” COLERIDGE LEWTER, a/k/a “Korrupt,” and RODNEY GEORGE, a/k/a “Taco,” are members and associates of a racketeering conspiracy known as YG.

On April 28, 2020, ANTONIO PITTMAN, for the purpose of maintaining and increasing his position in the YG enterprise, shot at rival gang members in Poughkeepsie, New York.

On May 16, 2020, ANTONIO PITTMAN, ERIC STEADMAN, and HENRY PIMENTEL, for the purpose of maintaining and increasing their positions in the YG enterprise, shot at individuals associated with and members of a rival gang in Yonkers, New York.

On September 9, 2020, ERIC STEADMAN and HENRY PIMENTEL, for the purpose of maintaining and increasing their positions in the YG enterprise, shot at rival gang members in Poughkeepsie, New York.

On August 15, 2020, KASHAD SAMPSON, DALLAS ARCHER, JOHN LALANNE, and RAEKWON JACKSON, for the purpose of maintaining and increasing their positions in the YG enterprise, participated in and facilitated the attempted murder of rival gang members in Poughkeepsie, New York.

On April 27, 2021, SYNCERE TATUM, GABRIEL ROMAN, and CHRISTOPHER TATE, for the purpose of maintaining and increasing their positions in the YG enterprise, attempted to rob and shot at a rival drug dealer in the City of Newburgh.

On November 17, 2021, KASHAD SAMPSON, GEORGE DELGADO, and BRUCE ALLEN, for the purpose of maintaining and increasing their positions in the YG enterprise, shot four rival gang members in the City of Newburgh.

On November 28, 2021, BASHIR MALLORY and GABRIEL ROMAN, for the purposes of maintaining and increasing their positions in the YG enterprise, shot at rival gang members in the City of Newburgh.

On January 7, 2022, BASHIR MALLORY and MEKHI McDONALD, for the purposes of maintaining and increasing their positions in the YG enterprise, shot at rival gang members and shot one rival gang member in the City of Newburgh.

On March 8, 2022, DAVON WADDELL and CHRISTOPHER TATE, for the purposes of maintaining and increasing their positions in the YG enterprise, shot a rival drug dealer in the City of Newburgh.

On June 11, 2022, DAQUAN CUETO, SYNCERE TATUM, RAEKWON JACKSON, and BASHIR MALLORY, for the purposes of maintaining and increasing their positions in the YG enterprise, assaulted and stabbed a rival gang member in the City of Newburgh.

On July 20, 2022, CHRISTOPHER JOHNSON and DONALD LEID, for the purposes of maintaining and increasing their positions in the YG enterprise, shot at rival gang members in the City of Newburgh.

On September 27, 2022, DAVON WADDELL and SYNCERE TATUM, for the purposes of maintaining and increasing their positions in the YG enterprise, shot at suspected rival gang members in the City of Newburgh.

On September 6, 2019, TEVIN GEORGE, for the purposes of maintaining and increasing his position in the YG enterprise, shot a rival gang member in the City of Newburgh.

On November 10, 2020, JOHN LALANNE robbed a narcotics dealer at gunpoint and discharged his firearm in the City of Newburgh.

On January 20, 2022, DAVON WADDELL and BRUCE ALLEN robbed a narcotics dealer at gunpoint and discharged a firearm in the City of Newburgh.

On July 20, 2022, DAVON WADDELL, CHRISTOPHER JOHNSON, RAEKWON JACKSON, DONALD LEID, and DANTE JOHNSON robbed a narcotics dealer at gunpoint in the City of Newburgh.

From at least 2019 to the present, KASHAD SAMPSON, GEORGE DELGADO, GABRIEL ROMAN, DALLAS ARCHER, BRUCE ALLEN, SYNCERE TATUM, JOHN LALANNE, RAEKWON JACKSON, BASHIR MALLORY, MEKHI McDONALD, CHRISTOPHER TATE, KRISTOPHER BURGESS CUNNINGHAM, DEJON SCOTT, DAVON WADDELL, ZYRELL WILLIAMS, DEMETRIUS WARE, ANTONIO PITTMAN, DAQUAN CUETO, CHRISTOPHER JOHNSON, ERIC STEADMAN, DONALD LEID, TEVIN GEORGE, DEVIN WILLIAMS, DANTE JOHNSON, GEORGE TATUM, COLERIDGE LEWTER, and RODNEY GEORGE participated in a conspiracy to distribute a substantial amount of narcotics, including fentanyl, crack cocaine, heroin, Oxycodone, marijuana, and Promethazine HCL mixed with Codeine, commonly known as “lean.”  These individuals also possessed numerous firearms in connection with this narcotics conspiracy.

From at least March 2020 through at least December 2022, KASHAD SAMPSON, GEORGE DELGADO, GABRIEL ROMAN, BRUCE ALLEN, SYNCERE TATUM, JOHN LALANNE, BASHIR MALLORY, MEKHI McDONALD, and CHRISTOPHER TATE conspired to commit wire fraud, and it was the object of that conspiracy to obtain unemployment benefits from New York State.

*                *                *

WADDELL, 26, ZYRELL WILLIAMS, 18, WARE, 18, PITTMAN, 22, CHRISTOPHER JOHNSON, 29, TEVIN GEORGE, 30, LEWTER, 43, and RODNEY GEORGE, 47, were all arrested yesterday and today and will be presented today before U. S. Magistrate Judge Andrew E. Krause.  CUETO, 22, PIMENTEL, 21, STEADMAN, 23, LEID, 29, DEVIN WILLIAMS, 27, DANTE JOHNSON, 26, and GEORGE TATUM, 45, are all currently in state custody and will be transferred to federal custody at a later date.

SAMPSON, 24, DELGADO, 24, ROMAN, 24, ARCHER, 26, ALLEN, 25, SYNCERE TATUM, 23, LALANNE, 24, JACKSON, 23, MALLORY, 20, McDONALD, 20, TATE, 20, CUNNINGHAM, 29, and SCOTT, 27, were all arrested following the November 29, 2022, indictment. 

Charts containing the names, charges, and maximum penalties for the defendants are set forth below.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Williams 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. Williams also thanked the FBI’s Westchester County 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.

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

COUNT[2]

DEFENDANT(S)[3]

MIN. AND MAX. PENALTIES

Count One: Conspiracy to Commit Racketeering

KASHAD SAMPSON

GEORGE DELGADO

GABRIEL ROMAN

DALLAS ARCHER

BRUCE ALLEN

SYNCERE TATUM

JOHN LALANNE

RAEKWON JACKSON

BASHIR MALLORY

MEKHI McDONALD

CHRISTOPHER TATE

KRISTOPHER BURGESS CUNNINGHAM

DEJON SCOTT

DAVON WADDELL

ZYRELL WILLIAMS

DEMETRIUS WARE

ANTONIO PITTMAN

DAQUAN CUETO

CHRISTOPHER JOHNSON

HARRY PIMENTEL

ERIC STEADMAN

DONALD LEID

TEVIN GEORGE

DEVIN WILLIAMS

DANTE JOHNSON

20 years in prison

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

ANTONIO PITTMAN

20 years in prison

Count Three:  Discharge of a Firearm in Connection with a Crime of Violence

ANTONIO PITTMAN

Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed

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

ANTONIO PITTMAN

ERIC STEADMAN

HARRY PIMENTEL

20 years in prison

Count Five:  Discharge of a Firearm in Connection with a Crime of Violence

ANTONIO PITTMAN

ERIC STEADMAN

HARRY PIMENTEL

Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed

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

ERIC STEADMAN

HARRY PIMENTEL

20 years in prison

Count Seven:  Discharge of a Firearm in Connection with a Crime of Violence

ERIC STEADMAN

HARRY PIMENTEL

Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed

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

KASHAD SAMPSON

DALLAS ARCHER

JOHN LALANNE

RAEKWON JACKSON

20 years in prison

Count Nine:  Discharge of a Firearm in Connection with a Crime of Violence

KASHAD SAMPSON

DALLAS ARCHER

JOHN LALANNE

RAEKWON JACKSON

Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed

Count 10: Assault with a Dangerous Weapon in Aid of Racketeering

SYNCERE TATUM

GABRIEL ROMAN

CHRISTOPHER TATE

20 years in prison

Count 11: Discharge of a Firearm in Connection with a Crime of Violence

SYNCERE TATUM

GABRIEL ROMAN

CHRISTOPHER TATE

Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed

Count 12: Assault with a Dangerous Weapon in Aid of Racketeering

KASHAD SAMPSON

GEORGE DELGADO

BRUCE ALLEN

20 years in prison

Count 13: Assault with a Dangerous Weapon and Attempted Murder in Aid of Racketeering

BASHIR MALLORY

GABRIEL ROMAN

20 years in prison

Count 14:  Discharge of a Firearm in Connection with a Crime of Violence

BASHIR MALLORY

GABRIEL ROMAN

Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed

Count 15: Assault with a Dangerous Weapon and Attempted Murder in Aid of Racketeering

BASHIR MALLORY

MEKHI McDONALD

20 years in prison

Count 16:  Discharge of a Firearm in Connection with a Crime of Violence

BASHIR MALLORY

MEKHI McDONALD

Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed

Count 17: Assault with a Dangerous Weapon and Attempted Murder in Aid of Racketeering

DAVON WADDELL

CHRISTPHER TATE

20 years in prison

Count 18: Discharge of a Firearm in Connection with a Crime of Violence

DAVON WADDELL

CHRISTPHER TATE

Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed

Count 19: Assault with a Dangerous Weapon and Attempted Murder in Aid of Racketeering

DAQUAN CUETO

SYNCERE TATUM

MEKHI McDONALD

RAEKWON JACKSON

BASHIR MALLORY

20 years in prison

Count 20: Assault with a Dangerous Weapon and Attempted Murder in Aid of Racketeering

CHRISTOPHER JOHNSON

DONALD LEID

20 years in prison

Count 21:  Discharge of a Firearm in Connection with a Crime of Violence

CHRISTOPHER JOHNSON

DONALD LEID

Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed

Count 22:  Assault with a Dangerous Weapon and Attempted Murder in Aid of Racketeering

DAVON WADDELL

SYNCERE TATUM

20 years in prison

Count 23:  Discharge of a Firearm in Connection with a Crime of Violence and Drug Trafficking

DAVON WADDELL

SYNCERE TATUM

Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed

Count 24:  Assault with a Dangerous Weapon and Attempted Murder in Aid of Racketeering

TEVIN GEORGE

20 years in prison

Count 25:  Discharge of a Firearm in Connection with a Crime of Violence

TEVIN GEORGE

Life in prison; Mandatory minimum of 10 years in prison to run consecutive to any other sentence imposed

Count 26: Hobbs Act Robbery

JOHN LALANNE

20 years in prison

Count 27: Discharge of a Firearm in Connection with a Crime of Violence

JOHN LALANNE

Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed

Count 28: Hobbs Act Robbery

DAVON WADDELL

BRUCE ALLEN

20 years in prison

Count 29: Discharge of a Firearm in Connection with a Crime of Violence

DAVON WADDELL

BRUCE ALLEN

Life in prison; Mandatory minimum sentence of 10 years in prison to run consecutive to any other sentence imposed

Count 30: Hobbs Act Robbery

DAVON WADDELL

CHRISTOPHER JOHNSON

RAEKWON JACKSON

DONALD LEID

DONTE JOHNSON

20 years in prison

Count 31: Narcotics trafficking

KASHAD SAMPSON

GEORGE DELGADO

GABRIEL ROMAN

DALLAS ARCHER

BRUCE ALLEN

SYNCERE TATUM

JOHN LALANNE

RAEKWON JACKSON

BASHIR MALLORY

MEKHI McDONALD

CHRISTOPHER TATE

KRISTOPHER BURGESS CUNNINGHAM

DEJON SCOTT

DAVON WADDELL

ZYRELL WILLIAMS

DEMETRIUS WARE

ANTONIO PITTMAN

DAQUAN CUETO

CHRISTOPHER JOHNSON

ERIC STEADMAN

DONALD LEID

TEVIN GEORGE

DEVIN WILLIAMS

DANTE JOHNSON

GEORGE TATUM

COLERIDGE LEWTER

RODNEY GEORGE

Life in prison; Mandatory minimum sentence of 10 years in prison

Count 32: Possession of a Firearm in Connection with a Drug Trafficking Crime

KASHAD SAMPSON

GEORGE DELGADO

GABRIEL ROMAN

DALLAS ARCHER

BRUCE ALLEN

SYNCERE TATUM

JOHN LALANNE

RAEKWON JACKSON

BASHIR MALLORY

MEKHI McDONALD

CHRISTOPHER TATE

KRISTOPHER BURGESS CUNNINGHAM

DEJON SCOTT

DAVON WADDELL

ZYRELL WILLIAMS

DEMETRIUS WARE

ANTONIO PITTMAN

DAQUAN CUETO

CHRISTOPHER JOHNSON

ERIC STEADMAN

DONALD LEID

TEVIN GEORGE

DEVIN WILLIAMS

DANTE JOHNSON

GEORGE TATUM

COLERIDGE LEWTER

RODNEY GEORGE

Life in prison; Mandatory minimum sentence of five years in prison to run consecutive to any other sentence imposed

Count 33: Wire Fraud Conspiracy

KASHAD SAMPSON

GEORGE DELGADO

GABRIEL ROMAN

BRUCE ALLEN

SYNCERE TATUM

JOHN LALANNE

BASHIR MALLORY

MEKHI McDONALD

CHRISTOPHER TATE

20 years in prison

Count 34: Aggravated Identity Theft

GABRIEL ROMAN

BASHIR MALLORY

20 years in prison; Mandatory minimum sentence of two years in prison to run consecutive to any other sentence imposed

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

[2] Additional charges, which did not appear in the November 29, 2022, indictment, appear in bold.

[3] Additional defendants, who were not named in the November 29, 2022, indictment, appear in bold.