Southern District of New York

Damian Williams, the United States Attorney for the Southern District of New York, Merrick B. Garland, the Attorney General of the United States, Christopher A. Wray, the Director of the Federal Bureau of Investigation (“FBI”), Nicole M. Argentieri, the Acting Assistant Attorney General of the Justice Department’s Criminal Division, Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division, James Smith, the Assistant Director in Charge of the New York Field Office of the FBI, and Bryant Jackson, the Special Agent in Charge of the Cincinnati Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of an Indictment charging ROMAN STORM and ROMAN SEMENOV with conspiracy to commit money laundering, conspiracy to commit sanctions violations, and conspiracy to operate an unlicensed money transmitting business.  The charges in the Indictment arise from the defendants’ alleged creation, operation, and promotion of Tornado Cash, a cryptocurrency mixer that facilitated more than $1 billion in money laundering transactions and laundered hundreds of millions of dollars for the Lazarus Group, the sanctioned North Korean cybercrime organization.  ROMAN STORM was arrested today in the state of Washington and will be presented today in the U.S. District Court for the Western District of Washington.  The case has been assigned to U.S. District Judge Katherine Polk Failla.  SEMENOV remains at large.

U.S. Attorney Damian Williams said: “As alleged, Tornado Cash was an infamous cryptocurrency mixer that laundered more than $1 billion in criminal proceeds and violated U.S. sanctions.  Roman Storm and Roman Semenov allegedly operated Tornado Cash and knowingly facilitated this money laundering.  While publicly claiming to offer a technically sophisticated privacy service, Storm and Semenov in fact knew that they were helping hackers and fraudsters conceal the fruits of their crimes.  Today’s indictment is a reminder that money laundering through cryptocurrency transactions violates the law, and those who engage in such laundering will face prosecution.”

Attorney General Merrick B. Garland said: “As alleged in the indictment, the defendants operated a $1 billion scheme designed to help other criminals launder and conceal funds using cryptocurrency, including by laundering hundreds of millions of dollars on behalf of a state-sponsored North Korean cybercrime group sanctioned by the U.S. government.  These charges should serve as yet another warning to those who think they can turn to cryptocurrency to conceal their crimes and hide their identities, including cryptocurrency mixers: it does not matter how sophisticated your scheme is or how many attempts you have made to anonymize yourself, the Justice Department will find you and hold you accountable for your crimes.”

FBI Director Christopher A. Wray said: “Today’s announcement should remind criminal organizations everywhere in the world that they are neither untraceable nor anonymous.  You can’t hide from us behind a keyboard — whether you’re a hacker or facilitator.  Those charged today engaged in a conspiracy to launder money for cybercriminals, including for a North Korean cybercrime organization seeking to evade sanctions.  As we have with this operation, the FBI is going to keep dismantling the infrastructure used by cyber criminals to commit and profit from their crimes, and holding anyone who assists those criminals accountable.”

Acting Assistant Attorney General Nicole M. Argentieri said: “Cryptocurrency mixers have become the go-to method for criminals to conceal their ill-gotten gains.  As alleged, the defendants operated Tornado Cash as a safe haven for criminal actors to obfuscate the trail of funds tied to their criminal activities, such as computer hacking and wire fraud.  The Criminal Division will continue to prioritize the investigation and prosecution of those who seek to criminally exploit the cryptocurrency ecosystem.”

Assistant Attorney General Matthew G. Olsen said: “As stated in the indictment, the defendants’ cryptocurrency service facilitated more than $1 billion in illicit transactions, and they knowingly allowed a globally sanctioned cybercrime group to launder hundreds of millions of dollars on behalf of the North Korean regime.  The Justice Department – alongside our domestic and international law enforcement partners – will use every tool in our arsenal to pursue and dismantle the criminal networks that enable US sanctions violations wherever they operate.”

FBI Assistant Director in Charge James Smith said: “Today’s indictment of Tornado Cash co-founders Roman Storm and Roman Semenov highlights their alleged role in creating a cryptocurrency mixer that ultimately served as a gateway for the laundering of more than $1 billion in criminal proceeds.  As alleged, when it became clear that a sanctioned North Korean cybercrime organization was using the platform to launder hundreds of millions of dollars derived from cyber heists, Storm and Semenov turned a blind eye to the illicit activity and made public representations that they were compliant with sanctions laws.  Today’s enforcement actions remind the public that the FBI, when faced with illegal activity, is committed to tracing the untraceable, and will remain focused on protecting victims of financial crime wherever those crimes are committed — be it through the traditional banking system or the virtual currency blockchain.”

IRS-CI Special Agent in Charge Bryant Jackson said: “As alleged, Tornado Cash was used to launder over $1 billion.  IRS Criminal Investigation’s Special Agents use their financial expertise to follow the flow of cryptocurrency transactions and dismantle major money laundering organizations that try to conceal the criminal source of their funds.  Today's indictment is a direct result of our collaboration with our law enforcement partners, both in the U.S. and abroad.  Through our work together, those who use deceit and fraud to line their pockets with illegal profits will be held accountable.”

As alleged in the Indictment unsealed in Manhattan federal court and court filings:[1]

ROMAN STORM and ROMAN SEMENOV were two of the three founders of the Tornado Cash service, a cryptocurrency mixer that allowed its customers to engage in untraceable transfers of cryptocurrency.  The defendants and their co-conspirators created the core features of the Tornado Cash service, paid for critical infrastructure to operate the Tornado Cash service, promoted the Tornado Cash service, and made millions of dollars in profits from operating the Tornado Cash service.  The Tornado Cash service advertised to customers that it provided untraceable and anonymous financial transactions, and STORM and SEMENOV chose not to implement know your customer or anti-money laundering programs as required by law.  As a result, the Tornado Cash service was used to launder more than $1 billion in criminal proceeds.  STORM and SEMENOV knew about these money laundering transactions and received complaints and requests for help from victims of hacking and other cybercrimes.  However, they refused to implement any controls and continued to operate the Tornado Cash service and facilitate these money laundering transactions.  

In April and May 2022, the Tornado Cash service was allegedly used by the Lazarus Group, a sanctioned North Korean cybercrime organization, to launder hundreds of millions of dollars in hacking proceeds.  STORM and SEMENOV knew that the Tornado Cash service they were operating was engaging in these sanctions-violating transactions.  They implemented a change in the service so that they could make a public announcement that they were compliant with sanctions, but in their private chats, they agreed that this change would be ineffective.  They then continued to operate the Tornado Cash service and facilitate hundreds of millions of dollars in further sanctions-violating transactions, helping the Lazarus Group to transfer criminal proceeds from a cryptocurrency wallet that had been designated by the Office of Foreign Assets Control as blocked property.

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ROMAN STORM, 34, of Auburn, Washington, and ROMAN SEMENOV, 35, a Russian national, are each charged with one count of conspiracy to commit money laundering and one count of conspiracy to violate the International Economic Emergency Powers Act, which each carry a maximum sentence of 20 years in prison.  They are also each charged with conspiracy to operate an unlicensed money transmitting business, which carries a maximum sentence of five years in prison.    

The statutory maximum 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 investigative work of the FBI and IRS-CI.  He also acknowledged the assistance of the Justice Department’s Office of International Affairs.  Mr. Williams further thanked the Joint Chiefs of Global Tax Enforcement (“J5”) for their assistance in the investigation.

This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit and the Criminal Division’s National Cryptocurrency Enforcement Team (“NCET”).  Assistant U.S. Attorneys Thane Rehn and Benjamin Gianforti are in charge of the prosecution.

The NCET was established to combat the growing illicit use of cryptocurrencies and digital assets.  Within the Criminal Division’s Computer Crime and Intellectual Property Section, the NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers.  The NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the Department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.

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

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

U.S. v. Storm and Semenov Indictment

Damian Williams, the United States Attorney for the Southern District of New York, and Steven A. Nigrelli, the Acting Superintendent of the New York State Police (“NYSP”), announced the unsealing of a Complaint charging TYRIEK SKYFIELD with firing two shots at a victim on a residential street in the Bronx, injuring the victim.  SKYFIELD will be presented this afternoon before U.S. Magistrate Judge Sarah Netburn.   

U.S. Attorney Damian Williams said: “As alleged, Tyriek Skyfield fired two bullets at another individual on a residential street in the Bronx.  One of those bullets struck the victim, injuring him.  Thanks to the swift action of our law enforcement partners, Skyfield is now being held accountable for his alleged violent actions.”

NYSP Acting Superintendent Steven A. Nigrelli said: “This case sends a clear message that senseless acts of gun violence will not be tolerated, and justice will prevail.  Working together with all levels of law enforcement, we can and are making a difference in the fight to end gun violence in our communities.  I commend our New York State Police investigators, the U.S. Attorney’s Office, and the NYPD for their swift and diligent work on this case.”

According to the allegations in the Complaint:[1]

On Saturday, July 22, 2023, shortly before 10:00 p.m., SKYFIELD fired two gunshots at another individual (“Victim-1”) in the vicinity of Needham Avenue in the Bronx.  

Surveillance video captured SKYFIELD brandishing a handgun at Victim-1 seconds before firing one of the shots.  A still image from the surveillance footage is below:

One of the gunshots struck Victim-1 in the foot. 

After firing the shots at Victim-1, SKYFIELD fled the scene on foot and was picked up outside a nearby building by a white BMX X6 SUV a few minutes later.

SKYFIELD later traveled to a club in Queens as a passenger in the same car.  Video surveillance footage from the club showed SKYFIELD presenting proof of identification and entering the club:

The club’s identification records, in combination with video surveillance footage, indicated that the individual seen entering the club in the above still images was SKYFIELD.

After canvassing the scene of the shooting, NYPD officers recovered a shell casing from one of the gunshots in a nearby yard.

SKYFIELD was not permitted to possess ammunition because of prior felony convictions, one of which was a conviction for an armed robbery.

*                *                *

SKYFIELD, 31, of New Rochelle, New York, is charged with possession of ammunition after a felony conviction, which carries a maximum sentence of 15 years in prison.

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

Mr. Williams praised the outstanding investigative work of the NYSP and the Special Agents and Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York and thanked the New York City Police Department for its assistance.

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

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

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

U.S. v. Skyfield Complaint

Damian Williams, the United States Attorney for the Southern District of New York, announced that NATHANIAL CHASTAIN, a former product manager at Ozone Networks, Inc. d/b/a OpenSea (“OpenSea”), was sentenced today to three months in prison in connection with a scheme to commit insider trading in Non-Fungible Tokens, or “NFTs,” by using confidential information about which NFTs were going to be featured on OpenSea’s homepage for his personal financial gain.  CHASTAIN was previously convicted at trial of wire fraud and money laundering.

U.S. Attorney Damian Williams said: “Nathanial Chastain faced justice today for violating the trust that his employer placed in him by using OpenSea’s confidential information for his own profit.  Today’s sentence should serve as a warning to other corporate insiders that insider trading – in any marketplace – will not be tolerated.”

According to court filings and statements made in court:

As part of his employment, CHASTAIN was responsible for selecting NFTs to be featured on OpenSea’s homepage.  OpenSea kept confidential the identity of featured NFTs until they appeared on its homepage.  After an NFT was featured on OpenSea’s homepage, the price buyers were willing to pay for that NFT, and for other NFTs made by the same NFT creator, typically increased substantially.  In violation of the duties of trust and confidence he owed to his employer, OpenSea, CHASTAIN exploited his advanced knowledge of what NFTs would be featured on OpenSea’s homepage for his personal financial gain.

From approximately June to September 2021, CHASTAIN used OpenSea’s confidential business information about what NFTs were going to be featured on its homepage to secretly purchase dozens of NFTs shortly before they were featured.  After those NFTs were featured on OpenSea, CHASTAIN sold them at profits of two- to five-times his initial purchase price.  To conceal the fraud, CHASTAIN conducted these purchases and sales using anonymous digital currency wallets and anonymous accounts on OpenSea.

*                *                *

In addition to the prison term, CHASTAIN, 31, of New York, New York, was sentenced to three months of home confinement, three years of supervised release, a $50,000 fine, and ordered to forfeiture the Ethereum he made trading the featured NFTs. 

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

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Thomas S. Burnett, Allison Nichols, and Nicolas Roos are in charge of the prosecution. 

Damian Williams, the United States Attorney for the Southern District of New York, Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced today that GIBRAN GUERRERO, a/k/a “Cojito,” and YORVIN GOMEZ, a/k/a “Julbie,” were charged with racketeering conspiracy, murder in aid of racketeering, committing violent crimes in aid of racketeering, and firearms offenses related to their membership in a street gang known as the “Trinitarios” that operated in or around the Bronx and other locations. GUERRERO and GOMEZ are also charged with participating in a robbery on December 15, 2022.  During the robbery, one of the victims, Johnny Gaston, was shot and killed.  The other victim was shot but survived.  The case has been assigned to U.S. District Judge Lorna G. Schofield.

GUERRERO and GOMEZ were in state custody and were transferred into federal custody today.  They were presented this afternoon in Manhattan federal court.  

U.S. Attorney Damian Williams said: “Gibran Guerrero and Yorvin Gomez are alleged to have terrorized the Bronx in connection with their membership in the Trinitarios gang.  Their alleged violent conduct included engaging in gunpoint robberies of multiple victims, with one robbery resulting in the tragic death of Johnny Gaston.  Today’s indictment furthers this Office’s work to chip away at the gang violence that threatens public safety in our community.”

NYPD Commissioner Edward A. Caban said: “Every crime carried out by Trinitarios gang members in New York City is met with tenacious work by the NYPD and our law enforcement partners to ensure justice – and this case is no different.  Behind the charges unsealed today against these two defendants is a proactive, aggressive investigation to ensure the strongest possible prosecution.  I want to thank our NYPD detectives and all of our partners, including the agents of the HSI New York Field Office and the prosecutors of the United States Attorney’s Office for the Southern District of New York, for their steadfast collaboration in bringing this important case.”

HSI Special Agent in Charge Ivan J. Arvelo said: "Guerrero and Gomez, through their affiliations to the notorious ‘Trinitarios’ street gang, stand accused of perpetrating a multitude of criminal acts, including robberies, narcotics trafficking, and extreme violence, exemplified by a fatal shooting during a December 2022 robbery.  This collaborative effort between HSI, the NYPD, and the U.S. Attorney's Office for the Southern District of New York sends a strong message of our commitment to protecting our communities from gang-related crime."

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

From at least in or about 2021 up to and including 2023, in the Southern District of New York and elsewhere, GIBRAN GUERRERO and YORVIN GOMEZ were members of the Trinitarios gang.  In order to fund the gang, protect its territory, and promote its standing, members of the Trinitarios engaged in, among other things, robberies, frauds, narcotics trafficking, and other acts of violence, including murder.

On December 15, 2022, GUERRERO, GOMEZ, and other Trinitarios members lured two victims to a location in the Bronx and robbed them.  During the robbery, one of the victims, Johnny Gaston, was shot and killed.  The other victim was shot but survived.

In addition, on or about July 30, 2022, and September 26, 2022, GUERRERO and other Trinitarios members participated in gunpoint robberies of several victims located in the Bronx.

*                *                *

GIBRAN GUERRERO, 20, and YORVIN GOMEZ, 26, both of the Bronx, New York, are each charged with one count of racketeering conspiracy, which carries a maximum sentence of life in prison; one count of murder in aid of racketeering, which carries a mandatory minimum sentence of life in prison or death; one count of causing death through use of a firearm, which carries a maximum sentence of life in prison or death; and conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison.  GUERRERO is also charged with two counts of assault with a dangerous weapon in aid of racketeering, which each carry a maximum sentence of 20 years in prison, and two counts of carrying and brandishing firearms in connection with a crime of violence, which each carry a mandatory minimum sentence of seven years in prison and a maximum sentence of life in prison.

The minimum and maximum potential sentences in this case are prescribed by Congress and 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 HSI and the NYPD.

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

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

U.S. v. Guerrero and Gomez Indictment

Damian Williams, the United States Attorney for the Southern District of New York, and Lisa F. Garcia, the Regional Administrator for Region 2 of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States entered into a Consent Decree settling a civil lawsuit against MARK FORD, MARK FORD STABLES, INC., MARK FORD STAGE ROAD PROPERTY, INC., and FORD EQUINE, LTD. (collectively, the “defendants”), for violations of the federal Clean Water Act (“CWA”) in connection with the defendants’ construction and operation of a horse racing training facility on two adjacent properties in the Town of Wallkill in Orange County.

U.S. Attorney Damian Williams said: “This consent decree puts the defendants down a path to reversing the harm they caused to the environment by filling wetlands on their properties and failing to prevent pollutants from entering public waters.  It should serve as a reminder that those who pollute will be held accountable for their actions.”

EPA Regional Administrator Lisa F. Garcia said: “The Defendants in this case irresponsibly polluted and filled in wetlands without authorization or permits, improperly managed waste from their horses, and failed to comply with requirements in the stormwater construction general construction permit that they did hold.  The Clean Water Act requires the protection of wetlands precisely because they support healthy ecosystems, provide flood and erosion control, and provide other valuable benefits.  EPA will vigorously pursue its enforcement goals to restore illegally filled waters and wetlands and deter future violations.”

The Consent Decree, which is subject to public comment and approval by the Court, will resolve a lawsuit filed in White Plains federal court in 2019.  The complaint alleged that from 2007 to 2016, the defendants destroyed existing federal wetlands and rerouted streams in the course of building a horse racing training center at 90 Slaughter Road (“Slaughter Road site”) and 482/484 Stony Ford Road (“Ford Equine Site”) in violation of the CWA.  The lawsuit also alleged that the defendants have operated a concentrated animal feeding operation without a permit, allowing horse wash water and process wastewater to be discharged into waters of the United States.  The lawsuit further alleges that defendants violated the terms of a stormwater construction general permit during construction work at the Slaughter Road Site from February 2016 to February 2017. 

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

• From 2007 to 2016, the defendants used or caused the use of mechanized land-clearing and filling equipment to discharge fill material into 18.1 acres of federal jurisdictional wetlands and a tributary that are waters of the United States at the Slaughter Road Site.  The defendants never sought or obtained authorization from the U.S. Army Corps of Engineers for the filling of these wetlands.

• From 2007 to 2013, the defendants caused the straightening or alteration of roughly 310 linear feet of a creek on the northern half of the Slaughter Road Site and roughly 1,460 linear feet of the same creek on the southern half of the site.  The defendants also discharged approximately 150 linear feet of loose stone below the ordinary high-water mark of the creek.  The defendants never obtained authorization from the U.S. Army Corps of Engineers for the rerouting and filling of portions of the creek.

• From 2015 to 2016, the defendants used or caused the use of mechanized land-clearing and earth-moving equipment to discharge fill material into approximately 1.86 acres of federal jurisdictional wetlands at the Ford Equine Site and rerouted roughly 900 linear feet of a stream that flowed southward through the eastern portion of the Ford Equine Site.  The defendants never sought or obtained authorization from the U.S. Army Corps of Engineers for the rerouting of the stream and the filling of these wetlands.

• From at least December 12, 2016, to the present, the Slaughter Road Site and the Ford Equine Site constitute a medium concentrated animal feeding operation (“CAFO”), within the meaning of the CWA and its implementing regulations, that has discharged pollutants to navigable waters without a permit.

• Between January 19, 2016, and January 26, 2018, defendants FORD and MARK FORD STAGE ROAD PROPERTY, INC., were required to comply with an applicable general permit governing the discharge of stormwater during construction activity.  However, in November 2016, EPA conducted an inspection at the Slaughter Road Site and found non-stabilized stockpiles of soil and mulch in the southwest portion of the Slaughter Road Site that lacked the erosion and sediment controls required by the general permit.  Several areas of the Slaughter Road Site lacked erosion or sediment controls that caused turbid stormwater to flow into a catch basin and ditch/stream tributaries in the southwest portion of the site which, in turn, flowed into the creek in violation of the general permit.  In addition, monthly inspections required by the general permit had not been conducted from February 2016 to February 2017.

*                *                *

In addition to the payment of a $200,000 civil penalty, the Consent Decree requires the defendants to create or restore approximately 18 acres of wetlands on their property, to restore two streams to their pre-fill configurations, to take additional measures to ensure the long-term success of the defendants’ restoration work, and to come into compliance with federal CAFO regulations.

Notice of the proposed Consent Decree will be published in the Federal Register and the public will have the opportunity to submit comments on the Consent Decree for a period of at least 30 days before it is submitted for the Court’s approval.

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

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

U.S. v. Ford et al Proposed Consent Decree

Damian Williams, the United States Attorney for the Southern District of New York, announced that IRVIN CARTAGENA, a/k/a “Green Eyes,” was sentenced today to 10 years in prison for conspiring to distribute heroin, fentanyl, and fentanyl analogue.  As part of the conspiracy, CARTAGENA distributed the fentanyl-laced heroin that resulted in the death of Michael K. Williams.  CARTAGENA pled guilty on April 5, 2023, before U.S. District Judge Ronnie Abrams, who imposed today’s sentence.

U.S. Attorney Damian Williams said: “On September 5, 2021, Irvin Cartagena sold Michael K. Williams a fatal dose of heroin laced with fentanyl and a fentanyl analogue.  Michael K. Williams tragically lost his life after using the drugs sold to him by Cartagena.  Although their product had already claimed one life, Cartagena and his co-conspirators continued to sell potentially lethal fentanyl-laced heroin.  This Office will tenaciously continue our enforcement efforts against unscrupulous drug dealers who distribute poison and exacerbate the scourge of the fentanyl epidemic.”

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

Between at least in or about August 2020 and February 2022, a drug trafficking organization (the “DTO”) was operating in the vicinity of 224 South 3rd Street in the Williamsburg neighborhood of Brooklyn, New York.  The DTO sold heroin laced with fentanyl and a fentanyl analogue on the street in front of, and from an apartment inside of, the apartment building located at 224 South 3rd Street, among other places.  On or about September 5, 2021, in connection with the DTO’s drug sales, CARTAGENA sold Michael K. Williams heroin, which was laced with fentanyl and a fentanyl analogue.  Williams died as a result of using that fentanyl-laced heroin.  Despite knowing that Williams died after being sold the DTO’s product, CARTAGENA and his co-conspirators continued to sell fentanyl-laced heroin in broad daylight amidst residential apartment buildings in Brooklyn and Manhattan.  CARTAGENA fled to Puerto Rico after Williams’ death, where he was ultimately arrested in February 2022.            

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In addition to his prison term, CARTAGENA, 40, of Aibonito, Puerto Rico, was sentenced to five years of supervised release.   

Mr. Williams praised the outstanding work of the New York City Police Department and the New York/New Jersey High Intensity Drug Trafficking Area Intelligence Analysts.  Mr. Williams also thanked the Organized Crime Drug Enforcement Task Force New York Strike Force, the U.S. Marshals Service, the New York/New Jersey Regional Fugitive Task Force, and the New York Division of the Drug Enforcement Administration for their assistance in this case.

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Micah Fergenson and David Robles are in charge of the prosecution.

Richard Zeitlin Allegedly Used His Multimillion-Dollar Telemarketing Call Center Business to Defraud Donors Through False and Misleading Fundraising Calls That Represented Political Action Committees as Charities — And Instructed Employees to Destroy Records to Cover Up His Crimes

Robert Piaro, Treasurer of Four Political Action Committees, Allegedly Defrauded Donors by Falsely Representing How Their Donations Would Be Spent

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 that RICHARD ZEITLIN and ROBERT PIARO were arrested this morning and charged in connection with their schemes to defraud donors while soliciting money for certain political action committees (“PACs”).  ZEITLIN was additionally charged with conspiracy to obstruct justice and obstruction of justice.  ZEITLIN was arrested this morning in Las Vegas, Nevada, and is expected to be presented in federal court in Nevada this afternoon.  The case is assigned to U.S. District Judge Lewis A. Kaplan.  PIARO was arrested this morning in Fredonia, Wisconsin, and is expected to be presented in federal court in Wisconsin this afternoon.  The case is assigned to U.S. District Judge Arun Subramanian.

U.S. Attorney Damian Williams said: “As alleged, Richard Zeitlin and Robert Piaro lied to donors who thought they were giving to groups that were helping veterans, aiding law enforcement officers, and fighting breast cancer.  Instead, Zeitlin and Piaro allegedly exploited these important causes and the good intentions of everyday citizens to steal millions of dollars in small donations.  Today’s arrests demonstrate this Office’s commitment to ensuring that those who exploit charitable causes and political action committees for their own personal gain will be held responsible for their crimes.”   

FBI Assistant Director in Charge James Smith said: “Zeitlin and Piaro are alleged to have made calculated decisions to purposely defraud donors to political action committees with misrepresentations and lies over an extended number of years.  Deliberately deceiving those who make such contributions creates unwitting victims out of those interested in voicing an opinion.  If you are a victim of Piaro or Zeitlin, please contact us at 1-800-CALL-FBI or tips.fbi.gov.  The FBI is committed to ensuring anyone who callously perpetrates fraud on the American public using political action committees are held accountable in the criminal justice system.”

According to the allegations in the Indictments against RICHARD ZEITLIN and ROBERT PIARO unsealed today in Manhattan federal court:[1]

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

From at least in or about 2017 up to and including in or about 2020, ZEITLIN used his telemarketing call center business and various associated entities to defraud numerous donors by providing misleading and false information about how the donors’ money would be spent and the nature of the organizations to which they were giving.  Specifically, ZEITLIN directed his employees to alter the call scripts used when calling potential donors on behalf of certain PACs in order to mislead potential donors into believing that they would be giving to a direct-services organization (i.e., a charity), rather than to a political advocacy organization (i.e., a PAC).  Among other things, when one PAC treasurer confronted ZEITLIN with complaints from donors that solicitation calls falsely represented a PAC as a charity, ZEITLIN falsely denied that the calls were being made, acknowledged that such calls would be inappropriate, and refused to give the treasurer any call recordings that would have revealed his fraud.  ZEITLIN directed that these lies, misleading statements, and misrepresentations be made so that donors would be more likely to give money, thereby increasing the funds raised and profits for his businesses – which typically received approximately 90% of the funds donated.  In or about May 2022, after learning that ZEITLIN and his businesses were under federal investigation, ZEITLIN directed his employees to delete electronic messages relating to his businesses. 

From at least in or about 2017 up to and including at least in or about December 2022, PIARO was the owner and treasurer of four PACs: Americans for the Cure of Breast Cancer, the Association for Emergency Responders & Firefighters, the US Veterans Assistance Foundation, and Standing By Veterans (the “PIARO PACs”).  PIARO raised over $28 million from hundreds of thousands of donors nationwide through false statements and misrepresentations about how contributions to the PIARO PACs would be spent.  For example, at PIARO’s direction, the PIARO PACs misrepresented to donors that donations would be used to advance specific legislation, educate lawmakers, and conduct and fund research, when PIARO did not and did not intend to follow through on those representations. 

If you believe you are a victim of fraud perpetrated by RICHARD ZEITLIN and/or ROBERT PIARO, please contact USANYS.PACFraud@usdoj.gov or the FBI at 1-800-CALL-FBI or tips.fbi.gov.

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ZEITLIN, 53, of Las Vegas, Nevada, is charged with one count of conspiracy to commit wire fraud in connection with telemarketing and one count of wire fraud in connection with telemarketing, which each carry a maximum sentence of 30 years in prison, and one count of conspiracy to obstruct justice and one count of obstruction of justice, which each carry a maximum sentence of 20 years in prison.

PIARO, 73, of Fredonia, Wisconsin, is charged with one count of wire fraud in connection with telemarketing and one count of mail fraud in connection with telemarketing, which each carry a maximum sentence of 30 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 FBI. 

If you believe you are a victim of fraud perpetrated by ZEITLIN, please find more information here: https://www.justice.gov/usao-sdny/united-states-v-richard-zeitlin. 

If you believe you are a victim of fraud perpetrated by PIARO, please find more information here: https://www.justice.gov/usao-sdny/united-states-v-robert-piaro.

This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Kedar Bhatia, Jane Kim, and Stephanie Simon are in charge of the prosecution.

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

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[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.

U.S. v. Zeitlin Indictment U.S. v. Piaro Indictment

Damian Williams, the United States Attorney for the Southern District of New York, announced that EARL INGARFIELD pled guilty today to participating in a “pump and dump” stock fraud scheme designed to target retail investors and manipulate trading in penny stock shares of Suburban Minerals Corporation (“SUBB”). 

U.S. Attorney Damian Williams said: “Earl Ingarfield engaged in a classic pump and dump scheme where the price of stock for a worthless company was inflated with paid promotions and fairy tales of riches from a $5 billion African diamond mine.  Today’s plea is a reminder that the Southern District of New York will investigate and prosecute all such pernicious market manipulation schemes.”

According to the Indictment and statements made in court:

From at least in or about 2013 through at least in or about March 2014, EARL INGARFIELD engaged in a scheme to manipulate the stock price of SUBB, a public company traded on the over-the-counter market.  In or about 2013, the defendant 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.    

*                *                *

EARL INGARFIELD, 64, of Las Vegas, Nevada, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison, and agreed to forfeiture of $1,418,473. 

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

Mr. Williams praised the outstanding work of 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 and Shiva Logarajah are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that THOMAS DISLA was sentenced by U.S. District Judge Lewis J. Liman to 98 months in prison in connection with a shooting spree he committed on June 3 and 4, 2022.  Over the course of 12 hours, DISLA shot an acquaintance in the groin, shot at a stranger who was driving a car, and brandished a firearm in the middle of crowded bar before striking a patron and shooting the firearm at the ceiling.  DISLA previously pled guilty to one count of possessing ammunition after conviction for a felony.

U.S. Attorney Damian Williams said: “Last summer, Thomas Disla committed multiple terrifying shootings in the Bronx.  He severely injured two people, one of whom he had never even met.  And he could have killed a third.  As today’s sentence demonstrates, our Office is determined 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 3:35 p.m. on June 3, 2022, DISLA approached an acquaintance (“Victim-1”) who was standing in front of a grocery store located on Southern Boulevard in the Bronx.  DISLA and Victim-1 exchanged words and DISLA walked away to the street.  DISLA then returned, took deliberate aim at Victim-1, and fired, hitting Victim-1 in the groin.  Victim-1 was rushed to the hospital and continues to experience discomfort and pain from his injuries. 

At approximately 1:00 a.m. on June 4, 2023, DISLA approached a construction worker (“Victim-2”) on Wheeler Avenue in the Bronx.  Victim-2 was on his way to a construction site and had briefly exited his vehicle to remove a barricade that was blocking traffic.  DISLA told Victim-2 he could not continue driving to the construction site.  After Victim-2 returned to his car, he overhead DISLA yell that Victim-2 would “learn [his] lesson.”  As can be seen in surveillance footage, DISLA then walked to the sidewalk, turned around, and shot at Victim-2’s car:

At approximately 2:20 a.m. on June 4, 2023, DISLA waived a firearm at patrons of a popular bar located on Manor Avenue in the Bronx.  He then approached a stranger who was sitting on a chair, enjoying a drink, and struck him with the firearm in his face, inflicting a wound so deep it went to the bone.  As surveillance video shows, DISLA then left the bar: 

He returned moments later only to fire one round at the ceiling of the entrance.  

DISLA was not permitted to possess ammunition because of his prior New York State conviction for criminal sale of a firearm in the third degree.  DISLA has at least 18 prior criminal convictions. 

*                *                *

In addition to his prison term, DISLA, 44, of the Bronx, New York, was sentenced to three years of supervised release.

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

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

Damian Williams, the United States Attorney for the Southern District of New York, Ivan  J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of an Indictment today charging GINA MESTRE, a former NYPD Officer, for her participation in a racketeering conspiracy with members of the Shooting Boys gang, including her involvement in obstructing a federal grand jury investigation into the Shooting Boys gang and serving as an accessory after the fact to a murder committed by the Shooting Boys gang.  MESTRE was arrested last night and will be arraigned before U.S. District Judge Denise Cote, to whom the case is assigned, later this afternoon in Manhattan federal court. 

U.S. Attorney Damian Williams said: “As alleged, Gina Mestre shamelessly exploited her position of public trust to assist gang members in her own NYPD precinct that were terrorizing the Bronx by committing robberies, murders, drug trafficking, and other acts of violence.  The Indictment unsealed today alleges that the defendant abused her position as an NYPD police officer by, among other things, obstructing a federal grand jury investigation into the gang and assisting the gang’s leader in evading capture for a cold-blooded murder committed in broad daylight.  The defendant’s alleged conduct violates the oath she swore to protect the public – as well as her fellow NYPD officers – from the type of criminal activity she helped the gang commit.  This Indictment makes clear that my Office and our law enforcement partners will remain vigilant in fighting all forms of police corruption.”

NYPD Commissioner Edward A. Caban said: “There is no place for corruption of any kind in the NYPD.  The arrest today of a former police officer is built upon the steadfast work of our Internal Affairs Bureau, a team driven to root out such betrayals of public trust.  I thank IAB, all of our partners, and everyone from the U.S. Attorney’s Office for the Southern District of New York for their sustained collaboration in this important case.”

As alleged in the Indictment and other documents filed in federal court and based on statements made in public court proceedings:[1]

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

MESTRE was an NYPD police officer from July 2013 to May 2022 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 attributed to members of the Shooting Boys.

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 investigators were preparing to bring a federal indictment against the Shooting Boys.  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 or about November 5, 2020, Done shot and killed a rival gang member (“Victim-1”) as Victim-1 sat in his car on Cromwell Avenue in the Bronx.  NYPD Detectives investigating the murder recovered security camera video (the “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 sent Done a copy of the Video to his phone and secretly communicated with Done the day of the murder and in the weeks afterwards.  MESTRE warned Done about law enforcement’s efforts to capture him, allowing Done to eventually flee from the United States. 

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 his role in the murder of Victim-1.  On February 22, 2023, Done was sentenced to 35 years in prison.

*                *                *

MESTRE, 33, of Mohegan Lake, New York, is charged with one count of racketeering conspiracy, which carries a maximum sentence of 20 years in prison; one count of conspiracy to obstruct justice, which carries a maximum sentence of five years in prison; one count of conspiracy to obstruct an official proceeding, which carries a maximum sentence of 20 years in prison; and 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 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’s Internal Affairs Bureau, Group 25; HSI; 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 James Ligtenberg are in charge of the prosecution.  

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

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[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.

U.S. v. Mestre Indictment

Damian Williams, the United States Attorney for the Southern District of New York, announced that ANTHONY CRACCHIOLO was sentenced today to five years in prison for conspiring to defraud the Medicare Program and for illegally possessing an automatic weapon as a convicted felon.  CRACCCHIOLO’s fraud conviction related to his involvement in a scheme to pay and receive kickbacks in connection with illegally buying and selling signed orders for durable medical equipment (“DME”), such as leg, arm, and back braces, and then using those orders to file fraudulent Medicare claims for more than $11 million, as well as selling such orders to other DME supply companies so that those companies in turn could also file fraudulent Medicare claims.  CRACCHIOLO previously pled guilty to the charges and was sentenced today before U.S. District Judge John P. Cronan.

U.S. Attorney Damian Williams said: “Anthony Cracchiolo faced justice today for illegally trafficking in signed orders for durable medical equipment and thus seeking to defraud Medicare of more than $11 million.  Such fraud schemes do real harm to the Medicare program — a vital, taxpayer-funded program that provides affordable health care to people over 65 or with disabilities.”

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

 From at least July 2019 through October 2020, CRACCHIOLO and a partner (“Partner-1”) engaged in a scheme to defraud Medicare in at least three ways.  First, CRACCHIOLO and Partner-1 illegally paid kickbacks of more than $565,000 to purchase fraudulent DME orders, including orders purportedly “signed” by doctors who never, in fact, signed or authorized those orders and were unaware that their names and identities were being so used.  These DME orders were for such equipment as braces for ankles, knees, elbows, wrists, and backs.  Second, CRACCHIOLO and Partner-1 resold some of the fraudulent orders to other DME suppliers — receiving more than $425,000 in criminal proceeds — so that those suppliers, in turn, could fraudulently bill Medicare for the DME.  Finally, in May and June 2020, CRACCHIOLO and Partner-1 acquired five of their own fraudulent DME supply companies and themselves used fraudulent DME orders to file more than $11 million in fraudulent Medicare claims, seeking payment to the DME suppliers that CRACCHIOLO and Partner-1 controlled.  Ultimately, Medicare paid out more than $5.5 million to CRACCHIOLO and Partner-1, along with a substantial sum to the DME suppliers to whom CRACCHIOLO and Partner-1 sold fraudulent DME orders.

When arrested at his residence in Parkland, Florida, on March 1, 2022, CRACCHIOLO was found to be illegally in possession of a semiautomatic firearm, a Palmetto State Armory PA-15, as well as an extended ammunition clip and approximately 130 rounds of ammunition, despite being a previously convicted felon who was not allowed to possess such a firearm.

*                *                *

In addition to the prison term, CRACCHIOLO, 43, of Parkland, Florida, was sentenced to three years of supervised release and ordered to pay restitution of $5,595,968 to the Medicare program.  He was also ordered, on March 15, 2023, to pay forfeiture of $2,399,817, including forfeiting his Florida residence and the seized automatic weapon.

Mr. Williams praised the outstanding investigative work of the Office of the Inspector General of the U.S. Department of Health and Human Services.

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

Damian Williams, the United States Attorney for the Southern District of New York, announced that STEFAN MELVILLE pled guilty today in connection with firing multiple rounds with a handgun at two individuals outside of a party at a hotel in Midtown Manhattan.  MELVILLE pled guilty before United States District Judge Richard M. Berman and is scheduled to be sentenced on November 28, 2023.

U.S. Attorney Damian Williams said: “On a summer night in Midtown Manhattan last July, Stefan Melville used a handgun to fire multiple rounds of ammunition at two individuals walking on the sidewalk near the corner of 42nd Street and Ninth Avenue.  The shots sent innocent pedestrians frantically running for cover.  Today’s plea sends an important message that we will continue to relentlessly investigate and prosecute gun violence in our city.”

According to court filings and statements made in court proceedings:

On or about July 3, 2022, MELVILLE fired multiple shots with a handgun in the direction of individuals walking on the sidewalk near the corner of 42nd Street and Ninth Avenue.  The following images from surveillance footage show MELVILLE firing his handgun.

Upon arriving at the scene, officers of the New York City Police Department (“NYPD”) recovered the upper assembly of a firearm, 3 shell casings and 1 unfired cartridge inside the barrel of the firearm assembly on the sidewalk where MELVILLE engaged in the shooting.  The following images show the shell casings and firearm assembly recovered at the scene.

 

*                *                *

MELVILLE, 30, of Queens, New York, pled guilty to one count of possession of ammunition after a felony conviction, 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 a judge.

Mr. Williams praised the outstanding investigative work of the Metro Safe Streets Task Force, which is composed of agents and officers of the Federal Bureau of Investigation and the NYPD.

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

Damian Williams, the United States Attorney for the Southern District of New York, announced the unsealing of an Indictment charging MICHAEL BRACKETT with lying to investors about the financial condition of Centricity Inc., a technology company that BRACKETT founded in 2019.  As alleged in the Indictment, BRACKETT — who also served as Centricity’s CEO — persuaded a victim to invest $500,000 in the company by sending a falsified customer list that included grossly inflated revenue numbers.  Days later, BRACKETT resigned from Centricity, which ceased operations soon afterward.

BRACKETT was arrested earlier today in the District of Maine, where he will be presented before making an initial appearance in the Southern District of New York.  The case is assigned to United States District Judge John G. Koeltl in the Southern District of New York.  

U.S. Attorney Damian Williams said: “Although the industry is cutting edge, the crime was strictly analog: as alleged, Brackett fabricated documents and revenue numbers to persuade victims to invest in his start-up company.  As in any other industry, investors in AI deserve transparency and fair dealing when considering if and where to invest in new technologies.”

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

Centricity was a New York City-based technology company that sought to give retailers, especially grocery stores, better insight into consumers’ preferences.  According to public statements, Centricity used artificial intelligence algorithms that could analyze some 2.5 billion data points’ worth of internet traffic a day to predict demand for products, so that retailers could stock their shelves accordingly.

While serving as CEO of Centricity, BRACKETT repeatedly misrepresented the company’s financial condition.  In spring 2021, BRACKETT sent prospective short-term lenders a bank statement that BRACKETT had manipulated to reflect that Centricity had more funds in its account than it actually did.  In June 2021, BRACKETT sent a potential investor (“Victim‑1”) a spreadsheet that purportedly reflected Centricity’s current customers and monthly revenue.  In fact, the majority of the 13 companies listed on the spreadsheet were not Centricity’s customers, and Centricity’s revenue was only a fraction of the amount listed on the spreadsheet.

Relying on BRACKETT’s misrepresentations, Victim-1 signed a convertible promissory note and directed an associate to wire $500,000 to Centricity.  Within days, however, Victim-1 learned the truth about Centricity’s financial condition and attempted, unsuccessfully, to reverse the wire.  Days later, BRACKETT resigned from Centricity, and, soon afterward, Centricity ceased operations.  Victim-1 ultimately was unable to recover any of the $500,000 investment.

*                *                *

BRACKETT, 36, a U.S. citizen residing in Switzerland, is charged with one count of securities fraud and one count of wire fraud, each of which carry a maximum sentence of 20 years in prison.

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

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Patrick R. Moroney is 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.

U.S. v. Brackett Indictment

                    

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[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.

Former Special Agent in Charge (SAC) of the FBI Counterintelligence Division in New York, Charles McGonigal, 54, of New York City, pleaded guilty today to 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, on April 6, 2018, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Russian oligarch Oleg Deripaska for having acted or purported to act on behalf of 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, finding, among other things, that OFAC’s determination that Deripaska had acted as an agent of Russian President Vladimir Putin was supported by the evidence.

“Charles McGonigal, by his own admission, betrayed his oath and actively concealed his illicit work at the bidding of a sanctioned Russian oligarch,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s plea shows the Department of Justice’s resolve to pursue and dismantle the illegal networks that Russian oligarchs use to try to escape the reach of our sanctions and evade our laws.”

“After his tenure as a high-level FBI official who supervised and participated in investigations of Russian oligarchs, Charles McGonigal has now admitted that he agreed to evade U.S. sanctions by providing services to one of those oligarchs, Oleg Deripaska,” said U.S. Attorney Damian Williams for the Southern District of New York. “This office will continue to hold to account those who violate U.S. sanctions for their own financial benefit.”

“Charles McGonigal broke his oath to defend the Constitution and turned his back on his duty to protect the American people in favor of his own greed by working for a sanctioned Russian oligarch,” said Assistant Director Suzanne Turner of the FBI’s Counterintelligence Division. “Every day, the men and women of the FBI protect the American people and uphold the Constitution. No matter the perpetrator, even if it’s one of our own, the FBI will go to great lengths to investigate individuals who put their own interests above U.S. national security.”

As an FBI official, McGonigal had helped investigate Deripaska and other Russian oligarchs. In 2018, while serving as SAC, McGonigal received a then-classified list of Russian oligarchs with close ties to the Kremlin who would be considered for sanctions. In 2021, McGonigal conspired to provide services to Deripaska, in violation of the U.S. sanctions imposed on Deripaska in April 2018. Specifically, following his negotiations with an agent of Deripaska, McGonigal agreed to and did investigate a rival Russian oligarch in return for concealed payments from Deripaska. As part of their negotiations with Deripaska’s agent, 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 faces up to five years in prison for each count and is scheduled to be sentenced on Dec. 14. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI New York Field Office investigated the case, with valuable assistance provided by the U.S. Customs and Border Protection and 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 valuable assistance provided by Trial Attorney Christina A. Clark of the National Security Division’s Counterintelligence and Export Control Section.

McGonigal Plea Agreement

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, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that CHARLES MCGONIGAL, a former Special Agent in Charge (“SAC”) of the Federal Bureau of Investigation’s (“FBI”) Counterintelligence Division in New York, pled guilty to 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.  MCGONIGAL pled guilty today before U.S. District Judge Jennifer H. Rearden.

U.S. Attorney Damian Williams said: “After his tenure as a high-level FBI official who supervised and participated in investigations of Russian oligarchs, Charles McGonigal has now admitted that he agreed to evade U.S. sanctions by providing services to one of those oligarchs, Oleg Deripaska.  This Office will continue to hold to account those who violate U.S. sanctions for their own financial benefit.”

Assistant Attorney General of the Justice Department’s National Security Division Matthew G. Olsen said: “Charles McGonigal, by his own admission, betrayed his oath and actively concealed his illicit work at the bidding of a sanctioned Russian oligarch. Today’s plea shows the Department of Justice’s resolve to pursue and dismantle the illegal networks that Russian oligarchs use to try to escape the reach of our sanctions and evade our laws.”

FBI Assistant Director in Charge James Smith said: “Economic sanctions are a critical component of our national security policy.  They must be fully and fairly applied to effectively limit the resources of those who threaten to harm the United States and our global allies.  Sanctions evasion by fraudulent means is a serious criminal offense.  By entering a guilty plea today, former FBI official Charles McGonigal has accepted responsibility for his actions. The FBI is committed to rigorously investigating reported sanctions violations and relentlessly pursue anyone engaged in such activity.”

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 making 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 had helped investigate Deripaska and other Russian oligarchs.  In 2018, while serving as SAC, MCGONIGAL received a then-classified list of Russian oligarchs with close ties to the Kremlin who would be considered for sanctions.  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 an agent of Deripaska, MCGONIGAL agreed to and did investigate a rival Russian oligarch in return for concealed payments from Deripaska.  As part of their negotiations with Deripaska’s agent, 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, 55, of New York, New York, pled guilty to one count of conspiring to violate the IEEPA and to commit money laundering, 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.  MCGONIGAL is scheduled to be sentenced by Judge Rearden on December 14, 2023.

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 and Paralegal Specialist Christopher de Grandpre.

U.S. vs McGonigal Information

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 a complaint charging MALCOLM HOGUE with firing four shots in the middle of a crowded street, wounding one victim in the ankle.  HOGUE was arrested this morning and presented before United States Magistrate Judge Katharine H. Parker this afternoon.

U.S. Attorney Damian Williams said: “As alleged, Malcolm Hogue—who was previously convicted of attempted murder—fired four bullets in the middle of an unsuspecting crowd on Webster Avenue in the Bronx.  One of those bullets struck an innocent bystander.  Thanks to the swift action of our law enforcement partners, Hogue is now being held accountable for his alleged violent actions.”

FBI Assistant Director in Charge James Smith said: “As alleged, Hogue recklessly exposed our community to senseless gunfire, putting the lives of multiple innocent people in danger.  The charges today serve as a reminder to anyone who threatens the safety of our neighborhoods with violence – the FBI and our law enforcement partners will ensure you face the consequences in the criminal justice system.”

NYPD Commissioner Edward A. Caban said: “Today’s arrest for shooting a gun on a busy Bronx street confirms that this repeat violent offender was a continued threat to the community. Anyone who allegedly commits such acts in New York City will be held fully accountable – there will always be consequences. I commend the work of the NYPD and FBI investigators who removed this criminal from our streets, and the office of the U.S. Attorney for the Southern District for its ongoing work in prosecuting this case.”

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

On June 18, 2023, a group of at least 20 people, including HOGUE, were gathered on Webster Avenue in the Bronx.

While walking along Webster Avenue, HOGUE was holding what appears to be a firearm in his right hand.  Surveillance video captured HOGUE racking the firearm as he walked along the street in the direction of a nearby Blink Fitness gym.  Still images from surveillance footage are below:

HOGUE then fired four shots.  After the first gunshot, bystanders began fleeing, running down Webster Avenue away from the Blink Fitness.  HOGUE continued firing.  Below are still images of HOGUE, as captured by surveillance video, showing HOGUE as he fired a second gunshot.

HOGUE later returned to Webster Avenue, where surveillance video captured him canvassing the ground for bullet fragments and/or shell casings left behind after the shooting.

NYPD officers arrived on the scene where they found a man standing in front of the Blink Fitness who had been shot in his left ankle.  The officers recovered a bullet fragment from the victim’s ankle, as well as a 9mm FC Luger shell casing from the sidewalk in front of the Blink Fitness.  Below is a photograph of the recovered shell casing:

HOGUE was not permitted to possess ammunition because of prior felony convictions, one of which was a conviction for attempted murder.

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HOGUE, 31, of the Bronx, New York, is charged with possession of ammunition after a felony conviction, which carries a maximum sentence of 15 years in prison.

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

Mr. Williams praised the outstanding investigative work of the FBI and the NYPD and thanked the Bronx County District Attorney’s Office for their assistance.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Benjamin M. Burkett 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.

U.S. vs Malcolm Hogue Complaint

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

Damian Williams, the United States Attorney for the Southern District of New York, announced that SHAREEF LANDSMARK pled guilty today to conspiring to distribute narcotics in connection with his involvement in the June 29, 2009 murder of Warren Wilbourne and the September 17, 2012 murder of Michael Perez.  As part of his guilty plea, LANDSMARK admitted to murdering both Wilbourne and Perez in the Bronx, New York.  LANDSMARK pled guilty before U.S. Magistrate Judge Katharine H. Parker. 

U.S. Attorney Damian Williams said:  “On June 29, 2009, Shareef Landsmark shot and killed Warren Wilbourne.  Three years later, Landsmark shot and killed Michael Perez.  Today’s guilty plea reaffirms the commitment of my Office to pursing justice and holding accountable those who commit acts of violence in our communities.  I commend the New York City Police Department and the career prosecutors of my office for their continued efforts in investigating these murders.”

According to the allegations in the Superseding Information and other documents filed in federal court as well as statements made in public court proceedings:

From at least June 2009 through May 2014, LANDSMARK agreed with others to sell cocaine in the Bronx, New York.  In furtherance of his participation in this narcotics conspiracy, LANDSMARK shot and killed Warren Wilbourne on June 29, 2009, and Michael Perez on September 17, 2012. 

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LANDSMARK, 38, from the Bronx, New York, pled guilty to narcotics conspiracy, which carries a maximum sentence of 40 years in prison and a mandatory minimum sentence of five years in prison.  LANDSMARK will be sentenced by U.S. District Judge Lorna G. Schofield later this year.

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

Mr. Williams praised the outstanding work of the NYPD. He also thanked the Special Agents of the United States Attorney’s Office for the Southern District of New York for their assistance in the investigation.

The case is being prosecuted by the Office’s Violent and Organized Crime Unit.  Assistant United States Attorneys Adam Hobson, Alexandra Rothman, and Christy Slavik are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, and  Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging JOSEPH MALVASIO and GREGG MARCUS, a/k/a “Gregg Pierce,” with running a years-long advance-fee scheme through which they defrauded hundreds of victims of at least approximately $12 million.  MALVASIO and MARCUS were arrested this morning will be presented later today in the Southern District of New York.

U.S. Attorney Damian Williams said: “As alleged, Joseph Malvasio and Gregg Marcus perpetrated an advance-fee scheme whose victims were defrauded into paying millions of dollars for loans they needed but never received.  Instead of keeping their promises to the victims, Malvasio and Marcus allegedly used the victims’ money to fund their lavish lifestyles.”

FBI Acting Assistant Director in Charge Christie M. Curtis said: "The defendants are alleged to have operated a fraudulent loan scheme where they collected fees from victims, however, had no intention of providing such loans.  The fees were then used to fund luxury personal expenses.  Ensuring that financial fraudsters are held accountable in the criminal justice system remains a top priority of the FBI."

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

From at least in or about March 2017 through at least in or about August 2023, JOSEPH MALVASIO and GREGG MARCUS operated an advance-fee scheme that defrauded hundreds of victims of at least approximately $12 million.  MALVASIO and MARCUS operated this fraudulent scheme through their ownership and operation of a business called Global Capital Partners Fund LLC (“GCPF”).  MALVASIO and MARCUS falsely represented that GCPF was a legitimate business that would provide loans to individuals who were interested in funding for private commercial projects.  Instead, MALVASIO and MARCUS defrauded victims, collecting thousands of dollars in fees from each victim without intending to issue a loan.

MALVASIO and MARCUS typically collected several fees from each victim, including a “letter of intent” fee, a “commitment” fee, and an “appraisal” fee.  Each fee ranged from a few thousand dollars to tens of thousands of dollars.  Once MALVASIO and MARCUS collected these fees, they informed each victim that he or she would not receive a loan and then refused to refund any of the fees each victim had paid. 

Once MALVASIO and MARCUS received money from victims, they transferred the funds to their personal accounts and used them to make payments in the tens of thousands of dollars to Porsche, BMW, and Modern Yachts LLC, among other dealers of luxury goods.  MALVASIO and MARCUS also used victim funds to make payments in the hundreds of thousands of dollars for personal credit card expenses. 

*                *                *

MALVASIO, 65, of Fort Lauderdale, Florida, and Bridgehampton, New York, and MARCUS, 57, of Bay Harbor Islands, Florida, are each charged with one count of wire fraud and one count of conspiracy to commit wire fraud, each of which carries a maximum sentence of 20 years in prison. 

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

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

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

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

U.S. v. Malvasio and Marcus Indictment

Damian Williams, the United States Attorney for the Southern District of New York, announced that DEMONT CHRISTIAN was sentenced today to 78 months in prison in connection with a shooting at the corner of Westchester Avenue and Faile Street in the Longwood neighborhood of the Bronx, New York, on October 7, 2022.  CHRISTIAN previously pled guilty before U.S. District Judge J. Paul Oetken, who also imposed today’s sentence, to one count of possessing ammunition after conviction for a felony.

U.S. Attorney Damian Williams said: “On October 7, 2022, Demont Christian pulled a loaded handgun from his pocket and opened fire on a pedestrian in front of a Bronx deli.  Christian perpetrated this senseless act of violence at a busy intersection filled with New Yorkers on nearby sidewalks and in passing vehicles.  Today’s sentence sends an important message that we will continue to vigorously investigate and prosecute gun violence to the fullest extent of the law.”

As alleged in the Indictment and statements made in open court:

At approximately 10:24 pm on October 7, 2022, in the vicinity of a deli located at 1126 Westchester Avenue in the Bronx, CHRISTIAN, wearing a ski mask, pulled a gun from his pocket and fired four shots at a Victim using a .380 caliber handgun.  CHRISTIAN fired at the Victim from approximately two to four car lengths away as the Victim walked away across Westchester Avenue.  At the time of the first gunshot, the Victim had not even reached the yellow center line, while CHRISTIAN aimed his gun from the sidewalk.  Surveillance footage shows that CHRISTIAN took deliberate aim at the Victim while bystanders stood just feet away:

CHRISTIAN was not permitted to possess ammunition because of his prior New York State conviction for attempted assault in the second degree, for which he was sentenced to two to four years in prison.  CHRISTIAN has at least 15 prior criminal convictions.

*                *                *

In addition to his prison term, CHRISTIAN, 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 supervised by the Office’s General Crimes Unit.  Assistant U.S. Attorney William C. Kinder is in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of an Indictment charging AHMED ALTOREI, a/k/a “AK,” and SAMUEL BAUTISTA, a/k/a “Sammy,” with distributing narcotics and carrying firearms in connection with a drug trafficking operation based on the Grand Concourse and East 198th Street in the Bronx, New York.  In connection with those crimes, ALTOREI and BAUTISTA were involved in a street shooting on January 19, 2022, that targeted a rival drug dealer but resulted in an 11-month-old baby being shot in the face. 

ALTOREI was arrested yesterday evening and BAUTISTA was arrested earlier today in an operation conducted by the FBI and NYPD, and both are expected to be presented before U.S. Magistrate Judge Gabriel W. Gorenstein later this afternoon.  The case is assigned to Chief U.S. District Judge Laura Taylor Swain.

U.S. Attorney Damian Williams said: “On January 19, 2022, on a day like any other, gunshots rang out in the Bronx.  It was a targeted shooting.  But one of the bullets hit an innocent victim – a baby girl, who was just 11 months old – who was shot in the face as she sat in a car with her mother.  The baby survived, and that’s a miracle.  But the emotional and physical trauma will never go away.  Safety is a civil right.  And like all rights, in order to keep it, we have to enforce it.  That is why I am proud to announce that we have arrested and indicted the two men who we allege shot that baby girl.  As United States Attorney, I promise you this: we will never abandon our communities.  Not a single inch.  And our commitment to public safety will never waver.  Not for a single second.  The people of this great city deserve nothing less.”

FBI Acting Assistant Director in Charge Christie M. Curtis said: “As alleged, the defendants possessed firearms as part of a narcotics trafficking operation that directly led to the shooting of an 11-month-old infant.  This is yet another unfortunate example of an innocent bystander being harmed as a result of drugs and guns.  The FBI is committed to making our communities safer by removing violent drug traffickers from the streets.”

NYPD Commissioner Edward A. Caban said: “Today’s indictment again proves that violence on our streets will not stand.  The men and women of the NYPD will remain relentless in holding accountable anyone who allegedly dares to carry and indiscriminately shoot an illegal gun in New York City.  I thank and commend all of our investigators and everyone at the office of the U.S. Attorney for the Southern District whose dedication to justice and public safety is reflected in these charges.”

As alleged in the Indictment:[1]

ALTOREI and BAUTISTA are charged for their involvement in a conspiracy to distribute and possess with intent to distribute both cocaine and crack cocaine from at least in or about May 2018 through at least in or about August 2023 and for carrying firearms in connection with the same, some of which were brandished and discharged, including the firearm that shot the infant on January 19, 2022.

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ALTOREI, 36, and BAUTISTA, 30, both of the Bronx, New York, are each charged with one count of narcotics conspiracy, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; one count of using or carrying firearms during and in relation to, or possessing firearms in furtherance of, a drug trafficking crime, some of which were brandished and discharged, which carries a mandatory minimum consecutive sentence of 10 years in prison and a maximum sentence of life in prison; and possessing ammunition after a felony conviction, which carries a maximum sentence of 10 years in prison.

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

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

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

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

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

U.S. v. Altorei and Bautista Indictment

Damian Williams, the United States Attorney for the Southern District of New York, and Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), announced the unsealing of an Indictment today charging GUYATREE SINGH with engaging in a years-long scheme to defraud at least approximately 120 low-income residents of New York City out of tens of thousands of dollars of their Supplemental Nutrition Assistance Program (“SNAP”) benefits.  SINGH was arrested yesterday and will be presented today in the Southern District of Florida.  The case has been assigned to U.S. District Court Judge Jed S. Rakoff.

U.S. Attorney Damian Williams said: “Over the course of years, Guyatree Singh is alleged to have cheated at least approximately 120 low-income, primarily elderly residents of New York City.  Singh allegedly preyed on some of the most vulnerable people in our community, leaving the victims with no money to buy food.  Today’s arrest demonstrates this Office’s commitment to ensuring that our justice system protects everyone from fraud.”

DOI Commissioner Jocelyn E. Strauber said: “The SNAP program provides food support to low-income New Yorkers.  This defendant posed as a New York State employee to deceive more than a hundred SNAP recipients and gain access to their accounts, defrauding the recipients of about $50,000 in benefits, as charged in the Indictment.  I thank HRA for referring the matter to DOI, and the Office of the United States Attorney for the Southern District of New York for their partnership in thwarting such predatory schemes.”

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

From at least in or about April 2019 through at least May 2023, SINGH engaged in a scheme to defraud at least approximately 120 SNAP recipients living in the Southern District of New York — a majority of whom appear to be elderly — of their SNAP benefits.  In total, SINGH defrauded the victims out of at least approximately $49,754.52 in benefits. 

SNAP provides low-income individuals with electronic benefits that can be used like cash to purchase food.  People eligible for SNAP benefits are given an electronic benefits transfer (“EBT”) card, which looks like a debit card and gives a person access to his or her SNAP benefits, allowing the SNAP recipient to buy groceries and other items at participating stores. 

SINGH called SNAP recipients and pretended to be a New York State employee working for SNAP.  SINGH then asked the victims for their personally identifiable information, including their dates of birth and social security numbers.  Unbeknownst to the victims, SINGH then used this information to reset the personal identification numbers (“PIN”) on their EBT cards.  Once the PINs were reset, SINGH used the victims’ EBT account numbers and new PINs to make purchases for herself at grocery stores in Florida using the victims’ SNAP funds. 

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SINGH, 51, of West Palm Beach, Florida, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.

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

Mr. Williams praised the outstanding investigative work of the DOI and 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. Attorney Adam Sowlati is 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.

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

U.S. v. Singh Indictment

Damian Williams, the United States Attorney for the Southern District of New York, announced that CAMILO ENRIQUEZ-NUNEZ, a/k/a “Viejo,” was sentenced today by U.S. District Judge Paul A. Engelmayer to 25 years in prison for trafficking at least 5,000 kilograms of cocaine.  ENRIQUEZ-NUNEZ previously pled guilty to conspiracy to distribute cocaine. 

U.S. Attorney Damian Williams said: “My Office is dedicated to holding drug kingpins like Enriquez-Nunez accountable.  Thanks to our partners at the DEA and the prosecutors of this Office, more than one ton of cocaine was seized before it could hit the streets, and this top cocaine trafficker faces years in prison.”

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

From approximately 2019 through 2022, ENRIQUEZ-NUNEZ was the leader of a drug trafficking organization that transported between 5,000 and 10,000 kilograms of cocaine from Puerto Rico to New York, New Jersey, and Florida.  ENRIQUEZ-NUNEZ laundered at least $10 million of proceeds from his drug trafficking organization and personally made millions of dollars in profits.

In September 2021, law enforcement agents seized a shipment of approximately 920 kilograms of cocaine that ENRIQUEZ-NUNEZ had transported from Puerto Rico for distribution in the New York area.  A photograph of the seized cocaine is below:

In July 2022, law enforcement agents arrested ENRIQUEZ-NUNEZ in Puerto Rico and seized approximately 338 kilograms of cocaine, $750,000 in drug proceeds, and four assault rifles belonging to him.  A photograph of those seized items is below:

ENRIQUEZ-NUNEZ has a prior federal cocaine trafficking conviction and engaged in this cocaine trafficking while on federal supervised release following his prior conviction.

While imposing today's sentence, Judge Engelmayer described the conduct as drug trafficking on an “epic, steroidal level.”

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In addition to the prison term, ENRIQUEZ-NUNEZ, 43, of Puerto Rico, was sentenced to five years of supervised release.

Mr. Williams praised the outstanding investigative work of the Drug Enforcement Administration.  Mr. Williams also thanked the U.S. Attorney’s Office for the District of Puerto Rico for their assistance in the case.

The case is being prosecuted by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Samuel P. Rothschild, Kevin Mead, and Marguerite B. Colson are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced that Genovese Family Captains NICHOLAS CALISI and RALPH BALSAMO, Genovese Family Soldiers MICHAEL MESSINA and JOHN CAMPANELLA, and Genovese Family Associates MICHAEL POLI and THOMAS POLI were sentenced by U.S. District Judge John G. Koeltl following their earlier guilty pleas to racketeering conspiracy. 

U.S. Attorney Damian Williams said: “La Cosa Nostra and its various Families are criminal organizations that prey on the public.  These sentences demonstrate that those who seek to enrich themselves through allegiance to such organizations will face not only jail time but also real financial consequences.”

According to the Superseding Indictment, the defendants’ statements when pleading guilty, and statements made in related court filings and proceedings:

The Genovese Organized Crime Family is part of a nationwide criminal organization known by various names, including La Cosa Nostra (“LCN”) and the “Mafia,” which operates through entities known as “Families.”

Like other LCN Families, the Genovese Organized Crime Family operates through groups of individuals known as “crews.”  Each “crew” has as its leader a person known as a “Captain” and consists of “made” members, known as “Soldiers.”  Soldiers are aided in their criminal endeavors by other trusted individuals, known as “associates,” who sometimes are referred to as “connected” or identified as “with” a Soldier or other member of the Family.  Associates participate in the various activities of the crew and its members.  In order for an associate to become a made member of the Family, the associate typically needs to demonstrate the ability to generate income for the Family and/or that the associate is capable of committing acts of violence.

A Captain is responsible for supervising the criminal activities of his crew, resolving disputes between and among members of the Family, resolving disputes between members of the Family and members of other Families and other criminal organizations, and providing Soldiers and associates with support and protection.  In return, the Captain typically receives a share of the illegal earnings of each of his crew’s Soldiers and associates.

At times relevant to the charges in the Superseding Indictment, NICHOLAS CALISI and RALPH BALSAMO were Captains in the Genovese Family, MICHAEL MESSINA and JOHN CAMPANELLA were Soldiers in the Genovese Family, and MICHAEL POLI and THOMAS POLI were associates of the Genovese Family.

Members of the Genovese Family, including CALISI, BALSAMO, MESSINA, and CAMPANELLA, and associates MICHAEL POLI and THOMAS POLI, engaged in extortionate extensions of credit, financing extortionate extensions of credit, collecting extensions of credit by extortion, extortion, operating illegal gambling businesses, and the transmission of gambling information.

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CALISI, 64, of Boca Raton, Florida, was sentenced principally to two years in prison, three years of supervised release, and ordered to forfeit $40,000.

BALSAMO, 52, of the Bronx, New York, was sentenced principally to 34 months in prison, three years of supervised release, and ordered to forfeit $20,000. 

MESSINA, 70, of New Fairfield, Connecticut, was sentenced principally to 18 months in prison, three years of supervised release, and ordered to forfeit $200,000.

CAMPANELLA, 48, of the Bronx, New York, was sentenced principally to 13 months in prison, three years of supervised release, and ordered to forfeit $40,000.

MICHAEL POLI, 38, of Hawthorne, New York, was sentenced principally to 31 months in prison, three years of supervised release, ordered to forfeit $175,000, and ordered to pay a $15,000 fine.

THOMAS POLI, 65, of the Bronx, New York, was sentenced principally to 22 months in prison, three years of supervised release, and ordered to forfeit $200,000.

Mr. Williams praised the outstanding investigative work of the Office of the New York Attorney General’s Organized Crime Task Force and the Kings County District Attorney’s Office and thanked the Federal Bureau of Investigation for its assistance in this investigation.

The prosecution of this case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Celia V. Cohen, Rushmi Bhaskaran, and Justin Rodriguez, as well as Special Assistant U.S. Attorney Pamela Murray, are in charge of the prosecution. 

Damian Williams, Fiscal Federal para el Distrito Sur de Nueva York, Iván J. Arvelo, Agente Especial a Cargo de la Oficina de Investigaciones de Seguridad Nacional en Nueva York (“HSI”), y Edward A. Caban, Comisionado del Departamento de Policía de Nueva York (“NYPD”), anunciaron que JORGE ALBERTO RAMOS fue arrestado esta mañana y acusado de inducir y transportar a dos víctimas para desplazarse entre estados y participar en actividad sexual ilícita, así como de traficar y albergar a una tercera víctima. La acusación formal, revelada hoy, alega que desde por lo menos y aproximadamente en 2013, hasta aproximadamente el 2023, RAMOS transportó e instigó, incitó, y persuadió a mujeres a viajar con promesas de una vida mejor, incluyendo oportunidades educativas y de otro tipo, desde El Salvador hasta el Bronx, Nueva York, donde él las violó, las agredió sexualmente y las abusó. Se espera que se presente a RAMOS ante el Juez Auxiliar James L. Cott esta tarde. Este caso se le asigna al Juez del Distrito John G. Koeltl.

Damian Williams, Fiscal Federal, mencionó que “según se alega, en el transcurso de una década, Jorge Alberto Ramos participó en un ardid para violar, agredir sexualmente y abusar sexualmente a múltiples víctimas de El Salvador luego de inducirlas a viajar a los Estados Unidos bajo promesas de una vida mejor. Ramos se aprovechó de mujeres vulnerables y las traficó a Nueva York con el fin de explotar sus cuerpos para su propia satisfacción sexual. Agradecemos y reconocemos a las valientes mujeres que reportaron a Ramos.”

El Agente Especial a Cargo Iván J. Arvelo expresó que “esta acusación formal envía un mensaje contundente de que la agencia de Investigaciones de Seguridad Nacional está comprometida a traer a los depredadores que participan en actos deplorables de violencia sexual, física y psicológica en contra de otros individuos ante la justicia. Según se alega, Jorge Alberto Ramos instigó a varias mujeres a viajar a los Estados Unidos donde las sometió a repetidas violaciones y abuso sexual. La oficina de HSI, Nueva York, junto con nuestros aliados en el Departamento de Policía de la Ciudad de Nueva York, y la Fiscalía Federal de los Estados Unidos para el Distrito Sur de Nueva York, continuarán a mantener nuestra misión para garantizar que nuestras comunidades sean seguras tanto para los residentes como para los visitantes.”

 “Se alega que el señor Ramos se aprovechó de mujeres vulnerables, las trajo a los Estados Unidos con promesa de oportunidades y luego las explotó despiadadamente bajo amenazas de deportación, no una vez, sino tres veces. Me siento muy satisfecho de que el Distrito Sur de Nueva York y los detectives del Grupo de Trabajo Anti-Trata de NYPD y de Investigaciones de Seguridad Nacional han investigado este caso de manera exitosa,” dijo el Comisionado de NYPD Edward A Caban.

Si cree que fue víctima de violación, agresión sexual, o abuso sexual cometidos por JORGE RAMOS, por favor comuníquese al 866-347-2423 o a sextrafficking_outreach@hsi.dhs.gov y mencione este caso.

Según lo que se alega en la acusación formal revelada hoy en el tribunal federal de Manhattan:[1]

En el transcurso de varios años, entre por lo menos o aproximadamente el 2013, hasta aproximadamente el 2023, JORGE ALBERTO RAMOS instigó, incitó y persuadió a mujeres con promesas de una vida mejor, incluyendo oportunidades educativas y de otro tipo, para viajar desde El Salvador hasta el Bronx, Nueva York, donde las violó, las agredió sexualmente, y las abusó sexualmente. RAMOS captó por lo menos a tres mujeres (“Víctima – 1,” “Víctima – 2,” y “Víctima – 3,” y en conjunto, las “Víctimas”) al expresar su preocupación por ellas y sus familias, y al enviarles regalos y dinero. RAMOS coordinó para que cada una de las Víctimas fuese traficada desde El Salvador hasta los Estados Unidos, incluso les pagó a los traficantes (o “coyotes”) para que transportaran a las Víctimas a través de la frontera estadounidense. RAMOS instigó por lo menos a dos de las Víctimas a que viajaran desde El Salvador hasta el Bronx con el fin de que RAMOS las pudiera obligar a participar en actos sexuales ilícitos con él según se los exigiera.

Una vez que se transportó a las Víctimas a Nueva York, RAMOS trajo a cada una de las Víctimas, respectivamente y en diferentes ocasiones, a su residencia en el Bronx (la “Residencia Ramos”). Una vez en la Residencia Ramos, RAMOS violó, agredió sexualmente y abusó sexualmente a las Víctimas. En el 2016, o aproximadamente en esa fecha, RAMOS violó, agredió sexualmente y abusó sexualmente a la Víctima – 1 el primer día que trajo a la Víctima – 1 a la Residencia Ramos, y RAMOS continuó a hacerlo por varias semanas hasta que la Víctima – 1 huyó de RAMOS. En el 2017, o aproximadamente en esa fecha, RAMOS violó, agredió sexualmente y abusó sexualmente a la Víctima – 2 el primer día que trajo a la Víctima – 2 a la Residencia Ramos, y RAMOS continuó a hacerlo por aproximadamente un mes hasta que la Víctima – 2 huyó de RAMOS. Entre el 2013, o aproximadamente en esa fecha, hasta aproximadamente el 2014, RAMOS violó, agredió sexualmente y abusó sexualmente a la Víctima – 3 en por lo menos tres ocasiones después de llevar a la Víctima – 3 a su residencia. Mientras las Víctimas se quedaron en la Residencia Ramos, RAMOS intentó controlarlas al ordenarles a las Víctimas – entre otras cosas, a que se quedaran dentro de la Residencia Ramos, intentando aislar a las Víctimas de otras personas y amenazándolas con reportar a las Víctimas con oficiales de inmigración para que las deportaran de regreso a El Salvador.

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Se acusa a RAMOS, de 43 años, del Bronx, Nueva York, de dos cargos por instigar a viajar con el fin de participar en actividades sexuales ilícitas, cada cargo conlleva una pena máxima de 20 años en prisión; dos cargos por transporte con el fin de participar en actividades sexuales ilícitas, cada cargo conlleva una pena máxima de 10 años en prisión; un cargo de conspiración con el fin de participar en tráfico de personas y un cargo de tráfico de personas, cada uno de estos cargos conlleva una pena máxima de 10 años en prisión; y un cargo por albergar a una persona indocumentada, lo cual conlleva una pena máxima de 5 años en prisión.

Las penas máximas por ley están estipuladas por el Congreso y se ofrecen aquí con fines informativos únicamente, ya que cualquier condena impuesta al acusado sería determinada por un juez.

El Sr. Williams elogió la excelente labor investigativa de HSI y NYPD.

Esta causa está a cargo de la Unidad de Delincuencia Organizada y Violenta de la Fiscalía. Las Fiscales Asistentes Elizabeth A. Espinosa, Emily A. Johnson, y Jane Kim están a cargo del enjuiciamiento.

Los cargos que aparecen en la Acusación Formal son simplemente acusaciones y al acusado se le presume inocente hasta que se pruebe su culpabilidad.

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[1] Como significa la frase introductoria, la totalidad del texto de la Acusación Formal y la descripción de la Acusación Formal aquí expuesta constituyen únicamente acusaciones, y cada hecho descrito debe tratarse como una alegación.

U.S. v. Ramos Indictment

Damian Williams, the United States Attorney for the Southern District of New York, announced that TERRENCE WILLIAMS was sentenced today by U.S. District Judge Valerie E. Caproni to 10 years in prison for leading a sprawling scheme to defraud the National Basketball Association’s (“NBA”) health and welfare benefit plan out of more than $5 million.  WILLIAMS previously pled guilty to conspiracy to commit health care and wire fraud and aggravated identity theft.

U.S. Attorney Damian Williams said: “Williams led a wide-ranging scheme to steal millions of dollars from the NBA Players’ Health and Welfare Benefit Plan.  Williams recruited medical professionals and others to expand his criminal conspiracy and maximize his ill-gotten gains.  Williams not only lined his pockets through fraud and deceit, but he also stole the identities of others and threatened a witness to further his criminal endeavors.  For his brazen criminal acts, Williams now faces years in prison.”   

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

The NBA Players’ Health and Welfare Benefit Plan is a health care plan providing benefits to eligible active and former players of the NBA and their family members.  From at least 2017 through at least 2021, TERRENCE WILLIAMS and more than a dozen others engaged in a widespread scheme to defraud the Plan by submitting and causing to be submitted fraudulent claims for reimbursement of medical and dental services that were not actually rendered.  Over the course of the scheme, the defendants submitted and caused to be submitted to the Plan false claims totaling at least approximately $5 million.

WILLIAMS orchestrated the scheme to defraud the Plan.  WILLIAMS recruited other Plan participants to defraud the Plan by offering to provide them with false invoices to support their fraudulent claims.  WILLIAMS’s co-defendants, including a dentist in California and doctors in California and Washington State, provided WILLIAMS with fraudulent invoices that WILLIAMS sent to other co-conspirators.  WILLIAMS also recruited non-medical professionals to copy invoices made by medical offices, which WILLIAMS provided to co-conspirators, and which were used to defraud the Plan.  WILLIAMS conspired with others to submit fraudulent claims to the Plan in exchange for kickback payments to WILLIAMS of at least $300,000.

To verify that certain services were medically necessary, the Plan sometimes requires participants to provide a letter of medical necessity from medical providers, establishing that necessity of the provided services.  WILLIAMS fraudulently created and transferred letters of medical necessity for three co-conspirators.

WILLIAMS also impersonated others in furtherance of the scheme.  WILLIAMS pretended to be employees of the Plan’s administrative manager.  In one instance, WILLIAMS created an email account designed to appear to be an email account used by the Plan’s administrative manager.  WILLIAMS used that account to attempt to frighten a co-defendant so that the co-defendant would re-engage with WILLIAMS and would pay kickbacks to WILLIAMS.

On other occasions, WILLIAMS used another email account he created to threaten another co-defendant — a doctor who created fraudulent invoices for WILLIAMS.  WILLIAMS used this email account to pretend to be employees of the Plan’s administrative manager and demand that this co-defendant pay WILLIAMS a “fine” or the “employees” would tell the authorities about the submission of fraudulent invoices.  Through these threats and deception, WILLIAMS obtained approximately $346,000 from this particular co-defendant.

In or about April 2022, after WILLIAMS was charged and arrested in this case and while on pretrial release, WILLIAMS texted threats to a witness, including that the witness was “talking way to[o] f[---]ing much,” to “shut the f[--]k up,” and “me spitting in your face is exactly what you’ll see.”  Following a motion by the Government on May 6, 2022, as a result of this obstructive conduct, Judge Caproni remanded WILLIAMS.

*                *                *

In addition to his prison term, WILLIAMS, 36, of Seattle, Washington, was sentenced to three years of supervised release and ordered to forfeit $653,672.55 and to pay restitution in the amount of $2,500,000. 

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

The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Ryan B. Finkel and Daniel G. Nessim are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced that EDWARD MULLINS, the former President of the Sergeants Benevolent Association (“SBA”), the union that represents all current and former sergeants of the New York City Police Department (“NYPD”), was sentenced today to two years in prison in connection with a scheme to steal hundreds of thousands of dollars from the SBA through the submission of fraudulent expense reports.  MULLINS pled guilty on January 19, 2023, before U.S. District Judge John G. Koeltl, who imposed today’s sentence. 

U.S. Attorney Damian Williams said: “For years, Edward Mullins abused his position as the head of the SBA to steal hundreds of thousands of dollars from the pockets of hard-working NYPD sergeants.  Mullins publicly vowed to protect the interests of the thousands of active and retired sergeants that he represented.  But behind the scenes, Mullins stole from the SBA and its members, treating the SBA as his personal piggy bank.  In doing so, Mullins disgraced his uniform, broke the law, and undermined the public’s trust in law enforcement.  As today’s sentence demonstrates, no one — not even high-ranking union bosses — is above the law.”

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

The SBA is the fifth-largest police union in the United States with its headquarters located in lower Manhattan.  The SBA’s membership consists of all active and retired sergeants of the NYPD with approximately 13,000 members.  From 2002 until October 2021, EDWARD MULLINS served as President of the SBA.

Beginning in 2017, MULLINS devised a scheme to steal hundreds of thousands of dollars from the SBA.  MULLINS used his personal credit card to pay for meals at high-end restaurants and to purchase luxury personal items, among other things, and then submitted false and inflated expense reports to the SBA, representing that his charges were legitimate SBA expenditures when, in fact, they were not.  MULLINS’s expense reports were fraudulent in at least three ways.  First, MULLINS routinely included meals on his expense reports that were not SBA-related.  Second, MULLINS routinely inflated the costs of his meals – whether SBA-related or not  – thereby taking more money from the SBA.  Third, MULLINS took certain expenses from his credit card statements, including clothing and supermarket expenses, and recategorized them as SBA-related meals, thereby obtaining even more money from the SBA.

MULLINS’s fraudulent expenses were paid through the SBA’s Contingent Fund, which was funded primarily through annual dues paid by SBA members.  In total, between 2017 and 2021, MULLINS stole at least $600,000 from the SBA through the filing of hundreds of fraudulent expense reports.

*                *                *

In addition to his prison term, MULLINS, 61, of Port Washington, New York, was sentenced to three years of supervised release and ordered to make restitution to the SBA in the amount of $600,000.  MULLINS was also ordered to forfeit $600,000.

Mr. Williams praised the outstanding work of the Federal Bureau of Investigation (“FBI”) and the FBI/NYPD Public Corruption Task Force. 

This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Alexandra Rothman and David Robles and are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced that JORGE ALBERTO RAMOS was arrested this morning and charged with inducing and transporting two victims to travel interstate to engage in unlawful sexual activity and with smuggling and harboring a third victim.  The Indictment unsealed today alleges that from at least in or about 2013 to in or about 2023, RAMOS transported and induced, enticed, and persuaded women to travel with promises of a better life, including educational and other opportunities, from El Salvador to the Bronx, New York, where he raped, sexually assaulted, and abused them.  RAMOS is expected to be presented before U.S. Magistrate Judge James L. Cott this afternoon.  The case is assigned to U.S. District Judge John G. Koeltl.

U.S. Attorney Damian Williams said: “As alleged, over the course of a decade, Jorge Alberto Ramos engaged in a scheme to rape, sexually assault, and sexually abuse multiple victims from El Salvador after inducing them to travel to the United States with promises of a better life.  Ramos preyed on vulnerable women and smuggled them to New York so that he could exploit their bodies for his own sexual gratification.  We thank and commend the courageous women who came forward to report Ramos.”

HSI Special Agent in Charge Ivan J. Arvelo said: “This indictment sends a strong message that Homeland Security Investigations is committed to bringing predators who engage in deplorable acts of sexual, physical, and psychological violence against other individuals to justice.  As alleged, Jorge Alberto Ramos induced several women into traveling to the United States where he subjected them to repeated rape and sexual abuse at his hands.  HSI New York, along with our partners at the New York City Police Department and United States Attorney’s Office for the Southern District of New York, will continue to uphold our mission to ensure our communities are safe for residents and visitors alike.”

NYPD Commissioner Edward A. Caban said: “Mr. Ramos is alleged to have preyed on vulnerable women, bringing them to the United States with the promise of opportunity and then ruthlessly exploiting them under threat of deportation, not once but three times.  I am deeply gratified that the Southern District of New York and detectives from the Homeland Security Investigations/NYPD Human Trafficking Task Force have successfully investigated this case.”

If you believe you are a victim of rape, sexual assault, or sexual abuse perpetrated by JORGE RAMOS, please contact 866-347-2423 or sextrafficking_outreach@hsi.dhs.gov and reference this case.

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

Over the course of several years, between at least in or about 2013 and in or about 2023, JORGE ALBERTO RAMOS induced, enticed, and persuaded women with promises of a better life, including educational and other opportunities, to travel from El Salvador to the Bronx, New York, where he raped, sexually assaulted, and sexually abused them.  RAMOS groomed at least three women (“Victim-1,” “Victim-2,” and “Victim-3,” and together, the “Victims”) by expressing concern for them and their families and by sending them gifts and money.  RAMOS arranged for each of the Victims to be smuggled from El Salvador into the United States, including by paying fees for smugglers (or “coyotes”) to transport the Victims across the U.S. border.  RAMOS induced at least two of the Victims to travel from El Salvador to the Bronx so that RAMOS could force them to engage in unlawful sex acts with him on demand.

Once the Victims were transported to New York, RAMOS brought each of the Victims, respectively and at different times, to his residence in the Bronx (the “Ramos Residence”).  Once at the Ramos Residence, RAMOS raped, sexually assaulted, and sexually abused the Victims.  In or about 2016, RAMOS raped, sexually assaulted, and sexually abused Victim-1 on the first day he brought Victim-1 to the Ramos Residence, and RAMOS continued to do so for several weeks until Victim-1 fled from RAMOS.  In or about 2017, RAMOS raped, sexually assaulted, and sexually abused Victim-2 on the first day he brought Victim-2 to the Ramos Residence, and RAMOS continued to do so for approximately one month until Victim-2 fled from RAMOS.  Between in or about 2013 and in or about 2014, RAMOS raped, sexually assaulted, and sexually abused Victim-3 on at least three occasions after bringing Victim-3 to the Ramos Residence.  While the Victims stayed at the Ramos Residence, RAMOS attempted to control the Victims by, among other things, ordering the Victims to stay inside the Ramos Residence, attempting to isolate the Victims from other people, and threatening to report the Victims to immigration officials for deportation back to El Salvador. 

*                *                *

RAMOS, 43, of the Bronx, New York, is charged with two counts of inducement to travel to engage in unlawful sexual activity, which each carry a maximum sentence of 20 years in prison; two counts of transportation to engage in unlawful sexual activity, which each carry a maximum sentence of 10 years in prison; one count of conspiracy to engage in human smuggling and one count of human smuggling, which each carry a maximum sentence of 10 years in prison; and one count of harboring an alien, which carries a maximum sentence of five years in prison. 

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

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

This case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Elizabeth A. Espinosa, Emily A. Johnson, and Jane Kim 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.

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

U.S. v. Ramos Indictment

Damian Williams, the United States Attorney for the Southern District of New York, announced that attorney STUART FINKELSTEIN was sentenced today by U.S. District Judge Paul G. Gardephe to four years in prison in connection with filing hundreds of fraudulent lawsuits pursuant to the Americans with Disabilities Act (“ADA”).  FINKELSTEIN previously pled guilty to one count of mail fraud.

U.S. Attorney Damian Williams said: “Stuart Finkelstein, a practicing attorney, filed hundreds of fraudulent lawsuits in which he brought false claims of violations of the Americans with Disabilities Act, which is meant to protect vulnerable members of our community against discrimination.  Finkelstein has now been held accountable and is facing prison time for his brazen scheme.”

According to the Indictment and statements made in court filings:

Over the course of six years, FINKELSTEIN filed or caused to be filed nearly 300 fraudulent lawsuits under the ADA.  These lawsuits, which were filed in Florida and New York, falsely claimed that the purported plaintiffs (“Victim-1” and “Victim-2”) had authorized the lawsuits and had standing to sue.  In reality, Victim-1 and Victim-2 had no idea that FINKELSTEIN had filed lawsuits on their behalf.   As a result of FINKELSTEIN’s false representations, FINKELSTEIN caused losses to the places of public accommodation that he sued in excess of $1,500,000 and netted nearly $650,000 for himself.  In addition to stealing identities and using the ADA as a vehicle for fraud, FINKELSTEIN made false statements to the courts under oath and sought to obstruct proceedings that could have exposed his scheme.

*                *                *

In addition to his prison term, FINKELSTEIN, 68, of Davie, Florida, was sentenced to three years of supervised release, fined $200,000, and ordered to forfeit $643,102.60.  Restitution will be decided by the Court within 90 days of today’s sentencing.    

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.

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

Damian Williams, the United States Attorney for the Southern District of New York, announced that ROBERT ALCANTARA pled guilty today in Manhattan federal court to conspiracy to traffic firearms and conspiracy to launder money from his firearms trafficking.  ALCANTARA conspired to sell more than 100 “ghost guns” to individuals in the Dominican Republic.

U.S. Attorney Damian Williams said: “Robert Alcantara built untraceable ghost guns and conspired to sell more than 100 of them to individuals in the Dominican Republic.  Thanks to the work of our law enforcement partners, his brazen gun trafficking scheme has been stopped.”

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

On November 20, 2021, ALCANTARA was stopped in his vehicle in possession of kits to build approximately 45 ghost guns.  ALCANTARA was interviewed by law enforcement agents and stated that he was planning to turn the 45 kits into working firearms and that he had 50 additional similar ghost guns at his home.  A photograph of the 45 seized ghost gun kits is below:

ALCANTARA used his Rhode Island home as a factory to machine ghost gun kits into working firearms.  Below is a photograph of his home factory:

After ALCANTARA purchased ghost gun kits and machined them into working firearms, he sold those working firearms in the Dominican Republic.  Below are photographs of firearms ALCANTARA sent to buyers in the Dominican Republic to advertise the firearms he had available for sale:

ALCANTARA received payments for the guns he sold in the Dominican Republic and laundered those funds. 

*                *                *

ALCANTARA, 36, of Providence, Rhode Island, pled guilty today to one count of conspiring to traffic firearms, which carries a maximum sentence of five years in prison, and one count of conspiring to launder money, which carries a maximum sentence of 20 years in prison.

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  ALCANTARA is scheduled to be sentenced by Judge Broderick on November 15, 2023, at 2:00 p.m.

Mr. Williams praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Department of Commerce.  Mr. Williams also thanked the New York City Police Department, the New York State Police Department, the Providence Police Department, and the U.S. Attorney’s Office for the District of Rhode Island for their assistance in the case.

The case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorney Kevin Mead is in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, and Ryan T. Geach, the Special Agent in Charge of the New York Field Office of the U.S. Department of Justice, Office of the Inspector General (“DOJ-OIG”), announced today that DUSTIN GENCO, a former Task Force Officer with the U.S. Drug Enforcement Administration (“DEA”) employed by the Nassau County District Attorney’s Office, pled guilty to depriving an individual (the “Victim”) of his constitutional right to be free from excessive force.  On October 20, 2022, GENCO assaulted the Victim while the Victim was restrained in handcuffs.  GENCO pled guilty today before U.S. Magistrate Judge James L. Cott.  The case has been assigned to U.S. District Judge Arun Subramanian.

U.S. Attorney Damian Williams said: “As he admitted today, Dustin Genco, a former DEA Task Force Officer, violated the constitutional rights of an individual by using excessive force during that person’s arrest.  This officer violated his oath and abused his power to deprive the victim of his rights protected by the U.S. Constitution.  He now faces the serious consequences of his actions.”

DOJ-OIG Special Agent in Charge Ryan T. Geach said: “No law enforcement officer should ever use excessive force.  These charges send a clear message that the Department of Justice Office of the Inspector General will aggressively pursue allegations of excessive force by DOJ law enforcement and its Task Force Officers.”

According to the Information that was filed today in Manhattan federal court as well as other public statements made in court:

On or about October 20, 2022, GENCO was employed as a Task Force Officer with the DEA.  GENCO was assigned to assist with the arrest of the Victim.  During the arrest, GENCO assaulted the Victim by forcefully kicking the Victim in the chest and stomach area while the Victim was restrained in handcuffs, resulting in injury to the Victim.  After the assault, GENCO intentionally misled a federal law enforcement agent about the assault, claiming that the Victim had continued to resist arrest after he was handcuffed.  GENCO also failed to truthfully disclose that he had kicked the Victim in the chest and stomach area while the Victim was restrained in handcuffs.  As a condition of his guilty plea, GENCO agreed, among other things, to permanently cease and refrain from seeking or obtaining law enforcement employment on behalf of any federal, state, or local entity.

*                *                *

GENCO, 51, of Seaford, New York, pled guilty to deprivation of constitutional rights under color of law, which carries a maximum sentence of one year 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 DOJ-OIG.

The prosecution is being handled by the Office’s Civil Rights Unit in the Criminal Division.  Assistant U.S. Attorney Mitzi Steiner is in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, and Paul Kiecker, the Administrator of the Food Safety and Inspection Service of the U.S. Department of Agriculture (“USDA-FSIS”), announced that the United States has sued wholesale meat and poultry distributer YA FENG TRADING, INC., its owner and president LINMIN YANG, and its warehouse manager KONG PING NI (collectively, the “Defendants”) for storing more than 40,000 pounds of meat and poultry products in a rodent-infested warehouse and for other conduct violating the Federal Meat Inspection Act (“FMIA”) and the Poultry Products Inspection Act (“PPIA”).  The U.S. has simultaneously entered into a Consent Decree with the Defendants, approved by the District Court, which bars YA FENG and YANG from further work under the FMIA and PPIA for a period of three years, requires all the Defendants to comply with the FMIA and the PPIA in any covered work, and imposes significant civil penalties for any future violations.  YA FENG ceased operating in December 2022 because of the risk of enforcement action relating to violations at issue in this case.

U.S. Attorney Damian Williams said: “Federal law requires food distributers and retailers to ensure that their products are stored in sanitary, uncontaminated conditions.  As this lawsuit illustrates, this Office has no tolerance for actors who ignore their legal obligations at the expense of public health.”

USDA-FSIS Administrator Paul Kiecker said: “Our inspection personnel and investigators are on the job daily, verifying that establishments are complying with food safety regulations.  FSIS remains committed to public health and we will take swift action to protect American consumers.”                                      

The FMIA and the PPIA protect public health by ensuring the nation’s commercial supply of meat and poultry is sanitary, safe, wholesome, and accurately labeled and packaged.  These requirements allow consumers to have confidence in the safety of their meat and poultry products and permit public health officials to trace problems to their source.

According to the Complaint filed in Manhattan federal court: 

The Defendants violated the FMIA and the PPIA by storing their meat and poultry products in a warehouse that was overrun with rodents.  In April 2022, USDA-FSIS investigators visited the YA FENG warehouse and observed multiple rodents scurrying into a walk-in cooler.  One rodent ran out of the cooler and up the leg of a USDA-FSIS investigator.  Chew marks were observed on meat and poultry products, and droppings were observed throughout the warehouse, including on the lids of products.  Rodent nesting materials and a dead mouse were found in a walk-in freezer. 

The Defendants also violated the FMIA and the PPIA repeatedly between December 2018 and April 2022 by offering for sale hundreds of pounds of misbranded meat and poultry products and by failing to maintain required records. 

In the Consent Decree, the Defendants admit and accept responsibility for, among other things, the following:

• On several occasions between December 2018 and April 2022, Defendants sold, transported, and/or offered for sale and/or transportation misbranded meat, meat food products, poultry, and/or poultry products, and/or failed to maintain records regarding their business transactions.  Specifically:
  • On or about December 13, 2018, YA FENG sold 20 pounds of misbranded chicken gizzards.
  • On or about January 28, 2020, YA FENG offered for sale and transportation 80 pounds of misbranded pork spare rib product and failed to maintain records that fully and correctly disclosed all business transactions involving meat in its business.
  • On or about November 9, 2020, and on other dates, YA FENG offered for sale and transportation five pounds of misbranded chicken gizzards and 117 pounds of misbranded meat products (pork spareribs, pork fat, pork feet).
  • On or about November 30, 2021, YA FENG offered for sale and transportation approximately 600 pounds of misbranded whole chickens, bone-in chicken thighs, chicken drumsticks, and chicken leg quarters.
• On or about April 14, 2022, USDA-FSIS investigators visited the YA FENG warehouse facility and observed 43,771.75 pounds of meat and poultry products being held in insanitary, rodent-infested conditions.  Fresh and old rodent droppings were observed throughout the building, including in a walk-in freezer and walk-in cooler that held meat and poultry products.  Droppings were observed on the lids of meat and poultry product boxes and beneath pallets holding the products.  Some products had gnawing and chewing marks from rodents.  Rodent nesting materials and a dead mouse were found in the walk-in freezer.
• Also, on or about April 14, 2022, YA FENG offered approximately 280 pounds of misbranded poultry products for sale.

In the Consent Decree, the Defendants expressly admit and accept responsibility for having “repeatedly violated the FMIA and PPIA.”

The Consent Decree bars YA FENG and YANG from engaging in activity subject to the FMIA or PPIA for three years.  All Defendants must complete mandatory training and education in the FMIA and the PPIA before returning to this line of work while the Consent Decree remains in effect.  They are also prohibited from storing meat and poultry products in unsanitary conditions, selling or transporting any uninspected meat and poultry products that are required to be inspected and passed by the USDA, selling any mislabeled meat and poultry products, failing to keep records regarding meat and poultry product business transactions, and engaging in any other conduct that would violate the FMIA or the PPIA.  The Defendants are subject to additional sanctions, including civil monetary penalties and other relief, if they violate the provisions of the Consent Decree. 

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Mr. Williams thanked the USDA-FSIS for its efforts on this matter. 

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

U.S. v. Ya Feng et al Complaint U.S. v. Ya Feng et al Consent Decree

Damian Williams, the United States Attorney for the Southern District of New York, announced today that ABRAHAM ADENIYI was sentenced today by U.S. District Judge Edgardo Ramos to three years in prison for operating a money laundering scheme that laundered nearly $8 million of wire fraud proceeds.  ADENIYI previously pled guilty to conspiracy to commit money laundering.

U.S. Attorney Damian Williams said: “Abraham Adeniyi used a web of bank accounts to funnel millions of dollars stolen from fraud victims into his own pockets and the pockets of the fraudsters.  He now faces prison time and is required to forfeit his ill-gotten gains.”

According to the allegations in the Indictment filed against ADENIYI and other court proceedings:

From at least in or about 2017 through at least in or about 2020, ADENIYI opened and directed others to open multiple bank accounts, which received proceeds of various wire fraud schemes.  ADENIYI provided his accomplices with fraudulent identification information to open those bank accounts.  Upon arrival of the fraudulent proceeds, ADENIYI transferred and directed others to transfer those proceeds rapidly among the various bank accounts controlled by participants in the scheme in order to conceal and disguise the source, location, ownership, and control of the funds.  Ultimately, after moving through multiple bank accounts, the funds were withdrawn as cash, transmitted overseas, or used for ADENIYI’s personal expenses.  This rapid transfer of funds prevented the banks and the victims from recovering the funds once the underlying frauds were detected.  During the course of the scheme, ADENIYI laundered at least nearly $8 million dollars of fraud proceeds.

*                *                *

In addition to his prison term, ADENIYI, 40, of Atlanta, Georgia, was ordered to forfeit and pay restitution in the amount of $7,814,294.56. 

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

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

Damian Williams, the United States Attorney for the Southern District of New York, and Naomi Gruchacz, the Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), announced today that the United States has filed and settled a civil fraud lawsuit against ADVANCED HEALTH PARTNERS, INC., f/k/a “Medicom Management Services, Inc.”; MEDEXCEL USA, INC.; MEDEXCEL EMERGENCY PHYSICIAN SERVICES OF YONKERS, PLLC (“MEPSY”); and TRI-STATE EMERGENCY PHYSICIANS, PLLC (collectively the “Defendants”).  This settlement resolves a lawsuit under the False Claims Act alleging that the Defendants submitted or caused the submission of false claims to Medicare using the names and identifying information of physicians who did not perform or supervise the medical services claimed and, in many cases, were no longer employed by the Defendants.

Under the terms of the settlement approved today by U.S. District Judge Nelson S. Román, the Defendants admitted and accepted responsibility for their conduct and agreed to pay $475,000 in damages to the United States.

U.S. Attorney Damian Williams said: “Advanced Health Partners, working with Medexcel, fraudulently billed Medicare on behalf of MEPSY and Tri-State at significant cost to taxpayers.  This settlement holds these entities accountable both through the monetary payment and the detailed admissions they have made.” 

HHS-OIG Special Agent in Charge Naomi Gruchacz said: “Providers that conceal or fail to submit accurate billing information can affect individuals who depend on Medicare funding for access to safe and effective health care services.  The laws are meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.  Our agency collaborates frequently with our law enforcement partners to investigate providers alleged to undermine our federal health care programs by submitting fraudulent claims, thus violating the False Claims Act.”

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

• Between 2007 and 2017 (the “Covered Period”), MEPSY and TRI-STATE provided clinical staff to operate emergency departments at various hospitals in or around the Southern District of New York (the “Emergency Departments”).
• During the Covered Period, ADVANCED HEALTH PARTNERS submitted claims to the Medicare program (the “Subject Claims”) for professional services rendered at the Emergency Departments by physicians or other clinical staff employed by MEPSY and TRI-STATE.
• MEDEXCEL provided management services to MEPSY and TRI-STATE.  Additionally, MEDEXCEL provided back-office support and guidance to ADVANCED HEALTH PARTNERS concerning its billing practices, including, in some instances, by directing which physician’s National Provider Identification number (“NPI”) to use to bill for specific services.
• During the Covered Period, several thousand of the Subject Claims used the NPIs of physicians who did not render or supervise the services in question, rather than the NPIs of the physicians who had actually rendered or supervised the services.  Specifically, ADVANCED HEALTH PARTNERS, who received billing guidance from MEDEXCEL, used the NPIs of physicians who previously had been, but were no longer, employed by MEPSY or TRI-STATE.
• Defendants MEPSY and TRI-STATE received substantial reimbursement from Medicare to which they were not entitled as a result of these claims, and ADVANCED HEALTH PARTNERS and MEDEXCEL caused Medicare to make these unwarranted payments.

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

*                *                *

Mr. Williams thanked HHS-OIG for its assistance. 

The case is being handled by the Office’s Civil Division.  Assistant U.S. Attorneys Peter M. Aronoff and Jacob M. Bergman are in charge of the case.

U.S. v. Advanced Health Partners et al Complaint U.S. v. Advanced Health Partners et al Settlement

Damian Williams, the United States Attorney for the Southern District of New York, announced today that PEACHES STERGO was sentenced by U.S. District Judge Edgardo Ramos to 51 months in prison in connection with her years-long scheme to defraud an 87-year-old Holocaust survivor of his life savings.

U.S. Attorney Damian Williams said: “Peaches Stergo callously defrauded an 87-year-old Holocaust survivor who was simply looking for companionship.  She used the millions of dollars in fraud proceeds to live a life of luxury at the victim’s expense.  But she did not get away with it.  As today’s sentence demonstrates, perpetrators of romance scams will be held to account for their crimes.”

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

From at least in or about May 2017, up to and including at least October 2021, STERGO engaged in a scheme to defraud an 87-year-old Holocaust survivor (the “Victim”) of over $2.8 million, which was his life savings. 

STERGO met the Victim on a dating website approximately seven years ago.  In or about early 2017, STERGO asked the Victim to borrow money to pay her lawyer, who she claimed was refusing to release funds from an injury settlement.  After the Victim gave her the money, STERGO said the settlement funds had been deposited into her TD Bank account.  In reality, bank records show STERGO never received any money from an injury settlement.

Over the next four and a half years, STERGO continued her lies.  She repeatedly demanded that the Victim deposit money into her bank accounts.  She claimed that if he did not, her accounts would be frozen, and he would never be paid back.  In total, the Victim wrote 62 checks — totaling over $2.8 million — that were deposited into one of two of STERGO’s bank accounts.   

In furtherance of the fraud, STERGO created a fake email account, intended to appear as if it belonged to a TD Bank employee.  She also created fake letters from a TD Bank employee and fake invoices.

STERGO called defrauding the Victim her “business.”  Once, STERGO told her real significant other that the Victim had said he “loved” her.  STERGO thought that her successful manipulation of the Victim’s emotions was humorous, following up her message with “lol.”  She also joked in a text message that the Victim was “broke” — that “[h]e don’t have anything else to pawn.”  But when the scam was over — when the Victim was no longer sending STERGO money — she was upset, not because she felt bad for the Victim or had a sense of remorse, but because she was unwilling to earn money though legitimate employment; she preferred to be a fraudster.  As she said in a text message, “I am just aggravated hurt frustrated that I haven’t made money . . . I don’t want to work . . . it’s too hard.”

While the Victim lost his life savings and was forced to give up his apartment, STERGO lived a life of luxury with the millions she received from the fraud: she bought a home in a gated community, a condominium, a boat, and numerous cars, including a Corvette and a Suburban.  During the course of the fraud, STERGO also took expensive trips, staying at places like the Ritz Carlton, and spent many tens of thousands of dollars on expensive meals, gold coins and bars, jewelry, Rolex watches, and designer clothing from stores like Tiffany, Ralph Lauren, Neiman Marcus, Louis Vuitton, and Hermes.

In imposing today’s sentence, Judge Ramos noted that STERGO’s conduct was “unspeakably cruel” and motivated by “greed.”

*                *                *

In addition to her prison term, STERGO, 36, of Champions Gate, Florida, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $2,830,775 and forfeit the same amount, including the home she purchased in a gated community and over 100 luxury items she purchased with fraud proceeds, including Rolex watches, designer purses and clothing, and large amounts of gold and jewelry. 

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 Adam Sowlati is in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced that MELVIN BURROUGHS was sentenced today by U.S. District Judge Andrew L. Carter, Jr., to 58 months in prison for trafficking firearms.  BURROUGHS previously pled guilty to trafficking firearms and conspiring to traffic firearms. 

U.S. Attorney Damian Williams said: “Illegal firearms — and in particular ghost guns — are a scourge to our community.  Melvin Burroughs built and sold a veritable armory of ghost guns, and he now faces prison time for his crimes.”

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

From approximately 2019 through approximately January 2022, BURROUGHS purchased the parts for “ghost guns,” assembled the parts into completed firearms, and then illegally sold the working and completed firearms. 

On March 14, 2021, BURROUGHS exited his house in Ansonia, Connecticut, with a handgun and — in broad daylight — discharged five rounds at two men who had approached his house.  Still images of that broad daylight shooting are below:

The Ansonia Police Department searched the defendant’s house the next day.  Law enforcement officers located two completed Glock-style privately made firearms (commonly known as “ghost guns”) and a .50-caliber Desert Eagle pistol that had been reported stolen in Georgia.  Law enforcement officers also recovered a custom-made red and black AR-15-style rifle with the words “SUU WHOOP” inscribed on it.  “Suu whoop” is a gang call of the Bloods street gang, and red is the color of the Bloods street gang.  In addition, law enforcement agents recovered large quantities of ammunition, various gun parts, tools for making ghost guns, and a flamethrower.  Photographs of certain of the materials seized from the defendant’s house are below:

In connection with the shooting and search of his residence, BURROUGHS was charged in the Superior Court of Connecticut – Ansonia-Milford Judicial District in Milford, Connecticut, with Connecticut state offenses and was released on bail conditions. 

On January 8, 2022 — while on bail for the shooting — BURROUGHS was arrested in Westchester County, New York, with kits to build 17 ghost guns, a completed lower receiver[1] for an AR-15 rifle, 15 extended magazines, and an 18-inch machete.  A photograph of the items seized from BURROUGHS on January 8, 2022, is below:

After BURROUGHS was arrested on January 8, 2022, law enforcement agents searched multiple cellphones belonging to BURROUGHS pursuant to search warrants.  Evidence on those cellphones, including text message communications, videos, and photographs, established that BURROUGHS has been unlawfully selling firearms since approximately 2019.  In particular, BURROUGHS’s gun trafficking business involved purchasing ghost gun parts online or at gun shows, building the ghost guns at his home, and then selling the completed firearms.  One of BURROUGHS’s cellphones contained a photograph of 15 ghost gun kits that BURROUGHS purchased in approximately February 2021. 

*                *                *

In addition to the prison term, BURROUGHS, 36, of Ansonia, Connecticut, was sentenced to three years of supervised release.

Mr. Williams praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  Mr. Williams also thanked the New York City Police Department, the Ansonia Police Department, the Westchester County District Attorney’s Office, the Connecticut Office of the State’s Attorney for Ansonia-Milford, and the U.S. Attorney’s Office for the District of Connecticut for their assistance in the case.

The case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorney Kevin Mead is in charge of the prosecution.

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[1] A “lower receiver” or “frame” is the bottom part of a firearm and the basic unit of a firearm, which, in an AR-15 rifle, houses parts related to the trigger, magazine, and hammer.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that RAFAEL MARTINEZ was sentenced to 54 months in prison for his role in a scheme to submit fraudulent loan and lender applications related to the Paycheck Protection Program (“PPP”) administered by the U.S. Small Business Administration (“SBA”).  MARTINEZ previously pled guilty to one count of conspiring to commit wire fraud before U.S. District Judge Lewis J. Liman, who imposed today’s sentence. 

U.S. Attorney Damian Williams said: “Martinez lied to get money that was supposed to help people through the challenges of COVID-19.  He lied so that he could fund a lavish lifestyle of cars, jets, and fancy homes.  Today’s sentence sends a clear message to those who would abuse the system to serve their own selfish ends: such conduct will be brought to light and to justice.  No one’s greed is above the law.”

According to the allegations in the Superseding Indictment, the Complaint, court filings, and statements made during plea and sentencing proceedings:

MARTINEZ used false representations and documents to fraudulently obtain the approval of the SBA for his company, MBE Capital Partners, LLC (“MBE”), to be a non-bank lender through the PPP in an effort to secure hundreds of millions of dollars in capital for PPP loans and, ultimately, to collect more than approximately $71 million in lender fees.  In addition, MARTINEZ engaged in a scheme to obtain a PPP loan for MBE in the amount of approximately $283,764 through false statements regarding the number of employees of MBE and the wages paid to MBE employees and using the forged signature of MBE’s tax preparer. 

At all relevant times, MARTINEZ has been the CEO and primary owner of MBE, a New York limited liability company formed in or about March 2015.  Republic Group, LLC, a/k/a “Republic Group Parts, LLC,” which is owned and controlled by MARTINEZ, serves as the holding company for MBE and conducts business as MBE.  According to MBE’s website, “For over 20 years, MBE Capital Partners has been a leading provider of financing solutions for small and diverse businesses. . .  In 2019, we financed over $1.7 billion in public and private debt and we funded over 35,000 PPP loans worth $800M.” 

On or about April 5, 2020, MARTINEZ applied to a financial institution for a government-guaranteed loan for Republic Group, d/b/a MBE, through the SBA’s PPP.  In connection with the loan application, MARTINEZ represented that MBE had as many as 15 employees and an average monthly payroll of approximately $119,390 in 2019.  In fact, however, from in or about April 2018 through in or about April 2020, MBE had at most four employees who had a total average monthly payroll of no more $25,000.  In order to support the false representations made by MARTINEZ in the loan application about the number of employees at and the wages paid by MBE, MARTINEZ submitted fraudulent and doctored tax records that contained the forged signature of a tax preparer located in New York, New York (the “Tax Preparer”).  Based on the false documentation provided by MARTINEZ, MBE was approved for a PPP loan in the amount of approximately $283,764, which was disbursed to a bank account controlled by MARTINEZ.  A majority of the loan proceeds do not appear to have been used for payroll for employees of MBE or other business expenses.

On or about April 9, 2020, within five days of applying for the PPP loan referenced above, MARTINEZ submitted an application to the SBA for MBE to become a non-bank PPP lender.  As part of the PPP lender application process, MARTINEZ represented that MBE had originated and serviced over $3.8 billion in business loans or other commercial financial receivables for the three-year period from in or about 2017 through in or about 2019 and submitted fraudulent financial statements that purported to be audited by the Tax Preparer’s firm for the years 2018 and 2019.  Based on the false information provided by MARTINEZ to the SBA, MBE was approved as a non-bank lender for PPP loans.

On or about April 27, 2020, MARTINEZ submitted various documents, including the same fraudulent audited financial statements for 2019 provided to the SBA, to a life insurance company (the “Company”) as part of a proposed partnership to fund PPP loans for minority and women-owned small businesses.  On or about May 13, 2020, the Company provided MBE with $100 million to fund PPP loans, which MBE in turn used as collateral to borrow additional capital of approximately $832 million through the Paycheck Protection Program Liquidity Facility (“PPPLF”) with the Federal Reserve.

As a result of the above fraudulent misrepresentations, MARTINEZ, through his company MBE, became an approved PPP lender and issued approximately $823 million in PPP loans to approximately 36,600 businesses.  These loans earned MARTINEZ a total of approximately $71.3 million in fees.  MARTINEZ spent the proceeds from his criminal conduct on, among other things, the purchase of a villa in the Dominican Republic for over $10 million, a $3.5 million mansion located in Franklin Lakes, New Jersey, a chartered jet service, and several luxury vehicles, including a 2018 Porsche 911 Turbo, a 2017 Ferrari 488 Spider, a 2017 Bentley Continental GT, a BMW 750, and a 1962 Mercedes Benz 190. 

*                *                *

In addition to his prison term, MARTINEZ, 57, of Franklin Lakes, New Jersey, was sentenced to three years of supervised release and further ordered to forfeit $44,546,712.94, as well as multiple properties and luxury vehicles, including a Ferrari Model 488 Spider, pay restitution in the amount of $71,711,893.07, and pay a $100 special assessment fee. 

Mr. Williams praised the outstanding investigative work of the Internal Revenue Service, Criminal Investigation; the U.S. Small Business Administration, Office of Inspector General; and the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, Eastern Region.

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Micah Fergenson, Katherine Reilly, and Steven Kochevar are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, and Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), announced today criminal charges against DAQUAN SEYMOUR and RASHAWN WALKER, two supervisors at the Horizon Juvenile Center (“Horizon”), a secure detention center for juveniles located in the Bronx, New York.  The charges relate to the April 25, 2022, beating of a 16-year-old resident at Horizon (the “Minor Victim”) and attempt to cover-up the beating.  SEYMOUR and WALKER were charged with federal civil rights offenses, including conspiring to deprive the Minor Victim of his constitutional rights and depriving the Minor Victim of his constitutional rights under color of law, as well as filing false reports.  SEYMOUR and WALKER were arrested this morning and will be presented in Manhattan federal court later today.  The case has been assigned to U.S. District Judge Edgardo Ramos.

U.S. Attorney Damian Williams said: “Today’s charges allege a violent beating and a brazen cover-up by two supervisors at a juvenile detention facility in the Bronx that left a teenage resident seriously injured.  Instead of safeguarding the youth that they were entrusted with protecting, Seymour and Walker violently dragged, punched, and stomped on the minor and then took steps to conceal the beating.  My Office is committed to protecting the constitutional rights of all New Yorkers, including minors residing at youth detention facilities, and will ensure that those who abuse their authority are held accountable.”

DOI Commissioner Jocelyn E. Strauber said: “Defendants Seymour and Walker, ACS supervisors, had a duty to protect the youth residing in the Horizon Juvenile Center in the Bronx.  Instead, they taunted and violently beat a 16-year-old resident, resulting in bodily injuries requiring medical care, and attempted to hide their disturbing misconduct by filing false reports, as alleged in the Indictment.  Juvenile residents in custody should never be victimized by those entrusted with their safety.  I thank the United States Attorney’s Office for the Southern District of New York for their partnership in this investigation and in our efforts to protect the rights of juveniles in detention centers.”

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

On or about April 25, 2022, SEYMOUR and WALKER were employed as Associate Youth Development Specialists at the Horizon Juvenile Center (“Horizon”), a secure detention center for juveniles located in the Bronx, New York, that was operated by the New York City Administration for Children’s Services (“ACS”).  Associate Youth Development Specialists at Horizon are responsible for, among other things, supervising other staff members and ensuring the safety of all juvenile residents. 

At the time of the beating, the Minor Victim was a 16-year-old pre-trial juvenile resident at Horizon.  Following a confrontation between several staff members and juvenile residents at Horizon, including the Minor Victim, SEYMOUR and WALKER violently dragged the Minor Victim by his forearms across the floor of a residential hall and into a private room (the “Room”).  Once inside the Room, SEYMOUR and WALKER beat the Minor Victim, striking him repeatedly and forcefully as the Minor Victim lay on the floor.  SEYMOUR and WALKER took steps to restrain the Minor Victim, including by pinning down the Minor Victim’s hands.  WALKER also stomped on the Minor Victim’s stomach and groin area.  Both SEYMOUR and WALKER taunted and directed profanities at the Minor Victim during the beating.  As a result of the beating, the Minor Victim suffered bodily injuries, including a deep laceration to his upper lip area, which required the Minor Victim to be transported to a nearby hospital for medical care. 

Following the beating of the Minor Victim, SEYMOUR and WALKER attempted to cover up their participation in the beating.  In particular, both SEYMOUR and WALKER prepared Horizon incident reports that described the confrontation between Horizon residents and staff members that immediately preceded the assault but failed to disclose that they dragged or physically assaulted the Minor Victim.

*                *                *

SEYMOUR, 33, of the Bronx, New York, and WALKER, 33, of Queens, New York, are each charged with one count of conspiracy to deprive civil rights, which carries a maximum sentence of 10 years in prison; one count of deprivation of rights under color of law, which carries a maximum sentence of 10 years in prison; and one count of falsification of records, which carries a maximum sentence of 20 years in prison. 

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

Mr. Williams praised the efforts of the DOI for their outstanding work on this matter.  Mr. Williams also thanked the Special Agents of the U.S. Attorney’s Office for the Southern District of New York for their significant assistance. 

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 Mitzi S. Steiner 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.

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

U.S. v. Seymour and Walker Indictment

Damian Williams, the United States Attorney for the Southern District of New York, announced that defendant JASON SERVIS was sentenced to four years in prison today for his role in a years-long scheme in which horses trained by SERVIS were doped with approved and unapproved drugs designed to improve the performance of SERVIS’s racehorses, in connection with the charges filed in United States v. Navarro et al., 20 Cr. 160 (MKV).  SERVIS was one of over 30 defendants charged in four separate cases in March 2020, each arising from this Office’s multi-year investigation of the abuse of racehorses through the use of performance enhancing drugs (“PEDs”).

U.S. Attorney Damian Williams said: “Today’s sentence sends a clear signal to those in the racehorse industry that no one is above the law.  Endangering the welfare of animals for profit will not be tolerated.  Illegally doping racehorses is a serious crime that will be met with a serious sentence.”

According to the allegations contained in the Superseding Indictment, the Superseding Information charging SERVIS, prior charging instruments, other filings in this case, and statements during court proceedings:

 The charges in the Navarro case arose from an investigation of widespread schemes by racehorse trainers, veterinarians, PED distributors, and others to manufacture, distribute, and receive adulterated and misbranded PEDs and to secretly administer those PEDs to racehorses competing at all levels of professional horseracing.  By evading PED prohibitions and deceiving regulators and horse racing officials, participants in these schemes sought to improve race performance and obtain prize money from racetracks throughout the United States and other countries, including in New York, New Jersey, Florida, Kentucky, and Saudi Arabia, all to the detriment and risk of the health and well-being of the racehorses.  Trainers who participated in the schemes, like SERVIS, stood to profit from the success of racehorses under their control by earning a share of their horses’ winnings and by improving their horses’ racing records, thereby yielding higher trainer fees and increasing the number of racehorses under their control.

SERVIS obtained hundreds of bottles of the drug “SGF-1000,” which was compounded and manufactured in unregistered facilities and contained growth factors that the defendant believed to be undetectable through regular drug screens.  Virtually all the horses in SERVIS’s barn received that drug, including the thoroughbred racehorse “Maximum Security,” who crossed the finish line first at the 2019 Kentucky Derby.  SGF-1000 was an intravenous drug promoted as, among other things, a vasodilator capable of promoting stamina, endurance, and lower heart rates in horses through the purported action of “growth factors.”  SERVIS approved veterinary bills to racehorse owners that contained concealed charges for SGF-1000, which were falsely billed under the line item “Acupuncture & Chiropractic.”  In September 2019, the New York State Gaming Commission released an advisory stating that SGF-1000 was prohibited under the racing rules and had been prohibited since 2012.  SERVIS continued to allow the administration of that drug on the horses he trained up until his arrest in March 2020.

SERVIS-trained horses were also regularly administered the prescription drug “Clenbuterol” with no valid prescription, which was part of a deliberate effort to conceal that conduct from racing regulators and avoid mandatory reporting requirements.

SERVIS further obtained and transported a misbranded version of “Clenbuterol,” which he obtained from convicted co-defendant JORGE NAVARRO.

*                *                *

In addition to the prison term, SERVIS, 65, of Jupiter, Florida, was sentenced to one year of supervised release and ordered to pay $311,760 in forfeiture, $163,932 in restitution, and a $30,000 fine.

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation New York Field Office’s Eurasian Organized Crime Task Force and its support of the Bureau’s Integrity in Sports and Gaming Initiative.  Mr. Williams also thanked the Food and Drug Administration and Customs and Border Protection for their assistance and expertise.

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

Damian Williams, the United States Attorney for the Southern District of New York, and Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging JOSEPH LEWIS and his co-conspirators, PATRICK O’CONNOR and BRYAN WAUGH, a/k/a/ “Marty Waugh,” with insider trading securities fraud and related charges.  The defendants were arrested this morning and will be presented later today. 

U.S. Attorney Damian Williams said: “My Office, the Southern District of New York, has indicted Joe Lewis, the British billionaire, for orchestrating a brazen insider trading scheme and his co-conspirators and personal pilots, Patrick O’Connor and Bryan ‘Marty’ Waugh.  We allege that, for years, Joe Lewis abused his access to corporate boardrooms and repeatedly provided inside information to his romantic partners, his personal assistants, his friends, and his pilots.  Those folks then traded on that inside information – and made millions of dollars in the stock market – because, thanks to Lewis, those bets were a sure thing.  None of this was necessary.  Joe Lewis is a wealthy man, but as we allege, he used inside information as a way to compensate his employees or to shower gifts on his friends and lovers.  That’s classic corporate corruption.  It’s cheating.  And it’s against the law – laws that apply to everyone, no matter who you are.”

FBI Acting Assistant Director in Charge Christie M. Curtis said: "As alleged, Lewis and his associates used material, non-public information for the personal benefit of themselves and close associates, despite knowing that the activity was illicit.  This type of behavior - blatant disregard for the law - is not only illegal but undermines the integrity of our financial markets.  The FBI is determined to ensure that anyone willing to perpetrate insider trading schemes is held accountable in the United States criminal justice system."

According to the allegations contained in the Indictments unsealed in Manhattan federal court and court filings:1

JOSEPH LEWIS is a billionaire businessman and investor who is the principal owner of the Tavistock Group, an international private investment organization.  By virtue of LEWIS’s investments in certain companies, he has controlled one or more board of director seats at those companies and has deputized employees to serve on various company boards.  In turn, through these employees, LEWIS received material, non-public information about these companies, including, for example, information about upcoming favorable test results for biochemical companies.  LEWIS, on multiple occasions over the course of several years, then misused and misappropriated this confidential information to provide stock tips to various individuals in his life, including his employees, romantic partners, and friends, as a way to provide them with compensation and gifts.  These individuals, in turn, traded on the tips provided by LEWIS for vast personal gain.

In addition, LEWIS conspired with others to hide his ownership shares of a pharmaceutical company through a pattern of false filings and misleading statements.  More specifically, LEWIS was required to file schedules of share ownership with the Securities and Exchange Commission (“SEC”) because he was an owner of more than 10% of the stock of Mirati Therapeutics (“Mirati”).  LEWIS reported to the SEC that he owned between 16 and 19.99% of the stock, when, in reality, he beneficially owned more than 19.99% of Mirati stock through an elaborate array of shell companies and other entities, including an offshore trust purportedly for the benefit of his granddaughter.  As a result of the false disclosure of his ownership, LEWIS was able to exercise warrants in Mirati that he would otherwise not have been able to exercise, at vast financial gain.  At one point, when HSBC bank inquired about a transaction related to Mirati, LEWIS’s employee falsely told HSBC that the transaction was the repayment of a loan from LEWIS, a false explanation that LEWIS had told him he was “happy with,” despite knowing it was false. 

PATRICK O’CONNOR and BRYAN WAUGH are two pilots employed by LEWIS to fly his private aircraft.  LEWIS tipped both O’CONNOR and WAUGH and encouraged them to trade based on material, non-public information.  In one instance, LEWIS gave O’CONNOR and WAUGH loans, each worth $500,000, so they could buy a company’s stock before the public release of favorable clinical results.  In connection with that loan, O’CONNOR texted a friend to buy the stock, told the friend the “Boss is helping us out and told us to get ASAP,” and assured the friend that “All conversations on app is encrypted so all good.  No one can ever see.”  O’CONNOR also texted the friend that “Boss mentioned around 6 to 8 weeks for [Mirati] to take profit” and that he thought “the Boss has inside info” and “knows the outcome” of not-yet-public clinical testing.  O’CONNOR and WAUGH later sold the stock they had purchased on the basis of these tips for a profit, as did LEWIS’s assistant and friends. 

*                *                *

LEWIS, 86, a British national, has been charged with 13 counts of securities fraud under Title 15, each of which carries a maximum sentence of 20 years in prison; three counts of securities fraud under Title 18, each of which carries a maximum sentence of 25 years in prison; and three counts of conspiracy, each of which carries a maximum sentence of five years in prison.

O’CONNOR, 66, of Preston Hollow, New York, has been charged with four counts of securities fraud under Title 15, each of which carries a maximum sentence of 20 years in prison; three counts of securities fraud under Title 18, each of which carries a maximum sentence of 25 years in prison; and one count of conspiracy, which carries a maximum sentence of five years in prison.

WAUGH, 64, of Lynchburg, Virginia, has been charged with four counts of securities fraud under Title 15, each of which carries a maximum sentence of 20 years in prison; three counts of securities fraud under Title 18, each of which carries a maximum sentence of 25 years in prison; and one count of conspiracy, which carries a maximum sentence of five years in prison.

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

Mr. Williams praised the outstanding investigative work of the FBI.  He also expressed appreciation for the SEC, which separately initiated civil proceedings against the defendants today.  Mr. Williams further thanked the Justice Department’s Office of International Affairs for its assistance during this investigation.

This prosecution is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Nicolas Roos, Jason A. Richman, and Alex Rossmiller are in charge of the prosecution.

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

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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.

U.S. v. Joseph Lewis Indictment U.S. v. Joseph Lewis et al Indictment

Damian Williams, the United States Attorney for the Southern District of New York, and Jonathan Mellone, the Special Agent in Charge of the Northeast Region of the U.S. Department of Labor, Office of the Inspector General (“DOL-OIG”), announced today that JOSE LEMA, a/k/a “Jose Lema Mizhirumbay,” the founder and principal of ALJ Home Improvement, Inc., a New York roofing company, was charged with willfully violating Occupational Safety and Health Administration (“OSHA”) regulations, resulting in the death of an employee (“Victim-1”) in New Square, New York, on or about February 8, 2022.  The Complaint charges that LEMA failed to ensure employees wore fall protection systems, and Victim-1 fell off the roof of a building under construction and died.  LEMA was arrested this morning at his home in Nanuet, New York, and will be presented before U.S. Magistrate Judge Victoria Reznik in White Plains federal court later today.

U.S. Attorney Damian Williams said: “As alleged, Lema endangered the safety of his workers by disregarding regulations and failing to ensure his employees used fall protection systems.  This conduct led to the death of a roof worker on a construction site.  Today’s charge should serve as a reminder to small businesses that failure to comply with safety regulations can lead to unnecessary and preventable tragedy.”

DOL-OIG Special Agent in Charge Jonathan Mellone said: “An important part of the mission of the Office of Inspector General is to investigate allegations of criminal misconduct related to U.S. Department of Labor programs.  We will continue to work with our law enforcement partners and DOL’s Occupational Safety and Health Administration to hold those who jeopardize workers’ safety accountable.”

As alleged in the Complaint:[1]

On the morning of February 8, 2022, LEMA sent Victim-1 and three other ALJ employees to install a roof on a three-story multi-family apartment building under construction in New Square, New York (the “Worksite”).  Victim-1 and the other ALJ employees ascended a ladder to the roof, but within 20 to 30 minutes of arriving at the Worksite, Victim-1 fell off the roof and landed on the ground approximately 30 feet below.  He died from his injuries.  Victim-1 was wearing a safety harness, but there was no lanyard, rope, or any other attachment connected to the D-ring on the back of the harness that would have connected him to the roof.  Nor were there anchors on the roof to attach a rope had there been one connected to the harness.  OSHA cited ALJ for failing to ensure its employees were using fall protection systems.

Victim-1’s deadly fall was not the first time an employee of LEMA and ALJ fell to his death at one of ALJ’s worksites or that ALJ employees were exposed to fall hazards.  OSHA investigated ALJ six times before Victim-1’s death and once after.  OSHA issued citations after each incident.  The first time, on or about February 27, 2019, an ALJ employee slipped off the roof of a newly constructed three-story home in Kiamesha Lake, New York (“Victim-2”), fell 35 feet to the ground, and subsequently died from his injuries.  OSHA determined that Victim-2 was not wearing a safety harness and issued citations to ALJ for, among other things, failure to ensure employees wear fall protection systems.  ALJ settled and agreed to pay a penalty.

There were five more incidents on five different worksites in New York and New Jersey after Victim-2’s death in February 2019 and before Victim-1’s death in February 2022 in which ALJ employees were exposed to fall hazards and OSHA cited ALJ for failing to ensure its employees were using fall protection systems.  In each case, ALJ settled and agreed to pay a penalty.

Even after Victim-1’s death, LEMA continued to violate OSHA standards and failed to protect his employees.  On or about August 4, 2022, ALJ employees were working on an 18-foot roof in Ho Ho Kus, New Jersey, without any apparent fall protection.  They were wearing harnesses that were not secured to the roof.  OSHA issued more citations, including willful failure to ensure employees wear fall protection systems.

In all, between in or about 2019 and in or about 2023, OSHA performed eight investigations of ALJ worksites that resulted in the issuance of 24 willful citations, 16 serious citations, and over $2.3 million in penalties.  Each time OSHA investigated, Compliance Safety and Health Officials met with LEMA and made him aware of his rights and obligations to his employees.  At an OSHA administrative deposition, LEMA admitted that prior to Victim-1’s fall, he knew that employees on a roof higher than six feet high needed to be protected by some form of fall protection.  But despite that knowledge, citations, and fines from six previous investigations, LEMA failed to follow OSHA standards and protect Victim-1 and his other employees.

*                *                *

LEMA, 40, of Nanuet, New York, is charged with one count of knowingly and willfully violating OSHA residential construction fall protection standards by failing to protect his employees from fall hazards and causing injuries that resulted in an employee’s death, which carries a maximum sentence of six months in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. 

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

Mr. Williams praised the outstanding work of OSHA, DOL-OIG, 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 White Plains Division.  Assistant U.S. Attorney Margery Feinzig is in charge of the prosecution.

The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.

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[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.

U.S. v. Lema Complaint

Damian Williams, the United States Attorney for the Southern District of New York, announced that ROBERT HADDEN was sentenced today to 20 years in prison by U.S. District Judge Richard M. Berman for enticing and inducing four victims to travel interstate to engage in unlawful sexual activity.  HADDEN, who practiced medicine between in or about 1987 to 2012, was convicted at trial on January 24, 2023, for inducing four victims to travel interstate to his medical offices in Manhattan so that he could sexually abuse them.  The Government proved at trial that the defendant sexually abused dozens of patients over the course of more than two decades under the guise of purported medical examinations. 

U.S. Attorney Damian Williams said: “Under the guise of medical treatment, Robert Hadden sexually abused and assaulted numerous patients for approximately 25 years, exploiting them in vulnerable moments for his own sexual gratification.  Thanks to the tireless work of the career prosecutors of this Office, Hadden will rightfully spend decades in federal prison.  We thank and commend the victims who bravely came forward to share their stories and ensure that their abuser faces justice.” 

According to the Indictment, evidence presented at trial, and other filings and statements made in court:

For approximately 25 years, between in or about 1987 and in or about 2012, ROBERT HADDEN sexually abused and assaulted at least dozens of female patients, some repeatedly, as an obstetrician/gynecologist employed by Columbia University Medical Center and during purported medical examinations.  HADDEN used his position as a medical doctor employed by a prestigious medical institution to make or to attempt to make his victims believe that the sexual abuse he inflicted on them was appropriate and medically necessary.  HADDEN encouraged victims to return to see him and directed victims to schedule follow-up visits on timelines he set.  As a result, some of the victims attended many appointments with HADDEN over the course of several years, during which HADDEN sexually abused them.  HADDEN caused four victims to return to Manhattan for appointments with him so that he could sexually abuse them, knowing that these victims would have to travel across state lines for their appointment.

HADDEN used sophisticated techniques to carry out his abuse, which he honed over the course of more than two decades.  He exploited the power differential inherent in the doctor-patient relationship, he built rapport with victims, he asked victims invasive and unprompted questions about their sexual activity, including about sex positions and if they were able to achieve orgasm, and he provided unsolicited advice on these topics.  He also used so-called breast and vaginal exams to hide his abuse, he isolated patients, and he conducted fake examinations.

HADDEN sexually abused victims in various ways, including by massaging and groping victims’ breasts for a prolonged period; groping both breasts at the same time; pinching, twisting, or otherwise manipulating a victim’s nipples; extracting colostrum from a victim’s breasts and tasting it; digitally penetrating and/or rubbing victims’ vaginas in efforts to masturbate them; touching victims’ clitorises; and licking victims’ vaginas.  Each of these abusive acts was committed by HADDEN without any valid medical purpose and under the guise of legitimate medical care. 

At the sentencing, Judge Berman imposed the statutory maximum penalty for each count of conviction, to run concurrently.  The Court described the defendant’s conduct as “exceptional and unprecedented,” “shocking in the extreme,” “horrific,” and “depraved.”  In imposing its sentence, the Court discussed, among other things, the magnitude and scope of the defendant’s serial sexual abuse, its unchecked nature, the defendant’s “skillfulness at deception,” the predatory nature of his sex crimes, and the fact that the defendant preyed on vulnerable patients who trusted him, thereby repeatedly violating a “woman’s right to decide what happens to her body.” 

*                *                *

In addition to the prison term, HADDEN, 64, of Englewood, New Jersey, was sentenced to a lifetime of supervised release and ordered to pay a $10,000 fine and a $400 special assessment fee.

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

This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Lara Pomerantz, Jane Kim, and Paul Monteleoni are in charge of the prosecution, with the assistance of Paralegal Specialist Connor Hamill.

Damian Williams, the United States Attorney for the Southern District of New York, announced that PERRY JOYNER, a former Bureau of Prisons correctional officer, was sentenced today to 43 months in prison for smuggling contraband into the Metropolitan Correctional Center (“MCC”) in exchange for over $70,000 in bribes from inmates and for attempting to have an inmate assaulted to keep that inmate from reporting JOYNER’s crimes to law enforcement.  JOYNER pled guilty before U.S. District Judge Andrew L. Carter, Jr. on December 14, 2022.  Judge Carter imposed today’s sentence.

U.S. Attorney Damian Williams said:  “Correctional officers are entrusted to care for and maintain custody and control over inmates.  Perry Joyner violated that trust repeatedly by soliciting and receiving bribes from inmates and by attempting to coordinate the assault of an inmate whom he believed was cooperating with the Government.  This sentence should send a message to correctional officers: you will be held accountable when you violate your sworn duty to ensure the care, custody, and control of our nation’s inmate population.”

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

From at least October 2019 through February 2020, JOYNER, a correctional officer at the MCC, received approximately $77,894 in bribe payments from MCC inmates or their associates in exchange for JOYNER smuggling to inmates drugs (including, but not limited to, oxycodone, alprazolam, Suboxone, marijuana, and K2), cellphones, cigarettes, and alcohol.  MCC inmates then used, sold, or exchanged that contraband amongst themselves and resold it to other inmates.  

In or about February 2020, JOYNER believed a particular inmate (“Inmate-1”), who had previously bribed JOYNER, was cooperating with the Government.  In response, JOYNER requested other inmates slash or otherwise assault Inmate-1 as retribution and intimidation.  Before any inmate followed through on JOYNER’s request, Inmate-1 was moved out of the MCC.

*                *                *

In addition to today’s prison sentence, JOYNER, 30, of Orange, New Jersey, was sentenced to two years of supervised release ordered to forfeit $77,894.

Mr. Williams praised the outstanding work of the Federal Bureau of Investigation; the Department of Justice, Office of the Inspector General; Special Agents from the U.S. Attorney’s Office for the Southern District of New York; and the U.S. Customs and Border Protection in New York.

The prosecution of this case is being handled by the Office’s Public Corruption and Narcotics Units.  Assistant U.S. Attorneys Aline R. Flodr, Jonathan E. Rebold, and Daniel H. Wolf are in charge of the prosecution, with the assistance of Paralegal Specialist Christopher de Grandpre.   

Damian Williams, the United States Attorney for the Southern District of New York, announced that TIMOTHY SHEA was sentenced today by U.S. District Judge Analisa Torres to 63 months in prison for his role in carrying out a scheme to defraud hundreds of thousands of donors in connection with an online crowdfunding campaign known as “We Build The Wall” by soliciting donations using false statements and then stealing the resulting donations, as well as laundering the proceeds of the fraud scheme and attempting to obstruct the federal criminal investigation of the scheme.

U.S. Attorney Damian Williams said: “Timothy Shea abused the trust of donors to ‘We Build the Wall,’ stole hundreds of thousands of dollars in donations to line his own pockets, and attempted to obstruct the federal investigation of his criminal conduct.  The defendant has now been held accountable and faces prison time for his crimes.”

According to court filings and evidence introduced during court proceedings:

Starting in approximately December 2018, TIMOTHY SHEA, his co-defendants BRIAN KOLFAGE and ANDREW BADOLATO, and others orchestrated a scheme to defraud hundreds of thousands of donors, including donors in the Southern District of New York, in connection with an online crowdfunding campaign ultimately known as “We Build The Wall” that raised more than $25,000,000 to build a wall along the southern border of the United States.  In particular, to induce donors to donate to the campaign, KOLFAGE repeatedly and falsely assured the public that he would “not take a penny in salary or compensation” and that “100% of the funds raised…will be used in the execution of our mission and purpose.”

Those representations were lies.  In truth, KOLFAGE, BADOLATO, SHEA, and others received hundreds of thousands of dollars in donor funds from We Build the Wall, which they each used in a manner inconsistent with the organization’s public representations.  For example, KOLFAGE covertly took for his personal use more than $350,000 in funds that donors had given to We Build the Wall.  To conceal the payments to KOLFAGE from We Build the Wall, KOLFAGE, BADOLATO, SHEA, and others devised a scheme to route those payments through entities and bank accounts that they controlled.  They took various steps to obscure or conceal these payments, including by using fake invoices and sham contracts — conduct for which SHEA was convicted at trial of obstruction of justice.

*                *                *

SHEA, 52, of Castle Rock, Colorado, was convicted after trial of conspiracy to commit wire fraud, conspiracy to commit money laundering, and obstruction of justice.  In addition to the prison term, SHEA was sentenced to three years of supervised release and ordered to forfeit $1,801,707 and pay restitution in the amount of $1,801,707.

KOLFAGE, 41, of Miramar Beach, Florida, and BADOLATO, 58, of Cocoa, Florida, each pled guilty to one count of conspiracy to commit wire fraud.  KOLFAGE also pled guilty to tax and wire fraud charges originally filed by the U.S. Attorney’s Office for the Northern District of Florida.  KOLFAGE was sentenced to 51 months in prison, and BADOLATO was sentenced to 36 months in prison.

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

The case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Alison G. Moe, Nicolas Roos, Robert B. Sobelman, and Derek Wikstrom are in charge of the prosecution, with the assistance of Paralegal Specialists Christopher de Grandpre and Andrea Gieseman.

Damian Williams, the United States Attorney for the Southern District of New York, announced the conviction of PHYO HEIN HTUT, a Burmese national, of one count of conspiracy to assault a foreign official in connection with his participation in a plot to assault Myanmar’s Permanent Representative to the United Nations (the “Ambassador”).  HTUT was found guilty after an eight-day trial before U.S. District Judge Nelson S. Román and is scheduled to be sentenced on March 14, 2024, before Judge Román.

U.S. Attorney Damian Williams said: “While volunteering on a security team at Myanmar’s Permanent Mission to the United Nations, Phyo Hein Htut betrayed the person he was supposed to be protecting by secretly feeding information about the Ambassador, the Mission, and its personnel to an arms dealer in furtherance of a plot to hurt the Ambassador.  The jury’s unanimous verdict holds him to account for his actions.”

According to the allegations contained in the Indictment, the evidence offered at trial, and matters included in public filings:

Between in or about February 2021 through at least on or about August 5, 2021, HTUT, a citizen of Myanmar residing in New York, conspired to injure or kill Myanmar’s Permanent Representative to the United Nations.  During the conspiracy, HTUT communicated with an arms dealer in Thailand (the “Arms Dealer”) who sells weapons to the Burmese military, which overthrew Myanmar’s civilian government in or about February 2021.  In the course of those conversations, HTUT supplied information to the Arms Dealer about the Ambassador, the inner workings of Myanmar’s Permanent Mission to the United Nations, and other Mission personnel.  HTUT also accepted money the Arms Dealer sent to him to hire attackers to hurt the Ambassador in an attempt to force the Ambassador to step down from his post.  

*                *                *

HTUT, 29, a Burmese national residing in New York, was convicted of conspiracy to assault a foreign official, 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 a judge.

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation, the Westchester County Safe Streets Task Force, and the New York City Police Department.

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Jeffrey Coffman and Benjamin Klein, with the assistance of Paralegal Specialist Teresa Leo, are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, and Lisa F. Garcia, the Regional Administrator for Region 2 of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has filed a civil lawsuit against THOMAS PUSHKAL, JENNIFER VANOVER, EDWARD PUSHKAL, FRANCES PUSHKAL, and MAPLEWOOD WARMBLOODS, LLC (collectively, the “defendants”) for allegedly filling wetlands in Orange County protected by the federal Clean Water Act.  The Complaint asks the Court to award injunctive relief and civil penalties for the violations.

U.S. Attorney Damian Williams said: “As alleged, the defendants violated the Clean Water Act by discharging concrete, metal, glass, and other fill material into wetlands that are part of the waters of the United States.  This lawsuit will hold the defendants accountable for allegedly violating our environmental laws and require them to remedy the alleged significant damage they have caused to protected wetlands.”

EPA Regional Administrator Lisa F. Garcia said: “Wetlands serve a vital role in decreasing water pollution, providing habitat for fish and wildlife, and reducing risks from flooding and storm surges.  Unlawful and unmitigated dredging and filling activities can destroy wetlands.  EPA will continue to protect these vulnerable ecosystems and fight for the health of wetlands by enforcing the law under the Clean Water Act.”

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

From 2015 to 2019, defendants THOMAS PUSHKAL, JENNIFER VANOVER, and their business MAPLEWOOD WARMBLOODS, LLC discharged fill material without a federal permit into approximately 3.5 acres of wetlands, in areas referred to in the Complaint as the Bart Bull Road Site and the Expansion Site.  These discharges were made in the course of operating and expanding their horse breeding, boarding, and training facility in the Town of Wallkill, Orange County.

Specifically, from in or about June 2015 to March 2016, these defendants directed or permitted construction and demolition material to be trucked in and deposited at the Bart Bull Road Site and directed or permitted the use of heavy machinery to spread the fill material to level and raise the grade of the property. 

At the end of November 2018, EPA learned of the potential development activity at the Expansion Site and, in December 2018, cautioned defendant THOMAS PUSHKAL by phone that if he was filling protected wetlands on any additional properties, he would need a federal permit. 

Nonetheless, beginning in or about December 2018 and continuing to April 2019, without a permit, these defendants used dump trucks and other heavy machinery to engage in extensive earthmoving, grading, and filling activities to construct private access roads through the Expansion Site.  The construction of these roads caused fill to be discharged into 1.5 acres of wetlands at the Expansion Site.  Some wetlands filled at the Expansion Site are on property owned by defendants EDWARD PUSHKAL and FRANCES PUSHKAL, who, at a minimum, knew or should have known of, but failed to exercise their authority to prevent, the discharges.

The wetlands that are the subject of the Complaint are adjacent to the Wallkill River, a traditional navigable water.  The fill material discharged into the wetlands included, among other things, dirt, rock, brick, wood, electrical wiring, ceramic, asphalt, concrete, rebar, PVC piping, metal, and glass.

*                *                *

This case is being handled by the Office’s Environmental Protection Unit.  Assistant U.S. Attorneys Zachary Bannon and Alyssa O’Gallagher are in charge of the case.

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

U.S. v. Pushkal et al Complaint

Damian Williams, the United States Attorney for the Southern District of New York, and Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging MARIO STEWART, a Sergeant with the Mount Vernon Police Department (“MVPD”), with using excessive force against an individual (the “Victim”) while in Mount Vernon, New York, in violation of the Victim’s rights under the United States Constitution.  As alleged in the Indictment, during a call for assistance, STEWART, in the presence of six other MVPD officers, tased the Victim seven times in the span of approximately two minutes.  For the duration of all seven taser deployments, the Victim lay on the ground, handcuffed with his hands behind his back and his legs secured in a restraint bag.  STEWART surrendered to the FBI this morning and was presented this afternoon before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court.  The case has been assigned to U.S. District Judge Kenneth M. Karas.

U.S. Attorney Damian Williams said: “As alleged, Mario Stewart, a Sergeant with the Mount Vernon Police Department, was called to the scene to aid a person in emotional distress.  Instead of providing aid, Stewart deployed his taser on the individual seven times in the span of roughly two minutes, while the individual was handcuffed and with his legs restrained and while several other MVPD officers were on scene to assist.  Stewart’s alleged conduct not only betrayed his duty as an officer to protect those under his charge, but also violated the law.  My Office is committed to protecting the constitutional rights of all New Yorkers, including those experiencing mental health crises, and to holding law enforcement officers accountable when they abuse their authority.”

FBI Acting Assistant Director in Charge Christie M. Curtis said: “As alleged in today’s indictment, Stewart’s actions led him to inflict bodily harm upon his victim.  Officers of the law are not above the law, and the FBI is committed to investigating any instances in which a federal crime has been committed.”

According to the Indictment that was unsealed today in White Plains federal court:[1]

On or about March 26, 2019, STEWART was employed as a Sergeant with the MVPD.  STEWART was assigned to the MVPD’s Emergency Services Unit, which is responsible for, among other things, responding to individuals who are experiencing mental health crises.  On that day, STEWART and six other MVPD officers received a call to assist the Victim in Mount Vernon, New York, as the Victim was experiencing a mental health crisis. 

At the scene, STEWART and the other MVPD officers restrained the Victim, handcuffing his hands behind his back and securing his legs in a restraint bag in preparation to transport the Victim for medical assistance.  When the MVPD officers were unable to pull the restraint bag over the Victim’s chest because the Victim was holding onto one of the bag’s straps, STEWART directed the Victim to release the strap.  STEWART then proceeded to tase the Victim seven times in the span of approximately two minutes.  While STEWART deployed his taser all seven times, the Victim remained laying on the ground, handcuffed with his hands behind his back and his legs secured in the restraint bag.  STEWART’s actions caused bodily injury to the Victim.

*                *                *

STEWART, 44, of Brooklyn, New York, is charged with one count of deprivation of rights under color of law, which carries a maximum sentence of 10 years in prison.

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

Mr. Williams praised the outstanding work of the FBI.  Mr. Williams also thanked the Westchester County District Attorney’s Office for their assistance.   

The prosecution is being handled by the Office’s Civil Rights Unit in the Criminal Division.  Assistant U.S. Attorneys Gillian Grossman and Jared Hoffman are in charge of the prosecution.

The charge contained in the Indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.

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

U.S. v. Stewart Indictment

Damian Williams, the United States Attorney for the Southern District of New York, announced that ISRAEL GARCIA, a/k/a “Shorty Rock,” the former leader of the Get Money Gunnaz set of the Young Gunnaz street gang (the “GMG YGz”), was found guilty at trial of the October 11, 2010, murder of Alfonso “Joey” McClinton in aid of racketeering.  GARCIA shot and killed McClinton on a residential street in the Bronx, New York, as part of a dispute over narcotics trafficking territory.  GARCIA was also convicted of engaging in a conspiracy to distribute narcotics, murder while engaged in a narcotics conspiracy, murder through the use of a firearm, possessing firearms in connection with narcotics trafficking, and attempted witness tampering.  The verdict followed a seven-day trial before U.S. District Judge Jed S. Rakoff.                 

U.S. Attorney Damian Williams said: “On October 11, 2010, Israel Garcia shot and killed 21-year-old Alfonso ‘Joey’ McClinton on a residential street in the Bronx.  Garcia was the leader of the violent street gang known as the GMG YGz, which had been warring with Joey McClinton’s family over drug territory in the Bronx.  Garcia used this horrific murder to maintain his leadership role in the GMG YGz and solidify his hold over the GMG YGz drug-selling territory.  For the next decade, Garcia led the GMG YGz’s reign of terror over the neighborhood, recruiting children and others into a drug trafficking enterprise that poisoned the community with crack cocaine, heroin, and fentanyl, and protecting his drug turf with firearms and violence.  Over time, Garcia attempted to create the façade of a law-abiding citizen, becoming the dean of a local high school in order to mask that he was still running the GMG YGz’s violence and drug trafficking.  Yesterday, a unanimous jury held Garcia accountable for his brutal killing of Joey McClinton and for ruining countless other lives.”

According to court filings and the evidence presented in court during trial: 

For more than a decade, the defendant controlled the sale of narcotics in the vicinity of East 184th Street and Morris Avenue in the Bronx as the leader of the GMG YGz.  As part of their narcotics operation, GMG YGz members carried firearms and engaged in back-and-forth shootings with neighboring, rival crews.  This violence resulted in, among other acts, the 2010 murder of Alfonso “Joey” McClinton.  The State of New York arrested and prosecuted GMG YGz member Joseph (“Juice”) Johnson for the killing.[1]  Ballistics, video evidence, and eyewitness testimony, however, revealed that there was a second shooter involved in McClinton’s murder.  GARCIA was that second shooter.  When GARCIA became concerned that Johnson might cooperate with law enforcement, GARCIA took steps to prevent Johnson from identifying GARCIA as the person with whom he committed the murder.

*                *                *

GARCIA, 32, of the Bronx, New York, was convicted of (i) murder in aid of racketeering, which carries a mandatory minimum sentence of life in prison and a maximum sentence of death or life in prison; (ii) narcotics conspiracy, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; (iii) murder while engaged in a narcotics conspiracy, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of death or life in prison; (iv) murder through the use of a firearm, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of death or life in prison; (v) firearms use, carrying, and possession in connection with a drug trafficking crime, which carries a mandatory minimum sentence of five years in prison, which must be served consecutively to any other sentence imposed, and a maximum sentence of life in prison; and (vi) attempted witness tampering, which carries a maximum sentence of 20 years in prison. 

The minimum and 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 investigative work of the Drug Enforcement Administration; the New York City Police Department; the Department of Homeland Security, Homeland Security Investigations; and the U.S. Marshals Service.  This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“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.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Jacob Gutwillig, Maggie Lynaugh, and Jonathan Bodansky, with the assistance of Paralegal Specialist Owen Foley, are in charge of the prosecution.

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[1] Johnson was convicted at trial of second-degree murder in The People of the State of New York v. Joseph Johnson, Index Number 4311/2010.  On February 3, 2022, the verdict against Johnson was vacated.  Johnson subsequently pled guilty to manslaughter and is serving a 17-year sentence. 

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 former Venezuelan official HUGO ARMANDO CARVAJAL BARRIOS, a/k/a “El Pollo,” was extradited today from Spain to the United States based on an Indictment filed in the Southern District of New York charging CARVAJAL BARRIOS with narco-terrorism conspiracy, conspiracy to import cocaine into the United States, and related firearms offenses.  CARVAJAL BARRIOS will be presented tomorrow before U.S. Magistrate Judge Stewart D. Aaron.  CARVAJAL BARRIOS was arrested in Spain on September 9, 2021.

U.S. Attorney Damian Williams said: “After many years as a fugitive following a more than decade-long criminal career, Hugo Armando Carvajal Barrios arrived in the United States today to face justice for his alleged crimes, which were committed with the intent to ‘flood’ the United States with tons of potentially deadly drugs.  As alleged, Carvajal Barrios exploited his authority as the director of Venezuela’s military intelligence agency to corrupt Venezuelan institutions, abuse the Venezuelan people, and to import poison to the United States.  His alleged leadership of the Cártel de Los Soles inflicted immeasurable pain and suffering on many Venezuelans, Americans, and others who were affected by the cartel’s violence and drug trafficking activities.  I commend the prosecutors of this Office and our law enforcement partners for their tireless work on this important case.”

DEA Administrator Anne Milgram said: “Corrupt government officials like Carvajal, who allegedly use their position to accept bribes and further drug trafficking activities, should be held accountable to the fullest extent of the law.  As alleged, Carvajal abandoned his responsibility to the people of Venezuela and exploited his position for personal gain.  DEA and our partners stand united to bring to justice anyone, in any position, who endangers the safety and health of the American people.”

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

Beginning in at least 1999, CARVAJAL BARRIOS, a Venezuelan citizen and the former director of Venezuela’s military intelligence agency, which was known as the Dirección de Inteligencia Militar (“DIM”), along with other high-ranking Venezuelan officials, acted as leaders and managers of the Cártel de Los Soles, or “Cartel of the Suns.”  The Cartel’s name refers to the sun insignias affixed to the uniforms of high-ranking Venezuelan military officials.  CARVAJAL BARRIOS and other Cartel members abused the Venezuelan people and corrupted the legitimate institutions of Venezuela — including parts of the military, intelligence apparatus, legislature, and judiciary — to facilitate the importation of tons of cocaine into the United States.  The Cártel de Los Soles sought not only to enrich its members and enhance their power but also to “flood” the United States with cocaine and inflict the drug’s harmful and addictive effects on users in the United States.  To accomplish these goals, the leaders of the Cártel de Los Soles partnered with leaders of the Fuerzas Armadas Revolucionarias de Colombia (“FARC”), who controlled cocaine production in vast areas of Colombia and Venezuela.

CARVAJAL BARRIOS held multiple positions of public trust in Venezuela that he exploited to benefit the Cártel de Los Soles, including as director of DIM between approximately 2004 and 2011.  CARVAJAL BARRIOS took advantage of that position to illegally traffic narcotics and support his drug trafficking partners, the FARC.  In or about 2006, for example, CARVAJAL BARRIOS coordinated with other members of the Cártel de Los Soles to dispatch a 5.6-ton cocaine shipment from Venezuela on a private jet bearing a United States registration number.  The jet departed Venezuela and landed in Mexico, where Mexican authorities seized the 5.6 tons of cocaine upon arrival.  In or about 2008, CARVAJAL BARRIOS attended a meeting with a FARC representative at which it was agreed that the Cártel de Los Soles would provide the FARC with cash and weapons in exchange for increased cocaine production.

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CARVAJAL BARRIOS, 63, a Venezuelan national, is charged with: (i) participating in a narco-terrorism conspiracy, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison; (ii) conspiring to import cocaine into the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; (iii) using, carrying, and possessing machineguns and destructive devices in connection with the narco-terrorism and cocaine importation conspiracies, which carries a mandatory minimum sentence of 30 years in prison and a maximum sentence of life in prison; and (iv) conspiring to use, carry, and possess machineguns and destructive devices in connection with the narco-terrorism and cocaine importation conspiracies, which carries a maximum sentence of life in prison.

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

Mr. Williams praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, Miami Field Division, and Madrid Country Office; Homeland Security Investigations; the U.S. Treasury Department, Office of Foreign Assets Control; the Counterterrorism Section of the Department of Justice’s National Security Division; and the U.S. Attorney’s Office for the Southern District of Florida.  The Department of Justice’s Office of International Affairs and U.S. Embassy Madrid worked with law enforcement partners in Spain, including the Spanish National Police, Spain’s Antidrug Special Prosecutor’s Office, Spain’s Ministry of Justice, and Spain’s Ministry of Interior, to secure the arrest and extradition of CARVAJAL BARRIOS.

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jason A. Richman, Kaylan E. Lasky, and Kyle A. Wirshba are in charge of the prosecution, with assistance from Trial Attorney Kevin C. Nunnally of the Counterterrorism Section.

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

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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.

U.S. v. Carvajal Barrios Indictments

Damian Williams, Fiscal Federal para el Distrito Sur de Nueva York, y Anne Milgram, Administradora de la Drug Enforcement Administration («DEA») de Estados Unidos, anunciaron que al ex funcionario de gobierno de Venezuela HUGO ARMANDO CARVAJAL BARRIOS, alias «El Pollo», se le extraditó hoy de España a Estados Unidos bajo Acusación Formal, radicada en el Distrito Sur de Nueva York, que le imputa a CARVAJAL BARRIOS concierto para delinquir con actos de narcoterrorismo e importación de cocaína a Estados Unidos, y cargos afines por armas.  CARVAJAL BARRIOS comparecerá mañana ante el Juez de Instrucción Stewart D. Aaron. A CARVAJAL BARRIOS lo arrestaron en España el 9 de septiembre de 2021.

El Fiscal Federal Damian Williams declaró: «Después de muchos años de prófugo que le siguieron a una carrera de diez años en el mundo criminal, Hugo Armando Carvajal llegó hoy a Estados Unidos a enfrentar justicia por los crímenes que se alega cometió, los cuales se cometieron con intención de ‘inundar’ Estados Unidos con toneladas de drogas potencialmente mortíferas.  Según se alega, Carvajal Barrios explotó su autoridad como director de la agencia de inteligencia militar de Venezuela para corromper instituciones venezolanas, abusar del pueblo venezolano e importar veneno a Estados Unidos. El papel de mando que se le atribuye en el Cártel de Los Soles le infirió angustia y sufrimiento incomensurables a muchos venezolanos, estadounidenses y otros que se vieron afectados por la violencia y actividades de narcotráfico del cártel.  Mis encomios para los fiscales de este despacho y nuestros aliados en las agencias del orden público por su incansable labor en este caso importante».

La Administradora de la DEA Anne Milgram declaró: «A los funcionarios corruptos como Carvajal, de quienes se alega que se valen de su puesto para aceptar sobornos e impulsar actividades de narcotráfico, se les debe aplicar toda la fuerza de la ley. Según se alega, Carvajal abandonó su responsabilidad para con el pueblo venezolano y explotó su puesto para beneficio personal. La DEA y nuestros aliados estamos unidos para traer ante la justicia a cualquier persona, irrespectivamente de su puesto, que pone en peligro la seguridad y salud del pueblo de Estados Unidos».

Según los alegatos plasmados en las Acusaciones Formales, otros radicados y declaraciones vertidas durante trámites judiciales:1

A partir de 1999 sino antes, CARVAJAL BARRIOS, ciudadano venezolano y ex director de la agencia de inteligencia militar de Venezuela, llamada la Dirección de Inteligencia Militar («DIM»), junto a otros funcionarios venezolanos de alto rango, obraron en calidad de cabecillas y gerentes del Cártel de Los Soles, nombre que alude a los emblemas del sol que adornan los uniformes de oficiales militares venezolanos de alto rango.  CARVAJAL BARRIOS y otros miembros del cártel abusaron del pueblo venezolano y corrompieron las instituciones legítimas de Venezuela — entre ellas sectores del ejército, el aparato de inteligencia, la legislatura y el sistema judicial — para facilitar la importación de toneladas de cocaína a Estados Unidos.  El Cártel de Los Soles procuró no solo enriquecer a sus miembros y acrecentarles el poder sino también ‘inundar” Estados Unidos con cocaína para inferirle los efectos dañinos y adictivos a los consumidores en Estados Unidos.  Para lograr estas metas, los cabecillas del Cártel de Los Soles se mancomunaron con altos mandos de las Fuerzas Armadas Revolucionarias de Colombia (FARC), que controlaba la producción de cocaína en extensas regiones de Colombia y Venezuela.

CARVAJAL BARRIOS ostentó varios puestos de alta responsabilidad pública en Venezuela que explotó para beneficio del Cártel de Los Soles, incluido el de director de DIM entre 2004 y 2011, aproximadamente.  CARVAJAL BARRIOS aprovechó ese puesto para traficar ilegalmente con sustancias narcóticas y proteger a sus socios narcotraficantes, las FARC.  En 2006 aproximadamente, por ejemplo, CARVAJAL BARRIOS coordinó con otros miembros del Cártel de Los Soles para enviar una carga de 5,6 toneladas de cocaína desde Venezuela abordo de un jet privado con registro en Estados Unidos.  El jet salió de Venezuela y aterrizó en México, donde las autoridades mexicanas se incautaron de las 5,6 toneladas de cocaína en el momento de su llegada.  En 2008 aproximadamente, CARVAJAL BARRIOS asistió a una reunión con un representante de las FARC en la cual se acordó que el Cártel de Los Soles le daría efectivo y armas a las FARC a cambio de un alza en la producción de cocaína.

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A CARVAJAL BARRIOS, de 63 años y ciudadano venezolano, se le acusa de: (i) participar en concierto para delinquir con narcoterrorismo, que conlleva sentencia mínima compulsoria de 20 años de prisión y máxima de cadena perpetua; (ii) concierto para delinquir importando cocaína a Estados Unidos, que conlleva sentencia mínima compulsoria de 10 años de prisión y máxima de cadena perpetua; (iii) usar, portar y poseer ametralladoras y artilugios destructivos vinculados al narcoterrorismo y a un concierto para delinquir con la importación de cocaína, que conlleva sentencia mínima compulsoria de 30 años de prisión y máxima de cadena perpetua; y (iv) concierto para delinquir usando, portando y poseyendo ametralladoras y artilugios destructivos vinculados al narcoterrorismo y a un concierto para delinquir con la importación de cocaína, que conlleva sentencia máxima de cadena perpetua.

Las sentencias compulsorias mínimas y máximas en el caso presente están establecidas por el Congreso, y se incluyen aquí para fines informativos únicamente, puesto que la sentencia de todo acusado la determina el juez.

El Sr. Williams elogió los esfuerzos notables de la Unidad de Investigaciones Bilaterales de la División de Operaciones Especiales de la DEA, División de Campo de Miami, y el Despacho de Ultramar Madrid; las investigaciones del Departamento de Seguridad Interior; el Despacho de Control de Activos Extranjeros del Departamento del Tesoro de E.U.A.; la Sección Contraterrorismo, División de Seguridad Nacional del Departamento de Justicia; y la Fiscalía Federal para el Distrito Sur de la Florida.  El Despacho de Asuntos Internacionales del Departamento de Justicia y la Embajada de EUA en Madrid trabajaron con aliados de las agencias del orden público en España, incluidas la Policía Nacional de España, el Despacho de la Fiscalía Especial Antidroga de España, el Ministerio de Justicia de España, y el Ministerio del Interior de España, para garantizar el arresto y la extradición de CARVAJAL BARRIOS.

Esta causa judicial está asentada en la Unidad de Seguridad Nacional y Narcotráfico Internacional del ya citado Despacho.  Los Fiscales Federales Auxiliares Jason A. Richman, Kaylan E. Lasky y Kyle A. Wirshba llevarán el caso con la asistencia del Abogado Litigador Kevin C. Nunnally de la Sección Contraterrorismo.

Las acusaciones contenidas en las Acusaciones Formales son sencillamente acusaciones, y se presume del acusado que es inocente a no ser, y hasta que, se demuestre que es culpable.

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1 Conforme el significado de la frase preliminar, el texto entero de las Acusaciones Formales y descripciones de las mismas aquí contenidas constituyen solamente alegatos, y todo acto descrito debo tratarse como alegato.

U.S. v. Carvajal Barrios Acusaciones Formales

Damian Williams, the United States Attorney for the Southern District of New York, announced today that FRANCIS HUGHES, a former pastor at a religious institution in Queens, New York, was sentenced to five years in prison by U.S. District Judge Philip M. Halpern for his receipt of images of child pornography from a 15-year-old minor in Westchester, New York, with whom HUGHES was engaging in sexually explicit text communications.  HUGHES pled guilty on August 16, 2022, before Judge Halpern.

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

On February 16, 2020, HUGHES communicated by text messages with a 15-year-old boy (“Minor-1”).  During the course of the text communications, among other things, Minor-1 sent HUGHES three images of Minor-1’s penis.  Upon receiving one of the images, HUGHES responded, among other things, “Yummmmm I will suck you so much” and “Make you cum.”  During the communications, HUGHES told Minor-1 that he was a part-time college professor and a counselor.

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In addition to the prison term, HUGHES, 68, of Glendale, New York, was sentenced to 10 years of supervised release.     

Mr. Williams praised the efforts of the Federal Bureau of Investigation and the Greenburgh Police Department in connection with this investigation.                     

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