Southern District of New York

United States Attorney for the Southern District of New York, Jay Clayton, and the Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced the return of a 10-count Indictment charging ANDREW WILKINSON, a/k/a “Steppa,” with convincing and enticing three minor female victims to engage in unlawful sexual activity with him, filming a sexually explicit video of a 15-year-old girl (“Minor Victim-1”), and drugging and sexually assaulting 17-year-old and 16-year-old girls (“Minor Victim-2” and “Minor Victim-3,” respectively).  The case is assigned to U.S. District Judge Colleen McMahon.  WILKINSON was arraigned on the Indictment before U.S. Magistrate Judge Ona T. Wang earlier today.

“As alleged, Andrew Wilkinson, a registered sex offender and serial predator, used social media to target vulnerable girls so he could drug them, sexually assault them, and film his abuse,” said U.S. Attorney Jay Clayton.  “Thankfully, Wilkinson’s illicit conduct was brought to light, and he will now have to answer to these serious charges.  Our Office, along with our federal partners and the NYPD, are making a whole-of-government effort to rid our streets of sexual predators.  That is what New Yorkers want.  That is what we are delivering.  The sexual assault of minors and the production and distribution of child pornography are too prevalent.  I urge all New Yorkers to assist us in ridding our streets of predators.  If you have been a victim of the alleged sexual abuse perpetrated by Wilkinson—or if you know anything about his alleged crimes or think you’ve experienced something similar—we encourage you to contact usanys.wilkinson-case@usdoj.gov or 212-637-0076.”

“This defendant, who is already a registered sex offender, allegedly used social media to lure underage girls to an unlicensed business for free tattoos and then drugged, raped, and recorded sexually explicit videos of them,” said NYPD Commissioner Jessica S. Tisch.  “This horrific behavior—especially the abuse of minors—has no place in our city, and thanks to the relentless work of our NYPD investigators and law enforcement partners, this predator is being held accountable.  We will continue to work with the U.S. Attorney’s Office for the Southern District of New York to protect survivors of sexual assault and ensure justice is served in this case.” 

As alleged in the Indictment and statements made in Court:(1)

WILKINSON drugged, sexually assaulted, and recorded sexual encounters with minor female victims. WILKINSON, who was 34 years old and a registered sex offender, operated and advertised an unlicensed tattoo service and used his tattoo service as a means by which to gain access to minor victims to sexually abuse.  WILKINSON met and communicated with his victims primarily on social media platforms and utilized those platforms to convince his victims to travel to an apartment in the Bronx where he drugged, sexually assaulted, and filmed sexually explicit videos of them.  WILKINSON drugged a 16-year-old girl and sexually abused her while she was physically incapacitated.

Between at least in or about December 2024 and May 2025, WILKINSON repeatedly sent promotional messages offering free tattoos to Minor Victim-1, who was 14, and tried to convince Minor Victim-1 to meet him in person.  On or about January 27, 2025, after Minor Victim-1 turned 15, WILKINSON convinced Minor Victim-1 to visit him, where he used a cellphone to record a sexually explicit video depicting Minor Victim-1. 

In or around May 2025, WILKINSON met a second victim, who was 17 years old, and convinced Minor Victim-2 to travel from Long Island to the Bronx to obtain a tattoo.  While in the Bronx, WILKINSON drugged and sexually assaulted Minor Victim-2.

On or about July 23, 2025, WILKINSON persuaded a third victim, who was 16 years old, to travel to the Bronx where WILKINSON told Minor Victim-3 that he would provide a free tattoo if she played and won three card games.  WILKINSON provided psilocin psychedelic mushrooms, methamphetamine, and an unidentified beverage to Minor Victim-3, causing her to lose consciousness.  While Minor Victim-3 was impaired and unconscious, WILKINSON raped and sexually assaulted Minor Victim-3.

If you have been victimized by WILKINSON, who utilized the Instagram account “@tattzbysteppa,” among others,  or have any additional information about his alleged illegal behavior, or if you’ve seen something similar, please contact the U.S. Attorney’s Office for the Southern District of New York at 212-637-0076 or reach out to us at usanys.wilkinson-case@usdoj.gov and reference this case.

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WILKINSON, 36, of the Bronx, New York, is charged with one count of sexual exploitation of a minor, which carries a mandatory minimum sentence of 15 years in prison; three counts of coercion and enticement of a minor to engage in unlawful sexual activity, which carries a minimum sentence of 10 years in prison; three counts of committing a felony offense involving a minor as a registered sex offender, which carries a mandatory minimum sentence of 10 years in prison which must run consecutively to the other sex offenses; one count of distribution of a controlled substance, which carries a maximum sentence of 20 years in prison; one count of distribution of a controlled substance with intent to commit rape, which carries a maximum sentence of 20 years in prison; and one count of distribution of a controlled substance to a minor, which carries a maximum sentence of 40 years in prison. 

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

Mr. Clayton praised the outstanding investigative work of the NYPD, the Special Agents, Task Force Officers, the Digital Forensics Unit, and the Complex Analytics and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area from the U.S. Attorney’s Office for the Southern District of New York. Mr. Clayton also thanked the Bronx District Attorney’s Office, the Connecticut State’s Attorney Office for the Judicial District of Ansonia/Milford, the Derby Police Department, the U.S. Marshals Service for the Southern District of New York, and the U.S. Customs and Border Protection for their assistance.

The case is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Dana R. McCann 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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    As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitutes only allegations and every fact described should be treated as an allegation.

United States Attorney for the Southern District of New York, Jay Clayton, announced that CHASE HARRIS pled guilty to participating in a conspiracy to commit money laundering based on his role in laundering proceeds from an international technology-support fraud scheme that targeted elderly victims and resulted in the theft of more than $1.2 million from approximately 25 known victims across the United States.  In connection with today’s resolution, the Government is immediately recovering $282,376 in restitution that will be used to compensate victims.  HARRIS pled guilty today before U.S. District Judge Philip M. Halpern and is scheduled to be sentenced on October 29, 2026. 

“Chase Harris profited from a scheme that preyed on seniors by stoking and exploiting their fear,” said U.S. Attorney Jay Clayton.  “After his co-conspirators extracted money from their victims, Harris laundered that money and sent it to India.  Today’s plea, together with Harris’s restitution of over $1.2 million for victims, reflects this Office’s commitment to protecting the most vulnerable among us.”

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

From at least in or about November 2023 through at least in or about July 2024, HARRIS participated in an IT fraud scheme targeting elderly victims throughout the United States.  As part of the scheme, HARRIS’s co-conspirators identified elderly victims and caused pop-up ads to appear on their computers, falsely informing them that their computers had been infected with a virus.  At times, HARRIS’s co-conspirators posed as federal agents and threatened their victims with baseless criminal charges.  Amid their coercive demands, the co-conspirators told victims that they had to pay for IT services to resolve these fraudulent issues, directing victims to send handwritten checks to various businesses, including several owned or controlled by HARRIS—including CSH Management LLC, C4H Management LLC, and S2J Consulting LLC.  However, no services were ever provided. 

After receiving checks from the victims, HARRIS transferred most of the proceeds from the scheme, totaling more than $1.2 million, to an India-based company operated by one of his co-conspirators.  In return, HARRIS kept a portion of the stolen funds as a fee.  While discussing the profitability of the scheme with HARRIS, one of his co-conspirators told him, “We can make millions [i]n [a] [j]iffy.”

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HARRIS, 36, of Keller, Texas, pled guilty to one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.  HARRIS also agreed to forfeit all proceeds from the offense and make restitution to victims in the amount of $1,240,847.99.  

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

“Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation's Hudson Valley White Collar Crime Task Force and the Orange County District Attorney's Office in this investigation. 

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that ANDREW NGUYEN, a former officer in the New York City Police Department (“NYPD”), was sentenced to 90 months in prison for conspiring to solicit and receive bribes, conspiring to distribute narcotics, and possessing a firearm in connection with the conspiracy to distribute narcotics, in connection with his role as an NYPD officer.  NGUYEN previously pled guilty on January 29, 2026, before U.S. District Judge Analisa Torres, who imposed today’s sentence.

“Andrew Nguyen repeatedly abused his position of public trust by soliciting and accepting tens of thousands of dollars in bribe payments,” said U.S. Attorney Jay Clayton.  “In exchange, he helped the leader of a drug trafficking organization, including by transporting kilograms of dangerous drugs, providing armed protection, and using an NYPD police car and equipment to conduct and document a fake car stop and seizure.  In short, Nguyen endangered the very community that he swore an oath to protect.  The greatest police department in the world does not accept corruption in its ranks, and this Office was proud to partner with them to root it out.  Today’s sentencing sends a message from the NYPD and the DOJ: corruption has no place in the world’s greatest police force.”  

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

For approximately three years, between at least in or about 2020 and at least in or about November 2023, NGUYEN used his position as a police officer in the NYPD to solicit and accept tens of thousands of dollars in bribe payments in exchange for assisting another individual (“CC-1”) with the operation of CC-1’s drug trafficking enterprise.  For example, NGUYEN transported drugs, including approximately eight kilograms of cocaine, for CC-1 while NGUYEN was armed with a firearm, including NGUYEN’s NYPD-authorized off-duty firearm, which NGUYEN planned to use to protect CC-1 if violence occurred. While transporting those drugs, NGUYEN also carried his NYPD credentials and an NYPD parking placard, which NGUYEN planned to use to evade arrest in the event he was pulled over by other members of the NYPD. Overall, NGUYEN, who was at all relevant times an officer in the NYPD, accepted more than $30,000 in bribe payments from CC-1 (and solicited tens of thousands of dollars in additional bribes) in connection with NGUYEN’s participation in CC-1’s drug trafficking enterprise.

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In addition to his prison term, NGUYEN, 41, of Harriman, New York, was sentenced to three years of supervised release.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation and the NYPD’s Internal Affairs Bureau. 

The case is being handled by the Office’s Public Corruption Unit and Narcotics Unit.  Assistant U.S. Attorneys Matthew J. King and Jonathan E. Rebold are in charge of the prosecution.

The Justice Department today announced the unsealing of a five-count complaint charging Reda Mazen Rida Sabassi, 38, of San Diego, California, with terrorism, sanctions-evasion, wire fraud, money laundering, and false statement charges in connection with his efforts to divert funds raised through purported charitable campaigns to Hamas and for personal use. Sabassi was arrested in San Diego yesterday and presented before U.S. Magistrate Judge Steve B. Chu in the Southern District of California.

“As alleged in the complaint, the defendant exploited the barbaric acts of terror perpetrated on October 7, 2023, to attract donors to his fraudulent ‘humanitarian’ causes,” said Assistant Attorney General for National Security John A. Eisenberg. “He allegedly raised hundreds of thousands of dollars through this scheme, which he then funneled to Hamas to help finance that group’s terror and violence and to line his own pockets. As demonstrated by today’s charges, NSD will investigate and prosecute those who fund terrorism.”

“From within the United States, Reda Sabassi is alleged to have solicited and diverted funds to the known foreign terrorist organization, Hamas, which committed the brutal October 7, 2023, massacre” said U.S. Attorney Jay Clayton for the Southern District of New York. “Hamas promotes attacks against the U.S. and has murdered dozens of Americans through acts of terror. Our arrest of Reda Sabassi demonstrates our whole-of-government commitment to prosecute those who provide financial support to a malign terrorist regime that hates America.”

“The defendant allegedly claimed to be raising money for charity but was actually funding the terrorist organization Hamas and also lining his own pockets,” said Assistant Director Donald Holstead of the FBI’s Counterterrorism Division. “The FBI will use all our authorities to put a stop to those who seek to support the violent actions carried out by organizations like Hamas. Today’s announcement should serve as a stark reminder that the FBI and our partners on the Joint Terrorism Task Forces will remain vigilant in our effort to prevent terrorism as well as hold terrorists, and those who provide support to terrorist organizations, accountable for their actions.”

“As alleged, Reda Sabassi raised hundreds of thousands of dollars to fund the death and tragedy Hamas seeks to carry out,” said Assistant Director in Charge James C. Barnacle Jr. of the FBI New York Field Office. “Alongside our federal partners, the FBI New York Joint Terrorism Task Force continues to aggressively eradicate fundraisers financing terrorist organizations, and hold accountable those behind the campaign.”

According to the allegations contained in the complaint, Harakat al-Muqawamah al-Islamiyya, commonly known as Hamas, is a terrorist organization that was founded in 1987, and has been designated as a foreign terrorist organization (FTO) by the United States since 1997. From its inception, Hamas’s stated purpose has been to create an Islamic Palestinian state throughout Israel by eliminating the State of Israel through violent holy war, or jihad. Hamas also promotes attacks against the United States and its citizens, and over more than two decades, Hamas has murdered and injured dozens of Americans as part of its campaign of violence and terror. On Oct. 7, Hamas committed its most violent, large-scale terrorist attack to date (the “October 7 Hamas Massacres”) when Hamas sent more than 2,000 armed fighters into farms and towns in southern Israel, where they carried out the massacres of over a thousand people and the kidnappings of more than 200 others. 

Reda Mazen Rida Sabassi has publicly supported Hamas online and has raised money for Hamas using online donation platforms. For example, Sabassi created an hour-long propaganda video of the October 7 Hamas Massacres and then posted that video to at least two of his social media accounts, including a few months after the October 7 Hamas Massacres and again on the two-year anniversary of the terrorist attacks. 

Since at least in or about 2022, Sabassi has used his social media accounts, crowdfunding websites, and his putative charity called Ikram — The Arab Charity Foundation Inc. (Ikram) to solicit donations from around the world, including from individuals in the United States and New York. In his online fundraising campaigns, Sabassi claimed to be raising funds to provide humanitarian aid to people in Gaza; however, Sabassi was actually raising funds for Hamas. Sabassi and a co-conspirator joked privately that they should name the fundraiser after Hamas’s al-Qassam Brigades, before agreeing to use Sabassi’s Ikram. Sabassi worked with the Hamas fundraising organization Gaza Now and other co-conspirators to operate these online fundraisers and to send funds to Hamas.*** Between in or about December 2023 and in or about February 2024, Sabassi raised a total of approximately $600,000 through online fundraising campaigns, from which Sabassi sent approximately $116,000 to a Hamas member and attempted to convert approximately $382,000 of the cash he raised into cryptocurrency to send to Hamas through Gaza Now.

Sabassi is charged with (i) conspiring to provide material support to Hamas, a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (ii) conspiring to violate the International Emergency Economic Powers Act, which carries a maximum penalty of 20 years in prison; (iii) conspiring to commit wire fraud, which carries a maximum penalty of 20 years in prison; (iv) conspiring to commit money laundering, which carries a maximum penalty of 20 years in prison; and (v) false statements, which carries a maximum penalty 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.

U.S. Attorney Clayton praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force and U.S. Customs and Border Protection. Mr. Clayton also thanked the FBI’s San Diego Joint Terrorism Task Force; the Counterterrorism Section and the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division for their assistance with this investigation.

This case is being handled by the Office’s Illicit Finance & Money Laundering Unit and the National Security and International Narcotics Unit. Assistant U.S. Attorneys Jennifer N. Ong, Ben Arad, Sarah L. Kushner, and Juliana N. Murray for the Southern District of New York are in charge of the prosecution, with assistance from Trial Attorney Andrew Briggs of the Counterterrorism Section and Acting Deputy Chief Sean Heiden of the Counterintelligence and Export Control Section.

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

1. ***

    On March 27, 2024, the United States Department of the Treasury, Office of Foreign Assets Control (“OFAC”) designated Gaza Now and two of SABASSI’s co-conspirators as Specially Designated Global Terrorists (“SDGTs”) pursuant to Executive Order 13224 for being key financial facilitators involved in fundraising for Hamas.

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Attorney General for National Security, John A. Eisenberg, Assistant Director in Charge of the Counterterrorism Division of the Federal Bureau of Investigation (“FBI”), Donald Holstead, and Assistant Director in Charge of the New York Field Office of the FBI, James C. Barnacle, Jr., announced the unsealing of a five-count Complaint charging REDA MAZEN RIDA SABASSI with terrorism, sanctions-evasion, wire fraud, money laundering, and false statement charges in connection with his efforts to divert funds raised through purported charitable campaigns to Hamas and for personal use.  SABASSI was arrested in San Diego yesterday and presented before U.S. Magistrate Judge Steve B. Chu in the Southern District of California.

“From within the United States, Reda Sabassi is alleged to have solicited and diverted funds to the known foreign terrorist organization, Hamas, which committed the brutal October 7, 2023, massacre,” said U.S. Attorney Jay Clayton.  “Hamas promotes attacks against the U.S. and has murdered dozens of Americans through acts of terror.  Our arrest of Reda Sabassi demonstrates our whole-of-government commitment to prosecute those who provide financial support to a malign terrorist regime that hates America.”

“As alleged in the complaint, the defendant exploited the barbaric acts of terror perpetrated on October 7, 2023, to attract donors to his fraudulent ‘humanitarian’ causes,” said Assistant Attorney General for National Security John A. Eisenberg. “He allegedly raised hundreds of thousands of dollars through this scheme, which he then funneled to Hamas to help finance that group’s terror and violence and to line his own pockets.  As demonstrated by today’s charges, NSD will investigate and prosecute those who fund terrorism.”

“The defendant allegedly claimed to be raising money for charity but was actually funding the terrorist organization Hamas and also lining his own pockets,” said Assistant Director Donald Holstead of the FBI's Counterterrorism Division.  “The FBI will use all our authorities to put a stop to those who seek to support the violent actions carried out by organizations like Hamas.  Today’s announcement should serve as a stark reminder that the FBI and our partners on the Joint Terrorism Task Forces will remain vigilant in our effort to prevent terrorism as well as hold terrorists, and those who provide support to terrorist organizations, accountable for their actions.”

“As alleged, Reda Sabassi raised hundreds of thousands of dollars to fund the death and tragedy Hamas seeks to carry out,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Alongside our federal partners, the FBI New York Joint Terrorism Task Force continues to aggressively eradicate fundraisers financing terrorist organizations, and hold accountable those behind the campaign.”

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

Harakat al-Muqawamah al-Islamiyya, commonly known as Hamas, is a terrorist organization that was founded in 1987, and has been designated as a foreign terrorist organization (“FTO”) by the United States since 1997.  From its inception, Hamas’s stated purpose has been to create an Islamic Palestinian state throughout Israel by eliminating the State of Israel through violent holy war, or jihad.  Hamas also promotes attacks against the United States and its citizens, and over more than two decades, Hamas has murdered and injured dozens of Americans as part of its campaign of violence and terror.  On October 7, 2023, Hamas committed its most violent, large-scale terrorist attack to date (the “October 7 Hamas Massacres”) when Hamas sent more than 2,000 armed fighters into farms and towns in southern Israel, where they carried out the massacres of over a thousand people and the kidnappings of more than 200 others. 

REDA MAZEN RIDA SABASSI has publicly supported Hamas online and has raised money for Hamas using online donation platforms.  For example, SABASSI created an hour-long propaganda video of the October 7 Hamas Massacres and then posted that video to at least two of his social media accounts, including a few months after the October 7 Hamas Massacres and again on the two-year anniversary of the terrorist attacks. 

Since at least in or about 2022, SABASSI has used his social media accounts, crowdfunding websites, and his putative charity called Ikram – The Arab Charity Foundation Inc. (“Ikram”) to solicit donations from around the world, including from individuals in the United States and New York.  In his online fundraising campaigns, SABASSI claimed to be raising funds to provide humanitarian aid to people in Gaza; however, SABASSI was actually raising funds for Hamas. SABASSI and a co-conspirator joked privately that they should name the fundraiser after Hamas’s al-Qassam Brigades, before agreeing to use SABASSI’s Ikram.  SABASSI worked with the Hamas fundraising organization Gaza Now and other co-conspirators to operate these online fundraisers and to send funds to Hamas.(2)  Between in or about December 2023 and in or about February 2024, SABASSI raised a total of approximately $600,000 through online fundraising campaigns, from which SABASSI sent approximately $116,000 to a Hamas member and attempted to convert approximately $382,000 of the cash he raised into cryptocurrency to send to Hamas through Gaza Now.

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SABASSI, 38, of San Diego, California, is charged with (i) conspiring to provide material support to Hamas, a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (ii) conspiring to violate the International Emergency Economic Powers Act, which carries a maximum penalty of 20 years in prison; (iii) conspiring to commit wire fraud, which carries a maximum penalty of 20 years in prison; (iv) conspiring to commit money laundering, which carries a maximum penalty of 20 years in prison; and (v) false statements, which carries a maximum penalty of 5 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. Clayton praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force and U.S. Customs and Border Protection.  Mr. Clayton also thanked the FBI’s San Diego Joint Terrorism Task Force; the Counterterrorism Section and the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division for their assistance with this investigation.

This case is being handled by the Office’s Illicit Finance & Money Laundering Unit and the National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jennifer N. Ong, Ben Arad, Sarah L. Kushner, and Juliana N. Murray are in charge of the prosecution, with assistance from Trial Attorney Andrew Briggs of the Counterterrorism Section and Acting Deputy Chief Sean Heiden of the Counterintelligence and Export Control Section.

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

1. ^

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

2. ^

   On March 27, 2024, the United States Department of the Treasury, Office of Foreign Assets Control (“OFAC”) designated Gaza Now and two of SABASSI’s co-conspirators as Specially Designated Global Terrorists (“SDGTs”) pursuant to Executive Order 13224 for being key financial facilitators involved in fundraising for Hamas.

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced the unsealing of a Complaint charging CARLOS NOEL with receiving and distributing child pornography, as well as possessing child pornography.  NOEL was arrested yesterday and presented today before U.S. Magistrate Judge Andrew E. Krause in White Plains federal court. 

“As alleged, Carlos Noel exchanged approximately 100 videos of child pornography online, many involving infants and prepubescent minors, and discussed sexually abusing another individual’s one-year-old niece,” said U.S. Attorney Jay Clayton.  “Every New Yorker and every American loathes the exploitation of children.  Together with our partners, we will deploy every resource to relentlessly get sexual predators off our streets and bring to justice those who prey on our children.  If you have information to report about this or any other matter of child sexual abuse, please contact the FBI at 1-800-CALL-FBI (1-800-225-5324) or https://tips.fbi.gov.”

“Carlos Noel allegedly exchanged sexually explicit images and videos, often featuring infants, with other online users as if they were nothing more than trading cards,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “The FBI Safe Street's Task Force is dedicated to eliminating sexual predators who abuse those who can't protect themselves.”

As alleged in the Complaint:

NOEL used the online messaging applications Twitter and Telegram to trade videos of child pornography, many involving infants and prepubescent minors. NOEL went by the Twitter name “XavierThotAli” and the Telegram name “xavierthotal1 (X Games).”  Among other individuals, NOEL traded child pornography with the Telegram user “L33YA1,” who filmed herself sexually abusing her one-year-old niece.  During their exchange of messages, NOEL and L33YA1 discussed their mutual interest in sexually explicit images of minors and further sexually abusing L33YA1’s one-year-old niece.   

If you are a victim of NOEL or have any information concerning NOEL, please call 1-800-CALL-FBI (1-800-225-5324) or you can report a tip online at tips.fbi.gov.  A photo of the defendant is below. 

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NOEL, 35, of New City, New York, is charged with receipt and distribution of child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison, and possession of child pornography, which carries a maximum sentence of 20 years in prison. 

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

Mr. Clayton praised the outstanding work of the FBI Westchester Safe Streets Task Force and thanked FBI Philadelphia for their assistance.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the New York Enforcement Division of the Drug Enforcement Administration (“DEA”), Farhana Islam, announced today the unsealing of an Indictment charging MARK DYGDON and RODRIGO CASTRO in connection with the defendants’ distribution of gamma-butyrolactone (“GBL”) throughout the New York City area.  The case is assigned to U.S. District Judge Margaret M. Garnett. 

“As alleged, Mark Dygdon and Rodrigo Castro conspired to import and distribute millions of doses of gamma-butyrolactone in Midtown Manhattan and around the New York region,” said U.S. Attorney Jay Clayton.  “Even one dose of GBL, also commonly known as a so-called date rape drug, can be lethal; Dygdon and Castro are accused of flooding Midtown with tons of this liquid poison.  As the charges in this case show, together with our law enforcement partners, we will relentlessly pursue those who commit drug crimes and will prosecute them to the fullest extent of the law.”

“The seizure of multiple tons of gamma-butyrolactone, is not merely a chemical seizure, it is the prevention of countless tragedies that may have otherwise occurred,” said DEA New York Enforcement Division Special Agent in Charge Farhana Islam.  “GBL is a dangerous substance on its own, and can also be converted into GHB.  Both are powerful depressants that are often used in drug facilitated sexual assaults.  By removing this massive quantity from the supply chain, the DEA and our partners disrupted a significant threat to public safety, and prevented harm to countless people who might otherwise have been victimized.  This indictment reflects the commitment we have with our partners in targeting those trafficking drugs and precursor chemicals into our communities.”

As alleged in the Indictment, other court filings, and statements made during court proceedings:(1)

From at least in or about August 2023 through at least in or about June 2026, DYGDON and CASTRO conspired to distribute GBL throughout the New York City area.  To date, the charged conspiracy has imported more than approximately seven U.S. tons of GBL between on or about August 2023 and today, or the equivalent of millions of individual doses of GBL.

As part of the investigation, the DEA New York Enforcement Division seized 2.4 tons of GBL, a chemical often times attributed to sexual assaults. 

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DYGDON, 48, and CASTRO, 34, both of New York, New York, are each charged with one count of conspiracy to distribute GBL, which carries a maximum sentence of 20 years in prison. 

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

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

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorney Rebecca R. Delfiner 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. 

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.

United States Attorney for the Southern District of New York, Jay Clayton announced that MATTHEW BLAKE MORROW-WU, a/k/a “Blake Wu,” a/k/a “Blake Ho,” a/k/a “Blake Morrow,” a/k/a “Matthew Wu,” a/k/a “Matthew Ho,” a/k/a “Matthew Blake Morrow,” was sentenced today to 160 months in prison by U.S. District Judge Alvin K. Hellerstein for perpetrating a scheme to defraud a Manhattan architecture firm during the COVID-19 pandemic, after which he obstructed justice and pled from prosecution.  On April 28, 2025, MORROW-WU pled guilty to conspiracy to commit wire fraud and mail fraud, substantive wire fraud and mail fraud, impersonation of a federal officer, falsification of records, and obstruction of justice.  

“Morrow-Wu, a recidivist, preyed on a small business during the height of the COVID-19 pandemic, receiving hundreds of thousands of dollars in fraudulent proceeds,” said U.S. Attorney Jay Clayton.  “When he was caught, Morrow-Wu then tried to cover up his crimes and fled from prosecution.  Today’s sentence should make clear to fraudsters that there are significant consequences for their crimes.” 

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

Between approximately 2020 and January 2023, MORROW-WU defrauded a Manhattan architecture firm (“Firm-1”) and its owners of nearly $400,000 through fraudulent check deposits and credit card transactions.  MORROW-WU carried out his scheme by using inside information obtained from Firm-1, which he used to steal money from Firm-1 and its clients, including by depositing Firm-1’s funds directly into his own bank accounts and accruing tens of thousands of dollars in fraudulent charges on Firm-1’s credit cards. 

This scheme was the latest in MORROW-WU’s lengthy history of fraud, including prior convictions for identity theft, check fraud, credit card fraud, passport fraud, and obstruction of justice. In addition to these convictions, MORROW-WU—despite not being a licensed attorney—misappropriated the state bar license of an attorney with a similar name, which he used to fraudulently obtain legal employment and to fraudulently incorporate various law offices. 

MORROW-WU also undertook significant efforts to conceal his fraudulent scheme, including by forging correspondence by Firm-1 and using his fake law practices as cover.  Moreover, in October 2022, MORROW-WU sent the victims a forged target letter purporting to be from the U.S. Attorney for the Southern District of New York, which threatened the victims with criminal prosecution for committing fraud. 

MORROW-WU was arrested and charged with fraud offenses in January 2023.  In February 2025, while on bail pending trial, MORROW-WU submitted to the Court a false letter from a purported doctor claiming, inaccurately, that MORROW-WU had metastatic cancer, in an effort to delay his then-upcoming trial. Thereafter, MORROW-WU was charged with obstruction offenses and, after failing to appear for a scheduled court conference, fled to California, where he was apprehended by law enforcement. 

*                *                *

In addition to the prison term, MORROW-WU, 42, of Jersey City, New Jersey, was sentenced to 3 years of supervised release, ordered to forfeit $406,788.08, and ordered to pay $197,965.38 in restitution.        

Mr. Clayton praised the outstanding investigative work of the Special Agents of the United States Attorney’s Office for the Southern District of New York and the U.S. Postal Inspectors of the U.S. Postal Inspection Service, and thanked the U.S. Marshals Service and the Solano County Sheriff’s Office for their assistance with the apprehension of MORROW-WU.

The prosecution of this case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Jerry J. Fang, Michael R. Herman, Henry L. Ross, and Angela Zhu are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of an Indictment charging LENYN TORIBIO and WELFY ESPINAL with interstate stalking resulting in death and conspiracy to commit interstate stalking resulting in death in connection with the April 13, 2025, murder of Jeremy Ortega in a residential neighborhood in the Bronx. ESPINAL was arrested this morning in New Jersey and was presented before U.S. Magistrate Judge Jennifer E. Willis, who ordered him detained.  TORIBIO remains at large.  The case has been assigned to U.S. District Judge Jennifer L. Rochon.

“As alleged, Lenyn Toribio and Welfy Espinal intentionally surveilled and tracked Jeremy Ortega before he was fatally shot in front of his own home—over little more than a bag of diamond jewelry,” said U.S. Attorney Jay Clayton.  “New Yorkers deserve to live in neighborhoods free of gun violence.  This Office will stop at nothing to hold accountable those who inflict violence on others.” 

“As alleged, the stalking and killing of an innocent victim by Lenyn Toribio and Welfy Espinal is horrifying,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Along with our local partners, the FBI will relentlessly pursue depraved individuals who threaten the safety of our citizens.”

“These defendants orchestrated a scheme to place a GPS tracking device on their victim’s car and followed him for days, ultimately leading to his death,” said NYPD Commissioner Jessica S. Tisch. “Despite attempts to evade law enforcement by using a stolen license plate from a parked car, NYPD investigators worked tirelessly to identify, arrest, and bring those responsible to justice. I am thankful to our partners at the FBI and the U.S. Attorney’s Office for the Southern District of New York for their hard work in holding these criminals accountable.”   

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

From at least March 2025 through April 13, 2025, TORIBIO and ESPINAL—and other co-conspirators—agreed to, and in fact did, engage in a scheme to surveil Ortega using a GPS tracking device with the intent to rob him, ultimately killing him.

On or about March 28, 2025, TORIBIO activated a GPS tracking device subscribed in his own name.  A few days later, ESPINAL adhered that GPS tracker (the “Tracker”) to Ortega’s vehicle as it was parked outside of his residence in the Bronx. The next day, TORIBIO and ESPINAL went to a particular nightclub in upper Manhattan, where Ortega was also located, wearing various items of diamond jewelry.

Less than 10 days later, beginning on or about April 12, 2025, TORIBIO and ESPINAL surveilled Ortega as he traveled to a restaurant in midtown Manhattan, and then they traveled to his neighborhood to conduct surveillance of the area before the murder.  TORIBIO and ESPINAL departed the area before returning to Ortega’s neighborhood, where they positioned themselves in anticipation of his arrival. Just over an hour later, Ortega parked in front of his residence and exited his car.  Moments after he arrived home, he was chased, shot repeatedly, and robbed of a bag containing his diamond jewelry. In the hours after the murder, the Tracker was recovered from the underside of Ortega’s car.

At different points on the night of the murder, TORIBIO and ESPINAL used multiple vehicles, as well as a license plate stolen from an uninvolved vehicle parked near the George Washington Bridge, to attempt to avoid detection and apprehension by law enforcement.

*                *                *

TORIBIO, 27, of New York, New York, and ESPINAL, 25, of the Bronx, New York, are each charged with one count of interstate stalking resulting in death and aiding and abetting the same, which carries a maximum sentence of life in prison, as well as one count of conspiracy to commit interstate stalking, 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 a judge.

Mr. Clayton praised the outstanding investigative work of the NYPD, including law enforcement officers from the 45th Precinct and Bronx Homicide Squad, and the Special Agents and Task Force Officers from the FBI’s Violent Threat Initiative.

The case is being handled by the Office’s Violent Organizations and Crime Unit.  Assistant U.S. Attorney Kathryn Wheelock is in charge of the prosecution.

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

1. ^

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

Deputy United States Attorney for the Southern District of New York, Sean S. Buckley, announced today that S. KENNETH LEECH II, the former Chief Investment Officer of Western Asset Management Company (“WAMCO”), pled guilty to obstructing justice by giving false and misleading testimony to the United States Securities and Exchange Commission (“SEC”) in connection with an investigation into LEECH’s fraudulent scheme to favor certain clients at the expense of others.  LEECH pled guilty today before U.S. District Judge Gregory H. Woods. 

“Leech willfully and intentionally gave false and misleading testimony to the SEC in an effort to obstruct an investigation into his fraudulent scheme to favor certain clients at the expense of others,” said Deputy U.S. Attorney Sean S. Buckley.  “Investment managers, like Leech, are entrusted by the SEC and the public at large to comply with their duty to be honest to regulators and fair to their clients.  Today’s plea reflects the commitment of this Office and its law enforcement partners to protecting everyday investors—in New York City and abroad—from investment advisers who violate their legal commitments and seek to deceive clients for their gain or the gain of others.” 

As alleged in the Indictment, Superseding Information, and other public filings in this case: 

Between 2021 and October 2023, LEECH committed fraud and abused the trust placed in him by clients of the investment-management firm WAMCO.  LEECH engaged in a criminal scheme commonly known as cherry-picking to compensate for losses in his marquee investment strategy by assigning trades that performed well during their first day into client accounts associated with that investment strategy, and assigning trades that performed poorly over their first day into the accounts of other clients, who were not aware that LEECH was causing them losses to favor others.  LEECH’s victims included institutional and retail investors who entrusted LEECH to manage their savings and pension plans.  Over the course of his criminal scheme, LEECH allocated trades with net first-day gains of at least approximately $600 million to his favored strategy and clients, and allocated trades with net first-day losses of at least approximately $600 million to strategies and clients to whom he owed an equal fiduciary duty.

In an effort to obstruct the investigation of that fraudulent scheme, LEECH testified before the SEC that he knew where he planned to allocate trades at the time he placed them.  The facts showed differently.  LEECH owed a fiduciary duty to all of his clients.  But between 2021 and October 2023, LEECH improperly engaged in a scheme to delay his trades in order to allocate them in a manner that benefitted some of his clients, to the detriment of others.  LEECH’s scheme defrauded clients for whom he was serving a registered financial advisor.  

*                *               *

LEECH, 72, of Pasadena, California, pled guilty to one count of obstructing justice, which carries a maximum sentence of five years in prison. 

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  LEECH is scheduled to be sentenced on September 21, 2026. 

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

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Thomas S. Burnett and Peter J. Davis and Special Assistant U.S. Attorney Lindsey Keenan are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, and the Inspector in Charge of the New York Field Office of the U.S. Postal Inspection Service (“USPIS”), Ketty Larco-Ward, announced today the unsealing of an Indictment charging CHARLES COLE with wire fraud, conspiracy to commit wire fraud, and conspiracy to commit securities fraud.  COLE was presented this morning in the Western District of North Carolina.  The case has been assigned to U.S. District Judge Vernon S. Broderick.

“Fraud is fraud, whether in our public markets or our private markets,” said U.S. Attorney Jay Clayton.  “Our private markets are essential engines of growth and ingenuity, and this Office will purse vigorously those who abuse securities markets—public or private, venture, growth, mid-cap or large-cap.  As alleged, Charles Cole built a fiction of wealth using fake bank records, sham correspondence, and a fraudulent bank website, then used that fiction to obtain hundreds of millions of shares with no intention of paying for them.”

“Mr. Cole allegedly defrauded an unsuspecting company through a series of lies and misrepresentations,” said USPIS Inspector in Charge Ketty Larco-Ward.  “The hard work from our Postal Inspectors that led to this indictment shows the U.S Postal Inspection Service's commitment to protecting individuals and companies from being defrauded.”

As alleged in the Indictment:

From June 2024 through March 2026, COLE perpetrated a scheme to fraudulently obtain at least 239 million shares from Infinite Reality, now known as Napster.  As part of that scheme, COLE, and others acting at his direction, repeatedly lied to Infinite Reality about his ability to pay for the shares—fabricating bank records, creating sham correspondence, and establishing a fake website to mirror that of a foreign bank—to deceive Infinite Reality into believing that COLE had billions of dollars he was prepared to invest in the company.  Based on those misrepresentations, Infinite Reality issued shares to COLE and entities he controlled.  But COLE, who had no intention of paying for the shares, never invested in Infinite Reality.  Instead, he used his fraudulently obtained shares as collateral to obtain or try to obtain loans from third parties, fabricated bank records to acquire still more shares of Infinite Reality based on further misrepresentations, and persisted in his efforts to deceive Infinite Reality until it ultimately rescinded the shares it had issued to COLE and his entities.

*                *                *

COLE, 57, of Mooresville, North Carolina, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; and one count of conspiracy to commit securities fraud, 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 defendant will be determined by the judge.

Mr. Clayton praised the outstanding work of USPIS and the Iredell County Sheriff’s Office.  Mr. Clayton further thanked the U.S. Securities and Exchange Commission.  

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Courtney L. Heavey, David J. Robles, and Justin V. Rodriguez are in charge of the prosecution.

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

1. ^

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

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of an Indictment charging JABARI CLARKE in connection with a series of gunpoint robberies in Mount Vernon and New Rochelle, New York.  CLARKE was arrested today and presented in White Plains federal court before U.S. Magistrate Judge Victoria Reznik, who ordered him detained.

“As alleged, Jabari Clarke carried out a spree of gunpoint robberies of gas stations and convenience stores,” said U.S. Attorney Jay Clayton.  “If you use a gun to rob a store, you should expect federal charges and to be off the streets—that’s the message and the reality New Yorkers want and deserve.”

“Jabari Clarke allegedly committed gunpoint robberies threatening the safety of the general public and terrorizing innocent civilians,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI’s Westchester Safe Street’s Task Force continues to target gun violence plaguing our communities.”

As alleged in the Indictment:

Between May and June of 2025, CLARKE robbed four gas stations and convenience stores in Mount Vernon and New Rochelle.  In each of these robberies, CLARKE or his accomplices brandished firearms and stole cash before fleeing.  Through these gunpoint robberies, CLARKE stole thousands of dollars of cash.

*                *                *

CLARKE, 22, of New Rochelle, New York, is charged with one count of conspiracy to commit Hobbs Act robbery and four counts of Hobbs Act robbery, each of which carries a maximum sentence of 20 years in prison.  CLARKE is also charged with four counts of brandishing a firearm in furtherance of a crime of violence, each of which carries an additional mandatory minimum sentence of seven years in prison that must be served consecutively to any other prison terms imposed. 

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

Mr. Clayton praised the efforts of the FBI, the Mount Vernon Police Department, and the New Rochelle Police Department in connection with this investigation.              

The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Justin L. Brooke and Ioannis D. Drivas are in charge of the prosecution.   

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

1. ^

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

Haji Najibullah, 50, of Afghanistan, also known as “Najibullah Naim,” also known as “Abu Tayeb,” also known as “Atiqullah,” also known as “Nesar Ahmad Mohammad,” was sentenced to 42 years in prison and five years of supervised release for terrorism charges based on his role in the hostage taking of an American journalist and two Afghan nationals in Afghanistan and Pakistan in 2008 and 2009, and his leadership of Taliban fighters who carried out attacks on U.S. servicemembers in Afghanistan between 2007 and 2009, resulting in the deaths of American soldiers and other victims. On April 25, 2025, Najibullah pleaded guilty to hostage taking and providing material support for acts of terrorism resulting in death. Today’s sentence was imposed by U.S. District Judge Katherine Polk Failla. 

“Those who harm Americans and engage in acts of terrorism will be hunted down and brought to justice, no matter how long it takes,” said Acting Attorney General Todd Blanche. “As a Taliban commander, Najibullah supported brutal terrorist attacks that killed American servicemembers and orchestrated the savage hostage-taking of an American journalist and Afghan civilians. Today’s sentence delivers justice for the victims and their families.”

“This former Taliban commander led fighters who committed acts of terrorism that resulted in the killing of U.S. servicemembers and engaged in hostage-taking, and now he will pay the price for his brutal crimes,” said FBI Director Kash Patel. “The men and women of the FBI will not forget when Americans are killed or taken hostage by terrorists. We will find you no matter where you are and work with our partners to bring you to justice.”

“Najibullah commanded Taliban fighters responsible for enforcing the Taliban’s ruthless reign of terror, including fighters who carried out the 2008 attack that killed three U.S. servicemembers and their interpreter,” said Assistant Attorney General for National Security John A. Eisenberg. “However incomplete, today’s sentence delivers long‑awaited accountability and a measure of justice to the families of the victims.”

“Haji Najibullah, a former Taliban commander, is a convicted terrorist whose conduct resulted in the brutal hostage taking of innocent civilians and the killing of U.S. servicemembers in Afghanistan,” said U.S. Attorney Jay Clayton for the Southern District of New York. “He caused unimaginable harm to the victims of his crimes and their loved ones. Today’s sentence sends a clear message that there will be dire consequences for those who aim to harm Americans and our brave military personnel through acts of terror. Our Office, and our dedicated partners in law enforcement, will continue to investigate, prosecute, and bring to justice terrorists around the world.” 

As reflected in the charging instruments, court filings, and statements in the public record:

Starting in or around October 2001, as a result of the U.S. and NATO-led invasion of Afghanistan following the September 11, 2001 terrorist attacks, the Taliban — a militant Islamist organization that provided safe harbor to some of the world’s most dangerous terrorists, including Osama bin Laden —engaged in a deadly insurgency campaign aimed at killing U.S. servicemembers and their allies and terrorizing civilians. As part of that campaign of jihadist violence, the Taliban conducted numerous suicide bombings, targeted killings, assassinations, improvised explosive device (IED) attacks, paramilitary ambushes, and hostage takings against military personnel and civilians.

Between in or around 2007 and 2009, Najibullah served as a Taliban commander in Afghanistan’s Wardak Province, which borders Kabul. During that time, Taliban fighters under his command were prepared to and did carry out deadly attacks against American and NATO troops and their Afghan allies, using, among other things, (i) suicide bombers, (ii) automatic weapons, (iii) IEDs, and (iv) rocket-propelled grenades (RPGs) and other anti-tank weapons and explosives, including against U.S. military helicopters. Najibullah proudly spoke about the brutality of the attacks that he and his men were prepared to conduct, including by stating that his men were “ready to die” and “put on a belt and blow themselves up if we ask them.”   

On or about June 26, 2008, Taliban fighters under Najibullah’s command ambushed and attacked a U.S. military convoy in the vicinity of Wardak Province, Afghanistan, with IEDs, RPGs, and automatic weapons, killing three U.S. Army servicemembers: Sergeants First Class Matthew L. Hilton and Joseph A. McKay and Sergeant Mark Palmateer, as well as their Afghan interpreter. Several other servicemembers were also injured in the attack. Najibullah later claimed responsibility for the attack, telling multiple individuals that his men carried out the attack and that it resulted in the deaths of U.S. servicemembers. A few months later, he and fighters under his command attacked and destroyed an Afghan National Police outpost using automatic weapons and rockets, reportedly killing three Afghan police officers. 

Najibullah’s campaign of terror also was directed at civilians. On or about Nov. 10, 2008, Najibullah and other Taliban fighters kidnapped an American New York Times journalist (Hostage-1) and two Afghan nationals traveling with Hostage-1 at gunpoint in Afghanistan. For the next approximately seven months, Najibullah held the hostages captive in the Taliban-controlled tribal areas of Pakistan, under the constant watch of guards armed with machineguns. Najibullah and his co-conspirators forced the hostages to make ransom calls and proof of life videos, intended to extort ransom payments and the release of Taliban prisoners by the United States Government, and during which the hostages emotionally pleaded for their lives. In one such video, Najibullah forced Hostage-1 to say, with a machinegun pointed at his head, “If you don’t help me, I will die. Now, the key is in your hand. . . . If you do not meet their demands, you will be responsible for my killing, not the Taliban. Please help me, please have mercy on me. Do not shed my blood. Please, save me. I want to go home.”  Eventually, the hostages were able to escape and return to their families. 

Mr. Clayton praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD. He also thanked the New York and New Jersey Port Authority Police, the Department of Defense, and the Counterterrorism Section of the Department of Justice’s National Security Division for their assistance with this investigation, as well as the Ukrainian authorities and the Office of International Affairs of the Justice Department’s Criminal Division for their assistance in the arrest and transfer of the defendant.

This prosecution is being handled by the U.S. Attorney’s Office for the Southern District of New York’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Sam Adelsberg, Jacob H. Gutwillig, and David J. Robles are in charge of the prosecution, with assistance from Trial Attorney Jennifer Burke of the Department of Justice’s Counterterrorism Section of the National Security Division.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that GIOVANNI PENNETTA, the manager of a Manhattan-based investment adviser and private equity firm, was sentenced to four years in prison for committing wire fraud by running a scheme to fraudulently induce multiple investment clients to part with millions of dollars in exchange for economic exposure to shares of non-public companies.  PENNETTA pled guilty on March 5, 2026, and was sentenced today by U.S. District Judge Jed S. Rakoff.

“Falsely promising access to sought-after pre-IPO shares is fraud,” said U.S. Attorney Jay Clayton.  “The pre-IPO market is a securities market just like the public markets, and there is no place for fraud in any securities market.  This Office and our law enforcement partners are watching and will continue to protect investors, no matter the market.”

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

Over a period of roughly six years, PENNETTA, the manager of a Manhattan-based investment adviser and private equity firm, engaged in a scheme to defraud investors who had entrusted him with millions of dollars to access shares of private companies.  PENNETTA induced investors to contribute capital to his private equity fund by promising them economic exposure to shares of pre-IPO companies.  In reality, PENNETTA did not have access to the shares he promised, and the investment interests he sold did not provide the exposure he had guaranteed.  Instead, PENNETTA misappropriated more than $10 million in investor money, moving much of it to his personal bank account.

*                *                *

In addition to the prison term, PENNETTA, 51, of New York, New York, and Italy, was ordered to pay restitution in the amount of $11,928,266.25 and forfeiture in the amount of $12,546,279.86, representing proceeds from his illegal scheme.

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

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Alexandra N. Rothman and Samuel P. Rothschild are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of a three-count Indictment charging JASON KHAN with sex trafficking offenses.  KHAN was arrested this morning in the Northern District of New York and will be presented this afternoon before U.S. Magistrate Judge Jennifer E. Willis.  

“As alleged, Jason Khan lured his victims in under the lucrative promise of being a foot model, before he repeatedly and violently sexually assaulted and raped them,” said U.S. Attorney Jay Clayton.  “We commend the victims for their courage in coming forward, and we urge anyone else who has been a victim of Khan, or knows anything about his alleged crimes, to do the same.  Our investigation is ongoing.”  

“Jason Khan allegedly operated a website to exploit multiple women’s employment aspirations and lure them to hotel rooms before brutally raping them,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI-NYPD Human Trafficking Task Force continues to target sexual predators who abuse women.”

“This defendant lured women to hotel rooms under the false pretense of offering employment opportunities, and then raped and sexually assaulted them,” said NYPD Commissioner Jessica S. Tisch.  “This horrific behavior has no place in our city, and we will not allow predators to prey on vulnerable women.  The NYPD will always protect survivors of sexual assault and work to stop the deception, exploitation, and abuse of traffickers.  I am thankful to the men and women of the NYPD, our partners at the FBI, and the U.S. Attorney’s Office for the Southern District of New York for their tireless work to bring this perpetrator to justice.” 

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

From at least 2019 to 2021, KHAN, who resides primarily in New York City and Albany, operated the foot fetish website FootPadNYC.com.  KHAN used his foot fetish website to lure and recruit victims to hotel rooms under the pretense of providing them with job opportunities as foot models.  As depicted in the below image, the “Employment” section for KHAN’s website sought to attract foot models with the promise of “get[ting] paid to have your feet worshipped.”  

KHAN and others working with him then scheduled meetings with aspiring “foot models” in Manhattan hotel rooms.  When the aspiring models showed up to be interviewed by KHAN, he sexually assaulted or raped them.

On at least three occasions, KHAN deployed this playbook: scheduling interviews with women who were seeking professional opportunities as foot models and using the promise of this additional income to lure them to Manhattan hotel rooms.  Once in the hotel room, KHAN raped or sexually assaulted the women—penetrating two of the victims vaginally and, among other things, forcibly putting the third victim’s feet on his penis.  Each victim expressed her lack of consent to the sexual activity, but her non-consent was ignored by KHAN.  Each of the victims reported her assault to law enforcement and others, and two of the victims performed rape kits in a hospital in the aftermath of their rapes. 

If you have been victimized by KHAN in any way, or have any additional information about his alleged illegal behavior, please call the FBI at 212-384-2700, reach out to us at JasonKhanVictims@fbi.gov, or fill out this questionnaire.  KHAN is depicted below.

*                *                *

KHAN, 47, of Albany and New York, New York, is charged with three counts of sex trafficking by force, fraud, or coercion, each of which carries a maximum sentence of life in prison and a mandatory minimum sentence of 15 years in prison. 

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

Mr. Clayton praised the outstanding investigative work of the FBI-NYPD Child Exploitation and Human Trafficking Task Force in New York, as well as the assistance of FBI Albany and the Manhattan District Attorney’s Office. 

This case is being handled by the Office’s Civil Rights Unit in the Criminal Division.  Assistant U.S. Attorneys Sam Adelsberg, Lisa Daniels, and Remy Grosbard are in charge of the prosecution. 

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

1. ^

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

United States Attorney for the Southern District of New York, Jay Clayton, Acting Attorney General for the United States, Todd Blanche, Assistant Attorney General for National Security, John A. Eisenberg, Director of the Federal Bureau of Investigation (“FBI”), Kash Patel, and Assistant Director in Charge of the New York Field Office of the FBI, James C. Barnacle, Jr., announced today that HAJI NAJIBULLAH, a/k/a “Najibullah Naim,” a/k/a “Abu Tayeb,” a/k/a “Atiqullah,” a/k/a “Nesar Ahmad Mohammad,” was sentenced to 42 years in prison for terrorism charges based on NAJIBULLAH’s role in the hostage taking of an American journalist and two Afghan nationals in Afghanistan and Pakistan in 2008 and 2009, and his leadership of Taliban fighters who carried out attacks on U.S. servicemembers in Afghanistan between 2007 and 2009, resulting in the deaths of American soldiers and other victims.  On April 25, 2025, NAJIBULLAH pled guilty to hostage taking and providing material support for acts of terrorism resulting in death. Today’s sentence was imposed by U.S. District Judge Katherine Polk Failla. 

“Haji Najibullah’s conduct resulted in the brutal hostage taking of innocent civilians and the killing of U.S. servicemembers in Afghanistan,” said U.S. Attorney Jay Clayton.  “Najibullah caused unimaginable harm to the victims of his crimes and their loved ones.  Today’s sentence demonstrates again that those who seek to terrorize Americans will face justice.”

“Those who harm Americans and engage in acts of terrorism will be hunted down and brought to justice, no matter how long it takes,” said Acting Attorney General Todd Blanche.  “As a Taliban commander, Najibullah supported brutal terrorist attacks that killed American servicemembers and orchestrated the savage hostage-taking of an American journalist and Afghan civilians.  Today’s sentence delivers justice for the victims and their families.”

“Najibullah commanded Taliban fighters responsible for enforcing the Taliban’s ruthless reign of terror, including fighters who carried out the 2008 attack that killed three U.S. servicemembers and their interpreter,” said Assistant Attorney General for National Security John A. Eisenberg.  “However incomplete, today’s sentence delivers long‑awaited accountability and a measure of justice to the families of the victims.”

“This former Taliban commander led fighters who committed acts of terrorism that resulted in the killing of U.S. servicemembers and engaged in hostage-taking, and now he will pay the price for his brutal crimes,” said FBI Director Kash Patel.  “The men and women of the FBI will not forget when Americans are killed or taken hostage by terrorists.  We will find you no matter where you are and work with our partners to bring you to justice.”

“Former Taliban commander Haji Najibullah's acts of terror are horrific,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Najibullah is responsible for the deaths of U.S. servicemembers and the hostage taking of an American journalist.  This sentencing demonstrates the FBI New York Joint Terrorism Task Force's relentless pursuit of an overseas terrorist and our commitment to delivering justice for our brave DOW partners whose families have been irreparably harmed by the defendant's actions.” 

As reflected in the charging instruments, court filings, and statements in the public record:

Starting in or around October 2001, as a result of the U.S.- and NATO-led invasion of Afghanistan following the September 11, 2001, terrorist attacks, the Taliban—a militant Islamist organization that provided safe harbor to some of the world’s most dangerous terrorists, including Usama bin Laden—engaged in a deadly insurgency campaign aimed at killing U.S. servicemembers and their allies and terrorizing civilians.  As part of that campaign of jihadist violence, the Taliban conducted numerous suicide bombings, targeted killings, assassinations, improvised explosive device (“IED”) attacks, paramilitary ambushes, and hostage takings against military personnel and civilians.

Between in or around 2007 and 2009, NAJIBULLAH served as a Taliban commander in Afghanistan’s Wardak Province, which borders Kabul.  During that time, Taliban fighters under NAJIBULLAH’s command were prepared to and did carry out deadly attacks against American and NATO troops and their Afghan allies, using, among other things, (i) suicide bombers, (ii) automatic weapons, (iii) IEDs, and (iv) rocket-propelled grenades (“RPGs”) and other anti-tank weapons and explosives, including against U.S. military helicopters.  NAJIBULLAH proudly spoke about the brutality of the attacks that he and his men were prepared to conduct, including by stating that his men were “ready to die” and “put on a belt and blow themselves up if we ask them.”    

For example, on or about June 26, 2008, Taliban fighters under NAJIBULLAH’s command ambushed and attacked a U.S. military convoy in the vicinity of Wardak Province, Afghanistan, with IEDs, RPGs, and automatic weapons, killing three U.S. Army servicemembers: Sergeants First Class Matthew L. Hilton and Joseph A. McKay, and Sergeant Mark Palmateer, and their Afghan interpreter.  Several other servicemembers were also injured in the attack.  NAJIBULLAH later claimed responsibility for the attack, telling multiple individuals that his men carried out the attack and that it resulted in the deaths of U.S. servicemembers.  A few months later, NAJIBULLAH and fighters under his command attacked and destroyed an Afghan National Police outpost using automatic weapons and rockets, reportedly killing three Afghan police officers. 

NAJIBULLAH’s campaign of terror also was directed at civilians.  On or about November 10, 2008, NAJIBULLAH and other Taliban fighters kidnapped an American New York Times journalist (“Hostage-1”) and two Afghan nationals traveling with Hostage-1 at gunpoint in Afghanistan. For the next approximately seven months, NAJIBULLAH held the hostages captive in the Taliban-controlled tribal areas of Pakistan, under the constant watch of guards armed with machineguns.  NAJIBULLAH and his co-conspirators forced the hostages to make ransom calls and proof-of-life videos, intended to extort ransom payments and the release of Taliban prisoners by the United States Government, and during which the hostages emotionally pleaded for their lives.  In one such video, NAJIBULLAH forced Hostage-1 to say, with a machinegun pointed at his head, “If you don’t help me, I will die.  Now, the key is in your hand. . . . If you do not meet their demands, you will be responsible for my killing, not the Taliban. Please help me, please have mercy on me. Do not shed my blood.  Please, save me.  I want to go home.”  Eventually, the hostages were able to escape and return to their families.  

*                 *                *

In addition to the prison term, NAJIBULLAH, 50, of Afghanistan, was sentenced to five years of supervised release. 

Mr. Clayton praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD.  He also thanked the New York and New Jersey Port Authority Police, the Department of Defense, and the Counterterrorism Section of the Department of Justice’s National Security Division for their assistance with this investigation, as well as the Ukrainian authorities and the Office of International Affairs of the Justice Department’s Criminal Division for their assistance in the arrest and transfer of the defendant.

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Sam Adelsberg, Jacob H. Gutwillig, and David J. Robles are in charge of the prosecution, with assistance from Trial Attorney Jennifer Burke of the Counterterrorism Section.

United States Attorney for the Southern District of New York, Jay Clayton, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced the unsealing of an Indictment charging 13 defendants in connection with operating a stolen car ring involving approximately 100 stolen cars worth millions of dollars.  The defendants are charged with conspiracy to possess and sell stolen vehicles, wire fraud, and conspiracy to commit wire fraud.  Nine of the defendants were arrested today and seven were presented in Manhattan federal court before U.S. Magistrate Judge Jennifer E. Willis.  One defendant was arrested in the Western District of New York and detained.  The remaining defendant will be presented tomorrow.

“When they head to work, school, or elsewhere, New Yorkers expect to find their cars where they left them,” said U.S. Attorney Jay Clayton.  “As alleged, the thirteen defendants charged here shattered that everyday expectation.  By acquiring stolen cars, concealing their origin, and selling them to new victims, the defendants fostered a market for rampant theft, disrupted New Yorkers’ lives and security, and bilked innocent buyers out of their hard-earned dollars.  New Yorkers have no tolerance for thieves, and neither do the women and men of the SDNY and our law enforcement partners.”

“As alleged, these defendants stole dozens of vehicles from the hardworking public, altered the identification numbers and paperwork, and sold them as legitimate cars to unsuspecting families,” said HSI Acting Special Agent in Charge Pete Gizas.  “A stolen vehicle is far more than lost property; this pervasive fraud upends daily routines, drains finances, and erodes the sense of safety that New Yorkers should be able to have in their own neighborhoods.  As a lead member of the Homeland Security Task Force, HSI New York will continue to relentlessly target, disrupt, and dismantle the criminal organizations that prey on our communities and threaten our livelihoods.” 

“These 13 defendants acquired approximately 100 stolen cars worth millions of dollars and then sold them to unsuspecting buyers,” said NYPD Commissioner Jessica S. Tisch.  “This elaborate scheme laundered stolen cars through multiple deceptive and illegal tactics designed to conceal their origins and take advantage of consumers. Thanks to the efforts of our NYPD investigators, along with our partners at HSI and the U.S. Attorney’s Office for the Southern District of New York, this pipeline has been dismantled and those responsible are being held accountable.” 

As alleged in the Indictment and other public filings:

From approximately June 2024 through May 2026, the defendants and others acquired cars that had been stolen from victims in New York City, obscured the fact that those cars had been stolen, and, ultimately, sold the cars to unsuspecting buyers in New York and elsewhere.  The defendants and their co-conspirators effectively laundered these stolen cars in a variety of ways, including by covering their true Vehicle Identification Numbers (“VINs”) with new, fraudulent VINs and by replacing their federal certification labels with labels containing the new, fraudulent VINs.  The defendants and their co-conspirators also created fraudulent titles for the stolen cars; took the stolen cars for oil changes and inspections to generate new, fraudulent histories for those cars; and advertised the stolen cars on a social media marketplace.  Through these methods, the defendants and their co-conspirators acquired approximately 100 cars, worth millions of dollars, and resold them to new victims for a huge, criminal profit.

*                *                *

NORBERTO PENA BRITO, a/k/a “Real,” 40, of the Bronx, New York; WILKINS MARTINEZ VARGAS, 38, of the Bronx; NOEMI SOLANO COMPRES, 41, of the Bronx; PAULA ABAD DIAZ, a/k/a “Mayi,” 35, of Yonkers, New York; MARLIN SEGURA MARTINEZ, a/k/a “Marlin Perez,” 35, of Yonkers; ANGEL HEREDIA PEREZ, 24, of the Bronx; LUIS VARGAS SANCHEZ, 24, of the Dominican Republic; JOEL ABAD BELEN, 28, of the Bronx; LUIS BRITO CAMPUSANO, 37, of the Bronx; TOMAS LORENZO JOSE, 38, of the Bronx; YEREMY LORENZO JOSE, 37, of the Bronx; JHOLKIS MELENCIANO COLON, 23, of the Bronx; and EDUARDO PEREZ ESTRELLA, 58, of the Bronx, are each charged with one count of conspiracy to possess and sell stolen vehicles, which carries a maximum sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; and one count of wire fraud, which carries a maximum sentence of 20 years in prison.

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

Mr. Clayton praised the efforts of the NYPD Auto Crime Division Major Case Team and the special agents and task force officers from the HSI New York Seaport Trade Group.

The case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Robert S. Ruff and Bridget G. Johnston are in charge of the prosecution.

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

1. ^

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

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of an Indictment charging JIANQING LI, a/k/a “JQ,” an analyst at an asset manager specializing in biomedical and healthcare investments, with two counts of securities fraud.  LI was presented today before Magistrate Judge Gary Stein.  The case has been assigned to U.S. District Judge Lorna G. Schofield.

“Jianqing Li allegedly turned confidential information into more than $350,000 in illegal trading profits,” said U.S. Attorney Jay Clayton.  “Insider trading is unfair and it’s illegal.  It harms our markets and our investors.” 

“Jianqing Li’s alleged exploitation of sensitive trading information betrayed his employer and established an unfair financial advantage over the unknowing public,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI maintains its steadfast pursuit of those who abuse their positions to generate unlawful profits.”

As alleged in the Indictment:

LI made more than $350,000 in illicit profits by trading in stock and options based on material, nonpublic information he misappropriated from the investment fund where he worked. LI was an analyst at a Manhattan-based asset manager specializing in biomedical and healthcare investments, which routinely received nonpublic information from investment banks in connection with its evaluation of investment opportunities in public companies.  Rather than honor restrictions on the use of that information, LI repeatedly used inside information to trade securities for his own profit, in violation of his duties to his employer and to the sources of the information.  In particular, LI used nonpublic information about upcoming announcements that he expected would increase a company’s stock price to purchase securities for his brokerage accounts—or in the case of information he expected to negatively affect the stock price, to sell short—and then unwound his position soon after the public announcement, in each case for a profit.  To conceal his trading, LI violated his employer’s insider trading policies and code of ethics, including by not seeking preclearance for his illegal trades, not disclosing his trading or profits, and falsely certifying his compliance with those policies annually.

*                *                *

LI, 40, of New York, New York, is charged with one count of securities fraud under Title 15, which carries a maximum sentence of 20 years in prison; and one count of securities fraud under Title 18, which carries a maximum sentence of 25 years in prison.

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

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

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorney Kyle A. Wirshba 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.

1. ^

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

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, announced today the unsealing of an Indictment charging AKMAL RASULOV and ISKANDER SHUKUROV, both Uzbek nationals, with alien smuggling and money laundering.  RASULOV and SHUKUROV were arrested this morning. SHUKUROV was ordered detained, and RASULOV has been released on bond. The case has been assigned to U.S. District Judge J. Paul Oetken. 

“Smuggling foreign nationals into the United States is a serious crime that puts every American at risk,” said U.S. Attorney Jay Clayton.  “Human smuggling also often involves exploitation, drug trafficking, and sexual abuse.  It must be stopped.  Drug cartels, foreign terrorist organizations, and anyone else who seeks to undermine our sovereignty and security through human trafficking and smuggling will be prosecuted.”

“Akmal Rasulov and Iskander Shukurov allegedly jeopardized our country’s security by providing foreign nationals illegal entry into the United States for a hefty fee,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Alongside our federal partners, the FBI is committed to disrupting networks attempting to infiltrate our nation's borders.”

“These charges reflect an alleged calculated effort to move people illegally into this country and wash the profits through our financial system, with no regard for the risks to our communities or our national security,” said HSI Acting Special Agent in Charge Pete Gizas.  “By arresting these defendants, we are cutting into the command structure of an alleged smuggling operation that treated our borders as a business model.  HSI New York, as a leading member of the Homeland Security Task Force, will continue to relentlessly pursue human smugglers and the money they need to operate.”

As alleged in the Indictment:

Between at least 2021 and 2025, RASULOV and SHUKUROV operated an alien-smuggling business.  RASULOV, SHUKUROV, and others charged thousands of dollars per person for each foreign national—principally citizens of Uzbekistan—in order to illegally transport them into the United States.  RASULOV, SHUKUROV, and their co-conspirators arranged for the foreign nationals to either arrive at a U.S. port of entry without prior permission to enter the United States, or sneak across a land border without the required examination or inspection by immigration officers. 

RASULOV and SHUKUROV worked with co-conspirators, including a Mexican citizen living in Mexico (“CC-1”).  RASULOV and SHUKUROV repeatedly sent money to CC-1 so that CC-1 would connect aliens and smugglers in Mexico and then facilitate the transportation of the aliens from Mexico into the United States.  RASULOV and SHUKUROV used international wire transfers to pay CC-1 for these services, including transfers from financial accounts in New York, New York. Some of the wire transfers included false information indicating that the payments were for “loan repayment” or “legal fees” to conceal the true purpose of the transactions.

*               *                *

RASULOV, 39, and SHUKUROV, 52, both of Brooklyn, New York, are each charged with conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and conspiracy to commit alien smuggling, which carries a maximum sentence of five years in prison.

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

Mr. Clayton praised the investigative work of the FBI and HSI.  He added that the investigation is ongoing.   

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

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

1. ^

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

United States Attorney for the Southern District of New York, Jay Clayton, Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, and Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), Bryan DiGirolamo, announced today the unsealing of an Indictment charging 10 defendants with participating in a years-long racketeering conspiracy as members of the violent Bronxdale/YDS gang that included multiple attempted murders, assaults, armed robberies, and other crimes between 2020 and May 2026.  Two defendants, EDWIN POZO, a/k/a “Swerv,” and SETH COLON, were arrested yesterday, and soon both will have been presented before U.S. Magistrate Judge Gary Stein, COLON yesterday and POZO today.  The eight remaining defendants, MODOU TOURAY, a/k/a “LDOT,” JEREMIAH MARTINEZ, a/k/a “JJ,” JERIMIAH MORGAN, a/k/a “Goon,” TYSHAWN MORRIS, a/k/a “YaYa,” DAMION ELLIOT, a/k/a “Upit,” DAVON BEST KELLY, a/k/a “Benz,” NYJAH WYNTER, a/k/a “Glizzy,” and RAEKWON KING, a/k/a “Buzzin,” are in custody in other jurisdictions and will be transferred to the Southern District of New York.  The case is assigned to U.S. District Judge Richard M. Berman.

“As alleged, the Bronxdale/YDS gang wreaked havoc on the residents of the Sotomayor Houses for years,” said U.S. Attorney Jay Clayton.  “With this indictment, the NYPD, ATF, and SDNY bring some measure of relief to the Sotomayor Houses residents, and the members and associates of the Bronxdale/YDS gang will face justice for their alleged crimes.  New York public housing cannot be a haven for gang activity, and the women and men of our Office are fighting every day to rid New York public housing of gun-toting, drug-dealing, violent gangs.”

“For too long, these ten defendants, members of the Bronxdale/YDS gang, treated our communities as their own violent playground,” said NYPD Commissioner Jessica S. Tisch.  “They shot a victim in the chest, slashed a rival in the neck, conspired to commit armed robberies of drug dealers, and terrorized the residents at the Sotomayor Houses.  Their criminality had no limits as they committed wire fraud and other illegal activities across New York City.  Thanks to the hard work of our NYPD investigators, alongside our partners at the ATF and the U.S. Attorney’s Office for the Southern District of New York, we are ensuring violent criminals are held accountable and keeping New Yorkers safe.” 

“Violent street gangs thrive on fear, intimidation, and the reckless use of firearms, but these charges send a clear message: those who endanger our communities will be identified, investigated, and held accountable,” said ATF Special Agent in Charge Bryan DiGirolamo.  “The success of this year-long investigation is a testament to the exceptional collaboration between the ATF-NYPD Crime Gun Enforcement Team and the United States Attorney’s Office for the Southern District of New York.  Together, we are leveraging intelligence, technology, and relentless investigative work to disrupt violent criminal networks and protect the people of New York.  ATF remains steadfast in its mission to combat violent gun crime and support our law enforcement partners in pursuing justice.”

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

From at least in or about 2020 through at least in or about May 2026, TOURAY, MARTINEZ, MORGAN, COLON, MORRIS, POZO, ELLIOT, KELLY, WYNTER, KING, and others known and unknown were members and associates of Bronxdale/YDS (short for “Youngest” or “Youngins” “Doin Shit”), a street gang and organization that operated principally in the Sotomayor Houses, a public housing development of the New York City Housing Authority (previously named the Bronxdale Houses) in the Bronx, New York. Members and associates of Bronxdale/YDS engaged in, among other activities, acts involving murder, assault, robbery, the distribution of controlled substances, and wire and bank fraud in and around the greater metropolitan area of New York City, including in the Bronx, Manhattan, and Queens, in New York counties north of New York City, and in parts of New Jersey.  In addition to being charged with participation in the alleged racketeering conspiracy, several of the defendants are charged with additional offenses, including:  

On or about May 24, 2021, MORRIS and POZO slashed a man believed to be a rival gang member with a knife, causing a large laceration on his neck.

On or about May 13, 2022, MORRIS struck a rival gang member in the head with a metal rod, causing a laceration to that rival gang member’s head.

On or about September 29, 2023, TOURAY and MORGAN used a firearm to shoot an individual, striking that individual in the chest.

From at least in or about 2020 through at least in or about 2024, TOURAY, MARTINEZ, MORGAN, ELLIOT, WYNTER, POZO, and MORRIS conspired to commit armed robberies of drug dealers in the Bronx and elsewhere.

On or about October 2, 2024, TOURAY and KELLY committed a gunpoint robbery of a rideshare driver in the Bronx.

*               *                *

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

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

Mr. Clayton praised the outstanding investigative work of the NYPD and the ATF.  Mr. Clayton also thanked the Federal Bureau of Investigation and the Bergen County, New Jersey, Sheriff’s Office for their assistance in this investigation. 

This case is being handled by the Office’s Violent Organizations & Crime Unit.  Assistant U.S. Attorneys Brandon D. Harper and Jared D. Hoffman are in charge of the prosecution.   

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

Count One

Racketeering Conspiracy

18 U.S.C. § 1962(d)

MODOU TOURAY

TYSHAWN MORRIS

JEREMIAH MARTINEZ

JERIMIAH MORGAN

NYJAH WYNTER

DAMION ELLIOT

DAVON BEST KELLY

SETH COLON

EDWIN POZO

RAEKWON KING

Count Two

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

18 U.S.C. §§ 1959(a)(3) and (a)(5), and 2

TYSHAWN MORRIS

EDWIN POZO

Count Three

Assault with a Dangerous Weapon in Aid of Racketeering

18 U.S.C. §§ 1959(a)(3) and 2

Count Four

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

18 U.S.C. §§ 1959(a)(3) and (a)(5), and 2

MODOU TOURAY

JERIMIAH MORGAN

Count Five

Conspiracy to Commit Hobbs Act Robbery 

MODOU TOURAY

JEREMIAH MARTINEZ

JERIMIAH MORGAN

DAMION ELLIOT

NYJAH WYNTER

EDWIN POZO

TYSHAWN MORRIS

Count Six

Hobbs Act Robbery 

18 U.S.C. § 1951 and 2

MODOU TOURAY

JERIMIAH MORGAN

Count Seven

Firearms Offense

18 U.S.C. §§ 924(c)(1)(A)(i), (ii), and (iii), and 2

MODOU TOURAY

JERIMIAH MORGAN

Maximum: Life in prison

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

Count Eight

Hobbs Act Robbery 

18 U.S.C. § 1951 and 2

MODOU TOURAY

DAVON BEST KELLY

Count Nine

Firearms Offense

18 U.S.C. §§ 924(c)(1)(A)(i), and (ii), and 2

MODOU TOURAY

DAVON BEST KELLY

Maximum: Life in prison

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

Count Ten

Possession of Ammunition after Felony Conviction 

18 U.S.C. § 922(g)(1)

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.

United States Attorney for the Southern District of New York, Jay Clayton, Special Agent in Charge of the New York Task Force Division of the Drug Enforcement Administration (“DEA”), Christopher Roberts, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of a Complaint charging ELVIN VILA with drug-trafficking crimes that led to three fatal overdoses.  VILA was arrested and will be presented tomorrow before U.S. Magistrate Judge Gary Stein.

“As a result of more than a million tragedies, we all have learned a simple and deeply disturbing truth: if you deal in fentanyl, you deal in death,” said U.S. Attorney Jay Clayton.  “As alleged, Elvin Vila sold fentanyl that killed three people, and he kept dealing even after his customers died from overdoses.  He now faces justice.  The women and men of the SDNY, the DEA, the NYPD, and all our tri-state area law enforcement partners are committed to holding dealers in death accountable.”  

“Today’s arrest of Elvin Vila reflects the DEA’s unwavering commitment to target those individuals responsible for pushing fentanyl into our communities and the devasting harm it causes,” said DEA New York Task Force Division Special Agent in Charge Christopher Roberts.  “Mr. Vila’s drug trafficking activities not only allegedly claimed the lives of three individuals; they also left a trail of grief and heartbreak for the families and loved ones now forced to mourn their loss.  Every life matters, and it is the DEA’s mission to hold accountable those responsible for taking them.  The victims and their families deserve justice, and together with our law enforcement partners, we will work tirelessly to ensure they receive it.”

“This defendant made a business out of selling deadly fentanyl, and his actions contributed to the fatal overdoses of three people,” said NYPD Commissioner Jessica S. Tisch.  “He put profit over people’s lives again and again.  Thanks to the tireless work of the NYPD detectives and our partners at the DEA and U.S. Attorney’s Office, he is finally out of this deadly business for good.”

According to the allegations contained in the Complaint and in materials submitted to the Court:

On dozens of occasions between 2023 and 2026, VILA was the leader of a drug-trafficking conspiracy whereby he drove from the Bronx to other locations to sell fentanyl to his customers.  VILA’s drugs caused at least three overdose deaths: (i) the death of a 57-year-old man (“Victim-1”) on or about April 16, 2025, in Stamford, Connecticut; (ii) the death of a 32-year-old woman (“Victim-2”) on or about April 25, 2025, in Port Chester, New York; and (iii) the death of a 69-year-old man (“Victim-3”) on or about January 21, 2026, in Port Chester, New York.

In the month leading up to Victim-1’s death, VILA drove to sell narcotics to Victim-1 on at least 10 occasions.  Several days after the last meeting, VILA sent Victim-1 several text messages asking if Victim-1 was “good” or “ok.”  Despite Victim-1 not responding, because Victim-1 had overdosed and died, VILA continued selling deadly fentanyl, ultimately resulting in two additional fatal drug overdoses.

Approximately one day after his last unanswered text message to Victim-1, VILA delivered narcotics to Victim-3, who shared them with Victim-2.  Approximately a week later, Victim-2 died of an overdose from the drugs that VILA distributed. 

Following Victim-2’s death, VILA continued to make deliveries of narcotics to Victim-3, including on or about January 9, 2026.  On January 21, 2026, Victim-3 died of an overdose from the drugs that VILA distributed. 

On June 4, 2026, members of law enforcement searched Vila’s house in the Bronx pursuant to a judicially authorized search warrant.  Among other things, the search revealed suspected narcotic powders; narcotics mixing and stamping equipment; numerous glassine envelopes for individual packaging; and a safe containing a gun, cash, and a ski mask.  Photographs of some of the items recovered during the search warrant are shown below.

Suspected Narcotics and Glassine Envelopes

Stamping and Mixing Equipment

Gun, Cash, and Ski Mask

*               *                *

VILA, 50, of the Bronx, New York, is charged with conspiracy to distribute narcotics resulting in death and three counts of distribution of narcotics resulting in death, all of which carry a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison.   

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

Mr. Clayton praised the outstanding investigative work of the DEA and the NYPD.  Mr. Clayton also thanked the Port Chester Police Department, the Stamford Police Department, and the New York State Police for their invaluable assistance in this case.

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

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

1. ^

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

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), Naomi Gruchacz, announced that the United States has settled a civil healthcare fraud lawsuit against COMMUNITY CARE HEALTH NETWORK, LLC, D/B/A MATRIX MEDICAL NETWORK (“MATRIX”), a health services company headquartered in Nashville, Tennessee, that contracts with Medicare Advantage Organizations (“MAOs”) to perform in-home health assessments of Medicare patients.  The settlement resolves claims that MATRIX violated the False Claim Act by causing the MAOs to submit to the Government false and invalid patient diagnoses for certain chronic conditions, thereby artificially inflating the Medicare payments the MAOs received for providing insurance coverage to patients enrolled in their plans. The Government alleges that MATRIX focused on reporting diagnoses that could lead to higher payments for its client MAOs, instead of ensuring that all of its diagnoses were appropriate and well-supported. 

Under the settlement, which was approved by U.S. District Judge Andrew L. Carter, MATRIX will pay the United States a total sum of $36.5 million.  MATRIX made extensive factual admissions in the settlement regarding its conduct, including that in numerous instances MATRIX reported certain conditions where its health assessment forms did not contain sufficient clinical information to support the diagnosis.  In connection with the settlement, MATRIX also entered into a five-year Corporate Integrity Agreement (“CIA”) with HHS-OIG.  The CIA requires MATRIX to implement numerous accountability and auditing measures.  In particular, MATRIX must conduct annual risk assessments and other monitoring, and an independent review organization will conduct compliance reviews focused on MATRIX’s systems, processes, and procedures relating to MATRIX’s risk adjustment activities and MATRIX’s services provided to Medicare Advantage plan enrollees.

“For years, Matrix generated false and invalid diagnoses for patients enrolled in Medicare Advantage plans that were later reported to the Government,” said U.S. Attorney Jay Clayton.  “Matrix advertised its ability to identify new diagnosis codes that would boost Medicare Advantage insurers’ payments, and it delivered on that promise by reporting lucrative diagnoses that frequently fell well short of meeting recognized clinical criteria.  Matrix did so to generate business for itself, at the expense of the public fisc.  New Yorkers hate fraud that drains public funds.  Why?  Because New Yorkers are smart and they know fraud involving taxpayer-funded programs costs all New Yorkers.  This Office is proud to join with the rest of the Department, including the National Fraud Enforcement Division, to hold perpetrators of fraud accountable in Medicare and other contexts.”

“Matrix manipulated Medicare managed care’s reimbursement structure for financial gain,” said HHS-OIG Special Agent in Charge Naomi Gruchacz.  “By generating unsupported and clinically invalid diagnoses, Matrix undermined the integrity of federal health care programs and put profits above patients.  This settlement demonstrates our unwavering commitment to holding entities accountable when they inflate Medicare payments through improper practices and fail to uphold the standards beneficiaries deserve.”

The Medicare Advantage program, also known as Medicare Part C, allows Medicare beneficiaries to opt out of traditional Medicare and enroll in health plans that are administered by private insurance companies known as MAOs.  The MAOs contract with the Centers for Medicare and Medicaid Services (“CMS”) to provide traditional Medicare coverage to beneficiaries enrolled in their plans in exchange for capitated payments.  CMS adjusts these capitated payments based on the health status of each beneficiary as determined through diagnoses submitted by the MAOs. Specifically, CMS uses these diagnoses, along with demographic factors, to calculate a Risk Adjustment Factor (“RAF”) score for each member and, in turn, the amount of the monthly payment it will pay the MAO for covering that member, pursuant to the Hierarchical Condition Category (“HCC”) model. In general, CMS pays insurers more for sicker beneficiaries likely to incur higher healthcare expenses and less for healthier beneficiaries.  Diagnosis codes submitted to CMS must be supported by the beneficiaries’ medical records and be accurate, complete, and truthful, based on the best knowledge, information, and belief of the MAO making the submission. 

As alleged in the Government’s Complaint:

MATRIX contracts with MAOs to conduct health assessments of Medicare Advantage plan members in their homes.  Based on these in-home assessments, MATRIX provides diagnosis codes to the MAOs for ultimate submission to CMS as part of the MAOs’ risk adjustment data.  The MAOs paid MATRIX a fee, generally in the range of $350 to $450, for each assessment.  CMS relies on this risk adjustment data, including the medical diagnosis codes, to determine the payments paid to the MAOs for each beneficiary.  As a “first-tier entity” that contracts with MAOs, MATRIX is required to certify the accuracy and truthfulness of the data it generates relating to claims for payment submitted by MAOs. 

During the period from 2014 to 2019, MATRIX knowingly caused MAOs to submit false and invalid diagnoses of the following chronic medical conditions to CMS for risk adjustment purposes: proliferative diabetic retinopathy, drug-induced polyneuropathy, rheumatoid polyneuropathy, atrial fibrillation, rheumatoid arthritis, chronic obstructive pulmonary disease, and simple chronic bronchitis (the “Invalid Diagnoses”).  MATRIX reported the Invalid Diagnoses to MAOs based on its in-home assessments even though: (a) there was not sufficient information to support the diagnoses; (b) the diagnoses did not conform with the guidelines for coding and reporting diagnoses as required by CMS; and (c) the conditions were frequently not diagnosed by any other healthcare provider who saw the beneficiary during the year in which the home visit occurred or in the preceding two years or subsequent two years.  As a result of the reporting of these Invalid Diagnoses, the MAOs obtained inflated risk adjustment payments from CMS to which they were not entitled.

MATRIX’s home visit program was designed in large part to identify additional diagnosis codes that could be reported to CMS to increase patient risk scores, and therefore the capitated payments that the MAOs received for their plan members.   MATRIX regularly recorded Invalid Diagnoses for complex conditions without performing the testing, imaging, or other diagnostic clinical steps necessary to establish those diagnoses.  The purpose of the home visits was not to treat patients’ medical conditions; indeed, MATRIX did not provide medical treatment or prescribe medications as part of the home visits.  Nor did it refer the patients to specialists for follow-up care, other than generalized suggestions that the patient follow up with their doctors. 

MATRIX marketed its services to MAOs in part by representing that the in-home assessments would allow MAOs to capture diagnoses for use in the risk adjustment process that had not been reported by the plan members’ other providers.  In marketing and other materials provided to MAOs, MATRIX advertised its ability to find and document diagnoses that were not otherwise reported by a patient’s primary care physicians and would therefore increase a patient’s risk adjustment score and the MAOs’ payments.  For example, Matrix advertised its ability to secure HCC “Lift,” meaning to make diagnoses that resulted in higher HCC disease scores and, thus, higher risk adjustment payments.  MATRIX also advertised and calculated the “increase in RAF score” from MATRIX’s assessments and estimated the amount by which the diagnoses MATRIX identified increased the risk adjustment payments received by the MAOs. 

MATRIX’s in-home assessments were typically conducted by nurse practitioners.  Based on the visit, the nurse practitioner completed an electronic, check-the-box form concerning the individual’s reported medical history and the results of a basic physical assessment.  MATRIX’s coding teams later reviewed the assessment forms and diagnoses listed and identified the applicable diagnosis codes to be sent to the MAOs for ultimate submission to CMS as part of their risk adjustment data.  Additionally, after the visits, MATRIX’s “Quality Improvement” staff reviewed the diagnoses entered to assess whether the nurse practitioner had any “missed” diagnoses, which they then urged the nurse practitioner to add.  At times, MATRIX even added diagnoses without the nurse practitioner’s signoff. 

The Invalid Diagnoses generated by the MATRIX home visits did not conform to the International Classification of Diseases (“ICD”) Official Guidelines for Coding and Reporting (the “ICD Guidelines”), as required by applicable federal regulations.  The diagnoses did not affect patient care, treatment, or management during the home visit, as required under the ICD Guidelines, and thus were ineligible for risk adjustment.  In addition, the Invalid Diagnoses were not supported by the minimal information recorded on the MATRIX assessment forms, in violation of the ICD Guidelines’ medical record documentation requirement.  

Through the operation of its home assessment program, MATRIX reported codes for thousands of Invalid Diagnoses to MAOs, which in turn submitted those codes to CMS.  Based on these unlawful false claims, the MAOs improperly received millions of dollars in risk adjustment payments from CMS, in violation of the False Claims Act.

As part of the settlement, MATRIX admitted and accepted responsibility for certain conduct alleged by the Government including the following:

• MATRIX contracted with over 30 MAOs to conduct health assessments of Medicare Part C plan members in their homes. 
• The in-home assessments were typically performed by nurse practitioners, who collected health histories and medication information, conducted physical exams, and documented diagnostic information on electronic health assessment forms.  The nurse practitioners did not provide clinical medical treatment to the plan members or prescribe medications. 
• Certain contracts with MAOs required MATRIX to, among other things, assist the MAO in “capturing Member diagnoses for use in [MAO’s] risk adjustment process” and report on the MAO’s “ROI,” or return on investment.  MATRIX calculated an MAO’s ROI based, in part, on the estimated increase in Medicare Part C reimbursements received by the MAO that was attributable to risk score increases resulting from Matrix assessments.
• MATRIX’s in-home assessments resulted in diagnoses of plan members, and the submission to CMS of resulting risk-adjusting diagnosis codes, that frequently had not been reported by any other healthcare provider who treated the plan member during the year in which the home visit occurred or during the two years before and after the calendar year in which the home visit occurred.
• In numerous instances, MATRIX reported the following conditions to MAOs where the health assessment forms did not contain sufficient clinical information to support the diagnosis: proliferative diabetic retinopathy; drug-induced polyneuropathy; rheumatoid polyneuropathy; atrial fibrillation; rheumatoid arthritis; chronic obstructive pulmonary disease; and simple chronic bronchitis. The MAOs in turn frequently submitted the diagnosis codes corresponding to those conditions to CMS for risk adjustment purposes, which often resulted in the MAOs receiving higher Medicare Part C reimbursements.

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.

In a separate settlement announced today by the Civil Division of the Department of Justice and the United States Attorney’s Office for the Eastern District of Texas, DPN USA d/b/a HealthFair (“HealthFair”), a company acquired by MATRIX in 2018 that performed health assessments on mobile health care buses, and HealthFair’s prior owner Shahriah “James” Ekbatani, are agreeing to resolve separate allegations that HealthFair knowingly reported certain diagnoses to MAOs that were unsupported, unsubstantiated, and/or invalid on the basis of these mobile assessments.

*                *                *

Mr. Clayton thanked HHS-OIG for its assistance with this case.

This case is being handled by the Civil Frauds Unit within the U.S. Attorney’s Office for the Southern District of New York.  Assistant U.S. Attorneys Rachael Doud and Ilan Stein are in charge of the case.

Community Care Health Network LLC, doing business as Matrix Medical Network (Matrix), DPN USA, doing business as HealthFair (HealthFair), and Shahriah “James” Ekbatani have agreed to pay a total of $56.5 million to resolve allegations that they violated the False Claims Act (FCA) by causing the submission of false or invalid diagnosis codes to the Medicare Advantage program. Matrix will pay $36.5 million to resolve claims in a qui tam action filed in the Southern District of New York. HealthFair, which was acquired by Matrix, will pay $5 million and Ekbatani will pay $15 million to resolve claims in a qui tam action filed in the Eastern District of Texas.

“When healthcare companies report risk-adjusting diagnoses that are invalid, they siphon money from the Medicare Advantage program,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Justice Department remains vigilant in pursuing MAOs, downstream entities, and responsible individuals who do not play by the rules.”

“Patients should be able to trust that their medical providers are making, documenting, and sending diagnosis information to insurers based on accurate assessment, testing, and what is best for the patient,” said U.S. Attorney Jay R. Combs of the Eastern District of Texas. “It is a breach of trust when providers look to make more money by making their patients appear sicker than they are. Submitting unsubstantiated diagnoses increases costs to the Medicare Advantage program. This case emphasizes our District’s commitment to justice by pursuing anyone who attempts to steal through misrepresentations.”

“For years, Matrix generated false and invalid diagnoses for patients enrolled in Medicare Advantage plans that were later reported to the Government,” said U.S. Attorney Jay Clayton for the Southern District of New York. “Matrix advertised its ability to identify new diagnosis codes that would boost Medicare Advantage insurers’ payments, and it delivered on that promise by reporting lucrative diagnoses that frequently fell well short of meeting recognized clinical criteria. Matrix did so to generate business for itself, at the expense of the public fisc. New Yorkers hate fraud that drains public funds. Why? Because New Yorkers are smart and they know fraud involving taxpayer-funded programs costs all New Yorkers. This Office is proud to join with the rest of the Department, including the National Fraud Enforcement Division, to hold perpetrators of fraud accountable in Medicare and other contexts.”

“The allegations in these matters describe conduct that puts profit ahead of patients and undermines the integrity of the Medicare Advantage program,” said Acting Deputy Inspector General for Investigations Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will not tolerate efforts to divert taxpayer funded health care dollars for personal or corporate gain. We will continue to pursue every available enforcement avenue with our law enforcement partners to ensure that anyone who endangers federal program integrity is met with swift and robust accountability.”

The Medicare Advantage (MA) program, also known as Medicare Part C, allows Medicare beneficiaries to opt out of traditional Medicare and enroll in health plans that are administered by private insurance companies known as Medicare Advantage Organizations (MAOs). The MAOs contract with the Centers for Medicare and Medicaid Services (CMS) to provide traditional Medicare coverage to beneficiaries enrolled in their plans in exchange for capitated payments. CMS adjusts these capitated payments based on the health status of each beneficiary as determined through diagnoses submitted by the MAOs. In general, CMS pays more for sicker beneficiaries likely to incur higher healthcare expenses and less for healthier beneficiaries. Diagnosis codes submitted to CMS must be supported by the beneficiaries’ medical records and be accurate, complete, and truthful, based on the best knowledge, information, and belief of the MAO making the submission.

Matrix, headquartered in Nashville, Tennessee, is a health services company that contracts with MAOs to provide in-home assessments to MA plan beneficiaries. HealthFair, a company founded and managed by Ekbatani, operated mobile health care buses staffed by nurse practitioners and medical technicians and fitted with certain medical equipment. It contracted with MAOs in several states to provide health assessments to MA plan beneficiaries on HealthFair buses. Matrix acquired HealthFair in 2018 and shut down its operations by 2020.

The United States alleges that during the period from 2014 to 2019, Matrix knowingly caused MAOs to submit false and invalid diagnoses of the following chronic medical conditions to CMS for risk adjustment purposes: proliferative diabetic retinopathy, drug-induced polyneuropathy, rheumatoid polyneuropathy, atrial fibrillation, rheumatoid arthritis, chronic obstructive pulmonary disease, and simple chronic bronchitis (the “Invalid Diagnoses”). Matrix reported the Invalid Diagnoses to MAOs based on its in-home assessments even though: (a) there was not sufficient information to support the diagnoses; (b) the diagnoses did not conform with the guidelines for coding and reporting diagnoses as required by CMS; and (c) the conditions were frequently not diagnosed by any other healthcare provider who saw the beneficiary during the year in which the home visit occurred or in the preceding two years or subsequent two years. As a result of the reporting of these Invalid Diagnoses, the MAOs obtained inflated risk adjustment payments from CMS to which they were not entitled.

As to HealthFair and Ekbatani, the United States contends that HealthFair knowingly reported certain diagnoses to MAOs that were unsupported, unsubstantiated, and/or invalid. Specifically, from 2015 to 2017, HealthFair providers (1) made certain diagnoses (including but not limited to HIV/AIDS, metastatic cancer, and Myasthenia Gravis) without documentation establishing or confirming the existence of the condition; (2) made certain diagnoses (including but not limited to morbid obesity, rheumatoid arthritis, coagulation defect, drug dependence, major depressive disorder, and chronic obstructive pulmonary disease) solely based on patient attestation, claims history, past medical history, or medication; (3) diagnosed congestive heart failure and heart arrhythmia despite contradiction by electrocardiogram and echocardiogram results; and (4) diagnosed thrombophilia solely based on separate diagnoses of atrial fibrillation. HealthFair, which acted at the direction of Ekbatani, submitted the diagnoses to its MAO customers, and the MAOs often submitted the diagnoses to CMS for risk-adjusted payments.

The settlement with Matrix resolves claims brought under the qui tam or whistleblower provisions of the FCA by Nancy Cahill, a former employee of Matrix, in United States ex rel. Cahill v. Matrix, No. 19-CV-11153 (S.D.N.Y.). The settlements with HealthFair and Ekbatani resolve claims brought under the qui tam or whistleblower provisions of the FCA by Robert Oristaglio, Jr., D.O., who was the chief medical officer of HealthFair, in United States ex rel. Oristaglio v. Community Care Health Network, Inc., d/b/a Matrix Medical Network et al., No. 4:22-CV-00133-SDJ (E.D. Tex.). Under the FCA, private parties are permitted to sue on behalf of the government for false claims for government funds and to receive a share of the recovery. The settlements in these cases provide for Cahill to receive $7.3 million and Oristaglio to receive $3.6 million.

This year the Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the Administration’s war on fraud, waste, and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain, they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules. The Civil Division’s FCA enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for the American taxpayers, and holding wrongdoers accountable. FCA matters will continue to be on the forefront of the battle against fraud, and the Civil Division’s FCA work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division.

The resolutions obtained in this matter were the result of coordinated efforts between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Offices for the Southern District of New York and Eastern District of Texas, with assistance from HHS-OIG.

The investigation and resolution of this matter illustrate the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at www.oig.hhs.gov/fraud/report-fraud/ or 800-HHS-TIPS (800-447-8477).

The matters were handled by Trial Attorney Samson Asiyanbi of the Justice Department’s Civil Division, Assistant U.S. Attorneys Rachael Doud and Ilan Stein of the Southern District of New York, and Assistant U.S. Attorney Kevin McClendon of the Eastern District of Texas.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

Note: The settlement agreement with Matrix Medical Network can be read here, the settlement with HealthFair can be read here, and the settlement with Shahriah Ekbatani can be read here.

United States Attorney for the Southern District of New York, Jay Clayton, Acting Attorney General for the United States, Todd Blanche, United States Secretary of Homeland Security, Markwayne Mullin, Director of Joint Task Force Vulcan (“JTFV”), Jacob Warren, Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, and Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, announced today that four members of the designated foreign terrorist organization Tren de Aragua (“TdA”), KEIBER JAEN MARTINEZ, a/k/a “Keybe,” SAMUEL GONZALEZ CASTRO, a/k/a “Klei,” a/k/a “Kley,” EFERSON MORILLO-GOMEZ, a/k/a “Jefferson,” a/k/a “Efe Trebol,” and KEINEYER IBARRA-MUJICA, a/k/a “Keiner,” each pled guilty before U.S. District Judge Denise L. Cote to two counts of murder through the use of a firearm and one count of using a firearm in furtherance of a crime of violence in connection with their participation in the May 24, 2024, murders of Claretha LaQuesha Daniels and Justin Lawless and the non-fatal shooting of a third victim (“Victim-3”), all of whom were unarmed American citizens and residents of New York City.  A fifth codefendant and member of TdA, JARWIN VALERO-CALDERON, a/k/a “La Fama,” pled guilty last week to one count of racketeering conspiracy and one count of using a firearm in furtherance of a crime of violence in connection with his participation in, among other crimes, a September 30, 2024, gunpoint carjacking in New York City.  Three additional codefendants previously pled guilty to other offenses and have been sentenced, and all eight in-custody defendants charged in the TdA prosecution before Judge Cote have now been convicted.

“As they have now admitted, these four members of Tren de Aragua entered the United States illegally and then brutally murdered Claretha LaQuesha Daniels and Justin Lawless on May 24, 2024, in the middle of a residential street in the Bronx, which resulted in another victim being shot and injured,” said U.S. Attorney Jay Clayton.  “This recent Memorial Day Sunday marked a tragic date: two years to the day that Ms. Daniels and Mr. Lawless lost their lives.  We extend our deep condolences to the family members of these victims and hope that today’s guilty pleas bring some comfort to them.  We are committed to investigating and charging all members of TdA and other international gangs who flout our immigration laws and flood our streets with guns, drugs, sex trafficking, and violence.  Today, we delivered two things every New York family wants: these four gun-toting, murderous criminals off our streets; and a message to international gangs—‘stay out of the United States.’”   

“Thanks to the hard work of our law enforcement partners and prosecutors, these four Tren de Aragua gang members will now face justice for their part in the ruthless and senseless murders of two Americans and the attempted murder of a third person in the Bronx two years ago,” said Acting Attorney General Todd Blanche.  “As a former AUSA who prosecuted violent crimes and gangs in the Bronx, this case hits home for me.  Tren de Aragua is a terrorist organization with no place and no future in the United States, and this Department of Justice will not stop until we have rooted out, dismantled, and destroyed them.”

“I’m thankful that the victims and their families finally get the justice they deserve,” said DHS Secretary Markwayne Mullin.  “Tren de Aragua is one of the most vicious gangs on planet earth.  They rape, maim, and murder for sport.  Under President Trump’s leadership, we are targeting and removing gang members from our communities and ensuring those that committed crimes in our country face justice.” 

“Although TdA started as a prison gang in Venezuela, it became a transnational criminal organization and foreign terrorist organization that gained a foothold in many cities in the United States, including New York City,” said JTFV Director Jacob Warren.  “As they have now admitted, these four TdA members killed two unarmed American citizens in the Bronx during a brutal shooting on a public street, and they will finally be held accountable for their crimes.  This case is directly in line with JTFV’s mission: a collaborative, whole-of-government, and nationwide effort to totally eliminate TdA.  To date, we have charged over 260 members and associates of TdA as part of these efforts.  We are grateful for the ongoing partnership with the U.S. Attorney’s Office for the Southern District of New York, and our law enforcement partners who worked tirelessly to investigate this case.”   

“The NYPD will not allow violent gangs to terrorize our streets and threaten our communities,” said NYPD Commissioner Jessica S. Tisch.  “These defendants, members of Tren de Aragua, viciously took two lives and shot a third victim, but thanks to our multi-agency investigation, they are now being held accountable.  I thank the NYPD investigators and our federal law enforcement partners for their tireless efforts in this case.  Together, we will continue to take down gangs, remove guns from our streets, and keep our neighborhoods safe.”

“These defendants carried out acts of cruelty and calculated violence that resulted in the cold-blooded murders of Claretha Daniels and Justin Lawless and left a third victim grievously wounded, shattering families and communities in ways that can never be fully repaired,” said HSI Acting Special Agent in Charge Pete Gizas.  “Their conduct is emblematic of the Tren de Aragua’s ruthless model of transnational gang activity, spanning the Bronx, Queens, and well beyond our borders—where extortion, human smuggling, sex trafficking, narcotics distribution, and gun violence are deployed to entrench their criminal enterprise and spread fear.  HSI New York, through the Homeland Security Task Force, will not yield an inch of authority or control to criminal street gangs that threaten the safety of our communities.”

According to the allegations contained in the Superseding Information and other public filings in this case:

TdA is a criminal organization that operated throughout New York City, including the boroughs of the Bronx and Queens, as well as internationally in Venezuela, Peru, and elsewhere.  The purposes of TdA included:

• Preserving and protecting the power and territory of TdA and its members and associates through acts involving murder, assault, robbery, other acts of violence, and threats of violence, including acts of violence and threats of violence directed at former members and associates of TdA who associated with a splinter organization known as Anti-Tren.
• Enriching the members and associates of TdA through, among other things:
• The unlawful smuggling of individuals, including young women from Venezuela, into Colombia, Peru and the U.S.;
  • The sex trafficking of young women (whom members and associates of TdA often refer to as “multadas”) who had been unlawfully smuggled into Peru and the U.S.;
• The trafficking of controlled substances, including a mixed substance called “tusi” that contains ketamine;
• And armed robberies, including carjackings.
• Keeping victims and potential victims in fear of TdA and its members and associates through threats and acts of violence.
• Promoting and enhancing TdA and the reputation and activities of its members and associates.
• Providing assistance to members and associates of TdA who committed crimes for and on behalf of TdA, such as lodging and interstate transportation for members and associates of TdA to flee prosecution.
• Protecting TdA and its members and associates from detection and prosecution by law enforcement authorities through acts of intimidation, threats, and violence against potential witnesses to crimes committed by members of TdA.
• Members and associates of TdA transported young women, again often referred to by members and associates of TdA as “multadas,” from Venezuela into Peru and the U.S. in exchange for debts that the young women would pay back to TdA by engaging in commercial sex work.  Members of TdA enforced compliance among these young women by, among other things:
• Threatening to kill the young women and their families,
  • Assaulting the young women,
• Shooting or killing the young women,
• And tracking down and kidnapping the young women who tried to flee.

Members of TdA also committed and conspired, attempted, and threatened to commit, acts of violence, including acts involving murder and assault, to protect and expand TdA’s criminal operations; resolve disputes within TdA; to retaliate against rival organizations, including Anti-Tren; and to maintain control over sex trafficking victims.  TdA members and associates also trafficked controlled substances, committed robberies, and obtained, possessed, trafficked, and used firearms and ammunition. 

On May 24, 2024, TdA members JAEN MARTINEZ, GONZALEZ CASTRO, MORILLO-GOMEZ, and IBARRA-MUJICA agreed to kill Claretha LaQuesha Daniels and Justin Lawless and to shoot Victim-3 in the vicinity of 2290 Davidson Avenue in the Bronx, New York.  JAEN MARTINEZ, GONZALEZ CASTRO, MORILLO-GOMEZ, and IBARRA-MUJICA then aided and abetted, caused, and otherwise facilitated the shooting of Daniels, Lawless, and Victim-3, which resulted in the deaths of Daniels and Lawless, and multiple non-fatal gunshot wounds to Victim-3.  Claretha LaQuesha Daniels was 44 years old, and Justin Lawless was 36 years old.

*                *                *

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

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

Mr. Clayton praised the outstanding investigative work of Homeland Security Investigations (“HSI”), including the Field Offices in New York, Seattle, Denver, Chicago, and Hawaii, and the NYPD. He also thanked the Bronx County District Attorney’s Office, the Arapahoe County District Attorney’s Office in Colorado; the Aurora Police Department in Aurora, Colorado; Joint Task Force Vulcan; the New York/New Jersey Regional Fugitive Task Force of the U.S. Marshals Service (“USMS”); the U.S. Customs and Border Protection’s National Gang Unit and New York Human Intelligence Division; U.S. Immigration and Customs Enforcement’s New York Enforcement and Removal Operations; the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”); and the New York City Crime Analysis Center at the New York/New Jersey High Intensity Drug Trafficking Area.

This case is part of Joint Task Force Vulcan (“JTFV”), which was created in 2019 to eradicate MS-13 and now expanded at the direction of the Attorney General to target Tren de Aragua.  JTFV is comprised of U.S. Attorney’s Offices across the country, including the Southern and Eastern Districts of New York; Eastern and Western Districts of North Carolina; Western District of Virginia; Southern District of Florida; Eastern District of Texas; Western District of Oklahoma; Northern District of Indiana; District of Nevada; and District of Arizona; as well as the Executive Office for U.S. Attorneys, and the Department of Justice’s National Security Division and Criminal Division.  Additionally, the FBI, Drug Enforcement Administration (“DEA”), HSI, ATF, USMS, and the Bureau of Prisons are essential law enforcement partners with JTFV.

This case is part of the Homeland Security Task Force (“HSTF”) initiative established by Executive Order 14159, Protecting the American People Against Invasion.  The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad.  Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement toward identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders.  In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States.  HSTF New York comprises agents and officers from HSI, FBI, DEA, ATF, and the IRS with the prosecution being led by the United States Attorney’s Office for the Southern District of New York.

This case is being handled by the Office’s Violent Organizations and Crime Unit and Joint Task Force Vulcan.  Assistant U.S. Attorneys Jun Xiang, Kathryn Wheelock, Timothy Ly, Andrew K. Chan, and Jared Hoffman are in charge of the prosecution, with the assistance of Paralegal Specialists Ananya Sankar and Sandy Alcantara.

COUNT

CHARGE

DEFENDANTS

MAX. PENALTIES

One

(S3 Information)

Murder through the use of a firearm

18 U.S.C. §§ 924(j), and 2

KEIBER JAEN MARTINEZ,

      a/k/a “Keybe,”

SAMUEL GONZALEZ CASTRO,

      a/k/a “Klei,” 

      a/k/a “Kley,”

EFERSON MORILLO-GOMEZ,

      a/k/a “Jefferson,” 

      a/k/a “Efe Trebol,”

KEINEYER IBARRA-MUJICA, 

      a/k/a “Keiner” 

Two

(S3 Information)

Murder through the use of a firearm

18 U.S.C. §§ 924(j), and 2

KEIBER JAEN MARTINEZ,

      a/k/a “Keybe,”

SAMUEL GONZALEZ CASTRO,

      a/k/a “Klei,” 

      a/k/a “Kley,”

EFERSON MORILLO-GOMEZ,

      a/k/a “Jefferson,” 

      a/k/a “Efe Trebol,”

KEINEYER IBARRA-MUJICA, 

      a/k/a “Keiner”

Three

(S3 Information)

Firearm use, carrying, and possession

18 U.S.C. §§  924(c)(1)(A)(i), and 2

KEIBER JAEN MARTINEZ,

      a/k/a “Keybe,”

SAMUEL GONZALEZ CASTRO,

      a/k/a “Klei,” 

      a/k/a “Kley,”

EFERSON MORILLO-GOMEZ,

      a/k/a “Jefferson,” 

      a/k/a “Efe Trebol,”

KEINEYER IBARRA-MUJICA, 

      a/k/a “Keiner”

Life in prison

Mandatory consecutive sentence of 5 years in prison

One

(S2 Indictment)

Racketeering conspiracy

18 U.S.C. § 1962(d)

JARWIN VALERO-CALDERON,

     a/k/a “La Fama”

Six

(S2 Indictment)

Firearm use, carrying, and possession

18 U.S.C. §§  924(c)(1)(A)(i), and 2

JARWIN VALERO-CALDERON,

     a/k/a “La Fama”

Life in prison

Mandatory consecutive sentence of 5 years in prison

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Commissioner of the New York City Department of Investigation (“DOI”), Nadia I. Shihata, announced the unsealing of a Complaint charging JOSHUA SMITH with conspiracy to commit bribery.  SMITH was arrested today and presented before U.S. Magistrate Judge Gary Stein. 

“For years, the defendant allegedly engaged in a scheme to smuggle contraband into a juvenile detention facility in the Bronx in exchange for cash bribes,” said U.S. Attorney Jay Clayton.  “Rehabilitation of juvenile offenders is a challenge.  It is only made more difficult when corrupt staff members supply contraband.  This callous and hypocritical disregard for the rehabilitation mission calls for swift justice, including a message of deterrence.”

“Joshua Smith allegedly exploited his position of employment by the Administration of Children’s Services to traffic contraband through the Horizon Juvenile Center,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI and our law enforcement partners continue to apprehend those who undermine the law to enrich themselves while putting the youth community at risk.”

“The duty of this City Youth Development Specialist at Horizon Juvenile Center was to safeguard the young people in his care,” said DOI Commissioner Nadia I. Shihata.  “Instead, he allegedly used his access to traffic marijuana, pills, and other contraband to the young residents in exchange for thousands of dollars in bribes, according to the criminal complaint.  Let me be clear, any City employee who misuses their position, exploits those in their care, or undercuts safety will be called to account.  I thank the U.S. Attorney’s Office for the Southern District of New York and the New York Field Office of the FBI for their continued commitment and partnership in exposing wrongdoing that endangers juveniles and corrupts New York City.”

As alleged in the Complaint unsealed today in Manhattan federal court:

SMITH was employed by the Administration for Children’s Services (“ACS”) as a “youth development specialist” at Horizon Juvenile Center (“Horizon”) in the Bronx, New York.  Horizon is a secure detention facility (also known as a juvenile detention facility) for youth who are alleged or adjudicated juvenile delinquents, juvenile offenders, or adolescent offenders, and have been remanded to secure detention. From at least in or about April 2023 through at least in or about July 2025, SMITH received money in exchange for smuggling contraband into Horizon.  As part of this course of conduct, SMITH met associates of Horizon residents in the Bronx, among other places, received contraband—including, but not limited to, marijuana, tobacco, and pills—from those associates, and then transported such contraband into Horizon and delivered it to Horizon residents.  On at least some of these occasions, the Horizon residents or their associates provided SMITH with monetary bribes in exchange for SMITH agreeing to introduce contraband into Horizon.

*               *                *

SMITH, 34, of Yonkers, New York, is charged with one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison.

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

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

The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Lauren Phillips and Stephanie Simon are 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.

1. ^

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

United States Attorney for the Southern District of New York, Jay Clayton, announced today that FRANCISCO ALBERTO LOPEZ REYES, a/k/a “Frank,” and EDWARD EUSTATE JIMENEZ, a/k/a “Chino,” were found guilty by a jury following a six-week trial before U.S. District Judge John P. Cronan.  LOPEZ REYES was convicted of being a principal administrator of a continuing criminal enterprise, conspiracy to distribute narcotics resulting in death, narcotics distribution, and conspiracy to commit money laundering.  EUSTATE JIMENEZ was convicted of conspiracy to distribute narcotics resulting in death and narcotics distribution.  The defendants’ conspiracy was responsible for sending fake pharmaceutical pills that actually contained fentanyl and para-fluorofentanyl, which killed a victim.   

“A unanimous jury found that Francisco Alberto Lopez Reyes and one of his deputies, Edward Eustate Jimenez, ran a massive, predatory scheme to distribute pills containing fentanyl and other drugs through fake online pharmacies, including pills that tragically killed a United States Army veteran in February 2024,” said U.S. Attorney Jay Clayton.  “For years, Lopez Reyes was a one-man opioid crisis, duping thousands of victims by distributing millions of pills through the mail from what he thought was the safety of his home in the Dominican Republic.  The pills were designed to look like real pharmaceuticals, but they actually contained deadly fentanyl and other controlled substances.  The scale of Lopez Reyes’s distribution is staggering, as is the scale of the harm his shipments brought to our communities.  A jury has now confirmed what New Yorkers know: if you deal in fentanyl, you deal in death.”   

As established during trial: 

For at least two and a half years, LOPEZ REYES ran an enterprise that distributed pills containing fentanyl, parafluorofentanyl, methamphetamine, and other controlled substances via sales through purported online pharmacies.  The pills LOPEZ REYES and his co-conspirators, including EUSTATE JIMENEZ, distributed were dyed, shaped, and designed to look indistinguishable from the prescription medications they were marketed as, including oxycodone and Adderall.  The pills were shipped to thousands of victims in all 50 U.S. states.   

In order to manufacture the pills, from his home in the Dominican Republic, LOPEZ REYES oversaw a series of pill mills—or industrial scale pill-pressing facilities—located primarily in the basements of residential buildings in the Bronx and Washington Heights.  In those mills, deputies working at LOPEZ REYES’s direction oversaw workers who mixed controlled substances with inert powders and dyes and then pressed those powders into millions of pills shaped and imprinted to match the design of the legitimate pharmaceuticals the purported online pharmacies had represented them to be. 

LOPEZ REYES’s deputies then transferred the pills to other members of the conspiracy—including EUSTATE JIMENEZ—for shipment to customers.  LOPEZ REYES sent the shippers lists of customer orders and corresponding addresses. Those lists and other records maintained by the enterprise reveal shipments of more than one million pills to victims over a two-and-a-half year period.  In addition, law enforcement officers seized another approximately 650,000 pills during the course of searches of mills and stash houses maintained by the enterprise. 

The drugs the defendants shipped were not only dangerous, but deadly.  On February 25, 2024, a 45-year-old, female veteran of the United States Army (“Victim-1”) died of acute fentanyl intoxication after taking pills purchased from one of the enterprise’s pharmacies. Although Victim-1 had ordered oxycodone, what she actually received were round, blue pills marked with an “M” on one side and a “30” on the other that were merely designed to look like oxycodone. In actuality, the pills Victim-1 received contained the lethal mix of fentanyl and para-fluorofentanyl that resulted in her death five days after their arrival through the mail on her doorstep.  

*               *                *

LOPEZ REYES, 46, of the Dominican Republic, was convicted of:  (i) continuing criminal enterprise, which carries a mandatory minimum sentence of life in prison; (ii) conspiracy to distribute narcotics resulting in death, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison; (iii) distribution of narcotics, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; and (iv) conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.    

EUSTATE JIMENEZ, 24, of Washington Heights, New York, was convicted of: (i) conspiracy to distribute narcotics resulting in death, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison, and (ii) distribution of narcotics, which carries a mandatory minimum sentence of 10 years in prison.

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

Mr. Clayton praised the investigative work of the Homeland Security Task Force, International Narcotics and Money Laundering within the Department of Homeland Security, Homeland Security Investigations (“HSI”), which is comprised of law enforcement officers and investigators from the New York City Police Department, the New York State Police, and the Kings County District Attorney’s Office; Groups D-21 and D-25 of the New York Enforcement Division of the Drug Enforcement Administration (“DEA”); the Homeland Security Task Force, Seaport Contraband of the Department of Homeland Security, Homeland Security Investigations; the United States Postal Inspection Service (“USPIS”), New York Division, Contraband, Interdiction & Investigations Task Force, comprised of members from USPIS, NYPD Criminal Enterprise Investigations Section, and Customs and Border Protection; the Internal Revenue Service; and the United States Food and Drug Administration Office of Criminal Investigations.  Mr. Clayton also thanked the U.S. Attorney’s Office for the District of New Jersey, HSI Santo Domingo, the DEA Dominican Republic Country Office, and the U.S. Marshals Service Dominican Republic Foreign Field Office for their assistance.  The Justice Department’s Office of International Affairs worked with Dominican authorities in securing Lopez Reyes’s arrest and 2024 extradition. 

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Katherine Cheng, Maggie Lynaugh, Chelsea Scism, and Adam Sowlati, as well as paralegal specialists Danielle Escamilla, Sophie Keegan, and Juan Munoz, are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced that JOVANNY CONCEPCION pled guilty today before U.S. District Judge Lewis J. Liman to making false statements relating to healthcare matters in connection with use of force incidents that took place within Rikers Island. 

“As he has now admitted, Jovanny Concepcion fraudulently received hundreds of thousands of dollars from New York City taxpayers by falsely claiming injuries following incidents where force was used against an incarcerated person,” said U.S. Attorney Jay Clayton.  “New Yorkers pay way too much for government services.  Our Office will continue to hold accountable those who violate public trust, especially when at the expense of personal liberties and taxpayer dollars.”

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

The New York State Workers’ Compensation Board (the “Board”) administers New York State’s no-fault workers’ compensation system, which guarantees medical care and cash benefits to people who are injured at work, including employees of the New York City Department of Correction (“DOC”).  Payments by the Board made to DOC employees are paid from the New York City Treasury. For years, CONCEPCION was employed by the DOC as a correction officer and was assigned to work at Rikers Island. During that time, CONCEPCION falsely claimed that he was injured while on duty at Rikers Island during incidents with incarcerated individuals requiring the use of force.  In total, CONCEPCION received at least $232,427.97 in benefits to which he was not entitled. 

*                *                *

CONCEPCION, 34, of New York, pled guilty to one count of making false statements related to health care matters, which carries a maximum sentence of five years in prison.

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  CONCEPCION is scheduled to be sentenced on September 10, 2026.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, announced the guilty plea of JORDAN TROUGHT for his role as a high-ranking member of an international fraud ring that stole more than $9 million from more than 200 elderly victims in the United States via sweepstakes scams.  TROUGHT pled guilty today to conspiracy to commit wire fraud, mail fraud, and bank fraud before U.S. Magistrate Judge Judith C. McCarthy.  TROUGHT was arrested on August 28, 2025, in Jamaica and extradited to the United States.

“Jordan Trought admitted today that he helped lead an international fraud ring that stole millions of dollars from elderly victims across the United States through lies about sweepstakes winnings,” said U.S. Attorney Jay Clayton. “Trought and his co-conspirators allegedly exploited trust, age, and hope for profit, including by taking control of victims’ bank accounts and routing stolen money to Jamaica. Today’s plea reflects this Office’s commitment to protecting vulnerable victims, pursuing fraudsters across borders, and holding accountable those who steal from Americans.” 

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

From at least 2015 through at least 2025, TROUGHT and others engaged in a fraud scheme perpetrated against elderly victims (the “Elder Fraud Scheme”), through which TROUGHT and his co-conspirators defrauded more than 200 elderly victims of more than $9 million.  Victims of the Elder Fraud Scheme typically received an unsolicited phone call or text from an individual using a common name—e.g., “David Miller”—claiming they had won a life-changing amount of money and a luxury car from a well-known marketing and sweepstakes company, but needed to pay taxes or fees to addresses and accounts specified by the caller before receiving the prize. The caller then remained in contact with the victims and, after the victims made their initial payments as directed, informed the victims that additional payments were required to receive their purported winnings.  In particular, victims were instructed to send money by mailing checks, money orders, and cash, as well as by wire, Zelle, and Venmo transfer, to addresses and accounts identified by the caller.  TROUGHT and his co-conspirators also gained control of some victims’ bank accounts, which they used to transfer money out of and through those accounts.  Victims’ funds were ultimately transferred to associates of TROUGHT and his co-conspirators, as well as to an automobile business operated by TROUGHT in Jamaica.

TROUGHT operated the Elder Fraud Scheme from Jamaica, alongside co-conspirators based in both Jamaica and the United States.  TROUGHT joined the fraud ring in or around March 2021 and became one of its leaders.  TROUGHT is being held responsible for more than $6 million stolen from more than 100 victims from March 2021 through TROUGHT’s arrest in August 2025.

*                *               *

TROUGHT, 30, a citizen of Jamaica, pled guilty to one count of conspiracy to commit wire fraud, mail fraud, and bank fraud, which carries a maximum sentence of 30 years in prison. TROUGHT also agreed to make restitution and pay forfeiture, each in the amount of $6,166,227.

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

Mr. Clayton praised the outstanding investigative work of the Special Agents of the U.S. Attorney’s Office for the Southern District of New York and the Internal Revenue Service – Criminal Investigation.  Mr. Clayton also thanked the U.S. Marshals Service, the U.S. Department of Justice’s Office of International Affairs, and Jamaican authorities, including the Jamaican Constabulary Force, for their assistance in securing TROUGHT’s arrest and extradition.

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Benjamin Levander, Margaret Vasu, and Ioannis Drivas are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that EDSON BROWN, a Bronx resident, pled guilty to an 18-count indictment, charging him with crimes in connection with a firearms trafficking scheme spanning more than a year and involving at least two straw purchasers.  BROWN pled guilty today before U.S. District Judge John P. Cronan.

“New Yorkers want criminals who use guns off our streets and, together with the NYPD, the FBI, the ATF, and many others, we are committed to pursuing gun-toting criminals and gun traffickers,” said U.S. Attorney Jay Clayton.  “To be clear, gun traffickers are criminals who serve violent criminals—there is no place for them in New York.”

As alleged in the Superseding Indictment and other public filings in this case:

Between in or about July 2023 and in or about February 2025, BROWN, who lived in the Bronx, traveled to North Carolina and South Carolina more than a dozen times to illegally purchase approximately 118 firearms at gun stores, each of which were federal firearms licensees (“FFLs”) that he then transported back to New York and sold.  BROWN was not allowed to purchase or possess guns because he is a convicted felon. 

BROWN’s illegal purchases were split between North Carolina and South Carolina. BROWN illegally acquired approximately 53 guns in North Carolina that he then transported to New York and sold to others.  Between July and December 2023, BROWN made six trips from New York to North Carolina with a straw purchaser, that is, someone who falsely stated to FFLs that the straw purchaser was buying the guns legally and for his or her own use, but in reality was buying the firearms for BROWN and for the purpose of resale in New York.  BROWN also illegally acquired approximately 65 guns in South Carolina that he then transported to New York and sold to others.  Between October 2023 and February 2025, the defendant worked with a second straw purchaser in South Carolina to acquire those guns.  Sometimes that straw purchaser bought the guns and then transferred them to the defendant.  Other times the defendant traveled to South Carolina from New York, impersonated the straw purchaser himself by using the straw purchaser’s ID to buy the guns, and then transported the guns back to New York himself.

BROWN defaced many of the guns by removing their serial numbers before selling them in New York.  Members of the NYPD have recovered seven of the guns that BROWN trafficked from North Carolina and South Carolina to New York.  Six of those seven guns had obliterated serial numbers that the NYPD firearms lab was able to restore—and thus trace back to BROWN’s purchases in North Carolina and South Carolina.  The remaining firearms that BROWN trafficked have not yet been recovered, or if they have been recovered, members of law enforcement have been unable to trace them because their serial numbers cannot be restored.

*               *                *   

BROWN, 37, of the Bronx, New York, pled guilty to the following 18 crimes, which carry the maximum sentences described in the below chart:

Count(s)

Charge

Maximum Sentence

1

15 years

2

15 years

3

Five years

4-18

Five years per count

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

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

This case is being handled by the Office’s Violent Organizations and Crime Unit.  Assistant U.S. Attorneys Andrew Jones and Joseph H. Rosenberg are in charge of the prosecution. 

United States Attorney for the Southern District of New York, Jay Clayton, Special Agent in Charge of the New York Task Force Division of the Drug Enforcement Administration (“DEA”), Christopher Roberts, and the Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of a Superseding Indictment charging ARISTIDES CABRERA, a/k/a “Buddha,” with drug crimes resulting in the fatal poisoning of Alex DeFilippo and Kyla McCarthy on May 29, 2022.  The Indictment previously charged CABRERA with drug crimes resulting in the fatal poisoning of a 12‑year-old child on June 28, 2022, and with having used, carried, and possessed firearms in connection with his drug trafficking crimes.  On March 25, 2026, following the initial Indictment, CABRERA was brought into federal custody from New York State custody, where he had been serving state sentences for other firearm and drug crimes.  The case is assigned to U.S. District Judge J. Paul Oetken.

“As alleged, Cabrera’s drug dealing not only caused the death of a 12-year-old child but also the deaths of two adults,” said U.S. Attorney Jay Clayton. “This case shows: if you deal fentanyl, you’ve chosen to deal in death.  And there is no place for you in New York.”

“Today’s unsealing of a superseding indictment against Aristides Cabrera sends a clear and powerful message to those who continue to poison our communities with fentanyl and other illicit drugs: your day of reckoning is coming,” said DEA Special Agent in Charge Christopher Roberts.  “This defendant’s alleged actions contributed to the tragic loss of three lives, including that of a young person whose future was senselessly stolen.  The blatant and utter disregard for human life demonstrated in this case underscores the devastating toll drug traffickers inflict on our communities and families every day.  Through the tireless work of our investigators and the close collaboration of our prosecutorial partners, we were able to pursue death-resulting charges that reflect the gravity of these allegations and the irreversible harm caused.  While no investigation or prosecution can restore the lives lost, the DEA remains steadfast in its mission to ensure those responsible for fueling addiction, violence, and death are identified and brought to justice.”

“Because of this defendant, three New Yorkers, including a 12-year-old child with disabilities, overdosed on drugs and lost their lives,” said NYPD Commissioner Jessica S. Tisch.  “Despite knowing about these deaths, the defendant continued selling the same narcotics, showing a complete disregard for human life.  This case is a devastating example of the danger fentanyl poses, especially when it is brought into a home with children.  I thank the NYPD detectives, the U.S. Attorney’s Office for the Southern District, and our law enforcement partners for working to hold this criminal accountable.”

 As alleged in the Indictment and other public filings:

From at least in or about November 2017 through in or about January 2024, CABRERA worked with others to sell, among other things, heroin, fentanyl, and para-fluorofentanyl in the Longwood neighborhood of the Bronx, New York.  During a single-month span of that period, between on or about May 29, 2022, and on or about June 28, 2022, CABRERA’s drugs killed three people, including a 12-year-old boy with a history of autism spectrum disorder who had been residing with CABRERA and others in his Bronx apartment.  

Despite knowing about these deaths, CABRERA continued selling the same drugs, including during a later period in which he was detained at a state correctional facility. CABRERA led his drug trafficking operation, in part, from his Bronx apartment, where he stored firearms and significant quantities of narcotics, including fentanyl and para-fluorofentanyl, a deadly fentanyl analogue.  CABRERA stored narcotics, including fentanyl-laced pills, in multiple locations in his apartment, including in a safe where he also kept firearms.  CABRERA typically met and sold drugs to customers in the immediate vicinity of his apartment. 

On or about May 29, 2022, CABRERA met with and sold drugs to Alex DeFilippo (also identified in the Indictment as Victim-1) and a relative of DeFilippo. CABRERA knew DeFilippo and had previously engaged in narcotics transactions with him. CABRERA also previously discussed drug sales with DeFilippo’s intimate partner, Kyla McCarthy (also identified in the Indictment as Victim-2).  After purchasing CABRERA’s drugs, DeFilippo returned to McCarthy’s apartment.  Shortly thereafter that same day, McCarthy’s cellphone was used to conduct three internet searches, all of which related to the use of naloxone (commonly known as Narcan), a nasal spray used to reverse the deadly effects of overdoses from opioids like fentanyl.  Approximately eighteen hours later, at the request of one of McCarthy’s family members, NYPD officers responded to the apartment to conduct a wellness check. Inside, NYPD officers discovered DeFilippo and McCarthy, both of whom had died after ingesting the fentanyl and para-fluorofentanyl sold to them by CABRERA.  One unused dose of Narcan was found at McCarthy’s feet.

Less than a month after the fatal overdoses of DeFilippo and McCarthy, on or about June 28, 2022, at CABRERA’s apartment, a 12-year-old boy was found by a family member in his bed unresponsive and foaming at the mouth.  The boy was transported to a Bronx County hospital, where he was later pronounced dead. 

*                *               *

CABRERA, 35, of the Bronx, New York, is charged with conspiracy to distribute narcotics resulting in death and three counts of distribution of narcotics resulting in death, all of which crimes carry a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison.  CABRERA is also charged with firearms use, carrying, and possession in connection with his drug trafficking crimes, which carries a mandatory minimum sentence of five years in prison, which must run consecutively to any other sentence, and a maximum sentence of life in prison. 

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

Mr. Clayton praised the outstanding investigative work of the NYPD, DEA, and Drug Enforcement Task Force Division, as well as Special Agents, Task Force Officers, the Digital Forensics Unit, and the Complex Analytics and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area from the U.S. Attorney’s Office for the Southern District of New York.  Mr. Clayton also thanked the Bronx District Attorney’s Office for its assistance in the case.

The case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Ashley C. Nicolas, Benjamin M. Burkett, Dana R. McCann, Lisa Daniels, and Amanda C. Weingarten are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced that SAUL ARISMENDY DE LA CRUZ, a/k/a “Nene,” a/k/a “Venom,” a former member of the New York City Police Department (“NYPD”), was sentenced today before U.S. District Judge Nelson S. Román to 75 months in prison for accepting bribes to provide members of a theft crew in which he participated with confidential police information about potential victims and ongoing investigations.  DE LA CRUZ had pleaded guilty to one count of racketeering conspiracy, in connection with his participation in the violent theft crew. 

“The NYPD is the greatest police department in the world,” said U.S. Attorney Jay Clayton.  “Yet Saul Arismendy De La Cruz betrayed his colleagues and the New Yorkers he was sworn to protect.  His selfish crimes cannot tarnish the NYPD but must be met with justice as they were today.” 

As alleged in the Indictment and Superseding Indictments unsealed in White Plains federal court:

DE LA CRUZ was one of a number of defendants charged for participation in a violent theft crew led by the fugitive DAGOBERTO SOTO-RAMIREZ, a/k/a “Pito,” pictured below:

DAGOBERTO SOTO-RAMIREZ: WANTED BY THE FBI

Between 2017 and 2022, SOTO-RAMIREZ organized a crew that committed residential burglaries and home invasion robberies, repeatedly targeting small business owners.  The majority of the targeted victims were Asian American.  Armed with guns and other weapons, members of the crew stole money, jewelry, and other property from scores of homes in states across the country.  Others took part in the crew’s criminal scheme, which also included the use of false identification, bank fraud, and laundering theft proceeds.  In addition, SOTO-RAMIREZ and other members of the conspiracy bribed DE LA CRUZ, first an officer and later a detective of the NYPD, who helped members of the crew escape arrest. 

SOTO-RAMIREZ remains a fugitive.  Anyone with information about his whereabouts should contact the Federal Bureau of Investigation (“FBI”) at 1-800-CALL-FBI or https://tips.fbi.gov/. 

*               *                *

In addition to his prison sentence, DE LA CRUZ, 33, of Queens, New York, was sentenced to three years of supervised release and ordered to pay $100,000 in forfeiture and $219,459 in restitution to victims. 

Mr. Clayton praised the investigative work of the FBI, the Westchester County Joint Organized Crime Task Force, the New York Public Corruption Task Force, the Westchester County Department of Public Safety, the NYPD, the Nassau County Police Department, the New York State Police and the Fort Lee Police Department. 

The case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Josiah Pertz, Jeffrey C. Coffman, and Ben Arad are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of an Indictment charging three defendants in connection with the August 7, 2025, murder of Ralph Herrera, a/k/a “Chicken,” who was shot from point-blank range in the side of the head while standing on a Bronx sidewalk.  The three defendants, JAHRID DAWKINS, KADIN WEST, a/k/a “Kay Backends,” and MILAN WRIGHT, a/k/a “BabyyThreat,” were arrested earlier today and were ordered detained.  The case has been assigned to U.S. District Judge Katherine Polk Failla.

“As alleged, the defendants plotted a point-blank murder after a gang dispute and carried it out in cold blood on a busy Bronx sidewalk,” said U.S. Attorney Jay Clayton.  “New Yorkers want us to do all we can to end targeted gang violence and, today, that is exactly what our Office and our law enforcement partners are delivering.” 

“The defendants allegedly carried out a deliberate, point-blank killing on a Bronx sidewalk—a calculated act of gang violence that left Ralph Herrera ambushed and fatally shot in the street,” said HSI Acting Special Agent in Charge Pete Gizas.  “HSI New York agents and task force officers worked lockstep with the NYPD to follow the evidence step-by-step and identify, investigate, and arrest these alleged killers.  Together with our law enforcement partners, we will continue to do whatever it takes to drive violent gangs out of our neighborhoods and protect the people we serve.”

As alleged in the Indictment, other court filings, and statements made during court proceedings:(1)

From at least 2023 through May 2026, DAWKINS, WEST, and WRIGHT were members and associates of the MacBallers, a violent gang whose members engage in drug trafficking, robbery, and systematic violence against rivals and anyone perceived to have disrespected the gang.  Gang members also openly celebrate their criminal conduct through music and on social media.

On August 5, 2025, WEST, WRIGHT, and other gang members got into an altercation with Herrera, the victim, in front of a Bronx store.  In the days that followed, WEST and WRIGHT discussed killing Herrera in retaliation for the perceived slight.  On August 7, 2025, DAWKINS—wearing a mask and all-black clothing—approached Herrera on a busy sidewalk and shot him in the side of the head at point-blank range, killing him, before fleeing the scene.  The murder is captured on video:

*                *                *

DAWKINS, 18, of Edison, New Jersey; WEST, 23, of the Bronx, New York; and WRIGHT, 19, of the Bronx, New York, are each charged with one count of racketeering conspiracy, which carries a maximum sentence of life in prison as to DAWKINS and WEST, and 20 years in prison as to WRIGHT.  WEST and WRIGHT are also charged with conspiracy to commit murder in aid of racketeering, which carries a maximum sentence of 10 years in prison.  Additionally, WEST is charged with murder in aid of racketeering, which carries a maximum penalty of death or life in prison, and a mandatory minimum penalty of life in prison, and with a firearms offense, which carries a maximum penalty of life in prison.

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

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

This case is being handled by the Office’s Violent Organizations and Crime Unit. Assistant U.S. Attorneys Patrick R. Moroney, Robert S. Ruff, and Joe Zabel are in charge of the prosecution.

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

1. ^

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

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the New York Field Division for the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), Bryan DiGirolamo, announced today the unsealing of a Complaint charging ANDY DAVID PALACIOS ORTIZ in a conspiracy to commit armed robberies in January 2026 of two New York stores that sold collectible Pokémon trading cards.  PALACIOS was arrested today and presented before Magistrate Judge Barbara Moses.

“As alleged, Andy David Palacios Ortiz engineered and participated in brazen armed robberies in New York that resulted in the theft of over $100,000 in Pokémon cards, and terrified multiple store employees and customers,” said U.S. Attorney Jay Clayton.  “Gun violence is a threat to the safety and security of our neighborhoods, and Palacios now stands charged with serious federal crimes.  Would-be perpetrators should know: you cannot commit robberies against New Yorkers and get away with it.”

“These alleged robberies were not simply thefts targeting collectibles—they were violent crimes that left victims fearing for their safety,” said ATF Special Agent in Charge Bryan DiGirolamo.  “The successful identification and arrest of dangerous offenders is only possible through close coordination between federal, state, and local law enforcement.  Thanks to the hard work of ATF/NYPD Strategic Pattern Technical Apprehension Group (SPARTA), the NYPD’s Manhattan and Queens Robbery Squads & the U.S. Attorney’s Office for the Southern District of New York.  We are committed to our shared mission to protect the public from violent crime.”

As alleged in the Complaint unsealed today in Manhattan federal court:(1)

On or about January 9, 2026, multiple masked individuals entered a collectible trading card store in Queens, New York, brandished a gun at store employees and customers, and stole Pokémon cards and cash.  Less than a week later, on or about January 14, 2026, multiple masked individuals entered a Pokémon trading card and merchandise store in lower Manhattan, New York, and held store employees and dozens of customers at gunpoint while they robbed the store of Pokémon cards and cash, including by using a hammer to break open a glass display case holding some of the store’s most valuable Pokémon cards.  The Pokémon merchandise stolen by the robbers in the two robberies is valued in excess of $100,000. 

PALACIOS organized and participated in the commission of both robberies.  In particular, PALACIOS helped plan the robberies by surveilling the stores, identifying the most valuable Pokémon cards inside, and communicating that information to his co-conspirators.  

On or about January 12, 2026, two days before the Manhattan robbery, PALACIOS used his cellphone to take pictures or video of various items behind the glass display case where the robbery eventually took place, as shown in the surveillance images below. 

PALACIOS also participated in the commission of the robberies by, among other things, recruiting another co-conspirator who drove the robbers to and from the robberies.  PALACIOS also sold some of the stolen Pokémon cards after the robberies for thousands of dollars.

*                *                *

PALACIOS, 28, of Flushing, New York, has been charged with one count of Hobbs Act robbery and one count of Hobbs Act robbery conspiracy, each of which carries a maximum sentence of 20 years in prison. 

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

Mr. Clayton thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New York City Police Department for their assistance in this case. 

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Ariana Bloom and Samantha Fry are in charge of the prosecution.

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

1. ^

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

The Justice Department today announced an eight-count indictment charging Mohammad Baqer Saad Dawood Al-Saadi, a dual Iranian-Iraqi national, with terrorism-related offenses for his activities as an operative of Kata’ib Hizballah and Iran’s Islamic Revolutionary Guard Corps (IRGC), two U.S. designated foreign terrorist organizations (FTOs), including his involvement in nearly 20 attacks and attempted attacks throughout Europe and the United States. 

“As alleged in this indictment, Al-Saadi has been directly involved in terrorist operations and military decisions to attack U.S. and Israeli interests across the world and conspired with others to plan deadly attacks on American soil,” said Acting Attorney General Todd Blanche. “Now that he has been removed from his perch as an alleged commander of Kata’ib Hizballah with close ties to the Iranian regime and its proxies around the world, we look forward to vigorously prosecuting him under American law in an American courtroom.”

“As alleged, Mohammad Baqer Saad Dawood Al-Saadi worked with Iranian-backed terrorist organizations to direct successful attacks that targeted civilians and attempted to target civilians in the United States,” said U.S. Attorney Jay Clayton for the Southern District of New York.  “Al-Saadi claims to be part of the ‘resistance,’ a group that includes the IRGC, an Iran-based designated foreign terrorist organization.  These organizations have a stated goal of destroying our society and our collective commitment to freedom, security, and a better world for our children.  The IRGC’s claims are not just rhetoric, they are taking action around the world to undermine America and American values.  All Americans should recognize that we have sworn enemies and when your enemies tell you something, and when they act, you should know that they mean it.  For over 40 years, Iranian-backed groups, including the IRGC, have been committed to bringing terror to our shores, and our Office is proud to join with our colleagues across the Justice Department, the FBI, the NYPD, and many other partners to bring these groups to justice.”

“The FBI’s successful FTOC of Mohammad Al-Saadi, another high-value target responsible for mass global terrorism, is just the latest success in this administration’s historic work to bring terrorists to justice,” said FBI Director Kash Patel. “This was a righteous mission executed brilliantly by our agents, investigators, CIRG tactical units, interagency partners and our allies around the world who delivered yet again.  This FBI will use our vast resources to detect and stop acts of terrorism and will work with our Justice Department partners to make sure those who engage in such actions are held accountable.”

According to the allegations contained in the Indictment and other public court filings, Al-Saadi, a longtime operative of Kata’ib Hizballah and the IRGC, has furthered the terrorist goals of those groups since at least in or about 2017. Al-Saadi allegedly has worked closely with senior leaders of both terrorist organizations and, following U.S. airstrikes killing certain of those terrorist leaders, has directed others to exact retribution by killing U.S. citizens and U.S. political and military leaders. In addition, as alleged, in recent months, Al-Saadi has helped plan and direct approximately 18 attacks and attempted attacks across Europe on behalf of those terrorist organizations (the “European Terrorist Attacks”). Those attacks were carried out in the name of a purportedly new terrorist group with the pseudonym Harakat Ashab al-Yamin al-Islamiya, which is actually a front of Kata’ib Hizballah and other U.S. designated FTOs.

In addition, in or about March and April 2026, Al-Saadi attempted to carry out attacks in the United States, including against a synagogue in New York, New York. Most recently, on or about April 30, Al-Saadi tried to find someone in the United States who could carry out a terrorist attack and kill or injure individuals here. Specifically, that day Al-Saadi called an individual in the United States (SOI-1) and asked if SOI-1 knew someone who could “attack” in the United States, including by “burning, . . . or whatever he can,” including “killing.”  The next day, however, Al-Saadi, who was based in Iraq, was detained while traveling abroad.

On or about May 14, Al-Saadi was transferred into the custody of the FBI and transported to the United States, where he was brought to the Southern District of New York. Several electronic devices that Al-Saadi had been traveling with, including an Apple iPhone (the “Al-Saadi Phone”), were also transferred into the custody of the FBI. While in FBI custody en route to the United States, Al-Saadi waived his Miranda rights and voluntarily made statements to U.S. law enforcement agents. Al-Saadi stated, in substance and in part, that he was a leader of “the resistance,” which he explained encompasses the IRGC and its proxies, including Kata’ib Hizballah, Hizballah, and the Houthis, all of which are U.S. designated foreign terrorist organizations. As part of his role in “the resistance,” Al-Saadi stated that he was in charge of media and psychological warfare, including against the United States, as well as strategy and military intelligence. Al-Saadi was also responsible for media for Harakat Ashab al-Yamin al-Islamiya, as part of his role handling media for the “resistance.” Al-Saadi explained that the propaganda videos of the European Terrorist Attacks were part of the “psychological warfare” that “the resistance” was waging against the United States, designed to instill fear and terror in civilians. 

Al-Saadi also described his close relationships with the current and former leadership of the IRGC.  Al-Saadi said he was like a son of Qasem Soleimani, the longtime commander of the IRGC Quds Force (IRGC-QF) who was killed during a U.S. airstrike in or about 2020. According to Al-Saadi, prior to Soleimani’s death, Al-Saadi constantly traveled with him and was supposed to be driving Soleimani to meet Abu Mahdi al-Muhandis, then the leader of Kata’ib Hizballah, the day that Soleimani and al-Muhandis were killed in a U.S. airstrike.  Al-Saadi further stated that he was also close with Iran’s former Supreme Leader, Ayatollah Ali Khamenei. Al-Saadi explained that approximately three days before the current conflict with Iran began on or about Feb. 28 and Khamenei was killed, Al-Saadi met with Khamenei in Iran.

Al-Saadi’s social media accounts and the Al-Saadi Phone also contain evidence of Al-Saadi’s allegedly longstanding role supporting the IRGC, Kata’ib Hizballah, and Hizballah, as well as of his direct involvement in the planning, execution, and promotion of the European Terrorist Attacks.

For example, the Al-Saadi phone contains videos and photos of Al-Saadi meeting with the leadership of the IRGC, Kata’ib Hizballah, and the Houthis; images glorifying the IRGC and Hizballah; and videos and photos reflecting Al-Saadi’s own role as a commander in Kata’ib Hizballah, with access to machineguns and other dangerous weapons, including a video of Al-Saadi meeting with Soleimani (the former leader of the IRGC-QF) and Akram ‘Abbas al-Kabi (a U.S.-designated terrorist and one of the main operatives in Iraq of the IRGC-QF) in what appears to be an underground operations center. Below are screenshots from the video, showing (i) from left to right, al-Kabi, Soleimani, and Al-Saadi together, and (ii) other individuals in the same room dressed in military uniforms.

Another photo, shown below, from on or about Feb. 12, 2024, of Al-Saadi standing in front of an array of machineguns in a conference room that Al-Saadi, in his post-arrest interview, stated was located in a building that at the time was used for “military intelligence” for “the resistance.” The room has a map on the wall of what appears to be the United States accompanied by a list of “legitimate targets” (redacted here) identifying a number of prominent former and current U.S. officials.

Al-Saadi’s social media accounts and the Al-Saadi Phone also contain evidence of Al-Saadi’s role in the planning, execution, and promotion of the European Terrorist Attacks. Al-Saadi participated in FaceTime calls with attackers as they were carrying out certain of the European Terrorist Attacks in real time, filmed those attacks as they were being conducted, helped create and disseminate propaganda videos of the attacks, discussed with a Kata’ib Hizballah member the need to engage in “psychological warfare” and the timing for certain of the attacks, and warned the Kata’ib Hizballah member about an attacker who had been arrested.

For example, on or about April 14, Al-Saadi received on an encrypted messaging application videos of two men dressed in hazmat suits, with the Harakat Ashab al-Yamin al-Islamiya logo taped to each suit, and a drone that appears to have two vials of white powder attached to it.  Screenshots from these videos are shown below. The content of these videos is consistent with the propaganda video that Harakat Ashab al-Yamin al-Islamiya posted on Telegram on or about April 16, 2026, in which it claimed that its members had attacked the Israeli Embassy in London using drones that were loaded with dangerous carcinogenic and radioactive materials. 

A video from on or about April 18 — the day of one of the European Terrorist Attacks against a synagogue in London — of Al-Saadi and approximately three or four other men on a FaceTime video call. The video call is projected onto a large screen against the background of the Harakat Ashab al-Yamin al-Islamiyah logo. Al-Saadi is recording the attack through the call. In the video, one of the men, in English, instructs the individual on the other end of the call to execute the attack, directing that individual to take a lighter and “light one in your hand,” “light it” and “throw the fourth one.” Below is a screenshot from the video, with Al-Saadi, filming the attack, circled in red: 

The Al-Saadi Phone also contains evidence that the European Terrorist Attacks were conducted on behalf of and in coordination with Kata’ib Hizballah and related terrorist organizations, and that Harakat Ashab al-Yamin al-Islamiya was just a front of those organizations. For example, one of Al-Saadi’s primary phone contacts is a member of Kata’ib Hizballah (the “Kata’ib Hizballah Contact”), with whom Al-Saadi was constantly in touch during the European Terrorist Attacks. Al-Saadi exchanged with the Kata’ib Hizballah Contact propaganda videos of certain of the European Terrorist Attacks, which Al-Saadi instructed the Kata’ib Hizballah Contact to post on news outlets. In doing so, Al-Saadi explained that “[t]he most important thing is that within the psychological warfare, they [referring to Harakat Ashab al-Yamin al-Islamiya’s messages] are useful,” and that “anything that distracts the enemy is useful.”  For example, on or about April 29, 2026 — the day two Jewish men, including a dual U.S.-British citizen, were stabbed in London in one of the European Terrorist Attacks — Al-Saadi instructed the Kata’ib Hizballah Contact to “post it in the news[,] important,” referring to video footage of that attack, including a propaganda video that Harakat Ashab al-Yamin al-Islamiya posted on Telegram in which it claimed credit for that attack. That same day, Al-Saadi sent the following message to the Kata’ib Hizballah Contact:  “If God grants us success tonight, there will be a shooting at a restaurant.”  Al-Saadi, however, was detained shortly after he sent that message.

*               *                *

Al-Saadi, 32, of Iraq and Iran, has been charged with: (i) conspiring to provide material support to Kata’ib Hizballah, a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (ii) conspiring to provide material support to the IRGC, a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (iii) conspiring to provide material support for acts of terrorism, which carries a maximum penalty of 15 years in prison; (iv) providing material support for acts of terrorism, which carries a maximum penalty of 15 years in prison; (v) attempted acts of terrorism transcending national boundaries, which carries a maximum penalty of life in prison, (vi) conspiring to bomb a place of public use, which carries a maximum penalty of life in prison; (vii) attempted destruction of property by means of fire or explosive, which carries a minimum penalty of five years in prison and a maximum penalty of 20 years in prison; and (viii) financing terrorism, which carries a maximum penalty of 20 years in prison.

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

FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies, and the FBI Washington Field Office’s Counterterrorism Division investigated the case. Assistance was provided by the Department of Justice’s National Security Division, Counterterrorism Section, the Office of International Affairs of the Justice Department’s Criminal Division, U.S. Customs and Border Protection, the NYPD, and the New York State Police. 

This prosecution is being handled by the National Security and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorneys Jeffrey W. Coyle and Sarah L. Kushner for the Southern District of New York are in charge of the prosecution, with assistance from Trial Attorney James Donnelly of the Counterterrorism Section of the Department of Justice’s National Security Division.

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

United States Attorney for the Southern District of New York, Jay Clayton, Acting Attorney General for the United States, Todd Blanche, Director of the Federal Bureau of Investigation (“FBI”), Kash Patel, Assistant Director in Charge of the New York Field Office of the FBI, James C. Barnacle, Jr., and Assistant Director in Charge of the Washington Field Office of the FBI, Darren Cox, announced today an eight-count indictment charging MOHAMMAD BAQER SAAD DAWOOD AL-SAADI, a dual Iranian-Iraqi national, with terrorism-related offenses for his activities as an operative of Kata’ib Hizballah and Iran’s Islamic Revolutionary Guard Corps (“IRGC”), two U.S. designated foreign terrorist organizations (“FTOs”), including his involvement in nearly 20 attacks and attempted attacks throughout Europe and the United States.  The case has been assigned to U.S. District Judge Colleen McMahon.   

“As alleged, Mohammad Baqer Saad Dawood Al-Saadi worked with Iranian-backed terrorist organizations to direct successful attacks that targeted civilians and attempted to target civilians in the United States,” said U.S. Attorney Jay Clayton.  “Al-Saadi claims to be part of the ‘resistance,’ a group that includes the IRGC, an Iran-based designated foreign terrorist organization.  These organizations have a stated goal of destroying our society and our collective commitment to freedom, security, and a better world for our children.  The IRGC’s claims are not just rhetoric, they are taking action around the world to undermine America and American values.  All Americans should recognize that we have sworn enemies and when your enemies tell you something, and when they act, you should know that they mean it.  For over 40 years, Iranian-backed groups, including the IRGC, have been committed to bringing terror to our shores, and our Office is proud to join with our colleagues across the Justice Department, the FBI, the NYPD, and many other partners to bring these groups to justice.”

“As alleged in this indictment, Al-Saadi has been directly involved in terrorist operations and military decisions to attack U.S. and Israeli interests across the world and conspired with others to plan deadly attacks on American soil,” said Acting Attorney General Todd Blanche.  “Now that he has been removed from his perch as an alleged commander of Kata’ib Hizballah with close ties to the Iranian regime and its proxies around the world, we look forward to vigorously prosecuting him under American law in an American courtroom.”

“The FBI’s successful FTOC of Mohammad Al-Saadi, another high-value target responsible for mass global terrorism, is just the latest success in this administration’s historic work to bring terrorists to justice,” said FBI Director Kash Patel.  “This was a righteous mission executed brilliantly by our agents, investigators, CIRG tactical units, interagency partners and our allies around the world who delivered yet again.  This FBI will use our vast resources to detect and stop acts of terrorism and will work with our Justice Department partners to make sure those who engage in such actions are held accountable.”

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

AL-SAADI, a longtime operative of Kata’ib Hizballah and the IRGC, has furthered the terrorist goals of those groups since at least in or about 2017.  AL-SAADI allegedly has worked closely with senior leaders of both terrorist organizations and, following U.S. airstrikes killing certain of those terrorist leaders, has directed others to exact retribution by killing U.S. citizens and U.S. political and military leaders.  In addition, as alleged, in recent months, AL-SAADI has helped plan and direct approximately 18 attacks and attempted attacks across Europe on behalf of those terrorist organizations (the “European Terrorist Attacks”).  Those attacks were carried out in the name of a purportedly new terrorist group with the pseudonym Harakat Ashab al-Yamin al-Islamiya, which is actually a front of Kata’ib Hizballah and other U.S. designated FTOs.

In addition, in or about March and April 2026, AL-SAADI attempted to carry out attacks in the United States, including against a synagogue in New York, New York.  Most recently, on or about April 30, 2026, AL-SAADI tried to find someone in the United States who could carry out a terrorist attack and kill or injure individuals here.  Specifically, that day AL-SAADI called an individual in the United States (“SOI-1”) and asked if SOI-1 knew someone who could “attack” in the United States, including by “burning, . . . or whatever he can,” including “killing.” The next day, however, AL-SAADI, who was based in Iraq, was detained while traveling abroad.

On or about May 14, 2026, AL-SAADI was transferred into the custody of the FBI and transported to the United States, where he was brought to the Southern District of New York.  Several electronic devices that AL-SAADI had been traveling with, including an Apple iPhone (the “AL-SAADI Phone”), were also transferred into the custody of the FBI.   While in FBI custody en route to the United States, AL-SAADI waived his Miranda rights and voluntarily made statements to U.S. law enforcement agents. AL-SAADI stated, in substance and in part, that he was a leader of “the resistance,” which he explained encompasses the IRGC and its proxies, including Kata’ib Hizballah, Hizballah, and the Houthis, all of which are U.S. designated foreign terrorist organizations.  As part of his role in “the resistance,” AL-SAADI stated that he was in charge of media and psychological warfare, including against the United States, as well as strategy and military intelligence.  AL-SAADI was also responsible for media for Harakat Ashab al-Yamin al-Islamiya, as part of his role handling media for the “resistance.”  AL-SAADI explained that the propaganda videos of the European Terrorist Attacks were part of the “psychological warfare” that “the resistance” was waging against the United States, designed to instill fear and terror in civilians. 

AL-SAADI also described his close relationships with the current and former leadership of the IRGC. AL-SAADI said he was like a son of Qasem Soleimani, the longtime commander of the IRGC Quds Force (“IRGC-QF”) who was killed during a U.S. airstrike in or about 2020.  According to AL-SAADI, prior to Soleimani’s death, AL-SAADI constantly traveled with him and was supposed to be driving Soleimani to meet Abu Mahdi al-Muhandis, then the leader of Kata’ib Hizballah, the day that Soleimani and al-Muhandis were killed in a U.S. airstrike.  AL-SAADI further stated that he was also close with Iran’s former Supreme Leader, Ayatollah Ali Khamenei.  AL-SAADI explained that approximately three days before the current conflict with Iran began on or about February 28, 2026, and Khamenei was killed, AL-SAADI met with Khamenei in Iran.

AL-SAADI’s social media accounts and the AL-SAADI Phone also contain evidence of AL-SAADI’s allegedly longstanding role supporting the IRGC, Kata’ib Hizballah, and Hizballah, as well as of his direct involvement in the planning, execution, and promotion of the European Terrorist Attacks.

For example, the AL-SAADI phone contains videos and photos of AL-SAADI meeting with the leadership of the IRGC, Kata’ib Hizballah, and the Houthis; images glorifying the IRGC and Hizballah; and videos and photos reflecting AL-SAADI’s own role as a commander in Kata’ib Hizballah, with access to machineguns and other dangerous weapons, including:

A video of AL-SAADI meeting with Soleimani (the former leader of the IRGC-QF) and Akram ‘Abbas al-Kabi (a U.S.-designated terrorist and one of the main operatives in Iraq of the IRGC-QF) in what appears to be an underground operations center.  Below are screenshots from the video, showing (i) from left to right, al-Kabi, Soleimani, and AL-SAADI together, and (ii) other individuals in the same room dressed in military uniforms.

A photo, shown below, from on or about February 12, 2024, of AL-SAADI standing in front of an array of machineguns in a conference room that AL-SAADI, in his post-arrest interview, stated was located in a building that at the time was used for “military intelligence” for “the resistance.”  The room has a map on the wall of what appears to be the United States accompanied by a list of “legitimate targets” (redacted here) identifying a number of prominent former and current U.S. officials:

AL-SAADI’s social media accounts and the AL-SAADI Phone also contain evidence of AL-SAADI’s role in the planning, execution, and promotion of the European Terrorist Attacks. As described further below, AL-SAADI participated in FaceTime calls with attackers as they were carrying out certain of the European Terrorist Attacks in real time, filmed those attacks as they were being conducted, helped create and disseminate propaganda videos of the attacks, discussed with a Kata’ib Hizballah member the need to engage in “psychological warfare” and the timing for certain of the attacks, and warned the Kata’ib Hizballah member about an attacker who had been arrested.

For example, on or about April 14, 2026, AL-SAADI received on an encrypted messaging application videos of two men dressed in hazmat suits, with the Harakat Ashab al-Yamin al-Islamiya logo taped to each suit, and a drone that appears to have two vials of white powder attached to it.  Screenshots from these videos are shown below.  The content of these videos is consistent with the propaganda video that Harakat Ashab al-Yamin al-Islamiya posted on Telegram on or about April 16, 2026, in which it claimed that its members had attacked the Israeli Embassy in London using drones that were loaded with dangerous carcinogenic and radioactive materials. 

A video from on or about April 18, 2026—the day of one of the European Terrorist Attacks against a synagogue in London—of AL-SAADI and approximately three or four other men on a FaceTime video call.  The video call is projected onto a large screen against the background of the Harakat Ashab al-Yamin al-Islamiyah logo.  AL-SAADI is recording the attack through the call.  In the video, one of the men, in English, instructs the individual on the other end of the call to execute the attack, directing that individual to take a lighter and “light one in your hand,” “light it” and “throw the fourth one.”  Below is a screenshot from the video, with AL-SAADI, filming the attack, circled in red: 

The AL-SAADI Phone also contains evidence that the European Terrorist Attacks were conducted on behalf of and in coordination with Kata’ib Hizballah and related terrorist organizations, and that Harakat Ashab al-Yamin al-Islamiya was just a front of those organizations.  For example, one of AL-SAADI’s primary phone contacts is a member of Kata’ib Hizballah (the “Kata’ib Hizballah Contact”), with whom AL-SAADI was constantly in touch during the European Terrorist Attacks.  AL-SAADI exchanged with the Kata’ib Hizballah Contact propaganda videos of certain of the European Terrorist Attacks, which AL-SAADI instructed the Kata’ib Hizballah Contact to post on news outlets.  In doing so, AL-SAADI explained that “[t]he most important thing is that within the psychological warfare, they [referring to Harakat Ashab al-Yamin al-Islamiya’s messages] are useful,” and that “anything that distracts the enemy is useful.” For example, on or about April 29, 2026—the day two Jewish men, including a dual U.S.-British citizen, were stabbed in London in one of the European Terrorist Attacks—AL-SAADI instructed the Kata’ib Hizballah Contact to “post it in the news[,] important,” referring to video footage of that attack, including a propaganda video that Harakat Ashab al-Yamin al-Islamiya posted on Telegram in which it claimed credit for that attack.  That same day, AL-SAADI sent the following message to the Kata’ib Hizballah Contact: “If God grants us success tonight, there will be a shooting at a restaurant.”  AL-SAADI, however, was detained shortly after he sent that message.

*               *                *

AL-SAADI, 32, of Iraq and Iran, has been charged with: (i) conspiring to provide material support to Kata’ib Hizballah, a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (ii) conspiring to provide material support to the IRGC, a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (iii) conspiring to provide material support for acts of terrorism, which carries a maximum penalty of 15 years in prison; (iv) providing material support for acts of terrorism, which carries a maximum penalty of 15 years in prison; (v) attempted acts of terrorism transcending national boundaries, which carries a maximum penalty of life in prison, (vi) conspiring to bomb a place of public use, which carries a maximum penalty of life in prison; (vii) attempted destruction of property by means of fire or explosive, which carries a mandatory minimum term of five years in prison and a maximum penalty of 20 years in prison; and (viii) financing terrorism, which carries a maximum penalty of 20 years in prison.

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

Mr. Clayton praised the outstanding investigative work of FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies, and the FBI Washington Field Office, Counterterrorism Division, as well as the assistance of the Department of Justice’s National Security Division, Counterterrorism Section, the Office of International Affairs of the Justice Department’s Criminal Division, U.S. Customs and Border Protection, the NYPD, the New York State Police, and the Department of State. 

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jeffrey W. Coyle and Sarah L. Kushner are in charge of the prosecution, with assistance from Trial Attorney James Donnelly of the Counterterrorism Section of the Department of Justice’s National Security Division.

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

1. ^

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

Jonathan Loadholt, 37, of Staten Island, New York, was sentenced today to 10 years in prison for his participation in a plot directed by the Government of Iran targeting Masih Alinejad, a journalist, author, and human rights activist. Loadholt previously pled guilty to one count of conspiracy to commit stalking and one count of conspiracy to commit money laundering before U.S. District Judge Lewis J. Liman, who imposed today’s sentence.

“Tehran attempted to murder a U.S. journalist in the United States simply because she exposed a few of that regime’s many abuses,” said Assistant Attorney General for National Security John A. Eisenberg. “The defendant now stands convicted and sentenced to a lengthy prison sentence for his role in this plot. The Department and its colleagues will work tirelessly to protect Americans and to seek justice when our laws are broken.”

“The Government of Iran has repeatedly attempted to locate and murder Masih Alinejad, right here in New York City,” said U.S. Attorney Jay Clayton for the Southern District of New York. “The Government of Iran tried to silence Ms. Alinejad because of her efforts to stand up to the Iranian regime and expose its discriminatory treatment of women, corruption, and human rights abuses. While this plot was directed from Iran, the would-be assassins were American citizens who agreed to kill Ms. Alinejad for money — out of greed. Today’s sentence should be a serious warning to anyone who tries to profit by carrying out the wishes of a hostile foreign regime on United States soil.” 

“With today’s sentencing, Jonathan Loadholt will pay the price for participating in a plot orchestrated by Iran to kill a journalist and human rights activist who criticized the Iranian government’s policies,” said FBI Assistant Director Donald Holstead. “The FBI will use all our resources to detect and prevent anyone working for foreign powers who attempts to harm individuals living in the United States, and we will coordinate closely with the Justice Department to make sure such criminals face the full weight of American justice.”

“Jonathan Loadholt served as a hired gun to stalk, surveil, and ultimately assassinate Masih Alinejad — a United States citizen — on behalf of the IRGC,” said FBI Assistant Director in Charge James C. Barnacle Jr. “The FBI New York Joint Terrorism Task Force disrupted and arrested him before he could carry out his plan.  The FBI will squash all attempts to silence critics of oppressive regimes on American soil.”

As reflected in the charging instruments, other public filings, and statements in public court proceedings:

In 2024, Loadholt’s friend and co-defendant, Carlisle Rivera, also known as “Pop,” a convicted murderer, was hired by Rivera’s criminal confederate, Farhad Shakeri, to murder Masih Alinejad on instructions from high-ranking members of the Islamic Revolutionary Guard Corps (IRGC). The IRGC is a military and intelligence organization that directly reports to the Supreme Leader of the Islamic Republic of Iran and is the Government of Iran’s primary instrument for providing financial and lethal aid to proxy terror groups in the Middle East.  Among its activities, the IRGC plots and conducts attack operations outside Iran targeting, among others, U.S. citizens residing abroad and in the United States.  Ms. Alinejad is one of the IRGC’s principal targets. The IRGC and the Government of Iran’s intelligence services have long sought to kidnap or murder Ms. Alinejad because of her efforts to promote gender equality and civil liberties in Iran and to expose the regime’s corruption, oppression, and terrorism to the international community. In 2020 and 2021, Iranian intelligence officials and assets plotted to kidnap Ms. Alinejad in the U.S. for rendition to Iran; then, in 2022, the IRGC hired powerful, violent members of the Russian Mob to murder Ms. Alinejad.  After those efforts failed, the IRGC turned to Shakeri, who hired Rivera, who in turn recruited Loadholt to assist him, to kill Ms. Alinejad.

Shakeri offered Rivera $100,000 for he and Loadholt to locate and kill Ms. Alinejad, and Rivera agreed. Loadholt was recruited into the plot by Rivera and, using money sent by Shakeri, Rivera and Loadholt conducted surveillance on Ms. Alinejad with the aim of killing her.  Using money sent by Shakeri, Rivera and Loadholt purchased a firearm and “burner” cellphones. Loadholt and Rivera spent several months attempting to find and kill Ms. Alinejad, using Loadholt’s car and fake license plates, including by following her to a public speaking event at Fairfield University and repeatedly stalking the Brooklyn house where Shakeri and the IRGC believed Ms. Alinejad lived.    

During their efforts to locate and kill Ms. Alinejad, Loadholt and Rivera shared messages about their progress and photographs relating to their murder plot.  For example, in February 2024, Loadholt and Rivera messaged about an incoming payment from Shakeri, and then traveled to Fairfield University, where Ms. Alinejad was scheduled to appear, and took photographs on campus. In July 2024, Loadholt and Rivera exchanged messages discussing their expected upfront payment for murdering Ms. Alinejad.  During those messages, Loadholt expressed frustration about the apparent absence of a $10,000 advance, partial payment for Ms. Alinejad’s murder, writing to Rivera “So no 10 up front I’m guessing??” and, after Rivera confirmed no upfront payment had been made, Loadholt responded, “I’m so frustrated son I’m like ready to jump out the window.”

On November 7, 2024, before he and Rivera could complete their task of killing Ms. Alinejad, Loadholt was arrested. At Loadholt’s residence, law enforcement agents recovered, among other things, more than two dozen rounds of ammunition.

In addition to the prison term, Loadholt was sentenced to three years of supervised release.

Loadholt is the second defendant to be sentenced in this case. In January 2026, Rivera was sentenced to 15 years in prison by Judge Liman, after previously having pled guilty to one count of conspiracy to commit murder-for-hire.  Shakeri remains at large.

The case was investigated by FBI’s New York Joint Terrorism Task Force, which principally consists of agents and analysts from the FBI and detectives from the New York City Police Department, and the FBI Washington Field Office. U.S. Attorney Clayton thanked the Department of Justice’s National Security Division, the U.S. Customs and Border Protection New York Field Office, the Drug Enforcement Administration New York Division, and the New York State Police.

This case is being handled by the U.S. Attorney’s Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Jacob H. Gutwillig and Michael D. Lockard for the Southern District of New York are in charge of the prosecution, with assistance from Leslie Esbrook of the Counterintelligence and Export Control Section.

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Attorney General for National Security, John A. Eisenberg, Assistant Director of the Counterterrorism Division of the Federal Bureau of Investigation (“FBI”), Donald Holstead, and Assistant Director in Charge of the New York Field Office of the FBI, James C. Barnacle, Jr., announced that JONATHAN LOADHOLT was sentenced today to 10 years in prison for his participation in a plot directed by the Government of Iran targeting Masih Alinejad, a journalist, author, and human rights activist.  LOADHOLT previously pled guilty to one count of conspiracy to commit stalking and one count of conspiracy to commit money laundering before U.S. District Judge Lewis J. Liman, who imposed today’s sentence. 

“The Government of Iran has repeatedly attempted to locate and murder Masih Alinejad, right here in New York City,” said U.S. Attorney Jay Clayton.  “The Government of Iran tried to silence Ms. Alinejad because of her efforts to stand up to the Iranian regime and expose its discriminatory treatment of women, corruption, and human rights abuses.  While this plot was directed from Iran, the would-be assassins were American citizens who agreed to kill Ms. Alinejad for money—out of greed.  Today’s sentence should be a serious warning to anyone who tries to profit by carrying out the wishes of a hostile foreign regime on United States soil.” 

“Tehran attempted to murder a U.S. journalist in the United States simply because she exposed a few of that regime’s many abuses,” said Assistant Attorney General for National Security John A. Eisenberg.  “The defendant now stands convicted and sentenced to a lengthy prison sentence for his role in this plot.  The Department and its colleagues will work tirelessly to protect Americans and to seek justice when our laws are broken.”

“With today’s sentencing, Jonathan Loadholt will pay the price for participating in a plot orchestrated by Iran to kill a journalist and human rights activist who criticized the Iranian government’s policies,” said FBI Assistant Director Donald Holstead.  “The FBI will use all our resources to detect and prevent anyone working for foreign powers who attempts to harm individuals living in the United States, and we will coordinate closely with the Justice Department to make sure such criminals face the full weight of American justice.”

“Jonathan Loadholt served as a hired gun to stalk, surveil, and ultimately assassinate Masih Alinejad—a United States citizen—on behalf of the IRGC,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI New York Joint Terrorism Task Force disrupted and arrested him before he could carry out his plan.  The FBI will squash all attempts to silence critics of oppressive regimes on American soil.”

As reflected in the charging instruments, other public filings, and statements in public court proceedings:

In 2024, LOADHOLT’s friend and co-defendant, CARLISLE RIVERA, a/k/a “Pop,” a convicted murderer, was hired by RIVERA’s criminal confederate, FARHAD SHAKERI, to murder Masih Alinejad on instructions from high-ranking members of the Islamic Revolutionary Guard Corps (“IRGC”).   The IRGC is a military and intelligence organization that directly reports to the Supreme Leader of the Islamic Republic of Iran and is the Government of Iran’s primary instrument for providing financial and lethal aid to proxy terror groups in the Middle East.  Among its activities, the IRGC plots and conducts attack operations outside Iran targeting, among others, U.S. citizens residing abroad and in the United States.  Ms. Alinejad is one of the IRGC’s principal targets.  The IRGC and the Government of Iran’s intelligence services have long sought to kidnap or murder Ms. Alinejad because of her efforts to promote gender equality and civil liberties in Iran and to expose the regime’s corruption, oppression, and terrorism to the international community.  In 2020 and 2021, Iranian intelligence officials and assets plotted to kidnap Ms. Alinejad in the U.S. for rendition to Iran; then, in 2022, the IRGC hired powerful, violent members of the Russian Mob to murder Ms. Alinejad.  After those efforts failed, the IRGC turned to SHAKERI, who hired RIVERA, who in turn recruited LOADHOLT to assist him, to kill Ms. Alinejad. 

SHAKERI offered RIVERA $100,000 for he and LOADHOLT to locate and kill Ms. Alinejad, and RIVERA agreed.  LOADHOLT was recruited into the plot by RIVERA and, using money sent by SHAKERI, RIVERA and LOADHOLT conducted surveillance on Ms. Alinejad with the aim of killing her.  Using money sent by SHAKERI, RIVERA and LOADHOLT purchased a firearm and “burner” cellphones.  LOADHOLT and RIVERA spent several months attempting to find and kill Ms. Alinejad, using LOADHOLT’s car and fake license plates, including by following her to a public speaking event at Fairfield University and repeatedly stalking the Brooklyn house where SHAKERI and the IRGC believed Ms. Alinejad lived.    

During their efforts to locate and kill Ms. Alinejad, LOADHOLT and RIVERA shared messages about their progress and photographs relating to their murder plot.  For example, in February 2024, LOADHOLT and RIVERA messaged about an incoming payment from SHAKERI, and then traveled to Fairfield University, where Ms. Alinejad was scheduled to appear, and took photographs on campus.  In July 2024, LOADHOLT and RIVERA exchanged messages discussing their expected upfront payment for murdering Ms. Alinejad. During those messages, LOADHOLT expressed frustration about the apparent absence of a $10,000 advance, partial payment for Ms. Alinejad’s murder, writing to RIVERA “So no 10 up front I’m guessing??” and, after RIVERA confirmed no upfront payment had been made, LOADHOLT responded, “I’m so frustrated son I’m like ready to jump out the window.”

On November 7, 2024, before he and RIVERA could complete their task of killing Ms. Alinejad, LOADHOLT was arrested.  At LOADHOLT’s residence, law enforcement agents recovered, among other things, more than two dozen rounds of ammunition.

*                *                *

In addition to the prison term, LOADHOLT, 37, of Staten Island, New York, was sentenced to three years of supervised release.

LOADHOLT is the second defendant to be sentenced in this case.  In January 2026, RIVERA was sentenced to 15 years in prison by Judge Liman, after previously having pled guilty to one count of conspiracy to commit murder-for-hire. SHAKERI remains at large.

Mr. Clayton praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents and analysts from the FBI and detectives from the New York City Police Department, and the FBI Washington Field Office.  Mr. Clayton also thanked the Department of Justice’s National Security Division, the U.S. Customs and Border Protection New York Field Office, the Drug Enforcement Administration New York Division, and the New York State Police. 

This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jacob H. Gutwillig and Michael D. Lockard are in charge of the prosecution, with assistance from Leslie Esbrook of the Counterintelligence and Export Control Section. 

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of a complaint charging MICHELE SPAGNUOLO, a/k/a “AlphaRaccoon,” a software engineer at Google, with commodities fraud, wire fraud, and money laundering arising from his scheme to misappropriate confidential information from his employer and use that information to place a series of profitable Google-related trades on a prediction market platform.  SPAGNUOLO, who resides in Switzerland, was presented today before U.S. Magistrate Judge Sarah Netburn in the Southern District of New York.

“Today’s charges reinforce a decades-old message: corporate insiders cannot use confidential business information to turn a profit in our markets,” said U.S. Attorney Jay Clayton.  “As alleged, Spagnuolo violated the duties he owed to his employer and used Google’s confidential business information to make more than $1.2 million in trading profits on Polymarket.  Insider trading compromises the integrity of our markets, and the American people want this greed-driven conduct investigated and prosecuted.”

“Michele Spagnuolo allegedly abused his elevated access to confidential trends to place bets with nonpublic information and receive more than one million dollars in unlawful profits,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI remains dedicated to searching for fraudsters who betray their employer for personal financial gains.”

As alleged in the Complaint unsealed today in Manhattan federal court:(1)

SPAGNUOLO is a software engineer at Google.  In connection with his role, SPAGNUOLO had access to Google’s internal data systems, including an internal software tool that provided him with access to confidential, nonpublic data.  That software tool bore a banner that stated, in part, “Google Confidential” in red text.  Indeed, SPAGNUOLO certified his understanding of various Google confidentiality and ethics policies.  SPAGNUOLO created an account on Polymarket, which is a prediction marketplace, in May 2024.  That account was known as “AlphaRaccoon.”  Shortly after accessing Google’s internal information, SPAGNUOLO used the AlphaRaccoon account to place trades in various markets on Polymarket.  In total, from on or about October 15, 2025, through on or about December 4, 2025, SPAGNUOLO used the AlphaRaccoon account to risk approximately $2,754,092 on markets related to Google’s internal information.  Soon after Google’s information was publicly announced, and the markets resolved, SPAGNUOLO’s AlphaRaccoon account profited approximately $1.2 million based on his use of inside information in connection with bets placed on Polymarket. 

*                *                *

SPAGNUOLO, 36, an Italian citizen residing in Switzerland, is charged with one count of violating the Commodity Exchange Act, which carries a maximum sentence of 10 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of money laundering, which carries a maximum sentence of 20 years in prison.

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

Mr. Clayton praised the outstanding work of the FBI.  

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

1. ^

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that PAUL JORGENSEN, the former Chief Revenue Officer of Doximity, was sentenced on May 21, 2026, by U.S. District Judge Katherine Polk Failla to 26 months in prison for committing securities fraud in connection with a multimillion-dollar scheme to trade in stock and options of Doximity based on inside information in advance of the company’s quarterly earnings calls. 

“While employed as a senior executive at Doximity, Paul Jorgensen repeatedly used Doximity’s confidential information to trade in advance of the company’s quarterly earnings calls, earning himself more than $2.5 million in illegal profits,” said U.S. Attorney Jay Clayton.  “Insider trading destroys faith in the fairness and integrity of our markets.  This Office is committed to protecting market integrity and rooting out bad actors.  As this prosecution and sentence make clear, executives who trade on their company’s confidential information will be prosecuted.” 

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

JORGENSEN engaged in a scheme to reap illegal profits by trading on material nonpublic information regarding Doximity, a publicly-traded company, in violation of the duties of trust and confidence owed to the company and its shareholders.

Doximity is an online networking service for medical professionals that trades on the New York Stock Exchange under the ticker symbol “DOCS.”  JORGENSEN joined Doximity in 2017 and became Chief Revenue Officer in 2022.  As a senior executive at Doximity, JORGENSEN had access to confidential information about Doximity’s financial outlook, performance, and earnings results, and owed a duty of trust and confidence to the company.  Doximity restricted its employees from trading in the lead-up to the company’s quarterly earnings calls, and from engaging in options trading.  Doximity further required all employees to hold their Doximity shares in company-monitored brokerage accounts.

In July 2022, as Chief Revenue Officer, JORGENSEN became aware that Doximity’s add-on sales to clients, referred to as “upsells,” had declined over the previous quarter.  On July 28, 2022, JORGENSEN attended a Board meeting in advance of the upcoming earnings call in which the company’s negative results were discussed.  Following the Board meeting, JORGENSEN texted a close family member that he was “[n]ot selling [his] DOCS shares” because he had “non-public confidential info and it’s just not right to sell.”  Two days later, however, after JORGENSEN learned that he had been reassigned to a sales role at the company, JORGENSEN texted the same family member that he “decided to sell [his] DOCS shares” because he needed to “protect us first and foremost.”  The following day, JORGENSEN sold 61,162 shares of Doximity that he secretly held in a personal brokerage account.

During the company’s quarterly earnings call on August 4, 2022, Doximity publicly announced its negative results regarding upsells and lowered its annual guidance by six percent.  Doximity’s share price fell by approximately seven percent, and JORGENSEN avoided losses of more than $300,000.

In 2023, JORGENSEN again traded based on Doximity’s confidential information. In July 2023, JORGENSEN became aware that Doximity’s upsells had continued to decline over the previous quarter.  In addition, on July 13, 2023, JORGENSEN learned that he was being terminated as part of a larger round of layoffs, and that the layoffs would be announced on the company’s upcoming quarterly earnings call.  In advance of the earnings call, JORGENSEN sold 15,000 shares of Doximity stock, earning $114,000 in illicit profits, and 1,300 call options, earning an additional $200,000 in illicit profits.  JORGENSEN also purchased 4,700 put options using his personal brokerage account. 

During the company’s quarterly earnings call on August 8, 2023, Doximity publicly announced its company layoffs and negative results regarding upsells and lowered its annual guidance by eight to nine percent.  Doximity’s share price fell by approximately 23 percent.  Following the earnings call, JORGENSEN closed out his put position, earning nearly two million dollars in illicit profits.  JORGENSEN was terminated from Doximity in August 2023.

*               *                *

In addition to the prison sentence, JORGENSEN, 53, of Charlotte, North Carolina, was sentenced to two years of supervised release and ordered to pay $2,532,775.52 in forfeiture.

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

The case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorney Alexandra Rothman is in charge of the prosecution.

Sean S. Buckley, Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515, announced today that JOHN ARTHUR HANRATTY, the founder and managing director of a multimillion-dollar municipal tax lien investment firm, was sentenced by U.S. District Judge Lorna G. Schofield to 12 months and a day in prison for his role in a fraudulent scheme to steal nearly $20 million from a Federal Deposit Insurance Corporation (“FDIC”)-insured bank.  In August 2025, HANRATTY was convicted following a jury trial of wire fraud, bank fraud, and money laundering.   

“John Arthur Hanratty scammed his bank by falsely claiming to own millions of dollars of assets to secure more than $20 million in loan advances,” said Attorney for the United States Sean S. Buckley.  “In reality, the bank was left without the promised collateral and suffered millions in losses.  The defendant’s conduct, which occurred over the course of years, jeopardized the bank’s lending ability.  Today’s sentence holds the defendant accountable for his conduct.” 

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

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

Between 2017 and 2021, HANRATTY participated in a fraudulent scheme to steal money from an FDIC-insured bank (“Victim Bank-1”) by drawing down on commercial lines of credit that had been extended to Ebury Street Capital.  Specifically, HANRATTY made materially false statements about the tax lien collateral pledged to Victim Bank-1, inflating the value of that collateral by millions of dollars by adding supposed assets that Ebury never owned.  As a result of HANRATTY’s misstatements, Victim Bank-1 was defrauded of over $20 million.  In addition, HANRATTY falsely told both his investors and Victim Bank-1 that the tax lien collateral was managed by an independent third-party custodian, when, in reality, that was not true.  HANRATTY fabricated records to hide the truth about Ebury’s actual assets and the independent custodian.  The defendant’s fraud ultimately resulted in nearly $20 million of losses for Victim Bank-1. Ebury investors also lost more than $8 million in investment capital when the defendant’s fraud unraveled and Ebury collapsed.  After fraudulently obtaining money from Victim-1, the defendant laundered that money through his business accounts for his own ends.        

*                *                *

In addition to the prison term, HANRATTY, 51, of Little Silver, New Jersey, was sentenced to two   years of supervised release and ordered to forfeit approximately $17.7 million, with restitution to follow.   

Mr. Buckley praised the outstanding investigative work of the Federal Bureau of Investigation, and also thanked the FDIC Office of the Inspector General for their assistance.

The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Andrew Chan, Nicholas Chiuchiolo, Danielle Kudla, and Adam Sowlati are in charge of the prosecution, with assistance from Paralegal Specialist Alexander Ross.

“Moments ago, Daniel Sikkema was found guilty of hiring a hitman to murder his husband in cold blood,” said U.S. Attorney Jay Clayton.  “Amid contentious divorce proceedings with his then-husband, Daniel Sikkema used a burner phone line to callously order the killing of his husband in Rio de Janeiro, Brazil.  As a result of great investigative work by the FBI, Daniel Sikkema’s efforts to evade detection were thwarted.  The tragedy of Brent Sikkema’s death now has a meaningful measure of justice as a unanimous jury of New Yorkers has held Daniel Sikkema accountable for this senseless, cold-blooded murder.” 

United States Attorney for the Southern District of New York, Jay Clayton, announced the settlement of a lawsuit against ROCKLAND COUNTY (“ROCKLAND COUNTY”), which will result in the completion of 36 units of affordable rental housing within the County over the next five years.

The settlement under the Fair Housing Act (“FHA”) resolves a claim that ROCKLAND COUNTY breached a Voluntary Compliance Agreement and Conciliation Agreement (“VCA”), which it entered into in 2018 with the U.S. Department of Housing and Urban Development (“HUD”).  On March 4, 2026, the United States settled the lawsuit as to the VILLAGE OF SPRING VALLEY (“SPRING VALLEY”), the other defendant in the action, which was also a party to the VCA.

“We appreciate that Rockland County, along with its codefendant, the Village of Spring Valley, will build more affordable housing and finally resolve this long-running case,” said U.S. Attorney Jay Clayton.  “More affordable housing is good for everybody—by increasing the supply of affordable units, we can help bring high housing costs down across New York and the county.”

According to the Complaint filed in White Plains federal court and the Agreement entered by the court:

The VCA between HUD, SPRING VALLEY, and ROCKLAND COUNTY resolved a prior HUD investigation into allegations regarding a private developer who used HUD funds overseen by SPRING VALLEY and ROCKLAND COUNTY to build affordable housing, but unlawfully designed and marketed the resulting units almost exclusively for sale to White Hasidic Jewish prospective homebuyers, in violation of federal law.  Administrative complaints made to HUD alleged that SPRING VALLEY and ROCKLAND COUNTY became aware of allegations that the developer was excluding interested homebuyers based on protected characteristics, but failed to ensure that appropriate remedial steps were taken before the project was completed and the units were sold.

In 2018, SPRING VALLEY and ROCKLAND COUNTY entered into the VCA with HUD to resolve those administrative complaints.  The VCA required SPRING VALLEY and ROCKLAND COUNTY to build 62 units of affordable housing, meeting specified criteria for affordability by specified deadlines.  However, only four affordable units qualifying under the VCA were built by the time this lawsuit was filed in 2025, despite an amendment of the VCA in 2021 that provided SPRING VALLEY and ROCKLAND COUNTY with additional time to complete the required units.

The resolution between the United States and ROCKLAND COUNTY, in the form of a court-approved settlement agreement (the “Agreement”), was entered yesterday by U.S. District Judge Cathy Seibel.  The Agreement requires ROCKLAND COUNTY to ensure the completion of 36 affordable housing units by April 15, 2031.  Rental units are required to be occupied by households with incomes at or below 60% of the Area Median Income for Rockland County (at or below 80% in the event that the units are owned as opposed to rented), with deed restrictions or other legal measures to ensure continued affordability for at least 50 years.  The Agreement also requires ROCKLAND COUNTY to ensure appropriate monitoring of HUD grantees and continue to provide training regarding the FHA and related federal requirements.  ROCKLAND COUNTY also agreed to pay a $10,000 civil penalty.

The United States entered into a similar agreement with SPRING VALLEY on March 4, 2026, in which SPRING VALLEY agreed to build 22 affordable rental units by December 1, 2030. The four qualifying units built before 2025, when added to the 22 units to be built under the agreement with SPRING VALLEY, and the 36 units to be built under the agreement with ROCKLAND COUNTY, approved yesterday, will equal the total number of affordable units originally required under the VCA. With this agreement with ROCKLAND COUNTY, this case is now fully resolved.

Mr. Clayton thanked the staff of HUD’s Office of Fair Housing and Equal Opportunity for their assistance in this matter.

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

United States Attorney for the Southern District of New York, Jay Clayton, announced today that the founders and operators of StraightPath Venture Partners LLC (“StraightPath”) and its affiliated entities were sentenced to significant prison time for defrauding their investors, skimming money off the top, and violating their fiduciary duties.  MICHAEL CASTILLERO, a/k/a “Michael Alejandro,” and BRIAN MARTINSEN, who were also convicted of obstruction of justice, were each sentenced to 11 and 10 years in prison, respectively.  FRANCINE LANAIA was sentenced to 8 years.  CASTILLERO, MARTINSEN, and LANAIA were convicted in November 2025 following a two-week jury trial before U.S. District Judge Jesse M. Furman, who imposed today’s sentences.

“Our private markets are the lifeblood of small and medium-sized businesses as well as tomorrow’s global giants,” said U.S. Attorney Jay Clayton.  “Small and medium-sized business drive domestic employment.  Our global giants in tech, energy, finance, life sciences, and other industries contribute greatly to the welfare of every American and provide strength on the world stage.  Those companies, their investors, their employees, and all Americans benefit from our private markets.  We, along with our partners at the SEC and law enforcement, are committed to ensuring that our private markets function well and fairly, and we are committed to rooting out bad actors.  The federal prison sentences imposed today send a message that private market frauds will be met with vigorous criminal prosecution.”

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

From 2017 through April 2022, CASTILLERO, LANAIA, and MARTINSEN engaged in a scheme to defraud investors in nine related private funds known as the “StraightPath Funds.”  Using “boiler room”-style call centers, the defendants marketed the funds as opportunities to invest in privately held companies at favorable prices before anticipated public offerings.  Despite representing to investors that no upfront fees would be charged, the defendants acquired pre-IPO shares and resold them to investors at arbitrarily inflated markups without disclosure.  The defendants also misled investors regarding the nature of their investments and hid the involvement of CASTILLERO and LANAIA, who had been previously barred from the securities industry by the Financial Industry Regulatory Authority (“FINRA”).  Moreover, in order to evade detection of their scheme, CASTILLERO and MARTINSEN destroyed records and otherwise obstructed the efforts of the United States Securities and Exchange Commission (“SEC”) to uncover the defendants’ fraud on investors.

Through the scheme, CASTILLERO, LANAIA, and MARTINSEN acquired nearly $400 million from investors.  They pocketed approximately $25 million each over the course of the fraud, and they also diverted investor funds to pay their associates. Altogether, the defendants and their associates misappropriated approximately $130 million in investor funds, and spent the money on luxury goods, houses, cars, watches, and a boat.

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

*               *                *

In addition to the prison term, CASTILLERO, 48, of Palm City, Florida; LANAIA, 61, of Northport, New York; and MARTINSEN, 49, of Palm City, Florida, were each sentenced to 3 years of supervised release.  They were also ordered to pay restitution of $115 million. The defendants were also ordered to forfeit specific real and personal property they obtained as a result of the fraud, and to pay the following forfeiture amounts: Lanaia: $24,259,128.80; Martinsen: $25,355,714.43; and Castillero: $24,279,516.80.

Mr. Clayton praised the outstanding work of the U.S. Postal Inspection Service.  Mr. Clayton also thanked the U.S. Securities and Exchange Commission, which has filed parallel civil actions.

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

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

United States Attorney for the Southern District of New York Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced the arrests of eleven defendants in connection with a multimillion-dollar scheme to evade tolls and parking and traffic tickets using fraudulently obtained temporary license plates.  The defendants are charged in a five-count indictment with offenses including wire fraud and access device fraud. All eleven defendants were arrested between May 19, 2026 and May 20, 2026, and nine of the eleven are expected to appear in White Plains federal court before U.S. Magistrate Judge Victoria Reznik.  Felix DeJesus Jimenez is expected to be presented before U.S. Magistrate Judge Brian S. Meyers in the Eastern District of North Carolina.  RAMON ELIGIO DEJESUS PERALTA is expected to be presented before U.S. Magistrate Judge Marty Fulgueira Elfenbein in the Southern District of Florida.

“For over five years, the defendants allegedly conspired to use fraudulently obtained temporary license plates, or ‘temp tags,’ to avoid fees, tolls, and parking traffic tickets,” said U.S. Attorney Jay Clayton.  “Their schemes deprived New York State and New York City of millions of dollars in revenue.  Hard-working, honest New Yorkers were footing their bills.  This Office and our law enforcement partners are committed to protecting New Yorkers from fraud, waste, and abuse.  The defendants allegedly spent years scheming to avoid tolls and tickets.  Their bill has now come due.”

“These individuals allegedly turned temporary tags into tools for evading accountability, allowing drivers to dodge tolls, and lawful traffic penalties,” said FBI Assistant Director in Charge James C. Barnacle. “Investigations found approximately a total of $15 million in unpaid parking violations, tolls, and vehicle registrations. Not only were millions of dollars in unpaid violations uncovered, but investigators also found that certain temporary registrations and license plates were linked to multiple criminal offenses. The FBI will not tolerate bad actors violating government rules.”  

As alleged in the Indictments filed on May 13, 2026, in White Plains federal court:[1]

Licensed auto dealerships may issue temporary motor vehicle registrations (“temp tags” or “paper tags”) in connection with bona fide sales or leases of vehicles.  In recent years, individuals have abused this system by setting up sham auto dealerships to generate fraudulent temp tags—unconnected to bona fide sales or leases of cars—that are then sold in, among other places, the Southern District of New York.

From at least in or about June 2017 through at least in or about March 2024, Felix DeJesus Jimenez, Julio Frias, Bladimir Tomas Valdez, Alba Nellys Rodriguez Gonzalez, Jefrey RAPHAEL Herrera Espinal, Sammy Rodriguez Francisco, Xavier Rodriguez Francisco, Clarisa Rodriguez Francisco, Cindy Rey, Luciano Moises Estrella, and RAMON ELIGIO DEJESUS PERALTA participated in a scheme to defraud New York State and New York City of revenue from vehicle registration fees, tolls, parking enforcement, and traffic enforcement, through the use of fraudulent temp tags.

As part of the scheme, the defendants created a series of companies for which they obtained used motor vehicle dealer licenses in the States of New Jersey and Georgia (the “Dealerships”). The defendants and their co-conspirators used those Dealerships to generate a total of more than 100,000 temp tags, a significant portion of which were registered to addresses in the Southern District of New York, and which they sold in the Southern District of New York and elsewhere at prices ranging from approximately $50 to $250 per tag, producing millions of dollars in profits.  In selling temp tags, certain defendants represented at times, in sum and substance, that, by using a temp tag generated by a Dealership, customers would avoid having to pay tolls and/or tickets.  Since at least in or around 2017, temp tags issued by the Dealerships have incurred at least approximately $11,800,000 in unpaid parking and traffic tickets in New York City and at least approximately $3,100,000 in unpaid E-ZPass tolls in New York State.

Temp tags issued by the Dealerships have been the subject of numerous complaints lodged with the New York Police Department and other law enforcement agencies, including by victims who have received bills for tolls and tickets that they did not incur.  Additionally, temp tags issued by the Dealerships were involved in at least approximately 1,200 incidents reported to the NYPD, including at least six homicides.

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FELIX DEJESUS JIMENEZ, age 62, of Englewood, NJ, JULIO FRIAS, age 61, of Teaneck, NJ, BLADIMIR TOMAS VALDEZ, age 30, of Manhattan, NY, RAMON ELIGIO DEJESUS PERALTA, age 52, of Miami, FL, ALBA NELLYS RODRIGUEZ GONZALEZ, age 25, of Bergenfield, NJ, JEFREY RAPHEL HERRERA ESPINAL, age 26, of Yonkers, NY, SAMMY RODRIGUEZ FRANCISCO, age 25, of Yonkers, NY, XAVIER RODRIGUEZ FRANCISCO, age 23, of Waterbury, CT, CLARISA RODRIGUEZ FRANCISCO, age 27, of Yonkers, NY, CINDY REY, age 28, of Hazleton, PA, and LUCIANO MOISES ESTRELLA, age 42, of West Milford, NJ, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years’ imprisonment,  two counts of wire fraud, each of which carries a maximum sentence of 20 years’ imprisonment, one count of conspiracy to commit access device fraud, which carries a maximum sentence of 5 years’ imprisonment, and one count of access device fraud, which carries a maximum sentence of 10 years’ imprisonment.

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 each defendant will be determined by a judge.

Mr. Clayton praised the outstanding investigative work of the FBI’s New York Field Office, Westchester County Resident Agency, the New York Police Department, the New York State Troopers, the New Jersey Motor Vehicle Commission Special Investigations Unit, and the Georgia Department of Revenue Office of Special Investigations.

The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jake Sidransky, Benjamin Klein, Stephanie Simon, and Daniel Listwa are in charge of the prosecution.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation, James C. Barnacle, Jr., announced today the unsealing of an Indictment charging MOHD HAFIZ LOCKMAN, MOHD YUZAIMI YUSOF, and KHANH THUONG NGUYEN, three former senior employees of Telekom Malaysia (USA) Inc., the wholly owned U.S. subsidiary of Telekom Malaysia Berhad, with wire fraud conspiracy, wire fraud, and aggravated identity theft. The charges in the Indictment arise from an alleged scheme by the defendants to divert more than $20 million of company funds through four interconnected frauds. The defendants used false statements, forged records, fictitious transactions, and corporate and individual impersonations to deceive counterparties, suppliers, auditors, and supervisors. LOCKMAN was arrested on April 20, 2026, at San Francisco International Airport, and NGUYEN and YUSOF surrendered to authorities on April 22 and 23, respectively. The case has been assigned to U.S. District Judge Dale E. Ho.

U.S. Attorney Jay Clayton also announced that the criminal conduct was reported by Telekom Malaysia Berhad to the U.S. Attorney’s Office in early April 2026, and the company has been cooperating with the Office’s ongoing investigation.

“Today’s fraud charges come within weeks of receiving a self-report from the company,” said U.S. Attorney Jay Clayton. “As alleged, Mohd Hafiz Lockman, Mohd Yuzaimi Yusof, and Khanh Thuong Nguyen perpetrated a sprawling fraud to steal over $20 million. The defendants deceived counterparties, suppliers, auditors, and their own supervisors. As a result of the fact that the conduct was reported to this Office and quickly investigated, the defendants will now be held to account for fraudulently lining their own pockets.”

“These three individuals are alleged to have conducted a deliberate and calculated embezzlement scheme, falsifying corporate records for their own financial benefit,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “These charges highlight the FBI’s commitment to aggressively investigating and identifying fraud schemes that exploit the corporate system.”

As alleged in the Indictment unsealed today in Manhattan federal court and other public records of court proceedings:[1]

From July 2020 through February 2026, LOCKMAN, YUSOF, and NGUYEN were senior managers at Telekom Malaysia (USA) Inc. (“the American Subsidiary”), which is wholly owned by Telekom Malaysia Berhad (the “Parent Company,” and, collectively with the American Subsidiary, “Telekom Malaysia”), a major telecommunications company in Malaysia. The American Subsidiary’s primary business is selling access to broadband infrastructure to technology companies in the United States. The Parent Company approved major contracts of the American Subsidiary, relying on management of the American Subsidiary for information about U.S. deals.

While employed at the American Subsidiary, LOCKMAN, YUSOF, and NGUYEN pursued a multifaceted scheme to steal more than $20 million. First, they devised a scheme to sell Telekom Malaysia’s broadband capacity without the Parent Company’s authorization and to divert the proceeds of those sales to accounts under their control. For example, they requested Parent Company approval to sell eight terabytes of capacity to a multinational corporation headquartered in the United States (“U.S. Customer-1”) for roughly $54 million, but, in reality, $54 million was the price the American Subsidiary charged U.S. Customer-1 for six terabytes of capacity, not eight. After receiving the Parent Company’s approval, the defendants prepared two versions of the contract: one for U.S. Customer-1 that memorialized a sale of six terabytes, and another for the Parent Company that memorialized a sale of eight terabytes and that fraudulently bore signatures and initials of representatives of U.S. Customer-1, including one representative based in the United States. After misappropriating the excess two terabytes from the Parent Company, the defendants sold it for their own personal benefit to third parties, including a large U.S.-based internet services company and a subsidiary of a U.S.-based social media and technology company. To conceal those illicit sales from the Parent Company, and pocket the proceeds, the defendants executed the sales through a sham entity they incorporated with a name meant to look like the American Subsidiary’s name, and directed payments to bank accounts in the name of that entity, which they controlled.

Second, LOCKMAN, YUSOF, and NGUYEN impersonated a supplier of goods for the American Subsidiary and captured payments the Parent Company intended for that supplier. In 2021, the American Subsidiary was to acquire a particular type of cable from the supplier and resell it to an affiliate of the Parent Company at a markup. Unbeknownst to the Parent Company, the defendants had caused the American Subsidiary to purchase the cable from the supplier for roughly $500,000. But the defendants falsely represented to the Parent Company that the American Subsidiary had paid roughly $2.9 million for the cable. The American Subsidiary sold the cable to the affiliate of the Parent Company for over $3 million, reflecting the markup, and the defendants then caused the American Subsidiary to transfer roughly $2.9 million—the amount that the American Subsidiary supposedly paid the supplier—to a bank account held by another sham entity with a name meant to look like the supplier’s, but secretly controlled by the defendants. To accomplish this fraud, the defendants falsified several documents purportedly signed by individuals who the defendants represented were employees of the sham entity with the name substantially similar to the supplier’s. In reality, those individuals were employees of the supplier, and the defendants had falsified their signatures.

Third, LOCKMAN, YUSOF, and NGUYEN impersonated employees and interns of the American Subsidiary and captured salaries intended for those employees and interns. For example, the defendants caused the American Subsidiary’s records not to reflect the fact of a particular employee’s departure in 2020, and, from August 2020 through May 2025, the defendants caused the American Subsidiary to pay that employee’s monthly salary into a bank account that the defendants controlled. In 2025, the defendants finally recorded in the American Subsidiary’s records that employee’s departure, prompting Human Resources in Malaysia to request an exit interview with the employee. To sustain the fraud, the defendants recruited another individual to impersonate the employee during the exit interview. When Human Resources subsequently requested a video call, the defendants arranged for their imposter to disguise his appearance and bear the face of the departed employee through an artificial intelligence program.

Fourth, LOCKMAN, YUSOF, and NGUYEN sought reimbursements for fabricated work expenses. For instance, in January 2026, the defendants collaborated to request reimbursement for expenses incurred for a work trip that employees of the American Subsidiary supposedly made to Las Vegas in December 2025. In fact, no such trip occurred. When the Parent Company requested pictures from the trip, the defendants hastily organized a trip to Las Vegas and photographed scenes with Christmas trees to make it appear as though photographs had been taken in December.

Telekom Malaysia initiated an internal investigation of the American Subsidiary and the defendants. Upon discovering the fraud, Telekom Malaysia self-reported the conduct to the United States Attorney’s Office and received a conditional declination of charges against the company based on the company’s commitment to full cooperation, restitution, remediation of harm caused by the misconduct, and its agreement to report criminal conduct for a three-year period.  Today’s action reflects the Office’s commitment to using self-reports as a means to quickly and effectively bring cases that hold individual executives accountable for their misconduct.

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LOCKMAN, 48, of Dublin, California, YUSOF, 44, of Livermore, California, and NGUYEN, 48, of Manassas, Virginia, are charged with wire fraud conspiracy and wire fraud, each of which carries a maximum sentence of 20 years in prison, and aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.

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

Mr. Clayton praised the outstanding work of the FBI.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force and the Complex Frauds and Cybercrime Unit. Special Assistant U.S. Attorney Michael S. DiBattista and Assistant U.S. Attorneys Samuel P. Rothschild and Matthew Weinberg are in charge of the prosecution.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, and the Inspector in Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), Ketty Larco-Ward, announced today the unsealing of an indictment charging JAIME CASTLE, former Chief Executive Officer (“CEO”) of Obagi Cosmeceuticals LLC (“Obagi”) with conspiracy, securities fraud, wire fraud, and false statements to auditors and improperly influencing an audit. CASTLE led a scheme to fraudulently inflate Obagi’s purported sales of cosmetic products to give the false impression that Obagi was a growing company. CASTLE used that fraudulently inflated revenue to deceive a public company that acquired Obagi, called Waldencast Plc (“Waldencast”), and its shareholders, obtaining a $2 million cash bonus for arranging the acquisition. Once her scheme was uncovered, Waldencast had to restate its revenue by more than $50 million as a result of Castle’s fraud.

CASTLE was presented Monday before Judge Lehrburger. The case has been assigned to the Honorable John G. Koeltl.

“Jaime Castle allegedly defrauded a public company and its shareholders by ginning up fake revenue to suggest growth that did not exist,” said U.S. Attorney Jay Clayton. “Castle then lied to auditors to try to keep her scheme from being uncovered. Today’s indictment is a reminder that this Office and our law enforcement partners will not hesitate to go to the C-suite to root out fraud and false statements in our business community.”

“Ms. Castle allegedly used the U.S. Mail to facilitate her criminal activity, swindling  her unsuspecting investors by providing them false information about her company,” said USPIS Inspector in Charge Ketty Larco-Ward.  “The U.S. Postal Inspection Service will work tirelessly to expose these investment scams and protect the public from individuals, who use deceptive tactics to make a profit.”

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

From at least in or about 2021 through at least in or about 2023, CASTLE orchestrated a scheme to enrich herself by fraudulently inflating Obagi’s revenue and financial performance in order to defraud Waldencast and its shareholders. CASTLE, the CEO of Obagi, created the illusion that Obagi was a growing company by artificially inflating purported sales of cosmetic products to a Vietnamese distributor (“Distributor-1”), even though CASTLE knew that Distributor-1 could not pay for and, in many cases, had no need for those products. This illusion of growth made Obagi appear to be an attractive acquisition target for Waldencast and for Waldencast’s shareholders, who voted to approve a merger with Obagi in July 2022. CASTLE received a bonus of over $2 million for the successful completion of that merger. She then continued to lie to Waldencast’s management, shareholders, and auditors about Obagi’s sales and revenue, in the hopes of receiving additional bonuses and to conceal her scheme. When Waldencast discovered CASTLE’s scheme, it restated Obagi’s revenue for 2021 and 2022, showing that more than $50 million in revenue had been fraudulently reported based on CASTLE’s lies.

Despite the fact that Distributor-1 had a long history of failing to pay amounts owed for Obagi products, routinely violated the provision of her distribution agreement with Obagi requiring timely payment, and was holding a backlog of unsold product, CASTLE pushed ever greater quantities of product to Distributor-1, which Distributor-1 did not need and could not sell or pay for, to create the appearance that Obagi was a growing company.

CASTLE’s lies caused Waldencast to file publicly and with the SEC financial information about Obagi that was not true, including—shortly before Waldencast’s shareholders voted to approve the merger with Obagi— that Obagi had “[o]ver-delivered on topline” in 2021 and had “[s]trong momentum” in 2022 “with Q1 outperforming versus budget and last year.” Meanwhile, in private messages CASTLE acknowledged the exact opposite, writing in text messages that Obagi was “getting almost no payments [and] it’s becoming a massive issue for us” and that she had “been trying to keep how bad the account standing [is] under wraps.” She also acknowledged that “[Distributor-1] has a ton of inventory” and that CASTLE was “not sure how to handle [the situation] without sounding every alarm and scar[]ing everyone in the company.”

After Waldencast’s shareholders approved the merger with Obagi, CASTLE continued to lie about the company’s financial situation to Waldencast executives and its auditors. But eventually her scheme was uncovered. Between January and March 2024, Waldencast issued multiple restatements to financial reports that it issued in 2021 and 2022. Those restatements had the effect of, among other things, reducing revenue from Obagi’s sales to Distributor-1 by over $14 million for 2021 and by over $40 million for 2022.

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CASTLE, 46, of Conroe, Texas, is charged with conspiracy to commit securities fraud, wire fraud, make false filings, and false statements to auditors, which carries a maximum sentence of 5 years in prison; securities fraud, which carries a maximum sentence of 20 years in prison; false statements to auditors and improperly influencing the conduct of audits, which carries a maximum sentence of 20 years in prison; and wire fraud, which carries a maximum sentence of 20 years in prison. 

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

Mr. Clayton praised the outstanding work of the U.S. Postal Inspection Service. Mr. Clayton further thanked the U.S. Securities and Exchange Commission.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Thomas Burnett, Courtney Heavey, and Allison Nichols are in charge of the prosecution.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, announced today that GÖKÇE GÜVEN, the founder and former Chief Executive Officer of Kalder Inc. (“Kalder”), pled guilty to one count of securities fraud in connection with a scheme to defraud the investors in Kalder, a technology startup.  As part of her plea, GÜVEN agreed to forfeit nearly $7 million in proceeds from her illegal scheme.  GÜVEN pled guilty today before U.S. Magistrate Judge Sarah Netburn.

“Gökçe Güven defrauded more than a dozen venture capital investors through material misrepresentations about Kalder’s revenue and brand partners, then lied to obtain an immigration benefit,” said U.S. Attorney Jay Clayton.  “In our startup markets, ambition is not a substitute for honesty.  If you lie to investors in any market—public or private; venture or late-stage growth; fintech; biotech; energy; financial services; industrial; etc.—you will be held accountable.”

As alleged in the Superseding Information and other public filings in this case:

GÜVEN was the founder and CEO of Kalder, a New York-based technology startup focused on business loyalty and rewards programs.  GÜVEN promoted Kalder as a “fintech-marketing platform” that brands could use to create and monetize customized reward programs.  In April 2024, GÜVEN began raising Kalder’s “seed round,” soliciting investments from dozens of venture capitalists.  GÜVEN provided prospective investors with false statements, misleading claims, and fabricated documents regarding Kalder’s revenue and brand partners.  GÜVEN transmitted to potential investors a pitch deck that misrepresented, among other things, that Kalder had 26 brands “using Kalder” and 53 brands in “live freemium” (that is, using basic Kalder services free of charge).  As to some brands, Kalder had only entered into pilot programs to provide services for a limited time period and typically at a heavily discounted price.  Other brands had no agreement with Kalder whatsoever—not even for free services. Kalder’s pitch deck also falsely reported that Kalder’s recurring revenue had steadily grown month over month since February 2023 and that by March 2024, Kalder had reached $1.2 million in annual recurring revenue.  GÜVEN concealed the true financial condition of the company from multiple investors by maintaining two sets of books—one internal set containing Kalder’s accurate monthly and annual financial information that was prepared by Kalder’s outside accounting firm, and a second set with false and inflated numbers that was transmitted to investors and prospective investors.  GÜVEN also transmitted to prospective investors a forged contract between Kalder and a purported brand partner to further deceive her investors.  Through these lies and misrepresentations, GÜVEN raised approximately $7 million from more than a dozen investors.

GÜVEN, a citizen of Turkey, also made false statements and fabricated documents as part of a visa application.  Following the expiration of her student visa, GÜVEN caused Kalder to sponsor her for an O-1A visa, which is typically issued to individuals with extraordinary ability in the sciences, education, business, or athletics.  GÜVEN’s application repeated the same sorts of misrepresentations that GÜVEN had provided to Kalder’s investors.  GÜVEN also supplied letters of support and reference purportedly signed by business executives but that, in fact, GÜVEN had digitally signed herself without the executives’ knowledge or consent.  GÜVEN was ultimately issued an O-1A visa in the fall of 2025.

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GÜVEN, 26, of New York, New York, and Turkey, pled guilty to one count of securities fraud, which carries a maximum sentence of five years in prison.

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  GÜVEN is scheduled to be sentenced by U.S. District Judge Lewis A. Kaplan on September 17, 2026.

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

The case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Allison Nichols and Alexandra N. Rothman are in charge of the prosecution.

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

The Justice Department announced today the arrest of Mohammad Baqer Saad Dawood Al-Saadi, an Iraqi national and senior member of Kata’ib Hizballah, a U.S. designated foreign terrorist organization (FTO). Al-Saadi was charged by complaint with six counts of terrorism-related offenses for his activities as an operative of Kata’ib Hizballah and Iran’s Islamic Revolutionary Guard Corps (IRGC), including his involvement in nearly 20 attacks and attempted attacks throughout Europe and the United States. Al-Saadi was arrested on the charges contained in the complaint, which was unsealed today, transferred into U.S. custody overseas, and transported to the United States.  Al-Saadi was presented earlier today before U.S. Magistrate Judge Sarah Netburn in Manhattan federal court and ordered detained pending trial.

“Thanks to the dedication and vigilance of law enforcement, this alleged terrorist commander is now in U.S. custody,” said Acting Attorney General Todd Blanche.  “As alleged in the complaint, Al-Saadi directed and urged others to attack U.S. and Israeli interests and to kill Americans and Jews in the U.S. and abroad, and in doing so advance the terrorist goals of Kata’ib Hizballah and Iran’s Islamic Revolutionary Guard Corps. These charges show American law enforcement will never let such evil go unchecked and will use all tools to disrupt and dismantle foreign terrorist organizations and their leaders.”

“The FBI’s successful FTOC of Mohammad Al-Saadi, another high-value target responsible for mass global terrorism, is just the latest success in this administration’s historic work to bring terrorists to justice,” said FBI Director Kash Patel. “This was a righteous mission executed brilliantly by our agents, investigators, CIRG tactical units and interagency partners who delivered yet again. We are greatly appreciative of the work of our allies around the world—especially to Ambassador Tom Barrack, who led this joint sequenced operation and has been instrumental in bringing this successful mission home to the United States.”

“As alleged, Al-Saadi coordinated a wave of attacks across Europe, including bombings, arson, and assaults targeting American communities and interests,” said Assistant Attorney General for National Security John A. Eisenberg. “The complaint further alleges that Al-Saadi discussed attacking locations in New York, California, and Arizona and presented a serious threat to our national security.  We will continue to work closely with international partners to hold terrorists accountable in U.S. courts.”

“Mohammad Baqer Saad Dawood Al-Saadi, a commander for the terrorist organization, Kata’ib Hizballah, faces serious charges for his role in numerous attacks against U.S. interests across the globe, including his efforts to kill on U.S. soil,” said U.S. Attorney Jay Clayton for the Southern District of New York. “As alleged, for years, Al-Saadi committed himself to furthering the terrorist goals of Kata’ib Hizballah and the IRGC, two terrorist organizations dedicated to harming the United States and its allies.  More recently, Al-Saadi attempted to carry out attacks in the United States, including in New York City. Al-Saadi attempted to disrupt American society through intimidation and violence. In a righteous and just contrast, his prosecution will highlight the best of our country. Those who engage in or support terrorism against Americans and on U.S. soil should take note: the whole of the federal government is committed to dismantling terrorist organizations and bringing their members to justice. I commend our law enforcement partners for their outstanding investigative work resulting in the arrest of Al-Saadi, who will now face justice in a U.S. court.”

“In the span of just three months, Mohammad Al-Saadi allegedly directed 18 terrorist attacks throughout Europe—including against United States citizens and interests—and planned to conduct a similar attack here in our country,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “The FBI New York’s Joint Terrorism Task Force maintains its unwavering resolve to hold accountable leaders of foreign terrorist organizations who utilize mass fear and suffering to further their anti-American agenda.”

“This case puts into stark relief the global threats posed by the Iranian regime and its proxies like Kata’ib Hizballah—Foreign Terrorist Organizations that have repeatedly targeted Jewish communities across Europe and the United States since the war began,” said NYPD Commissioner Jessica S. Tisch. “Working with our law enforcement partners, we disrupted a plot against a Manhattan synagogue, and in partnership with the synagogue’s leadership, ensured its security when the threat was elevated. The NYPD’s work in this case, from officers assigned to the JTTF, to intelligence analysis provided through our international liaison program, helped protect the streets of our city. The NYPD has the most robust municipal counterterrorism and intelligence capacity of any city in the world, which is only strengthened by our partnership with federal agencies on cases like this one.”

Al-Saadi is a commander for Kata’ib Hizballah, a U.S. designated FTO operating in Iraq that is closely aligned with the IRGC. The IRGC, which is also a U.S. designated FTO, is an Iranian military and counterintelligence agency that operates under the authority of Iran’s Supreme Leader. The IRGC has publicly stated its desire and intention to conduct operations targeting those perceived to be enemies of the Iranian regime, and it has plotted and conducted attack operations targeting, among others, U.S. citizens residing abroad and in the United States, including attacks that resulted in the deaths of U.S. citizens.  Iran and the IRGC use other terrorist and paramilitary proxies in the region to take lethal action and to carry out operations against the United States and its allies. These proxies include Kata’ib Hizballah, which has received extensive training, funding, logistical support, weapons, and intelligence from the IRGC’s external operations force, the IRGC Qods Force (IRGC-QF).

As alleged in the complaint, Al-Saadi worked closely with Qasem Soleimani, the longtime commander of the IRGC-QF who was killed during a U.S. airstrike in or about 2020, as well as Abu Mahdi al-Muhandis, who was the leader of Kata’ib Hizballah until he was killed in the same airstrike that killed Soleimani. Below are photographs from one of Al-Saadi’s social media accounts of Al-Saadi with Soleimani, including at a military-related facility:

In addition, as alleged, Al-Saadi has called on others to attack and kill Americans, including in retribution for Soleimani’s and al-Muhandis’s deaths.  On or about July 2, 2020, for example, Al-Saadi published on one of his social media accounts the following image of the U.S. capitol in rubbles projected against the faces of Soleimani and al-Muhandis, with the text “our revenge for the martyred leaders is ongoing.  No negotiations with the occupier.”

In recent months, Al-Saadi has also allegedly directed and urged others to attack U.S. and Israeli interests, including by killing Americans and Jews, to further the terrorist goals of Kata’ib Hizballah and the IRGC. In or about February 2026, for example, Al-Saadi posted on one of his social media accounts a message in Arabic, which read in part, “Do not abandon the blood of your Imam of the time, oh Shiites of Iraq. Kill everyone who supports America and Israel.  Do not leave any of them remaining. Civil and military targets, as well as voices of discord, kill them everywhere.”

As alleged, over the last several months, Al-Saadi and his associates have planned, coordinated, and claimed responsibility for at least 18 terrorist attacks in Europe (the “European Terrorist Attacks”), as well as two additional attacks in Canada, in the name of Harakat Ashab al-Yamin al-Islamiya, a component of Kata’ib Hizballah.  On or about March 9, 2026—the day of the first of the European Terrorist Attacks—Al-Saadi posted on one of his social media accounts a message calling on “warriors of Islam” to engage in “jihad,” or violent holy war.  From that point on, Al-Saadi and his associates allegedly have carried out attacks against U.S. interests. Al-Saadi and Harakat Ashab al-Yamin al-Islamiya have also published videos of the attacks.

For example, on or about March 15, 2026, individuals carried out an attack involving explosives against the Bank of New York Mellon, an American bank, in Amsterdam, Netherlands. The next day, on or about March 16, 2026, AL-SAADI posted a propaganda video of the attack, in which Harakat Ashab al-Yamin al-Islamiya claimed responsibility for the attack. The video also showed aspects of the attack planning, including maps of the location of where the attack would be and a message which read: “In the name of Allah, the Most Gracious, the Most Merciful This is the Final Warning[.]  To all the peoples of the world, especially in the European Union, Immediately distance yourselves [] from all American and Zionist interests, facilities, and what is affiliated with them.”

Similar attacks continued in or about March and April 2026, accompanied by videos allegedly published by Al-Saadi in which Harakat Ashab al-Yamin al-Islamiya claimed responsibility for the attacks.  In one such attack, on or about April 12, 2026, an arson was allegedly committed against a synagogue in Skopje, North Macedonia. On or about April 16, 2026, Al-Saadi posted a video showing the site of that attack with a red target symbol and surveillance footage of the synagogue on fire, as depicted in the screenshots below with the logo of Harakat Ashab al-Yamin al-Islamiya in the upper right corner of the images (circled in red):

In another attack, on or about April 29, 2026, two Jewish men—including a dual U.S.-British citizen—were stabbed and seriously injured in London, United Kingdom.

In addition, in or about April and May 2026, Al-Saadi, on behalf of Kata’ib Hizballah and the IRGC, allegedly attempted to coordinate and carry out terrorist attacks to kill individuals in the United States, including by targeting Jewish institutions in New York, New York, and elsewhere. On or about April 3, 2026, Al-Saadi spoke to an undercover law enforcement officer (“UC-1”) whom Al-Saadi believed could carry out attacks in the United States. That day, Al-Saadi texted UC-1 photographs and maps showing the exact location of a prominent Jewish synagogue located in New York, New York (the “New York Synagogue”), as well as two additional U.S.-based Jewish institutions in Los Angeles, California, and Scottsdale, Arizona, respectively, and directed UC-1 to carry out terrorist attacks against those targets. Al-Saadi also spoke on the phone with UC-1, and discussed with UC-1, with respect to the New York Synagogue, whether UC-1 would use an improvised explosive device or “set the place on fire.” Fortunately, no such attacks occurred at the time.

Al-Saadi, 32, of Iraq, has been charged with: (i) conspiring to provide material support to Kata’ib Hizballah, a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (ii) conspiring to provide material support to the IRGC, a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (iii) conspiring to provide material support for acts of terrorism of attempting and conspiring to murder nationals of the United States, and bombing and conspiring to bomb a place of public use, which carries a maximum penalty of 15 years in prison; (iv) providing material support for acts of terrorism, which carries a maximum penalty of 15 years in prison; (v) conspiring to bomb a place of public use, which carries a maximum penalty of life in prison; and (vi) attempted destruction of property by means of fire or explosive, which carries a mandatory minimum term of five years in prison and a maximum penalty of 20 years in prison.

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

The case was investigated by FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies, and the FBI Washington Field Office, Counterterrorism Division, and with the assistance of the Department of Justice’s National Security Division, Counterterrorism Section, the Office of International Affairs of the Justice Department’s Criminal Division, U.S. Customs and Border Protection, the NYPD, and the New York State Police.

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jeffrey W. Coyle and Sarah L. Kushner are in charge of the prosecution, with assistance from Trial Attorneys Paul Casey and James Donnelly of the Counterterrorism Section of the Department of Justice’s National Security Division.

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

United States Attorney for the Southern District of New York, Jay Clayton, Acting Attorney General for the United States, Todd Blanche, Assistant Attorney General for National Security, John A. Eisenberg, Director of the Federal Bureau of Investigation (“FBI”), Kash Patel, Assistant Director in Charge of the New York Field Office of the FBI, James C. Barnacle, Jr., Assistant Director in Charge of the Washington Field Office of the FBI, Darren Cox, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the arrest of MOHAMMAD BAQER SAAD DAWOOD AL-SAADI, an Iraqi national and senior member of Kata’ib Hizballah, a U.S. designated foreign terrorist organization (“FTO”).  AL-SAADI was charged by Complaint with six counts of terrorism-related offenses for his activities as an operative of Kata’ib Hizballah and Iran’s Islamic Revolutionary Guard Corps (“IRGC”), including his involvement in nearly 20 attacks and attempted attacks throughout Europe and the United States.  AL-SAADI was arrested on the charges contained in the Complaint, which was unsealed today, transferred into U.S. custody overseas, and transported to the United States. AL-SAADI was presented earlier today before U.S. Magistrate Judge Sarah Netburn in Manhattan federal court and ordered detained pending trial.

“Mohammad Baqer Saad Dawood Al-Saadi, a commander for the terrorist organization, Kata’ib Hizballah, faces serious charges for his role in numerous attacks against U.S. interests across the globe, including his efforts to kill on U.S. soil,” said U.S. Attorney Jay Clayton.  “As alleged, for years, Al-Saadi committed himself to furthering the terrorist goals of Kata’ib Hizballah and the IRGC, two terrorist organizations dedicated to harming the United States and its allies.   More recently, Al-Saadi attempted to carry out attacks in the United States, including in New York City.  Al-Saadi attempted to disrupt American society through intimidation and violence.  In a righteous and just contrast, his prosecution will highlight the best of our country.  Those who engage in or support terrorism against Americans and on U.S. soil should take note:  the whole of the federal government is committed to dismantling terrorist organizations and bringing their members to justice.  I commend our law enforcement partners for their outstanding investigative work resulting in the arrest of Al-Saadi, who will now face justice in a U.S. court.”

“Thanks to the dedication and vigilance of law enforcement, this alleged terrorist commander is now in U.S. custody,” said Acting Attorney General Todd Blanche.  “As alleged in the complaint, Al-Saadi directed and urged others to attack U.S. and Israeli interests and to kill Americans and Jews in the U.S. and abroad, and in doing so advance the terrorist goals of Kata’ib Hizballah and Iran’s Islamic Revolutionary Guard Corps.  These charges show American law enforcement will never let such evil go unchecked, and will use all tools to disrupt and dismantle foreign terrorist organizations and their leaders.”

”As alleged, Al-Saadi coordinated a wave of attacks across Europe, including bombings, arson, and assaults targeting American communities and interests,” said Assistant Attorney General for National Security John A. Eisenberg.  “The complaint further alleges that Al-Saadi discussed attacking locations in New York, California, and Arizona and presented a serious threat to our national security.  We will continue to work closely with international partners to hold terrorists accountable in U.S. courts.”

“The FBI’s successful FTOC of Mohammad Al-Saadi, another high-value target responsible for mass global terrorism, is just the latest success in this administration’s historic work to bring terrorists to justice,” said FBI Director Kash Patel.  “This was a righteous mission executed brilliantly by our agents, investigators, CIRG tactical units and interagency partners who delivered yet again.  We are greatly appreciative of the work of our allies around the world—especially to Ambassador Tom Barrack, who led this joint sequenced operation and has been instrumental in bringing this successful mission home to the United States.”

“In the span of just three months, Mohammad Al-Saadi allegedly directed 18 terrorist attacks throughout Europe—including against United States citizens and interests—and planned to conduct a similar attack here in our country,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI New York’s Joint Terrorism Task Force maintains its unwavering resolve to hold accountable leaders of foreign terrorist organizations who utilize mass fear and suffering to further their anti-American agenda.”

"As a senior member of a designated foreign terrorist organization, al-Saadi allegedly directed the planning and coordination of 18 terrorist attacks and attempted terrorist attacks targeting U.S. citizens and interests throughout the world," said Assistant Director in Charge of the FBI Washington Field Office Darren Cox. "Thanks to the FBI's diligence, the defendant will face justice on American soil. The FBI and our partners remain steadfast in our pursuit of all terrorists who threaten our country and our allies."

“This case puts into stark relief the global threats posed by the Iranian regime and its proxies like Kata’ib Hizballah—Foreign Terrorist Organizations that have repeatedly targeted Jewish communities across Europe and the United States since the war began,” said NYPD Commissioner Jessica S. Tisch.  “Working with our law enforcement partners, we disrupted a plot against a Manhattan synagogue, and in partnership with the synagogue’s leadership, ensured its security when the threat was elevated.  The NYPD’s work in this case, from officers assigned to the JTTF, to intelligence analysis provided through our international liaison program, helped protect the streets of our city.  The NYPD has the most robust municipal counterterrorism and intelligence capacity of any city in the world, which is only strengthened by our partnership with federal agencies on cases like this one.”

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

AL-SAADI is a commander for Kata’ib Hizballah, a U.S. designated FTO operating in Iraq that is closely aligned with the IRGC.  The IRGC, which is also a U.S. designated FTO, is an Iranian military and counterintelligence agency that operates under the authority of Iran’s Supreme Leader.  The IRGC has publicly stated its desire and intention to conduct operations targeting those perceived to be enemies of the Iranian regime, and it has plotted and conducted attack operations targeting, among others, U.S. citizens residing abroad and in the United States, including attacks that resulted in the deaths of U.S. citizens.  Iran and the IRGC use other terrorist and paramilitary proxies in the region to take lethal action and to carry out operations against the United States and its allies.  These proxies include Kata’ib Hizballah, which has received extensive training, funding, logistical support, weapons, and intelligence from the IRGC’s external operations force, the IRGC Qods Force (“IRGC-QF”).

As alleged in the Complaint, AL-SAADI worked closely with Qasem Soleimani, the longtime commander of the IRGC-QF who was killed during a U.S. airstrike in or about 2020, as well as Abu Mahdi al-Muhandis, who was the leader of Kata’ib Hizballah until he was killed in the same airstrike that killed Soleimani.  Below are photographs from one of AL-SAADI’s social media accounts of AL-SAADI with Soleimani, including at a military-related facility:

In addition, as alleged, AL-SAADI has called on others to attack and kill Americans, including in retribution for Soleimani’s and al-Muhandis’s deaths.  On or about July 2, 2020, for example, AL-SAADI published on one of his social media accounts the following image of the U.S. capitol in rubbles projected against the faces of Soleimani and al-Muhandis, with the text “our revenge for the martyred leaders is ongoing.  No negotiations with the occupier.”

In recent months, AL-SAADI has also allegedly directed and urged others to attack U.S. and Israeli interests, including by killing Americans and Jews, to further the terrorist goals of Kata’ib Hizballah and the IRGC.  In or about February 2026, for example, AL-SAADI posted on one of his social media accounts a message in Arabic, which read in part, “Do not abandon the blood of your Imam of the time, oh Shiites of Iraq.  Kill everyone who supports America and Israel.  Do not leave any of them remaining.  Civil and military targets, as well as voices of discord, kill them everywhere.”

As alleged, over the last several months, AL-SAADI and his associates have planned, coordinated, and claimed responsibility for at least 18 terrorist attacks in Europe (the “European Terrorist Attacks”), as well as two additional attacks in Canada, in the name of Harakat Ashab al-Yamin al-Islamiya, a component of Kata’ib Hizballah.  On or about March 9, 2026—the day of the first of the European Terrorist Attacks—AL-SAADI posted on one of his social media accounts a message calling on “warriors of Islam” to engage in “jihad,” or violent holy war.  From that point on, AL-SAADI and his associates allegedly have carried out attacks against U.S. interests.  AL-SAADI and Harakat Ashab al-Yamin al-Islamiya have also published videos of the attacks.

For example, on or about March 15, 2026, individuals carried out an attack involving explosives against the Bank of New York Mellon, an American bank, in Amsterdam, Netherlands.  The next day, on or about March 16, 2026, AL-SAADI posted a propaganda video of the attack, in which Harakat Ashab al-Yamin al-Islamiya claimed responsibility for the attack.  The video also showed aspects of the attack planning, including maps of the location of where the attack would be and a message which read: “In the name of Allah, the Most Gracious, the Most Merciful This is the Final Warning[.]  To all the peoples of the world, especially in the European Union, Immediately distance yourselves [] from all American and Zionist interests, facilities, and what is affiliated with them.”

Similar attacks continued in or about March and April 2026, accompanied by videos allegedly published by AL-SAADI in which Harakat Ashab al-Yamin al-Islamiya claimed responsibility for the attacks.  In one such attack, on or about April 12, 2026, an arson was allegedly committed against a synagogue in Skopje, North Macedonia. On or about April 16, 2026, AL-SAADI posted a video showing the site of that attack with a red target symbol and surveillance footage of the synagogue on fire, as depicted in the screenshots below with the logo of Harakat Ashab al-Yamin al-Islamiya in the upper right corner of the images (circled in red):

In another attack, on or about April 29, 2026, two Jewish men—including a dual U.S.-British citizen—were stabbed and seriously injured in London, United Kingdom.

In addition, in or about April and May 2026, AL-SAADI, on behalf of Kata’ib Hizballah and the IRGC, allegedly attempted to coordinate and carry out terrorist attacks to kill individuals in the United States, including by targeting Jewish institutions in New York, New York, and elsewhere.  On or about April 3, 2026, AL-SAADI spoke to an undercover law enforcement officer (“UC-1”) whom AL-SAADI believed could carry out attacks in the United States.  That day, AL-SAADI texted UC-1 photographs and maps showing the exact location of a prominent Jewish synagogue located in New York, New York (the “New York Synagogue”), as well as two additional U.S.-based Jewish institutions in Los Angeles, California, and Scottsdale, Arizona, respectively, and directed UC-1 to carry out terrorist attacks against those targets.  AL-SAADI also spoke on the phone with UC-1, and discussed with UC-1, with respect to the New York Synagogue, whether UC-1 would use an improvised explosive device or “set the place on fire.”  Fortunately, no such attacks occurred at the time.

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AL-SAADI, 32, of Iraq, has been charged with: (i) conspiring to provide material support to Kata’ib Hizballah, a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (ii) conspiring to provide material support to the IRGC, a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (iii) conspiring to provide material support for acts of terrorism of attempting and conspiring to murder nationals of the United States, and bombing and conspiring to bomb a place of public use, which carries a maximum penalty of 15 years in prison; (iv) providing material support for acts of terrorism, which carries a maximum penalty of 15 years in prison; (v) conspiring to bomb a place of public use, which carries a maximum penalty of life in prison; and (vi) attempted destruction of property by means of fire or explosive, which carries a mandatory minimum term of five years in prison and a maximum penalty of 20 years in prison.

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

Mr. Clayton praised the outstanding investigative work of FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies, and the FBI Washington Field Office, Counterterrorism Division, as well as the assistance of the Department of Justice’s National Security Division, Counterterrorism Section, the Office of International Affairs of the Justice Department’s Criminal Division, U.S. Customs and Border Protection, the NYPD, and the New York State Police.  Mr. Clayton also offered particular thanks to the U.S. Department of State, and in particular Ambassador Thomas Barrack and Ambassador Rabbi Yehuda Kaploun.

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jeffrey W. Coyle and Sarah L. Kushner are in charge of the prosecution, with assistance from Trial Attorneys Paul Casey and James Donnelly of the Counterterrorism Section of the Department of Justice’s National Security Division.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, announced the arrest yesterday of CORY MATTHEWS, and the Indictment, on April 29th, of BETH SAIERS, a/k/a “Beth Young.”  MATTHEWS and SAIERS are charged in separate charging instruments with sexual exploitation of an infant and the receipt and distribution of child pornography.  MATTHEWS was taken into federal custody yesterday and presented before U.S. Magistrate Judge Andrew E. Krause in White Plains federal court and detained.  BETH SAIERS was arrested in Lock Haven, Pennsylvania, on April 23, 2026, pursuant to a Complaint that was unsealed on April 23, 2026.  A Grand Jury in the Southern District of New York returned an Indictment of SAIERS on April 29, 2026.

“The charges here—sexual exploitation of an infant—allege horrific conduct,” said U.S. Attorney Jay Clayton.  “Every New Yorker wants children protected from life-scarring conduct.  We know our community wants this conduct investigated and, as appropriate, charged and prosecuted to the fullest extent of the law. The women and men of this Office are dedicated to that mission.” 

As alleged in the charging documents and statements made in court:[1]

On or about April 16, 2026, law enforcement executed a search of MATTHEWS’s residence in Putnam County pursuant to a New York state search warrant. Among the items seized was MATTHEWS’s cellphone.

A search of the phone revealed chats on a social media application between MATTHEWS and SAIERS on April 14, 2026.  In the course of the chats, MATTHEWS transmitted an image of an infant (“Victim-1”) to SAIERS, who responded “Put your dick in its face[.]”  Thereafter, MATTHEWS transmitted an image in which Victim-1 is visible in the background and a man’s erect penis occupies the foreground.  MATTHEWS asked, “Now what,” to which SAIERS responded, “Take a pic of my pedo dick in front of the babies face[.]”  Thereafter, as MATTHEWS transmitted a series of sexually explicit photos and videos of Victim-1 to SAIERS, SAIERS commented on the images and directed MATTHEWS to engage in sexual acts involving Victim-1.

On or about April 16, 2026, MATTHEWS was arrested and charged in the Town of Kent, New York, with promoting a sexual performance by a child and possessing a sexual performance by a child.  On or about April 19, 2026, following the discovery of the photos and videos depicting the sexual abuse of Victim-1, additional charges were added. The charges included, among other things, predatory sex assault against a child and rape in the first degree.

On or about April 23, 2026, SAIERS was arrested in Lock Haven, Pennsylvania, pursuant to a Complaint filed on April 21, 2026, in the Southern District of New York.  SAIERS was detained pending her removal to New York.  On or about April 29, 2026, a Grand Jury in the Southern District of New York indicted SAIERS for sexual exploitation of a child and receipt and distribution of child pornography.

There may be other victims. If you have information to report, please contact the FBI at 1-800-CALL-FBI (1-800-225-5324) or https://tips.fbi.gov.

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MATTHEWS, 38, of Kent, New York, and SAIERS, 41, of Lockhaven, Pennsylvania, are each charged with sexual exploitation of a child, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison; and receipt and distribution of child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison.

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

Mr. Clayton praised the efforts of the Federal Bureau of Investigation, Putnam County Sheriff's Office, Putnam County District Attorney’s Office, Putnam County Child Advocacy Center Team, Putnam County Department of Social Services, New York State Police, Town of Carmel Police Department, Town of Kent Police Department, and the Lock Haven, Pennsylvania Police Department in connection with this investigation.                               

The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Marcia S. Cohen and Jake Sidransky are in charge of the prosecution.   

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