Southern District of New York

Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that KEVIN DION ROLLE, Jr. was sentenced by U.S. District Judge Alison J. Nathan to 60 months in prison for his role in a $1.2 million credit card scheme.  ROLLE, Jr. pled guilty before Judge Nathan on August 5, 2021, to one count of wire fraud.

According to the allegations in the Complaint, the Indictment, and other documents filed in federal court, as well as statements made in public court proceedings:

From October 2015 to September 2020, ROLLE participated in what is known by various credit card companies as a “bust-out” scheme whereby the credit card user applies for a credit card and incurs numerous charges with no intention of paying the balance.  As part of his multi-year fraud scheme, ROLLE submitted multiple credit card applications to American Express (“Amex”), which often included or were supported by documentation containing false identifying information.  Once ROLLE received a credit card, he used the credit card for a short period of time to purchase luxury items, including, among other things, Cartier jewelry and a Bentley. 

In total, ROLLE incurred $1,205,318.18 in Amex credit card charges that remain outstanding and collected an $209,500 in insurance proceeds based on a claim for jewelry pieces purchased with the fraudulent Amex credit cards. 

On the basis of multiple Court filings, ROLLE admitted in the terms of his plea agreement to obstructing justice.  ROLLE made numerous self-serving, false, and/or inconsistent statements to the Court and the United States District Court for the District of Puerto Rico where he was first arrested regarding his personal background, possession of foreign passports, and his purported ties to New York.  At the time of his arrest, ROLLE presented an Irish passport, which was later found to have been obtained with a fake United States passport.  Additionally, ROLLE purported to be the president of a particular college in The Bahamas—the existence of which was unable to be verified by the FBI.

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In addition to the prison term, ROLLE, 27, of The Bahamas, was ordered to make restitution in the amount of $1,414,818.18 and forfeiture in the amount of $1,504,818.18.   

Mr. Williams thanked the FBI Foreign Influence Task Force for their outstanding work. 

The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit.  Assistant United States Attorneys Emily A. Johnson and Danielle M. Kudla are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that MALIK SANCHEZ, a/k/a “Smooth Sanchez,” pled guilty to making a hoax threat to detonate a bomb at a restaurant in the Flatiron neighborhood in New York, New York, on or about February 13, 2021.  SANCHEZ pled guilty before United States Magistrate Judge Kevin N. Fox in Manhattan federal court.  The case is assigned to United States District Judge Colleen McMahon.

According to the Indictment, Complaint, and other public documents in the case, as well as statements made during the plea proceeding:

SANCHEZ self-identifies as an “Involuntary Celibate” or “Incel,” which refers to a group of individuals with an active online community, mostly men, who believe that society unjustly denies them sexual or romantic attention to which they are entitled.  Through online activity and in some instances violence, Incels target those who they believe are unjustly denying them sexual or romantic attention, which in most cases are women. 

SANCHEZ has posted multiple videos to social media accounts depicting SANCHEZ harassing, threatening, and in several instances harming individuals whom SANCHEZ encountered in Manhattan, while expressing support for Incel ideology, including for carrying out violence against women in the name of the group.

For example, on or about February 7, 2021, SANCHEZ posted online a video with a caption including “INCEL ARMY RISE UP.”  The video depicts SANCHEZ yelling at two women walking on a street in Manhattan that SANCHEZ has “Incel rage”; that he supports Incel’s unofficial founder, Elliot Rodger, who attacked a sorority house and pedestrians in California in 2014, killing six victims and injuring 14 others; and that Rodger’s victims “deserved to be run over and hit by a truck.  They deserved to be slaughtered.”[1]  On or about March 20, 2021, SANCHEZ posted another video filmed in Manhattan, which depicts SANCHEZ approaching multiple women at an outdoor seating area.  In the video, SANCHEZ again proclaimed his support for Incels and Elliot Rodger, while making hand gestures mimicking pointing a gun.  After multiple individuals attempted to get SANCHEZ to stop, SANCHEZ sprayed pepper spray in the face of one of those individuals.  SANCHEZ was arrested by responding law enforcement officers and charged with state offenses, and was thereafter released on bail.          

On or about February 13, 2021, SANCHEZ posted a video that depicts him perpetrating a hoax bomb threat at a restaurant in Manhattan’s Flatiron neighborhood.  The video shows SANCHEZ approaching an outdoor seating area in front of the restaurant and stating:  “Let’s enhance their meal.”  SANCHEZ then positioned himself close to two women seated at one of the tables, and conveyed that he was about to detonate a bomb. SANCHEZ loudly stated:  “Allahu Akbar.  Allahu Akbar.  Bomb detonation in two, in two minutes.  I take you with me and I kill all you.  I kill all you right now.  And I kill all you for Allah. . . .  I’m gonna do it.  I’m gonna fucking do it for Allah.  I’m gonna do it, for, Allah, Allah, Allahu Akbar, Come on.  I do it, bomb now, bomb now.”  The two women appeared startled, gathered their belongings, and went into the restaurant; approximately four other individuals in the seating area grabbed their belongings and ran away.  SANCHEZ then stated:  “Yo, all of them scattered” and “Holy shit boys.  That was fucking five stars.  That was five stars.”  At least one individual called 911 in connection with the bomb threat, and law enforcement responded to the scene.  By that point, SANCHEZ had left the area.

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SANCHEZ, 19, of New York, New York, pled guilty to one count of conveying false and misleading information and hoaxes, in violation of Title 18, United States Code, Section 1038, which carries a maximum sentence of five years in prison.  The maximum potential penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

SANCHEZ is scheduled to be sentenced by Judge McMahon on February 8, 2022, at 3:00 p.m.

Mr. Williams praised the outstanding efforts of the Federal Bureau of Investigation (“FBI”) New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the New York City Police Department, and over 50 other federal, state, and local agencies.

The case is being handled by the Office’s Terrorism and International Narcotics Unit.  Assistant United States Attorney Kaylan E. Lasky is in charge of the prosecution, with assistance from Trial Attorney Elisabeth Poteat of the Counterterrorism Section of the Department of Justice’s National Security Division.

[1] Statements discussed and quoted herein are described in substance and in part.

Damian Williams, the United States Attorney for the Southern District of New York, announced that NACHMAN HELBRANS and MAYER ROSNER were convicted in White Plains federal court of child sexual exploitation offenses and kidnapping following a four-week jury trial.  The defendants, leaders of an extremist Jewish sect called Lev Tahor, masterminded a scheme to kidnap a 14-year-old girl (“Minor-1”) and a 12-year-old boy (“Minor-2”) from their mother in Woodridge, New York.  The defendants then smuggled the children across the U.S. border to Mexico, where they reunited Minor-1 with her adult “husband” to allow him to continue his illegal sexual relationship with Minor-1. 

U.S. Attorney Damian Williams said: “Nachman Helbrans and Mayer Rosner brazenly kidnapped two children from their mother in the middle of the night to return a 14-year-old girl to an illegal sexual relationship with an adult man.  Today’s verdict makes clear that our Office – and our law enforcement partners – will not be deterred from achieving justice for victims of child sexual exploitation.”     

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

NACHMAN HELBRANS and MAYER ROSNER are U.S. citizens and senior leaders of Lev Tahor, an extremist Jewish sect that has been located in several different jurisdictions, including New York, Israel, Canada, Mexico, and Guatemala.  HELBRANS became the leader of Lev Tahor in or about 2017 and ROSNER served as a top lieutenant.  After HELBRANS and his leadership team took over, they seized tight control over the group and embraced several extreme practices, including child marriages and underage sex.

In or about 2017, HELBRANS arranged for his then-12-year-old niece, Minor-1, to be “married” to a then-18-year-old man.  They were religiously “married” the following year, when Minor-1 was 13 and her “husband” was 19, and immediately began a sexual relationship with the goal of procreation.  They were never legally married.  Lev Tahor leadership, including HELBRANS and ROSNER, required young brides to have sex with their husbands, to tell people outside Lev Tahor that they were not married, to pretend to be older, and to deliver babies inside their homes instead of at a hospital, to conceal the mothers’ young ages from the public.

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

After the mother fled and settled in New York with her children, the defendants devised a plan to return Minor-1, then 14 years old, to Guatemala and to her then-20-year-old “husband” so that they could resume their sexual relationship and procreate.  Then, in December 2018, they kidnapped Minor-1 and her brother in the middle of the night from a home in upstate New York and transported them through various states and, eventually, to Mexico.  The defendants used disguises, aliases, drop phones, fake travel documents, an encrypted application, and a secret pact to execute on their kidnapping plan.  At the time of the kidnapping, Lev Tahor leadership was seeking asylum for the entire Lev Tahor community in the Islamic Republic of Iran. 

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

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NACHMAN HELBRANS, 39, of Guatemala, and MAYER ROSNER, 45, of Guatemala, were convicted of (1) conspiring to transport a minor with intent to engage in criminal sexual activity, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; (2) conspiring to travel with intent to engage in illicit sexual conduct, which carries a maximum sentence of 30 years in prison; (3) two counts of international parental kidnapping, which carries a maximum sentence of three years in prison for each count; and (4) one count of conspiring to commit international parental kidnapping, to unlawfully use a means of identification, and to enter by false pretenses the secure area of an airport, which carries a maximum sentence of five years in prison.  HELBRANS was also convicted of an additional count of international parental kidnapping in connection with an attempt to kidnap Minor-1 in March 2019. 

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

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

This case is being handled by the Office’s White Plains Division.  Assistant United States Attorneys Sam Adelsberg, Jamie Bagliebter, Jim Ligtenberg, and Daniel Tracer, and paralegal specialist Shannon Becker, are in charge of the prosecution. 

Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a criminal complaint charging PUNEET DIKSHIT, a partner in a global management consulting firm (the “Consulting Firm”), with securities fraud in connection with a scheme to commit insider trading based on material, nonpublic information regarding the upcoming public announcement that an investment bank (the “Investment Bank”) – which DIKSHIT and the Consulting Firm were advising – would be acquiring GreenSky, Inc. (“GreenSky”).  The defendant was arrested earlier today and will be presented this afternoon before U.S. Magistrate Judge Kevin N. Fox.

U.S. Attorney Damian Williams said: “As alleged, Puneet Dikshit, a consulting firm partner, exploited his access to material nonpublic information about a pending acquisition of GreenSky, Inc., to trade in GreenSky call options.  This breach of duties to his firm and its investment bank client – and violation of the law – allegedly reaped the defendant nearly half a million dollars in illegal profits.  Now Puneet Dikshit has been charged with serious felonies for his alleged conduct.”

FBI Assistant Director Michael J. Driscoll said: “As alleged, Mr. Dikshit exploited his access to material nonpublic information regarding the acquisition of Green Sky to profit from trades he made in options markets.  Actions like those we allege serve to undermine the public’s confidence in the integrity of financial markets, and, as we have demonstrated time and again, the FBI and our partners are committed to ensuring a level playing field for all investors.  Mr. Dikshit now faces significant federal charges, which should serve as a warning to others considering similar conduct.”

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

GreenSky was a publicly traded financial technology company that provided technology to banks and merchants to make loans to consumers for home improvement, solar, healthcare, and other purposes.  GreenSky’s common stock traded under the symbol “GSKY” on the NASDAQ.

Between on or about November 2019 and on or about July 2020, and again between on or about April 2021 and on or about September 2021, the Investment Bank engaged the Consulting Firm to provide various consulting services related to its consideration of an acquisition of GreenSky and the post-acquisition integration of GreenSky.  DIKSHIT was one of the Consulting Firm partners leading these engagements.  In that role, he had access to material, nonpublic information, which he misappropriated and, in violation of the duties that he owed to the Investment Bank and the Consulting Firm, used to trade GreenSky call options. 

DIKSHIT engaged in this trading between on or about July 26, 2021, and on or about September 15, 2021 – at the same time he was leading the Consulting Firm team that was advising the Investment Bank about its potential acquisition of GreenSky.  At various times between on or about July 26, 2021, and on or about September 13, 2021, DIKSHIT purchased and sold relatively small numbers of GreenSky call options, which had expiration dates weeks or months from the time of purchase.  However, in the two days before the September 15, 2021, public announcement that the Investment Bank would be acquiring GreenSky, DIKSHIT sold all of these longer-dated GreenSky call options and purchased approximately 2,500 out-of-the-money GreenSky call options that were due to expire just a few days later, on September 17, 2021.  After the deal was announced, DIKSHIT sold these calls and realized profits of approximately $450,000.

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DIKSHIT, 40, of New York, New York, is charged with two counts of securities fraud, each of which has a maximum sentence of 20 years in prison.  The statutory maximum sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.

Mr. Williams praised the outstanding work of the FBI.  Mr. Williams further thanked the U.S. Securities and Exchange Commission, which today filed a parallel civil action, for its assistance and cooperation in this investigation. 

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant United States Attorneys Joshua A. Naftalis and Matthew Podolsky are in charge of the prosecution.

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

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

Damian Williams, the United States Attorney for the Southern District of New York, announced the filing of a civil complaint today seeking forfeiture of four looted Cambodian antiquities at a museum in Denver, Colorado, for the purpose of returning the antiquities to the Kingdom of Cambodia.  The antiquities, which include a 12th to 13th century Khmer sandstone sculpture depicting Prajnaparamita, and a 7th to 8th century Khmer sandstone sculpture depicting Surya, were sold to the museum by antiquities dealer Douglas Latchford through the use of false provenance documents.  The museum has voluntarily relinquished possession of the antiquities.

U.S. Attorney Damian Williams said: “As alleged, Douglas Latchford papered over the problematic provenance of Cambodian antiquities with falsehoods, in the process successfully placing stolen goods in the permanent collection of an American museum.  Eradicating the illegal trade in stolen antiquities requires the vigilance of all parties in the art market, especially cultural institutions.”

According to the civil complaint filed in Manhattan federal court today:

The United States of America seeks the forfeiture of the following antiquities, currently in the possession of a museum located in Denver, Colorado (the “Museum”): (1) a 12th to 13th century Khmer sandstone sculpture depicting standing Prajnaparamita (“Prajnaparamita”), (2) a 7th to 8th century Khmer sandstone sculpture depicting standing Surya (“Surya”), (3) an Iron Age Dong Son bronze bell (the “Bell”), and (4) a 17th to 18th century sandstone lintel depicting the sleep of Vishnu and birth of Brahma (the “Lintel”).  Together, the Prajnaparamita, Surya, Bell, and Lintel are the “Defendants in Rem.”

Investigators working for the Cambodian Ministry of Culture and Fine Arts and the United States Government have interviewed a Cambodian national who was previously engaged in the theft and looting of antiquities from Cambodian temples and archeological sites (“Looter-1”).  Looter-1, a former member of the Khmer Rouge, led a group of approximately 450 people working in multiple teams to loot temples and archeological sites in Cambodia.  Looter-1 has reviewed photographs of the Prajnaparamita, Surya, Bell, and Lintel, and recognized them as antiquities that Looter-1 and his team had stolen from archeological and religious sites in Cambodia.

The Museum acquired the Prajnaparamita, Surya, Bell, and Lintel from Douglas Latchford, a prominent collector and dealer in Southeast Asian art and antiquities who was previously indicted in this District with crimes related to a many-year scheme to sell looted Cambodian antiquities on the international art market.  As alleged in the indictment, United States v. Latchford, 19 Cr. 748 (AT), as part of the scheme, Latchford created false provenance documents and false invoices and shipping documents for the antiquities he was selling.  In September 2020, the indictment against Latchford was dismissed due to his death.  Latchford was closely associated with a particular scholar of Khmer art (the “Scholar”).  Over the years, the Scholar, who was a volunteer research consultant for the Museum, assisted Latchford on many occasions by verifying or vouching for the proffered provenance of Khmer antiquities that Latchford was trying to sell.

Latchford lied repeatedly to the Museum, in particular with regard to the provenance of the Prajnaparamita and Surya.  Latchford provided false provenance for the Prajnaparamita and Surya, and made multiple misrepresentations and contradictory statements regarding when certain of the Defendants in Rem were shipped and imported into the United States.  For example, Latchford told the Museum that he had purchased the Prajnaparamita from a particular art collector (the “False Collector”) in June 1999, who had in turn acquired the Prajnaparamita in Vietnam between 1964 and 1966.  Other documents indicate that Latchford shipped the Prajnaparamita from Thailand to London in 1994, well before the June 1999 date, and that it entered the United States in May 2000, after the enactment of an embargo on the importation of Khmer stone antiquities.

The Museum has voluntarily agreed to relinquish possession of the Defendants in Rem to the United States in order for them to be repatriated to the Kingdom of Cambodia, and waived all claims of right, title, and interest in the Defendants in Rem.

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Mr. Williams thanked Homeland Security Investigations for its outstanding work on this investigation, which he noted is ongoing, and praised its ongoing efforts to find and repatriate stolen and looted cultural property.  Mr. Williams also thanked the Kingdom of Cambodia’s Ministry of Culture and Fine Arts for its assistance with this investigation.

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

Damian Williams, the United States Attorney for the Southern District of New York, announced today that THOMAS CRAFT, a licensed attorney, pled guilty in Manhattan federal court to securities fraud.  CRAFT’s guilty plea results from his involvement in a fraudulent scheme in which he falsely represented that he had undertaken certain legal work in connection with attorney opinion letters, when in truth and in fact, he merely rubber-stamped the opinion letters that had been prepared by his co-defendant, Richard Rubin, who was a disbarred attorney. 

CRAFT was arrested on December 2, 2020, and pled guilty today before U.S. District Judge Paul A. Engelmayer.  As part of his plea agreement, CRAFT agreed to relinquish his law license in Florida. 

U.S. Attorney Damian Williams said: “As an attorney, Craft was supposed to act as a gatekeeper against fraud in the securities markets.  Instead, as he admitted today, Craft falsely represented that he had carried out certain work in attorney opinion letters, giving false comfort to the investing public that the relevant securities rules had been satisfied.  Now he stands guilty of securities fraud and awaits sentencing for his crime.”

As alleged in the Indictment filed against CRAFT, as well as his co-conspirator Rubin, and other statements made in open court: 

Securities Registration Requirements and SEC Rule 144

Under the Securities Act of 1933 (the “Securities Act”), anyone seeking to sell a security must first register that security unless an exemption applies.  This registration requirement protects investors by promoting disclosure of information pertinent to informed investment decisions. 

A company registering new securities must complete a registration statement known as U.S. Securities and Exchange Commission (“SEC”) Form S-1 before the securities can be listed on a national exchange and publicly traded.  SEC Form S-1 contains information pertinent to informed investment decisions, including, among other things, information on the company’s business operations, the company’s financial condition, and a description of the company’s management.  In connection with SEC Form S-1, the company is required to file an opinion letter (the “Form S-1 Opinion Letter”) from a licensed attorney attesting that the statements in the SEC Form S-1 are true and correct.  A company’s SEC Form S-1 and the Form S-1 Opinion Letter are available to the public on the SEC’s Electronic Data Gathering, Analysis, and Retrieval System (“EDGAR”).

“Restricted securities” refers to securities acquired in unregistered, private sales from the issuing company or from an affiliate of the issuer, with “affiliate” meaning a person who directly or indirectly controls, or is controlled by, or is under common control with, an issuer.  Affiliates can also include an executive officer or a director or large shareholder who is in a relationship of control with respect to the issuing company.  Restricted securities bear a legend indicating that the securities may not be resold in the marketplace unless they are registered with the SEC or are exempt from such registration requirements.

Securities Act Rule 144 (“Rule 144”), codified at 17 C.F.R. § 230.144, provides a registration exemption for restricted securities.  Specifically, it permits the public resale of restricted securities if a number of conditions are met, including conditions relating to how long the securities are held, the way in which they are sold, the public information available to investors about the securities, and the amount that can be sold at any one time.  Pursuant to Rule 144, however, even if these conditions are met, the sale of restricted securities to the public is still not permitted until a transfer agent removes the “restricted” legend from the security. 

The term “transfer agent” refers to a company that keeps track of individuals and entities that own the stocks and bonds of a given company that has publicly traded securities.  Among other things, transfer agents issue and cancel certificates to reflect changes in ownership, serve as the company’s intermediary for payouts, exchanges, or mailings, and handle lost, destroyed or stolen certificates.  Transfer agents also, when appropriate, remove the “restricted” legend from securities. 

A Rule 144 Seller’s Representation Letter, or “Seller’s Representation Letter,” is a letter from an affiliate seller (that is, a seller in a relationship of control with the issuer, such as an executive officer, a director, or a large shareholder) of restricted securities to a transfer agent to establish certain facts underlying a legal opinion that the securities at issue can be sold publicly pursuant to Rule 144.  The issuer’s consent to the removal of a legend typically comes in the form of an opinion letter from the issuing company’s attorney, the Seller’s Representation Letter, indicating that the securities at issue satisfy the conditions of Rule 144.  Seller’s Representation Letters contain multiple attestations that are required by law prior to the restricted legend being removed.  The transfer agent relies on the Seller’s Representation Letter in determining whether to remove the restricted legend from a security.

Over-the-Counter Securities and OTC Markets Group

Over-the-counter (“OTC”) securities are securities that are traded between two counterparties outside of a formal securities exchange.  OTC Markets Group (“OTC Markets”) is a securities market headquartered in New York, New York, that provides price and liquidity information for OTC securities.

OTC Markets requires issuers seeking to be listed on OTC Markets to hire a licensed attorney to review company records and submit a letter to OTC Markets (an “OTC Markets Attorney Letter”) regarding whether information publicly disclosed by the issuer is in compliance with the condition in SEC Rule 144 governing the public information available to investors about the issuer.  OTC Markets relies on the OTC Markets Attorney Letter to determine whether an issuer’s security may be listed on OTC Markets.  OTC Markets Attorney Letters are available to the public on the OTC Markets website. 

The Scheme to Defraud

From at least in or about 2011 through at least in or about September 2018, CRAFT and Rubin participated in a fraudulent scheme in which CRAFT falsely represented that he had undertaken certain legal work in connection with Seller’s Representation Letters, OTC Markets Attorney Letters, and S-1 Opinion Letters, all of which enabled the relevant securities to be sold to the investing public.  The false representations were in letters pertaining to over a dozen companies.

CRAFT, 56, of Tequesta, Florida, pled guilty to one count of securities fraud in violation of 15 U.S.C. §§ 78j(b) and 78ff, 17 C.F.R. § 240.10b-5, and 18 U.S.C. § 2, which carries a maximum sentence of 20 years in prison.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

CRAFT will be sentenced on February 24, 2022, at 10:30 a.m.  CRAFT’s co-defendant, Richard Rubin, was sentenced on November 2, 2021, to one year’s probation, 200 hours of community service, and a $1,000 fine.  Rubin was also ordered to forfeit $117,068.15 in crime proceeds. 

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Mr. Williams praised the investigative work of the Office of Inspector General of the SEC and also thanked the SEC Division of Enforcement for its assistance. 

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

Damian Williams, the United States Attorney for the Southern District of New York, announced today that AMID MAGERRAMOV was sentenced to 10 years in prison for conspiring to import massive quantities of carfentanil and fentanyl into the United States.  MAGERRAMOV pled guilty on May 4, 2021, before U.S. District Judge J. Paul Oetken, who imposed today’s sentence.   

U.S. Attorney Damian Williams stated: “Amid Magerramov conspired to import into the U.S. large quantities of fentanyl and carfentanil – an opioid so potent that its legitimate use is as an elephant sedative.  Appropriately, he has now been sentenced to prison for conspiring to add fuel to the fire that is the opioid crisis in this country.”

According to the Complaint, Indictment, and other filings in the case:

Between approximately October 2017 and August 2018, MAGERRAMOV conspired to import large quantities of carfentanil and fentanyl into the United States.  Carfentanil is a fentanyl analogue approximately 1,000 times more potent than heroin, and is used commercially to sedate large animals such as elephants.  During that period, MAGERRAMOV participated in a series of recorded meetings and telephone communications with an individual he understood to be affiliated with an international drug trafficking organization, for the purpose of arranging to import narcotics into the United States.  That individual was, in fact, a confidential source (the “CS”) working with the U.S. Drug Enforcement Administration (“DEA”).  MAGERRAMOV and his co-conspirators prepared and distributed a total of over five kilograms of substances containing carfentanil for importation into the United States. 

In mid-October 2017, MAGERRAMOV met together with the CS in Estonia.  During the meeting, the CS informed MAGERRAMOV that the CS was a member of a Colombian drug cartel that distributed narcotics in the United States and laundered the resulting proceeds. 

Throughout late 2017 and early 2018, the CS also participated in a series of meetings with MAGERRAMOV and his co-conspirators to discuss narcotics transactions.  During the meetings, MAGERRAMOV agreed to provide the CS with fentanyl in Denmark, with the understanding that the fentanyl would be transported to the United States, mixed with heroin and other controlled substances, and sold to the cartel’s customers in New York City, among other places.

In May 2018, MAGERRAMOV coordinated the delivery of samples of carfentanil to the CS in Denmark.  On May 9, 2018, MAGERRAMOV and his co-conspirators delivered three samples of narcotics to an agreed-upon location in Denmark.  The three samples were seized by law enforcement, tested in a laboratory, and found to contain approximately 550 grams of mixtures and substances containing carfentanil.  The CS later informed MAGERRAMOV that the three samples had been transported to the United States, that the purported cartel was satisfied with the quality of the narcotics, and that the CS wanted to purchase additional carfentanil from MAGERRAMOV and his associates.

In late May 2018, MAGERRAMOV arranged to have additional carfentanil delivered to the CS for importation into the United States.  On May 30, 2018, one of MAGERRAMOV’s co-conspirators delivered a package of narcotics to an agreed-upon location in Denmark.  The package was seized by law enforcement, tested in a laboratory, and found to contain approximately 5.2 kilograms of mixtures and substances containing carfentanil.  The CS subsequently reported to MAGERRAMOV that the carfentanil had been transported to the United States.     

During June and July 2018, the CS continued to meet and communicate with MAGERRAMOV about arranging additional narcotics transactions in the future and payment for the carfentanil that had been delivered.

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MAGERRAMOV, 40, of Estonia, pled guilty to one count of conspiring to import fentanyl and carfentanil into the United States.  In addition to the prison term, MAGERRAMOV was ordered to forfeit $38,500.

Mr. Williams praised the outstanding efforts of the DEA’s Special Operations Division, the DEA’s Country Office in Copenhagen, Denmark, the Estonia Central Criminal Police, the Estonia Office of the Prosecutor General, and the U.S. Department of Justice’s Office of International Affairs.

This case is being handled by the Office’s Terrorism and International Narcotics Unit.  Assistant U.S. Attorneys George D. Turner and Kyle A. Wirshba are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision (“DOCCS”), announced today the unsealing of a federal indictment, charging former correction officer AARON FINN with violating the constitutional rights of an inmate in the custody of the DOCCS.  FINN is alleged to have willfully used excessive force amounting to cruel and unusual punishment against a restrained inmate by striking and thrashing him, causing bodily injury to that inmate, in violation the inmate’s rights under the United States Constitution. FINN was arrested this morning, and was presented before U.S. Magistrate Judge Andrew E. Krause in White Plains federal court this afternoon. This case been assigned to U.S. District Judge Nelson S. Román.

U.S. Attorney Damian Williams said:  “Correction officer Aaron Finn allegedly assaulted an inmate whom he was sworn not only to guard—but also to protect.  The manner in which a country treats its incarcerated is indicative of its values, and today’s indictment underscores that incarceration should not result in undue loss of human dignity. Unfair and illegal abuses to those serving their debt to society cannot and will not be tolerated by this Office.”

FBI Assistant Director-in-Charge Michael J. Driscoll said: “Those charged with maintaining a stable environment within the prison system are not exempt from facing charges themselves if their conduct crosses constitutional lines. Today we allege Finn did just that when he applied excessive force against an inmate. Allegations of this type will always be investigated and never be tolerated.”

DOCCS Acting Commissioner Anthony J. Annucci said:  “The Department is overwhelmingly comprised of dedicated, professional staff who take their jobs seriously and carry out their duties in a professional manner, and those few who choose to violate their oath of office,  are not welcome among our ranks. The message here is loud and clear: criminal behavior will not be tolerated and those who break the law will be held accountable and prosecuted. I am proud that the Department’s Office of Special Investigations was able to partner with the Federal Bureau of Investigation in this arrest and the pursuit of justice.”

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

Green Haven Correctional Facility is a maximum security prison located in the town of Stormville, New York, and is maintained by the DOCCS.  At the time of the deprivation of the inmate’s constitutional rights, FINN was employed at Green Haven as a correction officer. On March 19, 2020, while working at Green Haven, FINN struck an inmate in DOCCS custody (“Inmate-1”) multiple times, and thrashed Inmate-1’s body and head while Inmate-1 was restrained.

*                *                *

AARON FINN, 35, of Hyde Park, New York, is charged with one count of deprivation of civil rights under color of law, which carries a maximum sentence of 10 years in prison.

Mr. Williams praised the investigative work of the FBI, and the Department of Corrections and Community Supervision Office of Special Investigations.   

The case is being handled by the Office’s White Plains Division and Civil Rights Unit.  Assistant United States Attorneys Charles S. Jacob and Lindsey Keenan are in charge of the prosecution.

The allegations 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 descriptions of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Ryan T. Geach, Special Agent-in-Charge of the Department of Justice Office of the Inspector General New York Field Office (“DOJ-OIG”), and Frank Russo, Director of Field Operations for U.S. Customs and Border Protection in New York (“CBP”), announced today the unsealing of an indictment charging three current or former Bureau of Prisons (“BOP”) employees, as well as eight former inmates of the Metropolitan Correctional Center (“MCC”), of conspiring to smuggle contraband such as drugs, alcohol, and cellphones to inmates at the MCC. Two of the BOP employees were also charged with obstructing justice.  Four of the defendants were arrested today and will be presented before Magistrate Judge Sarah L. Cave later today.  The additional defendants are already in federal custody and will be presented in this District at a later date.   The case has been assigned to U.S. District Judge Andrew L. Carter.

U.S. Attorney Damian Williams said:  “As alleged, MCC corrections officers Perry Joyner and Mario Feliciano, and MCC unit secretary Sharon Griffith-McKnight, undermined the institution they swore to serve by conspiring with the very inmates they are charged to protect by smuggling contraband into the MCC and, in the case of Joyner and Griffith-McKnight, by obstructing the pursuit of justice.  This Office is committed to rooting out corruption in our jails and prisons.”

FBI Assistant Director-in-Charge Michael J. Driscoll said:  “Federal law enforcement officers take an oath to defend the laws of the United States and protect its citizens. We allege the guards we've arrested today acted like nothing more than the criminals in their charge and assisted incarcerated offenders in committing more crimes. Our FBI/NYPD Joint Violent Crimes Task Force is working with our partners to root out the corruption we've uncovered; they will find everyone who should be held accountable for their blatant disregard for the law.”

DOJ-OIG Special Agent-in-Charge Ryan T. Geach said:  “The defendants allegedly engaged in an extensive scheme to introduce dangerous contraband into MCC New York, threatening the safety and security of the institution, inmates, staff, and the public.”

CBP Director of Field Operations Frank Russo said: “As public servants, we are naturally held to a higher standard of conduct and subject to the same laws and rules that apply to private citizens. CBP will fully assist the Department of Justice in any and all investigations involving alleged unlawful conduct by our personnel, including cases that involve conduct which occurred prior to employment with CBP.”

According to the Indictment[1] unsealed today:

The defendants participated in an extensive scheme involving bribery and smuggling of contraband, and the distribution of contraband within the MCC.  The defendants include two current employees of the BOP, PERRY JOYNER and SHARON GRIFFITH-MCKNIGHT, and one former employee of the BOP, MARIO FELICIANO, as well as eight former MCC inmates: DONNELL MURRAY, a/k/a “Don P,” MARKEEN JORDAN, a/k/a “Kingo,” ANTHONY ELLISON, a/k/a “Harv,” TYRELL SUMPTER, a/k/a “Rell,” KEVIN CROSBY, a/k/a “Sama,” DAVID VALERIO, a/k/a “Santana,” a/k/a “Bando,” VIRGILIO ACEVEDO DE LOS SANTOS, a/k/a “Jairo Taveras,” a/k/a “Junior,” and STARLIN NUNEZ, a/k/a “Chino,” a/k/a “Junior.”

The contraband that JOYNER, FELICIANO, and GRIFFITH-MCKNIGHT smuggled into the MCC included controlled substances, cellphones, alcohol, and cigarettes.  For their efforts, JOYNER and FELICIANO agreed to receive, and did receive, bribes from the inmate-defendants.

During the course of the scheme, in an effort to obtain a lesser sentence for ELLISON, GRIFFITH-MCKNIGHT submitted a letter to the District Judge responsible for sentencing inmate and co-defendant ELLISON that falsely described ELLISON as a “model inmate” even though at the time GRIFFITH-MCKNIGHT was smuggling contraband to ELLISON and therefore knew he was anything but a “model inmate.”  Relying on this letter from GRIFFITH-MCKNIGHT, the District Judge who presided over ELLISON’s sentencing remarked that ELLISON’s purported good behavior in prison was “impressive” and that “[u]nless this is some sort of Grisham novel, and people are all corrupt and making all of this up about [ELLISON], it seems to me that it’s unavoidable that [ELLISON’s] trajectory at the MCC contains a lot of good.”

JOYNER obstructed justice by intimidating and threatening an inmate—an inmate that JOYNER was charged with protecting—whom JOYNER believed was providing the Government with information about JOYNER’s participation in the charged scheme.        

*                *                *

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 assigned to each case.

Mr. Williams praised the outstanding work of the FBI, DOJ OIG, Special Agents from the U.S. Attorney’s Office for the Southern District of New York, and CBP.

The prosecution of this case is being handled by the Office’s Public Corruption and Narcotics Units.  Assistant United States Attorneys Aline R. Flodr, Jonathan E. Rebold, and Daniel H. Wolf 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.

21-313                                                                                                                                                                                                            ###

Count

Defendant(s)

Max. Term of Imprisonment

Count One:

Perry Joyner (age 30)

Sharon Griffith-McKnight (age 35)

Mario Feliciano (age 30)

Donnell Murray (age 42)

Markeen Jordan (age 28)

Anthony Ellison (age 34)

Tyrell Sumpter (age 27)

Kevin Crosby (age 25)

David Valerio (age 34)

Virgilio Acevedo de Los Santos (age 44)

Starlin Nunez (age 45)

5 years

Count Two: Honest Services Wire Fraud Conspiracy

(18 U.S.C. § 1349)

Perry Joyner

Mario Feliciano

Donnell Murray

Markeen Jordan

Anthony Ellison

Tyrell Sumpter

Kevin Crosby

David Valerio

Virgilio Acevedo de Los Santos

Starlin Nunez

20 years

Count Three: Narcotics Conspiracy

(21 U.S.C. §§ 846, 841(b)(1)(C), 841(b)(1)(D), 841(b)(1)(E), and 841(b)(2))

Perry Joyner

Donnell Murray

Markeen Jordan

Anthony Ellison

Tyrell Sumpter

Kevin Crosby

David Valerio

Virgilio Acevedo de Los Santos

Starlin Nunez

20 years

Count Four: Obstruction of Justice

(18 U.S.C. §§ 1512(b)(3))

Perry Joyner

20 years

Count Five: Obstruction of Justice (18 U.S.C. §§ 1512(a)(2)(C) and 2)

Sharon Griffith-McKnight

20 years

[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 therein should be treated as an allegation.  The defendant is presumed innocent unless and until proven guilty.

Damian Williams, the United States Attorney for the Southern District of New York, and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging JOSEPH JAMES O’CONNOR, a/k/a “PlugwalkJoe,” with conspiracy to commit computer hacking and other crimes in connection with a SIM swapping scheme that resulted in the theft of approximately $784,000 worth of cryptocurrency.  The case has been assigned to U.S. District Judge Richard M. Berman.  O’CONNOR was previously arrested in Spain on other U.S. federal charges.  The Government is also pursuing O’CONNOR’s extradition from Spain on the charges in this case.

According to the allegations in the Indictment unsealed yesterday[1]:  

During a cyber intrusion known as a SIM swap attack, cyber threat actors gain control of a victim’s mobile phone number by linking that number to a subscriber identity module (“SIM”) card controlled by the threat actors, resulting in the victim’s calls and messages being routed to a malicious unauthorized device controlled by the threat actors.  The threat actors then typically use control of the victim’s mobile phone number to obtain unauthorized access to accounts held by the victim that are registered to the mobile phone number.

Between approximately March 2019 and May 2019, JOSEPH JAMES O’CONNOR, a/k/a “PlugwalkJoe,” the defendant, and his co-conspirators perpetrated a scheme to use SIM swaps to conduct cyber intrusions in order to steal approximately $784,000 worth of cryptocurrency from a Manhattan-based cryptocurrency company (“Company-1”), which, at all relevant times, provided wallet infrastructure and related software to cryptocurrency exchanges around the world. 

As part of the scheme, O’CONNOR and his co-conspirators successfully perpetrated SIM swap attacks targeting at least three Company-1 executives.  Following a successful SIM swap attack targeting one of the executives on or about April 30, 2019, O’CONNOR and his co-conspirators successfully gained unauthorized access to multiple Company-1 accounts and computer systems.  On or about May 1, 2019, through their unauthorized access, O’CONNOR and his co-conspirators stole and fraudulently diverted cryptocurrency of various types (the “Stolen Cryptocurrency”) from cryptocurrency wallets maintained by Company-1 on behalf of two of its clients.  The Stolen Cryptocurrency was worth at least approximately $784,000 at the time of the theft and included approximately 770.784869 Bitcoin cash, approximately 6,363.490509 Litecoin, approximately 407.396074 Ethereum, and approximately 7.456728 Bitcoin. 

After stealing and fraudulently diverting the Stolen Cryptocurrency, O’CONNOR and his co-conspirators laundered it through dozens of transfers and transactions and exchanged some of it for Bitcoin using cryptocurrency exchange services.  Ultimately, a portion of the Stolen Cryptocurrency was deposited into a cryptocurrency exchange account controlled by O’CONNOR.

*                *                *

O’CONNOR, 22, of the United Kingdom, is charged with conspiracy to commit computer hacking, which carries a maximum sentence of five years in prison; conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; aggravated identity theft, which carries a mandatory sentence of two years in prison, which must run consecutively to any other prison term imposed on the other charges; and conspiracy to commit money laundering, which carries a maximum term of 20 years in prison.  The maximum potential sentences set forth above are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the Court.

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

Mr. Williams praised the outstanding work of the FBI.  Mr. Williams also thanked the Department of Justice Office of International Affairs for its assistance in this matter.

This prosecution is being handled by the Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorney Olga I. Zverovich is in charge of the prosecution.

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

Damian Williams, the United States Attorney for the Southern District of New York, announced today that DONALD BLAKSTAD, the owner and principal of a California-based investment fund, was sentenced today in Manhattan federal court to 36 months in prison for committing insider trading and orchestrating a securities offering fraud scheme.   In June 2021, a jury found BLAKSTAD guilty of conspiracy, securities fraud, and wire fraud offenses following a two-week jury trial before U.S. District Judge Edgardo Ramos, who imposed today’s sentence.

According to the Indictment, evidence presented at trial, and statements made in connection with sentencing:

BLAKSTAD was a stock trader and the owner and principal of an investment fund known as Midcontinental Petroleum Inc. (“Midcontinental Petroleum”), which purported to be in the business of soliciting investments in the energy industry.  Martha Bustos was a former certified public accountant who worked in the finance department at Illumina, Inc. (“Illumina”), a San Diego-based biotechnology company whose securities trade on NASDAQ.  By virtue of her employment at Illumina, Bustos had access to material nonpublic information about Illumina’s financial condition, including its earnings. 

On several occasions, from 2016 through 2018, BLAKSTAD obtained inside information about Illumina’s financial condition from Bustos before Illumina publicly announced its earnings and financial results.  As BLAKSTAD knew, Bustos owed a duty to keep inside information about Illumina confidential. 

BLAKSTAD, aware of Bustos’s breach of duty to Illumina, used this inside information to make profitable trades in Illumina securities shortly before Illumina’s earnings announcements.  At times, BLAKSTAD tipped his associates so that they could trade Illumina stock and options based on the inside information.  At other times, in order to avoid detection, BLAKSTAD arranged for his associates to purchase Illumina securities for BLAKSTAD’s benefit in accounts controlled by his associates. 

Following the public announcement of Illumina’s earnings, BLAKSTAD and his associates sold the Illumina securities at a significant profit, sometimes exceeding more than 2,000 percent.  In total, BLAKSTAD and his associates made more than $6 million in profits from purchasing and selling Illumina securities. 

In addition, from at least in or about 2015 through at least in or about 2019, BLAKSTAD devised and operated a securities offering fraud to fraudulently obtain more than a $1 million from a number of investors.  BLAKSTAD fraudulently induced victim investors to make up-front, lump-sum investments for securities issued by Midcontinental Petroleum, which funds BLAKSTAD then misappropriated, in substantial part. 

To facilitate the scheme, BLAKSTAD made false and misleading representations to investor victims regarding how their investment funds would be utilized.  During the scheme, at BLAKSTAD’s direction, victims transmitted their funds, including by wire transfer, into bank accounts that were controlled by BLAKSTAD.  Once he obtained these investor funds, BLAKSTAD did not use them for the purposes he had represented to investors.  Instead, BLAKSTAD diverted a substantial portion of victims’ funds to himself and to co-conspirators.  For example, BLAKSTAD used the funds to pay for a variety of personal expenses and for purposes that were unrelated to the business of Midcontinental Petroleum. 

BLAKSTAD also made a series of false and misleading statements to victims designed to avoid detection, perpetuate the scheme, and keep the victim funds he received as a result of the fraud.

In total, BLAKSTAD’s schemes yielded more than $7 million in criminal profits.

*                *                *

In addition to his prison term, BLAKSTAD, 62, of San Diego, California, was sentenced to three years of supervised release and ordered to pay restitution to victims in the amount of $669,000.        

Mr. Williams praised the investigative work of the Federal Bureau of Investigation and thanked the Securities and Exchange Commission, which brought a separate civil action. 

This case is being handled by the Office’s Securities and Commodities Fraud Unit. Assistant U.S. Attorneys Edward A. Imperatore and Jared Lenow are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, John J. Durham, Director of Joint Task Force Vulcan (“JTFV”), Anne Milgram, Administrator of the Drug Enforcement Administration (“DEA”), Jay Greenberg, Acting Assistant Director of the Criminal Investigative Division of the Federal Bureau of Investigation (“FBI”), and Steve Francis, Acting Executive Associate Director, Department of Homeland Security, Homeland Security Investigations (“HSI”), announced the unsealing of a Superseding Indictment in Manhattan federal court charging YULAN ANDONY ARCHAGA CARÍAS, a/k/a “Alexander Mendoza,” a/k/a “Porky,” and DAVID CAMPBELL, a/k/a “Viejo Dan,” a/k/a “Don David,” with committing racketeering, narcotics trafficking, and firearms offenses.  ARCHAGA Carías, a Honduran national, remains at large and has been added to the FBI’s Ten Most Wanted Fugitives List, the DEA’s Most Wanted Fugitives List, and HSI’s Most Wanted Fugitives List.  CAMPBELL, a Honduran national, is currently in custody in Nicaragua.  The case is assigned to U.S. District Judge Gregory H. Woods.

U.S. Attorney Damian Williams said: “As alleged, Yulan Andony Archaga Carías is MS-13’s highest-ranking member in Honduras, responsible for trafficking multi-ton shipments of cocaine into the U.S. and ordering and overseeing the multiple violent acts carried out to make those shipments happen.  These allegedly included numerous murders of rivals.  David Campbell was, until his capture, allegedly one of Archaga Carías’s major suppliers of drugs and guns, and he planned and coordinated violent acts with Archaga Carías.  Campbell is in custody, and now a reward is offered for information leading to the arrest of Archaga Carías.”

JTFV Director John J. Durham said: “MS-13 violence, fueled by drug trafficking and firearms, has a devastating impact across the United States and Central America.  The indictment unsealed today, which charges the highest ranking leader of MS-13 in Honduras and one of MS-13’s alleged main drug suppliers in Honduras, shows that no leader of MS-13 is beyond the reach of the Department of Justice and United States law enforcement.  JTFV gratefully appreciates its partnership with the U.S. Attorney’s Office for the Southern District of New York, and will continue to work with our law enforcement partners to dismantle MS-13’s command and control structure throughout the Western Hemisphere.”

DEA Administrator Anne Milgram said: “For decades, MS-13 has been synonymous with extreme violence and brutality.  The only way to weaken and disrupt criminal organizations that wreak havoc on our communities is to attack them at their core – their leadership and suppliers.  DEA’s successful investigation leading to today’s charges, along with the addition of Archaga Carías to the DEA and FBI most wanted lists, represent a significant stride in our efforts to stop the devastating effects of MS-13’s violent drug trafficking activities that endanger the safety and health of Americans.”

Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division said: “This indictment demonstrates the resolve of the FBI to aggressively pursue transnational criminal gangs like MS-13.  We will work with our law enforcement partners to find wanted fugitives wherever they seek refuge and hold them accountable for their crimes."

HSI Acting Executive Associate Director Steve Francis said: “Today’s announcement highlights our commitment to working with domestic and international law enforcement partners to dismantle gangs like MS-13.  By contributing our unique capabilities to this joint effort, Homeland Security Investigations is helping to make our nation safer.”

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

Mara Salvatrucha, commonly known as MS-13, is a transnational criminal organization that engages in acts of violence, including murders, kidnapping, assaults, extortion, and large-scale drug importation and distribution throughout Central America and the United States.  ARCHAGA CARÍAS is the highest-ranking member of MS-13 in Honduras.  As the leader and highest-ranking member of MS-13 in Honduras, ARCHAGA CARÍAS is in charge of, among other things, the gang’s drug trafficking operations, ordering and coordinating acts of violence, including numerous murders, and the laundering of drug proceeds.  MS-13’s drug trafficking operations led by ARCHAGA CARÍAS include the processing, receiving, transporting, and distributing of multi-ton loads of cocaine shipped through Honduras and into the United States. 

ARCHAGA CARÍAS and other MS-13 members and associates acting at his direction also provided protection for other drug trafficking organizations (“DTOs”) engaged in transporting multi-ton loads of cocaine through Honduras and destined for the United States.  ARCHAGA CARÍAS contracted out members of MS-13 as “Sicarios,” or hit men, to other DTOs for payment.  In that role, members of MS-13 committed numerous murders for hire for DTOs trafficking cocaine through Honduras to the United States.  ARCHAGA CARÍAS and MS-13 also supplied other DTOs with firearms, including machineguns, that were received from El Salvador, Nicaragua, and elsewhere.  ARCHAGA CARÍAS also ordered multiple murders of rival gang members and drug trafficking competitors in Honduras, as well as other members of MS-13 who ARCHAGA CARÍAS believed had been disloyal to the gang. 

CAMPBELL was one of the principal suppliers of cocaine and weapons, including machineguns, to MS-13.  As an associate of MS-13 and close confidant of ARCHAGA CARÍAS, CAMPBELL planned and coordinated retaliatory acts of violence with ARCHAGA CARÍAS, and assisted MS-13 and ARCHAGA CARÍAS in establishing businesses to launder the gang’s drug proceeds.  CAMPBELL and MS-13 used businesses they owned or controlled to launder drug proceeds, including through banks in the United States.

*                      *                      *

ARCHAGA CARÍAS, 39, of Honduras, remains at large, and has now been named to the FBI’s Ten Most Wanted Fugitives List (https://www.fbi.gov/wanted/topten), the DEA’s Most Wanted Fugitives List (https://www.dea.gov/fugitives), and HSI’s Most Wanted Fugitives List.  The FBI is offering up to $100,000 for information leading to the arrest of ARCHAGA CARÍAS.  Anyone with information that may lead to the arrest of ARCHAGA CARÍAS can contact the FBI at 1-800-CALL-FBI.  CAMPBELL, 54, of Honduras, is currently in custody in Nicaragua on local charges.

If convicted, each defendant faces a maximum penalty of life in prison and a mandatory minimum sentence of 40 years in prison.  A chart containing the charges and statutory minimum 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 a judge.

Mr. Williams praised the outstanding investigative work of the FBI, DEA, and HSI. 

The case is being handled by JTFV and the Office’s Terrorism and International Narcotics Unit.  Assistant United States Attorney Jacob Warren and Special Assistant United States Attorney Christopher A. Eason are in charge of the prosecution.   

Since its creation in August 2019, JTFV has successfully implemented a whole-of-government approach to combatting MS-13, including increasing coordination and collaboration with domestic and foreign law enforcement partners; designating priority MS-13 programs, cliques and leaders, who have the most impact on the United States, for targeted prosecutions; and coordinating significant MS-13 indictments, including the first use of national security charges against MS-13 leaders.  JTFV has comprised members from U.S. Attorney’s Offices across the country, including this Office, the Eastern District of New York, the Eastern District of Texas, the District of New Jersey, the Northern District of Ohio, the District of Utah, the Eastern District of Virginia, the District of Massachusetts, the District of Alaska, the Southern District of Florida, the Southern District of California, the District of Nevada, and the District of Columbia, as well as the National Security Division’s Counterterrorism Section and the Criminal Division’s Organized Crime and Gang Section.  All Department of Justice law enforcement agencies are involved in the effort, including the FBI, DEA, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, and the U.S. Bureau of Prisons.  In addition, HSI plays a critical role in JTFV.  The Organized Crime Drug Enforcement Task Forces (“OCDETF”) also supports JTFV in its mission.  OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

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

COUNT

CHARGE

DEFENDANTS

MIN./MAX. PENALTIES

1

Racketeering conspiracy

18 U.S.C. § 1962(d)

YULAN ANDONY ARCHAGA CARÍAS, a/k/a “Alexander Mendoza,” a/k/a “Porky,” and

DAVID CAMPBELL,

a/k/a “Viejo Dan,” a/k/a “Don David”

Life in prison

2

Narcotics importation conspiracy

21 U.S.C. § 963

YULAN ANDONY ARCHAGA CARÍAS, a/k/a “Alexander Mendoza,” a/k/a “Porky,” and

DAVID CAMPBELL,

a/k/a “Viejo Dan,” a/k/a “Don David”

Life in prison

Mandatory minimum of 10 years in prison

3

Using or carrying a machinegun during and in relation to, or possessing a machinegun in furtherance of, a narcotics trafficking crime

§§ 924(c)(1)(A) and 924(c)(1)(B)(ii)

YULAN ANDONY ARCHAGA CARÍAS, a/k/a “Alexander Mendoza,” a/k/a “Porky,” and

DAVID CAMPBELL,

a/k/a “Viejo Dan,” a/k/a “Don David”

Life in prison

Mandatory minimum of 30 years in prison

4

Machinegun conspiracy

18 U.S.C. § 924(o)

YULAN ANDONY ARCHAGA CARÍAS, a/k/a “Alexander Mendoza,” a/k/a “Porky,” and

DAVID CAMPBELL,

a/k/a “Viejo Dan,” a/k/a “Don David”

Life in prison

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

Damian Williams, the United States Attorney for the Southern District of New York, announced that DAVIT YEGHOYAN pled guilty today to his role in a coast-to-coast racketeering enterprise referred to as “Pure Armenian Blood” or “P.A.B.,” in connection with the charges filed in United States v. Narek Marutyan, et al., 20 Cr. 652 (VM).  YEGHOYAN pled guilty before U.S. Magistrate Judge Sarah L. Cave, and will be sentenced by U.S. District Judge Victor Marrero on a date to be determined. 

U.S. Attorney Damian Williams said: “As a member of a sophisticated coast-to-coast organized criminal enterprise, Davit Yeghoyan enriched himself by stealing others’ identities, falsifying documents, and spending other people’s money, as he admitted in court today.” 

According to the allegations contained in the Indictment, and statements during court proceedings:

Pure Armenian Blood was an organized criminal group operating under the direction and protection of an unindicted co-conspirator (“CC-1”), a “vor v zakone” or “vor,” which are Russian phrases translated roughly as “Thief-in-Law” or “Thief,” and which refer to an order of elite criminals from the former Soviet Union who receive tribute from other criminals, offer protection, and use their recognized status as vor to adjudicate disputes among lower-level criminals.  Members and associates of Pure Armenian Blood operated under the direction and protection of CC-1, a vor of Armenian descent previously based in Los Angeles before being deported in or about 2018.  Pure Armenian Blood operated through groups of individuals, often with overlapping members or associates, dedicated to particular criminal tasks, particularly identity theft, access device fraud, and credit card fraud, among others.  While Pure Armenian Blood exploited victims and the financial system in New York City, it had operations in various locations throughout the United States and abroad, including through the use of purportedly legitimate business entities operating under the control and in conjunction with members of P.A.B. at various points throughout the conspiracy.

As a member of P.A.B., YEGHOYAN participated in and facilitated P.A.B’s various illicit activities, including the use of counterfeit credit cards and stolen personal identifying information, selling goods purchased with counterfeit credit cards for profit, fraudulently opening and exhausting lines of credit, and then falsifying documents to “clean” the credit of account holders in whose names the lines of credit were opened, and making purchases at collusive businesses with counterfeit credit cards or credit cards that were fraudulently opened.

YEGHOYAN, 29, of Brooklyn, New York, pled guilty to participating in a racketeering conspiracy, which carries a maximum penalty of 20 years in prison.  The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.

*                *                *

Mr. Williams praised the outstanding investigative work of FBI New York’s Eurasian Organized Crime Squad, as well as the FBI’s Newark, Los Angeles, and Miami offices, Homeland Security Investigations, the New York City Police Department, the United States Postal Inspection Service, and United States Customs and Border Protection for their investigative efforts and ongoing support and assistance with the case.  This case is part of an Organized Crime Drug Enforcement Task Force (“OCDETF”) operation.  OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.

The prosecution of this case is being overseen by the Office’s Money Laundering and Transitional Criminal Enterprise Unit.  Assistant U.S. Attorneys Benet J. Kearney, Abigail S. Kurland, and Emily Deininger are in charge of the case.

Damian Williams, the United States Attorney for the Southern District of New York, Ray Donovan, Special Agent in Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”), and Thomas A. Gleason, Commissioner of the Westchester County Department of Public Safety, announced that JORGE APONTE-GUZMAN, NELSON AGRAMONTE-MINAYA, and CARLOS MAISONET-LOPEZ were indicted yesterday for their participation in a drug trafficking conspiracy.  The defendants were arrested on September 29, 2021, and were presented before United States Magistrate Judge Gabriel W. Gorenstein on September 30, in the cases of AGRAMONTE-MINAYA and MAISONET-LOPEZ, and on October 1, in the case of APONTE-GUZMAN.  The case is assigned to United States District Judge Alison J. Nathan. 

U.S. Attorney Damian Williams said: “This investigation has yielded the seizure of approximately 920 kilograms of cocaine, disrupting an alleged narcotics trafficking organization.  Thanks to our partners at the DEA, this massive quantity of dangerous drugs has been kept off the streets.”

DEA Special Agent in Charge Ray Donovan said: “A multimillion-dollar storm of cocaine was seized before it could wreak havoc in the Northeast.  Over one ton of cocaine was seized, making it the largest cocaine seizure destined for the streets of New York in over a decade.  This seizure signifies a shift in the illegal drug landscape in New York, with cocaine seizures rising more than 150% in the last year.  DEA and our law enforcement partners will continue to guard against drug trafficking organizations’ tactics and techniques to smuggle drugs into our country.”

Westchester County Police Commissioner Thomas A. Gleason said: “A seizure of this magnitude underscores the critical importance of working together with our federal and local law enforcement partners in the DEA Westchester Task Force.  The tremendous work and dedication of the DEA and Task Force Investigators has interrupted a major drug distribution operation and prevented approximately one ton of dangerous, illegal narcotics from being distributed on the streets of our area.” 

According to the allegations in the Indictment unsealed yesterday in Manhattan federal court and in other public court documents[1]:

On or about September 29, 2021, APONTE-GUZMAN traveled in a rental van from a loading dock in New Jersey to the area of a New Jersey residence, where he was met by MAISONET-LOPEZ and AGRAMONTE-MINAYA.  Inside the rental van driven by APONTE-GUZMAN, law enforcement seized approximately 460 kilograms of cocaine that were packaged inside 10 large metal lawn rollers.  Records relating to the shipment of the lawn rollers indicate that the lawn rollers were shipped from Puerto Rico to New Jersey, with a consignee in the Bronx, New York. 

The next day, on or about September 30, 2021, DEA agents seized a substantially similar shipment of 10 large metal lawn rollers from the loading dock that APONTE-GUZMAN had visited the day before.  In that second shipment, agents found an additional approximately 460 kilograms of cocaine. 

*                      *                      *

APONTE-GUZMAN, 33, AGRAMONTE-MINAYA, 37, and MAISONET-LOPEZ, 32, are charged with conspiring to distribute and possess with intent to distribute at least five kilograms of cocaine, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.   

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

Mr. Williams praised the outstanding investigative work of the New York Division of the DEA, the Westchester County Department of Public Safety, and the Mt. Vernon Police Department.  Mr. Williams also thanked the Westchester Resident Office of the DEA, the Port Authority Police Department, the New Rochelle Police Department, the Portchester Police Department, the White Plains Police Department, and the Yonkers Police Department for their assistance in the investigation.

 The case is being handled by the Office’s Narcotics Unit.  Assistant United States Attorneys Kevin Mead and Samuel P. Rothschild are in charge of the prosecution.

The charges 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 other assertions in public court documents, and the descriptions of those documents set forth in this release, constitute allegations only, and every fact described should be treated as an allegation.

Damian Williams, the United States Attorney for the Southern District of New York, announced that DEREK JONES, an attorney currently suspended from practicing law in California, pled guilty today to one count of wire fraud. JONES is scheduled to be sentenced on February 23, 2022, before United States District Judge Loretta A. Preska, who accepted today’s plea.

According to the allegations set forth in the Indictment and other documents filed in the case:

From at least 2012 through at least 2019, JONES solicited and obtained investments into various companies and investment funds he controlled, including purported real estate development and investment firms using variations of the names “BlueRidge,” “Living City,” and “Atiswin,” and the purported venture capital firm Realize Holdings (“Realize”).  

In fraudulently inducing victims to invest in his funds, JONES routinely made materially false oral and written statements, including in glossy brochures and legal documents that contained lies about real estate purportedly owned or otherwise controlled by BlueRidge, Living City, and Atiswin. For example, JONES falsely told investors and prospective investors that BlueRidge was developing a “resort village” on land it controlled in Washington State, and separately that BlueRidge had purchased an existing hotel in that same location, when in fact neither BlueRidge nor JONES owned or controlled any of that property. In other cases, JONES falsely claimed that his companies were under contract to purchase a ranch in Colorado, and that his companies had leased various pieces of property slated for development. Instead, JONES misappropriated investors’ money, using much of it to make Ponzi-like payments to other investors to whom he owed money in connection with earlier transactions, and for personal and family expenses, including the private-school tuition of his children.

In executing his scheme, JONES also sent investors and others falsified and counterfeit documents. For example, on repeated occasions JONES provided doctored bank statements stating that he had millions of dollars in various corporate accounts, when in fact he had little or no money in such accounts. On other occasions, he provided counterfeit financial statements that falsely purported to be based on internal audits of companies that he controlled.

JONES defrauded investors—at least three of whom lived and/or transacted their banking in Manhattan—out of at least approximately $5.8 million. To prolong and conceal the fraud scheme, JONES regularly told lies designed to avoid meetings with or inquiries from victims. For example, in explaining his failure to respond promptly to questions or his reason for postponing meetings, JONES falsely told different investors, on different occasions, that one of his relatives was hospitalized and undergoing surgery. JONES also used the names of other individuals—without those individuals’ authorization or knowledge—to communicate via email with investors and thus foster the illusion that JONES’s businesses were viable operations with real employees.

*                *                *

JONES, 47, of California, pled guilty today to a single count of wire fraud.  That charge carries a maximum sentence of 20 years in prison.  The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the sentencing judge.

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

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys David Raymond Lewis, Michael C. McGinnis, and David M. Abramowicz are in charge of the prosecution.  

Damian Williams, the United States Attorney for the Southern District of New York, announced that ANTONIO MORA pled guilty today to drug trafficking and firearms offenses in connection with his participation in two Bronx-based narcotics conspiracies.  MORA is scheduled to be sentenced on February 3, 2022, by U.S. District Judge J. Paul Oetken, who accepted today’s plea.

U.S. Attorney Damian Williams said: “Antonio Mora was a prolific dealer of heroin and crack, and a violent enforcer for two different narcotics organizations.  Mora participated in multiple shootings of rival drug dealers, including a brazen daytime shooting on a busy residential street where Mora shot a man twice in front of his young daughter.  Now Mora awaits sentencing for his multiple acts of violence and drug trafficking.”

According to the Superseding Indictment, statements made in court, as well as other publicly filed documents in this case:

Between in or about December 2015 and in or about November 2018, MORA participated in two separate conspiracies to distribute crack cocaine and heroin in the Bronx and elsewhere.  MORA also participated in multiple shootings, including two in the second half of 2018.  On September 6, 2018, the defendant and a co-conspirator pursued a rival drug dealer in broad daylight and shot him in the abdomen.  On September 17, 2018, MORA and others chased down a rival drug dealer while he was walking on the street with his daughter in the Bronx, pulled the rival dealer’s daughter from his hands, and shot him twice in the leg.

*                      *                      *

MORA, 28, pled guilty to three counts: (1) conspiring to distribute and possess with intent to distribute 280 grams and more of crack cocaine and 1 kilogram and more of heroin from in or about December 2015 to June 2018, which carries a mandatory minimum prison term of 10 years and a maximum prison term of life; (2) conspiring to distribute and possess with intent to distribute crack cocaine and heroin from in or about June 2018 to November 2018, which carries a maximum term of 20 years in prison; and (3) using and carrying firearms during, and possessing firearms in furtherance of, the narcotics conspiracy, some of which firearms were discharged, which carries a mandatory consecutive prison term of 10 years and a maximum prison term of life.

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 the judge.

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

The case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant United States Attorneys Mathew Andrews, Courtney Heavey, Danielle Sassoon, and paralegal specialist Christopher Sykes are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced that JAMAL ADAMSON, a/k/a “J-Rock,” pled guilty today in Manhattan federal court for his participation in crimes with the Cash Money Boys gang, including the June 2010 murder of David Moore in East Harlem.  United States District Judge Gregory H. Woods accepted the defendant’s guilty plea.

U.S. Attorney Damian Williams said: “As a member of the violent Cash Money Boys street gang, Jamal Adamson caused the death of a 23-year-old man, attempted to kill another individual, and dealt dangerous drugs.  Now, Adamson faces significant prison time for his crimes and the harm he inflicted on his community.”

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

 The Cash Money Boys, or “CMB,” gang was a criminal enterprise involved in committing numerous acts of violence, including murder, attempted murder, robberies, and assaults in and around Manhattan.  Members and associates of CMB engaged in violence to retaliate against rival gangs, to promote the standing and reputation of CMB, and to protect the gang’s narcotics sales. 

From at least in or about 2006 to in or about 2017, members and associates of CMB regularly distributed crack cocaine and other drugs in the vicinity of Lexington Avenue between East 122nd Street and East 123rd Street.  CMB controlled drug sales within this area by prohibiting and preventing non-members, outsiders, and rival drug dealers from selling drugs in the area controlled by the gang.  This included gang members shooting at, assaulting, and/or robbing other drug dealers and members of rival gangs who entered CMB’s territory.  

On or about June 20, 2010, after members of CMB and a rival gang got into a physical altercation, ADAMSON shot and killed David Moore, 23, near the corner of East 122nd Street and Lexington Avenue. 

*                *                *

ADAMSON, 28, of New York, New York, pled guilty to a Superseding Information charging him with one count of racketeering conspiracy, in violation of 18 U.S.C. § 1962(d), which carries a maximum penalty of 20 years in prison, and one count of narcotics distribution conspiracy, in violation of 18 U.S.C. § 371, 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 the judge.

Mr. Williams praised the outstanding work of the New York City Police Department and the Special Agents of the United States Attorney’s Office for the Southern District of New York.

The case is being prosecuted by the Office’s Violent and Organized Crime Unit.  Assistant United States Attorneys Maurene Comey, Jacob Warren, Dominic A. Gentile, Christopher J. Clore, and Peter J. Davis are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that JOSHUA STREIT, a/k/a “Josh Brody,” was charged with conducting intrusions into Major League Baseball (“MLB”) computer systems, and illegally streaming copyrighted content from MLB, the National Basketball Association (“NBA”), the National Football League (“NFL”), and the National Hockey League (“NHL”), in connection with a website STREIT operated that offered the illegally streamed content to the public for profit.  In addition, STREIT is charged with extortion for attempting to extort approximately $150,000 from MLB.  STREIT is expected to be presented today before a U.S. magistrate judge in the District of Minnesota. 

U.S. Attorney Damian Williams said: “Joshua Streit is alleged to have illegally streamed sports content online from MLB, the NHL, the NBA, and the NFL for his own personal profit. Furthermore, Streit allegedly hacked MLB’s computer systems and attempted to extort $150,000 from the league. Thanks to this Office’s teamwork with all four major American sports leagues and the FBI, Streit has struck out on his illegal streaming and extortion scheme.”

FBI Assistant Director Michael J. Driscoll said: “We allege Mr. Brody hacked into the systems of several of our country's  biggest professional sports leagues and illegally streamed copyrighted live games. Instead of quitting while he was ahead, he allegedly decided to continue the game by extorting one of the leagues, threatening to expose the very vulnerability he used to hack them. Now instead of scoring a payday, Mr. Brody faces the possibility of a federal prison sentence as a penalty.”

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

Beginning in or about 2017, to in or about August 2021, JOSHUA STREIT a/k/a, “Joshua Brody,” the defendant, operated a website that streamed copyrighted content, primarily livestreamed games from major professional sports leagues, including MLB, the NBA, the NFL, and the NHL, which STREIT had no authorization to stream.  STREIT obtained the copyrighted content by gaining unauthorized access to the websites for those sports leagues via misappropriated login credentials from legitimate users of those websites.  One of the victim sports leagues sustained losses of approximately $3 million due to STREIT’s conduct.

In addition, at the same time STREIT was illicitly streaming copyrighted content from MLB, STREIT was engaged in an attempt to extort approximately $150,000 from MLB via a threat from STREIT to publicize alleged vulnerabilities in MLB’s internet infrastructure.  STREIT initiated the extortion scheme at the same time that he was exploiting MLB’s computer systems to gain unauthorized access to copyright content that he streamed for profit.

*                      *                      *

STREIT, 30 of St. Louis Park, Minnesota, is charged with: (1) one count of knowingly accessing a protected computer in furtherance of a criminal act and for purposes of commercial advantage and private financial gain, which carries a maximum sentence of five years in prison; (2) one count of knowingly accessing a protected computer in furtherance of fraud, which carries a maximum sentence of five years in prison; (3) one count of wire fraud, which carries a maximum sentence of 20 years in prison; (4) one count of illicit digital transmission, which carries a maximum sentence of five years in prison; and (5) one count of sending interstate threats with the intent to extort, which carries a maximum sentence of two years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the outstanding work of the FBI.  He also thanked MLB, the NBA, the NFL, and the NHL for their ongoing support and assistance with the case.

The case is being handled by the Office’s Complex Frauds and Cybercrime Unit, and Assistant U.S. Attorney Dina McLeod is in charge of the prosecution.

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

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

Damian Williams, the United States Attorney for the Southern District of New York, announced that DAMIR PEJCINOVIC was sentenced today to eight years in prison in connection with his participation and management of a criminal organization that committed a series of sophisticated burglaries and engaged in the interstate transportation of stolen goods between 2006 and 2017.  On November 19, 2020, PEJCINOVIC pled guilty before U.S. Magistrate Judge Kevin Nathaniel Fox to participating in a racketeering conspiracy.  PEJCINOVIC was sentenced today before U.S. District Judge Victor Marrero.

U.S. Attorney Damian Williams said: “For over a decade, the defendant supervised a sophisticated burglary crew that carried out multimillion-dollar heists all over the United States and on both sides of the Atlantic.  Today’s lengthy sentence sends an important message to members of criminal organizations that they will face justice for their crimes.”

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

Between 2006 and April 2017, DAMIR PEJCINOVIC, a/k/a “Damian,” a/k/a “CoCo,” Gzimi Bojkovic, a/k/a Jimmy,” Adrian Fiseku, and Elvis Cirikovic, a/k/a “Gorilla,” participated in a criminal organization whose members and associates engaged in, among other things, the commission of burglaries and the interstate transportation and sale of stolen goods.  The criminal organization operated principally in New York City, California, New Jersey, Pennsylvania, Florida, Massachusetts, Maine, and Europe.  Members and associates of the organization committed, conspired to commit, and attempted to commit numerous burglaries of jewelry stores and banks, as well as the interstate transportation and sale of stolen property from the burglaries.  PEJCINOVIC, Bojkovic, Fiseku, Cirikovic, and other members and associates of the criminal organization committed the following burglaries and attempted burglaries:

Between February 2006 and March 2006, PEJCINOVIC participated in a burglary of a restaurant and an attempted burglary of a jewelry store in Portland, Oregon.

On March 29, 2008, PEJCINOVIC, Bojkovic, and Cirikovic participated in a burglary of a jewelry store in New York, New York, that resulted in the theft of jewelry valued at over $2.5 million.

On October 11, 2008, PEJCINOVIC and Cirikovic participated in an attempted burglary of a jewelry store in Germany, attempting to steal gold valued at more than €10 million.

On July 26, 2009, PEJCINOVIC and Bojkovic participated in a burglary of a Manhattan jewelry store that resulted in the theft of jewelry valued at over $850,000.

On August 25, 2010, PEJCINOVIC participated in an attempted burglary of a jewelry store in Manhattan.

On August 28, 2010, PEJCINOVIC and Bojkovic participated in a burglary of a jewelry store in Beverly Hills that resulted in the theft of jewelry valued at over $70,000.

On September 5, 2010, PEJCINOVIC participated in a burglary of a jewelry store in Kansas City that resulted in the theft, interstate transportation, and sale of jewelry valued at over $1 million.

On February 19, 2011, PEJCINOVIC, Cirikovic, and Fiseku participated in a jewelry store in Los Angeles that resulted in the theft, interstate transportation, and sale of jewelry valued at over $3 million.

In the summer of 2011, PEJCINOVIC participated in an attempted burglary of a jewelry store in Brooklyn.

On September 16, 2011, PEJCINOVIC and Cirikovic participated in a burglary of a jewelry store in Los Angeles that resulted in the theft of jewelry valued at over $150,000.

In the fall of 2012, PEJCINOVIC and Bojkovic participated in an attempted burglary of a bank in Philadelphia.

On June 30, 2012, PEJCINOVIC and Cirikovic participated in an attempted burglary of a bank in Scarsdale, New York.

On July 22, 2012, PEJCINOVIC participated in an attempted burglary of a jewelry store in Manhattan.

In the fall of 2013, PEJCINOVIC, Bojkovic, and Cirikovic participated in the burglary of a jewelry store in New Jersey.

On December 31, 2016, PEJCINOVIC, Bojkovic, and Fiseku participated in the burglary of a jewelry store in Manhattan that resulted in the theft, interstate transportation, and sale of jewelry valued at over $3 million.

On March 20, 2017, PEJCINOVIC, Bojkovic, and Fiseku participated in the burglary of a jewelry store in Los Angeles that resulted in the theft of jewelry valued at over $2 million.               

*                      *                     *

In addition to his prison term, DAMIR PEJCINOVIC, 47, of New York, New York, was sentenced to three years of supervised release.  PEJCINOVIC was also ordered to pay restitution of $13,020,000.

Bojkovic, 39, of Staten Island, New York, pled guilty on October 7, 2019, to participating in a racketeering conspiracy.  He was sentenced on November 17, 2020, to 36 months in prison, three years of supervised release, and ordered to pay restitution of $9,020,000.00.

Fiseku, 38, of Staten Island, New York, pled guilty on March 13, 2020, to participating in a racketeering conspiracy.  He was sentenced on January 22, 2021, to 30 months in prison, three years of supervised release, and ordered to pay restitution of $8,600,000.00.

Cirikovic, 38, of Woodhaven, New York, pled guilty on August 26, 2019, to participating in a racketeering conspiracy.  He was sentenced on January 13, 2020, to 27 months in prison and ordered to pay restitution of $2,505,500.00. 

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and the New York City Police Department.  Mr. Williams also thanked the Los Angeles Police Department, Beverly Hills Police Department, Kansas City Police Department, Portland Police Department, German Federal Police, Interpol, Europol, the Justice Department’s Office of International Affairs, and the Manhattan District Attorney’s Office for their assistance in this investigation.

This case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant United States Attorneys Andrew K. Chan, Margaret Graham, and Jamie Bagliebter are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced that a jury returned guilty verdicts yesterday against OLUWASEUN ADELEKAN, a/k/a “Sean Adelekan,” and TEMITOPE OMOTAYO for conspiracies to commit wire fraud and money laundering, and aggravated identity theft.  U.S. District Judge Loretta A. Preska presided over the one-week trial.

U.S. Attorney Damian Williams said: “As a unanimous jury swiftly determined, Oluwaseun Adelekan and Temitope Omotayo were members of a years-long scheme to steal millions of dollars from businesses large and small across the globe and to launder their fraud proceeds domestically and internationally.  The two will now pay for their criminal activity and the harm they exacted upon their victims. ”

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

Beginning no later than in or about July 2016, ADELEKAN and OMOTAYO agreed with others to impersonate trusted advisers and business partners of victim individuals and businesses, and to trick those victims into wiring millions of dollars into “business” bank accounts controlled by ADELEKAN, OMOTAYO, and their co-conspirators. 

After the victims wired funds intended for their advisers and business partners to ADELEKAN, OMOTAYO, and their co-conspirators, ADELEKAN and OMOTAYO caused those funds to be transferred quickly into different bank accounts in various locations throughout the world, including China and Nigeria.  ADELAKAN and OMOTAYO also created fraudulent invoices and contracts, using their victims’ identities, to be submitted to banks in support of the large volume of funds that were fraudulently transmitted via wire transfers.           

Through these false and deceptive representations over the course of the scheme, ADELEKAN, OMOTAYO, and their co-conspirators caused losses to victims in excess of $6 million.

*                *                *

ADELEKAN, 39, of the United States and Nigeria, and OMOTAYO, 39, of Nigeria, were each convicted of (1) one count of conspiracy to commit wire fraud, which carries a maximum term of 20 years in prison; (2) one count of conspiracy to commit money laundering, which carries a maximum term of 20 years in prison; and (3) one count of aggravated identity theft, which carries a mandatory consecutive term of two years in prison.  The statutory maximum 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 Judge Preska.  The defendants are scheduled to be sentenced on January 27, 2022.

Mr. Williams praised the outstanding work of Homeland Security Investigations and Special Agents from 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 General Crimes Unit.  Assistant United States Attorneys Rebecca T. Dell, Daniel H. Wolf, and Robert B. Sobelman are in charge of the prosecution. 

Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced that DAMON BAILEY was arrested yesterday at Union Square subway station, one day after allegedly shooting a fellow train rider during rush hour at that station.  Today BAILEY was charged in a criminal Complaint with being a felon in possession of a firearm in connection with the subway shooting and an attempted deli robbery, with robbing two banks in Manhattan at gunpoint on October 25, 2021 and October 26, 2021, and with brandishing a firearm in connection with those bank robberies.  BAILEY was presented today in Manhattan federal court before United States Magistrate Judge Barbara Moses. 

U.S. Attorney Damian Williams said: “As alleged, during a brazen multiday armed robbery spree, Damon Bailey shot a fellow passenger on a crowded subway.  We commend the extraordinary work of our law enforcement partners who swiftly connected the many dots and safely apprehended the suspect.”

FBI Assistant Director Michael J. Driscoll said: “As we allege today, Mr. Bailey engaged in a gun and violent crime spree spanning several days.  In so doing, he terrorized several of our neighbors and deprived them of their right to feel safe as they live their lives.  The swift action taken today by the FBI/NYPD Joint Violent Crimes Task Force should serve as a reminder to all that we will not tolerate this type of behavior in our city.”

NYPD Commissioner Dermot Shea said: “As alleged, this individual, a day after committing a shooting in a subway, walked away from a Manhattan bank with a satchel of cash and three firearms – but thanks to NYPD officers, this crime spree came to an abrupt end. The NYPD, along with our federal partners at the United States Attorney’s Office for the Southern District of New York, will continue to work to ensure that this person is brought to justice for the series of violent crimes he is charged with.”

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

Over the course of three days, BAILEY committed two gunpoint robberies in Manhattan and attempted to commit two others.  On October 24, 2021, BAILEY flashed a firearm in his waistband and demanded money from a customer in a deli near Grand Central Station.  On October 25, BAILEY robbed a bank at gunpoint in lower Manhattan and, approximately ten minutes later, attempted to rob a victim on the subway and then shot the victim as the train pulled into Union Square station at rush hour.  On October 26, BAILEY robbed a second bank at gunpoint, in Chelsea.  In each of the robberies, BAILEY carried a light gray backpack and wore sneakers with a distinctive green toe box and white trim.

After the second robbery, BAILEY again got on the subway, but this time he was apprehended and arrested when he arrived at Union Square station.  Based on the proximity of the second bank to the NQR subway line, NYPD officers proceeded to a southbound platform at Union Square subway station and held an incoming train to conduct a search of the train cars for a person matching the description of the robber.  An officer found BAILEY in one of the train cars, wearing a light gray backpack and sneakers with a green toe box and white trim.  Upon his arrest, three firearms—two semiautomatic pistols and one revolver—were found inside his backpack.

*                 *                  *

BAILEY, 38, is charged with two counts of bank robbery, which carries a maximum sentence of 20 years in prison; one count of being a felon in possession of firearms, which carries a maximum sentence of 10 years in prison; and two counts of knowingly using and carrying a firearm during and in relation to a crime of violence, and possession of a firearm in furtherance of a crime of violence, which firearm was brandished, which carries a mandatory minimum term of seven years in prison consecutive to any other term of imprisonment, up to life 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 the judge.

Mr. Williams praised the outstanding, coordinated investigative work of the FBI and NYPD.

This case is being handle by the Office’s General Crimes Unit.  Assistant United States Attorney Jane Y. Chong is in charge of the prosecution.     

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

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

Damian Williams, the United States Attorney for the Southern District of New York, and Wendy C. Woolcock, Special Agent in Charge of the Special Operations Division of the U.S. Drug Enforcement Administration (“DEA”), announced today that a jury returned guilty verdicts yesterday against JEAN-CLAUDE OKONGO LANDJI and JIBRIL ADAMU on the charge of conspiring to traffic five kilograms and more of cocaine on board an aircraft owned by a United States citizen and registered in the United States.  U.S. District Judge Paul G. Gardephe presided over the two-week trial.

U.S. Attorney Damian Williams said: “As a jury found, Jean-Claude Okongo Landji and Jibril Adamu sought to exploit their abilities as pilots and use Landji’s private jet to smuggle multi-ton loads of cocaine from South America to West Africa and on to Europe and elsewhere.  Presuming they would be able to make regular runs to Europe, figuratively flying under the radar, Landji and Adamu were instead arrested in Croatia at the end of an initial test flight.  Now they await sentencing for their crime.”

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

Beginning in or about October 2017, LANDJI, ADAMU, and others agreed to use a United States-registered Gulfstream G2 private jet owned by LANDJI, a United States citizen, to distribute multi-ton quantities of cocaine in South America, Africa, Europe, and elsewhere.  LANDJI and ADAMU, who are both pilots, planned to use the G2 and other aircraft to fly unregistered and untraceable “black flights” with multi-thousand kilogram loads of cocaine from South America to West Africa to be unloaded at clandestine airstrips, including landing sites in the Sahara desert.  After the cocaine was off-loaded in Africa, LANDJI and ADAMU planned to use LANDJI’s aviation business, incorporated in the state of Georgia, as cover for cocaine smuggling flights to Europe and elsewhere.  For example, LANDJI agreed to use his company to arrange seemingly legitimate passenger “VIP” flights to Europe for which ADAMU would serve as a pilot while concealing multi-ton quantities of cocaine hidden on board for further distribution in European countries.  LANDJI and ADAMU further sought in particular to evade the scrutiny of the DEA and U.S. law enforcement and discussed methods to avoid the U.S. justice system.  For example, during recorded meetings in 2018, LANDJI agreed to traffic cocaine by aircraft with a co-conspirator who warned “if you put one kilo on a plane that has the American registration, it’s the same thing[] as putting it . . . in the middle of . . . Madison Square Garden in New York.  The same thing.  For the justice system.” 

On or about October 30, 2018, LANDJI and ADAMU conducted a test shipment and flew the G2 from Mali to Croatia with one kilogram of cocaine on board.  LANDJI and ADAMU expected that their successful provision of the one-kilogram cocaine sample to clients in Europe would pave the way for providing twice-monthly shipments of cocaine worth as much as $40 million each in the European market.  However, members of the Croatian National Police investigating LANDJI and ADAMU in coordination with the DEA searched the G2 following their arrival in Croatia, recovered the kilogram of cocaine, and arrested LANDJI and ADAMU.  Both defendants were later extradited to the United States.

*                *                *

LANDJI, 58, of the United States and Gabon, and ADAMU, 58, of Nigeria, were convicted of one count of conspiring to distribute and possess with intent to distribute cocaine with a United States citizen on board any aircraft, and on board an aircraft owned by a United States citizen or registered in the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.  The statutory minimum and maximum sentences 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 Judge Gardephe.

Mr. Williams praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, U.S. Customs and Border Protection, Homeland Security Investigations New York Office, the United Kingdom’s National Crime Agency, and the Croatian National Police Office for the Suppression of Corruption and Organized Crime, as well as the U.S. Department of Justice’s Office of International Affairs.

This case is being handled by the Office’s Terrorism and International Narcotics Unit.  Assistant U.S. Attorneys Elinor L. Tarlow and Matthew J.C. Hellman are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, and Ricky J. Patel, Acting Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today that STEVEN GALLAGHER was charged in a Complaint in Manhattan federal court with securities fraud, wire fraud, and market manipulation.  GALLAGHER, using the alias “Alex DeLarge,” created a stock promotion account on Twitter that gained over 70,000 followers.  GALLAGHER used that account to tout certain over-the-counter penny stocks and to disseminate false and misleading information about his trading in those stocks in order to induce his followers to purchase those stocks and drive up their prices.  GALLAGHER earned over $1 million in profits by then secretly selling his previously acquired holdings of those penny stocks.  GALLAGHER was arrested today in the Northern District of Ohio and is expected to be presented before a magistrate judge this afternoon.

U.S. Attorney Damian Williams said:  “As alleged, Steven Gallagher brought old-school boiler room tactics to the Twitter age, and operated a social media pump-and-dump scam that defrauded ordinary investors, all so that he could make over $1 million in profits.  Today’s arrest of Gallagher demonstrates that this Office and our law enforcement partners will be vigilant as securities fraud schemes move onto Twitter and other forms of social media.”

Acting HSI Special Agent-in-Charge Ricky J. Patel said:  “Turning lies into cash, Gallagher allegedly engaged in a pump & dump scheme, where he and his followers manipulated the price of penny stocks and guaranteed profits for themselves. Pump and dump stock schemes cause mistrust in the market and have real victims who often invest large sums of money, only to have their hopes shattered by a fraudster’s greed.  Like so many Hollywood movies which have portrayed stock frauds, Gallagher met the same fate as those storylines, he was arrested and will now face justice.  Working with our partners at the USAO-SDNY and the SEC, identifying and disrupting illegal financial schemes like this one is a top priority for HSI.”

If you believe you are a victim of this crime, or if you have information relevant to this investigation, please send an email to TwitterOTC@ice.dhs.gov.

As alleged in the Complaint unsealed today in Manhattan federal court:[1]   

STEVEN GALLAGHER is an active day trader in over-the-counter securities, or “OTC securities.”  Those securities typically do not trade on centralized exchanges such as the New York Stock Exchange or the NASDAQ Stock Exchange.  OTC securities often trade for less than one dollar per share, and thus are often referred to as “penny stocks.”  Many OTC securities are thinly traded, and therefore are particularly susceptible to stock manipulation schemes.

In September 2019, GALLAGHER created a Twitter account using the alias “Alex DeLarge,” a character from the Anthony Burgess novel A Clockwork Orange and the Stanley Kubrick film of the same name (the “DeLarge Twitter Account”).  As of October 19, 2021, the DeLarge Twitter Account had over 70,000 followers.

From 2020 to the present, GALLAGHER has operated a fraudulent pump-and-dump scheme that employed a variety of tactics to defraud individual, non-professional investors – so-called “retail investors” – in thinly traded over-the-counter securities.  GALLAGHER repeated the scheme again and again with respect to numerous securities, employing substantially the same means and methods.  As part of his fraudulent scheme, GALLAGHER first secretly acquired a substantial volume of shares of thinly traded penny stocks (the “Subject Securities”).  GALLAGHER then used the DeLarge Twitter Account to artificially “pump” the Subject Securities, including by making materially false and misleading statements about those securities.  For example, GALLAGHER made false and misleading statements about the nature and timing of GALLAGHER’s own financial interest in those securities, at times representing that he was purchasing or holding shares of certain of the Subject Securities he was touting when, in fact, he was secretly selling.  During the course of the scheme, GALLAGHER also regularly posted images of his brokerage account balance and gains on the Delarge Twitter Account in order to bolster his reputation and induce his followers to trade in accordance with his suggestions. 

During the “pump” phase of this scheme, the prices of the Subject Securities rose when the Twitter followers of the DeLarge Twitter Account purchased them.  Then, GALLAGHER began the “dump” phase of the scheme wherein he sold his shares at the inflated prices while continuing to use the DeLarge Twitter Account to disseminate materially false and fraudulent statements in an effort to obtain the best possible sales price for himself.  As a result of this fraudulent scheme, GALLAGHER earned over $1 million in trading profits.

In addition to making false and misleading statements to “pump” the Subject Securities, as a further part of his fraudulent scheme, GALLAGHER also engaged in an additional form of market manipulation with at least one of the Subject Securities.  Specifically, GALLAGHER engaged in a series of transactions designed to artificially raise the end-of-day price of one of the Subject Securities by making purchases at above-market prices in order to make the stock appear favorable to potential purchasers, a deceptive practice known as “marking the close.”  As with GALLAGHER’s efforts to artificially raise the price of the Subject Securities through false and misleading statements, these manipulative transactions induced other market participants to purchase the security and continue the upward trend in its price while GALLAGHER secretly sold his shares at a profit.

*                      *                      *

GALLAGHER, 50, of Maumee, Ohio, is charged with one count of securities fraud, which carries a maximum sentence of twenty years in prison, one count of wire fraud, which carries a maximum sentence of twenty years in prison, one count of securities fraud, which carries a maximum sentence of twenty-five years in prison, and one count of one count of market manipulation, which carries a maximum sentence of twenty years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the work of the HSI, and noted that the investigation remains ongoing.  Mr. Williams further thanked the Securities and Exchange Commission for their cooperation and assistance in this investigation.   

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Richard Cooper, Daniel Tracer, and Allison Nichols are in charge of the prosecution.  

The allegations 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 Indictments, and the description of the Indictments set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

Damian Williams, United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector in Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), Thomas Fattorusso, Acting Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and John Condon, Special Agent in Charge of the Tampa Office of Homeland Security Investigations (“HSI”), announced today the unsealing of Indictments charging NICHOLAS RUSSELL JAMES GILLIE, a/k/a “James William Carter,” NEOPHYTOS GEORGIOU, a/k/a “Nick,” a/k/a “PT,” a/k/a “The Boss,” URS MEISTERHANS, SCOTT STEVEN NEILSON, LIAM JAMES SMOUT, a/k/a “Pringle,” DANIEL NIELSEN, BRENDA LAVERTY, ANDREW GEORGIOU, a/k/a “Andy,” THOMAS ANDREW KENNY, a/k/a “Irish,” and JAKE MARDELL with conspiracy to commit wire fraud, conspiracy to commit money laundering, and aggravated identity theft, in connection with a scheme to impersonate prominent investment firms and individuals to defraud victim investors in countries around the world.  The case is assigned to U.S. District Judge J. Paul Oetken.

GILLIE, NEOPHYTOS GEORGIOU, LAVERTY, ANDREW GEORGIOU, and MARDELL were arrested in Cyprus in May 2021.  SMOUT was arrested in Spain in July 2021.  DANIEL NIELSEN was arrested in Romania in June 2021.  KENNY and SCOTT STEVEN NEILSON were arrested in the United Kingdom last month and earlier this month, respectively. 

In September 2021, DANIEL NIELSEN was extradited to the United States from Romania. Additional U.S. extradition requests remain pending.

MEISTERHANS, a Swiss national, remains at large and has been residing in Switzerland since May 2021 as a fugitive from U.S. justice. 

U.S. Attorney Damian Williams said: “As alleged, the defendants carried out an international scheme that fleeced investors out of more than $6 million, in part by impersonating legitimate investment firms and fabricating the trappings of real investment opportunities, including news articles, advertisements, and other online content, as well as fake contracts and other documents.  Now nine of the 10 are in custody, and all of the defendants are charged with multiple felonies in this district.”

USPIS Inspector-in-Charge Philip R. Bartlett said: “International criminals have had a field day on U.S. consumers and investors over the past few years. Whenever making an investment, it is strongly advised to dig deep and review everything you can find about the investment firm, managers and purported returns. Use the power of the internet to search for negative information about the company. In this case, the victims relied on the good names of successful financial firms, only to later realize they had been swindled. Postal Inspectors and their law enforcement partners will always be on the alert to alleged cons like these to maintain honest investment platforms and ensure those who allegedly commit crimes against investors are brought to justice.”

IRS-CI Acting Special Agent in Charge Fattorusso said: “This case demonstrates to the world that IRS-CI and our many law enforcement partners continue to uncover and expose fraud wherever it may be located.  This alleged scheme took advantage of victims with the promise of valuable financial assets when in reality the funds are alleged to have been stolen and laundered back to the criminal conspirators.  We would like to specifically thank HSI, U.S. Postal Inspectors, the U.S. Attorney’s Office for the Southern District of New York, as well as our International J5 partner agencies for their outstanding work in this case.”

HSI Tampa Special Agent in Charge John Condon said: “Thanks to a collaborative investigative effort between HSI, the IRS-Criminal Investigations and the U.S. Postal Inspectors, this international criminal conspiracy has been stopped.”

As alleged in the Indictments unsealed today:

Beginning in at least 2015, NICHOLAS RUSSELL JAMES GILLIE, NEOPHYTOS GEORGIOU, URS MEISTERHANS, SCOTT STEVEN NEILSON, LIAM JAMES SMOUT, DANIEL NIELSEN, BRENDA LAVERTY, ANDREW GEORGIOU, THOMAS ANDREW KENNY, and JAKE MARDELL participated in a sophisticated international mass-marketing investment fraud scheme to defraud English-speaking investors from around the world of millions of dollars, and to launder the fraud proceeds and distribute those proceeds among the conspirators.  NEOPHYTOS GEORGIOU, who owns bars and restaurants in Cyprus, financed the costs of the investment fraud scheme, which was orchestrated by GILLIE, his longstanding partner in Cyprus.  MEISTERHANS was a key “banker” – that is, money launderer – in the scheme, who laundered victim funds through bank accounts in the United States and several other countries. 

As part of the investment fraud scheme, conspirators purported to be employees of successful financial investment firms and took sophisticated steps to convince victims of the firms’ existence and legitimacy.  Those steps commonly included impersonating real financial investment firms, creating fraudulent websites that appeared to be associated with the real firms, creating fraudulent email addresses that appeared to be associated with employees of the real firms, publishing fraudulent news articles relating to the fake firms and their supposed investments, utilizing a widely-used internet search engine to disseminate scheme-related online advertisements, creating fraudulent investment-related contracts and other financial and legal documents, and using the names, titles, signatures, email addresses, and likenesses of real individuals prominent in business and finance.  Employing those tactics, among others, and through hard-sell telemarketing calls and emails with victim-investors orchestrated from so-called “boiler rooms” located in Cyprus, Spain, Romania, and Cambodia, the conspirators convinced victims to transfer funds to one or more bank accounts under the conspirators’ control (the “Victim Depository Accounts”) for what the victims understood to be investments in various companies – that is, the purchase of company shares.  In reality, however, the conspirators’ purported financial investment firms were fake, the purported share purchases were fraudulent, and the money sent by victims was never returned.  The combined losses of victims exceeded $6 million.

Rather than being used to make investments, the funds that victims transferred to the Victim Depository Accounts were sent back to the conspirators by individuals sometimes referred to by conspirators as “bankers” (the “Bankers”), who were in fact responsible for laundering the proceeds of the investment fraud scheme.  For example, fraud proceeds were at times transferred from a Banker to bank accounts held in the names of individuals who do not actually exist, such as “James William Carter” and “Jonathan Timothy Turner,” but in whose names the conspirators had opened bank accounts using fake United Kingdom passports and other documents.  The fraud proceeds were then distributed among the conspirators, as salary or commission, for their participation in the investment fraud scheme. 

One component of the years-long investment fraud scheme involved the impersonation, in or about 2019, of a New York-based private investment fund (the “New York Fund”) founded by an internationally renowned billionaire investor (the “Founder”).  While impersonating the New York Fund, conspirators fraudulently induced victim-investors from Australia, Europe, and elsewhere to enter into various purported investments, including the supposed purchase of “pre-IPO” shares of a successful and relatively young international company that did not have its shares listed on a public stock exchange (“Company‑1”).

*                *                *

GILLIE, 51, a U.K. national, NEOPHYTOS GEORGIOU, 60, a dual U.K. and Cypriot national, MEISTERHANS, 60, a Swiss national, SCOTT STEVEN NEILSON, 34, a U.K. national, SMOUT, 26, a U.K. national, DANIEL NIELSEN, 32, a U.K. national, LAVERTY, 40, an Irish national, GEORGIOU, 62, a dual U.K. and Cypriot national, KENNY, 33, a U.K. national, and MARDELL, 25, a U.K. national, are each charged with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A, which carries a mandatory minimum sentence of two years in prison.  The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of these defendants would be determined by a judge.

Mr. Williams praised the outstanding investigative work of the USPIS and HSI, as well as IRS-CI and their partnership with the J5.  The J5, known as the Joint Chiefs of Global Tax Enforcement, works together to gather information, share intelligence and conduct coordinated operations against transnational financial crimes.  The J5 includes the Australian Taxation Office, the Canadian Revenue Agency, the Dutch Fiscal Information and Investigation Service, Her Majesty's Revenue and Customs from the U.K. and IRS-CI from the U.S.  The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrests and extradition.

This case is being handled by the Office’s General Crimes Unit.  Assistant United States Attorneys Micah F. Fergenson and Andrew Jones are in charge of the prosecution.

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

Damian Williams, the United States Attorney for the Southern District of New York, announced today that MARCUS FRAZIER pled guilty to carrying out a fraudulent scheme to obtain $6.9 million in government-guaranteed loans designed to provide relief to small businesses during the novel coronavirus/COVID-19 pandemic.  FRAZIER pled guilty before United States District Judge Alison Nathan, to whom his case is assigned.

U.S. Attorney Damian Williams said: “Marcus Frazier sought millions of dollars in unsecured SBA-guaranteed loans for which his businesses did not qualify.  He lied about the number of people employed by his businesses, the salaries they were paid, even that these employees existed.  Further, Frazier used the loan proceeds he obtained to fund his lavish lifestyle, not to pay permissible expenses.  Now Marcus Frazier awaits sentencing for his admitted crimes.”

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

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.  One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other business expenses through the Paycheck Protection Program (the “PPP”).  The PPP allows qualifying small businesses and other organizations to receive unsecured loans guaranteed by the U.S. Small Business Administration (the “SBA”).  PPP loan proceeds must be used by businesses for payroll costs, mortgage interest, rent, and/or utilities, among other specified expenses.  Pursuant to the CARES Act, the amount of PPP funds a business is eligible to receive is determined by the number of employees employed by the business and its average payroll costs.  Businesses applying for a PPP loan must provide documentation to confirm that they have in the past paid employees the compensation represented in the loan application. 

Between in or about May 2020 and in or about April 2021, FRAZIER submitted to the SBA at least seven applications for PPP loans for various businesses that he controlled (collectively, the “Frazier Companies”).  These applications relied upon fraudulent statements regarding the number of employees of each business and the amount of payroll involved in each business, and were submitted, in many cases, alongside fake bank statements, designed to support FRAZIER’s false statements.  These fake bank statements included, among other things, fraudulent account statements for a checking account that showed balances far greater than the account actually held, and that depicted payroll withdrawals that never occurred.  FRAZIER also submitted lists of employees on the purported payrolls of the Frazier Companies, which included names and Social Security numbers which do not match the records of the Social Security Administration, suggesting that FRAZIER fabricated the employee records.  On at least one occasion, FRAZIER also provided documents purporting to show that one of the Frazier Companies had been in existence for approximately 10 years.  In fact, the corporate entity had not been registered until in or about July 2020, months after the onset of the COVID-19 pandemic.

FRAZIER sought a total of more than approximately $6.9 million in PPP loans and was awarded at least approximately $2.17 million.  A substantial portion of the funds awarded was spent not on payroll for the Frazier Companies but, rather, on FRAZIER’s personal expenses.  During the period between on or about June 18, 2020, shortly after his first PPP loan was funded, and on or about April 7, 2021, FRAZIER utilized PPP funds to spend approximately $124,982 on hotels, including more than approximately $88,791 at a luxury hotel located in Miami, Florida.  During the same period, FRAZIER spent approximately $63,000 on restaurants and food service, approximately $17,000 on transportation using the ride-hailing app Uber, approximately $16,519 on airline travel, and approximately $11,000 on clothing.  During this same period, FRAZIER collected approximately $21,000 in unemployment benefits.

In addition, between in or about January 2018 and in or about November 2019, FRAZIER engaged in a scheme to obtain personal loans from financial institutions and to evade the payment of credit card debt by making false representations, and sending fake documents, to lenders and banks. 

*                *                *

FRAZIER, 48, of New York, New York York, pled guilty to two counts of wire fraud affecting a financial institution, in violation of 18 U.S.C. § 1343, each of which carries a maximum sentence of 30 years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

FRAZIER is scheduled to be sentenced by Judge Nathan on March 1, 2022, at 3:00 p.m.

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation, the SBA Office of the Inspector General, the Internal Revenue Service, and the Federal Deposit Insurance Corporation Office of the Inspector General.

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorney Katherine Reilly is in charge of the prosecution.

“A unanimous federal jury has found that Lev Parnas and Andrey Kukushkin conspired to manipulate the United States political system for their own financial gain.  In order to gain influence with American politicians and candidates, they illegally funneled foreign money into the 2018 midterm elections with an eye toward making huge profits in the cannabis business.  Campaign finance laws are designed to protect the integrity of our free and fair elections – unencumbered by foreign interests or influence – and safeguarding those laws is essential to preserving the freedoms that Americans hold sacred.  I commend the career prosecutors of this Office’s Public Corruption Unit whose outstanding work has helped bring to justice those who sought to illicitly influence our government.”

Damian Williams, the United States Attorney for the Southern District of New York, announced that ROBERT GONZALEZ pled guilty today to possessing ammunition after having been convicted of a felony in connection with a shooting that took place in the vicinity of the 1800 block of University Avenue in the Bronx, New York, in August of 2020.  GONZALEZ pled guilty before U.S. District Judge Valerie E. Caproni.

U.S. Attorney Damian Williams said: “Robert Gonzalez possessed ammunition in furtherance of a violent shooting.  Today’s plea and conviction send the message that our Office is committed to bringing to justice those who perpetrate gun violence in our communities.”

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

ROBERT GONZALEZ committed a shooting in the vicinity of the 1800 block of University Avenue in the Bronx on or about the evening of August 9, 2020.  Law enforcement officers responded to the shooting after three 911 calls.  When they arrived at the scene, law enforcement officers noticed two victims with gunshot wounds – one in the hand and another in the leg.  The victims were attending a neighborhood block party that began around midnight and continued into the early hours of the morning. 

Law enforcement officers identified ROBERT GONZALEZ as the shooter through, among other evidence, surveillance photographs and videos, which showed the shooter’s clothing and a unique-looking fanny pack around his torso, which matched surveillance images and videos of GONZALEZ from shortly before and after the shooting.  Officers recovered a 9mm Luger shell casing from the vicinity of the shooting and found a fanny pack that matched the unique-looking fanny pack the shooter wore during a search of GONZALEZ’s apartment.   

At the time of the August 9, 2020, shooting, GONZALEZ had been previously convicted of multiple felony offenses, including attempted criminal possession of a weapon, attempted robbery, and narcotics conspiracy.   

*                      *                     *

GONZALEZ, 34, of the Bronx, New York, pled guilty to one count of being a felon in possession of ammunition, in violation of 18 U.S.C. §§ 922(g)(1), 924(a)(2), and 2, which carries a maximum penalty of 10 years in prison.  The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.

GONZALEZ is scheduled to be sentenced by Judge Caproni on February 7, 2022.

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

This case is being handled by the Office’s General Crimes Unit.  Assistant United States Attorney Brandon D. Harper is in charge of the prosecution.

Damian Williams, United States Attorney for the Southern District of New York, and Thomas Fattorusso, Acting Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of a federal Indictment charging JOSEPH EUGENE LEMAY, a/k/a “Gene Lemay,” and JOEL LINGAT with criminal tax offenses.  LEMAY is the former president of a company that provides moving and storage services (“Company-1”), and LINGAT is Company-1’s bookkeeper.  LEMAY and LINGAT are alleged to have conspired to perpetrate a long-running scheme to evade more than approximately $7.8 million in federal payroll taxes owed by Company-1 and affiliated companies to the Internal Revenue Service (“IRS”).  LEMAY is also alleged to have evaded his personal income taxes.  LINGAT was previously arrested in this case; LEMAY self-surrendered to the federal courthouse today and is expected to be presented on the charges in the Indictment this afternoon.  The case is assigned to U.S. District Judge Mary Kay Vyskocil. 

Mr. Williams and Mr. Fattorusso also announced today the previously entered guilty pleas of SALMAN RAMI HAIM, former president of Company-1, and NISSIM FADIDA, current President of Company-1.  Both HAIM and FADIDA previously admitted to participating in the payroll tax fraud conspiracy while employed by Company-1.  The case against HAIM and FADIDA is assigned to U.S. District Judge Ronnie Abrams. 

U.S. Attorney Damian Williams said: “As alleged, Gene Lemay and Joel Lingat conspired to defraud the United States and evade nearly $8 million in payroll taxes by creating sham companies and making it appear as though their company’s employees were actually employed by these fictitious companies.  Lemay is also alleged to have engaged in criminal chicanery to evade personal income taxes.  Now both men face federal charges for their alleged crimes.”

IRS-CI Acting Special Agent in Charge Fattorusso said: “Mr. Lemay and Mr. Lingat today stand accused of participating in a long-running conspiracy to hide millions of dollars in payroll from the IRS.  This allegedly cost the American taxpayer millions of dollars in lost tax revenue.  As alleged, these men, with others, went through extraordinary lengths to hide the money through a series of completely bogus companies. Today’s indictment, alongside the just announced guilty pleas of Mr. Haim and Mr. Fadida for their own roles in this scheme, demonstrate that IRS Criminal Investigation will continually endeavor to ensure honest taxpayers are protected from these types of criminal abuses.”

According to the allegations in the Indictment unsealed today and the criminal complaint previously filed against LINGAT (where LEMAY is identified as CC-1):[1]

From in or about 2010 through in or about December 2016, LEMAY, LINGAT, and other co-conspirators perpetrated a scheme to defraud the U.S. government of payroll and income taxes due and owing to the IRS by Company-1 and affiliated companies.  As part of the criminal scheme, LEMAY, LINGAT, and their co-conspirators created sham companies, nominally owned by close associates or family members of LEMAY or others at Company-1; assigned (on paper only) foremen and movers working for Company-1 to the sham companies; and fraudulently made it appear that the sham companies were independent contractors, including by creating fake invoices by which the sham companies purportedly billed Company-1 for labor.  Because the conspirators fraudulently made it appear that the labor was performed by independent contractors, Company-1 was able to deduct the cost of the labor as an expense on its tax returns, without withholding or paying over any payroll taxes to the IRS.  Through the criminal scheme, Company-1 and affiliated companies evaded in excess of approximately $7.8 million in payroll taxes, including FICA and Medicare contributions, during the charged period.

LEMAY is also alleged to have evaded personal income taxes by receiving substantial personal income through an entity called GM3 Enterprises Inc (“GM3”); fraudulently deducting substantial personal expenses paid through GM3 as business expenses on GM3’s corporate tax returns; and significantly underreporting his true income and resulting tax liabilities on his personal tax returns, which LEMAY caused to be prepared and filed with the IRS.

LEMAY, 61, of Delray Beach, Florida, and LINGAT, 61, of Jersey City, New Jersey, are charged with one count of conspiracy to defraud the IRS, which carries a maximum sentence of five years in prison.  LEMAY is also charged with two counts of tax evasion for the tax years 2014 and 2015, each of which also carry a maximum sentence of five years in person. 

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

*                      *                     *

Also announced today were the previously entered guilty pleas of SALMAN RAMI HAIM, former president of Company-1, and NISSIM FADIDA, current president of Company-1.  As part of their guilty pleas, HAIM and FADIDA both admitted to participating in the payroll tax fraud conspiracy while employed at Company-1. 

HAIM, 46, of Jersey City, New Jersey, pled guilty on May 9, 2019, before U.S. Magistrate Judge Ona T. Wang to one count of conspiring to fail to collect or pay over payroll taxes between approximately 2001 and 2016, in violation of 18 U.S.C. § 371, which carries a maximum sentence of five years in prison; one count of tax evasion for the tax years 2009 through 2016, in violation of 26 U.S.C. § 7201, which carries a maximum sentence of five years in prison; and one count of conspiring to produce false identification documents, in violation of 18 U.S.C. § 1028, which carries a maximum sentence of 15 years in prison.

FADIDA, 45, of East Brunswick, New Jersey, pled guilty on October 15, 2021, before U.S. District Judge Ronnie Abrams to one count of conspiring to defraud the IRS between approximately 2005 and December 2016, in violation of 18 U.S.C. § 371, which carries a maximum sentence of five years in prison; and one count of tax evasion for the tax years 2010 through 2013, in violation of 26 U.S.C. § 7201, which carries a maximum sentence of five years in prison.

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

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

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant United States Attorneys Jilan Kamal, Katherine Reilly, and Olga I. Zverovich are in charge of the prosecution.

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

Damian Williams, the United States Attorney for the Southern District of New York, announced the unsealing of a Superseding Indictment charging ADRIAN ALEXANDER with conspiracy to commit mail and wire fraud, mail fraud, and wire fraud in connection with a scheme to obtain fraudulent insurance reimbursements and other compensation for fraudulent trip-and-fall accidents.  ALEXANDER was arrested yesterday and will be presented today before United States Magistrate Judge Robert W. Lehrburger.

A prior Indictment in the case charged New York lawyers George Constantine and Marc Elefant and New York doctors Sady Ribeiro and Andrew Dowd for their participation in the fraud scheme.  The Superseding Indictment adds ALEXANDER, who allegedly funded fraudulent lawsuits in furtherance of the trip-and-fall scheme, as the fifth individual charged in the case.  The case is assigned to United States District Judge Sidney H. Stein.

U.S. Attorney Damian Williams said: “As alleged, a New York litigation financier has been implicated in this massive trip-and-fall fraud scheme, along with lawyers and doctors who were previously charged.  The defendant is alleged to have knowingly financed scores of fraudulent lawsuits, preying upon the desperation of others for his own financial gain.  Thanks to the efforts of the FBI, the defendant faces federal charges.”

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

From in or about January 2013, up to and including in or about April 2018, ALEXANDER and his codefendants engaged in an extensive fraud scheme through which the defendants defrauded businesses and insurance companies by staging trip-and-fall accidents and filing fraudulent lawsuits arising from those staged trip-and-fall accidents.

Fraud scheme participants recruited individuals (the “Patients”) to stage or falsely claim to have suffered trip-and-fall accidents at particular locations throughout the New York City area (the “Accident Sites”).  In the course of the fraud scheme, scheme participants recruited more than 400 Patients.  In the beginning, scheme participants would instruct Patients to claim they had tripped and fallen at a particular location, when in fact the Patients had suffered no such accidents.  Eventually, at the direction of the lawyers who filed fraudulent lawsuits on behalf of the Patients, scheme participants began to instruct Patients to stage trip-and-fall accidents, i.e., to go to a location and deliberately fall.  Common Accident Sites used during the fraud scheme included cellar doors, cracks in concrete sidewalks, and purported “potholes.”

After the staged trip-and-fall accidents, Patients were referred to specific attorneys, including George Constantine and Marc Elefant, who would file personal injury lawsuits (the “Fraudulent Lawsuits”) against the owners of the Accident Sites and/or insurance companies of the owners of the accident sites (the “Victims”).  The Fraudulent Lawsuits did not disclose that the Patients had deliberately fallen at the accident sites or, in some cases, had not fallen at all.  During the course of the fraud scheme, the defendants, together with others known and unknown, attempted to defraud the Victims of more than $31 million.

The Patients were also instructed to receive ongoing chiropractic and medical treatment from certain chiropractors and doctors, including Andrew Dowd and Sady Ribeiro.  The fraud scheme participants advised the Patients that if they intended to continue with their lawsuits, they were required to undergo surgery.  As an incentive to getting surgery, the recruited Patients were offered a payment of typically between $1,000 and $1,500 after they completed surgery (“Post-Surgery Payments”).  Patients generally were told to undergo two surgeries.  Doctors in the fraud scheme, including Dowd and Ribeiro, were expected to, and in fact did, conduct these surgeries regardless of the legitimate medical needs of the Patients.

Members of the fraud scheme often recruited individuals who were extremely poor as Patients – individuals desperate enough to submit to surgeries in exchange for the small Post-Surgery Payments.  For example, it was common for Patients to ask for food when they would appear for their intake meetings with the lawyers.  Many of the Patients did not have sufficient clothing to keep them warm during the wintertime and had poor-quality shoes.  Members of the fraud scheme also recruited Patients who were drug addicts.  It was also common for scheme participants to recruit Patients from homeless shelters in New York City.

The Patients’ legal and medical fees were usually paid for by litigation funding companies (the “Funding Companies”), including a funding company owned by ALEXANDER, even if the Patient maintained medical coverage through an insurance company or a government-subsidized program.  The Funding Companies also paid the fraud scheme organizers and participants referral fees, typically $1,000 to $2,500, for each Patient who signed a funding agreement.  In exchange for funding Patients’ medical and legal costs, the Funding Companies charged the Patients high interest rates, sometimes up to 50% on medical loans and up to 100% on personal loans.  The interest rates were so high that oftentimes the majority (if not all) of the proceeds that were awarded in the Fraudulent Lawsuits were paid to the Funding Companies, lawyers, doctors, and others, with the Patients receiving a much smaller percentage of the remaining recovery.

ALEXANDER’s participation in the fraud scheme, which included funding Fraudulent Lawsuits and unnecessary medical procedures at high interest rates, was extremely lucrative.  For example, ALEXANDER had boasted to investors that his funding company had annual returns in excess of 30%.

In addition to owning one of the primary Funding Companies used in the fraud scheme, ALEXANDER owned an MRI facility that performed MRIs on many of the Patients.

ALEXANDER, 75, of New York, New York, is charged with conspiracy to commit mail and wire fraud, which carries a maximum sentence of 20 years in prison, mail fraud, which carries a maximum sentence of 20 years in prison, and wire fraud, which carries a maximum sentence of 20 years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

*                      *                     *           

Mr. Williams praised the outstanding investigative work of the New York FBI.  Mr. Williams also thanked the National Insurance Crime Bureau for their assistance in the investigation.

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant United States Attorneys Nicholas Chiuchiolo, Nicholas Folly, and Alexandra Rothman are in charge of the prosecution.

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

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

Damian Williams, the United States Attorney for the Southern District of New York, announced that RICARDO CRUCIANI was arrested this morning and charged in connection with his sexual abuse of numerous pain management patients over the course of over 15 years.  The Indictment unsealed today alleges that from at least in or about 2002 up to and including at least in or about 2017, CRUCIANI enticed and induced multiple victims to travel to his medical offices in New York, New York, Hopewell, New Jersey, and Philadelphia, Pennsylvania, to subject them to unlawful sexual abuse.  CRUCIANI was arrested this morning and is expected to be presented later today before U.S. Magistrate Judge Robert W. Lehrburger in Manhattan federal court.  The case is assigned to U.S. District Judge John P. Cronan in the Southern District of New York.

U.S. Attorney Damian Williams said:  “Doctors like the defendant take an oath to do no harm.  It is difficult to imagine conduct more anathema to that oath than exploiting patients’ vulnerability in order to sexually abuse them.  As alleged, Ricardo Cruciani’s sexual abuse involved developing personal relationships with victims to engender trust, and prescribing addictive pain medication that caused his patients to become dependent on him as he engaged in a course of increasingly abusive conduct.  The alleged pattern of abuse in this case is outrageous, and Cruciani now faces federal charges for it.”

If you believe you are a victim of the sexual abuse perpetrated by RICARDO CRUCIANI, please contact the United States Attorney’s Office for the Southern District of New York at (646) 372-0364, and reference this case.

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

CRUCIANI was a pain management doctor who treated patients from multiple states who suffered from, among other things, severe and chronic pain.  Between at least in or about 2001 and in or about 2014, CRUCIANI was employed by and affiliated with a prominent medical hospital and medical center located in New York, New York, and maintained medical offices in New York, New York.  Between at least in or about 2013 and in or about 2016, CRUCIANI was a practicing pain management doctor employed by and affiliated with a prominent medical hospital and medical center located in Hopewell, New Jersey, and maintained medical offices in Hopewell, New Jersey.  Between at least in or about 2016 and in or about 2017, CRUCIANI was a practicing pain management doctor employed by and affiliated with a prominent medical hospital and university located in Philadelphia, Pennsylvania, and maintained medical offices in Philadelphia, Pennsylvania.

Over the course of at least approximately 15 years, between at least in or about 2002 and in or about 2017, CRUCIANI sexually abused numerous adult female patients who suffered from severe and chronic pain and were under his medical care as a pain management doctor.  CRUCIANI exploited and leveraged his position of trust as a healthcare provider at prominent medical institutions, the significant pain suffered by the victims, and his ability to prescribe or withhold pain medication, including highly addictive opioids, so that he could sexually abuse his patients.  In order for them to obtain prescription refills, CRUCIANI required victims to travel to his medical offices and other locations for in-person appointments.  CRUCIANI enticed and induced victims to travel interstate at least in part for the purpose of subjecting them to unlawful sexual abuse. 

CRUCIANI’s sexual abuse of victims involved developing personal relationships with victims to engender trust, and prescribing addictive pain medication that caused the victims to become dependent on CRUCIANI as he engaged in a course of increasingly abusive conduct.    The abusive sexual conduct included, among other things, forcible kissing, touching victims’ breasts and genitals, oral sex acts, vaginal sexual intercourse, and attempted anal sexual intercourse. 

 *                     *                      *

CRUCIANI, 63, of Wynnewood, Pennsylvania, is charged with five counts of enticing and inducing individuals to travel interstate to engage in illegal sexual activity, each of which carries a maximum sentence of 20 years in prison.  The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.

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

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

The charges contained in the Indictment are merely accusations.  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 therein should be treated as an allegation.  The defendant is presumed innocent unless and until proven guilty.

Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that ROBERT BERNARDI, the founder, and former Chief Executive Officer of the Virginia-based email security company GigaMedia Access Corporation, d/b/a GigaTrust (“GigaTrust”), NIHAT CARDAK, GigaTrust’s former Chief Financial Officer, and SUNIL CHANDRA, GigaTrust’s former Vice President of Business Development, were charged in an Indictment in Manhattan federal court with participating in a scheme to defraud investors and lenders of millions of dollars through false and misleading misrepresentations, including fabricated bank statements and audit reports, and by impersonating a purported customer, auditor, and GigaTrust lawyer.

BERNARDI, CARDAK, and CHANDRA were arrested this morning.  They will be presented later before Magistrate Judge Michael S. Nachmanoff in the United States District Court for the Eastern District of Virginia.  The case is assigned to United States District Judge Paul G. Gardephe.

U.S. Attorney Damian Williams said: “As alleged, the defendants—the founder and other senior executives at GigaTrust—participated in a scheme to trick investors into providing the company millions of dollars.  Today’s indictment alleging a fraud scheme of over $50 million ensures that they will be held accountable for their conduct.”

FBI Assistant Director-in-Charge Michael J. Driscoll said:  “Luring investors under false pretenses and misappropriating their money for personal gain is exactly what Giga Trust’s defendants are charged with today. The money they allegedly made from this scheme totals tens of millions of dollars. No matter how lucrative schemes of this nature may appear from the start, they will ultimately result in federal criminal charges.”      

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

From in or about 2016 through at least in or about 2019, GigaTrust was a private company headquartered in Virginia that purported to be a market-leading provider of cloud-based content security solutions.  BERNARDI founded GigaTrust and served as its CEO, while CARDAK and CHANDRA were GigaTrust’s CFO and Vice President of Business Development, respectively.  The defendants devised a scheme to defraud investors and lenders by (a) fabricating and disseminating false and misleading bank account statements that overstated GigaTrust’s cash deposits; (b) fabricating and disseminating false and misleading audit materials that purported to have been issued by GigaTrust’s auditors and overstated GigaTrust’s performance; (c) forging and disseminating a false and misleading letter purporting to be from GigaTrust’s New York-based counsel; and (d) impersonating or causing others to impersonate a purported customer and auditor of GigaTrust on telephone calls with a prospective lender. 

Specifically, BERNARDI sent fabricated audit materials to a New York-based investment firm, and BERNARDI and CARDAK used fabricated bank statements to obtain multiple rounds of loans and investments for GigaTrust, worth millions of dollars.  After a New York-based bank (“Bank-1”), which had loaned GigaTrust $25 million, declared that GigaTrust had defaulted on the terms of its loan agreement, BERNARDI and CARDAK induced additional investments in GigaTrust through, among other things, forging a letter purporting to be from GigaTrust’s New-York based counsel.  Shortly thereafter, while negotiating another $25 million deal with a lender (“Lender-1”), BERNARDI and CARDAK devised a scheme to impersonate a GigaTrust customer and auditor on requested diligence calls, which induced Lender-1 to make a $25 million loan to GigaTrust.  BERNARDI recruited CHANDRA to pose as one of GigaTrust’s alleged customers on a call with Lender-1.  BERNARDI and CARDAK also fabricated bank statements and sent them to Lender-1 right before closing the $25 million deal. 

GigaTrust filed for Chapter 7 bankruptcy protection in the District of Delaware on or about November 27, 2019.

*                      *                     *

BERNARDI, 68, and CARDAK, 51, both of Virginia, are each charged with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison, one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison, one count of conspiracy to commit wire fraud affecting a financial institution, which carries a maximum sentence of 30 years in prison, and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years’ imprisonment.  CHANDRA, 80, of Virginia, is charged with one count of conspiracy to commit wire fraud affecting a financial institution, which carries a maximum sentence of 30 years in prison, and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years’ imprisonment.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation in this case.  Mr. Williams further thanked the Securities and Exchange Commission, which has filed a civil enforcement action against the defendants, for its cooperation and assistance in this investigation. 

This case is being handled by the Office’s General Crimes Unit.  Assistant United States Attorneys Peter J. Davis and Emily A. Johnson are in charge of the prosecution.

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

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

Damian Williams, the United States Attorney for the Southern District of New York, and Ricky J. Patel, the Acting Special Agent-in-Charge of the New York Field Office of the Department of Homeland Security (“HSI”), announced today the arrest of FABRICE TONTISABO, a/k/a “Fabrice Williams” for persuading, inducing, enticing and coercing two 14-year-old minors to engage in sexual activity.  TONTISABO was arrested this morning and will be presented later today before U.S. Magistrate Judge Robert W. Lehrburger in Manhattan federal court.

U.S. Attorney Damian Williams said:  “As alleged, Fabrice Tontisabo engaged in abhorrent sexual activities with two 14-year-old children.  We will continue to use every law enforcement asset available to protect our children, and we will investigate, prosecute, and punish those who engage in their exploitation.”

Acting HSI Special Agent-in-Charge Ricky J. Patel said: “As alleged, Sidbewende Fabrice Tontisabo preyed upon the most vulnerable members of society, innocent children. Through its investigation, HSI New York’s Human Trafficking Task Force was able to arrest Tontisabo and put an end to his alleged abuse.  Working with our local, state, and federal partners, HSI New York utilizes its unique authorities and resources to prevent these predators from harming innocent victims.”

According to the Complaint[1] filed on September 9, 2021 in Manhattan federal court and unsealed today:

Between at least on or about October 2020, up to and including at least on or about March 2021, TONTISABO persuaded a 14-year-old minor (“Minor Victim-1”) to meet him in person on multiple occasions to engage in sexual activities with TONTISABO in exchange for cash, alcohol, and marijuana.

In addition, between at least on or about October 2019, up to and including at least on or about January 2020, TONTISABO persuaded another 14-year-old minor (“Minor Victim-2”) to meet him in person on multiple occasions to engage in sexual activities with TONTISABO in exchange for cash, alcohol, and marijuana.         

*                      *                      *

TONTISABO, 33, of  Brooklyn, New York, is charged with two counts of enticement of a minor, which each carry a mandatory minimum sentence of 10 years in prison and a maximum sentence of life imprisonment.  The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the efforts of HSI.  He added that the investigation is ongoing.

The prosecution is being handled by the Office’s General Crimes Unit.  Assistant United States Attorneys Camille Fletcher and Kevin Mead 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 therein should be treated as an allegation.

Damian Williams, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict yesterday against JOSE CABAN, a/k/a “Nene,” on four counts in a Superseding Indictment, including charges of violent crimes in aid of racketeering, and firearms offenses.  CABAN was convicted after a four-day trial presided over by U.S. District Judge Valerie E. Caproni.  

U.S. Attorney Damian Williams said: “Jose Caban participated in a violent gang.  He helped shoot an 18-year-old who was paralyzed as a result, and he opened fire on a crowded street filled with children.  Now convicted of his crimes, Caban will no longer be able to inflict harm on the people of this City.”

According to the Superseding Indictment and the evidence at trial:

The Jack Boyz are a criminal enterprise involved in committing numerous acts of violence, including shootings, in and around the Bronx.  Members and associates of the Jack Boyz engage in violence to retaliate against rival gangs, and to promote the standing and reputation of the Jack Boyz.

On June 19, 2018, near East 136th Street and Willis Avenue in the Bronx, New York, CABAN helped another gang member attempt to murder a rival, who was shot in the spine and paralyzed from the chest down.

On February 8, 2019, CABAN fired a gun five times on a street crowded with innocent bystanders, including children, in an attempt to murder a rival near East 135th Street and Willis Avenue in the Bronx.

*                *                *

CABAN, 22, of the Bronx, New York, was convicted on four counts: (1) two counts of attempted murder and assault with a dangerous weapon in aid of racketeering, each of which carries a maximum prison term of 20 years; and (2) two counts of using and carrying a firearm during, and possessing a firearm in furtherance of, a crime of violence, each of which carries a mandatory consecutive prison term of 10 years and a maximum prison term of life.

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 the judge.

CABAN is scheduled to be sentenced on February 17, 2022.

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

The case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant United States Attorneys Jamie E. Bagliebter, Lindsey Keenan, Justin V. Rodriguez, and Mathew Andrews are in charge of the prosecution.

Damian Williams, United States Attorney for the Southern District of New York, announced that MICHAEL PEARSE, an Australian national who was extradited to the United States from Australia in January 2021, was sentenced today to 109 months in prison for his participation in a fraudulent scheme to charge hundreds of thousands of mobile phone customers millions of dollars in monthly fees for unsolicited, recurring text messages without the customers’ knowledge or consent – a practice the conspirators referred to as “auto-subscribing.”  PEARSE played a key role in the scheme as CEO of a company that created the computer program that was used to enroll victims into the text message services without their knowledge or consent.  PEARSE previously pled guilty before United States District Judge Analisa Torres, who imposed today’s sentence. 

U.S. Attorney Damian Williams said: “Michael Pearse played a vital role in an international consumer fraud conspiracy that swindled hundreds of thousands of mobile phone customers out of millions, and ‘earned’ Pearse and his co-conspirators at least $50 million, of which Pearse pocketed more than $10 million.  Thanks to IRS Criminal Investigation and the FBI, as well as our international partners, Pearse was apprehended, prosecuted, and now sentenced for his crime.”

According to the allegations contained in the Indictment, evidence presented at the trial of co-conspirator Darcy Wedd, court filings, and statements made during plea proceedings:

From in or about 2011 through in or about 2013, PEARSE and his co-conspirators engaged in a multimillion-dollar scheme to defraud U.S.-based consumers (and others) by placing unauthorized charges for premium text messaging services on consumers’ cellular phone bills.  To carry out the scheme, PEARSE and others caused unsolicited and recurring text messages to be sent to mobile phone users containing content such as horoscopes, celebrity gossip, or trivia facts.  The victims of the fraud scheme never ordered these services, which were known in the industry as premium text messaging (“PSMS”) services, but were fraudulently “auto-subscribed” and billed for them at a rate of $9.99 per month.  The $9.99 charge recurred each month unless and until consumers noticed the charges and took action to unsubscribe.  Even then, consumers’ attempts to dispute the charges and obtain refunds were often unsuccessful.

During the relevant period, co-conspirator Lin Miao operated a company called Tatto Inc., a/k/a “Tatto Media” (“Tatto”), that offered PSMS services to mobile phone customers.  PEARSE was the CEO of a company called Bullroarer, which was affiliated with Tatto.  To enable Tatto to auto-subscribe consumers to unwanted PSMS services, PEARSE and co-defendant Yongchao Liu, a/k/a “Kevin Liu,” who worked as a Java Development Engineer for Bullroarer, agreed to build a computer program that could spoof the required consumer authorizations – i.e., a program that could generate the text message correspondence that one would ordinarily see with genuine PSMS subscriptions.  PEARSE and Liu agreed to build the program (the “Auto-Subscription Platform”), which was operational by in or about the middle of 2011.  PEARSE, Liu, and Miao then used the Auto-Subscription Platform to fraudulently auto-subscribe hundreds of thousands of mobile phone customers, using phone numbers provided by co-conspirators at Mobile Messenger, a U.S. aggregation company operated by Darcy Wedd that served as a middleman between content providers such as Tatto and mobile phone carriers.  Through their successful orchestration of the fraudulent scheme, PEARSE and his co-conspirators generated more than $50 million in fraud proceeds for themselves and PEARSE personally pocketed more than $10 million.        

*                *                *

In addition to the prison sentence, PEARSE was ordered PEARSE to forfeit $10,162,937.96, as well as his interest in three real properties in Australia and other assets, representing proceeds traceable to the fraud that PEARSE personally obtained.

To date, nine other defendants – Liu, Miao, Andrew Bachman, Michael Pajaczkowski, Erdolo Eromo, Jonathan Murad, Francis Assifuah, Jason Lee, and Christopher Goff – have pled guilty in connection with their participation in the fraud.  Two additional defendants, Darcy Wedd and Fraser Thompson, were convicted in 2017 following jury trials.

Mr. Williams praised the outstanding investigative work of the Internal Revenue Service, Criminal Investigation, and the Federal Bureau of Investigation.  In addition, Mr. Williams thanked law enforcement partners in Australia, as well as the U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division, for their support and assistance with the extradition of PEARSE and codefendant Liu.

This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Jilan Kamal and Olga I. Zverovich are in charge of the prosecution.

Damian Williams, the U.S. Attorney for the Southern District of New York, Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Kevin Sylvester, Chief of the Village of Ossining Police Department (“Ossining PD”), announced the unsealing yesterday of a four‑count indictment charging MATTHEW DUSABLON, a/k/a “Mateo,” a/k/a “Murk,” and JAHAIRA MEJIA with robbery and obstruction of justice.  The defendants were arrested yesterday and presented before United States Magistrate Judge Judith C. McCarthy in White Plains federal court.

U.S. Attorney Damian Williams said: “As alleged in the Indictment, the defendants participated in a gunpoint robbery that resulted in the death of a co-conspirator and then worked to cover their tracks.  Thanks to the extraordinary and tenacious work of our partners at the FBI and the Ossining Police Department, the defendants are now facing federal charges for their alleged crimes.”

FBI Assistant Director Michael J. Driscoll said: “As if the robbery at the center of this case wasn’t bad enough, the suspects allegedly decided to take it a step further and obstruct law enforcement’s ability to investigate it. They failed at both. Now, thanks to the outstanding work of the FBI Westchester County Safe Streets Task Force and our many partners, the suspects we arrested will serve as cautionary examples to others – trying to cover up your crimes only leads to more criminal charges.”

Ossining Police Chief Kevin Sylvester said: “Our community has waited patiently for resolution of this case and I’m relieved that we can now share the results of law enforcement professionals at the federal, state, and local levels all working seamlessly to restore our neighbors’ sense of peace and security.”

As alleged in the Indictment unsealed yesterday[1], and other publicly available documents:

On December 6, 2020, DUSABLON, MEJIA, and at least three other co-conspirators committed a gunpoint robbery in Ossining, New York, during which one of the co-conspirators brandished a firearm.  That same co-conspirator died from injuries sustained during the robbery victim’s flight from the scene of the robbery.

DUSABLON and MEJIA later concealed a jacket that another co-conspirator was wearing during the robbery and deleted information from their cell phones and social media accounts in order to obstruct the federal investigation of the December 6, 2020, robbery. DUSABLON also directed a co-conspirator to erase information from the co-conspirator’s cellphone and social media accounts in order to obstruct the federal investigation of the December 6, 2020, robbery.

*                      *                      *

DUSABLON, 27, and MEJIA, 35, both of the Bronx, are each charged with Hobbs Act robbery conspiracy and Hobbs Act robbery, in violation of 18 U.S.C. §§ 1951 and 2 (Counts One and Two); a related firearms offense, in violation of 18 U.S.C. §§ 924(c) and 2 (Count Three); and obstruction of justice, in violation of 18 U.S.C. § 1512(c)(2) (Count Four).  Counts One, Two, and Four each carry a maximum term of 20 years in prison.  Count Three carries a maximum term of life in prison and a mandatory minimum term of seven years in prison that must run consecutive to any other term of imprisonment imposed.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Williams praised the outstanding investigative work of the OPD and the FBI’s Westchester Safe Streets Task Force, which comprises Special Agents and Task Force Officers from the FBI, U.S. Probation, New York State Police, New York State Department of Corrections and Community Supervision, the New York City Police Department, Westchester County Police Department, Westchester County District Attorney’s Office, Putnam County Sheriff’s Department, and the Yonkers, Mount Vernon, White Plains, New Rochelle, Peekskill, Greenburgh, Clarkstown, and Ramapo Police Departments.

The case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorney Benjamin A. Gianforti 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 text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Damian Williams, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, the Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Frank Russo, Director, Field Operations, New York, U.S. Customs and Border Protection (“CBP”), announced today that the United States settled a civil fraud lawsuit against QUEEN APPAREL NY, INC. (“QUEEN”), a defunct manufacturer and importer of apparel, and HANK HYUNHO CHOI (“CHOI”), the sole owner of QUEEN, for defrauding the United States by knowingly evading customs duties owed on imported goods.  Specifically, the Government alleges that for years QUEEN, with CHOI’s knowledge, repeatedly falsified customs forms by undervaluing the garments it manufactured overseas and then imported into the United States.  As part of the settlement, approved today in Manhattan federal court by U.S. District Judge George B. Daniels, QUEEN and CHOI made admissions regarding their conduct, agreed to pay $50,000 to the United States, and agreed, among other things, to refrain from acting as the importer of record for the purpose of entering merchandise into the United States.

U.S. Attorney Damian Williams said: “Queen and its owner engaged in a fraudulent scheme to cheat the Government of customs duties owed on imported garments.  This Office remains committed to combatting customs fraud.  Manufacturers, importers, and their owners will be held responsible when they evade customs duties by lying about the value of the goods they bring into the United States.”

HSI Special Agent in Charge Peter C. Fitzhugh said: “Queen Apparel NY underreported the value of garments imported in the United States for the sole purpose of evading customs duties, resulting in a significant financial loss to the US government.  Import fraud affects the integrity of our economy and trade, so HSI makes a priority to investigate any organization who chooses profits over honesty.  Working closely with our partners at U.S. Customs and Border Protection, together we ensure anything that comes through our borders is in compliance with U.S. law.”

CBP Director of New York Field Operations Frank Russo said: “As global supply chains grow more complex, it is important for American businesses to know their suppliers and be confident of their integrity. The outcome of this case is a testament to the dedication of our partners in the United States Attorney’s Office, Homeland Security Investigations, and the men and women of CBP in enforcing our nation’s trade laws and holding accountable those perpetrating this type of fraud.”                    

QUEEN is a defunct New York-based manufacturer and importer of garments.  While in business, QUEEN manufactured and imported garments for third parties who would then sell those garments through department stores and national retail chains in the United States.  CHOI was the sole owner of QUEEN and was involved in the management and operations of the business.

The Complaint previously filed in Manhattan federal court alleges that from 2009 to 2013, QUEEN and CHOI manufactured garments overseas, imported those garments into the United States, and then repeatedly and falsely undervalued those garments on customs forms in order to evade the payment of lawful duties to the United States.

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

• QUEEN manufactured garments and imported them into the United States for various wholesalers.  CHOI was the sole owner of QUEEN and was involved in the management and operations of QUEEN, including the importing of goods.

• QUEEN was responsible for paying any import duties owed to the United States for garments manufactured abroad and imported into the United States by QUEEN.

• During the relevant time period, and at CHOI’s direction, QUEEN repeatedly undervalued the garments it imported into the United States by making false statements in entry documents and commercial invoices that it presented to CBP.  As a result of these false valuations, QUEEN underpaid customs duties that were due and owing to the United States. 

On March 26, 2019, the United States settled a related civil fraud lawsuit against Byer California, Inc., a wholesaler that used QUEEN to manufacture and import garments from Vietnam.  The conduct in this matter was first brought to the attention of federal law enforcement by a whistleblower who filed a lawsuit under the False Claims Act. 

Mr. Williams praised the investigative work of HSI on this case.  He also thanked CBP for its assistance.

This case is being handled by the Office’s Civil Frauds Unit.  Assistant United States Attorney Jacob Bergman is in charge of the case.                                                                      

Damian Williams, the United States Attorney for the Southern District of New York, announced that LASHAUMBA RANDOLPH was sentenced today to 60 months in prison for providing fake titles and other fraudulent vehicle documentation used to defraud car buyers as part of a national stolen car ring involving approximately 60 stolen luxury cars, including Ferraris, Lamborghinis, and Corvettes, worth more than $4 million.  RANDOLPH previously pled guilty to conspiracy to commit wire fraud, and was sentenced today before U.S. District Judge Cathy Seibel.

All defendants have pled guilty and RANDOLPH is the ninth defendant sentenced to date. Earlier in the case, Judge Seibel sentenced eight co-defendants for their roles in the $4 million stolen car ring.  CLIPHAS BELFON, a/k/a “Cliff,” who supplied from Florida many of the stolen cars sold by the ring, was sentenced to 52 months in prison on May 27, 2021.  COLIN BURNETT, a/k/a “Greg,” who made fraudulent documentation for the cars, was also sentenced to 52 months in prison on October 6, 2021.  BESAR ISMAILI, who supplied, stored, and sold stolen cars to secondhand buyers, was sentenced to 42 months in prison on April 20, 2021.  ROBERT PINSKY, a supplier of stolen cars and false vehicle documentation, was sentenced to 40 months in prison on July 9, 2021.  ANTONIO SANTIAGO, another Florida supplier of stolen cars, was sentenced to 30 months in prison on January 21, 2020.  CHARLES WALTON, a Michigan-based supplier of stolen cars, was sentenced to 21 months in prison on August 27, 2020.  STEVEN KLEIN, who provided financing for the scheme and resold stolen cars to secondhand buyers, was sentenced to 18 months in prison on June 11, 2021. NICHOLAS DIXON, who transported some of the stolen cars, was sentenced to time served on September 10, 2020.

As a result of the investigation, law enforcement recovered more than 30 stolen cars, and the defendants have already paid more than $443,000 in combined restitution to victims of the stolen car ring, forfeiture, and fines.

U.S. Attorney Damian Williams said: “These defendants used sophisticated methods to traffic scores of stolen luxury cars worth more than $4 million, stealing from rightful owners and defrauding buyers and state departments of motor vehicles.  This unacceptable crime harms car owner victims, muddies up car records relied upon by the public, and also imposes hidden costs on the public, including anyone paying for car insurance. It will not be tolerated.”

According to the allegations in the Indictment, as well as other public documents and court proceedings:

From October 2017 through November 2018, MARVIN WILLIAMS, CLIPHAS BELFON, a/k/a “Cliff,” COLIN BURNETT, a/k/a “Greg,” NICHOLAS DIXON, a/k/a “Robbie,” BESAR ISMAILI, STEVEN KLEIN, ROBERT PINKSY, LASHAUMBA RANDOLPH, ANTONIO SANTIAGO, and CHARLES WALTON operated a sophisticated, interstate stolen car ring, during which they (1) obtained stolen cars from, among other places, Michigan and Florida; (2) transported the stolen cars to, among other places, the Southern District of New York and Connecticut, for resale; (3) created and/or obtained false titles, registrations, and temporary license plates for the stolen cars; (4) used the false car records to deceive car buyers and the South Dakota Division of Motor Vehicles; and (5) used online markets, such as eBay, to solicit buyers of the stolen cars in various states.  Through this extensive criminal scheme, the co-conspirators obtained, transported, and sold or attempted to sell more than 60 cars worth, in total, more than $4 million.

To carry out the stolen car ring, its members performed multiple and various roles.  Some members stole and/or obtained luxury cars from the rightful, original owners, including dealerships and car rental businesses in Florida and Michigan.  Others assisted in transporting the cars from Florida and Michigan to, among other places, New York or Connecticut.  Others provided financing and assisted in purchasing or finding buyers for stolen cars.  Others attempted to conceal the scheme from or deceive car buyers, law enforcement, and the SDDMV by “re-VINning cars,” and using fraudulent documents, such as fraudulent titles and VIN stickers, to acquire new titles and registrations for the stolen cars, making it appear as if the stolen cars were not, in fact, stolen.

*                *                *

RANDOLPH, 46, of Atlanta, Georgia, pled guilty on February 2, 2021 to conspiring to commit wire fraud from in or about October 2017 through in or about November 2018.  In addition to the prison term, RANDOLPH was sentenced today to three years of supervised release, and ordered to pay forfeiture of $9,500 and restitution of 26,098.47.

BELFON, 28, of Miami, Florida, pled guilty on May 14, 2020, to conspiring to receive, possess, and sell stolen cars from in or about October 2017 through in or about November 2018, and was sentenced on May 27, 2021 to 52 months in prison, and forfeiture of $17,000.

BURNETT, 30, of Atlanta, Georgia, pled guilty on September 15, 2020, to conspiring to receive, possess, and sell stolen cars from in or about October 2017 through in or about November 2018, and was sentenced on October 6, 2021 to 52 months in prison, forfeiture of $8,577, and restitution of $24,991.24.

ISMAILI, 40, of Waterbury, Connecticut, pled guilty on December 22, 2020 to conspiring to commit wire fraud from in or about October 2017 through in or about November 2018, and was sentenced on April 20, 2021 to 42 months in prison, forfeiture of $76,000, and restitution of $393,329.96.

PINSKY, 52, of Howell, New Jersey, pled guilty on March 12, 2020 to conspiring to receive, possess, and sell stolen cars from in or about October 2017 through in or about November 2018, and was sentenced on July 9, 2021 to 40 months in prison, forfeiture of $77,000, and restitution of $51,444.08.

SANTIAGO, 38, of Pompano Beach, Florida, pled guilty on June 11, 2019 to conspiring to receive, possess, and sell stolen cars from in or about October 2017 through in or about November 2018, and was sentenced on January 21, 2020 to 30 months in prison, forfeiture of $22,500, and restitution of $66,671.91.

WALTON, 35, of Detroit, Michigan, pled guilty on March 17, 2020 to conspiring to receive, possess, and sell stolen cars from in or about October 2017 through in or about November 2018, and was sentenced on August 27, 2020 to 21 months in prison, forfeiture of $36,000, and restitution of $41,365.33.

KLEIN, 58, of Easton, Connecticut, pled guilty on March 3, 2021 to conspiring to commit wire fraud, and was sentenced on June 11, 2021 to 18 months in prison, forfeiture of $70,000, restitution of $240,000, and a fine of $15,000.

DIXON, 46, of Tamarac, Florida, pled guilty on May 7, 2020 to receiving a stolen car, and was sentenced on September 10, 2020 to time served, forfeiture of $34,050, and restitution of $6,849.59.

WILLIAMS, 35, of Torrington, Connecticut, pled guilty on October 11, 2019, and is awaiting sentencing.

Mr. Williams praised the excellent work of the Federal Bureau of Investigation and the New York State Police.

This case is being handled by the Office’s White Plains Division.  Assistant United States Attorneys Emily Deininger and David Felton are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced that MICHAEL CASTILLO, a/k/a “Squirrel,” was sentenced by U.S. District Judge John G. Koeltl to 276 months in prison for the March 10, 2011 murder of Hector Arias in the Bronx, New York.

U.S. Attorney Damian Williams said: “In 2011, Michael Castillo shot and killed Hector Arias in cold blood in front of his fiancée and her young child.  Today’s lengthy sentence shows that law enforcement will never give up on murder victims and their loved ones, no matter how long it takes to achieve justice.”

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

CASTILLO was a member of a conspiracy to distribute marijuana centered near 193rd Street and Broadway in Manhattan.  CASTILLO was hired by the leader of the conspiracy, DAVID ESPINAL, a/k/a “D-Block,” to kill Hector Arias, the leader of a rival marijuana business operating in the same area.  On March 10, 2011, CASTILLO shot and killed Arias near 712 East Gun Hill Road in the Bronx, New York.  Arias’s fiancée and her eight year-old child witnessed the murder.  CASTILLO and ESPINAL’s murder plot arose out of the rivalry between ESPINAL and Arias’s two marijuana businesses.  After CASTILLO completed the murder, ESPINAL paid him in cash. 

*                      *                     *

In addition to his prison sentence, CASTILLO, 38, was sentenced to five years of supervised release. 

On or about December 8, 2020, CASTILLO’s co-defendant, ESPINAL, pleaded guilty to conspiring to kill Arias, among other offenses.  During his guilty plea, ESPINAL admitted to hiring a hitman to kill Arias.    

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

This case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant United States Attorneys Jamie Bagliebter, Maurene Comey, Peter J. Davis, Scott Hartman, Lindsey Keenan and Jacqueline Kelly are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that ROBERT LEMKE pled guilty to making threatening interstate communications to a New York City-based family member of a journalist (the “Journalist”), citing the Journalist’s statements about the outcome of the 2020 U.S. presidential election. LEMKE pled guilty today before U.S. District Judge Alvin K. Hellerstein.

U.S. Attorney Damian Williams stated: “Robert Lemke was frustrated with the result of the 2020 Presidential Election. Rather than attempting to effect change through legal discourse or any of the other freedoms of expression that all Americans enjoy, he instead sent threatening messages to the family member of a journalist. Inevitably, elections result in frustrations for some – that is part of the political process – but trying to instill fear in others by threat will not be tolerated by law enforcement.”

According to the allegations in the Complaint, Superseding Indictment, and other documents in the public record, as well as statements made in public court proceedings:

From November 2020 through early January 2021, the defendant sent threatening electronic and audio messages to approximately 50 victims, including journalists and politicians, targeting those individuals as a result of their statements expressing that then-President Trump had lost the 2020 presidential election. On January 6, 2021, the same day that individuals purporting to protest the 2020 presidential election gathered in Washington, D.C. and stormed the Capitol Building, LEMKE sent a series of these threatening text messages to journalists, members of Congress, other politicians, and their families.

As the attack on the Capitol Building was ongoing, LEMKE sent threatening text messages to a relative of the Journalist, stating: “[The Journalist’s] words are putting you and your family at risk. We are nearby, armed and ready. Thousands of us are active/retired law enforcement, military, etc. That’s how we do it.”

At approximately the same time that LEMKE was sending threats directed at the Journalist, LEMKE also sent threats to the brother of a New York City-based U.S. Congressman (the “Congressman”), citing the Congressman’s statements about the result of the 2020 presidential election. LEMKE’s text messages, which included a picture of a home in the same neighborhood as the home of the Congressman’s brother, stated:

Your brother is putting your entire family at risk with his lies and other words. We are armed and nearby your house. You had better have a word with him. We are not far from his either. Already spoke to [the Congressman’s son] and know where his kids are.

. . . your words have consequences. Stop telling lies; Biden did not win, he will not be president. We are not[] white supremacists. Most of us are active/retired law enforcement or military. You are putting your family at risk. We have armed members near your home . . . . . Don’t risk their safety with your words and lies.

LEMKE acquired and used at least three different phone numbers and various electronic accounts to mask his identity when sending threats to his victims. LEMKE was not in fact affiliated with law enforcement or the U.S. military as he claimed in some of his threats. On or about November 7, 2020, LEMKE posted to Facebook: “Folks. Be ready for war. Trump has refused to cede. Evidence shows fraud occurred and the Supreme Court cases will be successful. We blockchained and watermarked ballots in 16 states. Trump will prevail.[] Spread this message. . . . FAITH my fellow Republicans. Do not give up.”

*                      *                      *

ROBERT LEMKE, 36, of Bay Point, California, pled guilty to one count of making threatening interstate communications, which carries a maximum sentence of five years in prison. LEMKE is scheduled to be sentenced by Judge Hellerstein on December 14, 2021.

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

Mr. Williams praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the Federal Bureau of Investigation (“FBI”), the New York City Police Department, and over 50 other federal, state, and local agencies. Mr. Williams also thanked the U.S. Attorney’s Office for the Northern District of California and the FBI’s San Francisco Field Office for their assistance.

The case is being handled by the Office’s Terrorism and International Narcotics Unit.  Assistant United States Attorneys Kimberly J. Ravener and Kyle A. Wirshba are in charge of the prosecution.

Damian Williams, United States Attorney for the Southern District of New York, announced today that AQUILINO TORRES was sentenced to 292 months in prison for his kidnapping and stalking of an adult woman (“Victim-1”) and the kidnapping of her seven-year-old son (“Minor Victim-1”) in or around October 2020.  TORRES was convicted following a one-week jury trial in July 2021 before U.S. District Judge Denise L. Cote, who imposed today’s sentence.

U.S. Attorney Damian Williams said: “Aquilino Torres carried out a brutal kidnapping of a 7-year-old child and his mother, and threatened to kill the child.  He held his victims captive and physically abused both mother and child.  Thanks to the FBI and NYPD, Torres was apprehended, prosecuted, and convicted of these horrific crimes, and has now been sentenced to a lengthy prison term.”

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

On or about October 5, 2020, TORRES texted and called Victim-1 hundreds of times, including a text threatening to “kick [Minor Victim-1’s] teeth out.”  Later that night, TORRES took Victim-1 and Minor Victim-1 to a motel in the Bronx, where he hit Minor Victim-1 in the face and assaulted Victim-1, breaking both sides of her jaw.  While TORRES assaulted Victim-1, he told her that he would hang Victim-1 and that Minor Victim-1 would be found dead in the river.  TORRES then had sex with Victim-1 against her will.  For the next five days, TORRES held Victim-1 and Minor Victim-1 against their will at an apartment in Washington Heights, without medical treatment for Victim-1’s broken jaw.  On or about October 10, 2020, Victim-1 and Minor Victim-1 escaped from the apartment and were admitted to a hospital shortly thereafter.  In response to their escape, TORRES once again sent Victim-1 hundreds of threatening text messages and called Victim-1 hundreds of times.  For example, TORRES texted Victim-1, telling her that he had put GPS on her phone and that, if he made the decision to go looking for her, “there won’t be turning back.”  TORRES then followed through on those threats and attempted to track down Victim-1 and also posted nude photographs of Victim-1 on the internet. 

At the time of the events described above, TORRES had absconded from parole supervision, having been placed on such supervision following a 2014 New York State conviction for second degree assault against the mother of TORRES’s children, who was then pregnant. 

*                *                *

TORRES, 27, was found guilty after trial of (i) one count of kidnapping, in violation of 18 U.S.C. §§ 1201(a)(1) and (b); (ii) one count of kidnapping of a minor, in violation of 18 U.S.C. §§ 1201(a)(1), (b), and (g); and (iii) one count of stalking, in violation of 18 U.S.C. §§ 2261A(2)(A) and (B), 2261(b)(3), and 2265A. 

Mr. Williams praised the outstanding investigative work of the FBI-NYPD Violent Crimes Task Force.  

This case is being handled by the Office’s General Crimes Unit.  Assistant United States Attorneys David Robles, Sarah Kushner, and Andrew Dember are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Amaleka McCall-Brathwaite, Special Agent in Charge, U.S. Small Business Administration, Office of Inspector General (“SBA-OIG”), announced today the unsealing of a complaint charging JACOB CARTER, QUADRI SALAHUDDIN, ANWAR SALAHUDDIN, and CHRISTAL RANSOM with conspiracy to commit wire fraud, wire fraud, false statements, and aggravated identity theft in connection with a scheme to defraud the U.S. Small Business Administration (“SBA”), resulting in a loss to the SBA of more than $7.6 million.  The defendants were arrested this morning.  QUADRI SALAHUDDIN and ANWAR SALAHUDDIN will be presented this afternoon before United States Magistrate Judge Andrew E. Krause in White Plains federal court.  JACOB CARTER will be presented this afternoon in the United States District Court for the Northern District of Texas.  CHRISTAL RANSOM will be presented later today in the United States District Court for the Central District of California.

U.S. Attorney Damian Williams said: “As alleged, the defendants schemed to steal taxpayer-funded resources intended for small businesses in need of assistance during the pandemic.  My Office will continue to investigate and prosecute those who would illegally seek to profit from a national emergency.”   

FBI Assistant Michael J. Driscoll said: “Today’s defendants have become the latest in line to be charged for SBA loan fraud as a result of their alleged conduct during the COVID-19 pandemic. As this behavior continues to be uncovered, the FBI will continue to respond to illegal activity with appropriate legal action.”

As alleged in the Complaint:[1]

The SBA is a federal agency of the Executive Branch that administers assistance to American small businesses.  This assistance includes making direct loans to applicants through the Economic Injury Disaster Loan (“EIDL”) Program.  In response to the COVID-19 pandemic, Congress expanded SBA’s EIDL Program to provide small businesses with low-interest loans of up to $2 million prior to in or about May 2020 and up to $150,000 beginning in or about May 2020, in order to provide vital economic support to help overcome the loss of revenue small businesses are experiencing due to COVID-19.  Applicants seeking a loan under the EIDL program were also now permitted to request and receive an advance of approximately $1,000 per employee, for an amount up to $10,000, which the SBA has generally provided while the loan application was pending.

From March through July 2020, JACOB CARTER, QUADRI SALAHUDDIN, ANWAR SALAHUDDIN, and CHRISTAL RANSOM used the identities of more than 1,000 other individuals (the “Applicants”) to submit more than 1,000 online applications to the SBA, seeking over $10 million of funds through the SBA’s EIDL Program.  (the “EIDL Applications”).  In connection with the EIDL Applications, CARTER, QUADRI SALAHUDDIN, ANWAR SALAHUDDIN, and RANSOM falsely represented to the SBA, among other things, that the Applicants were the owners of businesses with 10 or more employees.  Based on the fraudulent EIDL Applications, the SBA made advance payments of more than $7.6 million to the Applicants, who often then kicked back a portion of the advance payments to CARTER, QUADRI SALAHUDDIN, ANWAR SALAHUDDIN, and RANSOM.

*                *                *

JACOB CARTER, 35, of Capitol Heights, Maryland, QUADRI SALAHUDDIN, 25, and ANWAR SALAHUDDIN, 35, of Mount Vernon, New York, and CHRISTAL RANSOM, 44, of Los Angeles, California, are each charged with (1) conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison, (2) wire fraud, which carries a maximum sentence of 20 years in prison, (3) false statements, which carries a maximum sentence of five years in prison, and (4) aggravated identity theft, which carries a mandatory two-year consecutive sentence.   

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

Mr. Williams praised the outstanding work of the FBI and the SBA-OIG.

The case is being prosecuted by the Office’s White Plains Division.  Assistant U.S. Attorneys Jeffrey C. Coffman and Courtney Heavey are in charge of the prosecution.

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

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

Damian Williams, the United States Attorney for the Southern District of New York, announced that MICHAEL DELAGUILA, a/k/a “Grizz,” was sentenced today to 12 years in prison in connection with his leadership of the Black Stone Gorilla Gang, a violent street gang that operated in New York City and elsewhere, and his participation in narcotics trafficking and firearms offenses.  On May 26, 2021, DELAGUILA pled guilty to narcotics conspiracy and a firearms offense before U.S. District Judge Jesse M. Furman, who also imposed today’s sentence.

U.S. Attorney Damian Williams said: “Michael Delaguila was one of the Godfathers of a notoriously violent and lawless gang that terrorized communities across New York City and elsewhere.  Delaguila recruited other individuals into the gang and authorized acts of violence and drug trafficking in New York City for years.  Today’s lengthy sentence sends an important message to gang members who commit crimes that they will be apprehended and prosecuted to the fullest extent of the law.”

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

MICHAEL DELAGUILA, a/k/a “Grizz,” was previously one of the Godfathers of the Black Stone Gorilla Gang, a racketeering enterprise that operated principally in the New York City metropolitan area and in the jails and prisons of New York City and the State of New York.  In order to enrich the enterprise, preserve and protect the power of the enterprise, and enhance its criminal operations, BSGG members and associates committed, conspired, attempted, and threatened to commit acts of violence, including murder and assaults; distributed and possessed with intent to distribute narcotics; committed robberies; engaged in bank fraud and wire fraud; and obtained, possessed, and used firearms.  BSGG members also evaded prosecution by law enforcement authorities through acts of intimidation and violence against potential witnesses to crimes committed by the gang.  DELAGUILA accepted responsibility for participating in a conspiracy to distribute quantities of cocaine, heroin, and cocaine base, and for using and carrying firearms in furtherance of drug trafficking.  

*                      *                     *

In addition to his prison term, MICHAEL DELAGUILA, 30, of the Bronx, was sentenced to four years of supervised release.

Mr. Williams praised the outstanding investigative work of the New York City Police Department, the Drug Enforcement Administration, Homeland Security Investigations, the New York City Department of Corrections, and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.

This case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant United States Attorneys Danielle R. Sassoon, Andrew K. Chan, and Brandon D. Harper, and Special Assistant United States Attorney Jaclyn M. Wood, are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced that MARVIN GAMONEDA, a/k/a “June,” was sentenced today to 13 years in prison in connection with a shooting in the Nelson Playground on June 6, 2018, in the Highbridge neighborhood of the Bronx.  On March 15, 2021, GAMONEDA pled guilty to attempted murder and assault with a deadly weapon in aid of racketeering and a firearms offense before U.S. District Judge John G. Koeltl, who also imposed today’s sentence.

U.S. Attorney Damian Williams said: “On June 6, 2018, Marvin Gamoneda participated in a shooting in broad daylight in a Bronx playground filled with people, including children.  During the shooting, two individuals, including a child, were hit.  Today’s lengthy sentence sends an important message that we will continue vigorously to investigate and prosecute gang violence.”

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

Woodycrime was a criminal enterprise involved in committing numerous acts of violence, including attempted murders and assaults, as well as drug dealing, in the Bronx.  Members and associates of Woodycrime engaged in violence to retaliate against rival gangs, to preserve and expand the gang’s territory, and to protect the gang’s narcotics business.  Members and associates of Woodycrime enriched themselves by selling drugs, such as crack cocaine, marijuana, oxycodone, and MDMA or “ecstasy.”  On June 6, 2018, GAMONEDA and others shot at a rival gang member in the vicinity of the Nelson Playground in the Bronx, during which two victims, including a 13-year-old child, were injured.

  *                      *                     *

In addition to his prison term, MARVIN GAMONEDA, 34, of the Bronx, was sentenced to three years of supervised release.

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

This case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant United States Attorneys Andrew K. Chan, Jacob R. Fiddelman, and James Ligtenberg are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, today announced the selection of Margaret Garnett as Deputy United States Attorney and Daniel M. Gitner as Chief of the Office’s Criminal Division. 

Since December 2018, Ms. Garnett has served as the Commissioner of New York City’s Department of Investigation (“DOI”), one of the oldest municipal anti-corruption agencies in the United States.  Prior to her service at DOI, Ms. Garnett served as Executive Deputy Attorney General for Criminal Justice in the Office of the New York State Attorney General.  Ms. Garnett was an Assistant U.S. Attorney in the Office for 12 years, serving at times as Chief of Appeals and Chief of the Violent and Organized Crime Unit.  She received the Director’s Award for Outstanding Performance and the Stimson Medal for her exceptional service in the Criminal Division.  Prior to her public service, Ms. Garnett worked as an associate at Wachtell, Lipton, Rosen & Katz.  She began her public service career as a law clerk to the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York.  Ms. Garnett received her B.A. from the University of Notre Dame, her M.A. from Yale University, and her J.D. from Columbia University.  

Mr. Gitner returns to the Office from the law firm of Lankler Siffert & Wohl, where he has served as a partner since 2005.  From 1997 to 2005, he served as an Assistant U.S. Attorney in the Southern District of New York and served, from 2003 to 2005, as Chief of the General Crimes Unit.  During his tenure, he received the Director’s Award for Superior Performance and was named the Federal Prosecutor of the Year in 2003 by the Federal Law Enforcement Foundation.  He began his legal career as a law clerk to the Honorable Naomi Reice Buchwald and to the Honorable Barbara S. Jones, both of the U.S. District Court for the Southern District of New York.  Mr. Gitner received his B.A. from Cornell University and his J.D. from Columbia University.   

In making these selections, U.S. Attorney Damian Williams said: “I am pleased to welcome Margaret and Dan back to the U.S. Attorney’s Office.  Margaret was a legendary Assistant U.S. Attorney.  During her time in the Office, she led some of the Office’s most important investigations and prosecutions, and mentored countless AUSAs.  Her storied career in public service leaves no doubt that she will be an exceptional Deputy U.S. Attorney.  Dan was one of the best AUSAs of his generation when he was in the Office, and he has been one of the best trial lawyers in America since he left.  I am confident that his experience, judgment, and love for the Office will make him an outstanding Chief of the Criminal Division.  I want to thank Ilan Graff and Laura Birger for their friendship and outstanding service to the Office during some of the most unprecedented times in the history of the Southern District of New York.  I have asked Ilan and Laura to continue their service until Margaret’s and Dan’s arrival and to advise the new Executive staff, and me, during this period of transition.”

Damian Williams, the United States Attorney for the Southern District of New York, and Patrick J. Freaney, the Special Agent-in-Charge of the New York Field Office of the United States Secret Service (“Secret Service”), announced today the unsealing of an Indictment charging 11 defendants with conspiracy to commit money laundering, conspiracy to commit bank fraud, and aggravated identity theft, in connection with their involvement in laundering millions of dollars in proceeds derived from business email compromises and romance fraud schemes.  Nine defendants were arrested today in the District of New Jersey and the Eastern District of New York, and will be presented this afternoon before United States Magistrate Judge Sarah Netburn in the Southern District of New York.  One defendant was arrested in the Southern District of Texas, and will be presented today in that district’s federal court.  One defendant remains at large.

U.S. Attorney Damian Williams said: “As alleged, the defendants were part of a criminal enterprise that not only defrauded businesses by assuming the online identities of legitimate counterparties, but also preyed on vulnerable elderly people, deceiving victims into sending money in phony romance scams.  Thanks to the Secret Service, the defendants are now facing federal felony charges.”

Secret Service Special Agent-in-Charge Patrick J. Freaney said: “As the continued threat posed by cyber enabled fraud remains ever present, the U.S. Secret Service remains steadfast in its pursuit of those who threaten our collective financial security. This case is no exception, as the defendants allegedly utilized a myriad of fraud schemes, to include romance scams and business email compromises, to defraud over 50 victims in excess of $9 million. Due to the efforts of the Secret Service and our partners at the New York City Police Department Financial Crimes Task Force, this organized group will no longer be able to operate its alleged scheme to defraud and will answer the charges brought against them in the Southern District of New York.” 

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

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

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

As a result of these frauds, law enforcement officers have identified more than 50 victims who have transferred more than $9 million to bank accounts under the control of the Defendants.

*               *                *

Ten defendants – ADEDAYO JOHN, 32, OLUWADAMILOLA AKINPELU, 26, KAZEEM RAHEEM, 29, MORAKINYO GBEYIDE, 39, WARRIS ADENUGA, a/k/a “Blue,” 26, LATEEF GOLOBA, 27, SAMSONDEEN GOLOBA, 29, OLAWALE OLANIYAN, 41, OLAWOYIN PETER OLAREWAJU, 34, and EMMANUEL ORONSAYE-AJAYI, 30 – are each charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.  Nine defendants – ADEDAYO JOHN, 32, SMART AGUNBIADE, 28, OLUWADAMILOLA AKINPELU, 26, MORAKINYO GBEYIDE, 39, WARRIS ADENUGA, a/k/a “Blue,” 26, LATEEF GOLOBA, 27, SAMSONDEEN GOLOBA, 29, OLAWOYIN PETER OLAREWAJU, 34, and EMMANUEL ORONSAYE-AJAYI, 30 – are each charged with one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison.  One defendant – MORAKINYO GBEYIDE, 39 – is also charged with one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.  The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge.

Mr. Williams praised the outstanding investigative work of the Secret Service.  The case is being handled by the Office’s General Crimes Unit.  Assistant United States Attorneys Kaylan E. Lasky and Matthew Weinberg are 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 text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations and every fact described should be treated as an allegation.

Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the indictment of CHRISTIAN ROSA WEINBERGER, a/k/a “Christian Rosa,” for his role in a scheme to defraud art buyers through the sale of forged paintings by the artist Raymond Pettibon accompanied by fake certificates of authenticity.  WEINBERGER fled the United States in early 2021 shortly after news about his involvement in selling a fake Pettibon painting was reported in the press, and he remains at large. This case is assigned to U.S. District Judge Andrew Carter.

U.S. Attorney Damian Williams said: “As alleged, Christian Rosa Weinberger cheated contemporary art buyers by selling them forged paintings purportedly from the hand of Raymond Pettibon. Weinberger swindled buyers out of hundreds of thousands of dollars, and risked a New York artist’s legacy, through his forgery scheme. Thanks to the partnership of this Office and the FBI’s Art Theft Crime Team, Weinberger’s forgery scheme is at an end.”

FBI Assistant Director Michael J. Driscoll said:  "The beauty of art may be in the eye of the beholder, but the behavior we allege today is objectively ugly. Quite simply, it's a federal crime to defraud investors and fake documentation of artwork provenance. Mr. Weinberger may believe he escaped justice when he fled the country earlier this year, but the FBI and our partners have international reach and steadfast determination.  We encourage him to turn himself in, because we will eventually find him with that persistent long arm of the law."

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

From approximately 2017 through 2020, WEINBERGER, together with others known and unknown, engaged in a scheme to defraud potential art buyers by selling forged Pettibon paintings.  Pettibon is a prominent contemporary artist based primarily in New York, New York, who has produced a series of paintings depicting ocean waves with surfers accompanied by handwritten text (the “Wave Series”). WEINBERGER is a contemporary visual artist based primarily in Los Angeles, California and Vienna, Austria. As part of the scheme to defraud, in or about 2018 and 2020, WEINBERGER sold the following artworks, which WEINBERGER falsely represented to be authentic Pettibon “Wave Series” paintings, to two buyers (“Buyer-1” and “Buyer-2”):

1. Untitled (“It was the Moment . . . ”), 2013, 100 cm by 155 cm:

1. Untitled (“Drop in . . .”), 2011, 80 cm by 60 cm:

1. Untitled (“Bail, or bail out . . .”), 2012, 115 cm by 163 cm:

1. Untitled (“If there is a line . . .”), 2016, 118.1 by 208.3 cm:

WEINBERGER used the proceeds from the sale to Buyer-1 of Untitled (“Bail, or bail out . . .”), and Untitled (“If there is a line . . .”) to make the down payment and subsequent mortgage payments on a residence in California. WEINBERGER also gifted the following “Wave Series” painting to Buyer-1 in exchange for Buyer-1’s help in selling paintings attributed to Pettibon to Buyer-2: Untitled (“I Keep Pouring . . .”), 1997, 110 cm by 90 cm.

In connection with the sale or transfer of the above paintings to Buyer-1 and Buyer-2, WEINBERGER provided purported certificates of authenticity for each painting. The purported certificates of authenticity contained an image of the particular painting, and were purportedly signed by Pettibon. In fact, these purported certificates of authenticity were fake, and Pettibon’s signatures were forged.

In or about December 2019, around the same time that WEINBERGER was discussing the sale of certain Pettibon paintings with Buyer-1, WEINBERGER exchanged emails with a friend of WEINBERGER’s (“Co-conspirator-1”) about trying to find a buyer for certain unnamed paintings.  In one of the emails, WEINBERGER told Co-conspirator-1 that “they’re asking about the certificates, how we’re getting them.”  Co-conspirator-1 asked WEINBERGER, in substance and in part, why the sales were taking so long. WEINBERGER responded explaining that he wanted to find a buyer who would agree not to resell the works at auction, and wrote in English that “I am not trying to get busted so that’s why it’s takeing[sic] longer.”

On or about January 29, 2021, an online news source published an article reporting accusations that WEINBERGER had forged Untitled (“If there is a line .  .  .”), one of the “Wave Series” paintings originally purchased by Buyer-1, which was later placed for sale by a subsequent purchaser at a New York auction house. On or about January 30, 2021, the day after the article was published, WEINBERGER emailed Co-conspirator-1 that “[t]he secret is out.” On or about January 31, 2021, WEINBERGER drafted an email to Pettibon, in which he stated that the painting featured in the article “is a overpainted print made from [Co-Conspirator-1] a friend from Austria[.]” Less than a month later, WEINBERGER left the United States. A few months later, WEINBERGER sold the California residence and attempted to transfer the funds abroad.          

*                      *                      *

WEINBERGER, 43, a Brazilian and Austrian citizen previously residing in Los Angeles, California,  before fleeing the United States in February 2021, was charged in the Indictment with one count of wire fraud conspiracy, one count of wire fraud, and one count of aggravated identity theft.  The wire fraud charges carry a maximum prison term of 20 years.  The aggravated identity theft charge carries a mandatory sentence of two years in prison.

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

Mr. Williams praised the investigative work of the FBI’s Art Crime Team.

This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit.  Assistant United States Attorneys Jessica K. Feinstein and Cecilia E. Vogel are in charge of the prosecution.

To report information related to this case, please contact the FBI's Art Crime Team at NYArtCrime@fbi.gov. 

The allegations 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 descriptions of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Damian Williams, the United States Attorney for the Southern District of New York, announced that former New York City Police Department (“NYPD”) officer JOHN CICERO pled guilty today to distributing large quantities of methamphetamine and gamma-butyrolactone (known as “GBL”) in Westchester County and New York City.  CICERO pled guilty before U.S. Magistrate Judge Andrew E. Krause. 

U.S. Attorney Damian Williams said:  “A former NYPD police officer once sworn to protect the public, John Cicero now stands convicted of trafficking substantial quantities of methamphetamine and GBL, a liquid date-rape drug, throughout Westchester and New York City.  As he admitted today, over several years, Cicero was a leader of a drug trafficking ring, and he was personally responsible for moving over three kilograms of methamphetamine and 750 liters of GBL, and importing narcotics from overseas.  Thanks to the dedication of our partners at the Federal Bureau of Investigation, Cicero now awaits sentencing for his dangerous conduct.”      

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

Beginning in at least 2017 and lasting until his arrest in February 2020, CICERO and his co-conspirators stockpiled and sold liters of GBL and kilograms of methamphetamine in apartments, hotel rooms, and storage units in the heart of midtown Manhattan, and a residence in Bronxville, New York.  CICERO repeatedly brokered large-scale narcotics transactions over recorded prison calls with an inmate then in New York State custody.  U.S. Customs and Border Protection has previously seized GBL sent from China to CICERO’s address in New York.  As part of his guilty plea, CICERO stipulated that he was an organizer, leader, manager, or supervisor in the criminal activity, the offense involved the importation of methamphetamine, and his offense conduct involved over three kilograms of methamphetamine and 750 liters of GBL.  The charged conduct began years after CICERO left the NYPD.

On February 19, 2020, CICERO was arrested in a Wall Street hotel, in a room he had rented under a false identity.  In addition to methamphetamine and GBL, law enforcement recovered from CICERO’s room a bank card and a fake ID, bearing CICERO’s photograph, all in the name of the false identity to whom the room was rented.  As part of CICERO’s arrest, law enforcement also recovered detailed drug ledgers, credit card making equipment, and notebooks full of victims’ personally identifiable information.

*                *                *

CICERO, 39, of Bronxville, New York, is scheduled to be sentenced by United States District Judge Kenneth M. Karas on February 10, 2022.  CICERO pled guilty to one count of conspiring to distribute 50 grams of methamphetamine and GBL, which carries a statutory mandatory minimum term of five years in prison and maximum penalty of 40 years in prison.  The maximum and mandatory minimum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the outstanding investigative work of the FBI Westchester County Safe Streets Task Force, which comprises agents and detectives from the FBI, Westchester County District Attorney’s Office, Westchester County Police Department, Yonkers Police Department, Peekskill Police Department, Mount Vernon Police Department, NYPD, and U.S. Probation.  He also thanked the New York State Department of Corrections Office of Special Investigations, Drug Enforcement Administration, and U.S. Customs and Border Protection for their assistance.

This case is being prosecuted by the Office’s White Plains Division.  Assistant U.S. Attorneys David R. Felton and Daniel G. Nessim are in charge of the prosecution.

Damian Williams, the United States Attorney for the Southern District of New York, announced that ABDURAMAN ISENI, a/k/a “Diamond,” pled guilty today to eight counts of criminal conduct, including overseeing a multi-year racketeering enterprise, interstate threats, money laundering, bank fraud conspiracy, false statements to a bank, and two gambling conspiracy offenses.  ISENI pled guilty before U.S. District Judge Andrew L. Carter, to whom the case is assigned.

U.S. Attorney Damian Williams said: “As he admitted today, Abduraman Iseni led a network of underground gambling establishments to prop up a criminal enterprise under his control.  Iseni engaged in a series of additional crimes, including money laundering, threatening a victim with physical violence, and defrauding and lying to banks in an effort to receive money to which he was not entitled.  Thanks to the hard work of our partners at the FBI, Iseni stands convicted of numerous offenses and awaits sentencing for his years of crime.”

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

ISENI oversaw a racketeering enterprise referred to in the Indictment as the “Diamond Enterprise.”  The Diamond Enterprise was an organized criminal group operating under ISENI’s direction.  ISENI offered his protection, connections, and substantial influence in the criminal underworld to other members of the racketeering enterprise, in exchange for a share of their illegal profits.  The Diamond Enterprise thrived in part on the revenues generated by a network of illegal gambling parlors – “Sports Café,” “Friendly Café,” and “Oasis Café” – located throughout Brooklyn that hosted underground poker games and hosted illegal sports books. Some of these revenues, in turn, were laundered through a series of bank accounts in an effort to conceal and facilitate the Enterprise’s continued operations.

In addition to the Enterprise’s operations, ISENI separately admitted to threatening a victim with physical violence, and a host of additional crimes, including money laundering, bank fraud conspiracy, and making false statements to a bank for the purpose of inducing the bank to release funds to which ISENI was not entitled.     

*                      *                      *

ISENI, 56, of Staten Island, New York, is scheduled to be sentenced by Judge Carter on January 18, 2022, at 3:30 p.m.  Under the terms of his plea agreement, ISENI also agreed to pay forfeiture of $349,000.

Mr. Williams praised the outstanding work of New York FBI’s Balkans and Middle East Organized Crime Squad.  He also thanked the FBI’s Newark Office, the New York City Police Department, the State Department’s Diplomatic Security Service, the Small Business Administration Office of the Inspector General, the Social Security Administration Office of the Inspector General, the New York State Liquor Authority, and United States Customs and Border Protection for their investigative efforts and ongoing support and assistance with the case.  

The prosecution of this case is being overseen by the Office’s Money Laundering and Transnational Criminal Enterprises Unit.  Assistant U.S. Attorneys Samuel L. Raymond and David R. Felton are in charge of the case.

Damian Williams, the United States Attorney for the Southern District of New York, and Anne Milgram, the Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced today the arrest of MALEK MOHAMMAD BALOUCHZEHI, a/k/a “Malek Khan,” for conspiring to import heroin into the United States and distributing heroin for importation into the United States.  BALOUCHZEHI, a citizen of Iran, was taken into custody by Kenyan authorities expelled to the United States from Kenya on October 9, 2021.  BALOUCHZEHI was presented before United States Magistrate Judge Sarah Netburn earlier today. 

U.S. Attorney Damian Williams said: “From thousands of miles away, Malek Balouchzehi allegedly arranged the importation of massive quantities of heroin into the United States with seemingly little regard for the devastation that highly addictive opiates cause after landing at our shores.  Balouchzehi’s expulsion to the United States is a direct result of this Office’s successful ongoing partnership with the D.E.A., and we commend the outstanding work of the agents both here and abroad who made today’s charges possible.”

D.E.A. Administrator Anne Milgram said:  “This investigation demonstrates our collective resolve to pursue criminals who traffic in these dangerous, addictive substances. For decades, DEA’s partnerships with our law enforcement partners around the world have been the key to bringing to justice those threatening our communities. DEA will continue to bring all that we have to bear to combat and defeat the criminal drug traffickers putting Americans’ safety and health at risk.”

According to the allegations contained in the Complaint charging the defendant,[1] which was unsealed today in Manhattan federal court:

BALOUCHZEHI is an Iran-based drug trafficker who distributes methamphetamine and manufactures and distributes heroin.  In or about September 2019, BALOUCHZEHI and his associate began communicating and meeting with individuals whom BALOUCHZEHI believed were heroin traffickers interested in large quantities of heroin for importation into the United States, as well as methamphetamine for distribution in Australia.  Those individuals were, in fact, a confidential source working at the DEA’s direction, and an undercover DEA agent posing as a New York-based heroin distributor.  In December 2019, BALOUCHZEHI caused a sample of approximately two kilograms of heroin to be delivered in Mozambique, with the understanding that those drugs would be transported to the United States for testing and sale.  Following this sample shipment, BALOUCHZEHI planned to supply larger quantities of heroin for importation to and distribution within the United States, and in December 2019, BALOUCHZEHI discussed providing as many as 400 kilograms of heroin for importation to the United States in the next transaction. 

*               *                *

BALOUCHZEHI, 38, a citizen of Iran, is charged with one count of conspiring to import heroin into the United States and one count of distributing heroin intending that the narcotics would be imported into the United States.  Both counts carry a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison.  The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Mr. Williams praised the outstanding investigative efforts of the DEA’s Special Operations Division, Bilateral Investigations Unit and New York Field Division; the DEA’s Nairobi, Maputo, Pretoria, Bucharest, and Jakarta Country Offices; the Kenyan National Police, Directorate of Criminal Investigations; the Mozambique National Criminal Investigation Services; and the Western Australia Police Force.  Mr. Williams also thanked the U.S. Department of Justice’s Office of International Affairs for its assistance.

The case is being prosecuted by the Office’s Terrorism and International Narcotics Unit.  Assistant U.S. Attorneys Michael D. Lockard and Kimberly J. Ravener are in charge of the prosecution.

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

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

Damian Williams, the United States Attorney for the Southern District of New York, announced that SEAN MERCHANT was sentenced today to 196 months in prison for sex trafficking of three minor females.  MERCHANT was sentenced by U.S. District Judge Kimba M. Wood, before whom he previously pled guilty to one count of sex trafficking of a minor.  As part of his plea, MERCHANT acknowledged that he trafficked three minor females.

U.S. Attorney Damian Williams said: “Sean Merchant preyed upon three minor females who had previously resided at a residential treatment facility for at-risk children and adolescents.  Merchant placed these young women in harm’s way by enticing them to perform commercial sex acts for money, and in turn providing them with addictive drugs.  It is hard to imagine a more selfish and inhumane act than coercing a minor to have sex with strangers for profit, and Merchant has justly been sentenced to more than 16 years in prison for his outrageous conduct.”  

According to the allegations contained in the Indictment and other court documents filed in Manhattan federal court:

From at least in or about March 2017 to at least in or about October 2017, SEAN MERCHANT, a/k/a “Bronxwood,” the defendant, engaged in the sex trafficking and sexual exploitation of three minor victims (“Minor Victim-1,” “Minor Victim-2,” and “Minor Victim-3,” and together, the “Minor Victims”).  The defendant recruited, enticed, harbored, transported, provided, obtained, and maintained the Minor Victims for the purpose of commercial sex.  Prior to being trafficked by MERCHANT, each of the Minor Victims previously resided at a residential treatment facility located in Westchester County, which provided housing for at-risk troubled children and adolescents on behalf of department of social services for certain counties in New York State.           

The defendant recruited the Minor Victims to engage in commercial sex.  Subsequently, the defendant used the website Backpage.com, an online classifieds website, to post advertisements of the Minor Victims for commercial sex.  The defendant provided Minor Victim-1 and Minor Victim-2 with drugs, and directed them to engage in commercial sex acts in particular locations in the Bronx, New York.

*                *                *

In addition to his prison sentence, MERCHANT, 32, was sentenced to five years of supervised release.

MERCHANT is the third defendant to be sentenced in this case by Judge Wood for his participation in sex trafficking of minors.  Steven Lesane, who pled guilty to sex trafficking of two minor victims, was sentenced to a term of 256 months in prison on July 27, 2021.  Jermaine Myrie, who pled guilty to participating in a conspiracy to commit sex trafficking of a minor, was sentenced to a term of 135 months in prison on February 12, 2020.  Reuben Sands, who pled guilty to conspiracy to violate the Travel Act, was sentenced to a term of 60 months in prison on December 18, 2019.  The final defendant, Martique Mcgriff, is scheduled to be sentenced on December 8, 2021.

This case is part of an ongoing prosecution of 19 defendants, set forth in eight indictments, for the sex trafficking of at least 20 minor girls and young adults in New York State’s social services system.  All 19 of the defendants have been convicted, either via guilty plea or following trial. 

Any individuals who believe that they have information that may be relevant to this investigation should contact the FBI at 1-212-384-1000 or https://tips.fbi.gov.

Mr. Williams thanked the FBI and the NYPD for their outstanding work in this matter and, in particular, the New York Child Exploitation and Human Trafficking Task Force.

This case is being handled by the Office’s General Crimes Unit.  Assistant United States Attorneys Mollie Bracewell, Elinor Tarlow, Jacob Gutwillig, and Peter Davis are in charge of the prosecution.