Southern District of New York

United States Attorney for the Southern District of New York, Jay Clayton, announced today that MICHAEL O’FLAHERTY pled guilty before U.S. District Judge Philip M. Halpern to making false statements to federal investigators about having disclosed to his former confidential informant turned fentanyl dealer that another law enforcement agency was actively and covertly investigating the drug dealer. 

“Michael O’Flaherty, a New York State Police narcotics investigator, exploited his position of public trust, betrayed the oath he swore to protect New Yorkers, and jeopardized the safety of fellow law enforcement officers,” said U.S. Attorney Jay Clayton.  “He did the unthinkable.  He tipped off a drug trafficker—responsible for distributing tens of thousands of fentanyl pills—to a covert narcotics investigation.  When questioned by federal investigators, O’Flaherty lied repeatedly to cover his tracks.  Today’s guilty plea demonstrates our Office’s continued commitment—and the commitment of our police departments—to rooting out the bad apples.”

According to the allegations in the Complaint, court records, and statements made in court:

In 2022, a state law enforcement agency and the U.S. Drug Enforcement Administration (“DEA”) conducted an investigation of fentanyl pill distribution linked to multiple overdose deaths in Dutchess County (the “Fentanyl Investigation”).  The Fentanyl Investigation identified a particular narcotics trafficker (“Individual-1”) and Individual-1’s network of runners as a prolific source of fentanyl pills in the county.  The Fentanyl Investigation also learned that Individual-1 had previously served as a confidential informant for the New York State Police (“NYSP”) and had been supervised by MICHAEL O’FLAHERTY, a police officer with the NYSP.  During conversations with members of the Fentanyl Investigation, O’FLAHERTY expressed a willingness to assist the Investigation. But unbeknownst to the Fentanyl Investigation and O’FLAHERTY’s own supervisors, O’FLAHERTY had maintained a personal relationship with Individual-1 both during and after Individual-1’s tenure as an informant.  O’FLAHERTY purported to assist the Fentanyl Investigation, but in fact O’FLAHERTY promptly told Individual-1 about the Fentanyl Investigation.  O’FLAHERTY also tried to dig for sensitive details about the Investigation, including the identity of the Investigation’s confidential source within Individual-1’s network.  At the same time, O’FLAHERTY attempted to prevent the Fentanyl Investigation from discovering the nature and extent of O’FLAHERTY’s interactions with Individual-1, including telephone calls, text messages, and one-on-one meetings that O’FLAHERTY had concealed from NYSP supervisors and colleagues. When federal investigators ultimately questioned O’FLAHERTY about the nature of his interactions with Individual-1, including O’FLAHERTY’s disclosure of the Fentanyl Investigation, O’FLAHERTY lied to federal investigators.     

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O’FLAHERTY, 43, of Poughkeepsie, New York, pled guilty to one count of making false statements, which carries a maximum sentence of five years in prison.

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

Mr. Clayton praised the outstanding work of the Special Agents of the U.S. Attorney’s Office for the Southern District of New York and the valuable assistance of the DEA and the NYSP Professional Standards Bureau. 

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

United States Attorney for the Southern District of New York, Jay Clayton, Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, and United States Marshal for the Southern District of New York, Ricky J. Patel, announced today the unsealing of a Superseding Indictment charging two gang members with witness tampering and witness retaliation: TYSHAWN PALMER, a/k/a “Ty Boogie,” a/k/a “pte_tm,” and HASSAN BROWN, a/k/a “Twin,” a/k/a “everythingsleezy.”  The charges relate to threats that PALMER and BROWN made to a witness during a racketeering and murder trial, United States v. Lamar Williams, which concluded last week with the jury returning a verdict of guilty on all counts.  Both PALMER and BROWN were arrested this morning.  The case is assigned to U.S. District Judge Loretta A. Preska, who also presided over the Williams trial.

“Threatening a witness and that witness’s family is an attack on our judicial system, the rule of law, and our society,” said U.S. Attorney Jay Clayton.  “As alleged, Tyshawn Palmer and Hassan Brown retaliated against a testifying witness in a federal murder trial.  In our federal courts, witness intimidation will not work—rather, it will be met with swift justice.”

“The alleged actions taken by the defendants to intimidate witnesses and their family members with violence are a deliberate attack on the integrity of our judicial system,” said NYPD Commissioner Jessica S. Tisch.  “We will not tolerate any attempt to influence the course of justice, and I thank the U.S. Attorney’s Office for their continued partnership on this case."

“As alleged, defendants Palmer and Brown attempted to undermine the rule of law and erode our justice system by witness tampering and retaliation,” said U.S. Marshal Ricky J. Patel.  “Their actions have been met with the profound reaction they face today after being charged and arrested by the United States Attorney’s Office for the Southern District of New York, the United States Marshals Service, and the NYPD.  The U.S. Marshals have been responsible for the protection of the federal judicial process since 1789, a responsibility taken very seriously to this day.  Ensuring the judicial process operates independently and free from harm or intimidation is paramount for law and order.  I commend the collective work of the Deputy U.S. Marshals who investigated and arrested these individuals along with our law enforcement partners in this case.”

As alleged in the Superseding Indictment, other court filings, and statements made during court proceedings:[1]

Between February 2 and February 11, 2026, a jury in the U.S. District Court for the Southern District of New York sat for the federal criminal trial of United States v. Lamar Williams, 22 Cr. 600 (LAP) (S.D.N.Y.) (the “Trial”), in which Lamar Williams, a leader of the violent Mac Ballers gang in the Bronx, New York, was charged with participating in the Mac Ballers racketeering conspiracy, murder in aid of racketeering, and murder through the use of a firearm.  On February 4 and February 5, 2026, a witness (the “Witness”) testified about the August 2013 murder that Williams committed, among other crimes.  Subsequently, the jury unanimously convicted Williams on all counts.

On or about February 4, 2026, PALMER and BROWN, who are Williams’s Mac Baller associates and have known both Williams and the Witness for years, learned that the Witness was testifying in the Trial.  During and after the Witness’s testimony, PALMER and BROWN, and other Mac Baller members and associates, used Instagram to post and repost threats designed to retaliate against the Witness for the Witness’s testimony, and to prevent or influence the Witness from providing further testimony or information to law enforcement.

In particular, PALMER and BROWN posted and reposted, among other things, the Instagram account name and photograph of the Witness; posts that repeatedly referred to the Witness as a “rat” and a “snitch”; and photographs of the Witness’s family members, including a photograph of the Witness and the Witness’s young child, in which the defendants threatened to “kill[ ]” the Witness’s child “at his school.”

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PALMER, 32, of Hackensack, New Jersey, and BROWN, 34, of the Bronx, New York, are each charged with one count of witness tampering and one count of witness retaliation, each of which carries a maximum sentence of life in prison.

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

Mr. Clayton praised the outstanding investigative work of the NYPD, the United States Marshals Service, the Special Agents and Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York, and the Southern District of New York Complex Analytics and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area. 

This case is being handled by the Office’s Violent Organizations and Crime Unit. Assistant U.S. Attorneys Ryan W. Allison, Katherine Wheelock, and Patrick R. Moroney are in charge of the prosecution.

[1] As the introductory phrase signifies, 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.

[1] As the introductory phrase signifies, 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.

[2] This image has been redacted, but the image as originally posted and reposted to Instagram included the unredacted faces of the Witness and the Witness’s young child.

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation, James C. Barnacle, Jr., announced the unsealing of an Indictment charging ANDREW WARNER, the former Chief Financial Officer of Mobileum, Inc., and KISHORE VANGIPURAM, the former Chief of Delivery of Mobileum, with conspiracy to commit securities fraud and wire fraud, securities fraud, and wire fraud.  The charges in the Indictment arise from an alleged scheme by WARNER and VANGIPURAM to inflate Mobileum’s key financial metrics in advance of the company’s 2022 sale to an investment firm at an enterprise value of $915 million.  Mobileum declared bankruptcy in 2024, after the fraud was uncovered.  WARNER surrendered in San Jose, California, on Friday and was presented before U.S. Magistrate Judge Susan van Keulen.  VANGIPURAM was arrested Friday at the San Francisco International Airport and will be presented today before U.S. Magistrate Judge Kandis A. Westmore.  The case has been assigned to U.S. District Judge J. Paul Oetken.

“As alleged, Andrew Warner and Kishore Vangipuram manipulated Mobileum’s financial metrics to sell the company at a higher price and, as a result, line their own pockets,” said U.S. Attorney Jay Clayton.  “The company’s investors, creditors, and employees deserved fair and complete financial information, not inflated numbers and schemes.  When C-Suite executives commit fraud, the women and men of our Office, together with our law enforcement partners, will hold them accountable.  That is what investors and the American people want.”

“Andrew Warner and Kishore Vangipuram allegedly exaggerated their company’s fiscal success through doctored billable hours and invoices to defraud an unsuspecting investment firm of nearly one billion dollars,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “These two executives allegedly exploited their respective CFO and CDO positions to betray the trust of an interested buyer out of selfish greed.  The FBI continues to protect the integrity of corporate transactions from fraudsters seeking to profit from deceitful practices.”

As alleged in the Indictment unsealed on Friday in Manhattan federal court:

WARNER and VANGIPURAM were the Chief Financial Officer and Chief Delivery Officer, respectively, of Mobileum, a Silicon Valley-based company that provided data analytics and network solutions to telecommunications firms around the world.

Beginning in or about September 2021, WARNER and VANGIPURAM schemed to deceive an investment firm into overpaying for Mobileum as part of a private equity transaction.  To inflate Mobileum’s apparent value, and to convey the illusion of robust growth and operational efficiency, WARNER and VANGIPURAM falsified the company’s financial metrics, including revenue and unbilled revenue.  In or about March 2022, after receiving those artificial metrics, the investment firm acquired Mobileum at an inflated enterprise value of $915 million.  In connection with the sale, WARNER received approximately $5.2 million, and VANGIPURAM received approximately $5.5 million, in cash, stock, and other proceeds.

WARNER and VANGIPURAM’s scheme hinged on the fraudulent acceleration of revenue. Under Mobileum’s accounting method, the company purported to recognize revenue over the life of a project in proportion to the work performed.  Consequently, any inflation of hours worked, or reduction in estimated total effort, resulted in fraudulent recognition of revenue.  WARNER and VANGIPURAM manipulated the revenue recognized by directing employees to transfer hours from projects where the hours were non-billable to projects where the hours were billable, to create the false appearance that billable work had been performed.  They also directed employees to artificially reduce the “level of effort” for projects, effectively shrinking the total work required so that work already performed represented a higher percentage of the contract.  By making projects appear significantly closer to completion than was factually accurate, the defendants manufactured millions of dollars in imaginary revenue.

To cover up their fraudulent acceleration of revenue, WARNER and VANGIPURAM engaged in more fraud.  Their fraudulent revenue acceleration resulted in a substantial spike in “unbilled revenue”—income recognized on Mobileum’s books but not yet invoiced to customers.  Before the sale of Mobileum, when the potential buyer repeatedly inquired about Mobileum’s high unbilled revenue as a red flag indicating poor cash conversion, WARNER and VANGIPURAM directed employees to create fictitious invoices for billing milestones that Mobileum never reached.  To prevent discovery of the underlying fraud by Mobileum’s clients, WARNER instructed that those invoices be processed internally to satisfy the investment firm’s scrutiny but strictly withheld from the customers themselves.

Even after the sale of Mobileum to the investment firm, WARNER and VANGIPURAM continued their deceptive practices to prevent the investment firm from discovering the true state of Mobileum’s financial health.  After the sale, VANGIPURAM cautioned a subordinate not to send emails about their invoicing because it would land them in a “lot of trouble.”  The scheme unraveled in 2024 after the investment firm discovered the defendants’ fraud, Mobileum’s true financial condition was disclosed, and the company—which the defendants had represented as a nearly billion-dollar enterprise—filed for bankruptcy.

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WARNER, 62, of Morgan Hill, California, and VANGIPURAM, 53, of Pleasanton, California, are charged with conspiracy to commit securities fraud and wire fraud, which carries a maximum sentence of five years in prison; securities 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 provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Clayton praised the outstanding work of the FBI. 

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Peter J. Davis, Alexander Li, and Samuel P. Rothschild are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of an Indictment charging TEDDY CACERES, a/k/a “Tito,” with distribution of narcotics resulting in death in connection with the April 13, 2025, fentanyl overdose death of a resident of Yorktown Heights, New York.  CACERES was also charged with drug and firearms offenses in connection with the search of his Bronx residence in January 2026, during which law enforcement found a significant quantity of fentanyl and a loaded firearm.  The case has been assigned to U.S. District Judge Lewis J. Liman.

“As alleged, Teddy Caceres sold fentanyl that tragically claimed a life,” said U.S. Attorney Jay Clayton.  “That did not deter him from dealing in death.  Nine months later, when law enforcement executed a search warrant at his residence, Caceres was once again allegedly in possession of fentanyl, as well as a loaded firearm.  New Yorkers want streets free from those who distribute deadly fentanyl, and together with the NYPD, the FBI, the DEA and our other law enforcement partners, the women and men of the SDNY will hold them accountable.”

“The FBI and our law enforcement partners will do everything in our power to decimate the drug trafficking industry and save American lives,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Teddy Caceres is an example of the problem; he allegedly continued to traffic fentanyl even after he contributed to the fatal overdose of an unsuspecting victim.  The FBI remains determined to investigate and charge those who threaten our community’s safety with narcotics and firearms.”

According to the allegations contained in the Indictment, other public filings, and statements made in public court proceedings:[1]

On or about April 13, 2025, the victim was found unconscious by members of her family at their residence in Yorktown Heights, New York.  The victim was transported to the hospital where she was pronounced dead.  At the family’s residence, law enforcement recovered several yellow glassines filled with fentanyl, consistent with the yellow glassines that video surveillance captured CACERES had sold to the victim the day before.

Approximately nine months later, on or about January 14, 2026, law enforcement executed a search warrant at CACERES’s apartment in the vicinity of Pelham Parkway South in the Bronx, New York, where they recovered a black .45 caliber Glock 21 with a magazine loaded with 18 .45 caliber live rounds, and 17 cartridges of 9mm ammunition, as well as two large blocks of fentanyl.

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CACERES, 43, of the Bronx, New York, is charged with one count of distribution of narcotics resulting in death, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison; one count of possession with intent to distribute fentanyl, crack cocaine base, and methamphetamine, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; one count of firearms use, carrying, and possession, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of life in prison; and one count of possession of a firearm after a felony conviction, which carries a maximum sentence of 15 years in prison.

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

Mr. Clayton praised the outstanding investigative work of the FBI, New York City Police Department, and Yorktown Police Department.

This case is being handled by the Office’s Violent Organizations & Crime Unit. Assistant U.S. Attorney Jared Hoffman 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.

A 38-count superseding indictment (S4 indictment) was unsealed today charging 27 members of the Anti-Tren faction of the designated foreign terrorist organization Tren de Aragua (TDA or TdA) with offenses including racketeering conspiracy, murder in aid of racketeering in connection with an April 15, 2024, double murder in the Bronx, New York, murder-for-hire conspiracy, kidnapping in aid of racketeering, sex trafficking and sex trafficking conspiracy, and other offenses. Twenty-one of the 27 defendants charged in the S4 indictment were previously charged in a 12-count indictment. Of the six newly added defendants, five are now in federal custody.

To date, the U.S. Attorney’s Office for the Southern District of New York has charged approximately 38 members or associates of TDA and Anti-Tren.

“As alleged, these members of Anti-Tren, a splinter faction of the terrorist organization Tren de Aragua, planned and carried out a series of horrific crimes, including gunpoint robberies, murders, and the exploitation of vulnerable young women through sex trafficking,” said U.S. Attorney Jay Clayton for the Southern District of New York (SDNY). “Tren de Aragua is in the business of murder, sex trafficking, and intimidation, and they brought that business to New York while being unlawfully present in the United States. Today’s charges reflect our commitment to bankrupt TDA and bring its members to justice. The gang members charged today exerted ruthless control over sex trafficking victims through intimidation, brutality, and threats of violence against them and their loved ones — leaving lasting trauma in their wake. The women and men of the SDNY are unwavering in their commitment to bankrupt gangs that corrupt our neighborhoods, prey on the vulnerable, and pursue violence as a way of life.”

“Homeland Security Investigations New York continues to stand at the forefront of investigations against vicious criminal enterprises like Tren de Aragua and Anti-Tren,” said Acting Executive Associate Director John A. Condon for Homeland Security Investigations (HSI). “Through their use of ruthless tactics and blatant disregard for human life, TdA and its offshoots are among the fastest emerging transnational criminal organizations to encroach upon American soil. HSI New York, through the Homeland Security Task Force, continues to target these gangs that seek to perpetrate destruction and terror in our communities. Together, alongside our law enforcement partners, we are committed to ensuring that no corners of the TdA and Anti-Tren enterprises are beyond the reach of justice.”

“TdA and its faction Anti-Tren grew from a prison gang to a transnational criminal organization to a foreign terrorist organization. The violence and horrific acts as charged here including the double murder, murder for hire, kidnapping, and sex trafficking will be met with the full weight of our justice system,” said Co-Director Christopher Eason of Joint Task Force Vulcan (JTFV). “The charges against these TdA associates and Anti-Tren members are directly in line with JTFV’s mission: a collaborative, whole of government effort to destroy TdA and its factions. We are grateful for our partnership with the U.S. Attorney’s Office for the Southern District of New York, and our law enforcement partners who worked tirelessly to investigate and bring these important charges.”

According to the allegations contained in the S4 indictment, Anti-Tren is a criminal organization almost exclusively comprised of former members and associates of TDA. Anti-Tren operated throughout New York City, including the boroughs of the Bronx and Queens, and in New Jersey, and elsewhere around the country, including in Illinois and Washington. The purposes of Anti-Tren included:

• Preserving and protecting the power and territory of Anti-Tren and its members and associates through acts involving murder, assault, other acts of violence, and threats of violence, including acts of violence and threats of violence directed at members and associates of TDA;
• Enriching the members and associates of Anti-Tren through, among other things:
  • The unlawful smuggling of individuals, including women and girls from Venezuela, into the United States,
  • The sex trafficking of young women or “multadas” who had been unlawfully smuggled into the United States,
  • The trafficking of controlled substances, including “tusi,” and
  • Armed robberies;
• Keeping victims and potential victims in fear of Anti-Tren and its members and associates through threats and acts of violence;
• Promoting and enhancing Anti-Tren and the reputation and activities of its members and associates;
• Providing assistance to members and associates of Anti-Tren who committed crimes for and on behalf of Anti-Tren, such as lodging and interstate transportation for members and associates of Anti-Tren to flee prosecution, or bail money for members or associates of Anti-Tren who are detained; and
• Protecting Anti-Tren and its members and associates from detection and prosecution by law enforcement authorities through acts of intimidation, threats, and violence against potential witnesses to crimes committed by members of Anti-Tren.

Anti-Tren engaged in human smuggling and sex trafficking of young women or “multadas,” into the United States in exchange for debts that the young women would pay back by engaging in commercial sex work. Like TDA, members of Anti-Tren enforced compliance among these young women by, among other things:

• Threatening to kill the young women and their families,
• Assaulting the young women,
• Shooting or killing the young women, and
• Tracking down and kidnapping the young women who tried to flee.

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

The new charges in the S4 indictment allege, among other things, that:

• On or about April 15, 2024, Yender Mata, Ervin Hernandez, also known as “Coco” and “Coquito,” and Kerlyn Nataliy Perez-Lopez, also known as “Mou,” conspired to murder and caused the murders of Jhombeyker Jose Bisbal Pina and Adrian Mendoza Isturiz, who were shot to death in the Bronx.
• In or about April 2025, Guillermo Enrique Freites-Velazquez and Roiman Noe Bello Ferrer conspired to kill an individual in New York (Intended Victim-1).
• From in or about February 2025 until in or about March 2025, David Valencia-De La Rosa and Johan Carlos Mujica-Urpin, also known as “Sobrino,” conspired to kill another individual in New York (Intended Victim-2).
• In or about April 2025, Roiman Noe Bello Ferrer and others conspired to kill an individual in Florida (Intended Victim-3).
• On or about Oct. 5, 2024, Jesus David Barrios Garcia, also known as “Morocho,” ordered Kellen Jaspe Bustamanate to shoot an Anti-Tren member in the leg as a form of gang punishment. On or about the same day, Barrios Garcia also ordered Enrique Gustavo Boada Yanez, also known as “Chino,” to shoot a different Anti-Tren member in the leg, also as gang punishment.
• In or about January 2025, Keiswuel Orlando Palacios-Milano, also known as “Oturache” and “Inmortalidad,” Anderson Smith Zambrano-Pacheco, and Yeferson Prieto Galviz, also known as “Flacot” and “Flacote,” conspired to commit and did commit a gunpoint home invasion robbery of an individual (Robbery Victim-1) and Robbery Victim-1’s family in Yonkers.
• In or about January 2025, Keiswuel Orlando Palacios-Milano, also known as “Oturache” and “Inmortalidad,” Anderson Zambrano-Pacheco, Mario Pereda, also known as “Cara de Hombre,” Wilfredo Jose Avendaño Carrizalez, also known as “Kabuvy,” and Carlos Gabriel Santos Mogollon, conspired to commit a gunpoint robbery of a drug trafficker (Robbery Victim-2) in the Bronx.
• In or about 2024, Luis Jose Velasquez-Hurtado, also known as “Chito,” engaged in sex trafficking of a young woman from Venezuela (Trafficking Victim-1) whom Velasquez-Hurtado threatened with a gun, caused to be kidnapped, and whose immigration documents Velasquez-Hurtado caused to be seized.
• In or about 2024, Jesus David Barrios Garcia, also known as “Morocho,” Enrique Gustavo Boada Yanez, also known as “Chino,” Jesus Ruben Lopez Gonzalez, also known as “Lopez,” and Danger Leoner Sanchez Alfonzo, also known as “Danger,” engaged in sex trafficking of another young woman from Venezuela (Trafficking Victim-2).

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.

U.S. Attorney Clayton praised the outstanding investigative work of HSI New York, Seattle, Chicago, and Portland, and the NYPD. He also thanked Joint Task Force Vulcan; the Arapahoe County District Attorney’s Office; the Aurora Police Department in Aurora, Colorado; the New York/New Jersey Regional Fugitive Task Force of the U.S. Marshals Service (USMS); the U.S. Customs and Border Protection’s National Gang Unit and New York Human Intelligence Division; U.S. Immigration and Customs Enforcement’s New York and Chicago Enforcement and Removal Operations; the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); U.S. Marshals Service-District of Oregon; U.S. Customs and Border Protection-New York; the New York City Crime Analysis Center at the New York/New Jersey High Intensity Drug Trafficking Area; the Computer Crimes Unit at the NYPD; the King County, Washington Sheriff’s Office; and the Seattle Police Department.

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

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Justice Department to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.

This case is being handled by JTFV and Assistant U.S. Attorneys Jun Xiang, Kathryn Wheelock, Timothy Ly, and Andrew K. Chan for the Southern District of New York are in charge of the prosecution.

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that RAI THOMAS, a/k/a “Bandz,” was sentenced today to 160 months in prison for sex trafficking of a minor and use of interstate facilities to promote sex trafficking and prostitution.  In October 2025, THOMAS was convicted at trial before U.S. District Judge Nelson S. Román, who imposed today’s sentence. 

“Rai Thomas preyed on a child for profit, advertising her to strangers on the internet and selling her for sex again and again so he could enrich himself,” said U.S. Attorney Jay Clayton.  “New Yorkers want child sex traffickers off our streets, never to return.  Today’s lengthy prison sentence is indicative of this Office’s commitment to continuing to work tirelessly with our law enforcement partners to remove sex traffickers like Thomas from our streets and communities.”

According to the allegations in the Indictment and the evidence at trial:

Between January and February 2022, THOMAS trafficked Minor Victim-1 to engage in commercial sexual activity across multiple hotels within the Bronx and Brooklyn, New York.  Minor Victim-1 had been living in a children’s group home at the time that THOMAS trafficked her.  THOMAS facilitated and benefited from the scheme in numerous ways, including by enticing Minor Victim-1 to engage in commercial sex; coordinating the transportation of Minor Victim-1 to hotels; reserving the hotel rooms in which she engaged in commercial sex; facilitating the advertisement of Minor Victim-1 on the internet to customers for commercial sex; and profiting from the sex trafficking scheme.

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In addition to the prison term, THOMAS, 31, of Mount Vernon, New York, was sentenced to five years of supervised release. 

Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation’s Hudson Valley Safe Streets Task Force, the Town of Poughkeepsie Police Department, the Dutchess County Sheriff’s Office, the City of Poughkeepsie Police Department, and the New York City Police Department. 

The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Qais Ghafary, Kaiya Arroyo, and Jorja Knauer represented the Government at trial, with the assistance of Paralegal Specialists Gabriela Salerno, Samantha Olsen, and Shannon Becker.

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director of the Counterintelligence and Espionage Division of the Federal Bureau of Investigation (“FBI”), Roman Rozhavsky, Administrator of the Drug Enforcement Administration (“DEA”), Terrance C. Cole, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced that NIKHIL GUPTA, a/k/a “Nick,” an Indian national, pled guilty to all three counts contained in the Second Superseding Indictment, charging him with murder-for-hire, conspiracy to commit murder-for-hire, and conspiracy to commit money laundering, in connection with his efforts to murder a U.S. citizen in New York City.  GUPTA pled guilty today before U.S. Magistrate Judge Sarah Netburn and is scheduled to be sentenced by U.S. District Judge Victor Marrero on May 29, 2026.

“Nikhil Gupta plotted to assassinate a U.S. citizen in New York City,” said U.S. Attorney Jay Clayton.  “He thought that from outside this country he could kill someone in it without consequence, simply for exercising their American right to free speech.  But he was wrong, and he will face justice.  Our message to all nefarious foreign actors should be clear: steer clear of the United States and our people.”

“Nikhil Gupta was a key participant in a murder-for-hire plot against a U.S. citizen, a murder that was prevented thanks to the actions of U.S. law enforcement,” said FBI Assistant Director Roman Rozhavsky.  “The U.S. citizen became a target of transnational repression solely for exercising their freedom of speech.  The message from the FBI should be clear—no matter where you are located if you try to harm our citizens we will not stop until you are brought to justice.”

“It is often a slippery and dangerous slope from drug trafficking to deadly violence, as demonstrated by the murder-for-hire plot orchestrated by international narcotics and weapons trafficker Nikhil Gupta,” said DEA Administrator Terrance Cole.  “This case is a stark reminder of the ruthless lengths criminals will go to in order to further their illegal enterprises.  I commend the men and women of DEA’s New York Task Force Division for their outstanding investigative work successfully foiling Gupta’s assassination plot.  Let there be no doubt: DEA remains steadfast in its mission to protect America.  We will continue to leverage our superior investigative expertise and unmatched intelligence capabilities to dismantle the drug trafficking networks that threaten our safety and well-being of our communities.”

“At the direction and coordination of an Indian government employee, Nikhil Gupta plotted to assassinate a United States citizen on American soil, facilitating a foreign adversary’s unlawful effort to silence a vocal critic of the Indian government,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI will continue to aggressively defend the homeland against any foreign adversaries who target our citizens for exercising their constitutionally protected rights.”

According to the allegations contained in the Second Superseding Indictment, other public court documents, and statements made in court:

In or about 2023, GUPTA worked together with others in India and elsewhere, including, as alleged in the Second Superseding Indictment, co-defendant VIKASH YADAV, who was at relevant times an Indian government employee, to plot the assassination of an attorney and political activist (the “Victim”) on U.S. soil.[1] The Victim, who is a U.S. citizen of Indian origin, is a vocal critic of the Indian government and leads a U.S.-based organization that advocates for the secession of Punjab, a state in northern India that is home to a large population of Sikhs, an ethnoreligious minority group in India. The Victim has publicly called for some or all of Punjab to secede from India and establish a Sikh sovereign state called Khalistan, and the Indian government has banned the Victim and his separatist organization from India.

GUPTA is a citizen and was a resident of India, and he has described himself as an international narcotics and weapons trafficker in electronic communications with YADAV and others. YADAV was employed by the Government of India’s Cabinet Secretariat, which houses India’s foreign intelligence service, the Research and Analysis Wing.

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

In or about June 2023, in furtherance of the assassination plot, YADAV provided GUPTA with personal information about the Victim, including the Victim’s home address in New York City, phone numbers associated with the Victim, and details about the Victim’s day-to-day conduct, which GUPTA then passed to the UC. GUPTA thereafter provided YADAV with regular updates on the assassination plot, including surveillance photographs of the Victim. GUPTA directed the UC to carry out the murder as soon as possible, but GUPTA also specifically instructed the UC not to commit the murder around the time of the Indian Prime Minister’s official state visit to the United States, which was scheduled to begin on or about June 20, 2023.

On or about June 18, 2023, approximately two days before the Indian Prime Minister’s state visit to the United States, masked gunmen murdered Hardeep Singh Nijjar outside a Sikh temple in British Columbia, Canada. Nijjar was an associate of the Victim, and, like the Victim, was a leader of the Sikh separatist movement and an outspoken critic of the Indian government.  On or about June 19, 2023, the day after the Nijjar murder, GUPTA told the UC that Nijjar “was also the target” and “we have so many targets.” GUPTA also added that, in light of Nijjar’s murder, there was “now no need to wait” on killing the Victim.

On June 30, 2023, GUPTA was arrested in the Czech Republic and subsequently extradited to the United States.

*                *                *

GUPTA, 54 of India, pled guilty to murder-for-hire, which carries a maximum sentence of 10 years in prison, conspiracy to commit murder-for-hire, which carries a maximum sentence of 10 years in prison, and conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.

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

Mr. Clayton praised the outstanding investigative work of the DEA’s New York Drug Enforcement Task Force and the Counterintelligence Division of the FBI’s New York Field Office.  Mr. Clayton also thanked the DEA’s Special Operations Division, the DEA’s Vienna Country Office, the FBI’s Prague Country Office, the Department of Justice’s National Security Division, and the Czech Republic’s National Drug Headquarters for their assistance. The Justice Department’s Office of International Affairs worked with Czech authorities to secure the arrest and June 2024 extradition of Gupta.

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

[1] YADAV has been charged in the Second Superseding Indictment but has not yet been arrested in connection with those charges.

United States Attorney for the Southern District of New York, Jay Clayton, Acting Executive Associate Director of Homeland Security Investigations (“HSI”), John A. Condon, and Co-Director of Joint Task Force Vulcan (“JTFV”), Christopher Eason, announced a 38-count Superseding (“S4”) Indictment (the “S4 Indictment”) charging 27 members of the Anti-Tren faction of the designated foreign terrorist organization Tren de Aragua (“TDA”) with offenses including racketeering conspiracy, murder in aid of racketeering in connection with an April 15, 2024, double murder in the Bronx, murder-for-hire conspiracy, kidnapping in aid of racketeering, sex trafficking and sex trafficking conspiracy, and other offenses.  21 of the 27 defendants charged in the S4 Indictment were previously charged in a 12-count Indictment.  Of the six newly added defendants, five are now in federal custody.  The case is assigned to U.S. District Judge Mary Kay Vyskocil.

To date, the United States Attorney’s Office for the Southern District of New York has charged approximately 38 members or associates of TDA and Anti-Tren.

“As alleged, these members of Anti-Tren, a splinter faction of the terrorist organization Tren de Aragua, planned and carried out a series of horrific crimes, including gunpoint robberies, murders, and the exploitation of vulnerable young women through sex trafficking,” said U.S. Attorney Jay Clayton.  “Tren de Aragua is in the business of murder, sex trafficking, and intimidation, and they brought that business to New York while being unlawfully present in the United States.  Today’s charges reflect our commitment to bankrupt TDA and bring its members to justice.  The gang members charged today exerted ruthless control over sex trafficking victims through intimidation, brutality, and threats of violence against them and their loved ones—leaving lasting trauma in their wake.  The women and men of the SDNY are unwavering in their commitment to bankrupt gangs that corrupt our neighborhoods, prey on the vulnerable, and pursue violence as a way of life.”

“HSI New York continues to stand at the forefront of investigations against vicious criminal enterprises like Tren de Aragua and Anti-Tren,” said HSI Acting Executive Associate Director John A. Condon.  “Through their use of ruthless tactics and blatant disregard for human life, TdA and its offshoots are among the fastest emerging transnational criminal organizations to encroach upon American soil.  HSI New York, through the Homeland Security Task Force, continues to target these gangs that seek to perpetrate destruction and terror in our communities.  Together, alongside our law enforcement partners, we are committed to ensuring that no corners of the TdA and Anti-Tren enterprises are beyond the reach of justice.”

“TdA and its faction Anti-Tren grew from a prison gang to a transnational criminal organization to a foreign terrorist organization. The violence and horrific acts as charged here including the double murder, murder for hire, kidnapping, and sex trafficking will be met with the full weight of our justice system,” said JTFV Co-Director Christopher Eason. “The charges against these TdA associates and Anti-Tren members are directly in line with JTFV’s mission: a collaborative, whole of government effort to destroy TdA and its factions. We are grateful for our partnership with the U.S. Attorney’s Office for the Southern District of New York, and our law enforcement partners who worked tirelessly to investigate and bring these important charges.”

According to the allegations contained in the S4 Indictment:[1]

Anti-Tren is a criminal organization almost exclusively comprised of former members and associates of TDA. Anti-Tren operated throughout New York City, including the boroughs of the Bronx and Queens, and in New Jersey, and elsewhere around the country, including in Illinois and Washington.  The purposes of Anti-Tren included:

• Preserving and protecting the power and territory of Anti-Tren and its members and associates through acts involving murder, assault, other acts of violence, and threats of violence, including acts of violence and threats of violence directed at members and associates of TDA.
• Enriching the members and associates of Anti-Tren through, among other things:
  • The unlawful smuggling of individuals, including women and girls from Venezuela, into the U.S.;
  • The sex trafficking of young women or “multadas” who had been unlawfully smuggled into the U.S.;
  • The trafficking of controlled substances, including “tusi”; and
  • Armed robberies.
• Keeping victims and potential victims in fear of Anti-Tren and its members and associates through threats and acts of violence.
• Promoting and enhancing Anti-Tren and the reputation and activities of its members and associates.
• Providing assistance to members and associates of Anti-Tren who committed crimes for and on behalf of Anti-Tren, such as lodging and interstate transportation for members and associates of Anti-Tren to flee prosecution, or bail money for members or associates of Anti-Tren who are detained.
• Protecting Anti-Tren and its members and associates from detection and prosecution by law enforcement authorities through acts of intimidation, threats, and violence against potential witnesses to crimes committed by members of Anti-Tren.

Anti-Tren engaged in human smuggling and sex trafficking of young women or “multadas,” into the U.S. in exchange for debts that the young women would pay back by engaging in commercial sex work. And like TDA, members of Anti-Tren enforced compliance among these young women by, among other things:

• Threatening to kill the young women and their families,
• Assaulting the young women,
• Shooting or killing the young women, and
• Tracking down and kidnapping the young women who tried to flee.

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

The new charges in the S4 Indictment allege, among other things, that:

• On or about April 15, 2024, YENDER MATA, ERVIN HERNANDEZ, a/k/a “Coco,” a/k/a “Coquito,” and KERLYN NATALIY PEREZ-LOPEZ, a/k/a “Mou,” conspired to murder and caused the murders of Jhombeyker Jose Bisbal Pina and Adrian Mendoza Isturiz, who were shot to death in the Bronx.
• In or about April 2025, GUILLERMO ENRIQUE FREITES-VELAZQUEZ and ROIMAN NOE BELLO FERRER conspired to kill an individual in New York (“Intended Victim-1”).
• From in or about February 2025 until in or about March 2025, DAVID VALENCIA-DE LA ROSA and JOHAN CARLOS MUJICA-URPIN, a/k/a “Sobrino” conspired to kill another individual in New York (“Intended Victim-2”).
• In or about April 2025, ROIMAN NOE BELLO FERRER and others conspired to kill an individual in Florida (“Intended Victim-3”).
• On or about October 5, 2024, JESUS DAVID BARRIOS GARCIA, a/k/a “Morocho,” ordered KELLEN JASPE BUSTAMANATE to shoot an Anti-Tren member in the leg as a form of gang punishment.  On or about the same day, BARRIOS GARCIA also ordered ENRIQUE GUSTAVO BOADA YANEZ, a/k/a “Chino,” to shoot a different Anti-Tren member in the leg, also as gang punishment.
• In or about January 2025, KEISWUEL ORLANDO PALACIOS-MILANO, a/k/a “Oturache,” a/k/a “Inmortalidad,” ANDERSON SMITH ZAMBRANO-PACHECO, and YEFERSON PRIETO GALVIZ, a/k/a “Flacot,” a/k/a “Flacote,” conspired to commit and did commit a gunpoint home invasion robbery of an individual (“Robbery Victim-1”) and Robbery Victim-1’s family in Yonkers.
• In or about January 2025, KEISWUEL ORLANDO PALACIOS-MILANO, a/k/a “Oturache,” a/k/a “Inmortalidad,” ANDERSON ZAMBRANO-PACHECO, MARIO PEREDA, a/k/a “Cara de Hombre,” Wilfredo Jose AVENDAÑO CARRIZALEZ, a/k/a “Kabuvy,” and CARLOS GABRIEL SANTOS MOGOLLON, conspired to commit a gunpoint robbery of a drug trafficker (“Robbery Victim-2”) in the Bronx.
• In or about 2024, LUIS JOSE VELASQUEZ-HURTADO, a/k/a “Chito,” engaged in sex trafficking of a young woman from Venezuela (“Trafficking Victim-1”) whom VELASQUEZ-HURTADO threatened with a gun, caused to be kidnapped, and whose immigration documents VELASQUEZ-HURTADO caused to be seized.
• In or about 2024, JESUS DAVID BARRIOS GARCIA, a/k/a “Morocho,” ENRIQUE GUSTAVO BOADA YANEZ, a/k/a “Chino,” JESUS RUBEN LOPEZ GONZALEZ, a/k/a “Lopez,” and DANGER LEONER SANCHEZ ALFONZO, a/k/a “Danger,” engaged in sex trafficking of another young woman from Venezuela (“Trafficking Victim-2”).

*                *                *

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

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

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

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

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Justice Department to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.

This case is being handled by the Office’s Violent Organizations & Crime Unit and JTFV.  Assistant U.S. Attorneys Jun Xiang, Kathryn Wheelock, Timothy Ly, and Andrew K. Chan are in charge of the prosecution.

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

COUNT

CHARGE

DEFENDANTS

MAX. PENALTIES

1

Racketeering

conspiracy

18 U.S.C. § 1962(d)

REINALDO RAFAEL GONZALES-VALDEZ, 

     a/k/a “Mariguana,” 

     a/k/a “Marijuana,”

JOSE MANUEL GUERRERO-ZARATE,

     a/k/a “Mantequilla,”

JOSE DAVID VALENCIA-DE LA ROSA,

JOHAN CARLOS MUJICA-URPIN,

      a/k/a “Sobrino,”

LUIS JOSE VELASQUEZ-HURTADO,

     a/k/a “Chito,”

STEFANO SAID PACHON-ROMERO,

GUILLERMO ENRIQUE FREITES-VELAZQUEZ,

JESUS DAVID BARRIOS GARCIA,

     a/k/a “Morocho,”

GIOVANNY VALENTIN BLANCO LUCIANO,

     a/k/a “Cachorrito,”

ANDERSON JESUS DURAN BERROTERAN,

     a/k/a “Cachorro,”

ROIMAN NOE BELLO FERRER,

LUIS MIGUEL RODRIGUEZ-TAPIA,

MARIO ANDRES PEREDA,

     a/k/a “Cara de Hombre,”

ANDERSON SMITH ZAMBRANO-PACHECO,

YEFERSON ALEJANDRO PRIETO GALVIZ,

     a/k/a “Flaco T,” 

     a/k/a “Flacote,”

JHONKENNEDY BRAVO-CASTRO,

     a/k/a “Negrito,”

YENDER MAYKIER MATA,

KELLEN ALEJANDRO JASPE BUSTAMANTE, and

LUIS ANDRES BELLO-CHACON,

     a/k/a “Care de Peo”

2

Sex trafficking conspiracy

18 U.S.C. § 1594(c)

REINALDO RAFAEL GONZALES-VALDEZ, 

     a/k/a  “Mariguana,” a/k/a “Marijuana,”

JOSE MANUEL GUERRERO-ZARATE, 

     a/k/a  “Mantequilla,”

JOSE DAVID VALENCIA-DE LA ROSA,

JOHAN CARLOS MUJICA-URPIN, 

     a/k/a  “Sobrino,”

LUIS JOSE VELASQUEZ-HURTADO,

     a/k/a “Chito,”

STEFANO SAID PACHON-ROMERO, GUILLERMO FREITES VELAZQUEZ,

JESUS DAVID BARRIOS GARCIA, 

     a/k/a “Morocho,”

ANDERSON JESUS DURAN BERROTERAN,       a/k/a “Cachorro,”

LUIS MIGUEL RODRIGUEZ-TAPIA,

MARIO ANDRES PEREDA, 

     a/k/a  “Cara de Hombre,”

ANDERSON SMITH ZAMBRANO-PACHECO, and

JHONKENNEDY BRAVO-CASTRO,

     a/k/a “Negrito”

3

Alien importation and harboring for immoral purpose – conspiracy

18 U.S.C. § 371

REINALDO RAFAEL GONZALES-VALDEZ, 

     a/k/a  “Mariguana,” a/k/a “Marijuana,”

JOSE MANUEL GUERRERO-ZARATE, 

     a/k/a  “Mantequilla,” JOSE DAVID VALENCIA-DE LA ROSA,

JOHAN CARLOS MUJICA-URPIN, 

     a/k/a  “Sobrino,”

LUIS JOSE VELASQUEZ-HURTADO,

     a/k/a “Chito,”

STEFANO SAID PACHON-ROMERO, GUILLERMO FREITES VELAZQUEZ,

JESUS DAVID BARRIOS GARCIA, 

     a/k/a “Morocho,”

ANDERSON JESUS DURAN BERROTERAN,       a/k/a “Cachorro,”

LUIS MIGUEL RODRIGUEZ-TAPIA,

MARIO ANDRES PEREDA, 

     a/k/a  “Cara de Hombre,”

ANDERSON SMITH ZAMBRANO-PACHECO, and

JHONKENNEDY BRAVO-CASTRO,

     a/k/a “Negrito”

4

Drug trafficking conspiracy

21 U.S.C. §  846

REINALDO RAFAEL GONZALES-VALDEZ,

     a/k/a  “Mariguana,” a/k/a “Marijuana,”

JOSE MANUEL GUERRERO-ZARATE, 

     a/k/a  “Mantequilla,”

JOHAN CARLOS MUJICA-URPIN, 

     a/k/a  “Sobrino,”

GUILLERMO FREITES VELAZQUEZ,

JESUS DAVID BARRIOS GARCIA, 

     a/k/a “Morocho,”

GIOVANNY VALENTIN BLANCO LUCIANO, 

     a/k/a  “Cachorrito,”

ANDERSON SMITH ZAMBRANO-PACHECO,

YEFERSON ALEJANDRO PRIETO GALVIZ,       a/k/a “Flaco T,” a/k/a “Flacote,”

YENDER MAYKIER MATA,

KELLEN ALEJANDRO JASPE BUSTAMANTE, and

LUIS ANDRES BELLO-CHACON, 

     a/k/a “Care de Peo”

5

Firearm use, carrying, and possession

18 U.S.C. §§ 924(c)(1)(A)(i) and 2

REINALDO RAFAEL GONZALES-VALDEZ,

     a/k/a  “Mariguana,” a/k/a “Marijuana,”

JOSE MANUEL GUERRERO-ZARATE, 

     a/k/a  “Mantequilla,”

JOHAN CARLOS MUJICA-URPIN, 

     a/k/a  “Sobrino,”

GUILLERMO FREITES VELAZQUEZ,

JESUS DAVID BARRIOS GARCIA, 

     a/k/a “Morocho,”

GIOVANNY VALENTIN BLANCO LUCIANO, 

     a/k/a  “Cachorrito,”

ANDERSON SMITH ZAMBRANO-PACHECO,

YEFERSON ALEJANDRO PRIETO GALVIZ,       a/k/a “Flaco T,” a/k/a “Flacote,”

YENDER MAYKIER MATA,

KELLEN ALEJANDRO JASPE BUSTAMANTE, and

LUIS ANDRES BELLO-CHACON,

a/k/a “Care de Peo”

Life in prison

Mandatory minimum sentence of five years in prison

6

Obstruction of justice

18 U.S.C. §§ 1512(c) and 2

LUIS JOSE VELASQUEZ-HURTADO,

     a/k/a “Chito,”

7

Unlicensed dealing of firearms

18 U.S.C. §§   922(a)(1)(A) and 2

8

Possession of a firearm and ammunition by a fugitive from justice and illegal alien

18 U.S.C. §§ 922(g)(2) and (5), and 2

9

Possession of a firearm and ammunition by an illegal alien

18 U.S.C. §§  922(g)(5) and 2

JHONKENNEDY BRAVO-CASTRO,

           a/k/a “Negrito,”

10

Possession of a firearm and ammunition by an illegal alien

18 U.S.C. §§  922(g)(5) and 2

11

Murder in aid of racketeering

18 U.S.C. §§ 1959(a)(1) and 2

YENDER MATA,

ERVIN HERNANDEZ,

a/k/a “Coco,” “Coquito”

KERLYN NATALI PEREZ-LOPEZ,

a/k/a “Mou”

Life in prison or death

Mandatory minimum sentence of life in prison

12

Firearms use, carrying, and possession

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

YENDER MATA,

ERVIN HERNANDEZ,

a/k/a “Coco,” “Coquito”

KERLYN NATALI PEREZ-LOPEZ,

a/k/a “Mou”

Life in prison

Mandatory minimum and consecutive sentence of 10 years in prison

13

Murder in aid of racketeering

18 U.S.C. §§ 1959(a)(1) and 2

YENDER MATA,

ERVIN HERNANDEZ,

a/k/a “Coco,” “Coquito”

KERLYN NATALI PEREZ-LOPEZ,

a/k/a “Mou”

Life in prison or death

Mandatory minimum sentence of life in prison

14

Firearms use, carrying, and possession

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

YENDER MATA,

ERVIN HERNANDEZ,

a/k/a “Coco,” “Coquito”

KERLYN NATALI PEREZ-LOPEZ,

a/k/a “Mou”

Life in prison

Mandatory minimum and consecutive sentence of 10 years in prison

15

Conspiracy to commit murder in aid of racketeering

18 U.S.C. § 1959(a)(5)

YENDER MATA,

ERVIN HERNANDEZ,

a/k/a “Coco,” “Coquito”

KERLYN NATALI PEREZ-LOPEZ,

a/k/a “Mou”

16

Murder-for-hire conspiracy resulting in death

18 U.S.C. § 1958

YENDER MATA,

ERVIN HERNANDEZ,

a/k/a “Coco,” “Coquito”

KERLYN NATALI PEREZ-LOPEZ,

a/k/a “Mou”

Life in prison or death

Mandatory minimum sentence of life in prison

17

Conspiracy to commit murder in aid of racketeering

18 U.S.C. § 1959(a)(5)

GUILLERMO ENRIQUE FREITES-VELAZQUEZ,

ROIMAN NOE BELLO FERRER

18

Murder-for-hire conspiracy

18 U.S.C. § 1958

DAVID VALENCIA-DE LA ROSA,

JOHAN CARLOS MUJICA-URPIN

19

Conspiracy to commit murder in aid of racketeering

18 U.S.C. § 1959(a)(5)

DAVID VALENCIA-DE LA ROSA,

JOHAN CARLOS MUJICA-URPIN

20

Murder-for-hire conspiracy

18 U.S.C. § 1958 and 2

21

Assault with a dangerous weapon in aid of racketeering

18 U.S.C. §§ 1959(a)(3) and 2

KELLEN JASPE BUSTAMANTE,

JESUS DAVID BARRIOS GARCIA,

a/k/a “Morocho”

22

Firearms use, carrying, and possession

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

KELLEN JASPE BUSTAMANTE,

JESUS DAVID BARRIOS GARCIA,

a/k/a “Morocho”

Life in prison

Mandatory minimum and consecutive sentence of 10 years in prison

23

Assault with a dangerous weapon in aid of racketeering

18 U.S.C. §§ 1959(a)(3) and 2

JESUS DAVID BARRIOS GARCIA,

a/k/a “Morocho,”

ENRIQUE GUSTAVO BOADA YANEZ,

a/k/a “Chino”

24

Firearms use, carrying, and possession

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

JESUS DAVID BARRIOS GARCIA,

a/k/a “Morocho,”

ENRIQUE GUSTAVO BOADA YANEZ,

a/k/a “Chino”

Life in prison

Mandatory minimum and consecutive sentence of 10 years in prison

25

Conspiracy to commit assault with a dangerous weapon in aid of racketeering

18 U.S.C. § 1959(a)(6)

KELLEN JASPE BUSTAMANTE,

JESUS DAVID BARRIOS GARCIA,

a/k/a “Morocho”

26

Conspiracy to commit Hobbs Act Robbery

18 U.S.C. § 1951

KEISWUEL ORLANDO PALACIOS-MILANO,

a/k/a “Oturache,”

ANDERSON SMITH ZAMBRANO-PACHECO,

YEFERSON PRIETO GALVIZ,

a/k/a “Flaco T,”

a/k/a “Flacote”

27

Hobbs Act Robbery

18 U.S.C. §§ 1951 and 2

KEISWUEL ORLANDO PALACIOS-MILANO,

a/k/a “Oturache,”

ANDERSON SMITH ZAMBRANO-PACHECO,

YEFERSON PRIETO GALVIZ,

a/k/a “Flaco T,”

a/k/a “Flacote”

28

Firearms use, carrying, and possession

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

KEISWUEL ORLANDO PALACIOS-MILANO,

a/k/a “Oturache,”

ANDERSON SMITH ZAMBRANO-PACHECO,

YEFERSON PRIETO GALVIZ,

a/k/a “Flaco T,”

a/k/a “Flacote”

Life in prison

Mandatory minimum and consecutive sentence of seven years in prison

29

Conspiracy to commit Hobbs Act Robbery

18 U.S.C. § 1951

KEISWUEL ORLANDO PALACIOS-MILANO,

a/k/a “Oturache,”

ANDERSON SMITH ZAMBRANO-PACHECO,

MARIO PEREDA,

a/k/a “Cara de Hombre,”

WILFREDO JOSE AVENDAÑO CARRIZALEZ and CARLOS GABRIEL SANTOS MOGOLLON

30

Firearms use, carrying, and possession conspiracy

18 U.S.C. § 924(o)

KEISWUEL ORLANDO PALACIOS-MILANO,

a/k/a “Oturache,”

ANDERSON SMITH ZAMBRANO-PACHECO,

MARIO PEREDA,

a/k/a “Cara de Hombre,”

WILFREDO JOSE AVENDAÑO CARRIZALEZ and CARLOS GABRIEL SANTOS MOGOLLON

31

Attempted Hobbs Act Robbery

18 U.S.C. §§ 1951 and 2

KEISWUEL ORLANDO PALACIOS-MILANO,

a/k/a “Oturache,”

ANDERSON SMITH ZAMBRANO-PACHECO,

MARIO PEREDA,

a/k/a “Cara de Hombre,”

WILFREDO JOSE AVENDAÑO CARRIZALEZ and CARLOS GABRIEL SANTOS MOGOLLON

32

Sex trafficking by force, fraud, and coercion

18 U.S.C. §§ 1591(a), (b)(1), and 2

LUIS JOSE VELASQUEZ-HURTADO,

a/k/a “Chito”

33

Kidnapping in aid of racketeering

18 U.S.C. §§ 1959(a)(1) and 2

LUIS JOSE VELASQUEZ-HURTADO,

a/k/a “Chito”

34

Unlawful conduct with respect to documents in furtherance of trafficking and forced labor

18 U.S.C. §§ 1592(a)(1), (a)(2), (c) and 2

LUIS JOSE VELASQUEZ-HURTADO,

a/k/a “Chito”

35

Sex trafficking by force, fraud, and coercion

18 U.S.C. §§ 1591(a), (b)(1), and 2

JESUS DAVID BARRIOS GARCIA,

a/k/a “Morocho,”

ENRIQUE GUSTAVO BOADA YANEZ,

a/k/a “Chino,”

JESUS RUBEN LOPEZ GONZALEZ,

DANGER LEONER SANCHEZ ALFONZO

36

Kidnapping in aid of racketeering

18 U.S.C. §§ 1959(a)(1) and 2

JESUS DAVID BARRIOS GARCIA,

a/k/a “Morocho,”

ENRIQUE GUSTAVO BOADA YANEZ,

a/k/a “Chino”

37

Assault with a dangerous weapon in aid of racketeering

18 U.S.C. §§ 1959(a)(3) and 2

JESUS DAVID BARRIOS GARCIA,

a/k/a “Morocho,”

ENRIQUE GUSTAVO BOADA YANEZ,

a/k/a “Chino”

38

Firearms use, carrying, and possession

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

JESUS DAVID BARRIOS GARCIA,

a/k/a “Morocho,”

ENRIQUE GUSTAVO BOADA YANEZ,

a/k/a “Chino”

Life in prison

Mandatory minimum and consecutive sentence of seven years in prison

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

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., Acting Commissioner of the New York City Department of Investigation (“DOI”), Christopher Ryan, Special Agent in Charge of the New York Field Office of Internal Revenue Service-Criminal Investigation (“IRS-CI”), Harry T. Chavis, Jr., and Special Agent in Charge of the New York Regional Office of the Federal Deposit Insurance Corporation’s Office of Inspector General (“FDIC-OIG”), Patricia Tarasca, announced today the unsealing of an Indictment charging former Commanding Officer of the New York City Police Department (“NYPD”) School Safety Division (“SSD”) KEVIN TAYLOR and Florida businessman GENO ROEFARO with bribery and related offenses.  TAYLOR was arrested this morning and will be presented today before U.S. Magistrate Judge Katharine H. Parker.  ROEFARO was also arrested this morning and was presented in the Southern District of Florida.  The case has been assigned to U.S. District Judge Vernon S. Broderick.  

“The NYPD is the greatest police force in the world, including because it invests wisely and honestly in resources,” said U.S. Attorney Jay Clayton.  “The NYPD procurement process is not for sale.  As alleged in the indictment, in 2023 and 2024, Kevin Taylor engaged in a corrupt relationship with Geno Roefaro—a Florida businessman who paid tens of thousands of dollars’ worth of bribes to Taylor—in exchange for Taylor agreeing to use his power and influence within the NYPD to enrich Roefaro’s company.  As alleged, Taylor also used his influence within the NYPD to attempt to extort at least two other businessmen for payments.  Corruption will not be tolerated from those, like Taylor, who are entrusted to keep New York City’s children and teachers safe.”

“Former NYPD Commanding Officer Kevin Taylor allegedly accepted bribes to steer city contracts to a co-defendant, Geno Roefaro, and attempted to extort another company,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “His alleged actions corrupted the city's contracting process and manipulated high-level executives.  While this alleged misconduct is exceedingly rare among NYPD officials, the FBI will not tolerate those who abuse their authority for personal gain.”

“When public servants choose to ignore their responsibility to follow the rules and promote fairness and integrity in what they do, they compromise the very fabric of good government and people’s faith in it,” said Acting DOI Commissioner Christopher Ryan.  “As charged, the former Commanding Officer of the NYPD’s School Safety Division allegedly monetized his authority and influence for personal gain, promising to advise and pressure others in City government to award contracts to a Florida businessman in return for tens of thousands of dollars in cash and gifts, including luxury hotel lodging, a helicopter tour, and Broadway tickets.  In a second alleged corrupt scheme, the NYPD official used his position to try and extort money from employees of a second company with an NYPD contract, threatening economic harm to the company in an attempt to obtain the payments.  I thank the United States Attorney’s Office for the Southern District of New York and our federal law enforcement partners for working with DOI to protect the City’s integrity.”

“Kevin Taylor is accused of leveraging his role as Commanding Officer of the NYPD School Safety Division to solicit bribes and extort employees,” said IRS-CI Special Agent in Charge Harry T. Chavis, Jr.  “By offering lavish vacations and high-end dining, Geno Roefaro allegedly exploited his illicit relationship with Taylor to secure government contracts.  Following today’s arrests, they will now face the repercussions of their alleged misappropriation of City funds.”

“We are pleased to join our law enforcement partners in announcing this indictment,” said FDIC-OIG Special Agent in Charge Patricia Tarasca.  “These charges reinforce the FDIC-OIG’s commitment to investigating all allegations of financial misconduct, including bribery offenses, as we seek to maintain and preserve the integrity of the banking sector.”

As alleged in the Indictment:[1]

From at least in or about July 2023 through in or about February 2024, TAYLOR repeatedly abused his authority and considerable influence as the Commanding Officer of the NYPD SSD by soliciting or demanding bribes in two corrupt schemes.

First, TAYLOR solicited and received bribes from ROEFARO in exchange for promises by TAYLOR to advise and pressure others in the New York City government to award ROEFARO millions of dollars’ worth of contracts. 

At all relevant times, ROEFARO was the founder, majority owner, and chief executive officer of a company (“Company-1”) that markets and sells cellphone-based tipline applications to school districts and police departments.  In or about summer 2022, ROEFARO began attempting to sell his products to the New York City government through seemingly legitimate means.  When those legitimate efforts did not progress to ROEFARO’s liking, ROEFARO chose to bribe TAYLOR on multiple occasions to achieve the results he wanted.  ROEFARO bribed TAYLOR with multiple cash payments and paid for TAYLOR’s vacations, entertainment experiences, and dining at high-end restaurants.  In exchange, TAYLOR advised and pressured others, including other high-ranking officials at the NYPD and the City Council of New York, to procure goods and services from Company-1.

Second, TAYLOR solicited and attempted to extort as much as $75,000 from two employees (“Individual-1” and “Individual-2,” respectively) of a second company (“Company-2”) that had contracted with the NYPD to outfit the SSD’s members with ballistic vests.  TAYLOR sought these payments in exchange for TAYLOR’s official acts facilitating and not disrupting Company-2’s contract with the NYPD.  TAYLOR also threatened economic harm against Company-2 as a means to obtain the payments. 

Specifically, in summer 2023, TAYLOR signed a contract with an event space (the “Event Space”) in Manhattan so that TAYLOR could host a holiday party for the SSD at the Event Space in December 2023.  Through that contract, TAYLOR was personally liable to pay the Event Space more than $100,000 for the holiday party.  In an attempt to satisfy that personal liability, TAYLOR repeatedly solicited payments from Individual-1 and Individual-2 in exchange for TAYLOR facilitating Company-2’s contract with the NYPD, and TAYLOR otherwise threatened Company-2 with economic harm to obtain those payments.  Despite TAYLOR’s efforts, Individual-1 and Individual-2 never made the bribe payments solicited by TAYLOR.

*               *                *

TAYLOR, age 52, of Yonkers, New York, is charged with one count of conspiracy to commit honest services wire fraud and one count of honest services wire fraud, each of which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison; two counts of bribery, each of which carries a maximum sentence of 10 years in prison; and two counts of extortion, each of which carries a maximum sentence of 20 years in prison. 

ROEFARO, age 39, of Pompano Beach, Florida, is charged with one count of conspiracy to commit honest services wire fraud and one count of honest services wire fraud, each of which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison; and one count of bribery, which carries a maximum sentence of 10 years in prison. 

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

Mr. Clayton praised the outstanding investigative work of the FBI, the Special Agents and Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York, DOI, IRS-CI, and FDIC-OIG.  Mr. Clayton also thanked the NYPD Internal Affairs Bureau, Group 25 for their assistance with this investigation. 

This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Jessica Greenwood, Matthew J. King, 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.

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that a jury found LAMAR WILLIAMS, a/k/a “Black,” a/k/a “Little Black,” a/k/a “Chase Money Marz,” guilty today of murder in aid of racketeering, murder through use of a firearm, and racketeering conspiracy.  The convictions relate to WILLIAMS’ murder of 28-year-old Rasheed Barton on August 11, 2013, in the Bronx, New York, and WILLIAMS’ leadership of the Mac Ballers gang.  WILLIAMS was convicted following a seven-day jury trial before U.S. District Judge Loretta A. Preska, who will impose sentence on May 19, 2026.

“Moments ago, a unanimous Manhattan jury rightly found that Lamar Williams, a leader of the violent Mac Ballers set of the Bloods gang, gunned down Rasheed Barton in cold blood,” U.S. Attorney Jay Clayton said.  “New Yorkers want violent gang members off our streets.  Our office, together with our law enforcement partners—including the NYPD, FBI, DEA and HSI—is committed to that mission.  In this important case, I commend the women and men of this Office for closely partnering with New York’s finest in bringing a leader of a gang whose stock and trade is murder, violence, and intimidation.”

According to the allegations in the Indictment, public court filings, and evidence presented at jury trial:

From at least 2013 to 2022, WILLIAMS was a member and leader of the Mac Ballers, which is associated with the national Bloods gang.  The Mac Ballers operated primarily in the northeast United States, including in the Bronx, and in jails and prisons of New York City and the State of New York.

Members of the Mac Ballers committed acts of violence, including murder, to protect and expand the gang’s territory, to retaliate against rival gang members, to keep victims and potential victims in fear of the gang, and to otherwise promote the gang’s reputation.  They also distributed controlled substances in order to enrich themselves.  Mac Ballers members promoted and celebrated the gang’s criminal conduct, including acts of violence, drug distribution, and firearm usage.

On August 11, 2013, WILLIAMS shot and killed Rasheed Barton in the vicinity of East 174th Street and Bronx River Avenue in the Bronx, New York.  WILLIAMS murdered Barton in connection with WILLIAMS’ membership in the Mac Ballers gang and his conspiring to sell crack cocaine.

*                *                *

WILLIAMS, 35, of the Bronx, New York, was convicted of one count of murder in aid of racketeering, which carries a statutory maximum sentence of life in prison and a mandatory minimum sentence of life in prison; one count of murder through use of a firearm, which carries a statutory maximum sentence of life in prison; and one count of racketeering conspiracy with special sentencing factors, which carries a statutory maximum sentence of life in prison.

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

Mr. Clayton praised the outstanding investigative work of the New York City Police Department and the investigators at the United States Attorney’s Office.

This case is being handled by the Office’s Violent Organizations and Crime Unit. Assistant U.S. Attorneys Ryan W. Allison and Patrick R. Moroney are in charge of the prosecution, with the assistance of Paralegal Specialists Chanel Foster and Sophie Keegan.

United States Attorney for the Southern District of New York, Jay Clayton, Special Agent in Charge of the New York Task Force Division of the Drug Enforcement Administration (“DEA”), Christopher Roberts, and the Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of a Superseding Indictment charging JALEN TEAGUE, a/k/a “Bizzle,” a/k/a “Too Official,” and CHELEIA COUNCIL SANDERS, a/k/a “Mercedes,” with racketeering conspiracy and TEAGUE with murder in aid of racketeering in connection with the August 16, 2023, poisoning death of a robbery victim in midtown Manhattan (“Victim-1”).  The Superseding Indictment also charges TEAGUE, SANDERS, and MEGAN STERNGAST, a/k/a “Megan - E Village,” with conspiring to distribute Gamma-Hydroxybutyric acid (“GHB”), resulting in death, in connection with Victim-1’s murder.  The case is assigned to U.S. District Judge Vernon S. Broderick. 

“As alleged, Jalen Teague directed a group of workers to locate, drug, and then rob men in New York City and across the country,” said U.S. Attorney Jay Clayton.  “These defendants displayed a startling indifference for New Yorkers, resulting in the death of an innocent man.  We deeply appreciate our agency partners at DEA and NYPD for ensuring these charges and ending this deadly scheme.”

“The charges filed today against Jalen Teague for allegedly masterminding a scheme to target, rob, and poison unsuspecting victims, including one which resulted in death, reflect the devastating consequences when individuals use controlled substances as weapons,” said DEA New York Task Force Division Special Agent in Charge Christopher Roberts.  “GHB is a powerful and dangerous illicit drug, and in this case its misuse proved fatal.  These crimes represent a profound violation of trust and a complete disregard for human life.  The DEA remains committed to protecting the public and working with our law enforcement partners to ensure justice is delivered for the victims and their families.”

As alleged in the Superseding Indictment, other court filings, and statements made during court proceedings:[1]

From at least in or about November 2022 through at least in or about June 2024, JALEN TEAGUE led a criminal enterprise and provided female workers with GHB, a rape drug that can cause users to lose consciousness.  The women then went to bars, restaurants, and clubs in several locations around the United States, including New York City, carrying GHB, often hidden inside small energy drink bottles.  There, at TEAGUE’s direction, the female workers looked for men wearing expensive watches or displaying other signs of wealth.  After identifying victims, the women would travel with the victims to their homes or hotel rooms.  Once alone with their victims, the women dosed—or “dropped”—the men by putting GHB into the victims’ drinks without the victims’ knowledge.  The victims would often lose consciousness or otherwise become vulnerable to robbery.  At TEAGUE’s direction, the women then frequently stole whatever they could, including luxury watches, wallets, credit cards, smartphones, gaming consoles, and identification documents for TEAGUE’s benefit. 

After the robberies, TEAGUE typically retrieved the women and would often attempt to use the stolen credit cards and cellphones to enrich themselves by transferring money using banking applications and buying gift cards and expensive electronics, among other things, before the owner of the credit cards woke up and could begin freezing accounts.  Between at least in or about November 2022 and in or about June 2024, the Teague Enterprise perpetrated approximately more than 100 GHB-assisted robberies in various locations around the United States.

Several victims of the Teague Enterprise’s GHB distribution scheme were hospitalized, and on August 16, 2023, TEAGUE caused the death of Victim-1 through this scheme.

If you believe you are a victim of the Teague Enterprise, please contact the Victim & Witness Services at the United States Attorney’s Office of the Southern District of New York at 866-874-8900.

*               *                *

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

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

Mr. Clayton praised the outstanding investigative work of the DEA, the NYPD and Southern District of New York Digital Forensic Unit, the Complex Analytics and Social Media Enhancement Team at the New York/ New jersey High Intensity Drug Trafficking Area.  Mr. Clayton also thanked the New York County District Attorney’s Office for their invaluable assistance.

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Rebecca R. Delfiner and Joseph H. Rosenberg are in charge of the prosecution.

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

Count

Defendant(s)

Min. and Max. Penalties

JALEN TEAGUE (32), and

CHELEIA COUNCIL SANDERS (31)

JALEN TEAGUE (32),

CHELEIA COUNCIL SANDERS (31), and

MEGAN STERNGAST (42)

[1] As the introductory phrase signifies, 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.

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the Eastern Regional Office of the U.S. Small Business Administration, Office of Inspector General (“SBA-OIG”), Amaleka McCall-Brathwaite, announced today that ALICE + OLIVIA, LLC (“ALICE + OLIVIA”) has agreed to pay $3,200,000 to resolve allegations that it violated the False Claims Act by falsely certifying that it was eligible for a Paycheck Protection Program (“PPP”) loan.  Under the settlement approved by U.S. District Judge Analisa Torres, ALICE + OLIVIA has admitted and accepted responsibility for conduct alleged in the Government’s Complaint, including that it was ineligible to receive the PPP loan due to the total number of individuals it employed.

The PPP, administered by the SBA, was created to assist small businesses nationwide adversely impacted by the COVID-19 pandemic.  In early 2021, the SBA permitted qualifying businesses that received an initial PPP loan to apply for a second PPP loan (a “Second-Draw PPP loan”) if they met certain requirements.  For example, when ALICE + OLIVIA applied for a Second-Draw PPP loan in January 2021, a business generally could have no more than 300 employees, including the employees of its domestic and foreign affiliates.  ALICE + OLIVIA exceeded this size eligibility requirement.   

“The Paycheck Protection Program was established to help businesses weather the extraordinary economic disruption caused by the COVID-19 pandemic by offering forgivable loans,” said U.S. Attorney Jay Clayton. “But too many applicants sought and obtained loans that they were never entitled to receive.  The women and men of this Office are dedicated to holding actors who attempt to bilk public programs accountable.”

“This settlement reflects our continued commitment to protecting taxpayer dollars and ensuring that federal relief programs are used as Congress intended,” said SBA-OIG Special Agent in Charge Amaleka McCall-Brathwaite.  “SBA-OIG will continue working closely with our law enforcement partners to hold accountable those who misrepresent their eligibility.”

As alleged in the Complaint:

On or about January 21, 2021, ALICE + OLIVIA submitted, through its authorized representative, an application for a Second-Draw PPP loan to a financial institution, and ALICE + OLIVIA was subsequently approved for and received a Second-Draw PPP loan for $2,000,000.  On or about February 9, 2022, ALICE + OLIVIA, through its authorized representative, applied for and received full forgiveness of its Second-Draw PPP loan.

ALICE + OLIVIA stated in its Second-Draw PPP loan application that it had 293 employees, when in fact ALICE + OLIVIA (together with its domestic and foreign affiliates) had more than 300 employees.  ALICE + OLIVIA also certified, among other things, that it was eligible to receive the Second-Draw PPP loan and that the information provided in its application and supporting documents was true and accurate in all material respects.

When ALICE + OLIVIA later applied for PPP loan forgiveness, it misrepresented in its application that it had only 271 employees at the time of its Second-Draw PPP loan application.  ALICE + OLIVIA also certified, once again, that the information provided in its application and supporting documents was true and correct in all material respects.

ALICE + OLIVIA violated the False Claims Act by knowingly presenting and making, or causing to be presented and made, false claims and statements in connection with its submission of its Second-Draw PPP loan application and forgiveness application.  Specifically, ALICE + OLIVIA falsely certified its eligibility for the Second-Draw PPP loan because ALICE + OLIVIA (together with its domestic and foreign affiliates) employed more than 300 employees and was thus ineligible for the loan it received.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, and Administrator of the U.S. Drug Enforcement Administration (“DEA”), Terrance C. Cole, announced the unsealing of an Indictment today charging IVAN VALERIO SAINZ SALAZAR, a/k/a “Mantecas,” with fentanyl importation and related weapons offenses in connection with his participation in a conspiracy to produce fentanyl for the Sinaloa Cartel and import it into the United States.  The Mexican government announced the arrest of Sainz Salazar and his associates in Badiraguato, Sinaloa on January 19, 2026.

“As alleged, Sainz Salazar served as a major producer of the Sinaloa Cartel’s fentanyl shipments bound for the United States,” said U.S. Attorney Jay Clayton.  “Fentanyl kills, and violent dealers in fentanyl must be taken off our streets.  Today’s charges target a major producer behind the Chapitos’ supply chain and underscore the commitment of the women and men of our Office to holding traffickers at all levels of the production and distribution chain accountable.”

“Fentanyl is the deadliest drug threat this nation has ever confronted, and today’s indictment makes that unmistakably clear,” said DEA Administrator Terrance Cole. “The Chapitos, a faction of the Sinaloa Cartel, a foreign terrorist organization - ran an enterprise protected by armed sicarios and military-grade weapons, producing millions of counterfeit pills that have killed many people, and leaving devastation in their wake. This is not just alleged drug trafficking. Fentanyl is a weapon used to destroy lives. The DEA is dismantling these networks from the top down, and we will not relent until the laboratories are shut, the traffickers are behind bars, and these cartel organizations are destroyed piece by piece.”

According to the allegations contained in the Indictment:1

The Sinaloa Cartel (the “Cartel”) is one of the most powerful drug cartels in Mexico and is largely responsible for the manufacturing and importing of fentanyl for distribution in the United States.  Fentanyl is a dangerous synthetic opioid that is more than 50 times more potent than heroin.  Fentanyl represents the single deadliest drug threat that the United States has ever encountered—it has ruined lives, devastated communities, and killed Americans at an unprecedented rate.

The sons of the Cartel’s notorious former leader, “El Chapo,” who are themselves collectively known as the “Chapitos,” have variously and at times led the most powerful faction of the Cartel.  To protect and further their fentanyl trafficking operation, the Chapitos and their confederates have relied on armed enforcers, known as sicarios, who commit acts of violence to protect the Chapitos’ operation and its leaders, territory, labs, trafficking routes, and money, and regularly use military-grade weapons smuggled from the United States, including machine guns, to perpetrate violence, including murder, torture, and kidnapping.

From at least in or about 2022, up to and including in or about 2025, SAINZ SALAZAR served as a key fentanyl producer for the Chapitos.  Among other things, SAINZ SALAZAR worked with others to produce millions of fentanyl pills on behalf of the Chapitos, participated in meetings to arrange fentanyl transactions, carried firearms and relied on armed security personnel at those meetings, and reported to high-ranking lieutenants of the Chapitos who themselves relied on sicarios armed with AK-47s and FN Minimis for the protection and promotion of their fentanyl operations.  In or about 2023, the Chapitos consolidated fentanyl production at labs operated by SAINZ SALAZAR and his associates and issued orders authorizing only SAINZ SALAZAR and his associates to produce and distribute fentanyl in territories controlled by the Chapitos.

*               *                *

SAINZ SALAZAR, 40, a Mexican national, is charged with conspiring to import fentanyl into the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; conspiring to distribute and possess with intent to distribute fentanyl in the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; using, carrying, and possessing machine guns and destructive devices in connection with the fentanyl importation conspiracy, which carries a mandatory minimum sentence of 30 years in prison and a maximum sentence of life in prison; and conspiring to use, carry, and possess machine guns and destructive devices in connection with the fentanyl importation conspiracy, which carries a maximum sentence of life in prison.

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

Mr. Clayton praised the outstanding investigative work of the DEA’s Special Operations Division, Bilateral Investigations Unit and thanked the DEA San Diego Field Division, the DEA Hermosillo, Mexico Resident Office, and the Office of International Affairs of the Justice Department’s Criminal Division for their assistance.

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jane Y. Chong, Sarah L. Kushner, and David J. Robles are in charge of the prosecution.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that CHRISTIAN LUGO, a/k/a “Coco,” was sentenced today to 19 years in prison for LUGO’s leadership role in a racketeering conspiracy that used fraud and violent intimidation to run a tow truck and auto repair shop known as Certified Auto.  On February 7, 2022, LUGO allowed and encouraged a co-conspirator who worked for him at Certified Auto to shoot at members of a rival tow truck company, which resulted in the death of Gloria Ortiz.  In August 2025, LUGO pled guilty to racketeering conspiracy and firearms offenses, while admitting to his role in the murder, before U.S. District Judge Dale E. Ho, who imposed today’s sentence.

“As Christian Lugo has now admitted, his rivalry with other tow truck companies set in motion a deadly chain of events, which caused a broad daylight shooting, killing Gloria Ortiz,” said U.S. Attorney Jay Clayton.  “Lugo used a gun to further his tow truck business, itself part of a criminal enterprise.  His actions led to the murder of a woman.  He is now where New Yorkers want him—off the streets and in prison.” 

According to the indictment, public court filings, and statements made at court proceedings:

LUGO, along with others, corrupted the operations and activities of Certified Auto, which was a company that provided towing and auto repair services to vehicles damaged in car accidents.  LUGO and his co-conspirators used Certified Auto to commit wire, mail, and insurance fraud and to assert control over the towing and auto repair industry in their territory in the Bronx, New York, using violence and threats of violence.

LUGO had a rivalry with a nearby tow truck shop owned by Gloria Ortiz.  On February 7, 2022, one of Lugo’s tow truck drivers got into a minor car accident while driving one of LUGO’s pickup trucks (illegally used as a tow truck) with a passenger vehicle in Ortiz’s shop’s claimed territory, resulting in a physical dispute with workers for that shop over the right to tow the passenger vehicle. LUGO then contacted another subordinate member of Certified Auto (“CC-1”) to pick up the driver, after which they all met up with LUGO.  At that meeting, LUGO allowed and permitted CC-1 to shoot at members of the rival company. Specifically, during that conversation, LUGO told CC-1 “are you going to take care of it or am I?” and CC-1 stated that CC-1 would do so.  CC-1 then drove to Certified Auto, where Gloria Ortiz and her workers had gathered. CC-1 opened fire, causing the death of Gloria Ortiz and nonfatal injuries to two other people outside of the Certified Auto shop.

*                *                *

In addition to the prison term, LUGO, 38, of the Bronx, New York, was sentenced to six years of supervised release. 

Mr. Clayton praised the outstanding investigative work of Special Agents from the FBI New York Safe Streets Task Force and the New York City Police Department.  Mr. Clayton also thanked the Bronx County District Attorney’s Office for their assistance in the investigation. 

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

United States Attorney for the Southern District of New York, Jay Clayton, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Michael Alfonso, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced that PAMELA DILLARD, a former supervisor in the New York City Police Department (“NYPD”), pled guilty to participating in a conspiracy to solicit and accept bribes.  DILLARD admitted to providing personally identifiable information of automobile accident victims contained in a non-public NYPD database to a co-conspirator (“CC-1”) who owned and operated a call center that referred accident victims to lawyers and doctors, in exchange for bribes of money and other things of value.  DILLARD pled guilty today before U.S. District Judge John G. Koeltl and is scheduled to be sentenced on July 1, 2026.

“The NYPD is the gold standard of police departments,” said U.S. Attorney Jay Clayton.  “There is no place in the NYPD for those who compromise the Department’s integrity for personal profit.”

“Pamela Dillard shamelessly exploited her law enforcement position to profit from the personal information of vulnerable accident victims, betraying the public’s trust for her own selfish gain,” said HSI Acting Special Agent in Charge Michael Alfonso.  “The defendant’s guilty plea is a direct result of her calculated abuse of her access to confidential data, choosing personal greed over the duty to protect sensitive victim information.  HSI New York, together with the FBI, the NYPD and the Southern District of New York, remains steadfast in placing New Yorkers’ wellbeing above all else, and will relentlessly pursue those who forsake their sworn responsibilities and in turn endanger our communities.”

“Pamela Dillard, a former NYPD civilian employee, abused her supervisory position within a highly acclaimed police department and her access to sensitive information to generate an illicit income,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “While the vast majority of our local law enforcement partners are dedicated to protecting the communities they serve, the FBI will not tolerate those who choose to betray that trust at the expense of New Yorkers.”           

According to the allegations contained in the Information, court records, and statements made in court:       

From at least in or about January 2021 through at least in or about September 2023, while working as an NYPD Principal Police Communication Technician (“PCT”), DILLARD solicited and accepted bribes from CC-1 in exchange for providing CC-1 the personally identifiable information of automobile accident victims from a non-public NYPD database.  In her capacity as a Principal PCT, DILLARD supervised other PCTs who dispatched police officers to the location of incidents that were called into 911 and had access to sensitive information about automobile accident victims.  During this period, DILLARD accepted at least 21 bribe payments from CC-1, totaling approximately $17,300.

*               *                *

DILLARD, 48, of Brooklyn, New York, pled guilty to one count of conspiracy to commit federal program bribery, which carries a maximum sentence of five years in prison.

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

Mr. Clayton praised the outstanding investigative work of the FBI, HSI, and the NYPD’s Internal Affairs Bureau, Group 25.

The case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Connie L. Dang and Rebecca T. Dell are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced that RUI-SIANG LIN was sentenced to 30 years in prison for conspiring to distribute narcotics, money laundering, and conspiring to sell adulterated and misbranded medication, in connection with LIN’s ownership and operation of the Incognito Market, an online narcotics marketplace that sold more than one ton of narcotics before its closure in March 2024.  On December 16, 2024, LIN pled guilty before U.S. District Judge Colleen McMahon, who imposed today’s sentence.

“Rui-Siang Lin was one of the world’s most prolific drug traffickers, using the internet to sell more than $105 million of illegal drugs throughout this country and across the globe,” said U.S. Attorney Jay Clayton.  “While Lin made millions, his offenses had devastating consequences.  He is responsible for at least one tragic death, and he exacerbated the opioid crisis and caused misery for more than 470,000 narcotics users and their families.  Today’s sentence puts traffickers on notice: you cannot hide in the shadows of the Internet.  And our larger message is simple: the internet, ‘decentralization,’ ‘blockchain’—any technology—is not a license to operate a narcotics distribution business.”   

According to court documents and the evidence presented in connection with today’s sentencing:

Incognito Market was an online narcotics bazaar that existed on the dark web.  Incognito Market formed in October 2020.  Since that time, and through its closing in March 2024, Incognito Market sold more than $105 million of narcotics—including more than 1,000 kilograms of cocaine, over 1,000 kilograms of methamphetamines, hundreds of kilograms of other narcotics, and more than 4 kilograms of purported “oxycodone,” some of which were laced with fentanyl.  Incognito Market was available globally to anyone with internet access and could be accessed using the Tor web browser on the “dark web” or “darknet.”  LIN operated the Incognito market under the online pseudonym “Pharaoh.”  As “Pharaoh”—the leader of Incognito market—LIN supervised all of its operations, including its employees, vendors, and customers, and had ultimate decision-making authority over every aspect of the multimillion-dollar operation.

Incognito Market was designed to foster seamless narcotics transactions across the internet and the world, and incorporated many features of legitimate e-commerce sites such as branding, advertising, and customer service.  Upon visiting the site, users were met by a splash page and graphic interface, which is pictured below:

After logging in with a unique username and password, users were able to search thousands of listings for narcotics of their choice.  Incognito Market sold illegal narcotics and misbranded prescription medication, including heroin, cocaine, LSD, MDMA, oxycodone, methamphetamines, ketamine, and alprazolam. An example of listings on Incognito Market is below:

Each listing on Incognito Market was sold by a particular vendor.  To become an Incognito Market vendor, each vendor was required to register with the site and pay an admission fee.  In exchange for listing and selling narcotics as a vendor on Incognito Market, each vendor paid 5% of the purchase price of every narcotic sold to Incognito Market. That revenue funded Incognito Market’s operations, including paying “employee” salaries and for computer servers.  LIN collected more than $6 million in profits from Incognito.  To facilitate these financial transactions, Incognito Market had its own “bank” (the “Incognito Bank”), which allowed its users to deposit cryptocurrency on the site into their own “bank accounts.”  After a narcotics transaction was completed, cryptocurrency from the buyer’s “bank account” was transferred to the seller’s “bank account,” less the 5% fee that Incognito collected.  The bank enabled buyers and sellers to stay anonymous from each other.  The bank’s graphic interface is pictured below:

LIN was a founding member of the Incognito Market in October 2020, and led the site as of approximately January 2022, until LIN closed it in March 2024.  LIN ran the site while based in, among other places, St. Lucia.  Remarkably, while LIN was managing Incognito, he led a four-day training for St. Lucian police officers about “Cybercrime and Cryptocurrency,” which he bragged about on his personal Facebook page.

Due to LIN’s leadership and sophisticated computer coding abilities, the Incognito Market grew its customer base to more than 400,000 buyer accounts.  Those hundreds of thousands of buyers were serviced by more than 1,800 narcotics “vendors,” many of which were serious drug traffickers in their own right.  In total, Lin’s Incognito Market facilitated more than 640,000 individual narcotics transactions.

On January 22, 2022, Lin announced a new Incognito policy that explicitly permitted its vendors to sell opiates on the site.  As a result, Incognito listings included offerings of prescription medication that was advertised as being authentic but was not. For example, in November 2023, an undercover law enforcement agent received several tablets that purported to be “oxycodone,” which were purchased on Incognito Market.  Testing on those tablets revealed that they were not authentic oxycodone at all and were, in fact, fentanyl pills.  Tragically, on September 13, 2022, a 27-year-old from Arkansas died from consuming purported “oxycodone” that he purchased on the Incognito Market. That “oxycodone” was laced with fentanyl.

In March 2024, Lin closed Incognito by stealing at least $1 million that its users had on deposit in the Incognito Bank.  In addition, Lin attempted to extort his coconspirators.  LIN demanded that the Incognito buyers and vendors pay him, or he would publish their user history and cryptocurrency addresses online.  In a posting on the Incognito site, LIN wrote “YES, THIS IS AN EXTORTION!!!,” as depicted below.

In imposing the sentence, Judge McMahon stated to the defendant that Incognito Market was “a business that made [him] a drug kingpin," and that this was the “most serious drug crime I have ever been confronted with in 27.5 years.”

*                *                *

In addition to the prison term, LIN, 24, of Taiwan, was sentenced to five years of supervised release and $105,045,109.67 in forfeiture.

Mr. Clayton praised the investigative work of the Federal Bureau of Investigation, New York City Police Department, Homeland Security Investigations, Drug Enforcement Administration, Food and Drug Administration Office of Criminal Investigations, and U.S. Customs and Border Protection.  

This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion.  The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad.

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

United States Attorney for the Southern District of New York, Jay Clayton, Special Agent in Charge of the New York Task Force Division of the Drug Enforcement Administration (“DEA”), Christopher Roberts, and the Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of an Indictment charging AHUVA KATZIN and YITZCHOK SKLAR, a/k/a “Isak Sklar,” with conspiracy to distribute narcotics resulting in death in connection with the poisoning of SKLAR’s four-year-old child in Brooklyn on March 4, 2025.  KATZIN and SKLAR were arrested today, and SKLAR will be presented today before U.S. Magistrate Judge Gabriel W. Gorenstein.  KATZIN will be presented tomorrow before U.S. Magistrate Judge Robyn F. Tarnofsky.  The case has been assigned to U.S. District Judge Jennifer L. Rochon.

“As alleged, Ahuva Katzin and Yitzchok Sklar sold drugs that caused the tragic death of Sklar’s own child,” said U.S. Attorney Jay Clayton.  “Instead of stopping, they allegedly continued to distribute fentanyl and other dangerous drugs across New York.  There are no good outcomes for deadly fentanyl in and around our city, and New Yorkers want it gone.  This Office will hold accountable those who distribute poison in our communities and will seek justice for the victims of these devastating crimes.”

“Once again, we are forced to confront the reckless disregard for human life shown by those who allegedly traffic fentanyl and other illicit narcotics” said DEA New York Task Force Division Special Agent in Charge Christopher Roberts.  “This case reminds us of the danger that fentanyl presents, especially when our most vulnerable, our children, are exposed to it.  A four-year-old’s home is the last place fentanyl should ever be.  This is a senseless tragedy, as is any loss of life from illicit narcotics, and we will continue to work alongside our law enforcement partners to ensure justice is delivered.”

“Ahuva Katzin and Yitzchok Sklar have been indicted for their roles in a drug distribution conspiracy that led to the heartbreaking death of a four-year-old,” said NYPD Commissioner Jessica S. Tisch.  “This case shows the NYPD’s continued commitment to getting deadly drugs out of our communities and going after the individuals who put our families—and their own—in harm’s way.  I would like to thank our NYPD investigators and our partners at the Drug Enforcement Agency and at the U.S. Attorney’s Office for their work on this case and ensuring accountability for this devastating loss.”

As alleged in the Indictment, other public filings, and statements made in public court proceedings:[1]

From at least in or about 2023 through at least in or about 2025, KATZIN and SKLAR conspired to distribute fentanyl, para-fluorofentanyl, heroin, and methamphetamine in New York City.  On March 4, 2025, exposure to the fentanyl and para-fluorofentanyl distributed by KATZIN and SKLAR caused the death of SKLAR’s four-year-old boy who had been residing with his mother and SKLAR in an apartment in Brooklyn.

On the morning of March 4, 2025, after calling an ambulance service to report that the boy was experiencing a medical emergency, SKLAR attempted to hide his narcotics.  Video surveillance footage captured SKLAR leaving his dying child in the apartment while running out with a black bag and returning moments later without the bag.  The bag was later recovered from a nearby car rented by SKLAR and found to contain, among other things, fentanyl, para-fluorofentanyl, and heroin.  A screenshot of SKLAR running out with the bag of drugs and a photo of the drugs later recovered by law enforcement officers are included below:

Following the boy’s death, KATZIN and SKLAR continued to work together to sell drugs throughout New York.

*               *                *

KATZIN, 33, and SKLAR, 34, both of Brooklyn, New York, are each charged with conspiracy to distribute narcotics resulting in death, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison.

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

Mr. Clayton praised the outstanding work of the DEA and the NYPD in connection with this investigation.  Mr. Clayton also thanked the Kings County District Attorney’s Office.

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Meredith Foster and Henry Ross are in charge of the prosecution.

The charge contained in the Indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty.

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that VADIM KOMISSAROV, the former Chief Executive Officer of Trident Acquisitions Corp. (“TDAC”), a publicly traded special purpose acquisition company (“SPAC”), pled guilty today before U.S. District Judge Alvin K. Hellerstein to securities fraud for his role in a scheme to defraud TDAC investors and investors in TDAC’s successor company, Lottery.com Inc., by publicly reporting false and misleading revenue and business information.  KOMISSAROV is scheduled to be sentenced on June 24, 2026.

“Vadim Komissarov, the former CEO of Trident Acquisitions Corp., defrauded his shareholders,” said U.S. Attorney Jay Clayton.  “He manufactured fraudulent revenue and then obstructed the SEC’s investigation, including by lying under oath.  Whether it be SPACs or any other capital raising vehicles, when executives fabricate revenue and mislead our markets, this Office and our partners will pursue them vigorously.”

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

From November 2020 through May 2022, KOMISSAROV engaged in a scheme to defraud TDAC investors and investors in TDAC’s successor company, Lottery.com Inc., by publicly reporting false and misleading revenue and business information about a prospective acquisition target and by profiting from the effect of the deception by selling shares of Lottery.com before other market participants realized the true state of the company (the “Revenue Scheme”).

The Revenue Scheme arose from an effort by KOMISSAROV to identify a suitable target for TDAC before TDAC reached a deadline to either use or return investor funds that had been raised to support an acquisition.  In November 2020, KOMISSAROV settled on AutoLotto, Inc., d/b/a Lottery.com as a target for TDAC.  To deceive TDAC shareholders about the nature of AutoLotto’s business, and to thereby secure their approval for TDAC’s acquisition of AutoLotto (the “Business Combination”), KOMISSAROV worked with others to improperly and misleadingly inflate AutoLotto’s revenue and to report those inflated figures to TDAC’s shareholders through public filings with the Securities and Exchange Commission (“SEC”), which KOMISSAROV signed or caused to be filed as the principal executive, financial, and accounting officer of TDAC.

The Revenue Scheme created the false appearance of revenue-generating business activity for AutoLotto and later for Lottery.com through a series of sham transactions, including a fraudulent $9 million roundtrip transaction that KOMISSAROV engineered using the alias “Vlad.”

In April 2022 and May 2022, KOMISSAROV sold almost 300,000 Lottery.com shares for more than $600,000, months before Lottery.com disclosed to investors that it had identified errors in the company’s reported revenue and available cash.

By June 2023 and August 2023, the enforcement staff of the SEC had begun to investigate TDAC and Lottery.com.  After receiving a subpoena from the SEC for documents and testimony in connection with the SEC’s investigation, KOMISSAROV schemed to obstruct the SEC’s investigation.  For example, during a call with two Lottery.com executives, KOMISSAROV said he wanted to “sync” his “clock[]” with them and align on a false and misleading narrative that concealed his involvement in some of the sham transactions that were part of the Revenue Scheme.  KOMISSAROV warned the Lottery.com executives, “guys, you do understand, you say that I was involved with this transaction . . . .  if Trident and me specifically knew about it, then I am in deep, deep, deep, deep water . . . . So, if you come out and say that I was involved, then I am in deep shit.”

KOMISSAROV also personally tried to obstruct the SEC’s investigation.  On November 20, 2024, KOMISSAROV provided sworn testimony to the SEC in connection with the SEC investigation into TDAC and Lottery.com.  During his testimony, KOMISSAROV gave false and misleading answers about his prior communications with the Lottery.com executives and his involvement in the $9 million fraudulent roundtrip transaction that was part of the Revenue Scheme.

*               *                *

KOMISSAROV, 54, of New York, New York, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.   

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

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation.  Mr. Clayton also thanked the SEC, which has filed a separate civil action against KOMISSAROV, for its assistance and cooperation in the investigation.

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

United States Attorney for the Southern District of New York, Jay Clayton, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Michael Alfonso, and the Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of a Complaint charging MICHAEL ZAYAS in connection with the January 14, 2026, daytime shooting during which ZAYAS fired a gun 10 times in the vicinity of Kelly Playground in the Chelsea neighborhood of Manhattan.  ZAYAS was arrested and presented today before U.S. Magistrate Judge Gabriel W. Gorenstein.

“As alleged, Michael Zayas brazenly and unlawfully carried a firearm into a residential neighborhood—across the street from a playground where children were playing, and just down the street from a middle school—and fired it in the air 10 times,” said U.S. Attorney Jay Clayton.  “Zayas’s alleged conduct sowed fear and panic among New York residents and visitors, including hundreds of children at the middle school, which was put into lockdown when the gunfire erupted.  Our career prosecutors and dedicated partners will continue to act tobring to justice those who commit gun crimes and ensure that our playgrounds, schools, and streets are safe from threat.  That’s what New Yorkers want, and we hear them.”

“This brazen, broad-daylight shooting—mere steps from a school and a playground and allegedly at the hands of a convicted felon—endangered innocent lives and disrupted the safety of our community,” said HSI Acting Special Agent in Charge Michael Alfonso.  “Zayas’ swift identification and arrest is a testament to the outstanding collaboration between HSI New York, the NYPD, and our federal law enforcement partners.  HSI New York remains steadfast in our commitment to pursuing violent offenders and protecting the public from senseless acts.”

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

On or about January 14, 2026, at approximately 2:42 p.m., a masked shooter fired approximately 10 rounds near the Kelly Playground at the corner of 17th Street and 8th Avenue in Manhattan before fleeing the scene, causing at least one nearby school to be placed on lockdown.  Law enforcement officers recovered 10 9-millimeter cartridges from the scene and later identified the shooter as ZAYAS, who had previously been convicted of a felony offense.

The images below show ZAYAS, minutes prior to the shooting (approximately 2:37 p.m.), entering the elevator on a particular floor on an apartment building located approximately two blocks away from the scene of the shooting, then masked and fleeing westbound on 17th Street toward 9th Avenue after the shooting.

*                *               *

ZAYAS, 49, of Brooklyn, New York, is charged with one count of possession of ammunition after felony conviction, which carries a maximum sentence of 15 years in prison.

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

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

This case is being handled by the Office’s Violent Organizations & Crime Unit.  Assistant U.S. Attorneys Jared Hoffman and Benjamin Levander 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 constitute only allegations, and every fact described should be treated as an allegation.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that MARIO GOGLIORMELLA, STEVEN LACAJ, and KARIM IBRAHIM, a/k/a “Chris Hayes,” pled guilty to conspiracy and fraud charges in connection with their management of L & G Capital Corp., Legend Venture Partners LLC, and a related series of funds.  GOGLIORMELLA and LACAJ pled guilty before U.S. District Judge Vernon S. Broderick and IBRAHIM pled guilty before U.S. Magistrate Judge Henry J. Ricardo.  The defendants will be sentenced before Judge Broderick at a later date.

“Our pre-IPO markets are important to investors, entrepreneurs, and our economy,” said U.S. Attorney Jay Clayton.  “Their integrity is critical to our continued leadership in technology, healthcare, energy, and other key industries.  The defendants used high-pressure sales tactics, false and misleading disclosures, and hidden exorbitant fees to defraud retail investors seeking to invest in private companies that had not yet had initial public offerings.  The women and men of our Office and our law enforcement partners continue to focus on our pre-IPO markets and our listed small-cap markets.  Our message is clear: marketing and trading in securities of new and smaller companies does not give you a pass to commit fraud.”

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

GOGLIORMELLA, LACAJ, and IBRAHIM engaged in a scheme to defraud investors in a group of related private funds known generally as the “StraightPath Funds” and the “Legend Funds.”  The defendants, and others working at their direction, used “boiler room”-style call centers to market the funds to non-professional investors by promising an opportunity to invest in privately held companies expected to go public in the near future (“pre-IPO companies”).  The defendants purported to offer investors the chance to acquire shares in pre-IPO companies at favorable prices in advance of an anticipated public offering, at which time, they claimed, the shares would be worth significantly more.  The defendants also claimed there were no upfront fees or commissions, and that they would not get paid until their investors got paid.

These representations that the defendants made to investors were lies.  In fact, the defendants sold shares to investors at arbitrarily inflated and excessive prices without disclosing to investors the nature or extent of the markup.  The defendants’ fraudulent misrepresentations about the operation of their funds allowed them to raise approximately $185 million from hundreds of investors.  Based in large part on the excessive and undisclosed share price markups they charged to investors, the defendants were able to divert nearly $28 million in investor funds to themselves.  They also used investor funds to pay their sales representatives at least $17.5 million in fees and commissions, despite making explicit representations to investors that fees were not being charged.  In addition to misrepresentations about fees and markups, the defendants also misled investors regarding the nature of their investments and hid the involvement of GOGLIORMELLA and IBRAHIM, who had previously been disciplined by the Financial Industry Regulatory Authority, in the management of the Funds.

In order to generate interest in the Funds among retail investors, GOGLIORMELLA, LACAJ, and IBRAHIM used finders, or “referral agents,” to pitch prospective investors and thereafter to serve as the investors’ primary point of contact.  The defendants used “boiler room”-style call centers wherein salespeople cold-called potential investors, many of whom were not experienced investors, and gave aggressive sales pitches using notes and pitch scripts.  The defendants referred to their pitch scripts as “The Bible.”  Contrary to the defendants’ claim that they and their agents did not make money unless and until investors received a profit on their investments, the defendants paid referral agents a commission, typically a 10 to 15 percent front-end fee based on the amount of the investment that agents were able to draw to the Funds, plus a portion of the carried interest when the Funds exited their position in a particular company.

At first, the defendants operated this scheme as a marketing arm for StraightPath Venture Partners, Inc. (“StraightPath”).  In approximately 2021, multiple individuals associated with StraightPath received subpoenas from the SEC, and in approximately February 2022, StraightPath ceased operations.  In approximately February 2022, when StraightPath ceased operations, GOGLIORMELLA, LACAJ, and IBRAHIM began conducting the scheme under the corporate entity Legend Venture Partners, LLC (“Legend”), where they continued to run the same scheme that StraightPath had started.  The three principals of StraightPath —Michael Castillero, Francine Lanaia, and Brian Martinsen—were also prosecuted by this Office and convicted at a trial before U.S. District Judge Jesse M. Furman in November 2025.

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GOGLIORMELLA, 48, of Manhasset, New York, STEVEN LACAJ, 28, of New York, New York, and KARIM IBRAHIM, 36, of Queens, New York, each pled guilty to one count of conspiracy to commit securities fraud, wire fraud, and investment adviser fraud, which carries a maximum sentence of five years in prison, and one count of investment adviser fraud, which carries a maximum sentence of five years in prison.

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

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

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

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Inspector in Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), Ketty Larco-Ward, announced today the filing of a Superseding Indictment charging GÖKÇE GÜVEN with securities fraud, wire fraud, visa fraud, and aggravated identity theft.  The charges arise from an alleged scheme by the defendant to defraud investors in her technology startup Kalder Inc. (“Kalder”) through material misrepresentations regarding Kalder’s financials, brand partners, and paying customers.  GÜVEN, a citizen of Turkey, also used lies about Kalder, as well as forged documents, to obtain an O-1A visa, reserved for individuals of “extraordinary ability,” that would allow her to live and work in the U.S.  GÜVEN was previously arrested on November 27, 2025.  The case is assigned to U.S. District Judge Lewis A. Kaplan.  

“As alleged, Gökçe Güven built her seed round on fake revenue, inflated brand partnerships, and fabricated documents, and then used the same lies to secure a visa reserved for extraordinary ability,” said U.S. Attorney Jay Clayton.  “Beware of fraud masquerading as entrepreneurship.  This Office, alongside our law enforcement partners, will continue to vigorously pursue market participants who use fraud and deception to victimize investors.”              

“Gökçe Güven allegedly exaggerated her company’s fiscal condition and partnerships to swindle more than seven million dollars from prospective investors before using these misrepresentations to unlawfully obtain a highly acclaimed visa to the United States,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Güven allegedly curated a façade of her business ingenuity to unlawfully reap financial and personal benefits.  The FBI will continue to expose any manipulative tactics employed to advertise misleading investment opportunities at the cost of their related stakeholders.”

“This indictment displays the lengths that individuals will go through to defraud investors and the American public, and how they are ultimately caught to pay for their crimes,” said USPIS Inspector in Charge Ketty Larco-Ward.  “Investors placed their trust in this emerging fintech founder and CEO, only to be misled and scammed, as alleged.  We commend the work and partnership of the FBI and the Securities and Commodities Fraud Task Force to put end to self-serving executives and their fraudulent schemes.”

As alleged in the Superseding Indictment and other public filings in this case:[1]

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

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

*               *                *

GÜVEN, 26, of New York, New York, and Turkey, is charged with securities fraud and wire fraud, each of which carries a maximum sentence of 20 years in prison; visa fraud, which carries a maximum sentence of 10 years in prison; and aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.  

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

Mr. Clayton praised the outstanding work of the FBI and USPIS.  Mr. Clayton also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that a jury found ANTHONY CURCIO guilty yesterday of conspiracy to commit wire fraud and wire fraud for engaging in a scheme to defraud customers by selling them sports and Pokémon trading cards with fake grades purportedly issued by Professional Sports Authenticator (“PSA”).  CURCIO was found guilty following a two-and-a-half-week trial before U.S. District Judge Ronnie Abrams.   

“Millions of Americans participate in our collectibles markets, and they should be free from fraud and manipulations,” said U.S. Attorney Jay Clayton. “Anthony Curcio now faces years in prison, and his conviction is a cautionary tale for those who would abuse the collectibles markets.  Our Office is dedicated to ensuring that markets of all kinds, including collectibles markets, are safe from fraudsters.  Anthony Curcio tried to cover his tracks and hide what he had done, but thanks to our law enforcement partners and the many victims who came forward, he has now been convicted of serious federal crimes.”

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

From at least 2022 to May 2024, CURCIO and IOSIF BONDARCHUK sold and attempted to sell sports and Pokémon trading cards to many victims across the country with authenticity and condition grades purportedly issued by PSA, but which had been forged by CURCIO.  CURCIO directed the scheme and used BONDARCHUK as a front man to interact with victims and list cards for sale on online marketplaces and auction sites.  CURCIO and BONDARCHUK sold and attempted to sell trading cards with counterfeit grades for thousands of dollars, and sometimes up to hundreds of thousands of dollars, each, when the cards were actually worth only a small fraction of those sums. In total, CURCIO and BONDARCHUK attempted to deprive victims of over $2 million through their sales and attempted sales by misrepresenting the grade of numerous trading cards.

Sports and Pokémon trading cards can have considerable resale value depending on, among other things, their condition and authenticity.  PSA is a leader in the card collectibles authentication industry.  For a fee, PSA verifies a card’s authenticity and assesses its condition, assigning a numerical grade from one to 10, with one being the lowest grade and 10 being the highest.  After grading a card, PSA seals the card in a distinctive, tamper-resistant plastic case that encloses the card to preserve its condition and indicates its grade on a label inside the case.  PSA also assigns a unique certification number—or serial number—to each card it grades, which collectors can then look up in PSA’s public database to find out information about the card and confirm that PSA had in fact graded that card.  A PSA grade can have a significant impact on a card’s market value, at times increasing the value of the card merely as a result of having been authenticated and graded.  And cards with higher grades can sell for considerably more than cards with lower grades, sometimes by multiples.

CURCIO’s scheme focused on selling vintage rookie sports cards—particularly Michael Jordan rookie cards—and Pokémon cards that would sell for thousands or even hundreds of thousands of dollars if they had received a PSA 9 or 10 grade. CURCIO sold ungraded or lower-graded cards for more than they were worth by cleaning the rating and serial numbers off of real PSA labels and then printing fake 9 or 10 grades and new serial numbers on the PSA labels. 

CURCIO and BONDARCHUK sold the trading cards with fake PSA grades on different online marketplaces and auction sites, such as eBay, as well as in person at card shops, card shows, and in-person trades with victims.  In addition to using BONDARCHUK as a front, CURCIO used other fake identities to hide his role from victims, PSA, and law enforcement.  At times, CURCIO was confronted by buyers when they realized the rare, highly graded cards they had paid thousands of dollars for were fraudulent; CURCIO refunded the buyers, took back the cards, and then sold them again to new victims.  CURCIO even tried to pass off one Michael Jordan rookie card three times, each time with a different forged grade. 

*                *                *

CURCIO, 45, of Redmond, Washington, was convicted at trial of conspiracy to commit wire fraud and wire fraud.  BONDARCHUK, 38, of Lake Stevens, Washington, pled guilty to one count of conspiracy to commit wire fraud and one count of wire fraud.  Each count carries a maximum sentence of 20 years in prison.

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

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

This case is being handled by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorneys David R. Felton, Kingdar Prussien, and Cecilia Vogel are in charge of the prosecution. 

United States Attorney for the Southern District of New York, Jay Clayton, announced that ANDREW NGUYEN, a former officer in the New York City Police Department (“NYPD”), pled guilty today before U.S. District Judge Analisa Torres to conspiring to solicit and receive bribes, conspiring to distribute narcotics, and possessing a firearm in connection with the conspiracy to distribute narcotics.  NGUYEN is scheduled to be sentenced on June 22, 2026. 

“Andrew Nguyen betrayed the community he swore to protect,” said U.S. Attorney Jay Clayton.  “In exchange for bribes, Nguyen used his power as a police officer to distribute deadly drugs in New York City.  New Yorkers have the most effective and most respected police department in the world because the NYPD and the people of New York will not tolerate bad cops.  Today’s guilty plea reinforces that message.”

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

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

*                *               *

NGUYEN, 41, of Harriman, New York, pled guilty to one count of conspiracy to solicit and receive a bribe, which carries a maximum sentence of five years in prison; one count of conspiracy to distribute and possess with intent to distribute mixtures and substances containing a detectable amount of cocaine, which carries a maximum sentence of 20 years in prison; and one count of possession of a firearm in furtherance of a drug trafficking offense, which carries a mandatory minimum sentence of five years in prison, which must be served consecutively to any other term of prison, and a maximum sentence of life in prison.

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

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

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

United States Attorney for the Southern District of New York, Jay Clayton, United States Attorney for the Northern District of Ohio, David M. Toepfer, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., Executive Special Agent in Charge of the Internal Revenue Service - Criminal Investigation (“IRS-CI”) Washington, D.C. Field Office, Kareem Carter, and Special Agent in Charge of the Detroit Field Office of Homeland Security Investigations (“HSI”), Jared Murphey, announced today the unsealing of an indictment charging PATRICK JAMES, the founder and former CEO of First Brands Group, LLC (“First Brands”), and his brother EDWARD JAMES, a former senior executive at First Brands, with conspiracy to commit wire fraud and bank fraud, conspiracy to commit money laundering, and multiple counts of wire fraud and bank fraud, in connection with various schemes to defraud lenders regarding the liabilities and financial condition of First Brands.  PATRICK JAMES was charged in an additional count of managing a continuing financial crimes enterprise in connection with the charged schemes.

As alleged in the indictment, PATRICK JAMES and EDWARD JAMES perpetrated a yearslong fraud at First Brands, eventually bankrupting the global automotive company in September 2025.  At the time of its bankruptcy, First Brands—a company that reported approximately $5 billion in net annual sales worldwide—declared just $12 million in cash in its corporate bank accounts and over $9 billion in liabilities.  As a consequence of the defendants’ fraudulent schemes, FIRST BRANDS’ lenders and creditors now face billions in losses.

PATRICK JAMES and EDWARD JAMES were arrested in Ohio this morning and are expected to be presented later today in the Northern District of Ohio.  The case has been assigned to U.S. District Judge Analisa Torres.

Also unsealed today is the guilty plea of PETER ANDREW BRUMBERGS in connection with his role in the scheme.  BRUMBERGS pled guilty pursuant to an Information before U.S. District Judge Analisa Torres on January 26, 2026.  BRUMBERGS is cooperating with the Government.

“As alleged in the indictment, Patrick James, together with his brother, Edward James, perpetrated a staggering fraud at First Brands Group,” said U.S. Attorney Jay Clayton.  “The James brothers obtained billions for First Brands—and millions for themselves—by presenting their lenders with the impression of a successful, growing international business.  The indictment and the guilty plea unsealed today describe a very different reality: a business run through fraud, fake documents, and false financials.  Together with our law enforcement partners, we will continue working tirelessly to uncover every aspect of this fraud and vindicate the rights of every victim.”

“Individuals who lie about the financial health of their company for the purposes of greed create shockwaves across the business sector that endanger the economic wellbeing of others,” said U.S. Attorney David M. Toepfer.  “The fallout from selfish and deceptive actions—such as those alleged in this case—can cascade down to honest and hardworking company employees based right here in Ohio.  Their jobs and livelihoods are at stake due to the corrupt actions of a few individuals.  Together with our federal partners, we will seek justice on behalf of all victims affected by this travesty.”

“These executives allegedly inflated invoices, double- and triple- pledged collateral, and falsified financial statements to unlawfully trick lenders into giving them billions of dollars,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Not only did their alleged deceit exploit the integrity of our financing system, they also betrayed the trust of the companies funding First Brands by mispresenting their business’s financial position.  The FBI will never cease its pursuit of fraudsters seeking to manipulate financial institutions for greedy gains.”

“HSI remains ever vigilant to detect money laundering and financial fraud schemes that undercut fair and honest business practices, especially one like this, which allegedly contributed to billions in losses,” said HSI Detroit Acting Special Agent in Charge Jared Murphey.  “HSI special agents, alongside our FBI and IRS partners, remain committed to enforcing the rule of law and ensuring justice for victims.  As law enforcement, we have a solemn responsibility to protect the integrity of our financial system and to hold violators accountable.”

“The defendants operated First Brands as a ‘Ponzi’ scheme in which new loan proceeds were used to pay back old lenders and to fund their extravagant lifestyle,” said Executive Special Agent in Charge of the IRS-CI Washington, D.C. Field Office Kareem Carter.  “Today’s announced indictment of defendants Patrick James and Edward James demonstrates IRS-CI special agents’ and our law enforcement partners’ commitment to investigate, prosecute, and hold accountable criminals who allegedly defraud banks and lenders out of billions of dollars.  IRS Criminal Investigation special agents are specially equipped to follow the complex financial trail left by criminals, and I would like to thank our Global Illicit Financial Team for their vigilant, professional, and dedicated pursuit of those who attempt to enrich themselves through fraudulent means.”

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

From at least in or about 2018 through in or about 2025, PATRICK JAMES and EDWARD JAMES, the defendants, built and bankrupted First Brands Group, LLC (“First Brands”).  First Brands operated as an automotive aftermarket parts supplier that developed, marketed, and sold replacement parts such as brakes, filters, wipers, and lights under various brand names.  PATRICK JAMES, the defendant, founded First Brands and served as its Chief Executive Officer.  EDWARD JAMES, the defendant, was First Brands’ former Senior Vice President and is PATRICK JAMES’s brother.  As alleged, the defendants perpetrated multiple fraud schemes to fake and falsely inflate invoices for accounts receivable and payable; double- and triple-pledge loan collateral; falsify corporate financial statements; and conceal substantial liabilities from lenders.  These schemes yielded billions of dollars in financing to First Brands and enabled PATRICK JAMES and EDWARD JAMES to reap millions of dollars in fraud proceeds.

To sustain First Brands’ growth-through-acquisition strategy, PATRICK JAMES and EDWARD JAMES misled various counterparties to fraudulently inject cash into First Brands.  First, PATRICK JAMES and EDWARD JAMES deceived First Brands’ factoring partners, that is, financing counterparties that purchased First Brands’ accounts receivable (invoices) and the right to payment thereunder, in exchange for advancing a portion of the value of those invoices upfront.  At the direction and with the approval of PATRICK JAMES and EDWARD JAMES, the defendants, First Brands obtained billions in invoice-based financing from factors through a series of fraudulent schemes.  As part of those schemes, and under the defendants’ direction and supervision, First Brands employees routinely submitted fake invoices, fraudulently inflated invoices, and double-pledged invoices for the purpose of selling and pledging them to factoring counterparties as if they represented valid, collectible receivables from customers.  In some instances, invoices were generated for transactions that had never occurred, while in others the dollar amounts on invoices were altered to make them appear more valuable. Through the defendants’ fraud schemes, First Brands sold its factoring partners billions of dollars of purported customer receivables that did not exist.

Second, First Brands defrauded factoring partners to whom it sold accounts payable (amounts owed to First Brands’ suppliers).  At the direction and with the approval of PATRICK JAMES and EDWARD JAMES, the defendants, First Brands submitted false and misleading invoice information and false and misleading information about First Brands’ financial position to induce financers to increase the funds advanced, a portion of which First Brands diverted to itself to cover cash needs.  At First Brands, these self-payments were referred to as “round trips” or, euphemistically, as “corporate initiatives.” PATRICK JAMES and EDWARD JAMES, the defendants, closely monitored and managed these “round trip” transactions as part of First Brands’ daily cash-management process.                                                                                     

Third, PATRICK JAMES and EDWARD JAMES defrauded First Brands’ lenders by disseminating materially false and misleading financial information about the company and secretly encumbering assets subject to the lenders’ borrowing base and priority liens.  At the direction and with the approval of PATRICK JAMES, First Brands employees made unsupportable financial statement adjustments to meet financial benchmarks set by PATRICK JAMES.  To implement these directives, First Brands employees maintained internal “bridge” files that juxtaposed accurate corporate financials with the manipulated versions.

Unbeknownst to First Brands’ lenders, PATRICK JAMES and EDWARD JAMES also incurred massive off-balance-sheet debt through inventory-financing arrangements involving entities wholly owned and controlled by PATRICK JAMES (the “James Entities”).  The James Entities were nominally separate from First Brands.  In fact, they had no independent business operations.  Through the James Entities, PATRICK JAMES entered financing arrangements with at least three inventory financers (the “Off-Sheet Lenders”), whereby the lenders advanced funds to the James Entities to purchase inventory from First Brands.  The James Entities, in turn, pledged that inventory purchased from First Brands back to the Off-Sheet Lenders as collateral for their loans.  At the direction of PATRICK JAMES, the defendant, the inventory financing arrangements with the James Entities were maintained outside the First Brands corporate balance sheet and thereby concealed from First Brands’ senior lenders, who routinely requested and received First Brands’ financial statements.  To further obscure the Off-Sheet Lenders as a source of funds to First Brands, PATRICK JAMES routed the loan proceeds from the Off-Sheet Lenders through a customer collections entity maintained outside the First Brands corporate structure, then disbursed the proceeds to First Brands subsidiaries before sweeping the funds into First Brands’ operating account.  The defendants designed this flow of funds so that the funds appeared to be ordinary customer receipts from retail subsidiaries rather than loan proceeds from related-party financing arrangements with the James Entities.

Finally, at the direction of PATRICK JAMES and EDWARD JAMES, First Brands made false and misleading representations to the Off-Sheet Lenders to fraudulently induce them to extend and expand financing.  The James Entities pledged inventory that PATRICK JAMES and EDWARD JAMES, the defendants, purported to be unencumbered but in fact was already subject to liens by, or otherwise pledged to, First Brands’ senior lenders and remained on First Brands’ balance sheet.

By 2025, after years of acquisitions and expansion using fraudulently obtained financing, First Brands faced overwhelming liabilities and unsustainable cash requirements.  In 2025, PATRICK JAMES and EDWARD JAMES, the defendants, led efforts to refinance First Brands’ debt or to sell the company, including through last-ditch attempts to deceive lenders and potential acquirers by disseminating false financials.  These efforts failed when First Brands was unable to provide the prospective counterparties with the financial diligence they sought. On September 28, 2025, First Brands filed for bankruptcy.

Even as the frauds unraveled and First Brands’ financial issues mounted, PATRICK JAMES, the defendant, continued to enrich himself as the owner of First Brands.  Through the series of frauds he directed, PATRICK JAMES caused billions of dollars in gross proceeds to flow into First Brands from counterparties and received at least hundreds of millions of dollars in gross proceeds into his personal accounts.

*               *                *

A chart containing the names, ages, residences, charges, and maximum penalties for the defendants is attached.

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

Mr. Clayton praised the outstanding work of the FBI, IRS-CI, and HSI.  Mr. Clayton further thanked the Northern Ohio Money Laundering Task Force.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Nicholas W. Chiuchiolo, Marguerite B. Colson, Peter J. Davis, and Sarah Mortazavi, and Special Assistant United States Attorney Michael L. Collyer are in charge of the prosecution. 

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

United States v. Patrick James and Edward James, 26 Cr. 29 (AT)

Continuing Financial Crimes Enterprise, 18 U.S.C. § 225

(Count One)

Conspiracy to Commit Wire Fraud Affecting a Financial Institution and Bank Fraud, 18 U.S.C. § 1349

(Count Two)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Three)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Four)

Bank Fraud, 18 U.S.C. § 1344 (Count Five)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Six)

Bank Fraud, 18 U.S.C. § 1344 (Count Seven)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Eight)

Conspiracy to Commit Money Laundering, 18 U.S.C. § 1956 (Count Nine)

Life

30 years

30 years

30 years

30 years

30 years

30 years

30 years

20 years

Conspiracy to Commit Wire Fraud Affecting a Financial Institution and Bank Fraud, 18 U.S.C. § 1349

(Count Two)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Three)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Four)

Bank Fraud, 18 U.S.C. § 1344 (Count Five)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Six)

Bank Fraud, 18 U.S.C. § 1344 (Count Seven)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Eight)

Conspiracy to Commit Money Laundering, 18 U.S.C. § 1956 (Count Nine)

30 years

30 years

30 years

30 years

30 years

30 years

30 years

20 years

United States v. Peter Andrew Brumbergs, 26 Cr. 25 (AT)

Conspiracy to Commit Wire Fraud Affecting a Financial Institution and Bank Fraud, 18 U.S.C. § 1349

(Count One)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Two)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Three)

Bank Fraud, 18 U.S.C. § 1344 (Count Six)

(Count Four)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1349

(Count Five)

Bank Fraud, 18 U.S.C. § 1344 (Count Six)

Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Seven)

Conspiracy to Commit Money Laundering, 18 U.S.C. § 1956 (Count Eight)

30 years

30 years

30 years

30 years

30 years

30 years

30 years

20 years

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

On January 27, 2026, over 100 federal, state, and local law enforcement officials gathered at the Orange County Government Center to discuss their efforts to combat crime on behalf of the people of New York.  Participants included, among many others, the U.S. Attorneys for the Southern and Northern Districts of New York, leaders of the Federal Bureau of Investigation (“FBI”), Homeland Security Investigations (“HSI”), the Drug Enforcement Administration (“DEA”), the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), District Attorneys and Sheriffs from Albany County, Rockland County, Orange County, Westchester County, Dutchess County, Greene County, and Rensselaer County, and senior leaders of the New York State Police. 

The presentations and discussions focused on combining resources across offices and departments to combat the greatest threats to the quality of life and safety of the good people of the Hudson Valley.  Areas identified as requiring a collective effort included:

• Removing gun-toting career criminals from our streets;
• Dismantling sophisticated narcotics production and distribution enterprises, including the violent transnational gangs that have invaded communities across the Hudson Valley;
• Protecting our children from sexual predators.  

Several case studies involving multi-agency efforts that led to highly successful prosecutions were discussed with an eye toward greater cooperation in the future.  The participants also discussed community engagement and community priorities, including “hot spots” where the need for a combination of federal, state, and local resources is most acute.  

“It is invaluable to hear directly from our state and local partners,” said U.S. Attorney for the Southern District of New York Jay Clayton.  “Our principal objective is to deliver a better quality of life, including safe streets, for the people of the Hudson Valley, and we can best achieve that objective if we work in concert with our state and local partners.  Together, we have brought—and will continue to bring—our most violent and most dangerous criminals to justice.”

“Public safety does not stop at district or county lines,” said Acting United States Attorney for the Northern District of New York John A. Sarcone III.  “This symposium underscores the power of strong partnerships among federal, state, and local law enforcement to confront the most serious threats facing our communities—violent crime, narcotics trafficking, and the exploitation of children.  By sharing intelligence, coordinating resources, and aligning our priorities, we are better positioned to dismantle criminal organizations, protect the most vulnerable, and deliver real results for the people we serve.”

“Drugs, guns, and violent crime are endemic public safety concerns that know no boundaries,” said Orange County District Attorney David M. Hoovler. “In order to best protect the residents of Orange County from these ever-present dangers, we must work with our law enforcement partners, near and far.  I am grateful not only for all of the law enforcement professionals who attended the symposium, but also for the commitment to work together to serve the residents of the Hudson Valley.  This historic event highlights the importance of collaboration in effective law enforcement in the 21st century.”

“This meeting was a tremendous opportunity to gather officials from federal, state, and local law enforcement agencies to share information and ideas on how we can leverage our resources to identify, investigate, and bring to justice the dangerous criminals bringing harmful narcotics and weapons into our communities,” said Special Agent in Charge of the FBI Albany Field Office Craig Tremaroli.  “I’m incredibly grateful to all the partners who made the time to attend this important discussion, and I look forward to working together to achieve our shared goal of keeping all our communities safe.”

“DEA New York remains steadfast in our commitment to working alongside our federal, state, and local law enforcement partners to target those looking to distribute illicit narcotics throughout the Hudson Valley region,” said DEA New York Enforcement Division Special Agent in Charge Farhana Islam.  “These symposiums provide us the opportunity to gather and collaborate with our partners, which helps strengthen our resolve to enhance public safety and helps protect our communities from drug poisonings which are harming our neighbors.”

“HSI New York was honored to stand shoulder-to-shoulder with our fellow law enforcement leaders at the Hudson Valley Law Enforcement Symposium, united by our shared commitment to protecting our communities,” said HSI New York Acting Special Agent in Charge Michael Alfonso.  “Bringing together the strength and expertise of federal, state, and local partners is how we turn the tide against violent crime, drug traffickers, and those who prey on our children.  When we unite our resources and resolve, we deliver real results—making the Hudson Valley a safer place for every New Yorker.”

“We appreciate our U.S. Attorneys for hosting and participating in this collaborative effort,” said Special Agent in Charge of ATF’s New York Division Bryan DiGiralamo.  “ATF’s Crime Gun Intelligence, when combined with strong partnerships across all levels of law enforcement, enhances investigations and plays a critical role in reducing violent gun crime and keeping our communities safe.”

“Special thanks to our United States Attorneys for the Southern and Northern Districts of New York, and the Orange County District Attorneys’ Office, for bringing together our federal, state and local law enforcement partners for this meeting,” said DEA Northeast Regional Associate Chief of Operations Frank Tarentino.  “The DEA is committed to working with all our law enforcement partners across the region in targeting those drug trafficking organizations and individuals who are responsible for the most harm.  This is the DEA’s focus, both here and abroad, and we will continue this fight until we have a fentanyl-free America.”  

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Attorney General for National Security, John A. Eisenberg, Assistant Director of the Counterterrorism Division of the Federal Bureau of Investigation (“FBI”), Donald Holstead, Assistant Director in Charge of the FBI New York Field Office, James C. Barnacle, Jr., and Commissioner of the New York City Police Department, Jessica S. Tisch, announced that CARLISLE RIVERA, a/k/a “Pop,” was sentenced today to 15 years in prison for his participation in a murder-for-hire plot directed by the Government of Iran targeting Masih Alinejad, a journalist, author, and human rights activist.  RIVERA previously pled guilty to one count of conspiracy to commit murder-for-hire and one count of conspiracy to commit stalking before U.S. District Judge Lewis J. Liman, who imposed today’s sentence.

“The Government of Iran, a sponsor of terrorism, assassination, and espionage around the globe, has engaged in a campaign of assassination plots in the United States and abroad targeting those who oppose the regime,” said U.S. Attorney Jay Clayton.  “The Government of Iran hired Rivera through an associate living in Iran to locate and murder Masih Alinejad in cold blood, right here in New York City.  The Government of Iran has long sought to murder Ms. Alinejad, a U.S. citizen residing in New York City, because of her efforts to stand up to the Iranian regime and expose its discriminatory treatment of women, corruption, and human rights abuses.  Today’s sentence should be a warning to anyone who would cast their lot with the brutal Iranian regime and seek to do their murderous bidding, especially on American soil:  You will be stopped, you will be arrested, and you will be brought to justice.”

“Today’s sentence underscores the consequences of conspiring with a regime that relies on violence and intimidation to survive,” said Assistant Attorney General for National Security John A. Eisenberg.  “The National Security Division will continue to work tirelessly with its partners to detect and protect against such plots and to hold accountable those who try to achieve the vile ends of the Iranian regime.”

“The Iranian government repeatedly targeted a journalist and human rights activist living in New York, but thanks to the good work of the FBI and our partners those efforts failed,” said FBI Assistant Director Donald Holstead. “Today's sentencing sends a strong message that anyone who conspires with foreign powers to harm people living in the United States will be held accountable.”

“The Iranian government enlisted a convicted killer to stalk and murder an American journalist and activist, Masih Alinejad, in an effort to forever silence her vocal criticism of its regime,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Carlisle Rivera served as a hired gun to facilitate the political assassination attempt ordered by an international adversary.  May today’s lengthy sentence reflect the FBI’s unwavering stance against any domestic or foreign actor seeking to target our nation’s residents for nefarious agendas.”

“The defendant in this case showed a pitiless, calculated disregard for human life—and today’s sentencing is the culmination of a coordinated, comprehensive effort to bring him and his co-conspirators to justice,” said NYPD Commissioner Jessica S. Tisch.  “The plot to murder Masih Alinejad, directed by the government of Iran and its terrorist proxy, is further proof that the work of our Joint Terrorism Task Force is as important and relevant as ever.  I want to thank all of our federal, state, and local law enforcement partners for their work on this critical, wide-ranging case.”

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

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

RIVERA and SHAKERI were incarcerated together in the New York State prison system after RIVERA’s 1994 conviction for murder and SHAKERI’s 1991 conviction for manslaughter.  In 2024, SHAKERI was living in Iran and was an IRGC asset. SHAKERI offered RIVERA $100,000 to locate and kill Ms. Alinejad, and RIVERA agreed.  RIVERA then recruited his friend, co-defendant JONATHAN LOADHOLT, to assist him in the murder plot.  Using money sent by SHAKERI, RIVERA and LOADHOLT purchased a firearm and “burner” cellphones.  The two men then spent several months attempting to find and kill Ms. Alinejad, including by following her to a public speaking event and repeatedly stalking the Brooklyn house where SHAKERI and the IRGC believed Ms. Alinejad lived.  

During their efforts to locate and kill Ms. Alinejad, RIVERA and his co-conspirators shared messages about their progress and photographs relating to their murder plot.  For example, in or about February 2024, RIVERA and LOADHOLT messaged about an incoming payment from SHAKERI, and then traveled to Fairfield University, where Ms. Alinejad was scheduled to appear, and took photographs on campus.  In April 2024, RIVERA and his co-defendants exchanged a series of voice notes discussing their efforts to locate and kill Ms. Alinejad. In one voice note, RIVERA told SHAKERI that Ms. Alinejad was “hard to catch, bro.  And because she hard to catch, there ain’t gonna be no simple pull up, unless there[’s] the luck of the draw.”  In a subsequent voice note, RIVERA referred to the “slammer,” meaning a firearm he had obtained to kill Ms. Alinejad.

On November 7, 2024, before he could complete his plan to kill Ms. Alinejad, RIVERA was arrested. At RIVERA’s residence, law enforcement agents recovered, among other things, a firearm with a partially obliterated serial number.

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In addition to the prison term, RIVERA, 50, was sentenced to three years of supervised release.

In January 2026, LOADHOLT pled guilty to one count of conspiracy to commit stalking and one count of conspiracy to commit money laundering.  LOADHOLT is scheduled to be sentenced by Judge Liman in April 2026.  SHAKERI remains at large.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that EDWARD GENE SMITH pled guilty today before U.S. District Judge Paul A. Engelmayer to drugging a female victim (“Victim-1”) with the intent to rape her, enticing another female victim (“Victim-2”) to travel to New York where SMITH drugged and sexually assaulted her, receipt of child pornography, and obstruction of justice. SMITH also admitted to additional conduct relating to other victims.  SMITH is scheduled to be sentenced by Judge Engelmayer on May 8, 2026.

“Edward Gene Smith is a predator,” said U.S. Attorney Jay Clayton.  “He used money, access, and his influence in our community to identify, lure, drug, and sexually assault young women.  He trafficked in images of child sexual abuse.  He thought he could evade the law by paying a victim to sign a false statement.  This case sends two messages: there is no place in New York for sexual predators, and those who seek to obstruct justice will be brought to justice.”

According to the allegations in the Superseding Indictment, admissions the defendant has made in connection with the plea, public documents, and statements made in court:

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

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

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

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

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

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

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

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SMITH, 50, of New York, New York, was arrested on September 10, 2024 and has been detained since January 8, 2025. SMITH pled guilty to one count of distribution of a controlled substance with intent to commit rape, which carries a maximum sentence of 20 years in prison; one count of enticement to travel to engage in unlawful sexual activity, which carries a maximum sentence of 20 years in prison; one count of receipt of child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison; and one count of obstruction of justice, which carries a maximum sentence of 20 years in prison.

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

Mr. Clayton praised the outstanding work of the FBI.

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

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Terence G. Reilly, announced today the unsealing of an Indictment charging ALAZIM BAKER with two counts of committing hate crimes in connection with his assaults of Jewish victims in Manhattan on October 27, 2025.  BAKER was arrested this morning and will be presented later today before U.S. Magistrate Judge Sarah Netburn.  The case is assigned to U.S. District Judge Arun Subramanian. 

“As alleged, Alazim Baker deliberately targeted Jewish victims with violence,” said U.S. Attorney Jay Clayton.  “Violence motivated by antisemitism or any other anti-faith bias has no place in this great city.  Our collective strength as a city is the result of mutual respect for each other’s beliefs and rule of law.  The women and men of our Office are dedicated to protecting life, property and faith.”

“Alazim Baker allegedly committed despicable hate crimes against multiple members of the Jewish community,” said FBI Assistant Director in Charge Terence G. Reilly.  “Hate crimes like those in this indictment tear at the fabric of our communities.  The FBI remains dedicated to holding perpetrators of these offenses accountable to deliver justice for victims and reaffirm to the American people that targeted violence will not be tolerated.”

According to the allegations in the Indictment, other public filings, and statements previously made on the record in this case:[1]

On October 27, 2025, BAKER approached a visiting Israeli rabbi (Victim-1) while Victim-1 was walking on the block of a well-known kosher restaurant in Manhattan.  BAKER repeatedly and aggressively asked Victim-1, “What is your religion?”  When they approached the restaurant, BAKER refused to let Victim-1 enter.  BAKER then grabbed Victim-1’s yarmulke and threw it on the floor.  He then stomped on the yarmulke and spit on it before punching Victim-1 in the face.  The punch caused Victim-1 to fall to the ground and into the bike lane.  While Victim-1 was lying on the ground and bleeding, Baker yelled toward Victim-1, in sum and substance: “let me spit on that Jew.” The punch left bruises on Victim-1’s face and knee and resulted in Victim-1 suffering a brain bleed. 

BAKER also made antisemitic statements to two individuals who sought to intervene to help Victim-1—both of whom were wearing yarmulkes.  BAKER yelled, in sum and substance: “your people own everything,” “I want my reparation,” and “I’m going to jail today.”  BAKER punched one of the intervening individuals (Victim-2) in the head, causing pain and swelling for several days.  The other individual (Victim-3) observed brass knuckles on BAKER’s hand.  After punching Victim-2, BAKER aggressively pursued Victim-3, who collided with a large, hard object while evading BAKER.  The collision caused serious swelling and bruising on Victim-3’s leg for several days. During this part of the interaction, Victim-1 ran for safety into the restaurant.

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BAKER, 29, of Irvington, New Jersey, is charged with two counts of committing hate crimes, each of which carries a maximum sentence of 10 years in prison.

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

Mr. Clayton praised the outstanding investigative work of the FBI and thanked the Manhattan District Attorney’s Office, the New York City Police Department, and the Port Authority Police Department for their assistance.

The prosecution of this case is being handled by the Office’s Civil Rights and Human Trafficking Unit in the Criminal Division.  Assistant U.S. Attorneys Sam Adelsberg and Emily A. Johnson are in charge of the prosecution.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, and Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Vanessa Tibbits, announced an Indictment charging CORNELL NEILLY in connection with a pattern of bank robberies and attempted bank robberies of six Manhattan banks between August and October of 2025.  NEILLY is currently in federal custody on allegations that he violated the conditions of supervised release imposed in a prior federal case and is expected to be presented today before U.S. Magistrate Judge Stewart D. Aaron.  The case is assigned to U.S. District Judge Jed S. Rakoff.

"As alleged, Cornell Neilly robbed or attempted to rob six banks in multiple neighborhoods across Manhattan,” said U.S. Attorney Jay Clayton.  “Hardworking New Yorkers, including the tellers and customers at these six banks, deserve to go to work without worrying that they will become victim to this type of brazen conduct.  And New York families should not have to fear for their safety on New York streets.  The women and men of this Office will continue to work tirelessly with our law enforcement partners to keep our communities safe.”

“Cornell Neilly is charged with attempting to rob six banks across Manhattan by demanding cash from their tellers,” said FBI Acting Assistant Director in Charge Vanessa Tibbits.  “This alleged spree is a bank employee’s worst nightmare.  Preying on fear to satiate one’s own greed will not be tolerated.  Along with our law enforcement partners, the FBI remains steadfast in disrupting any serial criminal targeting our city’s financial institutions.” 

As alleged in the Indictment and in public statements made in public court proceedings:[1]

Between August and October of 2025, NEILLY robbed or attempted to rob six banks across Manhattan, including in Chelsea, the West Village, and just north of Madison Square Park.  At each bank, NEILLY handed a teller a note demanding specific amounts of United States currency.  NEILLY took thousands of dollars from three banks whose tellers complied with his demands.   

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NEILLY, 34, of New York, New York, is charged with three counts of bank robbery and three counts of attempted bank robbery, each of which carries a maximum sentence of 20 years in prison. 

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

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

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

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

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

United States Attorney for the Southern District of New York, Jay Clayton, Special Agent in Charge of the New York Field Office of Internal Revenue Service-Criminal Investigation (“IRS-CI”), Harry T. Chavis, Jr., and Commissioner of the New York City Department of Investigation (“DOI”), Jocelyn E. Strauber, announced today the unsealing of an Indictment charging ANTHONY HERBERT—the former Citywide Public Housing Liaison at the New York City Mayor’s Office—with committing bribery, kickback, and fraud offenses.  HERBERT was arrested this morning and will be presented today before U.S. Magistrate Judge Stewart D. Aaron.  The case is assigned to U.S. District Judge Valerie E. Caproni.

“New Yorkers deserve honest and competent public officials,” said U.S. Attorney Jay Clayton.  “As alleged, at a time when Anthony Herbert was serving as City Hall’s liaison to the City’s public housing residents, he engaged in blatant pay-to-play schemes to enrich himself.  The women and men of the Southern District of New York are committed to holding accountable government officials who abuse their positions of trust to benefit themselves.”

“It’s alleged Anthony Herbert used his position in the NYC Mayor’s Office to create a side hustle of bribery and fraud,” said IRS-CI Special Agent in Charge Harry T. Chavis, Jr.  “He allegedly took advantage of his role to line his pockets by offering unfair advantages to certain businesses.  Today’s indictment is the result of the incredible partnership between IRS-CI special agents and SDNY investigators, and now Herbert will face justice for his alleged criminal acts.” 

“This former Mayor’s Office official was responsible for engaging with members of the community on behalf of the Mayor’s Community Affairs Unit, first as the Brooklyn Borough Director and then as the liaison between residents and leadership of public housing, and City Hall,” said DOI Commissioner Jocelyn E. Strauber.  “He allegedly exploited this position of trust and influence to enrich himself, accepting $16,000 in bribes and kickbacks in return for favors, including pressuring other government officials to give City contracts to one company, and steering publicly-funded financial assistance payments to a second business, according to the indictment.  As charged, he allegedly filed false financial disclosures with the City omitting the payments he received to conceal his criminal conduct.  I thank the IRS and the United States Attorney’s Office for the Southern District of New York for their partnership on this investigation and for their commitment to hold accountable City employees who abuse their position for their own gain.”

As alleged in the Indictment:[1]

From in or about February 2022 through in or about September 2025, HERBERT worked for the Office of the New York City Mayor’s Community Affairs Unit (“Community Affairs”) within City Hall.  In that capacity, HERBERT first functioned as the Brooklyn Borough Director for Community Affairs from in or about February 2022 through in or about February 2023, and then as the Citywide Public Housing Liaison until in or about September 2025.  In the latter role, HERBERT was responsible for engaging with residents and leadership of the New York City Housing Authority (“NYCHA”) on behalf of City Hall.

HERBERT abused his position repeatedly and flagrantly by soliciting and receiving bribes and kickbacks in exchange for HERBERT’s agreement to advise and pressure other City officials to take actions benefiting those who paid HERBERT bribes and kickbacks, in two distinct schemes.

In the first scheme, HERBERT solicited and received from a particular individual (the “Security Company Executive”) thousands of dollars in cash payments in exchange for HERBERT advising and pressuring other City officials to award the Security Company Executive’s security guard company with City contracts, including for providing services at NYCHA developments.

In the second scheme, HERBERT advised, pressured, and fraudulently induced other City officials to approve payments to a director of a particular funeral home (the “Funeral Home Director”) under a financial assistance program for burial services for low-income families, in exchange for thousands of dollars in kickbacks from the proceeds of those reimbursement payments from the Funeral Home Director.             

Finally, in or about April 2021, HERBERT submitted a fraudulent loan application—on behalf of a fictitious baked goods company he claimed to operate—to induce a bank to issue HERBERT a $20,418 loan pursuant to the federal Paycheck Protection Program that was established in response to the COVID-19 pandemic. 

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HERBERT, 61, of Brooklyn, New York, is charged with two counts of bribery, each of which carries a maximum sentence of 10 years in prison; one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison; one count of federal program fraud, which carries a maximum sentence of 10 years in prison; one count of extortion under color of official right, which carries a maximum sentence of 20 years in prison; and one count of wire fraud, which carries a maximum sentence of 20 years in prison. 

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

Mr. Clayton praised the outstanding investigative work of IRS-CI, DOI, and the Special Agents and Task Force Officers 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 Catherine Ghosh and Daniel H. Wolf are in charge of the prosecution.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, and Administrator of the Drug Enforcement Administration (“DEA”), Terrance C. Cole, announced that Carlos Orense Azocar was sentenced to life plus 30 years in prison for conspiring to import cocaine into the United States and related weapons charges.  ORENSE AZOCAR was convicted after a two-week trial in December 2023 before U.S. District Judge Vernon S. Broderick, who imposed today’s sentence.

“Carlos Orense Azocar is one of the most prolific cocaine traffickers ever sentenced in this courthouse, responsible for the distribution of hundreds of tons of cocaine to the United States,” said U.S. Attorney Jay Clayton.  “Orense Azocar and his co-conspirators, including high-ranking government and military officials, inflicted incalculable damage on this community. Alongside our partners at the Bilateral Investigations Unit of the DEA’s Special Operations Division, we are committed to ending the exploitation of the American people by drug cartels and the governments who enable them.”

“Carlos Orense Azocar was a criminal kingpin who built an empire on deception, fraud, and bribery,” said DEA Administrator Terrance C. Cole.  “Orense Azocar’s close ties to the Venezuelan government provided resources to help him evade law enforcement and move massive shipments of cocaine across the Western Hemisphere.  Today's sentence sends a clear message: DEA will relentlessly pursue and hold international drug traffickers accountable, no matter how far they run or how powerful they believe themselves to be.”

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

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

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

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Mr. Clayton praised the outstanding investigative work of the Drug Enforcement Administration’s Special Operations Division Bilateral Investigations Unit, Rome Country Office, and Miami Field Division, as well as the SDNY Digital Forensics Unit and the U.S. Department of Justice’s Office of International Affairs for securing the arrest and June 2022 extradition from Italy of Orense Azocar.  Mr. Clayton additionally thanked the Government of Italy for its assistance extraditing ORENSE AZOCAR to the United States.

This case is being handled by the Office’s National Security & International Narcotics Unit. Assistant U.S. Attorneys Kaylan E. Lasky, Michael D. Lockard, and Kevin T. Sullivan are in charge of the prosecution. 

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, announced today that PAUL JORGENSEN pled guilty to committing securities fraud in connection with a multimillion-dollar scheme to trade in stock and options of Doximity based on inside information in advance of the company’s quarterly earnings calls.  JORGENSEN pled guilty today before U.S. District Judge Katherine Polk Failla.  

“Paul Jorgensen repeatedly used Doximity’s confidential information to trade in advance of the company’s quarterly earnings calls, earning himself more than $2.5 million in illegal profits,” said U.S. Attorney Jay Clayton.  “Corporate executives should be working for the benefit of the companies and shareholders they serve, not scheming to line their own pockets by trading on inside information.  Together with our law enforcement partners, we will continue to protect our financial markets and prosecute those who misuse non-public information.” 

“Paul Jorgensen repeatedly leveraged nonpublic information to conduct illegal trades from an unauthorized personal account, garnering millions of dollars in illicit proceeds,” said FBI Assistant Director in Charge Christopher G. Raia.  “The defendant’s actions greatly exploited his position of trust for his own personal gain, even as he learned he was likely to be terminated from the company.  May today’s plea emphasize the FBI’s commitment to protect companies from internal executives who prioritize personal wealth over their duty to company shareholders.”

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

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

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

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

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

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

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

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JORGENSEN, 53, of Charlotte, North Carolina, pled guilty to two counts of securities fraud, each of which carries a maximum sentence of 20 years in prison.           

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

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

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

United States Attorney for the Southern District of New York, Jay Clayton, announced today that RICKI RICKALINE GIBBS was sentenced by U.S. District Judge Kenneth M. Karas to 51 months in prison for perpetrating a multi-year scheme to defraud elderly victims across the United States, which resulted in losses of over $1.6 million to more than 20 victims.  GIBBS pled guilty in September 2025 before U.S. Magistrate Judge Judith C. McCarthy to conspiracy to commit wire fraud and mail fraud.

“Fraudsters who prey on our most vulnerable must be brought to justice,” said U.S. Attorney Jay Clayton. “Today’s sentence reinforces that message.”

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

From at least 2019 through at least 2023, GIBBS and others engaged in a fraud scheme perpetrated against elderly victims (the “Elder Fraud Scheme”), through which GIBBS and her co-conspirators defrauded more than 20 elderly victims of more than $1.6 million.  Victims of the Elder Fraud Scheme typically received an unsolicited phone call or text from an individual using a common name—e.g., “Robert James,” “Robert Hill,” or “Mark Miller”—claiming they had won a life-changing amount of money and a luxury car, but needed to pay taxes or fees to addresses and accounts specified by the caller before receiving the prize.  The caller then remained in contact with the victims and, after the victims made their initial payments as directed, informed the victims that additional payments were required to receive their purported winnings.  In particular, victims were instructed to send money by mailing checks, money orders, Vanilla Visa gift cards, and cash concealed in books, as well as by wire and Zelle transfer, to addresses and accounts identified by the caller.  After luring in victims with the sweepstakes lie, the perpetrators of the Elder Fraud Scheme also used romance scam tactics to induce victims to continue making payments.

Of the more than $1.6 million lost by victims of the Elder Fraud Scheme, at least $1,379,402 went to Gibbs, or accounts belonging to or controlled by Gibbs.  Gibbs, a dual citizen of Jamaica and the United States, participated in the scheme from both New York and Jamaica, alongside co-conspirators based in Jamaica. Gibbs used proceeds obtained from victims to, among other things, fund a clothing business she started called “Fairy’s Crown” and make numerous purchases of luxury items.

After her arrest, Gibbs twice met with federal law enforcement officers and falsely denied participating in the Elder Fraud Scheme and claimed to be a victim of the scheme.  For example, on each occasion, Gibbs falsely told law enforcement officers that she had received calls from men named “Simon” and “Peter” saying that she had won an $8.5 million prize and that she was given instructions to pay taxes required to receive the money.  Gibbs also falsely stated that she believed the money she had received from actual victims of the Elder Fraud Scheme was money from “sponsors” who were helping her pay taxes to obtain her sweepstakes prize.

*                *               *

In addition to the prison term, GIBBS, 31, of the Bronx, New York, was sentenced to three years of supervised release and ordered to pay forfeiture of $1,018,703, and restitution of $1,379,402.

Mr. Clayton praised the outstanding investigative work of the Special Agents of the U.S. Attorney’s Office for the Southern District of New York and the Internal Revenue Service – Criminal Division.  Mr. Clayton also thanked the New York Field Office of U.S. Customs and Border Protection for their assistance in the investigation.

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that KEANO SAHUSILAWANI, a/k/a/ “Chino,” a/k/a “Bhino,” a/k/a “Bhino Shots,” was sentenced today to 10 years in prison for illegally possessing ammunition in connection with a June 12, 2024, shooting during which SAHUSILAWANI and an accomplice fired multiple shots on a residential street in the Bronx, New York, striking and injuring an innocent bystander.  SAHUSILAWANI previously pled guilty before U.S. District Judge Lewis J. Liman, who imposed yesterday’s sentence. 

“On June 12, 2024, Keano Sahusilawani and his accomplices fired several shots in an attempt to kill an intended target who was riding a bicycle down the street,” said U.S. Attorney Jay Clayton.  “Instead, they struck an innocent bystander and caused others to run in fear for their lives.  New Yorkers want gun-toting criminals off our streets, and the women and men of our Office are committed to delivering that.”

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

On the evening of June 12, 2024, three individuals emerged from an SUV parked along Morris Avenue in the Bronx, just north of 151st Street.  The three individuals—SAHUSILAWANI, who was unmasked and wearing a gray sweater; a second individual, who was masked up and wearing all black clothes (“Shooter-2”); and a third individual, who wore a black hoodie and light-colored pants (“CC-1”)—walked towards 151st Street.  A few minutes later, the three individuals turned north onto Courtlandt, with SAHUSILAWANI and CC-1 walking up one sidewalk of Courtlandt and Shooter-2 walking up the opposite sidewalk.

Coming from the opposite direction was someone riding a bicycle in the middle of Courtlandt Avenue (the “Intended Target”).  As the Intended Target got closer, SAHUSILAWANI pulled out a gun and quickly fired off multiple shots aimed at the Intended Target.  As SAHUSILAWANI finished shooting, Shooter-2 fired off one or more shots.  The Intended Target stumbled off his bike and was able to sprint away seemingly uninjured.  However, an innocent bystander was grazed by a bullet that broke the skin on the back of his right leg.  SAHUSILAWANI was not permitted to possess ammunition because of prior felony convictions for multiple gunpoint robberies, a knifepoint robbery, and criminal possession of a firearm.  At the time of the shooting, SAHUSILAWANI was also on parole for his state convictions.

*                *                *

In addition to the prison term, SAHUSILAWANI, 25, of the Bronx, New York, was sentenced to three years of supervised release.      

Mr. Clayton praised the outstanding investigative work of the New York City Police Department, and thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance with the investigation.

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that HASSAN HUBBARD was sentenced today to 10 years in prison for trafficking firearms. HUBBARD previously pled guilty before U.S. District Judge Arun Subramanian, who imposed today’s sentence.

“New Yorkers have made clear they want illegal firearms out of their neighborhoods, and that’s what they deserve,” said U.S. Attorney Jay Clayton.  “Today’s lengthy sentence takes yet another provider of illegal automated weapons to gun-toting criminals off the streets of New York.  I commend the career prosecutors of this Office for their unwavering commitment to combatting the proliferation of illegal weapons and the havoc they wreak on our city.”

According to charging instruments and other public court filings:

In spring 2024, HUBBARD sold firearms and ammunition on multiple occasions to an undercover member of law enforcement from inside, or nearby, a Bronx apartment building.  The firearms HUBBARD sold included semiautomatic assault rifles, an untraceable “ghost gun,” and high-capacity magazines, along with over 800 rounds of ammunition.  Some of the firearms and ammunition HUBBARD sold are shown below:

In imposing the sentence, Judge Subramanian remarked upon the “important need to send a message that when firearm trafficking is detected, the penalties are significant.”

*                *                *

In addition to his prison term, HUBBARD, 54, of the Bronx, New York, was sentenced to three years of supervised release. 

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

The case is being handled by the Office’s Violent Organizations and Crime Unit.  Assistant U.S. Attorneys Patrick R. Moroney, Ashley C. Nicolas, and Jared D. Hoffman are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced that JESUS ZAPATA, a/k/a “Jeezy,” a/k/a “Hendrix,” was sentenced today by U.S. District Judge J. Paul Oetken to 17 years in prison for his role as “Duarte,” or leader, of the violent gang Own Every Dollar (“OED”).

“This case reflects our efforts to dismantle violent gangs, with today’s sentence reinforcing that accountability reaches gang leaders, like Jesus Zapata, who directed and ordered violence that harmed New Yorkers and their quality of life,” said U.S. Attorney Jay Clayton.

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

ZAPATA served as the “Duarte” of the violent OED gang, a subset of the Trinitarios gang based in and around the Washington Heights area of Manhattan.  The prosecution in this case has involved the convictions of 22 members of OED for five murders, more than 10 attempted murders, multiple robberies, and the control and operation of an extensive drug trafficking network that sold large quantities of fentanyl, heroin, cocaine, and crack cocaine. ZAPATA is being held responsible for committing and ordering a number of violent acts on Rikers Island, including three slashings in 2021, as well as for trafficking narcotics.

ZAPATA is the 21st defendant to be sentenced in the case, and the 11th defendant to be sentenced to a prison term of 10 or more years.

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In addition to the prison term, ZAPATA, 36, of New York, New York, was sentenced to five years of supervised release.      

Mr. Clayton praised the outstanding work of the New York City Police Department (“NYPD”), the Drug Enforcement Administration, and the New York Drug Enforcement Task Force.  Mr. Clayton also thanked the Manhattan District Attorney’s Office, the Bronx District Attorney’s Office, the Office of the Special Narcotics Prosecutor, the New York State Police, and the NYPD Task Force Officers assigned to this Office for their assistance in the investigation.

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Sarah L. Kushner, Kevin Mead, Ashley C. Nicolas, and Alexandra Messiter are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Ricky J. Patel, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced the unsealing of an Indictment charging AHMAR GARCIA, a/k/a “OB,” and RAHEEM PATTERSON, a/k/a “Rah Rah,” with committing the murder of sixteen-year-old Nisayah Sanchez on September 29, 2021, as a result of a gang war that plagued the city throughout that year that cost the lives of multiple young men and boys throughout the Bronx.  They are also charged with an attempted murder and assault with a dangerous weapon which injured another victim during that same shooting.  PATTERSON is also charged with an attempted murder and assault with a dangerous weapon that occurred on December 2, 2021, when he shot at a rival gang member in Manhattan.

GARCIA and PATTERSON were each brought into federal custody from New York State custody where they had each been serving state sentences for other violent crimes.  The defendants will be presented before U.S. Magistrate Judge Sarah L. Cave later today.  The case is assigned to U.S. District Judge Paul A. Engelmayer.        

“These charges stem from a violent gang war that played out on the streets of New York and ended with the cold-blooded murder of sixteen-year-old Nisayah Sanchez,” said U.S. Attorney Jay Clayton.  “I want to thank the women and men of this Office and our law enforcement partners who never wavered in the over four years since Sanchez’s senseless murder.  Our Office will bring gun-toting criminals who threaten the safety of New Yorkers to justice.”

“As alleged, the defendants’ callous disregard for human life—brazenly carrying out an attack in broad daylight and then boasting about their crimes online—will not be tolerated,” said HSI Special Agent in Charge Ricky J. Patel.  “For too long, these criminal organizations have terrorized neighborhoods and placed innocent lives at risk—leaving families shattered and communities living in fear.  This indictment marks a decisive blow against the violent street gangs that have inflicted fear and devastation on our neighborhoods. HSI New York, the New York City Police Department, and the Southern District of New York are unwavering in our commitment to rooting out those who threaten the safety of our streets.”

“Ahmar Garcia and Raheem Patterson allegedly turned a gang rivalry into the killing of a 16-year-old boy on a Bronx street in broad daylight,” said NYPD Commissioner Jessica S. Tisch.  “That decision ended a young life, devastated a family, and put an entire community in danger. When violence is carried out this openly—and then celebrated—it demands a decisive response.  This case shows what focused enforcement and strong federal partnerships can accomplish, and why the NYPD will continue to pursue violent gangs before they can take another life.  I thank Homeland Security Investigations and the U.S. Attorney’s Office for the Southern District of New York for their partnership in bringing these charges.”

According to the allegations in the Indictment:[1]

Since at least 2019, two warring alliances of violent street gangs engaged in retaliatory shootings, resulting in multiple young men and boys being shot, injured, and killed.  After each shooting, the gangs glorified their acts of violence against their rivals, taunting them for their dead gang members, and promoting their own gangs and their allies via social media and through their rap videos.  These posts and videos in turn fueled the cycle of violence, where the rival gangs retaliated against each other for each shooting, taunt, or perceived slight.

Over the spring and summer of 2021, these two alliances engaged in a gang war that included multiple shootings against their enemies, real or perceived.  These shootings resulted in the deaths of multiple young men and boys throughout the Bronx.  On one side of this gang war was an alliance consisting principally of the MacBallers, the Drillys, and the 800 YGz gangs, which historically and generally aligned, collectively or through its individual members, with the Bloods.  On the other side of this gang war was an opposing alliance principally including the Sev Side, Third Side, and Reyway gangs, all neighborhood sets generally aligned with the Crips.

On September 29, 2021, in retaliation for the murders of their own gang members, and to promote their own standing in their respective gangs, members of the alliance of MacBallers, Drillys, and 800 YGz gangs,  including AHMAR GARCIA, a/k/a “OB,” and RAHEEM PATTERSON, a/k/a “Rah Rah,” shot and killed Nisayah Sanchez, a 16-year-old member of the rival Sev Side, Third Side, and Reyway gang alliance, by sneaking up beside Sanchez and shooting him to death on a Bronx street in broad daylight, while also shooting and injuring another rival gang member.

A little over two months later, on December 2, 2021, PATTERSON and another member of his gang alliance shot multiple times at a rival gang member in midtown Manhattan as the rival was leaving a restaurant.

*                *                *

GARCIA, 25, and PATTERSON, 28, both of the Bronx, New York, are each charged (with respect to the September 29, 2021, shooting) with murder in aid of racketeering, which carries a mandatory sentence of life or death; conspiracy to commit murder in aid of racketeering, which carries a maximum sentence of 10 years in prison; attempted murder and assault with a dangerous weapon in aid of racketeering, which carries a maximum sentence of 20 years in prison; and discharging a firearm during an in relation to a crime of violence, which carries a maximum sentence of life in prison and a mandatory minimum of 10 years in prison.  PATTERSON is also charged (with respect to the December 2, 2021, shooting) with attempted murder and assault with a dangerous weapon in aid of racketeering, which carries a maximum sentence of 20 years in prison; and discharging a firearm during an in relation to a crime of violence, which carries a maximum sentence of life in prison and a mandatory minimum of 10 years in prison.

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

Mr. Clayton praised the outstanding investigative work of HSI and the NYPD. Mr. Clayton also thanked the Bronx County District Attorney’s Office for its assistance.

The case is being prosecuted by the Office’s Violent Organizations and Crimes Unit.  Assistant U.S. Attorneys Michael R. Herman and Patrick R. Moroney are in charge of the prosecution.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, announced that MATTHEW MELTON was extradited from the United Kingdom to face securities fraud and wire fraud charges.  The charges in the Indictment arise from an alleged scheme by MELTON to raise millions of dollars in investor money by falsely representing that his investment fund, “Price Physics,” was investing in futures contracts using a proprietary trading algorithm.  In fact, MELTON was operating a Ponzi scheme in which he used investor money to fund his luxury lifestyle and make payments to earlier investors.  MELTON arrived in the United States on December 19, 2025, and was presented on December 20, 2025, before Magistrate Judge Gary Stein.  MELTON’s case is assigned to U.S. District Court Judge Arun Subramanian.

“As alleged, Matthew Melton told investors he was using groundbreaking technology and cutting-edge trading techniques to generate record returns,” said U.S. Attorney Jay Clayton.  “In reality, Melton was allegedly operating one of the oldest scams around, taking new investors’ money to pay old investors and pocketing funds for himself along the way.  With the assistance of our dedicated law enforcement partners, our Office will continue to aggressively prosecute financial fraud and protect our markets.”

“This alleged scheme victimized many and caused millions of dollars in victim losses,” said FBI Assistant Director in Charge Christopher G. Raia.  “FBI New York is committed to eradicating all unlawful schemes fueling an unearned life of luxury by those who prey on others.  We remain focused on disrupting financial fraud operations and will continue to fiercely pursue those who seek to defraud others.”

According to the allegations contained in the Indictment and bail hearing:[1]

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

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MELTON, 61, of Boulder, Colorado, was charged with one count of securities fraud and one count of wire fraud, each of which carries a maximum term of 20 years in prison. 

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

Mr. Clayton praised the outstanding work of the FBI and thanked the Department of Justice’s Office of International Affairs for its assistance.  Mr. Clayton also thanked the U.S. Securities and Exchange Commission, which previously filed a separate civil action against MELTON.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant United States Attorney Adam S. Hobson is in charge of the prosecution.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, announced today the filing of a Superseding Indictment charging EDWARD GENE SMITH with drugging a female victim (“Victim-1”) with the intent to rape her, sex trafficking another female victim (“Victim-2”), enticing Victim-2 to travel to engage in unlawful sexual activity, receipt and possession of child pornography, and obstruction of justice.  SMITH is detained, awaiting trial before U.S. District Judge Paul A. Engelmayer.  Trial is scheduled to begin on February 23, 2026.

“As alleged, Edward Gene Smith systematically preyed on vulnerable young women,” said U.S. Attorney Jay Clayton.  “He allegedly sexually assaulted young women, drugging and raping them, often recording his abuse in photographs and videos.  Smith also allegedly possessed horrific images and videos of child sexual abuse and, when the investigation closed in, attempted to obstruct justice by paying one of his victims to sign a false document.  New Yorkers want those who exploit and abuse vulnerable victims brought to justice and we are committed to doing so.  We encourage any additional victims to come forward by calling 1-800-CALL-FBI.”

“Smith targeted and abused vulnerable young women by drugging, raping, and sexually assaulting them before exploiting their image on an encrypted messaging platform, as alleged,” said FBI Assistant Director in Charge Christopher G. Raia.  “Our investigation also revealed alleged possession of child pornography and an attempt by Smith to obstruct justice.  As demonstrated today, the FBI remains relentless in our pursuit to root out those who prey on vulnerable victims and predators who defile the likeness of children through these heinous acts.”

According to the allegations contained in the Superseding Indictment and in other public statements and filings:[1]

From at least in or about 2019 to at least in or about April 2023, SMITH, a senior finance executive of a major U.S. bank, targeted young women on the Internet and enticed them to meet with him at his Central Park South residence and other locations.  On multiple occasions, SMITH drugged his victims without their consent or knowledge, sexually abused them while they were incapacitated or unconscious, and photographed or recorded his abuse.

At least on or about April 23, 2023, SMITH drugged and raped Victim-1 in his Central Park South residence.  SMITH then shared a video of himself digitally penetrating Victim-1, who was nude and incapacitated or unconscious, with others via an encrypted messaging platform, on a channel that was dedicated to sharing depictions of incapacitated or unconscious women in sexually exploitative positions.

Previously, in or about 2020, SMITH persuaded Victim-2, who SMITH had met a few months prior when Victim-2 was a college student, to relocate to New York City.  SMITH controlled her finances, social life, and activities, and repeatedly drugged and sexually assaulted her over the course of several months.

From at least in or about 2019 to at least in or about June 2024, SMITH also possessed and/or received a large volume of images and videos of children being sexually abused on his personal devices.

Finally, in or about August 2024, after a search warrant was executed at his residence, revealing that SMITH possessed child pornography on his electronic devices, SMITH paid a victim thousands of dollars to sign a false document in an attempt to obstruct the investigation.

If you have been victimized by the EDWARD GENE SMITH in any way or have any additional information about his alleged illegal behavior, please call the FBI at 1-800-CALL-FBI.

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SMITH, 50, of New York, New York, is charged with one count of distribution of a controlled substance with intent to commit rape, which carries a maximum sentence of 20 years in prison; one count of sex trafficking by force, fraud, or coercion, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of life in prison; one count of enticement to travel to engage in unlawful sexual activity, which carries a maximum sentence of 20 years in prison; one count of receipt of child pornography, which carries a mandatory minimum sentence of 5 years in prison and a maximum sentence of 20 years in prison; one count of possession of child pornography, which carries a maximum sentence of 20 years in prison; and one count of obstruction of justice, which carries a maximum sentence of 20 years in prison.

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

Mr. Clayton praised the outstanding work of the FBI.

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

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

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

Sean S. Buckley, Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515, announced today that ARLASA DAVIS was sentenced to twenty-four months in prison for her role in a sprawling fraud and bribery scheme that generated over $66 million in unauthorized transactions under the Supplemental Nutrition Assistance Program (“SNAP”)—colloquially known as food stamps.  DAVIS, a longtime employee of the United States Department of Agriculture (“USDA”), abused her position within the division responsible for identifying SNAP fraud to sell confidential government information to criminals.  DAVIS previously pled guilty to bribery and conspiracy to commit bribery before U.S. District Judge Jed S. Rakoff, who imposed today’s sentence.

“Arlasa Davis exploited her role as a government employee to enrich herself while undermining a program designed to help New York families in need,” said Attorney for the United States Sean S. Buckley. “This conviction and sentence send a clear message that exploitation of funds intended for families will result in serious consequences.”

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

DAVIS worked within the USDA division responsible for identifying SNAP fraud. She abused her privileged access to federal systems to sell hundreds of Electronic Benefits Transfer (“EBT”) license numbers to co-conspirators.  DAVIS photographed handwritten lists of license numbers intended for qualifying stores with her personal cellphone and funneled them to an intermediary who sold them to co-conspirators, who in turn used those license numbers to fraudulently obtain EBT terminals for stores that were not authorized by the USDA to process SNAP transactions.  In return, DAVIS received substantial bribes that were disguised in communications as, among other things, “birthday gifts” and “flowers.”

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In addition to her prison term, DAVIS, 56, of Gardiner, New York, was sentenced to two years of supervised release.  DAVIS was also ordered to forfeit $48,470 and pay restitution of $36 million.

Mr. Buckley praised the outstanding investigative efforts of the USDA Office of Inspector General and the New York Field Office of the Federal Bureau of Investigation.

This matter is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Georgia V. Kostopoulos and Joe Zabel are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services Office of the Inspector General (“HHS-OIG”), Naomi D. Gruchacz, announced today that the United States has filed and settled a healthcare fraud lawsuit against NEW YORK-PRESBYTERIAN HUDSON VALLEY HOSPITAL (“NYPHV”), which, prior to 2015, was known as Hudson Valley Hospital Center (“Hudson Valley”).  The settlement resolves allegations that NYPHV improperly paid millions of dollars to a Westchester-based oncology practice (the “Oncology Practice”) to induce patient referrals to the hospital, which NYPHV then billed to Medicare and Medicaid.

Specifically, the Complaint alleges that in 2011 and 2012, NYPHV entered into three contracts with the Oncology Practice.  Together, those contracts provided that NYPHV would pay hundreds of thousands of dollars per year to the Oncology Practice in exchange for, among other things, work on a proposed melanoma center (the “Melanoma Center”), work on a proposed breast cancer center (the “Breast Center”), and the development and management of an intraoperative radiation therapy service line (the “IORT Service Line” and, collectively, with the agreements concerning the Melanoma Center and the Breast Center, the “Agreements”).  After entering into the Agreements, Hudson Valley and NYPHV subsequently made millions of dollars in payments to the Oncology Practice.  But in reality, many of these payments were not made in exchange for the services identified in the Agreements.  Instead, the Oncology Practice frequently failed to perform or document the central services identified in the Agreements.  All the while, NYPHV continued to receive referrals from the Oncology Practice that generated millions of dollars in reimbursements from Medicare and Medicaid.

Under the settlement approved today by U.S. District Judge Nelson S. Román, NYPHV agreed to pay a total sum of $6,836,764.30 plus interest, with $6,469,410.32 to be paid to the United States and the remainder to be paid to New York State.  As part of the settlement, NYPHV also admitted and accepted responsibility for certain conduct alleged by the Government in its complaint, including that NYPHV paid the Oncology Practice over $4 million pursuant to the Agreements for work that was either not performed or not performed as called for in the Agreements, or for which NYPHV lacks any time records.

“Hospitals and physicians are expected to make medical decisions based on the needs of their patients, not improper financial arrangements,” said U.S. Attorney Jay Clayton.  “When hospitals provide improper payments to induce patient referrals, they compromise the integrity of federal healthcare programs that serve New Yorkers.  We cannot afford corruption in our healthcare industry.”

“Violations of the Anti-Kickback Statute, like those alleged in this case, can improperly influence referral decisions and undermine the integrity of federal health care programs,” said HHS-OIG Special Agent in Charge Naomi D. Gruchacz.  “HHS-OIG is committed to safeguarding the integrity of federal health care programs and ensuring that provider decisions are not compromised by inducements.”

As alleged in the Government’s Complaint:

In 2011 and 2012, NYPHV entered into the three Agreements with the Oncology Practice.  The Agreements provided, respectively, that NYPHV would pay the Oncology Practice an annual fee in exchange for, among other things: one of the Oncology Practice’s physician principals (“Physician A”) serving as the Medical Director of a proposed Melanoma Center at the hospital (the “Melanoma Directorship Agreement”); the Oncology Practice’s other physician principal (“Physician B”) serving as the Medical Director of a proposed Breast Center at the hospital (the “Breast Center Directorship Agreement”); and the Oncology Practice developing, managing, marketing, and integrating the IORT Service Line as part of the hospital’s Department of Radiation Oncology (the “IORT Management Services Agreement”).  Each of the three Agreements expired in 2016.

By October 2016 at the latest, NYPHV was, or at minimum should have been, aware that the Oncology Practice was performing only a portion of the work called for under the IORT Management Services Agreement and was not performing the majority of the work being called for under the Melanoma Directorship Agreement.  In addition, despite the fact that all of the Agreements expired in 2016, NYPHV continued to pay the Oncology Practice the fees in the Agreements through 2019.

All told, between January 2011 and December 2019 (the “Covered Period”), NYPHV paid over $4 million in fees to the Oncology Practice in connection with the Agreements—including payments for work that was not performed—to induce the Oncology Practice to refer its patients to NYPHV for oncology-related medical services in violation of the Anti-Kickback Statute and the Stark Law.  As a result of this conduct, NYPHV submitted false claims for payment to Medicare and Medicaid for services provided to these patients in violation of the False Claims Act.

Under the settlement, NYPHV admitted, among other things, that:

• Between 2011 and 2019, Hudson Valley and NYPHV together paid the Oncology Practice over $4 million pursuant to the Agreements for work that was either not performed, not performed as called for in the Agreements, or for which NYPHV lacks any time records.  The Oncology Practice was required to submit these records to Hudson Valley, and later NYPHV, under the Melanoma and Breast Center Directorship Agreements.
• By October 2016, NYPHV was, or at minimum should have been, aware that the Oncology Practice was performing only a portion of the work called for under the IORT Management Services Agreement and was not performing the majority of the work being called for under the Melanoma Directorship Agreement.  Nevertheless, NYPHV continued paying the Oncology Practice its fees under each of these agreements for another three years.
• The Oncology Practice and Physician A never developed or established the Melanoma Center as envisioned by the Melanoma Directorship Agreement and, accordingly, Physician A did not perform the primary duties of a Medical Director as envisioned by the Melanoma Directorship Agreement.  Further, at least by 2012, Physician A did not provide 50 hours of work per month toward developing or establishing the Melanoma Center and NYPHV was unable to identify any time records from the Covered Period documenting Physician A’s or their designee’s work related to the Melanoma Directorship Agreement.

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

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

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

Cholo Abdi Abdullah was sentenced to two consecutive life terms in prison following his conviction for multiple crimes that included conspiring to provide — and providing — material support to a foreign terrorist organization, and conspiring to murder U.S. nationals, commit aircraft piracy, destroy aircraft, and commit acts of terrorism transcending national boundaries. Today’s sentencing followed Abdullah’s conviction after a jury trial that concluded on Nov. 4, 2024.

“Today, justice has been served,” said Assistant Attorney General for National Security John A. Eisenberg.  “Abdullah, an al-Shabaab terrorist, sought to replicate the most horrific terrorist attack in our history, as he prepared to hijack a commercial airliner to take down a building on U.S. soil.  We thwarted this plot due to the relentless efforts of U.S. law enforcement and thereby likely saved many innocent lives.  His life sentence is a powerful reminder that those who plot attacks against the United States will be prosecuted and punished to the fullest extent of the law.”

“Cholo Abdi Abdullah was a highly trained al-Shabaab operative who was dedicated to recreating the horrific September 11 terrorist attacks on behalf of a vicious terrorist organization,” said U.S. Attorney Jay Clayton. “Abdullah pursued his commercial pilot license at a flight school in the Philippines while conducting extensive attack planning on how to hijack a commercial plane and crash it into a building in America. As he later admitted to the FBI, he was fully prepared to die in his terrorist attack. I commend the years of outstanding investigative work of the FBI and the career prosecutors of this Office who disrupted Abdullah’s murderous plot and brought him to face justice in a U.S. court. He will now spend [decades] behind bars, where he will not be able to harm innocent Americans.”

“Al Qaeda affiliated terrorist and trained pilot Cholo Abdullah was justly punished today for his plotting to commit a 9/11-style terrorist attack,” said Assistant Director in Charge Christopher G. Raia of the FB. “This case serves as reminder individuals still wish to inflict violence upon our country in the name of the terrorism. The FBI New York Joint Terrorism Task Force remains steadfast in its relentless determination to protect the American people from terrorists and their heinous desires.”

According to court documents and the evidence at trial:

al-Shabaab

Harakat al-Shabaab al-Mujahideen, commonly known as al-Shabaab, is a terrorist organization and al Qaeda affiliate based in Somalia and active in other locations in East Africa. Since its formation, al-Shabaab has relied on violence, including assassinations, suicide bombings, armed assaults on hotels, restaurants, beaches, and an array of civilian targets to pursue its goals. Those goals include al Qaeda’s broader objective to overthrow the U.S. government and create an Islamic caliphate. In 2012, the then-Emir of al-Shabaab swore allegiance to Ayman al Zawahiri, the then-Emir of al Qaeda who succeeded Osama bin Laden after his death in 2011, which led to al-Zawahiri announcing that al-Shabaab “will hereby merge into al Qa’ida.”. On February 26, 2008, the U.S. Secretary of State designated al-Shabaab as a foreign terrorist organization (“FTO”) under Section 219 of the Immigration and Nationality Act, and as a Specially Designated Global Terrorist under Section 1(b) of Executive Order 13224.

Since its designation, al-Shabaab has repeatedly declared its intent to target the West and kill Americans. In April 2008, for example, in response to the U.S. designation of al-Shabaab as an FTO, al-Shabaab released a statement expressly declaring its intent to target the U.S. The next month, in May 2008, al-Shabaab publicly declared that its fighters would “hunt the U.S. government,” and threatened that governments supporting the U.S. and Ethiopia should keep their citizens out of Somalia. Consistent with its threats, al-Shabaab has repeatedly engaged in mass-casualty attacks targeting Americans.

al-Shabaab’s “Operation Jerusalem Will Never Be Judaized” Campaign

In May 2018, al-Shabaab announced that it would participate in an al Qaeda-driven campaign to retaliate against the U.S. for its decision to move its embassy in Israel to Jerusalem, called “Operation ‘Al-Qudsu Lan Tuhawwad (Jerusalem will never be Judaized).’”. al-Shabaab subsequently claimed, in public statements, responsibility for multiple major terrorist attacks carried out under Operation “Jerusalem Will Never Be Judaized.”

One of al-Shabaab’s attacks was the Jan.15, 2019 assault on the DusitD2 hotel and office complex in Nairobi, Kenya (the “DusitD2 Attack”), which included, among other things, a suicide bomber detonating an explosive device in front of a U.S. citizen, killing him; and four other armed individuals attacking the hotel grounds with AK-47s and grenades, killing more than 20 additional people. al-Shabaab claimed responsibility for the attack, and i a propaganda video explained that the DusitD2 Attack was “successful, by the grace of Allah, and resulted in the deaths of more than 50 disbelievers, including Americans and other Western nationals.”

Abdullah Joins the al-Shabaab Aviation Plot to Re-Create the September 11 Terrorist Attacks

Abdullah joined al-Shabaab in 2015 and spent approximately a year at a series of safehouses in Somalia where he worked with high-ranking al-Shabaab members and received military-style training that included how to fire an AK-47 assault rifle and how to make different sized explosives. During his training, he was recruited by senior al-Shabaab operatives for a “greater plan,” one that was “bigger than the fighting and the explosives.”. Specifically, he agreed to join al-Shabaab’s international scheme to execute a mass-casualty terrorist attack, which would involve Abdullah training to become an airline pilot so that he could hijack a commercial plane and crash it into a building in the U.S.

Between October 2017 and July 2019, Abdullah became a student at a flight school in the Philippines and spent hundreds of hours training to become a commercial pilot. Abdullah’s flight school tuition was financed by al-Shabaab, which raises funds through an elaborate system of extortion in Somalia that it refers to as “taxation.”. Images of Abat the flight school Abdullah are displayed below, with the instructors’ faces redacted:

During his enrollment, Abdullah participated in multiple training programs for his private and commercial pilot licenses, as well as to obtain the required ratings necessary to fly commercial aircraft. These requirements included hundreds of hours of classroom instruction, work in flight simulators, hands-on flight training, and written examinations. At the time of his arrest in the Philippines in July 2019, Abdullah had completed all but one of the requirements for his commercial pilot licenses and had nearly completed the “instrument rating” required to get a job as a pilot with a major airline.

Abdullah Agreed to Murder U.S. Nationals for al-Shabaab

Following his arrest, Abdullah admitted to FBI agents that he was training to become a pilot on behalf of al-Shabaab so that he could hijack a plane. As part of his attack planning, he had researched certain transit visas that would allow him to enter the U.S., tested the feasibility of taking a knife on board an airplane, and admitted that he expected others to be killed or injured when he hijacked the plane. He himself expected to die in the attack.

While training at the flight school, Abdullah continued to research his attack plans. He searched online multiple times for information concerning airplane cockpit doors, as well as airline jobs, instructor training, and possible interview questions for airline jobs. In December 2018, he searched for information concerning security on airplanes, including whether air marshals are on every flight, and “Boeing 737 cockpit door.”. He visited websites discussing pilots carrying guns inside airplane cockpits, and viewed an article on how to open an airplane cockpit door from the outside.

In January 2019, ABDULLAH was briefed by his al-Shabaab handler about the DusitD2 Attack. His handler was a high-level al-Shabaab operative who coordinated the DusitD2 Attack and arranged for the use of a suicide bomber during the assault on the hotel and office complex. Abdullah admitted to FBI agents that his handler told him that his friend in al-Shabaab had died “for the cause” during the DusitD2 Attack, and that Abdullah and his handler used that as “encouragement” for him to become stronger. He then repeatedly searched online about the DusitD2 Attack, including for footage of the suicide blast. Just two days later, he accelerated his attack planning by researching “Delta flights,” and the “Tallest building in Atlanta,” specifically focusing on the Bank of America Plaza, a 55-story building standing 1,023 feet tall according to the website he visited as part of his research.

Throughout his flight training, Abdullah also provided his al-Shabaab handler with detailed progress reports that described his research and attack planning. In these reports, he described how he had taken flights to determine which airline seats had the best views of the flight deck door. He also compiled research on post-September 11 hijacking attempts and described how the “brothers during 9/11 did something completely unexpected in a more creative way, ‘study for piloting.’”. In that same report, he concluded that “the only successful hijack after 9/11 was the one of the Ethiopian Airlines and it is so because it was hijacked by the pilot himself.”. His progress report then described a list of “My ideas” that he created and arrived at for a successful hijacking operation. His number one idea was that “for a very successful mission, we need a pilot in the cockpit (which means I should apply for the airlines).”

Before Abdullah could complete his commercial pilot license training and carry out the final, deadly steps of the Aviation Plot, he was arrested, in July 2019, by authorities in the Philippines. He was transferred to U.S. custody in December 2020.

As a result of this conduct, on November 4, 2024, Abdullah was found guilty at trial of six counts: conspiring to provide material support to a foreign terrorist organization, which carries a maximum term of 20 years in prison; providing material support to a foreign terrorist organization, which carries a maximum penalty of 20 years in prison; conspiring to murder U.S. nationals abroad, which carries a maximum penalty of life in prison;. conspiring to commit aircraft piracy, which carries a mandatory minimum penalty of 20 years in prison and a maximum term of life in prison; conspiring to destroy aircraft, which carries a maximum penalty of 20 years in prison; and conspiring to commit acts of terrorism transcending national boundaries, which carries a maximum penalty f life in prison.

In addition to the prison term, Abdullah, 34, of Kenya, was sentenced to a lifetime of supervised release.

The National Security Division (NSD) praised the outstanding efforts of the FBI New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department. NSD also thanked the FBI Counterterrorism Division; the FBI Legal Attaché Offices in Nairobi, Kenya, and Manila, the Philippines; the FBI’s Hudson Valley Resident Agency; the New York State Police; the Counterterrorism Section of the Department of Justice’s National Security Division; the Office of International Affairs of the Department of Justice’s Criminal Division; the U.S. Department of Defense; the Kenyan Directorate of Criminal Investigations, including the Anti-Terrorism Police Unit and the Joint Terrorism Task Force-Kenya; the Office of the Director of Public Prosecutions in Kenya; the Philippine National Police; the Philippine Department of Justice; the Joint Terrorism Financial Investigations Group-Philippines; and the Philippine Bureau of Immigration, for their assistance.

This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Nicholas S. Bradley and Jonathan L. Bodansky are in charge of the prosecution, with assistance from paralegal specialist Sabrina Jim Munoz and trial attorney John Cella of the Counterterrorism Section of the National Security Division.

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Attorney General for National Security, John A. Eisenberg, and Assistant Director in Charge of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, announced today that CHOLO ABDI ABDULLAH was sentenced to life in prison by U.S. District Judge Analisa Torres following his conviction for multiple crimes that included conspiring to provide—and providing—material support to a foreign terrorist organization, and conspiring to murder U.S. nationals, commit aircraft piracy, destroy aircraft, and commit acts of terrorism transcending national boundaries.  Today’s sentencing followed ABDULLAH’s conviction after a jury trial that concluded on November 4, 2024. 

“Cholo Abdi Abdullah was a highly trained al-Shabaab operative who was dedicated to recreating the horrific September 11 terrorist attacks on behalf of a vicious terrorist organization,” said U.S. Attorney Jay Clayton.  “Abdullah pursued his commercial pilot license at a flight school in the Philippines while conducting extensive attack planning on how to hijack a commercial plane and crash it into a building in America.  As he later admitted to the FBI, he was fully prepared to die in his terrorist attack.  I commend the years of outstanding investigative work of the FBI and the career prosecutors of this Office who disrupted Abdullah’s murderous plot and brought him to face justice in a U.S. court.  He will now spend life behind bars, where he will not be able to harm innocent Americans.”

“Today, justice has been served,” said Assistant Attorney General for National Security John A. Eisenberg.  “Abdullah, an al-Shabaab terrorist, sought to replicate the most horrific terrorist attack in our history, as he prepared to hijack a commercial airliner to take down a building on U.S. soil.  We thwarted this plot due to the relentless efforts of U.S. law enforcement and thereby likely saved many innocent lives.  His life sentence is a powerful reminder that those who plot attacks against the United States will be prosecuted and punished to the fullest extent of the law.”

“Al Qaeda affiliated terrorist and trained pilot Cholo Abdullah was justly punished today for his plotting to commit a 9/11-style terrorist attack,” said FBI Assistant Director in Charge Christopher G. Raia.  “This case serves as reminder individuals still wish to inflict violence upon our country in the name of the terrorism.  The FBI New York Joint Terrorism Task Force remains steadfast in its relentless determination to protect the American people from terrorists and their heinous desires.”

According to court documents and the evidence at trial:

al-Shabaab

Harakat al-Shabaab al-Mujahideen, commonly known as al-Shabaab, is a terrorist organization and al Qaeda affiliate based in Somalia and active in other locations in East Africa.  Since its formation, al-Shabaab has relied on violence, including assassinations, suicide bombings, armed assaults on hotels, restaurants, beaches, and an array of civilian targets to pursue its goals.  Those goals include al Qaeda’s broader objective to overthrow the U.S. government and create an Islamic caliphate.  In 2012, the then-Emir of al-Shabaab swore allegiance to Ayman al Zawahiri, the then-Emir of al Qaeda who succeeded Osama bin Laden after his death in 2011, which led to al-Zawahiri announcing that al-Shabaab “will hereby merge into al Qa’ida.”  On February 26, 2008, the U.S. Secretary of State designated al-Shabaab as a foreign terrorist organization (“FTO”) under Section 219 of the Immigration and Nationality Act, and as a Specially Designated Global Terrorist under Section 1(b) of Executive Order 13224.

Since its designation, al-Shabaab has repeatedly declared its intent to target the West and kill Americans.  In April 2008, for example, in response to the U.S. designation of al-Shabaab as an FTO, al-Shabaab released a statement expressly declaring its intent to target the U.S.  The next month, in May 2008, al-Shabaab publicly declared that its fighters would “hunt the U.S. government,” and threatened that governments supporting the U.S. and Ethiopia should keep their citizens out of Somalia. Consistent with its threats, al-Shabaab has repeatedly engaged in mass-casualty attacks targeting Americans.

al-Shabaab’s “Operation Jerusalem Will Never Be Judaized” Campaign

In May 2018, al-Shabaab announced that it would participate in an al Qaeda-driven campaign to retaliate against the U.S. for its decision to move its embassy in Israel to Jerusalem, called “Operation ‘Al-Qudsu Lan Tuhawwad (Jerusalem will never be Judaized).’”  al-Shabaab subsequently claimed, in public statements, responsibility for multiple major terrorist attacks carried out under Operation “Jerusalem Will Never Be Judaized.”

One of al-Shabaab’s attacks was the January 15, 2019 assault on the DusitD2 hotel and office complex in Nairobi, Kenya (the “DusitD2 Attack”), which included, among other things, a suicide bomber detonating an explosive device in front of a U.S. citizen, killing him; and four other armed individuals attacking the hotel grounds with AK-47s and grenades, killing more than 20 additional people.  al-Shabaab claimed responsibility for the attack, and in a propaganda video explained that the DusitD2 Attack was “successful, by the grace of Allah, and resulted in the deaths of more than 50 disbelievers, including Americans and other Western nationals.”

ABDULLAH Joins the al-Shabaab Aviation Plot to Re-Create the September 11 Terrorist Attacks

ABDULLAH joined al-Shabaab in 2015 and spent approximately a year at a series of safehouses in Somalia where he worked with high-ranking al-Shabaab members and received military-style training that included how to fire an AK-47 assault rifle and how to make different sized explosives.  During his training, ABDULLAH was recruited by senior al-Shabaab operatives for a “greater plan,” one that was “bigger than the fighting and the explosives.”  Specifically, ABDULLAH agreed to join al-Shabaab’s international scheme to execute a mass-casualty terrorist attack, which would involve ABDULLAH training to become an airline pilot so that he could hijack a commercial plane and crash it into a building in the U.S.

Between October 2017 and July 2019, ABDULLAH became a student at a flight school in the Philippines and spent hundreds of hours training to become a commercial pilot.  ABDULLAH’s flight school tuition was financed by al-Shabaab, which raises funds through an elaborate system of extortion in Somalia that it refers to as “taxation.”  Images of ABDULLAH at the flight school are displayed below, with the instructors’ faces redacted:

During his enrollment, ABDULLAH participated in multiple training programs for his private and commercial pilot licenses, as well as to obtain the required ratings necessary to fly commercial aircraft.  These requirements included hundreds of hours of classroom instruction, work in flight simulators, hands-on flight training, and written examinations.  At the time of his arrest in the Philippines in July 2019, ABDULLAH had completed all but one of the requirements for his commercial pilot licenses and had nearly completed the “instrument rating” required to get a job as a pilot with a major airline.

ABDULLAH Agreed to Murder U.S. Nationals for al-Shabaab

Following his arrest, ABDULLAH admitted to FBI agents that he was training to become a pilot on behalf of al-Shabaab so that he could hijack a plane.  As part of his attack planning, ABDULLAH had researched certain transit visas that would allow him to enter the U.S., tested the feasibility of taking a knife on board an airplane, and admitted that he expected others to be killed or injured when he hijacked the plane.  ABDULLAH himself expected to die in the attack.

While training at the flight school, ABDULLAH continued to research his attack plans.  ABDULLAH searched online multiple times for information concerning airplane cockpit doors, as well as airline jobs, instructor training, and possible interview questions for airline jobs.  In December 2018, ABDULLAH searched for information concerning security on airplanes, including whether air marshals are on every flight, and “Boeing 737 cockpit door.”  ABDULLAH visited websites discussing pilots carrying guns inside airplane cockpits, and viewed an article on how to open an airplane cockpit door from the outside.

In January 2019, ABDULLAH was briefed by his al-Shabaab handler about the DusitD2 Attack. ABDULLAH’s handler was a high-level al-Shabaab operative who coordinated the DusitD2 Attack and arranged for the use of a suicide bomber during the assault on the hotel and office complex.  ABDULLAH admitted to FBI agents that his handler told ABDULLAH that his friend in al-Shabaab had died “for the cause” during the DusitD2 Attack, and that ABDULLAH and his handler used that as “encouragement” for ABDULLAH to become stronger.  ABDULLAH then repeatedly searched online about the DusitD2 Attack, including for footage of the suicide blast.  Just two days later, ABDULLAH accelerated his attack planning by researching “Delta flights,” and the “Tallest building in Atlanta,” specifically focusing on the Bank of America Plaza, a 55-story building standing 1,023 feet tall according to the website ABDULLAH visited as part of his research.

Throughout his flight training, ABDULLAH also provided his al-Shabaab handler with detailed progress reports that described his research and attack planning.  In these reports, ABDULLAH described how he had taken flights to determine which airline seats had the best views of the flight deck door.  ABDULLAH also compiled research on post-September 11 hijacking attempts and described how the “brothers during 9/11 did something completely unexpected in a more creative way, ‘study for piloting.’”  In that same report, ABDULLAH concluded that “the only successful hijack after 9/11 was the one of the [E]thiopian [A]irlines and it is so because it was hijacked by the pilot himself.”  ABDULLAH’s progress report then described a list of “My ideas” that ABDULLAH created and arrived at for a successful hijacking operation.  His number one idea was that “for a very successful mission, we need a pilot in the cockpit (which means I should apply for the airlines).”

Before ABDULLAH could complete his commercial pilot license training and carry out the final, deadly steps of the Aviation Plot, he was arrested, in July 2019, by authorities in the Philippines.  He was transferred to U.S. custody in December 2020.

As a result of this conduct, on November 4, 2024, ABDULLAH was found guilty at trial of six counts: conspiring to provide material support to a foreign terrorist organization, which carries a maximum term of 20 years in prison; providing material support to a foreign terrorist organization, which carries a maximum term of 20 years in prison; conspiring to murder U.S. nationals abroad, which carries a maximum term of life in prison;  conspiring to commit aircraft piracy, which carries a mandatory minimum of 20 years in prison and a maximum term of life in prison; conspiring to destroy aircraft, which carries a maximum term of 20 years in prison; and conspiring to commit acts of terrorism transcending national boundaries, which carries a maximum sentence of life in prison.

*               *                *

ABDULLAH, 35, of Kenya, was not sentenced to any supervised release.

Mr. Clayton praised the outstanding efforts of the FBI New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department.  Mr. Clayton also thanked the FBI Counterterrorism Division; the FBI Legal Attaché Offices in Nairobi, Kenya, and Manila, the Philippines; the FBI’s Hudson Valley Resident Agency; the New York State Police; the Counterterrorism Section of the Department of Justice’s National Security Division; the Office of International Affairs of the Department of Justice’s Criminal Division; the U.S. Department of Defense; the Kenyan Directorate of Criminal Investigations, including the Anti-Terrorism Police Unit and the Joint Terrorism Task Force-Kenya; the Office of the Director of Public Prosecutions in Kenya; the Philippine National Police; the Philippine Department of Justice; the Joint Terrorism Financial Investigations Group-Philippines; and the Philippine Bureau of Immigration, for their assistance.

This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Nicholas S. Bradley and Jonathan L. Bodansky are in charge of the prosecution, with assistance from paralegal specialist Sabrina Jim Munoz and trial attorney John Cella of the Counterterrorism Section of the National Security Division.

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the Eastern Regional Office of the U.S. Small Business Administration, Office of Inspector General (“SBA-OIG”), Amaleka McCall-Brathwaite, announced today that MARYMOUNT MANHATTAN COLLEGE (“MMC”) has agreed to pay $8,392,758.43 to resolve allegations that it violated the False Claims Act by falsely certifying that it was eligible for a Paycheck Protection Program (“PPP”) loan.  Under the settlement approved by U.S. District Judge J. Paul Oetken, MMC has admitted and accepted responsibility for conduct alleged in the Government’s Complaint, including that it was ineligible to receive the PPP loan due to the total number of individuals it employed.

The PPP, administered by the SBA, was created to assist small businesses nationwide adversely impacted by the COVID-19 pandemic.  Nonprofit 501(c)(3) organizations such as MMC were deemed eligible for PPP loans if they met certain requirements.  For example, when MMC applied in May 2020, 501(c)(3) organizations (like for-profit businesses) were generally required to have 500 or fewer employees.  MMC exceeded this size eligibility requirement.  The American Rescue Plan Act, enacted in March 2021, modified the size eligibility standard for 501(c)(3) nonprofit organizations to require that they have no more than 500 employees per physical location.  

“The Paycheck Protection Program was established to ease financial and economic strain caused by the pandemic by providing businesses with forgivable loans,” said U.S. Attorney Jay Clayton.  “But too many applicants applied for and received taxpayer money that they had no right to receive.  Our Office remains dedicated to holding those who improperly claim public funds accountable.”

“Entities that misrepresented their eligibility to obtain funds from SBA programs intended to support small businesses impacted by the COVID-19 pandemic undermined the integrity of these critical relief efforts,” said SBA-OIG Special Agent in Charge Amaleka McCall-Brathwaite.  “The SBA Office of Inspector General remains committed to identifying and addressing fraud within SBA programs and will continue to work closely with our law enforcement partners to hold accountable those who exploit these programs.”

As alleged in the Complaint filed in Manhattan federal court:

On or about May 7, 2020, MMC submitted, through its authorized representative, an application for a PPP loan to a financial institution.  MMC was approved for and received a PPP loan in the amount of $6,555,592.00.  In June 2021, MMC, through its authorized representative, applied for forgiveness of most of the PPP loan, and $6,197,696.64 of the PPP loan amount was ultimately forgiven.

MMC indicated on its PPP loan application that it had an average of 482 full-time equivalent employees each month.  MMC also certified, among other things, that it was eligible to receive the loan.

MMC submitted an appendix with its loan application that included audited financial statements (balance sheets, statements of activities, statements of cash flows, and notes to financial statements), tax returns and related schedules, and payroll records.  Within this lengthy appendix, there was a table reflecting that MMC’s full-time and part-time employees exceeded 500 for each month during 2019.  The appendix did not list the location at which the employees worked.

MMC actually employed well over 500 full-time and part-time employees at the time it submitted its loan application.  Further, it had more than 800 full-time and part-time employees for each month in 2019, including those months within the period relevant for determining PPP eligibility.

Under applicable law and regulations, full-time and part-time employees were counted equally for purposes of determining PPP loan eligibility.  The 482-employee total listed on the PPP loan application improperly counted MMC’s part-time employees as one-third of an employee.

When it applied for PPP loan forgiveness in June 2021, MMC misrepresented in its application that it had only 447 employees at the time of its PPP loan application.

MMC violated the False Claims Act by knowingly presenting and making, or causing to be presented and made, false claims and statements in connection with its submission of its PPP loan application and forgiveness application.  Specifically, MMC falsely certified its eligibility for the PPP loan because MMC employed more than 500 employees (in total and at a single location) and was thus ineligible for the loan it received.

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

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

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

United States Attorney for the Southern District of New York, Jay Clayton, announced today that MARK ANGAROLA was sentenced to 38 months in prison for committing two extensive fraud crimes—an $8.3 million embezzlement scheme and a $668,000 tax evasion scheme.  In the embezzlement scheme, ANGAROLA exploited his management position at a tech company to fraudulently enrich himself, his family, and his friends.  Over the course of approximately nine years, ANGAROLA fraudulently billed personal expenses and hired his family and friends to no-show jobs.  In the tax evasion scheme, ANGAROLA did not declare income received from the embezzlement scheme and, for two years, filed no taxes at all.  ANGAROLA previously pled guilty to wire fraud conspiracy and tax evasion before U.S. District Judge Dale E. Ho, who imposed today’s sentence.  Four other members of the embezzlement conspiracy have also pled guilty to date.

“Mark Angarola was the ringleader of a long-running fraud scheme that betrayed the trust of his employer, treated its client like a personal slush fund, and caused millions of dollars in losses to his victims,” said U.S. Attorney Jay Clayton.  “He further harmed the broader community by brazenly evading taxes for years.  Angarola used his position to rip off his employers, clients, and hard-working, tax-paying Americans, and now he’s going to federal prison.”

According to the allegations contained in the Indictment, the Superseding Information to which ANGAROLA pled guilty, and statements made in public filings and in public court proceedings:

The Embezzlement Scheme

From approximately May 2010 through February 2019, ANGAROLA spearheaded a large fraud scheme to unlawfully enrich himself and his co-conspirators (the “Conspirators”) by submitting and causing to be submitted fraudulent invoices and expenses to an information technology (“IT”) services company (the “Contractor”), at which he was employed in a senior position.  In total, the embezzlement scheme caused a loss of more than $8 million.

ANGAROLA was a New York-based Global Account General Manager at the Contractor.  He was responsible for managing the Contractor’s relationship with a particular client, which was a subsidiary of a global financial institution (the “Client”).  The Contractor had a service contract with the Client, pursuant to which the Contractor provided IT support services to the Client at locations across the U.S. The Contractor subcontracted certain of this work to a technology solutions company (the “Subcontractor”).  Pursuant to the agreement between the Contractor and the Subcontractor (the “Subcontract”), the Subcontractor provided certain IT support services directly to the Client in the place of the Contractor.  Angarola was responsible for oversight of the Subcontractor’s performance on the Subcontract, which included approving payment to the Subcontractor on invoices submitted for work purportedly performed and expenses purportedly incurred in the Subcontractor’s performance on the Subcontract.

ANGAROLA abused his position to fraudulently enrich himself, his family, and his friends.  For instance, he arranged for the Subcontractor to hire certain of his family members, friends, and subordinates, despite the fact that these individuals lacked apparent qualifications to perform deskside IT work.  He arranged for the Subcontractor to hire, among others, his wife (a homemaker); his former college roommate (a police sergeant); and his close friends, including a construction manager and the construction manager’s wife, a schoolteacher.  Thereafter, various Conspirators falsely reported to the Subcontractor that they had performed work under the Subcontract and incurred business expenses. ANGAROLA himself personally benefitted from the scheme by circumventing the Contractor’s expense policies by disguising his personal expenses as purported business expenses under the Subcontract. The Subcontractor submitted invoices to the Contractor for the hours purportedly worked and business expenses purportedly incurred by several of the Conspirators, and ANGAROLA, in turn, caused the Contractor to pay the Subcontractor on these fraudulent invoices.  The purported business expenses incurred by several Conspirators, and ultimately paid for by the Contractor at the direction of ANGAROLA, included restaurant meals, hotel stays, transportation fees, a cruise, and gentlemen’s clubs.

Tax Evasion

ANGAROLA also furthered his lavish lifestyle, including his near-daily use of a limousine service, through tax evasion, resulting in a tax loss to the Internal Revenue Service (“IRS”) of approximately $668,000.  For four years, ANGAROLA failed to declare to the IRS the income he derived from his embezzlement scheme.  In two of those years, he did not even file any tax returns.

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In addition to his prison term, ANGAROLA, 52, of Point Lookout, New York, was sentenced to three years of supervised release. ANGAROLA was also ordered to forfeit $2,679,445.26 and pay restitution in the amount of $9,023,444.96.

Mr. Clayton praised the outstanding investigative efforts of the Federal Bureau of Investigation, New York Field Office; the IRS-Criminal Investigation, New York Field Office; and the U.S. Department of Labor – Office of Inspector General, Northeast Regional Office.

This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorney Timothy V. Capozzi and Special Assistant U.S. Attorney Jorge Almonte are in charge of the prosecution.

            United States Attorney for the Southern District of New York, Jay Clayton, Special Agent in Charge of the Special Operations Division of the Drug Enforcement Administration (“DEA”), Louis A. D’Ambrosio, Co-Director of Joint Task Force Vulcan (“JTFV”), Jacob Warren, Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Ricky J. Patel, Special Agent in Charge of the Houston Field Office of the FBI, Douglas Williams, and Special Agent in Charge of the Andean Division of the DEA, Eugene L. Crouch, announced today the unsealing of an Indictment charging HECTOR RUSTHENFORD GUERRERO FLORES, a/k/a “Niño Guerrero,” a/k/a “El Cejón,” a/k/a “El Innombrable,”[1] in connection with GUERRERO FLORES’s leadership role in Tren de Aragua (“TdA” or the “Enterprise”), a transnational criminal organization operating throughout North America, South America, and Europe, which has also been designated as a foreign terrorist organization.  GUERRERO FLORES is currently at large.  The U.S. Department of State is offering rewards of up to $5 million for information leading to the arrest and/or conviction of GUERRERO FLORES.  The case has been assigned to U.S. District Judge Andrew L. Carter, Jr.

“As alleged, Hector Rusthenford Guerrero Flores has been the mastermind of Tren de Aragua’s evolution from a Venezuelan prison gang into a transnational terrorist organization that committed countless acts of violence, extortion, and drug trafficking all over North America, South America, and Europe,” said U.S. Attorney Jay Clayton.  “In the Southern District of New York, we have now charged over 30 members or associates of Tren de Aragua with federal crimes, and we are committed to bankrupting the cartels and transnational gangs who flood our streets with deadly drugs and pursue death, violence and corruption as a way of life.  This is what New Yorkers want, and it is what they deserve.”

“Guerrero Flores operated Tren de Aragua like a multinational crime syndicate—laundering money through cryptocurrency, trafficking drugs by the ton, selling weapons of war, and orchestrating acts of terror across borders,” said DEA Special Agent in Charge Louis A. D’Ambrosio.  “He ran this empire from prison, shielded by corruption, and in collaboration with a narco-state cartel intent on flooding the United States with cocaine.  This case exemplifies today’s threat: criminal organizations that function like terrorists and terrorize like insurgents. DEA and our partners are dismantling them piece by piece—targeting their leadership, finances, weapons, and networks.”

“For more than a decade, as alleged in the Indictment unsealed today, Nino Guerrero has led TdA from its inception as a prison gang in Venezuela to a transnational terrorist organization,” said JTFV Co-Director Jacob Warren.  “TdA has inflicted widespread harm in the United States through extortions, kidnappings, murders, drug trafficking, gun trafficking, prostitution, sex trafficking, robberies, bank burglaries, and money laundering.  The charges unsealed today in the Southern District of New York are directly in line with JTFV’s mission: a collaborative, whole of government effort, to destroy TdA.  We are grateful for our partnership with the U.S. Attorney’s Office for the Southern District of New York and our law enforcement partners who worked tirelessly to investigate and bring these important charges.”          

“As alleged, Niño Guerrero has for decades led one of the fastest-emerging foreign terrorist organizations to encroach upon American soil: Tren de Aragua,” said HSI Special Agent in Charge Ricky J. Patel.  “This reputed leader grew TdA from a Venezuela-based prison gang to the vile, vicious organization it has become.  Together with our partners, HSI and the HSTF New York will continue to wage an unyielding campaign against cartels, drug traffickers, and transnational criminal organizations who seek to sow destruction and death.  Together, we will ensure that no corners of their criminal empires are beyond the reach of justice.”

“Hector Guerrero Flores is the alleged leader of a Venezuelan foreign terrorist organization sowing violence, murder, and misery into communities and nations throughout the Western Hemisphere,” said FBI Houston Special Agent in Charge Douglas Williams.  “Under the leadership of Guerrero Flores, Tren de Aragua translates the suffering and death of thousands into profits for its members.  Tren de Aragua, under the guidance of Guerrero Flores, saw members commit murders; violent robberies; sex trafficking; and weapons and narcotics trafficking impacting communities across the United States.”

“DEA is unwavering in its mission to dismantle the command and control of Tren de Aragua, a designated foreign terrorist organization that thrives on drug trafficking and violence,” said Special Agent in Charge Eugene L. Crouch of the DEA Andean Division.  “For years, TdA has exploited corruption to expand its reach and evade justice, but those days are over. DEA is relentlessly targeting TdA’s leadership, financial networks, and infrastructure, and we will not rest until these individuals are brought to justice.  We are grateful to the Colombian National Police and the Colombian Attorney General’s Office for their invaluable partnership in this investigation.”

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

GUERRERO FLORES and others known and unknown were members and associates of TdA, a criminal organization that operated throughout North America, South America, and Europe, including in the United States, Venezuela, Colombia, Peru, Chile, Brazil, Mexico, and Spain.  TdA—literally meaning “Train from Aragua”—originated in the Venezuelan state of Aragua in the 2000s, and TdA used the Tocorón Prison in Aragua as a center of operations to orchestrate and conduct criminal activities.  TdA was largely composed of persons from South America, mostly from Venezuela.  In the following years, gang members and associates left Venezuela and spread throughout North, South, and Central America and Spain, which expanded TdA’s presence.

TdA members and associates established a presence in other countries in South America, Central America, and the United States by engaging in the following pattern of behavior: First, TdA members and associates infiltrated other countries by illegally crossing their borders and finding cities and other residential neighborhoods where they could easily establish control over civilian populations. Next, TdA members and associates committed crimes and other acts of terrorism to assert control over their territory and enrich themselves through extortions, kidnappings, robberies, murders, drug trafficking, prostitution, sex trafficking, and trafficking of guns, grenades, and ammunition.  Many of the crimes and acts of terrorism committed by TdA members and associates were ordered, directed, facilitated, or otherwise supported by TdA leadership in South America, including GUERRERO FLORES.  Finally, TdA members and associates would spread to other locations, forming cells with their own local leadership and structure.  TdA’s violent tactics often resulted in entire neighborhoods and apartment buildings being subject to TdA’s control.  TdA members and associates laundered the proceeds of their criminal activities, including through cryptocurrency, and transmitted a portion of the proceeds to TdA leadership in South America, including GUERRERO FLORES.

Through this pattern of behavior, TdA members and associates established a strong gang presence in other countries in South America, Central America, North America and Europe, like Colombia, Peru, Chile, Brazil, Mexico and Spain.  TdA members and associates also illegally crossed the border into the United States and established a presence in various parts of the country, including New York, Colorado, New Mexico, Texas, Nebraska, Illinois, and Florida.  As a result, TdA operated as a national and international criminal organization with its members and associates regularly conducting gang activities and acts of terrorism transcending national boundaries across the Western Hemisphere.

TdA members and associates also worked in concert with some of the largest cocaine trafficking organizations in the world, including the Cártel de los Soles, or “Cartel of the Suns.”  The Cártel de los Soles is and, at all relevant times, was, a Venezuelan drug-trafficking organization comprised of high-ranking Venezuelan government officials who corrupted the legitimate institutions of Venezuela to facilitate the importation of tons of cocaine into the United States, including through the use of maritime drug distribution routes with boats and ships carrying hundreds or thousands of kilograms of narcotics, including cocaine.  It is and was the goal of the Cártel de los Soles to “flood” the United States with cocaine, as it has sought to weaponize the drug and inflict its harmful and addictive effects on users in the United States.  Members and associates of the Cártel de los Soles have included, among others, the most powerful politicians in Venezuela, former military officials, and some of the largest and most violent cocaine traffickers in the world.  In turn, certain of these politicians have controlled the locations from which TdA grew in power and influence.  Members and associates of the Cártel de los Soles relied upon corruption and violence as they transported cocaine from Venezuela en route to the United States.  In Venezuela, politicians aided cocaine traffickers by offering them safe passage for their cocaine, protection from arrest, and, at times, the support of the police and military.  And Cártel de los Soles’s cocaine traffickers relied on violence throughout their cocaine distribution route—including the use of firearms, kidnappings, and murder—to protect their cocaine, their distribution networks, and themselves.

For over a decade, GUERRERO FLORES served as either the leader or co-leader of TdA, acting as the mastermind over TdA’s expansion across the Western Hemisphere. During much of that time, GUERRERO FLORES operated from Tocorón Prison, where the Venezuelan government allowed GUERRERO FLORES to control the day-to-day operations of the prison. Under GUERRERO FLORES’s direction, TdA members and associates engaged in a wide range of crimes, including extortions, kidnappings, murders, drug trafficking, gun trafficking, prostitution, sex trafficking, robberies, bank burglaries, and money laundering. GUERRERO FLORES and other high-level leaders of TdA would collect a “causa” or fee from income generated by lower-level members of TdA, thereby enriching themselves from income earned by other TdA members.  As the leader of TdA, while operating from Venezuela and elsewhere, GUERRERO FLORES ordered, directed, facilitated, and supported acts of violence and terrorism transcending national boundaries, including murders, kidnappings, extortions, and maiming against victims located inside and outside the United States.

GUERRERO FLORES and other members and leaders of TdA also worked with several of the largest cocaine traffickers in Venezuela to transport tons of cocaine from Venezuela for eventual distribution in the United States. GUERRERO FLORES both directed and personally facilitated the transportation of this cocaine by supplying teams of heavily armed individuals to protect and transport cocaine shipments for his trafficking partners and associates. These individuals were armed with, among other automatic weapons, AK-47s, MP5s, and AR-15s, as well as grenades.

The cocaine that GUERRERO FLORES helped distribute was manufactured in Colombia and Venezuela. The cocaine shipments were then transported from their point of origin and flown from clandestine airstrips or transported by maritime routes from Venezuela to Central America. From there, drug trafficking associates working with the Venezuelan distributors transported this cocaine north, through Mexico, and across the U.S. border. These drug trafficking associates included members of the largest, most violent, narcotics trafficking organizations in Mexico. At times, GUERRERO FLORES personally accompanied large cocaine loads as they were guarded by teams of armed men, en route to airports or airstrips for transport north and eventual distribution to the United States. GUERRERO FLORES was paid a fee per kilogram transported or received an interest in portions of these massive cocaine shipments in lieu of payment. The traffickers that GUERRERO FLORES worked with moved thousands of kilograms per shipment, multiple times per month, resulting in the distribution of hundreds of tons of cocaine to the United States.

In addition, GUERRERO FLORES also sold firearms to large-scale cocaine traffickers operating out of Venezuela. These traffickers purchased from GUERRERO FLORES automatic weapons including AK-47s, MP5s, and AR-15s, and then used the weapons they purchased from GUERRERO FLORES to protect their cocaine loads.

*                *                *

GUERRERO FLORES, 42, of Venezuela, is charged with participating in a racketeering conspiracy, which carries a maximum sentence of 20 years in prison; conspiracy to provide material support to terrorists, which carries a maximum sentence of 15 years in prison; cocaine importation conspiracy, which carries a maximum sentence of life and a mandatory minimum of 10 years in prison; and using and carrying firearms, machineguns, and destructive devices in furtherance of drug trafficking, which carries a maximum sentence of life and a mandatory minimum of 30 years in prison.

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

Mr. Clayton praised the outstanding investigative work of DEA’s Bilateral Investigations Unit and Bogotá Country Office, HSI New York, FBI Houston, and the New York City Police Department.  Mr. Clayton also thanked Colombia’s Office of the Attorney General; Colombian National Police’s Unified Action Group for Liberty (“GAULA”); Araphoe County District Attorney’s Office; Aurora Police Department in Aurora, Colorado; New York/New Jersey Regional Fugitive Task Force of the U.S. Marshals Service (“USMS”); U.S. Customs and Border Protection’s National Gang Unit and New York Human Intelligence Division; U.S. Immigration and Customs Enforcement’s New York Enforcement and Removal Operations; Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”); the New York City Crime Analysis Center at the New York/New Jersey High Intensity Drug Trafficking Area; the Harris County Sheriff’s Office; and the Houston Police for their assistance with the investigation. 

This case is part of JTFV, which was created in 2019 to eradicate MS-13 and now expanded to target Tren de Aragua, and is comprised of U.S. Attorney’s Offices across the country. Those include Southern and Eastern Districts of New York; Eastern and Western Districts of North Carolina; Eastern and Western Districts of Virginia;  Southern District of Florida; Eastern District of Texas;  Western District of Oklahoma; Northern District of Indiana; and the District of Nevada; , as well as the as well as the Executive Office for U.S. Attorneys  Department of Justice’s National Security Division and the Criminal Division. Additionally, the FBI, DEA, HSI, ATF, USMS, and the Federal Bureau of Prisons are essential law enforcement partners with JTFV. The Justice Department’s Office of International Affairs and the Criminal Division’s Office of Judicial Attaché in Bogotá, Colombia, has also provided significant assistance.

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Justice Department to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.

This case is being handled by the Office’s Violent Organizations & Crime Unit, National Security & International Narcotics Unit, and JTFV. Assistant U.S. Attorneys Nicholas S. Bradley, Andrew K. Chan, Kaylan E. Lasky, Henry L. Ross, Kevin T. Sullivan, Kyle A. Wirshba, and Jun Xiang are in charge of the prosecution, with assistance from Trial Attorneys Jason Harley and Josie Thomas from JTFV. 

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

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

United States Attorney for the Southern District of New York, Jay Clayton, announced today that JOSE CESARI, a/k/a “Cry,” was sentenced to 63 months in prison for conspiring to commit—and committing—theft from interstate or foreign shipments.  Between approximately 2022 and 2024, CESARI led the “Beer Theft Enterprise,” a Bronx-based criminal organization focused on breaking into railyards and beverage distribution facilities throughout the Northeast and stealing beer—primarily Corona and Modelo, shipped from Mexico—to bring back to the Bronx to sell.  CESARI pled guilty in July 2025 before U.S. District Judge Edgardo Ramos, who imposed today’s sentence.

“Jose Cesari led an armed crew that repeatedly targeted railyards and warehouses, stealing massive quantities of beer and treating it like easy money,” said U.S. Attorney Jay Clayton.  “He took part in more than three dozen thefts and recruited others into the scheme.  No more.  Today’s sentence should send a message to anyone who thinks about stealing from businesses in the Southern District of New York: the women and men of this Office take these crimes seriously, and we will not tolerate them.”

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

Between July 2022 and April 2024, the Beer Theft Enterprise carried out dozens of beer thefts, which cumulatively resulted in losses to certain railroad and beverage distribution companies of at least hundreds of thousands of dollars.  During at least one of those thefts, the crew carried a gun.  In a typical theft, the Beer Theft Enterprise operated during the night.  The members of the Beer Theft Enterprise working on a particular night usually assembled in the Bronx before traveling to that night’s target railyard or beverage distribution facility.  Normally, the group brought at least one U-Haul box truck to the target railyard or warehouse to be filled with cases of stolen beer.  Once they arrived at their target location, members of the Beer Theft Enterprise typically broke into the railyard or warehouse, breached the railcar or area containing Corona or Modelo beer, and transported that beer—often hundreds of cases—to their waiting vehicles.  The Beer Theft Enterprise then took the stolen beer back to the Bronx, where it was inspected and made available for sale.  After assisting in a beer theft, each of the participating members of the Beer Theft Enterprise was typically paid hundreds of dollars for the night’s work. 

As the leader of the Beer Theft Enterprise, CESARI participated in more than three dozen beer thefts in Connecticut, Massachusetts, New Jersey, and New York, and recruited other members to the group.  CESARI acted brazenly and without regard for the law.  For example, as shown in the image recovered from CESARI’s phone below, CESARI had his picture taken in the midst of one particular beer theft, scaling a railcar filled with Corona beer and holding a yellow angle grinder: 

CESARI played a crucial role in ensuring the success of the Beer Theft Enterprise.  CESARI regularly used his Instagram account to recruit new members.  For instance, CESARI advertised on social media that he could provide a “police scanner” from the “precinct of your choice with the purchase of train method” and promised recruits “100k in ten days sorry not a month.”

CESARI also frequently bragged about how much money he made from his beer heists.  For example, as shown in the image below, CESARI posted to his Instagram account an image of himself in a Corona t-shirt, and boasted that, while some people “got rich off of corona virus [virus emoji],” he “got rich off coronas [train emoji],” referring to the Corona beer that he had stolen:

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In addition to the prison term, CESARI, 29, of the Bronx, New York, was sentenced to three years of supervised release.  He was also ordered to forfeit $473,710.52 in proceeds from his participation in the Beer Theft Enterprise and make restitution in the amount of $518,710.52.

Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation, the Port Authority Police Department, and the CSX Railroad Police Department. 

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Adam Z. Margulies and Joseph H. Rosenberg are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced that Magdaleno Mendoza was sentenced to 71 months in prison for his role in the large-scale cryptocurrency Ponzi scheme known as IcomTech and for reentering the United States illegally after having been deported.  MENDOZA pled guilty in July 2025 to conspiracy to commit wire fraud and illegal reentry before the Honorable Paul G. Gardephe, who imposed today’s sentence.

A number of MENDOZA’s co-conspirators—David Carmona, IcomTech’s founder; Marco Ruiz Ochoa, IcomTech’s purported CEO; Gustavo Rodriguez, IcomTech’s web developer; and David Brend, Juan Arellano, and Moses Valdez, all senior IcomTech promoters—have been convicted and sentenced separately for their roles in the IcomTech Ponzi scheme.

“As a senior promoter of IcomTech, Mendoza helped prey on Spanish-speaking victims who lacked investment experience, including our fellow New Yorkers,” said U.S. Attorney Jay Clayton.  “By exploiting trust and the promise of ‘crypto,’ he and his co-conspirators stole millions from working-class people.  Today’s sentence provides a measure of justice.”

According to the Indictment, public filings, and public court proceedings:

IcomTech, which launched in mid-2018, was a purported cryptocurrency mining and trading company that promised to earn its victim-investors (“Victims”) profits in exchange for their purchase of purported cryptocurrency-related investment products.  In reality, IcomTech was a multi-level marketing Ponzi scheme.  By at least December 2018, MENDOZA, who previously promoted at least two other similar cryptocurrency Ponzi schemes, was promoting IcomTech and recruiting victim-investors.  MENDOZA was one of the most senior promoters of IcomTech and was in regular contact with IcomTech’s founder, David Carmona. 

MENDOZA and the other promoters of IcomTech falsely promised their respective Victims, among other things, that profits from the company’s cryptocurrency trading and mining would result in guaranteed daily returns on Victims’ investments.  In reality, IcomTech did not engage in cryptocurrency trading or mining for its Investors, and MENDOZA and IcomTech’s other promoters used Victim funds to pay other Victims to further promote the scheme and enrich themselves. MENDOZA and other IcomTech promoters primarily targeted working-class, Spanish-speaking Victims who had little to no prior experience with cryptocurrency.

IcomTech promoters, including MENDOZA, traveled throughout the U.S., where they hosted lavish expos and small community presentations aimed at luring Victims to invest in the schemes, including in the Southern District of New York.  During larger-scale events, IcomTech promoters presented on purported investment products and the compensation plan, encouraged Victims to invest as a means of achieving financial freedom, and boasted about the amount of money they were earning.  IcomTech promoters often showed up in expensive cars and wearing luxury clothing as a way of exhibiting their purportedly legitimate success from IcomTech.  MENDOZA personally hosted IcomTech promotional events at his restaurant in the greater Los Angeles area, where he collected thousands in cash from his Victims as purported IcomTech investments.

Victims invested in IcomTech by purchasing investment products from promoters using cash, checks, wire transfers, and actual cryptocurrency.  Following a Victim’s investment, a Victim would be provided with access to an online portal where the Victim could monitor the purported returns.  While Victims saw “profits” accumulate on the online portal, most Victims were unable to withdraw any of these so-called profits and ultimately lost their entire investments.  By contrast, IcomTech’s promoters, including MENDOZA, siphoned off, in some cases, hundreds of thousands of dollars in Victim funds, which they withdrew as cash, spent on IcomTech promotional expenses, and used for personal expenditures such as luxury goods and real estate.

At least as early as August 2018, Victims who attempted to withdraw money from their online portal accounts had difficulty doing so and, when they complained to promoters, they were met with excuses, delays, and hidden fees, if they were able to make any withdrawals at all.  Despite these complaints, IcomTech promoters, including MENDOZA, continued to promote IcomTech and accept Victims’ investments.  As complaints mounted, IcomTech began offering a proprietary crypto-token for sale as a means of injecting liquidity into IcomTech.  Promoters of the scheme claimed that these tokens, known as “Icoms,” would eventually be worth a significant amount of money when they were accepted by companies for payment for goods and services.  This was false.  In reality, “Icoms” were essentially worthless and resulted in further financial loss to Victims. 

By in or about the end of 2019, IcomTech stopped making payments to Victims and IcomTech collapsed. After IcomTech, MENDOZA moved on to promote at least three other cryptocurrency Ponzi schemes. 

MENDOZA was residing in the United States illegally when he promoted IcomTech and the other cryptocurrency Ponzi schemes. He had been residing in the United States illegally for decades, and had previously been deported or removed four times, including once using a false identity.

*                *                *

In addition to the prison sentence, MENDOZA, 56, a citizen of Mexico, was ordered to pay restitution to victims in the amount of $789,218.94 and forfeiture in the amount of $1,500,000.  He was also ordered to forfeit his interest in his residence in Downey, CA, which was purchased using proceeds from the crime.

Mr. Clayton praised the outstanding investigative work of Special Agents from Homeland Security Investigations’ El Dorado Task Force.  Mr. Clayton also thanked the Securities and Exchange Commission and the Commodity Futures Trading Commission for their assistance.

The case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Michael D. Maimin, T. Josiah Pertz, and Cecilia E. Vogel are in charge of the prosecution. 

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, announced today the unsealing of an Indictment charging JAY LUCAS, the founder and managing partner of Lucas Brand Equity LLC (“LBE”), a private equity fund based in Manhattan, with securities fraud, investment adviser fraud, wire fraud, and money laundering.  The charges in the Indictment arise from an alleged scheme by LUCAS to raise more than $50 million from investors by falsely representing that their money would be invested in early-stage health and wellness companies, when in fact it was diverted to cover personal expenses, promote unrelated ventures, and make Ponzi-like payments to earlier investors.  LUCAS was arrested today and will be presented in the District of New Hampshire.  The case has been assigned to U.S. District Judge Jennifer L. Rochon.

“As alleged, Jay Lucas promised investors he would use their hard-earned money to grow wellness businesses, with everyone sharing in the profits,” said U.S. Attorney Jay Clayton.  “Instead, Lucas allegedly lied, frittered away investor money on personal vanity projects, and betrayed his obligations to his investors.  With the assistance of our dedicated law enforcement partners, our Office will continue to aggressively prosecute fraud in our public and private markets.”

“Jay Lucas allegedly systematically misappropriated millions of dollars from his investors, diverting their money to personal expenses, repayments to other investors, and his wife’s business,” said FBI Assistant Director in Charge Christopher G. Raia.  “As the fund’s managing partner, Lucas’s alleged deceit not only failed to sustain his company’s operations but also betrayed the trust of his clients and employees.  The FBI remains committed to investigating any business executive who abuses their authority to satisfy selfish interests at the cost of others.”

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

LUCAS is the founder and managing partner of LBE and three private funds: Lucas Brand Equity LP (“Fund One”), L.B. Equity Emerging Growth LP (“Fund Two”), and L.B. Equity Wellness Growth L.P. (“Fund Three”).  Since 2017, LUCAS has defrauded investors through fabricated credentials and systematic misappropriation of their funds.

LUCAS falsely claimed to have co-founded a well-known private equity firm, which he did not, eventually prompting a cease-and-desist demand from that firm’s lawyers.  He told investors that LBE’s “core strategy is to invest in these small to mid-size emerging brands, provide value-added services to differentiate them and catalyze growth to a sufficient scale for exit.”  In reality, LUCAS spent investor money on personal expenses including alimony, rent, a vanity newspaper project in his hometown, and political consultants.  He used new investor money to pay earlier investors in Ponzi-like fashion, enriching himself while starving the Funds and portfolio companies of capital.  LUCAS also funneled investor money to Immunocologie, a luxury skincare business run by LUCAS’s wife.  Most purported investments in Immunocologie went to “marketing” expenses, such as parties and trips to luxury resorts where LUCAS’s wife promoted “brand awareness.”  Investors were unaware that LUCAS was using their money to fund his wife’s social calendar, and many investors did not even know that the person operating Immunocologie was married to LUCAS.  Moreover, LUCAS arranged for LBE, not the Funds, to take majority ownership interest in Immunocologie, giving himself and not his clients an equity interest in the business.

LUCAS’s misconduct left the Funds chronically undercapitalized and unable to cover basic fund expenses, including salaries for LBE employees.  When LBE employees confronted LUCAS about his misuse of investor funds, he dismissed their complaints.  Internally, employees continued to express frustration about LUCAS’s misuse of investor money, writing that LUCAS’s spending was “not spending on LBE,” was “literally fraudulent,” and was “a huge betrayal of investor trust and most likely illegal.”  After multiple confrontations, employees feared pressing further would cost them their jobs.

As of the date of this Indictment, none of the Funds’ investments have paid off, and no investors have received returns.  The Funds and their portfolio companies have hemorrhaged cash and been unable to cover basic expenses while LUCAS and his family have taken the Funds’ money to serve their own interests.

*               *                *

LUCAS, 71, of Portsmouth, New Hampshire, was charged in an Indictment with one count of securities fraud, one count of wire fraud, and one count of money laundering, each of which carries a maximum term of 20 years in prison, and one count of investment adviser fraud, which carries a maximum term of five years in prison. 

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

Mr. Clayton praised the outstanding work of the FBI.  Mr. Clayton also thanked the U.S. Securities and Exchange Commission for their assistance and cooperation in the investigation.

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

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

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

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the New York Field Office of Internal Revenue Service-Criminal Investigation (“IRS-CI”), Harry T. Chavis, Jr., announced today the unsealing of an Indictment charging STEVEN HOLTZ, ISRAEL PELLOT, and ALTON SCOTT with conspiracy to defraud the United States and aiding and assisting in the preparation and filing of false federal tax returns.  The charges relate to a tax fraud scheme operated by several tax return preparers of The Holtz Group, Inc. and Zirin Tax Company, Inc., doing business as SL Tax Centers (together, “The Holtz Group” or “Holtz Group”).  HOLTZ is the owner and chief executive officer of The Holtz Group and was the leader of the fraudulent scheme in which tax preparers at The Holtz Group, including HOLTZ, PELLOT, and SCOTT, falsified information on Holtz Group clients’ federal income tax returns in order to fraudulently reduce the tax liability of the clients and improperly increase the tax refunds they claimed from the Internal Revenue Service (“IRS”).  This, in turn, allowed HOLTZ to charge tax preparation fees that were, at times, tens of thousands of dollars and, in some instances, more than one hundred thousand dollars for certain clients.  The case has been assigned to U.S. District Judge Mary Kay Vyskocil.

“As alleged, Steven Holtz led a massive tax fraud scheme that deprived the American people of significant tax revenue,” said U.S. Attorney Jay Clayton. “The false tax returns Holtz and other tax preparers at the Holtz Group are alleged to have filed generated substantial refunds to which clients were not entitled and enormous fees for the firm.  According to the indictment, Holtz funded a lavish lifestyle, including homes in Manhattan and East Hampton, at the expense of the tens of millions of honest, hardworking American taxpayers.  Our Office will have zero tolerance for fraudsters who steal from the public to enrich themselves.”

“For more than a decade, Holtz used the backdrop of a successful and legitimate tax business to hide a fraud that concealed significant income from the IRS,” said IRS-CI Special Agent in Charge Harry T. Chavis, Jr.  “Holtz and his cohorts were creative in their alleged scheme, using various deductions and expenses to evade taxes for their clients.  While Holtz told his clients they should be happy to pay him rather than pay the government, he failed to remind them that the money to the government means benefits for the American people.  Now is the time that they each face justice for their alleged criminal acts.”

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

From at least in or about 2014 through at least in or about 2025, HOLTZ, PELLOT, SCOTT, and other co-conspirators executed a fraudulent scheme led by HOLTZ in which they falsified information on Holtz Group clients’ federal income tax returns.  Each year, Holtz Group clients—at least some of whom have professional degrees and annual income of hundreds of thousands of dollars—met with Holtz Group personnel at one of the Holtz Group’s offices (or, at times, remotely by videoconference and/or telephone).  At these meetings, and during the course of any necessary follow-up discussions, HOLTZ, PELLOT, SCOTT, or other Holtz Group personnel, prepared the clients’ tax returns.

HOLTZ, PELLOT, SCOTT, and others included materially false and fraudulent information on the Holtz Group clients’ tax returns in order to reduce the clients’ tax liabilities or increase their refunds.  The false items included on income tax returns for Holtz Group clients included inflated and fictitious deductions, including but not limited to: itemized deductions, such as charitable contributions and unreimbursed employee expenses; business expense deductions; capital losses, such as deductions for bad debt; losses and expenses from rental real estate businesses and unreimbursed partnership expenses; casualty and theft losses; losses from sales of business property; and losses from sales and other dispositions of capital assets.  These false items were reported on Schedules A, C, D, and E as well as other tax forms.  At times, the defendants also inflated and falsified clients’ income in order to improperly qualify clients for refundable Earned Income Tax Credits and/or fraudulently elected “head of household” filing status for married clients and other clients who did not qualify for that filing status, among other things. 

As the owner of The Holtz Group and its affiliated entities, HOLTZ trained PELLOT, SCOTT, and others on how to falsify tax returns to carry out the scheme.  For example, HOLTZ instructed PELLOT, SCOTT, and others to urge clients to set up business entities, such as partnerships and S Corporations, through the Holtz Group, for which clients paid additional fees.  HOLTZ then directed the return preparers to use these business entities to fraudulently claim additional tax deductions, such as deductions for unreimbursed partnership expenses, meals, travel, gifts, and other expenses.

The Holtz Group based the fees charged to the clients on the amount of purported “tax savings” the firm supposedly generated for clients.  HOLTZ used these purported “tax savings” to justify The Holtz Group’s fees, which were as high as tens of thousands or even more than one hundred thousand dollars for certain clients.  For example, after billing a fee of $175,000 for preparing a client’s 2021 return, HOLTZ emailed the client explaining that the fee charged “is 25% of the tax savings.  Always has been . . . I realize the bill is very high but honestly you sou [sic] should be happy to pay me that rather than paying the government what you owed them . . . [T]he fee is determined by the tax savings, not by your earnings.”  In the same exchange, HOLTZ later went on to state: “You really aren’t paying my fee. The IRS is.”

By filing fraudulent returns on behalf of numerous Holtz Group clients, HOLTZ, PELLOT, SCOTT, and others defrauded the IRS of tax revenue and generated significant revenue for The Holtz Group.  This significant revenue facilitated HOLTZ’s lavish lifestyle, including use of homes in Manhattan and East Hampton.

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Steven Holtz, 63, of New York, New York, and East Hampton, New York, is charged with one count of conspiracy to defraud the United States, which carries a maximum sentence of five years in prison, and 30 counts of aiding and assisting in the preparation of false and fraudulent U.S. individual income tax returns, each of which carries a maximum sentence of three years in prison.

Israel Pellot, 50, of Ormond Beach, Florida, is charged with one count of conspiracy to defraud the United States, which carries a maximum sentence of five years in prison, and 9 counts of aiding and assisting in the preparation of false and fraudulent U.S. individual income tax returns, each of which carries a maximum sentence of three years in prison.

Alton Scott, 33, of Brooklyn, New York, is charged with one count of conspiracy to defraud the United States, which carries a maximum sentence of five years in prison, and 13 counts of aiding and assisting in the preparation of false and fraudulent U.S. individual income tax returns, each of which carries a maximum sentence of three years in prison.

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

Mr. Clayton praised the investigative work of the IRS-CI.

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit and the Department of Justice, Criminal Division, Tax Section.  Assistant U.S. Attorney Matthew Weinberg, Southern District of New York, and Assistant Deputy Chief Jorge Almonte and Trial Attorney Alexandra K. Fleszar of the Criminal Division’s Tax Section 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 set forth herein, constitute only allegations, and every fact described should be treated as an allegation.