Southern District of New York

United States Attorney for the Southern District of New York, Jay Clayton, announced today that CHRISTOPHER REESE, a/k/a “Christopher Eugene Thomas,” was sentenced today to 16.5 years in prison for crimes related to running a bogus legal services business, which defrauded numerous inmates and their family members.  REESE, a nine-time convicted felon who is not a lawyer, deceived his victims into paying him to perform unlicensed legal services for them, including drafting and filing motions in federal courts.  Despite REESE’s repeated promises to get inmates out of prison in exchange for money, courts overwhelmingly denied his motions, while REESE kept the money.  REESE was sentenced to 15 years in prison in connection with his criminal convictions at trial in March of this year, and an additional 18 months for violating the terms of his supervised release in connection with a prior case.  The sentence was imposed by U.S. District Judge Valerie E. Caproni.

“Christopher Reese conned vulnerable people by promising them outcomes in legal cases that he could not deliver and tried to manipulate the federal courts to further his scheme,” said U.S. Attorney Jay Clayton.  “Today’s substantial sentence is a clear reminder: the fraudulent and unauthorized practice of law is a crime.  The public should be on guard against so-called ‘independent paralegals’ or ‘legal assistants’ selling services that only licensed lawyers can provide, without supervision by a licensed lawyer.  Unlicensed practitioners may seem like a bargain, but often leave their clients in far worse circumstances.”

According to the Indictment and the evidence at trial:

For years, REESE ran a scam targeting federal inmates, their family members, and friends.  To carry out his fraud scheme, REESE promised favorable results in criminal cases that he could not actually obtain, rendering legal services he was not authorized to provide in exchange for hefty fees.  REESE styled himself as a “legal assistant” or “paralegal,” but worked without the supervision of a licensed lawyer and offered services that only a lawyer is authorized to provide, including drafting and submitting legal filings in federal courts.  REESE induced prisoners and their family members to pay him by promising beneficial outcomes that he could not guarantee, while knowing—but failing to disclose—that his unlicensed legal practice was illegal. 

REESE promised, for example, that defendants would be “immediately released” based on motions he would file in exchange for fees in the thousands of dollars.  Sometimes REESE also offered to provide a refund if his motions were unsuccessful; but when they failed, REESE kept the money.  When his fraud succeeded, and inmates or their family members paid REESE his fees, REESE engaged in the unauthorized practice of law, by making a business of drafting and filing legal motions and briefs in federal cases, including cases heard by the U.S. District Court for the Southern District of New York and the U.S. Court of Appeals for the Second Circuit at 40 Foley Square in Manhattan, a federal enclave where New York State’s prohibition on the unauthorized practice of law applies via the Assimilative Crimes Act.  To hide his involvement from the courts, REESE wrote the inmate’s name in the signature block of each filing and falsely labeled it as “pro se,” i.e., written by the inmate.   

REESE earned over a million dollars from this scheme, and REESE committed additional crimes in connection with these fraud proceeds.  First, REESE was on supervised release in connection with a separate federal criminal case in this District during most of the scheme.  In connection with his supervision, and in order to avoid paying criminal restitution that he owed, REESE made false statements to the U.S. Probation Office.  Second, REESE laundered the proceeds of his scheme by using a co-conspirator to engage in financial transactions designed to conceal the source and movement of the fees REESE collected from his victims.

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In addition to the prison term, REESE, 57, of East Meadow, New York, was sentenced to three years of supervised release. The district court also imposed a forfeiture judgment of $1 million. 

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. 

The case was prosecuted through the Office’s White Plains Division.  Assistant U.S. Attorneys Josiah Pertz, Kingdar Prussien, and James McMahon 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 the unsealing of an Indictment charging MAX MCDERMOTT with wire fraud and money laundering in connection with his scheme to fraudulently obtain a $10 million loan and then launder and misappropriate the funds, including to repay investors in an attempt to avoid liability during an investigation by the U.S. Securities and Exchange Commission (“SEC”).  MCDERMOTT was arrested today in Newport Beach, California, and will be presented later today in the Central District of California.  The case is assigned to U.S. District Judge Arun Subramanian.

“As alleged, Max McDermott orchestrated a scheme to steal millions by obtaining a loan purportedly to grow two of his companies," said U.S. Attorney Jay Clayton.  "McDermott was already under investigation by the SEC in connection with his operation of a different company, a fact that he concealed from his lender.  He then misappropriated the loan money to help convince the SEC not to sue him.  McDermott’s arrest is a reminder that those who swindle investors get caught and face federal criminal exposure for their conduct.”

“Spurred by a separate investigation, Max McDermott allegedly paid outstanding obligations through a misappropriated $10 million loan intended for future business expansion,” said FBI Assistant Director in Charge Christopher G. Raia.  “The defendant allegedly made repeated attempts to avoid regulatory consequences by creating an illicit repayment system built on deceit and betrayal.  The FBI will never cease to investigate any individual who exploits financial institutions to conceal failed investments and perpetuate dishonest swindles.”

As alleged in the Indictment:[1]

MCDERMOTT is the founder and owner of several companies in the real estate industry.  In late 2020, MCDERMOTT learned that he was under investigation by the SEC for his actions in connection with his real estate lending and investment company.  In an effort to dissuade the SEC from taking enforcement action, MCDERMOTT sought to quickly repay tens of millions of dollars to investors of the company under investigation and, toward that end, borrowed money under false pretenses.  Specifically, MCDERMOTT made false and misleading representations to obtain a $10 million loan purportedly to grow his other businesses.  MCDERMOTT also hid the existence of the SEC’s investigation from his lender and lied about his use of the loan proceeds.  Once MCDERMOTT received the $10 million loan, he laundered the funds to conceal the fact that he was using the money to benefit himself and to help repay investors, rather than use the funds to grow his other businesses as he had falsely claimed.

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MCDERMOTT, 57, of Newport Beach, California, is charged with one count of wire fraud and one count of money laundering, 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 a judge.

Mr. Clayton praised the outstanding work of the FBI.

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Qais Ghafary 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 below constitute only allegations, and every fact described should be treated as an allegation.

United States Attorney for the Southern District of New York, Jay Clayton, announced that ANDRIS PUKKE, a/k/a “Marc Romeo,” a/k/a “Andy Storm,” was sentenced yesterday to eight years in prison by U.S. District Judge J. Paul Oetken for leading a years-long real estate scam in Belize called “Sanctuary Belize,” in which hundreds of victims—many of whom were retirees—were defrauded of approximately $77 million.  

“Hundreds of hard-working Americans—many of them retirees—lost their savings to this brazen fraud,” said U.S. Attorney Jay Clayton.  “Andris Pukke thought he could hide behind foreign land deals and false names, but he was wrong.  This sentence removes a bad actor and serves as a warning to other would-be fraudsters.” 

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

PUKKE directed and controlled Sanctuary Belize, which was a vacation and retirement community under development in Belize.  PUKKE fraudulently induced hundreds of victims to invest more than $100 million in lots in Sanctuary Belize.  Victims purchased lots with the understanding that they would obtain lots in a built-out community that they could use to build retirement homes, vacation homes, or investment properties.  The victims were induced to invest by PUKKE and his salespeople, and a large majority of the victims were never in fact able to build the homes in Sanctuary Belize that they’d hoped for.

PUKKE has prior convictions for mail fraud and obstruction of justice and has a prior $172 million judgment against him from the Federal Trade Commission (“FTC”) in connection with a prior deceptive company he controlled, AmeriDebt.  Knowing that victims would not want to invest in Sanctuary Belize if they were aware of the criminal background of the man who controlled Sanctuary Belize, PUKKE directed his salespeople to lie and say that he was not involved in Sanctuary Belize.  PUKKE used the aliases “Marc Romeo” and “Andy Storm” to conceal his involvement and control of Sanctuary Belize.

PUKKE also directed his salespeople to tell victims that Sanctuary Belize had no debt and that every dollar from victims would go to develop the property.  In fact, Sanctuary Belize had more than $12 million in debt, and PUKKE stole nearly $10 million from Sanctuary Belize for, among other things, the purchase and renovation of a waterfront home, the repayment of a personal loan, personal investments in startup companies, child support payments, purchase of land in the Bahamas, and payments to family and friends.

While under investigation by the United States Attorney’s Office for the Southern District of New York, PUKKE unsuccessfully attempted to induce another individual to create a sham document that he hoped to show prosecutors and the investigating grand jury in an effort to corruptly avoid prosecution.

PUKKE was convicted of wire fraud and obstruction of justice on July 10, 2024.  In connection with his sentencing, victims sent nearly two hundred letters to the Court describing the harm caused to them, including in some cases, the loss of their retirement savings.

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In addition to the prison term, PUKKE, 56, of Newport Beach, California, was sentenced to three years of supervised release.   PUKKE was ordered to forfeit $9,912,396 and was previously ordered in litigation with the FTC to pay restitution to victims of Sanctuary Belize in the amount of $120.2 million.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation. Mr. Clayton also thanked the Federal Trade Commission for their assistance with the case.

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Jeffrey C. Coffman, James McMahon, and Kevin Mead are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that TERRY BROOKS was sentenced to 10 years in prison for illegally possessing ammunition in connection with a November 12, 2023, shooting in which BROOKS shot an innocent bystander in the Bronx, New York.  BROOKS’s sentence was imposed by U.S. District Judge Margaret M. Garnett, who also presided over the guilty plea.

“Terry Brooks armed himself with an arsenal of weapons and shot an innocent bystander on the busy streets of New York City, seriously injuring that person,” said U.S. Attorney Jay Clayton.  “Brooks cannot be in a position to harm or kill other New Yorkers.  Today’s sentence protects New Yorkers from a violent, gun-toting offender and sends a message to anyone considering the same path: New York will not tolerate it.”

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

Between July 2023 and August 2024, BROOKS purchased more than 50 firearm components online and possessed nine firearms, including two privately manufactured and un-serialized “ghost guns.”  On November 12, 2023, while on a public sidewalk in the Bronx, BROOKS used one of those ghost guns, firing a shot at a man with whom BROOKS was having a verbal dispute.  The bullet struck a nearby bystander, hitting her in the abdomen and eventually lodging itself near her spine.  The victim was rushed to a hospital, where she received emergency medical treatment, including surgery.

After obtaining surveillance video footage and other records, officers were able to track and identify BROOKS as the shooter.  On August 14, 2024, officers executed search warrants at BROOKS’s residences and recovered eight firearms, including the ghost guns, together with ammunition and firearm parts.  Ballistics testing established that the shell casing found immediately after the November 2023 shooting had been fired by one of BROOKS’s ghost guns recovered pursuant to these warrants.  The following week, on August 21, 2024, officers arrested BROOKS and recovered a ninth firearm.

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In addition to the prison term, BROOKS, 59, of the Bronx and Brooklyn, New York, was sentenced to three years of supervised release and ordered to pay restitution to the victim of the November 12, 2023, shooting.

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

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Kevin Grossinger and James Mandilk are in charge of the prosecution.

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 that QINGZHOU WANG, a/k/a “Bruce,” and YIYI CHEN, a/k/a “Chiron,” were sentenced to 25 and 15 years in prison, respectively, for fentanyl precursor importation and money laundering offenses.  WANG and CHEN, both nationals of China, were found guilty on February 3, 2025, following a two-week jury trial before U.S. District Judge Paul G. Gardephe, who imposed the sentences.  WANG, who was also convicted of importing a methamphetamine precursor, was sentenced today, September 18, 2025, and CHEN was sentenced on August 22, 2025.

“American families are burying loved ones because of fentanyl and individuals like Qingzhou Wang and Yiyi Chen who unlawfully market and supply the ingredients to make it,” said U.S. Attorney Jay Clayton.  “There is no place to hide for those who callously fuel the fentanyl epidemic, and these sentences—which were only possible because of the extraordinary efforts of the career prosecutors in this Office and our partners at the DEA and abroad—prove it.”

“These executives turned a Chinese chemical company into a pipeline of poison, shipping hundreds of kilos of fentanyl-related precursors into the United States, disguising them as everyday goods, and cashing in through cryptocurrency,” said DEA Administrator Terrance Cole.  “Americans were dying, but they kept selling.  Thanks to DEA and our global partners, they now face justice, and this case sends a clear message: anyone, anywhere in the world who profits from American deaths will be found and held accountable."

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

AMARVEL BIOTECH was a chemical manufacturer based in the city of Wuhan, in Hubei province, China, that exported vast quantities of the precursor chemicals used to manufacture fentanyl and its analogues.

During this investigation, AMARVEL BIOTECH and its principal executive, WANG, its marketing manager, CHEN, and a sales representative, FNU LNU, a/k/a “Er Yang,” a/k/a “Anita” (“YANG”), shipped more than 200 kilograms of precursor chemicals used to make fentanyl and its analogues from China to the U.S.  They shipped the precursors to the U.S. after being told that the chemicals would be used to produce fentanyl in New York, and then they agreed to supply multi-ton shipments of fentanyl precursors despite being told that Americans had died after consuming fentanyl made from the chemicals that the defendants had sold.  In exchange, AMARVEL BIOTECH received tens of thousands of dollars in payment in cryptocurrency.

In or about November 2022, YANG began negotiating the sale of fentanyl and methamphetamine precursors to a DEA confidential source (“CS-1”) posing as a fentanyl trafficker in Mexico with operations in the U.S.  AMARVEL BIOTECH thereafter shipped from China to New York approximately 999.7 grams of the fentanyl precursor 1-boc-4-AP, approximately 1,002.6 grams of the fentanyl precursor 1-boc-4-piperidone, and approximately 893.6 grams of the methamphetamine precursor methylamine.  

In or about March 2023, WANG and CHEN traveled from China to Bangkok, Thailand, to meet with an individual whom CS-1 represented was CS-1’s boss but who was in fact another DEA confidential source (“CS-2”).  During the meeting, WANG and CHEN discussed AMARVEL BIOTECH’s ability to supply ton-quantities of fentanyl precursors to New York for CS-1 and CS-2’s fentanyl manufacturing operation.  After CS-2 stated that CS-2 wanted a different formula for manufacturing fentanyl and that several of CS-2’s American customers had purportedly died, WANG and CHEN advised they had “a lot of customers in America and Mexico” who could provide technical assistance with fentanyl production.                             

After the March 2023 meeting in Bangkok, AMARVEL BIOTECH, WANG, CHEN, and YANG agreed to sell CS-1 and CS-2 approximately 210 kilograms of fentanyl precursors, again in exchange for payment in cryptocurrency.  During an April 10, 2023, video call with WANG and CHEN, CS-2 stated that the approximately 210 kilograms of fentanyl precursors would be used to manufacture approximately 50 to 55 kilograms of fentanyl—an amount that, as noted above, could contain approximately 25 million deadly doses.   

In or about May 2023, AMARVEL BIOTECH, WANG, CHEN, and YANG sent to the U.S. the shipment ordered by CS-1 and CS-2.  On or about May 5, 2023, the DEA retrieved the precursor shipment from a warehouse near Los Angeles, California.  Lab testing confirmed the presence of a precursor chemical for a fentanyl analogue. In an encrypted messaging group chat with CS-1, CS-2, WANG, and CHEN, YANG explained that “New York, the United States, has been strict in checking the precursors of the ‘final product’ some time ago, so for the sake of safety, this time it is sent to California.”

In or about June 2023, WANG and CHEN traveled from China to Fiji to meet again with CS-2.  During the meeting, WANG and CHEN discussed with CS-2 a multi-ton order of fentanyl precursor chemicals.  WANG and CHEN also discussed the need to take additional measures to protect themselves from detection and interdiction of their shipments “because recently American government . . . seized some Mexican group and they followed the routes to China,” where the U.S. Government found “our competitor in China”—an apparent reference to fentanyl-related charges filed in the Southern District of New York and announced in April 2023 against, among others, leadership of the Sinaloa Cartel and certain China-based precursor chemical company executives.

AMARVEL BIOTECH openly advertised online its sale of precursor chemicals for use in manufacturing fentanyl.  Through its website and a host of other storefront sites, AMARVEL BIOTECH targeted precursor chemical customers in Mexico, where drug cartels operate clandestine laboratories and distribute finished fentanyl into and throughout the U.S., including by advertising fentanyl precursors as a “Mexico hot sale,” guaranteeing “100% stealth shipping” abroad, and posting to its websites documentation of AMARVEL BIOTECH shipping chemicals to Culiacan, the home city of the Sinaloa Cartel, one of the dominant drug trafficking organizations in the Western Hemisphere and which is largely responsible for the massive influx of fentanyl into the U.S. in recent years.

AMARVEL BIOTECH also endeavored to thwart law enforcement interdiction of its precursor chemical shipments.  AMARVEL BIOTECH advertised online the business’s ability to use deceptive packaging—such as packaging indicating the contents are dog food, nuts, or motor oil—to ensure “safe” delivery of the illicit contents of such shipments.  During this investigation, law enforcement seized approximately $900,000 in cryptocurrency from accounts tied to AMARVEL BIOTECH and domain names for 12 websites tied to AMARVEL BIOTECH.

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In addition to their respective prison terms, WANG, 37, and CHEN, 33, both of China, were each sentenced to three years of supervised release.  WANG was ordered to forfeit $67,168.25, and CHEN was ordered to forfeit internet domain names for 12 websites previously seized by law enforcement.

Mr. Clayton praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit.  Mr. Clayton also thanked the DEA Bangkok Country Office, DEA Wellington Country Office, DEA Beijing Country Office, DEA Honolulu District Office, DEA New York Organized Crime Drug Enforcement Task Force Strike Force, DEA Riverside District Office, DEA Special Testing Laboratory, the DEA Southwest Laboratory, the Office of International Affairs of the Department of Justice’s Criminal Division, the Royal Thai Police Narcotics Suppression Bureau, the Fiji Police Force Narcotic Bureau, the Fiji Office of the Director of Public Prosecutions, and the U.S. Attorney’s Office for the District of Hawaii for their assistance.

This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Alexander Li and Kevin Sullivan are in charge of the prosecution, with assistance from Paralegal Specialist Sabrina Jim Munoz.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that SANDY CARAZAS-PINEZ was sentenced to 25 years in prison for enticing a minor to engage in illegal sexual activity.  CARAZAS-PINEZ’s sentence was imposed by U.S. District Judge John P. Cronan, who also presided over her guilty plea.

“Sexual exploitation by teachers offends every New Yorker,” said U.S. Attorney Jay Clayton.  “Sandy Carazas-Pinez betrayed her role and, through explicit texts and other means, coerced a 16-year-old into a sexual relationship. Actions of this type by anyone, particularly a teacher or other person of trust, will not be tolerated.”

According to the court documents and statement made during court proceedings:

CARAZAS-PINEZ was a high school teacher at a school for kindergarten through 12th grade students located in Yonkers, New York (“School-1”).  From in or around November 2022 through February 2023, CARAZAS-PINEZ abused her position as a teacher at School-1 by inducing and attempting to induce a student (“Minor Victim-1”) at School-1 into a sexual relationship with CARAZAS-PINEZ.  Minor Victm-1 was 16 years old at the time of the abuse. 

CARAZAS-PINEZ singled out Minor Victim-1 for personal attention at School-1.  In addition, CARAZAS-PINEZ induced Minor Victim-1 to engage in sexual activity with her by leading Minor Victim-1 to believe that they were in a romantic relationship. 

CARAZAS-PINEZ used her personal cellphone to call, text, and video call Minor Victim-1 to arrange sexual encounters and to repeatedly induce Minor Victim-1 to engage in live-streamed sexually explicit conduct while on video calls with CARAZAS-PINEZ.  In text messages with Minor Victim-1, CARAZAS-PINEZ referred to her sexual encounters with Minor Victim-1 and the live depictions of sexually explicit conduct she induced Minor Victim-1 to create as “gifts.”

CARAZAS-PINEZ also used her personal cellphone to send Minor Victim-1 sexually suggestive photographs of herself along with sexually explicit text messages.  After sending the photographs and messages, CARAZAS-PINEZ instructed Minor Victim-1 to delete them and inquired repeatedly as to whether Minor Victim-1 had done so. 

To facilitate their sexual encounters outside the premises of School-1, CARAZAS-PINEZ directed Minor Victim-1 in text messages to obtain day passes from School-1 to be permitted to leave campus. CARAZAS-PINEZ then met Minor Victim-1 at a location near School-1’s campus and drove Minor Victim-1 to another location.  On multiple occasions, while parked in CARAZAS-PINEZ’s car at various locations, including in or around the Bronx, Yonkers, and Staten Island, New York, CARAZAS-PINEZ engaged in sexual intercourse and other sexual acts, and attempted to do so, with Minor Victim-1. 

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In addition to the prison term, CARAZAS-PINEZ, 36, of Bethel, Connecticut, was sentenced to five years of supervised release.

Mr. Clayton praised the efforts of the Federal Bureau of Investigation and the New York City Police Department for their outstanding work in this matter.

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. Attorney Mitzi S. Steiner is in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced that CESAR RAFAEL COELLO DOMINGUEZ was sentenced yesterday to seven years in prison for conspiracy to commit wire fraud and money laundering.  COELLO DOMINGUEZ previously pled guilty on May 21, 2025, before U.S. District Judge Katherine Polk Failla, who imposed yesterday’s sentence.

“Cesar Rafael Coello Dominguez helped steal millions from victims across the U.S.,” said U.S. Attorney Jay Clayton.  “Yesterday, he learned that the women and men of our Office are committed to prosecuting those who defraud hard-working Americans.”

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

COELLO DOMINGUEZ’s participated in a years-long scheme, primarily based in Costa Rica, which operated call centers that targeted and defrauded victims across the U.S. (the “Call Center Scheme”).  From September 2019 to January 2023, COELLO DOMINGUEZ defrauded and laundered at least $12 million from more than 400 victims, many of whom were elderly or otherwise vulnerable.  Members of the Call Center Scheme intentionally targeted victims across the U.S. with promises that the victims had won a nationwide sweepstakes that required the victims to pre-pay certain taxes and fees. Once the members of the Call Center Scheme realized that the victims had become aware that the promised sweepstakes prize was a scam, they would often contact the same victims again—this time masquerading as lawyers or members of U.S. law enforcement—and attempt to trick the same victims into paying even more money into the scheme.  DOMINGUEZ regularly traveled to the U.S. in order to set up dozens of shell bank accounts, which he used to collect millions of dollars of stolen victim funds on behalf of the scheme and transfer those funds back to Costa Rica.

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In addition to the prison term, COELLO DOMINGUEZ, 39, of Heredia, Costa Rica, was sentenced to three years of supervised release.  COELLO DOMINGUEZ was also ordered to forfeit $12 million and to make restitution to victims.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation.  Mr. Clayton also thanked the Department of Homeland Security and the U.S. Postal Inspection Service, who assisted in the investigation.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Georgia V. Kostopoulos is 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 VLADIMIR ARTAMONOV with securities fraud, investment adviser fraud, and wire fraud.  ARTAMONOV was arrested today in Elkridge, Maryland, and will be presented before U.S. Magistrate Judge Douglas R. Miller in the District of Maryland.  The case has been assigned to U.S. District Judge Jennifer L. Rochon. 

“As alleged, Vladimir Artamonov betrayed investors, including friends and former Ivy League classmates, by promising a low-risk, high-return investment strategy, when in fact he gambled away investor money and paid off previous investors to continue his scheme,” said U.S. Attorney Jay Clayton.  “We will continue to protect the investment markets from schemes that may wear the disguise of sophistication, but in the end are just theft.”

“Vladimir Artamonov allegedly misappropriated more than four million dollars in investments from fellow alumni through false assurances of little risk and high reward,” said FBI Assistant Director in Charge Christopher G. Raia.  “The defendant allegedly exploited the prestige of a well-respected university and investment company to unlawfully procure investments, which he used to pay for personal expenses.  The FBI will never tolerate those who seek to financially enrich themselves by betraying the trust and wallets of their investors.”

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

From at least September 2021 through February 2024, ARTAMONOV defrauded numerous investors who participated in an investment opportunity he called “Project Information Arbitrage.”  ARTAMONOV, who graduated from Harvard Business School in 2003 and subsequently worked in the financial services industry, used his professional network to solicit investments from classmates and other alumni of Harvard Business School.  ARTAMONOV represented to investors that he would use their funds to execute an information arbitrage strategy focused on investments by Berkshire Hathaway Inc. (“Berkshire”).  According to ARTAMONOV, due to its reputation, when Berkshire made new investments in publicly traded companies, and those investments became widely known, those companies’ share prices increased significantly.  ARTAMONOV represented to investors that he could identify Berkshire’s new investments ahead of their public disclosure in filings with the U.S. Securities and Exchange Commission by reviewing public insurance company filings made by Berkshire’s affiliates with state regulators.  By identifying Berkshire’s new investments and purchasing securities of those companies before the rest of the market, ARTAMONOV claimed he could achieve significant returns with little associated risk. ARTAMONOV raised in excess of $4 million from investors.

In reality, ARTAMONOV defrauded investors.  Instead of executing the strategy that he had pitched to investors, ARTAMONOV primarily traded in risky short-term options that, for the most part, did not overlap with Berkshire’s investments or otherwise implement the arbitrage opportunity that ARTAMONOV had presented.  ARTAMONOV lost millions of dollars in investor funds, often within days of his receipt of such funds.  ARTAMONOV then concealed those losses from investors while soliciting additional investments and repeatedly claiming that profitable investments were on the horizon.  ARTAMONOV sent messages to one investor assuring him that it was “[a]lmost certain we will make a ton of money” soon, and that they would “brag” about their “crazy gains” at the Harvard Business School reunion. 

When investors eventually demanded the return of their funds, ARTAMONOV repaid old investors with new investors’ funds, or declined to repay investors altogether.  Ultimately, ARTAMONOV returned less than $400,000 to investors.  Of the approximately $4 million he raised for Project Information Arbitrage, ARTAMONOV lost most of the funds or used them to pay for personal expenses, including lodging, food and alcohol, and transportation.

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ARTAMONOV, 46, of Elkridge, Maryland, is charged with one count of securities fraud, which carries a maximum sentence of 20 years in prison; one count of investment adviser fraud, which carries a maximum sentence of five years in prison; and one count of wire fraud, which carries a maximum sentence of 20 years in prison.

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

Mr. Clayton also thanked the New York Attorney General’s Office, which separately filed civil proceedings against ARTAMONOV, and expressed appreciation for the assistance of the U.S. Attorney’s Office for the District of Maryland.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorney Varun A. Gumaste 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 below constitute only allegations, and every fact described should be treated as an allegation.

United States Attorney for the Southern District of New York, Jay Clayton, announced that LIAQUAT CHEEMA, the leader of a fraudulent scheme to defraud New York City (the “City”) in connection with public contracts to perform general contracting work at City homeless shelters, was sentenced yesterday to four years in prison by U.S. District Judge Lorna G. Schofield.  CHEEMA previously pled guilty to conspiracy to commit wire fraud on March 5, 2024, before U.S. Magistrate Judge Ona T. Wang.

“Liaquat Cheema stole millions of dollars in public funds intended to pay for maintenance at homeless shelters in New York City,” said U.S. Attorney Jay Clayton.  “This Office has no tolerance for those who use public contracts intended to aid members of our society-in-need to fraudulently enrich themselves.  We will aggressively pursue anyone who abuses public trust for personal profit.” 

According to the Indictment to which CHEEMA pled guilty, the Complaint, the plea agreement, and statements made in court:  

CHEEMA was the President of AFL Construction Co. Inc. (“AFL”), located in Queens, New York. AFL entered into public contracts with the City worth approximately $12 million to perform general contracting work at homeless shelters located in the City, including in the Southern District of New York.  Pursuant to the contracts, AFL was to perform, among other things, general maintenance, landscaping, roofing, and snow removal at shelter sites.

From at least in or about 2014 through at least in or about 2017, CHEEMA and others used the contracts to fraudulently enrich themselves and steal from the City.  In furtherance of the scheme, CHEEMA and others, among other things, submitted fraudulent invoices and other documentation in support of requests for payment on the contracts, which falsely claimed that workers had performed work on certain projects and inflated amounts paid by the defendants for materials purportedly used on such projects.  These fraudulent invoices and supporting documentation contained, without authorization, the identities of other persons, including the names and, in at least one case, the Social Security number, of purported workers who in fact had not worked on the projects specified in the requests for payment submitted by CHEEMA and others.

CHEEMA and others also obtained tens of thousands of dollars’ worth of Medicaid benefits by repeatedly submitting fraudulent certifications, which underreported their actual incomes and accordingly enabled them to obtain Medicaid benefits for which they were not eligible.  In support of requests for Medicaid benefits, CHEEMA and others repeatedly submitted nearly identical employment letters, which, among other misrepresentations, contained the name and purported signature of a purported “Project Manager” who, in fact, was deceased.  In connection with his guilty plea, CHEEMA agreed to pay back the money misappropriated from Medicaid.

*                *                *

In addition to the prison term, CHEEMA, 65, of East Elmhurst, New York, was sentenced to two years of supervised release and ordered to pay restitution and forfeiture in the amount of $3,267,811.

Mr. Clayton praised the outstanding investigative work of the U.S. Department of Labor Office of Inspector General and the New York City Department of Investigation.

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

United States Attorney for the Southern District of New York, Jay Clayton, announced today that, on September 15, 2025, ROBERT W. LEDERHILGER III was convicted of mail fraud in connection with a years-long, mass-mailing scam.  The defendant was found guilty following a one-week jury trial before U.S. District Judge Andrew L. Carter.

“Robert W. Lederhilger III defrauded tens of thousands of small businesses over the course of more than seven years,” said U.S. Attorney Jay Clayton.  “Lederhilger mailed fake bills for webhosting services to businesses across the country and collected payments from victims without providing them with webhosting—or any other service.  This federal criminal conviction demonstrates that New Yorkers will not tolerate fraud and want those who victimize the public through lies held accountable.”

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

Beginning in 2015, LEDERHILGER operated companies through which he purported to offer webhosting services.  LEDERHILGER designed and executed a scheme in which he mailed, and caused others to mail, over three million mailers that looked like invoices for webhosting services.  LEDERHILGER sent those mailers to, among others, small businesses that already had websites in order to make those businesses believe that LEDERHILGER was their current webhosting provider and that they needed to pay him.  When victim businesses made payments to LEDERHILGER, they received no service in return.  The only thing the victims received was a “renewal” bill a year later, asking for another payment.  Between approximately 2015 and 2021, LEDERHILGER made at least approximately $2.99 million from this scheme.

*                *                *

LEDERHILGER, 44, of Bradenton, Florida, was convicted of one count of mail 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 the judge.

Mr. Clayton praised the outstanding investigative work of the U.S. Postal Inspection Service. 

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Camille L. Fletcher, Getzel Berger, Kevin Grossinger, and Daniel G. Nessim are in charge of the prosecution, with assistance from Paralegal Specialists Christopher Harris and Alexandra LeBaron.

The Justice Department announced today the unsealing of a superseding indictment (the “superseding indictment”) charging 10 members of the designated foreign terrorist organization Tren de Aragua (TdA) with participating in a racketeering conspiracy and committing multiple violent crimes in aid of racketeering.

Keiber Jaen Martinez, also known as “Keybe;” Samuel Gonzalez Castro, also known as “Klei” and “Kley;” Eferson Morillo-Gomez, also known as “Jefferson” and “Efe Trebol;” Keiver Silva-Jimenez, also known as “Josue Reuben Silva,” and “Chuky”; Keineyer Ibarra-Mujica, also known as “Keiner;” and Marlon Farias, also known as “Bili,” were charged with participating in the murders of Claretha LaQuesha Daniels and Justin Lawless on May 24, 2024, in the vicinity of 2290 Davidson Avenue in the Bronx, New York, which also resulted in a third victim being shot and injured. Gonzalez Castro was also charged with participating in the shooting of a rival gang member on Aug. 3, 2024, in the vicinity of Roosevelt Avenue and 90th Street in Queens, New York, which also resulted in an innocent bystander being shot and injured. Six of the 10 defendants charged in the superseding indictment were previously charged with racketeering, firearms, drug, and sex trafficking offenses on April 16. Eight of the defendants are already either in federal custody or state custody. Silva-Jimenez is currently at large. Farias was previously removed from the United States by immigration authorities. The case is assigned to U.S. District Judge Denise L. Cote for the Southern District of New York.

“The Department of Justice is completely committed to destroying Tren De Aragua and bringing its members to justice for their horrific crimes against the American people,” said Attorney General Pamela Bondi. “Today’s indictment reflects our ongoing efforts to dismantle this terrorist organization by any legal means necessary.”

“Tren de Aragua is one of the most violent and ruthless terrorist gangs on planet earth,” said U.S. Department of Homeland Security (DHS) Secretary Kristi Noem. “They murder those who stand against them. Under President Trump’s leadership, we are utilizing a whole-of-government approach to arrest and deport these foreign terrorists. Today’s murder and racketeering indictment is a victory for the rule of law and the American people. Thanks to our collaboration with federal and local partners, Americans can rest easy at night knowing these dangerous terrorists are off our streets. Let me be clear: If you are in this country illegally and break our laws, we will hunt you down, arrest you, and you will never return. That’s a promise.”

“As alleged, these members of Tren de Aragua were illegally present in the United States and committed a series of devastating and horrific crimes, including robberies, sex trafficking, drug trafficking, and the murders of Claretha LaQuesha Daniels and Justin Lawless outside of an apartment building in the Bronx,” said U.S. Attorney Jay Clayton for the Southern District of New York. “We are committed to putting cartels, gangs, and others who poison our children and pursue violence as a way of life out of business. We and our law enforcement partners know that is what New Yorkers want, and it is what they deserve.”

“As demonstrated with today’s allegations, the Tren de Aragua street gang has unleashed a reign of terror in New York, marked by brutal and unforgiving violence that defies humanity,” said Special Agent in Charge Ricky J. Patel of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) New York Field Office. “With ruthless tactics and a disregard for human life, this foreign terrorist organization has become a symbol of unchecked brutality. HSI New York, together with our law enforcement partners, is waging an unyielding offensive against TdA and Anti-Tren, dismantling gang operations piece by piece and pursuing their members with relentless determination. HSI will not rest until this ruthless criminal enterprise is obliterated and the streets are reclaimed from their grip of savagery.”

“Tren de Aragua has been terrorizing New York City streets, causing widespread violence and claiming lives,” said New York City Police Department (NYPD) Commissioner Jessica S. Tisch. “Over the past few months, the NYPD has taken significant action to root out this criminal enterprise and shut down their operations across the city, and today’s indictment reflects our relentless efforts. I want to thank all our law enforcement partners for their continued commitment to making New York City safer.”

According to the allegations contained in the superseding indictment:

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

• Preserving and protecting the power and territory of TdA and its members and associates through acts involving murder, assault, robbery, other acts of violence, and threats of violence, including acts of violence and threats of violence directed at former members and associates of TdA who associated with a splinter organization known as Anti-Tren.
• Enriching the members and associates of TdA through, among other things:
  • The unlawful smuggling of individuals, including young women from Venezuela, into Colombia, Peru and the United States;
  • The sex trafficking of young women (whom members and associates of TdA often refer to as “multadas”) who had been unlawfully smuggled into Peru and the United States;
  • The trafficking of controlled substances, including a mixed substance called “tusi” that contains ketamine;
  • And armed robberies.
• Keeping victims and potential victims in fear of TdA and its members and associates through threats and acts of violence.
• Promoting and enhancing TdA and the reputation and activities of its members and associates.
• Providing assistance to members and associates of TdA who committed crimes for and on behalf of TdA, such as lodging and interstate transportation for members and associates of TdA to flee prosecution.
• Protecting TdA and its members and associates from detection and prosecution by law enforcement authorities through acts of intimidation, threats, and violence against potential witnesses to crimes committed by members of TdA.

Members and associates of TdA transported young women, again often referred to by members and associates of TdA as “multadas,” from Venezuela into Peru and the United States in exchange for debts that the young women would pay back to TdA by engaging in commercial sex work. Members of TdA enforced compliance among these young women by, among other things:

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

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

On May 24, 2024, Jaen Martinez, Gonzalez Castro, Morillo-Gomez, Silva-Jimenez, Ibarra-Mujica, and Farias agreed with others to kill Daniels and Lawless in the vicinity of 2290 Davidson Avenue in the Bronx. Jaen Martinez, Gonzalez Castro, Morillo-Gomez, Silva-Jimenez, Ibarra-Mujica, and Farias then shot and aided and abetted the shooting of Daniels, Lawless, and another victim (Victim-3), which resulted in the deaths of Daniels and Lawless, and multiple non-fatal gunshot wounds to Victim-3. Daniels was 44 years old, and Lawless was 36 years old.

On Aug. 4, 2024, Gonzalez Castro shot and injured a rival gang member from Anti-Tren (Rival-1), a splinter organization of former TdA members, in the vicinity of Roosevelt Avenue and 89th Street in Queens. During the shooting, a bystander (Victim-4) was also shot and injured.

On Sept. 30, 2024, Valero-Calderon, Gonzalez Castro, and Morillo-Gomez committed a gunpoint carjacking and robbery of an employee of a car dealership (Victim-1) in the Bronx.

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

The maximum potential 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.

The Justice Department praised the outstanding investigative work of HSI and NYPD and also thanked the Arapahoe County District Attorney’s Office; the Aurora Police Department in Aurora, Colorado; Joint Task Force Vulcan; the New York/New Jersey Regional Fugitive Task Force of the U.S. Marshals Service (USMS); U.S. Customs and Border Protection’s National Gang Unit and New York Human Intelligence Division; ICE’s Enforcement and Removal Operations New York; the 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.

This case is a part of Joint Task Force Vulcan (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, including the Southern District of New York; the Eastern District of New York; the District of New Jersey; the Northern District of Ohio; the District of Utah; the District of Massachusetts; the Eastern District of Texas; the Southern District of Florida; the Eastern District of Virginia; the Southern District of California; the District of Nevada; the District of Alaska; the Southern District of Texas; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. Additionally, the FBI; Drug Enforcement Administration; HSI; the ATF; USMS; and the Federal Bureau of Prisons have been 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 Neighborhoods.

This case is being handled by attorneys from JTFV and the U.S. Attorney’s Office for the Southern District of New York’s Violent and Organized Crime Unit including 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 superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

COUNT

CHARGE

DEFENDANTS

MAX. PENALTIES

1

Racketeering

conspiracy

18 U.S.C. § 1962(d)

Jarwin Valero-Calderon aka “La Fama,”

Samuel Gonzalez Castro aka “Klei,” and “Kley,”

Eferson Morillo-Gomez aka “Jefferson,” and “Efe Trebol,”

Keiver Silva-Jimenez aka “Josue Reuben Silva,” and “Chuky,”

Keineyer Ibarra-Mujica aka “Keiner,”

Marlon Farias aka “Bili”

Brayan Oliveros-Chero,

Sandro Oliveros-Chero, and

Armando Jose Perez Gonzalez aka “Biblia”

2

Drug trafficking conspiracy

21 U.S.C. § 846

Jarwin Valero-Calderon aka “La Fama,”

Brayan Oliveros-Chero,

Sandro Oliveros-Chero, and

Armando Jose Perez Gonzalez aka “Biblia”

3

Carjacking conspiracy

18 U.S.C. § 371

Jarwin Valero-Calderon aka “La Fama,”

Samuel Gonzalez Castro aka “Klei,” and “Kley,”    

Eferson Morillo-Gomez aka “Jefferson,” and “Efe Trebol,”

4

Carjacking

18 U.S.C. § 2119

Jarwin Valero-Calderon aka “La Fama,”

Samuel Gonzalez Castro aka “Klei,” and “Kley,” and

Eferson Morillo-Gomez aka “Jefferson,” and “Efe Trebol,”

5

Hobbs Act robbery

18 U.S.C. §§ 1951 and 2

Jarwin Valero-Calderon aka “La Fama,”

Samuel Gonzalez Castro aka “Klei,” and “Kley,” and

Eferson Morillo-Gomez aka “Jefferson,” and “Efe Trebol,”

6

Firearm use, carrying, and possession – September 30, 2024

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

Jarwin Valero-Calderon aka “La Fama,”

Samuel Gonzalez Castro aka “Klei,” and “Kley,” and

Eferson Morillo-Gomez aka “Jefferson,” and “Efe Trebol,”

Life in prison

Mandatory minimum penalty of seven years in prison

7

Attempted Hobbs Act extortion

18 U.S.C. §§ 1951 and 2

Jarwin Valero-Calderon aka “La Fama,”

Samuel Gonzalez Castro aka “Klei,” and “Kley,” and

Eferson Morillo-Gomez aka “Jefferson,” and “Efe Trebol,”

8

Firearm use, carrying, and possession – conspiracy

18 U.S.C. § 924(o)

Jarwin Valero-Calderon aka “La Fama,”

Samuel Gonzalez Castro aka “Klei,” and “Kley,” and

Eferson Morillo-Gomez aka “Jefferson,” and “Efe Trebol,”

9

Firearm use, carrying, and possession – conspiracy

18 U.S.C. § 924(o)

Brayan Oliveros-Chero, and

Sandro Oliveros-Chero

10

Firearm use, carrying, and possession

18 U.S.C. § 924(c)(1)(A)(i) and 2

11

Possession of ammunition by an illegal alien

18 U.S.C. §§ 922(g)(5) and 2

12

Possession of a firearm and ammunition by an illegal alien

18 U.S.C. §§ 922(g)(5) and 2

13

Firearm use, carrying, and possession

18 U.S.C. §§ 924(c)(1)(A)(i) and 2

Life in prison

Mandatory minimum penalty of five years in prison

14

Possession of a firearm and ammunition by an illegal alien

18 U.S.C. §§ 922(g)(5) and 2

15

Murder and assault with a dangerous weapon in aid of racketeering – Claretha LaQuesha Daniels

18 U.S.C. §§ 1959(a)(1), (a)(3), and 2

Keiber Jaen Martinez aka “Keybe,”

Samuel Gonzalez Castro aka “Klei,” and “Kley,”

Eferson Morillo-Gomez aka “Jefferson,” and “Efe Trebol,”

Keiver Silva-Jimenez aka “Josue Reuben Silva,” and “Chuky,”

Keineyer Ibarra-Mujica aka “Keiner,” and

Marlon Farias aka “Bili”

Life in prison or death

Mandatory minimum penalty of life in prison

16

Firearms use, carrying, and possession – Claretha LaQuesha Daniels

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

Keiber Jaen Martinez aka “Keybe,”

Samuel Gonzalez Castro aka “Klei,” and “Kley,”

Eferson Morillo-Gomez aka “Jefferson,” and “Efe Trebol,”

Keiver Silva-Jimenez aka “Josue Reuben Silva,” and “Chuky,”

Keineyer Ibarra-Mujica aka “Keiner,” and

Marlon Farias aka “Bili”

Life in prison

Mandatory minimum penalty of 10 years in prison

17

Murder and assault with a dangerous weapon in aid of racketeering – Justin Lawless

18 U.S.C. §§ 1959(a)(1), (a)(3), and 2

Keiber Jaen Martinez aka “Keybe,”

Samuel Gonzalez Castro aka “Klei,” and “Kley,”

Eferson Morillo-Gomez aka “Jefferson,” and “Efe Trebol,”

Keiver Silva-Jimenez aka “Josue Reuben Silva,” and “Chuky,”

Keineyer Ibarra-Mujica aka “Keiner,” and

Marlon Farias aka “Bili”

Life in prison or death

Mandatory minimum penalty of life in prison

18

Firearms use, carrying, and possession – Justin Lawless

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

Keiber Jaen Martinez aka “Keybe,”

Samuel Gonzalez Castro aka “Klei,” and “Kley,”

Eferson Morillo-Gomez aka “Jefferson,” and “Efe Trebol,”

Keiver Silva-Jimenez aka “Josue Reuben Silva,” and “Chuky,”

Keineyer Ibarra-Mujica aka “Keiner,” and

Marlon Farias aka “Bili”

Life in prison

Mandatory minimum penalty of 10 years in prison

19

Attempted murder and assault with a dangerous weapon resulting in serious bodily injury in aid of racketeering – Victim-3

18 U.S.C. §§ 1959(a)(1), (a)(3), and 2

Keiber Jaen Martinez aka “Keybe,”

Samuel Gonzalez Castro aka “Klei,” and “Kley,”

Eferson Morillo-Gomez aka “Jefferson,” and “Efe Trebol,”

Keiver Silva-Jimenez aka “Josue Reuben Silva,” and “Chuky,”

Keineyer Ibarra-Mujica aka “Keiner,” and

Marlon Farias aka “Bili”

20

Firearms use, carrying, and possession – Victim-3

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

Keiber Jaen Martinez aka “Keybe,”

Samuel Gonzalez Castro aka “Klei,” and “Kley,”

Eferson Morillo-Gomez aka “Jefferson,” and “Efe Trebol,”

Keiver Silva-Jimenez aka “Josue Reuben Silva,” and “Chuky,”

Keineyer Ibarra-Mujica aka “Keiner,” and

Marlon Farias aka “Bili”

Life in prison

Mandatory minimum penalty of 10 years in prison

21

Keiber Jaen Martinez aka “Keybe,”

Samuel Gonzalez Castro aka “Klei,” and “Kley,”

Eferson Morillo-Gomez aka “Jefferson,” and “Efe Trebol,”

Keiver Silva-Jimenez aka “Josue Reuben Silva,” and “Chuky,”

Keineyer Ibarra-Mujica aka “Keiner,” and

Marlon Farias aka “Bili”

Life in prison

Mandatory minimum penalty of 10 years in prison

22

Possession of ammunition by an illegal alien

18 U.S.C. §§ 922(g)(5) and 2

Keiber Jaen Martinez aka “Keybe,”

Samuel Gonzalez Castro aka “Klei,” and “Kley,”

Eferson Morillo-Gomez aka “Jefferson,” and “Efe Trebol,”

Keiver Silva-Jimenez aka “Josue Reuben Silva,” and “Chuky,”

Keineyer Ibarra-Mujica aka “Keiner,” and

Marlon Farias aka “Bili”

23

24

Firearms use, carrying, and possession – August 3, 2024, Shooting

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

Life in prison

Mandatory minimum penalty of 10 years in prison

25

Possession of ammunition by an illegal alien

18 U.S.C. §§ 922(g)(5) and 2

Note: A copy of the superseding indictment can be found here.

United States Attorney for the Southern District of New York, Jay Clayton; Attorney General of the United States, Pamela Bondi; Secretary of the Department of Homeland Security (“DHS”), Kristi Noem; 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 today a Superseding Indictment (the “Superseding Indictment”) charging 10 members of the designated foreign terrorist organization Tren de Aragua (“TdA”) with participating in a racketeering conspiracy and committing multiple violent crimes in aid of racketeering.  KEIBER JAEN MARTINEZ, a/k/a “Keybe”; SAMUEL GONZALEZ CASTRO, a/k/a “Klei,” a/k/a “Kley”; EFERSON MORILLO-GOMEZ, a/k/a “Jefferson,” a/k/a “Efe Trebol”; KEIVER SILVA-JIMENEZ, a/k/a “Josue Reuben Silva,” a/k/a “Chuky”; KEINEYER IBARRA-MUJICA, a/k/a “Keiner”; and MARLON FARIAS, a/k/a “Bili,” were charged with participating in the murders of Claretha LaQuesha Daniels and Justin Lawless on May 24, 2024, in the vicinity of 2290 Davidson Avenue in the Bronx, New York, which also resulted in a third victim being shot and injured.  GONZALEZ CASTRO was also charged with participating in the shooting of a rival gang member on August 3, 2024, in the vicinity of Roosevelt Avenue and 90th Street in Queens, New York, which also resulted in an innocent bystander being shot and injured.  Six of the 10 defendants charged in the Superseding Indictment were previously charged with racketeering, firearms, drug, and sex trafficking offenses on April 16, 2025.  Eight of the defendants are already either in federal custody or state custody.  SILVA-JIMENEZ is currently at large.  FARIAS was previously removed from the U.S. by immigration authorities.  The case is assigned to U.S. District Judge Denise L. Cote.

“As alleged, these members of Tren de Aragua were illegally present in the United States and committed a series of devastating and horrific crimes, including robberies, sex trafficking, drug trafficking, and the murders of Claretha LaQuesha Daniels and Justin Lawless outside of an apartment building in the Bronx,” said U.S. Attorney Jay Clayton.  “We are committed to putting cartels, gangs, and others who poison our children and pursue violence as a way of life out of business.  We and our law enforcement partners know that is what New Yorkers want, and it is what they deserve.”

“The Department of Justice is completely committed to destroying Tren De Aragua and bringing its members to justice for their horrific crimes against the American people,” said U.S. Attorney General Pamela Bondi.  “Today’s indictment reflects our ongoing efforts to dismantle this terrorist organization by any legal means necessary.”

“Tren de Aragua is one of the most violent and ruthless terrorist gangs on planet earth,” said DHS Secretary Kristi Noem.  “They murder those who stand against them.  Under President Trump’s leadership, we are utilizing a whole-of-government approach to arrest and deport these foreign terrorists. Today’s murder and racketeering indictment is a victory for the rule of law and the American people.  Thanks to our collaboration with federal and local partners, Americans can rest easy at night knowing these dangerous terrorists are off our streets.  Let me be clear: If you are in this country illegally and break our laws, we will hunt you down, arrest you, and you will never return.  That’s a promise.”

“As demonstrated with today’s allegations, the Tren de Aragua street gang has unleashed a reign of terror in New York, marked by brutal and unforgiving violence that defies humanity,” said HSI Special Agent in Charge Ricky J. Patel.  “With ruthless tactics and a disregard for human life, this foreign terrorist organization has become a symbol of unchecked brutality.  HSI New York, together with our law enforcement partners, is waging an unyielding offensive against TdA and Anti-Tren, dismantling gang operations piece by piece and pursuing their members with relentless determination.  HSI will not rest until this ruthless criminal enterprise is obliterated and the streets are reclaimed from their grip of savagery.”

“Tren de Aragua has been terrorizing New York City streets, causing widespread violence and claiming lives,” said NYPD Commissioner Jessica S. Tisch.  “Over the past few months, the NYPD has taken significant action to root out this criminal enterprise and shut down their operations across the city, and today’s indictment reflects our relentless efforts.  I want to thank all our law enforcement partners for their continued commitment to making New York City safer.”

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

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

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

Members and associates of TdA transported young women, again often referred to by members and associates of TdA as “multadas,” from Venezuela into Peru and the U.S. in exchange for debts that the young women would pay back to TdA by engaging in commercial sex work.  Members of TdA enforced compliance among these young women by, among other things:

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

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

On May 24, 2024, JAEN MARTINEZ, GONZALEZ CASTRO, MORILLO-GOMEZ, SILVA-JIMENEZ, IBARRA-MUJICA, and FARIAS agreed with others to kill Daniels and Lawless in the vicinity of 2290 Davidson Avenue in the Bronx. JAEN MARTINEZ, GONZALEZ CASTRO, MORILLO-GOMEZ, SILVA-JIMENEZ, IBARRA-MUJICA, and FARIAS then shot and aided and abetted the shooting of Daniels, Lawless, and another victim (“Victim-3”), which resulted in the deaths of Daniels and Lawless, and multiple non-fatal gunshot wounds to Victim-3.  Daniels was 44 years old, and Lawless was 36 years old.

On August 4, 2024, GONZALEZ CASTRO shot and injured a rival gang member from Anti-Tren (“Rival-1”), a splinter organization of former TdA members, in the vicinity of Roosevelt Avenue and 89th Street in Queens.  During the shooting, a bystander (“Victim-4”) was also shot and injured.

On September 30, 2024, VALERO-CALDERON, GONZALEZ CASTRO, and MORILLO-GOMEZ committed a gunpoint carjacking and robbery of an employee of a car dealership (“Victim-1”) in the Bronx.

*                *                *

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 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 NYPD.  He also thanked the Arapahoe County District Attorney’s Office; the Aurora Police Department in Aurora, Colorado; Joint Task Force Vulcan; the New York/New Jersey Regional Fugitive Task Force of the U.S. Marshals Service (“USMS”); the U.S. Customs and Border Protection’s National Gang Unit and New York Human Intelligence Division; U.S. Immigration and Customs Enforcement’s New York Enforcement and Removal Operations; the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”); the New York City Crime Analysis Center at the New York/New Jersey High Intensity Drug Trafficking Area.

This case is a part of Joint Task Force Vulcan (“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, including the Southern District of New York; the Eastern District of New York; the District of New Jersey; the Northern District of Ohio; the District of Utah; the District of Massachusetts; the Eastern District of Texas; the Southern District of Florida; the Eastern District of Virginia; the Southern District of California; the District of Nevada; the District of Alaska; the Southern District of Texas; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division.  Additionally, the FBI; DEA; HSI; the ATF; USMS; and the Federal Bureau of Prisons have been 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 and Organized 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 Superseding 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)

JARWIN VALERO-CALDERON,

     a/k/a “La Fama,” 29

SAMUEL GONZALEZ CASTRO,

     a/k/a “Klei,” 

     a/k/a “Kley,” 29

EFERSON MORILLO-GOMEZ,

     a/k/a “Jefferson,” 

     a/k/a “Efe Trebol,” 20

KEIVER SILVA-JIMENEZ, a/k/a “Josue Reuben Silva,” a/k/a “Chuky,” 23

KEINEYER IBARRA-MUJICA, a/k/a “Keiner,” 28, MARLON FARIAS, a/k/a “Bili,” 31

BRAYAN OLIVEROS-CHERO, 29

SANDRO OLIVEROS-CHERO, 26, and

ARMANDO JOSE PEREZ GONZALEZ,

           a/k/a “Biblia,” 30

2

Drug trafficking conspiracy

21 U.S.C. § 846

JARWIN VALERO-CALDERON,

     a/k/a “La Fama,”

BRAYAN OLIVEROS-CHERO,

SANDRO OLIVEROS-CHERO, and

ARMANDO JOSE PEREZ GONZALEZ,

           a/k/a “Biblia”

3

Carjacking conspiracy

18 U.S.C. § 371

JARWIN VALERO-CALDERON,

     a/k/a “La Fama,”

SAMUEL GONZALEZ CASTRO,

     a/k/a “Klei,” 

     a/k/a “Kley,” and

EFERSON MORILLO-GOMEZ,

     a/k/a “Jefferson,” 

     a/k/a “Efe Trebol”

4

Carjacking  

18 U.S.C. § 2119

JARWIN VALERO-CALDERON,

     a/k/a “La Fama,”

SAMUEL GONZALEZ CASTRO,

     a/k/a “Klei,” 

     a/k/a “Kley,” and

EFERSON MORILLO-GOMEZ,

     a/k/a “Jefferson,” 

     a/k/a “Efe Trebol”

5

Hobbs Act robbery

18 U.S.C. §§ 1951 and 2

JARWIN VALERO-CALDERON,

     a/k/a “La Fama,”

SAMUEL GONZALEZ CASTRO,

     a/k/a “Klei,” 

     a/k/a “Kley,” and

EFERSON MORILLO-GOMEZ,

     a/k/a “Jefferson,” 

     a/k/a “Efe Trebol”

6

Firearm use, carrying, and possession – September 30, 2024

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

JARWIN VALERO-CALDERON,

     a/k/a “La Fama,”

SAMUEL GONZALEZ CASTRO,

     a/k/a “Klei,” 

     a/k/a “Kley,” and

EFERSON MORILLO-GOMEZ,

     a/k/a “Jefferson,” 

     a/k/a “Efe Trebol”

Life in prison

Mandatory minimum sentence of seven years in prison

7

Attempted Hobbs Act extortion

18 U.S.C. §§ 1951 and 2

JARWIN VALERO-CALDERON,

     a/k/a “La Fama,”

SAMUEL GONZALEZ CASTRO,

     a/k/a “Klei,” 

     a/k/a “Kley,” and

EFERSON MORILLO-GOMEZ,

     a/k/a “Jefferson,” 

     a/k/a “Efe Trebol”

8

Firearm use, carrying, and possession – conspiracy

18 U.S.C. § 924(o)

JARWIN VALERO-CALDERON,

     a/k/a “La Fama,”

SAMUEL GONZALEZ CASTRO,

     a/k/a “Klei,” 

     a/k/a “Kley,” and

EFERSON MORILLO-GOMEZ,

     a/k/a “Jefferson,” 

     a/k/a “Efe Trebol”

9

Firearm use, carrying, and possession – conspiracy

18 U.S.C. § 924(o)

BRAYAN OLIVEROS-CHERO, and

SANDRO OLIVEROS-CHERO

10

Firearm use, carrying, and possession

18 U.S.C. § 924(c)(1)(A)(i) and 2

BRAYAN OLIVEROS-CHERO, and

SANDRO OLIVEROS-CHERO

11

Possession of ammunition by an illegal alien

18 U.S.C. §§ 922(g)(5) and 2

12

Possession of a firearm and ammunition by an illegal alien

18 U.S.C. §§ 922(g)(5) and 2

13

Firearm use, carrying, and possession

18 U.S.C. §§ 924(c)(1)(A)(i) and 2

ARMANDO JOSE PEREZ GONZALEZ,

           a/k/a “Biblia,”

Life in prison

Mandatory minimum sentence of five years in prison

14

Possession of a firearm and ammunition by an illegal alien

18 U.S.C. §§ 922(g)(5) and 2

ARMANDO JOSE PEREZ GONZALEZ,

           a/k/a “Biblia,”

15

Murder and assault with a dangerous weapon in aid of racketeering – Claretha LaQuesha Daniels

18 U.S.C. §§ 1959(a)(1), (a)(3), and 2

KEIBER JAEN MARTINEZ, 

            a/k/a “Keybe,” 33

SAMUEL GONZALEZ CASTRO, 

            a/k/a “Klei,” 

            a/k/a “Kley,”

EFERSON MORILLO-GOMEZ, 

            a/k/a “Jefferson,”                

            a/k/a “Efe Trebol,”

KEIVER SILVA-JIMENEZ, 

            a/k/a “Josue Reuben Silva,” 

            a/k/a “Chuky,”

KEINEYER IBARRA-MUJICA, 

            a/k/a “Keiner,” and

MARLON FARIAS, 

             a/k/a “Bili,” 

Life in prison or death

Mandatory minimum sentence of life in prison

16

Firearms use, carrying, and possession – Claretha LaQuesha Daniels

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

KEIBER JAEN MARTINEZ, 

            a/k/a “Keybe,”

SAMUEL GONZALEZ CASTRO, 

            a/k/a “Klei,” 

            a/k/a “Kley,”

EFERSON MORILLO-GOMEZ, 

            a/k/a “Jefferson,”                

            a/k/a “Efe Trebol,”

KEIVER SILVA-JIMENEZ, 

            a/k/a “Josue Reuben Silva,” 

            a/k/a “Chuky,”

KEINEYER IBARRA-MUJICA, 

            a/k/a “Keiner,” and

MARLON FARIAS, 

             a/k/a “Bili”

Life in prison

Mandatory minimum sentence of 10 years in prison

17

Murder and assault with a dangerous weapon in aid of racketeering – Justin Lawless

18 U.S.C. §§ 1959(a)(1), (a)(3), and 2

KEIBER JAEN MARTINEZ, 

            a/k/a “Keybe,”

SAMUEL GONZALEZ CASTRO, 

            a/k/a “Klei,” 

            a/k/a “Kley,”

EFERSON MORILLO-GOMEZ, 

            a/k/a “Jefferson,”                

            a/k/a “Efe Trebol,”

KEIVER SILVA-JIMENEZ, 

            a/k/a “Josue Reuben Silva,” 

            a/k/a “Chuky,”

KEINEYER IBARRA-MUJICA, 

            a/k/a “Keiner,” and

MARLON FARIAS, 

             a/k/a “Bili”

Life in prison or death

Mandatory minimum sentence of life in prison

18

Firearms use, carrying, and possession – Justin Lawless

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

KEIBER JAEN MARTINEZ, 

            a/k/a “Keybe,”

SAMUEL GONZALEZ CASTRO, 

            a/k/a “Klei,” 

            a/k/a “Kley,”

EFERSON MORILLO-GOMEZ, 

            a/k/a “Jefferson,”                

            a/k/a “Efe Trebol,”

KEIVER SILVA-JIMENEZ, 

            a/k/a “Josue Reuben Silva,” 

            a/k/a “Chuky,”

KEINEYER IBARRA-MUJICA, 

            a/k/a “Keiner,” and

MARLON FARIAS, 

             a/k/a “Bili”

Life in prison

Mandatory minimum sentence of 10 years in prison

19

Attempted murder and assault with a dangerous weapon resulting in serious bodily injury in aid of racketeering – Victim-3

18 U.S.C. §§ 1959(a)(1), (a)(3), and 2

KEIBER JAEN MARTINEZ, 

            a/k/a “Keybe,”

SAMUEL GONZALEZ CASTRO, 

            a/k/a “Klei,” 

            a/k/a “Kley,”

EFERSON MORILLO-GOMEZ, 

            a/k/a “Jefferson,”                

            a/k/a “Efe Trebol,”

KEIVER SILVA-JIMENEZ, 

            a/k/a “Josue Reuben Silva,” 

            a/k/a “Chuky,”

KEINEYER IBARRA-MUJICA, 

            a/k/a “Keiner,” and

MARLON FARIAS, 

             a/k/a “Bili”

20

Firearms use, carrying, and possession – Victim-3

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

KEIBER JAEN MARTINEZ, 

            a/k/a “Keybe,”

SAMUEL GONZALEZ CASTRO, 

            a/k/a “Klei,” 

            a/k/a “Kley,”

EFERSON MORILLO-GOMEZ, 

            a/k/a “Jefferson,”                

            a/k/a “Efe Trebol,”

KEIVER SILVA-JIMENEZ, 

            a/k/a “Josue Reuben Silva,” 

            a/k/a “Chuky,”

KEINEYER IBARRA-MUJICA, 

            a/k/a “Keiner,” and

MARLON FARIAS, 

             a/k/a “Bili”

Life in prison

Mandatory minimum sentence of 10 years in prison

21

KEIBER JAEN MARTINEZ, 

            a/k/a “Keybe,”

SAMUEL GONZALEZ CASTRO, 

            a/k/a “Klei,” 

            a/k/a “Kley,”

EFERSON MORILLO-GOMEZ, 

            a/k/a “Jefferson,”                

            a/k/a “Efe Trebol,”

KEIVER SILVA-JIMENEZ, 

            a/k/a “Josue Reuben Silva,” 

            a/k/a “Chuky,”

KEINEYER IBARRA-MUJICA, 

            a/k/a “Keiner,” and

MARLON FARIAS, 

             a/k/a “Bili”

Life in prison

Mandatory minimum sentence of 10 years in prison

22

Possession of ammunition by an illegal alien

18 U.S.C. §§ 922(g)(5) and 2

KEIBER JAEN MARTINEZ, 

            a/k/a “Keybe,”

SAMUEL GONZALEZ CASTRO, 

            a/k/a “Klei,” 

            a/k/a “Kley,”

EFERSON MORILLO-GOMEZ, 

            a/k/a “Jefferson,”                

            a/k/a “Efe Trebol,”

KEIVER SILVA-JIMENEZ, 

            a/k/a “Josue Reuben Silva,” 

            a/k/a “Chuky,”

KEINEYER IBARRA-MUJICA, 

            a/k/a “Keiner,” and

MARLON FARIAS, 

             a/k/a “Bili”

23

SAMUEL GONZALEZ CASTRO, 

            a/k/a “Klei,” 

            a/k/a “Kley”

24

Firearms use, carrying, and possession – August 3, 2024, Shooting

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

SAMUEL GONZALEZ CASTRO, 

            a/k/a “Klei,” 

            a/k/a “Kley”

Life in prison

Mandatory minimum sentence of 10 years in prison

25

Possession of ammunition by an illegal alien

18 U.S.C. §§ 922(g)(5) and 2

SAMUEL GONZALEZ CASTRO, 

            a/k/a “Klei,” 

            a/k/a “Kley”

[1] The charges contained in the Superseding 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, and the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, announced today that YUANJUN TANG, a naturalized citizen of the United States and resident of Flushing, Queens, pled guilty to conspiring to act in the United States as an unregistered agent of the People’s Republic of China (“PRC”) before U.S. District Judge John G. Koeltl.  TANG will be sentenced on January 29, 2026.

“For years, Yuanjun Tang abused the trust he had gained among pro-democracy activists in New York City and around the United States by secretly accepting tasks from Chinese intelligence officers and reporting on persons of interest to the PRC and events conducted in support of democracy,” said U.S. Attorney Jay Clayton.  “Tang’s covert operations violated our nation’s sovereignty and threatened the security of New Yorkers exercising their fundamental rights to free speech and free association.  Tang’s plea today illustrates our profound commitment to protecting American ideals from malign foreign influence.”

“Today, Yuanjun Tang admitted that, for years, he willingly acted on orders of the Chinese government to report on the constitutionally protected activities of US-based Chinese dissidents,” said FBI Assistant Director in Charge Christopher G. Raia.  “Tang's betrayal of the ideals of the US to help the Chinese government repress pro-democracy activists goes against the very values he claimed to promote.  The FBI will continue to defend the freedoms enshrined in our Constitution and bring to justice anyone willing to break the law by illegally acting on behalf of a hostile foreign nation.”

As alleged in public court filings, statements at public court proceedings, and the charging documents in the case:

TANG is a former PRC citizen who was imprisoned in the PRC for his activities as a dissident opposing the one-party authoritarian political system controlled by the Chinese Communist Party (“CCP”), the PRC’s sole ruling party, including during the 1989 Tiananmen Square demonstrations.  In 2002, TANG defected to Taiwan, and he was subsequently granted political asylum in the U.S.  He has since resided continuously in New York City, where he has regularly participated in events with fellow PRC dissidents and leads a nonprofit dedicated to promoting democracy in China.

Between at least 2018 and June 2023, TANG acted in the U.S. as an agent of the PRC by gathering information and completing tasks at the direction of the PRC’s Ministry of State Security (“MSS”), which is the PRC’s principal civilian intelligence agency.  The MSS is responsible for, among other things, the PRC’s foreign intelligence, counterintelligence, espionage, and political security functions.

Specifically, TANG regularly received instructions from and reported to an MSS intelligence officer regarding individuals and groups viewed by the PRC as potentially adverse to the PRC’s interests, including prominent U.S.-based Chinese democracy activists and dissidents.  This included providing the MSS information about specific individuals identified by the MSS as persons of interest, as well as naming, photographing, and recording individuals participating in pro-democracy activities in the U.S.  TANG provided the MSS a range of additional information, such as contact information belonging to immigration lawyers based in New York City and details about the process for gaining political asylum in the U.S.

TANG accepted monetary payments for his work and traveled at least three times to Macau and mainland China for face-to-face meetings with MSS intelligence officers, during which he submitted to polygraphs and questioning.  During one of these meetings, he allowed the MSS to install an application on one of his cellphones to facilitate the instantaneous transmission of photographs and other information from his phone to the MSS and accepted a laptop for use in communicating with the MSS.

TANG used a large number of electronic devices and online services to collect or transmit information on behalf of the MSS.  Law enforcement agents recovered specific instructions TANG received from the MSS, including via encrypted methods, as well as photographs, videos, and documents that TANG collected or created for transmission to the MSS. TANG not only provided the MSS information about specific individuals and events but also helped the MSS infiltrate a group chat on an encrypted messaging application used by numerous U.S.-based PRC dissidents and pro-democracy activists to communicate about pro-democracy issues and express criticism of the PRC government.

*                *                *

TANG, 68, of Flushing, Queens, pled guilty to one count of conspiring to act as an agent of a foreign government without notifying the Attorney General, which carries a maximum sentence of five years in prison.

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

Mr. Clayton praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division, and thanked the Department of Justice’s National Security Division, Counterintelligence and Export Control Section, for its assistance.

This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorney Jane Yumi Chong is in charge of the prosecution, with assistance from Trial Attorney Sean O’Dowd of the National Security Division’s Counterintelligence and Export Control Section.

Yuanjun Tang, 68, a naturalized citizen of the United States and resident of Flushing, Queens, pleaded guilty today to conspiring to act in the United States as an unregistered agent of the People’s Republic of China (PRC).

According to court documents, Tang is a former PRC citizen who was imprisoned in the PRC for his activities as a dissident opposing the one-party authoritarian political system controlled by the Chinese Communist Party (CCP), the PRC’s sole ruling party, including during the 1989 Tiananmen Square demonstrations. In 2002, Tang defected to Taiwan, and he was subsequently granted political asylum in the United States. He has since resided continuously in New York City, where he has regularly participated in events with fellow PRC dissidents and leads a nonprofit dedicated to promoting democracy in China.

Between at least 2018 and June 2023, Tang acted in the United States as an agent of the PRC by gathering information and completing tasks at the direction of the PRC’s Ministry of State Security (MSS), which is the PRC’s principal civilian intelligence agency. The MSS is responsible for, among other things, the PRC’s foreign intelligence, counterintelligence, espionage, and political security functions.

Specifically, Tang regularly received instructions from and reported to an MSS intelligence officer regarding individuals and groups viewed by the PRC as potentially adverse to the PRC’s interests, including prominent U.S.-based Chinese democracy activists and dissidents. This included providing the MSS information about specific individuals identified by the MSS as persons of interest, as well as naming, photographing, and recording individuals participating in pro-democracy activities in the U.S. Tang provided the MSS a range of additional information, such as contact information belonging to immigration lawyers based in New York City and details about the process for gaining political asylum in the United States.

Tang accepted monetary payments for his work and traveled at least three times to Macau and mainland China for face-to-face meetings with MSS intelligence officers, during which he submitted to polygraphs and questioning. During one of these meetings, he allowed the MSS to install an application on one of his cellphones to facilitate the instantaneous transmission of photographs and other information from his phone to the MSS and accepted a laptop for use in communicating with the MSS.

Tang used a large number of electronic devices and online services to collect or transmit information on behalf of the MSS. Law enforcement agents recovered specific instructions Tang received from the MSS, including via encrypted methods, as well as photographs, videos, and documents that Tang collected or created for transmission to the MSS. Tang not only provided the MSS information about specific individuals and events but also helped the MSS infiltrate a group chat on an encrypted messaging application used by numerous U.S.-based PRC dissidents and pro-democracy activists to communicate about pro-democracy issues and express criticism of the PRC government.

Tang pleaded guilty to one count of conspiring to act as an agent of a foreign government without notifying the Attorney General, which carries a maximum penalty of five years in prison. Sentencing is scheduled for Jan. 29, 2026. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI New York Field Office is investigating the case.

Assistant U.S. Attorney Jane Yumi Chong for the Southern District of New York and Trial Attorney Sean O’Dowd of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

United States Attorney for the Southern District of New York, Jay Clayton; Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), Frank A. Tarentino; and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of a Complaint charging JESUS JAVIER BRITO RIVERA, JOSE ALEXIS DE LA CRUZ MORA, JOSE ANTONIO DE LA CRUZ MORA, DANY RIVERA SANCHEZ, JOAN ALBERTO TORIBIO TAVAREZ, and FREDDYS RIVERA QUEZADA with conspiracy to distribute and possession with intent to distribute narcotics.  The defendants were arrested Tuesday, September 9, 2025, inside a Bronx apartment while in the middle of processing more than eight kilograms of apparent fentanyl powder, producing thousands of individual packages of the drug for distribution.  Records recovered from within the mill indicate that the defendants conspired over at least a year to sell millions of dollars’ worth of fentanyl.  All six defendants were present in the U.S. without legal status, and one was previously removed from the U.S. after entering the country illegally and later being convicted of another drug distribution offense.  All six defendants were presented before U.S. Magistrate Judge Valerie Figueredo and ordered detained pending trial.

“As alleged, these defendants were caught in the act of packaging and preparing to distribute enough fentanyl to potentially amount to four million deadly doses,” said U.S. Attorney Jay Clayton.  “At the time our law enforcement partners raided this fentanyl mill, fentanyl glassines were drying in the kitchen oven, and the defendants were gathered around individual workstations.  New Yorkers want these mills destroyed and their operators off the streets.  We and our law enforcement partners are committed to that mission.”

“Once again, the DEA and our law enforcement partners successfully shut down a fentanyl mill, resulting in the arrests of six illegal, alleged criminal drug traffickers, and the removal of approximately eight kilograms of fentanyl powder from an apartment building in the Bronx,” said DEA Special Agent in Charge Frank A. Tarentino.  “As we have seen time and again, the Bronx is often exploited by drug trafficking organizations as a hub to transport and distribute their illicit and dangerous narcotics throughout the Northeast corridor of the United States.  This operation eliminated their distribution network and their ability to flood our streets with poison. The DEA remains steadfast in its commitment to protecting our communities and safeguarding our nation.”

“These defendants allegedly turned a Bronx apartment into a full-scale drug den, pumping out thousands of packages of illicit fentanyl for profit,” said NYPD Commissioner Jessica S. Tisch.  “We know how dangerous even a trace amount of fentanyl is, but this staggering amount would have put countless New Yorkers in great danger.  The NYPD will continue to work with our law enforcement partners to identify and dismantle dangerous operations like this.  I am grateful to the NYPD investigators, the DEA, and the U.S. Attorney’s Office for their relentless work to shut this network down and ensure these criminals are brought to justice.”

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

Inside the Bronx apartment searched by law enforcement, officers observed a table that appeared to be set up with four working stations to mix and package apparent fentanyl powder, each lit with a reading lamp and covered in apparent fentanyl dust; a large pile of individually stamped glassines filled with powder, but which had not yet been sealed; another table piled with thousands of wrapped and stamped glassines; two plastic bags filled with white powder; two boxes filled with 17 grinders, themselves filled with powder; numerous scales, boxes of packaging materials, colanders, markers, rubber bands, and MetroCards, all of which appear to have been used to separate, measure, process, and package the powder; and a shopping bag containing hundreds of fully bundled and stamped glassines.  Officers also found glassines and stamps drying inside the kitchen oven and identified a drawer full of stamps used to mark variations of fentanyl being prepared for distribution.  Below are images taken during the search of the mill:

*               *                *

RIVERA, 23; ALEXIS DE LA CRUZ MORA, 23; ANTONIO DE LA CRUZ MORA, 22; SANCHEZ, 34; TAVAREZ, 45; and QUEZADA, 44, all citizens of the Dominican Republic, are charged with one count of conspiracy to distribute narcotics, which carries a maximum sentence of life in prison, and one count of distribution of narcotics, which carries a maximum sentence of life 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 investigative work of the DEA, the NYPD, the New York State Police, and the Essex County Sheriff’s Office Bureau of Narcotics.  Mr. Clayton also thanked the U.S. Attorney’s Office for the District of New Jersey.

The case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorney Ryan T. Nees is in charge of the prosecution.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, announced today an Indictment charging JIAN WU with engaging in a scheme to defraud his employer, a New York-based investment management firm (the “Firm”), by secretly manipulating computer-based algorithmic investment models that were used to execute securities trading strategies at the Firm.  WU is currently a fugitive, and the case has been assigned to U.S. District Judge Paul G. Gardephe.

“As alleged, Jian Wu deceived his employer, a quantitative trading firm, into paying him millions of dollars of unearned compensation,” said U.S. Attorney Jay Clayton.  “Wu’s employer trusted him to act with integrity when creating models for the firm’s use.  Instead, Wu used his technical abilities to cheat his employer out of millions.  This Office will continue to work closely with our law enforcement partners to investigate, detect, and prosecute fraud in the securities markets wherever we find it.”    

“Jian Wu allegedly abused his position to manipulate data models, which resulted in an undeserved multimillion-dollar award for his unlawful actions,” said FBI Assistant Director in Charge Christopher G. Raia.  “In doing so, Wu betrayed the trust of his employer who relied on his expertise.  The FBI continues its steadfast promise to hold accountable those who seek to exploit their positions to generate illicit compensation.”

As alleged in the Indictment:[1]

WU was employed as a modeler at the Firm, a quantitative investment management firm in Manhattan.  In his role, WU designed models for the Firm’s investment vehicles and related funds, using data to build price forecasting models that generated forecasts on stocks and other financial instruments.

Between 2021 and 2023, WU deceived the Firm by manipulating trading models he created in order to increase his own compensation.  Specifically, WU designed models, which were approved and released for use, and then covertly made post-release changes to the models’ parameters, which significantly altered the models’ behavior.  WU also secretly tested his models on data sets that misrepresented how the models would perform once approved and released.  As a result of these changes and misrepresentations, the Firm rewarded WU with an inflated year-end compensation of approximately $23 million.  WU then used a portion of his compensation to purchase a multimillion-dollar apartment in Manhattan.  When the Firm uncovered WU’s scheme, WU made additional unauthorized changes to the models’ parameters in an attempt to conceal his prior tampering.  The Firm fired WU in 2024.

*               *                *

WU, 34, of China, is charged with one count each of wire fraud, securities fraud, and money laundering, each of which carries a maximum sentence of 20 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.  Mr. Clayton also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission, which separately initiated civil proceedings against the defendant today.

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

[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth 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 NADINE MENENDEZ was sentenced to 54 months in prison for bribery, foreign agent, and obstruction of justice offenses.  NADINE MENENDEZ was sentenced for her critical role in a corruption and foreign influence scheme involving her husband, convicted former Senator Robert Menendez, and others.  NADINE MENENDEZ was convicted on April 21, 2025, following a five-week jury trial before U.S. District Judge Sidney H. Stein, who imposed today’s sentence.

“The defendant and her partner in crime, former Senator Robert Menendez, engaged in the most brazen form of public corruption—gold bars, cash, and a luxury car in exchange for a Senator’s power,” said U.S. Attorney Jay Clayton.  “Today’s sentence sends an important message:  our elected officials are not for sale.”

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

Robert Menendez, at all relevant times, was the senior U.S. Senator from New Jersey and held a leadership position on the Senate Foreign Relations Committee (the “SFRC”), first as the Ranking Member and then the Chairman.  Shortly after Robert Menendez began dating his now-wife NADINE MENENDEZ, then known as Nadine Arslanian, in early 2018, NADINE MENENDEZ introduced Robert Menendez to her long-time friend Wael Hana, a New Jersey businessman who was originally from Egypt and maintained close connections with Egyptian officials.  Hana was also a business associate of Fred Daibes, a New Jersey real estate developer and long-time donor to Robert Menendez, and Jose Uribe, who worked in the New Jersey insurance and trucking business.

Between 2018 and 2022, when they learned of the federal investigation, Robert Menendez and NADINE MENENDEZ agreed to and did accept hundreds of thousands of dollars’ worth of bribes from Hana, Daibes, and Uribe.  These bribes included gold, cash, a luxury convertible, payments toward NADINE MENENDEZ’s home mortgage, compensation for a low-or-no-show job for NADINE MENENDEZ, home furnishings, and other things of value.  In June 2022, the Federal Bureau of Investigation (“FBI”) executed a court-authorized search warrant at the New Jersey home of Robert Menendez and NADINE MENENDEZ.  During that search, the FBI found many of the fruits of this bribery scheme.  Over $480,000 in cash—much of it stuffed into envelopes and hidden in clothing, closets, and a safe—was discovered in the home.  Some of the envelopes contained the fingerprints of Robert Menendez or Daibes.  Law enforcement agents also found home furnishings provided by Hana and Daibes, the luxury vehicle paid for by Uribe parked in the garage, and over $100,000 worth of gold bars in the home, which were provided by either Hana or Daibes.

In exchange for these and other things of value, NADINE MENENDEZ and Robert Menendez agreed and promised that Robert Menendez would use his power and influence as a Senator to seek to protect Hana’s, Uribe’s, and Daibes’s interests and to benefit a foreign country.  Through this corrupt relationship, NADINE MENENDEZ and Robert Menendez promised and agreed that Robert Menendez would take a series of official acts.  First, Robert Menendez took actions to benefit the Government of Egypt and Hana, including by seeking to pressure an official at the U.S. Department of Agriculture in an attempt to protect a business monopoly granted to Hana by Egypt, and by secretly representing the interests of Egypt by, among other things, ghostwriting a letter for Egypt to be provided to his own Senate colleagues and providing non-public information and assistance to Egypt.  Second, Robert Menendez took actions seeking to disrupt a criminal investigation undertaken by the Office of the New Jersey Attorney General related to Uribe and his associates.  Third, Robert Menendez recommended that then-President Joseph R. Biden, Jr., nominate a U.S. Attorney for the District of New Jersey whom Robert Menendez believed he could influence to disrupt a federal criminal prosecution undertaken by the U.S. Attorney’s Office for the District of New Jersey of Daibes.  Finally, NADINE MENENDEZ conspired and endeavored to obstruct justice in connection with the federal investigation into this scheme.

*                *                *

In addition to her prison term, NADINE MENENDEZ, 58, of Englewood Cliffs, New Jersey, was sentenced to three years of supervised release and ordered to pay forfeiture of $922,188.10.[1]

Robert Menendez, Hana, and Daibes were convicted on July 16, 2024, following a nine-week jury trial.  Robert Menendez, Hana, and Daibes were sentenced principally to 11 years, more than eight years, and seven years in prison, respectively, for bribery, foreign agent, and obstruction of justice offenses.

Uribe previously pleaded guilty pursuant to a cooperation agreement to conspiracy to commit bribery, conspiracy to commit honest services wire fraud, honest services wire fraud, conspiracy to commit obstruction of justice, obstruction of justice, tax evasion, and wire fraud.  Sentencing for Uribe is scheduled for October 9, 2025.

Mr. Clayton praised the outstanding investigative work of the FBI.  Mr. Clayton also thanked the Internal Revenue Service-Criminal Investigation for its invaluable assistance on the investigation and the Department of Justice’s National Security Division, Counterintelligence and Export Control Section for its support of the case.

This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Eli J. Mark, Paul M. Monteleoni, Lara Pomerantz, Daniel C. Richenthal, and Catherine Ghosh, and Special Assistant U.S. Attorney Christina Clark, are in charge of the prosecution, with the assistance of Paralegal Specialist Shirel Garzon and former Paralegal Specialist Arjun Ahuja.

[1] The Court ruled that NADINE MENENDEZ’s conspiracy for a public official to act as a foreign agent charge was subsumed by the bribery conspiracy count and did not impose a separate sentence for it.

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Ricky J. Patel, announced today the repatriation of a valuable cultural artifact, the Chamisa Humshe Torrah (Five Books of Moses), Venice, Giovanni di Gara, 1588, and Haftarot, 1589, Miniature, 162+60 Leaves (the “Di Gara Text”) to the Jewish Theological Seminary of the University of Jewish Studies in Budapest, Hungary (the “Jewish Theological Seminary”) at a ceremony at the Hungarian Consulate in New York City.  The ceremony was attended by, among others, U.S. Attorney Jay Clayton; Hungarian Ambassador to the United States Szabolcs Takács; Hungarian Consul General Istvan Pasztor; Rector of the Jewish Theological Seminary, Professor Gábor Balázs; and HSI Special Agent in Charge Ricky J. Patel.

“The repatriation of the nearly 450-year-old Di Gara Text to the Jewish Theological Seminary marks the end of the text’s 80-year displacement from its rightful home,” said U.S. Attorney Jay Clayton and HSI Special Agent in Charge Ricky J. Patel.  “The Di Gara Text was looted from the seminary’s holdings during the occupation of Budapest by Nazi forces in 1944 and was found in the Southern District of New York in 2023.  Our offices are honored to have had a role in returning this precious text to where it belongs.”

According to the stipulated facts in the voluntary forfeiture order, statements made in court filings, and relevant online publications:

Giovanni di Gara was a Venetian printer of Hebrew books in the 16th century.  The Di Gara Text is comprised of two works from the Jewish faith: the Chamisa Humshe Torrah (Five Books of Moses), or the Jewish Torah in book form, and the Haftarot, a series of selections from the Hebrew Bible.  An image of the leather-bound Di Gara text is included below.

Lelio Della Torre was an Italian Jewish scholar and rabbi who lived from approximately 1805 to 1871.  At some point during his life, the Di Gara Text came into Della Torre’s personal collection (the “Della Torre Collection” or the “Collection”).  Works in the Della Torre Collection were stamped to indicate that they belonged to the Collection.

In or about 1877, after Della Torre’s death, the Collection was sold to the Jewish Theological Seminary.  In 1944, in the midst of World War II and the Holocaust, Nazi forces invaded Budapest and seized and occupied the Jewish Theological Seminary, looting its holdings.  The Di Gara Text is believed to have disappeared during this period.

In March 2023, Hungarian officials notified the Department of Homeland Security that a volume that appeared to be the Di Gara Text was for sale for $19,000 on www.abebooks.com.  AbeBooks is an online marketplace used by independent vendors to sell, among other things, rare books.  An image of a stamp in the volume was consistent with the stamp used by Della Torre to mark items in his Collection.

In April 2023, Special Agents with HSI seized the Di Gara Text, and, on October 4, 2024, U.S. District Judge Analisa Torres issued an order confirming the forfeiture of the Di Gara Text for the purposes of having this piece of cultural property returned to its rightful historical owner in Hungary.

*                *               *

Mr. Clayton and Mr. Patel praised the outstanding investigative work of Special Agents from HSI’s Cultural Property, Art, and Antiquities Squad.  Mr. Clayton and Mr. Patel also thanked the Government of Hungary and the Hungarian Inspectorate of Cultural Goods for notifying the U.S. Government of the Di Gara Text’s presence in the Southern District of New York, providing helpful information to effectuate its seizure and forfeiture, and hosting today’s repatriation ceremony.

This case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorney Benjamin A. Gianforti is in charge of this matter.

United States Attorney for the Southern District of New York, Jay Clayton, announced that RANDY MILLER and CHAD MILLER, former executives of the Legacy Park sports complex in Mesa, Arizona, were sentenced yesterday to six and five years in prison, respectively, for securities fraud and aggravated identity theft in connection with their scheme to defraud municipal bond investors.  Both defendants previously pled guilty and were sentenced by U.S. District Judge Lewis A. Kaplan. 

“The significant sentences imposed for this municipal bond fraud, along with the parallel civil fraud action by the SEC, reflect the commitment of our Office, the FBI, and the SEC to hold accountable those who exploit the trust of investors,” said U.S. Attorney Jay Clayton.  “Randy and Chad Miller orchestrated a sophisticated scheme that cost bondholders nearly $300 million.  Their scheme undermined confidence in the $4 trillion+ municipal bond market that communities across America depend on to finance essential projects.  We will continue to fight for the integrity and efficiency of the municipal bond market.”

*               *                *

In addition to their prison terms, RANDY MILLER, 70, and CHAD MILLER, 41, were sentenced to three years of supervised release and ordered to pay money judgments in the amounts of $7,289,134.89 and $4,798,980.19.

Mr. Clayton praised the outstanding work of the FBI and thanked the U.S. Securities and Exchange Commission, which resolved a parallel civil action. 

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

United States Attorney for the Southern District of New York, Jay Clayton, announced today that CURTIS ELLINGTON was sentenced to 25 years in prison by U.S. District Judge Philip M. Halpern for his enticement of a 15-year-old minor to engage in sexual activity and for committing this offense while being required to register as a sex offender.

“Children deserve protection from those who would exploit them,” said U.S. Attorney Jay Clayton.  “There is zero tolerance for this heinous conduct.  Our Office will pursue every lead, use every tool, and bring every resource to bear to ensure that predators like Curtis Ellington are removed from our communities.  If you suspect sexual exploitation, please reach out to our law enforcement partners.” 

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

ELLINGTON was convicted on or about January 12, 2007, in Orange County Court of Rape in the 1st Degree: Intercourse with A Person Less Than 11 Years Old and sentenced to seven years in prison.  As a result of this conviction, ELLINGTON was required to register as a sex offender.

On or about April 7, 2023, ELLINGTON, who had traveled to Orange County, New York, from Kansas, slept at the home of a 15-year-old minor (“Victim-1”).  While there, ELLINGTON engaged in sexual activity with Victim-1. Prior to engaging in sexual activity with Victim-1, ELLINGTON engaged in numerous communications with Victim-1 via Instagram in which ELLINGTON discussed his desire to engage in sexual activity with Victim-1. 

Individuals with information concerning the sexual exploitation of children are urged to call 1-800-Call-FBI.

*                *                *

In addition to the prison term, ELLINGTON, 36, of Junction City, Kansas, was sentenced to 15 years of supervised release. 

Mr. Clayton praised the efforts of the Federal Bureau of Investigation, the Middletown Police Department, the Geary County Sheriff’s Office in Junction City, Kansas, the New York State Police, and the U.S. Attorney’s Office for the District of Kansas in connection with this investigation. 

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

Communicado de prensa en espanol.

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 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 NAASÓN JOAQUÍN GARCÍA (“NAASÓN”), ROSA SOSA, AZALIA RANGEL GARCÍA, EVA GARCÍA DE JOAQUÍN, JORAM NÚÑEZ JOAQUÍN, and SILEM GARCÍA PEÑA with sexual, financial, and related criminal conduct victimizing members of the La Luz del Mundo (“LLDM”) Church over many years.  As alleged in the Indictment, the defendants engaged in a racketeering enterprise (the “Joaquín LLDM Enterprise”) that exploited the LLDM Church and persisted for decades to facilitate the systemic sexual abuse of children and women—including the creation of photos and videos of sadistic child sexual abuse.  For decades, the Joaquín LLDM Enterprise operated for the sexual gratification of NAASÓN and his father, the former leader of the Joaquín LLDM Enterprise, Samuel Joaquín Flores (“Samuel”), who died in 2014.

NAASÓN was taken into federal custody earlier today in Chino, California where he is serving a state sentence for the sexual abuse of minors.  GARCÍA DE JOAQUÍN was arrested in Los Angeles this morning and is expected to be presented later today in the Central District of California.  NÚÑEZ JOAQUÍN was arrested outside of Chicago this morning and is expected to be presented later today in the Northern District of Illinois.  SOSA, RANGEL GARCÍA, and GARCÍA PEÑA are at large and believed to be in Mexico.  The U.S. government will seek their arrest and extradition to face these charges in the U.S.  The case is assigned to U.S. District Judge Loretta A. Preska.

“As alleged in the Indictment, for decades, Naasón Joaquín García and the other members of the Joaquín LLDM Enterprise used their position in and the resources of the La Luz Del Mundo Church to sexually abuse girls, boys, and women,” said U.S. Attorney Jay Clayton.  “They exploited the faith of their followers to prey upon them.  When they were confronted, they leveraged their religious influence and financial power to intimidate and coerce victims into remaining silent about the abuse they had suffered.  The Indictment includes charges against those who systemically aided Naasón’s alleged sexual exploitation of teenagers and young women, including creating photos and videos of abuse and other unspeakable criminal conduct.  We commend the victims who have come forward for their extraordinary courage and desire to bring an end to decades of abuse.  This Office will hold Naasón and others who aided this alleged abuse fully accountable.”

“A yearslong investigation that spanned the country and involved the support of dozens of courageous victims culminated with today’s charges stemming from decades of alleged exploitation and outright abuse of young woman and children,” said HSI Special Agent in Charge Ricky J. Patel.  “The defendants are accused of targeting individuals who gave LLDM Church their unquestioning trust and devotion and who in turn endured unimaginable crimes.  Make no mistake, the defendants’ alleged cycle of victimization ends today.  I thank the brave survivors who provided law enforcement with vital information related to these allegations, and I encourage others with helpful information to do the same.”

“Behind the legitimacy of a church and their many believing congregants, Naasón and his co-conspirators built an alleged criminal empire on the sexual abuse of women and children,” said IRS-CI Special Agent in Charge Harry T. Chavis, Jr.  “This illicit enterprise hid in the shadows of La Luz del Mundo church while engaging in sex trafficking, child pornography, forced labor, and unlawful financial dealings.  Each person involved is complicit in promoting then hiding these insidious acts, but it is this investigation that will bring all the years of mistreatment and sexual abuses to light.  IRS-CI and HSI special agents partnered on this case and worked closely with the U.S. Attorney for the Southern District of New York to bring Naasón and his co-conspirators’ alleged crimes out of the dark for all the world to see.”

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

For decades, in the United States, Mexico, and elsewhere around the world, NAASÓN, SOSA, RANGEL GARCÍA, GARCÍA DE JOAQUÍN, NÚÑEZ JOAQUÍN, and GARCÍA PEÑA abused the power, doctrine, and structure of the LLDM Church to threaten, coerce, and sexually abuse girls, boys, and women in the LLDM Church; to engage in financial crimes; and to obstruct criminal investigations into their misdeeds.  These defendants and their co-conspirators were part of the Joaquín LLDM Enterprise that carried out this scheme over the course of decades, abusing generations of Church members and then destroying evidence to evade detection by law enforcement. The defendants and their co-conspirators used the LLDM Church as a vehicle to commit sex trafficking of women and children; to induce victims, including minors, to travel to engage in forced and unlawful sex acts; to produce, receive, distribute, and possess child pornography; to employ forced labor of Church members; to illegally structure cash transactions and bulk cash smuggling; and to obstruct justice to hide their crimes.

NAASÓN, the leader of the Enterprise, managed a close circle of co-conspirators who facilitated his abuse of teenagers and young women. NAASÓN also directed his co-conspirators to produce images and videos of child sexual abuse and send them to him for his own sexual gratification.  Law enforcement has seized many of these images and videos depicting the sexual abuse of minors that were created at NAASÓN’s direction. NAASÓN also instructed co-conspirators to select young teenagers in his church for abuse and to systematically introduce the minors to NAASÓN’s illegal sexual desires through personal interactions with NAASÓN under the guise of Church activities.

NAASÓN and his co-conspirators manipulated the doctrine of the LLDM Church to facilitate this abuse.  Through LLDM doctrine, NAASÓN and his co-conspirators developed a culture of unquestioning faith and obedience to NAASÓN, including by teaching congregants from birth that they would be eternally damned and ostracized from their family and friends in the community if they did not obey NAASÓN or if they questioned him.  NAASÓN leveraged that fear to prevent the many teenagers and young women on whom he preyed from rejecting his sexual advances and from reporting the sexual abuse to law enforcement.

NAASÓN’s exploitation of the church and its members follows a deeply disturbing tradition established by his father (Samuel Joaquín Flores) and his grandfather (Eusebio Joaquín González, known as “Aarón”), who founded the church in Guadalajara, Mexico, in approximately 1926.  Beginning with Aarón and continuing with Samuel and then NAASÓN, each member of the Joaquín family who has served as the leader or “Apostle” has taken advantage of his position of power and control over the LLDM Church to sexually abuse, exploit, and rape its congregants.  Each leader manipulated girls and young women by conveying that they could earn a special “blessing” by serving him, which often ultimately included sexual activity, including oral sex, manual stimulation, and ultimately, penetrative sex with the victims.  This abuse occurred over the course of generations.

SOSA was one of the principal co-conspirators of Samuel and groomed for his sexual abuse and directly herself sexually abused many minors and young women for years, which grooming continued after NAASÓN became the leader of the Joaquín LLDM Enterprise.

GARCÍA DE JOAQUÍN, Samuel’s wife and NAASÓN’s mother, groomed for her husband’s sexual abuse and directly herself sexually abused minors and young women, similarly for years.

RANGEL GARCÍA was one of the principal co-conspirators of NAASÓN and groomed for his sexual abuse and directly herself sexually abused multiple minors and young women for years.

NAASÓN and other members of the Joaquín LLDM Enterprise have also corruptly used LLDM Church congregants’ money to fund NAASÓN’s sexual abuse.  Many congregants made financial contributions to the LLDM Church on the belief that their money would fund legitimate Church activities in the U.S.; in Mexico, where the Church is based; and in multiple other countries around the world where the Church is active.

NAASÓN used these donations to fund international travel, including expensive flights and hotels, for himself, his family, and young women he and his co-conspirators arranged to travel with NAASÓN to ensure he always had someone available to sexually abuse.  NAASÓN and his co-conspirators also used the funds to purchase sex toys used in the abuse and cleaning supplies to destroy evidence of the sexual abuse.  NAASÓN also used donations to fund his lavish lifestyle, including expensive cars, jewelry, clothing, luxury vacations, and private jet charters.

NAASÓN and his co-conspirators have threatened and punished victims and destroyed evidence to prevent law enforcement from discovering their crimes. After NAASÓN was arrested in California in 2019 on state charges related to his sexual abuse of LLDM children and young women, members of the Joaquín LLDM Enterprise executed a scheme to pressure survivors of his sexual abuse into falsely stating that NAASÓN did not abuse them.  NAASÓN’s co-conspirators, acting at his direction, punished those who tried to speak out.  Members of the Joaquín LLDM Enterprise also destroyed evidence, which included shredding paper files, setting evidence on fire, and submerging electronic devices in water.

NÚÑEZ JOAQUÍN falsely held himself out as a lawyer working on behalf of the LLDM Church, and he used that position to prevent and attempt to prevent victims of sexual abuse from reporting the abuse to law enforcement.  GARCÍA PEÑA acted as the head of public relations for NAASÓN and the LLDM Church and abused that position to prevent victims of sexual abuse from reporting the abuse to law enforcement.

This investigation is ongoing. If you have been victimized by the defendants in any way or have any information about their alleged illegal behavior, please call 212-637-1033 or email USANYS.LLDM@usdoj.gov.

*                *               *

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

The statutory minimum and maximum penalties 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 special agents of HSI and IRS-CI.  Mr. Clayton also thanked HSI Riverside, HSI Los Angeles, HSI Chicago, IRS Los Angeles, the New York City Police Department, the Los Angeles County Sheriff’s Department, the Riverside Sheriff’s Office, the Redlands Police Department, the San Bernardino County Sheriff’s Office, the Drug Enforcement Administration (“DEA”), the Complex Analytics and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area, the U.S. Attorney’s Offices for the Central District of California and the Northern District of Illinois, the U.S. Department of Justice’s Office of International Affairs, and the Government of Mexico for their assistance.

This case is being handled by the Office’s Violent & Organized Crime Unit.  Assistant U.S. Attorneys Ryan W. Allison, Lisa Daniels, Elizabeth A. Espinosa, and Michael R. Herman 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

Maximum Penalty

NAASÓN JOAQUÍN GARCÍA, 56

ROSA SOSA, 59

AZALIA RANGEL GARCÍA, 46

EVA GARCÍA DE JOAQUÍN, 79

JORAM NÚÑEZ JOAQUÍN, 37

SILEM GARCÍA PEÑA, 43

Life in prison for NAASÓN, SOSA, RANGEL GARCÍA, and GARCÍA DE JOAQUÍN;

20 years in prison for NÚÑEZ JOAQUÍN, and GARCÍA PEÑA.

NAASÓN JOAQUÍN GARCÍA

ROSA SOSA

AZALIA RANGEL GARCÍA

EVA GARCÍA DE JOAQUN

Life in prison

10 years mandatory minimum

NAASÓN JOAQUÍN GARCÍA

AZALIA RANGEL GARCÍA

Life in prison

10 years mandatory minimum

NAASÓN JOAQUÍN GARCÍA

AZALIA RANGEL GARCÍA

NAASÓN JOAQUÍN GARCÍA

AZALIA RANGEL GARCÍA

30 years in prison

15 years mandatory minimum

NAASÓN JOAQUÍN GARCÍA

AZALIA RANGEL GARCÍA

Life in prison

20 years mandatory minimum

[1] As the introductory phase 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.

English version of release.

El Fiscal federal del Distrito Sur de Nueva York, Jay Clayton; El agente especial a cargo de la Oficina Local de Investigaciones de Seguridad Nacional (HSI) en Nueva York, Ricky J. Patel; y el agente especial a cargo de la Oficina Local de Investigaciones Criminales del Servicio de Impuestos Internos (IRS-CI) en Nueva York, Harry T. Chavis, Jr., anunciaron hoy la revelación de una acusación formal contra NAASÓN JOAQUÍN GARCÍA («NAASÓN»), ROSA SOSA, AZALIA RANGEL GARCÍA, EVA GARCÍA DE JOAQUÍN, JORAM NÚÑEZ JOAQUÍN y SILEM GARCÍA PEÑA por conducta sexual, financiera y delictiva relacionada con la victimización de miembros de la Iglesia La Luz del Mundo (LLDM) durante muchos años.  Según se alega en la acusación formal, los acusados participaron en una organización criminal (la «Empresa Joaquín LLDM») que abusó de la Iglesia LLDM y persistió durante décadas para facilitar el abuso sexual sistemático de niños y mujeres, incluyendo la creación de fotos y vídeos de abusos sexuales sádicos a menores.  Durante décadas, la Empresa Joaquín LLDM operó para la gratificación sexual de NAASÓN y su padre, el antiguo líder de la Empresa Joaquín LLDM, Samuel Joaquín Flores («Samuel»), fallecido en 2014.

NAASÓN fue detenido hoy por las autoridades federales en Chino, California, donde cumple una condena estatal por abuso sexual de menores.  GARCÍA DE JOAQUÍN fue detenido esta mañana en Los Ángeles y se espera que comparezca hoy mismo ante el Distrito Central de California.  NÚÑEZ JOAQUÍN fue detenido esta mañana en las afueras de Chicago y se espera que comparezca hoy mismo ante el Distrito Norte de Illinois.  SOSA, RANGEL GARCÍA y GARCÍA PEÑA siguen en libertad y se cree que se encuentran en México.  El Gobierno de los Estados Unidos solicitará su detención y extradición para que se enfrenten a estos cargos en los Estados Unidos.  El caso ha sido asignado al juez federal de distrito Loretta A. Preska. 

«Según se alega en la acusación, durante décadas, Naasón Joaquín García y los demás miembros de la Empresa Joaquín LLDM utilizaron su posición y los recursos de la iglesia La Luz Del Mundo para abusar sexualmente de niñas, niños y mujeres», afirmó el fiscal federal Jay Clayton.  «Se aprovecharon de la fe de sus seguidores para abusar de ellos. Cuando se les confrontó, utilizaron su influencia religiosa y su poder financiero para intimidar y coaccionar a las víctimas para que guardaran silencio sobre los abusos que habían sufrido.  La acusación incluye cargos contra quienes ayudaron sistemáticamente a Naasón en la presunta explotación sexual de adolescentes y mujeres jóvenes, incluyendo la creación de fotos y vídeos de los abusos y otras conductas delictivas indescriptibles.  Elogiamos a las víctimas que han dado un paso al frente por su extraordinario valor y su deseo de poner fin a décadas de abusos.  Esta Oficina exigirá responsabilidades a Naasón y a otras personas que ayudaron en estos presuntos abusos».

«Una investigación de varios años que abarcó todo el país y contó con el apoyo de docenas de valientes víctimas culminó con los cargos presentados hoy, derivados de décadas de presunta explotación y abuso descarado de mujeres jóvenes y niños», dijo el agente especial a cargo de HSI, Ricky J. Patel. «Los acusados están acusados de atacar a personas que dieron a la Iglesia LLDM su confianza y devoción incondicional y que, a cambio, sufrieron crímenes inimaginables.  Que no quepa duda: el presunto ciclo de victimización de los acusados termina hoy. Agradezco a las valientes sobrevivientes que proporcionaron a las fuerzas del orden, información vital relacionada con estas acusaciones, y animo a otras personas que tengan información útil a que hagan lo mismo».

«Tras la legitimidad de una iglesia y sus numerosos feligreses creyentes, Naasón y sus cómplices construyeron un presunto imperio criminal basado en el abuso sexual de mujeres y niños», afirmó Harry T. Chavis, Jr., agente especial a cargo de IRS-CI.   «Esta empresa ilícita se ocultaba en las sombras de la iglesia La Luz del Mundo mientras se dedicaba al tráfico sexual, la pornografía infantil, el trabajo forzoso y las transacciones financieras ilegales. Todas las personas involucradas son cómplices de promover y luego ocultar estos actos insidiosos, pero es esta investigación la que sacará a la luz todos los años de maltrato y abusos sexuales. Los agentes especiales del IRS-CI y del HSI colaboraron en este caso y trabajaron en estrecha colaboración con el fiscal federal del Distrito Sur de Nueva York para sacar a la luz los presuntos delitos de Naasón y sus cómplices para que todo el mundo los vea».

Según se alega en la acusación y en los documentos hechos públicos en el tribunal: [1]

Durante décadas, en Estados Unidos, México y otros lugares del mundo, NAASÓN, SOSA, RANGEL GARCÍA, GARCÍA DE JOAQUÍN, NÚÑEZ JOAQUÍN y GARCÍA PEÑA abusaron del poder, la doctrina y la estructura de la Iglesia LLDM para amenazar, coaccionar y abusar sexualmente de niñas, niños y mujeres de la Iglesia LLDM; para cometer delitos financieros; y para obstruir las investigaciones penales sobre sus fechorías.  Estos acusados y sus cómplices formaban parte de la Empresa Joaquín LLDM, que llevó a cabo este plan durante décadas, abusando de generaciones de miembros de la Iglesia y destruyendo luego las pruebas para evadir la detección por parte de las fuerzas del orden.  Los acusados y sus cómplices utilizaron la Iglesia LLDM como vehículo para cometer tráfico sexual de mujeres y niños; para inducir a las víctimas, incluyendo menores, a viajar y a participar en actos sexuales forzados e ilegales; para producir, recibir, distribuir y poseer pornografía infantil; para emplear la mano de obra forzada de miembros de la Iglesia; para estructurar ilegalmente transacciones en efectivo y contrabando de grandes cantidades de dinero en efectivo; y para obstruir la justicia con el fin de ocultar sus delitos.

NAASÓN, el líder de la empresa, dirigía un círculo cercano de cómplices que facilitaban su abuso de adolescentes y mujeres jóvenes. NAASÓN también ordenaba a sus cómplices que produjeran imágenes y vídeos de abuso sexual infantil y se los enviaran para su propia gratificación sexual.  Las fuerzas del orden han incautado muchas de estas imágenes y vídeos que muestran el abuso sexual de menores y que fueron creados bajo las órdenes de NAASÓN.  NAASÓN también ordenó a sus cómplices que seleccionaran a adolescentes de su iglesia para abusar de ellas y que introdujeran sistemáticamente a las menores en los deseos sexuales ilegales de NAASÓN a través de interacciones personales con él bajo el pretexto de actividades de la Iglesia.

NAASÓN y sus cómplices manipularon la doctrina de la Iglesia LLDM para facilitar este abuso. A través de la doctrina LLDM, NAASÓN y sus cómplices desarrollaron una cultura de fe y obediencia incondicionales a NAASÓN, incluso enseñando a los feligreses desde su nacimiento que serían condenados eternamente y excluidos de sus familias y amigos en la comunidad si no obedecían a NAASÓN o si lo cuestionaban.  NAASÓN aprovechó de ese miedo para evitar que las numerosas adolescentes y mujeres jóvenes de las que abusaba rechazaran sus insinuaciones sexuales y denunciaran los abusos sexuales a las fuerzas del orden.

La explotación de NAASÓN de la iglesia y sus miembros sigue una tradición profundamente inquietante establecida por su padre (Samuel Joaquín Flores) y su abuelo (Eusebio Joaquín González, conocido como «Aarón»), quienes fundaron la iglesia en Guadalajara, México, aproximadamente en 1926.  Comenzando con Aarón y continuando con Samuel y luego NAASÓN, cada miembro de la familia Joaquín que ha servido como líder o «apóstol» se ha aprovechado de su posición de poder y control sobre la Iglesia LLDM para abusar sexualmente, explotar y violar a sus feligreses.  Cada líder manipulaba a las niñas y mujeres jóvenes haciéndoles creer que podían obtener una «bendición» especial si le servían, lo que a menudo incluía actividades sexuales, como sexo oral, estimulación manual y, en última instancia, sexo con penetración con las víctimas.  Estos abusos se produjeron a lo largo de varias generaciones.

SOSA fue una de las principales cómplices de Samuel y preparó a muchas menores y mujeres jóvenes para su abuso sexual, además de abusar sexualmente de ellas directamente durante años, lo que continuó después de que NAASÓN se convirtiera en el líder de la empresa Joaquín LLDM.

GARCÍA DE JOAQUÍN, esposa de Samuel y madre de NAASÓN, acicalaba a menores de edad y a mujeres para que su marido cometiera abusos sexuales y ella misma igualmente, abusó sexualmente de menores y mujeres jóvenes también durante años.

RANGEL GARCÍA fue una de las principales cómplices de NAASÓN y preparó el terreno para sus abusos sexuales, además de abusar sexualmente de múltiples menores y mujeres jóvenes durante años.

NAASÓN y otros miembros de la empresa Joaquín LLDM también han utilizado de forma corrupta el dinero de los feligreses de la Iglesia LLDM para financiar los abusos sexuales de NAASÓN.  Muchos feligreses dieron sus diezmos a la Iglesia LLDM creyendo que su dinero financiaría actividades legítimas de la Iglesia en Estados Unidos, en México, donde tiene su sede la Iglesia, y en muchos otros países del mundo donde la Iglesia está activa.

NAASÓN utilizó estas donaciones para financiar viajes internacionales, incluyendo vuelos y hoteles caros, para él, su familia y las jóvenes que él y sus cómplices organizaban para viajar con NAASÓN con el fin de asegurarse de que siempre tuviera a alguien disponible para abusar sexualmente.  NAASÓN y sus cómplices también utilizaron los fondos y diezmos para comprar juguetes sexuales utilizados en los abusos y productos de limpieza para destruir las pruebas de los abusos sexuales. NAASÓN también utilizó las donaciones para financiar su lujoso estilo de vida, incluyendo coches caros, joyas, ropa, vacaciones de lujo y vuelos en jets privados.

NAASÓN y sus cómplices amenazaron y castigaron a las víctimas y destruyeron pruebas para evitar que las fuerzas del orden descubrieran sus delitos. Después de que NAASÓN fuera detenido en California en 2019 por cargos estatales relacionados con el abuso sexual de niñas y jóvenes de LLDM, los miembros de la organización Joaquín LLDM ejecutaron un plan para presionar a las sobrevivientes de su abuso sexual para que declararan falsamente que NAASÓN no las había abusado.  Los cómplices de NAASÓN, actuando bajo sus órdenes, castigaron a quienes intentaron denunciar los hechos.  Los miembros de la organización Joaquín LLDM también destruyeron pruebas, lo que incluyó triturar archivos en papel, quemar pruebas y sumergir dispositivos electrónicos en agua.

NÚÑEZ JOAQUÍN se hizo pasar falsamente por un abogado que trabajaba en nombre de la Iglesia LLDM y utilizó esa posición para impedir e intentar impedir que las víctimas de abuso sexual denunciaran el abuso a las fuerzas del orden. GARCÍA PEÑA actuó como jefe de relaciones públicas de NAASÓN y de la Iglesia LLDM y abusó de esa posición para impedir que las víctimas de abuso sexual denunciaran el abuso a las fuerzas del orden.

Esta investigación sigue en curso. Si ha sido usted víctima de los acusados de alguna manera o tiene información sobre su presunto comportamiento ilegal, llame al 212-637-1033 o envíe un correo electrónico a USANYS.LLDM@usdoj.gov.

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A continuación, se incluye un cuadro con los nombres, edades, cargos y penas máximas y mínimas de los acusados.

Las penas mínimas y máximas previstas por la ley son establecidas por el Congreso y se proporcionan aquí solo con fines informativos, ya que cualquier sentencia de los acusados será determinada por un juez.

El Sr. Clayton elogió la excelente labor de investigación realizada por los agentes especiales de HSI e IRS-CI.  El Sr. Clayton también agradeció a HSI Riverside, HSI Los Ángeles, HSI Chicago, IRS Los Ángeles, el Departamento de Policía de la Ciudad de Nueva York, el Departamento del Sheriff del Condado de Los Ángeles, la Oficina del Sheriff de Riverside, el Departamento de Policía de Redlands, la Oficina del Sheriff del Condado de San Bernardino, la Administración para el Control de Drogas (DEA), las fiscalías federales del Distrito Central de California y del Distrito Norte de Illinois, la Oficina de Asuntos Internacionales del Departamento de Justicia de los Estados Unidos y al Gobierno de México por su ayuda.

Este caso está siendo tramitado por la Unidad de Delitos Violentos y Delincuencia Organizada de la Fiscalía. Los fiscales adjuntos Ryan W. Allison, Lisa Daniels, Elizabeth A. Espinosa y Michael R. Herman están a cargo de la acusación.

Los cargos que figuran en la acusación son meras acusaciones, y los acusados se presumen inocentes hasta que se demuestre su culpabilidad.

Cargo

Cargo

Acusados

Pena máxima

NAASÓN JOAQUÍN GARCÍA, 56

ROSA SOSA, 59

AZALIA RANGEL GARCÍA, 46

EVA GARCÍA DE JOAQUÍN, 79

JORAM NÚÑEZ JOAQUÍN, 37

SILEM GARCÍA PEÑA, 43

Cadena perpetua para NAASÓN, SOSA, RANGEL GARCÍA y GARCÍA DE JOAQUÍN;

20 años de prisión para NÚÑEZ JOAQUÍN y GARCÍA PEÑA.

NAASÓN JOAQUÍN GARCÍA

ROSA SOSA

AZALIA RANGEL GARCÍA

EVA GARCÍA DE JOAQUÍN

Cadena perpetua

10 años de prisión como mínimo obligatorio

NAASÓN JOAQUÍN GARCÍA

AZALIA RANGEL GARCÍA

Cadena perpetua

10 años de prisión como mínimo obligatorio

NAASÓN JOAQUÍN GARCÍA

AZALIA RANGEL GARCÍA

NAASÓN JOAQUÍN GARCÍA

AZALIA RANGEL GARCÍA

30 años de prisión

15 años de prisión como pena mínima obligatoria

NAASÓN JOAQUÍN GARCÍA

AZALIA RANGEL GARCÍA

Cadena perpetua

20 años de prisión mínima obligatoria

[1] Como indica la fase introductoria, la totalidad del texto de la acusación y la descripción de la acusación que aquí se expone constituyen únicamente alegaciones, y todos los hechos descritos deben considerarse como alegaciones.

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 EDDIE RUIZ has been charged with one count of possession with intent to distribute a controlled substance.  RUIZ was arrested on August 29, 2025, and presented before U.S. Magistrate Judge Katharine H. Parker in Manhattan federal court on August 30, 2025. 

“As alleged, Eddie Ruiz was transporting over 15 kilograms of cocaine in a hidden compartment in his specially modified vehicle,” said U.S. Attorney Jay Clayton.  “Sadly, drug trafficking involves a vast, sophisticated, international network full of players who are motivated by profit and have no regard for the lives they ruin.  New Yorkers want that network broken and the players taken off the streets.  Together with our law enforcement partners, the women and men of the Southern District of New York will do everything in our power to fight drug trafficking on behalf of New Yorkers.”

“An authorized vehicle search revealed Eddie Ruiz allegedly possessed significant quantities of cocaine seemingly packaged for distribution that were hidden in storage compartments in the vehicle,” said FBI Assistant Director in Charge Christopher G. Raia.  “Ruiz’s alleged intentions to introduce addictive narcotics to our neighborhoods greatly jeopardizes the health and wellbeing of those residents.  During Operation Summer Heat, the FBI will continue to apprehend and interrupt any criminal who seeks to supply lethal substances to our communities.”

As alleged in the Complaint:[1]

On or about the afternoon of August 29, 2025, a member of New York state law enforcement pulled over a vehicle that RUIZ was driving in Sullivan County near Mamakating, New York, for several violations of New York’s Vehicle and Traffic Law.  Following RUIZ’s suspicious behavior during that traffic stop, law enforcement officers approached the vehicle with a drug-detecting canine, which signaled that it had detected the scent of narcotics within.  Law enforcement officers then began a roadside search of the vehicle and found a hidden compartment, also known as a “trap,” in its trunk.  After partially opening the trap, the officers observed what appeared to be bricks of narcotics, as pictured below.

Once the automobile was transported to a secure law enforcement location, the officers fully opened the trap and found it to contain 15 tightly wrapped rectangular packages, packaged consistently with distribution-level quantities of narcotics and weighing approximately one kilogram each.  Field-testing of these packages, pictured below, was positive for cocaine.

*                *                *

RUIZ, 47, of New York, New York, is charged with one count of possession with intent to distribute cocaine, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.

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

Mr. Clayton praised the outstanding work of the FBI, and the New York State Police and their Troop F Community Stabilization Unit and Troop K Community Stabilization Unit. 

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

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

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

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 the unsealing of an Indictment charging PAUL REGAN with conspiracy, securities fraud, and wire fraud.  The charges in the Indictment arise from a scheme to defraud retail investors in projects called Next Level Holdings (“Next Level”) and Yield Wealth Ltd. (“Yield”) by misrepresenting how those companies would use investors’ money and the protections investors would have against losses.  REGAN’s fraudulent scheme tricked over 300 people to invest more than $60 million in the Next Level and Yield investment products.  When the fraud was eventually exposed, REGAN’s investors were left with over $50 million in losses.  REGAN was arrested in the Southern District of Florida on September 4, 2025, and ordered detained following his removal from the Republic of Colombia.  The case has been assigned to U.S. District Judge Valerie E. Caproni.

“As alleged, Paul Regan promised high returns but, in reality, he simply used money from new investors to pay off old investors, keeping the fraud going until pointed questions were asked,” said U.S. Attorney Jay Clayton.  “There is no place in our markets for scammers, particularly those who prey on Main Street investors.  The women and men of the Southern District are committed to putting these scammers out of business permanently.”

“Paul Regan allegedly defrauded over 300 investors of more than $60 million through false promises of protected investments and guaranteed returns while using these deposits to quietly repay other entities,” said FBI Assistant Director in Charge Christopher G. Raia.  “This alleged scheme was shrouded in deceit to entice hundreds of clients before ultimately betraying their confidence and their savings.  The FBI will continue to investigate all widespread schemes exploiting the wallets of victims, regardless of where the defendant may be located.”

According to the allegations in the Indictment unsealed on September 4, 2025, in Manhattan federal court:[1]

From at least 2022 through December 2024, REGAN and a team of salesmen and associates defrauded hundreds of retail investors by offering investment products through two entities, Next Level and Yield, based on false and misleading statements.  REGAN and his co-conspirators misrepresented how Next Level and Yield would use investors’ money and what protections investors would have against losses.  These misrepresentations fraudulently induced over 300 people to invest more than $60 million in the Next Level and Yield investment products.  When REGAN’s fraud was eventually exposed, REGAN closed Next Level and Yield, leaving investors with over $50 million in losses.

Next Level Notes

REGAN advertised himself as the Chief Executive Officer of Next Level and claimed that Next Level was in the business of providing capital and operational support to mining operations in Colombia.  In exchange for this support, Next Level supposedly received precious metals at discounted prices, which Next Level sold at a profit.

In at least in or about mid-2022, REGAN and others began using Next Level to sell what REGAN called “Next Level Holdings Principal & Interest Protected Guaranteed Note[s]” (the “Next Level Notes”).  REGAN sold Next Level Notes himself and recruited independent salespeople to sell Next Level Notes using information and sales techniques that REGAN and others working at Next Level provided.

According to marketing materials that REGAN circulated to investors and salespeople, investors who purchased Next Level Notes were guaranteed to receive double-digit returns, with no risk of loss, through Next Level’s precious-metals business.  For example: Next Level’s marketing materials represented that investors who made a minimum investment of $50,000 could purchase a Next Level Note with a term of three, five, seven, or 10 years.  Each Note came with a contractually guaranteed double-digit annual yield—typically between 12% and 15% depending on the duration of the Note; Next Level’s marketing materials represented that each Next Level Note came with a “noncancelable indemnity or surety bond backed by an insurance company that guarantee[d] that principal and interest will be paid in compliance with the contractual agreement or promissory note.”  This meant that holders of Next Level Notes “[could not] lose their principal investment and also serve[d] as a guarantee that [investors] will receive the interest offered in our enhanced annuity note offering in full.”

The Next Level marketing materials that REGAN circulated also made representations about how Next Level would use investor funds and how it planned to protect investors from losses.  With respect to returns, the marketing materials represented that Next Level had a successful track record in “gold and precious metals trade finance operations,” and that Next Level would use investor funds to finance mining operations and generate returns from selling precious metals.  As for protections, the marketing materials represented that Next Level would obtain for investors “full insurance protections” from a handful of companies, including a Colombian entity (“Company-1”) and an American reinsurance company (“Company-2”).  The marketing materials said that this insurance was designed to offer noteholders “ultimate safety and peace of mind for your retirement portfolio in these very uncertain times.”

Next Level issued each investor who purchased a Next Level Note a “Fully Insured Secured Promissory Note,” which set forth the terms of the investment (including the principal amount and interest rate) and included an “Unconditional Loan Guarantee,” representing that Next Level would provide the investor “with a noncancelable surety bond, or other like insurance policy or product to serve as an unconditional guarantee for the Holder that he shall receive payment of both principal and interest on this note.”

Consistent with that representation about insurance, Next Level also sent investors two insurance-related documents: the first was a document titled a “Surety Bond Contract,” purportedly from Company-1, which guaranteed that Company-1 would pay the noteholder the full amount of principal and interest Next Level owed under the note, in the event Next Level did not pay.  The second was a document titled a “Reinsurance Cover Note,” purportedly from Company-2, which guaranteed that Company-2 would also insure the noteholder up to the full amount of principal and interest payments required under the terms of the note.

Between 2022 and late 2024, Next Level sold approximately 300 Next Level Notes to investors, including to at least one investor located in the Southern District of New York.  In total, the investors in Next Level Notes sent more than $45 million to business entities under the control of REGAN.

Yield Term Deposits

In or about early 2024, REGAN and others launched a new business venture called Yield, which REGAN advertised as an alternative to traditional banks that could offer investors higher returns on their savings and greater protections.

In or about March 2024, REGAN began using Yield to sell what he called “Mega High Yield Term Deposit[s]” and “Super High Yield Term Deposit[s]” (collectively, the “Yield Term Deposits”).  As with Next Level Notes, REGAN sold Yield Term Deposits himself and recruited independent salespeople to sell Yield Term Deposits using information and sales techniques that REGAN and others working at Yield provided.

Much like with Next Level Notes, REGAN circulated marketing materials to investors and salespeople, claiming that investors in Yield Term Deposits were guaranteed to make significant returns with no risk. For example: yield marketing materials described Yield as “revolutionizing the banking industry with Enhanced Term Deposits, offering yields up to 10.5% APY and security through insurance coverage up to $10 million.”  The materials went on to explain that investors could invest in Yield Term Deposits, with terms of between five and 10 years.  Investors would receive guaranteed interest payments each year, with rates ranging up to 10.5% per year, depending on the term of the deposit and other payment options the investor selected.  The marketing materials represented that interest payments and investors’ principal would be fully insured, stating that “[y]our APY is 100% guaranteed and insured” and that Yield Term Deposits “offer[] additional insurance on deposits up to $10 million, ensuring unparalleled security for your savings”; similarly, Yield’s website advertised Yield as a new, digital bank that gave investors access to better interest rates and protections than traditional financial institutions.  The website allowed investors to calculate returns they would receive from different Yield Term Deposits and touted that Yield Term Deposits were backed by insurers who “provid[e] our depositors the ultimate in insurance protection for both . . . principal and interest”; Yield’s website claimed that Yield would generate returns for investors through a “diverse portfolio that spans multiple industries, including the lucrative sectors of mining and rare minerals.”  REGAN separately represented to investors and people selling Yield Term Deposits that Yield would also use investor funds to make investments in plans related to the Affordable Care Act.

Yield sent investors who purchased Yield Term Deposits a “Subscription Agreement” and a “Limited Partnership Agreement,” through which the investors purchased units in either the Mega High-Yield Term Deposit LP or the Super High-Yield Term Deposit LP.  The agreements represented, among other things, that investors would receive “an annual percentage yield of no less than” between 5.5% and 8.5%, depending on the type of investment.

Over the course of 2024, Yield sold approximately 85 Yield Term Deposits, totaling more than $15 million deposited by investors.

The Defendant Defrauded Investors

The promises that REGAN and others made to investors about how Next Level and Yield would use their money and protect their investments were materially false and misleading.

When REGAN promoted Next Level Notes and Yield Term Deposits, a core component of that pitch was that Next Level and Yield would use investors’ money to generate significant returns, including through precious-metals operations and investments related to the Affordable Care Act.  Those claims were false and misleading.  In reality, REGAN and his co-conspirators ran Next Level and Yield like a Ponzi scheme, using money obtained from earlier investors to pay later investors and to pay commissions to salespeople.  Meanwhile, Next Level and Yield made no meaningful investments in either precious-metals operations or investments related to the Affordable Care Act.  Instead, REGAN and his co-conspirators misappropriated investor money, which included using investor funds for personal payments and sending large sums of money to entities that did not generate returns for Next Level or Yield, let alone investors.

Another important representation that REGAN made when marketing Next Level Notes and Yield Term Deposits was that investors would have insurance to guarantee promised interest payments and prevent them from losing their investments.  Those representations were also false and misleading.

Next Level did not obtain insurance for the vast majority of noteholders and did not maintain insurance for any of them.  Specifically, between in or about 2022 up to and including late 2023, Next Level obtained authentic surety bonds from Company-1 and reinsurance from Company-2 for approximately 70 Next Level Notes, with a total investment value of approximately $7.75 million.  Next Level then stopped paying to maintain that coverage and did not purchase any surety bonds or reinsurance for the more than 200 Next Level Notes it issued over the course of 2024.  Instead, Next Level sent the investors who purchased those notes forged surety bonds and forged reinsurance paperwork.  REGAN and his co-conspirators also furthered this fraudulent scheme by sending investors and salespeople forged letters that appeared to come from a senior executive at Company-1 and represented that Company-1 would insure more than $100 million of Next Level Notes.  Similarly, notwithstanding the representations that Yield Term Deposits had insurance to guarantee interest payments and protect up to $10 million of principal, Yield did not purchase or maintain insurance for Yield Term Deposits.

Investors Suffered Significant Losses

On or about August 30, 2024, a news outlet published an article about Yield and REGAN expressing skepticism about Yield.  REGAN responded to the article by holding a videoconference with salespeople, in which REGAN claimed that the article was false and misleading and urged salespeople to continue selling Yield Term Deposits.

In or about November 2024, Next Level and Yield closed, leaving investors with over $50 million in losses.

*               *                *

REGAN, 48, of New York, New York, is charged with one count of conspiring to commit securities fraud and wire fraud, which carries a maximum sentence of five years in prison; one count of securities fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud, which also carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory term of two years in prison.

Mr. Clayton also thanked the U.S. Securities and Exchange Commission, which has filed a civil enforcement action, the Justice Department’s Office of International Affairs, the Criminal Division’s Narcotic and Dangerous Drug Section’s Office of Judicial Attaché in Bogotá, Colombia and the authorities of the Republic of Colombia for their assistance.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Thomas S. Burnett and Maggie Lynaugh 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 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, and Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”), Frank A. Tarentino, announced that the United States has settled a civil Controlled Substances Act lawsuit against JANELLE HARRIS, the owner and supervising pharmacist of THE PHARMACY @ LCC (“THE PHARMACY”), a now-defunct pharmacy that previously operated in Manhattan.  The settlement resolves claims that THE PHARMACY, under HARRIS’s supervision and direction, repeatedly filled prescriptions for controlled substances that contained “red flags”—warning signs that should have created a reasonable suspicion that the prescriptions were not legitimate.

The Government’s Complaint alleged violations of the Controlled Substances Act and asked the Court to order HARRIS to pay penalties pursuant to that statute.  Under the settlement, which was approved on Friday, September 5, 2025, by U.S. District Judge Jed S. Rakoff, HARRIS agreed to pay a total sum of $100,000.  The settlement amount is based on the Office’s assessment of HARRIS’s ability to pay based on financial information she provided.  HARRIS has also executed a Consent Judgment in the amount of $16,700,000, which may be enforced if she does not make the payments required under the settlement agreement.  As part of today’s court-ordered settlement, HARRIS is also barred for five years from serving as a supervising pharmacist, and for seven years from owning, controlling, operating, or managing a pharmacy that purchases, stores, or dispenses controlled substances.  HARRIS also made extensive factual admissions regarding her conduct.

“Pharmacists and other healthcare professionals cannot turn a blind eye to opioid abuse,” said U.S. Attorney Jay Clayton.  “Pharmacists who recklessly ignore warning signs of diversion will be held accountable.”

“Pharmacists are not exempt from their regulatory responsibilities, especially when dealing with controlled substances and the dangerous effects they have when misused,” said DEA Special Agent in Charge Frank A. Tarentino.  “This settlement reflects DEA’s commitment to making sure measures are in place to safeguard the community and hold DEA registrants accountable.  I commend our Diversion Investigators for bringing this matter to a resolution.”

As alleged in the Complaint:

Between 2014 through 2018 (the “Covered Period”), HARRIS, a pharmacist licensed in the State of New York, owned and operated THE PHARMACY and served as its head pharmacist.  As THE PHARMACY’s owner and head pharmacist, HARRIS had a duty to ensure that prescriptions filled at THE PHARMACY for controlled substances, including Schedule II controlled substances, were for a legitimate medical purpose before dispensing those drugs.  As part of this duty, HARRIS was required to look for “red flags” indicating that the prescribed controlled substances were at risk for abuse or diversion, or not for a legitimate medical purpose.

However, during the Covered Period, The Pharmacy, under HARRIS’s supervision and direction, repeatedly filled prescriptions for Schedule II controlled substances, such as Oxycodone, that presented significant red flags.  Such red flags included cash payments by customers for Schedule II controlled substances, numerous prescriptions for a Schedule II controlled substance written by a single doctor, and prescriptions with semi-consecutive prescription numbers.  HARRIS and her supervisees ignored these red flags and failed to take sufficient steps to resolve them before filling the prescriptions.  Some of THE PHARMACY’s prescriptions for Schedule II controlled substances, such as Oxycodone, were ultimately determined to be issued without a legitimate medical purpose.

As part of the settlement, HARRIS admitted and accepted responsibility for certain conduct alleged by the United States, including the following:

• HARRIS, as a pharmacist and owner of THE PHARMACY, had a duty to ensure that prescriptions filled at THE PHARMACY for controlled substances were for a legitimate medical purpose before dispensing. As part of this duty, HARRIS was required to look for “red flags” indicating that the controlled substances prescribed were at risk for abuse or diversion and/or not for a legitimate medical purpose. Such red flags include but are not limited to: prescriptions for high dosage strengths and/or for large quantities of controlled substances; cash payments for controlled substances; sequential prescription numbers; and multiple prescriptions for controlled substances to a single individual within a short period of time.
• During the Covered Period, HARRIS and/or employees of THE PHARMACY under her supervision filled prescriptions paid for in cash at THE PHARMACY for Schedule II controlled substances, such as Oxycodone, that were ultimately determined to be issued without a legitimate medical purpose and contained numerous red flags.
• For example, HARRIS, and/or employees of THE PHARMACY under her supervision, filled prescriptions for Schedule II controlled substances that contained the following indicia of invalidity: over a four-month period, 114 of the 115 prescriptions written by a single doctor were for 120 tablets of Oxycodone 30mg. During this period, no one from THE PHARMACY called this doctor to confirm the validity of these prescriptions.

*                *                *

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

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

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 a Superseding Indictment charging STORM JONES; MICHAEL ORTIZ, a/k/a “Dot”; RANDY MACCOW; MARIO MEDINA, a/k/a “Flacco”; JAYSON HOLLAND, a/k/a “Jerry,” a/k/a “Ninety”; and FRANCIS OFORI, a/k/a “Ghana,” in connection with two homicides and a third non-fatal shooting in 2020.  The charges relate to the August 2, 2020, killing of 53-year-old Clarence Adams; the September 1, 2020, murder of 29-year-old Jeffrey German; and the November 3, 2020, shooting of a third individual, who survived.  Each of the defendants was either in New York City or New York State custody and brought into federal custody, with the final two defendants arraigned in Manhattan federal court today.  The case is assigned to U.S. District Judge Lewis J. Liman.        

“As alleged, these defendants wreaked havoc across a Bronx neighborhood through a string of robberies and killings,” said U.S. Attorney Jay Clayton.  “New Yorkers want and deserve safe streets and those who pursue violence as a way of life will be brought to justice.”

“As alleged, these defendants carried out their violent sprees with depravity, which resulted in the deaths of two victims and the near loss of a third,” said HSI Special Agent in Charge Ricky J. Patel.  “However long it takes, HSI New York, the NYPD and the U.S. Attorney’s Office for the Southern District of New York will relentlessly target violent criminals to ensure no victims suffer in vain and the public remains as safe as possible.”

“These alleged Elsmere crew members carried out cold-blooded murders, violent crime sprees, and tried to dodge accountability—all while carrying illegal guns and illicit narcotics,” said NYPD Commissioner Jessica S. Tisch.  “Two New Yorkers lost their lives, another was seriously injured, and entire communities were shattered by this violence.  The NYPD’s strategy is simple: to keep our streets safe, remove gangs from the equation—and that’s why we have carried out more than 50 gang-related takedowns and arrested almost 400 gang members this year alone.  I want to thank the NYPD investigators, HSI, and the U.S. Attorney’s Office for their relentless work to make sure these defendants are brought to justice.”

According to the allegations in the Superseding Indictment, other court documents, and statements made during court proceedings:[1]

Beginning in at least 2020, a group of individuals (the “Elsmere Crew”) utilized the residence located at 804 Elsmere Place in the Bronx (“804 Elsmere”) as a gathering place to use narcotics, carry firearms, plan crimes of violence, and hide from law enforcement after committing those crimes.  On August 2, 2020, Elsmere Crew member JONES, while selling drugs several blocks from 804 Elsmere, shot 53-year-old Clarence Adams, who had confronted JONES about JONES’s drug dealing.  Adams died from his injuries.  After the shooting, JONES fled to 804 Elsmere, where he met with other members of the Elsmere Crew.

In fall 2020, JONES, ORTIZ, MACCOW, MEDINA, HOLLAND, and OFORI planned and carried out two similar robberies near 804 Elsmere.  In each robbery, members of the Elsmere Crew persuaded a victim to deliver marijuana to the vicinity of 804 Elsmere, left together from 804 Elsmere to the site of the purported drug purchase, confronted and robbed the victim with firearms, and fled to 804 Elsmere afterward.

JONES, ORTIZ, MACCOW, MEDINA, and HOLLAND committed the first robbery, in which they shot and killed 29-year-old Jeffrey German on September 1, 2020. ORTIZ and OFORI participated in the second robbery with other Elsmere Crew members on November 3, 2020, in which they shot a victim, who survived.

*                *                *

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

The statutory maximum sentences 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.

The case is being prosecuted by the Office’s Violent and Organized Crimes Unit.  Assistant U.S. Attorneys Michael R. Herman and Patrick R. Moroney 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.

Conspiracy to commit Hobbs Act robbery

(Jeffrey German robbery and murder)

18 U.S.C. § 1951

STORM JONES, 26;

MICHAEL ORTIZ,  a/k/a “Dot,” 26;

RANDY MACCOW, 24

MARIO MEDINA,  a/k/a “Flacco,” 31;

JAYSON HOLLAND, a/k/a “Jerry,” a/k/a “Ninety,” 25

Hobbs Act robbery
18 U.S.C. §§ 1951 and 2

(Jeffrey German robbery and murder)

18 U.S.C. §§ 1951 and 2

Murder through the use of a firearm

(Jeffrey German robbery and murder)

18 U.S.C. §§ 924(j) and 2

Firearm use, carrying, and possession

(Jeffrey German robbery and murder)

18 U.S.C. §§ 924(c) and 2

Hobbs Act robbery conspiracy

(Non-fatal shooting)

18 U.S.C. § 1951

Hobbs Act robbery

(Non-fatal shooting)

18 U.S.C. §§ 1951 and 2

Firearm use, carrying, and possession

(Non-fatal shooting)

18 U.S.C. §§ 924(c) and 2

Narcotics conspiracy

21 U.S.C. § 846

Firearm use, carrying, and possession

(Clarence Adams homicide)

18 U.S.C. §§ 924(c) and 2

[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. 

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 a Complaint charging FAISIL McCANTS in connection with an August 27, 2025, armed robbery and shooting in which McCANTS fired 15 rounds from a machine gun on a public street in East Harlem, New York, striking and killing a 69-year-old woman.  McCANTS was arrested today and is expected to be presented tomorrow before Chief U.S. Magistrate Judge Sarah Netburn.

“As alleged, after robbing a drug dealer at gunpoint, Faisil McCants fired a machine gun in the middle of the day on the busy streets of New York City, killing another person,” said U.S. Attorney Jay Clayton.  “The death of that wholly innocent bystander, a 69-year-old woman who was merely standing with her walker on the sidewalk in East Harlem, is as tragic as it is senseless.  It is unacceptable.  Because of the hard work of our partners at HSI and the NYPD and the prosecutors of this Office, McCants will now answer for his alleged crime.  This tragic and senseless act shows again we must do all we can to get violent criminals off our streets.”

"As a result of this defendant’s allegedly ruthless and utterly reckless violence, an innocent victim was gunned down in broad daylight while simply going about her daily life,” said HSI Special Agent in Charge Ricky J. Patel.  “New Yorkers deserve better—full stop.  HSI New York—together with our partners at the NYPD and the U.S. Attorney's Office for the Southern District of New York—will not rest until the other individuals involved are captured and, like this defendant, face the full force of the criminal justice system for their accused, unacceptable crimes.” 

“Faisil McCants allegedly armed himself with a machine gun during a robbery and opened fire in broad daylight, killing a 69-year-old mother, grandmother, and beloved East Harlem community member,” said NYPD Commissioner Jessica S. Tisch.  “Robin Wright was an innocent bystander who lost her life to gun violence—and today, justice was served in her memory.  Removing illegal firearms from our streets remains at the forefront of the NYPD’s public safety mission, and we will continue to ensure that those who carry them are held accountable.  I am grateful to the NYPD investigators, HSI, and the U.S. Attorney’s Office for their swift work to keep our streets safe.”

As alleged in the Complaint:[1]

On or about August 27, 2025, shortly before 12:30 p.m., FAISIL McCANTS and two co-conspirators (“CC-1” and “CC-2”) robbed a drug dealer (“Individual-1”) near East 109th Street and Madison Avenue in Manhattan.  During the robbery, McCANTS and his co-conspirators got into a physical altercation with Individual-1 before both McCANTS and CC-2 grabbed backpacks from Individual-1—which contained marijuana—and then fled north on Madison Avenue, turning onto East 110th Street.

As he fled the robbery, McCANTS pulled a black machine gun out of his right sweatshirt pocket and fired 15 shots in rapid succession in the general direction of Individual-1.  A 69-year-old woman who was standing with a walker on the northwest corner of East 110th Street and Madison Avenue—in the direction that McCANTS shot the machine gun—was hit by the gunfire.  From the scene, she was transported to a hospital, where she was pronounced dead.

*               *                *

McCANTS, 18, of New York, New York, is charged with one count of Hobbs Act robbery, which carries a maximum sentence of 20 years in prison; and one count of the use, carrying, and possession of a machine gun, which carries a mandatory minimum sentence of 30 years in prison and a maximum sentence of life in prison, and which must be served consecutively to any other sentence imposed.

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

Mr. Clayton praised the outstanding investigative work of HSI and the NYPD.  He also thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, and the New York State Board of Parole.

This case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Alexandra S. Messiter and Kathryn Wheelock are in charge of the prosecution.   

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

[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein 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 the unsealing of a Complaint against Jamaican national JAMAIRE ROBERTSON in connection with the armed robbery of a gas station attendant working in Mount Vernon, New York, in the early morning hours of August 29, 2025.  ROBERTSON was arrested the same day and presented in Manhattan federal court on Saturday, August 30, 2025, before U.S. Magistrate Judge Katharine A. Parker, who ordered him detained.

“As alleged, Jamaire Robertson committed a terrifying gunpoint robbery of a gas station attendant and then, minutes later, shot at police officers trying to stop him on a residential street in Mount Vernon,” said U.S. Attorney Jay Clayton.  “Those willing to use guns and violence to terrorize our community and put law enforcement lives at risk should expect to face serious consequences. Anyone who disrupts the safety of New Yorkers and the dedicated officers responsible for keeping us all safe will be swiftly brought to justice.”         

“Jamaire Robertson and his associate allegedly robbed a local gas station employee by brandishing firearms to forcefully steal the victim’s wallet, and Robertson allegedly fired upon officers,” said FBI Assistant Director in Charge Christopher G. Raia.  “Not only did Robertson’s alleged actions terrorize a random citizen for a nominal payout, but they also recklessly endangered the lives of local law enforcement officers.  This arrest reflects the FBI’s enduring determination to apprehend any armed criminal through Operation Summer Heat, so our communities are protected from unnecessary acts of violence.”

As alleged in the Complaint filed on August 30, 2025, in White Plains federal court:[1]

On the morning of August 29, 2025, ROBERTSON and an associate (“Suspect-2”) exited a vehicle registered to ROBERTSON parked near ROBERTSON’s apartment in the Bronx and set out together on foot at approximately 5:19 a.m. toward a gas station on Mount Vernon Avenue in nearby Mount Vernon.

At approximately 5:29 a.m., ROBERTSON and Suspect-2, each brandishing a handgun, violently robbed the gas station’s attendant, stealing approximately $500-$600 in cash on the victim’s person along with the victim’s wallet.  The robbery was captured on video surveillance.

The perpetrators fled the gas station and separated, with ROBERTSON seeking cover on a residential street in Mount Vernon near its border with the Bronx.  There, ROBERTSON was observed in flight by New York City Police Department (“NYPD”) officers who were aware of the gas station robbery that had taken place minutes before.  When the NYPD officers sought to approach ROBERTSON, he opened fire with his handgun and fled, discarding his weapon and a black hooded sweatshirt he wore during the robbery, which were recovered from the scene.

Security camera footage from ROBERTSON’s apartment building captured him returning home in his underwear and a t-shirt at approximately 6:25 a.m. and disposing additional articles of clothing down his building’s trash chute later that day, before his arrest.

If you have information to report regarding this robbery, please contact the FBI through its toll-free Tip Line at 1-800-CALL-FBI or by completing its online tip form at tips.fbi.gov.

*                *                *

ROBERTSON, 28, a Jamaican national, is charged with conspiracy to commit Hobbs Act robbery and Hobbs Act robbery, each of which carries a maximum sentence of 20 years in prison.  ROBERTSON is also charged with using and carrying a firearm during and in relation to, and possessing a firearm in furtherance of, a crime of violence, which carries an additional mandatory minimum sentence of 10 years in prison, which must be served consecutive to any other prison term imposed.     

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

Mr. Clayton praised the outstanding work of the FBI.                

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

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

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that NICOLE TORRES, a former elected district leader in the Bronx and employee of the New York City Board of Elections (the “NYC-BOE”), was sentenced today to two years in prison for participating in conspiracies to commit extortion and mail fraud for illegally demanding payments from Bronx residents in exchange for selecting those individuals as poll workers and for agreeing with others to falsify documents to make it appear that certain individuals had worked as poll workers when they had not.  TORRES previously pled guilty on April 17, 2025, before U.S. District Judge Mary Kay Vyskocil, who imposed today’s sentence.

“For years, Nicole Torres abused her power to corrupt one of New York City’s most fundamental democratic processes,” said U.S. Attorney Jay Clayton.  “By shaking down Bronx residents and falsifying election records, she undermined trust in the very system New Yorkers depend on to make their voices heard.  New Yorkers can and should rely on the integrity of the election process, and public officials who contaminate the process and betray this city and its people will be held accountable.”

As detailed in public filings and public court proceedings:           

From at least 2019 through at least 2024, TORRES was a district leader for New York’s 81st Assembly District in the Bronx.  In addition, from at least 2016 through at least 2024, TORRES was an employee of the NYC-BOE.  While working at the NYC-BOE, TORRES had at times been responsible for ensuring that poll workers were paid for their work during early voting and Election Day. TORRES abused her power as a district leader and a NYC-BOE employee to engage in two illegal schemes. 

First, from at least 2019 through August 2024, TORRES agreed to require and required Bronx residents to pay a sum of money, usually $150, either to her or to a local organization (the “Bronx Organization”) in exchange for TORRES selecting those individuals as poll workers for upcoming elections.  Both the Bronx Organization and TORRES profited from the scheme.  TORRES personally obtained at least approximately $28,000 in illegal payments.  TORRES received the payments, often in the amount of $150, through mobile payment applications, money orders, and checks.  In certain instances, TORRES received money orders or checks that were written out to the Bronx Organization, and TORRES altered the payee line on those money orders or checks to say “Nicole Torres” so that she could deposit that money into her personal bank account. 

Second, from at least 2018 through August 2024, TORRES agreed to falsify the Election District Forms Booklet—which is a NYC-BOE record in which poll workers record their attendance at a particular poll site—to make it appear that certain individuals (the “‘No Show’ Poll Workers”) worked as poll workers during early voting and Election Day when, in truth and fact, and as TORRES well knew, those individuals did not work on those dates. TORRES often worked with coordinators who oversaw the Forms Booklets at specific poll sites.  These coordinators signed in “No Show” Poll Workers in the Forms Booklets, frequently at TORRES’s direction. TORRES and her coconspirators then received the salaries for the “No Show” Poll Workers—sometimes through the mail—and split the fraudulently obtained salaries among themselves. 

Based on her participation in the two schemes, TORRES personally earned at least approximately $40,970.   

*               *                *

In addition to her prison term, TORRES, 44, of the Bronx, New York, was sentenced to three years of supervised release and ordered to pay forfeiture of $40,970.

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

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

United States Attorney for the Southern District of New York, Jay Clayton, and the New York State Inspector General, Lucy Lang, announced the unsealing of an Indictment charging LIAM TREIBERT and MICHAEL VASCONCELLOS with wire fraud arising out of their scheme to defraud a regulated utility company (“Utility-1”) in connection with fraudulent safety inspections of natural gas pipelines that Utility-1 was installing throughout New York City and Westchester County.  TREIBERT was arrested today in North Carolina and will be presented in Raleigh federal court.  VASCONCELLOS was arrested today in New York and will be presented in White Plains federal court.

“As alleged, Liam Treibert and Michael Vasconcellos violated the trust placed in them to ensure the safety of natural gas pipelines that were being installed throughout New York City and Westchester County,” said U.S. Attorney Jay Clayton.  “They lied about having performed hundreds of inspections and then covered up those lies with fraudulent paperwork.  Their actions put the lives of New Yorkers at risk.  The safety of New Yorkers is of paramount importance to our Office.”

“When deliberate misconduct - as alleged here - puts entire communities at risk, those responsible must face swift and decisive consequences,” said New York State Inspector General Lucy Lang. “Today’s arrests, made in partnership with the Southern District of New York, demonstrate my agency’s unwavering commitment to protecting critical infrastructure and pursuing accountability on behalf of all New Yorkers.”

As alleged in the Indictment:[1]

Between at least in or about 2016 and 2023, TREIBERT and VASCONCELLOS were supposed to perform safety inspections of welds on natural gas pipelines that were being installed throughout New York City and Westchester County.  Those inspections were necessary to ensure that the welds did not contain defects that could cause gas leaks or explosions.  TREIBERT and VASCONCELLOS lied about having inspected hundreds of welds that they never actually reviewed and created fraudulent records to cover up what they had done.  As a result, Utility-1 paid for hundreds of sham inspections and were deceived by TREIBERT and VASCONCELLOS into thinking that its pipelines had passed critical safety tests that TREIBERT and VASCONCELLOS never performed.

As part of the pipeline installation process, Utility-1 or its contractors would typically place gas pipelines into the ground in segments and then weld those segments together.  Before a pipeline could be put into service, the welds throughout the pipeline had to be inspected to assess their quality.  Those inspections included non-destructive testing.

One common form of non-destructive testing of pipeline welds involved radiographs, often referred to as x-rays.  Radiographic testing required a team to radiograph each weld and then examine the films to identify any defects in the welds.  If a defect was identified, then the weld would have to be repaired before the pipeline was put into service.  Failure to repair a defect before a pipeline was put into service could have led to critical failures, including gas leaks or explosions.

During the period alleged, TREIBERT and VASCONCELLOS, while performing radiographic testing for Utility-1, repeatedly engaged in a practice referred to in the non-destructive testing industry as “radaring.”  Radaring typically involved radiographing the same weld twice and then passing off one copy of films as having come from a second weld.  For instance, a radiographer might radiograph Weld A twice, and then claim that the second set of films are of Weld B, even though the radiographer never inspected Weld B.

In total, hundreds of welds across Utility-1’s pipelines installed throughout the Bronx and Westchester County between in or about 2016 and 2023 were affected by radaring engaged in by TREIBERT and VASCONCELLOS.  And although TREIBERT and VASCONCELLOS did not actually inspect those welds, invoices for those inspections were submitted to Utility-1.  Utility-1 paid those invoices through, among other methods, bank transfers.

*                *                *

TREIBERT, 30, of Wendell, North Carolina, and VASCONCELLOS, 44, of Mahopac, New York, are each charged with one count of wire 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 defendants will be determined by a judge.

Mr. Clayton praised the investigative work of the Offices of the New York State Inspector General and the special agents with the U.S. Attorney’s Office.

This case is being prosecuted by the Office’s White Plains Division.  Assistant U.S. Attorneys David A. Markewitz and Jay McMahon 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, constitutes only allegations, and every fact described therein 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 unsealing of an Indictment charging CARLOS MOLINA RODRIGUEZ; SAMUEL BLAIN, a/k/a “Lobo,” a/k/a “Snipes,” a/k/a “Loboferoz”; CARLOS MARTINEZ, a/k/a “Bway”; KALIF COX, a/k/a “Leef,” a/k/a “LG”; JUSTICE BEARD, a/k/a “Just”; CALVIN LEWIS, a/k/a “Ski”; and EMMANUEL IDYIS with narcotics distribution, narcotics importation, continuing criminal enterprise, racketeering conspiracy, murder, and other related charges in and around Middletown and Newburgh, New York.  MOLINA, MARTINEZ, COX, BEARD, LEWIS, and IDYIS were arrested earlier this year in New York, California, and North Carolina.  On August 22, 2025, BLAIN was expelled from Mexico and arrested at the Dallas-Fort Worth International Airport.  MOLINA, BLAIN, MARTINEZ, COX, BEARD, and LEWIS have been ordered detained pending trial.  The case is assigned to U.S. District Judge Vincent L. Briccetti.

“As alleged, these defendants operated a large-scale narcotics distribution, importation, and racketeering conspiracy to smuggle dozens of kilograms of illegal crystal methamphetamine, cocaine, and fentanyl from Mexico and drive them in specially modified minivans all over the United States, including to New York,” said U.S. Attorney Jay Clayton.  “The defendants are also charged—in connection with their participation in a violent street gang—with murdering an innocent bystander during a gunfight in Newburgh, in September 2019, committing numerous robberies, illegally trafficking firearms, and creating child pornography.  The wide-ranging criminal conduct described in this Indictment shows a troubling indifference to the safety of New Yorkers that cannot be tolerated.  This Office and our partners will not rest until every individual responsible for these heinous crimes—wherever they may be hiding, whether in Mexico or New York—is brought to justice.”

“These seven defendants allegedly used any illicit means necessary to support their criminal enterprise, including smuggling large amounts of narcotics into this country, trafficking illegal firearms, and shooting at rivals, which included the murder of an innocent bystander by one of the defendants,” said FBI Assistant Director in Charge Christopher G. Raia.  “Their alleged nondiscriminatory criminality depicts a relentless appetite to promote the gang’s operations, regardless of the affected community left in its turmoiled wake.  This Summer Heat indictment demonstrates the FBI’s steadfast dedication to crushing all forms of violent crime and eradicating any criminal organization using our communities to perpetuate their unlawful activities.”

According to the allegations contained in the Indictment unsealed yesterday in White Plains federal court, court filings, and statements made in court proceedings:[1]

MOLINA, BLAIN, MARTINEZ, COX, BEARD, LEWIS, and IDYIS are charged with running large-scale narcotics and racketeering conspiracies that involved the importation and cross-country movement of massive quantities of dangerous drugs, including crystal methamphetamine, cocaine, and fentanyl.

Between at least about 2022 and April 2025, the defendants ran and participated in a Mexico-based drug trafficking organization (the “MOLINA DTO”).  The MOLINA DTO was led by MOLINA and BLAIN, among others.  The MOLINA DTO recruited drivers from the U.S. to import narcotics from Mexico.  At the MOLINA DTO’s direction, the drivers would make their way to California, where they would cross into Mexico and receive a specially modified minivan loaded with narcotics and/or narcotics proceeds.  The drivers then drove those narcotics/narcotics proceeds-laden vehicles back across the U.S.-Mexico border and then across the country, including to Middletown, staying in regular contact with their MOLINA DTO recruiter to receive instructions about where next to take the vehicle.  In total, the MOLINA DTO is responsible for smuggling dozens of kilograms of crystal methamphetamine, cocaine, and fentanyl into the U.S. through this scheme.

Between at least 2019 and April 2025, MARTINEZ led a highly organized gang known as the Forbes List, which was a subset of the national gang known as the Makk Ballas.  MARTINEZ’s gang was based in Middletown and its members included COX, BEARD, LEWIS, and IDYIS, among others.  Through BLAIN and MARTINEZ, the Forbes List was connected with the MOLINA DTO and began trafficking the MOLINA DTO’s drugs from Mexico into the U.S.

Forbes List members also committed shootings, firearms trafficking, robberies, drug dealing, and fraud as part of their participation in the gang.  Specifically, COX is charged with the murder of an innocent bystander, Amed Alberto Alvarado Baquedano, during a gang-related gunfight in Newburgh on September 21, 2019; inducing a minor victim to record herself engaging in sexually explicit conduct and then send that recording to him; illegally trafficking firearms across state lines; and committing a drug‑related shooting in the Bronx, New York, in July 2024.  MARTINEZ is also charged with illegally possessing ammunition in Middletown in May 2024, and BEARD is additionally charged with possessing a firearm in connection with drug dealing in Yonkers, New York, and illegally possessing a firearm in Yonkers in July 2024.

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A chart containing the defendants’ names, ages, charges, and maximum penalties is set out below.

COUNT

CHARGE

DEFENDANTS

MAX. PENALTIES

I

Narcotics distribution conspiracy

21 U.S.C. § 846

CARLOS MOLINA RODRIGUEZ, 31

SAMUEL BLAIN, a/k/a “Lobo,” a/k/a “Snipes,” a/k/a “Loboferoz," 36

CARLOS MARTINEZ, a/k/a “Bway," 35

KALIF COX, a/k/a “Leef,” a/k/a “LG," 28

JUSTICE BEARD, a/k/a “Just," 36

CALVIN LEWIS, a/k/a “Ski," 36

EMMANUEL IDYIS, 25

II

Narcotics importation conspiracy

21 U.S.C. § 963

CARLOS MOLINA RODRIGUEZ

SAMUEL BLAIN, a/k/a “Lobo,” a/k/a “Snipes,” a/k/a “Loboferoz”

CARLOS MARTINEZ, a/k/a “Bway”

KALIF COX, a/k/a “Leef,” a/k/a “LG”

JUSTICE BEARD, a/k/a “Just”

CALVIN LEWIS, a/k/a “Ski”

EMMANUEL IDYIS

III

Continuing criminal enterprise

21 U.S.C. § 848

CARLOS MOLINA RODRIGUEZ

SAMUEL BLAIN, a/k/a “Lobo,” a/k/a “Snipes,” a/k/a “Loboferoz”

CARLOS MARTINEZ, a/k/a “Bway”

IV

Racketeering conspiracy

18 U.S.C. § 1961(d)

CARLOS MARTINEZ, a/k/a “Bway”

KALIF COX, a/k/a “Leef,” a/k/a “LG”

JUSTICE BEARD, a/k/a “Just”

CALVIN LEWIS, a/k/a “Ski”

EMMANUEL IDYIS

V

Murder in aid of racketeering

18 U.S.C. § 1959(a)(1)

VI

Murder through the use of a firearm

18 U.S.C. § 924(j)

VII

Attempted murder and assault with a deadly weapon in aid of racketeering

18 U.S.C. §§ 1959(a)(3), (a)(5)

VIII

Sexual exploitation of a child

18 U.S.C. §§ 2251(a), (e)

IX

Receipt of child pornography

18 U.S.C. §§ 2252A(a)(2)(B), (b)(1)

X

Firearms trafficking conspiracy

18 U.S.C. § 933

XI

Discharge of a firearm in furtherance of a drug trafficking crime

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

XII

Possession of a firearm in furtherance of a drug trafficking crime

18 U.S.C. § 924(c)(1)(A)(i)

XIII

Possession of a firearm after a felony conviction

18 U.S.C. § 922(g)(1)

XIV

Possession of ammunition after a felony conviction

18 U.S.C. § 922(g)(1)

The statutory maximum and minimum sentences 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 Hudson Valley Safe Streets Task Force.  Mr. Clayton also thanked the FBI Los Angeles Office; the FBI Dallas Office; Mexican law enforcement partners and the FBI Mexico Legal Attache; the U.S. Attorney’s Offices for the Southern District of California, Northern District of Texas, and Eastern District of North Carolina; the Department of Homeland Security, Homeland Security Investigations; the Drug Enforcement Administration; U.S. Customs and Border Patrol; the Bureau of Alcohol, Tobacco, Firearms & Explosives; the U.S. Postal Inspection Service; the New York State Police; the City of Newburgh Police Department; the Town of New Windsor Police Department; the Middletown Police Department; the New York Police Department; and the Kingston Borough Police Department for their assistance in the investigation.

This case is being prosecuted by the Office’s White Plains Division.  Assistant U.S. Attorneys Ryan W. Allison, Justin L. Brooke, Jennifer N. Ong, and Margaret N. Vasu are 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 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, and Assistant Director in Charge of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, announced the unsealing of a Complaint charging DANIEL ALAN MONARCHI with the sexual exploitation of a minor.  MONARCHI was arrested and presented before U.S. Magistrate Judge Andrew E. Krause in White Plains federal court and detained on Friday, August 22, 2025.

“Sexual exploitation of children is too prevalent in our society,” said U.S. Attorney Jay Clayton.  “Parents, caregivers, and teachers: if you sense something wrong, please seek assistance.  Sexual exploitation of children by teachers and others we entrust must be stopped.”

“We entrust teachers with the responsibility of helping to care for our children and not harm them by engaging in sexual exploitation of minors,” said FBI Assistant Director in Charge Christopher G. Raia.  “Daniel Monarchi, a special education teacher, allegedly conducted multiple sexually explicit conversations with victims he knew to be minors.  The FBI will continue to bring to justice any individual who endangers minor victims with sexually explicit behavior and actions.”

As alleged in the Complaint filed on August 19, 2025:[1]

MONARCHI worked as a special education teacher for a middle school (“School-1”) in Dutchess County.    

In September 2024, Victim-1, who was 14 years old, was contacted by a Discord account with the name “mrteacherman.”  “[M]rteacherman.” told Victim-1: “I teach 7th grade” and “I’m a social studies special Ed teacher.”  “[M]rteacherman.” engaged in sexual conversations with Victim-1 over the course of a month.  During that time, “mrteacherman.” asked Victim-1 if she was “an 8th grader” and Victim-1 confirmed that she was.  “[M]rteacherman.” asked Victim-1 if she had “any sexy classmates” and referred to Victim-1 as his “after school snack.”  About three weeks after their initial conversation, “mrteacherman.” asked Victim-1, to send him sexually explicit videos and stated, “I want to see you strip.”  Victim-1 sent “mrteacherman.” three videos in which she appeared naked, exposing her breasts. Approximately two days later, “mrteacherman.” sent Victim-1 a “selfie” showing his face and a second photo displaying his erect penis.  Then “mrteacherman.” asked Victim-1 to send him sexually explicit videos and told Victim-1, “Show me how special you are.  Show me why you deserve an A+.”  Victim-1 responded by sending “mrteacherman.” a sexually explicit video with her breasts and genitals exposed.

In February 2025, Victim-2, who was 13 years old, was contacted by a Discord account with the name “mrteacherman.”  “[M]rteacherman.” told Victim-2 what he wanted to do sexually with Victim-2 and Victim-3.  He made statements like, “I’d make you stay after class to earn ‘extra credit.’”  “[M]rteacherman.” told Victim-2 that he would “never like download or save any of your pictures” and added “you’re safe with me.”  About one week after their initial conversation, “mrteacherman.” told Victim-2 that he was going “to leave for home right after school tho” and sent Victim-2 a picture of his classroom.  Victim-2 reported to investigators that “mrteacherman.” sent Victim-2 photos of his penis to Victim-2 throughout the day and night as well as videos of him masturbating.

Victim-3, who was 14 years old, was contacted by a Discord account with the name “mrteacherman.” Victim-3 reported to law enforcement that “mrteacherman” was really sexual and wanted to role play, so she eventually blocked him.

MONARCHI’s name appears on the publicly accessible website for School-1.  The staff directory includes a “Daniel Monarchi” and identifies him as a “special education teacher.”  The photo that “mrteacherman.” sent to Victim-2 includes an image of the exterior of the middle school building which matches the exterior of School-1.

Investigators reviewed New York Motor Vehicle records for MONARCHI and confirmed that his Motor Vehicle photo appears in likeness to the “selfie” that MONARCHI sent to Victim-1.

There may be more victims of this alleged conduct. If you have information to report or you had contact with the Discord account “mrteacherman.,” contact the FBI through its toll-free Tip Line at 1-800-CALL-FBI or by completing its online tip form at tips.fbi.gov.  

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MONARCHI, 26, of Red Hook, New York, is charged with one count of sexual exploitation of a minor, which carries a maximum sentence of 30 years in prison and a mandatory minimum 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 efforts of the FBI Hudson Valley Safe Streets Task Force, the Dutchess County Sheriff’s Office, the New York State Police, and the FBI Columbia, South Carolina Division.                 

The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Patricia M. Reville is 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, 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 KENNETH THOM, a/k/a “K$,” a/k/a “K Money,” with securities fraud and investment adviser fraud.  THOM was arrested today and will be presented before U.S. Magistrate Judge Barbara Moses. The case has been assigned to U.S. District Judge Edgardo Ramos.

“After his suspension as a broker, Kenneth Thom used social media to steal from investors,” said U.S. Attorney Jay Clayton.  “If you’re getting investment advice from someone who is not registered as a broker or investment advisor, the risk of fraud is much higher.  We will hold accountable anyone who preys on everyday investors who rightly expect their trading professionals to be in good standing and act in their best interests.”

“Kenneth Thom allegedly manipulated his client’s investments to not only place unsuccessful trades, but also promote an illusion of success,” said FBI Assistant Director in Charge Christopher G. Raia.  “Thom’s alleged incessant deceit betrayed the trust of investors by failing to disclose his misuse and loss of client funds.  The FBI will never waiver from apprehending any individual who steals from others’ pockets to greedily finance personal purchases.”

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

In May 2006, THOM passed securities licensing examinations and registered as a broker with the Financial Industry Regulatory Authority (“FINRA”).  In or around January 2011, FINRA suspended THOM’s broker registration after he failed to pay an arbitration award to an investor.  THOM also admitted around that time to the FBI that he had commingled that investor’s money with his own money in a brokerage account that THOM controlled and lost most of the money through unsuccessful trading.  THOM further admitted that when the investor sought to withdraw her funds, he did not tell the investor that he had lost her money and instead invented fake excuses and then ignored the investor altogether.

After being suspended by FINRA, THOM turned to social media and promoted himself online as a successful trader.  Using the monikers “K$” and “K Money,” THOM described himself as a “Wall Street veteran,” a “luminary,” and a “beacon of knowledge,” and he used his online platforms to sell trading courses and trade suggestions to his followers.  One of THOM’s platforms was a Facebook group called, at relevant times, the “K$ Trading Group” (the “K$ Facebook Group”), in which THOM posted the results of his purportedly successful trades.

Beginning in late 2023, THOM invited members of the K$ Facebook Group to participate in “shared accounts” that THOM would manage in exchange for a percentage of the trading profits.  THOM eventually raised nearly $800,000 from approximately 67 clients.  Of this sum, THOM invested only approximately $350,000, diverting most of the remainder for his own personal use, including on travel, dining, and luxury goods.

Of the $350,000 that THOM invested, he lost more than $250,000 trading options, for a net loss of approximately 73% between in or around March 2024 and March 2025.  To hide these losses, THOM published false performance updates showing significant gains.  For example, on or around July 3, 2024, THOM posted in the K$ Facebook Group that each of his three purported shared accounts was positive year-to-date, with returns ranging from 4% to 120% (see photo below).  In fact, as of the close of the preceding trading day, THOM had lost approximately 31% of the client funds he invested to date.

In or about January 2025, the name of the K$ Facebook Group was changed to “AYBABTU” — an acronym for the Internet meme “all your base are belong to us” — and THOM stopped responding to clients.

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THOM, 41, of Westfield, New Jersey, is charged with one count of securities fraud, which carries a maximum sentence of 20 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 defendant will be determined by a judge.

Mr. Clayton praised the outstanding work of the FBI.  Mr. Clayton also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission, which separately initiated civil proceedings against the defendant today.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorney Alexander Li 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 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 NIRANJAN MITTAL was sentenced today by U.S. District Judge Ronnie Abrams to 37 months in prison in connection with a years’ long health care fraud and bribery scheme.  As part of that scheme, MITTAL, a Brooklyn-based cardiologist, paid physicians for patient referrals.  The defendant also fabricated patient records in order to bill for medically unnecessary vascular procedures.  In February 2025, MITTAL pled guilty to one count of violating the Anti-Kickback Statute in connection with the scheme.

“At the core of our healthcare system is patient-doctor trust,” said U.S. Attorney Jay Clayton.  “Mittal abused that trust, turning his offices into ‘patient mills’ and subjecting trusting patients to procedures they did not need.  Today’s sentence sends a deterrent message to doctors and the healthcare industry:  if you abuse patient trust for profit, you will face justice.”

According to court documents and statements made during court proceedings:

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

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

As a result of MITTAL’s scheme, patients at the Brooklyn Clinic, many of whom were already in poor health, routinely underwent medically unnecessary vascular interventions at MITTAL’s office, with some patients undergoing 10 or more interventional procedures over the course of several years.  The patients’ conditions often did not improve, despite these repeated interventions.  Between 2016 and 2023, insurers paid over $40 million to MITTAL’s practice for claims from patients who were referred by doctors who received improper “rent” payments from MITTAL.

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In addition to the prison term, MITTAL, 72, of Brooklyn, New York, was sentenced to two years of supervised release and ordered to forfeit the proceeds traceable to his offense.

Mr. Clayton praised the outstanding investigative work of the U.S. Department of Health and Human Services – Office of the Inspector General, Internal Revenue Service – Criminal Investigations, and U.S. Department of Homeland Security – Homeland Security Investigations.

The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Patrick R. Moroney, Matthew Weinberg, Ryan B. Finkel, and Brandon C. Thompson are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced that Alberto Alonso Jaramillo Ramirez was sentenced today to 150 months in prison for conspiring to import cocaine into the United States.  JARAMILLO RAMIREZ pled guilty on March 24, 2025, before U.S. District Judge Lewis J. Liman, who imposed today’s sentence.

“Our fight against the flood of dangerous drugs from Colombia, Venezuela, and Mexico is about protecting our children and our communities,” said U.S. Attorney Jay Clayton.  “Jaramillo Ramirez conspired to traffic massive amounts of cocaine into our country, working with paramilitaries.  New Yorkers want him and others like him put out of business.”

According to court documents and statements made during court proceedings:[1]

JARAMILLO RAMIREZ conspired with his co-defendants and other individuals associated with the Fuerzas Armadas Revolucionarias de Colombia (“FARC”)—a violent organization based in Colombia that was dedicated to the overthrow of the Colombian government and responsible for the production and distribution of the majority of the cocaine that eventually reached the U.S.—to source and distribute tons of cocaine destined for the U.S.  JARAMILLO RAMIREZ negotiated with individuals he believed to be narcotics traffickers from a Mexico-based drug trafficking organization (the “Mexican DTO”) seeking to establish a cocaine supply line from Venezuela to the U.S.  These individuals, however, were actually confidential sources working at the direction of the U.S. Drug Enforcement Administration (“DEA”).

In recorded communications during the investigation, JARAMILLO RAMIREZ agreed to assist the planned cocaine venture through his connections in Colombia.  Specifically, JARAMILLO RAMIREZ agreed to provide connections to sources of supply for ton quantities of cocaine and to other individuals to assist with transportation and security for the planned large-scale cocaine loads.  In December 2021, to prove their bona fides and establish the quality of their cocaine supply, JARAMILLO RAMIREZ and his co-defendants sold the confidential sources a five-kilogram sample of cocaine containing a high level of purity—lab tests demonstrated the cocaine was between 86.6% to 89.1% pure—from a FARC-associated farm outside of Medellín.  JARAMILLO RAMIREZ was arrested in Colombia in February 2022, at the request of the U.S., while finalizing a much larger partnership with the Mexican DTO, which contemplated the shipment of approximately 500 kilograms of cocaine to the U.S. per week.

JARAMILLO RAMIREZ is the third defendant in this case to be sentenced.  On April 11, 2024, Libia Amanda Palacio Mena was sentenced to 168 months in prison, and on April 26, 2024, Alvaro Fredy Cordoba Ruiz was also sentenced to 168 months in prison.

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In addition to the prison term, JARAMILLO RAMIREZ, 56, of Medellín, Colombia, was sentenced to four years of supervised release.

Mr. Clayton praised the outstanding investigative work of the DEA’s Special Operations Division Bilateral Investigations Unit and Bogotá Country Office, as well as the U.S. Department of Justice’s Office of International Affairs and the Criminal Division’s Narcotic and Dangerous Drug Section’s Office of Judicial Attaché in Bogotá, Colombia for securing the arrest and March 2024 extradition of JARAMILLO RAMIREZ.

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

[1] Communications, conversations, and statements discussed and quoted herein are described in substance and in part, and many of these conversations occurred in Spanish.

“I am honored to continue serving the people of New York together with the talented and hardworking women and men of the Office.”

United States Attorney for the Southern District of New York, Jay Clayton, announced that KEITH TAYLOR, the founder and former chief executive officer of Modest Needs Foundation (“Modest Needs”), a charitable organization, pled guilty today before U.S. District Judge Jennifer L. Rochon to defrauding the charity and its donors by stealing millions in donations meant for low-income families and spending them instead on personal expenses—including rent in a luxury apartment building in midtown Manhattan, food delivery services, and lavish meals at some of New York City’s most expensive restaurants—and lying about the charity’s oversight and governance.  TAYLOR also pled guilty to evading more than a million dollars in federal income taxes and is scheduled to be sentenced on January 20, 2026.

“Keith Taylor preyed on the trust of New Yorkers who gave generously to help struggling families,” said U.S. Attorney Jay Clayton. “Those who use charitable dollars to line their own pockets undermine the work of our many great charities and the special tax status charities enjoy.  They must be brought to justice.”

According to the Superseding Indictment, the Complaint, filings, and court proceedings:

In or about 2002, TAYLOR founded Modest Needs, a 501(c)(3) charitable organization that used a crowdsourcing model to help low-income workers pay for unexpected expenses like medical bills or broken appliances.  Its mission was to provide short-term financial assistance to individuals and families living paycheck-to-paycheck who were faced with an unexpected crisis or expense that they could not pay.

Since at least 2015, TAYLOR embezzled more than $2.5 million from the charity and its donors and used that money to fund his lavish personal spending.  TAYLOR regularly dined at Per Se, Jean-Georges, Masa, and Marea in midtown Manhattan, sometimes as often as twice a day, spending more than $320,000 of charity funds at New York City restaurants and steakhouses.  Funds donated to the charity paid over $300,000 of TAYLOR’s rent for a luxury apartment on the 30th floor of a midtown Manhattan skyscraper.  TAYLOR also used charity funds to buy himself expensive electronics, pay over $100,000 to food delivery services, and pay for his own medical expenses.  TAYLOR put over $270,000 of charity funds directly into his personal brokerage account.  TAYLOR also routinely paid his other personal expenses from the charity’s bank accounts.

TAYLOR continued to defraud Modest Needs and its donors, even after his arrest in June 2024 on these charges.  Even though he purportedly resigned his employment with Modest Needs and no longer was supposed to have access to Modest Needs’ bank accounts, as a condition of his pretrial release, TAYLOR continued to use Modest Needs’ funds for his personal expenses, including to pay for meals, medical expenses, and rent for his luxury apartment, all in violation of the conditions of his pretrial release in this case.

TAYLOR attempted to hide his embezzlement of charity funds by creating a fake board of directors and claiming it had approved his personal spending and provided oversight over the organization.  TAYLOR used the names of his acquaintances and falsely listed them on the charity’s tax forms and website as board members.  TAYLOR’s acquaintances who were listed as the charity’s board members included a bartender from Jean-Georges, a friend, and his house-cleaner, none of whom ever attended a board meeting or even knew that they had been listed on the charity’s website or tax forms as board members.

For at least the calendar years of 2017 through 2024, TAYLOR did not file personal income tax returns or pay income taxes on the millions of dollars in income he received from the charity, evading more than a million dollars in federal income taxes.

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TAYLOR, 58, of New York, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of 30 years in prison because he committed the offense while on pretrial release, and eight counts of tax evasion, each of which carry a maximum sentence of five years in prison.

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

Mr. Clayton praised the exceptional investigative work of Internal Revenue Service-Criminal Investigation and the Special Agents of the United States Attorney’s Office. 

My office and our law enforcement partners will continue to do all that we can to protect the community from the devastating consequences of pernicious fraud schemes.  If you believe you are a victim of Taylor's fraud, please contact USANYS.Taylor.Victims@usdoj.gov.

If you are a victim, and would like to send the Judge presiding over this case a victim impact statement, which describes how this crime impacted you and your family, your statement can be emailed to USANYS.Taylor.Victims@usdoj.gov.  The Court will consider any statements sent in connection with sentencing of defendant Keith Taylor.

If you are a victim, and would like to speak at Keith Taylor’s sentencing hearing, to describe to the Judge how Keith Taylor’s crimes impacted you and your family please email USANYS.Taylor.Victims@usdoj.gov.

This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Eli J. Mark, Rebecca R. Delfiner, and James G. Mandilk are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced today the conviction of DANIEL V. SMITH of first-degree murder.  SMITH was convicted by a jury following a trial before U.S. District Judge Philip M. Halpern and will be sentenced on December 4, 2025.  SMITH faces a mandatory life sentence.

“Daniel V. Smith murdered a fellow inmate in cold blood at FCI Otisville by brutally beating him in the head with a lock tied to a belt,” said U.S. Attorney Jay Clayton.  “Thanks to the career prosecutors of this Office and our law enforcement partners, the defendant has been held accountable for his heinous crime.”

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

On October 26, 2021, SMITH was incarcerated at FCI Otisville, where he was serving a sentence related to a prior assault he committed in 2013 while incarcerated.  To obtain a transfer to a different housing unit, SMITH, without provocation, brutally attacked another inmate—housed in the cell next to his own—by swinging a lock tied to a belt and striking his victim in the head repeatedly, cracking open the victim’s skull.  The inmate suffered traumatic brain injury, fell into a vegetative state, and died from his injuries.

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SMITH, 65, of Otisville, New York, was convicted of one count of murder in the first degree, which carries a mandatory sentence of life in prison.

Mr. Clayton thanked the staff of FCI Otisville for their assistance and praised the investigative work of the Federal Bureau of Investigation Hudson Valley Safe Streets Task Force.

This case is being prosecuted by the Office’s White Plains Division.  Assistant U.S. Attorneys Justin L. Brooke, Shaun E. Werbelow, Benjamin D. Klein, Jeffrey C. Coffman, with the assistance of Paralegal Specialist Jackie Fleury, are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton; Acting United States Attorney for the Western District of Washington, Teal Luthy Miller; Inspector in Charge of the New York Division of the United States Postal Inspection Service (“USPIS”), Daniel Brubaker; and Special Agent in Charge of the Seattle Field Office of the Federal Bureau of Investigation (“FBI”), W. Mike Herrington, announced today the unsealing of an Indictment and Superseding Indictment.  The first Indictment charges RYAN WEAR, the former owner and operator of Water Station Management LLC (“Water Station”), with securities and wire fraud in connection with WEAR raising more than $200 million from investors by selling them water vending machines that, in many cases, did not exist, and paying promised returns through new investor money.  The second, Superseding Indictment charges JORDAN CHIRICO, a former fund portfolio manager and investment adviser, with investment adviser fraud in connection with purchasing more than $100 million of Water Station bonds while concealing his personal financial stake in the company and, eventually, his knowledge of the fraud that had been perpetrated by WEAR.  Together, the defendants’ conduct caused hundreds of millions of dollars in losses to Water Station investors and bondholders.  The case has been assigned to U.S. District Judge Jennifer L. Rochon.

“Ryan Wear raised hundreds of millions of dollars through false promises of a water vending machine business that became nothing more than a scam that victimized retail investors, including military veterans,” U.S. Attorney Jay Clayton said.  “Jordan Chirico made matters worse by putting his own financial interests before his professional duties, investing clients’ money in Water Station—helping himself and hurting his investors—even after he knew it was a scam.  One fraud does not excuse another.  With the assistance of our dedicated law enforcement partners and our colleagues throughout the Department of Justice, this Office will continue to aggressively pursue financial frauds on Wall Street and Main Street.”

“From the relatively small city of Everett, Washington, to the major financial markets in New York, this fraud scheme had a broad reach,” said Acting U.S. Attorney Teal Luthy Miller.  “We appreciate our partnership with the Southern District of New York on this investigation.”

“The greed and deception of this Ponzi scheme has resulted in the same way they have throughout history, with unwitting investors seeing their hard-earned money grossly misused, and the scammers arrested and held accountable for their crimes,” said USPIS Inspector in Charge Daniel Brubaker.  “Postal Inspectors, along with our law enforcement partners, will continue to aggressively investigate and disrupt criminals from defrauding the American public.”

“The scale of this fraud, which resulted in at least $200 million in losses, is simply staggering,” said FBI Special Agent in Charge W. Mike Herrington.  “And the deception and obfuscation these two men allegedly engaged in to siphon funds from retail investors, even U.S. military veterans, is absolutely unconscionable.  FBI Seattle is committed to working with our law enforcement partners throughout Washington state and the nation to hold accountable those who abuse investors’ trust and defraud them of their hard-earned savings.”

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

WEAR operated Water Station as a fraudulent investment scheme, deceiving investors about the nature and profitability of the purported business.  He raised over $200 million from retail investors and military veterans through multiple fraudulent solicitations, initially claiming that each investment of $8,500 would fund individual water machines generating passive income.  He later raised capital through bonds falsely claimed to be collateralized by numerous water vending machines.

WEAR perpetuated the fraud by manufacturing far fewer water machines than represented, selling the same machines to multiple investors, and claiming machines existed when they did not.  The deployed machines failed to generate the revenue promised by WEAR.  To satisfy questioning investors, WEAR operated a Ponzi-like scheme, using new investor funds to pay earlier investors while siphoning off millions to expand his traditional vending machine business and cover personal expenses.  When he could no longer raise sufficient funds, Water Station was forced into bankruptcy in August 2024, causing at least $200 million in investor losses.

CHIRICO engaged in a scheme to defraud 3|5|2 Capital ABS Master Fund LP (the “352 Fund”), an investment fund that was part of Jefferies Financial Group’s Leucadia Asset Management.  As a portfolio manager entrusted with hundreds of millions in investors’ funds, CHIRICO breached his fiduciary duties by causing the 352 Fund to invest almost $100 million in what he came to learn was a Ponzi scheme while concealing his personal financial stake in Water Station.

CHIRICO had a significant personal investment in Water Station, holding a joint venture partnership worth over $7 million.  When Water Station needed a capital infusion, the company launched a $70 million bond issuance in April 2022.  CHIRICO invested millions of the 352 Fund’s assets without fully disclosing his personal stake in Water Station, his monthly payments exceeding $90,000 from Water Station, or the $1.6 million he had received from referring friends and family members to invest in the company.  After investing the 352 Fund’s money, CHIRICO sold his interests back to Water Station without disclosing that he was being paid with bond proceeds originating from, among others, the 352 Fund and its investors.  CHIRICO also deliberately omitted other conflicts that jeopardized the fund’s investment, including millions of dollars that WEAR and Water Station owed CHIRICO in loan and note repayments.

By summer of 2023, CHIRICO learned of serious issues at Water Station, including the inability to locate thousands of water machines supposedly collateralizing the bonds.  Rather than alert investors, CHIRICO—who was personally owed more than $1 million by WEAR—prioritized his own repayment.  In January 2024, WEAR admitted to CHIRICO that thousands of machines collateralizing the bonds did not exist, and that WEAR had misappropriated tens of millions of dollars in bond proceeds.  Despite learning of this fraud—which another Water Station investor described to WEAR and CHIRICO as “the largest franchise fraud case in the history of the United States”—CHIRICO did not disclose Water Station’s problems to the 352 Fund or its investors. Instead, CHIRICO directed the 352 Fund to buy another $19 million of additional Water Station-issued bonds, some of the proceeds of which WEAR used to repay CHIRICO.  From April 2022 to February 2024, CHIRICO received from WEAR and Water Station more than $11 million in joint venture earnings, buyouts, and loan and note repayments.  The 352 Fund has not received any principal payments on $106.925 million of Water Station bonds, for which CHIRICO caused the fund and its affiliates to pay almost $100 million.

*               *                *

WEAR, 49, of Everett, Washington, is charged with one count of securities fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison.  CHIRICO, 41, of Carmel, Indiana, is charged with one count of investment adviser fraud, which carries a maximum sentence of five years in prison, and one count of securities fraud, which carries a maximum sentence of 20 years in prison.

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

Mr. Clayton praised the outstanding work of the USPIS, FBI, Internal Revenue Service-Criminal Investigation, the Small Business Administration Office of Inspector General, and the Federal Deposit Insurance Corporation Office of Inspector General.  Mr. Clayton also thanked the U.S. Attorney’s Office for the Western District of Washington and 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 Justin V. Rodriguez, along with Dane Westermeyer of the Western District of Washington, are in charge of the prosecution.

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

[1] As the introductory phrase signifies, the entirety of the text of the Indictment and Superseding Indictment and the descriptions of the Indictment and Superseding 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 Eastern Regional Office of the U.S. Small Business Administration, Office of Inspector General (“SBA-OIG”), Amaleka McCall-Brathwaite, announced today that the United States has settled a civil fraud lawsuit against TCC INTERNATIONAL LLC, CORE GRAVITY LLC, and CORE CLUB MEMBERS CORP. (collectively, the “Defendants”), for falsely certifying to the SBA that they were eligible to receive two Paycheck Protection Program (“PPP”) loans and have those loans forgiven, as well as a Restaurant Revitalization Fund (“RRF”) grant in violation of the False Claims Act.

Under SBA rules and regulations, private clubs were ineligible for PPP loans and restaurants that were either not-for-profits or did not primarily serve the public (such as restaurants operating within private clubs) were ineligible for RRF grants.  The settlement resolves claims that TCC International LLC and Core Gravity LLC falsely certified that they were eligible to receive and have forgiven two PPP loans despite being ineligible because TCC International LLC and Core Gravity LLC intended to, and did, use the PPP funds to operate a private club; and Core Club Members Corp. falsely certified that it was eligible to receive a RRF grant despite being ineligible because it was a not-for-profit organization with no food or beverage sales to the public.

Under the settlement approved today by U.S. District Judge Mary Kay Vyskocil, the Defendants will pay the United States a total sum of $360,000.  The settlement amount is based on the Office’s assessment of the Defendants’ ability to pay, as reflected in financial information they provided.  The Defendants have also executed a Consent Judgment in the amount of $8,189,172.10, which may be enforced if they do not make the payments required under the settlement agreement.  Additionally, the Defendants have admitted and accepted responsibility for conduct alleged in the Government’s Complaint.

“The Paycheck Protection Program and Restaurant Revitalization Fund were intended to assist small businesses suffering the financial impacts of a pandemic-related lockdown,” said U.S. Attorney Jay Clayton.  “New Yorkers supported these programs to protect their neighbors and their community.  New Yorkers also want those who abused the programs held accountable.  Our Office and the SBA are committed to doing so.”

“Falsely certifying eligibility for Paycheck Protection Program loans and Restaurant Revitalization Fund grants undermines critical relief programs designed to support small businesses and public-facing restaurants,” said SBA-OIG Special Agent in Charge Amaleka McCall-Brathwaite.  “OIG remains dedicated to protecting the integrity of SBA’s programs and holding accountable those who exploit them for personal gain.”

As alleged in the Complaint filed in Manhattan federal court:

Under the PPP, eligible businesses could obtain SBA-guaranteed loans; however, before receiving a PPP loan, businesses were required to certify that they were, in fact, eligible for the loan.  By regulation, certain businesses, such as private clubs, were ineligible for PPP loans.  The SBA also allowed for forgiveness of PPP loans.  To receive forgiveness, businesses were required to submit signed loan forgiveness applications in which they certified that the PPP funds were used for eligible expenses.

Under the RRF, qualifying bars and restaurants could apply for grants to offset pandemic-related revenue losses.  Per the RRF rules, certain businesses were ineligible for funding, including not-for-profit entities and restaurants and bars where on-site sales to the public comprised less than 33% of gross receipts in 2019.

TCC International LLC and Core Gravity LLC applied for and received two PPP loans totaling approximately $2.3 million and the SBA ultimately forgave all but $514,176.45 of those funds.  Core Club Members Corp. received an RRF grant of more than $2.3 million and did not repay any of that amount.  However, TCC International LLC and Core Gravity LLC were ineligible to receive their PPP loans or have them forgiven because they intended to, and did, use the funds for the benefit of a private club.  Additionally, Core Club Members Corp. was ineligible to receive its RRF grant because none of its gross receipts in 2019 were derived from on-site sales to the public and it was not-for-profit.

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

• TCC International LLC d/b/a Core Gravity, through its authorized representative, certified in a first-draw PPP loan application seeking $960,400 that it was eligible for funding and that the funds would be used in accordance with PPP rules.  However, TCC International LLC d/b/a Core Gravity was not eligible for a PPP loan, as it intended to, and did, use the funds to fund payment of employees of a members-only club.
• Core Gravity LLC sought and obtained partial forgiveness for the first-draw PPP loan in the amount of $446,223.55, after its authorized representative falsely certified in a loan forgiveness application that the funds as to which forgiveness was sought were used to pay business costs that were eligible for forgiveness.
• TCC International LLC d/b/a The Core Club, through its authorized representative, certified in a second-draw PPP loan application seeking $1,344,675.50 that it was eligible for funding and that the funds would be used in accordance with PPP rules. However, TCC International LLC d/b/a The Core Club was not eligible for a PPP loan, as it intended to, and did, use the funds to fund payment of employees of a members-only club.
• TCC International LLC sought and obtained full forgiveness for the second-draw PPP loan, after its authorized representative falsely certified in the forgiveness application that the funds as to which forgiveness was requested were used to pay business costs that were eligible for forgiveness.
• Core Club Members Corp. submitted an application to SBA to obtain a grant of $2,303,687.00 through the RRF, in which its authorized representative certified the applicant’s eligibility for funding and that the funds would be used in accordance with RRF rules. However, Core Club Members Corp., a not-for-profit company that did not serve food or drink to the public, was not eligible for an RRF grant.

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 thanked the SBA-OIG for its assistance with this case.

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

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 the unsealing of an Indictment yesterday charging RICHARD KIM, the former Chief Executive Officer of Zero Edge Corporation (“Zero Edge”), with engaging in a scheme to defraud investors and prospective investors of Zero Edge by making false and misleading statements regarding the use of investor funds and subsequently misappropriating those funds.  The case has been assigned to U.S. District Judge Lorna G. Schofield.

“As alleged, Richard Kim misled investors by promising that he would build a blockchain-based casino gaming app, but ironically Kim turned around and gambled away the very funds he said he would use to build a better casino,” said U.S. Attorney Jay Clayton.  “Founders who abuse the trust of their investors threaten the integrity of our important and uniquely American venture capital market.”

“Richard Kim allegedly misappropriated millions of investors’ dollars intended to develop his online casino company by redirecting these funds for personal gambling and trading ventures,” said FBI Assistant Director in Charge Christopher G. Raia.  “Kim allegedly hedged his bets that false assurances would induce more investments and conceal the true nature of his spending. The FBI remains committed to apprehending any individual who leverages executive positions to defraud others for selfish purposes.”

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

KIM founded Zero Edge in March 2024, purporting to build an app-based casino using blockchain and cryptocurrency technologies.  KIM represented to prospective investors that Zero Edge would develop on-chain games beginning with craps, and later offering roulette, baccarat, and blackjack.  KIM also represented to investors that their funds would be used to build the business and its technology.  Instead, KIM misappropriated the proceeds of the company’s seed round to make speculative cryptocurrency trades and gamble at an online casino.

Shortly after closing on the approximately $4.3 million seed financing round, KIM diverted approximately $3.8 million of investors’ funds first into a personal cryptocurrency account held at Coinbase and then sent approximately $1 million on to a variety of other crypto exchanges, including Binance, Kraken, and Backpack.  Between in or about June 21, 2024, and June 27, 2024, KIM made transfers of approximately $7 million, and net transfers of approximately $1 million, from Coinbase and Kraken to a personal account held at Shuffle.com, which advertises itself as a “VIP Crypto Casino and Sportsbook.”  KIM also directed a net sum of approximately $450,000 to other cryptocurrency wallets with unknown owners and transferred approximately $145,000 more from Kraken to a personal checking account.

In e-mails KIM later sent to investors, KIM admitted to misappropriating the investors’ funds, writing that he was “solely responsible for the loss of $3.67m of the Company’s balance sheet” following “leveraged trading losses from seed round financing proceeds” and that the company had lost nearly all its money.  But even as KIM admitted to some investors that he had misappropriated funds, he continued to conceal the true nature of his conduct, telling investors that he had lost the money as a result of a “treasury management strategy” rather than personal gambling.

At the time of his arrest, KIM admitted to the FBI that he knew what he did “was clearly wrong from the beginning” and “completely unjustifiable.”

*               *                *

KIM, 39, of New York, New York, is charged with one count of securities fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison.

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

Mr. Clayton praised the outstanding investigative work of the Special Agents from the FBI.  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. Attorney Ryan T. Nees 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 below constitute only allegations, and every fact described should be treated as an allegation.

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”), Frank A. Tarentino, announced today the unsealing of an Indictment charging SERVANDO GOMEZ-MARTINEZ, a/k/a “La Tuta,” with conspiring to import cocaine and methamphetamine into the U.S.  GOMEZ-MARTINEZ was taken into U.S. custody from Mexico yesterday and will be presented on the charge contained in the Indictment today before U.S. Magistrate Judge Henry J. Ricardo. The case is assigned to U.S. District Judge John G. Koeltl.

“As alleged, Servando Gomez-Martinez was a leader, enforcer, drug trafficker, weapons supplier, and public spokesman for the violent drug trafficking organization, La Familia Michoacana, based in Mexico,” said U.S. Attorney Jay Clayton.  “La Familia Michoacana imported vast quantities of cocaine and methamphetamine into the United States from Mexico and engaged in extensive violence in furtherance of its drug trafficking activities, including against those Mexican law enforcement officials who stood in its way.  This Office and our partners in the DEA are committed to bankrupting the cartels and bringing their leaders to justice.”

“The expulsion of Servando Gomez-Martinez marks a significant step in our fight against the world’s most violent and prolific drug trafficking organizations,” said DEA Special Agent in Charge Frank A. Tarentino.  “For years, Gomez-Martinez allegedly fueled the cocaine and methamphetamine trade that devastated communities across the United States, and the DEA remains committed to bringing such ruthless cartel leaders to justice.”

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

GOMEZ-MARTINEZ was the operational chief of La Familia Michoacana (“LFM”), a powerful, violent drug trafficking organization based in the state of Michoacan, in southwestern Mexico.  LFM controlled drug manufacturing and distribution within and around the state of Michoacan, as well as a port that served as a key transshipment point for drug shipments.  LFM imported vast quantities of cocaine and methamphetamine into the United States from Mexico.  In addition, LFM forbade the sale or use of methamphetamine in the areas under its control in Mexico, and instructed its members that its methamphetamine was solely for export to the United States.  GOMEZ-MARTINEZ made public statements on behalf of LFM and was responsible for, among other things, ensuring that LFM’s drug trafficking activities were not impeded by law enforcement, and for acquiring weapons for use by LFM.

Under the leadership of GOMEZ-MARTINEZ and others, LFM engaged in extensive violence, including assault, murder, and kidnapping to support its narcotics trafficking activities.  On or about July 17, 2009, days after the bodies of 12 Mexican federal police officers believed to have been murdered by LFM were discovered in Michoacan, GOMEZ-MARTINEZ gave a recorded statement to a local television station in Michoacan.  In the statement, GOMEZ-MARTINEZ publicly acknowledged that he was a member of LFM and, among other things, claimed that he was in charge of the port city of Lazaro Cardenas in Michoacan; that LFM was in a battle against the Mexican federal police and prosecutors; and that LFM kidnaps people who owe LFM money and those whose family members work in state and federal governments.

GOMEZ-MARTINEZ was transferred on August 12, 2025, from Mexico to the United States pursuant to Mexico’s National Security law.  He was among more than two dozen wanted fugitives facing a range of federal and state criminal charges from around the country, including charges relating to drug-trafficking, hostage-taking, kidnapping, illegal use of firearms, human smuggling, money laundering, the murder of a sheriff’s deputy, and other crimes.

*               *                *

GOMEZ-MARTINEZ, 59, a Mexican national, is charged with conspiring to import cocaine and methamphetamine into the United States, which carries a mandatory minimum sentence of 10 years in prison and 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 New York Field Division, Houston Field Division, and Mexico City Country Office, as well as the assistance of the Office of International Affairs of the Justice Department’s Criminal Division, the U.S. Marshals Service, and the Government of Mexico.

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Daniel G. Nessim, Henry L. Ross, and Kyle A. Wirshba are in charge of the prosecution.

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

[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 Administrator of the U.S. Drug Enforcement Administration (“DEA”), Terrance C. Cole, announced that KEVIN GIL ACOSTA, a/k/a “El 200,” MARTIN ZAZUETA PEREZ, a/k/a “Piyi,” and LEOBARDO GARCIA CORRALES, a/k/a “Leo,” arrived from Mexico in the Southern District of New York last night.  GIL ACOSTA, ZAZUETA PEREZ, and GARCIA CORRALES are charged with fentanyl trafficking and weapons offenses in connection with their roles working for the Sinaloa Cartel.  The defendants were presented today before U.S. Magistrate Judge Henry J. Ricardo and detained.  

“The illicit fentanyl trade continues to plague Americans and New Yorkers of all walks of life, and the Sinaloa Cartel, a vast, deadly, and corrupt enterprise, is at the center of the scourge,” said U.S. Attorney Jay Clayton.  “The defendants allegedly held leading roles, using abhorrent violence to protect the Cartel.  Their arrival yesterday in the United States to face justice in a U.S. courtroom is another major step in the partnership between our Office and the DEA to end the operations of the Sinaloa Cartel.”

According to the allegations contained in the Indictments against GIL ACOSTA, ZAZUETA PEREZ, and GARCIA CORRALES, and other court filings: [1]

The Sinaloa Cartel (the “Cartel”), based in the Mexican state of Sinaloa, operates in countries around the world and is one of the dominant drug trafficking organizations in the Western Hemisphere responsible for the massive influx of fentanyl into the United States, as well as the accompanying violence and deaths that have afflicted communities on both sides of the U.S.-Mexico border.

To protect and further the Cartel’s fentanyl trafficking operations, the Cartel, and specifically, the sons of the Cartel’s notorious former leader, Joaquin Archivaldo Guzman Loera, a/k/a “El Chapo,” known collectively as the “Chapitos,” have relied upon armed enforcers, known as sicarios.  These sicarios comprise a security apparatus built to commit acts of violence to protect the Chapitos’ operation and its leaders, territory, labs, trafficking routes, and money.  They regularly use military-grade weapons which are often smuggled from the United States, including machine guns, to perpetrate violence, including murder, torture, and kidnapping.

GIL ACOSTA and ZAZUETA PEREZ were leaders of the Chapitos’ security apparatus.  GIL ACOSTA served as the leader of a group of sicarios tasked with protecting the Chapitos’ fentanyl laboratories and fentanyl distribution routes, and personally trafficked fentanyl manufactured in labs controlled by the Chapitos.  ZAZUETA PEREZ was responsible for providing security in the Mexican state of Sinaloa, including by protecting the Chapitos’ fentanyl operations through kidnapping, torture, and murder using machine guns and other weapons.  On behalf of the Chapitos, GIL ACOSTA and ZAZUETA PEREZ participated in attacks against Mexican government and military officials, including during the Mexican authorities’ failed efforts in or about October 2019 to arrest one of the Chapitos. Specifically, during that operation, GIL ACOSTA led sicarios armed with AK-47s, M-16s, and AR-15s in attacks on Mexican government and military officials, and ZAZUETA PEREZ, armed with an AR-15 and grenade launcher, conducted attacks on Mexican government and military officials.

GARCIA CORRALES is a fentanyl supplier who has worked closely with the Sinaloa Cartel and has produced fentanyl in ton quantities. He oversaw the importation of kilogram quantities of fentanyl into the United States and conspired with others to arrange the sale of fentanyl in exchange for military-grade weapons, including hundreds of automatic weapons and .50-caliber rifles and grenades, for the purpose of promoting and protecting his drug trafficking activities. In connection with those efforts, GARCIA CORRALES and his co-conspirators delivered approximately 33 kilograms of fentanyl to buyers in the United States as partial payment for the planned weapons deal.

GIL ACOSTA, ZAZUETA PEREZ, and GARCIA CORRALES were transferred on August 12, 2025, from Mexico to the United States pursuant to Mexico’s National Security law.  They were among more than two dozen wanted fugitives facing a range of federal and state criminal charges from around the country, including charges relating to drug trafficking, hostage-taking, kidnapping, illegal use of firearms, human smuggling, money laundering, the murder of a sheriff’s deputy, and other crimes.

*               *                *

GIL ACOSTA, 35; ZAZUETA PEREZ, 29; and GARCIA CORRALES, 55, all from Mexico, are each charged with one count of fentanyl importation conspiracy, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; one count of possession of machine guns and destructive devices, which carries a mandatory minimum sentence of 30 years in prison and a maximum sentence of life in prison; and one count of conspiracy to possess machine guns and destructive devices, which carries a maximum sentence of life in prison.  GIL ACOSTA and ZAZUETA PEREZ are also each charged with one count of fentanyl trafficking conspiracy, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.

The mandatory minimum and maximum potential sentences in these cases 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 DEA’s Special Operations Division, Bilateral Investigations Unit and the DEA offices in Mexico, as well as the assistance of the Office of International Affairs of the Justice Department’s Criminal Division, the United States Marshals Service, and the Government of Mexico.

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

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

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

United States Attorney for the Southern District of New York, Jay Clayton, announced today that DO HYEONG KWON, the co-founder and former chief executive officer of Terraform Labs PTE, Ltd. (“Terraform”), pled guilty to one count of conspiring to commit commodities fraud, securities fraud, and wire fraud; and one count of committing wire fraud in connection with fraudulent schemes at Terraform.  KWON touted Terraform as a self-contained and decentralized financial world that leveraged proprietary blockchain technology to offer its own cryptocurrencies, payment system, stock market, and savings bank.  In reality and unbeknownst to Terraform investors and users, the core suite of Terraform products did not work as advertised and had been manipulated to create the illusion of a functioning and decentralized financial system.  KWON pled guilty today before U.S. District Judge Paul A. Engelmayer.

“Do Kwon used the technological promise and investment euphoria around cryptocurrency to commit one of the largest frauds in history,” said U.S. Attorney Jay Clayton.  “Kwon attracted tens of billions in funds to Terraform’s ecosystem by promising a self-stabilizing stablecoin.  By the time the markets discovered the ecosystem was unstable, it was too late: the system collapsed, and investors around the world suffered billions in losses.  Kwon’s plea represents an important milestone in this Office’s continuing efforts to bring integrity and accountability to the digital asset markets.  It would not have been possible without the dedicated work of our law enforcement partners at the FBI and the assistance of our allies abroad.”

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

Terraform was a blockchain and cryptocurrency company co-founded by KWON in 2018.  Terraform distinguished the Terra blockchain from other competing blockchains by issuing so-called algorithmic stablecoins pursuant to what it called the “Terra Protocol.”  According to KWON and others, Terraform stablecoins maintained a steady value even under changing market conditions.  In or around September 2020, Terraform publicly announced the launch of Terraform’s stablecoin pegged to the U.S. dollar, TerraUSD (“UST”).  Terraform promotional materials claimed that, under the Terra Protocol, one UST could always be exchanged for $1 worth of LUNA, the Terra blockchain’s native token.  Conversely, $1 worth of LUNA could always be exchanged for one UST. 

Over time, Terraform and its affiliated entities developed and launched various purportedly decentralized finance applications and entities designed to increase the number of users and transactions on the Terra blockchain, including:

• Chai, a Korean payment platform that purportedly began using the Terra blockchain to process financial transactions in or around June 2019;
• Mirror Protocol, a platform launched around December 2020 that allowed for the creation, buying, and selling of synthetic versions of financial assets, such as stocks listed on United States securities exchanges, using the Terra blockchain;
• Anchor Protocol, a platform launched in or around March 2021 that allowed for borrowing and lending UST, and that offered an approximately 20% annual return for UST deposited in Anchor;
• And the Luna Foundation Guard Ltd. (“LFG”), an entity incorporated publicly and launched in or around January 2022 that eventually maintained billions of dollars’ worth of financial reserves in the form of other cryptocurrencies such as bitcoin (the “LFG Reserve”) to purportedly support UST’s peg to the dollar. 

KWON solicited and obtained investments from several investment firms in the United States and other locations, with the investments primarily consisting of agreements for the purchase or loan of Terraform’s cryptocurrencies built on the Terra blockchain.  Through his work at Terraform, KWON became one of the most prominent business leaders in the cryptocurrency industry.  In truth, KWON’s constructed financial world was built on lies and manipulative and deceptive techniques used to mislead investors, users, business partners, and government regulators regarding Terraform’s business:

• The Stablecoin Misrepresentations: KWON made misrepresentations about the effectiveness of the Terra Protocol, which purportedly used a computer algorithm to maintain the value of one UST at $1.  But as KWON knew, after the Terra Protocol failed to cause the restoration of UST’s $1 peg in May 2021, KWON reached an agreement with executives at a high-frequency trading firm (the Trading Firm) so that the Trading Firm would purchase large amounts of UST in order to artificially support UST’s $1 peg.
• The LFG Misrepresentations: KWON claimed LFG was managed by an independent governing body and was tasked with deploying billions of dollars’ worth of financial reserves to defend UST’s peg.  But as KWON knew, he controlled both the LFG and Terraform.  In addition, KWON misappropriated hundreds of millions of dollars in assets from the LFG.
• The Mirror Misrepresentations: KWON claimed that Mirror operated in a decentralized manner and that he and Terraform played no role in Mirror’s governance.  But as KWON knew, he and Terraform secretly maintained control over Mirror, and used automated trading bots to manipulate the prices of synthetic assets that Mirror issued.  KWON also caused Terraform to inflate key user metrics to deceive investors.
• The Chai Misrepresentations: KWON falsely claimed that the Terra blockchain was being used to process billions of dollars in financial transactions for Chai.  In doing so, KWON claimed that the Terra blockchain had “real world” applications or uses, as distinct from competing cryptocurrency platforms.  But as KWON knew, Chai processed transactions through traditional financial processing networks, not the Terra blockchain.
• The Genesis Coin Misrepresentations: KWON made misrepresentations about the use of a supply of one billion stablecoins programmed into the Terra blockchain at its creation (the Genesis Stablecoins), which were purportedly held in reserve for Terraform for certain specified uses.  But KWON used at least $145 million worth of Genesis Stablecoins, among other things, to fund fake Chai blockchain transactions and trading bots to manipulate the prices of synthetic assets that Mirror issued.

At its peak in the spring of 2022, the total apparent market value of all UST and LUNA exceeded $50 billion.  Much of this growth followed KWON’s misrepresentations about Terraform and its technology, including efforts in May 2021 by KWON and his associates to secretly manipulate the market for UST.  By May 2022, the UST market was approximately nine times larger in terms of market capitalization and more than eight times larger in terms of daily trading volume relative to May 2021.  In May 2022, UST’s peg began to break down as it had a year prior.  While KWON was able to cover up the weaknesses of the Terra Protocol in May 2021, he was not able to do so in May 2022.  As a result, the value of UST and LUNA crashed, and investors suffered over $40 billion in losses.  After the crash of UST and LUNA in May 2022, KWON caused the distribution of a misleading “third party audit” report to cover up his crimes.

On or about March 23, 2023, KWON was arrested in Europe while traveling on a false passport.  U.S. authorities submitted a formal request for the arrest and extradition of KWON on March 25, 2023.  On December 31, 2024, KWON was extradited from Montenegro to the United States.

*                *               *

KWON, 33, of the Republic of Korea, pled guilty to one count of conspiring to commit commodities fraud, securities fraud, and wire fraud; and one count of committing wire fraud, which combined carry a maximum sentence of 25 years in prison.  As part of his plea, KWON has agreed to forfeit over $19 million in proceeds from his illegal schemes, including his interest in Terraform and its cryptocurrencies. KWON is scheduled to be sentenced by Judge Engelmayer on December 11, 2025. 

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 Federal Bureau of Investigation (“FBI”), FBI’s Virtual Assets Unit, FBI’s Economic Crimes Unit, FBI’s International Operations Division and Legal Attaché office covering Montenegro, the Ministry of Justice of the Republic of Montenegro, the Ministry of Interior of the Republic of Montenegro, the Montenegro Supreme State Prosecutor's Office, and the Montenegro Special State Prosecutor's Office.  Mr. Clayton also gave special thanks to the Department of Justice’s Office of International Affairs for securing the extradition. 

The case is being overseen by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Marguerite B. Colson, Sarah Mortazavi, Kimberly Ravener, and Andrew Thomas 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 four Ghanaian nationals, ISAAC ODURO BOATENG, a/k/a “Kofi Boat,” INUSAH AHMED, a/k/a “Pascal,” DERRICK VAN YEBOAH, a/k/a “Van,” and PATRICK KWAME ASARE, a/k/a “Borgar,” for their roles in an international criminal organization that stole more than $100 million from victims via romance scams and business email compromises.  They further announced Ghana’s extradition of BOATENG, AHMED, and VAN YEBOAH, who arrived in the U.S. on August 7, 2025, and will be presented today before U.S. Magistrate Judge Robert W. Lehrburger.  ASARE remains at large.  The case has been assigned to U.S. District Judge Arun Subramanian. 

“As alleged, Isaac Oduro Boateng, Inusah Ahmed, Derrick van Yeboah, and Patrick Kwame Asare led and participated in an international fraud ring that engaged in a massive conspiracy to defraud vulnerable people and steal from businesses,” said U.S. Attorney Jay Clayton.  “Offshore scammers should know that we, the FBI, and our law enforcement partners will work around the world to combat online fraud and bring perpetrators to justice.”

“The defendants have been brought to the United States to be held accountable for their alleged roles in scamming companies and vulnerable Americans out of over $100 million,” said FBI Assistant Director in Charge Christopher G. Raia.  “Deceiving businesses using email compromise campaigns and tricking innocent elderly victims through fraudulent companionship in order to exploit their trust and finances is not merely appalling but illegal.  The FBI will continue to ensure anyone who preys on companies and vulnerable Americans online is made to face the criminal justice system.”

As alleged in the Indictment:[1]

BOATENG, AHMED, VAN YEBOAH, and ASARE were high-ranking members of a criminal organization based in Ghana that committed romance scams and business email compromises against individuals and businesses located across the U.S.

Many of the conspiracy’s victims were vulnerable older men and women who were tricked into believing that they were in online romantic relationships with people who were, in fact, fake identities assumed by members of the conspiracy.  Once members of the conspiracy had gained the trust of their victims, they deceived those victims into sending their money to the enterprise or into helping them launder funds from other victims.  The conspirators also committed business email compromises to trick and deceive businesses into wiring funds to the enterprise.  In total, the conspiracy stole and laundered more than $100 million from dozens of victims.

After stealing the money, the fraud proceeds were then laundered to West Africa, where they were largely funneled to individuals called “chairmen,” who directed the activities of other members of the conspiracy.  BOATENG and AHMED were considered chairmen of the organization.

*               *                *

BOATENG, 36; AHMED, 40; VAN YEBOAH, 40; and ASARE, 39, each of Ghana, are charged with one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison; one count of conspiracy to receive stolen money, which carries a maximum sentence of five years in prison; and one count of receipt of stolen money, 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 defendants will be determined by a judge.

Mr. Clayton praised the outstanding work of the FBI. He also thanked Ghana and the U.S. Department of Justice’s Office of International Affairs for their assistance. 

The Justice Department’s Office of International Affairs worked with the International Cooperation Unit of the Office of the Attorney-General of Ghana to secure the extraditions to the United States.  Ghana’s Economic and Organized Crime Office, the Ghana Police Service – INTERPOL, Ghana’s Cyber Security Authority, and Ghana’s National Intelligence Bureau all provided significant assistance to ensure the success of these extraditions.

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Kevin Mead and Mitzi Steiner are in charge of the prosecution.

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

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

United States Attorney for the Southern District of New York, Jay Clayton; Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia; and Special Agent in Charge of the Northeast Region of the U.S. Department of Labor Office of  Inspector General (“DOL-OIG”), Jonathan Mellone, announced today that WILKINS ESTRELLA and CHARLENE MARTE pled guilty before U.S. District Judge Gregory H. Woods to conspiracy to commit wire fraud and bank fraud in connection with using social security numbers and other personally identifiable information belonging to hundreds of victims to open debit cards and attempt to fraudulently obtain $1.6 million in pandemic relief funds from the Internal Revenue Service (“IRS”) and the New York State Department of Labor.  The scheme resulted in almost $1 million in actual losses.  ESTRELLA, a former clerk at a Bronx hospital, is also charged with the wrongful disclosure of individually identifiable health information for accessing and stealing the data of at least 4,005 hospital patients for use in the fraud scheme.  ESTRELLA pled guilty yesterday and is scheduled to be sentenced on December 1, 2025.  MARTE pled guilty on July 28, 2025, and will be sentenced on November 5, 2025.

“Wilkins Estrella stole the personal data of thousands of people, including hospital patients, and used this data along with his partner Charlene Marte to claim money that was intended to assist struggling Americans during the pandemic,” said U.S. Attorney Jay Clayton.  “Defrauding federal programs harms all New Yorkers and our Office is committed to stopping it.”

“Wilkins Estrella and Charlene Marte exploited thousands of patient records to steal almost one million dollars from various government programs,” said FBI Assistant Director in Charge Christopher G. Raia.  “These defendants misused sensitive identifying information to perpetuate this illicit scheme and reap unlawful proceeds.  The FBI remains committed to pursuing any individual who targets confidential medical information for personal enrichment.”

“Wilkins Estrella and Charlene Marte committed numerous frauds against multiple government agencies, including a scheme to defraud the New York State Department of Labor’s unemployment insurance program by misusing the stolen identities of individuals to falsely obtain benefits,” said DOL-OIG Special Agent in Charge Jonathan Mellone.  “We will continue to work with our federal and state law enforcement partners to safeguard the integrity of U.S. Department of Labor programs.”

As alleged in public court filings, statements at public court proceedings, and the charging documents in the case:                                                                                    

From at least 2020 to 2022, ESTRELLA and his romantic partner, MARTE, misused the names, social security numbers, and other personally identifiable information belonging to hundreds of individuals to fraudulently obtain almost $1 million in COVID-19 stimulus checks and tax refunds from the IRS and unemployment insurance benefits from the New York State Department of Labor.  ESTRELLA and MARTE also arranged for these and other funds to be loaded onto hundreds of debit cards that they opened in other people’s names using stolen data, and had the cards mailed to their homes and to the homes of their family members.

ESTRELLA and MARTE obtained this data from multiple sources, including a hospital in the Bronx where ESTRELLA worked as a business clerk for almost a decade.  In 2020, ESTRELLA was terminated from that role after an internal systems audit revealed that he had improperly accessed the protected health information of at least 4,005 hospital patients.

*                *                *

ESTRELLA, 40, of Hackensack, New Jersey, and MARTE, 31, of the Bronx, New York, each pled guilty to conspiracy to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison.  ESTRELLA also pled guilty to wrongful disclosure of individually identifiable health information, which carries a maximum sentence of 10 years in prison. In addition, ESTRELLA and MARTE each agreed that they are jointly and severally liable for $951,618.20 in forfeiture and the same amount in restitution.

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

Mr. Clayton praised the outstanding investigative work of the FBI and DOL-OIG and thanked the New York State Department of Labor for its assistance in the investigation of the case.

This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jane Yumi Chong is 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 ANIL MATHEWS, RAHUL AGARWAL, and KENNETH HARLAN with conspiracy and securities fraud. MATHEWS and AGARWAL were, respectively, the Chief Executive Officer and Chief Financial Officer of Near Intelligence, Inc. (“Near”), and HARLAN was the Chief Executive Officer of MobileFuse LLC (“MobileFuse”).  The charges in the Indictment arise from an alleged scheme to defraud investors in Near by fraudulently inflating the company’s revenue by approximately $25 million through a series of “round trip” transactions in which Near made inflated payments to MobileFuse, only for MobileFuse to pay the money back to Near.  MATHEWS and AGARWAL are also charged with wire fraud in connection with their separate schemes to embezzle money from Near, and MATHEWS is charged with aggravated identity theft in connection with his appropriation of the identities of others that he used to generate fake invoices to disguise his embezzlement.

MATHEWS was previously arrested in connection with these charges in France, where he fled during the pendency of this criminal investigation. The United States is seeking his extradition.  AGARWAL, an Indian citizen and resident, is at large. HARLAN was arrested earlier today and will be presented this afternoon before U.S. Magistrate Judge Robert W. Lehrburger.  

“As alleged, executives from Near and MobileFuse ran a circular payment scheme to inflate revenue and increase Near’s value,” said U.S. Attorney Jay Clayton.  “Our investors, businesses and employees depend on the integrity of our capital markets.  Market integrity is one of America’s great competitive advantages, and this Office will hold those who undermine that essential integrity to account.”

“These defendants not only allegedly recycled more than $25 million through each other’s businesses, but two of them also stole even more funds to maintain their personal lifestyles,” said FBI Assistant Director in Charge Christopher G. Raia.  “These defendants allegedly manipulated their executive positions within their respective companies to create a mirage of financial success and attract prospective buyers.  The FBI is determined to apprehend any individual who relies on fraudulent misrepresentations to improve their economic portfolio.”

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

The defendants, from 2021 to December 2023, caused Near to fraudulently inflate its reported revenue by “round-tripping” money through MobileFuse, a private mobile advertising company founded and run by HARLAN.  The round-tripping scheme began before Near became a public reporting company, and MATHEWS and AGARWAL’s fraudulent inflation of Near’s revenue was designed, at least in part, to make Near look more attractive for acquisition by a Special Purpose Acquisition Company, or SPAC, to take Near public.  HARLAN, along with other senior MobileFuse executives, agreed to facilitate Near’s fraudulent inflation of its revenue by exchanging fake invoices along with inflated payments that allowed Near’s revenue from MobileFuse’s business to appear more than 10 times higher than it actually was, while MobileFuse “netted” out the roundtripped amounts and paid Near only what MobileFuse owed it for services actually rendered.  The defendants, and other senior executives at Near and MobileFuse, knew that Near was recognizing fake revenue that was based on these round-tripped amounts that originated at Near, rather than representing money MobileFuse legitimately owed Near for business services.

The fraudulent accounting practices instigated by the defendants and their co-conspirators caused Near to overstate its revenue by at least approximately $25 million.  At various times, Near’s revenue was falsely inflated by as much as approximately 28 percent, with the greatest inflations to Near’s revenue in 2022, just before it went public.  These inflated figures were relied on by the SPAC when it evaluated whether to acquire Near.  Near’s misrepresentations about its revenue, as orchestrated by the defendants and their co-conspirators, continued after it became a public reporting company.  Revenue inflated by MobileFuse’s round-tripped payments gave the appearance that Near was meeting its revenue projections, when, actually, Near would have failed to meet those projections without the round-trip payments.  In order to conceal Near’s fraudulent accounting practices, the defendants, and other senior executives at Near and MobileFuse, took steps to mislead the independent certified public accountants engaged to audit Near’s financial statements.

The round-tripping scheme unraveled a few months after Near began trading on the Nasdaq on or about March 24, 2023.  On or about October 5, 2023, Near announced an initial assessment that revenue may have been overstated and that its financial statements should not be relied on.  Near filed for bankruptcy in December 2023, less than nine months after its merger with the SPAC was completed.

The Round-Tripping Scheme

In January 2021, before the round-tripped payments began, MATHEWS and AGARWAL, along with another Near executive (“Near Executive-3”), invested $2 million in MobileFuse through a Singaporean private limited company in exchange for approximately 1.2 million Class B MobileFuse shares, which amounted to an approximately 10% equity stake in MobileFuse.  In the summer of 2023, shortly after Near became a public company, MobileFuse repurchased these Class B MobileFuse shares from MATHEWS, AGARWAL, and Near Executive-3 for only approximately $12,000. Effectively, therefore, the January 2021 “investment” amounted to a nearly $2 million payment from the Near executives to MobileFuse, and specifically, to HARLAN and his co-founder, the majority owners of MobileFuse.

A few months later, the round-tripped payments began.  MATHEWS, AGARWAL, and HARLAN coordinated the mechanics of the payments, which would begin with a large invoice from Near to MobileFuse followed by a “counter invoice” representing the amount MobileFuse would legitimately owe Near for services rendered on a monthly basis, plus the round-tripped amount that originated from Near. In accordance with this plan, from May 2021 to September 2023, Near and MobileFuse engaged in a series of similar transactions in which Near paid MobileFuse followed by reverse payments to Near on or about the same day in close but slightly greater amounts, the difference representing the amount MobileFuse legitimately owed to Near for actual services rendered.  The payments totaled approximately more than $25 million to MobileFuse, and approximately $27,750,000 to Near.

Near booked payments received from MobileFuse as revenue, even though the defendants knew that the payments Near received from MobileFuse lacked economic substance and merely reflected a return of money Near had previously paid MobileFuse the same day or the day before.  Near’s recognition of the fraudulently inflated revenue from the MobileFuse round-tripped transactions caused Near’s revenue to be overstated on its financial statements, including its audited financial statements from both before and after Near became a public company.

HARLAN knew that MobileFuse’s exchange of invoices with Near enabled Near to record increased revenue on its books and that this the increased revenue was fraudulent, and he acted accordingly.  Explaining the arrangement to other MobileFuse executives, HARLAN said “Basically [Near is] grossing up their revenue.”  MobileFuse, however, did not book the money it received from Near as part of the round-tripped transactions as revenue within its own financial statements.  Rather, MobileFuse “netted” the amount Near paid it against the amount it paid Near and recorded only the difference.  The result was that Near and MobileFuse accounted for the revenue from their mutual transfers differently.  HARLAN recognized that Near’s approach was highly misleading: on or about March 28, 2023, HARLAN texted MobileFuse Executive-2 to compare MobileFuse’s finances to Near’s: “Interesting note….we have more revenue than Near and obviously profitable both in 2022 and forecasted for 2023 and our revenue is real.”

The Embezzlement Schemes

MATHEWS and AGARWAL further enriched themselves at Near’s expense by embezzling money from the company.  From in or about May 2022, through in or about 2024, MATHEWS engaged in a scheme to embezzle hundreds of thousands of dollars from Near to pay rent for a luxury home located in Laguna Beach, California. MATHEWS took concerted efforts to conceal the embezzlement scheme from Near, its auditors, and its shareholders, including through the creation and use of fictitious invoices using misappropriated identities.  Similarly, from in or about 2021 to in or about 2022, AGARWAL also embezzled from Near by transferring funds equivalent to more than a million dollars to a Singaporean company owned by him, along with hundreds of thousands of dollars to a company owned by another Near executive (“Near Executive-3”).  Agarwal later facilitated a cover-up by causing Near’s finance department to transmit to Near’s independent auditors a fraudulent MobileFuse invoice to account for the transfers.

*               *                *

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

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 FBI and further thanked the U.S. Securities and Exchange Commission.

The Justice Department’s Office of International Affairs is handling the extradition. 

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

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

Conspiracy to commit securities fraud, to make false statements in a registration statement, to make false statements in reports required to be filed by the SEC, improperly influencing the conduct of audits, and falsifying the books and records of a publicly traded company, 18 U.S.C. § 371

(Count One)

Securities fraud, 15 U.S.C. §§ 78j(b) & 78ff

(Count Two)

Wire Fraud,

18 U.S.C. § 1343 (Count Three)

Aggravated Identity Theft, 18 U.S.C. § 1028A

Five years

20 years

20 years

Two years, mandatory consecutive

Conspiracy to commit securities fraud, to make false statements in a registration statement, to make false statements in reports required to be filed by the SEC, improperly influencing the conduct of audits, and falsifying the books and records of a publicly traded company, 18 U.S.C. § 371

(Count One)

Securities fraud, 15 U.S.C. §§ 78j(b) & 78ff

(Count Two)

Wire Fraud,

18 U.S.C. § 1343 (Count Five)

Five years

20 years

20 years

Conspiracy to commit securities fraud, to make false statements in a registration statement, to make false statements in reports required to be filed by the SEC, improperly influencing the conduct of audits, and falsifying the books and records of a publicly traded company, 18 U.S.C. § 371

(Count One)

Securities fraud, 15 U.S.C. §§ 78j(b) & 78ff

(Count Two)

Five 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.

United States Attorney for the Southern District of New York, Jay Clayton, announced today the arrest of CARLOS RIVAS in connection with the unsealing of a Complaint charging RIVAS with possessing hundreds of images and videos of child pornography that depict pre-pubescent children engaging in sexually explicit conduct.  RIVAS was arrested yesterday and presented before U.S. Magistrate Judge Robert W. Lehrburger.

“As alleged, Carlos Rivas possessed hundreds of images and videos of child pornography while working at a Bronx school,” said U.S. Attorney Jay Clayton.  “Child pornography has no place anywhere in our society, particularly anywhere connected to a school.  Our devoted prosecutors and partners will unrelentingly fight this scourge.”

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

In the summer of 2024, RIVAS worked at a school in the Bronx, New York (“School-1”).

From at least in or about July 14, 2024, through in or about August 15, 2024, RIVAS possessed hundreds of images and videos constituting child pornography on his account with an electronic service provider’s file storage service.  Some of the child pornography was uploaded to RIVAS’s account from an Internet Protocol address associated with School-1.

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RIVAS, 22, of the Bronx, New York, is charged with one count of possession of child pornography, including images and videos of prepubescent minors and minors who had not attained 12 years of age, which carries a maximum sentence of 20 years in prison.

The statutory maximum sentence 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 efforts of Homeland Security Investigations.

The case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Rita Maxwell is in charge of the prosecution.

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

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

Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, Nicolas Roos; Special Agent in Charge of the New York Field Office of Internal Revenue Service-Criminal Investigation (“IRS-CI”), Harry T. Chavis, Jr.; and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, announced today the guilty pleas of KEONNE RODRIGUEZ and WILLIAM LONERGAN HILL, the co-founders of Samourai Wallet (“Samourai”), a cryptocurrency mixer that facilitated more than $200 million in illegal transactions. RODRIGUEZ, the Chief Executive Officer of Samourai, and HILL, the Chief Technology Officer, pled guilty to participating in a conspiracy to operate a money transmitting business that transmitted crime proceeds from, among other things, illegal dark web markets, cyber intrusions, a spear phishing scheme, and schemes to defraud multiple decentralized finance protocols. RODRIGUEZ and HILL pled guilty on July 30, 2025, before U.S. District Judge Denise L. Cote. 

“The defendants created and operated a cryptocurrency mixing service that they knew enabled criminals to wash millions in dirty money, including proceeds from cryptocurrency thefts, drug trafficking operations, and fraud schemes,” said Attorney for the United States Nicolas Roos.  “When criminals exploit cryptocurrency technology for illicit purposes, it undermines the public trust and unfairly burdens legitimate cryptocurrency companies that are committed to operating lawfully. This Office and our partner agencies are committed to holding accountable those who exploit emerging technologies to launder crime proceeds.”  

“Rodriguez and Hill admitted to operating a money transmitting business that transmitted crime proceeds, essentially ‘washing’ more than $200 million in ‘dirty’ money for criminals,” said Special Agent in Charge of IRS-CI, Harry T. Chavis, Jr.  “They did not just facilitate this illicit movement of money, but also encouraged it.  Special Agents with IRS-CI New York and IRS-CI LA’s Cyber units worked with our federal and international law enforcement partners in this investigation that detailed the company’s clear disregard for the rule of law.  Even with all the ‘washing’ in this scheme, no one was clean in these transactions.”

“Keonne Rodriguez and William Hill's guilty pleas prove their cryptocurrency mixing service–Samourai Wallet–was designed to conceal criminal financial transactions and launder millions of dollars of dirty money,” said FBI Assistant Director in Charge Christopher G. Raia.  “The FBI is committed to bringing to justice anyone who uses technological innovation to facilitate illicit activity.”

According to court documents and admissions:

Beginning around 2015, RODRIGUEZ and HILL began developing Samourai, a mobile application that was designed and operated as a service for transmitting criminal proceeds.  The defendants engineered Samourai around two services specifically intended to conceal the nature of illicit transactions. The first, a Bitcoin mixing service known as “Whirlpool,” coordinated batches of Bitcoin exchanges between groups of Samourai users. Through this process, the original source of particular Bitcoin holdings became obscured within the blockchain’s transactional record, effectively preventing law enforcement agencies and cryptocurrency exchanges from tracing funds back to their origins.  The second service, called “Ricochet,” enabled users to introduce additional and unnecessary intermediate transactions—known as “hops”—between sending and receiving addresses.  This feature served a similar obfuscation purpose, making it substantially more difficult for monitoring entities to establish connections between cryptocurrency transfers and potential illicit activities.  The scale of these operations proved considerable: from Ricochet’s launch in 2017 and Whirlpool’s inception in 2019, more than 80,000 Bitcoin—valued at over $2 billion when calculated using contemporaneous exchange rates—passed through these services.  Samourai collected a fee for both services, estimated to be over $6 million in revenue based on Bitcoin’s value at the time each fee was earned.

RODRIGUEZ and HILL actively promoted Samourai’s utility for concealing criminal proceeds. Their communications reveal a clear understanding of Samourai’s illegal applications. In a WhatsApp exchange, when asked to explain the concept of “mixing,” RODRIGUEZ described the process as “money laundering for bitcoin.” HILL similarly marketed Samourai as a transmittal service for criminal proceeds on Dread, a darknet forum dedicated to discussing illegal marketplace activities. In one exchange on that platform, a user asked about the most “secure methods to clean dirty BTC” to make it “untraceable, clean” and ensure the user would “never get caught.” HILL responded by writing that “Samourai Whirlpool is a much better option” than a competitor service to “clean dirty BTC.” The defendant’s own marketing materials acknowledged that customers would include “Dark/Grey Market participants” moving proceeds from “illicit activity.”

The defendants’ conduct extended beyond passive facilitation to active encouragement of criminal activity. In June and July 2020, RODRIGUEZ and HILL tracked in real time the flow of crime proceeds from a widely publicized hack of a prominent social media platform. Rather than reporting the criminal activity or attempting to stop it, both defendants publicly and privately expressed their intent and desire that the hackers use Samourai’s Whirlpool service to move the crime proceeds of the hack. That encouragement included a July 16, 2020 Twitter exchange: after a third party encouraged the “lovely hackers” of the social media platform to “use @SamouraiWallet whirlpool to mix out once you are done collecting or decide to take profits” in order to “protect you from being found,” RODRIGUEZ responded by personally encouraging the hackers to “feed” and “send” the crime proceeds into Samourai’s Whirlpool. When the hackers used a different cryptocurrency mixing service to launder the proceeds of the hack, RODRIGUEZ and HILL expressed their disappointment on social media.

*                *                *

RODRIGUEZ, 36, of Harmony, Pennsylvania, and HILL, 67, a U.S. national who was arrested in Portugal, each pled guilty to one count of conspiracy to operate a money transmitting business knowing the business transmitted crime proceeds, which carries a maximum sentence of five years in prison. As part of their plea agreements with the Government, RODRIGUEZ and HILL agreed to forfeit $237,832,360.55.

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

Mr. Roos praised the investigative work of IRS-CI and the FBI.  He also acknowledged the assistance of the Justice Department’s Office of International Affairs, Europol, the Portuguese Judicial Police, the Procuradoria-Geral da República, the Icelandic Police, and the FBI Field Office in Pittsburgh for their assistance in the investigation of this case.

The Justice Department’s Office of International Affairs provided substantial assistance to secure the July 2024 extradition from Portugal of HILL.

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

United States Attorney for the Southern District of New York, Jay Clayton, announced today the conviction of ROMAN STORM, a co-founder of Tornado Cash, a cryptocurrency mixer that facilitated more than $1 billion in illegal transactions, for willfully conspiring to operate a money transmitting business that moved more than $1 billion in dirty money.  The defendant was found guilty following a four-week jury trial before U.S. District Judge Katherine Polk Failla. 

“Roman Storm and Tornado Cash provided a service for North Korean hackers and other criminals to move and hide more than $1 billion of dirty money,” said U.S. Attorney Jay Clayton.  “The speed, efficiency, and functionality of stablecoins and other digital assets offer great promise, but that promise cannot be an excuse for criminality.  Criminals who use new technology to commit age old crimes, including hiding dirty money, undermine the public trust, and unfairly cast a shadow on the many innovators who operate lawfully.  This Office and our partner agencies are committed to holding accountable those who exploit emerging technologies to commit crime.”  

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

STORM was one of the three founders of Tornado Cash, a cryptocurrency mixer that allowed its customers to engage in untraceable transfers of cryptocurrency.  The defendant and his co-conspirators created the core features of Tornado Cash, paid for critical infrastructure to operate Tornado Cash, promoted Tornado Cash, and made millions of dollars in profits from operating Tornado Cash.  Tornado Cash advertised to customers that it provided untraceable and anonymous financial transactions, and STORM continued to provide this service with knowledge that Tornado Cash was transmitting large volumes of criminal proceeds.  As proven at trial, STORM was personally aware of numerous instances in which criminals transmitted proceeds of criminal exploits using Tornado Cash, totaling more than $1 billion in criminal proceeds.  The transmission of such large sums of criminal proceeds benefitted the operations of Tornado Cash and STORM’s profits from running it.  Ultimately, STORM and his co-founders were able to cash out more than $12 million in profits from the illicit money transmitting business.

STORM designed Tornado Cash to generate profits for himself and his co-founders and continued to operate the business with knowledge that he was transmitting criminal proceeds.  This included his knowing transmission of hundreds of millions of dollars in criminal proceeds from the Ronin hack, which the Federal Bureau of Investigation (“FBI”) publicly attributed to the sanctioned North Korean cybercriminal organization, the Lazarus Group.  STORM continued to transmit these hacked funds even after the public attribution of the hack to the Lazarus Group.

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STORM, 36, of Auburn, Washington, was convicted of one count of conspiracy to operate an unlicensed money transmitting business, 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 investigative work of the FBI and the Internal Revenue Service-Criminal Investigations.

This case is being handled by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorneys Thane Rehn, Benjamin A. Gianforti, and Ben Arad, and Special Assistant U.S. Attorney Kevin Mosley, are in charge of the prosecution, with assistance from Paralegal Specialists Olivia Sebade and Dean Iannuzzelli.