Southern District of New York

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the Newark Field Office of Homeland Security Investigations (“HSI”), Michael McCarthy, announced today that JAIRO ELIEZER ARIAS CACERES, a former employee of the U.S. Embassy in Santo Domingo, Dominican Republic, was extradited from the Dominican Republic in connection with the unsealing of an Indictment charging ARIAS CACERES with conspiracy to import cocaine into the United States.  ARIAS CACERES will make his initial appearance later today before U.S. Magistrate Judge Robert W. Lehrburger.  The case is assigned to U.S. District Judge Gregory H. Woods. 

“Jairo Eliezer Arias Caceres allegedly orchestrated a cocaine smuggling scheme while employed as a security officer at our U.S. Embassy in the Dominican Republic and as a former security officer at the airport in Santo Domingo,” said U.S. Attorney Jay Clayton.  “While Arias Caceres was supposed to be protecting our diplomats and embassy staff from danger, he was allegedly busy endangering New Yorkers by pumping illegal drugs into our community.  Abuse of a position of national trust to traffic in deadly narcotics shocks the sensibilities of New Yorkers and the women and men of our office are committed to bringing those who abuse that trust to justice.”

“The charges against Jairo Arias Caceres are the result of an extensive investigation into a significant narcotics importation conspiracy, led by our Border Enforcement Security Task Force (BEST),” said HSI Newark Special Agent in Charge Michael S. McCarthy.  “In coordination with HSI Santo Domingo and multiple federal partners, this investigation successfully dismantled a sophisticated trafficking network responsible for moving dangerous narcotics from the Dominican Republic into the United States.  HSI remains committed to protecting the American public by targeting and disrupting the transnational criminal organizations that seek to bring illicit drugs into our communities.”

As alleged in the Indictment and other court filings:[1]

Since at least in or about April 2023 through at least in or about December 2023, ARIAS CACERES—while employed as a security officer by the U.S. Embassy in the Dominican Republic—operated a transnational conspiracy to import cocaine into the United States.  ARIAS CACERES devised a scheme through which couriers smuggled cocaine into various airports in the New York area by disguising the cocaine in the packaging of items purchased from the Santo Domingo Airport Duty Free store.  Photographs of some of the several cocaine seizures linked to ARIAS CACERES are below:

Before working for the U.S. Embassy, where he was employed from 2018 through 2025, ARIAS CACERES also worked for at least seven years as security officer at the Santo Domingo Airport.  ARIAS CACERES exploited his former positions of authority at the Embassy and the Airport in order to operate this narcotics importation scheme.

The defendant was in charge of several aspects of the scheme.  He helped to recruit couriers, paid for and arranged their travel to and from the Dominican Republic, and organized the logistics of the couriers’ receipt of cocaine from other airport employees.  For each of the couriers, the defendant was their main point of contact before, during, and after their smuggling trips to and from the Dominican Republic.

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ARIAS CACERES, 35, of Santo Domingo, Dominican Republic, is charged with one count of conspiracy to import narcotics into the U.S., 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 investigative work of HSI New York; the New York Division of the Drug Enforcement Administration; HSI Santo Domingo; the U.S. Customs and Border Protection (“CBP”) Strategic Partnership for Enforcement and Analytical Response Port of New York/New Jersey; CBP’s Air & Marine Operations; and the U.S. Marshals Service Office of International Operations, Dominican Republic Foreign Field Office.

The Justice Department's Office of International Affairs provided substantial assistance in securing the arrest and extradition to the United States of CACERES. 

This prosecution is part of an OCDETF operation.  OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Jackie Delligatti and Katherine Cheng are in charge of the prosecution.

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

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

United States Attorney for the Southern District of New York, Jay Clayton; Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Ricky J. Patel; Special Agent in Charge of the New York Regional Office of the Federal Deposit Insurance Corporation’s Office of the Inspector General (“FDIC-OIG”), Patricia Tarasca; and Acting Inspector in Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), Edward Gallashaw, announced today the unsealing of an Indictment charging LOURDES ROSALES BANEGAS and RAMON CONCEPCION with stealing more than one million dollars from over one hundred victims through an investment fraud scheme known as “LNJ Funds.”  BANEGAS is also charged with sending proceeds from the scheme to bank accounts in Colombia.  The defendants were arrested and will be presented today before U.S. Magistrate Judge Robert W. Lehrburger. 

“As alleged, Lourdes Rosales Banegas and Ramon Concepcion defrauded over one hundred victims through false promises about high and safe returns on their investments,” said U.S. Attorney Jay Clayton.  “But, Banegas and Concepcion selfishly spent their victims’ money on themselves.  Our office is committed to bringing those who prey on Main Street investors to justice.”   

“As alleged, the defendants fleeced over a hundred innocent victims out of millions of dollars through their sham claims of a ‘risk-free’ money-making opportunity,” said HSI Special Agent in Charge Ricky J. Patel.  “Their alleged Ponzi scheme crumbled today, as did any façade of legitimacy behind their purported investment firm, LNJ Funds.  Every day, HSI New York stands alongside our law enforcement partners in utilizing every tool at our disposal to ensure New Yorkers as well as those around the world, and their livelihoods, are protected from criminal opportunists’ intent on filling their pockets by any means necessary."

“The defendants allegedly made false promises as part of an investment scam involving more than 100 victims and enriched themselves while doing so,” said FDIC-OIG Special Agent in Charge Patricia Tarasca.  “Despite assurances that their victims could eventually recover their invested money, this did not prove to be the case.  We are pleased to join our law enforcement partners in bringing the perpetrators of such deceit to justice.” 

“The U.S. Postal Inspection Service will continue to investigate investment schemes such as this and hold those who seek to defraud the American public accountable,” said USPIS Acting Inspector in Charge Edward Gallashaw.  “Before investing, individuals should research all claims and promises of high returns made by investment companies.  Too often, victims are enticed by bold promises and overlook warning signs that something may be off.”

According to allegations in the Indictment:[1] 

BANEGAS and CONCEPCION marketed and operated a supposed investment business they called “LNJ Funds.”  BANEGAS and CONCEPCION told their victims that investments in LNJ Funds provided a guaranteed 20% rate of return every sixty days and that there was no risk of losing money in the investment.  BANEGAS and CONCEPCION claimed that LNJ Funds could offer risk-free investments because it invested money in student loans backed by the federal government.  BANEGAS and CONCEPCION also told their investors that they could withdraw their money from LNJ Funds after a waiting period of approximately 60 to 90 days. 

Contrary to BANEGAS and CONCEPCION’s promises, LNJ Funds did not invest the money that its prospective investors provided.  Instead, BANEGAS and CONCEPCION spent money from their victim-investors on airfare, hotels, retail stores, and personal expenses.  BANEGAS also sent money to several bank accounts in Colombia, including an account in her name, as well as other accounts under her control.  Additionally, at times money from some LNJ Funds investors was paid to other LNJ Funds investors to perpetuate the myth that LNJ Funds was a legitimate business rather than a scam. 

While BANEGAS and CONCEPCION told LNJ Funds investors that they could obtain a return of their invested money after a waiting period, BANEGAS and CONCEPCION did not maintain enough money to repay their investors.  Instead, BANEGAS and CONCEPCION stole and misused the investor money.  Moreover, instead of repaying their investors as promised, BANEGAS, CONCEPCION, and a co-conspirator insulted, ignored, and lied to victims who attempted to withdraw their money from LNJ Funds.

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BANEGAS, 43, and CONCEPCION, 43, both of Queens, New York, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. BANEGAS is also charged with three counts of engaging in monetary transactions in property derived from specified unlawful activity, each of which carries a maximum 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 HSI, FDIC-OIG, and USPIS. 

The case is being handled by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorney Christopher Brumwell is in charge of the prosecution, with the assistance of Paralegal Specialist Angelica Cotto.

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

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, announced that CHUKWUEMEKA VICTOR AMACHUKWU, a/k/a “Chukwuemeka Victor Eletuo,” a/k/a “So Kwan Leung,” was extradited yesterday to the U.S. from France in connection with hacking, fraud, and identity theft offenses.  AMACHUKWU was presented today before U.S. Magistrate Judge Robert W. Lehrburger.  The case is assigned to U.S. District Judge Paul G. Gardephe

“As alleged, Chukwuemeka Victor Amachukwu took part in a scheme to hack into U.S. tax businesses, trade in the stolen identifying information of victims, and defraud the IRS and other governmental bodies,” said U.S. Attorney Jay Clayton.  “Amachukwu also allegedly took part in a separate fraud scheme that promised his victims valuable investments that did not in fact exist.  This Office and our law enforcement partners stand committed to protecting Americans from criminals operating here and offshore.”

“Amachukwu allegedly operated multiple illicit fraud schemes – identity theft, computer intrusions via spearphishing, and false investments – profiting at the costs of others,” said FBI Assistant Director in Charge Christopher G. Raia.  “If you are attempting to enrich yourself by scamming Americans from behind a keyboard, the FBI with our extensive law enforcement partnerships is willing and able to bring you to the United States to face justice.”

According to the Superseding Indictment, public court filings, and statements made in court:[1]

Beginning in at least in or about 2019, AMACHUKWU, his co-conspirator Kinglsey Uchelue Utulu, and other Nigeria-based conspirators took part in a scheme to hack into U.S-based tax preparation businesses—including several U.S. based businesses located in New York, Texas, and other states—by utilizing spearphishing emails to obtain access to these business’s electronic systems.  Once they had obtained access, the conspirators stole the tax and other identifying information of the business’ customers.

The conspirators obtained the stolen identity information of thousands of individuals and used this information to file fraudulent tax returns with the Internal Revenue Service and state tax authorities.  The conspirators sought fraudulent refunds of at least approximately $8.4 million, of which they successfully obtained at least approximately $2.5 million.

In addition to filing fraudulent tax returns, the conspirators used the stolen identities to file fraudulent claims with the Small Business Administration’s Economic Injury Disaster Loan program.  The conspirators were able to obtain at least an additional approximately $819,000 in fraudulent payouts.

AMACHUKWU is also charged with participating in a separate fraud scheme.  In this scheme, the defendant offered victims investments in purportedly valuable standby letters of credit.  However, these letters of credit did not exist, and AMACHUKWU pocketed millions of dollars of his victims’ money.

AMACHUKWU was arrested in France at the request of the United States for his involvement in this scheme, and he was thereafter extradited to the U.S.

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AMACHUKWU, 39, of Nigeria, is charged with one count of conspiracy to commit computer intrusions, which carries a maximum sentence of five years in prison; two counts of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; two counts of wire fraud, which carries a maximum sentence of 20 years in prison; and aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison. 

The 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 FBI, as well as the assistance of the Justice Department’s Office of International Affairs and the U.S. Marshals Service in securing the arrest and extradition from France.  Mr. Clayton further thanked the French National Gendarmerie for their assistance in this case.

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

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

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

United States Attorney for the Southern District of New York, Jay Clayton, and Acting Inspector in Charge of the New York Division of the United States Postal Inspection Service (“USPIS”), Edward Gallashaw, announced today the arrest and filing of a Complaint charging JOHN GARCIA with assaulting a U.S. Postal Service (“USPS”) mail carrier with a deadly and dangerous weapon on July 16, 2025, in the Bronx, New York.  The defendant was presented this afternoon before U.S. Magistrate Judge Robert W. Lehrburger.

“John Garcia allegedly attacked a uniformed USPS carrier who was delivering the mail,” said U.S. Attorney Jay Clayton.  “Attacks like this are senseless and threaten the good people and systems we rely on every day.  They will not be tolerated.”

“The Postal Inspection Service takes matters involving the safety and well-being of postal service employees as a top priority,” said USPIS Acting Inspector in Charge Edward Gallashaw.  “Let it be clear, we will investigate and identify anyone who commits a criminal act against a USPS letter carrier.  I’d like to thank our local law enforcement partners and the U.S. Attorney’s Office for the Southern District of New York for their constant assistance.”   

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

On or about July 16, 2025, at approximately 12:50 p.m., in the Bronx, New York, GARCIA attacked a uniformed, on-duty USPS mail carrier (“Victim‑1”) with a sharp object.  GARCIA slashed Victim-1’s head and right ear, causing multiple deep lacerations that required Victim-1 to be hospitalized.

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GARCIA, 49, of the Bronx, is charged with one count of assaulting an officer of the U.S. using a deadly or dangerous weapon, which carries a maximum sentence of 20 years in prison.

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

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Kevin Grossinger 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, Sean S. Buckley, announced today the conviction of JOHN ARTHUR HANRATTY, the founder and managing director of a tax lien investment firm, for his role in a fraudulent scheme to steal over $20 million from investors and a Federal Deposit Insurance Corporation (“FDIC”)-insured bank.  The defendant was found guilty following a two-week jury trial before U.S. District Judge Lorna G. Schofield and is scheduled to be sentenced on January 20, 2026.

“John Arthur Hanratty, a New York-licensed attorney and the founder of a multi-million-dollar municipal tax lien investment firm, lied to investors and stole money from a bank by falsely claiming to own millions of dollars of tax lien collateral to obtain more than $20 million in loan advances,” said Attorney for the United States Sean S. Buckley.  “This verdict highlights our Office’s commitment to ensuring the integrity of the lending and investment markets by protecting lenders and investors from financial fraud.”

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

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

Between 2017 and 2021, HANRATTY participated in a fraudulent scheme to steal money from an FDIC-insured bank (“Victim Bank-1”) by drawing down on commercial lines of credit that had been extended to Ebury Street Capital.  Specifically, HANRATTY made materially false statements inflating by millions of dollars tax lien collateral pledged to Victim Bank-1.  As a result of HANRATTY’s misstatements, Victim Bank-1 was defrauded of over $20 million.  In addition, HANRATTY falsely told investors and Victim Bank-1 that the tax lien collateral was managed by an independent third-party custodian, when, in reality, that was not true.  The defendant’s fraud ultimately resulted in millions of dollars of losses for the investors in Ebury Street Capital and for Victim Bank-1. 

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HANRATTY, 50, of New Jersey, was convicted of one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of bank fraud, which carries a maximum sentence of 30 years in prison; and two counts of money laundering, each of which carries a maximum sentence of 10 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. Buckley praised the outstanding investigative work of the Federal Bureau of Investigation.

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that BRUCE MORRIS, a/k/a “G,” was sentenced today by U.S. District Judge Jesse M. Furman to 27 years in prison in connection with the August 2016 murder of Jerome Jemison in the Bronx, New York, as well as related narcotics and firearm offenses.  MORRIS was convicted following a jury trial in January 2025 of conspiracy to distribute crack cocaine and heroin and of using, carrying, and brandishing a firearm in connection with that conspiracy.  Following an evidentiary hearing, Judge Furman also found that MORRIS was responsible for the murder of Jemison. 

“In 2016, Bruce Morris murdered Jerome Jemison in the middle of the day on the landing of a public stairwell of an apartment building in the Bronx, a building that he terrorized for over a decade,” said U.S. Attorney Jay Clayton.  “Morris has now been held accountable for his heinous crimes.”  

As detailed in public filings and public court proceedings:

From at least 2012 through in or about June 2023, MORRIS led a narcotics conspiracy that sold crack cocaine and heroin in the Hunts Point neighborhood of the Bronx.  The base of MORRIS’s operation was an apartment in the building where his family lived at 868 Faile Street and the surrounding area, as well as, for a time, a vacant apartment in that same building.  MORRIS used guns, threats of violence, and acts of violence to maintain control of his drug trafficking business and the building.  On one occasion, when the superintendent of the building confronted the conspirators about their use of the vacant apartment, MORRIS threatened the superintendent with a firearm.

On August 11, 2016, during the middle of a summer day, on the third floor of 868 Faile Street, MORRIS shot Sal in the back of his head over a drug debt.  Sal was 46 years old.

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In addition to his prison term, MORRIS, 43, of the Bronx, New York, was sentenced to five years of supervised release.

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

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Matthew Weinberg, Camille L. Fletcher, Jeffrey W. Coyle, Jackie Delligatti, and Marguerite B. Colson are in charge of the prosecution, with the assistance of Paralegal Specialist Jackie Fleury.

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 today the unsealing of an Indictment charging ESTHERLYN FRIAS, a/k/a “Platinum,” a/k/a “Silver,” with conspiring to distribute narcotics resulting in death in connection with the poisoning death—or “overdose”—of a victim in Greenwich, Connecticut (“Victim-1”).  The case has been assigned to U.S. District Judge Kevin P. Castel.

“As alleged, Estherlyn Frias has been pumping deadly drugs into our communities for years, including fentanyl, heroin, cocaine, methamphetamine, and more,” said U.S. Attorney Jay Clayton.  “The drugs that he sold claimed someone’s life, and it appears they may have claimed others before.  Shockingly, Frias appears to have stored his significant drug supply in an apartment where his two young children lived with him, mere feet away from where they slept.  Our communities’ suffering from this kind of personal profit ends now.  As the charges in this case show, together with our law enforcement partners, we will relentlessly pursue those who distribute illegal drugs.”

“Another senseless death at the hands of an individual pushing illicit narcotics laced with fentanyl,” said DEA Special Agent in Charge Frank A. Tarentino. As alleged, Estherlyn Frias repeatedly trafficked and sold fentanyl laced products, going so far as to recklessly stash these deadly drugs in a bedroom where his children slept. While today’s indictment against Mr. Frias will not bring back the person whose life was lost; it undoubtably represents a step towards justice and likely saved countless others.  The DEA is committed to saving lives and will continue to work alongside our law enforcement partners in targeting those responsible for poisoning our communities and destroying families.”

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

From at least in or about January 2023 through at least in or about July 2025, FRIAS and others conspired to distribute methamphetamine, fentanyl, para-fluorofentanyl, cocaine base, cocaine, heroin, and methadone, including from FRIAS’s apartment in the Bronx, New York.  FRIAS used that apartment—where his girlfriend and two young children resided—as a stash house, where he stored significant quantities of a variety of narcotics.

As a consequence of the drug conspiracy engaged in by FRIAS and his co-conspirators, Victim-1 died from acute fentanyl and cocaine intoxication on or about July 1, 2025.  Victim-1 met FRIAS outside of FRIAS’s apartment the day before to buy drugs. Within about twelve hours of their meeting, Victim-1 died from consuming fentanyl and cocaine purchased from FRIAS. FRIAS had been selling Victim-1 drugs for weeks in the lead-up to dealing the drugs that killed Victim-1. Below are text messages from Victim-1’s phone in which FRIAS, saved in Victim-1’s phone under his alias “Platinum,” sent Victim-1 a menu of the drugs that he had for sale, among them “soft” (heroin), “hard” (cocaine), “down” (fentanyl), and “everything.”

Law enforcement searched FRIAS’s apartment on the night of Victim-1’s death, pursuant to a judicially authorized search warrant.  There, they found, among other things: 1,413 white glassine envelopes containing fentanyl; 603 purple glassine envelopes containing fentanyl; two plastic bags containing fentanyl; a third plastic bag containing fentanyl; 585 pink glassine envelopes containing para-fluorofentanyl; a plastic bag containing heroin; a second plastic bag containing heroin; two plastic bags containing crystal methamphetamine; a third plastic bag containing methamphetamine; 777 colored capsules containing crack cocaine; and 20 plastic bottles containing methadone.  Law enforcement also recovered various drug paraphernalia, including bulk packages of empty capsules, a digital scale, and a ledger summarizing FRIAS’s drug deals.

Additional records from FRIAS’s phones include two videos, both of which depict FRIAS walking into his apartment bedroom to retrieve drugs.  In both videos, FRIAS walks past a bed in which a young child can be seen asleep.  And, in both videos, after passing the bed, FRIAS pans the camera to a dresser—mere feet from where his children slept—covered in drugs, cash, and drug paraphernalia, including, in one video, a digital scale on which a plastic bag containing a white substance is resting (depicted in a screenshot below).

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FRIAS, 34, of the Bronx, New York, is charged with one count of conspiring to distribute narcotics resulting in death, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison; one count of possession with intent to distribute narcotics, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; and one count of possession with intent to distribute narcotics resulting in death, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison.

The statutory minimum and maximum 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 and the Greenwich Police Department.

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Rebecca R. Delfiner and Benjamin M. Burkett 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 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; Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia; and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch,  announced charges against JINGBIN JIANG and SU JIAN LIU, a/k/a “Fatty,” a/k/a “Ah Pang,” for a scheme to defraud elderly victims across the United States, which attempted to steal over $18 million from over 350 victims and resulted in actual losses of over $5 million to over 70 victims.  JIANG was arrested in Staten Island this morning and will be presented today before U.S. Magistrate Judge Stewart D. Aaron.  LIU is still at large.  The case is assigned to U.S. District Judge Mary Kay Vyskocil.

“As alleged, Jingbin Jiang and Su Jian Liu worked together with others to steal the hard-earned money of some our most vulnerable New Yorkers and others around the country,” said U.S. Attorney Jay Clayton.  “Taking advantage of our elderly after they have worked so hard to save and contributed so much to our city and this country is heartless and despicable.  These charges, and the efforts of the FBI and the NYPD, should serve as a warning to fraudsters and cybercriminals: New Yorkers want you held accountable for your crimes, and the women and men of our Office are committed to doing so.”

“Jingbin Jiang and Su Jian Liu allegedly defrauded elderly victims of more than $5 million by utilizing extortionate tactics to coerce withdrawals of significant cash or purchases of gold,” said FBI Assistant Director Christopher G. Raia.  “This alleged conspiracy wielded fear of bankruptcy and arrest to ensure victims complied with the unlawful requests for money.  The FBI is committed to apprehending any individual who utilizes online platforms to target and exploit vulnerable victims across the country.”

“These defendants allegedly led a nationwide fraud scheme with the goal of targeting innocent, elderly victims and stealing millions of their hard-earned savings,” said NYPD Commissioner Jessica S. Tisch.  “Jingbin Jiang and Su Jian Liu allegedly participated in a plot involving elaborate, fictitious narratives to manipulate elderly victims and trick them into participating in their scheme, which involved attempts to steal over $18 million from 350 people.  I am grateful to the members of the NYPD, FBI, and the U.S. Attorney’s Office for holding these alleged predatory fraudsters accountable.”

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

Between at least in or about 2023 and in or about July 2025, JIANG and LIU participated with others in a fraudulent scheme that primarily targeted elderly victims located all across the United States, including in New York, New Jersey, Pennsylvania, Massachusetts, Texas, Washington, Wisconsin, California, Connecticut, Arizona, North Carolina, South Carolina, Missouri, Mississippi, Kentucky, Utah, Oregon, Colorado, and Montana.

The scheme proceeded in the following manner: First, victims would typically see a pop-up message on their computers indicating that they needed to call a particular phone number controlled by members of the scheme.  The pop-up message would typically claim to come from a technology company, a bank, or the government.  Second, when victims called the phone number, they were told a fictitious narrative that would ultimately lead to a suggestion that the victims withdraw money from their bank account.  For example, some victims were falsely told that their computers had a virus, or that their computers had been hacked into and used to commit serious crimes, like downloading child sexual abuse material.  Others were falsely told that their bank accounts had been compromised and were vulnerable to unauthorized withdrawals.  To avoid arrest or protect their bank accounts from being compromised, victims were instructed to withdraw large amounts of cash from their bank accounts or purchase large quantities of gold.  Some victims were even told that their money would be safely held in the custody of a consumer protection agency like the Federal Trade Commission, and they were sent notices on fake federal government letterhead purporting to bear the signature of a federal government official:

Third, many victims were told that a courier would be arriving at their home (or other coordinated pick-up location) to retrieve the gold and/or cash.  Victims were often provided with the courier’s name (which was fictitious), a description of the courier’s clothing, and sometimes a password, purportedly to ensure the courier was authorized to pick up the gold and/or cash.  Other victims were told to purchase and transfer cryptocurrency or gift cards, which did not require a courier.  Victims were typically under the impression that this gold and/or cash would then be deposited, on the victims’ behalf, into a new, safe, uncompromised bank account (or with the Federal Trade Commission, as noted above) that they could access without concern in the future.  In reality, these funds were stolen and never returned to the victims.  Some victims engaged in multiple transactions before realizing the fraudulent nature of the scheme.

JIANG and LIU participated in the scheme by managing and supervising the couriers that traveled to meet the victims to pick up the cash and gold, which was then transported back to New York City.  JIANG and LIU received information about potential victims from other members of the scheme on text-messaging platforms, in messages that typically included the zip codes and the amounts of cash or gold to be collected from each victim. JIANG and LIU could then decide whether to accept the pick-up, and if they did, the other members of the scheme would provide more specific details about the victim and when and where to pick up the cash or gold.  After arranging for couriers to make the pick-ups, JIANG and LIU would provide updates to other members of the scheme about the couriers’ progress.  After the victims provided the criminal proceeds to the couriers, JIANG and LIU arranged for the criminal proceeds to be distributed to other members of the scheme, including by converting cash and gold into cryptocurrency to be easily transmitted to members of the scheme located overseas, including in India and China.  In total, members of the conspiracy have attempted to steal at least approximately $18 million from over 350 victims, and they have successfully stolen at least approximately $5 million from over 70 victims.

If you or someone you know has been victimized by this scheme, please file a complaint with the FBI’s Internet Crime Complaint Center, which is available at ic3.gov.

*                *                *

JIANG, 37, of Staten Island, New York, and LIU, 38 of Edmond, Oklahoma, are both charged with one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison; and one count of conspiracy to commit interstate transportation of stolen property, which carries a maximum sentence of five years in prison.

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

Mr. Clayton praised the investigative work of the FBI and NYPD’s Joint Organized Crime Task Force.  Mr. Clayton also thanked the New York State Police and the Bedford Police Department for their assistance in the investigation of this case.

This case is being handled by the Office’s Violent & Organized Crime Unit. Assistant U.S. Attorneys Andrew K. Chan and Angela Zhu are in charge of the prosecution. 

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

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that JAHREEK BUSH was sentenced today by U.S. District Judge Kenneth M. Karas to 117 months in prison for trafficking fentanyl and cocaine while armed with a loaded firearm.  BUSH was previously convicted, following a five-day jury trial, of six counts of distributing or possessing with intent to distribute narcotics and one count of carrying a firearm during a drug trafficking crime.

“Jahreek Bush dealt highly dangerous drugs, including fentanyl that he falsely branded as heroin, and he illegally carried a loaded gun while doing so,” said U.S. Attorney Jay Clayton.  “Armed drug traffickers fuel violence and overdoses in our communities.  This Office and our law enforcement partners will work tirelessly to bring to justice those who put innocent lives at risk.”

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

From January through April 2023, BUSH sold cocaine and fentanyl—which BUSH falsely billed as heroin—in Monticello, New York. On April 25, 2023, as BUSH arrived at a parking lot in Monticello for a drug deal, BUSH was arrested by officers from the New York State Police and the Sullivan County District Attorney’s Office. At the time of his arrest, BUSH was wearing a fanny pack containing a loaded 9-millimeter semi‑automatic handgun, more than 100 individually wrapped packages containing fentanyl, and plastic bags containing additional fentanyl and cocaine.  Images of the handgun and packages are shown below.

*                *                *

In addition to the prison term, BUSH, 29, of Monticello, New York, was sentenced to three years of supervised release.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation Hudson Valley Safe Streets Task Force, the New York State Police, and the Sullivan County District Attorney’s Office in connection with this investigation.

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

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Ricky J. Patel, announced that JUAN CARLOS PADILLA SANTOS was sentenced today by U.S. District Judge Vernon S. Broderick to 100 months in prison for illegally re-entering the U.S. after having been previously deported twice and having been the subject of a third removal order.  In connection with the instant illegal re-entry offense, PADILLA SANTOS made false statements to immigration authorities and on a green card replacement form he had submitted. 

“Juan Carlos Padilla Santos was previously deported after he committed multiple serious drug offenses in the U.S.,” said U.S. Attorney Jay Clayton. “Like so many, Santos then deceitfully and illegally exploited our immigration system. Dangerous felons who return to this country illegally after being deported will be prosecuted to the fullest extent of the law. We thank the women and men of Homeland Security Investigations for their commitment to these matters.”

“Juan Carlos Padilla Santos exhibited time and time again his disregard for our immigration laws needed for public safety,” said HSI Special Agent in Charge Ricky J. Patel.  “With a history that includes murder, narcotics possession, and even apparently faking his own death, this defendant took repeated steps to illegally enter and re-enter the United States. Padilla Santos now faces a significant sentence for his actions.”

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

PADILLA SANTOS was deported from the U.S. for the first time in 2010, after he was convicted of conspiring to distribute narcotics and sentenced to nearly seven and a half years in prison.  Less than a year after being deported, he re-entered the U.S. illegally and was again ordered to be removed, in absentia.  In 2016, PADILLA SANTOS was convicted of murder in the Dominican Republic and was sentenced to 15 years in prison.  Instead of serving that sentence, PADILLA SANTOS again returned to the U.S. illegally, where in 2018 he was convicted of possessing cocaine and bail jumping, and ultimately deported for a second time.  In 2019, PADILLA SANTOS appears to have falsified his death in the Dominican Republic and, in 2021, he illegally re-entered the U.S. for a third time.  In doing so, he made false statements to U.S. Customs and Border Protection claiming to be a valid lawful permanent resident of the U.S. and subsequently submitted a U.S. green card replacement form in which he stated under penalty of perjury that he had never previously been deported or ordered to be removed. 

*               *                *

In addition to his prison term, PADILLA SANTOS, 50, of the Dominican Republic, was sentenced to three years of supervised release.

Mr. Clayton praised the outstanding investigative work of HSI New York and thanked Enforcement and Removal Operations and its Criminal Prosecutions Unit, the U.S. Citizenship and Immigration Services Office of Fraud Detection and National Security, and HSI Santo Domingo International Operations for their assistance.

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that AUSTIN MORRISHOW was sentenced today to 15 years in prison—the maximum sentence prescribed by statute—for illegally possessing ammunition in connection with a June 30, 2023, shooting in which MORRISHOW fired multiple shots at fleeing vehicles on a residential street in the Bronx, striking and seriously injuring a five-year-old girl.  MORRISHOW previously pled guilty before U.S. District Judge Loretta A. Preska, who imposed today’s sentence, as well as the sentence of MORRISHOW’s co-defendant, CURTIS WHITE, on July 9, 2025.  

“On June 30, 2023, Austin Morrishow and his co-defendant, Curtis White, fired several shots while attending a sidewalk vigil for someone who, in a sad twist of irony, was killed in a shooting,” said U.S. Attorney Jay Clayton.  “Morrishow’s brazen acts left a bullet in a five-year-old child’s chest.  Instead of accepting responsibility, Morrishow remained a fugitive for eight months.  Today’s sentence sends an important message: if you threaten the lives of innocent New Yorkers through senseless gun violence, we will find you and prosecute you to the fullest extent of the law.”

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

On June 30, 2023, MORRISHOW, WHITE, and several others were gathered on a residential sidewalk in the Bronx, attending a vigil for an individual who had been killed by gunfire just the day before.  As three cars idled nearby, one of the cars backfired, causing the group attending the vigil to drop to the ground and scatter.  MORRISHOW took cover behind a parked vehicle for a few seconds before aiming a .40 caliber pistol at the three nearby cars while draped over the roof of the parked vehicle, assuming a shooting stance, and emptying his .40 caliber pistol at the three nearby cars.  Shortly after MORRISHOW began shooting, WHITE sprinted after the three fleeing cars, firing his .380 caliber pistol wildly.  The shots fired by MORRISHOW and WHITE left at least seven .40 caliber shell casings and two .380 caliber shell casings in the street, and bullet fragments, bullet holes, and shattered windows in nearby parked cars. One of the shots fired by MORRISHOW hit a five-year-old girl sitting in the backseat of one of the cars in the chest, narrowly missing her vital organs.  Photographs of MORRISHOW firing his handgun at the fleeing vehicles and the back of the vehicle in which the five-year-old girl was sitting, with bullet holes circled in red, are below.

MORRISHOW and WHITE fled immediately after the shooting.  Although WHITE was apprehended shortly after the shooting in July 2023, MORRISHOW evaded law enforcement until February 2024.  MORRISHOW was not permitted to possess ammunition because of, among other felony convictions, a prior federal conviction for using and carrying a firearm during and in relation to a narcotics conspiracy, for which he was sentenced to 60 months in prison.  At the time of the shooting, MORRISHOW was also serving a term of supervised release in connection with his previous federal conviction.  WHITE was not permitted to possess a firearm or ammunition because of his prior state conviction for attempted first-degree assault with intent to cause serious injury with a weapon.

*                *                *

In addition to the prison term, MORRISHOW, 27, of the Bronx, New York, was sentenced to three years of supervised release and ordered to pay restitution to the victim of the shooting.  WHITE, 28, of the Bronx, New York, was previously sentenced to 51 months in prison to be followed by three years of supervised release and was also ordered to pay restitution to the victim of the shooting.      

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

The prosecution of this case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Jerry J. Fang is in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced the conviction of JONATHAN BANYAN yesterday for possessing ammunition after a felony conviction.  On April 7, 2025, BANYAN brought ammunition into the Daniel Patrick Moynihan U.S. Courthouse.  The defendant was found guilty following a four-day jury trial before U.S. District Judge Jed S. Rakoff.

“Everyone who enters a federal courthouse—judges and juries, lawyers and litigants, the press and the public—must know they are safe,” said U.S. Attorney Jay Clayton. “This conviction sends a clear message: ammunition carried by a convicted felon should not be tolerated in our community, let alone in the court.” 

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

On April 7, 2025, BANYAN entered the Daniel Patrick Moynihan U.S. Courthouse wearing a backpack.  Inside that backpack were 18 bullets in three different calibers.  As BANYAN passed through the security station, court security officers spotted the bullets.  BANYAN grabbed the bag of bullets and tried to hide it in his pocket, but court security officers stopped him and recovered the ammunition.  BANYAN has previously been convicted of a felony.

*                *                *

BANYAN, 39, of Brooklyn, New York, was convicted of knowingly possessing ammunition after having been convicted of a felony, which carries a maximum penalty of 15 years in prison.  BANYAN is scheduled to be sentenced on December 1, 2025.

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

Mr. Clayton praised the outstanding investigative work of the U.S. Marshals Service.  He also thanked the court security officers for their assistance.

The prosecution is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys James G. Mandilk, Ariana L. Bloom, and Nicholas S. Bradley are in charge of the prosecution, with the assistance of Paralegal Specialist Samantha Roberts.

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 Director of the New York Field Office of U.S. Customs and Border Protection (“CBP”), Francis J. Russo, announced today the filing of a Complaint charging MIGUEL FRANCISCO MORA NUNEZ and CHRISTHIAN AYBAR-BERROA in connection with the shooting of an off-duty CBP Officer.  The incident occurred on July 19, 2025, in Manhattan, New York.  AYBAR-BERROA was arrested today and will be presented tomorrow before Magistrate Judge Ona T. Wang.

“As alleged, Miguel Mora Nunez and Christhian Aybar-Berroa came to a New York City park and Mora Nunez opened fire—hitting a federal officer in the face,” said U.S. Attorney Jay Clayton.  “Gun violence will not go unanswered.  Our office will relentlessly pursue anyone who threatens the safety of New Yorkers and the federal officers sworn to protect them.”

“As alleged, these defendants entered and spent years in our country illegally, and their criminal activity culminated in Saturday night’s near-deadly attack on one of our own,” said HSI Special Agent in Charge Ricky J. Patel.  “Today’s announcement underscores HSI New York’s tireless commitment to answers, and ultimately justice on behalf of our DHS family, alongside our partners from CBP, the NYPD, and the United States Attorney's Office for Southern District of New York.  As we continue to hope for the speedy recovery of the CBP officer, we will leave no stone unturned – we owe that much to the law enforcement community and the American public at-large.”

"Our officer demonstrated extraordinary bravery and professionalism in the face of imminent danger," said CBP Director Francis J. Russo. "His quick and decisive actions taken not only saved the officer's life but also saved the life of his girlfriend and took a dangerous criminal off the streets, preventing further harm to the community.  We are immensely proud of our officer's actions and dedication to duty.  Our thoughts and prayers are with him and the family, and we are hopeful for a full recovery.  We thank the Southern District of New York, HSI, and the New York City Police Department for their collaboration and partnership.  Their actions have been instrumental in saving our officer's life and in assisting with apprehending the suspects." 

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

On or about July 19, 2025, MORA NUNEZ shot an off-duty CBP Officer in Fort Washington Park in Manhattan, New York.  A bullet MORA NUNEZ fired struck the CBP Officer in the face and right arm.  The CBP Officer appeared to return fire, hitting MORA NUNEZ twice, before MORA NUNEZ fled on a motorbike driven by AYBAR-BERROA.  AYBAR-BERROA drove MORA NUNEZ to a hospital.  AYBAR-BERROA later tried to get rid of the clothing he was wearing during the shooting because it was bloody, and discussed with a relative of MORA NUNEZ that they needed to get rid of AYBAR-BERROA's bloody clothes. 

Both MORA NUNEZ and AYBAR-BERROA entered the U.S. illegally, are in the U.S. unlawfully, and are subject to orders of removal from the U.S.

*                *                *

MORA NUNEZ, 21, of the Dominican Republic, is charged with one count of possession of ammunition by an illegal alien, which carries a maximum sentence of 15 years in prison, and AYBAR-BERROA, 22, also of the Dominican Republic, is charged with accessory after the fact, which carries a maximum sentence of seven and a half years in prison.

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

Mr. Clayton thanked the New York City Police Department and Customs and Border Protection for their assistance in this case.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Mostafa Khairy 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 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 Secretary of Public Affairs for the Department of Homeland Security, Tricia McLaughlin, announced today the arrest and filing of a Complaint charging BASS NDIAYE with assaulting federal Immigration and Customs Enforcement (“ICE”) officers and using a deadly and dangerous weapon.  The incident occurred on July 18, 2025, at 26 Federal Plaza in New York, New York, where immigration processing is conducted.  The defendant was presented this afternoon before Magistrate Judge Ona Wang.

“Bass Ndiaye’s alleged attempt to attack multiple ICE officers by wielding a dangerous weapon endangered numerous members of law enforcement and nearly a dozen civilians,” said U.S. Attorney Jay Clayton.  “The safety of federal law enforcement and the communities they protect is paramount, and we will prosecute those who threaten that safety to the full extent of the law.”

“ICE arrested Bass Ndiaye—an illegal alien from Senegal—on July 17,” said DHS Assistant Secretray Tricia McLaughlin.  “While in custody, he attempted to stab law enforcement officers and others surrounding him.  Now, this dangerous criminal will face justice for his violent actions.  Make no mistake: attacks on law enforcement are on the rise.  Secretary Noem stands with the brave men and women of law enforcement as they risk their lives to remove criminal illegal aliens and protect Americans.”

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

On or about July 18, 2025, at approximately 6:00 p.m., NDIAYE was being processed at 26 Federal Plaza in New York, New York, and awaiting transport to an immigration detention center.

While in the processing room, NDIAYE seized a pair of scissors.  NDIAYE began slashing the scissors in the air and wielding them as a weapon, moving aggressively toward and attempting to stab several security guards, ICE officers, a Homeland Security Investigations Special Agent, and the approximately dozen other detainees in the room, among others.

Due to the quick actions and training of the officers and security guards in the area, NDIAYE was ultimately restrained.

*                *                *

NDIAYE, 22, of Senegal, is charged with one count of assaulting an officer of the U.S. using a deadly or dangerous weapon, which carries a maximum sentence of 20 years in prison.

The maximum 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.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Leslie Arffa 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 DA’QUAN TUCKER was sentenced today by U.S. District Judge Philip M. Halpern to 57 months in prison for repeatedly stabbing his former cellmate in the head and face with a 6‑inch contraband knife on April 3, 2024, while incarcerated at Federal Correctional Institution (“FCI”) Otisville.  In March 2025, TUCKER pled guilty to assault with a dangerous weapon and possessing contraband in prison.

“Da’Quan Tucker brutally attacked a fellow inmate in the prison yard at FCI Otisville without provocation by repeatedly stabbing him in the head and face with a contraband knife,” said U.S. Attorney Jay Clayton.  “Violence like this risks the lives and safety of inmates and prison staff and will not be tolerated in federal prison.  Today’s sentence demonstrates that such conduct will be met with serious punishment.”

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

On April 3, 2024, TUCKER was incarcerated at FCI Otisville, where he was serving a sentence related to a robbery he committed in July 2023 while he was on supervised release.  That day, TUCKER, without provocation, repeatedly stabbed another inmate—his former cellmate—in the head and face using a six-inch contraband knife.  Following the assault, TUCKER told prison staff that he would attack the victim again if he had the chance and would try to kill him.

*                *                *

In addition to the prison term TUCKER, 23 of Washington, D.C., was sentenced to three years of supervised release.

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 Shaun E. Werbelow and Justin L. Brooke are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the New York Field Office of Internal Revenue Service-Criminal Investigation (“IRS-CI”), Harry T. Chavis, Jr., announced the unsealing of a 14-count Complaint charging NIGEL KENNETH JOSEPH with failing to pay years of employee payroll taxes, scheming to defraud a construction contractor of millions of dollars, and aggravated identify theft.  JOSEPH was arrested and presented yesterday before U.S. Magistrate Judge Ona T. Wang.

“As alleged, Nigel Joseph didn’t just shortchange his workers—he lied about it, falsified records, and pocketed the money for himself,” said U.S. Attorney Jay Clayton.  “Then he allegedly defrauded the public by ducking millions in taxes. That’s not entrepreneurship that fuels growth—it’s fraud that erodes trust.”

“When a person purportedly leases luxury vehicles, buys NBA tickets and travels to tropical islands instead of paying payroll taxes for his employees, it is the American people who are victimized,” said IRS-CI Special Agent in Charge Harry T. Chavis, Jr.  “There is no turning a blind eye to this egregious fraud, and our CI agents work relentlessly to follow the money and bring those who think they can evade payroll taxes and falsify records to justice.”

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

JOSEPH founded BWK, a masonry subcontractor registered in the Bronx, New York, in 2019.  Between 2019 and 2021, BWK earned at least $10 million performing construction across New York, New Jersey, and Connecticut.  Despite these earnings, JOSEPH willfully refused to collect payroll taxes from his employees and refused to pay taxes he owed as an employer. According to an IRS-CI analysis of financial records, JOSEPH failed to pay at least approximately $2.9 million on behalf of his employees and at least approximately $750,000 he owed as an employer. Rather than pay taxes, JOSEPH used BWK funds to finance his own lifestyle—including by transferring tens of thousands of dollars to his wife; making personal rental payments; purchasing courtside NBA tickets and a Rolex; leasing a BMW 3-Series, a Mercedes GLE, and a BMW 5-Series; and traveling to the Dominican Republic and Jamaica.

According to interviews with employees and business partners, JOSEPH said, in sum and substance, that he did not want to file taxes and sometimes refused to speak to an accountant because he did not want to talk about how much he owed to the Government.  An employee said that JOSEPH chose to not collect or file taxes because the IRS was, JOSEPH said in sum and substance, not paying attention during the COVID-19 pandemic.

Moreover, because JOSEPH knew that payroll taxes had not been properly withheld by BWK, JOSEPH also directed the production of falsified certified payroll documents in order to obtain approximately $1.96 million in payments pursuant to at least two construction contracts.  According to documents reviewed and interviews conducted by IRS-CI, JOSEPH conspired with others to produce falsified documents listing the names, hours worked, wages, and tax withholdings for at least approximately 10 employees between in or about October 2021 and June 2022 in order to obtain payment for performing masonry work as part of two elementary school construction projects on Long Island.

In order to falsify payroll documents as part of the scheme, on or about November 17, 2021, JOSEPH texted an employee instructions to “Put [an employee], [another employee], yourself and one other laborer” as employees on a construction site where the employee—who performed only payroll functions for BWK—in fact never worked.  In a text message he sent on or about November 8, 2021, JOSEPH directed an employee to identify JOSEPH as a “foreman”; JOSEPH’s wife as a “laborer”; and two other employees as “laborers.”  In fact, JOSEPH was not a foreman; his wife was not a laborer; and neither of the other two employees were laborers, either.

In a text message sent on or about February 3, 2022, JOSEPH expressed concern that the falsified certifications would be uncovered, writing in response to a warning from an employee that “[w]e have big problems . . . [w]ith the taxes,” that, “Damn . . . I’m thinking I should not have put everyone working 35 hours every week.”  On or about March 28, 2022, JOSEPH directed an employee in text messages that “this is going to be the last month that we do this with [the] accountant . . . [a]nd then you and I gonna do it ourselves,” adding that he would “fake it until we make it.”

*               *                *

JOSEPH, 45, of Bergenfield, New Jersey, is charged with 11 counts of failure to account for and pay over payroll taxes, each of which carries a maximum sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.

The mandatory 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 investigative work of IRS–CI.

This case is being handled by the Office’s General Crimes 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 defendant is presumed innocent unless and until proven guilty.

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

United States Attorney for the Southern District of New York, Jay Clayton; Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia; and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today charges against MICHAEL GANN alleging that he manufactured at least seven improvised explosive devices (“IEDs”) using precursor chemicals—chemicals that can be combined to create an explosive mixture—that he had ordered on the internet, stored at least five IEDs and shotgun shells on adjoining rooftops of residential apartment buildings in the SoHo neighborhood of Manhattan, threw at least one IED onto the subway tracks of the Williamsburg Bridge, and subsequently lied to law enforcement about having disposed of his explosives and supplies in a dumpster.  This case has been assigned to U.S. District Judge Dale E. Ho.

“The safety of New Yorkers is paramount,” said U.S. Attorney Jay Clayton.  “As alleged, Michael Gann built explosive devices, stored them on a rooftop in SoHo, and threw one onto the subway tracks—putting countless lives at risk.  Thanks to swift work by our law enforcement partners, no one was harmed.  That vigilance assuredly prevented a tragedy in New York.”

“Michael Gann allegedly produced multiple improvised explosive devices intended for use in Manhattan,” said FBI Assistant Director in Charge Christopher G. Raia.  “Due to the successful partnership of law enforcement agencies in New York, Gann was swiftly brought to justice before he could harm innocent civilians shortly after his dangerous actions became known.  The FBI’s Joint Terrorism Task Force is enduring in its commitment and determination to protect the homeland.”

“This defendant allegedly stockpiled homemade explosives and traveled to New York City with these deadly devices,” said NYPD Commissioner Jessica S. Tisch.  “He threw one of these devices onto an active subway track and stored others on the rooftop of a residential building, but because of the skilled investigative work and swift response from the NYPD and our partners, we were able to intervene before he caused any harm.  I am grateful to the members of the NYPD, FBI, and the U.S. Attorney’s Office for all the work they do every day to keep New Yorkers safe.”

As alleged in the Complaint, Indictment, and public court filings:[1]

In or about May 2025, GANN ordered approximately two pounds of potassium perchlorate and approximately one pound of aluminum powder—precursor chemicals—online, along with over 200 cardboard tubes and over 50-feet worth of fuses.  In or about early June 2025, GANN received his packages containing the precursor chemicals and other supplies, mixed the precursor chemicals together, applied a flame to the mixture, and caused an explosion.  GANN subsequently assembled at least seven IEDs using the precursor chemicals, cardboard tubes, and fuses.

GANN stored the precursor chemicals and at least five IEDs, pictured below, on the rooftops of residential apartment buildings in SoHo.  The pictured black device contained approximately 30 grams of explosive powder—approximately 600 times the legal limit for consumer fireworks.

GANN also stored at least four shotgun shells on the same rooftops, which he intended to combine with one or more of the IEDs.

GANN threw a sixth IED onto the subway tracks on the Williamsburg Bridge, as pictured below.

On or about June 5, 2025, law enforcement agents arrested GANN in SoHo, incident to which they recovered a seventh IED from GANN’s person.  Following GANN’s arrest, GANN falsely told law enforcement, in substance and in part, that he had disposed of the precursor chemicals and the shotgun shells in a dumpster in Manhattan.

In or about May and June 2025, GANN conducted internet searches related to explosives and firearms, including: “will i pass a background check,” “gun background check test,” “can i buy a gun in any state without ffl [federal firearms license],” “3D gun printing,” “gun stores,” “clorine bomb,” “how to make flash powder from household items,” “what to mix with potassium perchlorate to make flash powder,” “alluminum powder,” “black powder nearby,” “quarter stick m1000 firecracker,” “1/2 stick dynamite,” and “rechargeable nail gun to shoot into steal.”

On or about June 5, 2025, just hours before GANN was arrested with an IED on his person, GANN posted to Instagram, “Who wants me to go out to play like no tomorrow?”

*               *                *

GANN, 55, of Inwood, New York, is charged with one count of attempted destruction of property by means of explosives, which carries a mandatory minimum of five years in prison and a maximum sentence of 20 years in prison; one count of transportation of explosive materials, which carries a maximum sentence of 10 years in prison; and one count of unlawful possession of destructive devices, which also carries a maximum sentence of 10 years in prison.

The minimum and maximum potential sentences 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 efforts of the New York Joint Terrorism Task Force of the FBI, which consists of investigators and analysts from the FBI, NYPD, and over 50 other federal, state, and local agencies; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Nassau County Police Department; and the New York Metropolitan Transportation Authority.

This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jonathan L. Bodansky, Michael D. Lockard, and Chelsea L. Scism, and Special Assistant U.S. Attorney Julie Isaacson, are in charge of the prosecution.

[1] As the introductory phrase signifies, the entirety of the charging instruments and other public filings to date constitute only allegations, and every fact described herein should be treated as an allegation.

United States Attorney for the Southern District of New York, Jay Clayton, announced the conviction at trial yesterday of BIANNEURY PENA, a/k/a “Charly,” for his role in gun and drug trafficking conspiracies as well as his unlawful possession of a firearm as an illegal alien.  The conviction comes after a 4-day jury trial before U.S. District Judge Denise L. Cote.  PENA is scheduled to be sentenced on October 17, 2025. 

“Within weeks of entering the United States unlawfully, Pena immersed himself in a gun and drug trafficking scheme,” said U.S. Attorney Jay Clayton.  “Pena and his crew smuggled guns and cocaine up and down the east coast without regard for the danger they were bringing to New Yorkers.  Thanks to the prompt action of the DEA and our prosecutors, Pena was arrested and has been held accountable for his crimes.”

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

On June 7, 2024, PENA and ABEL ROSARIO were arrested in New York, New York, after arriving from North Carolina by bus.  At the time of their arrest, PENA and ROSARIO were smuggling two firearms into New York City from North Carolina.  In their possession were the below-depicted Aero Precision model M4E1 firearm, a Glock .40 caliber model 23 handgun, dozens of rounds of ammunition, a standard magazine, two high-capacity magazines, and a drum magazine.

Just a month earlier, in April 2024, PENA illegally entered the U.S. and began conspiring with ROSARIO, who was unlawfully present in the U.S. after having been previously deported.   Between May and June 2024, PENA took three round trips between New York and North Carolina, during which he smuggled cocaine to North Carolina and returned with firearms.   

*               *               *

PENA, 35, of the Dominican Republic, was convicted of three total counts and faces up to 50 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 New York Drug Enforcement Task Force, the Bureau of Alcohol, Firearms, Tobacco and Explosives, the Department of Homeland Security, the New York City Police Department, the Port Authority Police Department, and the New York State Police.

This case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Ashley C. Nicolas, Alexandra S. Messiter, and Brandon D. Harper 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 CHRISTINE HUNSICKER with wire fraud, securities fraud, money laundering, making false statements to a financial institution, and aggravated identity theft.  The charges in the Indictment arise from an alleged scheme by the defendant to defraud investors in the fashion technology business CaaStle and a related venture out of more than $300 million through false statements, misleading claims, and fabricated documents.  HUNSICKER self-surrendered this morning and will be presented this afternoon before U.S. Magistrate Judge Jennifer E. Willis.  The case has been assigned to U.S. District Judge J. Paul Oetken. 

“As alleged, Christine Hunsicker defrauded investors of hundreds of millions of dollars through document forgery, fabricated audits, and material misrepresentations about her company’s financial condition,” said U.S. Attorney Jay Clayton.  “The promise of pre-IPO technology companies can be fertile ground for fraudsters who play on investor euphoria.  Investors should be aware of these incentives and that pre-IPO companies are not subject to the rigors of SEC registration.  This Office is committed to protecting investors who place their trust and capital in emerging companies.  We will continue to work closely with our law enforcement partners to investigate, detect, and prosecute those individuals who abuse our markets and our investors”

 “Christine Hunsicker allegedly submitted fraudulent financial statements to swindle investors and banks of more than $300 million,” said FBI Assistant Director in Charge Christopher G. Raia.  “This alleged scheme was stitched together with repeated deception and misinformation, ultimately betraying the trust of the defendant’s clients.  The FBI remains committed to apprehending any business owners who implement unlawful practices to increase their personal wealth.”

As alleged in the Indictment:[1]

HUNSICKER, a well-known entrepreneur and successful businessperson in the fashion-tech industry, founded and was the chief executive officer of CaaStle, a clothing technology business.  While promoting CaaStle as a rapidly growing business valued at more than $1.4 billion, HUNSICKER knew that CaaStle was in financial distress with limited cash and significant expenses.  To raise the capital for CaaStle’s operations, HUNSICKER provided investors with falsified income statements, fake audited financial statements, fictitious bank records, and sham corporate documents that grossly overstated CaaStle’s operating profit, revenue, and available cash. She also misrepresented to investors that their funds would be used to purchase discounted shares from existing shareholders who needed liquidity, when in fact she fabricated the existence of those shareholders and used the money as new capital for CaaStle while concealing the company’s cash needs.  In total, HUNSICKER fraudulently induced more than $275 million in investments.

When confronted by an audit firm in October 2023 about transmitting a fake audit to an investor, HUNSICKER lied, falsely claiming that she had created the fake audit in connection with a lecture she gave at Princeton University, and that sending the audit to the investor had been a one-time error. In reality, HUNSICKER had provided two fake audits to the investor while soliciting an investment. She later repaid that investor to prevent the public disclosure of her fraud. Undeterred, she continued the scheme, providing an investor with fake bank account screenshots showing nearly $200 million in available cash when CaaStle had less than $200,000. One month later, in October 2024, HUNSICKER provided a different investor with a fake draft audit. In 2024, HUNSICKER also falsified the signature of a Board director to make it appear that the Board had authorized the grant of stock options to another investor, raising more than $20 million for CaaStle. Around the same time, HUNSICKER extended her fraudulent activities to a new business venture, P180, using false information about CaaStle’s success to raise approximately $30 million for P180. HUNSICKER also submitted false information about CaaStle to a bank in order to obtain and keep a $20 million personal loan.

Even after the CaaStle Board removed HUNSICKER as Chair and prohibited her from soliciting investments, she continued her fraudulent activities and attempted to raise new capital. In early 2025, she sold $8 million of her CaaStle shares and more than $5 million in P180 convertible notes without disclosing material information to investors. In February 2025, HUNSICKER attempted to sell an additional $19 million of her CaaStle shares to another investor. HUNSICKER persisted in her deceptive practices even after law enforcement agents seized her electronic devices in March 2025, continuing to meet with the investor about a fake audit without revealing its fraudulent nature, her removal from the Board, or the prohibition against her selling shares. CaaStle filed for Chapter 7 bankruptcy on June 20, 2025.

*               *                *

HUNSICKER, 48, of Lafayette, New Jersey, is charged with one count of wire fraud, two counts of securities fraud, and one count of money laundering, each of which carries a maximum sentence of 20 years in prison.  HUNSICKER is also charged with one count of making false statements to a financial institution, which carries a maximum sentence of 30 years in prison, and aggravated identity theft, which carries a mandatory sentence of two years in prison.       

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

Mr. Clayton praised the outstanding work of the FBI. 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 Marguerite Colson 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, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today that KARL SMITH, a/k/a “Pacavell,” and CHELSEY HARRIS, a/k/a “Ms. Chinn,” have pled guilty before U.S. District Judge Paul E. Engelmayer for their role in orchestrating a shooting that killed Clarisa Burgos, an innocent bystander.  HARRIS pled guilty on June 26, 2025, and is scheduled to be sentenced on November 6, 2025, and SMITH pled guilty yesterday and is scheduled to be sentenced on December 8, 2025.  Two other defendants, DAJAHN MCBEAN, a/k/a “Jeezy Mula,” a/k/a “Freeze,” and JULISSA BARTHOLOMEW, a/k/a “Trophy,” a/k/a “Tactical Mommy,” have been charged and are awaiting trial.

“Karl Smith and Chelsey Harris participated in an elaborate plot to murder their victim, setting him up to be shot multiple times at several locations across New York City in December 2023,” said U.S. Attorney Jay Clayton.  “During one of those shootings, an innocent bystander, Clarisa Burgos, was tragically killed.  Thanks to the hard work of the prosecutors in this Office and our law enforcement partners, Smith and Harris will now be held to account for this heinous crime.  We and the NYPD are committed to making our streets safer and will tirelessly fight against gun crime.”

“This wasn’t random gunfire – it was a calculated plot to carry out a murder on New York City streets, and an innocent woman paid the price,” said NYPD Commissioner Jessica S. Tisch.  “It’s a stark reminder of how reckless, calculated violence puts innocent New Yorkers in the line of fire.  I commend our detectives and federal partners for their unrelenting work to take violent criminals off the streets and hold them accountable.”

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

In December 2023, MCBEAN was detained at the Metropolitan Detention Center in Brooklyn, New York (“MDC Brooklyn”), awaiting sentencing for directing a separate gang-related shooting in January 2017.  While in federal custody, MCBEAN feuded over social media with another person (“Victim-1”).  MCBEAN then used a contraband cellphone from inside MDC Brooklyn to conspire with SMITH and HARRIS, who were at liberty in the community, to lure Victim-1 to various nightclubs in New York City where MCBEAN had arranged for gunmen to kill Victim-1.  MCBEAN paid SMITH and HARRIS through intermediaries, including BARTHOLOMEW, for their roles in this scheme.

The plot to kill Victim-1 resulted in two shootings.  First, on December 24, 2023, MCBEAN and his co-conspirators lured Victim-1 to a nightclub (“Club-1”) in Queens, New York. Outside Club-1, gunmen shot and struck Victim-1’s car multiple times but missed Victim-1.  Second, on December 26, 2023, MCBEAN and his co-conspirators tried again to kill Victim-1, this time luring him to a different nightclub (“Club-2”) in Queens.  At MCBEAN’s direction from within MDC Brooklyn, gunmen again fired on Victim1’s car when it was parked outside Club-2.  The bullets struck Victim-1 multiple times, but Victim-1 survived.  The bullets also struck and killed Clarisa Burgos, who was seated in Victim-1’s car.  Clarisa Burgos was twenty-eight years old.

*                *                *

SMITH, 27, of Queens, New York, and HARRIS, 24, of the Bronx, New York, each pled guilty to stalking resulting in life threatening bodily injury and death, which carries a maximum term of life in prison.  SMITH also pled guilty to aiding and abetting the discharge of a firearm in furtherance of the plot to kill Victim-1, which carries a mandatory minimum term of 10 years in prison.  HARRIS additionally pled guilty to aiding and abetting the possession of a firearm in furtherance of the plot to kill Victim-1, which carries mandatory minimum term of five years 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 defendants will be determined by a judge.

Mr. Clayton praised the work of the U.S. Secret Service Financial Crimes Task Force and the NYPD.  Mr. Clayton also thanked the Special Agents from Homeland Security Investigations’ El Dorado Task Force for their assistance in the investigation.  He added that the investigation is ongoing.

This case is being handled by the Office’s Violent & Organized Crime Unit.  Assistant U.S. Attorneys Ryan W. Allison, Andrew Chan, Dominic Gentile, and Timothy Ly are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Ricky J. Patel, announced today the arrest of WILVYN ANTONIO ROSARIO MARTINEZ, a/k/a “Anthony,” a self-proclaimed member of the Trinitarios street gang.  ROSARIO MARTINEZ is charged with, among other things, conspiring to distribute fentanyl and possessing, in connection with that conspiracy, numerous firearms, including an untraceable firearm and several devices that operated to convert the untraceable firearm into a machine gun capable of automatically shooting more than one shot, without manual reloading, by a single function of the trigger.  ROSARIO MARTINEZ was presented yesterday before a U.S. Magistrate Judge in the District of Massachusetts.

“As alleged, Rosario Martinez traveled from Massachusetts to New York to deal highly dangerous drugs and guns,” said U.S. Attorney Jay Clayton.  “Besides selling fentanyl in the form of counterfeit pharmaceutical pills, multiple loaded firearms, firearms with serial numbers partially defaced, and an untraceable ghost gun, he also allegedly sold switches to convert the ghost gun into a fully automatic machine gun.  The trafficking of these deadly poisons and lethal weapons fuels violence and overdose deaths in our communities.  Together with our law enforcement partners, we will relentlessly pursue those who sell illegal drugs and firearms and prosecute them to the fullest extent of the law.”

“Wilvyn Antonio Rosario Martinez and his associates are accused of crimes that jeopardize the public’s safety in several ways,” said HSI Special Agent in Charge Ricky J. Patel.  “As alleged, he was among individuals found to be in possession of several firearms, including a ghost gun, several firearm ‘switches,’ which convert a pistol into a machine gun, and thousands of potentially ultra-deadly fentanyl pills – all of which could have caused irreparable harm or death to countless members of our New York neighborhoods.  I thank the brave Special Agents and NYPD Detectives with HSI New York’s Violent Gang Task Force for confronting our community’s most serious offenses directly and without hesitation.”

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

On five occasions between approximately December 2024 and May 2025, ROSARIO MARTINEZ and his associates – who claimed to be Trinitarios members – traveled from Massachusetts to New York to sell approximately 580 grams of powder fentanyl and counterfeit 30-milligram oxycodone pills that actually were pressed fentanyl, seven firearms, more than 100 rounds of ammunition (including armor piercing bullets), five firearm switches, and other firearm accessories.  The firearms included three loaded firearms, two firearms with partially defaced serial numbers, a rifle, and a privately manufactured, untraceable ghost gun. NYPD analysis of the firearm switches confirmed that each one was operable and converted the ghost gun that was sold with the switches into a fully automatic machine gun, capable of continuous fire so long as bullets remained in the firearm’s clip.  A photograph of the switches, some of the firearms, some of the ammunition, and some of the fentanyl pills sold by ROSARIO MARTINEZ and his associates appears below:

March 4, 2025 sale of a semiautomatic rifle, a pistol with a partially obliterated serial number, a magazine that had been loaded with 8 armor piercing bullets, 65 other rounds of ammunition, and approximately 595 fentanyl pills

May 7, 2025 sale of a ghost gun, a magazine that had been loaded with 9 rounds of ammunition, 5 ghost gun switches, and approximately 2,000 fentanyl pills

*               *                *   

ROSARIO MARTINEZ, 35, of Lynn, Massachusetts, is charged with one count of conspiring to distribute fentanyl, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; one count of possessing firearms, including machine guns, in furtherance of the fentanyl trafficking conspiracy, which carries a mandatory sentence of 30 years in prison, to be served consecutive to any other prison term imposed, and a maximum sentence of life in prison; and one count of possessing and transferring a machine gun, which carries a maximum potential sentence of 10 years in prison.

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

Mr. Clayton praised the outstanding investigative work of HSI’s Violent Gang Task Force and the Yonkers Police Department.

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorney Katherine Cheng 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 Acting Inspector in Charge of the New York Division of the United States Postal Inspection Service (“USPIS”), Edward Gallashaw, announced today the filing of an Information charging JOSEPH D’AMBROSIO with engaging in a scheme to defraud clients who believed they were investing in securities and other investments managed by D’AMBROSIO through a private investment fund he managed for friends and family.  D’AMBROSIO also entered a guilty plea to the Information in a proceeding today before U.S. District Judge P. Kevin Castel, to whom the case has been assigned. 

“Joseph D’Ambrosio stole more than $5 million from his friends and family and hid this fraud until the money ran out,” said U.S. Attorney Jay Clayton.  “Fraudsters often prey on those close to them – friends, family, members of religious and social groups – using their trust to exploit them.  This Office will bring those who violate that trust to justice and recognizes Mr. D’Ambrosio’s self-reporting and acceptance of responsibility.”

“For years D’Ambrosio, using deceptive tactics, allegedly stole from people who trusted him all in the name of greed,” said USPIS Acting Inspector in Charge Edward Gallashaw.  “What makes D’Ambrosio’s alleged conduct especially appalling is that his victims were personal friends and family.  The Postal Inspection Service will continue investigating fraud cases such as these and will hold individuals accountable who use their professional positions as a mechanism to steal from trusting investors.”

According to the allegations contained in the Information:

From at least in or about 2010, up to and including at least in or about December 2024, D’AMBROSIO was the operator of Hereford Holdings, a private investment vehicle for him, his family, and his friends.  D’AMBROSIO told his investors that he had invested their Hereford funds in a private fund managed by an investment advisor for which D’AMBROSIO served as the chief investment officer.  In reality, D’AMBROSIO misappropriated investor funds for his personal use.

To deceive Hereford investors and keep the scheme going, D’AMBROSIO sent Hereford investors false investment performance letters and fraudulent K-1 tax forms that stated the investors had gained money, when they had not.  When some investors sought withdrawals from Hereford, D’AMBROSIO used new investor funds to pay them in a Ponzi-like fashion to keep the scheme going.  In December 2024, facing withdrawal requests he could not honor, D’AMBROSIO confessed to his crimes.

D’AMBROSIO fraudulently obtained more than $5 million from investors during the course of his fraud scheme.

*                *               *

D’AMBROSIO, 66, of Bronxville, New York, is charged with one count of investment adviser fraud, which carries a maximum sentence of five years in prison.

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

Mr. Clayton praised the outstanding work of the USPIS.  Mr. Clayton further thanked the Securities and Exchange Commission, which has separately filed civil charges against D’AMBROSIO.

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

United States Attorney for the Southern District of New York, Jay Clayton, announced that MARIO STEWART, a Sergeant with the Mount Vernon Police Department (“MVPD”), was sentenced by U.S. District Judge Kenneth M. Karas to six months in prison.  While working as a Sergeant for the MVPD in 2019, STEWART used excessive force against an individual experiencing a mental health crisis (the “Victim”), tasing him seven times over the course of several minutes, in violation of the Victim’s rights under the U.S. Constitution.

“New Yorkers depend daily on the women and men of law enforcement,” said U.S. Attorney Jay Clayton.  “We trust them to keep us safe, to act in line with their training, and to respect our individual rights.  This trust, earned over decades, is essential to our way of life.  When a law enforcement officer breaches that trust, we are all affected.  Yesterday’s sentencing was about protecting the trust between our communities and our police departments.”

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

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

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

In pronouncing STEWART’s sentence, U.S. District Judge Kenneth M. Karas stated that a prison sentence was necessary “to send a clear message” to law enforcement that “even though your job is really hard, and even though you protect us every day and you have to make really tough decisions, there are still times where you have to yield to authority, and where the line is clear, you cannot cross it. . . . The people of Mount Vernon have to know that they will not be themselves victims of their law enforcement officers.”

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In addition to the prison term, STEWART, 46, of Brooklyn, New York, was also sentenced to six months of home confinement.

Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation and thanked the Westchester County District Attorney’s Office and the MVPD for their assistance with the investigation.

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

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Ricky J. Patel, on the verdict in U.S. v. Sean Combs:

Sex crimes deeply scar victims, and the disturbing reality is that sex crimes are all too present in many aspects of our society.  Victims endure gut-wrenching physical and mental abuse, leading to lasting trauma.  New Yorkers and all Americans want this scourge stopped and perpetrators brought to justice. 

Prosecuting sex crimes requires brave victims to come forward and tell their harrowing stories.  We and our law enforcement partners recognize the hardships victims endure and have prioritized a victim-centered approach to investigating and prosecuting these cases.  

Today we recognize the important work of the SDNY’s Civil Rights Unit as well as the tireless efforts of the women and men at HSI who are devoted to combatting human trafficking.  We thank the Special Agents from the U.S. Attorney’s Office of the Southern District of New York, Digital Forensic Unit and the Complex Analytics and Social Media Enhancement (CASE) Team at the New York/New Jersey High Intensity Drug Trafficking Area.  We would also like to thank our partners at the NYPD for their assistance in this matter and for sharing our victim-centered approach to combatting sex crimes.  

The Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515, Sean Buckley, and the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, announced the arrest of ALI RASHAN on charges of health care fraud.  As alleged in a five-count Indictment unsealed on June 25, 2025, RASHAN, a medical doctor, was the CEO and founder of ClearMD, a provider of COVID-19 testing services in New York City which fraudulently billed insurance companies for approximately $24 million for COVID-19 testing and submitted fraudulent medical records in furtherance of this fraudulent scheme.  RASHAN was presented before U.S. Magistrate Judge Barbara Moses on June 25 and the case has been assigned to Judge Paul A. Engelmayer.

“While New Yorkers were doing their best to get through a public health crisis, Ali Rashan was allegedly cashing in on it,” said Attorney for the United States Sean Buckley.  “Our Office will not tolerate those who exploit the city’s pandemic response for personal profit.”

“Ali Rashan allegedly facilitated an elaborate scheme using fabricated medical records to steal more than $24 million,” said FBI Assistant Director in Charge Christopher G. Raia.  “This defendant allegedly violated his dual authorities as a medical doctor and CEO to receive reimbursement from thousands of illegitimate claims.  The FBI remains dedicated to investigating any individual who selfishly exploits our health care system for their personal benefit.

According to statements made in court and publicly filed documents in this case:[1]

From at least 2021 until in or about 2023, RASHAN, the founder and owner of ClearMD, a provider of medical testing services, agreed to submit and caused to be submitted to insurers fraudulent claims that billed for unperformed and unrequested services purportedly provided to patients who sought testing for COVID-19 and fraudulent medical records in support of these fraudulent claims.  For example, RASHAN directed ClearMD to submit or cause the submission of thousands of claims that billed for evaluation and management (“E/M”) services that were never performed.  Furthermore, at times during the relevant period, RASHAN directed ClearMD to submit claims to insurers billing for two to four COVID-19 testing codes, even though ClearMD had administered only a single COVID-19 test to patients.  Thereafter, in response to requests from insurers for documentation supporting its claims for reimbursement, RASHAN instructed ClearMD staff to write a software program to generate false medical records to support ClearMD’s fraudulent billings.  RASHAN directed ClearMD to submit these fabricated medical records to insurers to deceive them about the services that ClearMD had provided and to justify ClearMD’s retention of amounts paid to ClearMD in response to fraudulent claims.  This scheme resulted in losses of at least approximately $24 million.

*                *                *

RASHAN, 41, of New York, New York, is charged with one count of conspiracy to commit health care fraud, which carries a maximum sentence of 20 years in prison; one count of health care fraud, which carries a maximum sentence of 10 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of conspiracy to make false statements, which carries a maximum sentence of five years in prison; and one count of false statements relating to health care matters, which carries a maximum sentence of five years in prison.

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

Mr. Buckley praised the outstanding investigative work of the FBI.  Mr. Buckley also thanked the Office of Personnel Management’s Office of Inspector General and the U.S. Department of Labor, Employee Benefits Security Administration for their assistance in this investigation.

The charges announced today are part of a strategically coordinated, nationwide law enforcement action that resulted in criminal charges against 324 defendants for their alleged participation in health care fraud and illegal drug diversion schemes that involved the submission of over $14.6 billion in alleged false billings and over 15.6 million pills of illegally diverted controlled substances.  The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets.  In connection with this nationwide health care fraud takedown, the Government seized over $245 million in cash, luxury vehicles, and other assets.

Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Rushmi Bhaskaran, Timothy Capozzi, and Jaclyn Delligatti are in charge of the prosecution.

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

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

The 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 the unsealing of a Complaint charging JOSUE TORRES and ANTHONY GUERRA with participating in a scheme to obtain high-cost medications for HIV and other illnesses by causing fraudulent prescriptions to be issued using the stolen identities of medical practitioners and those practitioners’ purported patients.  TORRES and GUERRA were arrested on June 17, 2025, and presented before U.S. Magistrate Judge Henry J. Ricardo.

“As alleged, the defendants stole the identities of doctors and patients to convert valuable, life-saving medications into a source of illicit profits,” said U.S. Attorney Jay Clayton.  “By feeding the black market for prescription medications, the defendants’ alleged crimes endangered the safety of patients and undermined the integrity of our health care system.  Together with our partners at the FBI, we are committed to bringing to justice those who seek to profit by defrauding pharmacies, drug manufacturers, distributors, and insurers.”

“Josue Torres and Anthony Guerra allegedly procured and resold hundreds of illegitimate prescriptions through unauthorized access to pharmaceutical databases and copay assistance,” said FBI Assistant Director in Charge Christopher G. Raia.  “These defendants allegedly exploited private medical information of both practitioners and patients to perpetuate this elaborate scheme. The FBI remains committed to apprehending any individual who steals medications for illicit black-market profits.”

According to the allegations in the Complaint:[1]

From at least in or about August 2021 through the present, TORRES and GUERRA participated in a scheme to cause fraudulent prescriptions to be issued for certain high-cost prescription medications (the “High-Cost Medications”) used to treat HIV and other diseases, and to obtain those High-Cost Medications by picking them up at pharmacies or by having them shipped to a physical address.

TORRES accessed accounts on e-prescribing platforms using the names and other identifying information of certain physicians and other medical practitioners (the “Targeted Practitioners”) without the Targeted Practitioners’ authorization or knowledge.  TORRES and GUERRA then used the e-prescribing platforms to cause High-Cost Medication prescriptions (the “Fraudulent Prescriptions”) to be issued for certain individuals who did not require those medications (the “Sham Patients”).  The image below shows TORRES picking up HIV medication issued to a Sham Patient on or about December 30, 2022. 

TORRES and GUERRA secured significantly reduced copay amounts for the High-Cost Medications associated with the Fraudulent Prescriptions through the use of copay assistance programs, with copay assistance cards that bore the names of the Sham Patients.  In some cases, a Sham Patient’s private health insurance provider paid out money to cover a portion of the cost of a High-Cost Medication.

In total, TORRES, GUERRA, and other co-conspirators caused approximately 693 Fraudulent Prescriptions, including prescription refills, to issue from approximately 18 Targeted Practitioners.  Those Fraudulent Prescriptions contained approximately 55,626 tablets, capsules, or other units of medication, worth approximately $2,638,581.[1]

TORRES and GUERRA went on to sell the High-Cost Medications, which have significant resale value on the black market.

Below are texts messages from 2021 between TORRES (messages with green background) and GUERRA (messages with grey background). 

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TORRES, 45, of Brooklyn, New York, and GUERRA, 37, of the Bronx, New York, are charged with one count of conspiracy to commit wire fraud and health care fraud, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison to run consecutive to any other prison term.

The statutory minimum and maximum sentences 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 in connection with this investigation.

The charges announced today are part of a strategically coordinated, nationwide law enforcement action that resulted in criminal charges against 324 defendants for their alleged participation in health care fraud and illegal drug diversion schemes that involved the submission of over $14.6 billion in alleged false billings and over 15.6 million pills of illegally diverted controlled substances.  The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets.  In connection with this nationwide health care fraud takedown, the Government seized over $245 million in cash, luxury vehicles, and other assets.

Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Henry Ross 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 herein constitute only allegations, and every fact described should be treated as an allegation.

[2] The approximate total value of the Fraudulent Prescriptions was calculated by multiplying the number of prescription and prescription refills for a given High-Cost Medication by the national average drug acquisition cost, or “NADAC,” of that medication, as of in or about 2023. NADACs are published by the Centers for Medicare & Medicaid Services at: https://www.medicaid.gov/medicaid/nadac.

The United States Attorney for the Southern District of New York, Jay Clayton, announced today that GREGORY GUMUCIO was sentenced to four years in prison for participating in a conspiracy to commit tax evasion from 2012 to 2020.   GUMUCIO was the longtime leader of a prominent nationwide yoga business, Yoga to the People (“YTTP”), from which he made nearly $3.5 million in income between 2012 and 2020 yet did not file individual (or business) tax returns or pay any income taxes for at least eight consecutive years.  GUMUCIO pled guilty on October 4, 2024, before U.S. District Judge John P. Cronan, who imposed today’s sentence. 

“Gregory Gumucio built a profitable yoga empire and lived well off its success—but he refused to pay his taxes,” said U.S. Attorney Jay Clayton.  “Hard-working, tax-paying New Yorkers want our Office to pursue business owners who game the tax system.  With today’s sentencing, Mr. Gumucio is being held accountable.”

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

In or around 2006, GUMUCIO founded YTTP in New York, New York.  YTTP was originally donation-based: YTTP requested, but did not require, payment from its yoga students.  YTTP started with one yoga studio on the Lower East Side of Manhattan, and it became extremely popular.  Over the ensuing years, YTTP opened at least approximately 20 yoga studios or affiliated entities throughout New York City and in various other places, including California, Colorado, Arizona, Florida, and Washington State. YTTP also had a teacher training program, which earned substantial income from aspiring yoga teachers.  YTTP operated from at least approximately 2006 until 2020.  From 2010 to 2020, YTTP and its affiliates generated gross receipts of more than $20 million.  Despite those substantial revenues, YTTP never filed a corporate tax return with the Internal Revenue Service (“IRS”).

GUMUCIO was YTTP’s founder, principal owner, and functional chief executive officer, as he directed and made decisions for the YTTP enterprise.  From approximately 2012 through 2020, GUMUCIO received nearly $3.5 million in income and owed taxes to the IRS exceeding $1 million, but never filed a personal tax return with the IRS or paid any income taxes.  During the charged period, GUMUCIO repeatedly represented his annual income to be six figures to third parties not associated with the Government (e.g., a bank, a car financing company, and a real estate entity).  In one such instance, GUMUCIO submitted a fabricated tax return to a third party, which a co-defendant prepared for GUMUCIO at GUMUCIO’s request.  During the charged period, GUMUCIO enjoyed an extravagant lifestyle, which included frequent foreign travel; expensive hotels, meals, and clothing; NFL season tickets; and country club payments.

*                *                *

In addition to the prison term, GUMUCIO, 64, of Colorado Springs, Colorado, was sentenced to three years of supervised released.  GUMUCIO was also ordered to pay the IRS restitution in the amount of $2,729,407.10.

Mr. Clayton praised the outstanding efforts of the IRS Criminal Investigation’s New York and Dallas Field Offices; the U.S. Department of Labor, Office of Inspector General’s New York Regional Office; and Special Agents of the U.S. Attorney’s Office for the Southern District of New York.

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Rushmi Bhaskaran and Michael Neff are in charge of the prosecution.  

The United States Attorney for the Southern District of New York, Jay Clayton, and the Assistant Secretary of Public Affairs for the Department of Homeland Security, Tricia McLaughlin, announced today the arrest and filing of a Complaint charging JOEL ANTONIO ALONZO with assaulting a federal protective security officer and attempting to seize the officer’s service firearm.  The incident occurred on June 6, 2025, at 26 Federal Plaza in New York, New York, where Immigration Court proceedings are conducted.  The defendant was presented this afternoon before Magistrate Judge Barbara Moses.

“The safety of federal facilities and the dedicated personnel who serve there is non-negotiable,” said U.S. Attorney Jay Clayton.  “Joel Antonio Alonzo’s alleged attempt to forcibly seize a firearm from a federal security officer in a crowded public area endangered not only law enforcement personnel but also civilians, including children, nearby.  We will prosecute to the full extent of the law anyone who threatens the safety of our communities and the federal officers sworn to protect them.”

“Joel Antonio Alonzo, an illegal alien, assaulted one of our DHS law enforcement officers and lunged for his loaded gun” said Assistant Secretary Tricia McLaughlin.  “This incident underscores a disturbing trend—assaults against ICE personnel have increased.  Secretary Noem has been perfectly clear: Anyone who threatens the lives of federal officers will be prosecuted to the fullest extent of the law.”

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

On or about June 6, 2025, ALONZO arrived in the proximity of Immigration Court at 26 Federal Plaza where civilians, including children, were present.  ALONZO immediately exhibited disruptive behavior, forcing his way ahead of others and aggressively tossing papers at service window personnel.

While federal protective security officers were attempting to assist ALONZO, ALONZO suddenly lunged at one officer and grabbed his loaded service firearm with significant force, attempting to pull the firearm from its holster, as seen in the photo below.

Due to the quick actions and training of the federal protective security officers, ALONZO was unsuccessful and immediately restrained.

*                *                *

ALONZO, 19, of Honduras, is charged with one count of assaulting an officer of the U.S. using a deadly or dangerous weapon, which carries a maximum sentence of 20 years in prison.

The maximum 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.

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

The United States Attorney for the Southern District of New York, Jay Clayton; the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Michael Alfonso; and the Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced the unsealing of an Indictment charging ASHANTI WASHINGTON, a/k/a “Shani Boni,” with perjury at a federal criminal trial and obstruction of justice.  These charges relate to WASHINGTON’s repeated false testimony at the March 2025 trial of United States v. Kevin Perez, in which Perez was on trial for racketeering and violent crimes.  WASHINGTON was arrested on the evening of June 24, 2025, and presented yesterday before U.S. Magistrate Judge Barbara C. Moses.  The case is assigned to U.S. District Judge George B. Daniels.

“As alleged, Ashanti Washington swore an oath to tell the truth in federal court and repeatedly lied and attempted to obstruct a New York federal criminal trial,” said U.S. Attorney Jay Clayton.  “Truth under oath is central to our system of justice.  Those who break this duty will face consequences.”

“As alleged, Washington’s false testimony under oath obstructed justice and undermined the integrity of our legal system,” said HSI Acting Special Agent in Charge Michael Alfonso.  “Her deception led to her arrest, and she now faces federal charges.”

“As alleged, Ashanti Washington knowingly lied under oath to protect a violent gang member during a federal trial,” said NYPD Commissioner Jessica S. Tisch.  “This wasn’t just simple dishonesty—this was a calculated attack on the integrity of our judicial system.  I thank the NYPD investigators, HSI, and the U.S. Attorney’s Office for their work to hold accountable anyone who tries to obstruct justice.”

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

On March 10, 2025, trial in the matter of United States v. Kevin Perez, 23 Cr. 99 (LJL), commenced in which Perez was tried on charges of racketeering conspiracy, murder in aid of racketeering, attempted murder in aid of racketeering, and possession, use, brandish, and discharge of a firearm during and in relation to the attempted murder in aid of racketeering.  On March 20, 2025, the jury returned guilty verdicts as to racketeering conspiracy, attempted murder, and the firearm discharge count, and returned a not guilty verdict with respect to the murder. Perez faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison, with sentencing currently scheduled for July 16, 2025.

On March 17 and 18, 2025, Washington testified at Perez’s trial as a witness during the defense case and repeatedly lied while under oath.  Washington’s false testimony concerned:

• Her denying knowing about or touching the gun Perez used in the charged murder,
• Her denying knowledge of a particular gang hand sign and a gang member’s membership in that gang,
• And her claim that the victim in the charged murder had verbally threatened her and Perez before Perez shot and killed the victim.

As alleged in the Indictment, these statements were false. Indeed, while WASHINGTON testified that she did not know about or touch the gun that Perez used in the charged murder, subsequent investigation revealed that WASHINGTON’s DNA was found on multiple parts of that gun.

*                *               *

WASHINGTON, 23, of the Bronx, New York, is charged with three counts of perjury at a federal criminal trial, each of which carries a maximum term of five years in prison, and one count of obstruction of justice, which carries a maximum term of 10 years in prison.

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

Mr. Clayton praised the work of the Special Agents from the HSI Violent Gangs Task Force of the NYPD.  He added that the investigation is ongoing.

This case is being handled by the Office’s Violent & Organized Crime Unit.  Assistant U.S. Attorneys Michael Herman, Patrick Moroney, and Ni Qian 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 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.

The 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 the unsealing of a four-count criminal Indictment and Complaint charging KAI WEST, a/k/a “IntelBroker,” a/k/a “Kyle Northern,” with a years-long hacking scheme committed through the online identity “IntelBroker.”  WEST, using the IntelBroker identity, conspired with an online group named the CyberN[------], to steal data from a telecommunications company, municipal health care provider, an Internet service provider, and more than 40 other victims.  WEST, and his online co-conspirators, took that stolen data, and offered it for sale online for more than $2 million.  Collectively, WEST, through the “IntelBroker” identity and his online co-conspirators, caused in excess of $25 million in damages to victims.  WEST was arrested in France in February 2025, and the United States is seeking his extradition.  The case has been assigned to U.S. District Judge Katherine Polk Failla.

“The IntelBroker alias has caused millions in damages to victims around the world,” said U.S. Attorney Jay Clayton.  “This action reflects the FBI’s commitment to pursuing cybercriminals around the world.  New Yorkers are all too often the victims of intentional cyber schemes and our office is committed to bringing these remote actors to justice.”

“Kai West, an alleged serial hacker, is charged for a nefarious, years-long scheme to steal victim’s data and sell it for millions in illicit funds, causing more than $25 million in damages worldwide,” said FBI Assistant Director in Charge Christopher G. Raia.  “Today’s announcement should serve as a warning to anyone thinking they can hide behind a keyboard and commit cyber-crime with impunity; the FBI will find and hold you accountable no matter where you are.”

As alleged in the Indictment and Complaint:[1]

“IntelBroker” is the online moniker of WEST, who, in concert with his co-conspirators, compromised victims’ (typically companies) computer systems, exfiltrated data from those systems (e.g. customer lists and company marketing data), and then sold the stolen data for profit.  WEST accomplished his scheme in connection with his leadership of an online hacking group called the “CyberN[------],” which frequented a particular internet forum (“Forum-1”).

Between approximately 2023 to 2025, WEST offered hacked data for sale approximately 41 times; and offered to distribute hacked data for free (or for Forum-1 credits) approximately 117 times. WEST, and his co-conspirators, have sought to collect at least approximately $2,000,000 by selling the stolen data.  Based on information received from the victims of these breaches, WEST and his co-conspirators have cumulatively caused victim losses of at least $25,000,000.

Based on a review of WEST’s IntelBroker Forum-1 posts, approximately 158 threads started by WEST offered stolen data for sale, for Forum-1 credit, or for free, since in or about January 2023 through in or about February 2025.  At least 41 of those 158 public messages sell data from companies based in the United States.  Of those 158 messages, approximately 16 provided a specific asking price for the stolen data, which cumulatively totals at least $2,467,000. At least 25 of the 158 public messages invited Forum‑1 users to private message IntelBroker (i.e. WEST) to negotiate a sales price.  The remaining 117 public messages offer hacked data for free to Forum-1 users or in exchange for Forum-1 credits.  At least 46 of the 158 public messages indicate that WEST worked in concert with a particular Forum-1 user (“CC-1”) to obtain the data through a “breach” (i.e. “hack”).  WEST’s public messages (as IntelBroker) indicate that he accepts payment via Monero, which is a cryptocurrency that uses a blockchain with privacy-enhancing technologies to attempt to obfuscate transactions and seek to achieve anonymity and fungibility.

WEST’s prolific posting (as IntelBroker), and his sales of stolen data, have generated notoriety for the IntelBroker identity within the Forum-1 community. Indeed, from in or about August 2024 through in or about January 2025, “IntelBroker” was identified on Forum-1 as the site’s “owner.”  To further his username’s notoriety, WEST has associated different images with IntelBroker but primarily uses the following image as his calling card:

WEST’s victims include a U.S.-based telecommunications provider.  WEST, using the IntelBroker moniker, sold data from that telecommunications company, which included information about its customers.  That data was accessed by WEST by illegally accessing a server which was improperly configured.  On or about March 6, 2023, WEST, using the IntelBroker moniker, authored a public message on Forum-1 titled “CyberN[------] [redacted reference to Victim] Database.”  In that post, WEST offered for sale data from a municipal healthcare provider which included patient data such as names, Social Security numbers, dates of birth, genders, health plan information, employer information, among other information, from the victim’s patients. 

*               *                *

WEST, 25, a British national, is charged with conspiracy to commit computer intrusions, which carries a maximum sentence of five years in prison; conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; accessing a protected computer to obtain information, which carries a maximum sentence of five years in prison; and wire fraud, 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 a judge.

Mr. Clayton praised the outstanding work of the FBI and the Office of International Affairs of the Department of Justice’s Criminal Division.  He also thanked the French, Spanish, British, and Dutch authorities for their assistance. 

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

The charges contained in the Indictment and 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 Indictment and the Complaint, and the descriptions set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.

The United States Attorney for the Southern District of New York, Jay Clayton, and the Acting Administrator of the U.S. Drug Enforcement Administration (“DEA”), Robert Murphy, announced today that former Venezuelan general HUGO ARMANDO CARVAJAL BARRIOS, a/k/a “El Pollo,” pled guilty before U.S. District Judge Alvin K. Hellerstein to conspiracy to import cocaine into the United States, engaging in narco-terrorism for the benefit of the Fuerzas Armadas Revolucionarias de Colombia (the “FARC”), and related weapons offenses.

“The deeply troubling reality is that there are powerful foreign government officials who conspire to flood the United States with drugs that kill and debilitate,” said U.S. Attorney Jay Clayton. “Hugo Armando Carvajal Barrios was once one of the most powerful men in Venezuela.  For years, he and other officials in the Cartel de Los Soles used cocaine as a weapon—flooding New York and other American cities with poison.  In doing so, Carvajal Barrios partnered with a deadly terrorist group to support their combined drug trafficking and terrorism efforts, wreaking havoc on communities throughout the United States and elsewhere.   Today’s guilty plea demonstrates our commitment to holding accountable foreign officials who abuse their power to poison our citizens.  I commend the extraordinary efforts of our law enforcement allies in the DEA’s Special Operations Division and our other law enforcement partners here and abroad.”

“Hugo Armando Carvajal Barrios exploited his position as the director of Venezuela’s military intelligence and abandoned his responsibility to the people of Venezuela in order to intentionally cause harm to the United States,” said DEA Acting Administration Robert Murphy.  “After years of trying to evade law enforcement, Carvajal Barrios will now likely spend the rest of his life in federal prison. As evidenced in this case, DEA will relentlessly pursue anyone who uses violence, drugs, and intimidation to compromise the safety and security of the United States.”  

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

Beginning in at least 1999, CARVAJAL BARRIOS, a Venezuelan citizen and the former director of Venezuela’s military intelligence agency, which was known as the Direccion de Inteligencia Militar (“DIM”), along with other high-ranking Venezuelan government and military officials, acted as leaders and managers of the Cartel de Los Soles, or “Cartel of the Suns.”  CARVAJAL BARRIOS and other Cartel de Los Soles members abused the Venezuelan people and corrupted the legitimate institutions of Venezuela—including parts of the military, intelligence apparatus, legislature, and judiciary—to facilitate the importation of tons of cocaine into the United States.  The Cartel de Los Soles sought not only to enrich its members and enhance their power but also to “flood” the United States with cocaine and inflict the drug’s harmful and addictive effects on users in the United States.  To accomplish these goals, the leaders of the Cartel de Los Soles partnered with leaders of the FARC, a violent terrorist organization based in Colombia that was dedicated to the overthrow of the Colombian government, which was responsible for the production and distribution of the majority of the cocaine that reached the United States.

CARVAJAL BARRIOS held multiple positions of public trust in Venezuela that he exploited to benefit the Cartel de Los Soles, including as director of the DIM between approximately 2004 and 2011, and again in 2013.  CARVAJAL BARRIOS took advantage of that position to illegally traffic narcotics and support his drug trafficking partners, including the FARC.  In or about 2006, for example, CARVAJAL BARRIOS coordinated with other members of the Cartel de Los Soles to dispatch a 5.6-ton cocaine shipment from Venezuela on a DC-9 plane bearing a United States registration number.  The plane departed Venezuela and landed in Mexico, where Mexican authorities seized the 5.6 tons of cocaine upon arrival.  CARVAJAL BARRIOS also worked with the FARC to coordinate multi-ton drug shipments under his protection; provided heavily-armed security to protect drug shipments; and armed the FARC with automatic weapons and explosives to further the group’s drug trafficking and terrorist activities.  To accomplish cocaine distribution on this massive scale, CARVAJAL BARRIOS accepted millions of dollars from drug traffickers.  In addition, CARVAJAL BARRIOS participated in violence, including kidnappings and murder, to facilitate this cocaine trafficking and protect his co-conspirators.

One of CARVAJAL BARRIOS’s co-defendants in this case has already been sentenced.  On or about April 11, 2024, Cliver Antonio Alcala Cordones was sentenced principally to a term of 260 months in prison, after pleading guilty to providing material support, including firearms, to the FARC.  Other co-conspirators remain at large.

*                *               *

CARVAJAL BARRIOS, 65, of Venezuela, pled guilty to four counts contained in the Superseding Indictment. A table containing the charges and minimum and maximum penalties is set forth below.  CARVAJAL BARRIOS is scheduled to be sentenced on October 29, 2025.

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

Mr. Clayton praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, Miami Field Division, New York Field Division, Madrid Country Office, Bogota Country Office, and Mexico City Country Office; the Department of Homeland Security, Homeland Security Investigations; the U.S. Treasury Department, Office of Foreign Assets Control; the Counterterrorism Section of the Department of Justice’s National Security Division; the Narcotic and Dangerous Drug Section of the Department of Justice’s Criminal Division; the U.S. Attorney’s Office for the Southern District of Florida; the Department of Justice’s Office of International Affairs; the U.S. Embassy Madrid; the U.S. Embassy Bogota; the U.S. Embassy Mexico City; and our law enforcement partners in Colombia, Mexico, and Spain.

The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and July 19, 2023, extradition from Spain of Carvajal Barrios.

This prosecution is part of an Organized Crime Drug Enforcement Task Force (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.

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, with assistance from Trial Attorney Kevin Nunnally of the Counterterrorism Section.

Link to a previous press release in this case: https://www.justice.gov/usao-sdny/pr/former-venezuelan-official-hugo-armando-carvajal-barrios-extradited-united-states. 

The United States Attorney for the Southern District of New York, Jay Clayton, announced today the sentencing of SHPENDIM HAXHAJ, a/k/a “White Mike,” the last of seven defendants to be sentenced in a case involving members of a street gang known as the Young Bronx Money Getters, or “YBMG,” that operated in the Bronx, Long Island, Upstate New York, and Connecticut. HAXHAJ was sentenced to 35 years in prison for crimes relating to his membership in YBMG, including a conspiracy to commit murder for hire that resulted in the August 16, 2019, murder of Isael Lagares in the Bronx.  HAXHAJ previously pled guilty to conspiracy to commit murder for hire, attempted murder in aid of racketeering, and participating in a conspiracy to distribute and possess with intent to distribute controlled substances on August 7, 2023, before U.S. District Judge Katherine Polk Failla, who imposed today’s sentence.  HAXHAJ was the last of the seven defendants in the YBMG case before Judge Failla to have been convicted and sentenced.     

“For more than a decade, the YBMG gang terrorized communities in the Bronx, Long Island, Upstate New York, and Connecticut with drugs, guns, and senseless violence,” said U.S. Attorney Jay Clayton.  “Among YBMG’s many victims was Isael Lagares, who was gunned down after Haxhaj and other gang members paid a hitman to end his life.  The seven members of this incredibly violent gang have now been convicted and sentenced for their crimes.  The women and men of the Southern District will continue to vigorously pursue those who bring illegal drugs and violence into our communities.”

According to the Superseding Indictment, public court filings, evidence introduced at the trial of Yeltsin Beltran, a/k/a “Yells,” and statements made in court:

From at least in or about 2006 to in or about 2021, YBMG was a criminal enterprise centered in the Bronx.  In order to make money for the gang, protect the gang’s territory, and promote the gang’s standing, members of YBMG engaged in, among other things, narcotics trafficking and violence, including murder.  To that end, YBMG members sold heroin, cocaine, and marijuana, promoted their gang affiliation on social media, possessed firearms, and engaged in shootings as part of their gang membership and narcotics trafficking.

On or about August 16, 2019, HAXHAJ and BORIS BELTRAN hired a man to murder a rival gang member.  That same day, the hired hitman then shot and killed Lagares, who was socializing with a group of people on a residential street in the Bronx.

YBMG members also participated in a conspiracy to distribute narcotics in New York and elsewhere. HAXHAJ, YELTSIN BELTRAN, BORIS BELTRAN, JEREMY CEDENO, FRANCISCO ORTEGA, and IVIS PERDOMO participated in a conspiracy with other individuals to distribute heroin, cocaine, and marijuana from at least in or about 2006 up to and including 2021 and carried, brandished, and discharged firearms that were possessed in furtherance of their narcotics trafficking.

On or about December 23, 2019, PERDOMO shot two people non-fatally in a nightclub in the Bronx.

On or about June 7, 2019, CEDENO shot at a member of an opposing gang in New York, New York.

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A chart containing the names of the defendants, the charges they were convicted of, and the sentences they received is set forth below.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the New York City Police Department.

The case is being handled by the Office’s Violent and Organized Crime Unit and White Plains Division.  Assistant U.S. Attorneys Christopher Brumwell, Benjamin Gianforti, Brandon D. Harper, Frank Balsamello, and Mathew Andrews are in charge of the prosecution.

Defendant

Age

Conviction

Sentence

The United States Attorney for the Southern District of New York, Jay Clayton, announced today the conviction of TED ALBIN for his role in orchestrating a multimillion-dollar Medicare fraud scheme.  ALBIN was convicted following a 12-day jury trial before U.S. District Judge John G. Koeltl.

“Ted Albin brazenly defrauded our Medicare system using fake and fraudulent prescriptions,” said U.S. Attorney Jay Clayton.  “He cheated Medicare out of millions meant for real patients with every taxpayer footing the bill.  Today’s verdict makes clear: if you cheat Medicare, you will be prosecuted.”

According to court documents and evidence presented at trial:

From approximately 2016 through April 2021, ALBIN operated Grapevine Professional Services (“Grapevine”), a medical billing company, which he used to submit fraudulent reimbursement claims for durable medical equipment (“DME”), including back braces, knee braces, wrist braces, and shoulder braces.  ALBIN submitted thousands of fraudulent claims on behalf of DME supply companies that had engaged Grapevine for its billing services, including at least three DME supply companies owned and controlled by ALBIN and his sister, Erin Foley—Liberty Bell Medical, Skye Medical, and Priority Medical.  ALBIN’s fraudulent claims were based on prescriptions for DME which he knew had been illegally bought with kickbacks paid by the DME supply companies.  At least some of the kickback-tainted prescriptions billed by ALBIN were generated with forged doctor’s signatures and without regard to the medical need of the patients for whom braces had been prescribed.  ALBIN knew of the fraudulent nature of the claims he submitted to Medicare and nonetheless continued to submit such claims, over and over, for years. In total, the DME companies that ALBIN submitted claims for billed Medicare for over $38 million, on which Medicare paid out over $12 million.

*                *                *

ALBIN, 48, of Stuart, Florida, was convicted of one count of conspiracy to commit health care fraud and wire fraud, which carries a maximum sentence of 20 years; one count of health care fraud, which carries a maximum sentence of 10 years; one count of wire fraud, which carries a maximum sentence of 20 years; and one count of conspiracy to violate the Anti-Kickback Statute, which carries a maximum sentence of five years.  ALBIN is scheduled to be sentenced on December 10, 2025.

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

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys William Kinder, Jackie Delligatti, Brandon Thompson, and Ryan Finkel are in charge of the prosecution.  

The United States Attorney for the Southern District of New York, Jay Clayton, announced that MENACHEM “MAX” LIEBERMAN was sentenced today to 52 months in prison for two fraudulent schemes involving federally funded childcare companies.  LIEBERMAN previously pled guilty before U.S. District Judge Jennifer H. Rearden, who imposed today’s sentence. 

“Max Lieberman defrauded federal childcare programs that provide vital services to our most innocent and vulnerable,” said U.S. Attorney Jay Clayton.  “New Yorkers believe in opportunity, particularly for our children, and by defrauding our Head Start and childcare voucher programs, Max Lieberman exploited our collective belief in opportunity for his own financial gain.  The women and men of the Southern District of New York are committed to pursuing those who breach the public trust for illicit, personal financial gain.”

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

LIEBERMAN participated in two schemes involving federal grant programs meant to provide assistance for childcare to low-income families.  

First, between 2019 and January 2023, LIEBERMAN secretly “owned” and exercised control over a non-profit entity, Project Social Care Head Start Inc. (“PSCHS”), that operated in the New York City area (and which, as a non-profit entity, could not legally be privately owned).  The U.S. Department of Health and Human Services (“HHS”), which administers the Head Start program, annually granted to PSCHS millions of dollars that were to be used exclusively on the Head Start program and from which earning a profit is prohibited by law.  Between 2019 and 2021, LIEBERMAN paid co-defendant Martin Handler $4.7 million to obtain “ownership” over PSCHS, and used his control over PSCHS to impermissibly direct PSCHS’s Head Start funding to his own for-profit companies.  In order to protect his control over PSCHS’s funding, LIEBERMAN conspired with others to impair HHS’s ability to provide effective oversight of PSCHS by, among other things:

• Misrepresenting to HHS that PSCHS had an independent board of directors that was monitoring PSCHS,
• Submitting a letter to HHS when it began investigating LIEBERMAN’s involvement that falsely stated there were no conflicts of interest or less-than-arms’-length dealings with LIEBERMAN,
• And coordinating false testimony to HHS investigators.

Second, between July 2020 and January 2023, LIEBERMAN perpetrated a separate fraud that caused harm of nearly $2 million to the New York City Administration for Children’s Services (“ACS”), which administers a federally funded childcare voucher program for low-income families.  In July 2020, LIEBERMAN submitted an application to ACS on behalf of PSCHS that contained a false signature of the nominal executive director and included fake receipts for six children that purported to show those children were already attending the program, when in fact the program did not exist and no children attended.  When questioned by ACS whether the executive director’s signature was legitimate, LIEBERMAN created and submitted a fraudulently notarized document supposedly from the executive director that falsely affirmed that the signature was accurate.  From July 2020 through his arrest in January 2023, LIEBERMAN applied for and received over $1.8 million in ACS reimbursements, even though the program did not actually exist and no children attended the program except for a brief period from September 2022 to October 2022.

*                *                *

In addition to today’s prison sentence, LIEBERMAN, 48, of Brooklyn, New York, was sentenced to three years of supervised release and ordered to pay a fine of $200,000, restitution of $1,854,543.35 to ACS, and forfeit $1,774,543.35. 

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and HHS, Office of the Inspector General.  Mr. Clayton also thanked U.S. Department of Agriculture, Office of the Inspector General, and the New York City Department of Investigation for their assistance with this investigation.

This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Daniel H. Wolf, Catherine Ghosh, Jacob R. Fiddelman, and Stephanie Simon are in charge of the prosecution, with the assistance of Paralegal Specialist Nandita Vasantha.  

The United States Attorney for the Southern District of New York, Jay Clayton, and the Acting Inspector in Charge of the New York Division of the United States Postal Inspection Service, Edward Gallashaw, announced today the unsealing of a Superseding Indictment charging six defendants – MICHAEL EDWARDS, a/k/a “Only1Giela”; SHAKEEMO HILL, a/k/a “Keemo,” a/k/a “LBA Menace,” a/k/a “Lex”; WILLIAM HILL, a/k/a “Eway,” a/k/a “Skinny”; ALIXANDRIA LAUTURE, a/k/a “A$”; SHURON MALONE, a/k/a “First Name Last Name”; and CARLOS MERCADO, a/k/a “Kiz,” a/k/a “Kizzle” – with participating in a scheme to steal millions of dollars in checks from the mail.  EDWARDS and MERCADO were previously taken into custody on related charges, and SHAKEEMO HILL, WILLIAM HILL, LAUTURE, and MALONE were arrested earlier today.  SHAKEEMO HILL, WILLIAM HILL, and LAUTURE are expected to be presented before Chief U.S. Magistrate Judge Sarah Netburn, and MALONE is expected to be presented in the Middle District of Florida.  The case is assigned to U.S. District Judge John G. Koeltl.

“As alleged, the six defendants charged today lined their pockets by stealing checks destined for hard working New Yorkers and others,” said U.S. Attorney Jay Clayton. “Together with our partners at the Postal Inspection Service, we will fight to protect the integrity of the U.S. mail system—a public service upon which millions of Americans rely every day to send items of financial, professional, and personal importance.”

“The arrests today should send a very clear message that those who engage in mail theft and bank fraud will be held accountable,” said USPIS Acting Inspector in Charge Edward Gallashaw.  “These charges highlight the commitment of the U.S. Postal Inspection Service to bring individuals to justice who steal from USPS customers.  Thank you to the U.S. Attorney’s Office and our investigative partners for working tirelessly on this case, and helping to maintain the public’s trust of the U.S. Postal Service.”

As alleged in the Superseding Indictment unsealed today in Manhattan federal court, as well as statements made in public court proceedings:[1]

From at least in or about January 2022 through at least in or about July 2024, the defendants perpetrated a massive scheme to steal millions of dollars in checks from Postal Service collection boxes in New York and elsewhere.  As part of their scheme, the defendants conspired to buy or otherwise obtain keys that would allow them to unlock the Postal collection boxes and steal mail, bank cards, and other bank account information.

After stealing checks from the mail, the defendants and their coconspirators fraudulently altered the information on those checks either by digitally altering the checks and printing them on check stock, or by chemically “washing” the checks to remove the ink.  To avoid getting caught, the defendants also conspired to obtain and exchange information for bank accounts held in the names of third parties for the purpose of depositing the fraudulently altered checks.

In total, the fraud ring posted millions of dollars in checks for sale on a third-party messaging application, and also deposited millions of dollars in fraudulently altered checks in bank accounts at national banks along the East Coast.

The members of the conspiracy played different roles. EDWARDS served as the leader of the organization, coordinating the purchase of postal keys with others, such as WILLIAM HILL, and the use of those keys to steal mail from postal boxes with other coconspirators, such as WILLIAM HILL, SHAKEEMO HILL, and MERCADO.  The organization’s activities were lucrative: in the early morning hours of July 10, 2023, EDWARDS and MERCADO used a postal key to steal approximately $176,000 in checks from the mail.  Other members of the conspiracy, such as EDWARDS, WILLIAM HILL, SHAKEEMO HILL, LAUTURE, and MALONE recruited people they knew to supply their bank account information, including account balances and log-in information.  And because the stolen checks were not made out to the names on the third-party bank accounts, the members of the fraud ring—including EDWARDS and SHAKEEMO HILL—altered the checks to match the names on those bank accounts.  After the checks were altered, the members of the conspiracy, including EDWARDS, WILLIAM HILL, SHAKEEMO HILL, LAUTURE, and MALONE, deposited or recruited others to deposit them into third-party bank accounts.

*                *                *

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

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 USPIS and Homeland Security Investigations.  Mr. Clayton also thanked the U.S. Attorney’s Office for the District of Connecticut for their assistance.     

The case is being prosecuted by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Jerry J. Fang and William K. Stone 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

Conspiracy to commit bank fraud

18 U.S.C. § 1349

MICHAEL EDWARDS, a/k/a “Only1Giela,” 30;[2]

SHAKEEMO HILL, a/k/a “Keemo,” a/k/a “LBA Menace,” a/k/a “Lex,” 22;

WILLIAM HILL, a/k/a “Eway,” a/k/a “Skinny,” 29;

ALIXANDRIA LAUTURE, a/k/a “A$,” 27;

SHURON MALONE, a/k/a “First Name Last Name,” 29

2

Conspiracy to commit theft of a postal key

18 U.S.C. § 371

MICHAEL EDWARDS, a/k/a “Only1Giela,” 30;

WILLIAM HILL, a/k/a “Eway,” a/k/a “Skinny,” 29;

CARLOS MERCADO, a/k/a “Kiz,” a/k/a “Kizzle,” 22

3

Conspiracy to commit theft of mail and receipt of stolen mail, and sale and receipt of stolen money

18 U.S.C. § 371

MICHAEL EDWARDS, a/k/a “Only1Giela,” 30;

SHAKEEMO HILL, a/k/a “Keemo,” a/k/a “LBA Menace,” a/k/a “Lex,” 22;

WILLIAM HILL, a/k/a “Eway,” a/k/a “Skinny,” 29;

CARLOS MERCADO, a/k/a “Kiz,” a/k/a “Kizzle,” 22

4

Theft of a postal key

18 U.S.C. §§ 1704 and 2

MICHAEL EDWARDS, a/k/a “Only1Giela,” 30;

CARLOS MERCADO, a/k/a “Kiz,” a/k/a “Kizzle,” 22

5

Theft of mail and receipt of stolen mail

18 U.S.C. §§ 1708 and 2

MICHAEL EDWARDS, a/k/a “Only1Giela,” 30;

CARLOS MERCADO, a/k/a “Kiz,” a/k/a “Kizzle,” 22

6

Aggravated identity theft

18 U.S.C. §§ 1028A(a)(1), 1028A(b), and 2

MICHAEL EDWARDS, a/k/a “Only1Giela,” 30;

SHAKEEMO HILL, a/k/a “Keemo,” a/k/a “LBA Menace,” a/k/a “Lex,” 22;

WILLIAM HILL, a/k/a “Eway,” a/k/a “Skinny,” 29;

ALIXANDRIA LAUTURE, a/k/a “A$,” 27;

SHURON MALONE, a/k/a “First Name Last Name, 29”

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

[2] Counts One, Three, and Six charge EDWARDS with committing those offenses while on pretrial release, in violation of 18 U.S.C. § 3147, which subjects him to an additional maximum sentence of 10 years in prison consecutive to any other prison term imposed.

Jay Clayton, the United States Attorney for the Southern District of New York, announced the guilty pleas today of JESUS ZAPATA, a/k/a “Jeezy,” a/k/a “Hendrix,” and BRAYAN LLORET, a/k/a “E.T.,” in connection with their leadership of the violent gang Own Every Dollar (“OED”).  ZAPATA and LLORET pled guilty today to several charges, including racketeering conspiracy, before U.S. District Judge J. Paul Oetken.

“Jesus Zapata and Brayan Lloret were two of the top leaders of the deadly Manhattan-based Own Every Dollar gang,” said U.S. Attorney Jay Clayton.  “Today’s convictions highlight the commitment of our Office to taking down the street gangs that terrorize New Yorkers, and to ensuring that all gang members —from foot soldiers to bosses—face justice.”

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

ZAPATA and LLORET are senior leaders of the violent OED gang, a subset of the Trinitarios gang based in and around the Washington Heights area of Manhattan.  ZAPATA is the former “Duarte,” or top leader, of the gang. ZAPATA and LLORET are being held responsible for committing or ordering a number of violent acts on Rikers Island, including three slashings in 2021.

ZAPATA and LLORET are the 21st and 22nd members or associates of OED to be convicted in this case.  The defendants in the case have been convicted for their roles in five murders and more than 10 attempted murders, which occurred in Manhattan, the Bronx, and state and federal prisons.

*                *                *

ZAPATA, 35, of New York, New York, pled guilty to one count of racketeering conspiracy, which carries a maximum sentence of life in prison; one count of attempted murder and assault with a dangerous weapon in aid of racketeering, which carries a maximum sentence of 20 years in prison; one count of assault with a dangerous weapon and assault resulting in serious bodily injury in aid of racketeering, which carries a maximum sentence of 20 years in prison; one count of attempted murder and assault with a dangerous weapon and assault resulting in serious bodily injury in aid of racketeering, which carries a maximum sentence of 20 years in prison; and one count of narcotics conspiracy, which carries a maximum sentence of life in prison. 

LLORET, 27, of New York, New York, pled guilty to one count of racketeering conspiracy, which carries a maximum sentence of life in prison; one count of assault with a dangerous weapon and assault resulting in serious bodily injury in aid of racketeering, which carries a maximum sentence of 20 years in prison; and one count of narcotics conspiracy, which carries a maximum sentence of life in prison.

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

Mr. Clayton praised the outstanding work of the New York City Police Department and the Drug Enforcement Administration.

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

The United States Attorney for the Southern District of New York, Jay Clayton; the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia; and the District Attorney for Sullivan County, New York, Brian Conaty, announced the filing of a Superseding Indictment charging DWAYNE JOHNSON with the May 2017 murder of Shaniece Harris (the “Victim”), as well as additional controlled substance and firearms offenses.  JOHNSON was previously taken into custody on controlled substance and firearms charges following the recovery of, among other things, marijuana and approximately 30 firearms from his residence in May 2023.  The case is assigned to U.S. District Judge Vincent Briccetti.  Earlier today, JOHNSON was arraigned on the charges in the Superseding Indictment.

“As alleged, more than eight years ago, Dwayne Johnson murdered Shaniece Harris in Monticello, New York, in connection with a long-running drug conspiracy,” said U.S. Attorney Jay Clayton.  “Thanks to the hard work of the prosecutors in this Office and our law enforcement partners at FBI, New York State Police, NYPD, and the Sullivan County District Attorney’s Office, Johnson will be held to account for this cold-blooded crime.  This brutal murder shows the harsh truth that drug trafficking and violence go together, and drug trafficking poses incredible dangers to communities throughout New York.  As this Superseding Indictment shows, we work every day to deliver justice for the victims of senseless violence—no matter how many years have passed.  We hope this prosecution brings some measure of peace to the victim’s loved ones.”

"Dwayne Johnson allegedly murdered Shaniece Harris as part of his drug trafficking operation," said FBI Assistant Director in Charge Christopher G. Raia.  "We are committed to ending the senseless and irreparable damage caused to our communities by violence connected to drug trafficking.  The FBI has a long memory.  No matter how much time has passed, we will not cease in our efforts to find justice for victims of murder and other violent crimes."

“I am thrilled that this arrest is the first step in bringing closure to the family and loved one’s of Shanice Harris," said District Attorney Brian Conaty.  "I applaud the FBI Safe Streets Task Force and the Southern District of New York.  I am proud that members of my office were able to assist these entities in this investigation.  I thank all the law enforcement entities involved for their unwavering dedication to investigating and apprehending the individual who was responsible for this heinous crime.  It is law enforcement collaborations such as this that send a stark message that the victims of violent crime will never be forgotten.”

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

On or about May 29, 2017, JOHNSON shot and killed Shaniece Harris in Monticello, New York, in furtherance of his long-running conspiracy to traffic over 1,000 kilograms of marijuana in the Southern District of New York and elsewhere. Following a series of searches in 2023, law enforcement recovered multiple videos made by JOHNSON in which Johnson displayed his cache of firearms and articulated his intent to shoot anyone who attempted the steal his marijuana or marijuana proceeds.  On or about May 24, 2023, law enforcement recovered from JOHNSON’s residence body armor, a large quantity of ammunition, and approximately 30 firearms, including multiple short-barreled rifles.

*                *                *

JOHNSON, 46, of Monticello, New York, is charged with one count of conspiracy to distribute and possess with intent to distribute over 1,000 kilograms of marijuana, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; one count of murder through use of a firearm, which carries a statutory maximum sentence of death or life in prison; one count of possession with intent to distribute marijuana, which carries a maximum sentence of five years in prison; one count of possession of a short-barreled rifle in furtherance of a drug trafficking crime, which carries a mandatory minimum sentence of 10 years in prison to be served consecutively to any other term of prison imposed and a maximum sentence of life in prison; and one count of unlawful possession of firearms, which carries a maximum sentence of 15 years in prison.

The minimum and maximum potential sentences 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 FBI Hudson Valley Safe Streets Task Force, the FBI Hudson Valley White Collar Crime Task Force, the New York State Police, the NYPD, the Sullivan County District Attorney’s Office, and the Sullivan County Sheriff's Office. 

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Kaiya Arroyo and Jorja Knauer are in charge of the prosecution, with assistance from Paralegal Specialist Liam Ronan.

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

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

Jay Clayton, the United States Attorney for the Southern District of New York, announced today that GLENN GRIFFIN, the owner and president of Griffin’s Landscaping Corporation, was sentenced to two years in prison for a scheme in which GRIFFIN bribed a Town of Cortlandt employee to gain unauthorized access to a Town facility to dump loads of unauthorized materials.  GRIFFIN was also sentenced for a separate bid-rigging scheme.  The sentence was imposed by U.S. District Judge Vincent L. Briccetti.

On May 20, 2025, ROBERT DYCKMAN, the former Assistant General Foreman for the Town of Cortlandt, was sentenced by Judge Briccetti to a year and a day in prison for his participation in the bribery and dumping scheme.  As part of their sentences, GRIFFIN and DYCKMAN were each ordered to pay $2.4 million in restitution to their victims.

“Glenn Griffin and Robert Dyckman’s corruption not only damaged public land and fragile wetlands but also undermined the public’s faith in our government and institutions” said U.S. Attorney Jay Clayton.  “Griffin, a successful business owner and president, bribed Dyckman so that he could save money and, in the process, illegally dump harmful, unauthorized materials on public property generating $2.4 million in damages.  Moreover, Griffin then took government money to remove and haul away the very materials that he had illegally dumped.  Together with our law enforcement partners, we are committed to rooting out such brazen and wasteful corruption.” 

According to statements made in public filings and court proceedings:

Illegal Dumping Scheme

From 2018 until February 2020, GRIFFIN and DYCKMAN engaged in an unauthorized dumping scheme.  DYCKMAN gave GRIFFIN and his employees unauthorized access to Arlo Lane, a Cortlandt facility, to dump hundreds of large truckloads of unauthorized materials such as thick concrete, cement with rebar, tiles, bricks, large rocks, and soil.  After the illegal dumping, GRIFFIN billed and received payments from the Town of Cortlandt for removing and hauling away the very materials that GRIFFIN had illegally dumped at Arlo Lane with DYCKMAN’s assistance.

DYCKMAN generally allowed GRIFFIN and his employees to access Arlo Lane on Saturdays or after working hours.  To carry out the scheme, DYCKMAN would attempt to clear senior Town of Cortlandt management away from Arlo Lane around the time of the unauthorized dumping.  When DYCKMAN arranged for a subordinate Town of Cortlandt worker to work overtime when GRIFFIN was dumping unauthorized loads, DYCKMAN would falsely record the worker’s overtime as having occurred during the week in order to conceal the scheme.

In exchange for access to Arlo Lane, GRIFFIN paid DYCKMAN cash bribes.

GRIFFIN and DYCKMAN were ordered to pay the Town of Cortlandt and the Westchester Land Trust, a 501(c)(3) tax-exempt organization which owns damaged wetlands abutting the Town of Cortlandt’s Arlo Lane property, a total of $2.4 million to remediate and restore their property following GRIFFIN’s and DYCKMAN’s criminal conduct.

Bid-Rigging Scheme

Between 2015 and 2018, Griffin also engaged in a bid-rigging scheme.  GRIFFIN defrauded the village of Croton-on-Hudson for work on its schools, and the hamlet of Verplanck for work at its fire department.  GRIFFIN made sham, non-competitive, and inflated bids on behalf of entities that GRIFFIN did not work for or have authorization to submit bids on behalf of, so that GRIFFIN would be the low bidder in a pool of purportedly competitive bids and receive public money for work on the projects. Based on these sham, non-competitive, and inflated bids, GRIFFIN was awarded contracts with a combined value exceeding $133,000.

*                *                *

In addition to the prison term, GRIFFIN, 56, of Cortlandt, New York was sentenced to three years of supervised release and a $50,000 fine.  He was also ordered to forfeit $220,000 and pay $2.4 million in restitution, with $1.2 million due to the Town of Cortlandt and $1.2 million due to the Westchester Land Trust.  On August 26, 2024, GRIFFIN pled guilty before U.S. Magistrate Judge Victoria Reznik to one count of conspiracy to commit bribery and one count of conspiracy to commit wire fraud.

In addition to the prison term, DYCKMAN, 53, of Verplanck, New York, was sentenced to two years of supervised release and ordered to pay $2.4 million in restitution, with $1.2 million due to the Town of Cortlandt and $1.2 million due to the Westchester Land Trust.  On August 26, 2024, DYCKMAN pled guilty before Magistrate Judge Reznik to one count of conspiracy to commit mail fraud. 

Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation and the Westchester County Police Department in this investigation.  Mr. Clayton also thanked the Westchester County District Attorney’s Office and the New York City Department of Investigation for their assistance in the investigation.

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

The United States Attorney for the Southern District of New York, Jay Clayton; the Attorney General for the United States, Pamela Bondi; the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia; and the Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today that Muhammad Shahzeb Khan, a/k/a “Shahzeb Jadoon,” has been extradited from Canada to the United States to face charges for attempting to enter the United States and carry out a mass shooting with automatic weapons at a prominent Jewish center in New York.  The case is pending before U.S. District Judge Paul G. Gardephe.  KHAN will make his initial appearance in court tomorrow, June 11, 2025, before Chief Magistrate Judge Sarah Netburn.  

“As alleged, Muhammad Shahzeb Khan attempted to enter the United States to carry out a deadly terrorist attack on a Jewish center in New York City,” said U.S. Attorney Jay Clayton.  “He planned to use automatic weapons to kill as many members of our Jewish community as possible, all in support of ISIS.  Khan’s deadly, antisemitic plan was thwarted by the diligent work of our law enforcement partners and the career prosecutors in this Office who are committed to rooting out antisemitism and stopping terror.  Thanks to their efforts, Khan will now face justice in New York.”

“The foreign terrorist organization ISIS remains a clear and present danger to the American people, and our Jewish citizens are especially targeted by evil groups like these,” said Attorney General Pamela Bondi.  “The Department of Justice is proud to help secure this extradition, and we will prosecute this man to the fullest extent of the law.”

“Muhammad Shahzeb Khan has been brought to the United States to face justice for his barbaric plot to conduct a mass shooting in New York City,” said FBI Assistant Director in Charge Christopher G. Raia.  “Due to the dedication and commitment of the New York Joint Terrorism Task Force and our partners here and internationally, we were able to disrupt Khan’s evil plans before he could carry them out.  The FBI will do whatever it takes to defend our nation from those wishing to carry out acts of terrorism, wherever in the world they may be located.”

“Muhammad Shahzeb Khan—a supporter of ISIS and fueled by antisemitism—allegedly plotted a terrorist attack that could have slaughtered Jewish New Yorkers simply because of their faith,” said NYPD Commissioner Jessica S. Tisch.  “Thanks to the proactive work of the NYPD, the FBI, and the U.S. Attorney’s Office, that plot was stopped before it could become a tragedy.  This case is a powerful reminder of the ongoing efforts by the NYPD and our law enforcement partners to prevent acts of hate and protect our communities, because bigotry and antisemitism have no place in our city.  And we will never hesitate to hold accountable anyone who threatens the safety of New Yorkers.”

As alleged in the charging instruments and other public filings:[1]

In or about November 2023, KHAN, a Pakistani national residing in Canada, began posting on social media and communicating with others on an encrypted messaging application about his support for ISIS, including by distributing ISIS propaganda videos and literature.  KHAN then began communicating with two undercover law enforcement officers (collectively, the “UCs”) about his desire and plan to carry out terrorist attacks in the United States in support of ISIS.  During those conversations, KHAN confirmed that he and a U.S.-based associate (“Associate-1”) had been planning to carry out a terrorist attack in a particular U.S. city (“City-1”) using AR-style assault rifles to “target[] Israeli Jewish chabads . . . scattered all around [City-1].”[2]  During subsequent conversations, KHAN repeatedly instructed the UCs to obtain AR-style assault rifles, ammunition, and other materials to carry out the attacks, and identified locations in City-1 where the attacks would take place.  Khan also told the UCs that he had identified a human smuggler who would help him cross the border from Canada into the United States for the attack.  

In or about August 2024, KHAN changed his target to New York City.  Specifically, KHAN told the UCs that the target location would now be a prominent Jewish religious center in Brooklyn, New York (“Location-1”).   KHAN conveyed that he hoped to carry out this attack on or around October 7, 2024—which KHAN recognized as the one-year anniversary of the brutal and deadly terrorist attacks in Israel carried out by the foreign terrorist organization Hamas.  KHAN told the UCs that “New york is perfect to target jews” because it has the “largest Jewish population in america,” and, as such, “even if we dont attack a[n] Event[,] we could rack up easily a lot of jews.”  KHAN then told the UCs that he intended to kill as many Jewish civilians as possible, proclaiming that “we are going to nyc to slaughter them,” and later sent a photograph to the UCs of the specific enclosed area inside of Location-1 where KHAN planned to carry out his attack.  In the days that followed, KHAN continued to urge the UCs to acquire AR-style rifles, hunting knives to “slit their throats,” and other equipment for the attack, and reiterated his desire to carry out this attack in support of ISIS.  During one such communication, KHAN noted that “if we succeed with our plan this would be the largest Attack on US soil since 9/11.” 

On or about September 4, 2024, KHAN attempted to reach the U.S-Canada border using a human smuggler to enter the United States and carry out his attack.  KHAN traveled from the vicinity of Toronto, Canada toward the United States, before he was stopped in or around Ormstown, Canada, approximately 12 miles from the U.S.-Canada border.

*               *                *

KHAN, 20, a Pakistani citizen who was residing in Canada, is charged with one count of attempting to provide material support and resources to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison, and one count of attempting to commit acts of terrorism transcending national boundaries, which carries a maximum sentence of life in prison.

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

Mr. Clayton praised the outstanding efforts of the New York Joint Terrorism Task Force of the FBI, which consists of investigators and analysts from the FBI, the New York City Police Department, and over 50 other federal, state, and local agencies, and thanked the FBI’s Los Angeles and Chicago Field Offices, the New York State Police, the U.S. Customs and Border Protection, the Counterterrorism Section of the Department of Justice’s National Security Division, and the Office of International Affairs of the Department of Justice’s Criminal Division for their assistance.  Mr. Clayton also thanked our law enforcement partners in Canada, including the Royal Canadian Mounted Police and Department of Justice Canada’s International Assistance Group, for their assistance.

This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Kaylan E. Lasky and David J. Robles are in charge of the prosecution, with assistance from Trial Attorney Kevin Nunnally of the Counterterrorism Section.

[1] As the introductory phrase signifies, the entirety of the charging instruments and other public filings to date constitute only allegations, and every fact described herein should be treated as an allegation.

[2] “Chabad” is a branch of Hasidic Judaism, as well as a movement that operates Jewish religious and educational institutions around the world.

A Pakistani citizen residing in Canada, Muhammad Shahzeb Khan, 20, also known as Shahzeb Jadoon, was extradited to the United States on June 10, in connection with an indictment filed in the Southern District of New York. Khan was charged with attempting to provide material support and resources to a designated foreign terrorist organization (FTO), the Islamic State of Iraq and al-Sham (ISIS) and attempting to commit acts of terrorism transcending national boundaries. Khan is scheduled to make an initial appearance in court on June 11.

“The foreign terrorist organization ISIS remains a clear and present danger to the American people, and our Jewish citizens are especially targeted by evil groups like these,” said Attorney General Pamela Bondi. “The Department of Justice is proud to help secure this extradition, and we will prosecute this man to the fullest extent of the law.”

“Khan allegedly tried to enter the United States to commit an attack on the Jewish community in New York City, planning an ISIS-inspired mass shooting around the one-year anniversary of the attack on Gaza by Hamas,” said FBI Director Kash Patel. “Thankfully, the great work of the FBI and our partners shut that down, and Khan has now been extradited to New York to face American justice. I want to thank our teams and partners for their diligent work in this case and executing the mission.”

“As alleged, Muhammad Shahzeb Khan attempted to enter the United States to carry out a deadly terrorist attack on a Jewish center in New York City,” said U.S. Attorney Jay Clayton for the Southern District of New York. “He planned to use automatic weapons to kill as many members of our Jewish community as possible, all in support of ISIS. Khan’s deadly, antisemitic plan was thwarted by the diligent work of our law enforcement partners and the career prosecutors in this Office who are committed to rooting out antisemitism and stopping terror. Thanks to their efforts, Khan will now face justice in New York.”

Khan was provisionally arrested in Canada on Sept. 4, 2024 based on a complaint filed in the Southern District of New York. As alleged in the complaint, Khan, who resided in Canada, attempted to travel from Canada to New York City, where he intended to use automatic and semi-automatic weapons to carry out a mass shooting in support of ISIS at a Jewish center in Brooklyn, New York. Khan began posting on social media and communicating with others on an encrypted messaging application about his support for ISIS in or about November 2023, when, among other things, Khan distributed ISIS propaganda videos and literature. Subsequently, Khan began communicating with two undercover law enforcement officers (collectively, the UCs).

During those conversations, Khan confirmed that he and a U.S.-based ISIS supporter (Associate-1) had been planning to carry out an attack in a particular U.S. city (City-1). Among other things, Khan said that he had been actively attempting to create “a real offline cell” of ISIS supporters to carry out a “coordinated assault” in City-1 using AR-style rifles to “target[] Israeli Jewish chabads . . . scattered all around [City-1].” During subsequent conversations, Khan repeatedly instructed the UCs to obtain AR-style assault rifles, ammunition, and other materials to carry out the attacks, and identified the specific locations in City-1 where the attacks would take place. Khan also provided details about how he would cross the border from Canada into the United States to conduct the attacks. During these conversations with the UCs, Khan emphasized that “Oct 7th and oct 11th are the best days for targeting the jews” because “oct 7 they will surely have some protests and oct 11 is yom.kippur.”

On or about Aug. 20, Khan changed his target location from City-1 to New York City. After initially suggesting certain neighborhoods in New York City to the UCs, Khan decided to target Location-1, a Jewish center located in Brooklyn, New York. Khan told the UCs that he planned to carry out this attack on or around Oct. 7, 2024 — which Khan recognized as the one-year anniversary of the brutal terrorist attacks in Israel by Hamas, a designated FTO, which, on Oct. 7, 2023, launched a wave of violent, large-scale terrorist attacks in Israel. In support of his choice of New York City as his target location, Khan boasted that “New york is perfect to target jews” because it has the “largest Jewish population In america” and therefore, “even if we dont attack a[n] Event[,] we could rack up easily a lot of jews.” Khan proclaimed that “we are going to nyc to slaughter them,” and sent a photograph of the specific area inside of Location-1 where he planned to carry out the attack.

Thereafter, Khan continued to urge the UCs to acquire AR-style rifles, ammunition, and other equipment for his attack, including “some good hunting [knives] so we can slit their throats.” Khan repeatedly reiterated his desire to carry out the attack in support of ISIS, and discussed planning for the attack, including by identifying rental properties close to Location-1 and paying for a human smuggler to help him reach and cross the border from Canada into the United States. During one communication, Khan noted that “if we succeed with our plan this would be the largest Attack on US soil since 9/11.”

On or about Sept. 4, as Khan said he planned to do in connection with his attack, Khan attempted to reach the U.S-Canada border. To do so, Khan used three separate cars to travel across Canada towards the United States, before he was stopped by Canadian authorities in or around Ormstown, Canada, approximately 12 miles from the U.S.-Canada border.

Khan is charged with one count of attempting to provide material support and resources to a designated foreign terrorist organization and one count of attempting to commit acts of terrorism transcending national boundaries. If convicted, he faces a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI’s New York, Chicago, and Los Angeles Field Offices are investigating the case. The Justice Department is grateful to Canadian law enforcement for their actions in this matter. The Office of International Affairs of the Department of Justice’s Criminal Division accomplished the extradition of Khan from Canada.

Assistant U.S. Attorneys Kaylan E. Lasky and David J. Robles for the Southern District of New York and Trial Attorney Kevin C. Nunnally of the Justice Department’s National Security Division’s Counterterrorism Section are prosecuting the case.

A complaint or an indictment merely contain allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The United States Attorney for the Southern District of New York, Jay Clayton, announced that ANTHONY ELLISON, a former inmate of the Metropolitan Correctional Center (“MCC”), a federal jail, was sentenced today by U.S. District Judge Andrew L. Carter to 29 months in prison on each of the two counts on which he was previously convicted—and which will run concurrently to one another and consecutively to the federal sentence ELLISON was already serving on a separate case—for participating in wide-ranging bribery and prison contraband conspiracies with MCC employees, inmates, and others.  

“Many good New Yorkers believe our prisons are places for incarceration and, at least for some, rehabilitation,” said U.S. Attorney Jay Clayton.  “The hope for rehabilitation is illusory in an environment where inmates and staff are trafficking in drugs and other contraband.  Today’s sentence demonstrates that this Office and our law enforcement partners are committed to rooting out corruption in our prisons.”

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

ELLISON, a/k/a/ “Harv,” the defendant, was an inmate at the MCC.  ELLISON participated with other inmates and MCC guards in an extensive bribery and contraband distribution scheme within the jail between approximately 2018 and 2021. During the course of the conspiracy, between approximately 2019 and 2020, at least ten MCC inmates, including ELLISON, paid nearly $80,000 in bribes to Perry Joyner, a corrupt MCC correctional officer.  The inmates paid the bribes through friends and relatives outside the jail, who used money transfer applications, such as CashApp, to transfer money to associates of Joyner, who then provided the bribes to Joyner himself.  In exchange for those bribes, Joyner smuggled large amounts of contraband into the MCC.  That contraband included drugs (such as oxycodone, alprazolam, Suboxone, marijuana, and synthetic cannabinoids, commonly known as “K2”), dozens of cellphones, and cartons of cigarettes.  ELLISON and other MCC inmates then sold much of that contraband to other inmates at a profit as part of a widespread illicit market within the MCC.  For example, ELLISON charged other inmates as much as $100 for a single cigarette and as much as $5,000 for a used iPhone.   

In approximately early 2020, Joyner left the MCC, and the jail initiated a series of lockdowns, first to search for contraband and then in response to the COVID-19 pandemic.  As a result of those lockdowns and Joyner’s departure, the contraband market in the MCC dried up until ELLISON found a new source of contraband. In particular, between approximately 2020 and 2021, ELLISON conspired and had a sexual relationship with another corrupt MCC employee, Sharon Griffith-McKnight, who provided contraband to ELLISON, most of which he then re-sold to other inmates.

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In addition to today’s prison sentence, ELLISON, 37, of Brooklyn, New York, was sentenced to three years of supervised release and $200 in special assessments—$100 for each count of conviction. 

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

This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Jessica Greenwood, Jonathan E. Rebold, and Daniel H. Wolf are in charge of the prosecution. 

Jay Clayton, the United States Attorney for the Southern District of New York, and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that KINGSLEY UCHELUE UTULU was sentenced today by U.S. District Judge Paul G. Gardephe to 63 months in prison for his role in a broad hacking, fraud, and identity theft scheme targeting U.S.-based businesses and individuals.  UTULU previously pled guilty to conspiracy to commit wire fraud.

“Kingsley Uchelue Utulu took part in a scheme to hack into U.S. tax preparation businesses, trade in the stolen personal identifying information, and defraud the IRS and other governmental bodies,” said U.S. Attorney Jay Clayton.  “Offshore scammers like Utulu and his co-conspirators may think they can target hard-working Americans with their hacking and fraud schemes and avoid prosecution.  The message from the Department and the FBI is clear, they cannot.  We are committed to protecting Americans from criminals operating offshore.”   

FBI Assistant Director in Charge Christopher G. Raia said: “Kingsley Utulu, a Nigerian national, was part of a scheme that targeted and infiltrated electronic systems of U.S.-based companies to steal more than two million dollars through fraudulent tax returns.  Along with his co-conspirators, this defendant’s scheme reached across the globe to exploit sensitive information for financial gain.  The FBI will never exempt any individual who seeks to unlawfully profit through deceitful practices, regardless of where they are located.”

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

Beginning in at least in or about 2019, UTULU and other Nigeria-based conspirators took part in a scheme to hack into U.S-based tax preparation businesses.  The conspirators utilized spearphishing emails to obtain access to these business’s electronic systems.  Once they had obtained access, the conspirators stole the tax and other identifying information of the business’ customers.  The conspirators hacked into several U.S.-based tax businesses, located in New York, Texas, and other states.

The conspirators obtained the stolen identity information of thousands of individuals.  They used this information to file fraudulent tax returns with the Internal Revenue Service and state tax authorities.  The conspirators sought fraudulent refunds of at least approximately $8.4 million, of which they successfully obtained at least approximately $2.5 million.

In addition to filing fraudulent tax returns, the conspirators used the stolen identities to file fraudulent claims with the Small Business Administration’s Economic Injury Disaster Loan program.  The conspirators were able to obtain at least an additional approximately $819,000 in fraudulent payouts.

UTULU was arrested for his involvement in this scheme while being present in the United Kingdom and was thereafter extradited to the U.S. to be prosecuted. 

*                *                *

In addition to the prison term, UTULU, 38, of Nigeria, was ordered to pay restitution in an amount of $3,683,029.39 and forfeiture in the amount of $290,250.

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

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

Jay Clayton, the United States Attorney for the Southern District of New York, and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that ROBERT YEDID, ANDREW KAUFMAN, and MARK JACOBS pled guilty to participating in a five-year insider trading scheme to reap illegal profits from stock and options trading based on inside information about several health care company clients of the investor relations firm where YEDID was employed.  Together, YEDID, KAUFMAN and JACOBS made more than $500,000 in illicit gains through this scheme.  JACOBS pled guilty today before U.S. Chief District Judge Laura Taylor Swain.  YEDID and KAUFMAN pled guilty before Chief Judge Swain on May 29, 2025.

“Robert Yedid betrayed the trust of his employer and its clients by stealing confidential information and passing it to two friends, Andrew Kaufman and Mark Jacobs, to make unlawful, profitable trades based on inside information,” said U.S. Attorney Jay Clayton.  “This Office is committed to prosecuting securities fraud and ensuring that insiders and their friends can’t cheat their way to profits.  With our law enforcement partners, we will continue to police the financial markets and hold those accountable who misuse nonpublic information for personal gain.” 

FBI Assistant Director in Charge Christopher G. Raia said: “Robert Yedid abused his authority as a former investor relations director and provided his friends with material nonpublic information to obtain hundreds of thousands of dollars in illicit profits.  By betraying the trust placed in his position, Yedid established an unlawful financial advantage for his insular social circle that was not afforded to all investors.  May today’s plea serve as a deterrent to any individual who exploits confidential trading information for personal benefit.”

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

Between 2019 and 2024, YEDID, KAUFMAN, and JACOBS engaged in a scheme to trade in stocks and options based on material nonpublic information about several publicly traded health care companies, in violation of the duties of trust and confidence that YEDID owed to his employer, an investor relations firm, and to the companies.

YEDID was a director at an investor relations firm that provided public relations services to health care companies, including BioDelivery Sciences International Inc. (“BDSI”), CinCor Pharma (“CinCor”), Inotiv (“Inotiv”), Inspire Medical Systems (“Inspire”), Nano-X Imaging Ltd. (“Nano-X”), and OncoCyte Corp. (“OncoCyte”).  In this role, YEDID had access to the content of upcoming press releases, which often contained highly sensitive, non-public, and potentially market-moving news, such as earning reports, regulatory approvals, clinical trial results, and merger and acquisition announcements.  YEDID owed a duty of trust and confidence to his employer and its clients and was prohibited from misusing or disclosing the firm’s confidential information for personal gain or to benefit others.

Beginning in 2019, YEDID knowingly and willfully tipped his friends, KAUFMAN and JACOBS, with valuable, nonpublic information of upcoming corporate announcements involving at least six client companies.  That confidential information included advanced notice of an upcoming merger for BDSI; clinical trial results for healthcare products being developed by OncoCyte and CinCor; and quarterly earnings announcements for Inspire, Nano-X, and Inotiv.

YEDID understood and intended that the information he provided to KAUFMAN and JACOBS would be used to execute securities trades before the information became public.  As expected, KAUFMAN and JACOBS executed trades based on YEDID’s tips.  In many cases, KAUFMAN and JACOBS traded aggressively in the securities of the companies, often purchasing shares or options just days before major announcements were made.  Together, KAUFMAN and JACOBS traded in stocks and options on at least 17 different occasions based on YEDID’s tips.  KAUFMAN generated profits of more than $480,000, and JACOBS generated profits of more than $35,000. In exchange for the tips, KAUFMAN shared half of his illegal profits with YEDID by giving him cash in envelopes during various meetings in New York City.

In November 2024, FBI agents approached YEDID, KAUFMAN, and JACOBS as part of this investigation.  Shortly after being contacted by the FBI, KAUFMAN intentionally deleted spreadsheets he maintained that listed the illegal profits he made through trading based on YEDID’s tips.  KAUFMAN deleted these records in order to impede and obstruct the FBI’s investigation.

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YEDID, 67, of New York, New York, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison, and one count of securities fraud, which carries a maximum sentence of 25 years in prison.

KAUFMAN, 68, of New York, New York, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison; one count of securities fraud, which carries a maximum sentence of 25 years in prison; and one count of obstruction of justice, which carries a maximum sentence of 20 years in prison.

JACOBS, 77, of Malvern, Pennsylvania, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison.

YEDID is scheduled to be sentenced by Chief Judge Swain on September 12, 2025, at 2:30 p.m; KAUFMAN is scheduled to be sentenced by Chief Judge Swain on September 18, 2025, at 11 a.m; and JACOBS is scheduled to be sentenced by Chief Judge Swain on September 19, 2025, at 11 a.m.

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

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

Jay Clayton, the United States Attorney for the Southern District of New York, and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that HIRENKUMAR PATEL, the last of six defendants in a case involving an unlicensed money transmitting business that illegally sent millions of dollars in cash throughout the U.S. and between the U.S. and India, was sentenced to 21 months in prison by U.S. District Judge Kenneth M. Karas.  PATEL previously pled guilty to one count of conspiracy to operate an unlicensed money transmitting business and one count of operation of an unlicensed money transmitting business on September 12, 2024, before U.S. Magistrate Judge Victoria Reznik.

“The anonymous transmission of money is a linchpin of international criminal activity, whether hacking, drug dealing, sex trafficking, or terrorism” said U.S. Attorney Jay Clayton.  “Unlicensed money transmission organizations, like the ‘halawa’ network operated by Patel and his cohorts, are tailor made for supporting international criminal activity.  Together with our law enforcement partners, we will seek to shut down these unlicensed networks and stop the flow of dirty money to criminals who do harm to Americans from abroad.”

FBI Assistant Director in Charge Christopher G. Raia said: “These six defendants engaged in an unregulated money transferring scheme responsible for illegally transmitting $15 million in less than a year.  Illicit financial schemes like this one cause damage to our economic system that extends beyond the directly involved bad actors.  The sentencings announced today demonstrate the FBI’s commitment to ensuring those who attempt to carry out illegal financial schemes face the repercussions in the criminal justice system.”

According to allegations contained in the Complaint, the Information, court filings, and public court proceedings:

In or about April 2021, law enforcement identified a vendor (“Vendor”) on the dark web who was offering, in exchange for a fee, a service to convert cryptocurrency into cash.  The Vendor indicated to an undercover agent that some of his clients made money by selling drugs, his wealthiest clients were hackers, and that he had made approximately $30 million over the prior three years through the conversion of cryptocurrency to cash.

In or about February 2023, law enforcement began working with a confidential source and learned that the Vendor was using a “hawala”[1] to obtain the cash that was ultimately exchanged for the cryptocurrency.  As part of this hawala, several of the defendants collected cash along the East Coast of the U.S., which was later delivered to an individual who mailed the cash to the Vendor’s customers.  All six defendants participated in the delivery of, and/or coordinated the delivery of, the collected cash.  The persons who supplied the cash for collection, in turn, used the hawala to have their cash converted into rupees delivered to designated individuals in India.

Of the approximately $15 million sent through the hawala between in or about February 2023 and in or about September 2023, PATEL was responsible for participating in 42 deliveries of bags of cash totaling more than $7.7 million.  Neither PATEL nor his co-defendants were licensed or registered to operate as a money transmitting business in New York or under federal law.

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A chart containing the names of the defendants, the charges they were convicted of, and the sentences they received is set forth below.

Mr. Clayton praised the outstanding work of the FBI, the U.S. Postal Inspection Service, and the U.S. Attorney’s Office for the Eastern District of Kentucky in connection with this investigation.

The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Benjamin Levander and Timothy Ly are in charge of the prosecution.

Defendant

Age

Convictions

Sentence

[1] A “hawala” is an unregulated method of transferring money—usually internationally—from one person to another without the money being physically transported from one location another. Rather, someone who seeks to have money transferred relies on brokers who use their own capital to disburse money and informal ledgers to track the receipt and disbursal of money.  

Jay Clayton, the United States Attorney for the Southern District of New York, announced today the selection of Sean Buckley as Deputy U.S. Attorney. 

Mr. Buckley joins the Office from Kobre & Kim, where he has served since 2018 and handled a wide variety of securities and other criminal and regulatory matters for companies and individuals.  Mr. Buckley previously served as a prosecutor at the U.S. Department of Justice for nearly a decade, where he was most recently the Co-Chief of the Office’s Terrorism and International Narcotics Unit. In that role, he oversaw complex international investigations involving terrorism financing, economic espionage, sanctions violations, and anti-money laundering matters across Europe, the Middle East, Africa, and Asia.

From 2009 to 2018, Mr. Buckley served as an Assistant U.S. Attorney in the Southern District of New York, handling a wide range of national security and international criminal matters.

Prior to joining the government, Mr. Buckley practiced at Willkie Farr & Gallagher LLP from 2003 to 2009.  Mr. Buckley received his A.B. from Princeton University, an M.A. from the University of Virginia Graduate School of Arts & Sciences, and his J.D. from the University of Virginia School of Law.  He has been recognized with several honors, including the Attorney General's Distinguished Service Award and the Assistant Attorney General's Exceptional Service Award.

“We are excited to welcome Sean Buckley back to the Office as the Deputy United States Attorney for the Southern District of New York,” said U.S. Attorney Jay Clayton.  “Sean demonstrated exceptional leadership and case-making skills during his prior service in the Office. He is deeply respected by the New York Bar and embodies the commitment to professionalism and the safety of the people of New York that runs through our Office. We are fortunate to once again benefit from Sean’s tremendous intellect and strategic thinking.  With the combination  of Sean,  Amanda Houle, and Jeff Oestricher, I am confident that the Office could not have a more formidable and effective leadership team.”

Jay Clayton, the United States Attorney for the Southern District of New York, and Harry T. Chavis, Jr., the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigations (“IRS-CI”), announced today that DENNIS OSTERMANN, a former Sergeant with the New York City Police Department (“NYPD”), pled guilty to one count of aiding and assisting in the preparation of a false and fraudulent U.S. income tax return.  OSTERMANN pled guilty today before U.S. Magistrate District Judge Ona T. Wang.  The case is assigned to U.S. District Judge Lorna G. Schofield. 

“At the direction of a senior union official, Ostermann reported payments as 'legal fees' when they were not,” said U.S. Attorney Jay Clayton.  “We all share the responsibility for reporting income and expenses accurately on our tax returns, and no rank or position exempts any person or organization from these obligations.”

IRS-CI Special Agent in Charge Harry T. Chavis, Jr. said: “Ostermann misrepresented the movement of funds, lied on his taxes and betrayed the confidence of union members.  He violated the trust of his position as controller for a law enforcement union and as a return preparer.  With today’s guilty plea, Ostermann is now taking responsibility for his criminal acts, and he will now face the consequences.”

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

OSTERMANN served as Controller of a union that represents all current and former sergeants of the NYPD (the “Union”).  OSTERMANN also served as a partner of HB Consultants Inc. (“HBC”).

In 2018 and 2019, OSTERMANN paid $150,000 from HBC’s bank account to a third party on behalf of the former President of the Union.  OSTERMANN then prepared HBC’s U.S. income tax returns, and falsely reported that the $150,000 payment was for legal fees.  This false information not only disguised that OSTERMANN had used HBC-funds to make payments on behalf of the former President of the Union, but also fraudulently reduced the tax liability of HBC and its partners, including OSTERMANN.

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OSTERMANN, 68, of East Rockaway, New York, pled guilty to one count of aiding and assisting in the preparation of a false and fraudulent U.S. income tax return, which carries a maximum sentence of three years in prison.  OSTERMANN is scheduled to be sentenced by Judge Schofield on August 29, 2025.

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 the judge. 

Mr. Clayton praised the outstanding work of the IRS-CI and Federal Bureau of Investigation. 

The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorney Alexandra Rothman is in charge of the prosecution.

Jay Clayton, the United States Attorney for the Southern District of New York, announced today the selection of Jeff C. Coffman and Benjamin Klein as Chiefs of the Office’s White Plains Division, as well as the retirement of Perry Carbone, Chief of the Office’s Criminal Division, who previously served with distinction as Chief of the White Plains Division. 

Mr. Coffman joined the Office as an Assistant U.S. Attorney in the Criminal Division in 2018, following five years as an Assistant U.S. Attorney in the Northern District of New York and one year as a Special Assistant U.S. Attorney in the District of Columbia.  Prior to becoming a prosecutor, Mr. Coffman worked at the law firm of Trout Cacheris, PLLC and co-founded and managed a small law firm in Washington, D.C.  Mr. Coffman received Bachelor of Science degrees from Virginia Tech and his J.D. from Georgetown University Law Center.  After graduating from law school, he clerked for the Hon. James C. Cacheris of the U.S. District Court for the Eastern District of Virginia.

Mr. Klein joined the Office as an Assistant U.S. Attorney in the Criminal Division in 2021.  Before becoming a prosecutor, Mr. Klein worked at the law firm of Wachtell, Lipton, Rosen & Katz.  Mr. Klein received a Bachelor of Arts from Cornell University, and a J.D. from the Yale Law School, where he served as an editor of The Yale Law Journal.  After graduating, Mr. Klein clerked for the Honorable Thomas M. Hardiman of the U.S. Court of Appeals for the Third Circuit. 

 “I am pleased to announce the selection of Jeff Coffman and Ben Klein as co-chiefs of the Office’s White Plains division,” said U.S. Attorney Jay Clayton.  “Jeff and Ben will bring a wealth of prosecutorial talent and experience to lead the critically impactful work of the division.  Together with our agency partners, they will drive our commitment to safety and fairness for millions of New Yorkers.  On behalf of the hundreds of women and men of the Southern District who have benefited from working with Perry Carbone, I say thank you, Perry, for your commitment to justice and your devotion to the Office and your colleagues. Perry has been a consummate prosecutor for decades and has admirably spent his career as a selfless advocate for public safety.  We all thank Perry for doing so much good for so many.  I am also especially grateful to Margery Feinzig, Deputy Chief of our Criminal Division, who stepped in as Acting Chief of the White Plains Division during this transition.  Her steady leadership, professionalism, and tireless commitment ensured that the White Plains Division continued to function at the highest level.  We are fortunate to have had her at the helm.”

Jay Clayton, the United States Attorney for the Southern District of New York, announced today that ALAN SWISS was sentenced to 42 months in prison for participating in a multimillion-dollar conspiracy to defraud Medicare.  SWISS pled guilty on January 22, 2025, before U.S. District Judge John G. Koeltl, who imposed today’s sentence.

“Swiss defrauded Medicare through creating, purchasing, and selling millions of dollars’ of false prescriptions for medical equipment,” said U.S. Attorney Jay Clayton.  “Fraud of this kind not only wastes taxpayer dollars, but also drives up the cost of healthcare for all.  Today’s sentencing sends a clear message:  individuals who cheat Medicare will face justice.” 

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

From approximately 2016 through April 2019, SWISS operated a call center named Tropical Medical Marketing, Inc., which cold-called Medicare beneficiaries and used their personal and medical information without the beneficiaries’ knowledge or consent, to prepare prescriptions for durable medical equipment (“DME”).  SWISS then sold these DME prescriptions to co-conspirators who illegally obtained purported signatures or “authorizations” of health care providers, so that fraudulent claims could be submitted to Medicare for reimbursement.

From approximately 2017 through April 2019, SWISS also operated two DME supply companies: Modern Medical Equipment, Inc., which SWISS used primarily to bill Medicare directly under Medicare Part B, and A&E Medical, Inc., which SWISS used primarily to bill private insurance companies under Medicare Part C, also known as “Medicare Advantage.”  To obtain the DME prescriptions that SWISS used to support his unlawful claims to Medicare, SWISS used two unlawful methods: purchasing such prescriptions outright and using patient information that SWISS had generated through his call center and purchasing the purported signatures or authorizations of health care providers.  SWISS caused the two DME supply companies that he controlled to submit claims to Medicare for more than $18 million—through the billing company operated by his co-defendants, ERIN FOLEY and TED ALBIN—on which Medicare paid out nearly $6 million.

*                *                *

In addition to the prison term, SWISS, 52, of West Palm Beach County, Florida, was sentenced to three years of supervised released.  SWISS was also ordered to forfeit $6,650,929.76 and pay Medicare restitution in the amount of $6,650,929.76.

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

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Rushmi Bhaskaran, Jackie Delligatti, Brandon Thompson, and William Kinder are in charge of the prosecution.  

Perry Carbone, Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515; Charmeka Parker, the Special Agent in Charge of the U.S. Department of Agriculture, Office of Inspector General (“USDA-OIG”); and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a Superseding Indictment charging six individuals in connection with a sprawling fraud and bribery scheme that generated over $66 million in unauthorized transactions under the Supplemental Nutrition Assistance Program (“SNAP”)—colloquially known as food stamps.  This is one of the largest food stamp frauds in U.S. history. The defendants—MICHAEL KEHOE, MOHAMAD NAWAFLEH, OMAR ALRAWASHDEH, GAMAL OBAID, EMAD ALRAWASHDEH, and ARLASA DAVIS—are charged with conspiracy to steal government funds and to misappropriate U.S. Department of Agriculture (“USDA”) benefits, among other charges.  DAVIS, a USDA employee, is additionally charged with bribery and honest services fraud.  The case is assigned to U.S. District Judge Jed S. Rakoff.

“Michael Kehoe and his co-conspirators misappropriated tens of millions of dollars in taxpayer funds meant to help low-income families put food on the table,” said U.S. Attorney Perry Carbone.  “This fraud was made possible when USDA employee Arlasa Davis betrayed the public trust by selling confidential government information to the very criminals she was supposed to catch.  Their actions undermined a program that vulnerable New Yorkers depend on for basic nutrition.  These charges should be a reminder that those who exploit anti-poverty programs for personal gain will be held accountable for their crimes.”

USDA-OIG Special Agent in Charge Charmeka Parker said: “We appreciate the collaboration with our law enforcement partners in pursuing allegations regarding government employees, who use their positions to participate in schemes that exploit taxpayer funded programs.”

FBI Assistant Director in Charge Christopher G. Raia said: “Arlasa Davis, a USDA employee, is alleged to have abused her position and privileged access to confidential government databases to assist her co-conspirators in exploiting the SNAP program, driving tens of millions of dollars in fraudulent transactions.  This alleged scheme benefited the defendants while undermining critical safeguards designed to ensure that SNAP assistance reaches only eligible families in need.  The FBI will never tolerate any individual who exploits federal financial assistance for personal reward.”

According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial: [1]

The SNAP program uses federal tax dollars to help low-income households purchase food.  SNAP recipients use Electronic Benefit Transfer (“EBT”) cards—similar to debit cards—to buy food at participating stores. Those stores, which get license numbers from the USDA, use special EBT terminals to swipe the EBT cards.  When a SNAP recipient swipes their EBT card, the system verifies the transaction and electronically deducts the purchase amount from the recipient’s account.  The corresponding federal funds are then transferred to the store’s bank account.

Starting in 2019, KEHOE orchestrated a network that supplied approximately 160 unauthorized EBT terminals to stores across the New York area to illegally process more than $30 million in EBT transactions.  Working with his codefendants NAWAFLEH, OMAR ALRAWASHDEH, OBAID, and EMAD ALRAWASHDEH, KEHOE submitted approximately 200 fraudulent USDA applications, misappropriating USDA license numbers and, in some cases, doctoring application documents, to obtain EBT terminals for unauthorized stores—including smoke shops and other ineligible businesses.

Critical to the scheme was ARLASA DAVIS, a longtime USDA employee who worked within the very division of the USDA responsible for identifying SNAP fraud.  DAVIS abused her privileged access to federal systems to sell hundreds of EBT license numbers enabling over $36 million in fraudulent SNAP redemptions at unauthorized stores.  DAVIS photographed handwritten lists of license numbers intended for qualifying stores with her personal cellphone and funneled them to an intermediary who sold them to co-conspirators, including NAWAFLEH, OMAR ALRAWASHDEH, EMAD ALRAWASHDEH, and OBAID, who then used those license numbers to fraudulently obtain EBT terminals for stores that were not authorized by the USDA to process SNAP transactions.  In return, DAVIS received substantial bribes that were disguised in communications as, among other things, “birthday gifts” and “flowers.”

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KEHOE, 46, of Long Island, New York; NAWAFLEH, 34, of the Bronx, New York; OMAR ALRAWASHDEH, 37, of the Bronx, New York; OBAID, 39, of the Bronx, New York; EMAD ALRAWASHDEH, 37, of the Bronx, New York; and DAVIS, 56, of Gardiner, New York, are each charged with one count of conspiracy to steal government funds and misappropriate USDA benefits, which carries a maximum sentence of five years in prison, one count of theft of government funds, which carries a maximum sentence of 10 years in prison, and one count of misappropriation of USDA benefits, which carries a maximum sentence of 20 years in prison.  DAVIS is additionally charged with one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison, one count of bribery, which carries a maximum sentence of 15 years in prison, and one count of conspiracy to commit honest services wire fraud, which carries a maximum sentence of 20 years in prison.  NAWAFLEH is additionally charged with one count of failure to appear, which carries a maximum sentence of 10 years in prison.

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

Mr. Carbone praised the outstanding work of the USDA and FBI, which is also assisting in the investigation.

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

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

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

Jay Clayton, the United States Attorney for the Southern District of New York, announced today that TERRENCE CHALK, a/k/a “Dr. Cash,” was sentenced to three years for committing investment adviser fraud.  CHALK previously pled guilty on May 7, 2024, before U.S. District Judge Andrew L. Carter, Jr., who imposed today’s sentence.

“Defrauding retirees, using the common bond of faith to build trust, is a horrible crime, one that disturbs all New Yorkers,” said U.S. Attorney Jay Clayton.  “This Office and our law enforcement partners are committed to bringing to justice fraudsters who exploit shared ethnic or religious backgrounds to build false trust.  If you suspect ‘affinity fraud’ in or around your place of worship, please contact law enforcement.”

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

In 2017, CHALK began marketing an investment fund using the alias “Terrence Cash” or “Doctor Cash.”  He avoided using his real name because an Internet search for “Terrence Chalk” would have revealed that in 2006, he had been convicted in federal court of multiple fraud offenses.  CHALK’s website advertised him as “the nation’s No. 1 business, money, and wealth coach,” and offered money management and “coaching” sessions in which CHALK promised to share the “hidden secrets of the wealthy” that would change his clients’ “mindset, perspective, and relationship with money.”  After engaging his victims in these courses, he would then press them to invest in what he called the “Chairman’s Fund,” which he claimed was invested in a number of pooled investments that would be consistent, quarterly cash payments and high returns.

CHALK targeted elderly investors and sometimes marketed his services through wealth seminars that he held primarily at Black churches.  He used this setting to his advantage, holding himself out as a man of faith who was seeking to help other Christians like himself.

At first, CHALK’s victims received their promised quarterly payments and assumed all was as advertised at the Chairman’s Fund. Some of the victims even recruited friends and family members into the fund.  But by the end of 2019, many of the victims had stopped receiving payments.  When they complained to CHALK, he stonewalled them and even told them—falsely—that they had agreed not to withdraw their funds for 10 years.  In total, CHALK convinced approximately 26 individuals to invest approximately $4.8 million in his fund.  None of that money appears to have been used to invest in funds, as CHALK had represented to his investors.  Most of the money was paid to other corporate entities controlled by CHALK, to pay off earlier investors, or to cover CHALK’s lavish lifestyle.  For example, CHALK spent approximately $1.7 million to pay personal credit card bills, spent $17,000 on NBA season tickets, and spent $74,000 on a BMW.  After deducting the Ponzi payments that some investors received, the total group of investors still lost a combined $3,210,469 when CHALK’s scheme collapsed.

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In addition to the prison term, CHALK, 62, of Orlando, Florida, was sentenced to three years of supervised release and ordered to pay restitution in an amount to be determined at a later date.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation. Mr. Clayton also thanked the U.S. Securities and Exchange Commission, which previously filed a parallel civil action.

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