Southern District of New York

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that the founders and operators of Legend Venture Partners LLC (“Legend”) and its affiliated entities were sentenced to significant prison time for defrauding their investors, violating their fiduciary duties to those investors, and stealing their funds. MARIO GOGLIORMELLA was sentenced to 52 months in prison, and STEVEN LACAJ and KARIM IBRAHIM, a/k/a “Chris Hayes,” were each sentenced to 42 months in prison. GOGLIORMELLA, LACAJ, and IBRAHIM pled guilty before U.S. District Judge Vernon S. Broderick, who imposed sentence on GOGLIORMELLA on September 16, 2026; LACAJ on September 23, 2026; and IBRAHIM today. 

“This Office will continue to prioritize enforcement against fraud in the pre-IPO space,” said U.S. Attorney Jamie McDonald. “Our markets—both public and private—can flourish only if their integrity is preserved. By charging undisclosed markups of over a hundred percent and pretending their own disciplinary histories didn’t exist, the defendants—the founders and operators of Legend Venture Partners LLC—stole from hundreds of investors and undermined the functioning of markets that are vital to innovation and growth.”

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

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

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

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

At first, the defendants operated this scheme as a marketing arm for StraightPath Venture Partners, Inc. (“StraightPath”). In approximately 2021, multiple individuals associated with StraightPath received subpoenas from the SEC, and in approximately February 2022, StraightPath ceased operations. In approximately February 2022, when StraightPath ceased operations, GOGLIORMELLA, LACAJ, and IBRAHIM began conducting the scheme under the corporate entity Legend Venture Partners, LLC (“Legend”), where they continued to run the same scheme that StraightPath had started. The three principals of StraightPath —Michael Castillero, Brian Martinsen, and Francine Lanaia—were also prosecuted by this Office, convicted at a trial before U.S. District Court Judge Jesse M. Furman in November 2025, and sentenced to 11, 10, and 8 years respectively by Judge Furman in May 2026.

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

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In addition to the prison term, GOGLIORMELLA, 49, of Manhasset, New York; LACAJ, 29, of New York, New York; and IBRAHIM, 36, of Queens, New York, were each sentenced to three years of supervised release. They were also ordered to pay restitution of $46 million, as well as forfeiture in the following amounts: Gogliormella: $12,400,000; Lacaj: $7,700,000; and Ibrahim: $8,300,000.

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

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

United States Attorney for the Southern District of New York, Jamie McDonald, and the Acting Inspector in Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), Darnell Edwards, announced today the unsealing of an Indictment charging JACOB FRANKEL and CHRISTOPHER DINELLI with securities fraud, wire fraud, and conspiracy to commit securities fraud and wire fraud, and charging FRANKEL with investment adviser fraud and making false reports to the Securities and Exchange Commission.  FRANKEL will be presented today before U.S. Magistrate Judge Valerie Figuerdo in Manhattan federal court, and DINELLI will be presented today in the District of Maryland.  The case has been assigned to U.S. District Judge Jesse M. Furman.

“Prosecuting white collar crime is a top priority of this Office, and we are increasingly focusing on the pre-IPO markets as those markets grow,” said U.S. Attorney Jamie McDonald.  “This alleged fraud left investors, including U.S. Navy veterans, with millions in losses after they were promised access to pre-IPO opportunities and sophisticated trading strategies that did not exist.  As alleged, Jacob Frankel and Christopher Dinelli sold investors a fiction—exclusive investments, extraordinary returns, and professional management—while losing and diverting millions of dollars behind the scenes.  When the truth threatened to catch up with them, they allegedly responded with more lies, including fabricated account statements designed to make devastating losses look like enormous gains.”

“Beyond Alpha Ventures billed itself as a company investing in AI, technology, and cryptocurrency startups; however, as alleged, the founders’ real business was diverting investors’ money for their own personal gain,” said USPIS Acting Inspector in Charge Darnell Edwards.  “The U.S. Postal Inspection Service relentlessly investigates investment fraud to protect investors and the integrity of the U.S. financial system.  If you suspect investment fraud, please report it at USPIS.GOV.”

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

From 2023 through February 2026, FRANKEL and DINELLI perpetrated a scheme in which they fraudulently obtained over $8.7 million from approximately 35 investors in connection with their fund, Beyond Alpha Ventures LLC (“BAV”).  As part of that scheme, FRANKEL and DINELLI repeatedly lied to investors who sought to invest in pre-IPO companies by falsely telling some investors that they were purchasing direct shares in a pre-IPO company and falsely telling other investors that a third-party administrator would create a special purpose vehicle for their investment, hold the investors’ funds, and oversee the investment.  The defendants further oversubscribed one of the offerings and used the additional funds to, among other things, fund BAV’s margin calls and unprofitable options trading.  The defendants further lied to investors by claiming that BAV had previously invested in numerous other major companies before they went public, that BAV currently held interests in several pre-IPO companies, and that FRANKEL and DINELLI were personally investing in the two pre-IPO companies for which they solicited investments. 

FRANKEL and DINELLI further misled investors who sought to invest in BAV’s hedge-fund-style trading fund by falsely telling investors that BAV used a proprietary algorithm for its trading, had a long track record of producing exceptional returns, provided full liquidity, and real-time, verifiable access to the investors’ portfolios.  In fact, BAV had no proprietary algorithms, limited trading history, and suffered catastrophic losses due to FRANKEL’s reckless margin options trading, which included losing approximately $1.9 million on a single trade.  To hide the losses, the defendants created fabricated account statements and screenshots that purported to show investors’ double and triple-digit returns. 

FRANKEL further lied repeatedly on his Form ADV filings by failing to disclose that he had previously been charged and convicted of felony offenses and had previously been disciplined by the Financial Industry Regulatory Authority, including for failing to notify his prior employer of his criminal history.  

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FRANKEL, 32, of Kinnelon, New Jersey, is charged with one count of securities fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit securities fraud, one count of investment adviser fraud, and one count of making false reports to the SEC, each of which carries a maximum sentence of five years in prison.

DINELLI, 34, of Frederick, Maryland, is charged with one count of securities fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison; and one count of conspiracy to commit securities fraud and wire fraud, which carries a maximum sentence of five 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. McDonald praised the outstanding work of the USPIS.  Mr. McDonald further thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.  

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Ryan Finkel, Courtney L. Heavey, and Daniel G. Nessim are in charge of the prosecution.

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

United States Attorney for the Southern District of New York, Jamie McDonald, XX of the U.S. Environmental Protection Agency (“EPA”), Drew McCall, Chief of Staff of the U.S. Department of Housing and Urban Development (“HUD”), and Acting Inspector General Brian D. Harrison of the HUD Office of the Inspector General (“HUD OIG”), announced today that the district court has approved a settlement of a civil lawsuit filed by the United States against the ESTATE OF HARRY D. SILVERSTEIN (the “ESTATE” or the “Defendant”). The lawsuit alleges that Harry D. Silverstein (“SILVERSTEIN”) and the ESTATE routinely violated federal laws relating to lead paint safety.  The Stipulation and Order of Settlement (“Settlement”), requires, among other things, that the Defendant pay a $4 million penalty. 

“This Office is committed to protecting the health and safety of New Yorkers,” said U.S. Attorney Jamie McDonald.  “When landlords and renovators violate laws designed to protect children from lead poisoning, we will take action.  Today’s $4 million penalty should put landlords and renovators on notice that violations of important federal safety laws will not be tolerated.” 

EPA QUOTE

“Landlords of homes built before 1978 must warn tenants about known lead," said HUD Chief of Staff Drew McCall.  “The defendant ignored this requirement, risking exposure of children to lead toxins and lead poisoning.”

“HUD OIG has zero tolerance for landlords who place families at risk by failing to provide safe and healthy housing,” said HUD Acting Inspector General Brian D. Harrison. “There is no excuse for violating laws that protect children from preventable exposures to lead hazards. This settlement holds the Silverstein Estate accountable for its serious failures. HUD OIG will continue working alongside the U.S Department of Justice, HUD, and EPA to aggressively pursue those who violate the law and to ensure our nation’s most vulnerable residents are protected.”

Lead is toxic.  Lead poisoning can affect children’s brains and developing nervous systems, causing reduced IQ, learning disabilities, and behavioral problems.  The most common source of lead poisoning in children is ingesting deteriorated lead paint or lead dust from renovations.  To protect children from this grave threat, the federal Lead Disclosure Rule requires landlords and their agents to inform tenants about the risks of lead exposure in their apartments before entering lease agreements and to disclose known facts and available records about lead paint and lead paint hazards to them so those tenants can take action to protect their children.  A second key regulation, EPA’s Renovation, Repair and Painting Rule (“RRP Rule”), sets mandatory certification, training, and work-practice requirements to minimize the risk of lead exposure during renovation projects. 

As alleged in the United States’ Complaint filed in the district court, SILVERSTEIN and the ESTATE routinely violated both regulations.  SILVERSTEIN owned, managed, and controlled more than 1,000 apartments in fourteen New York City buildings constructed before 1978 until his death in 2016. After his death, the ESTATE owned, managed, and controlled those apartments until it sold them, which in some cases was not until 2020.  For years, SILVERSTEIN and the ESTATE systematically failed to provide their tenants with disclosures about lead-based paint and lead-based paint hazards in their apartments, as required by the Lead Disclosure Rule.  They also failed to protect tenants from toxic lead dust during renovation work.  At least 11 children residing in these buildings suffered lead poisoning during SILVERSTEIN’s ownership of the buildings.

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In the Settlement, the ESTATE admits, acknowledges, and accepts responsibility for the following:

• SILVERSTEIN and the ESTATE had an ownership interest in entities that owned and controlled 14 buildings, which contained approximately 1,000 units in New York City, all of which were built prior to 1978.
• During the period SILVERSTEIN had an ownership interest in entities that owned and controlled these buildings, the New York City Department of Housing Preservation and Development issued certain lead-based paint violations in the buildings.
• When SILVERSTEIN had an ownership interest in entities that owned and controlled these buildings, on one or more occasions, the ESTATE could not locate evidence that SILVERSTEIN provided a Lead Warning Statement or EPA-approved lead hazard information pamphlet to tenants entering into a new lease.

October 25 to 31, 2026, is National Lead Poisoning Prevention Week. The United States Attorney’s Office, EPA, HUD, and HUD OIG all encourage parents to learn what they can do to help keep kids safe from lead poisoning. Useful resources are available at https://www.epa.gov/lead/national-lead-poisoning-prevention-week.

Mr. McDonald thanked the EPA and HUD attorneys and staff, and agents at HUD OIG, for their critical partnership on this and other lead paint enforcement matters.

This case is being handled by the Environmental Protection Unit of the Office’s Civil Division.  Assistant U.S. Attorneys Jacob Lillywhite and Jessica F. Rosenbaum are in charge of the case.

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that the United States has filed a federal Fair Housing Act (“FHA”) lawsuit against STAGG GROUP (“STAGG”) relating to its failure to design and construct new apartment buildings so as to be accessible to persons with physical disabilities.  The specific buildings allegedly designed in violation of the FHA’s requirements are 3745 Riverdale Avenue, Bronx, NY 10463 (“Riverdale Tower”), 5959 Broadway, Bronx, NY 10463 (“The Station”), 6327 Broadway, Bronx, NY 10471 (“The Hudson”), 6375 Broadway, Bronx, NY 10471 (“The Stables”), 1680 Pelham Parkway South, Bronx, NY 10461 (“The Equestrian”), and 26 Garden Street, New Rochelle, New York (“West View”).

“Over the past two decades, this Office has brought twenty-one lawsuits against developers, architects, and construction companies to remedy their failure to comply with the Fair Housing Act,” said U.S. Attorney Jamie McDonald.  “Every New Yorker should be able to enjoy their homes, regardless of whether they have disabilities.”

The FHA’s accessible design and construction provisions require multifamily housing complexes constructed after January 1991 to have basic features accessible to persons with disabilities.  To enforce these provisions, the U.S. Attorney’s Office for the Southern District of New York has filed suits and obtained settlements with a wide array of developers and related entities that construct multifamily housing, including the Related Companies, the Durst Organization, Glenwood Management, Silverstein Properties, Atlantic Development Group, and Toll Brothers.

According to the allegations in the Complaint, inaccessible conditions at certain of the specified buildings include:

• The front entry to the building is not accessible to persons who use wheelchairs because there is a non-automatic door requiring excessive force. 
• Mailboxes are not accessible to persons who use wheelchairs because they are located too high. 
• The curb ramp near the entrance of the building is inaccessible to persons who use wheelchairs due to its running slope. 
• The ramp at the entrance to the outdoor entertainment space is not accessible to persons who use wheelchairs because it is excessively steep and missing a handrail.
• In individual units, the entry threshold is not accessible to persons who use wheelchairs because it is too high. 
• In individual units, the threshold to the bathroom is not accessible to persons who use wheelchairs because it is too high. 
• In individual units, the doorway to the bathroom is not accessible to persons who use wheelchairs because it is too narrow. 
• In individual units, there is insufficient clear floor space outside the swing of the door in the studio bathroom.
• In individual units, the balcony door is inaccessible to persons who use wheelchairs because the doorway is not wide enough. 
• In individual units, the threshold to the balcony is not accessible to persons who use wheelchairs because it is too high and unbeveled. 

Due to the inaccessible conditions at the buildings that STAGG designed and constructed, STAGG engaged in a pattern or practice of resistance to the full enjoyment of rights protected by the FHA and denied such rights to people with disabilities.  The Complaint seeks a court order directing STAGG to retrofit individual apartments as well as the public and common use areas of the buildings so that they are accessible, to adopt policies and procedures to ensure FHA compliance in future constructions, and to compensate individuals who suffered discrimination due to the inaccessible conditions. 

People who believe they may have experienced discrimination due to the inaccessible conditions at the above-named buildings designed and constructed by STAGG may contact the Civil Rights Complaint account at USANYS-CivilRights@usdoj.gov, use the Civil Rights Complaint Form available on the U.S. Attorney’s Office’s website http://www.justice.gov/usao/nys/civilrights.html, or send a written report to: 

U.S. Attorney’s Office, Southern District of New York 

86 Chambers Street, 3rd Floor 

New York, New York 10007 

Attention: Chief, Civil Rights Unit 

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Mr. McDonald thanked the Fair Housing Testing Program of the Civil Rights Division of the Department of Justice for its assistance with the investigation.

The case is being handled by the Office’s Civil Rights Unit in the Civil Division.  Assistant U.S. Attorneys Mallika Balachandran and David J. Kennedy are in charge of the case.

United States Attorney for the Southern District of New York, Jamie McDonald, and Special Agent in Charge of the Northeast Area Field Office of the United States Postal Service Office of Inspector General (“USPS-OIG”), Matthew M. Modafferi, announced today that PIAN PIAN WONG-TAM, a former United States Postal Service (“USPS”) Mail Processing Clerk in White Plains, New York, and WILLIAM WONG, a former USPS Mail Clerk in Millwood, New York, were presented today before Chief U.S. Magistrate Judge Judith C. McCarthy on charges that they engaged in a scheme and conspiracy in which WONG-TAM removed mail entrusted to her by USPS, stole gift cards and other items out of that mail, and then, together with WONG, used those gift cards and other items for their own personal gain.

“The charges against the defendants reflect this Office’s and our law enforcement partners’ continued commitment to ensuring the integrity of the U.S. postal system,” said U.S. Attorney Jamie McDonald.  “As alleged, Pian Pian Wong-Tam stole more than 200 gift cards out of mail entrusted to her for processing, and then, together with William Wong, used those gift cards for their own benefit, abusing their positions of trust and victimizing hundreds of people in the process.  The complaint against Wong-Tam and Wong should send a clear message that stealing from the mail entrusted to USPS for delivery is a serious federal offense that will not be tolerated.”

“Misconduct by postal employees undermines the trust placed in the Postal Service and will not be tolerated,” said USPS-OIG Special Agent in Charge Matthew M. Modafferi.  “The United States Postal Service Office of Inspector General remains committed to protecting the integrity of the Postal Service and ensuring accountability.  We appreciate the U.S. Attorney’s Office for its partnership in this investigation.”

According to the Complaint:

Until July 24, 2026, WONG-TAM was working as a Mail Processing Clerk at the USPS White Plains Processing & Distribution Center (“P&DC”) in White Plains, New York, while WONG was working as a Mail Clerk at a post office in Millwood, New York.

After receiving multiple customer complaints about mail that had been processed through the P&DC being delivered damaged, with expected gift cards missing, USPS-OIG’s investigation revealed that, from April 2025 to July 24, 2026, WONG-TAM took advantage of her position of trust at the P&DC to steal, among other things, gift cards from the mail she was responsible for processing.  WONG-TAM then shared the gift cards she stole with WONG and, together, they used those gift cards at a variety of businesses in multiple states for their own personal benefit.  All told, WONG-TAM and WONG’s scheme resulted in the theft of no less than 200 gift cards, ranging in value from $25 to $500 each.

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WONG-TAM, 59, of New York, New York, and WONG, 57, of New York, New York, are each charged with one count of conspiracy to steal and unlawfully possess mail, which carries a maximum sentence of five years in prison; one count of unlawful possession of mail, which carries a maximum sentence of five years in prison; one count of conspiracy to commit access device fraud, which carries a maximum sentence of five years in prison; and two counts of access device fraud, which each carry a maximum sentence of 10 years in prison.  WONG-TAM is also charged with one count of theft of mail by a Postal Service officer or employee, which carries a maximum sentence of five years in prison.

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

Mr. McDonald praised the outstanding investigative work of the Northeast Area Field Office of the USPS-OIG.

This case is being handled by the Office’s White Plains Unit.  Assistant U.S. Attorney Timothy Deal 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.

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    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 therein should be treated as an allegation. 

United States Attorney for the Southern District of New York, Jamie McDonald, Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), Bryan DiGirolamo, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today that EDSON BROWN was sentenced to 135 months in prison by U.S. District Judge John P. Cronan for trafficking more than 100 guns from North Carolina and South Carolina to New York City. 

“Our Office will do everything in our power to keep New Yorkers safe,” said U.S. Attorney Jamie McDonald. “Gun traffickers like Edson Brown fuel violent crime in New York City by putting guns into the hands of violent criminals. Today’s sentence protects New Yorkers and puts gun traffickers on notice that we and our law enforcement partners will aggressively pursue those who profit from gun crime and hold them accountable for the harm they cause.”

“Firearms trafficking puts guns into the hands of individuals who can use them to fuel violence in our communities,” said ATF Special Agent in Charge Bryan DiGirolamo. “Trafficking more than 100 firearms into New York City is not simply moving illegal guns—it is creating opportunities for those firearms to be used in violent crime. This 135-month sentence reflects the seriousness of that conduct and the importance of identifying and disrupting firearms trafficking networks. I commend the dedicated work of the ATF/NYPD Joint Firearms Task Force and the U.S. Attorney’s Office for the Southern District of New York. This is impactful work at the heart of ATF’s mission: stemming the illegal flow of firearms and reducing violent gun crime.”

“Edson Brown crossed state lines at least a dozen times to traffic more than 100 guns onto New York City streets,” said NYPD Commissioner Jessica S. Tisch. “He then removed their serial numbers and sold the guns , knowing exactly what they would be used for. This is yet another example of the dangerous work that NYPD investigators do to make our communities safer—putting their lives at risk to shut down this operation. Thanks to our partners at the ATF and the U.S. Attorney’s Office for the Southern District for their work on this case.” 

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

Beginning in 2023, and continuing until he was arrested in February 2025, BROWN trafficked at least 115 handguns from North Carolina and South Carolina to New York City.  BROWN made more than a dozen trips to North Carolina and South Carolina to buy guns and bring them back to New York. To purchase many of the guns he trafficked, BROWN used straw purchasers, i.e., individuals who could ostensibly buy guns legally in North Carolina and South Carolina. For others, BROWN used the identification of a straw purchaser in South Carolina to impersonate the straw purchaser and buy the guns himself. BROWN was arrested in February 2025 in South Carolina, after purchasing three additional guns to traffic back to New York.

Once the guns were in New York, BROWN removed their serial numbers using power tools and then sold the guns to others, including buyers whom he knew would possess and use the guns illegally. Already, the NYPD has recovered nine of the guns that BROWN trafficked, including one that was used in an armed robbery, another that was used to threaten a victim, and seven more that were illegally possessed in public.

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In addition to the prison term, BROWN, 37, of the Bronx, New York, was sentenced to three years of supervised release.

Mr. McDonald thanked the ATF and the NYPD for their excellent work in this case.

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

“Moments ago, a jury returned a unanimous verdict finding John Livigni, a leader of the Washington Square Park drug ring, guilty of all narcotics charges, including three overdoses—two of which resulted in death.  One of the victims was just 18 years old.  Our Office’s commitment to keeping New Yorkers and their families safe includes ensuring they can use public spaces without the interference of dangerous drug dealers.  For far too long, New Yorkers were forced to live with the dangerous drug dealers who had turned Washington Square Park, in the heart of Greenwich Village, into an open-air drug market.  Not anymore: as a result of our Office’s dedication and the continued commitment of our partners at the NYPD and DEA, New Yorkers are able to enjoy our iconic Washington Square Park in peace—and safely.”

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that ANTHONY NORTHOVER was sentenced to 10 years in prison by U.S. District Judge Victor Marrero for illegally possessing a firearm and ammunition in connection with a June 4, 2024, shooting during which NORTHOVER, who previously had been convicted of several felonies, fired multiple shots on a residential street in the Bronx, striking a victim and causing him life-threatening injuries. 

“Today’s lengthy sentence protects New Yorkers from gun violence and sends an important message, especially to recidivist violent criminals—those who bring illegal guns and violence into our communities will be investigated and prosecuted to the full extent of the law,” said U.S. Attorney Jamie McDonald. “In February 2024, Northover was released from federal custody after serving a lengthy sentence for racketeering, narcotics, and firearm-related offenses. But on June 4, 2024, less than four months later, while on supervised release, Northover fired a gun multiple times on a residential street in the Bronx, striking and severely injuring a victim, before fleeing.”

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

On June 4, 2024, at approximately 11:25 p.m., NORTHOVER shot a male individual (the “Victim”) several times in the vicinity of Van Nest Avenue and between Melville Street and Van Buren Street in the Bronx. After the Victim was hit and fell to the ground, NORTHOVER continued shooting at other individuals who were in the vicinity and running away from the gunfire. NORTHOVER fled the scene of the shooting by moped.

Shortly after the shooting, several law enforcement officers—who, at the time, were unaware that NORTHOVER had just committed a shooting—saw NORTHOVER, who was driving a moped, commit a traffic violation in the vicinity of Prospect Avenue and Freeman Street in the Bronx. While driving, the defendant discarded a firearm on a pile of trash on the sidewalk. Law enforcement officers stopped NORTHOVER and, following a brief canvass of the sidewalk on which the defendant drove, recovered the firearm where the defendant had dropped it and arrested NORTHOVER. 

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In addition to the prison term, NORTHOVER, 40, of the Bronx, New York, was sentenced to three years of supervised release.

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

This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Rebecca T. Dell and Dana R. McCann are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jamie McDonald, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today that WILLIAM CARLTON has been charged and pled guilty to securities fraud for his role in a scheme to defraud his investment advisory clients by “cherry picking,” systematically allocating profitable trades to himself and allocating unprofitable trades to his clients. Through this conduct, CARLTON gained millions of dollars at the expense of his clients. CARLTON pled guilty today before Magistrate Judge Ona T. Wang and is scheduled to be sentenced by U.S. District Judge Richard M. Berman on January 27, 2027.

“Investment advisers are required to act with integrity and put their clients’ interests ahead of their own,” said U.S. Attorney Jamie McDonald. “William Carlton instead admitted to systematically steering profitable trades to himself while leaving losing trades for his clients. Today’s guilty plea holds him accountable for abusing that trust for personal gain.”

“William Carlton initially denied wrongdoing but later pled guilty to cherry‑picking profitable trades for himself and dumping poor‑performing trades on his clients,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “Those clients trusted him to act in their best interest, and the FBI worked diligently to uncover his scheme and prevent further harm. The FBI remains committed to exposing financial-sector misconduct and upholding trust and integrity in the markets.”

According to the Information:

CARLTON served as an investment adviser to more than 50 clients every year. As an adviser, CARLTON managed his clients’ trading accounts and had the authority to buy and sell securities for those managed accounts. CARLTON owed his clients a fiduciary duty, including the duty to act in their best interests and to refrain from disadvantaging his clients in favor of his own personal trading.

From at least in or about January 2015, up to and including at least in or about August 2022, CARLTON engaged in cherry-picking, systematically assigning profitable trades to himself and unprofitable trades to his clients. CARLTON would purchase securities in his personal trading account and observe price movements during the trading day. When the price of a stock increased over the course of the day, CARLTON typically sold the stock the same day and kept the profits for himself. By contrast, when the price of a stock decreased over the course of the day, CARLTON typically assigned the stock to his clients’ accounts. As a result of CARLTON’s scheme, approximately 70% of the trades CARLTON assigned to his own accounts experienced same-day gains. At the same time, only approximately 16% of the trades CARLTON assigned to his clients’ accounts experienced same-day gains. Conversely, as a result of CARLTON’s scheme, only approximately 30% of the trades CARLTON assigned to his own accounts experienced same-day losses. At the same time, approximately 84% of the trades CARLTON assigned to his clients’ accounts experienced same-day losses. Through his cherry-picking scheme, CARLTON realized ill-gotten gains of approximately $6 million, while imposing losses on many of his clients.

When confronted by the United States Securities and Exchange Commission about his conduct, CARLTON falsely denied that he had ever made trades in his personal account and later reassigned them to his clients’ accounts, claiming instead that he placed all client trades individually and directly in each client’s account. That statement was false and misleading.

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CARLTON, 66, of Seattle, Washington, pled guilty to securities fraud, which carries a maximum sentence of 20 years in prison. CARLTON will also be subject to forfeiture and restitution at the time of sentencing.

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. McDonald thanked the FBI for its outstanding work. Mr. McDonald also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Marguerite B. Colson, Peter Davis, and Daniel G. Nessim are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jamie McDonald, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of Complaints charging HEFU CHAI and HUAISONG XIANG, a/k/a “Jerry Xiang,” with commodities fraud and wire fraud arising from a scheme to misappropriate confidential business information from their employer, Robinhood Markets, Inc. (“Robinhood”), and use that information to trade perpetual futures on Hyperliquid, a decentralized derivatives exchange. CHAI will be presented today in the Northern District of California. XIANG will be presented today before U.S. Magistrate Judge Ona T. Wang.

“Misappropriating confidential information to trade in the derivatives markets for personal benefit is illegal,” said U.S. Attorney Jamie McDonald. “That is exactly what we allege Hefu Chai and Huaisong Xiang have done. Today’s charges make clear that corporate insiders cannot evade the securities and commodities laws by trading based on misappropriated information in derivatives like perpetual futures, tokenized securities, or other similar financial instruments.”

“Hefu Chai and Huaisong Xiang are charged with commodities fraud and wire fraud for allegedly exploiting confidential business information taken from their employer to trade perpetual futures,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “These charges make clear the FBI with its partners will act when individuals access sensitive business information for their own benefit.” 

According to the Complaints unsealed today in Manhattan federal court:(1)

CHAI and XIANG were employed as engineers at Robinhood. In connection with their roles at Robinhood, CHAI and XIANG had access to nonpublic information regarding whether and when Robinhood would support additional cryptocurrencies for trading on Robinhood Crypto, a Robinhood subsidiary that operates a digital asset trading platform.

Hyperliquid markets itself as a decentralized exchange for trading a wide range of derivative products, including cryptocurrencies and derivatives tied to other underlying assets. Investors on Hyperliquid can purchase, among other things, perpetual futures (“perpetuals”). Perpetuals are derivative products that allow investors to take positions on the price movements of an underlying asset, whether a cryptocurrency or another asset, without owning the asset itself. Unlike traditional futures contracts, Hyperliquid’s perpetuals do not expire and can be maintained indefinitely. To keep a position open, however, traders must make or receive periodic funding payments, which align the perpetual’s price with the spot price of the underlying asset. A trader can settle the perpetual at any time and realize their gain or loss. 

Between 2025 and 2026, CHAI and XIANG repeatedly bought perpetual futures linked to cryptocurrency tokens on Hyperliquid in advance of Robinhood’s public announcements that the underlying cryptocurrency tokens would be listed on Robinhood Crypto. On each occasion, CHAI and XIANG possessed material nonpublic information that Robinhood would list the cryptocurrency token on Robinhood Crypto, and CHAI and XIANG traded on that information in breach of the duties that CHAI and XIANG owed to Robinhood to maintain the confidentiality of this information. CHAI and XIANG each profited more than $50,000 from their illicit trading.

*                *                *

CHAI, 36, of Menlo Park, California, and XIANG, 30, of Jersey City, New Jersey, are charged with one count of violating the Commodity Exchange Act, which carries a maximum sentence of 10 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison.

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

Mr. McDonald praised the outstanding work of the FBI. Mr. McDonald further thanked Robinhood for its cooperation with the investigation.

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

The charges contained in the Complaints 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 Complaints and the description of the Complaints set forth herein constitute only allegations, and every fact described therein should be treated as an allegation. 

The Department of Justice announced today the unsealing of charges against five individuals working for the intelligence services of the Russian Federation to conduct attacks and murders around the world, including in the United States. As detailed in the unsealed indictment, the network is alleged to have, among other things, paid and attempted to pay individuals within the United States and elsewhere to conduct pre-operational surveillance and carry out targeted killings, and commissioned associates to commit and attempt to commit acts of terrorism against civilian and military infrastructure in European countries that are aligned, or perceived to be aligned, with Ukraine. The defendants remain at large.

“It is our job to stop America’s adversaries from unleashing violence and terror on American soil,” said Attorney General Todd Blanche. “And that’s precisely what we are doing thanks to the work of the FBI and our Justice Department prosecutors.”

“The charges announced reveal an alleged plot by the Russian intelligence services to murder a dissident on U.S. soil for daring to speak out against the Russian government,” said FBI Director Kash Patel. “As alleged in the indictment, this plot exposes the lengths to which our adversaries will go to silence its critics and illustrates the grave threat transnational repression poses to the lives and freedoms of all who challenge authoritarian regimes. The FBI is committed to defending the free speech of everyone within our homeland and will not tolerate any attempts by foreign governments to violate our laws and threaten our freedoms.”

“These defendants allegedly operated as part of a global assassination network that reached into the United States, attempting to recruit U.S. citizens and foreigners to carry out killings at the behest of the Kremlin,” said Assistant Attorney General for National Security John A. Eisenberg. “Actions like these represent a gross violation of our sovereignty and a threat to our national security. We will stamp out any foreign intelligence services’ attempt to operate freely in our great Nation, and we will not rest until they and their enablers suffer the most severe consequences that federal law can levy.”

“We will not tolerate efforts to finance terrorist activities and engage in acts of violence — particularly when these activities are commissioned by state actors and touch American soil,” said U.S. Attorney Jamie McDonald for the Southern District of New York. “As alleged, the defendants, working for the intelligence services of Russia, conspired to cause destruction and mayhem around the world, including right here in the United States. The Russian-led network charged in today’s indictment is brazen, aggressive, and far-reaching, and the charges levied against the defendants should send a clear message: no matter where you are, and no matter who you work for, we will investigate and prosecute you for your crimes. I thank our partners at the FBI who work tirelessly to protect our communities and am grateful that our law enforcement partners neutralized this deadly and outrageous threat.”  

“As alleged in this indictment, members of the Russian Intelligence Services and their affiliates conspired to intimidate, threaten, or murder people on U.S. soil and around the world,” said Assistant Director in Charge of the FBI New York Field Office James C. Barnacle Jr. “The FBI disrupted this operation through relentless work and rock-solid partnership. The FBI is committed to confronting transnational repression wherever it occurs and protecting those targeted for exercising their fundamental rights. We thank the multiple FBI Field Offices and the U.S. Attorney’s Office whose coordination and commitment made this disruption possible.” 

“The charges announced today represent the culmination of extraordinary work by multiple FBI field offices, components, and partner agencies that collectively disrupted Russia’s attempts to conduct violent acts in our nation’s capital and throughout the United States,” said Assistant Director in Charge of the FBI Washington Field Office Darren B. Cox. “When this threat was identified, the Washington Field Office and our partners moved quickly to disrupt the plot and hold the Russian government accountable for its actions. Our message is clear: any foreign intelligence service that attempts to direct violence inside the United States will face an unrelenting and coordinated response from the FBI and our partners to protect the homeland.”

As reflected in the indictment unsealed today:

Since at least 2024, a network of individuals working for the intelligence services of the Russian Federation (the “RIS Network”) has conspired to conduct and conducted attacks and murders around the world, including within the United States. The RIS Network is one arm of the Russian Federation’s apparatus to carry out external attacks, including murder, and has focused on Russian dissidents and defectors and, most recently, on nations perceived as allies of Ukraine. Most recently, members of the RIS Network have attempted to recruit multiple individuals within the United States to carry out pre-operational surveillance and murder within this country.

Three of the defendants are high-ranking members of the RIS Network. Those three defendants are:  Yuri Khrameev, also known as “Colonel Yuri,” 63, of Russia, a former colonel in the Russian intelligence services who has participated in the recruitment of multiple individuals to commit murder against perceived Russian dissidents; Kirill Khrameev, 27, of Russia, an officer in the Federal Security Service of Russia (FSB) and Yuri Khrameev’s son; and Oemis Romagoza Durruthy, 35, a Cuban national who is an influential member of the Cuban diaspora living in Russia who has coordinated attacks for the RIS Network. Two additional members of the RIS Network who are charged in the indictment are Yaidel Delgado Suarez, also known as “Viking,” 35, of Cuba, who is a prolific recruiter for the RIS Network and who has recruited or attempted to recruit multiple individuals in the United States; and Angel Eduardo Castro, 22, of Venezuela, who participated with Suarez in the recruitment of U.S.-based individuals to surveil and attempt to murder a prominent U.S.-based Russian dissident (Victim-1).

The RIS Network has allegedly carried out or conspired to carry out multiple schemes around the world. Most recently, this summer, the RIS Network recruited an individual based in the United States (U.S. Resident-1) to surveil and murder a prominent Russian dissident they believed to be residing in the United States. Among other things, Suarez sent U.S. Resident-1 two locations associated with Victim-1 to surveil; provided U.S. Resident-1 with explicit instructions on how to conduct surveillance; and promised U.S. Resident-1 between $1,000 and $1,500 dollars to carry out the pre-operational surveillance. In turn, U.S. Resident-1 conducted the requested surveillance and passed back to Suarez multiple photographs and videos of locations associated with Victim-1. Suarez and Castro further offered U.S. Resident-1 $40,000 to “eliminate” or “disappear” Victim-1 and, when U.S. Resident-1told them that he did not want to carry out the murder by his own hand, asked U.S. Resident-1 if he knew “someone [who] can do the work.”  Suarez also told U.S. Resident-1 that he had “people in Mexico” who could otherwise carry out the murder, but they were delayed in doing so. In addition, Suarez attempted to recruit multiple other individuals within the United States to conduct pre-operational surveillance and murder Victim-1 and other potential targets within the United States and offered them substantial sums of money to carry out the targeting of the U.S. based victims.

The alleged attempted murder of Victim-1 is the latest in the RIS Network’s efforts. Last year, as alleged in the indictment, the RIS Network solicited a U.S. Citizen (U.S. Citizen-1) to surveil and murder an individual located in Lithuania (Victim-2) who the RIS Network described as a “bad guy” who was “telling lies about Russia.”  Kirill Khrameev first recruited U.S. Citizen-1 to travel to Victim-2’s purported address and take pictures. After U.S. Citizen-1 accepted and completed the assignment in exchange for a promise of $200, Kirill Khrameev introduced U.S. Citizen-1 to someone he described as his “boss” and a “colonel,” later identified as Yuri Khrameev. Yuri Khrameev then offered U.S. Citizen-1 approximately $25,000 to “kill him” — that is, Victim-2. Yuri Khrameev further told U.S. Citizen-1 that they wanted Victim-2 dead because he was “spreading dirt about my country” and “distorting history.”  Yuri Khrameev then sent U.S. Citizen-1 a photograph of Victim-2 and described that he could be murdered by “throwing a bottle of gasoline” or “sticking a knife” in him. After U.S. Citizen-1 declined to carry out the murder, Yuri Khrameev offered to give him a “simpler job” which could include “set[ting] fire to a warehouse of property or food” or “throw[ing] a bottle of gasoline at an electrical substation.”  Yuri Khrameev made clear to U.S. Citizen-1 that the purpose was to target “all the countries that are helping Ukraine” and that he was offering “serious money for serious work.”  Finally, Yuri Khrameev confirmed that he was a “colonel of Russian intelligence agencies.”

The RIS Network has also allegedly recruited others to carry out acts of terrorism overseas. Oemis Romagoza Durruthy coordinated travel and logistics for the network. In or about June 2024, Durruthy coordinated an attack in Prague, Czechia, including by sending another participant potential attack sites and facilitating that participant’s travel. In or about September 2024, Durruthy coordinated another attack in Lithuania in which he booked travel reservations for another individual involved in the attack and had frequent and ongoing communications with an individual involved in the attack. Durruthy also communicated with Yuri Khrameev in or about November 2025, during which Durruthy obtained media of one of Victim-1’s dwellings, which was ultimately surveilled by U.S. Resident-1 this year. 

Yuri Khrameev, Kirill Khrameev, Oemis Romagoza Durruthy, Yaidel Delgado Suarez, and Angel Eduardo Castro are all charged with participating in a conspiracy to finance terrorism (Count One), which carries a maximum penalty of 20 years in prison. Yuri Khrameev, Suarez, and Castro are also charged with participating in a conspiracy to commit murder for hire (Count Two), which carries a maximum penalty of 10 years in prison.

The Counterintelligence Division of the FBI New York Field Office investigated the case, with the significant assistance of the Washington Field Office and Homeland Security Investigations.

Assistant U.S. Attorneys Jeffrey Coyle, Kaylan E. Lasky, Adam Margulies, and Jason A. Richman for the Southern District of New York are prosecuting the case, with assistance from Trial Attorney Andrew Briggs of the Counterterrorism Section of the Justice Department’s National Security Division and Trial Attorney Yifei Zheng of the Counterintelligence and Export Control Section of the Justice Department’s National Security Division.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

United States Attorney for the Southern District of New York, Jamie McDonald, Attorney General for the United States, Todd Blanche, Assistant Attorney General for National Security, John A. Eisenberg, Director of the Federal Bureau of Investigation (“FBI”), Kash Patel, Assistant Director in Charge of the New York Field Office of the FBI, James C. Barnacle, Jr., and Assistant Director in Charge of the Washington Field Office of the FBI, Darren B. Cox, announced today the unsealing of charges against five individuals working for the intelligence services of the Russian Federation to conduct attacks and murders around the world, including in the United States.  As detailed in the unsealed indictment, the network is alleged to have, among other things, paid and attempted to pay individuals within the United States and elsewhere to conduct pre-operational surveillance and carry out targeted killings, and commissioned associates to commit and attempted to commit acts of terrorism against civilian and military infrastructure in European countries that are aligned, or perceived to be aligned, with Ukraine.  The defendants remain at large.

“We will not tolerate efforts to finance terrorist activities and engage in acts of violence—particularly when these activities are commissioned by state actors and touch American soil,” said U.S. Attorney Jamie McDonald.  “As alleged, the defendants, working for the intelligence services of Russia, conspired to cause destruction and mayhem around the world, including right here in the United States.  The Russian-led network charged in today’s indictment is brazen, aggressive, and far-reaching, and the charges levied against the defendants should send a clear message: no matter where you are, and no matter who you work for, we will investigate and prosecute you for your crimes.  I thank our partners at the FBI who work tirelessly to protect our communities and am grateful that our law enforcement partners neutralized this deadly and outrageous threat.”  

“It is our job to stop America’s adversaries from unleashing violence and terror on American soil,” said Attorney General Todd Blanche.  “And that’s precisely what we are doing thanks to the work of the FBI and our Justice Department prosecutors.”

“These defendants allegedly operated as part of a global assassination network that reached into the United States, attempting to recruit U.S. citizens and foreigners to carry out killings at the behest of the Kremlin,” said Assistant Attorney General for National Security John A. Eisenberg.  “Actions like these represent a gross violation of our sovereignty and a threat to our national security.  We will stamp out any foreign intelligence services’ attempt to operate freely in our great Nation, and we will not rest until they and their enablers suffer the most severe consequences that federal law can levy.”

“The charges announced reveal an alleged plot by the Russian intelligence services to murder a dissident on U.S. soil for daring to speak out against the Russian government,” said FBI Director Kash Patel.  "As alleged in the indictment, this plot exposes the lengths to which our adversaries will go to silence its critics and illustrates the grave threat transnational repression poses to the lives and freedoms of all who challenge authoritarian regimes.  The FBI is committed to defending the free speech of everyone within our homeland and will not tolerate any attempts by foreign governments to violate our laws and threaten our freedoms.”

“As alleged in this indictment, members of the Russian Intelligence Services and their affiliates conspired to intimidate, threaten, or murder people on U.S. soil and around the world,” said Assistant Director in Charge of the FBI New York Field Office James C. Barnacle, Jr.  “The FBI disrupted this operation through relentless work and rock-solid partnership.  The FBI is committed to confronting transnational repression wherever it occurs and protecting those targeted for exercising their fundamental rights.  We thank the multiple FBI Field Offices and the United States Attorney's Office whose coordination and commitment made this disruption possible.” 

“The charges announced today represent the culmination of extraordinary work by multiple FBI field offices, components, and partner agencies that collectively disrupted Russia’s attempts to conduct violent acts in our nation’s capital and throughout the United States,” said Assistant Director in Charge of the FBI Washington Field Office Darren B. Cox.  “When this threat was identified, the Washington Field Office and our partners moved quickly to disrupt the plot and hold the Russian government accountable for its actions.  Our message is clear: any foreign intelligence service that attempts to direct violence inside the United States will face an unrelenting and coordinated response from the FBI and our partners to protect the homeland.”

As reflected in the Indictment unsealed today:(1)

Since at least in or about 2024, a network of individuals working for the intelligence services of the Russian Federation (the “RIS Network”) has conspired to conduct and conducted attacks and murder around the world, including within the United States.  The RIS Network is one arm of the Russian Federation’s apparatus to carry out external attacks, including murder, around the world, which has focused on Russian dissidents and defectors and, most recently, on nations perceived as allies of Ukraine.  Most recently, members of the RIS Network have attempted to recruit multiple individuals within the United States to carry out pre-operational surveillance and murder within this country.

Three of the defendants are high-ranking members of the RIS Network. Those three defendants are:  YURI KHRAMEEV, a/k/a “Colonel Yuri,” a former colonel in the Russian intelligence services who has participated in the recruitment of multiple individuals to commit murder against perceived Russian dissidents; KIRILL KHRAMEEV, an officer in the Federal Security Service of Russia (“FSB”) and YURI KHRAMEEV’s son; and OEMIS ROMAGOZA DURRUTHY, a Cuban national who is an influential member of the Cuban diaspora living in Russia who has coordinated attacks for the RIS Network. Two additional members of the RIS Network who are charged in the Indictment are YAIDEL DELGADO SUAREZ, a/k/a “Viking,” who is a prolific recruiter for the RIS Network and who has recruited or attempted to recruit multiple individuals in the United States; and ANGEL EDUARDO CASTRO, who participated with SUAREZ in the recruitment of U.S.-based individuals to surveil and attempt to murder a prominent U.S.-based Russian dissident (“Victim-1”).

The RIS Network has allegedly carried out or conspired to carry out multiple schemes around the world. Most recently, this summer, the RIS Network recruited an individual based in the United States (“U.S. Resident-1”) to surveil and murder a prominent Russian dissident they believed to be residing in the United States.  Among other things, SUAREZ sent U.S. Resident-1 two locations associated with Victim-1 to surveil; provided U.S. Resident-1 with explicit instructions on how to conduct surveillance; and promised U.S. Resident-1 between $1,000 and $1,500 to carry out the pre-operational surveillance.  In turn, U.S. Resident-1 conducted the requested surveillance and passed back to SUAREZ multiple photographs and videos of locations associated with Victim-1.  SUAREZ and CASTRO further offered U.S. Resident-1 $40,000 to “eliminate” or “disappear” Victim-1 and, when U.S. Resident-1 told them that he did not want to carry out the murder by his own hand, asked U.S. Resident-1 if he knew “someone [who] can do the work.”  SUAREZ also told U.S. Resident-1 that he had “people in Mexico” who could otherwise carry out the murder, but they were delayed in doing so.  In addition, SUAREZ attempted to recruit multiple other individuals within the United States to conduct pre-operational surveillance and murder Victim-1 and other potential targets within the United States, and offered them substantial sums of money to carry out the targeting of the U.S.-based victims.

The alleged attempted murder of Victim-1 is the latest in the RIS Network’s efforts.  Last year, as alleged in the Indictment, the RIS Network solicited a U.S. Citizen (“U.S. Citizen-1”) to surveil and murder an individual located in Lithuania (“Victim-2”) who the RIS Network described as a “bad guy” who was “telling lies about Russia.”  KIRILL KHRAMEEV first recruited U.S. Citizen-1 to travel to Victim-2’s purported address and take pictures.  After U.S. Citizen-1 accepted and completed the assignment in exchange for a promise of $200, KIRILL KHRAMEEV introduced U.S. Citizen-1 to someone he described as his “boss” and a “colonel,” later identified as YURI KHRAMEEV.  YURI KHRAMEEV then offered U.S. Citizen-1 approximately $25,000 to kill Victim-2.  YURI KHRAMEEV further told U.S. Citizen-1 that they wanted Victim-2 dead because he was “spreading dirt about my country” and “distorting history.”  YURI KHRAMEEV then sent U.S. Citizen-1 a photograph of Victim-2 and described that he could be murdered by “throwing a bottle of gasoline” or “sticking a knife” in him.  After U.S. Citizen-1 declined to carry out the murder, YURI KHRAMEEV offered instead to give him a “simpler job” which could include “set[ting] fire to a warehouse of property or food” or “throw[ing] a bottle of gasoline at an electrical substation.”  YURI KHRAMEEV made clear to U.S. Citizen-1 that the purpose was to target “all the countries that are helping Ukraine” and that he was offering “serious money for serious work.”  Finally, YURI KHRAMEEV confirmed that he was a “colonel of Russian intelligence agencies.”

Overseas, the RIS Network has also allegedly recruited others to carry out acts of terrorism. One key member of the RIS Network who is involved in this overseas effort is OEMIS ROMAGOZA DURRUTHY, who coordinated travel and logistics for the RIS Network.  In or about June 2024, DURRUTHY coordinated an attack in Prague, Czechia, including by sending to another participant potential attack sites and facilitating that participant’s travel.  In or about September 2024, DURRUTHY coordinated another attack in Lithuania, in which he, again, booked travel reservations for another individual involved in the attack, and had frequent and ongoing communications with an individual involved in the attack.  DURRUTHY also communicated with YURI KHRAMEEV in or about November 2025, during which time period DURRUTHY obtained media of one of Victim-1’s dwellings, which was ultimately surveilled by U.S. Resident-1 this year. 

*                *                *

YURI KHRAMEEV, a/k/a “Colonel Yuri,” 63, of Russia, KIRILL KHRAMEEV, 27, of Russia, OEMIS ROMAGOZA DURRUTHY, 35, of Cuba, YAIDEL DELGADO SUAREZ, a/k/a “Viking,” 35, of Cuba, and ANGEL EDUARDO CASTRO, 22, of Venezuela, are all charged with participating in a conspiracy to finance terrorism (Count One), which carries a maximum penalty of 20 years in prison.  YURI KHRAMEEV, SUAREZ, and CASTRO are also charged with participating in a conspiracy to commit murder for hire (Count Two), which carries a maximum penalty of 10 years in prison.

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

Mr. McDonald praised the outstanding efforts of the Counterintelligence Division of the FBI’s New York Field Office.  Mr. McDonald also thanked the FBI’s Washington Field Office for their significant assistance, as well as Homeland Security Investigations and the Department of Justice’s National Security Division. 

This prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jeffrey W. Coyle, Kaylan E. Lasky, Adam Margulies, and Jason A. Richman are in charge of the prosecution, with assistance from Trial Attorney Andrew Briggs of the Counterterrorism Section and Trial Attorney Yifei Zheng of the Counterespionage Section.

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 therein should be treated as an allegation. 

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that JILDO ARMANDO MARIN was sentenced to 25 years in prison by U.S. District Judge John G. Koeltl for his sexual exploitation of two minor victims and possession of child sexual abuse material.  MARIN previously pled guilty to two counts of sexual exploitation of a minor and one count of possession of child pornography.

“Today’s sentence reflects the Office’s unwavering commitment to protect children and prosecute those who prey on them,” said U.S. Attorney Jamie McDonald.  “Our Office has held Jildo Armando Marin accountable for the profound and lasting harm he inflicted on these children.  For nearly a decade, Marin sexually abused two minor victims, who were his own family members.  He abused these children, and, when confronted with possible exposure, threatened his victims and forced them to maintain their silence.  He compounded that abuse by creating and possessing a horrific collection of images and videos depicting the abuse of one of his victims, as well as showing the exploitation of other children.  Marin will now deservedly spend lengthy time in prison.”​     

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

Beginning when Minor Victim-1, a female member of the defendant’s family, was approximately seven or eight years old and continuing until approximately January 2025, when Minor Victim-1 was approximately 13, MARIN sexually assaulted Minor Victim-1 on multiple occasions in the Bronx, New York, and during trips to Honduras.  MARIN would lock the door, remove Minor Victim-1’s clothing, and photograph and record the abuse using his cellphone.  MARIN touched Minor Victim-1’s vagina and buttocks with his hands, digitally penetrated her, and anally penetrated her with his penis on multiple occasions, including while she slept.  In December 2024, MARIN used his cellphone to photograph Minor Victim-1’s genitals, and he subsequently transported that cellphone, and the images on it, out of the state of New York when he traveled abroad.

MARIN also repeatedly sexually assaulted a second minor victim, Minor Victim-2, a male member of the defendant’s family, over the course of approximately 10 years, beginning when Minor Victim-2 was approximately eight years old and continuing until Minor Victim-2 was approximately 18.  On at least one occasion, MARIN checked whether Minor Victim-2 was asleep, carried him to another room, and anally penetrated him with his penis.  When Minor Victim-2 attempted to disclose the abuse, MARIN told him that Child Protective Services could remove him from his home and that his mother could get in trouble.          

On June 13, 2025, MARIN was stopped for a customs inspection at John F. Kennedy International Airport upon his return from an international trip.  A search of his cellphone revealed sexually explicit images of Minor Victim-1.  A subsequent forensic examination of MARIN’s cellphone revealed at least 85 sexually explicit images and videos of minors, including images depicting prepubescent children as young as approximately five years old subjected to sadistic sexual acts.

*               *               *

In addition to the prison term, MARIN, 34, of the Bronx, New York, was sentenced to a 10-year term of supervised release.

Mr. McDonald praised the outstanding work of Homeland Security Investigations.

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

Deputy United States Attorney for the Southern District of New York, Sean S. Buckley, and Assistant Director in Charge of the New York Field Office of the FBI, James C. Barnacle, Jr., announced the filing of a civil forfeiture Complaint against approximately $61 million in cryptocurrency as the proceeds of black-market sales of sanctioned Iranian crude oil and petroleum products, intended to finance the Government of Iran and Iranian military components, including Iran’s Islamic Revolutionary Guard Corps (“IRGC”), a designated terrorist organization. 

“Today’s action demonstrates our determination to deprive the Government of Iran and its terrorist proxies of the illegal money they rely on to threaten the lives and safety of the citizens of the United States and elsewhere,” said Deputy U.S. Attorney Sean S. Buckley. “The Government of Iran relies on black-market sales of sanctioned crude oil to fund its military and foster terrorism in the Middle East and around the world, along with other malign efforts to develop a nuclear program and ballistic missiles capable of delivering nuclear payloads. As alleged in the complaint filed today, the Government of Iran used a network of cryptocurrency actors in China and elsewhere to launder more than $1.5 billion in illicit oil money intended to benefit the Iranian military and the terror-designated IRGC. Today we are seizing and seeking to forfeit more than $61 million of the Government of Iran’s money, which otherwise would have promoted hostile military action and terrorist attacks against the U.S. and our allies.”

“Today’s complaint demonstrates the FBI’s ability to follow the money, root out illicit schemes, and halt the stream of cryptocurrency to any government attempting to evade sanctions or committing terrorist activities,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “By cutting off funds raised by the black-market sale of crude oil, the Iranian military and terrorists are weakened. The FBI will not relent in its resolve to drain the funds from dangerous foreign actors.”

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

Two Chinese companies, Blessed Trust and Hexa Whale, used trading accounts at the UAE-based cryptocurrency exchange Binance to launder the proceeds of black-market sales of Iranian oil, funneling the illicit funds to the Government of Iran, its agents, and/or its proxies, where they were used to finance terrorist and other activities of the Iranian government. Though Blessed Trust represents itself to financial services and cryptocurrency services providers as a wealth management or virtual asset custodial services firm, in fact it received and transferred the proceeds of sales of Iranian crude oil and petroleum products and provided “on-ramp” services to convert fiat currency into cryptocurrency, including through the use of U.S.-based cryptocurrency issuers. Hexa Whale similarly holds itself out as a commodities brokering company, but in fact provided similar services as Blessed Trust, working in concert with Blessed Trust and its affiliates. Blessed Trust and Hexa Whale’s clients include companies in China’s petroleum and petroleum products sector. 

A series of interrelated unhosted cryptocurrency addresses, termed the “Entity A” addresses, have received and distributed more than approximately $1.5 billion of proceeds of the illicit sale of Iranian oil. Entity A has funneled Iranian oil money to IRGC-related money services businesses, IRGC-related cryptocurrency addresses, and an Iranian cryptocurrency exchange.  These transfers of Iranian oil proceeds were facilitated in large part by Blessed Trust, Hexa Whale, and individuals associated with those entities, through transactions and cryptocurrency addresses designed and executed to obfuscate the nature, source, and ownership of the funds involved.  Blessed Trust and Hexa Whale have also used the U.S. financial system to send or receive tens of millions of dollars as part of this scheme.

*                *                 *

Mr. Buckley praised the outstanding work of the FBI New York Counterintelligence and Espionage Division.  Mr. Buckley also thanked the Counterterrorism Section and the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division and the Money Laundering, Narcotics, and Forfeiture Section of the Department of Justice’s Criminal Division for their assistance and support for the investigation and today’s forfeiture action. 

This case is being handled by the Office’s Illicit Finance and Money Laundering Unit and National Security and International Narcotics Unit. Assistant U.S. Attorneys Christopher Brumwell, Jane Chong, David Markewitz, and Juliana N. Murray are in charge of the prosecution.

A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime.  These allegations are not proven until a court awards a judgment in favor of the United States.

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, Jamie McDonald, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of a Complaint charging WANJA OBERHOF, a founder and the former CEO of a wellness startup, the Healing Company, with defrauding an investor in his venture. OBERHOF was presented today before Magistrate Judge Ona T. Wang. 

“Investors are entitled to know that their money will be used for the purposes they were promised, not siphoned off to fund an executive’s personal expenses,” said U.S. Attorney Jamie McDonald.  “As alleged, Wanja Oberhof convinced an investor to provide millions of dollars for a specific business purpose, then diverted much of that money for his own benefit and doctored records to conceal what he had done.” 

“Oberhof allegedly defrauded at least one victim of over two million dollars and operated under the guise of running a wellness company,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “The FBI and its partners will continue to pursue investigations into dishonest individuals to prevent the furtherance of any such schemes.”

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

The Healing Company was a start-up venture that, among other things, sought to acquire interests in health and wellness companies. As described further below, WANJA OBERHOF, the defendant, was a co-founder and then CEO of The Healing Company and made misrepresentations to an investor in The Healing Company in order to obtain investor money, and subsequently misappropriated investor funds. In particular, OBERHOF tricked a businessman (“Victim-1”) into investing $2.5 million in an affiliate of The Healing Company based on the false promise that Victim-1’s funds would be used in substantial part to pay off debt that was encumbering a valuable asset held by The Healing Company. Rather than using the investor’s money as promised, OBERHOF misappropriated the vast majority through various money transfers for OBERHOF’s personal benefit. For example, OBERHOF transferred, or caused to be transferred: (a) approximately $25,000 of Victim-1’s money to pay for OBERHOF’s rent at his luxury penthouse apartment in Manhattan (which cost nearly $20,000 per month in rent); (b) over $57,000 of Victim-1’s money to repay a personal loan; and (c) ultimately, over $1.8 million of Victim-1’s money to a foreign bank account controlled by OBERHOF. In an attempt to hide the fraud from Victim-1, OBERHOF shared with Victim-1 and others doctored records relating to the use of Victim-1’s investment that, had OBERHOF not manipulated them, would have revealed OBERHOF’s misappropriation and the fraud on Victim-1.

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OBERHOF, a German national, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison. 

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

Mr. McDonald praised the outstanding work of the FBI. 

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Micah F. Fergenson 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 descriptions of the Complaint constitute only allegations, and every fact described should be treated as an allegation.

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that DUSTIN TOMPKINS, a registered sex offender, was charged with sexual exploitation of children by persuading, and attempting to persuade, them to create and send him sexually explicit images, receipt and distribution of child pornography, and committing offenses against children while being a registered sex offender.  TOMPKINS, who is currently detained on charges that he violated the terms of his supervised release, was presented today before U.S. Magistrate Judge Andrew E. Krause in White Plains federal court.

“The Southern District of New York will use every available tool to protect children,” said U.S. Attorney Jamie McDonald.  “Dustin Tompkins represents every parent’s greatest fear: an adult who allegedly used social media to gain access to children and exploit them for his own sexual gratification.  As alleged, while on supervision for a prior conviction for receipt and distribution of child pornography, Tompkins used social media to communicate with minors and persuade them to create and send him sexually explicit images.  Tompkins is also alleged to have amassed additional child pornography via social media applications.  If you have information to report, please immediately contact the FBI at 1-800-CALL-FBI (1-800-225-5324) or https://tips.fbi.gov.”

As alleged in the Complaint:(1)

On or about March 18, 2015, TOMPKINS pled guilty in the United States District Court for the Southern District of New York to receiving and distributing child pornography, in violation of Title 18, United States Code, Section 2252A(a)(2) and (b)(1), and was subsequently sentenced to 77 months in prison to be followed by a lifetime term of supervised release.

On or about January 30, 2026, officers from the U.S. Probation Office conducted a routine supervisory visit and discovered hidden in TOMPKINS’s bedroom an unsanctioned smartphone.  A subsequent court-authorized search of that smartphone found images comprising child pornography.  The search of the smartphone further revealed that, on or about January 24, 2026, TOMPKINS had created a messaging group using a social media application by which he received and viewed approximately 55 files containing child pornography. 

Finally, the smartphone search found that TOMPKINS, using a second social media application, had posed as an adult woman and exchanged messages with minors.  Specifically, on or about October 14, 2025, Tompkins directed a 13-year-old to engage in sexually explicit conduct, photograph the conduct, and transmit the photograph to him.  Then, on or about December 26, 2025, Tompkins directed, and attempted to direct, a 16‑year-old to engage in sexually explicit conduct, photograph and record the conduct, and transmit the photograph and video to him.   

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

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TOMPKINS, 38, of Mount Kisco, New York, is charged with two counts of sexual exploitation of a child, which each carry a minimum sentence of 25 years in prison and a maximum sentence of 50 years in prison.  TOMPKINS is also charged with one count of receipt and distribution of child pornography, which carries a minimum sentence of 15 years in prison and a maximum sentence of 40 years in prison.  TOMPKINS is finally charged with one count of committing the offenses charged in Counts One and Two while being a registered sex offender, which requires a sentence of 10 years in prison to be served consecutively to any sentence imposed pursuant to Counts One and Two. 

The statutory minimum and maximum 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. McDonald thanked Homeland Security Investigations of the Department of Homeland Security and the United States Probation Office. 

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Samantha Briggs and John Wynne are in charge of the prosecution.

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and the Inspector in Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), Ketty Larco-Ward, announced the unsealing of a Complaint charging VUK VUKOVIC, founder of the hedge fund Oraclum Capital LLC (“Oraclum”) and Chief Executive Officer and Chief Investment Officer of the Orca Bason Fund, L.P. (the “Orca Bason Fund” or the “Fund”), with securities fraud and wire fraud. VUKOVIC was presented yesterday before U.S. Magistrate Judge Jennifer E. Willis. 

“We will continue working with our committed law enforcement partners to hold accountable those who use deception to put investors’ money at risk,” said U.S. Attorney Jamie McDonald. “As alleged, Vuk Vukovic attracted investors to his fund and lulled them into keeping their money invested by reporting high rates of return that were not real. Investors deserve honest and accurate information when deciding where to put their hard-earned money.”

“Vuk Vukovic allegedly used interstate commerce to carry out a deceptive scheme involving the purchase and sale of securities,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “These allegations represent a serious breach of market integrity, and the FBI remains committed to enforcing securities laws to protect investors.” 

“When individuals allegedly mislead investors and defraud them, the consequences extend far beyond their immediate crimes—they threaten the economic stability and livelihoods of American citizens,” said USPIS Inspector in Charge Ketty Larco-Ward. “While investing always carries inherent risk, a breach of trust adds an unacceptable layer of deception. Postal Inspectors remain steadfast in holding accountable anyone who violates protective laws and compromises that trust. We urge the public to recognize the red flags of fraud, resist high-pressure tactics, and carefully assess every investment opportunity before acting.”

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

Oraclum is a New York-based hedge fund that operates and manages the Orca Bason Fund.  The Orca Bason Fund purports to make investment decisions “using wisdom of crowds and a network analysis of social media bubbles to predict where markets will end up.”  Since at least 2024, however, VUKOVIC has engaged in a scheme to obtain investor money by misrepresenting the Orca Bason Fund’s returns to investors. VUKOVIC’s misrepresentations include: sending false monthly account statements to investors that show their investment in the Orca Bason Fund earning greater returns than it actually did; and sending falsified brokerage account statements to a potential investor reflecting a higher net asset value and greater returns than actually existed. 

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VUKOVIC, 38, of New York, New York, is charged with one count of securities fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison.

 The maximum 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. McDonald praised the outstanding work of the FBI and the USPIS. Mr. McDonald further thanked the U.S. Securities and Exchange Commission.  

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Maggie Lynaugh and Kyle Wirshba are in charge of the prosecution.

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

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today that ILIT RAZ, the founder and former Chief Executive Officer of Joonko Diversity, Inc. (“Joonko”), pled guilty to securities fraud for her role in a scheme to defraud investors and mislead them about core aspects of the company she founded, including the identity and quantity of Joonko’s customers and Joonko’s revenue. The case has been assigned to U.S. District Judge Alvin K. Hellerstein. 

“Fraud in the startup space hurts investors and makes it more difficult for other enterprising businesses to raise money,” said U.S. Attorney Jamie McDonald. “Ilit Raz lied to investors about key aspects of her startup company, Joonko Diversity, Inc., and fabricated documents to support those lies, to obtain $27 million in investments. Her now-bankrupt company left victim investors with millions of dollars in losses.”

“The guilty plea makes clear that defrauding investors and misrepresenting essential facts about a company will not be tolerated,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “By admitting to her role in the scheme, Ilit Raz has acknowledged the seriousness of her actions and the harm caused to investors. Victims deserve justice, and the FBI will continue to work to ensure they receive it.” 

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

Joonko was a company that purported to offer an artificial intelligence-based product designed to help prospective employers identify and hire job candidates from diverse backgrounds. To induce prospective and existing Joonko investors to invest approximately $27 million in funding rounds in 2021 and 2022, RAZ made false claims regarding central aspects of Joonko’s business, including falsely representing how many customers Joonko had at the time, and falsely representing the identity of those customers. For example, RAZ falsely represented that Joonko’s customers included some of the world’s largest companies, including a credit card company, sports apparel brand, online travel company, and luxury fashion brand. In truth and in fact, and as RAZ knew, these companies were never Joonko customers. In addition to overstating the number of customers that Joonko had and the identity of those customers, RAZ also made false representations about Joonko’s actual and anticipated revenues.

After RAZ made false and misleading statements regarding Joonko’s customers and revenue, several investors who received those statements invested in a series of funding rounds with Joonko. Specifically, on or about June 1, 2021, several investors, including venture capital firms, invested a total of approximately $10 million in a Series A round with Joonko. On or about June 2, 2022, several investors, including venture capital firms, invested a total of approximately $17 million in a Series B round with Joonko.

In or about 2023, a Joonko investor (“Investor-1”) became suspicious about Joonko’s performance and requested certain information from Joonko, including bank statements. In response, on or about April 3, 2023, RAZ emailed Investor-1 a purported Joonko bank statement, which depicted that the company had an average balance of over $5,000,000. In truth and in fact, and as RAZ well knew, the bank records that RAZ emailed to Investor-1 were forged, and the actual bank records showed that Joonko’s true account balance was millions of dollars lower. Less than a week later, on or about April 8, 2023, RAZ emailed Investor-1 a set of purported purchase orders for Joonko customers. RAZ knew that many of the purchase orders she emailed to Investor-1 were fictitious, contained forged signatures, and were executed on behalf of purported customers that had no business relationship with Joonko.

*                *                *

RAZ, 40, an Israeli citizen, pled guilty to securities fraud, which carries a maximum sentence of 20 years in prison.

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

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

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

United States Attorney for the Southern District of New York, Jamie McDonald, announced that JORDAN TROUGHT was sentenced by U.S. District Judge Vincent Briccetti to eight years in prison for his role as a high-ranking member of an international fraud ring that stole more than $9 million from more than 200 elderly victims in the United States via sweepstakes scams.  TROUGHT was arrested in Jamaica on August 28, 2025, and subsequently extradited to the United States on October 22, 2025. In June 2026, he pled guilty before U.S. Magistrate Judge Judith C. McCarthy to conspiracy to commit wire fraud, mail fraud, and bank fraud. 

“This sentence reflects the seriousness of schemes that deliberately target elderly victims and strip them of their financial security,” said U.S. Attorney Jamie McDonald.  “Jordan Trought defrauded hundreds of elderly victims out of millions of dollars, taking advantage of their age to rob them of their hard-earned life savings.  In doing so, he and his co-conspirators imposed devastating financial consequences on their victims.”

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

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

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

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In addition to the prison term, TROUGHT, 31, was sentenced to three years of supervised release and ordered to pay forfeiture of $6,166,227.00.

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

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

United States Attorney for the Southern District of New York, Jamie McDonald, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today an Indictment charging ARMANDO SOLIS BARRON, a/k/a “Solomon,” and DOMINIC AHIGA, a/k/a “Michael Grinnell,” a/k/a “Josh Weinstein,” with wire fraud and conspiracy to commit wire fraud for their scheme to defraud clients of their mortgage modification business of millions of dollars in fees. BARRON and AHIGA were previously arrested and presented in the Central District of California and are expected to be arraigned on the Indictment this afternoon before U.S. Magistrate Judge Andrew E. Krause.

“This Office is committed to rooting out fraud in all of its forms, and we will work tirelessly to prosecute frauds targeting vulnerable victims,” said U.S. Attorney Jamie McDonald. “Armando Solis Barron and Dominic Ahiga allegedly preyed upon financially struggling homeowners who got behind on their mortgages by charging them monthly fees and leading them to believe much of their past-due balances would be forgiven, causing a number of those customers’ homes to go into foreclosure.”

“Armando Solis Barron and Dominic Ahiga’s alleged fraud scheme involved taking money from people who sought assistance with their mortgages,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “This scheme hurt hundreds of vulnerable people financially. The FBI will continue to prioritize complex financial fraud investigations to protect the public from anyone who takes advantage of consumers.”

According to the Indictment:(1)

From at least in or about June 2018 through at least in or about September 2022, in the Southern District of New York and elsewhere, BARRON and AHIGA, together with others, defrauded clients of their mortgage modification business and the clients’ mortgage lenders. BARRON, AHIGA, and others operated their mortgage modification business under different names, including Green Equitable Solutions, d/b/a Academy Home Services; South West Consulting Enterprises, Inc. d/b/a Home Matters USA; Apex Consulting & Associates Inc., d/b/a Golden Home Services America; and Infocom Entertainment Ltd., d/b/a Atlantic Pacific Service (collectively, the “Company”). BARRON, AHIGA, and others solicited homeowners who were struggling to make monthly payments on their mortgages and promised to have the homeowners’ interest rates and monthly payments reduced in exchange for monthly fees. 

BARRON, AHIGA, and others induced the Company’s clients to accept their services and to continue to pay the monthly fees by lying about, among other matters, the amount of time that the mortgage modification process would take and the nature of the fees that the clients were paying for mortgage modification services. The defendants and others also directed clients to stop making monthly mortgage payments to their lenders and to pay the Company monthly fees instead. The conspirators falsely told clients that their lenders would forgive their arrearages and, in many instances, that part of their monthly payments to the Company would go to pay down the balances of their mortgage loans. BARRON, AHIGA, and others also defrauded the clients’ lenders by making material misrepresentations and by engaging in fraudulent practices to cause the lenders to modify the clients’ mortgages, including by creating and submitting fabricated bank statements so that the Company’s clients appeared to meet the lenders’ criteria for a modification. Clients of the mortgage modification business operated by BARRON, AHIGA, and others paid over approximately $15 million for mortgage modification services, and a number of those clients’ homes went into foreclosure.

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SOLIS BARRON, 63, of La Habra Heights, California, and AHIGA, 56, of Los Angeles, California, are both charged with wire fraud and conspiracy to commit wire fraud, each of which carries a maximum sentence of 20 years in prison.

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

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

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

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

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald announced today that NOSSON SKLAR, a/k/a “Nathan Sklar,” was sentenced to 38 months in prison for engaging in a scheme to defraud health benefit programs through the submission of more than $20 million in fraudulent claims.

“Today’s sentence reflects the seriousness of this crime and our Office’s commitment to safeguarding affordable health care from fraud for all New Yorkers,” said U.S. Attorney Jamie McDonald. “Nosson Sklar spent years bilking health care benefit programs of millions of dollars and will now spend serious time in prison for his conduct.”

According to the charging instruments, other public filings, and statements in public court proceedings: 

SKLAR was the owner and chief executive officer of a company that operated a series of physical rehabilitation facilities around New York City (the “Rehabilitation Company”).  Between at least January 2020 and in or about July 2024, SKLAR submitted or caused others to submit more than $20 million in claims for medical services to various health care benefit programs, asserting that those services were rendered by a physician who worked with the Rehabilitation Company (“Victim-1”). But that was false.  Victim-1 did not provide those services, did not work with the Rehabilitation Company during that time, and did not authorize SKLAR to submit bills in his name. 

In or about July 2024, Victim-1 spoke with SKLAR on at least two occasions about the fraudulent bills.  During those conversations, SKLAR admitted that he had committed “fraud” by billing under Victim-1’s name, and that he did it “because [of] the money.”

Between at least in or about January 2020 and in or about July 2024, SKLAR caused more than $20 million in claims to be submitted to three separate health benefit programs (the “Health Plans”), which listed Victim-1 as having been the rendering provider for the Rehabilitation Company.  Approximately $12.4 million of those claims were eventually paid by the Health Plans.

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In addition to the prison term, SKLAR, 56, of New York, New York, was sentenced to three years of supervised release and ordered to forfeit $12,440,000 and to pay Victim-1’s legal expenses.

Mr. McDonald praised the outstanding investigative work of the U.S. Department of Health and Human Services, Office of Inspector General and Federal Bureau of Investigation.

This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jorja N. Knauer and David A. Markewitz are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jamie McDonald, announced that JULIUS CSURGO was sentenced to 27 months in prison for manipulating 19 different “penny stocks” in a pump-and-dump scheme designed to fraudulently inflate the value of CSURGO’s own shares in those companies. CSURGO pled guilty on May 27, 2026, before U.S. District Judge Ronnie Abrams, who imposed the sentence on September 4, 2026.

“This sentencing reflects a clear and unambiguous message: those who manipulate our markets and defraud investors will not escape justice,” said U.S. Attorney Jamie McDonald. “Julius Csurgo manipulated U.S. financial markets, exploited shell companies, and engaged in deceitful promotions to enrich himself at the expense of unsuspecting investors. We will continue to work with our law enforcement partners to ensure our markets remain fair, transparent, and trustworthy.” 

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

CSURGO, a Canadian-Hungarian citizen, orchestrated multiple “pump-and-dump” schemes along with his -co-conspirators. In his guilty plea, CSURGO admitted to securities fraud involving nineteen issuers. His sophisticated scheme involved gaining controlling interest of unrestricted stock, then concealing ownership by distributing shares among nominee entities through a Swiss corporation called Blacklight, S.A. While maintaining behind-the-scenes control over the shares and significant influence over company management, CSURGO and his co-conspirators funded promotional campaigns without disclosing their controlling interest or intent to sell. They took deliberate steps to hide that nominee entities were funding these promotions. During or shortly after generating market interest, CSURGO sold large percentages of holdings and collected the proceeds through the elaborate network of nominee entities he controlled, which he also used to distribute proceeds to his co-conspirators.​​​​​​​​​​​​​​​​

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In addition to his prison term, CSURGO, 71, of Toronto, Canada, was sentenced to one year of supervised release and ordered to forfeit approximately $9,610,409.95.

Mr. McDonald praised the outstanding investigative work of the Federal Bureau of Investigation. He further thanked the Justice Department’s Office of International Affairs of the Department’s Criminal Division, as well as authorities in Canada. Mr. McDonald also thanked the Securities and Exchange Commission, which separately initiated civil proceedings against CSURGO. 

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

United States Attorney for the Southern District of New York, Jamie McDonald, and United States Marshal for the Southern District of New York, Ricky J. Patel, announced the extradition of husband and wife, SWAYNE BARKER and RICKI RICKALINE GIBBS, from Jamaica today on fraud and bail jumping charges, respectively.  BARKER faces charges of conspiracy, wire fraud, mail fraud, money laundering, and receiving stolen money for his role in a multi-year scheme to defraud elderly victims across the United States, resulting in losses of over $1.7 million to more than 20 victims.  GIBBS was sentenced by U.S. District Judge Kenneth M. Karas in January 2026 to 51 months in prison for conspiracy to commit mail and wire fraud in connection with this scheme.  Following sentencing, GIBBS fled to Jamaica and now faces additional charges for bail jumping.  BAKER and GIBBS arrived in the United States on August 27, 2026, and were presented before U.S. Magistrate Judge Andrew E. Krause.  Both cases are assigned to U.S. District Judge Kenneth M. Karas.

“Today’s extradition makes clear that fraudsters who exploit vulnerable victims will be held accountable and that those who would seek to escape the consequences of their crimes will be relentlessly pursued until they are brought to justice,” said U.S. Attorney Jamie McDonald.

“Attempting to escape a federal sentence or hide from charges across the ocean is a losing strategy,” said U.S. Marshal Ricky J. Patel.  “Ricki Rickaline Gibbs jumped bail and fled to Jamaica, but the USMS in the Southern District of New York and the USMS Jamaica Foreign Field Office, working hand-in-hand with local Jamaican law enforcement, tracked both Gibbs and Swayne Barker down.  Our message is clear: if you prey on vulnerable individuals there will be nowhere safe for you to hide.  We will find you and bring you back to answer for your crimes.”

According to the Superseding Indictment through which BARKER is charged and statements made in public filings and in public court proceedings:(1)

From at least in or about 2019 through at least in or about 2023, BARKER and GIBBS defrauded more than 20 victims of over $1.7 million by representing to victims that they had won prizes in a sweepstakes and needed to transfer money to pay taxes and fees to claim their purported prizes. In truth, the victims had not won any sweepstakes prizes, and BARKER, GIBBS, and others misappropriated these victims’ funds. 

Victims of this scheme typically received an unsolicited phone call or text from an individual using a common name—e.g., “Robert James,” “Robert Hill,” or “Mark Miller”—claiming they had won a life-changing amount of money and a luxury car but needed to pay taxes or fees to addresses and accounts specified by the caller before receiving the prize.  The caller then remained in contact with the victims and, after the victims made their initial payments as directed, informed the victims that additional payments were required to receive their purported winnings.  In particular, victims were instructed to send money by mailing checks, money orders, Vanilla Visa gift cards, and cash concealed in books, as well as by wire and Zelle transfer, to addresses and accounts identified by the caller.  After luring victims in with the sweepstakes lie, the perpetrators of this scheme also used romance scam tactics to induce victims to continue making payments.  Gibbs is a dual citizen of Jamaica and the United States, who participated in the scheme from both New York and Jamaica, alongside co-conspirators based in Jamaica, including BARKER, who is a citizen of Jamaica.

According to the Indictment charging GIBBS with failure to surrender for service of sentence and statements made in public filings and in public court proceedings: 

GIBBS was sentenced by the Honorable Kenneth M. Karas on January 7, 2026, and ordered to surrender on February 9, 2026, to the United States Marshal for the Southern District of New York, or to a designated facility.  GIBBS failed to surrender to the United States Marshal on that date and instead fled to Jamaica, where she was arrested in April 2026 pursuant to a U.S. provisional arrest warrant. 

*                *               *

BARKER is charged with conspiracy to commit wire fraud and mail fraud, wire fraud, mail fraud, and conspiracy to commit money laundering, each of which carries a maximum term of 20 years in prison, as well conspiracy to receive stolen money, which carries a maximum term of five years in prison.  GIBBS is charged with failure to surrender for service of sentence, which carries a maximum term of 10 years in prison.  In addition to this new charge, GIBBS has been extradited to serve her pending sentence of 51 months in prison to be followed by three years of supervised release.  GIBBS has also been ordered to pay forfeiture of $1,018,703, and restitution of $1,379,402.

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

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

The charges against BARKER in the Superseding Indictment and against GIBBS 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 Superseding Indictment against BARKER and the description of the Superseding Indictment against BARKER 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, Jamie McDonald, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the filing of an Indictment charging JIMMY ROSARIO with coercion and enticement of a 16-year-old victim (“Minor Victim-1”), coercion and enticement of a 12-year-old victim (“Minor Victim-2”), and sex trafficking of a 17-year-old victim (“Minor Victim-3”).  ROSARIO is detained and the case has been assigned to U.S. District Judge J. Paul Oetken. 

“This Office is dedicated to protecting our children and ridding our streets of sexual predators,” said U.S. Attorney Jamie McDonald.  “As alleged, Jimmy Rosario preyed on multiple minor victims using online social messaging platforms.  After meeting his victims online, Rosario allegedly lured these minors to meet in person by offering them alcohol, drugs, food, and cash, then engaged in unlawful sexual activity with them.”

“Jimmy Rosario allegedly preyed on vulnerable minors through sex trafficking and coercion, a series of acts that are completely indefensible,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI/NYPD Crimes Against Children and Human Trafficking Task Force work relentlessly to ensure individuals like Rosario are removed from our communities and are held accountable for their heinous crimes.”

According to the Indictment and other public filings, from at least July 2025 through June 2026, ROSARIO utilized his cellphone and the Internet, including social messaging platforms, to connect and communicate with minors, including Minor Victim-1, Minor Victim-2, and Minor Victim-3. ROSARIO used his cellphone and the Internet to arrange for in-person meet ups where he engaged in oral, vaginal, and anal sex with the minor victims.  Specifically, ROSARIO enticed Minor Victim-1 and Minor Victim-2 to engage in unlawful sexual activity and solicited Minor Victim-3 to engage in sexual acts in exchange for money and other forms of payment. 

This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

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

*                *                *

ROSARIO, 42, of the Bronx, New York, is charged with two counts of coercion and enticement of a minor, each of which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; and one count of sex trafficking of a minor, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.

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

Mr. McDonald thanked the FBI/New York City Police Department Crimes Against Children and Human Trafficking Task Force for its outstanding work in connection with this investigation.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Ariel Cohen is in charge of the prosecution, with the assistance of Paralegal Specialist Olivia Sebade. 

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

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that the United States has filed a Complaint against MICHAEL SHABSELS, SIMAD HOLDINGS LLC, DAMIS HOLDINGS LLC, and 26 related entities (the “Shabsels Companies” and, collectively, the “Defendants”), alleging that the Defendants concealed their interrelationship from the Small Business Administration (“SBA”) in order to improperly obtain PPP funds.  The lawsuit seeks damages and civil penalties under the False Claims Act as well as a recovery of government funds under the common law. 

“Congress enacted the Paycheck Protection Program during a national crisis to help small businesses,” said U.S. Attorney Jamie McDonald.  “As alleged, the defendants repeatedly lied to the SBA to exploit this program and fund their sprawling network of companies at taxpayer expense, thereby depleting the funds for small businesses that needed the assistance.  The civil process to recover taxpayer funds remains ongoing.”

The following allegations are based on the Complaint filed in White Plains federal court on August 24, 2026:

To promote the availability of PPP loans to the largest number of borrowers, the SBA limited businesses in a single corporate group to a maximum aggregate loan amount of $4 million for second-draw PPP loans (the “Corporate Group Rule”).  The Shabsels Companies were part of a large corporate group that was subject to the Corporate Group Rule’s cap of $4 million.  Indeed, the vast majority of the Shabsels Companies were directly majority-owned by a single company.  The Defendants, however, sought and obtained over $17 million in second-draw PPP loans for the Shabsels Companies, improperly obtaining over $13 million in PPP loans, all of which were forgiven, as follows:

Defendant 

Camp Name

Loan and Forgiveness Amount

ACHIM OPERATINGCO LLC

Camp Achim, New York

$79,527.00 

BAHS OPERATING INC CAMP

Camp Chen-A-Wanda, Pennsylvania

$1,072,529.00

BANNER OPERATINGCO LLC

Banner Day Camp, Illinois

$1,394,904.00

BELGRADE LAKES SUMMER CAMPS LLC

New England Tennis and Golf Camp, Maine

$167,415.00 

BLUESTAR OPERATINGCO, LLC

Blue Star Camps, North Carolina

$1,425,091.00 

CAMP MED-O-LARK, INC

Camp Med-O-Lark, Maine

$454,719.00 

CLUB GETAWAY OPERATINGCO, LLC

Club Getaway, Connecticut

$592,039.00 

COUNTRY ROADS OPERATINGCO, LLC 

Country Roads Day Camp, New Jersey

$1,134,437.50 

DAMIS HOLDINGS, LLC

(not a camp at all, but a holding company)

$179,730.00 

EAGLE'S LANDING DAY CAMP LLC

Eagle’s Landing, New Jersey

$591,804.00 

GREEN LANE OPERATINGCO, LLC

Camp Green Lane, Pennsylvania

$175,836.00 

IAFA OPERATING CO, LLC

Indian Acres and Forest Acres, Maine

$469,105.00 

KIWI OPERATINGCO, LLC

Kiwi Country Day Camp, New York

$768,410.00

LAVCO LLC

Camp Lavi, Pennsylvania

$689,132.00 

MAINE WEKEELA CO, LLC

Camp Wekeela, Maine

$424,343.00 

MALKA OPERATINGCO LLC

Camp Malka, New York

$163,628.00 

MEADOWBROOK OPERATINGCO, LLC

Meadowbrook Country Day Camp, New Jersey

$1,380,766.00

MESORAHCO, LLC

Camp Mesorah, New York

$469,829.00 

MOGENAVCO LLC

Camp Mogen Av, New York

$1,091,353.62

MOHAWKCAMPCO LLC

Mohawk Day Camp, New York

$2,000,000.00 

POLAND CAMPCO LLC 

Camp North Star, Maine

$224,350.00 

RDM CAMPS LLC 

Camp Lokanda, New York

$719,446.00 

SHAB OPERATING INC

Camp Echo, New York

$326,893.00 

STONY CREEK OPERATING CO, LLC

1000 Acres Ranch, New York

$142,015.00 

SUMMIT CAMP, LLC

Summit Camp, Pennsylvania

$613,833.50 

WAUKEELA OPERATINGCO LLC

Camp Waukeela, New Hampshire

$268,170.00 

WM CAMP LLC

Windsor Mountain Summer Camp, New Hampshire

$399,273.00 

SHABSELS signed numerous second-draw PPP applications on behalf of the Shabsels Companies.  On over 20 occasions, SHABSELS falsely answered “no” to the following question in PPP applications submitted on behalf of the Shabsels Companies: “[i]s the Applicant or any owner of the Applicant an owner of any other business, or have common management (including a management agreement) with any other business.”  In fact, SHABSELS and SIMAD HOLDINGS, LLC were owners of the applicants for PPP loans and also owners of various other businesses.

The Defendants have all filed for bankruptcy in the District of New Jersey.  In this action, the United States seeks to determine the extent of the Defendants’ liability and will then coordinate any recovery for the taxpayers in conjunction with the bankruptcy proceedings.

*                *                *

The Government intervened in a whistleblower lawsuit before U.S. District Judge Kenneth M. Karas that had previously been filed under seal pursuant to the False Claims Act, and which was unsealed on August 17, 2026. 

Mr. McDonald thanked the SBA for its assistance with the case.

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

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today charges against KAHEEM ARCHER, CALVIN BENT, CHRISTINE FERGUSON, LAMONT MARTIN, AJANI MCCHRISTON, and CHAD REED in connection with a multi-year scheme to steal rental cars worth millions of dollars using stolen credit cards and forged driver’s licenses.  Each of the six defendants is charged with conspiracy to receive, possess, and dispose of stolen vehicles; conspiracy to commit wire fraud; and aggravated identity theft.  All six defendants were arrested today and presented in Manhattan federal court before U.S. Magistrate Judge Robert W. Lehrburger.

“Identity theft has no place in our community, and it impacts and harms New Yorkers and others in many different ways,” said U.S. Attorney Jamie McDonald.  “As alleged, the six defendants charged today traveled up and down the East Coast, picking up rental cars using credit cards obtained with the identities of innocent victims to further a variety of schemes, including the use of rental cars to commit violent crimes in our community.  These charges not only bring that scheme to an end but also send a broader message that the women and men of this Office, in coordination with our law enforcement partners, will continue to investigate and pursue criminals who seek to use the identities of unwitting and innocent victims to enrich themselves and commit crimes.”

“The alleged rental car and identify theft scheme in this investigation resulted in the loss of millions of dollars from innocent victims,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Crimes involving stolen identities and large-scale financial loss undermine public trust and cause harm to those impacted.  In support of the Vice President's Fraud Task Force, FBI New York will continue to work diligently to protect the public from fraud in all its forms.  

“As alleged in the complaint, these six defendants used stolen credit cards and forged driver’s licenses to steal millions of dollars in stolen vehicles, some of which were later used in violent crimes,” said NYPD Commissioner Jessica S. Tisch.  “Today, we shut this criminal operation down and remind those who attempt to use our city as a playground for criminal activity that they will face consequences. Thank you to our NYPD investigators whose relentless work dismantled this scheme, and our partners at the U.S. Attorney’s Office for the Southern District of New York for ensuring that these individuals are held accountable. 

As alleged in the Complaint and other public filings:(1)

From at least September 2023 to the present, ARCHER, BENT, FERGUSON, MARTIN, MCCHRISTON, and REED stole rental cars across the Northeastern United States from multiple rental car companies by using stolen credit cards and fraudulent driver’s licenses bearing the defendants’ photographs but victims’ names.  For over three years, the defendants executed the charged scheme by reserving and picking up rental cars under stolen identities, charging the rentals to the victims’ credit cards, and then transporting the cars to the Bronx or Manhattan, New York, often on the same day.  Multiple defendants carried out these thefts in close succession at the same rental locations.  None of the cars were returned, and several were later recovered in connection with violent crimes or found operated by suspects of violent crimes. 

*                *                *

ARCHER, 29, of Brooklyn, New York; BENT, 24, of Brooklyn; FERGUSON, 27, of Brooklyn; MARTIN, 26, of Staten Island, New York; MCCHRISTON, 33, of Brooklyn; and REED, 27, of Brooklyn, are each charged with one count of conspiracy to receive, possess, and dispose of stolen vehicles, which carries a maximum sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two 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. McDonald praised the outstanding investigative work of the FBI and NYPD, including the FBI / NYPD New York Joint Major Theft Task Force.  Mr. McDonald also thanked the Northampton, Massachusetts Police Department; Verona, New Jersey Police Department; Collegeville, Pennsylvania Police Department; Newark, Delaware Police Department; Greenwich, Connecticut Police Department; Delaware State Police, New York State Police, and the U.S. Customs and Border Protection for their valuable assistance.

The case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Leslie B. Arffa and Matthew T. Souza are in charge of the prosecution.

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

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald, announced today the unsealing of an Indictment charging JESUS LUIS MORELL, a senior executive at HEICO Corporation (“HEICO”), with three counts of securities fraud stemming from multiple instances of insider trading based on misappropriated financial information belonging to his employer.  MORELL was presented today before U.S. District Judge Jared M. Strauss in the Southern District of Florida.  

“Luis Morell allegedly misappropriated confidential information obtained from his employer and used it for his personal benefit,” said U.S. Attorney Jamie McDonald.  “Protecting the integrity of our financial markets is a core priority of this Office, and we will continue to keep a watchful eye over anyone who seeks to undermine the integrity of those markets.”

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

MORELL was the President of two significant subsidiaries of HEICO and a member of the Board of Directors for a third subsidiary.  HEICO maintained policies prohibiting employees from trading in HEICO stock while in possession of material nonpublic information, which policies MORELL acknowledged he understood on an annual basis.  Notwithstanding MORELL’s certifications that he would abide by HEICO’s insider trading policies, on two separate occasions in 2022 and 2025, MORELL purchased Class A common stock of HEICO in advance of the public quarterly earnings release but after receiving material non-public information concerning HEICO’s actual or forecasted earnings for the quarter.  Following the public release of HEICO’s quarterly earnings information—which included financial data that was the same or very similar to the data MORELL received before purchasing HEICO stock—the price of HEICO’s Class A shares rose and MORELL quickly sold all of the shares he had purchased for a significant profit.  In total, MORELL made more than $1.8 million in illicit profits by trading HEICO stock based on material, nonpublic information he misappropriated from his employer.

*                *                *

MORELL, 64, of Fort Lauderdale, Florida, is charged with two counts of securities fraud, each of which carries a maximum sentence of 20 years in prison; and one count of securities fraud, which carries a maximum sentence of 25 years in prison.

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

Mr. McDonald thanked the FBI.  Mr. McDonald also thanked the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority. 

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

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

1. ^

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

The Justice Department announced today the unsealing of a nine-count Indictment charging Louis Trejo, also known as “Machete;” Kenneth Garner, also known as “KG;” Harold Stevenson, also known as “Bazz;” and Erihk Belis, also known as “Eddie” with racketeering, violence in aid of racketeering, firearms, fraud, narcotics, and money laundering offenses for their roles in a wide ranging racketeering conspiracy involving the fabrication of transportation data used to support over at least $12 million of fraudulent Medicaid claims.

The defendants, members of a Bronx-based racketeering organization known as the “War Room,” logged fake rides for Medicaid patients to and from methadone clinics in the Bronx, paid recurring kickbacks to Medicaid patients in cash and drugs, and laundered millions of dollars in fraud proceeds obtained from the scheme. To protect and expand their racketeering conspiracy, Trejo, Garner, and other members of the War Room also engaged in violence against their rivals, including a Jan. 12, 2024, armed home invasion robbery of the leader of a rival fraud ring in Teaneck, New Jersey. Trejo, Garner, and Belis were arrested this morning and are expected to be arraigned today before U.S. Magistrate Judge Robert W. Lehrburger in Manhattan federal court. Stevenson remains at large. The case is assigned to District Judge John G. Koeltl.

“Today’s allegations underscore the troubling connection between benefits fraud and violent criminal networks,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “As charged, the defendants are accused of targeting vulnerable patients, defrauding a critical healthcare program, and turning to violence to protect their fraudulent scheme. I commend the prosecutors and agents of the Southern District of New York for their dedicated work in bringing these serious allegations forward.”

“As alleged, members of the War Room perpetrated a massive fraud scheme that preyed upon the addiction of vulnerable Medicaid patients, defrauded a vital federal healthcare program, and caused over $12 million in losses to American taxpayers,” said U.S. Attorney Jamie McDonald for the Southern District of New York. “To protect and grow their scheme, War Room members allegedly peddled deadly drugs, committed an armed robbery against a rival fraud ring, and laundered their profits. Today’s arrests dismantled the War Room’s racketeering operation and demonstrate that we will relentlessly pursue those who defraud federal benefit programs and endanger our communities through drugs and violence.”

“These defendants are accused of masterminding a brazen scheme built on greed and exploitation, turning Medicaid-funded addiction treatment transportation into a multimillion-dollar criminal pipeline through fake ride data, GPS spoofing, kickbacks, narcotics, and money laundering,” said Acting Special Agent in Charge Pete Gizas of Homeland Security Investigations (HSI), New York Field Office. “Far from a victimless fraud, this alleged racketeering operation exploited vulnerable patients seeking treatment, stole from a taxpayer-funded healthcare program, and injected narcotics and violence into the criminal enterprise. When their profits were threatened, members of the ‘War Room’ allegedly escalated to armed violence, including with a home invasion during which victims were restrained, assaulted, cut, and held at gunpoint. As a co-leader of the Homeland Security Task Force, HSI New York will continue working relentlessly with our partners to expose violent fraud enterprises, disrupt their financial networks, and hold alleged perpetrators accountable.”

“The alleged scheme exploited individuals seeking addiction treatment and diverted millions in federal health care funds,” said Special Agent in Charge Naomi D. Gruchacz of the New York Regional Office of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “This investigation highlights our commitment to working with Homeland Security Investigations and other law enforcement partners to pursue fraudsters who undermine the Medicaid program and the needs of its enrollees.”

“Today’s arrests send a clear message: exploiting Medicaid for personal gain will not be tolerated,” said Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service (USPIS), New York Division. “These individuals allegedly stole millions from a program designed to protect some of our most vulnerable citizens, and in doing so, betrayed the trust of the public. Postal Inspectors will defend against all types of fraudsters, and I commend the hard work and partnership of our federal and state partners to ensure all are held fully accountable under the law.”

“These defendants allegedly engaged in a systematic fabrication of data and kickbacks to steal over $12 million at the expense of New Yorkers in need,” said New York State Comptroller Thomas P. DiNapoli. “Medicaid is a vital program, and my office will continue to work with law enforcement to hold people who try to defraud it accountable. I thank the United States Attorney and federal law enforcement for their work with my office to bring these defendants to justice.” 

As alleged in the Indictment, from at least in or about 2023 through at least in or about 2025, the defendants, led by Trejo and Garner, operated the War Room, a criminal enterprise responsible for generating fake ride data used to support millions of dollars in fraudulent reimbursement claims to Medicaid for methadone clinic transportation services. The defendants operated out of an office in Trejo’s residence they referred to as the “War Room,” and engaged in, among other things, criminal acts involving wire fraud, healthcare fraud, violations of the Anti-Kickback Statute, narcotics distribution, robbery, firearms use, and money laundering.

To obfuscate their criminal activity, the defendants operated the War Room under the guise of a legitimate charity they called the “Forward Foundation.” In reality, the Forward Foundation was a front for the criminal activities of the War Room. An organizational chart drawn on a white board located inside Trejo’s residence, depicted below, identified each defendant’s nominal role. Trejo, identified as “Lou,” is the “CEO.”  Garner, identified as “KG,” is the “COO.” Stevenson, identified as “Bazz,” is an “outreach member m[ana]g[e]r.”  Belis, identified as “Erihk,” is “Vice President.”

To generate fake ride data to support fraudulent Medicaid claims, the defendants recruited Medicaid-eligible patients from methadone clinics located in the Bronx and Manhattan to sign up for medical transportation rides that are reimbursable by Medicaid, but which were not actually provided to the patients. The defendants entered the patients’ names and information into cellphones equipped with a ride-tracking application meant to be used by drivers to log actual rides. Members of the War Room then used the cellphones to log rides for the patients without providing any actual transportation services. To cover up the fact that the ride data was fabricated, the defendants used a GPS “spoofing” application to falsify the GPS coordinates associated with the pickup and drop-off locations, to make the location data appear as if the rides had been provided. In exchange for the use of the Medicaid patients’ enrollment information, the defendants paid the patients, who were meant to be receiving taxpayer-funded addiction treatment, weekly kickbacks in cash and drugs, including fentanyl and heroin.

Using these methods, the War Room’s fraud scheme generated data for hundreds of fake rides per week, which were provided to various collusive New York-area transportation companies, which in turn submitted the fake data to Medicaid to justify the fraudulent claims. The defendants were compensated by the transportation companies for whom they generated fake ride data and then laundered the proceeds to conceal their source and nature. The War Room’s fake rides scheme generated millions of dollars in fraudulent Medicaid claims for the transportation companies. For example, from in or about 2023 through in or about 2025, three transportation companies that made direct payments to the War Room collectively submitted over $12 million in “unmatched” Medicaid claims — that is, claims for medical transportation services for which no medical provider submitted corresponding claims reflecting actual medical services provided.

Multiple fraud rings competed for the same patients at the same methadone clinics. To protect the War Room’s profits and expand their reach, Trejo and Garner directed other members of the War Room to commit a home invasion robbery against the leader of a rival Medicaid fraud ring (Victim-1) at Victim-1’s home in Teaneck, New Jersey, believing that Victim‑1 kept millions of dollars in cash fraud proceeds and drugs inside his home. On or about Jan. 12, 2024, at the direction of Trejo and Garner, members of the War Room committed the violent home robbery. Masked and armed with a gun, members and associates of the War Room entered Victim-1’s residence while others waited outside as lookouts. Inside, the robbers used zip ties to tie up the occupants of the residence, including Victim‑1, pistol-whipped one of the occupants, intentionally cut Victim-1’s hands, and held the victims at gunpoint for multiple hours. The robbery crew did not find the large stash of cash or drugs that Garner and Trejo expected but fled with approximately $25,000 in cash and other assorted items.

A chart identifying the names, ages, charges, and maximum penalties for the defendants, each of whom resides in the Bronx, is set forth below.

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

This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys William C. Kinder, Mostafa Khairy, and Patrick J. Gallagher for the Southern District of New York are in charge of the prosecution.

Louis Trejo (43)

Kenneth Garner (48)

Harold Stevenson (59)

Erihk Belis (50)

Louis Trejo (43)

Kenneth Garner (48)

Louis Trejo (43)

Kenneth Garner (48)

Mandatory minimum of seven years in prison

Maximum sentence of life in prison

Louis Trejo (43)

Kenneth Garner (48)

Harold Stevenson (59)

Erihk Belis (50)

Louis Trejo (43)

Kenneth Garner (48)

Harold Stevenson (59)

Erihk Belis (50)

Louis Trejo (43)

Kenneth Garner (48)

Harold Stevenson (59)

Erihk Belis (50)

Louis Trejo (43)

Kenneth Garner (48)

Harold Stevenson (59)

Erihk Belis (50)

Louis Trejo (43)

Kenneth Garner (48)

Louis Trejo (43)

Kenneth Garner (48)

Harold Stevenson (59)

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Attorney General of the Justice Department’s National Fraud Enforcement Division, Colin M. McDonald, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services Office of Inspector General (“HHS-OIG”), Naomi D. Gruchacz, Inspector in Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), Ketty Larco-Ward, and Comptroller for the Office of the New York State Comptroller, Thomas P. DiNapoli, announced today the unsealing of a nine-count Indictment charging LOUIS TREJO, a/k/a “Machete,” KENNETH GARNER, a/k/a “KG,” HAROLD STEVENSON, a/k/a “Bazz,” and ERIHK BELIS, a/k/a “Eddie,” with racketeering, violence in aid of racketeering, firearms, fraud, narcotics, and money laundering offenses for their roles in a wide ranging racketeering conspiracy involving the fabrication of transportation data used to support over at least $12 million of fraudulent Medicaid claims.  The defendants, members of a Bronx-based racketeering organization known as the “War Room,” logged fake rides for Medicaid patients to and from methadone clinics in the Bronx, paid recurring kickbacks to Medicaid patients in cash and drugs, and laundered millions of dollars in fraud proceeds obtained from the scheme.  To protect and expand their racketeering conspiracy, TREJO, GARNER, and other members of the War Room also engaged in violence against their rivals, including a January 12, 2024, armed home invasion robbery of the leader of a rival fraud ring in Teaneck, New Jersey.  TREJO, GARNER, AND BELIS were arrested this morning and are expected to be arraigned today before U.S. Magistrate Judge Robert W. Lehrburger in Manhattan federal court.  STEVENSON remains at large.  The case is assigned to District Judge John G. Koeltl.

“As alleged, members of the War Room perpetrated a massive fraud scheme that preyed upon the addiction of vulnerable Medicaid patients, defrauded a vital federal healthcare program, and caused over $12 million in losses to American taxpayers,” said U.S. Attorney Jamie McDonald.  “To protect and grow their scheme, War Room members allegedly peddled deadly drugs, committed an armed robbery against a rival fraud ring, and laundered their profits.  Today’s arrests dismantled the War Room’s racketeering operation and demonstrate that we will relentlessly pursue those who defraud federal benefit programs and endanger our communities through drugs and violence.”

“Today’s allegations underscore the troubling connection between benefits fraud and violent criminal networks,” said Assistant Attorney General Colin M. McDonald.  “As charged, the defendants are accused of targeting vulnerable patients, defrauding a critical healthcare program, and turning to violence to protect their fraudulent scheme.  I commend the prosecutors and agents of the Southern District of New York for their dedicated work in bringing these serious allegations forward.”

“These defendants are accused of masterminding a brazen scheme built on greed and exploitation, turning Medicaid-funded addiction treatment transportation into a multimillion-dollar criminal pipeline through fake ride data, GPS spoofing, kickbacks, narcotics, and money laundering,” said HSI Acting Special Agent in Charge Pete Gizas.  “Far from a victimless fraud, this alleged racketeering operation exploited vulnerable patients seeking treatment, stole from a taxpayer-funded healthcare program, and injected narcotics and violence into the criminal enterprise.  When their profits were threatened, members of the ‘War Room’ allegedly escalated to armed violence, including with a home invasion during which victims were restrained, assaulted, cut, and held at gunpoint.  As a co-leader of the Homeland Security Task Force, HSI New York will continue working relentlessly with our partners to expose violent fraud enterprises, disrupt their financial networks, and hold alleged perpetrators accountable.”

“The alleged scheme exploited individuals seeking addiction treatment and diverted millions in federal health care funds,” said HHS-OIG Special Agent in Charge Naomi D. Gruchacz.  “This investigation highlights our commitment to working with Homeland Security Investigations and other law enforcement partners to pursue fraudsters who undermine the Medicaid program and the needs of its enrollees.”

“Today’s arrests send a clear message: exploiting Medicaid for personal gain will not be tolerated,” said USPIS Inspector in Charge Ketty Larco-Ward.  “These individuals allegedly stole millions from a program designed to protect some of our most vulnerable citizens, and in doing so, betrayed the trust of the public.  Postal Inspectors will defend against all types of fraudsters, and I commend the hard work and partnership of our federal and state partners to ensure all are held fully accountable under the law.”

“These defendants allegedly engaged in a systematic fabrication of data and kickbacks to steal over $12 million at the expense of New Yorkers in need,” said New York State Comptroller Thomas P. DiNapoli.  “Medicaid is a vital program, and my office will continue to work with law enforcement to hold people who try to defraud it accountable.  I thank the United States Attorney and federal law enforcement for their work with my office to bring these defendants to justice.” 

As alleged in the Indictment:(1)

From at least in or about 2023 through at least in or about 2025, the defendants, led by TREJO and GARNER, operated the War Room, a criminal enterprise responsible for generating fake ride data used to support millions of dollars in fraudulent reimbursement claims to Medicaid for methadone clinic transportation services.  The defendants operated out of an office in TREJO’s residence they referred to as the “War Room,” and engaged in, among other things, criminal acts involving wire fraud, healthcare fraud, violations of the Anti-Kickback Statute, narcotics distribution, robbery, firearms use, and money laundering. 

To obfuscate their criminal activity, the defendants operated the War Room under the guise of a legitimate charity they called the “Forward Foundation.”  In reality, the Forward Foundation was a front for the criminal activities of the War Room.  An organizational chart drawn on a white board located inside TREJO’s residence, depicted below, identified each defendant’s nominal role.  TREJO, identified as “Lou,” is the “CEO.” GARNER, identified as “KG,” is the “COO.”  STEVENSON, identified as “Bazz,” is an “outreach member m[ana]g[e]r.”  BELIS, identified as “Erihk,” is “Vice President.” 

To generate fake ride data to support fraudulent Medicaid claims, the defendants recruited Medicaid-eligible patients from methadone clinics located in the Bronx and Manhattan to sign up for medical transportation rides that are reimbursable by Medicaid, but which were not actually provided to the patients.  The defendants entered the patients’ names and information into cellphones equipped with a ride-tracking application meant to be used by drivers to log actual rides. Members of the War Room then used the cellphones to log rides for the patients without providing any actual transportation services.  To cover up the fact that the ride data was fabricated, the defendants used a GPS “spoofing” application to falsify the GPS coordinates associated with the pickup and drop-off locations, to make the location data appear as if the rides had been provided.  In exchange for the use of the Medicaid patients’ enrollment information, the defendants paid the patients, who were meant to be receiving taxpayer-funded addiction treatment, weekly kickbacks in cash and drugs, including fentanyl and heroin. 

Using these methods, the War Room’s fraud scheme generated data for hundreds of fake rides per week, which were provided to various collusive New York-area transportation companies, which in turn submitted the fake data to Medicaid to justify the fraudulent claims.  The defendants were compensated by the transportation companies for whom they generated fake ride data and then laundered the proceeds to conceal their source and nature.  The War Room’s fake rides scheme generated millions of dollars in fraudulent Medicaid claims for the transportation companies.  For example, from in or about 2023 through in or about 2025, three transportation companies that made direct payments to the War Room collectively submitted over $12 million in “unmatched” Medicaid claims—that is, claims for medical transportation services for which no medical provider submitted corresponding claims reflecting actual medical services provided.

Multiple fraud rings competed for the same patients at the same methadone clinics.  To protect the War Room’s profits and expand their reach, TREJO and GARNER directed other members of the War Room to commit a home invasion robbery against the leader of a rival Medicaid fraud ring (“Victim-1”) at Victim-1’s home in Teaneck, New Jersey, believing that Victim‑1 kept millions of dollars in cash fraud proceeds and drugs inside his home.  On or about January 12, 2024, at the direction of TREJO and GARNER, members of the War Room committed the violent home robbery.  Masked and armed with a gun, members and associates of the War Room entered Victim-1’s residence while others waited outside as lookouts.  Inside, the robbers used zip ties to tie up the occupants of the residence, including Victim‑1, pistol-whipped one of the occupants, intentionally cut Victim-1’s hands, and held the victims at gunpoint for multiple hours.  The robbery crew did not find the large stash of cash or drugs that GARNER and TREJO expected but fled with approximately $25,000 in cash and other assorted items. 

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A chart identifying the names, ages, charges, and maximum penalties for the defendants, each of whom resides in the Bronx, is set forth below.  

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

Mr. McDonald praised the outstanding investigative work of Homeland Security Investigations, the Office of the Inspector General of the Department of Health and Human Services, the U.S. Postal Inspection Service, the New York City Police Department, the Office of the New York State Comptroller, and the Bergen County, New Jersey Prosecutor’s Office (“BCPO”), the BCPO Special Investigations Squad, the Teaneck, New Jersey Police Department, as well as the Special Agents and Task Force Officers assigned to the U.S. Attorney’s Office for the Southern District of New York.

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys William C. Kinder, Mostafa Khairy, and Patrick J. Gallagher 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.

LOUIS TREJO (43)

KENNETH GARNER (48)

HAROLD STEVENSON (59)

ERIHK BELIS (50)

LOUIS TREJO (43)

KENNETH GARNER (48)

LOUIS TREJO (43)

KENNETH GARNER (48)

Mandatory minimum of seven years in prison

Maximum sentence of life in prison

LOUIS TREJO (43)

KENNETH GARNER (48)

HAROLD STEVENSON (59)

ERIHK BELIS (50)

LOUIS TREJO (43)

KENNETH GARNER (48)

HAROLD STEVENSON (59)

ERIHK BELIS (50)

LOUIS TREJO (43)

KENNETH GARNER (48)

HAROLD STEVENSON (59)

ERIHK BELIS (50)

LOUIS TREJO (43)

KENNETH GARNER (48)

HAROLD STEVENSON (59)

ERIHK BELIS (50)

LOUIS TREJO (43)

KENNETH GARNER (48)

LOUIS TREJO (43)

KENNETH GARNER (48)

HAROLD STEVENSON (59)

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, Jamie McDonald, announced today that CHRISTINE HUNSICKER was sentenced to five years in prison for securities fraud.  HUNSICKER previously pled guilty to one count of securities fraud in connection with a scheme to defraud hundreds of investors in CaaStle, a retail-technology business before U.S. District Judge J. Paul Oetken, who imposed today’s sentence.

“Christine Hunsicker perpetrated a large-scale fraud at CaaStle, falsely promoting her fashion-tech startup as a billion-dollar success when it was a counterfeit,” said U.S. Attorney Jamie McDonald.  “Using forged documents and fabricated audits, Hunsicker stole $300 million from unwitting investors who believed her falsehoods.  Besides harming investors in private markets, fraud in the startup space stunts growth and dims innovation.  The women and men of this Office will work tirelessly to protect those investors and ensure integrity in those markets, so that innovation can thrive, and those who seek to undermine the integrity of those markets will face justice.”

According to the Indictment and other information in the public record:

Between 2019 and 2025, HUNSICKER, a well-known entrepreneur and businessperson in the fashion-tech industry, orchestrated a massive fraud scheme in which she duped investors into giving her nearly $300 million for CaaStle, a retail technology company she founded and led as CEO.  While promoting CaaStle as a rapidly growing business valued at more than $1.4 billion, HUNSICKER knew that CaaStle was in financial distress with dwindling cash and significant expenses.  To raise 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. 

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.  She later repaid that investor to prevent the public disclosure of her fraud and continued furnishing fake financials to investors.  In 2024, HUNSICKER also falsified the signatures of two prominent Board directors to make it appear that the Board had authorized the grant of stock options to another investor, raising more than $20 million for CaaStle. 

In October 2024, HUNSICKER provided yet another investor with a fake draft audit.  HUNSICKER tried to pay off that investor, but he refused.  In December 2024, the CaaStle Board removed HUNSICKER as Chair and prohibited her from soliciting investments.  Undeterred, HUNSICKER continued her fraudulent activities.  She raised, and attempted to raise, new capital for CaaStle and P180, a related business venture.  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.

*                *                *

In addition to the prison term, HUNSCIKER, 49, of Lafayette, New Jersey, was sentenced to three years of supervised release.  HUNSICKER was ordered to pay forfeiture and restitution to her victims, each in the amount of $283,291,940.

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

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

United States Attorney for the Southern District of New York, Jamie McDonald, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of an Indictment charging JESSE MITCHELL with securities fraud.  The charges arise from an alleged insider trading scheme in which MITCHELL traded on misappropriated material nonpublic information ahead of public earnings announcements by his then-employer, The Trade Desk (“TTD”) and, as a result, generated more than $338,000 in profits.  MITCHELL was arrested today and will be presented in the U.S. District Court for the Central District of California.  The case has been assigned to U.S. District Judge Jennifer H. Rearden. 

“Jesse Mitchell allegedly stole confidential information from his employer and made more than $300,000 in illegal trades,” said U.S. Attorney Jamie McDonald.  “Confidential information is not a personal profit opportunity, and today’s unsealing of the indictment makes that clear.  Importantly, insider trading not only harms investors and the companies from which the information was misappropriated, it undermines the public’s trust in our markets.  This Office will continue to combat insider trading in order to vindicate victims’ rights and ensure the integrity of our markets.”

“Jesse Mitchell’s alleged insider trading is fundamentally wrong,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “FBI New York's Financial Crimes Task Force is working every day to identify and investigate financial crimes, including insider trading.  In alignment with the Vice President’s Fraud Task Force, FBI New York will continue working diligently to protect the public from fraud in all its forms.”

According to the allegations in the Indictment:(1)

Around June 2024, MITCHELL began working at TTD, a publicly-traded multinational technology company, as a Senior Director in TTD’s financial planning and analysis team.  In that role, MITCHELL had access to TTD’s confidential financial information and results, including revenue and earnings results and other financial metrics, before they were publicly disclosed.  By virtue of his employment, MITCHELL owed a duty of trust and confidence to TTD and was prohibited from misusing or disclosing TTD’s confidential information for personal gain.  MITCHELL was also prohibited by company policy from trading in any security while in possession of material nonpublic information relating to that security; trading in TTD securities during quarterly “blackout” periods preceding earnings announcements; and trading TTD options, including put or call options.

In August 2024, TTD published financial results for the second quarter of 2024 that exceeded its previously disclosed revenue estimate.  Following the announcement, TTD’s stock price increased approximately 12%.  During a trading blackout period in advance of TTD’s earnings announcement, MITCHELL purchased TTD stock.  At the time, MITCHELL was aware of TTD’s nonpublic quarterly financial results.  After TTD’s public earnings announcement, MITCHELL sold the shares, netting approximately $19,696.11 in profits from his illegal trading.

In February 2025, TTD published financial results for the fourth quarter of 2024 that fell below its previously disclosed revenue estimate.  This marked the first time TTD had missed revenue expectations since going public in 2016.  Following the announcement, TTD’s stock price dropped approximately 30%.  During a trading blackout period in advance of TTD’s earnings announcement, MITCHELL purchased TTD put options.  At the time, MITCHELL was aware of TTD’s nonpublic quarterly financial results.  After TTD’s public earnings announcement MITCHELL sold all his TTD put options, realizing approximately $318,362.45 in profits from his illegal trading.

*                *                *

MITCHELL, 48, of Ventura, CA, is charged with one count of securities fraud under Title 15, which carries a maximum sentence of 20 years in prison; and one count of securities fraud under Title 18, which carries a maximum sentence of 25 years in prison.

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

Mr. McDonald thanked the FBI.  Mr. McDonald further thanked the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority.

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

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

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald, and Special Agent in Charge of the Miami Field Office of the Federal Bureau of Investigation (“FBI”), Brett Skiles, announced today the unsealing of an Indictment charging DAVID PIDGEON with securities fraud stemming from insider trading based on misappropriated financial information belonging to his employer.  PIDGEON was arrested today and will be presented in Boston, Massachusetts.  The case has been assigned to U.S. District Judge Jennifer H. Reardon.

“As alleged in the Indictment, less than one year ago, a senior official at a public company engaged in insider trading,” said U.S. Attorney Jamie McDonald.  “When corporate insiders misuse confidential information for personal gain, they undermine the integrity of our financial system.  Today’s charges—and in particular the speed with which we were able to bring them—reflect our commitment to holding accountable anyone who chooses to engage in this kind of misconduct.  We will continue to work closely with our partners at the FBI and the SEC to safeguard our markets and pursue those who violate the law.” 

“Today’s charges underscore a fundamental principle: when individuals exploit confidential corporate information for personal gain, they undermine the integrity of our financial markets,” said FBI Special Agent in Charge Brett Skiles.  “The FBI is committed to protecting investors, maintaining a free and fair market, and holding accountable anyone who attempts to profit through deception and unlawful insider trading.  We will continue to work closely with our partners to ensure that those who violate these principles are brought to justice.”

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

In or about October 2025, PIDGEON, then Senior Director of Operations at Treace Medical Concepts, Inc. (“TMCI”), obtained material nonpublic information about TMCI’s lower sales volume and difficulty meeting its financial projections.  Days before TMCI’s third quarter earnings announcement, PIDGEON sold shares of other issuers and used the proceeds to purchase short-term put options in TMCI stock.  PIDGEON’s trades occurred during a company-wide blackout period when TMCI employees were prohibited from trading in TMCI securities, and in violation of TMCI’s policies, which prohibited employees from trading in TMCI options at any time.  On November 6, 2025, following market close, TMCI announced its third quarter financial results, which included a net loss of $16.3 million and downwardly adjusted 2025 revenue projections.  The following day, TMCI’s stock price dropped approximately 28%. That same day, Pidgeon sold all of his TMCI options.

*                *                *

PIDGEON, 40, of Jacksonville, Florida, is charged with one count of securities fraud under Title 15 of the United States Code, which carries a maximum sentence of 20 years in prison, and one count of securities fraud under Title 18 of the United States Code, which carries a maximum sentence of 25 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 defendant will be determined by the judge.

Mr. McDonald thanked the FBI.  Mr. McDonald further thanked the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority.  

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

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

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today that ERIC BOOTHE was arrested and charged as the second participant in an August 29, 2025, gunpoint robbery of a gas station in Mount Vernon.  BOOTHE was presented today before Chief U.S. Magistrate Judge Judith C. McCarthy and ordered detained pending trial.

“Last summer, Mount Vernon residents’ morning routines came to a halt when two individuals robbed a gas station at gunpoint and fled, kicking off a manhunt across the region,” said U.S. Attorney Jamie McDonald.  “One of the men, Jamaire Robertson, allegedly shot at NYPD officers while in flight.  Robertson was quickly identified, arrested, and charged within hours, but Eric Boothe allegedly fled into the Bronx and tried to disappear, eventually relocating to rural Pennsylvania.  Thanks to the FBI and our White Plains prosecutors, Boothe’s getaway has ended, and he will now answer to our federal Complaint in court.”

“Eric Boothe spent months attempting to evade accountability following an alleged gas station robbery in August 2025,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Thanks to the relentless efforts of FBI investigators, and our Summer Heat 2.0 initiative, he was located, apprehended, and will now face consequences for his actions.  No matter how long someone runs, we remain committed to pursuing those who endanger our communities.”

According to the Complaint unsealed in White Plains federal court:(1) 

After spending much of the prior evening traveling in tandem through the Bronx and Mount Vernon, BOOTHE and Jamaire Robertson parked Robertson’s car near Robertson’s apartment in the Bronx at around 5:10 a.m. on August 29, 2025, donned masks, hoods, and gloves, and set off on foot together toward a gas station in nearby Mount Vernon.  At approximately 5:29 a.m., BOOTHE and Robertson, each brandishing a handgun, violently robbed the gas station attendant at gunpoint: 

Following the robbery, the two suspects ran south on foot and eventually separated.  Robertson fled down a residential street in Mount Vernon near its border with the Bronx, where he discharged his firearm at New York City Police Department officers attempting to approach him.  Robertson was arrested that afternoon, but BOOTHE fled deeper into the Bronx, ceased use of his phone, and altered his patterns of financial and social media activity, eventually relocating to the Poconos in Pennsylvania.  The FBI’s investigation led to a new phone used by BOOTHE, registered in the name of a third party, and to a pizzeria frequented by BOOTHE in the vicinity of Tobyhanna, Pennsylvania, near where BOOTHE was eventually arrested.

*                *                *

BOOTHE, 40, of the Bronx, New York, is charged with conspiracy to commit Hobbs Act robbery and Hobbs Act robbery, each of which carries a maximum sentence of 20 years in prison.  BOOTHE is also charged with possessing and brandishing a firearm during and in relation to a crime of violence.  Because BOOTHE was convicted in 2016 of the same firearms crime, he now faces a mandatory minimum sentence of 25 years in prison, which must be served consecutive to any other prison term imposed.  Federal robbery and firearms charges against Jamaire Robertson remain pending. 

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. McDonald praised the outstanding investigative work of the FBI’s Westchester Safe Streets Task Force, as well as the NYPD and the Mount Vernon Police Department.  Mr. McDonald also thanked the FBI’s Philadelphia Field Office and the U.S. Attorney’s Office for the Middle District of Pennsylvania for their assistance in apprehending the defendant.

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

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

1. ^

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

The Department of Justice announced today that Larry Montes was charged with two counts of committing hate crimes in connection with his race- and religious-based assaults of a congregant and a security guard during a Shabbat service at a synagogue in Manhattan on Aug. 14, as well as one count of destruction of religious property resulting in bodily injury. Montes is currently in state custody and will be transported to and presented in Manhattan federal court at a later date to face the federal charges filed in the Southern District of New York.

“These charges serve as notice that the Department of Justice will intervene to protect the public in the face of antisemitic and racially motivated attacks,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The Civil Rights Division stands ready to combat assaults against worshippers and houses of worship. Americans’ fundamental right to worship without fear of bias-motivated violence is sacrosanct and must be protected at all costs.”

“Today, the Southern District of New York filed federal charges against Larry Montes for his violent, hate‑motivated attack during Shabbat services at Central Synagogue on August 14, in which he disrupted worship, struck a congregant, damaged synagogue property, and spat on and headbutted a security guard,” said U.S. Attorney Jamie McDonald for the Southern District of New York. “An attack on a house of worship is an attack on the fundamental right to practice one’s faith safely, and our Office will work tirelessly to ensure the defendant is held fully accountable as we continue to protect all communities from hate‑driven violence.”

“Larry Montes’ targeted acts of violence on a congregant, security guard, and synagogue during a Shabbat service are deeply disturbing,” said Assistant Director in Charge James C. Barnacle Jr. of the FBI New York Field Office. “The FBI condemns any incident driven by bias or hate, and we commend the swift actions of the security personnel and first responders.  Hate crimes have no place in New York, and we remain steadfast in protecting every community.”

“As alleged in the complaint, Larry Montes brought violence to Jewish New Yorkers engaged in prayer when he disrupted Shabbat services at Central Synagogue in Manhattan,” said NYPD Commissioner Jessica S. Tisch. “I am grateful that an NYPD sergeant was there to take him into custody, and for the ongoing efforts of our Hate Crimes Task Force and our federal partners to hold Montes accountable for his alleged crimes.”

As alleged in the Complaint, on Aug. 14, at a Friday night Shabbat service attended by approximately 375 people at a synagogue in Manhattan, Montes stood up and began shouting and then physically struck and caused damage to two ceremonial silver candlesticks with gold accents. The head of security at the synagogue proceeded to attempt to remove Montes from the area where the service was taking place, during which Montes stated, in sum and substance, and among other things, “fuck you people” and “I don’t fuck with you people.” Montes also punched with a closed fist a woman (Victim-1) who was attending services at the synagogue and, later, while being handcuffed by security guards and law enforcement, looked at one of the security guards (Victim-2), who is a Black man, and stated, in sum and substance, “fuck you [n-word].” He then spat in Victim-2’s face and headbutted Victim-2 near Victim-2’s left eye socket. Montes also stated, in sum and substance, that he planned to return to the synagogue on a later date. 

During a recorded, Mirandized post-arrest interview, Montes stated, in substance and in part, “fuck the Jews.  . . . It’s racial” and “I will never affiliate with no filthy fucking synagogues, either here or in fucking Israel.” Montes also stated about his actions at the synagogue that “it’s all a racial thing” and that it was “all religious motivated.” 

Montes, 46, of the Bronx, New York, is charged with two counts of committing hate crimes, each of which carries a maximum penalty of 10 years in prison, and one count of damage to religious property resulting in bodily injury, which carries a maximum penalty of 20 years in prison.

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

The prosecution of this case is being handled by the Office’s Civil Rights and Human Trafficking Unit in the Criminal Division, with consultation from the Civil Rights Division of the Criminal Section. Assistant U.S. Attorney Meredith C. Foster for the Southern District of New York is in charge of the prosecution.

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

United States Attorney for the Southern District of New York, Jamie McDonald, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the filing of a Superseding Indictment charging MATTHEW SPATOLA with distribution of narcotics resulting in death in connection with the June 26, 2026, overdose death of a resident (“Victim-1”) of a Manhattan building providing transitional and emergency shelter to homeless individuals, as well as distribution and possession with intent to distribute crack cocaine, heroin, and fentanyl. SPATOLA is detained, awaiting trial before U.S. District Judge Ronnie Abrams.

“As alleged, Matthew Spatola provided lethal narcotics to a woman in the very building where she was living to escape addiction,” said U.S. Attorney Jamie McDonald.  “But even her death did not stop Spatola from allegedly continuing to deal drugs, exposing particularly vulnerable neighbors fighting for their own recovery to the same life-threatening poison that killed her. If you deal drugs inside a transitional facility, you are dealing death to the same people trying to fight it, and you will be held accountable.”

“As alleged in the complaint, Matthew Spatola callously preyed on individuals at a transitional housing facility in Manhattan,” said NYPD Commissioner Jessica S. Tisch.  “The defendant sold the drugs that resulted in one resident’s death and continued to distribute them even after her demise, caring more for money than human life.  This individual is now being held accountable and can no longer sell his poison on our streets.  I thank our investigators and the U.S. Attorney’s Office for the Southern District of New York for bringing dangerous drug peddlers to justice.”     

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

On June 26, 2026, SPATOLA sold narcotics to Victim-1 in the building—which provides transitional and emergency shelter—where they both lived, causing her death.

Surveillance video shows that, on or about June 26, 2026, SPATOLA and Victim-1 were seen together, and that at approximately 9:00 a.m., SPATOLA handed Victim-1 narcotics.  SPATOLA returned to Victim-1’s room again that afternoon, briefly entering and exiting twice before leaving.  A short time later, Victim-1 was found dead in her room.  A glassine envelope and pipes recovered on or near her body tested positive for cocaine.

Rather than stop dealing, SPATOLA continued to distribute narcotics to other residents of the building in the days following Victim-1’s death.  On July 14, 2026, law enforcement executed search warrants on SPATOLA’s residence and person and recovered a substantial quantity of narcotics and narcotics distribution paraphernalia, which tested positive for crack cocaine, heroin, and fentanyl. 

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SPATOLA, 37, of New York, New York, is charged with one count of distribution of narcotics resulting in death, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison, and one count of distribution and possession with intent to distribute narcotics, which carries a maximum sentence of 20 years in prison. 

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

Mr. McDonald praised the outstanding investigative work of the NYPD, the Digital Forensics Unit, and the Complex Analytics and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area, as well as the Special Agents and Task Force Officers assigned to the U.S. Attorney’s Office for the Southern District of New York. 

The case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorney Joe Zabel 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.

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that BRUCE SILVA, a/k/a “Brucie,” a leader of the Bronx gang “Dub City,” which was affiliated with the larger MacBallers street gang, was sentenced to 22 years in prison.  On February 24, 2026, SILVA pled guilty to racketeering conspiracy and multiple firearms offenses in connection with shootings, one of which left the victim paralyzed, before U.S. District Judge Paul G. Gardephe, who imposed today’s sentence.   

“For years, the members of the so-called ‘Dub City’ gang terrorized several Bronx neighborhoods in their claimed territory by repeatedly shooting at rivals and fellow gang members alike,” said U.S. Attorney Jamie McDonald.  “The significant sentences imposed in this case serve to hold the leaders and members of this violent street gang accountable for their gun violence and other criminal activity.  This Office will continue to work with our federal, state, and local partners to dismantle violent criminal organizations and protect the communities they prey upon through violence.”

According to the charging instruments, court filings, and statements made in court:

The “Dub City” gang was a criminal organization based in the Mt. Hope and Morris Heights sections of the Bronx, New York, whose members predominantly were also members of the larger MacBallers street gang.  A map of Dub City’s claimed territory is below:

From 2019 until the defendants were arrested in April 2023, the Dub City gang members sold drugs, committed robberies, committed financial fraud, used guns, and committed numerous acts of violence in furtherance of the Dub City gang, including shootings against members of rival gangs and against other Dub City gang members. The violence committed by the defendants included shootings where innocent bystanders were hit.   In one case, SILVA shot at an individual, causing permanent paralysis.  In another case, co-defendant BRUCE MELVIN shot at a rival gang member, hitting an innocent bystander in the leg.

In total, the defendants were collectively convicted for their roles in eight separate shootings on Bronx streets between summer 2019 and summer 2022.

The following photographs depict Dub City members and co-defendants SILVA, MELVIN, and ELIJAH POUGH firing their weapons at rival gang members and others on Bronx streets:

In imposing today’s sentence, Judge Gardephe said that Silva poses a “clear and present danger to the community.”

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

Mr. McDonald praised the outstanding investigative work of the New York City Police Department and Homeland Security Investigations, and also thanked the Bronx County District Attorney’s Office for its assistance. 

This case is being handled by the Office’s Violent Organizations and Crime Unit.  Assistant U.S. Attorneys Michael R. Herman, Jacob R. Fiddelman, and Matthew J. King are in charge of the prosecution. 

Defendant

Age

Conviction 

Sentence

Racketeering conspiracy

Two counts of use, possession, and brandishing of a firearms in connection with an attempted assault with a dangerous weapon in aid of racketeering

Possession of ammunition after a felony conviction

22 years in prison; 

3 years supervised release

Racketeering conspiracy

Two counts of use, possession, and brandishing of a firearms in connection with an attempted murder and assault with a dangerous weapon in aid of racketeering

240 months in prison; 

5 years supervised release

144 months

3 years supervised release

Racketeering conspiracy

Use, possession, and brandishing, of a firearm in connection with an attempted murder and assault with a dangerous weapon in aid of racketeering

120 months

5 years supervised release

Racketeering conspiracy

Use and possession of a firearm in connection with an attempted murder and assault with a dangerous weapon in aid of racketeering

120 months

5 years supervised release

60 months

3 years supervised release

51 months

3 years supervised release

36 months 

3 years supervised release

48 months (including 20 months spent in New York state custody)

3 years supervised release

36 months

3 years supervised release

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Attorney General for the U.S. Department of Justice’s Civil Rights Division, Harmeet K. Dhillon, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and the Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today that LARRY MONTES was charged with two counts of committing hate crimes in connection with his race- and religious-based assaults of a congregant and a security guard during a Shabbat service at a synagogue in Manhattan on August 14, 2026, as well as one count of destruction of religious property resulting in bodily injury.  MONTES is currently in state custody and will be transported to and presented in Manhattan federal court at a later date to face the federal charges filed in the Southern District of New York.

“Today, the Southern District of New York filed federal charges against Larry Montes for his violent, hate‑motivated attack during Shabbat services at Central Synagogue on August 14, in which he disrupted worship, struck a congregant, damaged synagogue property, and spat on and headbutted a security guard,” said U.S. Attorney Jamie McDonald.  “An attack on a house of worship is an attack on the fundamental right to practice one’s faith safely, and our Office will work tirelessly to ensure the defendant is held fully accountable as we continue to protect all communities from hate‑driven violence.”

“These charges serve as notice that the Department of Justice will intervene to protect the public in the face of antisemitic and racially motivated attacks,” said Assistant Attorney General Harmeet K. Dhillon.  “The Civil Rights Division stands ready to combat assaults against worshippers and houses of worship.  Americans’ fundamental right to worship without fear of bias-motivated violence is sacrosanct and must be protected at all costs.” 

“Larry Montes’ targeted acts of violence on a congregant, security guard, and synagogue during a Shabbat service are deeply disturbing,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI condemns any incident driven by bias or hate, and we commend the swift actions of the security personnel and first responders.  Hate crimes have no place in New York, and we remain steadfast in protecting every community.”

“As alleged in the complaint, Larry Montes brought violence to Jewish New Yorkers engaged in prayer when he disrupted Shabbat services at Central Synagogue in Manhattan,” said NYPD Commissioner Jessica S. Tisch.  “I am grateful that an NYPD sergeant was there to take him into custody, and for the ongoing efforts of our Hate Crimes Task Force and our federal partners to hold Montes accountable for his alleged crimes.”

As alleged in the Complaint:(1)

On August 14, 2026, at a Friday night Shabbat service attended by approximately 375 people at a synagogue in Manhattan, MONTES stood up and began shouting and then physically struck and caused damage to two ceremonial silver candlesticks with gold accents.  The head of security at the synagogue proceeded to attempt to remove MONTES from the area where the service was taking place, during which MONTES stated, in sum and substance, and among other things, “fuck you people” and “I don’t fuck with you people.”  MONTES also punched with a closed fist a woman (“Victim-1”) who was attending services at the synagogue and, later, while being handcuffed by security guards and law enforcement, looked at one of the security guards (“Victim-2”), who is a Black man, and stated, in sum and substance, “fuck you [n-word].”  He then spat in Victim-2’s face and headbutted Victim-2 near Victim-2’s left eye socket.  MONTES also stated, in sum and substance, that he planned to return to the synagogue on a later date. 

During a recorded, Mirandized post-arrest interview, MONTES stated, in substance and in part, “fuck the Jews.  . . . It’s racial” and “I will never affiliate with no filthy fucking synagogues, either here or in fucking Israel.” MONTES also stated about his actions at the synagogue that “it’s all a racial thing” and that it was “all religious motivated.” 

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MONTES, 46, of the Bronx, New York, is charged with two counts of committing hate crimes, each of which carries a maximum sentence of 10 years in prison, and one count of damage to religious property resulting in bodily injury, which carries a maximum sentence of 20 years in prison.

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

Mr. McDonald praised the outstanding investigative work of the FBI and the NYPD for their assistance.

The prosecution of this case is being handled by the Office’s Civil Rights and Human Trafficking Unit in the Criminal Division, with consultation from the Criminal Section of the Civil Rights Division.  Assistant U.S. Attorney Meredith C. Foster is in charge of the prosecution.

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

1. ^

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

A 14-count superseding (S2) indictment was unsealed today charging 17 members of the Mabna Institute, an Iran-based company that, since at least 2013, has conducted a coordinated campaign of cyber intrusions into computer systems for 144 U.S.-based universities, 178 foreign universities, at least 42 U.S.-based private sector companies, at least 11 foreign private sector companies, at least five U.S. federal and state government agencies, and at least two non-governmental organizations (NGOs). The Mabna Institute stole more than 31 terabytes of academic data and intellectual property from these universities, as well as the email accounts of employees at the private sector companies, government agencies, and NGOs. The defendants conducted many of these intrusions on behalf of the Islamic Republic of Iran’s Islamic Revolutionary Guard Corps (IRGC), one of several entities within the government of Iran responsible for gathering intelligence, as well as other Iranian government and university clients. Nine of the 17 defendants charged in the S2 indictment were previously charged in a 7-count indictment announced in March 2018. The case is assigned to U.S. District Judge Jesse M. Furman.

“The superseding indictment alleges that, at the behest of entities including the IRGC, these defendants hacked into universities and other research institutions worldwide, including the United States, stealing at least 31 terabytes of information and intellectual property of untold value,” said Assistant Attorney General for National Security John A. Eisenberg. “The National Security Division is committed to protecting the United States from such predators and will pursue those who perpetrate such crimes for as long as it takes to bring them to justice.”

“Today’s charges, which include eight additional defendants, reveal the broader network allegedly behind a sweeping, state-sponsored campaign to steal research and intellectual property from American universities, businesses, and government institutions,” said U.S. Attorney Jamie McDonald for the Southern District of New York. “More than eight years after making the original indictment public, these charges make clear that the passage of time will not deter us from identifying and pursuing those who target the United States from abroad. Cyber operations have become a central instrument of national power, and attacks on American and allied institutions carry direct consequences for our security and economic strength. This office and our partners will continue to protect American innovation and pursue accountability for the individuals behind these attacks.”

“These defendants allegedly built and profited from a sprawling hacking-for-hire operation that targeted the intellectual property of American and allied universities, companies, and government agencies for the benefit of the Iranian government,” said Assistant Director Brett Leatherman of the FBI’s Cyber Division. “Today’s charges make clear to cyber adversaries everywhere: the FBI’s memory is long, and time will not blunt our resolve to pursue justice. The FBI will continue working with law enforcement and private sector partners to identify malicious cyber actors, disrupt their operations, and impose real cost on them, wherever they operate.”

According to the allegations contained in the S2 indictment: 

Background on the Mabna Institute

Gholamreza Rafatnejad and Ehsan Mohammadi founded the Mabna Institute in approximately 2013 to assist Iranian universities and scientific and research organizations in stealing access to non-Iranian scientific resources. The Mabna Institute employed, contracted, and affiliated itself with hackers-for-hire and other contract personnel, including Abdollah Karima, also known as “Vahid Karima,” Mostafa Sadeghi, Seyed Ali Mirkarmi, Mohammed Reza Sabahi, Roozbeh Sabahi, Abuzar Gohari Moqadam, Sajjad Tahmasebi, Saeid Houshyar, Behzad Mesri, also known as “Skote Vahshat,” Manouchehr Hashemloo, Keyvan Fayaz, also known as “Achilles,” also known as “The Joker,” also known as “bc.monster,” Amir Barati, Saber Shahbazi Ballojeh, Arman Kahzadian, and Mojtaba Galekuhi, also known as “Mojtaba Ghaleh Koui,” to conduct cyber intrusions to steal academic data, intellectual property, email inboxes, and other proprietary data. The Mabna Institute contracted with both Iranian governmental and private entities to conduct hacking activities on their behalf and specifically conducted the university spearphishing campaign on behalf of the IRGC. The Mabna Institute is located at Tehran, Sheikh Bahaii Shomali, Koucheh Dawazdeh Metri Sevom, Plak 14, Vahed 2, Code Posti 1995873351.

Concurrent with the unsealing of the S2 indictment, the U.S. Department of State’s Rewards for Justice program (RFJ) is offering a reward of up to $10 million for information leading to the location of defendants Mesri, Galekuhi, Kahzadian, Fayaz, and Ballojeh. The RFJ program seeks information on any person who, while acting at the direction or under the control of a foreign government, engages in certain malicious cyber activities in violation of the Computer Fraud and Abuse Act.

University Hacking Campaign

The Mabna Institute, through the activities of the defendants, targeted more than 100,000 accounts of professors around the world. They successfully compromised approximately 8,000 professor email accounts across 144 U.S.-based universities, and 178 universities located in foreign countries, including Australia, Canada, China, Denmark, Finland, Germany, Ireland, Israel, Italy, Japan, Malaysia, Netherlands, Norway, Poland, Saudi Arabia, Singapore, South Korea, Spain, Sweden, Switzerland, Turkey and the United Kingdom. The campaign started in approximately 2013, continued through at least December 2017, and broadly targeted all types of academic data and intellectual property from the systems of compromised universities. Through the course of the conspiracy, U.S.-based universities spent more than approximately $3.4 billion to procure and access such data and intellectual property.

The members of the conspiracy used stolen account credentials to obtain unauthorized access to victim professor accounts, which they used to steal research, and other academic data and documents, including, among other things, academic journals, theses, dissertations, and electronic books. The defendants targeted data across all fields of research and academic disciplines, including science and technology, engineering, social sciences, medical, and other professional fields. The defendants stole at least approximately 31.5 terabytes of academic data and intellectual property, which they exfiltrated to servers outside the United States that were under the control of members of the conspiracy.

In addition to stealing academic data and login credentials for the benefit of the Government of Iran, the defendants also sold the stolen data through two websites, Megapaper.ir (Megapaper) and Gigapaper.ir (Gigapaper). Megapaper was operated by Falinoos Company, a company controlled by Abdollah Karima, and Gigapaper was also affiliated with Karima. Megapaper sold stolen academic resources to customers within Iran, including Iran-based public universities and institutions, and Gigapaper sold a service to customers within Iran whereby purchasing customers could use compromised university professor accounts to directly access the online library systems of particular U.S.-based and foreign universities.

Private Sector and Governmental and Non-Governmental Organization Hacking Campaigns

In addition to targeting and compromising universities, the defendants targeted and compromised and exfiltrated employee email accounts for at least five U.S. federal and state government agencies, at least 42 U.S. based private sector companies, at least approximately 11 foreign companies based in Germany, Italy, Switzerland, Sweden, and the United Kingdom, and various governmental and non-governmental organizations within the U.S., including the U.S. Department of Labor, the Federal Energy Regulatory Commission, the State of Hawaii, the State of Indiana, the United Nations, and the United Nations Children’s Fund.

Eight Additional Defendants Charged in the S2 Indictment

The S2 indictment charges eight additional defendants and describes continued efforts by the Mabna Institute to target American and international institutions. For example, the defendants targeted Home Box Office, Inc. (HBO), a media and entertainment company headquartered in New York, New York. Mesri was separately charged in United States v. Behzad Mesri, 17 Cr. 689 (AJN), with hacking into HBO’s computer systems, stealing proprietary data, and then attempting to extort HBO for approximately $6 million worth of Bitcoin, a form of digital currency. Houshyar, Hashemloo, Fayaz, Ballojeh, and Kahzadian were also directly involved in the hack of HBO’s systems along with Mesri. 

Galekuhi, Fayaz, and Ballojeh participated in the Mabana Institute’s efforts to hack into private sector companies and at least two governmental entities — including through password spray attacks, obtaining unauthorized access to victim systems, and exfiltrating data — causing victims to suffer an excess of $20 million in costs to investigate and remediate the intrusions. Barati moreover was involved in tracking the progress of the spearphishing campaigns, exchanging login credentials for compromised accounts with other co-conspirators, creating targeting lists, conducting computer network reconnaissance, and crafting phishing messages. 

Anyone with information on these malicious cyber actors, or associated individuals or entities, please contact Rewards for Justice via the Tor-based tips-reporting channel at: he5dybnt7sr6cm32xt77pazmtm65flqy6irivtflruqfc5ep7eiodiad.onion. More information about this RFJ reward offer is located on the Rewards for Justice website. 

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

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

The National Security Division praised the outstanding investigative work of the FBI, the assistance of the United Kingdom’s National Crime Agency (NCA), and thanked OFAC and the RFJ Program for their support. The Justice Department’s Office of International Affairs is providing critical assistance.

Assistant U.S. Attorneys Nicholas W. Chiuchiolo, Connie L. Dang, and Adam Sowlati for the Southern District of New York lead the prosecution, with assistance provided by Trial Attorney Jacques Singer-Emery and former Trial Attorney Matthew Chang of the National Security Division’s National Security Cyber Section. 

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Attorney General for National Security, John A. Eisenberg, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of a 14-count Superseding (“S2”) Indictment charging 17 members of the Mabna Institute, an Iran-based company that, since at least 2013, conducted a coordinated campaign of cyber intrusions into computer systems to 144 U.S.-based universities, 178 foreign universities, at least 42 U.S.-based private sector companies, at least 11 foreign private sector companies, at least five U.S. federal and state government agencies, and at least two non-governmental organizations (“NGOs”).  Through the defendants’ activities, the Mabna Institute stole more than 31 terabytes of academic data and intellectual property from universities, and the email accounts of employees at private sector companies, government agencies, and non-governmental organizations.  The defendants conducted many of these intrusions on behalf of the Islamic Republic of Iran’s (“Iran”) Islamic Revolutionary Guard Corps (“IRGC”), one of several entities within the government of Iran responsible for gathering intelligence, as well as other Iranian government and university clients.  Nine of the 17 defendants charged in the S2 Indictment were previously charged in a 7-count Indictment announced in March 2018.  The case is assigned to U.S. District Judge Jesse M. Furman.

“Today’s charges show that neither sophistication nor geographic boundaries will deter us from protecting the national security of our country from those who target the United States from abroad,” said U.S. Attorney Jamie McDonald.  “These charges, which include eight additional defendants, reveal the broader network allegedly behind a sweeping, state-sponsored campaign to steal research and intellectual property from American universities, businesses, and government institutions.  Cyber operations have become a central instrument of national power, and attacks on American and allied institutions carry direct consequences for our security and economic strength.  This Office and our partners will continue to protect American innovation and pursue accountability for the individuals behind these attacks.”

“The superseding indictment alleges that, at the behest of entities including the IRGC, these defendants hacked into universities and other research institutions worldwide, including the United States, stealing at least 31 terabytes of information and intellectual property of untold value,” said Assistant Attorney General for National Security John A. Eisenberg.  “The National Security Division is committed to protecting the United States from such predators and will pursue those who perpetrate such crimes for as long as it takes to bring them to justice.”

“Coordinated cyber intrusions like those allegedly carried out by the 17 members of the Mabna Institute represent a serious threat to our national security,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Their campaign stole vast amounts of intellectual property and sensitive information, reinforcing the FBI's commitment to confront this activity head-on.  Backed by the IRGC, this operation reflects a broader, organized effort to target U.S. institutions and global partners.  No matter where these actors operate or how they attempt to hide, the FBI will persist in its efforts to disrupt this criminal activity.” 

According to the allegations contained in the S2 Indictment:(1) 

Background on the Mabna Institute

GHOLAMREZA RAFATNEJAD and EHSAN MOHAMMADI founded the Mabna Institute in approximately 2013 to assist Iranian universities and scientific and research organizations in stealing access to non-Iranian scientific resources.  In furtherance of its mission, the Mabna Institute employed, contracted, and affiliated itself with hackers-for-hire and other contract personnel to conduct cyber intrusions to steal academic data, intellectual property, email inboxes and other proprietary data, including ABDOLLAH KARIMA, a/k/a “Vahid Karima,” MOSTAFA SADEGHI, SEYED ALI MIRKARIMI, MOHAMMED REZA SABAHI, ROOZBEH SABAHI, ABUZAR GOHARI MOQADAM, SAJJAD TAHMASEBI, SAEID HOUSHYAR, BEHZAD MESRI, a/k/a “Skote Vahshat,” MANOUCHEHR HASHEMLOO, KEYVAN FAYAZ, a/k/a “Achilles,” a/k/a “The Joker,” a/k/a “bc.monster,” AMIR BARATI, SABER SHAHBAZI BALLOJEH, ARMAN KAHZADIAN, and MOJTABA GALEKUHI, a/k/a “Mojtaba Ghaleh Koui.”  The Mabna Institute contracted with both Iranian governmental and private entities to conduct hacking activities on their behalf, and specifically conducted the university spearphishing campaign on behalf of the IRGC.  The Mabna Institute is located at Tehran, Sheikh Bahaii Shomali, Koucheh Dawazdeh Metri Sevom, Plak 14, Vahed 2, Code Posti 1995873351.

University Hacking Campaign

The Mabna Institute, through the activities of the defendants, targeted more than 100,000 accounts of professors around the world.  They successfully compromised approximately 8,000 professor email accounts across 144 U.S.-based universities, and 178 universities located in foreign countries, including Australia, Canada, China, Denmark, Finland, Germany, Ireland, Israel, Italy, Japan, Malaysia, Netherlands, Norway, Poland, Saudi Arabia, Singapore, South Korea, Spain, Sweden, Switzerland, Turkey and the United Kingdom.  The campaign started in approximately 2013, continued through at least December 2017, and broadly targeted all types of academic data and intellectual property from the systems of compromised universities.  Through the course of the conspiracy, U.S.-based universities spent more than approximately $3.4 billion to procure and access such data and intellectual property.

The members of the conspiracy used stolen account credentials to obtain unauthorized access to victim professor accounts, which they used to steal research, and other academic data and documents, including, among other things, academic journals, theses, dissertations, and electronic books.  The defendants targeted data across all fields of research and academic disciplines, including science and technology, engineering, social sciences, medical, and other professional fields.  The defendants stole at least approximately 31.5 terabytes of academic data and intellectual property, which they exfiltrated to servers outside the United States that were under the control of members of the conspiracy.

In addition to stealing academic data and login credentials for the benefit of the Government of Iran, the defendants also sold the stolen data through two websites, Megapaper.ir (Megapaper) and Gigapaper.ir (Gigapaper).  Megapaper was operated by Falinoos Company, a company controlled by ABDOLLAH KARIMA, a/k/a “Vahid Karima,” and Gigapaper was affiliated with KARIMA.  Megapaper sold stolen academic resources to customers within Iran, including Iran-based public universities and institutions, and Gigapaper sold a service to customers within Iran whereby purchasing customers could use compromised university professor accounts to directly access the online library systems of particular U.S.-based and foreign universities.

Private Sector and Governmental and Non-Governmental Organization Hacking Campaigns

In addition to targeting and compromising universities, the defendants targeted and compromised and exfiltrated employee email accounts for at least approximately at least five U.S. federal and state government agencies, at least 42 U.S. based private sector companies, at least approximately 11 foreign companies based in Germany, Italy, Switzerland, Sweden, and the United Kingdom, and various governmental and non-governmental organizations within the U.S., including the U.S. Department of Labor, the Federal Energy Regulatory Commission, the State of Hawaii, the State of Indiana, the United Nations, and the United Nations Children’s Fund.

Eight Additional Defendants Charged in the S2 Indictment

The S2 Indictment charges eight additional defendants and describes continued efforts by the Mabna Institute to target American and international institutions.  For example, the defendants targeted Home Box Office, Inc. (“HBO”), a media and entertainment company headquartered in New York, New York. MESRI was separately charged in United States v. Behzad Mesri, 17 Cr. 689 (AJN), with hacking into HBO’s computer systems, stealing proprietary data, and then attempting to extort HBO for approximately $6 million worth of Bitcoin, a form of digital currency. HOUSHYAR, HASHEMLOO, FAYAZ, BALLOJEH, and KAHZADIAN were also directly involved in the hack of HBO’s systems along with MESRI. 

In addition, GALEKUHI, FAYAZ, and BALLOJEH participated in the Mabana Institute’s efforts to hack into private sector companies and at least two governmental entities—including through password spray attacks, obtaining unauthorized access to victim systems, and exfiltrating data—causing victims to have suffered from an excess of $20 million in costs to investigate and remediate the intrusions.  BARATI moreover was involved in tracking the progress of the spearfishing campaigns, exchanging login credentials for compromised accounts with other co-conspirators, creating targeting lists, conducting computer network reconnaissance, and crafting spearfishing messages. 

Concurrent with the unsealing of the S2 Indictment, the U.S. Department of State’s Rewards for Justice program (“RFJ”) is offering a reward of up to $10 million for information leading to the location of defendants MESRI, GALEKUHI, KAHZADIAN, FAYAZ, and BALLOJEH.  The RFJ program seeks information on any person who, while acting at the direction or under the control of a foreign government, engages in certain malicious cyber activities in violation of the Computer Fraud and Abuse Act. 

Anyone with information on these malicious cyber actors, or associated individuals or entities, please contact Rewards for Justice via the Tor-based tips-reporting channel at: he5dybnt7sr6cm32xt77pazmtm65flqy6irivtflruqfc5ep7eiodiad.onion.  More information about this RFJ reward offer is located on the Rewards for Justice website. 

*                *                *

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

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

Mr. McDonald praised the outstanding investigative work of the FBI.  He also thanked the Department of Justice’s Office of International Affairs.  Mr. McDonald further thanked the RFJ Program for their support.  

Assistant U.S. Attorneys Nicholas W. Chiuchiolo, Connie L. Dang, and Adam Sowlati are in charge of the prosecution, with assistance provided by Trial Attorney Jacques Singer-Emery of the National Security Division’s National Security Cyber Section. 

The charges contained in the S2 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 therein should be treated as an allegation. 

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services Office of Inspector General (“HHS-OIG”), Naomi D. Gruchacz, announced that RODNEY GREER, a/k/a “Christian Marchand,” appeared for arraignment today in connection with a four-count Indictment charging GREER with a scheme to impersonate doctors to obtain unauthorized prescription medications on behalf of individuals who paid him.  GREER was arrested in Chicago on June 17, 2026.  This case is assigned to U.S. District Judge Arun Subramanian. 

“As alleged in the indictment, Rodney Greer impersonated and stole the identities of physicians and made false statements to pharmacies to obtain unauthorized prescription medications,” said U.S. Attorney Jamie McDonald.  “This alleged conduct put scores of individuals in danger by allowing them to access prescription medication without the evaluation or approval of a licensed physician.  The defendant now faces serious criminal charges for his alleged crimes.” 

“The misuse of a physician's personally identifiable information to fraudulently obtain GLP-1 medications is a serious crime,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Rodney Greer's alleged scheme not only compromises sensitive data, but also abuses systems designed to support legitimate patient care.  The FBI does not tolerate fraud in any form, and we will continue to investigate those who exploit the healthcare system and the providers.” 

“The defendant in this case allegedly orchestrated an extensive scheme that generated hundreds of thousands of dollars in prescription claims paid by federal health care programs—claims that should never have been authorized,” said HHS-OIG Special Agent in Charge Naomi D. Gruchacz.  “HHS‑OIG remains committed to working with our law enforcement partners to dismantle schemes that exploit federal health care programs and to hold accountable those who perpetrate such fraud.”

As alleged in the Indictment:(1)

Beginning in or about March 2023, GREER engaged in a scheme to impersonate physicians and make false statements to pharmacies and other third-party pharmacy benefit managers located throughout the United States in order to fraudulently obtain unauthorized prescription medications for customers in exchange for payments.   

GREER acquired personal identifying information (“PII”) for individual physicians, including their names and their national provider identification number (“NPI”).  GREER maintained handwritten lists containing physicians’ PII for approximately 60 physicians located in approximately 19 states.   

Between on or about January 4, 2023, through on or about March 9, 2026, GREER called approximately 261 Pharmacies on approximately 3,329 occasions.  Throughout that period, GREER used physicians’ PII and license information to impersonate them.  GREER falsely claimed to be a health care provider; falsely identified himself as a physician; and provided other false information to receive GLP-1 and other prescription medications.

By fraudulently inducing the provision of unauthorized medications to individuals who had not obtained prior authorization or approval for these prescription medications, GREER facilitated the unauthorized redemption of hundreds of thousands of dollars in healthcare plan benefits to the individuals who paid GREER for his services.

*               *                *

GREER, 51, is charged with one count of wire 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; and two counts of aggravated identity theft, each of which carries a mandatory term 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 a judge.

Mr. McDonald praised the outstanding work of the FBI and HHS-OIG. 

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Brandon C. Thompson and Georgia V. Kostopoulos are in charge of the prosecution.

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

1. ^

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

United States Attorney for the Southern District of New York, Jamie McDonald, announced that KENNETH THOM, a/k/a “K$,” a/k/a “K Money,” was sentenced Tuesday, August 11, by U.S. District Judge Edgardo Ramos to two years in prison for investment adviser fraud. 

“Kenneth Thom sold his social media followers the image of a successful trader when, in reality, he was a suspended broker,” said U.S. Attorney Jamie McDonald.  “He took nearly $800,000 from investors who believed he would invest their money and instead spent it on luxury goods for himself.  That deception ends with this federal prison sentence.”

According to the Indictment and other information in the public record: 

In 2011, the Financial Industry Regulatory Authority (“FINRA”) suspended THOM’s broker registration after he failed to pay an arbitration award to an investor.  THOM then reinvented himself online as a successful Wall Street trader.  Using the monikers “K$” and “K Money,” THOM described himself as a financial “luminary” and “beacon of knowledge.”  Through various social media channels, including Facebook, Instagram, and Twitch, THOM built an online following, to whom he sold trading lessons and daily text message alerts containing his trade suggestions. 

Beginning in late 2023, THOM invited members of his Facebook group to participate in “shared accounts” that THOM would manage in exchange for half of the trading profits.  THOM eventually raised nearly $800,000 from approximately 66 clients.  Of this sum, THOM invested only approximately $350,000, diverting most of the remainder for his own personal use, including international travel, dining, and luxury goods.  Of the $350,000 that THOM invested, he lost approximately 73% between approximately March 2024 and March 2025.  Despite these massive losses, THOM regularly published updates in his Facebook group purporting to show dramatic gains in the shared accounts. 

In January 2025, THOM changed the name of the Facebook group to “AYBABTU”—an acronym for the Internet meme “all your base are belong to us”—and stopped responding to his clients.  At the time of his sentencing, THOM still maintained three luxury vehicles: a Maserati and two Porsches.   

*                *                *

In addition to the prison term, THOM, 42, of Belleville, New Jersey, was sentenced to two years of supervised release.  THOM was also ordered to pay forfeiture and restitution to his victims, each in the amount of $724,756.09. 

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

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

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced that LUIGI NICHOLAS MANGIONE pled guilty today before U.S. District Judge Margaret M. Garnett in connection with the December 4, 2024, murder of UnitedHealthcare Chief Executive Officer Brian Thompson in Midtown Manhattan.  MANGIONE is scheduled to be sentenced on December 18, 2026. 

“Today, Luigi Mangione admitted to stalking and murdering Brian Thompson on a Manhattan street in broad daylight,” said U.S. Attorney Jamie McDonald.  “No grievance, political belief, or ideological cause can justify murder.  With today’s guilty plea, Mangione is being held accountable for a heinous crime that claimed an innocent life and drew national attention.  I commend the FBI, the NYPD, our law enforcement partners, and the dedicated prosecutors of this Office for their tireless work in securing this result.”

“Violence driven by such hostility toward opportunity and progress stands in sharp contrast to the values many Americans hold dear,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Rest assured, the FBI and our partners never stopped working to bring a killer to justice.  While a plea has been entered in this case, we know the crime has not been erased.  While nothing can ease the family's grief, we hope this brings them one step closer to closure.”

“Luigi Mangione carried out a ruthless act of violence that shocked this city, and today’s guilty plea is an important moment of accountability for this heinous crime,” said NYPD Commissioner Jessica S. Tisch.  “This case demonstrated the extraordinary work of NYPD detectives, who relentlessly pursued every lead, pairing sophisticated technology with painstaking, old-fashioned police work to identify the suspect and build the case that brought us to this day.  I want to thank all the members of the NYPD who worked tirelessly on this case, and the U.S. Attorney’s Office and the FBI for their partnership.  And to those who idolize Mangione—violence is not a cause, murder is not a message, and a killer is not a hero.”

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

In the months leading up to December 4, 2024, MANGIONE developed and executed a plan to kill Brian Thompson.  MANGIONE targeted Thompson because of his role as Chief Executive Officer of UnitedHealthcare.  He traveled from outside New York to New York City specifically to carry out the attack.  After arriving in the city more than a week before the murder, MANGIONE conducted surveillance on locations Thompson frequented, including the area surrounding the hotel where Thompson was staying and the venue hosting UnitedHealthcare’s investor conference. 

On the morning of December 4, 2024, MANGIONE positioned himself near the conference venue in Midtown Manhattan and waited for Thompson to arrive.  At approximately 6:45 a.m., MANGIONE approached Thompson from behind and shot him multiple times, causing Thompson’s death.  MANGIONE then fled the scene.

Five days later, on December 9, 2024, law enforcement officers arrested MANGIONE in Altoona, Pennsylvania.  At the time of his arrest, MANGIONE possessed a false driver’s license that he had previously used while in New York City.  Law enforcement also recovered a firearm and other evidence linking him to the murder.

*                *                *

MANGIONE, 28, of Maryland, pled guilty to one count of interstate stalking resulting in death, which carries a maximum potential sentence of life in prison, and one count of cyberstalking through use of interstate facilities resulting in death, which carries a maximum potential sentence of life in prison.

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

Mr. McDonald praised the outstanding investigative work of the FBI’s Violent Crime Task Force, the NYPD, the Altoona Police Department in Altoona, Pennsylvania, and the Special Agents of the U.S. Attorney’s Office.

The case is being handled by the Office’s Violent Organizations and Crime Unit.  Assistant U.S. Attorneys Dominic A. Gentile, Jun Xiang, Alexandra Messiter, and Thomas John Wright are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jamie McDonald, and Administrator of the U.S. Drug Enforcement Administration (“DEA”), Terrance C. Cole, announced today the unsealing of a Complaint and Indictment charging Gilbert Bell Fernandez, a/k/a “Macho Coca,” with conspiring to import cocaine into the United States.  BELL FERNANDEZ was extradited from Costa Rica to the United States on the charges contained in the Indictment on August 13, 2026.  BELL FERNANDEZ was presented today before U.S. Magistrate Judge Valerie Figueredo and ordered detained pending trial.  The case has been assigned to U.S. District Judge Dale E. Ho. 

“Our Office will not stop in our efforts to disrupt international drug operations like this one,” said U.S. Attorney Jamie McDonald.   “For years, Gilbert Bell Fernandez allegedly sourced ton-quantities of cocaine from Colombia and transported this cocaine through Costa Rica for ultimate distribution in the United States and elsewhere.  Bell Fernandez’s drug organization has lost its leader.  Now, one of Costa Rica’s most notorious drug kingpins will face justice in an American courtroom for the harm he caused and sought to cause to this country.  That is because of the dedicated efforts of our prosecutors and the Drug Enforcement Administration.”

“The extradition of Gilbert Bell Fernandez to the United States demonstrates DEA’s global reach and our commitment to holding drug traffickers accountable,” said DEA Administrator Terrance C. Cole.  “Known as ‘Macho Coca,’ Bell Fernandez allegedly built a vast criminal network to move massive quantities of cocaine through Costa Rica for distribution in American communities, including New York City.  DEA and our law enforcement partners will continue to pursue those who traffic poison into our country.  We will not stop working to save American lives and we will not allow borders to shield criminals from justice.”

According to the charging documents and other public statements and records:(1)

Until his arrest, BELL FERNANDEZ was a major international narcotics trafficker and one of the most prolific cocaine traffickers in Costa Rica, which he helped develop into a major narcotics transshipment hub. BELL FERNANDEZ, who also owned and operated commercial fishing businesses in Costa Rica, controlled the distribution of ton-quantities of cocaine imported into and transiting through the Port of Limón, a seaport in the Limón Province of Costa Rica that has served as a major transshipment point for U.S.-bound cocaine. 

In or about March 2022, members of BELL FERNANDEZ’s drug organization began discussions with a DEA confidential source (“CS-1”) about the purchase of large shipments of cocaine for CS-1’s purported customers in New York and elsewhere.  During these initial conversations, BELL FERNANDEZ’s co-conspirators confirmed that BELL FERNANDEZ was the leader of the organization and could facilitate ton-quantity shipments of cocaine.   

In the months that followed, CS-1 spoke directly with BELL FERNANDEZ on multiple occasions, in person and telephonically, to negotiate the terms of their cocaine distribution partnership.  During those conversations, BELL FERNANDEZ confirmed, among other things, that he had the means to export ton-quantities of cocaine out of Costa Rica and that his organization could arrange for CS-1 to purchase a sample of the cocaine in advance of potential larger deals in the future. 

After negotiating the purchase of this sample, in or around February 2023, with BELL FERNANDEZ’s approval, a member of BELL FERNANDEZ’s organization provided CS-1 with a sample of one kilogram of cocaine in Costa Rica in exchange for approximately $6,000 in United States currency.  Following CS-1’s acquisition of the one-kilogram sample, CS-1 continued conversations with BELL FERNANDEZ and other members of BELL FERNANDEZ’s organization about the large-scale distribution partnership they had been negotiating. In early August 2023, CS-1 met again with BELL FERNANDEZ in Costa Rica to continue discussions about a potential cocaine deal.  During that meeting, BELL FERNANDEZ discussed providing CS-1 with approximately 700 kilograms of cocaine and eventually transporting that cocaine to New York City. 

In November 2023, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) sanctioned BELL FERNANDEZ.  In announcing its sanctions, OFAC described BELL FERNANDEZ as being “known not only for the volume of drugs he moves but the violence with which he operates,” noting that BELL FERNANDEZ “has played a significant role in Costa Rica’s recent transformation into a major narcotics transit hub.”  OFAC also noted that BELL FERNANDEZ was one of the “most prolific” and “most violent” traffickers in Limón.

*                *                *

BELL FERNANDEZ, 63, of Costa Rica, is charged with conspiring to import over five kilograms of cocaine into the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life 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. McDonald praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit. Mr. McDonald also thanked the DEA’s Costa Rica Country Office, the Office of International Affairs of the Department of Justice’s Criminal Division, and Costa Rica’s Organismo de Investigación Judicial for their assistance in securing the arrest and extradition of BELL FERNANDEZ. 

This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Katherine Cheng, Kaylan E. Lasky, and David J. Robles are in charge of the prosecution.

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

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Superintendent of the New York State Police, Steven G. James, announced that on August 11 and August 13, 2026, JAMIE AND NICHOLAS ORSINI, respectively, were each sentenced to life in prison by U.S. District Judge Philip M. Halpern for one count of carjacking resulting in death and one count of participating in a conspiracy to commit carjacking in connection with the murder of JAMIE ORSINI’s ex-husband, Steven Kraft.  The ORSINIs were convicted following a two-week trial in 2024 before Judge Halpern.

“Justice has now been served in this tragic case,” said U.S. Attorney Jamie McDonald.  “In 2020, Jamie and Nicholas Orisini orchestrated a sophisticated scheme to kill Jamie Orsini’s ex-husband, Steven Kraft, and cover up their crime.  Their actions took a life, devastated a family, and left behind years of unanswered questions.  Kraft’s body has never been found, and for years, his family has been forced to live with the unimaginable pain and uncertainty of not knowing what happened to their loved one.  While no sentence can undo the loss of a life or erase the suffering endured by Kraft’s family, these sentences bring the Kraft family a measure of finality and hold Jamie and Nicholas Orsini accountable for their horrific crimes.  Our prosecutors and law enforcement partners will not stop seeking justice for victims, their families, and our communities.”

“The actions taken by Jamie and Nicholas Orsini that resulted in the death of Steven Kraft are a tragic and senseless crime,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Our hearts remain with the victims and their families as they confront this profound loss.  The FBI is steadfast in its commitment to pursuing violent crime investigations and will continue working closely with the United States Attorney’s Office for the Southern District of New York.  This investigation was the result of the dedicated work of the FBI Hudson Valley Safe Streets Task Force, whose local and state law enforcement partners play an essential role in bringing violent offenders to justice and ensuring the safety of our communities.

“This week’s sentencings send a strong message that prison is the only future for those who take the lives of others,” said New York State Police Superintendent Steven G. James.  “We hope these sentencings bring a sense of closure that the defendants will never commit a heinous crime like this again.  I commend the dedication of our members, partners at the US Attorney’s Office, and law enforcement colleagues for the justice served in this case.”

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

In 2020, JAMIE and NICHOLAS ORSINI plotted and executed the murder of JAMIE ORSINI’s ex-husband and the father to two of her children, Steven Kraft, as well as a sophisticated cover-up of their crime.  The murder and cover-up involved, among other things, the use of burner phones, the movement of Kraft’s car to a different city, and the destruction and disposal of all physical evidence.  Before the murder, the ORSINIs purchased items—such as a 1,000-square-foot tarp and a full-body coverall—to allow them to commit the murder and dispose of evidence, repeatedly practiced “dry runs” for how they would move Kraft’s car, and purchased a “burner phone” to use without law enforcement being able to trace the phone to them.  On April 28, 2020, Kraft dropped his children off at the ORSINIs’ home in Beacon, New York.  The ORSINIs killed Kraft in their home, taking his car and one of his cellphones.  In order to make it look as if Kraft left their home in Beacon alive and was killed elsewhere, NICHOLAS ORSINI drove Kraft’s car into Newburgh, New York, leaving it in a high-crime neighborhood, got rid of Kraft’s cellphone, and used the burner phone to call a taxi to bring him back to Beacon, throwing the burner phone out before getting into the taxi, while JAMIE ORSINI sent text messages to and from NICHOLAS ORSINI’s phone—which he had left at home—to pretend that NICHOLAS ORSINI never left the house that night.

After the murder, the ORSINIs destroyed evidence of their crimes—including Kraft’s body—buying a new burner phone to use while repeatedly driving to and from upstate New York, as well as creating large homemade incinerators.  JAMIE ORSINI sent multiple text messages to make it look like she believed that Kraft was still alive, and, having dumped Kraft’s car in Newburgh, when speaking with the police, professed ignorance, while hinting that perhaps something might have happened to Kraft had he gone to Newburgh after leaving her home.

If you believe you have information related to the location of Steven Kraft’s body, please consider reporting using the following link: https://www.justice.gov/usao-sdny/report-crime.

*                *               *

JAMIE ORSINI, 38, and NICHOLAS ORSINI, 36, both of Amsterdam, New York, were sentenced to life in prison to be followed by five year of supervised release on count one (carjacking resulting in death, in violation of 18 U.S.C. § 2119(3)) to run concurrently with five years in prison to be followed by three years of supervised release on count two (conspiracy to commit carjacking, in violation of 18 U.S.C. § 371).

Mr. McDonald praised the outstanding work of the FBI and the New York State Police, which also supported the prosecution through trial.  He also thanked the Dutchess County District Attorney’s Office, the Ulster County District Attorney’s Office, the City of Beacon Police Department, the Town of Marlborough Police Department, and the City of Newburgh Police Department.

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Kaiya Arroyo, Michael D. Maimin, and Kathryn P. Wheelock are in charge of the prosecution, with the assistance of Paralegal Specialist Shannon Becker.

A two-count indictment was unsealed today charging 11 individuals with conspiring, over the course of more than a decade, to orchestrate more than 1,000 sham marriages to fraudulently obtain immigration status for foreign nationals, primarily citizens of the People’s Republic of China. Some individuals paid up to $100,000 per sham marriage, according to the indictment.

“This Department of Justice is rooting out fraud everywhere — including in our immigration system,” said Attorney General Todd Blanche. “The individuals who were arrested today allegedly orchestrated elaborate schemes to illegally obtain citizenship for foreign nationals through sham marriages. Schemes like this are a deliberate affront to the United States and our laws and will not be tolerated under the Trump Administration.”

“The defendants and their co-conspirators allegedly operated a nationwide and international, multimillion-dollar marriage fraud scheme, using participants to abuse United States immigration laws for their own profit,” said U.S. Attorney Jamie McDonald for the Southern District of New York. “Today’s arrests have dismantled a central component of one of the largest marriage fraud schemes charged in United States history.  As this prosecution shows, we and our law enforcement partners will relentlessly pursue those seeking to corrupt and exploit our nation’s lawful immigration system.”

“Anyone willing to lie, cheat or steal their way to legal immigration status is a direct threat to America's national security,” said Director Joseph B. Edlow of U.S. Citizenship and Immigration Services (USCIS). “U.S. Citizenship and Immigration Services is aggressively pursuing marriage fraud schemes and the criminal organizations and ringleaders who profit from them. USCIS will continue to expose fraud, defend the rule of law, and ensure immigration status is reserved for those who truly qualify.”

“As alleged, this decade-long scheme turned marriage fraud into an international business model arranging countless sham marriages and causing hundreds of fraudulent Green Card applications to be submitted to United States Citizenship and Immigration Services,” said Acting Executive Associate Director John Condon of Homeland Security Investigations (HSI). “Through the Homeland Security Task Force, HSI and our partners will continue to dismantle criminal networks that undermine the rule of law, exploit federal laws, and profit from fraud.”

The defendants were arrested this morning and are expected to be arraigned today. The defendants are:

• Amy Cheng, also known as “Amy Zhou,” 72, of Brooklyn, New York;
• Xiao Mei Chan, also known as “Carmen;” 64, of Queens, New York;
• Christine Lu, also known as “Lily,” 52, of Queens;
• Jing Yan Ye, also known as “Serene,” 43, of Staten Island, New York;
• Xiao Yan Chen, also known as “Anna,” 48, of Brooklyn;
• Gang Zheng, also known as “Michael” and “Mike,” 61, of Queens;
• Anthony Cheng, 47, of Staten Island;
• Michelle Duenas, 35, of Staten Island; 
• Angela Duenas, 26, of Staten Island; 
• Sigrid Cetino, 32, of Peekskill, New York; and 
• Erika Johnson, 43, of Ossining, New York.

According to the indictment, from at least 2016 through July 2026, the defendants operated a nationwide and international marriage fraud network that arranged sham marriages between foreign nationals — primarily citizens of the People’s Republic of China — and United States citizens. Although based principally in New York City, the network allegedly arranged sham marriages throughout the United States and overseas including in Connecticut, Massachusetts, Pennsylvania, Kentucky, Tennessee, Georgia, Florida, Vanuatu, and China. 

The network included facilitators who oversaw the scheme and identified foreign-national customers; recruiters who found willing United States citizens and helped ensure their continued participation; and assistants who prepared immigration paperwork and coordinated the submission of fraudulent lawful permanent residency (Green Card) applications to U.S. Citizenship and Immigration Services (USCIS). The scheme also relied on marriage officiants, attorneys, tax preparers, insurance providers, and other service providers.  

Foreign nationals paid facilitators as much as approximately $100,000 for a sham marriage and assistance obtaining lawful permanent resident status. Facilitators, in turn, allegedly paid participating U.S. citizens up to about $30,000 — generally in installments tied to milestones in the Green Card application process — and paid recruiters commissions of as much as approximately $5,000 for each citizen recruited. In total, the defendants and their co-conspirators recruited hundreds of U.S. citizens to enter into sham marriages.

The defendants executed the fraud by pairing foreign nationals with U.S. citizens. The individuals would often meet for the first time immediately before obtaining a marriage license, arranging sham wedding ceremonies, and staging photographs designed to make those marriages appear legitimate. Some examples are below, including a photograph of a sham marriage that took place in China:

After the ceremonies, scheme participants manufactured evidence to make the marriages appear genuine, including by staging additional photographs, opening joint financial and utility accounts, filing joint tax returns, and obtaining insurance policies. The defendants and their co-conspirators then prepared and submitted Green Card applications containing materially false statements and, when interviews with USCIS were required, coached the marriage participants on how to conceal the true nature of their relationships and provide false answers to immigration officers. 

The defendants caused at least hundreds of fraudulent Green Card applications and supporting documents to be submitted to USCIS. Based on the scale and duration of the scheme, the defendants’ network is believed to have collected tens of millions of dollars from foreign nationals seeking lawful permanent resident status.

At the time the defendants were arrested, law enforcement executed premises search warrants at multiple locations in New York including Sunset Park, Brooklyn, and Flushing, Queens.

The defendants have each been charged with one count of conspiracy to commit marriage fraud and immigration fraud, which, if convicted, carries a maximum penalty of five years in prison. The defendants have also each been charged with one count of conspiracy to encourage the unlawful residence of aliens in the United States, which, if convicted, carries a maximum penalty of 10 years in prison.

HSI, Hudson Valley; the FBI, Safe Streets Task Force; the USCIS’s Fraud Detection and National Security Directorate; the U.S. Army Criminal Investigation Division; and the Westchester County District Attorney’s Office are investigating this case. 

Assistant U.S. Attorneys Jake Sidransky and Reyhan Watson for the Southern District of New York are prosecuting the case.

An indictment merely contains accusations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

United States Attorney for the Southern District of New York, Jamie McDonald, Attorney General for the United States, Todd Blanche, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, Director of U.S. Citizenship and Immigration Services, Joseph B. Edlow, and Westchester County District Attorney, Susan Cacace, announced today the unsealing of a two-count Indictment charging AMY CHENG, a/k/a “Amy Zhou,” XIAO MEI CHAN, a/k/a “Carmen,” CHRISTINE LU, a/k/a “Lily,” JING YAN YE, a/k/a “Serene,” XIAO YAN CHEN, a/k/a “Anna,” GANG ZHENG, a/k/a “Michael,” a/k/a “Mike,” ANTHONY CHENG, MICHELLE DUENAS, ANGELA DUENAS, SIGRID CETINO, and ERIKA JOHNSON, with conspiring, over the course of more than a decade, to orchestrate more than 1,000 sham marriages to fraudulently obtain immigration status for foreign nationals, primarily citizens of the People’s Republic of China.  10 of the defendants were arrested this morning and are expected to be arraigned today before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court.  

“The defendants and their co-conspirators allegedly operated a nationwide and international, multimillion-dollar marriage fraud scheme, using participants to abuse United States immigration laws for their own profit,” said U.S. Attorney Jamie McDonald.  “Today’s arrests have dismantled a central component of one of the largest marriage fraud schemes charged in United States history.  As this prosecution shows, we and our law enforcement partners will relentlessly pursue those seeking to corrupt and exploit our nation’s lawful immigration system.”

“This Department of Justice is rooting out fraud everywhere—including in our immigration system,” said Attorney General Todd Blanche.  “The individuals who were arrested today allegedly orchestrated elaborate schemes to illegally obtain citizenship for foreign nationals through sham marriages.  Schemes like this are a deliberate affront to the United States and our laws and will not be tolerated under the Trump Administration.”

“For over a decade, this alleged criminal network treated our immigration system like a business opportunity—charging foreign nationals exorbitant fees, recruiting U.S. citizens into sham marriages, and manufacturing false evidence to deceive the federal government,” said HSI Acting Special Agent in Charge Pete Gizas.  “Their alleged conduct struck at the heart of a lawful process, placing personal profit above fairness, accountability, and the public’s trust.  When fraudsters game the system, they don’t just break the law—they cheat every person who plays by the rules and waits their turn, and they erode the confidence that legitimate institutions depend on to serve the public.  HSI New York, as a co-leader of the Homeland Security Task Force, is resolute in its mission to dismantle these fraud networks, protect the integrity of our institutions, and safeguard New Yorkers’ neighborhoods, communities, and livelihoods.”

“Anyone willing to lie, cheat or steal their way to legal immigration status is a direct threat to America's national security,” said USCIS Director Joseph B. Edlow.  “U.S. Citizenship and Immigration Services is aggressively pursuing marriage fraud schemes and the criminal organizations and ringleaders who profit from them.  USCIS will continue to expose fraud, defend the rule of law, and ensure immigration status is reserved for those who truly qualify.”

“Those who deliberately arrange sham marriages to circumvent our nation’s immigration laws are not only undermining the sanctity of this institution, but they are also committing a crime,” said Westchester County District Attorney Susan Cacace.  “This complex investigation, which our office proudly helped uncover, was worked in partnership with HSI, the FBI, and the U.S. Attorney’s Office for the Southern District of New York.  This case demonstrates the power and importance of strong cooperation between all law enforcement agencies.”

According to the Indictment:(1)

From at least 2016 through July 2026, the defendants operated a nationwide and international marriage fraud network that arranged sham marriages between foreign nationals—primarily citizens of the People’s Republic of China—and United States citizens.  Although based principally in New York City, the network allegedly arranged sham marriages throughout the United States and overseas, including in Connecticut, Massachusetts, Pennsylvania, Kentucky, Tennessee, Georgia, Florida, Vanuatu, and China. 

The network included facilitators who oversaw the scheme and identified foreign-national customers; recruiters who found willing United States citizens and helped ensure their continued participation; and assistants who prepared immigration paperwork and coordinated the submission of fraudulent lawful permanent residency (“Green Card”) applications to United States Citizenship and Immigration Services (“USCIS”).  The scheme also relied on marriage officiants, attorneys, tax preparers, insurance providers, and other service providers.  Foreign nationals paid facilitators as much as approximately $100,000 for a sham marriage and assistance obtaining lawful permanent resident status.  Facilitators, in turn, allegedly paid participating United States citizens as much as approximately $30,000—generally in installments tied to milestones in the Green Card application process—and paid recruiters commissions of as much as approximately $5,000 for each citizen recruited.  In total, the defendants and their co-conspirators recruited hundreds of United States citizens to enter into sham marriages:

The defendants executed the fraud by pairing foreign nationals with United States citizens—who often met for the first time immediately before obtaining a marriage license, arranging sham wedding ceremonies, and staging photographs designed to make those marriages appear legitimate.  Some examples are below, including a photograph of a sham marriage that took place in China:

After the ceremonies, scheme participants manufactured evidence to make the marriages appear genuine, including by staging additional photographs, opening joint financial and utility accounts, filing joint tax returns, and obtaining insurance policies.  The defendants and their co-conspirators then prepared and submitted Green Card applications containing materially false statements and, when interviews with USCIS were required, coached the marriage participants on how to conceal the true nature of their relationships and provide false answers to immigration officers. 

The defendants caused at least hundreds of fraudulent Green Card applications and supporting documents to be submitted to USCIS.  Based on the scale and duration of the scheme, the defendants’ network is believed to have collected tens of millions of dollars from foreign nationals seeking lawful permanent resident status.

At the time the defendants were arrested, law enforcement executed premises search warrants at locations in Sunset Park, Brooklyn, Flushing, Queens, and Staten Island.

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AMY CHENG, 72, of Brooklyn, New York, XIAO MEI CHAN, 64, of Queens, New York, CHRISTINE LU, 52, of Queens, New York, JING YAN YE, 43, of Staten Island, New York, XIAO YAN CHEN, 48, of Brooklyn, New York, GANG ZHENG, 61, of Queens, New York, ANTHONY CHENG, 47, of Staten Island, New York, MICHELLE DUENAS, 35, of Staten Island, New York, ANGELA DUENAS, 26, of Staten Island, New York, SIGRID CETINO, 32, of Peekskill, New York, and ERIKA JOHNSON, 43, of Ossining, New York, have each been charged with one count of conspiracy to commit marriage fraud and immigration fraud, which carries a maximum sentence of five years in prison, and one count of conspiracy to encourage the unlawful residence of aliens in the United States, which carries a maximum sentence of 10 years in prison.

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

Mr. McDonald thanked HSI, Hudson Valley; the Federal Bureau of Investigation, Safe Streets Task Force; the USCIS Fraud Detection and National Security Directorate; the United States Army Criminal Investigation Division; the Westchester County District Attorney’s Office; the United States Attorney’s Office for the Middle District of Florida; and Homeland Security Investigations, Jacksonville for their outstanding investigative work. 

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Jake Sidransky and Reyhan Watson 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.

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

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that Joshua Schuster was sentenced to four years in prison for his role in a scheme to defraud investors in large real estate development projects located in New York City.  SCHUSTER pled guilty on February 27, 2026, before U.S. District Judge Valerie E. Caproni, who imposed today’s sentence.    

“To preserve the integrity of and confidence in our financial markets, this Office will work tirelessly to prosecute fraud and protect investors in these markets,” said U.S. Attorney Jamie McDonald.  “Joshua Schuster betrayed the trust of investors who believed their money would fund real estate projects throughout New York.  Instead, he stole more than $13 million to finance his own lifestyle and repay earlier investors in a Ponzi-like scheme.  As a result of his lies and deception at his investors’ expense, Schuster has been sentenced to a term in federal prison.”

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

Over a five-year period, SCHUSTER engaged in a scheme to defraud investors who had entrusted him with millions of dollars to finance real estate development projects in New York City. SCHUSTER induced investors to contribute capital to his projects by promising them equity in high-end real estate developments, and by representing that investor funds would be used exclusively for the acquisition and development of specific New York-based projects.  Instead, SCHUSTER misappropriated in excess of $13 million dollars in investor money to fund his lifestyle, including over $1 million in personal credit card payments and hundreds of thousands of dollars in gambling losses; to repay earlier investors in a Ponzi-like fashion; and to cover unrelated business obligations and payroll. 

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In addition to the prison term, SCHUSTER, 42, of Boca Raton, Florida, was sentenced to three years of supervised release and will be required to pay more than $13,830,665 in forfeiture.  SCHUSTER will also be required to pay restitution, which will be determined at a later date.   

Mr. McDonald praised the outstanding work of the Federal Bureau of Investigation.  Mr. McDonald also thanked the U.S. Securities and Exchange Commission, which has filed a separate civil action against SCHUSTER, for its assistance and cooperation in the investigation.

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

United States Attorney for the Southern District of New York, Jamie McDonald, and Inspector in Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), Ketty Larco-Ward, announced today the filing of an Information charging THEODORE WOO, the former CFO of a hedge fund, with securities fraud. The charge results from WOO’s yearslong scheme to steal from the fund by submitting and approving falsified invoices, causing the fund to transfer money directly into accounts controlled by WOO, and incurring unauthorized personal expenses on credit cards paid by the fund. WOO pled guilty today before U.S. Magistrate Judge Valerie Figueredo and is scheduled to be sentenced by U.S. District Judge Lewis A. Kaplan on November 18, 2026.

“For years, Theodore Woo flagrantly abused his position of trust and brazenly stole from his employer to line his own pockets,” said U.S. Attorney Jamie McDonald.  “To do so, Woo took advantage of his position as CFO, misled his employer, and falsified documents.  Lies and deception are not worth the risk of criminal prosecution.  Today’s charge and plea are indicative of this Office’s commitment to holding C-suite executives accountable when they engage in fraud.”    

“Woo’s arrest shows that greed and deceptive tactics do not pay,” said USPIS Inspector in Charge Ketty Larco-Ward.  “For years Woo allegedly cheated this company out of millions and used this money as his own personal piggy bank.  The United States Postal Service will continue to investigate and prosecute this type of illegal activity, as we seek to protect the public from financial fraudsters.”

According to the Information: 

Beginning shortly after he began working for the fund and continuing until his termination in March 2026, WOO embezzled millions of dollars from the fund through a series of fraudulent transactions, including making millions of dollars in fraudulent payments to entities controlled by WOO and spending thousands of dollars on unauthorized personal expenses using credit cards paid by the fund. 

As the CFO, WOO handled back-office tasks for the fund and had the authority to authorize the fund’s administrator to process reimbursement requests.  In that capacity, WOO instructed the fund administrator to make millions of dollars in payments to two entities, TWDRR LLC and MGTW LLC, for claimed “Research Consulting Services.”  WOO also sent invoices from those two entities that falsely represented that they had rendered services for the fund.  In actuality, WOO controlled both entities, and neither entity had performed any service for the fund.  To further conceal his theft, WOO falsely claimed to the fund’s external auditor that MGTW LLC was an independent research consulting firm engaged by the fund to develop short investment ideas on a project-by-project basis.

WOO also had the authority to effectuate transfers of cash from the fund to third parties, as the CFO.  Over the course of his employment with the fund, WOO caused over 100 fraudulent transfers from the fund to a corporate entity controlled by WOO and to bank accounts in WOO’s name.

Finally, while serving as CFO, WOO opened and controlled multiple credit cards in the name of the fund, and charged unauthorized personal expenses to those cards, including thousands of dollars in charges to adult entertainment establishments and international vacations.

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WOO, 49, of Miami, Florida, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison. 

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

Mr. McDonald thanked the USPIS for its outstanding work.  Mr. McDonald also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission.

This case is being handled by the Office’s Securities and Commodities Task Force.  Assistant U.S. Attorneys Sarah Mortazavi and Christy Slavik are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Director in Charge of the Coast Guard Investigative Service (“CGIS”), Josh Packer, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today that MANUEL HERNANDEZ has been charged with negligently causing the death of a five-month-old infant and a 27-year-old woman, after the vessel HERNANDEZ was piloting capsized in New York Harbor.  HERNANDEZ was presented today before U.S. Magistrate Judge Valerie Figueredo. 

“Federal regulations and maritime safety protocols exist to protect the lives and wellbeing of passengers on commercial vessels,” said U.S. Attorney Jamie McDonald.  “The defendant allegedly flouted those regulations when he transported paying customers on a commercial vessel without appropriate licenses, overcrowded the vessel, and took on a five-month-old infant passenger, with no infant life vests onboard.  We mourn the tragic drowning deaths of the infant and her mother and urge would-be tour operators and the public to observe all safety protocols for commercial vessels.” 

“Illegal charter operations gamble with human life, and in this case, the alleged conduct led to an unthinkable tragedy,” said Coast Guard Investigative Service Assistant Director Josh Packer.  “As the Coast Guard’s criminal investigative agency, CGIS brings unmatched maritime subject-matter expertise coupled with federal law enforcement authority.  Working with our federal, state, and local partners, we will continue to investigate those who ignore passenger vessel safety laws and put the public in danger.”

“As alleged in the complaint, Manuel Hernandez showed a complete disregard for the safety of his passengers when he piloted an over-capacity boat without a license that capsized in the New York Harbor,” said NYPD Commissioner Jessica S. Tisch.  “This tragedy could have been prevented, and now a family is left to grieve the unimaginable loss of a mother and her five-month-old daughter because of his negligence.  I am grateful to our NYPD Harbor and Aviation Units for their swift response and to the U.S. Attorney’s Office for the Southern District of New York for bringing these charges.” 

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

On or about August 8, 2026, HERNANDEZ was piloting a  Yamaha AR210 (the “Vessel”) when it capsized in New York Harbor, resulting in the deaths of a five-month-old infant (“Victim-1”) and a 27-year-old woman (“Victim-2”).  At the time of the capsizing, HERNANDEZ was the pilot and operator of the Vessel and conducting a tour for paying customers that had been arranged through a tour operations company.

HERNANDEZ’s negligent actions and omissions caused the capsizing and deaths of Victim-1 and Victim-2.  At the time of the capsizing, among other things: (i) HERNANDEZ operated the Vessel with 14 people onboard, exceeding the Vessel’s maximum allowable capacity of 10 people; (ii) HERNANDEZ knowingly operated the Vessel with an infant onboard, knowing that the infant was not wearing a personal flotation device (“PFD”) and that the Vessel was not equipped with any child- or infant-sized PFDs; (iii) HERNANDEZ had not obtained a Merchant Mariner Credential, a required USCG certification to operate the Vessel with paying customers onboard; (iv) HERNANDEZ operated the Vessel without a valid USCG Certificate of Inspection, which is required for a vessel to operate with paying customers onboard, and, in fact, the Vessel was of a type and size that made it ineligible to receive a COI for the type of operation conducted by HERNANDEZ.

All 14 people onboard the Vessel were thrown overboard during the capsizing.  Shortly after the capsizing, other boats, including commercial vessels and vessels operated by the NYPD, the USCG, and the New York City Fire Department, responded to the scene to render emergency assistance.  11 passengers and HERNANDEZ were recovered in varying medical conditions and survived the capsizing.  The bodies of Victim-1 and Victim-2 were recovered in the water by members of the NYPD and USCG.  Both Victim-1 and Victim-2 were unresponsive, received CPR from emergency responders, and were immediately transported to a hospital in Brooklyn.  Upon arrival at the hospital, both Victim-1 and Victim-2 were pronounced deceased by medical personnel.  A photo of the capsized Vessel being recovered from the water is below: 

Please report any illegal passenger charters to the USCG at https://www.p3tips.com/878.

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HERNANDEZ, 46, of Manville, New Jersey, is charged with two counts of misconduct and neglect of a ship officer resulting in death, each of which carries a maximum sentence of 10 years in prison. 

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

Mr. McDonald praised the outstanding work of the CGIS and the NYPD.

This case is being handled by the Office’s General Crimes Unit.  Special Assistant U.S. Attorney Andrew Stahl 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.

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    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 therein should be treated as an allegation. 

Sean S. Buckley, Deputy United States Attorney, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced that TAJ TARSHA, the founder of Few and Far Limited (“Few and Far”), has been indicted for securities and wire fraud for defrauding investors of the crypto startup he founded by making false and misleading statements regarding the use of investor funds and subsequently misappropriating those funds.  TARSHA was previously arrested on June 6, 2026.  The case has been assigned to U.S. District Judge Lewis A. Kaplan.

“As alleged, Taj Tarsha raised millions of dollars from investors by promising that their investments would be used to build a marketplace for non-fungible tokens, but he instead breached their trust by stealing those funds for his own personal benefit,” said Deputy United States Attorney Sean S. Buckley.  “Investors are entitled to the truth when choosing to make an investment, and this Office and our law enforcement partners will hold business leaders responsible when they lie for their own gain.”

“Taj Tarsha is alleged to have concealed fraudulent conduct behind his crypto startup, using investor funds for personal benefit,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Protecting the integrity of our financial markets is a priority, and the FBI remains steadfast in its commitment to conducting thorough and fact-driven investigations into potential financial offenses.”

According to the Indictment:(1)

TARSHA was the founder and sole equity owner of Few and Far, a startup that claimed to be developing a decentralized marketplace for non-fungible tokens (“NFTs”).  Beginning in February 2022, TARSHA solicited investments in Few and Far through Simple Agreement for Future Tokens (SAFTs), under which investors paid upfront for rights to receive FAR tokens—a proprietary token meant to be integrated into the marketplace—at a later date.  The offering materials promised investors that their funds would be used to advance the development of the Few and Far marketplace and the FAR tokens.  Through these sales, TARSHA raised over $10 million from the sale of 95 million FAR tokens to at least 67 investors.

Almost immediately, however, TARSHA began misappropriating investor funds for his personal use, including gambling at an online casino and purchasing speculative cryptocurrencies.  TARSHA also siphoned nearly a million dollars of investor funds under the pretext of legitimate compensation in the form of two bonuses—which he deliberately hid from investors and a co-founder—and a high salary that he acknowledged was unreasonable in light of Few and Far’s lack of product and “zero revenue.”

In June 2023, an audit uncovered the misappropriation.  TARSHA falsely told investors that the bonuses were tied to predetermined FAR token presales targets and all transactions were done for the benefit of Few and Far, and he claimed all investor funds were still needed to complete the company’s mission.  In reality, he had fired nearly all staff and instructed the remaining contractor to do work that merely created the appearance of continued development of the marketplace.  For at least another year, he used investor funds for personal expenses, including cryptocurrency purchases, a Miami condominium loan and interior design services, and his DJ hobby.  When he finally launched the FAR token in May 2024, it was effectively worthless and soon ceased trading. 

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TARSHA, 34, of Miami, Florida, is charged with securities fraud and wire fraud, each of which carries a maximum sentence of 20 years in prison.

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

Mr. Buckley praised the outstanding work of the FBI.

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

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

1. ^

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