Category: Security

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Ninedee Gang Member Sentenced to 35 Years in Prison for Murder of Former Federal Witness

Source: US FBI

Brooklyn Street Gang Plotted Retaliatory Murder of Shatavia Walls at the Pink Houses

Earlier today, in federal court in Brooklyn, Quintin Green, also known as “Wild Child,” was sentenced by United States District Judge LaShann DeArcy Hall to 35 years’ imprisonment for the murder of former federal witness Shatavia Walls in July 2020.  Green, a member of the Ninedee Gang, a violent criminal enterprise operating out of the Louis H. Pink Houses in East New York, pleaded guilty in April 2024 to causing Walls’ death through use of firearms.  Green also pleaded guilty to attempted Hobbs Act robbery for attempting to steal televisions from a Target store in Staten Island in November 2020 and was sentenced to a concurrent term of five years in prison.

John J. Durham, United States Attorney for the Eastern District of New York, Leslie R. Backschies, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the sentence.

“The calculated murder of Shatavia Walls by members and associates of the Ninedee Gang arose from a twisted desire to murder her in retaliation for her federal testimony and perceived disrespect of the gang,” stated United States Attorney Durham.  “Quintin Green shot an unarmed woman in cold blood to make a name for himself in the gang, but he should be called out for what he truly is, a cowardly killer.  He deservedly will spend decades in a federal prison.  I commend the FBI special agents, the NYPD detectives and the prosecutors in my Office who worked tirelessly to dismantle this gang, achieve justice for Ms. Walls and make the Pink Houses and the surrounding area in East New York a safer place for the law-abiding residents of that community.”

“Along with other Ninedee members, Quintin Green targeted and callously killed Shatavia Walls and then bragged across social media about his abhorrent crimes in an effort to bolster the gang’s dangerous reputation,” stated FBI Acting Assistant Director in Charge Backschies.  “This premeditated ambush was an unjust retributive attack against a former government witness trying to protect her community from further gang violence. May today’s sentencing reflect the FBI’s continued refusal to tolerate any attempts to intimidate those who speak out against gang violence.”

“Today, we are bringing a cold-blooded murderer to justice,” stated NYPD Commissioner Tisch.  “Quintin Green and the Ninedee Gang terrorized their neighborhood, put children in danger, and viciously killed an unarmed woman. Let this serve as a clear message that we will go after violent gangs that break the law and cause widespread harm and fear. I thank the NYPD detectives and the prosecutors in this case for their tireless work to hold these perpetrators accountable.”

As set forth in [the government’s sentencing memorandum and other court filings], Green and other members of the Ninedee Gang targeted Walls for murder because she testified against a Ninedee Gang member in federal court in Brooklyn in 2019, had a confrontation with Ninedee Gang members who were setting fireworks off near children on July 4, 2020 and her affiliation with the rival “7” and “8” Pink House apartment buildings.  For those reasons, she was considered by the gang to be a high-value target. The defendant became known as “Wild Child” due to his reputation for violence and, in order to earn status in the gang, boasted about his willingness to shoot rivals.  He was one of two shooters who gunned Walls down on July 7, 2020.

Further, as proven at the trial of Green’s co-defendant, Ninedee Gang leader Maliek Miller, Ninedee Gang members were affiliated with the “5” and “6” Pink Houses apartment buildings and engaged in ongoing gang-related violence within and outside of the New York City Housing Authority complex.  Ninedee Gang protected its turf through violence and sought to silence anyone who they perceived to be working with law enforcement. 

The murder of Walls was coordinated by Ninedee Gang members, including Green.  Prior to her court testimony, fliers had been posted around the Pink Houses stating, “Shatavia Been a Rat And She Still Ratting.” 

On July 4, 2020, Walls and others were involved in a physical altercation with members of Ninedee for lighting fireworks around young children.  Miller went to the scene of the altercation, called Walls a “snitch,” fought with her and fired a gunshot.  Following the altercation, Miller planned with other Ninedee Gang members, including Green, to kill Walls.

On July 7, 2020, Walls was spotted by Green and his co-defendant Joe Santana.  Green and Santana began shooting at her.  Green then chased Walls down a path at the Pink Houses, continuing to shoot her. Walls suffered numerous gunshot wounds and died of her injuries 10 days later. 

Co-defendant Shakur Bey destroyed the clothing that Green and Santana wore during the shooting by throwing the items down an incinerator chute. Co-defendant Kevin Wint, who was not present at the murder, rented a hotel room at a Best Western Hotel near John F. Kennedy International Airport to provide a place where Green and others could hide out overnight.  In the days after the murder, Green and Wint posted to social media claiming credit to the Ninedee Gang for the killing.   

Miller was convicted in June 2024 of murder in-aid of racketeering and faces a mandatory term of life in prison when he is sentenced.  Santana and Fernandez pleaded guilty to their roles in the murder. Santana was sentenced to 22 years in prison and Fernandez is awaiting sentencing.  Wint pleaded guilty in March 2023 and was sentenced to 110 months’ imprisonment. Bey pleaded guilty in December 2023 and was sentenced to 60 months’ imprisonment.  Ninedee leader Raquel Dunton is charged with acting as an accessory after-the-fact to Walls’ murder and obstruction of justice for assisting fellow gang members in concealing evidence of the crime.  Dunton is also charged with trafficking cocaine and is awaiting trial.

In addition to the murder, Green pleaded guilty to attempting to commit a November 3, 2020 robbery of a Staten Island Target store. Green attempted to steal two flat- screen televisions and was stopped by a security guard. Green punched the security guard causing her to fall and attempted to flee with one of the two televisions. He was arrested by police after fleeing the scene.

The government’s case is being handled by the Office’s Organized Crime and Gang Section.  Assistant United States  Attorneys Emily J. Dean, Margi Schierberl and Irisa Chen are in charge of the prosecution with the assistance of Paralegal Specialist Elizabeth Reed and Intelligence Analysts Eungee Hwang and Ashley Hinkson.

The Defendant:

QUINTIN GREEN (also known as “Wild Child”)
Age: 24
Brooklyn, New York

E.D.N.Y. Docket No. 20-CR-331 (LDH)

Defendant Convicted at Trial:

MALIEK MILLER
Age: 31
Brooklyn, New York

E.D.N.Y. Docket No. 20-CR-331 (LDH)

Defendants Who Previously Pleaded Guilty:

JOE SANTANA (also known as “Baby Joe”)
Age: 20
Brooklyn, New York

CHAYANNE FERNANDEZ (also known as “White Boy”)
Age: 24
Brooklyn, New York

KEVIN WINT (also known as “Kev G”)
Age: 31
Brooklyn, New York

SHAKUR BEY (also known as “Speedy”)
Age: 27
Brooklyn, New York

E.D.N.Y. Docket No. 20-CR-331 (LDH)

Defendant Awaiting Trial:

RAQUEL DUNTON (also known as “Rah”)
Age: 38
Brooklyn, New York

E.D.N.Y. Docket No. 24-CR-344 (LDH)

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Former CEO of Special Purpose Acquisition Company Charged with Accounting Fraud, Obstruction of Justice, and Perjury

Source: US FBI

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging VADIM KOMISSAROV, the former Chief Executive Officer of Trident Acquisitions Corp. (“TDAC”), a publicly traded special purpose acquisition company (“SPAC”), with engaging in a scheme to defraud TDAC investors and investors in TDAC’s successor company, Lottery.com Inc., by publicly reporting false and misleading revenue and business information. KOMISSAROV was arrested yesterday evening and will be presented this afternoon before U.S. Magistrate Judge Sarah Netburn.  The case has been assigned to U.S. District Judge Alvin K. Hellerstein.

Acting U.S. Attorney Matthew Podolsky said: “As alleged, Vadim Komissarov, the former CEO of Trident Acquisitions Corp., engineered sham transactions and reported false and misleading revenue, all to ensure his SPAC merger went through and to make himself wealthy. To make matters worse, he tried to cover up his crimes by lying to the SEC under oath. This Office, and our partners at the FBI, will continue to pursue executives of public companies, including executives of SPACs, who defraud unsuspecting investors.”

FBI Assistant Director in Charge James E. Dennehy said: “Vadim Komissarov allegedly tried to secure a winning ticket by developing an elaborate scheme comprised of inflated profits, falsified transactions, and perjurious statements to sell company shares. Komissarov allegedly abused his authority as the company’s CEO to conjure a façade of success and interfere with an investigation into his suspected misconduct. The FBI will never permit any individual who attempts to unlawfully cash out at the expense of their investors’ money and trust.”

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

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

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

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

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

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

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

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KOMISSAROV, 53, of New York, New York, was charged in the Indictment with one count of conspiracy to commit securities fraud, to make false and misleading statements in proxy statements, and to make false filings with the SEC; one count of securities fraud; five counts of making false and misleading statements in proxy statements; one count of obstruction of justice; and one count of perjury. The conspiracy charge and the perjury charge each carry a maximum term of imprisonment of five years. The charges of securities fraud, making false and misleading statements in proxy statements, and obstruction of justice each carry a maximum prison term of 20 years.   

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

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

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

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

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

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Canadian Drug Traffickers Sentenced to Prison for Transporting Methamphetamine and Cocaine on Behalf of the Wolfpack Alliance

Source: US FBI

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that MICHAEL HABIB, an associate of the Canadian criminal organization known as the Wolfpack Alliance, was sentenced to 17 and a half years in prison for trafficking narcotics. HABIB pled guilty on December 20, 2023, before U.S. District Judge John P. Cronan, who imposed today’s sentence.  HABIB’s sentencing follows the imposition of sentences of 18 years, 17 and a half years, and four and half years on his co-defendants, SURINDER SINGH CHEEMA, BHUPINDER SINGH VIRK, and CHRISTOPHER BURGOS, on December 19, 2024, July 17, 2024, and December 16, 2024, respectively.

Acting U.S. Attorney Matthew Podolsky said: “Wolfpack and its associates have spread drugs and violence in the United States and in Canada. Michael Habib and his co-conspirators are responsible for transporting thousands of kilograms of cocaine and methamphetamine across our northern border, ordering drug-related shootings and kidnappings, and attempting to smuggle wanted international hitmen into the United States from Canada.  Today’s prison sentence will help protect the public from wanton violence and dangerous narcotics, and demonstrates our resolve to root out transnational criminal organizations like Wolfpack.”

FBI Assistant Director in Charge James E. Dennehy said: “The associates of the Wolfpack Alliance have all been rightly sentenced for establishing an international drug trafficking route to assist the flow of thousands of kilograms of methamphetamine and cocaine through our country into Canada. This conspiracy caused significant amounts of dangerous drugs to enter the United States, endangering the public’s safety. The FBI will continue to dismantle and hold accountable any criminal enterprise member, regardless of their origin, which utilizes our nation as an economic foothold and throughfare for their illegal operations.”

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

From at least in or about February 2022 through at least in or about November 2022, HABIB, CHEEMA, VIRK, BURGOS and others conspired to distribute narcotics by shipping thousands of kilograms of methamphetamine and cocaine across the U.S. and into Canada. In or about March 2022, law enforcement seized approximately 400 kilograms of cocaine shipped by the conspirators from a warehouse in New Jersey, and approximately 96 kilograms of cocaine and 86 kilograms of methamphetamine in the vicinity of Kansas City, Kansas. In connection with their guilty pleas, HABIB admitted to conspiring to distribute at least approximately 400 kilograms of cocaine; CHEEMA admitted to conspiring to distribute at least approximately 1.3 metric tons of methamphetamine and 764 kilograms of cocaine; VIRK admitted to conspiring to distribute at least approximately 1.1 metric tons of methamphetamine and 480 kilograms of cocaine; and BURGOS admitted to conspiring to distribute at least approximately 400 kilograms of cocaine.

The defendants engaged in additional criminal activities. HABIB and BURGOS, on behalf of the Wolfpack Alliance, assisted two Wolfpack-aligned hitmen, Gene Lahrkamp and Duncan Bailey, in their attempt to escape Canada and evade Canadian law enforcement, until Lahrkamp and Bailey were killed in an accidental plane crash in Canada on or about April 30, 2022. CHEEMA, in or about the spring of 2024, subsequent to his guilty plea and while awaiting sentencing at the Metropolitan Detention Center in Brooklyn, New York, directed his confederates in the greater Toronto, Canada area to conduct shootings and issue threats of violence in connection with drug debts. VIRK was arrested in or about November 2022 in California with three unregistered “ghost” guns and approximately $487,900 in cash.

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In addition to their prison terms, HABIB, 38, of Toronto, Canada; CHEEMA, 31, of Brampton, Canada; VIRK, 31, of Fresno, California; and BURGOS, 36, of Brooklyn, New York, were sentenced to five, four, four, and three years of supervised release, respectively, and were ordered to forfeit $487,900 and a 2020 Mercedes Benz AMG GT63.

Mr. Podolsky praised the outstanding investigative work of the FBI and U.S. Customs and Border Protection. Mr. Podolsky further thanked the Royal Canadian Mounted Police and Peel Ontario Regional Police for their assistance and cooperation in the investigation.

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

This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Thomas S. Burnett, Jane Y. Chong, and Matthew R. Shahabian are in charge of the prosecution. 

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Victim Specialists Support American Indian and Alaska Native Communities

Source: US FBI

How long have you worked with AI/AN populations?

I’ve lived in the Aberdeen community since 2009, and I love it here. I’ve had the privilege of working with the AI/AN populations since I started victim services in 2011.

In my work with the FBI, I cover the Lake Traverse and Standing Rock South Dakota side reservations. Our office puts in a lot of miles. The communities we cover are, on average, two to three hours away.

What challenges do you face in working with AI/AN victims that you may not face elsewhere?

The lack of resources is, by far, my biggest challenge. The reservations are very rural, so they don’t have the resources that you see in bigger towns. My car is stocked with toiletries, clothing, diapers, blankets, gloves, etc., that I can access when needed.

On the reservations, there’s a lack of trauma-informed counseling options. With many of the cases I work, people have to travel anywhere from 30 minutes to two hours one way to see a counselor that specializes in trauma. This is not sustainable due to costs, limited transportation, and weather.

Another big challenge is the lack of foster homes and shelters, as well as the ability to keep these placements confidential. This can create a barrier for victims who want to leave their situations but fear the perpetrators will be able to find them.

What do you wish people knew about working as a VS in the FBI?

Being a victim specialist can be the most challenging but, more importantly, the most rewarding job. I think some people have the notion that the AI/AN populations do not want our help, but that could not be farther from the truth, in my experience. Everyone I have met is so excited to see there is help, support, resources, and justice for the things that have been done to them. I’m reminded every day of how I am so blessed, and it helps me want to give more to provide hope that they can get through this.

What’s the best part of being a VS?

The best moment in my job is seeing a victim realize they are strong, courageous, and a survivor. This happens in many ways. For example, I worked with a young victim who initially said she couldn’t testify at trial with the defendant there. Not only did she do an amazing job at testifying, which helped the jury convict the defendant, but she stood and read her victim impact statement at the sentencing hearing. The hug I received after that hearing is something I will never forget.

I also worked with a mom who had endured years of domestic violence and then found out her husband was abusing their daughter. Those were truly their darkest days, but the transformation I have seen in them is truly amazing. The daughter received a kindness award at school and has improved her grades and attendance. The mother has kept stable employment and secured a home for their family to continue to heal and grow.

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OKX Pleads Guilty to Violating U.S. Anti-Money Laundering Laws and Agrees to Pay Penalties Totaling More Than $500 Million

Source: US FBI

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that Aux Cayes Fintech Co. Ltd, d/b/a “OKEx,” d/b/a “OKX” (“OKX”), a Seychelles-based entity, that since at least 2017 has operated OKX, one of the largest cryptocurrency exchanges in the world, pled guilty today to one count of operating an unlicensed money transmitting business. In connection with today’s guilty plea and sentencing, OKX agreed to pay monetary penalties totaling more than $504 million.  The case was assigned to U.S. District Judge Katherine Polk Failla, who presided over today’s guilty plea and sentencing.

Acting U.S. Attorney Matthew Podolsky said: “For over seven years, OKX knowingly violated anti-money laundering laws and avoided implementing required policies to prevent criminals from abusing our financial system. As a result, OKX was used to facilitate over five billion dollars’ worth of suspicious transactions and criminal proceeds.  Today’s guilty plea and penalties emphasize that there will be consequences for financial institutions that avail themselves of U.S. markets but violate the law by allowing criminal activity to continue.”

FBI Assistant Director in Charge James E. Dennehy said: “For years, OKX flagrantly violated U.S. law, actively seeking customers in the United States—including here in New York—and even going so far as to advise individuals to provide false information to circumvent requisite procedures. Furthermore, in their failure to adhere to U.S. law, significant illicit transactions which furthered other criminal activity went undetected on their platform. Blatant disregard for the rule of law will not be tolerated, and the FBI is committed to working with our partners across government to ensure that corporations that engage in this type of conduct are held accountable for their actions.”

According to court documents and admissions: 

OKX is one of the world’s largest cryptocurrency exchange platforms, with billions of dollars’ worth of cryptocurrency transactions occurring daily on its platform.  OKX allows registered users to place orders for spot trades in over three hundred cryptocurrencies, including Bitcoin and Ethereum. OKX users can also place orders for derivative products, including futures contracts, tied to the value of Bitcoin and other cryptocurrencies. 

Financial institutions that operate wholly or in substantial part in the United States must register with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) as a money services business (“MSB”) and comply with federal anti-money laundering (“AML”) laws, including the Bank Secrecy Act.  These laws require the filing of suspicious activity reports and the maintenance of an adequate AML program, including an effective know-your-customer (“KYC”) program. AML programs are critical to ensure that entry-points into the U.S. financial system do not become tools criminals can use to profit from illicit activity.

Since 2017, OKX has had an official policy preventing U.S. persons from transacting on its exchange. But contrary to this official policy, OKX sought out customers in the United States, including in the Southern District of New York. 

From in or about 2018 through in or about at least early 2024, OKX served U.S. retail and institutional customers that engaged in over one trillion dollars’ worth of transactions through OKX. Transactions from those U.S. customers generated hundreds of millions of dollars in trading fees and profits for OKX. 

Because OKX served U.S. retail and institutional customers, OKX knew it was required by U.S. law to register as a money services business with FinCEN, but OKX chose not to do so.[1] In fact, despite OKX’s official policy prohibiting U.S. persons from transacting on the exchange, OKX was fully aware that individuals in the United States could, and did, easily create and use OKX trading accounts.  From OKX’s founding in approximately 2017 through approximately November 2022, OKX allowed retail customers the option to create an account, receive and transfer funds, and place trades without completing a KYC process. This meant that OKX, a large financial institution, facilitated transactions on behalf of customers that it could not identify. Further, while OKX implemented a policy blocking customers with U.S.-located IP addresses from trading or depositing assets onto OKX (the “IP Ban”), OKX knew that the IP Ban could be circumvented through cheap, widely available VPN technology.  Also, through at least early 2023, OKX allowed existing accounts to continue to receive and transfer funds, and place trades, all without completing a KYC process.  And until approximately early 2024, OKX also allowed customers to place trades on the exchange through third-party entities known as “non-disclosure brokers” without the third-party entity disclosing any identifying information to OKX about the customers on whose behalf the trades were placed. 

Even after OKX began requiring all customers to provide some KYC information to trade, OKX employees on certain occasions advised customers how to provide false information to circumvent the company’s KYC process and official policy prohibiting U.S. customers.  For example, in April 2023, an OKX employee encouraged a potential U.S. customer to open an account by providing false information about the customer’s nationality during the KYC processing, writing “I know you’re in the US, but you could just put a random country and it should go through. You just need to put Name, nationality, and ID number. You could just put United Arab Emirates and random numbers for the ID number.”  At that time, OKX did not verify the information that customers provided to open an account to trade.  In January 2024, the same employee wrote to another potential U.S. customer and asked if the individual had “any workaround on KYC outside of the US to make it potentially work.”

During the relevant period, OKX advertised in the United States, sponsoring the Tribeca Film Festival, for example, and used affiliate marketers based in the United States to promote the exchange. OKX also allowed existing customers to promote the exchange, and provided such customers benefits for recruiting additional users. At least one such OKX customer produced a publicly-available, step-by-step instructional video educating U.S. customers about how to register with OKX using a VPN to conceal their U.S. presence.

OKX also focused its efforts on attracting and retaining certain U.S. institutional customers, including large institutions who could provide liquidity and help OKX become one of the world’s largest cryptocurrency exchanges by making a broad range of cryptocurrencies available at competitive rates.  OKX’s U.S. institutional customers were some of OKX’s largest customers, with one such firm alone generating more than a trillion dollars in spot and derivatives transactions on OKX during the relevant period.  They provided significant liquidity, volume and trading fees for the platform, despite OKX’s knowing failure to register as an MSB and OKX’s “official” policy banning U.S. customers.

Until approximately May 2023, OKX did not adequately or consistently use commercially available software to monitor and detect suspicious activity, including money laundering, and OKX did not have adequate controls to determine whether either party to transactions on the exchange was potentially subject to sanctions imposed by the U.S. Treasury Department. As a result, through at least early 2024, OKX was used by numerous customers as a vehicle for laundering the proceeds of suspicious and criminal activities, including more than five billion dollars of suspicious transactions and illicit proceeds, based on a review of third-party transaction data.

In early 2024, OKX retained an external compliance consultant (the “Consultant”) to advise OKX on policies and controls reasonably designed to prevent U.S. persons from engaging in transactions on OKX’s platform through accounts held at OKX.  As part of the plea agreement, OKX is continuing to retain the Consultant, at its own cost, through February 2027, and has agreed to continue to cooperate with the United States Attorney’s Office.

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In addition to the guilty plea, OKX, a Seychelles-based entity, also agreed to criminally forfeit $420.3 million and pay a criminal fine of approximately $84.4 million.  OKX received credit for its cooperation with the investigation and timely engaging in remedial measures, resulting in a 25% reduction off the bottom of the otherwise applicable recommended fine range.

Mr. Podolsky praised the outstanding investigative work of the FBI New York Field Office. 

This matter is being handled by the Office’s Illicit Finance & Money Laundering Unit.  Assistant U.S. Attorneys Christopher D. Brumwell, Eli J. Mark, and Vladislav Vainberg are in charge of the prosecution.

[1] OKX has an affiliate U.S.-based cryptocurrency exchange named OKCoin USA, Inc. (“OKCoin”) which, in contrast with OKX, has registered with FinCEN as a MSB. OKCoin serves customers globally, including in the United States, and offers retail and institutional customers the ability to spot trade, including purchasing cryptocurrency using U.S. dollars. The conduct described herein that gives rise to the charge in the Information, and to which OKX pled guilty, is solely that of the unregistered MSB, Aux Cayes Fintech Co. Ltd., d/b/a “OKEx,” d/b/a “OKX,” the defendant.

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Wilver Villegas-Palomino Added to FBI’s Ten Most Wanted Fugitives List

Source: US FBI

The ELN uses proceeds from Villegas-Palomino’s drug trafficking enterprise to fund terrorist attacks, launch sabotage operations, buy political influence, and engage in other malign activities designed to destabilize government institutions and subvert U.S. national security and law enforcement interests in the region. 

A federal arrest warrant was issued for Villegas-Palomino in the U.S. District Court, Southern District of Texas, Houston Division, on February 13, 2020, after he was charged with narcoterrorism, international cocaine distribution conspiracy, and international cocaine distribution. 

“Villegas-Palomino continues to present a grave threat to the community through his cocaine and narcoterrorist empire,” said FBI Supervisory Special Agent Nick Zarro, who is overseeing the investigation out of the FBI Houston Field Office. “Cocaine produced in Villegas-Palomino’s laboratories ultimately ends up on U.S. streets, plaguing local communities and driving spikes in violent crime.” 

The Organized Crime Drug Enforcement Task Force, a federal drug enforcement program overseen by the U.S. Attorney General and the Department of Justice, has named Villegas-Palomino a consolidated priority organization target (CPOT), which is reserved for those involved in the most significant international drug trafficking operations affecting the United States. 

Zarro hopes the poster and publicity will move hesitant associates to come forward with tips. “Continued publicity of Villegas-Palomino’s status on this list will disrupt his ability to travel abroad, restrict his ability to meet with international drug trafficking associates, and hamper his ability to recruit new members—and will generate leads and intelligence for law enforcement,” he said.

Villegas-Palomino is 41 years old and has black hair and brown eyes. He is between 5’7” and 5’9” tall and weighs about 190 pounds. He is a Colombian national and speaks Spanish. Aliases include Carlos El Puerco (“Carlos the Hog”), El Puerco, Wilver Villegas, and Wilver Palomino. 

If you have any information concerning Villegas-Palomino, please contact the FBI via WhatsApp (neither a government-operated nor government-controlled platform) at (281) 630-0330. You can also contact your local FBI office or the nearest American Embassy or Consulate, or you can submit a tip online at tips.fbi.gov.

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Boston Marathon Bombing Anniversary

Source: US FBI

Large images of the victims were arrayed in a conference room last month at the Boston Field Office, along with a whiteboard agents used to sketch out their plans and the wanted posters that helped identify the suspects, brothers Dzhokhar and Tamerlan Tsarnaev. A moment of silence preceded the remembrance ceremony.

“It was important, first and foremost, to honor the victims,” said Joseph Bonavolonta, special agent in charge of the Boston Division.

But he also wanted to enlighten the office’s large cadre of young agents, analysts, and professionals—many not around 10 years ago—who may not fully appreciate the all-hands-on-deck response required in major cases like this.

“Internally, I wanted to give my personnel a real good idea, with some granularity, about what it means when a critical incident occurs,” he said, “what is expected of all of us to step up, and how we work toward a common goal.”

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Mount Vernon Native Sentenced to 11 Years in Prison for Orchestrating $7.6 Million COVID-19 Fraud Scheme

Source: US FBI

Jacob Carter Personally Received Over $1.7 Million in Kickbacks for Obtaining U.S. Small Business Administration Economic Injury Disaster Loans for Over 1,000 Applicants

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that JACOB CARTER, who led a scheme to defraud the U.S. Small Business Administration (“SBA”) of more than $7.6 million, was sentenced by U.S. District Judge Nelson S. Román to 11 years in prison.  CARTER and co-defendants Quadri Salahuddin and Anwar Salahuddin were convicted at trial on February 9, 2024, for conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.

Acting U.S. Attorney Matthew Podolsky said: “Jacob Carter took advantage of a taxpayer-funded program intended to help small businesses in desperate need during the COVID-19 pandemic.  Some small businesses that were eligible for and deserving of this money did not get it because funds ran out.  Carter used his ill-gotten gains for far more selfish pursuits, including expensive jewelry and a Lamborghini.  Thanks to the work of our law enforcement partners at the FBI and the career prosecutors of this Office, Carter has now received just punishment.”

According to the Indictment, publics filings, public court proceedings and filings, and the evidence presented at trial and in connection with sentencing:

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

From March through July 2020, CARTER and co-defendants Quadri Salahuddin, Anwar Salahuddin, and Crystal Ransom, used the identities of more than 1,000 other individuals (the “Applicants”) to submit more than 1,000 online applications to the SBA, seeking over $10 million of funds through the SBA’s EIDL Program (the “EIDL Applications”). In connection with the EIDL Applications, CARTER, Quadri Salahuddin, Anwar Salahuddin, and Ransom falsely represented to the SBA that the Applicants were the owners of businesses with 10 or more employees.  However, that was a lie – the individuals did not own businesses or employ people.  Based on the fraudulent EIDL Applications, the SBA made advance payments of more than $7.6 million to the Applicants, who then kicked back a portion of the advance payments to CARTER, Quadri Salahuddin, Anwar Salahuddin, and Ransom.  After the defendants collected millions of dollars in kickback payments, CARTER took photographs of his stacks of cash, purchased expensive jewelry, and leased a Lamborghini.

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In addition to the prison term, CARTER, 39, of Capitol Heights, Maryland, was sentenced to three years of supervised release.  CARTER was also ordered to pay restitution in the amount of $7,737,000 to the SBA and forfeiture in the amount of $1,720,950.

Ransom pled guilty to conspiracy to commit wire fraud and was sentenced on April 24, 2024, to two years in prison to be followed by three years of supervised release with the first six months under home confinement. The Court also ordered that Ransom pay restitution in the amount of $7,577,000 to the SBA and forfeiture in the amount of $99,000. Quadri Salahuddin and Anwar Salahuddin are scheduled to be sentenced on March 26, 2025.

Mr. Podolsky praised the outstanding work of the Federal Bureau of Investigation and the Air Force Office of Special Investigations.

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

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FBI Launches Stolen Art App

Source: US FBI

Claude Monet paintings. Stradivarius violins. Tiffany lamps.

Law enforcement agencies in the U.S. and around the world have submitted these to the FBI’s National Stolen Art File (NSAF), a database of stolen pieces of art and culturally significant property. The NSAF assists in law enforcement’s efforts to close cases and return pieces of art and property to their rightful owners.

Now, you can access that database in the palm of your hand using our new National Stolen Art File app.

“One of the biggest evolutions for NSAF was making it publicly available,” said Colleen Childers of the FBI’s Art Crime Program. “Now, with the new mobile upgrade that we’ve undergone, we want to continue to push to make it a more user-friendly platform.”

While the app was primarily created with law enforcement and art-industry partners in mind, anyone can use it to verify that art or antiquities they own or are looking to buy aren’t actually stolen property.

In the app, you can:

  • Search and filter stolen art by location, description, type of art, and more.
  • Display the information most relevant to you.
  • Save pieces of art to a favorites page and easily access them later.
  • Share stolen art entries via text, email, or social media.
  • Submit tips to the FBI directly from the app.

Download the app for free on the Apple App Store or on Google Play.

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USERT: Tools of the Trade

Source: US FBI

Light and Camera System

Lights and recording functions are controlled from the surface, and high-definition images are displayed on surface monitors. However, divers rarely use lights below the surface because particulate matter churned up from walking on the bottom diffuses any light.

Metal Detectors

Different sizes of underwater metal detectors allow divers to locate large and small objects.

Lift Bags

Divers are prohibited from lifting anything above 15 pounds by themselves. Lift bags inflate to lift objects as large and heavy as 2,000-pound vehicles. Bags are inflated either by divers or, for larger items, by surface-supplied air.