Indian National is Sentenced to Prison for $20 Million-Dollar Fraud Scheme Involving Fake Cryptocurrency Exchange Websites

Source: US FBI

CHARLOTTE, N.C. – A citizen of the Republic of India was sentenced to prison today for stealing more than $20 million from hundreds of victims through the use of fake or “spoofed” websites mimicking the cryptocurrency exchange website Coinbase, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell ordered Chirag Tomar, 31, to serve 60 months in prison followed by two years of supervised release.

Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.

According to filed court documents and today’s sentencing hearing, from as early as June 2021, Tomar and his co-conspirators engaged in a spoofing scheme to steal millions in cryptocurrency from hundreds of victims located worldwide and in the United States, including in the Western District of North Carolina. Spoofing, as it pertains to cybercrime, is when a malicious cyber actor disguises an email address, sender name, or website URL to convince victims they are interacting with a trusted source. Court documents show that Tomar and his co-conspirators executed the fraud by spoofing Coinbase, one of the largest virtual currency exchanges in the world, that allows customers to buy, sell or trade cryptocurrencies.

Coinbase operated a “Pro” version of its exchange, which was found at the URL “Pro.Coinbase.Com.” According to court documents, Tomar and his co-conspirators spoofed the Coinbase Pro website by using a similar fake URL, CoinbasePro.Com, and created a fraudulent website to mimic the authentic website. Once victims entered their login credentials into the fake website, an authentication process was triggered. In some instances, victims were tricked into providing their login and authentication information of the real Coinbase website to fraudsters. Other times, victims were tricked into allowing fake Coinbase representatives to execute remote desktop software, which enabled fraudsters to gain control of victims’ computers and access their legitimate Coinbase accounts. The fraudsters also impersonated Coinbase customer service representatives and tricked the users into providing their two-factor authentication codes to the fraudsters over the phone. Once the fraudsters gained access to the victims’ Coinbase accounts, the fraudsters quickly transferred the victims’ Coinbase cryptocurrency holdings to cryptocurrency wallets under the fraudsters’ control.

Court documents show that, in February 2022, a victim located in the Western District of North Carolina attempted to log into his Coinbase account through the fraudulent website. The spoof website immediately notified the victim that his account was locked and prompted the victim to use a number provided to call a fake Coinbase representative. The fake representative tricked the victim into providing his two-factor authentication information, ultimately gaining access into the victim’s real Coinbase account. Using the information, fraudsters stole cryptocurrency from the victim’s Coinbase wallet worth over $240,000.

According to court records, Tomar used the victims’ stolen log-in credentials to access the victim accounts and transfer the victims’ cryptocurrency holdings to wallets controlled by Tomar. After Tomar received the stolen cryptocurrency, he would convert it to other forms of cryptocurrency and move the funds amongst many wallets controlled by Tomar. Ultimately, the cryptocurrency was converted into cash which was then distributed to Tomar and his co-conspirators.

Tomar used the victims’ funds to pay for his lavish lifestyle, including to purchase Audemars Piguet and other expensive watches, to buy luxury vehicles like Lamborghinis and Porsches, and to make trips to Dubai, Thailand and elsewhere.

On December 20, 2023, Tomar was arrested at the Atlanta airport upon entering the United States. On May 20, 2024, Tomar pleaded guilty to wire fraud conspiracy. Tomar remains in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. 

U.S. Attorney King commended the U.S. Secret Service for their investigation of the case and thanked the FBI in Nashville for their invaluable assistance.

Assistant U.S. Attorney Matthew T. Warren of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

 

DOJ Establishes Local Contacts for November 2024 Election

Source: US FBI

GREENSBORO, NC – United States Attorney Sandra J. Hairston for the Middle District of North Carolina announced today that Assistant United States Attorney (AUSA) JoAnna McFadden will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election.  AUSA McFadden has been appointed to serve as the District Election Officer (DEO) for the Middle District of North Carolina, and in that capacity is responsible for overseeing the district’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

“Free and fair elections require that every eligible citizen must be able to vote without interference or discrimination, and election officials and staff must be able to serve without being subject to unlawful threats of violence,” said United States Attorney Hairston. “The Department of Justice will always work tirelessly to protect the integrity of the election process. We all must ensure that those who are entitled to vote can do so if they choose, and that those who seek to corrupt the voting franchise –the cornerstone of American democracy – are brought to justice.”

The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud.  The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice.  The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).   

In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO McFadden will be on duty in this District while the polls are open.  She can be reached by the public at the following telephone number: 336-332-6362.

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.  The local FBI office can be reached by the public at (704) 672-6100 and callers should ask to speak with the Election Crimes Coordinator.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.

United States Attorney Hairston said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate.  It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”

Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities.  State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

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Charlotte Man is Sentenced to Prison for $700,000 Investment Fraud Scheme

Source: US FBI

CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Frank Lynold Mercado, 27, of Charlotte, to 41 months in prison followed by two years of supervised release for defrauding over 100 victims of more than $700,000 through a fraudulent investment scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Mercado was also ordered to pay $709,690 in restitution.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.

According to court documents and court proceedings, from July 2019 to December 2022, Mercado executed an investment fraud scheme in which he caused more than 100 investors to sustain nearly $700,000 in losses. Mercado induced the victims – many of whom were his friends, former co-workers, and other social acquaintances – to invest their money by holding himself out to be an expert in options trading with years of experience and a successful track record. As part of the scheme, Mercado falsely represented to victim investors that he would use their money for options trading and similar investments through his hedge fund, Tiger-Wolf Capital, LLC (Tiger-Wolf Capital). Instead of investing the funds as promised, Mercado used a portion of the money to make Ponzi-style payments to investors, and to fund his personal lifestyle, including to make large credit card payments and pay for personal expenditures such as Airbnb rentals, restaurants, and bars.

Court documents show that with the money that he did invest, Mercado suffered trading losses and then lied to investors about the performance of their investments. For example, Mercado periodically sent updates to victim investors through emails, text messages, or screenshots of purported account portals that reflected fictitious trading gains. He also made false and fraudulent statements to investors about substantial returns on their investments in order to induce his victims to invest additional money with him and/or to leave their current investments with him. According to court documents, as a result of the scheme, Mercado caused victims to suffer losses, with some victims experiencing significant financial hardship.

On June 12, 2022, Mercado pleaded guilty to wire fraud. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.

On May 30, 2024, the U.S. Securities and Exchange Commission announced the filing of a complaint against Mercado in the U.S. District Court for the Western District of North Carolina, charging Mercado and Tiger-Wolf Capital with securities violations.  On July 2, 2024, the court, pursuant to consents signed by Mercado and Tiger-Wolf, enjoined them from violating the charged provisions and ordered them to pay disgorgement, prejudgment interest, and civil money penalties in amounts to be determined at a later date.  The court also barred Mercado from serving as officer or director of a public company and enjoined him from participating in the issuance, purchase, offer, or sale of securities, except in his personal account.

U.S. Attorney King commended the FBI for their investigation of the case and thanked the U.S. Securities and Exchange Commission for their coordination and assistance.

Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte prosecuted the case. 

Two Sampson County Men Indicted Following October 2023 Murder of Five

Source: US FBI

RALEIGH, N.C. – United States Attorney Michael F. Easley, Jr., is announcing federal charges against two men arising from the murders of five people in a Sampson County house in October 2023. The indictment alleges that the two are responsible for the murders.

In a superseding indictment returned on August 27, 2024, a federal grand jury charged Robert Andrew Daquan Williams, aka “Double Tap, Drew and TTG,” age 31, and Derek George, aka “Pete,” age 35, with drug distribution and robbery charges. The superseding indictment also alleges possession of a firearm to further the drug and robbery charges and that the firearm was discharged resulting in the murder of five victims.

Williams and George are each charged with one count of conspiracy and possession with intent to distribute cocaine and cocaine base (crack), one count of conspiracy to commit a Hobbs Act Robbery, one count of Hobbs Act robbery, and one count of discharging a firearm in furtherance of a drug trafficking crime. Williams also faces one count of possession of a firearm by a felon. A third individual named in the indictment is charged with illegal gun possession but is not currently facing charges related to the murders.

If convicted, Williams and George face punishment up to and including the death penalty. Williams has been in custody since November 9, 2023. George was arrested following the federal indictment and remains in custody.

“The charges brought in this case demonstrate the partnership between local, state and federal law enforcement to investigate and prosecute individuals believed to be contributing to violence in our communities,” said U.S. Attorney Michael F. Easley, Jr. “In this case, a combination of old-fashioned police work and community tips led to the identification and ultimate arrest of those that are alleged to have caused this act of violence. We will continue to work together to ensure the safety of our communities and to ensure justice for those that perpetrate violent criminal activity.”

“Five people were taken from their families by this crime which impacted the entire community. We hope these federal charges can bring some sense of peace and justice for everyone affected,” said Robert M. DeWitt, the Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina.

“Too many lives were lost in another case of senseless violence,” said Bureau of Alcohol, Firearms Tobacco and Explosives (ATF) Special Agent in Charge Bennie Mims. “This incident has had a major impact on the community, and it is important that ATF and our partners apply every resource available to identify, apprehend and bring the individuals who are alleged to be responsible for this terrible crime to justice.”

“As the sheriff of Sampson County, it is my responsibility to use every resource available to help keep the residents of Sampson County safe,” said Sampson County Sheriff Jimmy Thornton. “I greatly appreciate all the people and agencies that have assisted in this investigation.”

The Sampson County Sheriff’s Office, the Clinton Police Department, the FBI, the ATF, the U.S. Marshal’s Service, and the N.C. State Bureau of Investigation are investigating the case and Assistant U.S. Attorneys Tyler Lemons  and Casey Peaden are prosecuting the case. This is an ongoing investigation. If any person has information related to these crimes, please contact the Sampson County Sheriff’s Office at 910-592-4141 or the FBI.

This investigation was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for 7:24-CR-00013-D-BM.

An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.

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Global Cryptocurrency Exchange BitMEX Fined $100 Million for Violating Bank Secrecy Act

Source: US FBI

Company Willfully Flouted U.S. Anti-Money Laundering Laws to Boost Revenue

Matthew Podolsky, Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515, announced that HDR GLOBAL TRADING LTD., a/k/a “BITMEX”, was sentenced today to a fine of $100 million for violating the Bank Secrecy Act by willfully failing to establish, implement, and maintain an adequate anti-money laundering (“AML”) and know-your-customer (“KYC”) program.

Attorney for the United States Matthew Podolsky said:  “Anti-money laundering and know-your-customer rules protect Americans from fraud, combat money laundering, and prevent the financing of terrorist activity.  It is critical that all financial institutions, including cryptocurrency exchanges, comply with these rules to protect our country’s economy and national security.  Today’s sentence sends a clear message that companies that willfully violate these rules and refuse to implement AML/KYC programs will face consequences.”   

According to the allegations in the Information and other filings and statements made in court:

Arthur Hayes, Benjamin Delo, and Samuel Reed founded BITMEX in or about 2014, and Gregory Dwyer became BITMEX’s first employee in 2015 and later its Head of Business Development.  BITMEX, which has long serviced and solicited business from U.S. traders and operated through U.S. offices, was required to register with the Commodity Futures Trading Commission (“CFTC”) and to establish and maintain an adequate AML program.  AML programs ensure that financial institutions, such as BITMEX, are not exploited for illicit purposes and serve to protect the integrity of the U.S. financial system and national security more broadly.

BITMEX and its executives knew that because BITMEX served U.S. customers, it was required to implement an AML program that included a KYC component but chose to flaunt those requirements, requiring only that customers provide an email address to use BITMEX’s services.  Indeed, senior executives each knew that customers residing in the U.S. continued to access BITMEX’s trading platform through at least in or about 2018, and that BITMEX policies nominally in place to prevent such trading were toothless or easily overridden to serve BITMEX’s bottom line goal of obtaining revenue through the U.S. market without regard to U.S. criminal laws.  Corporate executives took affirmative steps purportedly designed to exempt BITMEX from the application of U.S. laws like AML and KYC requirements, despite knowing of BITMEX’s obligation to implement such programs by operating in the U.S.  As part of BITMEX’s willful evasion of U.S. AML laws, the company lied to a bank about the purpose and nature of a subsidiary to allow BITMEX to pump millions of dollars through the U.S. financial system.

Hayes, Delo, and Reed, BITMEX’s three founders and top executives, and Dwyer, another top executive, all previously entered guilty pleas for violating the Bank Secrecy Act and were sentenced in 2022.  The corporation entered a guilty plea on July 10, 2024, and was sentenced today.

*                *                *

In addition to the fine, BITMEX was sentenced to two years’ probation.       

Mr. Podolsky praised the outstanding investigative work of the Federal Bureau of Investigation’s New York Money Laundering Investigation Squad.

The prosecution is being handled by the Office’s Illicit Finance & Money Laundering Unit.  Assistant U.S. Attorneys Jessica Greenwood and Thane Rehn are in charge of the prosecution. 

Five People Charged with Gun-Point Home Invasion Robbery That Involved Zip Tying Two Victims in Front of Their Children

Source: US FBI

Edward Y. Kim, 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 a Complaint charging BHUPINDERJIT SINGH, ELIJAIH ROMAN, COREY HALL, ERIK SUAREZ, and DIVYA KUMARI with perpetrating a gun-point home invasion robbery of the home of a small business owner in Orange County, New York.  The defendants were arrested today, and will be presented in White Plains federal court before the Hon. Victoria Reznik, United States Magistrate Judge.

Acting U.S. Attorney Edward Y. Kim said: “Bhupinderjit Singh and his co-defendants allegedly planned and executed a violent robbery, during which four children watched as their parents were zip tied and held at gunpoint while four men ransacked their home looking for money and valuables.  Thanks to the hard work of our law enforcement partners and the career prosecutors of this Office, the defendants will now face charges stemming from this brazen robbery.”

FBI Assistant Director in Charge James E. Dennehy said: “These five defendants participated in a robbery in which a firearm was brandished to gain unauthorized entry into a family’s home and steal valuable jewelry and thousands of dollars. This alleged forceful intrusion violated the privacy and security expected inside one’s home, and terrorized four young children left to helplessly beg for the safety of their restrained parents. The FBI will continue to apprehend any individual who utilizes weapons to intimidate victims to fulfill their criminal agenda.”

As alleged in the Complaint filed on January 15, 2025, in White Plains federal court and unsealed today:

On or about December 1, 2024, SINGH, ROMAN, HALL, SUAREZ, and KUMARI perpetrated a gun-point home invasion robbery in the vicinity of the Town of Wallkill, New York.  When they arrived at the house, SINGH, ROMAN, HALL, and SUAREZ forced the homeowner (“Victim-1”) and Victim-1’s daughter, who is approximately 10 years old, into the house at gunpoint.  When SINGH, ROMAN, HALL, and SUAREZ entered the home, Victim-1’s wife was sitting with the couple’s other three children, who ranged from approximately two to nine years old.  SINGH, ROMAN, HALL, and SUAREZ then zip tied the hands and legs of both Victim-1 and his wife and placed the couple on the couch next to their children.  Three of the four robbers then began to search throughout the house, while the fourth robber remained with Victim-1 and his family, armed with what appeared to be a small black pistol.  At one point, Victim-1’s daughter begged the robbers to not hurt her parents and indicated that she would tell them where the family stored their valuables.  Certain of the robbers then took Victim-1’s daughter to the house’s master bedroom where there was a safe, but Victim-1’s daughter was unable to get the safe open.  The robbers then took Victim-1’s daughter back to her parents and forced Victim-1’s wife to come with them instead.  Once in the bedroom, Victim-1’s wife opened the safe and watched as the robbers removed from it, among other items, numerous pieces of jewelry and approximately $10,000 in U.S. currency.  While the robbery was ongoing, KUMARI was waiting in the vicinity of Victim-1’s house to act as a lookout.  Eventually, SINGH, ROMAN, HALL, and SUAREZ left Victitm-1’s house with various stolen items, including the jewelry and U.S. currency stolen from the safe. 

*               *                *

SINGH, 26, of South Ozone Park, New York; ROMAN, 22, of Far Rockaway, New York; HALL, 45, of Saint Albans, New York; SUAREZ, 24, of Elmhurst, New York; and KUMARI, 26, of Massapequa, New York, are all charged with one count of Hobbs Act robbery conspiracy, which carries a maximum sentence of 20 years in prison, and one count of Hobbs Act robbery, which carries a maximum sentence of 20 years in prison.  SINGH, ROMAN, HALL, and SUAREZ are additionally charged with one count of using, carrying, possessing, and brandishing a firearm in furtherance of a crime of violence, which carries a maximum sentence of life in prison.

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

Mr. Kim praised the outstanding investigative work of the FBI’s Hudson Valley Safe Streets Task Force, as well as the assistance of the Town of Wallkill Police Department and the New York State Police.

The case is being handled by the Office’s White Plains Division.  Assistant U.S Attorney David A. Markewitz 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.

Member of Five-Nine Brims Street Gang Sentenced to Life in Prison for Retaliatory Gang Murder

Source: US FBI

Defendant Shot and Killed Victim in Broad Daylight in a Residential Brooklyn Neighborhood

Earlier today, in federal court in Brooklyn, Marvin Pippins, also known as “Mukk,” was sentenced by United States District Judge Pamela K. Chen to life imprisonment for murdering a rival gang member by shooting at him six times.  Following a three-week trial in April 2023, Pippins was convicted by a federal jury of racketeering conspiracy, murder conspiracy, murder in-aid-of racketeering, drug conspiracy and related firearms charges.  Pippins was also sentenced today to a concurrent term of 30 years for racketeering conspiracy and to a consecutive term of five years in prison for unlawful possession of a firearm, among other things.

Carolyn Pokorny, Acting United States Attorney for the Eastern District of New York and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.

“Marvin Pippins will deservedly spend the rest of his life in prison for this cold-blooded murder, undertaken in service of a years-long gang war,” stated Acting United States Attorney Pokorny. “Pippins committed predatory and deadly crimes on behalf of a violent street gang that, for years, polluted the streets with drugs, preyed on unsuspecting victims of financial fraud and subjected rivals and innocent civilians alike to acts of violence.  My Office is focused on dismantling violent criminal organizations, and today’s sentence should send a message that the most serious of crimes will be met with the most serious of consequences.”

Ms. Pokorny expressed her appreciation to the New York City Police Department for their outstanding work on this investigation.

“In 2015, Marvin Pippins, a 5-9 Brims gang member, ruthlessly murdered a rival associate in a twisted attempt to restore the gang’s honor and thwart future attacks,” stated FBI Assistant Director in Charge Dennehy.  “Pippins’ myriad of crimes strengthened the gang’s presence across Brooklyn and fueled persisting territorial disputes. May today’s lifelong sentence reflect the FBI’s renowned commitment to disrupting all criminal enterprises plaguing our city with violence and illicit substances.”

Between 2012 and 2020, Pippins was a member of the 5-9 Brims—a violent set of the Bloods street gang, responsible for sophisticated fraud schemes, prolific narcotics trafficking and violent crimes, including gunpoint robberies, shootings and murders. This crew of 5-9 Brims was also known as “Breadgang.” Pippins and his fellow members operated principally in and around the Marlboro Houses in the Gravesend section of Brooklyn.   Pippins personally engaged in a broad array of criminal activity and earned a reputation as a “shooter” and as someone who generated money for the gang.  He participated in financial fraud on behalf of the gang, sold drugs and carried guns to protect the gang’s criminal rackets. Pippins was also convicted of several crimes related to the gang’s violent rivalry with “Real Ryte,” a Canarsie-based rival crew.  In September 2015, the defendant’s brother Melvin Pippins, also known as “Melly,” was murdered. The defendant and his fellow gang members blamed Real Ryte for the murder, and there was an “expectation” that members of the 5-9 Brims would retaliate against Real Ryte with violence. On December 19, 2015, Pippins murdered Sean Peart, a member of Real Ryte, while the victim was alone and unarmed in his parked car on Dean Street outside the Weeksville Gardens housing development.  Peart tried to speed away but crashed his car before succumbing to his injuries.  After the murder, Pippins bragged to fellow members and associates of the gang admitting that he “did boy dirty.”  In rap lyrics, the defendant described Peart’s murder in detail, including references to the victim “hanging out the window” and giving him “shot after shot.”

The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States  Attorneys Lindsey R. Oken and Dana Rehnquist are in charge of the prosecution, with assistance from Assistant United States Attorneys Nicholas J. Moscow and Drew G. Rolle.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

The Defendant:

MARVIN PIPPINS (also known as “Mukk”)
Age: 34
Brooklyn, New York

E.D.N.Y. Docket No. 19-CR-378 (PKC)

High-Ranking MS-13 Gang Member Pleads Guilty to Seven Murders, Multiple Attempted Murders, Arson and Firearms Offenses

Source: US FBI

Earlier today, in federal court in Central Islip, Jairo Saenz, also known as “Funny,” a high-ranking member of the Brentwood/Central Islip chapter of the Sailors Locos Salvatruchas Westside (Sailors) clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty to racketeering charges in connection with his participation in seven murders, namely, the January 28, 2016 murder of Michael Johnson; the April 29, 2016 murder of Oscar Acosta; the September 13, 2016 murders of Kayla Cuevas and Nisa Mickens; the October 10, 2016 murder of Javier Castillo; the October 13, 2016 murder of Dewann Stacks; and the January 30, 2017 murder of Esteban Alvarado-Bonilla.  Saenz also pleaded guilty to his participation in three attempted murders, arson, narcotics trafficking, firearms offenses and a conspiracy to kill Marcus Bohannon, who was murdered on September 5, 2016 by other members of the MS-13.

Today’s guilty plea proceeding was held before United States District Judge Gary R. Brown.  When sentenced, Jairo Saenz faces up to 60 years in prison, and a minimum sentence of 40 years in prison under the terms of his plea agreement. 

Carolyn Pokorny, Acting United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Robert E. Waring, Acting Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea.

“Today, Jairo Saenz pleaded guilty to seven murders that can only be described as barbaric, and multiple acts of senseless gang violence that had turned parts of Long Island into a war zone, with MS-13 gang members wielding guns, machetes, bats and fire that threatened the safety of our communities,” stated Acting United States Attorney Pokorny.  “I commend my Office’s prosecutors and the Long Island Gang Task Force who are committed to holding MS-13 gang members accountable for the crimes they have committed and harm they have caused.  It is my sincere hope that today’s guilty plea brings some measure of solace and closure to the families of the defendant’s victims who continue to mourn the deaths of their loved ones.”

According to court filings and statements made during today’s guilty plea proceeding, Jairo Saenz was a high-ranking member of the Brentwood/Central Islip chapter of the Sailors clique of the MS-13 – one of the more powerful, violent and well-established cliques on the East Coast of the United States.  At the time, he was second in command to his brother, Alexi Saenz, who pleaded guilty to the same crimes on July 10, 2024.  Jairo Saenz committed the following crimes in order to maintain and increase his membership and status within the gang, and to further the mission of the MS-13:

January 28, 2016 Murder of Michael Johnson

On January 28, 2016, Alexi Saenz and other MS-13 members and associates were at the Jocorena Deli in Brentwood, where they saw 29-year-old Michael Johnson, and claimed to recognize him as a member of the rival Bloods street gang.  At that point, Johnson was marked as their “food” – a reference to their intention to kill him. 

After receiving the requisite approval from the New York leader of the Sailors clique to commit this murder, Alexi Saenz contacted Jairo Saenz and several other MS-13 members, informed them of the plan to kill Johnson and instructed them to bring weapons, including a machete and a baseball bat, to a wooded area in Brentwood.  Alexi Saenz then lured Johnson to that secluded meeting location under the guise of smoking marijuana.  The MS-13 members and associates, including Jairo Saenz, ambushed Johnson from behind – striking Johnson with the baseball bat, stabbing him with a knife and taking turns hacking him with the machete.  They fled after hearing police sirens in the area.   

Johnson was reported missing by family members.  Less than one week after his murder, on February 2, 2016, members of the SCPD responded to a 911 call about a body found in the woods by a passerby and recovered Johnson’s body.  An autopsy determined Johnson’s cause of death to be sharp and blunt force injuries.   

April 29, 2016 Murder of Oscar Acosta

In early 2016, Alexi Saenz, Jairo Saenz and their fellow Sailors clique members decided to “green light,” or approve, the murder of 19-year-old Oscar Acosta because they suspected that he was associating with the rival 18th Street gang after previously aligning himself with the MS-13.  The New York Sailors clique leader assigned roles as to which members would take the lead in planning and carrying out the murder. 

On April 29, 2016, MS-13 members met Acosta in a wooded area near an elementary school in Brentwood where he had been lured under the guise of smoking marijuana.  They brutally beat Acosta with tree limbs, knocking him unconscious. They bound Acosta’s hands and feet, wrapped an article of clothing around his mouth to prevent him from making noise and summoned other MS-13 members, including Alexi Saenz and Jairo Saenz, who arrived together.  The MS-13 members loaded Acosta into the trunk of the Saenz brothers’ car, and drove to a more secluded area in Brentwood near the abandoned Pilgrim State Psychiatric Hospital.  At the direction of Alexi Saenz, the MS-13 members removed Acosta, who was still alive, from the trunk and carried him deeper into the woods where they took turns hacking him to death with a machete.  The murder was supervised by the Saenz brothers.  The MS-13 members then buried Acosta’s body in a shallow grave. 

Acosta’s body was discovered by law enforcement nearly five months later, on September 16, 2016, during a search for another MS-13 victim.  His cause of death was homicidal violence, including sharp and blunt force injuries to his head and torso.

July 18, 2016 Attempted Murders of John Doe #1 and John Doe #2

On July 18, 2016, during a Sailors clique meeting at the Saenz brothers’ house in Central Islip, Alexi Saenz instructed the group to hunt for rival gang members who had been disrespectful to the MS-13, in order to attack and kill them.

Later that evening, Jairo Saenz and other members of the MS-13, who were driving around Brentwood armed with firearms and a machete, spotted a group of men on Apple Street.  Believing these men to be members of a rival gang, three MS-13 members got out of the car driven by Jairo Saenz and attacked the group, firing rounds from two different guns, and then using a machete to hack at one of the men who had fallen to the ground.

Two individuals were injured as a result of this attack.  John Doe #1 was struck with a bullet, but survived.  John Doe #2 was attacked with a machete, and was permanently disfigured.

August 10, 2016 Attempted Murders of Suspected Rival Gang Members

In 2016, members of the MS-13 were engaged in a series of disputes with members of the Goon Squad, a rival gang in Brentwood. 

On August 10, 2016, Alexi Saenz and another MS-13 member drove through the neighborhood around Lukens Avenue in Brentwood, and spotted several men who they believed were members of the Goon Squad.  They then rallied other members of the Sailors clique, including Jairo Saenz, to come kill the rivals. 

The MS-13 members divided into two vehicles and drove towards the house where the suspected Goon Squad members had been spotted. The Saenz brothers’ car kept watch for the police, while two other MS-13 members, each armed with a gun, approached the group of suspected rivals and fired numerous shots in their direction. No one was hit, although a stray bullet entered a neighbor’s house and struck the headboard of a bed in which the neighbor was sleeping.

September 5, 2016 Murder of Marcus Bohannon

On September 4, 2016, after a Sailors clique meeting at the Saenz brothers’ house in Central Islip, Jairo Saenz, Alexi Saenz and other MS-13 members went out hunting for rival gang members to kill.

The MS-13 members separated into several cars and drove around Central Islip and Brentwood, until Alexi Saenz’s group spotted 27-year old Marcus Bohannon walking along Lowell Avenue in Central Islip in the early morning hours of September 5.  Suspecting that Bohannon was a member of the rival Bloods gang, two MS-13 members, carrying firearms, got out of the vehicle, approached him and started shooting.  Bohannon was struck nine times, including in his head, neck, and chest, and died from his wounds.

September 12, 2016 Arson

During the summer of 2016, Sailors clique members of the MS-13 were regularly having altercations with local gang members based in a neighborhood on Freeman Avenue in Brentwood.

On September 12, 2016, the MS-13 members retaliated by setting fire to a car parked in the driveway of one of the houses in that rival gang neighborhood.  Alexi Saenz directed other gang members to purchase gasoline and carry out the arson, while he drove around watching for police. Jairo Saenz drove the other MS-13 gang members to that house, where they poured gasoline on a car parked in the driveway, and set it on fire.  The car exploded and set another parked car on fire.   

September 13, 2016 Murders of Kayla Cuevas and Nisa Mickens

On September 13, 2016, Sailors clique members brutally murdered 15-year-old Nisa Mickens and 16-year-old Kayla Cuevas, both students at Brentwood High School.

In the months leading up to the murders, Cuevas was involved in a series of disputes with members and associates of the MS-13.  Approximately one week before the murders, these disputes escalated when Cuevas and several friends were involved in an altercation with MS-13 members at Brentwood High School.  After that incident, the MS-13 members vowed to seek revenge against Cuevas.

On the evening of September 13, 2016, the Saenz brothers and other members of the Sailors clique of the MS-13 were driving in separate cars around Brentwood in search of rival gang members to attack and kill.  One group of MS-13 members spotted Cuevas and Mickens walking down residential Stahley Street.  Recognizing Cuevas, they called the Saenz brothers and were granted permission to kill the girls.  Several MS-13 members then chased down and attacked both Cuevas and Mickens, wielding baseball bats and a machete, striking each of the girls numerous times in their heads and bodies, while the Saenz brothers’ car drove around watching for police.  After the murders, the group retreated to the Saenz brothers’ home in Central Islip, where they changed clothes and hid the weapons.   

Mickens, whose body was discovered later that evening on Stahley Street, not far from Cuevas’s home, sustained significant sharp force trauma to her face and blunt force trauma to her head.  Cuevas, whose body was discovered the following day behind a house adjacent to where Mickens’s body was found, sustained significant blunt force trauma to her head and body and multiple lacerations.

October 10, 2016 Murder of Javier Castillo

In October 2016, the MS-13 targeted 15-year-old Javier Castillo because he was believed to be a member of the 18th Street gang, one of MS-13’s principal rivals. 

On October 10, 2016, Jairo Saenz and other members of the Sailors clique convinced Castillo, who lived in Central Islip, to drive with them to Freeport – approximately 30 miles away – to smoke marijuana.  Once there, they met Alexi Saenz and other Sailors clique members.  The group then lured Castillo to an isolated marsh area in Cow Meadow Park, where they attacked him, taking turns hacking him to death with a machete. 

Afterwards, the MS-13 members dug a hole and buried Castillo’s body, which was not recovered until one year later, in late October 2017.  Castillo was determined to have suffered multiple sharp force injuries to his head, neck, torso and extremities.

October 13, 2016 Murder of Dewann Stacks

On the evening of October 13, 2016, the Saenz brothers and other members of the Sailors clique of MS-13 were driving around Central Islip and Brentwood in search of rival gang members to attack and kill.

That night, they spotted 34-year-old Dewann Stacks and, believing him to be a rival gang member, Alexi Saenz authorized his murder.  While Alexi Saenz drove around watching for police presence, Jairo Saenz drove three MS-13 members, armed with two machetes and a baseball bat, to attack Stacks.  The three armed MS-13 members got out of the car, and beat and hacked Stacks to death on American Boulevard, a residential street in Brentwood.  Stacks sustained severe sharp and blunt force trauma to his face and head, leaving his body nearly unrecognizable.

January 30, 2017 Murder of Esteban Alvarado-Bonilla

On the morning of January 30, 2017, Alexi Saenz and other members of the Sailors clique of MS-13 spotted 29-year-old Esteban Alvarado-Bonilla inside El Campesino Deli in Central Islip.  Alvarado-Bonilla was wearing a football jersey bearing the number “18,” which led the MS-13 to conclude that he was a member of a rival gang, and they plotted to kill him.

After Alvarado-Bonilla was observed in the Deli, Jairo Saenz drove MS-13 members to get a mask and another vehicle, both of which would be used when committing the murder.  Alexi Saenz provided the clique’s 9-millimeter handgun for use in the murder.

At approximately 10:30 a.m., a masked MS-13 member entered the deli, approached Alvarado-Bonilla from behind, and shot him multiple times, killing him.  One of the bullets pierced through Alvarado-Bonilla’s head and struck the chest of a female employee of the deli, who was standing directly in front of him.  The deli employee survived the gunshot wound.   

Narcotics Trafficking Conspiracy

For a year and a half, from approximately April 2016 through March 2017, in order to finance the illegal operations of the Sailors clique, the Saenz brothers obtained wholesale quantities of cocaine and marijuana, which they distributed to other Sailors clique members and associates for street-level sales in Brentwood and its surrounding areas.  After the sales, the profits were turned over to the Saenz brothers, for use in, among other things, purchasing firearms for use by clique members, wiring money to MS-13 leaders in El Salvador and buying additional narcotics for further distribution.     

Today’s guilty plea is the latest achievement in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization.  The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States.  With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island.  Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults.  Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 70 murders in the Eastern District of New York, resulting in the convictions of dozens of MS-13 leaders and members in connection with those murders.  These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.  OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorneys John J. Durham, Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution, with the assistance of Paralegal Specialist Kerry Ucci and Automated Litigation Specialist Michael Compitello.

The Defendant:

JAIRO SAENZ (also known as “Funny”)
Age: 28
El Divisadero, Morazán, El Salvador; and Central Islip, New York

E.D.N.Y. Docket No. 16-CR-403 (S-8)(GRB)

Former Corrections Officer Pleads Guilty to Accepting Bribes in Exchange for Smuggling Narcotics Into Rikers Island

Source: US FBI

Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, announced that GHISLAINE BARRIENTOS, a former corrections officer, pled guilty today to bribery in connection with her participation in a scheme to accept bribes in exchange for smuggling narcotics into Rikers Island.  BARRIENTOS pled guilty before U.S. District Judge Gregory H. Woods and is scheduled to be sentenced on April 16, 2025.

Acting U.S. Attorney Edward Y. Kim said: “Ghislaine Barrientos took bribes when working as a corrections officer at Rikers Island.  Rikers Island is less safe, for inmates and officers alike, when corrections officers and others in positions of public trust accept bribes to smuggle contraband.  We will not tolerate any breach of trust or corruption that jeopardizes the well-being of inmates and staff.”

As reflected in the Complaint, Information, and statements made in court:

BARRIENTOS, a former New York City Department of Correction (“DOC”) correction officer, conspired with others to smuggle contraband, including cocaine, smokeable synthetic cannabinoids (known as “K2”), and food to inmates housed at the Robert N. Davoren Complex on Rikers Island in exchange for thousands of dollars in bribe payments.

For example, on April 11, 2024, CC-1, an associate of an inmate (“Inmate-1”), and BARRIENTOS discussed CC-1 sending BARRIENTOS a package through a delivery service.  On April 15, 2024, surveillance footage showed BARRIENTOS entering Inmate-1’s cell, where surveillance footage could not capture her actions.  Two days later, DOC searched Inmate-1’s cell and recovered sheets of paper that tested positive for the presence of cocaine.

On April 24, 2024, CC-1 sent BARRIENTOS another package using the delivery service.  When BARRIENTOS went to work later that day, a drug-detecting canine alerted for the presence of narcotics.  DOC employees searched BARRIENTOS’s belongings and found approximately 10 sheets of paper that tested positive for the presence of K2.  In an interview with law enforcement, BARRIENTOS falsely stated, among other things, that no inmate had ever asked her to bring them contraband.  Law enforcement officers then searched BARRIENTOS’s vehicle and recovered additional sheets of paper, as well as approximately $2,466 in cash, as shown in the following photographs:

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BARRIENTOS, 37, of Mount Vernon, New York, pled guilty to one count of conspiracy to commit federal program bribery, which carries a maximum sentence of five years in prison.

The statutory maximum 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 the judge.

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

This case is being handled by the Office’s Public Corruption and Narcotics Units.  Assistant U.S. Attorney Jeffrey Coyle is in charge of the prosecution.

New York Men Arrested on Felony and Misdemeanor Charges for Actions During January 6 Capitol Breach

Source: US FBI

            WASHINGTON — Two men from New York were arrested on Aug. 14, 2024, on felony and misdemeanor charges related to their alleged conduct during the Jan. 6, 2021, breach of the U.S. Capitol. Their alleged actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

            Charles E. Schimmel, 53, and Logan Schimmel, 23, both of Prattsburgh, New York, are charged in a criminal complaint filed in the District of Columbia with a felony offense of obstruction of law enforcement during a civil disorder and misdemeanor offenses of entering or remaining in a restricted building or grounds, disorderly or disruptive conduct in a restricted building or grounds, disorderly conduct in a Capitol building or grounds, and parading, demonstrating, or picketing in a Capitol building.

            The FBI arrested the Schimmels on Aug. 14, 2024, and they made their initial appearance in the Western District of New York.

            According to court documents, on Jan. 6, 2021, the Schimmels attended the “Stop the Steal” rally at the Ellipse in Washington, D.C., and afterward made their way toward the U.S. Capitol building, arriving at the Northwest Capitol stairs near the Inauguration scaffolding. Open-source video footage depicts the Schimmels at the front of a crowd of rioters, fighting and shoving against a police line.

            As the crowd pushed against the police line, the line moved backward. Eventually, the crowd cut open the exterior canvas of the Inaugural scaffolding, and the crowd, including the Schimmels, began to climb through the scaffolding and up the Northwest Capitol stairs. It is alleged that the Schimmels then aided the crowd of rioters in pushing past police officers on the stairs, surging past fallen barricades. Court records say that Charles Schimmel grabbed a U.S. Capitol Police bicycle and moved it away from the crowd of rioters.

            It is alleged that the Schimmels were among the first rioters inside the Capitol building, entering at about 2:14 p.m., approximately one minute after rioters had kicked down and smashed the Senate Wing Door and adjoining windows. Once inside, the Schimmels made their way to multiple locations inside the Capitol, including the Crypt, Rotunda, Speaker of the House office suite, Senate Minority Leader office suite, East Foyer, and Senate Wing hallway before exiting the building at about 3:14 p.m.

            Court documents say that the Schimmels and other rioters remained on Capitol grounds for nearly two hours after leaving the building. At about 4:49 p.m., the Schimmels allegedly were present on the Northwest stairs as police officers formed a line in an attempt to clear the area of rioters. As the police line approached the Schimmels, the two men allegedly leaned backward against police riot shields in order to resist the advancement of the officers.  

            It is alleged that the Schimmels ignored repeated commands from police to move back and instead continued to push against the line. Eventually, at about 4:55 p.m., police succeeded in moving the crowd, including the Schimmels, down the stairs and away from the building. At about 4:58 p.m., the Schimmels again allegedly stopped and leaned their bodies back against the police line. Court documents say that the Schimmels were among the last rioters to leave the area.

            This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Western District of New York.

            The case is being investigated by the FBI’s Buffalo and Washington Field Offices. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.

            In the 43 months since Jan. 6, 2021, more than 1,488 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including nearly 550 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.

            Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

            A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.