MIL Security Engine-1

Source: US FBI

Santos Filed Fraudulent FEC Reports, Embezzled Funds from Campaign Donors, Stole Identities, Charged Credit Cards Without Authorization, Obtained Unemployment Benefits Through Fraud, and Lied in Reports to the U.S. House of Representatives

Source: US FBI

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that NICOLE TORRES, an elected district leader in the Bronx and former employee of the New York City Board of Elections, (the “NYC-BOE”), pled guilty today to conspiracy to commit extortion and mail fraud for illegally demanding payments from Bronx residents in exchange for selecting those individuals as poll workers and for agreeing with others to falsify documents to make it appear that certain individuals had worked as poll workers when they had not.  TORRES pled guilty before U.S. District Judge Mary Kay Vyskocil.

Acting U.S. Attorney Matthew Podolsky said: “For five years, Nicole Torres abused her position of public trust as an elected official and City employee by taking bribes and falsifying records in connection with the selection and placement of poll workers in the Bronx.  Today’s plea highlights this Office’s commitment to rooting out corruption in local government, and to protecting the integrity of poll workers and our elections.”

According to the allegations contained in the Indictment:

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

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

Second, from at least 2018 through August 2024, TORRES agreed to falsify the Forms Booklet—which is a NYC-BOE record in which poll workers record their attendance at a particular poll site—to make it appear that certain individuals (the “NoShow Poll Workers”) worked as poll workers during early voting and election day when, in truth and fact, and as TORRES well knew, those individuals did not work on those dates.  TORRES often worked with coordinators who oversaw the Forms Booklets at specific poll sites.  These coordinators signed in No-Show Poll Workers in the Forms Booklets, frequently at TORRES’s direction. TORRES and her coconspirators then received the salaries for the NoShow Poll Workers—sometimes through the mail—and split the fraudulently obtained salaries among themselves.  Based on her participation in the scheme, TORRES personally obtained at least approximately $36,000 in fraud proceeds.   

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TORRES, 44, of the Bronx, New York, pled guilty to one count of conspiracy to commit extortion under color of official right and one count of conspiracy to commit mail fraud, which each carry a maximum sentence of 20 years in prison.

The maximum potential sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  TORRES is scheduled to be sentenced by Judge Vyskocil on July 8, 2025. 

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

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

Source: US FBI

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that a jury returned a guilty verdict against SHYMELL EPHRON, a/k/a “Shy,” on two counts of enticement of a minor to engage in unlawful sexual activity, one count of conspiring to distribute methamphetamine and cocaine, and two counts of distributing methamphetamine to a minor, in a trial before U.S. District Judge Margaret M. Garnett.  EPHRON is scheduled to be sentenced on September 19, 2025.

Acting U.S. Attorney Matthew Podolsky said: “As a unanimous jury found, Shymell Ephron lured two runaway teenagers back to his apartment in Harlem, where he repeatedly raped and sexually abused them for five days while plying them with methamphetamine and alcohol.  Thanks to the FBI and the NYPD, the girls were eventually found and returned to their parents.  I commend these young women for the bravery they showed by testifying at trial.  This Office is committed to keeping the children of New York City safe from sexual predators, and thanks to the hard work of the career prosecutors of this Office and our law enforcement partners, the support of victim services specialists of this Office, and the willingness of the victims to speak up, Ephron has now been convicted for his egregious conduct and will face justice for the harm he caused.” 

As reflected in the evidence presented at trial:

Between approximately May 2024 and July 2024, EPHRON worked with others to distribute narcotics, including methamphetamine and cocaine, in Times Square and other locations in New York City.  On or about May 17, 2024, EPHRON approached two teenage girls in Times Square while he was selling drugs.  The girls had run away from home.  EPHRON convinced the two girls to follow him to his residence in Harlem, where they stayed with EPHRON for several days.

EPHRON engaged in multiple acts of forcible rape, forcible touching, sexual abuse, and illegal sex with a minor while the girls were staying in EPHRON’s apartment.  EPHRON repeatedly provided the girls with methamphetamine, marijuana, and alcohol.  EPHRON also provided a cellphone to the girls to monitor their whereabouts, communicate with them about narcotics, and to persuade, induce, and entice them to return to his apartment each night so he could engage in unlawful sex with them.  Law enforcement agents with the Federal Bureau of Investigation (“FBI”) and the New York City Police Department (“NYPD”) eventually rescued the two girls and returned them to their parents.

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EPHRON, 35, of New York, New York, was convicted of two counts of coercion and enticement of a minor, each of which carries a mandatory minimum sentence of 10 years in prison and a maximum potential sentence of life in prison; one count of narcotics conspiracy, which carries a maximum potential sentence of 20 years in prison; and two counts of distributing narcotics to a minor, each of which carries a mandatory minimum sentence of one year in prison and a maximum potential sentence of 40 years in prison.

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

Mr. Podolsky praised the work of the FBI’s Westchester Safe Streets Task Force and the NYPD.  Mr. Podolsky also thanked the New York State Police and the Yorktown Police Department for their assistance in the investigation.

This case is being handled by the Office’s Violent & Organized Crime Unit.  Assistant U.S. Attorneys Ryan W. Allison, Lisa Daniels, Michael R. Herman, and Andrew W. Jones are in charge of the prosecution.

Source: US FBI

Earlier today, in federal court in Brooklyn, Pushpesh Kumar Baid, also known as “PK Jain,” pleaded guilty to conspiracy to commit wire fraud in connection with a scheme to defraud investors in Tradepay Capital LLC (Tradepay), a purported factoring company.  The proceeding was held before United States Magistrate Judge Lois Bloom.  When sentenced, Baid faces a maximum sentence of 20 years’ imprisonment, as well as restitution of over $35 million and forfeiture of over $2.6 million.

John J. Durham, United States Attorney for the Eastern District of New York, and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.

“Through a complex web of shell companies, straw bank accounts, fraudulent documents, and other lies, Baid and his co-conspirators deceived their victims into investing tens of millions of dollars into a business that did not exist,” stated United States Attorney Durham.  “Today’s plea demonstrates that my Office will hold accountable fraudsters like Baid who enrich themselves at their investors’ expense.”   

Mr. Durham expressed his appreciation to the Internal Revenue Service, Criminal Investigations for its work on the case.

As set forth in court filings, Baid was the business head of Tradepay, which purported to be an international factoring business run by an executive team experienced in factoring invoices in particular industries and geographic regions.  Factoring involves the sale of an invoice to a third party at a discount.  In a factoring transaction, the seller of an invoice obtains immediate funding from the buyer of the invoice, and the buyer of the invoice makes a profit when the invoice is paid in full.

Between April 2017 and October 2019, Baid and his co-conspirators implemented a scheme to defraud investors in Tradepay by making it appear that Tradepay was a legitimate and successful business when it was, in fact, an elaborate scam.  For example, the hundreds of invoices from various businesses that Tradepay purported to be factoring were fraudulent and included fake signatures for both sides of the transactions.  Baid and his co-conspirators also funneled millions of dollars of investors’ funds—which they represented would be sent to Tradepay’s business partners—into a sprawling network of bank accounts that Baid controlled through shell entities and straw signatories.  From those accounts, Baid and his co-conspirators spent millions of dollars on personal expenses, including cash withdrawals and purchases of luxury cars and watches.  Baid even lied about his identity, concealing his real name from investors in order to obscure the fact that he was wanted for criminal offenses abroad.

Investors in Tradepay initially received payments on the invoices, which led them to contribute increasingly large sums of capital.  By approximately July 2019, however, the payments on the invoices stopped, resulting in roughly $35 million in losses.

As part of his plea, Baid also admitted to defrauding investors in Luxestreet Inc., formerly known as Asset Capital Partners LLC (Luxestreet), and agreed to pay restitution to Luxestreet’s investors.  Baid claimed that Luxestreet operated like a pawn shop for high end goods, including luxury watches.  In reality, Luxestreet contracts were forged and the physical watches held by the company were mere knockoffs.  

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys Dylan A. Stern, Benjamin Weintraub, and Molly Delaney are in charge of the prosecution, with assistance from Paralegal Specialist Sarah Burn.

The Defendant:

Pushpesh Kumar Baid (also known as “PK Jain”)
Age:  44
Miami, Florida

E.D.N.Y. Docket No. 21-CR-367 (DC)

Source: US FBI

Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Fatjon Shytani, an Albanian national and resident of the Bronx, New York, with a scheme to smuggle illegal aliens from Canada into the United States for financial gain.  Shytani was arrested yesterday morning and was arraigned this afternoon before United States Magistrate Judge Lois Bloom.

John J. Durham, United States Attorney for the Eastern District of New York, and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and indictment.

“As alleged, Shytani conspired to smuggle illegal aliens into the United States to benefit himself financially, but was thwarted by the outstanding work of our law enforcement partners,” stated United States Attorney Durham.  “These types of schemes represent a significant threat to our national security and will not be tolerated.  This case demonstrates our Office’s continued dedication to protect our border security and the integrity of the immigration process.”

Mr. Durham also thanked U.S. Customs and Border Protection, the Department of Justice’s Office of International Affairs, the New York City Police Department, the Royal Canadian Mounted Police and the Albanian State Police for their valuable assistance during the investigation.

“Fatjon Shytani, an Albanian national, allegedly facilitated the illegal entry of foreign nationals into the United States in exchange for cash payments.  This alleged conspiracy established unauthorized border access designed to circumvent proper protocols and evade authorities.  The FBI remains dedicated to apprehending any individual who profits from violating the borders and security of our nation,” stated FBI Assistant Director in Charge Raia.

As alleged in court filings, Shytani and his co-defendants conspired to smuggle foreign nationals into the United States via illegal border crossing at the U.S. border with Canada.  During the course of the investigation, Shytani accepted cash from an undercover agent (UC-1) in exchange for arranging to have the agent’s significant other, who purportedly was from the Republic of Kosovo, smuggled across the Canadian border into the United States.  In reality, the agent’s significant other was another undercover law enforcement agent (UC-2).  Between March 12, 2024 and March 13, 2024, Shytani and UC-1 exchanged phone calls and text messages during which they agreed to meet in person on March 14, 2024, at a coffee shop on Long Island, New York.  On March 14, 2024, Shytani met UC-1 at the agreed-upon location where they discussed details regarding UC-2’s illegal crossing from Canada into the United States. At the conclusion of the meeting, UC-1 paid Shytani $14,000 in cash for the planned smuggling service.  On March 16, 2024, Shytani’s co-conspirators then attempted to smuggle UC-2 and two other aliens from Canada into the United States before being apprehended and later released by Canadian law enforcement.

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted of alien smuggling and transportation conspiracy, Shytani faces up to 10 years’ imprisonment.

Assistant United States  Attorneys Andrew Roddin, Stephanie Pak, and Kate Mathews are in charge of the prosecution.  

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and other transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Project Safe Neighborhood.

The Defendant:

FATJON SHYTANI (also known as “Fati”)
Age:  41
Bronx, New York

E.D.N.Y. Docket No. 25-CR-133 (SJB)

Source: US FBI

BUFFALO, N.Y.-U.S. Attorney Michael DiGiacomo announced today that Gilberto Alarcon-Holguin a/k/a Beto, 57, a Mexican national, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, and conspiracy to commit money laundering, which carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a fine of $10,000,000.

According to the plea agreement, on October 14, 2017, Homeland Security Investigations (HSI) seized 10 kilograms of cocaine from an identified co-conspirator. HSI obtained a phone number as a point of contact for the delivery of the cocaine, which was linked to co-conspirators of Alarcon-Holguin. On October 19, 2017, HSI conducted a controlled delivery of 10 bricks of “sham” cocaine, which had been wrapped in the same manner as the seized kilograms of cocaine, to a motel parking lot in Corfu, NY. The bag was given to co-conspirator Eduardo Valdez, who was on the phone with Alarcon-Holguin during the delivery. Following the controlled delivery, the New York State Police conducted a traffic stop of the vehicle Valdez was riding in. HSI seized $259,960 in cash as a result of the controlled delivery.

Subsequent investigation determined that Alarcon-Holguin had multiple communications with another co-conspirator, Edgar Pavia. Alarcon-Holguin provided instructions to Pavia about shipments of cocaine, packaging of money, and more, all of which was passed along to drug distributors supplied by Alarcon-Holguin in cities including Buffalo, and Louisville, KY. Alarcon-Holguin also passed information to Pavia that was separately conveyed to other co-conspirators, including those involved in the transportation of drugs. For example, on June 21, 2018, co-conspirator Adrian Goudelock received 40 kilograms of cocaine in Buffalo. Over the course of the conspiracy, Goudelock received multiple shipments of 10 kilograms of cocaine or more brokered by Pavia and supplied by Alarcon-Holguin. Alarcon-Holguin also provided instructions to Pavia on how Goudelock should wrap and mark money being sent back to Mexico. Specifically, Alarcon-Holguin told Pavia that Goudelock should wrap the money into 52 packages of $10,000 each.

Other deliveries organized by Alarcon-Holguin during the investigation included: 17 kilograms of cocaine seized from a co-conspirator in West Seneca, NY, and shipments of 10, 15, 20, and 40 kilograms of cocaine to a co-conspirator in Kentucky. In addition, approximately $1,144,735 in cash was seized from a commercial truck driver in Chicago, Illinois. During the course of the investigation, investigators seized approximately $2,600,000.

The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Erin Keegan; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia; the New York State Police, under the direction of Major Amie Feroleto; the Erie County Sheriff’s Department, under the direction of Sheriff John Garcia; and Customs and Border Protection, Air and Marine Unit, under the direction of Brian Manaher, Director, Marine Operations. Additional assistance was provided by the New York National Guard and Homeland Security Investigations, El Paso, Texas. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Alarcon-Holguin.    

Sentencing is scheduled for September 3, 2025, before Judge Sinatra.

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Source: US FBI

ROCHESTER, NY—U.S. Attorney Michael DiGiacomo announced today that Talib Hussain, 74, and Mirza Khan, 46, both of Pittsford, NY, were charged by criminal complaint with bank fraud, wire fraud, conspiracy to commit bank and wire fraud and aggravated identity theft. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.

Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, since January 2015, JP Morgan Chase, Discover Financial Services, Pentagon Federal Credit Union, Bank of America, Barclay Bank, US Bank, Capital One and American Express have identified fraudulent credit card activity in the Rochester area. A high number of newly issued credit cards were charged to their maximum credit limit and almost all the cards had no valid payments applied to the accounts.

The investigation determined that several of the credit cards were connected. The credit cards were applied for using an actual social security number but a fabricated name and date of birth to create a new, or “synthetic” identity, which was then used to acquire lines-of-credit used by the creator and/or his co-conspirators to make fraudulent purchases until the credit limit was reached. Some of them were used to pay property taxes to the City of Rochester and the Rochester Gas & Electric Corporation bills for properties in Rochester, including Lucky Beverage on Norton Street, Chili Express on Chili Avenue, and Easy (EZ) Food Market on Plymouth Avenue. A total of 32 different fraudulent credit cards were used to make periodic online property tax payments for the three properties between 2016 and 2022, totaling approximately $163,000. Further investigation determined that Lucky Beverage and Chili Express are owned by Mirza Khan, while Easy Food Market is owned by Khan’s father and co-defendant Talib Hussain.

The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, Internal Revenue Service Criminal Investigation New York, under the direction of Harry Chavis, Acting Executive Special Agent in Charge, the U.S. Postal Inspection Service Boston Division, under the direction of Inspector in Charge Ketty Larco-Ward, and the Social Security Administration Office of Inspector General, under the direction of Acting Special Agent-in-Charge Amy Connelly.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

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Source: US FBI

BUFFALO, NY—U.S. Attorney Michael DiGiacomo announced today that Shawn Demmick, 33, of Tonawanda, NY, was arrested and charged by criminal complaint with distribution of child pornography, which carries a minimum penalty of five years in prison and a maximum of 20 years. 

Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that according to the complaint, in late December 2024, the National Center for Missing and Exploited Children received a Cybertip that someone had uploaded or shared eight files of child pornography with another user or group of users on the Kik application on December 19, 2024. A review of the files determined that they did include images and videos of child pornography. The screen/username of the suspect listed in the report was “sirbannedalot.” Subsequent investigation traced the account back to Shawn Demmick.

The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, and the Town of Tonawanda Police Department, under the direction of Chief James Stauffiger.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

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Source: US FBI

ROCHESTER, NY—U.S. Attorney Michael DiGiacomo announced today that Stuart J. McHenry, 34, of Hornell, NY, was arrested and charged by criminal complaint with distribution and receipt of child pornography, which carries a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a fine of up to $250,000. 

Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that according to the complaint, on July 5, 2024, the National Center for Missing and Exploited Children (NCMEC) received a CyberTip from the instant messaging application Kik, which stated that Kik user “acman990,” uploaded approximately 24 files of suspected child pornography. A review of the files found that approximately 22 of the files constituted child pornography, which he sent to other users via private message. Subsequent investigation traced the account to the defendant.

During the course of the investigation, it was determined that McHenry works as a deputy for Steuben County Sheriff’s Office. On October 18, 2024, investigators seized two cellular telephones during the execution of a search warrant at McHenry’s Hornell residence. A forensic review of one of the phones determined that Kik was previously installed on the phone and located evidence of use of the Kik username acman990. A review of McHenry’s iCloud account recovered a number of sexually explicit conversations and child pornography on Kik, including the videos reported in the CyberTip as well as additional videos and images of child pornography.

McHenry made an initial appearance this afternoon before U.S. Magistrate Judge Mark W. Pedersen and was held pending a detention hearing.

The complaint is the result of an investigation by the New York State Police, under the direction of Major Kevin Sucher, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, and the Steuben County Sheriff’s Office, under the direction of Sheriff Jim Allard. 

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

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Source: US FBI

BUFFALO, N.Y.- U.S. Attorney Michael DiGiacomo announced today that Brayden Storey, 21, of West Fork, Arkansas, was arrested and charged by criminal complaint with enticement of a minor, which carries a mandatory minimum penalty of 10 years in prison and a maximum of life.

Assistant U.S. Attorney Maeve E. Huggins, who is handling the case, stated that according to the complaint, on  June 13, 2024, the West Seneca Police Department received a report from a minor victim of an incident involving an individual that she met online. The victim said that Storey first contacted her on Instagram in September 2022, when she was 13 years-old and he was 19 years-old. He also communicated with the minor victim through the social media platform Discord and text message. Between September 2022, and September 2023, they talked about video games and anime shows. At times, Storey made sexual comments, but in October 2023, the sexual communications that Storey sent to the minor victim significantly increased. Storey sent the minor victim a nude image of himself and repeatedly asked her to send him sexually explicit images. Between October 2023, and March 2024, Storey and the minor victim exchanged sexually explicit images.

In March 2024, the minor victim blocked Storey on all social media applications. As a result, he created another Instagram account to contact her. In April 2024, Storey called the minor victim approximately 50 times in a two-day span, but she did not answer the calls and blocked Storey’s phone number so that he could not contact her. In May 2024, Storey sent the minor victim a four-page letter in the mail at her residence, writing about his suicidal ideations and his desire to be in a relationship with her, regardless of their age difference. Along with the letter, Storey provided a lock of his hair. a search of the minor victim’s phone recovered nude images of Storey and child pornography.

Storey made an initial appearance in the Western District of Arkansas and was detained. He will be returned to the Western District of New York at a later date.

The complaint is the result of an investigation by the West Seneca Police Department, under the direction of Chief Brian Cosgrove, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia. Additional assistance was provided by the Little Rock Office of the FBI, the Washington County Sheriff’s Office, the Benton County Sheriff’s Office, the Arkansas State Police, and Assistant U.S. Attorney Devon Still, with the U.S. Attorney’s Office in the Western District of Arkansas.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

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