Trenton Mayor Sentenced to 58 Months in Prison on Federal Extortion, Bribery, and Mail and Wire Fraud Charges

TRENTON, NJ—Trenton Mayor Tony F. Mack was sentenced today to 58 months in prison after being convicted at trial in February on all six federal extortion, bribery, and mail and wire fraud charges against him, U.S. Attorney Paul J. Fishman announced.

Mack’s brother, Ralphiel Mack, who was also convicted on three of the charges but found not guilty on three mail fraud and wire fraud counts, was sentenced to 30 months in prison. The Macks had been convicted following a five-week trial before U.S. District Judge Michael A. Shipp, who imposed the sentences today in Trenton federal court.

The Macks were charged in connection with a scheme to accept $119,000 in bribes in exchange for Mayor Mack’s official actions and influence in assisting cooperating witnesses in the development of an automated parking garage on city-owned land.

“Nearly four years ago, Tony Mack raised his hand and swore to uphold the state and federal constitutions as he assumed the office of mayor of the capital city of New Jersey,” U.S. Attorney Fishman said. “Within 10 weeks, he began selling that office and, with the help of his brother and others, he sold out the people of Trenton in the process. Today, he learned the true cost of his actions: He will spend 58 months in federal prison.”

“Instead of providing transparent government to the citizens of Trenton, Tony Mack and his brother allowed themselves to succumb to self-interest and greed,” FBI Special Agent in Charge Aaron T. Ford said. “This investigation brought to light the unsavory underworld of secret meetings with convicted felons, the calculated use of ‘buffers’ and bagmen, and bribe payments associated with inside deals to give away the city’s treasures, its property. The citizens of Trenton are entitled to political figures who discharge their duties with goodness of heart and not those motivated by personal gain.”

Tony F. Mack, 48, and Ralphiel Mack, 41, both of Trenton, originally were charged by complaint on September 10, 2012, with one count of conspiracy to obstruct commerce by extortion under color of official right related to the $119,000 extortion scheme. Also charged at that time was Joseph A. Giorgianni, 64, of Ewing, New Jersey. An indictment returned in December 2012 added charges against all three defendants.

Giorgianni pleaded guilty on December 13, 2013, to one count of conspiring with the Macks and others to obstruct interstate commerce by extorting individuals under color of official right, in addition to a separate extortion scheme, a narcotics charge and illegal weapons possession, all charges unrelated to the Macks.

Mayor Mack was convicted of the six counts charged in the indictment:

• Conspiracy to obstruct and affect interstate commerce by extortion under color of official right
• Attempted obstruction of commerce by extortion under the color of official right
• Accepting and agreeing to accept bribes
• Two counts of wire fraud
• Mail fraud

Ralphiel Mack was convicted on the same first three counts and found not guilty of the mail and wire fraud charges. The jury members deliberated for seven hours before returning their verdicts.

According to documents filed in this case and the evidence presented at trial:

Tony Mack, Giorgianni, and Ralphiel Mack conspired to accept approximately $119,000 in cash and other valuables, of which $54,000 was accepted and another $65,000 that the defendants planned to accept from two cooperating witnesses (CW-1 and CW-2). In exchange for the payments, Tony Mack agreed to and did assist CW-1 and CW-2 in their efforts to acquire a city-owned lot (East State Street Lot) to develop an automated parking garage (the Parking Garage Project). The scheme included a plan to divert $100,000 of the purchase amount that CW-2 had indicated a willingness to pay to the city of Trenton for the lot as a bribe and kickback payment to Giorgianni and Tony Mack. The mayor authorized and directed a Trenton official responsible for disposition of city-owned land to offer the East State Street Lot to CW-2 for $100,000, significantly less than the amount originally proposed by CW-2.

The defendants went to great lengths to conceal their corrupt activity to keep Tony Mack “safe” from law enforcement. For example, Giorgianni and Ralphiel Mack acted as intermediaries, or “buffers,” who accepted cash payments for Tony Mack’s benefit. Tony Mack also used another city of Trenton employee involved in the scheme, Charles Hall, III, 49, of Trenton, to contact other Trenton officials to facilitate the Parking Garage Project and to inform the mayor when Giorgianni had received corrupt cash payments. Hall pleaded guilty before Judge Shipp in February 2013 to an information charging him with one count of conspiracy to obstruct commerce by extortion under color of official right and one count of conspiring to distribute narcotics with others, including Giorgianni.

To conceal the corrupt arrangement, the defendants avoided discussing matters related to the scheme over the telephone. When those matters were discussed, they used code words and aliases. One such code word was “Uncle Remus,” which both Giorgianni and Hall regularly used to communicate to Tony Mack that a corrupt payment had been received. For example, on October 29, 2011, Giorgianni telephoned Hall and informed him that Giorgianni had to “see” Tony Mack and that “I got Uncle Remus for him,” meaning a corrupt cash payment that Giorgianni had received from CW-1 two days earlier. Giorgianni directed Hall to bring Tony Mack to a meeting location controlled by Giorgianni (Giorgianni’s Clubhouse), stating “we gotta talk” because “I got something that might be good for him” and that “they’ve already come with Uncle Remus,” meaning a corrupt cash payment. On June 13, 2012, Giorgianni telephoned Tony Mack and informed him that “Uncle Remus,” meaning a corrupt cash payment, “was there.” Tony Mack replied, “I’ll call you, J. Okay?” In text messages to Tony Mack related to the scheme, Giorgianni would refer to himself as “Mr. Baker.”

The defendants also concealed their activities by holding meetings concerning the corrupt activity away from Trenton City Hall, including at Giorgianni’s residence, a restaurant maintained by Giorgianni known as JoJo’s Steakhouse, Giorgianni’s Clubhouse, and Atlantic City restaurants. At one Atlantic City meeting among Tony Mack, Giorgianni, Hall, and CW-2, Tony Mack instructed Giorgianni to ensure that no photographs were taken in order to conceal the corrupt arrangement.

In addition to the prison terms, Judge Shipp sentenced Tony Mack to three years of supervised release, 100 hours of community service, and fined him $3,000. He sentenced Ralphiel Mack to three years of supervised release and fined him $1,500.

U.S. Attorney Fishman credited special agents of the FBI’s Trenton Resident Agency, Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s sentencings.

The government is represented by Assistant U.S. Attorneys Eric W. Moran and Matthew J. Skahill of the U.S. Attorney’s Office Special Prosecutions Division in Trenton and Camden, respectively.

Jersey City Police Officer Pleads Guilty to Transportation of Stolen Goods and Extortion

TRENTON, NJ—A Jersey City, New Jersey police officer today admitted stealing more than half a million cigarettes from a trailer and extorting $20,000 from a drug courier who turned out to be an undercover FBI agent, U.S. Attorney Paul J. Fishman announced.

Mario Rodriguez, 39, of Jersey City, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with transportation of stolen goods and extortion under color of official right.

According to documents filed in the case and statements made in court:

On July 3, 2013, Rodriguez and an individual working for the FBI as a confidential informant (CI) drove to a warehouse in Secaucus, New Jersey to break into a trailer, steal cigarettes, and sell the stolen goods to the CI’s associate. Law enforcement agents had previously parked the trailer at the warehouse and established surveillance of the area.

After using bolt-cutters to cut the lock off of the trailer, Rodriguez and the CI loaded 50 cases containing approximately 600,000 cigarettes and six televisions from the trailer into their vehicle. As they drove the stolen items to a parking lot in Staten Island, New York, Rodriguez made several phone calls seeking buyers for the TVs.

The pair met the CI’s associate—actually an undercover officer—in the parking lot to get the $5,000 payment for the cigarettes. Rodriguez kept $3,000 of the cash and three of the TVs.

On July 10, 2013, Rodriguez, the CI and an undercover law enforcement agent met in New Jersey and discussed the possibility of robbing a drug courier, who was actually another undercover officer. On July 24, 2013, the group met again in Staten Island to discuss the plan. The undercover officer told Rodriguez the courier would be delivering cocaine to them that day in exchange for a $20,000 payment. Rodriguez suggested a Jersey City mall parking lot due to an absence of surveillance cameras and called his associate, Anthony Roman, 48, of Jersey City, who was not a law enforcement officer, to help him with the robbery. Roman was charged with one count of Hobbs Act extortion.

Later that day, Rodriguez and Roman drove an SUV to the location where the CI and the drug courier were parked. Law enforcement agents had already established surveillance and staged the car containing $20,000 cash in a plastic bag. Rodriguez and Roman approached the car and identified themselves as law enforcement officers who were investigating the CI. They pretended to arrest the CI, threatened to arrest the drug courier and took the cash.

Later that day, Rodriguez, the CI and the undercover agent met in a hotel room at a Pennsylvania casino to split the cash.

The cargo theft and conspiracy to commit extortion charges to which Rodriguez pleaded guilty carry a maximum potential penalty of 10 and 20 years in prison, respectively. Both counts also carry a maximum fine of $250,000. Sentencing is scheduled for September 26, 2014. Rodriguez has been suspended from the police department.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Special Investigations Unit of the Jersey City Police Department, under the direction of Acting Chief Joseph Connors; the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory; and criminal investigators of the U.S. Attorney’s Office with the investigation leading to today’s plea. He also thanked the Bayonne Police Department, Waterfront Commission of New York Harbor, IRS-Criminal Investigation, U.S. Department of Labor Office of Inspector General, and the N.J. State Commission of Investigation for their significant contributions to the investigation.

The government is represented by Acting Deputy Chief of the General Crimes Unit Jonathan W. Romankow in Newark.

The charges against Roman remain pending. They are merely accusations, and he remains innocent unless and until proven guilty.

Fresno Police Department Detective and Fresno Marijuana Trafficker Indicted in Bribery Scheme

FRESNO, CA—A federal grand jury returned a four-count indictment today against Derik Carson Kumagai, 40, resident of Clovis, California, and Saykham Somphoune, a/k/a, “Oat,” 40, resident of Fresno, California, charging them with conspiracy, bribery, and extortion, United States Attorney Benjamin B. Wagner announced.
According to court documents, detective Kumagai accepted a $20,000 bribe from an individual who was under investigation for marijuana trafficking. In return for the bribe payment, Kumagai and co-conspirator Somphoune (who is not a law enforcement officer) promised the person under investigation that he would be signed up as a confidential informant for the Fresno Police Department. On November 6, 2013, the person under investigation paid Kumagai approximately $20,000 cash. A few hours later, the person under investigation completed purported documents regarding work as a confidential informant for the Fresno Police Department.
This case was the product of an investigation by the Drug Enforcement Administration, Federal Bureau of Investigation, and Internal Revenue Service-Criminal Investigation Division. The Department of Homeland Security-Homeland Security Investigations and the United States Postal Inspection Service also provided investigative assistance in this case. Assistant United States Attorneys Grant B. Rabenn and Kevin P. Rooney are prosecuting the case.
Derik Kumagai was released from pretrial custody on March 19, 2014. Saykham Somphoune is currently detained as a flight risk.
If convicted of conspiracy, the defendants face a maximum statutory penalty of five years in prison and a $250,000 fine. If convicted of bribery, they face a maximum statutory penalty of 10 years in prison and a $500,000 fine. If convicted of extortion or conspiracy to commit extortion, they face a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Brooklyn Man Admits Traveling to New Jersey to Violently Extort Divorce Consent from Reluctant Husband

TRENTON—A Brooklyn, New York man admitted today in Trenton federal court to traveling to New Jersey in order to coerce a Jewish man to give his wife a religious divorce—referred to as a “get”—through threats of violence, U.S. Attorney Paul J. Fishman announced.
Simcha Bulmash, 30, pleaded guilty today before U.S. District Judge Freda L. Wolfson to an information charging him with traveling in interstate commerce to commit extortion. His bail conditions include a $500,000 bond and GPS monitoring.
According to documents filed in this case and statements made in court:
On October 9, 2013, Bulmash and a group of conspirators—including Jay Goldstein, 59; Moshe Goldstein, 31; Avrohom Goldstein, 34; David Hellman, 31; Ariel Potash, 40; Binyamin Stimler, 38; and Sholom Shuchat, 29—traveled from New York to a warehouse in Edison, New Jersey, with the intent of forcing a Jewish man to give his wife a “get,” a divorce document which, according to Jewish Law, must be presented by a husband to his wife to effect their divorce.
Bulmash admitted that when he arrived at the warehouse, the group met with an individual who, unbeknownst to them, was an undercover FBI agent posing as the husband’s brother in law. Bulmash admitted that they discussed a plan and prepared to confine, restrain, and threaten the victim.
The group was then arrested by a team of FBI agents and charged by criminal complaint—along with rabbis Mendel Epstein, 68, and Martin Wolmark, 55—in connection with the scheme. Hellman pleaded guilty to an information charging him with traveling in interstate commerce to commit extortion on March 6, 2014. Moshe and Avrohom Goldstein pleaded guilty to the same charge on March 11, 2014. The charges against the remaining alleged conspirators remain pending. All the defendants reside in Brooklyn, except Potash and Wolmark, who live in Monsey, New York.
During his guilty plea proceeding, Bulmash also admitted that on August 22, 2011, he and others went to a residence in Brooklyn where they restrained, assaulted, and injured a man in an attempt to extort a divorce from him. That conduct will be considered by the court during sentencing, currently scheduled for July 10, 2014.
Bulmash faces a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea. He also thanked the Lakewood, New Jersey Police Department for their role.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
The pending charges and allegations against related defendants are merely allegations, and they are considered innocent unless and until proven guilty.

Hallandale Resident Charged with Attempted Extortion

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida; A. Lee Bentley, III, United States Attorney for the Middle District of Florida; Paul Wysopal, Special Agent in Charge, Federal Bureau of Investigation (FBI), Tampa Field Office; Aaron T. Ford, Special Agent in Charge, Federal Bureau of Investigation, New Jersey Field Office; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office; and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO) Bomb Squad, announce the unsealing of an indictment charging Brian Henderson, 49, of Hallandale. The indictment, which was returned in the Southern District of Florida, is the result of a joint investigation conducted by the FBI Miami Field Office, the Tampa Field Office, and the Newark Field Office.
Brian Henderson is scheduled to make his initial appearance in the Southern District of Florida before U.S. Magistrate Judge Alicia O. Valle on Friday, March 14, 2014.
According to the 11-count indictment, which was returned on February 25, 2014, Henderson is charged with attempting to extort money from Publix Super Markets, Inc. (Publix) by the use of actual and threatened force, violence, and fear of economic loss.
As set forth in the indictment, Henderson attempted to obtain money from Publix by sending several threatening e-mails to Publix in which he threatened to damage Publix stores through the use of explosive devices. In furtherance of his attempt to extort money from Publix, Henderson placed and caused to be detonated a pipe bomb at the Publix store located in Dania Beach.
If convicted, Brian Henderson faces the following potential penalties: up to 20 years in prison, followed by five years of supervised release and a possible $250,000 fine as to Count 1 attempted interference with commerce by extortion, and as to count 10, attempting to destroy property by explosives; up to 10 years in prison followed by three years of supervised release and a possible $250,000 fine on counts 2, 4, 6, and 8, using an instrument of interstate and foreign commerce to make a threat to destroy property by explosives; up to two years in prison followed by three years of supervised release and a possible $250,000 fine, on counts 3, 5, 7, and 9, transmitting a communication in interstate and foreign commerce to extort money by damaging and destroying buildings; and a mandatory minimum term of 30 years in prison followed by five years of supervised release and a possible $250,000 fine on count 11, using and carrying a firearm during and in relation to a crime of violence.
A separate criminal complaint charging Henderson in connection with alleged product tampering threats made to a consumer products company was unsealed today in the District of New Jersey.
Mr. Ferrer commended the investigative efforts of the FBI Tampa Field Office, the Newark Field Office, and the Miami Field Office, and the Broward Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Michael Walleisa.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
For information on the District of New Jersey case, please contact Rebekah Carmichael at (973) 645-2888 or by e-mail at Rebekah.Carmichael@usdoj.gov.

Brooklyn Man Admits Traveling to New Jersey to Violently Extort Divorce Consent from Reluctant Husband

TRENTON, NJ—A Brooklyn, New York man admitted today in Trenton federal court to traveling to New Jersey in order to coerce a Jewish man to give his wife a religious divorce—referred to as a “get”—through threats of violence, U.S. Attorney Paul J. Fishman announced.
David Hellman, 31, a personal trainer, pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with traveling in interstate commerce to commit extortion. His bail conditions include a $500,000 bond and GPS monitoring.
According to documents filed in this case and statements made in court:
On October 9, 2013, Hellman and a group of conspirators—including Jay Goldstein, 59; Moshe Goldstein, 31; Avrohom Goldstein, 34; Simcha Bulmash, 30; Ariel Potash, 40; Binyamin Stimler, 38; and Sholom Shuchat, 29—traveled from New York to a warehouse in Edison, New Jersey, with the intent of forcing a Jewish man to give his wife a “get,” a divorce document which, according to Jewish Law, must be presented by a husband to his wife to effect their divorce.
Hellman admitted that when he arrived at the warehouse, the group met with an individual who, unbeknownst to them, was an undercover FBI agent posing as the husband’s brother-in-law. Hellman admitted that they discussed a plan and prepared to confine, restrain, and threaten the victim.
The group was then arrested by a team of FBI agents and charged by criminal complaint—along with rabbis Mendel Epstein, 68, and Martin Wolmark, 55—in connection with the scheme. Hellman is the first defendant to plead guilty; the charges against the alleged conspirators remain pending. All of the defendants reside in Brooklyn, except Potash and Wolmark, who live in Monsey, New York.
During his guilty plea proceeding, Hellman also admitted that on August 22, 2011, he and others went to a residence in Brooklyn where they restrained, assaulted, and injured a man in an attempt to extort a divorce from him. That conduct will be considered by the court during sentencing, currently scheduled for June 12, 2014.
Hellman faces a maximum potential penalty of 20 years in prison and a $250,000 fine or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea. He also thanked the Lakewood, New Jersey Police Department for their role.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
The pending charges and allegations against related defendants are merely allegations, and they are considered innocent unless and until proven guilty.

New York State Assemblyman William F. Boyland, Jr. Convicted on Bribery, Fraud, Extortion, Conspiracy, and Theft Charges

Earlier today, sitting New York State Assemblyman William F. Boyland, Jr. was convicted by a jury at the federal courthouse in Brooklyn, New York, of 21 felony counts, including federal programs bribery, conspiracy to commit federal programs bribery, conspiracy to violate the Travel Act and commit federal programs bribery, extortion, extortion conspiracy, honest services wire fraud, conspiracy to commit honest services wire fraud, federal programs theft, and conspiracy to commit mail fraud. Boyland committed each of these offenses by corruptly exploiting his public position representing the 55th Assembly District in Brooklyn, which is composed of Ocean Hill, Brownsville, Bedford-Stuyvesant, Crown Heights, and Bushwick. Upon his convictions, Boyland was automatically expelled from the Assembly. When sentenced, Boyland faces prison terms of up to 20 years on each of the extortion, extortion conspiracy, honest services wire fraud, honest services wire fraud conspiracy, and mail fraud conspiracy counts; up to 10 years on each of the federal programs bribery and federal programs theft counts; and up to five years on each of the other conspiracy counts. Following his convictions, the Honorable Sandra L. Townes, who presided over the trial, ordered Boyland remanded into custody pending his sentencing on June 30, 2014. Boyland is also subject to up to at least $250,000 in fines on each of the counts of conviction, as well as criminal forfeiture and mandatory restitution.
The convictions were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office.
“The breadth and pervasiveness of the corruption exposed by this prosecution is staggering. Wherever there was an opportunity for William Boyland to corruptly line his own pockets, he took it. By soliciting bribes, by stealing funds intended to help the elderly, and by defrauding New York State and the Assembly, Boyland cravenly pursued his own interest at the expense of his constituents. In doing so, Boyland not only broke the law but broke faith with the public he was elected to serve. Today’s verdict ensures that Boyland will be held accountable for his corrupt actions,” stated United States Attorney Lynch. “When our elected officials engage in self-dealing, when they abdicate their responsibilities, when they succumb to greed, the average citizen pays for it dearly, and our democratic system suffers on so many levels. The verdict sends a clear message that we and our partners in the FBI will vigorously investigate and prosecute any public official who trades on a position of power to line his own pocket.” United States Attorney Lynch praised the hard work and dedication of the FBI agents who investigated the case and expressed her thanks to the New York State Comptroller’s Office, the New York State Office of the Aging, the Internal Revenue Service Criminal Investigation Division, the New York State Assembly Department of Finance, and the New York City Department of Investigation for their assistance with the investigation.
The evidence admitted at trial proved that, beginning in January 2007 and continuing through December 2011, Boyland engaged in four separate corrupt schemes, ranging from soliciting and accepting over $250,000 in bribe payments, to submitting false travel vouchers to New York State, to stealing state funds intended for the elderly:
Carnival Scheme
Boyland extorted and accepted over $14,000 in bribes in exchange for undertaking official action to benefit a carnival promoter (the “promoter”) and an undercover FBI agent. Specifically, in August 2010, Boyland met with the Promoter and this undercover FBI agent (UC1) on multiple occasions in New York City and discussed the desire of the promoter and UC1 to hold carnivals in Boyland’s district, for which they needed government approvals. During those meetings, Boyland requested payments in exchange for assisting the promoter and UC1, and the promoter and UC1 agreed. Boyland also described various ways in which the bribes could be disguised to hide their true purpose. After these meetings, Boyland directed his Assembly staff to assist the promoter and UC1 in their efforts to gain government approvals. Boyland then represented to the promoter and UC1 that he and his staff (i) engaged in discussions with government agencies to assist the Promoter in obtaining carnival-related leases and permits and (ii) arranged for a non-profit organization to sponsor the Promoter’s carnivals. Boyland also directed his staff to give the promoter letters of support, on Boyland’s Assembly letterhead, that the promoter needed in order to operate carnivals in Boyland’s district. In exchange, UC1 paid Boyland three separate bribes: $7,000 in cash; a $3,000 check with the “payee” line left blank; and $3,800 worth of money orders that were deposited into Boyland’s campaign bank account. As was shown to the jury during the trial, Boyland was captured on videotape personally accepting the $7,000 cash bribe at his district office.
Real Estate Scheme
Boyland also accepted the $7,000 cash bribe described above in exchange for undertaking official action to benefit UC1 and a second undercover FBI agent (UC2) in a purported real estate venture in Boyland’s district. Specifically, Boyland proposed a brazen scheme in which UC1 and UC2 would purchase the former St. Mary’s Hospital in Boyland’s district for $8 million, obtain state grant money to renovate the hospital, and resell it for $15 million to a non-profit organization that Boyland claimed to control. Boyland assured UC1 and UC2 that he would use his influence as an assemblyman to secure state grant money for the project and handle any zoning issues that arose. After accepting the $7,000 cash bribe described above, Boyland was later recorded demanding an additional $250,000 bribe payment from UC1 and UC2 as a condition of using his official position to realize the real estate scheme he had proposed.
Recordings of meetings in hotel rooms in Atlantic City and New York City where Boyland discussed the real estate scheme revealed that he recognized the scheme’s corrupt and illegal nature and sought to conceal his own involvement. At the meeting in the hotel in Atlantic City, Boyland stated, “I got a middle guy by the way...I gotta stay clean...I got a bag man....” Boyland further explained that he did not want to talk on the telephone and preferred in-person meetings: “I stopped talking on the phone a while ago...I’m just saying there is no real conversation that you can have...especially with what we’re talking about.”
At the meeting in the hotel room in New York City, Boyland reiterated that he wanted UC1 and UC2 to pay him a $250,000 bribe in exchange for the St. Mary’s Hospital project. When UC2 instead countered Boyland’s demand by offering to pay Boyland $5,000 for introductions to other government officials who would be involved in the project, Boyland rejected the counter-proposal, stating that the people whom Boyland could introduce to UC1 and UC2 were worth more than $5,000: “I’m not talking about $5,000 folks. I’m talking about...people that can actually get these projects done.”
False Voucher Scheme
From January 2007 to December 2011, Boyland stole New York State funds by submitting false New York State Assembly Member Travel Vouchers (vouchers). Boyland submitted over two hundred fraudulent vouchers where he falsely claimed to be in Albany on legislative business when he in fact was not in Albany, including days when Boyland was in New York City meeting with the undercover FBI agents and demanding $250,000 in bribes; days when he was in North Carolina and Virginia visiting with family and friends; and for days when he was in Istanbul, Turkey. In reliance on Boyland’s false Vouchers, New York State paid Boyland more than $70,000 in fraudulent mileage expense reimbursements and per diem payments.
Theft of State Funds for the Elderly
From July 2007 to September 2010, Boyland conspired to defraud New York State and the New York State Office of the Aging (NYSOA). Boyland, a member of the Assembly’s Committee on the Aging, steered $200,000 of New York State “member item” funds to a Brooklyn-based non-profit organization whose mission, as described on its website, was to provide a “social setting that enable[s] elderly individuals to maintain their independence and remain at home in the community.” Notwithstanding his certification, in writing to the NYSOA that these state funds would not be used for any partisan or political purpose, Boyland directed that the majority of these $200,000 in state funds be used for the benefit of Boyland and his political campaigns by paying for community events that promoted Boyland such as a Senior Lunch Cruise on the Spirit of New York Cruise Line, a fireworks show, and a large end of the summer picnic held at a park in his district, as well as goods that promoted Boyland, such as “Team Boyland” T-shirts distributed at those community events.
The government’s case is being prosecuted by Assistant United States Attorneys Christina B. Dugger, Robert L. Capers and Lan X. Nguyen.
Defendant
Willia F. Boyland, Jr.
Age: 43
Residence: Brooklyn, New York

Former Cook County Commissioner Moreno Sentenced to 11 Years in Prison for Public Corruption Schemes

CHICAGO—Former Cook County Commissioner JOSEPH MARIO MORENO was sentenced today to 11 years in federal prison for engaging in a series of public and personal corruption schemes over a span of three years. Moreno pleaded guilty on July 1, 2013, to conspiracy to commit extortion after he was initially charged in late June 2012, about 18 months after he left public office.
Moreno, 61, of Chicago, a lawyer who served more than 16 years as an elected county commissioner until December 2010, was sentenced to 132 months in prison, and he was ordered to forfeit $100,000 and pay a total of more than $138,000 in restitution by U.S. District Judge Gary Feinerman. Moreno was ordered to begin serving his sentence on April 21.
“Mr. Moreno was not a reluctant participant in these schemes; he was an eager participant,” Judge Feinerman said, adding that Moreno “embraced them with gusto and pursued them with vigor.”
Moreno “repeatedly pursued his own interests at the expense of those he was supposed to serve. . . . [H]e extorted a reputable business and corrupted the highest levels of Cook County government, the Town of Cicero, and a private hospital. He also evaded taxes and suborned perjury so he could reduce his child support obligations. And when he was confronted about his crimes, he obstructed justice by providing the government with false invoices in an effort to conceal his criminal conduct,” Assistant U.S. Attorneys Christopher J. Stetler and Megan C. Church wrote in a government sentencing memo.
Notably, they argued, Moreno conceived a motto of governing that captured his corrupt approach to public office: “I don’t want to be a hog. I just want to be a pig. Hogs get slaughtered. Pigs get fat.”
Moreno pleaded guilty to conspiracy to extort an unnamed company that was awarded a contract to help improve Cook County Hospital’s revenue cycle into using his friend and co-defendant, Ron Garcia, and his business, Chicago Medical Equipment & Supply, Inc., as a minority subcontractor in return for a $100,000 bribe. Garcia forgave a $100,000 mortgage loan to Moreno in exchange for Moreno’s efforts to steer the lucrative sub-contract to Garcia’s company, and Moreno tried to disguise the bribe by claiming that he had repaid the purported loan.
In pleading guilty, Moreno also agreed that he sought to obtain orders of Dermafill bandages from Cook County in return for kickbacks while he and his staffer, co-defendant and former Chicago Alderman Ambrosio Medrano, were Cook County officials; sought to obtain approval for a waste-transfer station in return for kickbacks while a Town of Cicero official; and evaded his federal income taxes between 2007 and 2010 by misreporting the income from his law office.
According to sentencing documents, between 2008 and 2010, Moreno engaged in those schemes, as well as five other schemes to:

• enrich himself through kickbacks in return for passing a “green” resolution while a Cook County Commissioner;
• obtain medical transcription business from Cook County in return for kickbacks concealed as legal fees;
• obtain orders of Dermafill bandages from a private hospital by bribing a hospital official; enrich himself through kickbacks while a Town of Cicero official;
• reduce his child-support obligations by suborning perjury during a court hearing. 

Medrano, 60, of Chicago, the former alderman who later worked on Moreno’s countystaff, was sentenced last month to a total of 13 years in federal prison after pleading guilty in one case involving Moreno and being convicted at trial last year in a separate corruption case that stemmed from the same FBI undercover investigation.
Garcia, 54, of Homer Glen, and two other co-defendants, Gerald W. Lombardi, 61, of Darien, and his son, Jerry A. Lombardi, 34, of Downers Grove, who were agents of Chasing Lions, LLC, a disabled-veterans-owned business in Lisle that sold the Dermafill bandages, pleaded guilty to their roles in the scheme and are awaiting sentencing. A sixth co-defendant, Stanley Wozniak, 51, of Chicago, is awaiting the disposition of charges.
The Moreno sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; and James C. Lee, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division.

Crime Bosses Convicted in Macedonia Gambling Sweep

Two fugitive alleged crime bosses have been jailed for life in Macedonia on charges of attempted murder and extortion, following a police crackdown on illegal gambling.

Court officials in the capital Skopje said 13 other alleged members of the criminal organization, who were present at the trial, also received sentences of between 15 months and 14 years and six months.

The convictions follow a police operation on the gang last year centered in Kocani, a town about 150 kilometers (95 miles) southeast of Skopje. Twenty people were arrested in multiple raids when police seized illegal gambling machines and firearms.

The defendants present denied the charges and their lawyers said they would appeal Tuesday's verdict.

Macedonia's conservative government said the police operation demonstrated its resolve to fight organized crime.

Dearborn Man Sentenced on Extortion Charges Involving Employees of DTE Energy

A Dearborn man was sentenced today by United States District Judge Denise Page Hood to 41 months in federal prison after having been convicted by a jury in September of extortion by threatening employees of DTE Energy, U.S. Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement were Paul M. Abbate, Special Agent in Charge of the of the Federal Bureau of Investigation in Detroit, and Michael Lynch, Chief Security Officer for DTE Energy Corporate Security.
Sentenced was Sami William Mustafa, 28, of Dearborn, Michigan.
Evidence presented at trial established that on January 14, 2013, Mustafa was facing a shut-off from DTE Energy for failure to pay his power bill. Mustafa, who felt that DTE was not handling his bill properly, placed two calls to the customer service department and explained to the operators his intention to come down to their office to kill DTE’s employees. During these telephone conversations, Mustafa threatened, “Do you want to get shot in the face over a couple of dollars?” and “It’s going to be another Sandy Hook,” referring to the mass shooting that took place at an elementary school in Connecticut in December 2012. Mustafa also used racially charged language.
In announcing the sentence, McQuade stated, “Mass shootings around the country have taught our society to take these kinds of threats very seriously. The public should be aware that threats of violence will be prosecuted criminally.”
Paul M. Abbate, Special Agent in Charge of the Detroit, Michigan Division of the FBI, said, “ Violent threats like those made by the defendant in this case toward DTE Energy employees are taken very seriously, particularly when the threats make reference to other tragedies in an attempt to intimidate and instill fear. Those whose conduct violates federal law in this manner will be brought to justice.”
Michael Lynch, Chief Security Officer for DTE Energy, commended the FBI and U.S. Attorney’s Office, stating, "I'd like to recognize the efforts of the FBI and U.S. Attorney’s Office for their work to resolve this case and help keep DTE Energy employees safe."

Queens Man Sentenced to 15 Years in Prison for Attempting to Rob and Extort a Bedford Family

Preet Bharara, the United States Attorney for the Southern District of New York, announced that Bartek Zajkowski, a Polish national who resided in Queens, New York, was sentenced today by U.S. District Judge Kenneth M. Karas in White Plains federal court to 15 years in prison, consecutive to any sentence imposed in his pending state case in Connecticut, where he is charged with participating in a home invasion. Zajkowski’s criminal conduct included the attempted extortion of a family by whom he was previously employed and attempted robbery of them in their home in Bedford, Westchester County, New York.
U.S. Attorney Preet Bharara stated, “Bartek Zajkowski became one family’s nightmare of terror and violence. Now, thankfully, the nightmare is over, and we hope his victims can breathe easier. Mr. Zajkowski will be locked up for a long time. The conclusion of this case is a tribute to the cooperative and devoted efforts of law enforcement at every level.”
According to public documents filed in White Plains federal court, and related court proceedings:
Zajkowski, 23, a Polish citizen living in the United States illegally, had previously worked for a contractor in 2010 at the victims’ residence in Bedford Hills, New York.
On the evening of May 5, 2012, Zajkowski, dressed in black and, armed with a gun, approached the victims’ house. He encountered Victim-1 (the husband), bound him with duct tape and plastic ties, and demanded to know where money and valuables were located in the house. The husband told Zajkowski that he had expensive paintings and gold and silver items in the residence. Zajkowski then entered the house and encountered and struggled with Victim-2 (the wife), ultimately shooting her in the stomach with a BB gun. Zajkowski bound Victim-2 with duct tape and plastic ties and asked her to direct him to the expensive paintings. After Zajkowski left the wife to look for the paintings, she was able to free herself and trigger the house’s alarm. Zajkowski escaped with no property other than the husband’s wallet.
Two days later, in the early morning hours of May 7, 2012, Zajkowski burned down a barn located on the victims’ property. One week later, on May 14, 2012 and May 17, 2012, the victims received two extortion letters from an individual later determined to be Zajkowski. The letters demanded that the victims pay Zajkowski $3 million ($1 million for each of their three children) to ensure their family’s safety. In the letters, Zajkowski also discussed his struggle with the wife, claimed responsibility for the barn fire, detailed what he had learned about the family through his surveillance of their home, and threatened harm to the victims’ children. Zajkowski also demanded that the victims deposit the money into a bank account in the Netherlands, a bank account that law enforcement officials later determined to be held by Zajkowski’s mother’s partner.
On June 1, 2012, the FBI and other law enforcement agents arrested Zajkowski pursuant to an arrest warrant stemming from a September 2011 home invasion in Ridgefield, Connecticut. Those Connecticut charges are still pending.
Mr. Bharara praised the outstanding investigative work of the FBI’s Westchester County Violent Crimes Task Force, the Westchester County District Attorney’s Office, the Bedford Police Department, the New York State Police, the Westchester County Department of Public Safety, and the United States Marshals Service, NY/NJ Regional Fugitive Task Force.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Andrew Bauer and Michael Gerber are in charge of the prosecution.

New York City Police Officer and Criminal Associates Charged with Extorting Queens Restauranteur

A three-count indictment was unsealed today in federal court in Brooklyn, New York, charging Redinel Dervishaj, Besnik Llakatura, and Denis Nikolla with Hobbs Act extortion conspiracy, attempted Hobbs Act extortion, and brandishing a firearm in relation to the extortion. The charges arose from the defendants’ extortion of money from a Queens County restaurant owner. Llakatura was at the time of the alleged offenses a police officer with the New York City Police Department (NYPD), assigned to the 120th Precinct in Staten Island, New York. He was suspended without pay upon his arrest. The defendants are scheduled to be arraigned this afternoon at the United States District Court for the Eastern District of New York before United States Magistrate Judge Joan Azrack.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Raymond W. Kelly, Commissioner, NYPD.
“The defendants told their victims they offered 'protection,' but in reality, they peddled fear and intimidation through the Albanian community—their community—of Queens,” stated United States Attorney Lynch. “When one victim turned to law enforcement for help, he was betrayed again by a corrupt officer on the take, who turned his back on his badge, his oath, and his friend in exchange for extortion money in his pocket.” Ms. Lynch expressed her thanks to members of the Joint Organized Crime Task Force, which includes agents of the FBI and detectives of the NYPD, which led the investigation, as well as the NYPD’s Internal Affairs Division for its cooperation and assistance in the investigation.
“By creating a climate of fear, the defendants allegedly coerced an innocent restaurant owner into paying for so-called protective services. The victim was further betrayed when seeking the assistance of Besnik Llakatura, an NYPD officer whose sinister intentions were shrouded by his badge of honor. But Llakatura didn’t serve his community with honor; he, instead, abused his powers to the detriment of the public trust. He remains an exception to those law enforcement officers who work selflessly to weed out crime and corruption in their communities,” stated FBI Assistant Director in Charge Venizelos.
“Llakatura is alleged to have exploited his friendship and shared heritage in order to help the defendants extort a restaurateur. Once it was reported, the NYPD Internal Affairs Bureau and the Department’s Organized Crime Investigations Division thoroughly responded, resulting in the charges being announced today,” Commissioner Kelly said.
According to the indictment and court filings, Dervishaj, Llakatura, and Nikolla demanded monthly payments from a Queens restaurant owner in exchange for “protection,” repeatedly using threats and intimidation to ensure his compliance. The scheme began shortly after the victim opened a restaurant in Astoria when he was visited by Dervishaj and told that he had opened a business in “our neighborhood” and, as a result, “you have to pay us.” The restaurant owner, who understood that he was targeted because he, like the defendants, is of Albanian descent, sought help from his friend Llakatura. Unbeknownst to him, Llakatura, an NYPD officer on Staten Island since 2006, was conspiring with Dervishaj in the extortion. Llakatura discouraged the restaurant owner from going to the police and sought to leverage his position to persuade the victim that he had no choice but to make the demanded payments. When the victim resisted, he was threatened with physical violence and chased at gunpoint down the street in Queens by Nikolla.
Court-authorized wiretaps of the defendants’ telephones uncovered detailed evidence of their efforts to maintain control over businesses in the neighborhood through fear, intimidation, and violence. In one intercepted call, Llakatura joked about how he “taxes” local businesses. In another, Nikolla described to Dervishaj how he had grabbed another victim “by the neck” because he had told Nikolla that he only had $2,000 and could not pay more. (The referenced language from the intercepted calls is based on draft translations from Albanian.)
Over the course of five months, each of the three defendants took turns collecting monthly payments from the Astoria restaurant owner, ultimately collecting $24,000 in so-called protection money.
The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Nadia Shihata and M. Kristin Mace.
Defendants:
Redinel Dervishaj, a/k/a “Redi”
Age: 37
Queens, New York
Besnik Llakatura, a/k/a “Besi” and “Nick”
Age: 34
Staten Island, New York
Denis Nikolla
Age: 33
Brooklyn, New York

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Mississippi Man Charged with Attempted Online Extortion of the University of Louisville Athletic Association

LOUISVILLE, KY—A Jackson, Mississippi man was charged by a federal grand jury meeting in Louisville, Kentucky, on October 16, 2013, with a single count of extortion by means of a threatening communication, announced David J. Hale, United States Attorney for the Western District of Kentucky. The federal indictment was unsealed today, following the arrest this morning of Thomas E. Ray, age 35, in Mississippi, by the U.S. Marshal Service.
According to the indictment, Ray, using the alias “Melinda White,” knowingly sent an e-mail communication from his home in Jackson to the commonwealth of Kentucky on April 23, 2013, with the intent to extort $3.5 million from an association and corporation by threatening to injure the reputation of the University of Louisville Athletic Association.
If convicted, Ray faces no more than two years in prison, a maximum fine of $250,000, and a one-year period of supervised release. His initial appearance on the charge was held today, in U.S. District Court located at 501 E. Court Street, Jackson, Mississippi, in the Southern District of Mississippi. Ray posted a $10,000 bond and was ordered to appear in Louisville District Court on November 7, 2013, at 11:00 a.m.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKiness and is being investigated by the Federal Bureau of Investigation (FBI) and Office of the Kentucky Attorney General.
The indictment of a person by a grand jury is an accusation only and that person is presumed innocent until and unless proven guilty.

Norwalk Man Sentenced to 57 Months in Federal Prison for Extorting $200,000 from Fairfield County Victim

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that Joseph Casolo 45, of Norwalk, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 57 months of imprisonment, followed by three years of supervised release, for extorting approximately $200,000 from a Fairfield County businessman.
According to court documents and statements made in court, between approximately September 2010 and December 2011, Casolo extorted money from a small-business owner in Fairfield County by impersonating organized crime figures. Casolo threatened the victim in person, in phone conversations, and in text messages using multiple personas, repeatedly stating or implying that if the victim failed to make the extortion payments, the victim, the victim’s spouse, and the victim’s daughter would be harmed with violence. Casolo also enlisted the assistance of an individual who identified himself as “Lorenzo,” the organized crime family’s “enforcer,” and made multiple threatening calls to the victim at Casolo’s direction.
The investigation has revealed that the victim made more than $200,000 in cash payments to Casolo as a result of his threats. Casolo shared a portion of these funds with the individual who played the role of Lorenzo.
Casolo has been detained since his arrest on November 20, 2012. On August 1, 2013, he pleaded guilty to one count of extortion.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service-Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department, and the Connecticut State Police. This case is being prosecuted by Assistant United States Attorney Hal Chen.

Mingo County Commissioner Pleads Guilty to Extortion Charge

CHARLESTON, WV—Mingo County Commissioner David Baisden pleaded guilty today to a federal extortion charge, U.S. Attorney Booth Goodwin announced. Baisden admitted to demanding that a Mingo County tire store sell him tires for his personal car at a deeply discounted price available only for government vehicles. When the store insisted that Baisden pay the same price an ordinary citizen would, he cut off its county business, costing the store tens of thousands of dollars since 2009.
“Elected officials have to play by the same rules as everyone else,” said U.S. Attorney Booth Goodwin. “This defendant abused his power to shake down an honest business for special favors. It’s brazen, ugly corruption. Old-fashioned graft like this destroys public confidence in government. Citizens deserve better.”
Among Baisden’s duties as county commissioner were serving as the county’s purchasing agent. In that role, he had the power to decide where the county purchased a wide range of goods and services, including tires for county vehicles. Until 2009, when Baisden joined the county commission and became purchasing agent, Mingo County bought its tires from the Appalachian Tire location in Williamson. In June 2009, however, only months after taking office, Baisden ordered a county garage employee to get him a set of tires from Appalachian for his personal vehicle. Baisden demanded that the store give him the special government price, which included a steep discount not available to private citizens. He threatened to terminate the store’s county business if it refused, and ultimately retaliated against Appalachian by moving the county’s lucrative tire business elsewhere.
Baisden, 66, has been a member of the Mingo County Commission since 2009. Prior to his election as a county commissioner, he was Mingo County’s assessor. Baisden’s plea agreement with the Office of the U.S. Attorney requires him to resign from the county commission and never seek elective office again.
United States District Court Judge John T. Copenhaver, Jr., presided over today’s plea hearing and will sentence Baisden on January 14, 2014. Baisden faces a maximum of 20 years in prison, although non-binding federal sentencing guidelines call for a significantly lower sentence.
The Federal Bureau of Investigation and the West Virginia State Police are conducting the investigation. Counsel to the United States Attorney Steven Ruby and Assistant United States Attorney Haley Bunn are handling the prosecution.

Members of Atlanta-Based Gang Arrested on Federal Extortion Charges

ATLANTA—Five members of an Atlanta-based gang have been charged by a federal grand jury with extortion, drug trafficking, and firearms offenses.
“These defendants, whose calling cards were violence and intimidation, allegedly terrorized local businesses by shaking them down for cash in return for ‘protection,’” said United States Attorney Sally Quillian Yates. “The community does not need this kind of protective service or any of the other illegal services the defendants allegedly offered.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “This investigation provides a very good look inside the activities of an organized and violent criminal enterprise that focused that violence on the Asian-American community here in the metro Atlanta area. The FBI’s investigation into this gang was extensive, and the resulting arrests and indictments are a testament to the hard work of those dedicated individuals who are committed toward making our communities safer.”
According to United States Attorney Yates, the charges, and other information presented in court: Eugene Thomas Chung, a/k/a Yoo Jin Chung (“Chung”); Athith A. Vorasith, a/k/a Andy Vorasith (“Vorasith”); Jong Sung Kim, a/k/a John Kim (“Kim”); Ye El Choi, a/k/a David Choi (“Choi”); and Thomas Jungwon Lee, a/k/a Tommy Lee (“Lee”), are alleged to have conspired together and with others to extort money and property from legitimate business people, using threats, force, violence, and firearms in furtherance of their criminal enterprise.
In about July 2009, Chung and his crew allegedly visited the Gah Bin Korean bar and restaurant in Gwinnett County, Georgia, and demanded a monthly share of the restaurant’s profits in exchange for “protection.” Chung promised that, unless a victim made the demanded payments, Chung and his crew would assault this victim, harass his/her customers and employees, and otherwise damage the restaurant. To reinforce their threats, Chung told the victim his crew routinely carried firearms and terrorized other Korean businesses in the community. Over the next four months, Chung and his criminal associates allegedly strong-armed the victim into making monthly protection payments, ranging from $400 to $800.
Shortly after the victim was assaulted, the FBI opened an investigation, and the victim resumed making protection payments under FBI surveillance.
As part of the ongoing undercover investigation, on about March 10, 2010, the victim introduced an undercover agent to Chung, Vorasith, and Lee. During the recorded meeting, Chung explained to the undercover officer that he ran a marijuana distribution business and offered a menu of other illegal services as well, including gambling, extortion, and debt collection. Chung offered to help the undercover officer if he ever needed money collected and stated, “If you need us to beat up anybody, we’re professionals at that.” Chung added that he and his associates were “best at making people crippled” and said they could also make people “permanently limp, blind, or deaf.” Upon hearing that the undercover officer supposedly was owed $200,000 by a businessman in Houston, Texas, who was behind in payments (and who was actually an undercover officer as well), Chung offered to collect the debt.
On September 17, 2013, a federal grand jury in Atlanta returned a 13-count indictment charging the following individuals with extortion, drug trafficking, and firearms offenses:

• Eugene Thomas Chung, a/k/a Yoo Jin Chung, 39, of Duluth, Georgia
• Athith A. Vorasith, a/k/a Andy Vorasith, 24, of Auburn, Georgia
• Jong Sung Kim, a/k/a John Kim, 48, of Suwanee, Georgia
• Ye El Choi, a/k/a David Choi, 30, of Norcross, Georgia
• Thomas Jungwon Lee, a/k/a Tommy Lee, 32, of Duluth, Georgia

On September 19, 2013, initial searches and arrests were conducted in connection with an unsealed indictment. The defendants made their initial appearances in the United States District Court for the Northern District of Georgia before Magistrate Judge Russell G. Vineyard.
If convicted, Chung and Vorasith face a maximum sentence of up to life imprisonment; Kim, Choi, and Lee face up to 20 years of imprisonment. They also are potentially subject to fines of over $1,000,000.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges, and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by special agents of the Federal Bureau of Investigation.
Assistant United States Attorneys John S. Ghose, Kurt R. Erskine, and Ryan Scott Ferber are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.Pressemails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.

Atlantic City Man Admits Conspiring with Alleged Members of Organized Crime Family and Others in Fraud Scheme

CAMDEN, NJ—An Atlantic City, New Jersey man admitted he conspired to defraud FirstPlus Financial Group Inc. (FPFG), a Texas-based financial services company allegedly targeted for extortionate takeover and looting by a group led by alleged Lucchese organized crime family member Nicodemo S. Scarfo, U.S. Attorney Paul J. Fishman announced.
John Parisi, 52, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to a superseding information charging him with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Parisi and 12 others—including his cousin, Nicodemo S. Scarfo, an alleged member of the Lucchese La Cosa Nostra (LCN) crime family, and Salvatore Pelullo, an alleged associate of the Lucchese and Philadelphia LCN families—were variously charged in a November 2011 indictment with a racketeering conspiracy, including acts of securities fraud, wire fraud, mail fraud, bank fraud, extortion, interstate travel in aid of racketeering, money laundering, and obstruction of justice. The indictment charged that FPFG was targeted for extortionate takeover and looting by a group of the conspirators. A substantial part of the enterprise’s activities occurred in New Jersey, including communications and the transfer of money into and out of the state. John Parisi admitted that he joined the conspiracy in April 2007.
Parisi managed a family trust and a limited liability company on behalf of Scarfo as part of the scheme to defraud FPFG. Parisi said Scarfo, his cousin, directed Parisi in the use of various bank accounts through which Scarfo received hundreds of thousands of dollars between July 2007 and April 2008 as part of the scheme. As alleged in the indictment, the money involved proceeds of the fraud that Scarfo allegedly received as part of a fraudulent “consulting” agreement between his shell company, Learned Associates, and one controlled by Pelullo. The money also involved proceeds received from the fraudulent sale of Scarfo and Pelullo’s worthless companies to FPFG in 2007. The receipt of the fraudulent proceeds often occurred in the form of wire transfers from accounts in Pennsylvania to accounts in New Jersey.
Parisi also said that beginning in February 2008 he assisted Scarfo and his then-fiancée, Lisa Marie Scarfo, obtain a mortgage for a $715,000 house in Egg Harbor Township, New Jersey, that the Scarfos intended to purchase. Lisa Marie Scarfo pleaded guilty on September 17, 2013, to a conspiracy to make a false mortgage loan application in connection with the purchase of the Egg Harbor Township house.
Scarfo, Pelullo, and six other defendants charged in November 2011—including attorneys William Maxwell, Cory Leshner, David Adler, Gary McCarthy, and Donald Manno, as well as John Maxwell—are scheduled for trial beginning October 28, 2013. Todd Stark, also charged in the indictment, previously pleaded guilty to providing ammunition to Scarfo and Pelullo, convicted felons.
The conspiracy count to which Parisi pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for January 17, 2014.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, New York Region; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Thomas J. Cannon in Newark. He also thanked the FBI under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia for its vital assistance and the U.S. Securities and Exchange Commission for its role.
The government is represented by Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the New Jersey U.S. Attorney’s Office Organized Crime/Gangs Unit and Criminal Division in Camden and Trial Attorney Adam Small of the Organized Crime and Gang Section of the Justice Department’s Criminal Division.
With respect to the defendants awaiting trial, the charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

Wife of Nicodemo S. Scarfo Admits Conspiring with Him and Others to Defraud a Mortgage Lender to Buy Their House

CAMDEN, NJ—The wife of a reputed mob figure today admitted she conspired to defraud a mortgage lender in order to buy a $715,000 house in Egg Harbor Township, New Jersey, U.S. Attorney Paul J. Fishman and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division announced.
Lisa Marie Scarfo, 34, of Elmer, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to a superseding information charging her with conspiracy to make false statements for the purpose of influencing the actions of the bank on her mortgage loan application.
According to documents filed in this case and statements made in court:
In November 2011, Lisa Marie Scarfo and 12 others—including her husband, Nicodemo S. Scarfo, an alleged member of the Lucchese La Cosa Nostra (LCN) crime family, and Salvatore Pelullo, an alleged associate of the Lucchese and Philadelphia LCN families—were variously charged in a 25-count indictment with a racketeering conspiracy including acts of securities fraud, wire fraud, mail fraud, bank fraud, extortion, interstate travel in aid of racketeering, money laundering, and obstruction of justice. The indictment charged that FirstPlus Financial Group Inc. (FPFG), a Texas-based financial services company, was targeted for extortionate takeover and looting by a group of the conspirators. A substantial part of the enterprise’s activities occurred in New Jersey, including communications and the transfer of money into and out of the state.
Lisa Marie Scarfo admitted that she joined the mortgage fraud conspiracy in January 2008 when she worked with her then-fiancé, Nicodemo S. Scarfo, and others to secure a $500,000 mortgage from St. Edmond’s Federal Savings Bank to purchase the Egg Harbor Township house. Drossner previously pleaded guilty and admitted that at the direction of Pelullo, he created false tax returns to help Lisa Marie Scarfo qualify for a mortgage for the house. The indictment alleges that Nicodemo S. Scarfo used money looted from FPFG for the $215,000 down payment on the house. The false tax returns, which exaggerated Lisa Marie Scarfo’s income so that she could qualify for the mortgage without naming her then-fiancé Scarfo, were used to secure the mortgage.
After the FPFG scheme was shut down by federal law enforcement in May 2008, the Scarfos were unable to pay the mortgage, and the house ultimately went into foreclosure. It was sold by the bank in 2010.
Nicodemo S. Scarfo, Pelullo, and eight other defendants charged in November 2011—including attorneys William Maxwell, Cory Leshner, David Adler, Gary McCarthy, and Donald Manno—are scheduled for trial beginning October 28, 2013. Todd Stark, also charged in the indictment, previously pleaded guilty to providing ammunition to Scarfo and Pelullo, convicted felons.
The conspiracy count to which Lisa Marie Scarfo pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for January 10, 2014.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, New York Region; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Thomas J. Cannon in Newark. He also thanked the FBI under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia for its vital assistance and the U.S. Securities and Exchange Commission for its role.
The government is represented by Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the New Jersey U.S. Attorney’s Office Organized Crime/Gangs Unit and Criminal Division in Camden and Trial Attorney Adam Small of the Organized Crime and Gang Section of the Justice Department’s Criminal Division.
With respect to the defendants awaiting trial, the charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

California Man Sentenced to More Than Seven Years in $122 Million Extortion Plot

BECKLEY, WV—U.S. Attorney Booth Goodwin today announced that Vivek Shah, 26, of West Hollywood, California, was sentenced to seven years and three months in federal prison for orchestrating a multi-million-dollar extortion scheme. Last year, Shah threatened to kill family members of seven prominent victims, including movie producer Harvey Weinstein, Groupon co-founder Eric Lefkofsky, and coal executive Chris Cline, unless his targets wired tens of millions of dollars into offshore bank accounts.
"Imagine how terrifying it would be to open the mail and find a threat to kill your spouse or your children," said U.S. Attorney Booth Goodwin. "This defendant carried out a carefully planned scheme designed to frighten his victims out of more than $120 million. It was an extraordinarily brazen crime, and I'm pleased, for the victims' sakes, that we were able to put a stop to it so quickly."
Shah’s other victims included oil and gas billionaire Terry Pegula, from whom he demanded $34 million; Playtone film company co-owner Gary Goetzman, from whom he demanded $9.6 million; Ryan Kavanaugh, founder of Relativity Media, from whom Shah demanded $11.3 million; and Dannine Avara, daughter of a prominent Texas oil-industry executive, from whom Shah demanded $35 million.
Shah demanded $4 million from Weinstein, $16 million from Lefkofsky, and $13 million from Cline. His demands totaled more than $122 million.
Shah sent letters threatening specific family members of his victims by name and used language carefully designed to persuade his targets that his threats were serious.
Shah used various means to avoid detection during the scheme by creating false identities. He fraudulently opened financial accounts in his victims' names. Shah also made purchases using prepaid debit cards that he registered under aliases. To avoid being traced when he committed criminal acts using his computer, he sought out anonymous, public Internet hotspots; altered the address associated with the computer’s network card; and routed his Internet communications through special servers that disguise users' identities. He also created numerous accounts with the U.S. Postal Service under false names.
Shah was arrested by FBI agents on August 10, 2012, in Schaumberg, Ill.
This investigation was conducted jointly by the Federal Bureau of Investigation’s Pittsburgh, Los Angeles, and Chicago Divisions and the United States Postal Inspection Service.
Counsel to the United States Attorney Steve Ruby handled the prosecution.