International Arms Dealers Charged with Conspiring to Unlawfully Export Weapons and Ammunition from the United States to Sudan and Iraq

 

An indictment was unsealed yesterday charging Syria national Mohamad Deiry and Lebanese national Samer Rayya, both principals of an Iraq-based arms company, Black Shield Ltd., with conspiring to export munitions from the United States to Sudan and Iraq without the necessary licenses and approvals, in violation of the Arms Export Control Act. Additionally, Deiry and Rayya were charged with conspiring to commit money laundering in furtherance of their illicit procurement activities.

Both Rayya and Deiry remain at large and wanted by the FBI. The defendants have ties to or may visit Syria, Lebanon, Iraq, Turkey, Russia, Belarus, Sudan and Libya.

Concurrent with this announcement, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Black Shield, also known as Black Shield for Trading LLC, Deiry, and Rayya, as well as other individuals and entities involved in the procurement network used by Deiry and Rayya in support of Black Shield’s illegal supply of munitions used in conflicts around the world.

“These defendants allegedly ran an international arm trafficking ring and conspired to unlawfully export anti-aircraft ammunition and other military arms and munitions from the United States to Sudan and Iraq, promoting violence and putting Americans and our allies at risk,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “These charges exemplify the Justice Department’s commitment to investigating and holding accountable those who defy our U.S. export controls.”

“This indictment demonstrates the FBI’s resolve to investigate those who seek to illegally acquire and sell U.S. arms, ultimately fueling conflict around the world,” said Executive Assistant Director of the FBI’s National Security Branch Larissa L. Knapp. “Deiry and Rayya’s alleged actions will not be taken lightly, and the FBI will do all within its power to ensure that they are brought to justice. Illegal arms exportation and international money laundering will not be tolerated.”

“The U.S. Attorney’s Office is committed to the prosecution of those individuals and corporations that illicitly procure munitions to be shared overseas,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Our goal is to identify and thwart arms traffickers and money launderers whose criminal acts fuel the destabilization of nations and perpetuation of international conflicts.”

According to the indictment, between April and November 2016, Deiry, Rayya and others conspired to export munitions, including 23-millimeter antiaircraft ammunition, Bushmaster 40mm Grenade Launchers, FN SCAR-L CQC (5.56x45mm) assault rifles, FN SCAR-H CQC (7.62x51mm) assault rifles, FNH 5.7x28mm green tip ammunition, and HK MR762A1 LRP ii (7.62x51mm) assault rifles, from the United States to Sudan and Iraq without first obtaining the required licenses or approvals from DDTC. Specifically, the co-conspirators attempted to illegally acquire the munitions from the United States in a deal worth $1,200,000, which was part of a larger scheme to illegally acquire $4 million worth of 23-millimeter ammunition. The conspiracy involved the transshipment of the munitions from the United States to Guatemala and from Guatemala to false end-users in Cyprus before ultimately arriving in Sudan and Iraq. In furtherance of the conspiracy, Black Shield wired a downpayment of $100,000 from a front company located in Benin, West Africa. The conspiracy involved both Black Shield emissaries from India and Belarus, who traveled to the United States to inspect the munitions, as well as Israeli American and Israeli Romanian-Uzbeki brokers, who acted as middlemen between the supplier and end-users.

Deiry and Rayya are charged with conspiracy to unlawfully export defense articles from the United States, which carries a maximum statutory penalty of five years in prison; and conspiracy to engage in international money laundering, which carries a maximum statutory penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Miami Field Office is investigating the case.

Assistant U.S. Attorney Randy Hummel for the Southern District of Florida is prosecuting the case, with valuable assistance from Trial Attorneys Brendan Geary and Tracy Varghese of the National Security Division’s Counterintelligence and Export Control Section.

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

Attorney General James Leads Multistate Coalition to Defend the Voting Rights Act

 

19 AGs Oppose Effort to Undermine Anti-Discrimination Protections for Minority Voters in New Amicus Brief

New York Attorney General Letitia James today co-led a coalition of 19 attorneys general defending Section 2 of the Voting Rights Act of 1965—a key protection against racial discrimination in elections—against challenges raised in a Georgia redistricting lawsuit. In an amicus brief filed in Pendergrass v. Secretary of State of Georgia and two other consolidated cases, Attorney General James and the coalition argue that the United States Court of Appeals for the Eleventh Circuit should uphold decades of legal precedent protecting the voting power of minority communities. The coalition, through the amicus brief, urges the Court to uphold the constitutionality of Section 2 and private citizens’ rights to file lawsuits to challenge discriminatory election practices for violating Section 2. 

“Empowering Americans to have their voices heard and respected in the halls of power is the very foundation of our society,” said Attorney General James. “The Voting Rights Act is an essential civil rights law that protects voters everywhere from discrimination and disenfranchisement. Drawing district lines to undermine the political power of voters of color is illegal and an attack on the core principles of our democracy. Today, I am joining my fellow attorneys general to stand up for a critical part of the Voting Rights Act that protects voters from discrimination.” 

Section 2 of the Voting Rights Act bans any election practice or procedure that “results in a denial or abridgement of the right of any citizen of the United States to vote on account of race or color” or membership in a minority-language group. It also prohibits election laws or structures that create unequal opportunities for political participation and prevents states from creating legislative districts that dilute the political power of minority voters. 

After the 2020 census, states across the country redrew electoral maps. In 2021 and 2022, voting rights organizations and multiple individual voters took action to challenge Georgia’s new congressional and state legislative district maps, alleging that the maps unlawfully diluted the political power of the state’s Black voters. The U.S. District Court for the Northern District of Georgia ruled in favor of the voters and voting rights organizations and ordered Georgia to redraw its maps to include additional majority-Black districts. The Georgia Secretary of State appealed this decision, arguing in part that Section 2 of the Voting Rights Act is unconstitutional to the extent that it authorized the court to order Georgia to draw race-conscious maps to remedy Section 2 violations, and that individual voters and private organizations do not have a right to sue to challenge racially discriminatory election practices for violating Section 2. 

Section 2 is the nation’s primary tool to combat racially discriminatory election practices, such as racially gerrymandered districts, and the attorneys general recognize the important place these private lawsuits play in fighting for equal voting rights. In their amicus brief, Attorney General James and the coalition argue that it is constitutional to take race into account to address Section 2 violations, and that this is a critical tool authorized by Congress to enforce the Fifteenth Amendment, which bans states from denying or abridging citizens’ right to vote on the basis of race. They also argue that the text of Section 2 and decades of legal precedent clearly establish that individual voters have the power to challenge racially discriminatory election practices under Section 2. Private citizens have sued to enforce Section 2 since it was enacted, and all but one court that has addressed the issue has ruled that they have this power. 

Attorney General James has been a leader on protecting voting rights, in New York state and throughout the nation. Earlier this month, Attorney General James secured up to $1.25 million from two conspiracy theorists who intimidated Black voters in New York with menacing robocalls. Before every general and primary election, Attorney General James issues alerts to ensure New Yorkers are aware of their voting rights and encourages New Yorkers to contact OAG’s Election Protection Hotline for assistance with voting. In November 2022, Attorney General James issued a statement supporting the Appellate Division, Third Department's decision upholding New York's absentee ballot reforms to increase access to the polls. In August 2021, Attorney General James co-led a coalition of 22 attorneys general in opposing Georgia’s discriminatory law that would make it more difficult for millions of Georgians—especially Black Georgians—to vote. In May 2021, Attorney General James filed a lawsuit against the Rensselaer County Board of Elections (BOE) for failing to provide county voters with adequate and equitable access to early voting poll sites, which in August 2021, affirmed and ordered BOE to select new early voting poll sites. Before the 2020 primary elections, Attorney General James called for automatic absentee voting to allow individuals to vote during the COVID-19 pandemic.

Joining Attorney General James in filing the amicus brief are the attorneys general of California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, North Carolina, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia.

MAYOR ADAMS UNVEILS NEW DETAILS OF SKYLINE-SHAPING OFFICE TOWER, BOLSTERS ONGOING RESURGENCE OF MIDTOWN MANHATTAN

 

Vornado, Kenneth Griffin, and Rudin Advance Plans for 62-Story, State-of-the-Art Office Tower With 1.8 Million Square-Feet of Office Space, New Public Concourse 

With Citadel and Citadel Securities as Anchor Tenants, Tower Will House More Than 6,000 Jobs 

Mayor Adams Reveals Renderings of New Tower Expected to Be Completed by 2032

Builds on Adams Administration’s Landmark Progress Protecting Public Safety, Rebuilding New York City’s Economy, and Creating More Livable City

At the Association for a Better New York’s (ABNY) Power Breakfast this morning, New York City Mayor Eric Adams today unveiled new details and renderings of a once-in-a-generation office tower at 350 Park Avenue that will be home to more than 6,000 jobs in Midtown Manhattan and further strengthens the city’s economic recovery. After filing an application with the New York City Department of City Planning, Vornado Realty Trust, Kenneth Griffin, and Rudin are advancing a new tower that will deliver 1.8 million square feet of commercial office space, a new public concourse, and more than $35.8 million for the city’s East Midtown Public Realm Improvement Fund. Additionally, the project will purchase excess development rights from St. Patrick’s Cathedral and Saint Bartholomew’s Church, contributing a combined $150 million for upkeep of these historic landmarks. The global investment firm Citadel and leading market maker Citadel Securities,a will serve as anchor tenants,occupying at least 850,000 square-feet for their new Manhattan offices. The project is expected to begin the city’s public review process early next year.

“Today, we are doubling down on our efforts to build a ‘New’ New York with a project that will help supercharge our economy and expand New York City’s iconic skyline,” said Mayor Adams. “Home to more than 6,000 jobs, this project will build on our continued efforts to energize Midtown Manhattan as the world’s most important business address and an economic engine for working-class New Yorkers. New York City has come back stronger than ever thanks to our focus on protecting public safety, rebuilding our economy, and making our city more livable.”

“We are thrilled to announce the details of a historic investment in Midtown, which will help further revitalize a crucial corridor of New York City,” said First Deputy Mayor Sheena Wright. “Today’s announcement is an example of the public and private sectors working together to invest in communities, improve the public realm, and create new housing and economic opportunities. I am proud that we are continuing to deliver on our commitment to make New York City the best place to live and work for all New Yorkers.”

“The announcement of a new skyscraper on Park Avenue is tremendously exciting and another example of the city’s focus on Midtown as articulated in the ‘New’ New York action plan,” said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. “From the Outdoor Dining program, to the rollout of containerized trash collection and M-CORE programs, to the ‘Get Sheds Down’ initiative, the Adams administration is advancing Midtown’s standing as the most important central business district in the world by creating live-work-play districts that include world-class offices for the modern worker and a dynamic public realm to engage New Yorkers and tourists alike.”

“This investment opens a new chapter for Midtown — and closes the book on those who predicted its demise,” said Deputy Mayor for Operations Meera Joshi. “Midtown's revitalization is being led by its public realm — including investments in Fifth Avenue, with the crown jewels of Central Park and Bryant Park at either end. Together, with our business improvement district and parks partners, we are reintroducing Fifth Avenue to the world and creating a vibrant live, work, play community for a new era.”

The 62-story tower will include 1.8 million square feet of office space that shape the skyline of New York City. Credit: Foster + Partners

The 12,500 square foot public concourse will offer visitors social seating, green space, and art displays. Credit: Foster + Partners

As anchor tenants, Citadel and Citadel Securities’ workforce — currently 2,100 and growing — will occupy a significant portion of the tower, further cementing New York City’s position as the financial capital of the world.

Designed by leading architecture firm Foster + Partners, the tower will feature floor-to-ceiling glass, landscaped terraces, and a stepped configuration to create an iconic, distinctive skyscraper. Additionally, 350 Park will prioritize sustainable design through the use of a high-performance building envelope and resilient materials. The tower will also enhance the public realm on Park Avenue through a world-class public concourse. Occupying 12,500 square feet of the project’s ground floor along Park Avenue, the public concourse will feature green space, social seating, greater visibility of nearby landmarks, prominent art displays, and opportunities for local businesses.

Vornado, Kenneth Griffin, and Rudin’s multi-billion investment in this new 62-story office tower comes amid the broader resurgence of Midtown Manhattan following Mayor Adams’ commitment to reimagine Fifth Avenue as a more appealing district for residents, workers, and visitors. This commitment — which includes significant investments in the public realm, the launch of the Midtown South Neighborhood Plan to create new housing and economic opportunities in the area, and generational projects such as the $10 billion effort to replace and expand the Midtown Bus Terminal —  has already helped revitalize one of New York City’s most important economic corridors. In 2023, Fifth Avenue added nearly 1,000 new, high-paying jobs and experienced a 20 percent increase in visitors. Additionally, the administration has launched several highly-successful Open Streets initiatives that have driven millions of dollars in additional spending to Midtown businesses during the holiday season and taken new steps to permanently reimagine Fifth Avenue as a pedestrian-friendly district.

Over his first two years in office, Mayor Adams committed $375 million to creating new public spaces, as well as launched “Chinatown Connections” to reimagine Chinatown’s Kimlau Square; “Broadway Vision” to deliver two new plazas, shared streets, and a two-way bike lane on Broadway; and “Dining Out NYC” to create better, cleaner, and more accessible sidewalks and roadway cafes.

“This state-of-the-art office tower further cements this administration’s commitment to a ‘New’ New York by fueling job creation and a resurgence of Midtown Manhattan,” said New York City Economic Development Corporation President & CEO Andrew Kimball. “This is further evidence that the market is responding to Mayor Adams’ economic development strategy, with a focus on improving quality of life and a willingness to partner with the private sector.”

“The unveiling of 350 Park Avenue is a strong signal about New York City’s ongoing economic resurgence and shows how smart planning pays dividends,” said New York City Department of Citywide Planning Director and Chair of the City Planning Commission Dan Garodnick. “By creating jobs, providing public space, and supporting historic landmarks, this project exemplifies our commitment to keeping Midtown Manhattan a compelling destination for workers, residents, and visitors alike and demonstrates the continued value of the East Midtown rezoning.”

Today’s announcement follows multiple successful efforts by the Adams administration to revive New York City’s economy following the COVID-19 pandemic and transform the city’s commercial corridors into 24/7 districts where people can both live and work. Released in December 2022, the “‘New’ New York: Making New York Work for Everyone” plan detailed 40 concrete proposals for creating durable and equitable economic growth, including recommendations for transforming Fifth Avenue into a world-class, pedestrian-forward boulevard. In the short time since Mayor Adams announced his commitment to re-imagine one of the most iconic streets in the world, Fifth Avenue has undergone a period of unprecedented investment. Only two commercial real estate sales, worth a total of $170 million, were completed in the corridor in the year prior to Mayor Adams’ commitment to transform Fifth Avenue, but the year afterwards saw a total of 10 sales worth $3.9 billion.

As a result of these initiatives and additional efforts by the Adams administration, New York City has recovered all of the private-sector jobs lost during the pandemic. To continue growing the city’s economy, Mayor Adams has launched a new, multi-pronged effort to connect New Yorkers with jobs and training opportunities as part of his “Jobs NYC” initiative; committed to growing the city’s “green-collar” jobs of the future through his Green Economy Action Plan; and broken ground on the city’s largest 100 percent affordable housing development in 40 years at Willets Point, more than a year ahead of schedule.

Today’s announcement builds on the Adams administration’s progress protecting public safety, rebuilding the city’s economy, and creating a more livable city for all New Yorkers. Over the last two years, the administration has remained focused on driving crime down through proactive strategies, including initiatives that have cracked down on auto thefts, combatted retail thefts, and invested over $500 million in preventing gun violence. As a result of these strategies and the work of the New York City Police Department (NYPD), overall crime has trended downwards in the first quarter of 2024, with month after month decreases. Moreover, following the deployment of 1,000 additional NYPD officers into the city’s public transit system, as well as another 800 NYPD officers focused on preventing fare evasion, overall crime in the transit system plummeted by 23.5 percent in March compared to the same period last year.

Mayor Adams has made improving quality of life a cornerstone of his administration by making the investments that have transformed New York into a cleaner, greener, and more livable city, including by laying out plans to tackle the city’s affordable housing crisis. After delivering record amounts of affordable housing in 2023, the Adams administration, just last week, won approval on the second phase of the Willets Point development, which will feature the city’s biggest all-affordable housing project in 40 years, as well a new hotel, over 150,000 square-feet of new public open space, and the city’s first soccer stadium. Additionally, just yesterday, a state budget agreement was announced that would give New York City new tools to create even more of the housing the city needs.

As a result of a deal announced by Governor Hochul and the New York State Legislature yesterday — including a new construction tax incentive to create affordable housing, utilizing vacant offices to convert into housing, a pilot of legal, safe basement and cellar apartments, and lifting the density cap for residential buildings — the Adams administration will now be able to help deliver more affordable housing across all five boroughs.

“I am excited to partner with Vornado and Rudin to build a new, iconic office tower for our growing team at the most sought-after address on Park Avenue,” said Kenneth Griffin, founder and CEO, Citadel. “The building will provide our colleagues with an extraordinary environment to collaborate, create, and deliver on behalf of our investors in Citadel and clients of Citadel Securities. The iconic building will have incredible light, 360-degree views, and spacious layouts in one of the leading financial centers in the world.”

“350 Park Avenue, anchored by two of the most successful financial firms of our time, Citadel and Citadel Securities, will reinforce New York City as the financial capital of the world and Park Avenue as the premier business boulevard,” said Steven Roth, chairman and CEO, Vornado Realty Trust. “Building on our track record of developing the very best office towers and creating world-class streetscapes, 350 Park Avenue will provide an unparalleled work environment with a grand civic expanse fronting Park Avenue. Our partnership with Ken Griffin and Rudin validates the quality of our development site and New York’s continued preeminence as a center for commerce.”

“The Rudin family is proud to partner with Kenneth Griffin, and Vornado to create this iconic skyscraper on Park Avenue,” said Bill Rudin, co-executive chairman, Rudin. “This landmark project is poised to leave an indelible mark on New York’s skyline, symbolizing New York’s endurance as the world’s leading financial center.”

TEEN CHARGED FOR SHOVING ELDERLY WOMAN DOWN CHURCH STEPS

 

Queens District Attorney Melinda Katz announced that her office has charged a 16-year-old with first-degree assault, first-degree robbery and grand larceny for attacking an elderly woman on the steps of Saint Demetrios Greek Orthodox Church in Briarwood on April 7. The teen is accused of shoving the 68-year-old victim down a flight of cement stairs before taking her purse and car keys and stealing her car. He was separately charged with robbery for an unrelated incident on April 4 during which he is accused of stealing another woman’s car. Arraignment is pending.

District Attorney Katz said: “The viciousness with which the defendant is accused of having committed the robbery at the church struck the city at its core. As alleged, he chose to rob an elderly woman by first pushing her down the stairs and then proceeded to take her purse and leave her to suffer while he took off in her car. He will now have to answer for the serious charges levied against him by my office. Thank you to NYPD Chief of Detectives Joseph Kenny and the entire Detective Bureau for their relentless work.”

The defendant, of 89th Avenue in Jamaica, was charged in the April 7 incident with assault in the first degree, robbery in the first degree, assault in the second degree, two counts of grand larceny and criminal possession of stolen property in the fourth degree and criminal possession of stolen property in the fifth degree.

He was charged in the April 4 case with two counts of robbery in the first degree, two counts of robbery in the second degree, grand larceny in the third degree, robbery in the third degree, criminal possession of stolen property in the third degree, three counts of grand larceny in the fourth degree, criminal possession of stolen property in the fourth degree, menacing in the second degree, petit larceny and unauthorized use of a vehicle in the third degree.

He faces up to 25 years in prison if convicted.

According to the charges:

• On April 7, at approximately 9:15 a.m., Irene Tahliambouris, 68, was walking up a flight of stairs to enter Saint Demetrios Greek Orthodox Church at 84-35 152nd
• As Tahliambouris approached the top step, the defendant is seen on video surveillance running up the staircase beside her and then stepping in front of the victim.
• The teen struck Tahliambouris causing her to fall backwards down the stairs landing headfirst on the concrete sidewalk, sustaining serious injuries.
• Once the victim was on the ground, the defendant is seen on video surveillance picking up Tahliambouris’ purse which contained money, credit cards, her cell phone and car key. He can be seen putting his hands near the victim’s waist and pockets. The victim can be seen motionless on the ground.
• The defendant is seen on video entering Tahliambouris’ 2006 Nissan Altima and driving it away.
• Tahliambouris was taken to a local hospital with a fractured skull and bleeding on the brain. She remains in critical but stable condition, unable to stand or move on her own.
• Following an extensive investigation by members of the 107th Police Precinct, with the assistance of the Queens District Attorney’s Office, the defendant was apprehended in front of his residence on April 11.
• The teen has been separately charged with following a woman into an elevator at a building on 127th Avenue in Rochdale Village on April 4 at approximately 10:15 a.m.
• He told the woman he followed her from a bank and saw her take money out and then demanded the money and her keys. He put his hand in his pocket and pointed what appeared to be a weapon at the woman. The victim gave the teen her car keys.
• The teen is seen on video surveillance leaving the building and getting into the woman’s Toyota Corolla and driving away.

**Criminal complaints and indictments are accusations. A defendant is presumed innocent until proven guilty.

D.A. Bragg Announces Indictment Of Man For Two Shootings In Tompkins Square Park

 

Manhattan District Attorney Alvin L. Bragg, Jr. announced the indictment of WALDEMAR ALVERIO, 38, for committing two shootings in Tompkins Square Park within five days, seriously injuring two people. ALVERIO is charged in a New York State Supreme Court indictment with three counts of An Attempt to Commit the Crime of Murder in the Second Degree, two counts of Assault in the First Degree, one count of An Attempt to Commit the Crime of Assault in the First Degree, and two counts of Criminal Possession of a Weapon in the Second Degree. [1] 

“As alleged, Waldemar Alverio shot two people in Tompkins Square Park last month and put numerous lives in danger. Our parks should be a place where New Yorkers and tourists can relax without fearing for their safety,” said District Attorney Bragg. “Combatting gun violence remains my top priority and my Office will hold those who commit these serious acts of violence accountable. I hope the victims continue to heal from their wounds.” 

According to court documents and statements made on the record in court, on March 16, 2024, in Tompkins Square Park at approximately 12:45 p.m., two men allegedly chased, punched, and kicked ALVERIO before running away. As they ran off, ALVERIO unzipped his bag and pulled out a firearm, firing at them five times. 

ALVERIO struck one of them in the buttocks, fracturing his pelvis and lodging a bullet in his hip. ALVERIO also shot a bystander, a 53-year-old tourist, fracturing her right hip, which had to be surgically replaced. She will require months of physical therapy as she learns how to walk again. 

ALVERIO exited the park at East 9th Street and Avenue A and rode his bicycle towards 1st Avenue. 

Five days later, on March 21, 2024, ALVERIO allegedly returned to Tompkins Square Park at approximately 12:05 p.m., approached a group in the park, and shot at them five times. While ALVERIO did not strike any victims on that day, one bullet smashed through a window into a bedroom in an apartment building across the street from the park, and another bullet smashed through a window and lodged in a stairwell in a second building across from the park. 

ALVERIO was apprehended on the Lower East Side on March 26, 2024, by police officers who recognized him from a wanted flyer. 

Assistant D.A. Joseph Abrams (Trial Bureau 70) is handling the prosecution of this case, under the supervision of Bureau Chief David Hammer (Trial Bureau 70) and Executive Assistant D.A. Lisa DelPizzo (Chief of the Trial Division). Paralegal Michelle Sheinker is providing valuable assistance in this case. 

D.A. Bragg thanked the NYPD, particularly Detectives Christopher McNeely, Danielle Venuto and Officer Vladislav Abramov of the 9th Precinct Detective Squad, and Detective Joseph Cohen of the Manhattan South Homicide Squad. 

Defendant Information: 

WALDEMAR ALVERIO 

Charged: 

•   An Attempt to Commit the Crime of Murder in the Second Degree, a class B felony, three counts
•   Assault in the First Degree, a class B felony, two counts
•   An Attempt to Commit the Crime of Assault in the First Degree, a class C felony, one count 
•  Criminal Possession of a Weapon in the Second Degree, a class C felony, two counts

[1] The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. All factual recitations are derived from documents filed in court and statements made on the record in court.

Nebraska Man Indicted for Multi-Million Dollar "Cryptojacking" Scheme

 

Defendant Allegedly Stole More Than $3.5 Million in Cloud Computing Services In Order to Mine Cryptocurrency

An indictment was unsealed charging Charles O. Parks III, also known as “CP3O,” with operating a large-scale illegal “cryptojacking” operation.  As part of the scheme, Parks defrauded two well-known providers of cloud computing services out of more than $3.5 million worth of computing resources in order to mine cryptocurrency worth nearly $1 million.  Parks was charged with wire fraud, money laundering and engaging in unlawful monetary transactions in connection with the scheme.  Parks was arrested on April 13, 2024 in Nebraska and is scheduled to make his initial appearance in federal court in Omaha on April 16, 2024.

Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Edward A. Caban, Commissioner, New York City Police Department (NYPD) announced the arrest and charges.

“As alleged, by hijacking cloud providers’ computing power, Parks stole millions worth of powerful computing resources to acquire cryptocurrency,” stated United States Attorney Peace. “This Office will continue to prioritize prosecuting criminal actors who use new, sophisticated technology to engage in the old scheme of fraud and deceit.”

Mr. Peace expressed his appreciation to the FBI’s New York Cyber Crimes Task Force (CCTF) and the United States Attorney’s Office for the District of Nebraska for their assistance on this case.

“Charles Parks, also known as CP3O, allegedly created a cryptojacking scheme to defraud prominent cloud service providers of millions and illegally mine approximately $1M in cryptocurrency for personal use. Criminals are becoming more adept at manipulating digital tools and hiding behind advanced technology, which often causes significant financial damage to their victims. The FBI is committed to the steadfast pursuit of those who attempt to develop innovative techniques to commit crimes,” stated FBI Assistant Director-in-Charge Smith. 

“This arrest illustrates the power of law enforcement joining forces with the private sector to identify and track down cybercriminals, and to put an end to their sophisticated thievery,” stated NYPD Commissioner Caban. “While the threat landscape in this space is growing in complexity and depth, the NYPD and our federal partners continue to ably confront malicious actors even as they adopt new tactics.”

“Cryptojacking,” also referred to as malicious cryptomining, is the unauthorized use or hijacking of another party’s resources, such as electricity, hardware or computing power to mine cryptocurrency.  As alleged in the indictment, from in or about January 2021 through August 2021, Parks created and used a variety of names, corporate affiliations and email addresses, including emails with domains from corporate entities he operated called “MultiMillionaire LLC” and “CP3O LLC,” to register numerous accounts with the cloud providers and to gain access to massive amounts of computing processing power and storage that he did not pay for.  Parks used those fraudulently obtained resources to mine various cryptocurrencies including Ether (ETH), Litecoin (LTC) and Monero (XMR).  Parks tricked the providers into approving heightened privileges and benefits, including elevated levels of cloud computing services and deferred billing accommodations, and deflected inquiries from the providers regarding questionable data usage and mounting unpaid subscription balances. 

Parks converted and laundered the cryptocurrency proceeds through cryptocurrency exchanges, a non-fungible token (NFT) marketplace, an online payment provider, and traditional bank accounts, in order to disguise the audit trail and disassociate the funds from the fraud.  Parks also structured various money movements to avoid transaction reporting requirements under federal law.  After converting the ill-gotten cryptocurrency into dollars, Parks used the proceeds of the scheme to make extravagant purchases, including a Mercedes Benz luxury car, jewelry and first-class hotel and travel expenses.

The charges in the indictment are allegations, and Parks is presumed innocent unless and until proven guilty.  If convicted, Parks faces a maximum sentence of 20 years’ imprisonment on the wire fraud and money laundering charges and 10 years’ imprisonment on the unlawful monetary transactions charges.