COUNCILMAN REV. RUBEN DIAZ INVITES YOU TO CELEBRATE CINCO DE MAYO WITH REAL BULLS

  There was no bull about it as the Cinco De Mayo celebration at 2069 Bruckner Blvd. had real bulls on hand to celebrate the event. There were games, food, entertainment, a mechanical, and even real bulls on hand. Hundreds of people celebrated Cinco de Mayo as they came dressed for the occasion with their cowboy or cowgirl attire on. Below are a few photos of the event. 

Above - There was even a play area set up for children with various plush riding horses, games and amusements. 

Below  Bronx Borough President Ruben Diaz Jr. joined his father Councilman Ruben Diaz Sr., as Councilman Diaz Sr. shows off the owner and the name of the store where he buys  his unique cowboy attire. The store has two locations, one in New Rochelle and the other in Yonkers. 

Above - The Diaz's are joined by the owner of the company that set up the mini rodeo.

Below - The Diaz's pose with a hat vendor who had a hat for the BP, but he did not want to cover his head like his father.

Above - The Diaz's posed for photos with many of the people who came such as the photo above.

Below - It was time to decide which Diaz was going to ride the mechanical bull.

Above - Councilman Diaz Sr. tries to get onto the mechanical bull, but is unable to (or was he not trying so his son would ride the bull).

Below - BP Diaz Jr. sits on top of the Mechanical bull as his father smiles that his plan worked.

Above - BP Diaz Jr. holds on tight with one hand as he waves the other.

Below - Still holding on tight, but waving his other hand the mechanical bull was no match for BP Diaz Jr. 

After a tough ride on the mechanical bull it was time to chow down for the Diaz's. 

Owner Of Bus Repair And Transportation Company Found Guilty In White Plains Federal Court Of Fraud, Bribery, And Theft

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that RICHARD BREGA, the former owner of Brega D.O.T. Maintenance Corp. in Rockland County, was found guilty by a federal jury in White Plains of fraud, bribery, and theft of government property.  The convictions were for BREGA’s billing the Rockland Board of Cooperative Educational Services (“Rockland BOCES”) for maintenance of school buses that was never performed, and bribery of a Rockland BOCES official.  The convictions resulted from a three-week trial before the United States District Judge Kenneth M. Karas.  BREGA is scheduled to be sentenced by Judge Karas on October 17, 2018.

U.S. Attorney Geoffrey S. Berman said:  “As a unanimous jury found, Richard Brega engaged in fraud, bribery, and theft of government property.  The scheme not only defrauded Rockland school districts and the federal government by billing for bus maintenance work that was not performed, but it also put children at risk of riding unsafe buses.  Now Brega awaits sentencing for his crimes.”

The evidence at trial showed, among other things, the following:

Rockland BOCES serves eight school districts in Rockland County.  Among the services that Rockland BOCES offers to its students – particularly children with special physical, intellectual, and emotional needs – is transportation, for which it has a fleet of buses and other vehicles (hereinafter collectively referred to as “Rockland BOCES buses” and “bus fleet”), some of which are specially equipped for students with physical disabilities.  Rockland BOCES receives federal funding each year, often in excess of $1 million.

BREGA owned and controlled vehicle repair and transportation companies in Rockland County, including Brega D.O.T. Maintenance Corp. (“Brega DOT”), a fleet maintenance repair shop.  From in or about 2008 or 2009, through in or about 2015, Brega DOT provided vehicle repair service and maintenance for Rockland BOCES bus fleet, including regular preventive maintenance (“Preventive Maintenance”), which is supposed to involve a thorough and detailed inspection and testing of the buses at Brega DOT’s facility, designed to ensure that the buses are defect-free and safe to operate with children aboard.  Brega DOT would fix any problems with the buses that it found during Preventative Maintenance inspections before releasing the buses back to Rockland BOCES.  Brega DOT also created invoices documenting the work done and provided those invoices to Rockland BOCES for payment.  Rockland BOCES’ director of transportation, William Popkave, would then approve the invoice as accurately stating work that was performed on Rockland BOCES buses, and Rockland BOCES would mail payment to Brega DOT.

From in or about 2012 through in or about 2014, BREGA stole money from Rockland BOCES by, among other things, billing Rockland BOCES for Preventative Maintenance inspections that were never performed.  To do so, BREGA directed his employees to prepare fraudulent invoices, as well as fraudulent supporting documentation, giving the false appearance that his company had performed regular Preventive Maintenance inspections on certain buses, when in fact those buses were not even brought to Brega DOT and Preventative Maintenance inspections were not performed.

To create the fraudulent invoices, and to obtain payment from Rockland BOCES for work that was never performed, BREGA bribed Popkave – who oversaw upkeep and maintenance of its buses – with tens of thousands of dollars’ worth of free personal vehicle repairs.  Popkave sent BREGA lists of buses and their mileages so that BREGA could create fraudulent invoices and supporting documentation, and thereafter approved payment of the fraudulent invoices at Rockland BOCES, even though Popkave and BREGA knew that the buses had not even been to Brega DOT on the days for which Brega DOT billed Rockland BOCES, and had not received Preventative Maintenance inspections.

BREGA, 50, of Rockland County, was convicted of three counts: (1) mail fraud, which carries a maximum potential penalty of 20 years in prison; (2) bribery concerning a program receiving federal funds, which carries a maximum potential penalty of 10 years in prison; and (3) theft concerning a program receiving federal funds, which carries a maximum potential penalty of 10 years in prison.  

Popkave, 62, who currently resides in Florida, pled guilty before Magistrate Judge Judith C. McCarthy on January 24, 2017, to five counts: (1) conspiracy to commit mail fraud, which carries a maximum potential penalty of 20 years in prison; (2) mail fraud, which carries a maximum potential penalty of 20 years in prison; (3) theft concerning a program receiving federal funds, which carries a maximum potential penalty of 10 years in prison; (4) bribery concerning a program receiving federal funds, which carries a maximum potential penalty of 10 years in prison; and (5) obstruction of justice, which carries a maximum potential penalty of 20 years in prison. 

The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as the sentencings of the defendants would be determined by the judge.  BREGA will be sentenced on October 17, 2018.  Popkave will be sentenced at a future date.

Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation, the Rockland County District Attorney’s Office, and the United States Department of Transportation Office of Inspector General.  Mr. Berman also thanked the United States Department of Education, Office of Inspector General, for its assistance.

Four Men Sentenced In Manhattan Federal Court For Their Roles In Two 2016 Bank Burglaries

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that four defendants have been sentenced to significant prison terms by United States District Judge Katherine B. Forrest for their participation in two bank burglaries.  In April and May 2016, MICHAEL MAZZARA, CHARLES KERRIGAN, and ANTHONY MASCUZZIO, assisted by CHRISTOPHER KERRIGAN, stole more than $20 million in cash, jewelry, collectables, and other valuables from the banks’ vaults and safe deposit boxes.

U.S. Attorney Geoffrey S. Berman said:  “By using blow torches to cut through bank roofs, and subsequently into vaults and safe deposit boxes, these defendants deprived hundreds of unsuspecting victims of their valuables, priceless heirlooms, and cherished keepsakes.  As a result, the defendants will serve serious prison sentences.  We will now be able to reunite many of the stolen items, including religious artifacts, jewelry, baseball cards, and coins, with their rightful owners.”

According to the Complaint and Indictments filed in Manhattan federal court, as well as previous court filings and statements made in public court proceedings:

In April and May 2016, MAZZARA, CHARLES KERRIGAN, MASCUZZIO, and CHRISTOPHER KERRIGAN formed a crew that burglarized banks in Brooklyn and Queens, New York, by cutting into the banks’ vaults and the safe deposit boxes inside.  MAZZARA, CHARLES KERRIGAN, and MASCUZZIO, with the assistance of CHRISTOPHER KERRIGAN, burglarized an HSBC Bank branch located at 4406 13th Avenue in Brooklyn from about April 8 through April 10, 2016, and burglarized a Maspeth Federal Savings Bank branch located at 64-19 Woodhaven Boulevard in Queens, New York, from about May 19 to May 22, 2016.  On both occasions, the burglars used acetylene blowtorches to cut into the top of the banks’ vaults from the roof of the building.  At the Maspeth Federal Savings Bank branch, they shielded their activities from view by constructing a plywood shed on the roof of the bank.  The burglars then entered the vaults from above and took cash belonging to the bank and broke open customers’ safe deposit boxes, stealing the valuables inside.  In total, the crew obtained more than $600,000 in cash and more than $20 million in valuables from the safe deposit boxes from both banks.  Surveillance footage captured some of the burglars’ activities as they prepared for and executed the burglaries.  Financial records and video surveillance also showed MAZZARA and MASCUZZIO purchasing some of the supplies that appear to have been used in the Maspeth burglary. 

During the course of the investigation of the burglaries, the Federal Bureau of Investigation (“FBI”) and New York City Police Department (“NYPD”) executed multiple search warrants at locations in Brooklyn, Long Island, and Pennsylvania, and seized items that had been taken from safe deposit boxes during the burglaries.  In addition, as part of their plea agreements, MAZZARA and MASCUZZIO returned other items that had been stolen from the safe deposit boxes.  In total, more than 200 items that were stolen from safe deposit boxes – including religious artifacts, jewelry, and collectibles – have been recovered as a result of this investigation.     

MAZZARA, 46, of Brooklyn, New York, was sentenced by Judge Forrest on April 13, 2018, to a total term of 135 months in prison. 

In addition to the burglaries, CHARLES KERRIGAN, 42, of Brooklyn, New York, pled guilty to one count of witness retaliation while on pre-trial release, in connection with his assault of an individual who he believed had provided information regarding the burglaries to the FBI and NYPD.  CHARLES KERRIGAN was sentenced by Judge Forrest on April 11, 2018, to a total term of 200 months in prison.

MASCUZZIO, 38, of Brooklyn, New York, was sentenced by Judge Forrest on May 4, 2018, to a total term of 84 months in prison, and three years of supervised release.

CHRISTOPHER KERRIGAN, 41, of Staten Island, New York, was sentenced by Judge Forrest on March 30, 2018, to a total term of 90 months in prison.

In addition to the prison terms, Judge Forrest also ordered that the defendants forfeit more than $20 million.  Judge Forrest has adjourned the entry of an order of restitution to the victims of the burglaries until June 28, 2018, so that a final determination of the victims’ losses can be made.

Mr. Berman praised the outstanding investigative efforts of the FBI and NYPD.

If you believe you were a victim of this crime, and you wish to provide information to law enforcement, receive notice of future developments in the case, or review and/or claim any of the stolen items that were recovered during this investigation, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900.  For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html.

Comptroller Stringer Statement Calling on Airbnb to Release Its Data

  “If Airbnb wants to have a real conversation about its impact on New York City, it should start by releasing raw data on all its listings – rather than fighting the City tooth and nail in court to hide its data, then hypocritically questioning the methodology of every study it doesn’t like.

“As recently as last month, the City was forced to sue Airbnb after the company refused to comply with a subpoena for records related to a Chelsea building allegedly operating as an illegal Airbnb hotel. It’s the same playbook as when they fought to withhold data from the New York Attorney General and refused to respond to several requests from the New York City Council to release its records.

“Airbnb cannot have it both ways. It cannot hide its raw data behind a wall of attorneys, then cry foul when others use what data is available to measure “the Airbnb effect” on the local rental market. In the case of New York City, we found that effect to be an increase in rents for hardworking New Yorkers of some $600 million a year.

“It’s time for Airbnb to come clean and share all its data on New York City listings and stop playing the victim, when really the only victims to date have been the millions of New Yorkers who today are paying higher rents because of Airbnb’s business practices. ”

To read Comptroller Stringer’s report, “The Impact of Airbnb on NYC Rents,” click here.

Manhattan U.S. Attorney Announces $6.6 Million Settlement Against CityMD For Submitting False Claims To Medicare

CityMD Admits that it Billed Medicare for More Expensive and Complex Services Than it Performed, and Billed Medicare Under the Names of Doctors Who Did Not Actually Render the Services

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today a settlement of a civil fraud lawsuit against CityMD.  This settlement resolves federal claims under the False Claims Act, 31 U.S.C. § 3729 et seq., alleging that CityMD billed Medicare for services rendered by physicians who did not actually perform those services, and billed Medicare for more expensive and complex services than were actually provided to patients.  Under the terms of the settlement approved yesterday by U.S. District Judge Katherine Polk Failla, CityMD admitted and accepted responsibility for its conduct and agreed to pay $6,606,251.40 in damages to the United States.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “CityMD improperly billed Medicare at significant cost to taxpayers.  This settlement holds CityMD accountable both through the significant monetary payment and the detailed admissions made by CityMD.” 

CityMD manages and operates approximately 88 Urgent Care centers, located primarily in the New York City metropolitan area.  As part of the settlement, CityMD admits, acknowledges, and accepts responsibility for the following conduct:

• CityMD billed Medicare for lengthier and/or more complex services or procedures than the services or procedures it actually provided to patients or that were supported with documentation in the medical records.  Had CityMD billed Medicare for the services actually rendered or supported by the documents in the medical records, it would have received a lower rate of reimbursement from the Medicare program.
   
• Medicare rules generally prohibit medical providers, such as CityMD, from seeking reimbursement from the Medicare program for services rendered by a physician unless that physician is both enrolled with the Medicare program when the services are rendered and has reassigned his or her Medicare benefits to the billing provider (collectively known as being “credentialed” with the Medicare program).
   
• CityMD is generally prohibited from billing Medicare for services rendered by an uncredentialed physician unless and until he or she is credentialed with the Medicare program. 
   
• CityMD employed a number of physicians who were not credentialed with the Medicare program at the time CityMD billed Medicare for their services.
   
• CityMD falsely billed Medicare for services rendered by these uncredentialed physicians using the National Provider Identification numbers of other credentialed physicians who did not actually render the services in question. 
   

In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act. 

Mr. Berman noted that CityMD cooperated fully with this investigation.    

Four Defendants Convicted In Manhattan Federal Court For Stealing Confidential Government Information And Using It To Engage In Illegal Trading

  Robert Khuzami, the Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, announced the conviction of DAVID BLASZCZAK, a political intelligence consultant, CHRISTOPHER WORRALL, a government employee at the Centers for Medicare and Medicaid Services (“CMS”), and THEODORE HUBER and ROBERT OLAN, two partners and analysts at Deerfield Management Company, L.P., a healthcare-focused hedge fund in New York, New York (“Deerfield”).  BLASZCZAK, WORRALL, HUBER, and OLAN were convicted yesterday after a four-week trial before United States District Judge Lewis A. Kaplan. 

BLASZCZAK, WORRALL, HUBER, and OLAN were charged with participating in a scheme, from in or about 2009 through in or about 2014, to convert United States property, to defraud the United States, and to commit securities fraud and wire fraud for obtaining material nonpublic information from CMS and using it to execute profitable trades at Deerfield.

As part of the scheme, BLASZCZAK was charged with obtaining confidential and nonpublic information from CMS employees, including his friend, CHRISTOPHER WORRALL, who worked at CMS, and who was charged with breaching his duties as a CMS employee by providing confidential information to BLASZCZAK.  BLASZCZAK then was alleged to have provided this material nonpublic information in advance of market-moving CMS announcements to employees at Deerfield, including HUBER, OLAN, and Jordan Fogel, who allegedly recommended trades on the basis of the information.  Jordan Fogel, a former partner and analyst at Deerfield, previously pled guilty and is cooperating with the Government.  As a result of these trades, Deerfield reaped more than $7 million in profits.

BLASZCZAK was also charged in a separate scheme with obtaining confidential and nonpublic CMS information about cuts in CMS’s reimbursement rates for home health providers, and with providing that information to Christopher Plaford, a portfolio manager at Visium Asset Management, L.P., another healthcare-focused hedge fund in New York, New York (“Visium”).  Plaford then used BLASZCZAK’s information to execute trades, resulting in approximately $330,000 in profits.  Plaford has previously pled guilty to this conduct and is also cooperating with the Government. 

Deputy U.S. Attorney Robert Khuzami said:  “As a unanimous jury found, these defendants schemed to get highly sensitive and confidential information from CMS, a governmental entity, and feed it to a hedge fund to make illegal profits in the stock market.  Trading on confidential nonpublic government information is just as illegal as trading on corporate insider information.  Our Office is committed to policing and prosecuting both.”           

According to the allegations in the charging documents and statements made in court proceedings:

CMS

CMS, a component of the United States Department of Health and Human Services (“HHS”), administers Medicare and Medicaid, among other things.  CMS is also responsible for setting Medicare reimbursement rates for healthcare providers.  CMS spends more than $1 trillion annually and pays approximately one-third of the country’s health expenditures.  Accordingly, CMS rulemaking decisions, including decisions that affect how much the federal government will pay to reimburse medical providers for services rendered, have a substantial, market-moving impact on publicly traded companies that depend on government healthcare spending. 

WORRALL began working at CMS in or about 1999.  Beginning in January 2012, WORRALL worked in the Director’s Office for the Center for Medicare (“CM”), which gave WORRALL broad access to CMS’s confidential deliberations about upcoming reimbursement decisions.  WORRALL also served as a project manager for a confidential CMS database that contained CMS’s most up-to-date claims data that CMS used to inform its decision-making. 

David Blaszczak

At all relevant times, BLASZCZAK served as a consultant at a number of Washington, D.C.-based firms that, in exchange for a fee, provided so-called “political intelligence,” which included analysis about how changes in Government reimbursement rates would affect publicly traded healthcare-related companies.  Before becoming a political intelligence consultant, BLASZCZAK worked at CMS, eventually serving as a special assistant to the CMS Administrator.  BLASZCZAK met WORRALL while the two worked at CMS. 

As a former CMS employee, BLASZCZAK was well aware of CMS’s rules governing the dissemination of nonpublic information. 

Deerfield Management Company, L.P. 

At all relevant times, Deerfield managed multiple hedge funds specializing in healthcare-related investments.  As of 2017, Deerfield had more than $7 billion in assets under management.  HUBER, OLAN, and Fogel were partners and analysts at Deerfield, where their job was to analyze investment decisions and recommend potentially profitable trades for Deerfield.  Deerfield’s compliance manual prohibited its employees from committing insider trading.  

The Scheme to Convert and Use Confidential CMS Information 

As alleged in the Indictment, from at least in or about 2009 through in or about 2014, BLASZCZAK, WORRALL, HUBER, OLAN, Fogel, and others participated in a scheme to convert to their own use confidential and material nonpublic information from CMS concerning, among other things, CMS’s internal deliberations regarding coverage and reimbursement decisions.           

During this time period, Deerfield retained BLASZCZAK as a consultant who provided political intelligence related to, among other things, the content, likelihood, and timing of CMS reimbursement decisions.  As part of the scheme, HUBER, OLAN, and Fogel encouraged BLASZCZAK to obtain confidential and material nonpublic information from CMS insiders.  As HUBER, OLAN, and Fogel knew, these CMS insiders included BLASZCZAK’s former colleagues with whom he had close personal relationships, who were prohibited from disclosing such information to CMS outsiders.

BLASZCZAK obtained material nonpublic information from his close friend and former CMS colleague WORRALL.  BLASZCZAK and WORRALL were friends since their time working together at CMS.  BLASZCZAK also frequently offered to help WORRALL find lucrative private sector employment opportunities, in exchange for WORRALL giving BLASZCZAK confidential government information.  

BLASZCZAK conveyed the information obtained from WORRALL to HUBER, OLAN, and Fogel, who – knowing that BLASZCZAK had obtained the information improperly from a CMS insider – used the information to trade.  In exchange for being provided with this inside information, HUBER, OLAN, and Fogel caused Deerfield to pay BLASZCZAK more than $800,000 in consulting fees.

Defendants’ Ages and Residences

Defendant	Residence	Age
David Blaszczak	Isle of Palms, South Carolina	42
Christopher Worrall	Linthicum Heights, Maryland	40
Theodore Huber	Westport, Connecticut	56
Robert Olan	Rumson, New Jersey	47

Mr. Khuzami praised the work of the Federal Bureau of Investigation and U.S. Department of Health and Human Services, Office of the Inspector General, and thanked the Securities and Exchange Commission for its assistance. 
 

Manhattan U.S. Attorney Announces Extradition Of Four Mexican Nationals For International Sex Trafficking Offenses

   Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Acting Assistant Attorney General John M. Gore of the Civil Rights Division, and Angel M. Melendez, Special Agent in Charge of the New York Field Office of ICE’s Homeland Security Investigations (“HSI”), announced the extradition of EFRAIN GRANADOS-CORONA, a/k/a “Chavito,” a/k/a “Cepillo,” EMILIO ROJAS-ROMERO, ALAN ROMERO-GRANADOS, a/k/a “El Flaco,” and PEDRO ROJAS-ROMERO, who are charged together with RAUL ROMERO-GRANADOS, a/k/a “Chicarcas,” a/k/a “El Negro,” ISAAC LOMELI-RIVERA,” a/k/a “Giro,” JULIO SAINZ-FLORES, a/k/a “Rogelio,” and JUAN ROMERO-GRANADOS, a/k/a “Chegoya,” a/k/a “El Guero,” with sex trafficking offenses in a 23-count Superseding Indictment (the “Indictment”) in the United States District Court for the Southern District of New York.  EFRAIN GRANADOS-CORONA and EMILIO ROJAS-ROMERO were extradited to the United States from Mexico on April 26, 2018, and presented before United States Magistrate Judge Stewart D. Aaron on April 27, 2018.  ALAN ROMERO-GRANADOS and PEDRO ROJAS-ROMERO were extradited to the United States from Mexico on May 2, 2018, and presented yesterday before United States Magistrate Judge Debra Freeman.  This case is assigned to United States District Judge Andrew J. Carter, Jr.

The Indictment, which was returned under seal on September 15, 2016, alleges that the defendants are members of an international sex trafficking organization that exploited and trafficked adult and minor women in Mexico and in the United States from at least 2000 to 2016.  Members of the defendants’ sex trafficking organization, which operated largely as a family business, used false promises, physical and sexual violence, and threats to force and coerce adult and minor women to engage in commercial sex for the organization’s profit in both Mexico and the United States. 

As part of a coordinated bilateral law enforcement action, six defendants located in Mexico – EFRAIN GRANADOS-CORONA, EMILIO ROJAS-ROMERO, ALAN ROMERO-GRANADOS, PEDRO ROJAS-ROMERO, JULIO SAINZ-FLORES, and JUAN ROMERO-GRANADOS – were arrested in Mexico and taken into custody by Mexican authorities pursuant to provisional arrest warrants requested by the United States in August 2016.  As noted, the first four of these defendants were extradited to the United States from Mexico within the past week.  The fifth of these defendants, JULIO SAINZ-FLORES, was previously extradited to the United States from Mexico on June 8, 2017, and was presented in Manhattan federal court before Chief United States Magistrate Judge Gabriel W. Gorenstein on June 9, 2017.  JUAN ROMERO-GRANADOS remains in Mexico pending extradition proceedings.  The two defendants who were arrested in the United States, RAUL ROMERO-GRANADOS and ISAAC LOMELI-RIVERA, were presented in Manhattan federal court on October 27, 2016, before United States Magistrate Judge Kevin Nathaniel Fox. 

U.S. Attorney Geoffrey S. Berman said:  “Sex trafficking is a heinous crime that violates both the rule of law and the most basic standards of human dignity.  These defendants allegedly deprived women and girls of their freedom, and forced them into prostitution against their will.  The scope of devastation these defendants allegedy inflicted on countless victims is beyond comprehension.  But now they face significant criminal charges in an American court, and will have to answer for their allegedly reprensible actions.  Our office is dedicated to combatting this demoralizing crime and helping survivors reclaim their lives.”

Acting Assistant Attorney General John M. Gore of the Civil Rights Division said:  “The Civil Rights Division will not tolerate anyone violating an individual’s rights and freedoms through sex trafficking.  We will continue to work with our law enforcement partners to vindicate the rights of victims and survivors of sex trafficking by dismantling transnational organized trafficking enterprises and putting an end to these egregious civil rights violations.”

HSI Special Agent in Charge Angel M. Melendez said:  “These four individuals were transported more than 2,000 miles from Mexico to be held accountable for the callous criminal actions alleged in this case.  Those extradited, along with others, allegedly operated a family business centered on making money from exploiting females they forced into sex slavery.  Now these traffickers will face justice where they allegedly made their income, right here in New York.  Human Trafficking remains a priority for HSI, whose primary focus is to rescue victims and release them from the grip of their captors.”

As alleged in the Indictment:[1] 

EFRAIN GRANADOS-CORONA, RAUL ROMERO-GRANADOS, ISAAC LOMELI-RIVERA, JULIO SAINZ-FLORES, JUAN ROMERO-GRANADOS, ALAN ROMERO-GRANADOS, PEDRO ROJAS-ROMERO, and EMILIO ROJAS-ROMERO, the defendants, are members of an international sex trafficking organization (the “STO”).  Many of the members of the STO are related by blood, marriage, and community.  For example:  EFRAIN GRANADOS-CORONA is the uncle of RAUL ROMERO-GRANADOS, ISAAC LOMELI-RIVERA, JUAN ROMERO-GRANADOS, and ALAN ROMERO-GRANADOS; PEDRO ROJAS-ROMERO and EMILIO ROJAS-ROMERO are brothers; JUAN ROMERO-GRANADOS and ALAN ROMERO-GRANADOS are also brothers; and ISAAC LOMELI-RIVERA is RAUL ROMERO-GRANADOS’s brother-in-law.

Between 2000 and the present, members of the STO (the “Traffickers”) have used false promises, physical and sexual violence, threats of the same, lies, and coercion to force and coerce adult and minor women (the “Victims”) to work in prostitution in both Mexico and the United States.

In most cases, a Trafficker entices a Victim – frequently a minor – in Mexico.  The Trafficker then uses multiple means to isolate the Victim from her family.  In some cases, the Trafficker uses romantic promises to induce the Victim to leave her family and live with him.  In other cases, the Trafficker rapes the Victim, making it difficult for her to return to her family due to the associated stigma of the rape.  Once a Victim is separated from her family, the Trafficker frequently monitors her communications, keeps her locked in an apartment, leaves her without food, and engages in physical or sexual violence against the Victim.  Traffickers often tell Victims that the Traffickers owe a significant debt and that the Victim must work in prostitution to assist in repaying the debt.  Traffickers typically begin forcing the Victims to work in prostitution in Mexico, frequently in a neighborhood of Mexico City known as “La Merced.”   Victims are often required to see at least 20 to 40 customers per day.  Traffickers monitor the number of clients a Victim sees by surveilling the Victim, communicating with brothel workers, and by counting the number of condoms provided to a Victim.  Traffickers typically require the Victims to turn over all of the prostitution proceeds to the Traffickers. 

After a Victim has worked in prostitution in Mexico for some time, Traffickers typically arrange for the Victim to be smuggled into the United States.  Members of the STO assist one another in making smuggling arrangements.  In many cases, multiple Traffickers and multiple Victims are smuggled into the United States together.  In other cases, one Trafficker may remain in Mexico while arranging for a Victim to be smuggled together with another Trafficker and other Victims.

Once in the United States, the members of the STO generally maintain their Victims at one of several shared apartments in New York City.  Victims living in the same apartment are frequently forbidden to communicate with one another.  Once in the United States, Traffickers continue to use physical and sexual violence, threats of the same, lies, and coercion to force the Victims to work in prostitution. 

In most cases, the Trafficker or another member of the STO provides a Victim with contact information with which to find work.  The Victims typically work weeklong shifts either in a brothel, or in a “delivery service.”  In a delivery service, the Victim is delivered to a customer’s home by a “driver.”  These brothels and delivery services are located both within New York and in surrounding states, including, but not limited to, Connecticut, Maryland, Virginia, New Jersey, and Delaware.

Generally, each customer pays $30-35 for 15 minutes of sex.  Of that, half of the money typically goes to the driver (in the case of a delivery service) or to the brothel.  The other $15 goes to the Victim, who is then typically forced to give all of the proceeds to the Trafficker.  When a Trafficker is unavailable, a Victim may also give the proceeds to another member of the STO.

The Traffickers then frequently send, or have their Victims send, some of the prostitution proceeds to Traffickers’ family members and associates in Mexico by wire transfer.  Such transfers provide financial assistance to the Traffickers’ families and provide financial support to the Traffickers themselves if they return to Mexico.                   

Since 2009, the Department of Justice – through the Civil Rights Division’s Human Trafficking Prosecution Unit – and HSI have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative aimed at strengthening high-impact prosecutions under both U.S. and Mexican law.  The initiative is aimed at dismantling human trafficking networks operating across the United States-Mexico border, bringing human traffickers to justice, reuniting victims with their children, and restoring the rights and dignity of human trafficking victims held under the trafficking networks’ control.  These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 50 defendants in multiple cases in New York, Georgia, Florida, and Texas since 2009, and numerous Mexican federal and state prosecutions of associated sex traffickers.  In announcing the extradition, U.S. Attorney Geoffrey S. Berman and Acting Assistant Attorney General John M. Gore of the Civil Rights Division commended U.S. and Mexican law enforcement partners for their shared and continued commitment to coordinated bilateral anti-trafficking efforts.

Mr. Berman also praised the outstanding investigative work of HSI, the work of the Mexican government, and Mexican law enforcement in executing the arrests and preparing for the extradition of the defendants to the United States, and the assistance provided by the New York City Police Department, the State Department, the Civil Rights Division’s Human Trafficking Prosecution Unit, and the Criminal Division’s Office of International Affairs.  The Justice Department also acknowledged the non-governmental victim service providers and advocates for their dedicated efforts to restore and improve the lives of survivors of trafficking and their families in connection with this case and others.

Charts containing the names, ages, residences, charges, mandatory minimum penalties, and maximum penalties for the defendants are set forth below.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

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

United States v. Efrain Granados-Corona, a/k/a “Chavito,” a/k/a “Cepillo,” et al.,

S2 16 Cr. 324 (ALC)

COUNT / CHARGE	DEFENDANT(S)	MANDATORY MINIMUM PENALTIES	MAXIMUM PENALTIES
Count 1: Conspiracy to Commit Sex Trafficking 18 U.S.C. § 1594	EFRAIN GRANADOS-CORONA,    a/k/a “Chavito,”    a/k/a “Cepillo,” RAUL ROMERO-GRANADOS,    a/k/a “Chicarcas,”    a/k/a “El Negro,” ISAAC LOMELI-RIVERA,    a/k/a “Giro,”  JULIO SAINZ-FLORES,    a/k/a “Rogelio,” JUAN ROMERO-GRANADOS,    a/k/a “Chegoya,”    a/k/a “El Guero,” ALAN ROMERO-GRANADOS,    a/k/a “El Flaco,” PEDRO ROJAS-ROMERO, EMILIO ROJAS-ROMERO	N/A	Life in prison
Count 2: Sex Trafficking of a Minor by Force, Fraud, or Coercion 18 U.S.C. §§ 1591(a), (b)(1), (b)(2), and 2	RAUL ROMERO-GRANADOS,    a/k/a “Chicarcas,”    a/k/a “El Negro”	15 years in prison	Life in prison
Count 3: Sex Trafficking of a Minor by Force, Fraud, or Coercion 18 U.S.C. §§ 1591(a), (b)(1), (b)(2), and 2	EFRAIN GRANADOS-CORONA,  a/k/a “Chavito,” a/k/a “Cepillo”	15 years in prison	Life in prison
Count 4: Sex Trafficking of a Minor by Force, Fraud, or Coercion 18 U.S.C. §§ 1591(a), (b)(1), (b)(2), and 2	JULIO SAINZ-FLORES,    a/k/a “Rogelio”	15 years in prison
Count 5: Sex Trafficking of a Minor by Force, Fraud, or Coercion 18 U.S.C. §§ 1591(a), (b)(1), (b)(2), and 2	EFRAIN GRANADOS-CORONA,    a/k/a “Chavito,”    a/k/a “Cepillo,” RAUL ROMERO-GRANADOS,    a/k/a “Chicarcas,”    a/k/a “El Negro”	15 years in prison	Life in prison
Count 6: Sex Trafficking by Force, Fraud, and Coercion 18 U.S.C. §§ 1591(a), (b)(1), and 2	EFRAIN GRANADOS-CORONA,    a/k/a “Chavito,”    a/k/a “Cepillo,” RAUL ROMERO-GRANADOS,    a/k/a “Chicarcas,”    a/k/a “El Negro,” PEDRO ROJAS-ROMERO	15 years in prison	Life in prison
Count 7: Sex Trafficking by Force, Fraud, and Coercion 18 U.S.C. §§ 1591(a), (b)(1), and 2	ISAAC LOMELI-RIVERA,    a/k/a “Giro”	15 years in prison	Life in prison
Count 8: Sex Trafficking by Force, Fraud, and Coercion 18 U.S.C. §§ 1591(a), (b)(1), and 2	ISAAC LOMELI-RIVERA,    a/k/a “Giro”	15 years in prison	Life in prison
Count 9: Sex Trafficking by Force, Fraud, and Coercion 18 U.S.C. §§ 1591(a), (b)(1), and 2	JUAN ROMERO-GRANADOS,    a/k/a “Chegoya,”    a/k/a “El Guero”	15 years in prison	Life in prison
Count 10: Sex Trafficking by Force, Fraud, and Coercion 18 U.S.C. §§ 1591(a), (b)(1), and 2	ALAN ROMERO-GRANADOS,    a/k/a “El Flaco”	15 years in prison	Life in prison
Count 11: Sex Trafficking by Force, Fraud, and Coercion 18 U.S.C. §§ 1591(a), (b)(1), and 2	EMILIO ROJAS-ROMERO	15 years in prison	Life in prison
Count 12: Sex Trafficking by Force, Fraud, and Coercion 18 U.S.C. §§ 1591(a), (b)(1), and 2	PEDRO ROJAS-ROMERO, EMILIO ROJAS-ROMERO	15 years in prison	Life in prison
Count 13: Transportation of a Minor for Purposes of Prostitution 18 U.S.C. §§ 2423(a) and 2	EFRAIN GRANADOS-CORONA,    a/k/a “Chavito,”    a/k/a “Cepillo”	10 years in prison	Life in prison
Count 14: Transportation of a Minor for Purposes of Prostitution 18 U.S.C. §§ 2423(a) and 2	RAUL ROMERO-GRANADOS,    a/k/a “Chicarcas,”    a/k/a “El Negro”	10 years in prison	Life in prison
Count 15: Transportation of a Minor for Purposes of Prostitution 18 U.S.C. §§ 2423(a) and 2	RAUL ROMERO-GRANADOS,    a/k/a “Chicarcas,”    a/k/a “El Negro”	10 years in prison	Life in prison
Count 16: Transportation of a Minor for Purposes of Prostitution 18 U.S.C. §§ 2423(a) and 2	JULIO SAINZ-FLORES,    a/k/a “Rogelio”	10 years in prison	Life in prison
Count 17: Transportation for Purposes of Prostitution 18 U.S.C. §§ 2421 and 2	EFRAIN GRANADOS-CORONA,    a/k/a “Chavito,”    a/k/a “Cepillo”	N/A	10 years in prison
Count 18: Transportation for Purposes of Prostitution 18 U.S.C. §§ 2421 and 2	ISAAC LOMELI-RIVERA,    a/k/a “Giro”	N/A	10 years in prison
Count 19: Transportation for Purposes of Prostitution 18 U.S.C. §§ 2421 and 2	ISAAC LOMELI-RIVERA,    a/k/a “Giro”	N/A	10 years in prison
Count 20: Transportation for Purposes of Prostitution 18 U.S.C. §§ 2421 and 2	JUAN ROMERO-GRANADOS,    a/k/a “Chegoya,”    a/k/a “El Guero”	N/A	10 years in prison
Count 21: Transportation for Purposes of Prostitution 18 U.S.C. §§ 2421 and 2	ALAN ROMERO-GRANADOS,    a/k/a “El Flaco”	N/A	10 years in prison
Count 22: Transportation for Purposes of Prostitution 18 U.S.C. §§ 2421 and 2	PEDRO ROJAS-ROMERO	N/A	10 years in prison
Count 23: Transportation for Purposes of Prostitution 18 U.S.C. §§ 2421 and 2	EMILIO ROJAS-ROMERO	N/A	10 years in prison

DEFENDANT	AGE	RESIDENCE
EFRAIN GRANADOS-CORONA,      a/k/a “Chavito,”      a/k/a “Cepillo”	42	Mexico
RAUL ROMERO-GRANADOS,      a/k/a “Chicarcas,”      a/k/a “El Negro”	34	New York
ISAAC LOMELI-RIVERA,      a/k/a “Giro”	35	New York
JUAN ROMERO-GRANADOS,      a/k/a “Chegoya,”      a/k/a “El Guero”	32	Mexico
JULIO SAINZ-FLORES,    a/k/a “Rogelio”	36	Mexico
ALAN ROMERO-GRANADOS,      a/k/a “El Flaco”	24	Mexico
PEDRO ROJAS-ROMERO	38	Mexico
EMILIO ROJAS-ROMERO	36	Mexico

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