Ten Members Of International Stock Manipulation Ring Charged In Manhattan Federal Court

 

Global “Pump-and-Dump” Scheme Targeted Retail Investors and Generated Over $100 Million in Illicit Proceeds

 Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of three indictments charging ten individuals with engaging in a long-running “pump-and-dump” stock manipulation scheme involving the stocks of numerous companies traded on United States-based stock exchanges.  The scheme spanned the globe and the ten defendants charged were residents of Canada, the United Kingdom, Bulgaria, Spain, Monaco, Turkey and the Bahamas.  RONALD BAUER was arrested in the United Kingdom.  CURTIS WILLIAM LEHNER, COURTNEY VASSEUR, and JULIUS CSURGO were arrested in Canada.  ANTHONY KORCULANIC was arrested in Spain.  PETAR MIHAYLOV was arrested in Bulgaria.  Finally, DOMENIC CALABRIGO was arrested in the Bahamas.  The United States intends to seek the extradition of BAUER, LEHNER, VASSEUR, CSURGO, KORCULANIC, MIHAYLOV, and CALABRIGO to the United States.  CRAIG AURINGER, a citizen of Canada and resident of the United Kingdom, HASAN SARIO, a citizen and resident of Turkey, and DANIEL FERRIS, a citizen of the United Kingdom and resident of Monaco, were also charged and remain at large. 

U.S. Attorney Damian Williams said:  “As alleged, for years, the defendants, collectively, made over $100 million by orchestrating ‘pump-and-dump’ stock manipulation schemes of publicly traded shares of U.S.-based issuers.  These pernicious ‘pump-and-dump’ schemes made the defendants rich while causing real harm to ordinary, retail investors who were left swallowing the losses.  These defendants used a web of nominee entities and shell companies located all over the world attempting to disguise their own orchestration of these schemes.  Today’s charges should send a clear message to all of those who think they can make millions running ‘pump-and-dump’ schemes --- no matter where in the world you are located, and no matter how many fake accounts and offshore shell companies you try to hide behind, our Office will vigorously pursue and prosecute you.”

FBI Assistant Director Michael J. Driscoll said:  “Stock manipulation schemes such as the one charged here today serve to undermine confidence in our financial markets and create a playing field designed to illegally benefit a greedy few fraudsters at the expense of many honest investors.  As alleged, the 10 charged defendants operated a global scheme that reaped more than $100 million in illicit proceeds.  Our action today should serve as a reminder of our commitment to insure free and fair markets for all investors.”           

As alleged in the three Indictments unsealed in Manhattan federal court[1]:

The Defendants

United States v. Ronald Bauer et al., 22 Cr. 155

RONALD BAUER, CRAIG AURINGER, PETAR MIHYALOV, and DANIEL FERRIS participated in a conspiracy that, collectively, involved “pump-and-dump” stock manipulation schemes of the securities of at least 12 United States-based issuers, resulting collectively in at least approximately $75 million in total proceeds. 

RONALD BAUER, a/k/a “Patek,” a citizen of Canada and the United Kingdom who resided in the United Kingdom, orchestrated numerous “pump-and-dump” schemes.  BAUER controlled the various aspects of the schemes. 

CRAIG AURINGER, a citizen of Canada who resided in the United Kingdom, participated in multiple “pump-and-dump” schemes including by coordinating stock promotion campaigns and by providing funding in furtherance of the stock manipulation schemes.

PETAR MIHAYLOV, a/k/a “Petar the Bulgarian,” a/k/a “PDM,” a citizen and resident of Bulgaria, participated in multiple “pump-and-dump” schemes by coordinating stock manipulation promotion campaigns and providing funding in furtherance of the stock manipulation schemes.

DANIEL FERRIS, a citizen of the United Kingdom who resided in Monaco, participated in multiple “pump-and-dump” stock manipulation schemes including by opening accounts that were then used to trade shares and transfer funds in furtherance of the schemes and by taking various actions necessary to prepare the publicly traded companies that were used as the vehicles for the stock manipulation schemes. FERRIS also served as the Chief Executive Officer of at least one of the companies whose shares the group thereafter manipulated. 

United States v. Curtis Lehner et al., 21 Cr. 121

CURTIS LEHNER, COURTNEY VASSEUR, HASAN SARIO, and DOMENIC CALABRIGO participated in a conspiracy that, collectively, involved “pump-and-dump” stock manipulation schemes of the securities of at least 9 United States-based issuers, resulting collectively in at least approximately $35 million in total proceeds. 

CURTIS LEHNER, a/k/a “Santa,” a citizen and resident of Canada, and COURTNEY VASSEUR, a/k/a “Black Water Resource Management,” a/k/a “Black Water,” a/k/a “Cyrill Vetsch,” a/k/a “Arctic Shark,” a/k/a “Oscar Devries,” a citizen and resident of Canada, both orchestrated numerous “pump-and-dump” schemes.

HASAN SARIO, a/k/a “Ali,” a/k/a “H,” a citizen of Germany and Turkey who resided in Turkey, furthered the stock manipulation schemes by, among other things, acting as a designated “trading specialist” who directed the group’s stock trading across various nominee entity accounts that the group controlled.  SARIO also utilized a network of nominee entities and nominee entity bank accounts that he controlled in order to both trade shares and transfer funds in furtherance of the schemes.

DOMENIC CALABRIGO, a/k/a “Raider,” a citizen of Canada who resided in the Bahamas, furthered the stock manipulation schemes by, among other things, coordinating stock promotion campaigns.

United States v. Julius Csurgo and Anthony Korculanic, 22 Cr. 190

JULIUS CSURGO and ANTHONY KORCULANIC participated in a conspiracy that collectively, involved “pump-and-dump” stock manipulation schemes of the securities of at least 19 United States-based issuers, resulting collectively in at least approximately $35 million in total proceeds. 

JULIUS CSURGO, a/k/a “Gyula Karoly Csurgo,” a citizen of Canada and Hungary who resided in Canada, orchestrated numerous “pump-and-dump” stock manipulation schemes. In connection with the schemes, CSURGO owned and operated an entity called Antevorta Capital Partners, Ltd. (“Antevorta”), which CSURGO used as a vehicle for the “pump-and-dump” schemes.  CSURGO, directly and through Antevorta, furthered the schemes by purchasing and selling numerous stocks in connection with the scheme and funding certain fraudulent stock promotion campaigns that were used to drive up the share prices as CSURGO and his co-conspirators sold off the shares that they controlled.

ANTHONY KORCULANIC, a/k/a “Remy,” a/k/a “Viper,” a citizen of Canada and Croatia who resided, at certain relevant times, in Spain, participated in multiple “pump-and-dump” schemes including by coordinating stock promotion campaigns and by providing funding in furtherance of the stock manipulation schemes.

Overview of the “Pump-and-Dump” Stock Manipulation Schemes

As alleged, the defendants participated in “pump-and-dump” schemes that followed a typical pattern.  First, the defendants and their co-conspirators secretly amassed control of the vast majority of the stock of certain publicly traded companies that were traded on the over-the-counter (“OTC”) market in the United States. Second, the defendants and their co-conspirators then manipulated the price and trading volume for these stocks, causing the share price and trading volume to become artificially inflated, through coordinated trading and false and misleading promotional campaigns that they funded.  Third, and finally, the defendants sold out of their secretly amassed positions at these inflated values at the expense of the investing public.

In furtherance of the scheme, the defendants used a network of nominee entities to trade shares and funnel proceeds of these schemes back to the defendants and their co-conspirators.  Holding the shares through the network of nominee entities allowed the defendants and their co-conspirators to conceal the fact that, in reality, they controlled the vast majority of the shares of the issuer.

The securities that the defendants and their co-conspirators sought to manipulate were issued by small companies, were thinly traded, and typically traded at less than $2 per share.  These publicly traded shell companies frequently had few, if any, actual assets or actual business operations.  While on paper the defendants and their co-conspirators had no connection to these companies, in reality they exercised substantial control, including installing management at the companies, financing the companies’ operations, and funding payments for attorneys in order to prepare public filings with OTC Markets Group, Inc. and the Securities and Exchange Commission (the “SEC”).  In order to attract investor interest, the defendants and their co-conspirators, at times, caused private businesses to be merged or “vended” into the publicly traded shell companies. The private businesses were often in industries likely to attract the investing public’s interest. 

In connection with the scheme, the defendants and their co-conspirators frequently engaged in manipulative trading activity in order to artificially increase the trading volume and share price of the stocks.  This manipulative trading included, at times, coordinated “match” trades in which the defendants and their co-conspirators caused one nominee entity or other brokerage account subject to their control to sell a certain quantity of shares while causing another nominee entity or brokerage account subject to their control to buy a similar quantity of shares that same day.  These match trades, which often occurred on days when there was low trading volume, had the effect of artificially increasing the share price and trading volume of the stock. 

As part of the “pump-and-dump” schemes, the defendants and their co-conspirators financed and coordinated promotional campaigns through which promotional materials touting the stocks were distributed to the investing public.  These stock promotional materials frequently contained false and misleading claims about the issuer, as well as omitting material information, with the objective of inducing retail investors to purchase the shares of the issuer, which allowed the defendants and their co-conspirators to sell of their substantial positions for a profit.  The defendants and their co-conspirators often expended hundreds of thousands of dollars on these stock promotion campaigns.  Furthermore, certain of the defendants used a “boiler room” to solicit investors, including investors based in the United States, to purchase shares of certain of the companies.  These “boiler rooms” involved multiple individuals working in a coordinated effort to contact potential investors, often through unsolicited “cold calls,” and providing investors with false, misleading, unfounded, and/or exaggerated information about the relevant issuer in order to induce the potential investors to purchase shares.

The defendants and their co-conspirators profited from the scheme by selling their shares into the market at the artificially high prices they had created through their manipulative activities.  By selling their shares while the share price was artificially inflated, the defendants and their co-conspirators were able to realize millions of dollars in illicit profits.  Once the defendants and their co-conspirators had sold off their shares and ceased the stock promotion campaign and their manipulative trading tactics, the share price of the relevant companies typically dropped precipitously.  The defendants and their co-conspirators then laundered the proceeds of the schemes back to themselves in a manner designed to conceal the source of the funds and/or the identity of the recipients.  Such laundering was frequently accomplished through the use of fabricated invoices, contracts and agreements.

Each of the defendants is charged with conspiracy to commit securities fraud, which carries a statutory maximum sentence of five years in prison.  Each of the defendants is further charged with conspiracy to commit wire fraud, which carries a statutory maximum sentence of 20 years in prison.  Each of the defendants is further charged with multiple counts of securities fraud pursuant to Title 15 of the United States Code, which carry a statutory maximum sentence of 20 years in prison per count.  Each of the defendants is further charged with wire fraud, which carries a statutory maximum sentence of 20 years in prison.  Finally, each of the defendants is charged with conspiracy to commit money laundering, which carries a statutory maximum sentence of 20 years in prison. 

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

Mr. Williams praised the investigative work of the FBI. He further thanked the Justice Department’s Office of International Affairs of the Department’s Criminal Division, as well as authorities in the United Kingdom (in particular the National Extradition Unit), Canada (in particular the Royal Canadian Mounted Police, the Alberta Securities Commission, and the Toronto Police Service Fugitive Squad), Spain (in particular the Spanish National Police), Bulgaria (in particular the National Police Service), and the Bahamas (in particular the Royal Bahamas Police Force).  Finally, Mr. Williams also thanked the Securities and Exchange Commission, which initiated civil proceedings against nine of the ten defendants today. 

The allegations in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

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

Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19 = APRIL 14, 2022

 

As New Yorkers Make Preparations to Travel and Gather with Loved Ones For Easter and Passover Holidays, Remember to Use the Toolkit: Vaccines, Boosters, Testing, and Treatment

5 COVID-19 Deaths Statewide Yesterday 

 Governor Kathy Hochul today updated New Yorkers on the state's progress combating COVID-19. 

Important Note: Effective Monday, April 4, the federal Department of Health and Human Services (HHS) is no longer requiring testing facilities that use COVID-19 rapid antigen tests to report negative results. As a result, New York State's percent positive metric will be computed using only lab-reported PCR results. Positive antigen tests will still be reported to New York State and reporting of new daily cases and cases per 100k will continue to include both PCR and antigen tests. Due to this change and other factors, including changes in testing practices, the most reliable metric to measure virus impact on a community is the case per 100,000 data -- not percent positivity.

"The upcoming holidays are a time to spend with our loved ones and enjoy the warm weather - but it is also a time to stay alert," Governor Hochul said. "Those who are traveling should get tested before they leave home, and those who test positive should stay home and discuss possible treatment options with their doctor. We continue to encourage all New Yorkers to get the vaccine, get the booster shot when its your turn, and stay safe."

Today's data is summarized briefly below: 

• Cases Per 100k - 36.94
• 7-Day Average Cases Per 100k - 28.27
• Test Results Reported - 144,143
• Total Positive - 7,219
• Percent Positive - 4.93%**
• 7-Day Average Percent Positive - 4.57%
• Patient Hospitalization - 1,186 (+22) 
• Patients Newly Admitted - 238
• Patients in ICU - 144 (0)
• Patients in ICU with Intubation - 66 (+6)
• Total Discharges - 292,903 (+211) 
• New deaths reported by healthcare facilities through HERDS - 5
• Total deaths reported by healthcare facilities through HERDS - 55,256  

** Due to the test reporting policy change by the federal Department of Health and Human Services (HHS) and several other factors, the most reliable metric to measure virus impact on a community is the case per 100,000 data -- not percent positivity.

The Health Electronic Response Data System is a NYS DOH data source that collects confirmed daily death data as reported by hospitals, nursing homes and adult care facilities only.  

• Total deaths reported to and compiled by the CDC - 70,482

This daily COVID-19 provisional death certificate data reported by NYS DOH and NYC to the CDC includes those who died in any location, including hospitals, nursing homes, adult care facilities, at home, in hospice and other settings.    

• Total vaccine doses administered - 37,897,654
• Total vaccine doses administered over past 24 hours - 37,233
• Total vaccine doses administered over past 7 days - 234,778
• Percent of New Yorkers ages 18 and older with at least one vaccine dose - 92.2%
• Percent of New Yorkers ages 18 and older with completed vaccine series - 83.5%
• Percent of New Yorkers ages 18 and older with at least one vaccine dose (CDC) - 95.0%
• Percent of New Yorkers ages 18 and older with completed vaccine series (CDC) - 86.5%
• Percent of New Yorkers ages 12-17 with at least one vaccine dose (CDC) - 82.7%
• Percent of New Yorkers ages 12-17 with completed vaccine series (CDC) - 72.8%
• Percent of all New Yorkers with at least one vaccine dose - 81.7%
• Percent of all New Yorkers with completed vaccine series - 73.9%
• Percent of all New Yorkers with at least one vaccine dose (CDC) - 89.8%
• Percent of all New Yorkers with completed vaccine series (CDC) - 76.5%

Each New York City borough's 7-day average percentage of positive test results reported over the last three days is as follows **:    

Borough	Monday, April 11, 2022	Tuesday, April 12, 2022	Wednesday, April 13, 2022
Bronx	1.39%	1.42%	1.47%
Kings	2.60%	2.84%	2.85%
New York	4.25%	4.50%	4.75%
Queens	2.39%	2.44%	2.52%
Richmond	2.79%	2.91%	3.08%

VCJC News & Notes 4/15/21

 

Van Cortlandt Jewish Center
News and Notes

Here's this week's edition of the VCJC News and Notes email. We hope you enjoy it and find it useful!

Reminders Shabbos Shabbos information is, as always, available on our website, both in the information sidebar and the events calendar. Here are the times you need:   Shabbos Candles Friday 4/15/22 @ 7:17 pm Shabbos morning services at 8:45 am.  Please join the services if you can do so safely.  Shabbos Ends Saturday 4/16/22 @ 8:21 pm   Passover Ismael will be burning Chametz 11:48AM Friday morning. Chametz must be brought to synagogue before that time Morning Services for Sunday 4/17/22 will be at 8:45 am.  Yom Tov ends at 8:22 pm on 4/17/22.    Yizkor Yizkor will be on 4/23/22.   It is customary to make a charitable donation in conjunction with Yizkor.  If you wish to donate to VCJC as part of your Yizkor observance, it can be done in person at the office or online through our website   COVID RULES REMINDER VCJC has adopted and published the rules that should be followed in order to attend services or visit the office or otherwise be in the building.  These are available for your review.  As a reminder, if you are fully vaccinated, please provide proof of that to the office before attending services.  If you are not fully vaccinated, you must provide proof of a negative COVID test taken within 72 hours of attending services. This applies to ALL services.  Furthermore, you are required to wear an appropriate mask while in the building to protect others as well as yourself.  The mask must be worn covering BOTH your mouth and nose.

Frank James Charged in Brooklyn Mass Shooting on New York Subway

Defendant Allegedly Attempted to Kill Commuters During Morning Rush Hour 

 A criminal complaint was unsealed in federal court in Brooklyn charging Frank James with conducting a violent attack on a mass transportation vehicle in violation of 18 U.S.C. §§ 1992(a)(7) and (b)(1).  The charge, terrorist attacks or other violence against a mass transportation system, relates to the April 12, 2022, mass shooting on the New York City subway in Sunset Park, Brooklyn.  James was arrested earlier today by New York City police officers in Manhattan and will make his initial appearance tomorrow before United States Magistrate Judge Roanne L. Mann.

Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), John DeVito, Special Agent-in-Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, New York (ATF) and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the arrest and charge.

“As alleged, the defendant committed a heinous and premeditated attack on ordinary New Yorkers during their morning subway commute,” stated United States Attorney Peace.  “All New Yorkers have the right to expect that they will be safe as they travel throughout our great city and use our vital transportation systems.  I am grateful to our law enforcement partners, the first responders and the everyday New Yorkers who stepped up during this crisis and showed the best of our city.  And, we continue to pray for the victims and their loved ones as they recover from this traumatic event, both physically and emotionally.” 

Mr. Peace praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies.

“As everyday New Yorkers commuted through Brooklyn on our subway system, Frank James – as alleged – committed a horrific act that resulted in an around-the-clock effort by the FBI's Joint Terrorism Task Force in New York, the NYPD, and the ATF to find him and bring him to justice. Thanks to the incredible work by all involved to identify James and get the proper information out to the public, he's in federal custody and New Yorkers can breathe a little easier in our city today,” stated FBI Assistant Director-in-Charge Driscoll. 

“The arrest of Frank James was in large part due to the vigilance and a concerted effort by New Yorkers to aid law enforcement in the apprehension of violent criminals. We at ATF applaud the public’s engagement and participation in providing vital information to apprehend James, and we hope for a speedy recovery for all victims. ATF will continue to utilize our nationwide Crime Gun Intelligence capabilities to support our partners in the continued investigation of Tuesday’s horrific attack on the NYC subway,” stated ATF Special Agent-in-Charge DeVito.

“Today, after nearly 30 hours of dogged police work, Frank James was arrested by the NYPD without incident,” stated NYPD Commissioner Sewell.  “From the moment Mr. James committed this appalling crime, the police began shrinking his world until he had nowhere to turn – and the people of our city were working right alongside us. So together with our law enforcement partners at the FBI, the ATF, the U.S. Marshals Service, and the U.S. Attorney’s Office for the Eastern District of New York, I want to thank New Yorkers for their vigilance and their help in taking this violent criminal off our streets.”

As set forth in the complaint, during rush hour on the morning of April 12, 2022, James used a Glock 17 pistol he purchased in Ohio to conduct a mass shooting on an N subway train in Brooklyn.  James, dressed in an orange reflective jacket, yellow hard hat, and surgical mask, set off a smoke-emitting device in one of the train cars before firing at subway riders.  James had arrived in New York earlier that day in a rental van driven from Pennsylvania.  He parked the van on Kings Highway, approximately two blocks from the entrance to an N-train station, near where the shooting took place.  After the attack, James abandoned a bag containing, among other items, fireworks, a plastic container containing gasoline, and a torch.

In videos he posted publicly on YouTube before the attack, James made various statements about the New York City subway system.  Among other things, James addressed statements to New York City’s mayor: “What are you doing, brother?  What’s happening with this homeless situation?” and “Every car I went to was loaded with homeless people.  It was so bad, I couldn’t even stand.”  James also made statements, in sum and substance, about various conspiracy theories, including that: “And so the message to me is: I should have gotten a gun, and just started shooting motherf---ers.” 

Following the attack, members of law enforcement executed court-authorized search warrants for properties associated with James in Pennsylvania.  Agents recovered, among other items: 9mm ammunition; a threaded 9mm pistol barrel, which allows for a silencer or suppresser to be attached;.223 caliber ammunition, which is used with an AR-15 semi-automatic rifle; a taser; a high-capacity rifle magazine; and a blue smoke cannister. 

If convicted the defendant faces a maximum sentence of life imprisonment.

The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty.

Anyone with information about Mr. James or this incident is asked to call the FBI at 1-800-CALLFBI. Digital tips may also be submitted by visiting www.fbi.gov/brooklynshooting.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant U.S. Attorneys Douglas M. Pravda, Alexander A. Solomon, Craig R. Heeren, David K. Kessler, Ian C. Richardson, Artie McConnell, Alexander Mindlin, Sara Winik, Ellen Sise, and Meredith A. Arfa, and Paralegal Specialists Wayne Colon and Benjamin Richmond, handled the investigation, with assistance provided by Trial Attorney Larry Schneider of the National Security Division’s Counterterrorism Section.

Attorney General’s Office of Special Investigation Opens Investigation Into Civilian Death in Brooklyn

 

 The New York Attorney General’s Office of Special Investigation (OSI) has opened an investigation into the death of a man who died on April 7, 2022 following an encounter with members of the New York City Police Department (NYPD).

On the evening of April 7, a civilian was standing on Eastern Parkway near Schenectady Avenue in Brooklyn when he was struck by an NYPD vehicle. The civilian was rushed to a local hospital and he was pronounced dead.

Pursuant to New York State Executive Law Section 70-b, OSI assesses every incident reported to it where a police officer or a peace officer, including a corrections officer, may have caused the death of a person, by an act or omission. Under the law, the officer may be on-duty or off-duty, and the decedent may be armed or unarmed. Also, the decedent may or may not be in custody or incarcerated. If OSI’s assessment indicates an officer caused the death, OSI proceeds to conduct a full investigation of the incident.

These are preliminary facts and subject to change. 

MAN INDICTED FOR ATTEMPTED MURDER FOR PLOWING CAR INTO PARKGOER WALKING DOG

 

Victim Left with Multiple Fractures; Dog Was Also Injured

 Bronx District Attorney Darcel D. Clark today announced that a man has been indicted for Attempted Murder in the second-degree and other charges for critically injuring a woman in Claremont Park when he allegedly drove a stolen car onto a walkway and struck her as she walked her dog.

 District Attorney Clark said “The defendant allegedly turned the 3,000-pound vehicle into a weapon that injured a 58-year-old woman and her dog while they were enjoying time at a local park. He put the lives of all parkgoers at risk when he allegedly recklessly drove into the park. After striking the victim he kept going, ultimately crashing the car into other vehicles. We are fortunate no one else was seriously hurt, and that police sprang into action apprehending the suspect.”

 District Attorney Clark said the defendant, Becan Floyd, 22, was arraigned today on Attempted Murder in the second degree, two counts of first-degree Assault, two counts of second degree Assault, third-degree Criminal Possession of Stolen Property, Leaving the Scene of an Incident Without Reporting, and second-degree Reckless Endangerment before Bronx Supreme Court Justice George Villegas. Remand was continued and the defendant is due back in court on July 7, 2022.

 According to the investigation, on March 12, 2022 at approximately 6:51 p.m. near the corner of Morris Avenue and Teller Avenue inside Claremont Park, the defendant allegedly drove a stolen rental car into Christina Emiliano and her dog Rocco, as the two were walking in the park on a grassy area. Patrolling officers observed the alleged attack and pursued Floyd. The officers pursued the defendant and arrested him after he crashed the stolen car into two vehicles.

 The victim was taken to NYC Health + Hospitals Lincoln after suffering multiple fractures and was placed on a ventilator in critical condition until recently. Her dog Rocco had head lacerations and went missing. He was found and returned to his owners.

 District Attorney Clark also thanked NYPD Officer Kevin Wallace and Detective Enmanuel Rosario of NYPD Collision Investigation Squad who assisted with the investigation and prosecution of the case as well as Police Officers Vincent Fortino and Michael Espenberg of the 44th Precinct.

 An indictment is an accusatory instrument and not proof of a defendant’s guilt.

Russian Legislator And Two Staff Members Charged With Conspiring To Have A U.S. Citizen Act As An Unregistered Agent Of The Russian Government In The United States

 

Russian Legislator Aleksandr Mikhaylovich Babakov and Staff Members Aleksandr Nikolayevich Vorobev and Mikhail Alekseyevich Plisyuk Allegedly Conspired to Commit U.S. Crimes in Furtherance of a Global Foreign Influence Scheme

 Damian Williams, the United States Attorney for the Southern District of New York, Matthew G. Olsen, the Assistant Attorney General for National Security, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging ALEKSANDR MIKHAYLOVICH BABAKOV, ALEKSANDR NIKOLAYEVICH VOROBEV, and MIKHAIL ALEKSEYEVICH PLISYUK, citizens of the Russian Federation (“Russia”), with conspiring to act in the United States as an unregistered agent of Russia, conspiring to violate United States sanctions, and conspiring to commit visa fraud.  BABAKOV, a Deputy Chairman in the Russian legislature, VOROBEV, and PLISYUK are based in Russia and remain at large.

U.S. Attorney Damian Williams said: “Russian legislator Aleksandr Babakov and two of his staffers allegedly orchestrated a covert Russian propaganda campaign in the U.S. in order to advance Russia’s malevolent political designs against Ukraine and other countries, including the U.S.  Today’s indictment demonstrates that Russia’s illegitimate actions against Ukraine extend beyond the battlefield, as political influencers under Russia’s control allegedly plotted to steer geopolitical change in Russia’s favor through surreptitious and illegal means in the U.S. and elsewhere in the West. Such malign foreign interference will be exposed, and we will pursue justice against its perpetrators.”

Assistant Attorney General Matthew G. Olsen said: “The indictment alleges that a high-ranking Putin-aligned legislator and his closest staffers, all three of whom are sanctioned, engaged in a global campaign to influence and gain access to U.S. elected officials. The Department will not hesitate to prosecute those who seek to covertly influence the American political process and evade U.S. sanctions.”

FBI Assistant Director-in-Charge Michael J. Driscoll said: “Beginning as far back as 2012, Aleksandr Babakov, an oligarch who has served as a leader in the Russian legislature along with two of his deputies, operated a nonprofit organization as a subterfuge for an international foreign influence and disinformation network to advance the interests of the Russian Government. As alleged, Babakov sought to undermine Western sanctions - including those imposed against him - promote Russia’s illicit actions designed to destroy Ukrainian sovereignty, and co-opt and cultivate relationships with U.S. politicians to advance Russia’s malign foreign policy objectives. Today’s action demonstrates the FBI’s unwavering commitment to the identification and disruption of Russian Government schemes to target the national security and foreign policy of the United States.”

According to the allegations contained in the Indictment unsealed today in Manhattan federal court[1]:

Beginning in or around January 2012 and continuing into at least June 2017, Babakov, a member of the Russian legislature, Vorobev, his Chief of Staff, and Plisyuk, another member of Babakov’s staff, operated an international foreign influence and disinformation network to advance the interests of Russia. The defendants used a nonprofit organization based in Russia, the “Institute for International Integration Studies,” as a front for this global foreign influence campaign to advance Russia’s foreign policy objectives. Through these operations aimed at influencing the course of international affairs, the defendants worked to weaken U.S. partnerships with European allies, undermine Western sanctions, and promote Russia’s illicit actions designed to destroy the sovereignty of Ukraine. The defendants schemed to affect U.S. policy towards Russia through staged events, paid propaganda, and the recruitment of at least one American citizen (“CC-1”) to do their bidding in unofficial capacities. In pursuit of these goals, the defendants sought to co-opt U.S. and European politicians and to influence public opinion in their favor, using American and European citizens as their proxies in an effort to validate them, bring them access to power, evade sanctions, and obscure their true objective to advance Russia’s foreign policy.

Among other things, the defendants contacted members of the U.S. Congress from 2012 into 2017 to seek meetings and to offer free travel to at least one Congressmember on behalf of BABAKOV, as well as other foreign officials aligned and associated with BABAKOV. For example, in 2012, at the direction of the defendants, CC-1 sought to secure a meeting for BABAKOV with multiple members of Congress, including by offering a trip to a particular Congressmember “all expenses paid” to meet with European politicians and receive “an award.” Congressmembers rebuffed these efforts.

In March 2017, the defendants sought to arrange a meeting for BABAKOV with a member of the U.S. Congress in pursuit of the objective of “strengthen[ing] the ties of cooperation between” Russia and the United States. To secure that meeting, the defendants, through CC-1, transmitted a letter drafted by CC-1 and signed by BABAKOV to a particular Congressmember.

Also in March 2017, the defendants contacted at least one member of the U.S. Congress to offer free travel to a BABAKOV-affiliated conference in Yalta, part of Russia-controlled Crimea, as a service to benefit the purported “Prime Minister of Crimea,” Sergey Aksyonov, who was organizing and attending the conference, and had been sanctioned by the United States Department of Treasury’s Office of Foreign Assets Control (“OFAC”) as a Specially Designated National since 2014 based on his role in actions and policies threatening the sovereignty of Ukraine. The defendants worked together and with their associates to organize, facilitate, and promote the Yalta conference, including by soliciting Americans to attend and present at the conference and receive funding from Aksyonov’s organizing committee, for the benefit of Akysonov and his Russia-backed purported government of Crimea. The Congressmember did not accept the offer.

In connection with these foreign influence activities, the defendants also submitted fraudulent visa applications in February 2017 seeking to travel to the United States under the false pretense of each traveling alone for a “vacation,” when in fact they planned to conduct unofficial meetings with U.S. politicians and advisors to further their influence objectives. In June 2017, OFAC sanctioned the three defendants as Specially Designated Nationals. The defendants’ visa applications were ultimately denied in January 2018, disrupting the defendants’ planned meetings in the U.S.

BABAKOV currently serves as the Deputy Chairman of the State Duma, the lower house of the Russian legislature. From approximately September 2014 to October 2021, BABAKOV served as a member of the Russian Federation Council, the upper house of the Russian legislature, and therefore had the title of “Senator.” From approximately 2003 to 2014, BABAKOV served as a member of the State Duma, where he held prominent roles such as Chair of the State Duma Commission on Legislative Provisions for Development of the Military-Industrial Complex of the Russian Federation. In or about 2011, BABAKOV joined the United Russia party, which is the political party of Russian President Vladimir Putin. On or about June 17, 2012, Putin appointed BABAKOV to be the Russian Federation’s Special Representative for Cooperation with Organizations Representing Russians Living Abroad. BABAKOV has become a leader in the “For Truth” party formed in or about 2021, which supports Putin. At all times relevant to the Indictment, VOROBEV has held the position of Chief of Staff for BABAKOV, and PLISYUK has served on BABAKOV’s staff.

BABAKOV, 59, VOROBEV, 52, and PLISYUK, 58, of Russia, are charged with one count of conspiring to have a U.S. citizen act as an unregistered agent in the United States for Russia and Russian officials without notifying the Attorney General, which carries a maximum sentence of five years in prison; one count of conspiring to violate and evade U.S. sanctions, in violation of the International Emergency Economic Powers Act, which carries a maximum sentence of 20 years in prison; and one count of conspiring to commit visa fraud, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

Mr. Williams praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division, and thanked the Department of Justice’s National Security Division, Counterintelligence and Export Control Section, for their assistance.

On March 2, 2022, the Attorney General announced the launch of Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.  The task force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.

The case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Kimberly J. Ravener and Kyle A. Wirshba are in charge of the case, with assistance from Trial Attorney Scott Claffee of the Counterintelligence and Export Control Section.

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

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