Former Wall Street Stockbroker Convicted Of Defrauding Investors

Jason Amada Sentenced to 3 to 6 Years in Prison for Stealing Over $489,000 from Investors in Three-Year Foreign Currency Trading Scheme

 New York Attorney General Letitia James today announced the conviction and sentencing of former stockbroker Jason Ari Amada, 42, of Forest Hills, Queens, for stealing over $489,000 from victims who had invested in his bogus foreign currency trading venture. Amada was sentenced in New York County Supreme Court to three to six years in prison after signing confessions of judgment in favor of his eight victims.

“If those who work on Main Street have to play by the rules, so must those on Wall Street,” said Attorney General James. “Instead of investing his clients’ savings in profitable funds, Jason Amada played fast and loose, losing hundreds of thousands of dollars of his investors’ money. What’s worse is that Mr. Amada further defrauded investors by using their money like it was a part of his personal piggybank, all while furthering his scheme by creating fake account statements that showed he was making them profits. My office will use every tool in its arsenal to ensure criminals are brought to justice because no one is above the law.”

In September, Amada pleaded guilty to Grand Larceny in the Second Degree, a Class C felony, and Scheme to Defraud in the First Degree, a Class E felony, before the Honorable Maxwell Wiley in New York County Supreme Court. His guilty pleas resolved two sets of charges brought by the Attorney General’s Criminal Enforcement and Financial Crimes Bureau. On August 29, 2018, Amada was arrested on an indictment, charging him with fraudulently soliciting a client to invest €250,000, and then losing 99% of her principal in less than 45 days of aggressive foreign currency trading. Following his arrest, additional victims reported that they had invested and lost money with Amada under similar circumstances. The Office of the Attorney General filed charges against Amada related to claims brought forward by seven other victims who were fraudulently solicited to invest with Amada between March 2015 and November 2018. In total, Amada defrauded investors out of more than $489,000.

Amada held himself out to the public as an experienced foreign currency — or Forex — trader and the operator of multiple legitimate investment management firms. However, he failed to disclose to his victims that he had not been a licensed broker since 2012. Amada also did not reveal that the various ventures he claimed to be associated with — Amada Capital Management, LLC, Amada Capital, LLC, and Evolution FX Trading — were mere shell corporations with no employees or genuine operations. They also were not registered with any regulatory authorities to trade foreign currencies.

In order to induce his victims to invest with him, Amada persuaded them that he could trade Forex safely and that capital preservation strategies would be employed to protect their investments. For instance, he falsely represented to one victim that she would not lose more than one-percent of her total investment. Amada led another victim to believe that he would use a hedging strategy that would minimize any potential losses. Contrary to his false representations to victims, Amada used highly-leveraged, aggressive trading tactics that resulted in the rapid and complete dissipation of his victims’ funds, while at the same time earning over $150,000 in fees and commissions for himself.

In addition to his high-risk trading strategies, Amada also diverted investor monies to pay for his own personal expenses. Amada diverted funds through corporate bank accounts into his own personal bank accounts, and, on some occasions, simply cashed the victim’s investment checks. Between 2015 and 2018, Amada spent approximately $100,000 of investor dollars on travel, dining, clothing, credit card bills, personal loans, payments to family and friends, purchasing cryptocurrency, and even on online gambling; he also made over $83,000 in cash withdrawals.  

In furtherance of his scheme, Amada concealed the trading losses and misappropriation of investor funds by providing his victims with fake account statements. Every month, Amada invented details of profitable trades to enter into elaborate statements that he would email his victims. These statements showed increasing account balances and swelling profits. Not only did these forged statements mask Amada’s crimes, but they also enabled him to convince some victims to continue investing. Amada deceived some of his victims for years about the status of their investments. They only discovered the truth once they asked Amada to return their investments, and he could not do so.

The Office of the Attorney General wishes to thank Trial Attorney Nicholas Sloey, Senior Trial Attorney Rachel Hayes, and Futures Trading Investigator Elsie Robinson of the Commodities and Futures Trading Commission (CFTC), and Thomas Carocci of the Financial Industry Regulatory Authority (FINRA) for their valuable assistance in the investigation of this case.

ROADMAP TO CLOSING RIKERS: DE BLASIO ADMINISTRATION TO CLOSE TWO JAILS NEXT YEAR

  As part of the continued drive to close the jails on Rikers Island and build new modern and borough-based facilities by 2026, the City will close two more jails next year. The Eric M. Taylor Center (EMTC) on Rikers Island will close in March, and the Brooklyn Detention Complex (BKDC) in Boerum Hill will close by the end of January. This comes as the city’s jail population has fallen below 7,000—giving New York City the lowest rate of incarceration and lowest crime rate of any large city in the United States. These are the second and third facilities shuttered by the administration as part of its ongoing commitment to ending mass incarceration while maintaining public safety.

“With the lowest rate of incarceration of any major city and crime at historic lows, New York is again debunking the notion that you must arrest your way to safety,” said Mayor Bill de Blasio. “These two closures show that we are making good on our promise to close Rikers Island and create a correctional system that is fundamentally smaller, safer and fairer.”

The closures will allow the Department of Correction to concentrate resources more effectively, resulting in better conditions, enhanced programming, and safer facilities for both people in custody and correctional staff. The Brooklyn jail, located at 275 Atlantic Avenue, opened in 1957 and currently houses about 400 people, with a capacity of 759. EMTC, built in 1964 and expanded in 1973, has capacity of 1719 and houses about 850 people who are serving city sentences of one year or less. Staff at BKDC and EMTC will be reassigned to other facilities, and the closures will not result in any layoffs. In addition, admissions that are currently processed in BKDC will be accommodated in other borough facilities. No one who is currently housed in BKDC will be moved to Rikers Island unless there is a specific housing need.

In early October, the City Council passed the historic land use application that allows the City to proceed with its plans for a borough-based jail system. Since then the jail population has continued to fall as crime has reached historic lows, and the City now projects a jail population of no more than 3,300 people by 2026.

Since Mayor de Blasio took office, the City’s jail population has rapidly fallen by 39%, driven by declines in enforcement, continued drop in crime, and new and innovative programming, such as the City’s nationally recognized pre-trial bail alternative Supervised Release. With new State bail laws coming into effect on Jan. 1, 2020, the City is expanding its community support services, such as the new voluntary pre-trial Atlas program, in anticipation of an even sharper drop in the jail population.

Last week, the City announced its current procurement timeline for the borough-based jail plans. Requests for Qualifications (RFQs) for early work items are being published today with the remaining RFQs to be issued in the first quarter of 2020.

“The closure of two additional facilities is the latest proof of the effectiveness of the city’s efforts to reduce the jail population while ensuring public safety.  This is the result of much work from many people inside and outside of government over the past six years as the touch of enforcement has lightened, judges have more options available to them, and New Yorkers’ own behavior has changed,” said Elizabeth Glazer, Director of the Mayor’s Office of Criminal Justice.

“Today’s announcement is an important step forward in our efforts to bring about a new era of correctional practice in New York City,” said Department of Correction Commissioner Cynthia Brann.  “By consolidating our population and staff in the Department’s newer facilities, we will reduce overtime, expand officer training, more easily provide programs to individuals in custody, and ensure everyone can reap the benefits of the strategic investments we have made to enhance overall safety. This is an exciting opportunity to make the best use of the space we have available today while continuing to work towards building our future.

NYC Carpenters Endorse Blake For Congress

The New York City & Vicinity District Council of Carpenters has issued an endorsement to 2020 Congressional Candidate for New York’s 15^th district, Assembly Member Michael Blake. The New York City District Council of Carpenters represents 22,000 union members. 

Assembly Member Michael Blake has a goal to provide and sustain a stable lifestyle for the hardworking men and women of New York State. He won the endorsement of the District Council of Carpenters for standing with working class New Yorkers, recognizing the value of unions and having proven himself to be a strong ally of labor. Now more than ever, it is critical for elected officials to stand on the side of working people as unions are under attack at home, in New York, and at the highest levels of government. As we head into a Presidential Election year, we need the strongest representatives in New York to preserve the state of unions. Assembly Member Michael Blake will represent that voice of labor in Washington D.C. 

“As a son of labor, I am thrilled to receive the endorsement of the New York City & Vicinity District Council of Carpenters to be the next Member of Congress for New York's 15th district as the Carpenters recognize and support our #BelieveintheBx vision to create jobs and opportunities for all,” stated Assembly Member Michael Blake. “The union carpenters have been and continue to be great neighbors in The Bronx, and, I am confident that together we can bring jobs, apprenticeships, Justice and a better way of life for all Bronxites in the 15th Congressional District.”

“The New York City & Vicinity District Council of Carpenters is proud to endorse Assembly Member Michael Blake in his bid for Congress in District 15,” stated Executive Secretary-Treasurer Joseph Geiger. “Assembly Member Blake has already shown his commitment to communities throughout New York City, and I am confident that under his leadership, he will provide a pathway to more secure career opportunities and growth for the hardworking men and women in our area.”

MAYOR DE BLASIO AND CHANCELLOR CARRANZA ANNOUNCE RECORD HIGH 48,782 NEW YORK CITY STUDENTS ENROLLING IN COLLEGE

  Mayor Bill de Blasio and Schools Chancellor Richard A. Carranza released the announced that a record-high 48,782 students in the Class of 2018 enrolled in college, up approximately 8,000 students since the start of the administration and approximately 3,600 students compared to the year prior. College enrollment is at its highest ever – 62 percent of New York City’s Class of 2018 (students entering 9^th grade in Fall 2014) enrolled in a two- or four-year college, vocational program, or public service program after graduation, up 3 percentage points from the previous year and up 11 percentage points from the Class of 2013.

“Our schools launch our kids to successful futures, and now more students than ever are enrolled in college and taking another step toward fulfilling their potential. We are making sure our students know college isn’t just for a select few and that zip code no longer determines who gets to go,” said Mayor Bill de Blasio.

“The numbers are in and the results are clear: in New York City, more students are enrolling in college and on a path to success. Our schools are assisting at every turn by building college and career-ready cultures, eliminating barriers such as application fees, and helping students directly apply. This is Equity and Excellence in action, and I’m so proud of students, educators and families,” said Chancellor Richard A. Carranza.

The Equity and Excellence for All agenda has improved outcomes for students year after year, ensuring every high school has resources for students to graduate with a college and career plan and every middle school is providing students with early exposure to college campuses and school-based events promoting the pursuit of higher education. Measures of college readiness for the Class of 2018 also improved – 51 percent of all students in the Class of 2018 graduated college ready, defined as graduating high school on time and meeting CUNY’s standards for college readiness in English and Math. The graduation rate for the Class of 2018 reached a record-high of 75.9 percent.

Through College Access for All, more students are completing key milestones and directly applying to college: they are visiting a college campus with their high school, taking the SAT, applying to college, applying for financial aid, and enrolling in college and postsecondary programs. The initiative has also removed financial obstacles for students. In the Class of 2018, 44,944 students redeemed fee waivers through CUNY, allowing them to apply for free. That same school year, 80 percent of juniors participated in SAT school day, taking the exam in school free of charge.

As a result, more students are enrolling in programs at CUNY, SUNY, New York State private colleges and out of state colleges. In addition to increases in college enrollment and college readiness, the 2018-19 School Quality Reports, released today, give families a clear, concise picture of the quality of each school, and the School Quality Guide provides more detailed information intended for schools to use to inform their planning efforts.

The School Quality Reports are available on the DOE and individual school websites Executive Superintendents and Superintendents are able to use data and information from the Reports to make informed decisions about which targeted supports will be most useful to schools.

The School Quality Snapshot is available as a searchable web-based and mobile-ready tool, so families can easily search for schools and information, including from their phones. The tool is available in more than 100 languages through Google Translate, and has screen-reader compatibility making it more accessible for individuals with disabilities.

School Quality Report data is also included on the School Performance Dashboard, an interactive data tool that shows data for each school over time. The School Quality Reports were updated in 2015 to align to the Framework for Great Schools, the DOE’s research-based approach to school improvement, and continue to be refined based on feedback from school leaders and communities as well as analysis conducted internally and by external researchers. Schools with strong 2018 Framework ratings were nine times more likely to substantially improve student achievement in 2019, demonstrating that schools with a focus on improving the elements of the Framework are more likely to see improvement in student achievement. 

Mayor de Blasio’s Equity and Excellence for All initiatives are promoting increased college readiness and access to postsecondary options across all five boroughs. This specifically includes the College Access for All, AP for All, Algebra for All, and Single Shepherd initiatives.

Together, the Equity and Excellence for All initiatives are building a pathway to success in college and careers for all students. Our schools are starting earlier – free, full-day, high-quality education for three-year-olds and four-year-olds through 3-K for All and Pre-K for All. They are strengthening foundational skills and instruction earlier – Universal Literacy so that every student is reading on grade level by the end of 2nd grade; and Algebra for All to improve elementary- and middle-school math instruction and ensure that all 8th graders have access to algebra. They are offering students more challenging, hands-on, college and career-aligned coursework – Computer Science for All brings 21st-century computer science instruction to every school, and AP for All will give all high school students access to at least five Advanced Placement courses. Along the way, they are giving students and families additional support through College Access for All, Single Shepherd, and investment in Community Schools. Efforts to create more diverse and inclusive classrooms, including Equity & Excellence for All: Diversity in New York City Public Schools are central to this pathway.

More information about the School Quality Reports, including reports for individual schools, training materials, and a link to the School Performance Dashboard, is available online.

“Higher education is a gateway to higher incomes, fulfilling careers, and the numerous tangible and intangible ways for students to be empowered and access social mobility. I commend Mayor de Blasio, Chancellor Carranza, and all the educators and students who have helped achieve this year’s record-high levels of college enrollment in New York City. While much remains to be done to tackle the lack of quality education as a main contributor to the systemic inequalities many of our youth and communities are up against, initiatives like the Equity and Excellence for All and the a College for All agendas play an important role in breaking down those barriers, righting historic wrongs, and opening meaningful, life-changing opportunities for our students,” said Senator Luis Sepulveda.

EDITOR'S NOTE:

Of course the number of NYC public school students  going to college will increase, because the number of students in public schools goes up every year. The real indicator of improvement would be to show the percentage of students by borough going to college.

Poor Bronx State Senator Luis Sepulveda who does not care that Bronx students in his own district (and borough) are performing much lower than students in all of the four other boroughs.

When asked in August 2018 standing in a school in State Senator Luis Sepulveda's district why the public school children in Sepulveda's district and the Bronx as a whole were not performing to the level of the four other boroughs, Chancellor Carranza said "the mayor and he know that Bronx children are not performing up to the level they should be." 

Mayor de Blasio and Chancellor Carranza came up with a plan to pay teachers $7,200 more, but the mayor was endorsed by the teachers union, and the so called Bronx Plan includes schools in Brooklyn and Queens, while Bronx schools still lag behind in performance.

Bipartisan Members of the House Asthma and Allergy Caucus Introduce Legislation to Honor Elijah Cummings

  Representatives Eliot L. Engel (D-NY-16), Fred Upton (R-MI-06), Pete King (R-NY-02) and TJ Cox (D-CA-21), all members of the House Asthma and Allergy Caucus, have introduced legislation to honor Elijah E. Cummings’ long-time advocacy for those living with asthma.

The Elijah E. Cummings Family Asthma Act would expand federal, state, and local efforts to improve care for individuals with asthma. More specifically, this legislation expands the Centers for Disease Control and Prevention’s National Asthma Control Program to serve all 50 states and directs the CDC to collaborate with state and local health departments to provide information and education to the public about asthma. It also requires the development of state plans to address asthma, particularly for disproportionately affected communities, and requires the collection and coordination of data on the impact of asthma.

This bipartisan legislation has been endorsed by the Childhood Asthma Leadership Coalition, which consists of 15 organizations dedicated to reducing the prevalence and incidence of asthma. Members of the coalition include: Children’s Hospital Association, Trust for America’s Health, and the American College of Allergy, Asthma and Immunology.

“Throughout his illustrious career, Chairman Cummings always fought to ensure everyone had a voice. That included those living with asthma,” said Rep. Engel. “His longstanding advocacy work on asthma and asthma related illness stemmed from his commitment to driving down the high asthma rates in Baltimore. It’s the same reason I formed Asthma and Allergy Caucus; to help the families I represent in the Bronx and Westchester dealing with these illnesses. I’m honored to re-introduce this legislation with bipartisan Members of the Caucus to commemorate Chairman Cummings’ work to reduce the impact of asthma.”

“Elijah Cummings was a true leader and a giant of the House who always fought to help improve the lives of his beloved Baltimore and those across the nation. In particular, he cared deeply about helping those with asthma, so it’s fitting that the Family Asthma Act will be named in his honor,” said Rep. Upton. “In Michigan, more than 780,000 adults live with asthma, making this legislation particularly important for our state and for the 25 million people across the nation who have it. By raising awareness of asthma and allergies, we hope to advance opportunities for treating those conditions, educate the public about symptoms, and make a truly positive impact for tens of millions of Americans.”

DE BLASIO ADMINISTRATION RELOCATES EAST VILLAGE SANITATION TRUCKS IN RESPONSE TO RESIDENT CONCERNS

  Mayor Bill de Blasio and Sanitation Commissioner Kathryn Garcia today announced that Sanitation collection trucks that had been previously parked on East 10th Street have been relocated and are now temporarily stationed at Pier 42 in Lower Manhattan. The alternative location will allow the Sanitation Department to respond to local concerns while still providing essential services like snow removal and collection for nearby neighborhoods.

“When New Yorkers want something done, they want it done yesterday, which is why we’d like to thank our neighbors in the East Village for bearing with us while we found a new home for our sanitation trucks,” said Mayor Bill de Blasio. “We heard their concerns and we’ve responded. Residents can once again enjoy the clean streets and sidewalks that the Department of Sanitation provides without obstruction.”

“The Sanitation Department provides timely essential services like snow removal and collection to New York City residents,” said Sanitation Commissioner Kathryn Garcia. “To do this, we must be near the neighborhoods we serve and finding garage locations in the city’s tight real estate landscape has been a challenge. Parking on East 10th Street was a matter of last resort, which is why we are happy to have been able to find a suitable alternative that allows us to continue our essential services.”

Prior to today’s relocation, the Sanitation Department had parked several trucks near a department facility on East 10th Street between 1st and 2nd Avenues after losing its Manhattan District 6 Garage lease. The street parking provided equipment and facility space so that the Department could continue providing essential, uninterrupted service while it continued its search for a suitable alternative.

Pier 42 in Lower Manhattan was recently identified as a temporary location, and Sanitation trucks will be stationed there until construction for a Parks Department public space begins early next year.

The Sanitation Department continues to work on a long-term solution and placement for a Manhattan 6 garage, including a new proposed garage at the Brookdale Campus location. It will continue to work with elected officials and community leaders to develop a permanent facility to serve the East Side of Manhattan.

30 Defendants Charged With Narcotics And Firearms Offenses In Manhattan Federal Court

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of five Indictments charging 30 defendants with committing various narcotics and firearms offenses in Manhattan and the Bronx.   

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

United States v. Neury Abreu, et al., 19 Cr. 821

Between January 2016 and November 2019, NEURY ABREU, 26, ALEXANDER DEJESUS, 27, JOSHUA PEREZ, 27, ALEXANDER BAEZ, 46, IVAN BREA, 28, JOSE CRUZ, 22, LUIS ESPINAL, 30, and ANTHONY MELO, 19, conspired to sell 280 grams or more of crack cocaine, cocaine, Oxycodone, and marijuana.  Members of the conspiracy distributed narcotics in and around the Inwood neighborhood of Manhattan.  

Between January 2016 and November 2019, ABREU, DEJESUS, and PEREZ used and carried firearms during and in relation to, and possessed firearms in furtherance of, the narcotics conspiracy charged in the Indictment.  PEREZ also possessed a firearm on or about July 8, 2019, and on or about July 11, 2019, after having previously been convicted of a felony.  

United States v. Alexander Melo, et al., 19 Cr. 818

Between April 2019 and November 2019, ALEXANDER MELO, 28, JAVIER JANIEL, 23, FRANMY LUNA, 24, and JUAN PERALTA, 25, conspired to sell 280 grams or more of crack cocaine, and cocaine.  Members of the conspiracy distributed narcotics in and around the Inwood neighborhood of Manhattan.  

On or about October 9, 2018, MELO possessed a shotgun after having been convicted of a felony, and having had three convictions for three serious drug offenses, all of which were committed on occasions different from one another, in violation of the Armed Career Criminal Act. 

United States v. Mario Delgado, et al., 19 Cr. 817

Between October 2018 and November 2019, MARIO DELGADO, 32, DANIEL CUEVAS, 27, and EDWARD RODRIGUEZ, 30, conspired to sell 100 grams and more of Acetyl Fentanyl (which is an analogue of Fentanyl), Fentanyl, and Oxycodone.  Members of the conspiracy distributed narcotics in and around the Washington Heights neighborhood of Manhattan.  

United States v. Roberto Sanchez, et al., 19 Cr. 820

Between January 2019 and November 2019, ROBBERTO SANCHEZ, 41, and JULIO ABREU, 28, conspired to sell heroin, cocaine, and marijuana.  Members of the conspiracy distributed narcotics in and around the Washington Heights neighborhood of Manhattan.  

United States v. Alberto Marte, 19 Cr. 795

From at least in or about 2018 through in or about 2019, ALBERTO MARTE, a/k/a “Scotty,” a/k/a “Skylet,” 42, JUNIOR RODRIGUEZ, a/k/a “Skrilla,” 23, ERICK MELENCIANO, a/k/a “Gualey,” 26, NICHOLAS FALU, a/k/a “Nico,” 31, KEVIN ROSADO, a/k/a “Malda,” 26, GUERY CRUZ, a/k/a “Capo,” 24, JONATHAN RODRIGUEZ, a/k/a “Nathan,” 31, OMAR BAEZ, a/k/a “Smokey,” 23, SAMUEL SOSA, a/k/a “Sammy,” 21, YOAN DELACRUZ, a/k/a “Johan,” 29, RAYMER CASILLA, a/k/a “Ray Savage,” 23, KEVIN MELENDEZ, a/k/a “Freaky,” 26, and JOSE BAUTISTA, a/k/a “Nelo,” a/k/a “Echo,” 30, conspired to sell oxycodone and possessed firearms in furtherance of that conspiracy.

Thirteen of the 30 defendants were arrested this morning and will be presented later today before U.S. Magistrate Judge Sarah Netburn in Manhattan federal court.  Twelve of the 30 defendants, charged in connection with United States v. Alberto Marte, were arrested on November 13, 2019, and presented before U.S. Magistrate Judge Katharine H. Parker.  JOSHUA PEREZ was already in federal custody and will be presented at a later date. 

Charts containing the names, charges, 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.

Mr. Berman praised the outstanding investigative work of the FBI/NYPD Metro Safe Streets Task Force, and he thanked the New York City Department of Investigation for its assistance in the case. 

This case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant United States Attorneys Frank Balsamello, Adam Hobson, Jacob Warren, Celia Cohen, and Dominick Gentile are in charge of the prosecutions.

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

 United States v. Neury Abreu, et al., 19 Cr. 821

COUNT	CHARGE	DEFENDANTS	MAX. PENALTIES
1	Narcotics trafficking conspiracy 21 U.S.C. § 846	NEURY ABREU, ALEXANDER DEJESUS, JOSHUA PEREZ, ALEXANDER BAEZ, IVAN BREA, JOSE CRUZ, LUIS ESPINAL, and ANTHONY MELO	Life in prison Mandatory minimum of 10 years in prison
2	Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a narcotics trafficking crime 18 U.S.C. § 924(c)	NEURY ABREU, ALEXANDER DEJESUS, JOSHUA PEREZ	Life in prison Mandatory minimum of 5 years in prison
3	Felon in possession of a firearm 18 U.S.C. § 922(g)(1)	JOSHUA PEREZ	10 years in prison
4	Felon in possession of a firearm 18 U.S.C. § 922(g)(1)	JOSHUA PEREZ	10 years in prison

 United States v. Alexander Melo, et al., 19 Cr. 818

COUNT	CHARGE	DEFENDANTS	MAX. PENALTIES
1	Narcotics trafficking conspiracy 21 U.S.C. § 846	ALEXANDER MELO, JAVIER JANIEL, FRANMY LUNA, and JUAN PERALTA,	Life in prison Mandatory minimum of 10 years in prison
2	Armed Career Criminal Act 18 U.S.C. §§ 922(g)(1) and 924(e)	ALEXANDER MELO	Life in prison Mandatory minimum of 15 years in prison

 United States v. Mario Delgado, et al., 19 Cr. 817

COUNT	CHARGE	DEFENDANTS	MAX. PENALTIES
1	Narcotics trafficking conspiracy 21 U.S.C. § 846	MARIO DELGADO, DANIEL CUEVAS, and EDWARD RODRIGUEZ	Life in prison Mandatory minimum of 10 years in prison

 United States v. Roberto Sanchez, et al., 19 Cr. 820

COUNT	CHARGE	DEFENDANTS	MAX. PENALTIES
1	Narcotics trafficking conspiracy 21 U.S.C. § 846	ROBERTO SANCHEZ, and JULIO ABREU	20 years in in prison

 United States v. Alberto Marte, 19 Cr. 795

COUNT	CHARGE	DEFENDANTS	MAX. PENALTIES
1	Narcotics trafficking conspiracy 21 U.S.C. § 846	ALBERTO MARTE, JUNIOR RODRIGUEZ, ERICK MELENCIANO, NICHOLAS FALU, KEVIN ROSADO, GUERY CRUZ, JONATHAN RODRIGUEZ, OMAR BAEZ, SAMUEL SOSA, YOAN DELACRUZ, RAYMER CASILLA, KEVIN MELENDEZ, JOSE BAUTISTA	20 years in prison
2	Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a narcotics trafficking crime 18 U.S.C. § 924(c)	ALBERTO MARTE, JUNIOR RODRIGUEZ, ERICK MELENCIANO, NICHOLAS FALU, KEVIN ROSADO, GUERY CRUZ, JONATHAN RODRIGUEZ, OMAR BAEZ, SAMUEL SOSA, YOAN DELACRUZ, RAYMER CASILLA, KEVIN MELENDEZ, JOSE BAUTISTA	Life in prison Mandatory minimum of 5 years in prison

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

10 Defendants Charged In Manhattan Federal Court With Running Nationwide Telemarketing Fraud Scheme Targeting The Elderly

Defendants Allegedly Created and Used “Money Sucking Website” to Identify Vulnerable Victims Whom They Then Targeted and Victimized

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, the Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of an Indictment charging ANTHONY CHEEDIE, CHAD ALLEN, SHANE HANNA, CAMERON BREWSTER, KEVIN HANDREN, JOSEPH CIACCIO, a/k/a “Joseph Gallagher,” JOSEPH MINETTO, JOSEPH DEPAOLA, a/k/a “Joe Hall,” DERREK LARKIN, a/k/a “Derrek Martin,” and MATTIE CIRILO with conspiracy to commit wire fraud in connection with telemarketing.  LARKIN and CIRILO also are charged with obstruction of justice.  The case has been assigned to United States District Judge Victor Marrero.

Nine of the defendants were arrested this morning.  CHEEDIE, MINETTO, DEPAOLA, LARKIN, and CIRILO will be presented this afternoon in Manhattan federal court before United States Magistrate Judge Sarah Netburn.  ALLEN and HANNA will be presented this afternoon in Phoenix federal court before United States Magistrate Judge Deborah M. Fine.  BREWSTER will be presented this afternoon in Las Vegas federal court before United States Magistrate Judge Elayna J. Youchah.  HANDREN will be presented in Salt Lake City federal court before United States Magistrate Judge Evelyn J. Furse.  CIACCIO will be presented at a later date.

Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, these 10 defendants, motivated by greed and the possibility of a quick payday, aggressively targeted the elderly and other vulnerable victims throughout the United States by convincing them to invest their money in various businesses, and then scammed those victims again after pushing them deep into debt.  In reality, allegedly these so-called opportunities were just fraudulent schemes to steal victims’ money, and the so-called ‘debt relief’ only further abused the trust innocent victims placed in the defendants.  Now, the defendants face time in prison for their alleged crimes.”

HSI Special Agent-in-Charge Peter C. Fitzhugh said:  “Those charged in this investigation are purported to have taken advantage of our aging population by posing as telemarketers.  This criminal organization allegedly strategically gave false promises to continue their swindle and get as much money as possible while destroying the lives of their victims.  HSI will not stand by while the elderly, or anyone else, are defrauded out of their hard earned money.  HSI and our law enforcement partners will continue to investigate and arrest those responsible to end their telemarketing scams.  Today, these individuals are done making calls unless they are calling their lawyer.”

Police Commissioner James P. O’Neill said:  “These charges reflect how criminals exploit the elderly and other individuals through telemarking schemes.  I commend the NYPD detectives, our federal partners, and prosecutors of the U.S. Attorney, Southern District, for their efforts and cooperation in this investigation.  Together, we will continue to be relentless in fighting crime that impacts the people we serve wherever, and however, it occurs.”

According to the allegations in the Indictment[1]:

The Business Opportunity Scheme

From at least 2012 until at least November 2019, CHEEDIE, ALLEN, HANNA, BREWSTER, HANDREN, CIACCIO, MINETTO, DEPAOLA, LARKIN, and CIRILO carried out a wide-ranging telemarketing scheme that defrauded hundreds of victims (the “Victims”) throughout the United States, many of whom were over age 70, by selling those Victims so-called “business services” in connection with the Victims’ purported online businesses (the “Business Opportunity Scheme”). 

To perpetrate the Business Opportunity Scheme, certain of the defendants and their co-conspirators sold “services” purporting to make the management of Victims’ businesses more efficient or profitable, including tax preparation or website design services, notwithstanding that many Victims were elderly and did not own a computer.  At the outset of the Business Opportunity Scheme, certain participants employed by a “fulfillment” company sent the Victims electronic or paper “pamphlets” or provided so-called “coaching sessions” regarding these purported online businesses, but at no point did the Victims actually earn any of the promised return on their intended investment. 

In order to perpetrate the Business Opportunity Scheme, the defendants and their co-conspirators engaged in a widespread, coordinated effort to traffic in lists of potential victims, or “leads,” many of whom had previously made an initial investment to create an online business with other participants in the Scheme.  As a general matter, leads were initially generated by sales floors operating in, among other places, Arizona, Nevada, and Utah, including those sales floors operated by ALLEN, HANNA, BREWSTER, and HANDREN.  ALLEN, HANNA, BREWSTER, and HANDREN operated in coordination with several telemarketing sales floors in the New York and New Jersey area, including in Manhattan, and provided lead lists and fulfillment services to other co-conspirators operating those floors, including CHEEDIE, CIACCIO, and MINETTO.  BREWSTER, for example, provided lead lists through a website referred to by BREWSTER and other co-conspirators as the “Money Sucking Website” or “MSW.”  CIACCIO and MINETTO employed several salespeople who sold the so-called business services to Victims of the Business Opportunity Scheme and worked to prevent Victims from receiving refunds on their investments, including DEPAOLA, LARKIN, and CIRILO.

Certain participants in the Business Opportunity Scheme, including ALLEN and HANNA, also told Victims that the Victims had qualified for a government grant, often in connection with starting a small business, and that the Victims should purchase the business services offered as part of the Business Opportunity Scheme as a way to earn money while waiting for the Victim’s grant money to be received.  In truth and in fact, no such government grants existed.

The Debt Relief Scheme

When there were no more services to sell the Victim as part of the Business Opportunity Scheme and/or the Victim had reached the maximum limit on his or her credit cards, the defendants and their co-conspirators effectively refinanced their Victims’ participation in the Business Opportunity Scheme into a new scheme, capitalizing on the Business Opportunity Scheme Victims’ credit card debts by offering to consolidate or settle the Victims’ debt in exchange for an up-front payment (the “Debt Relief Scheme”).  The perpetrators of the Debt Relief Scheme entered into revenue-sharing agreements with certain participants in the Business Opportunity Scheme by which the perpetrators of the Debt Relief Scheme paid certain participants for leads based on a percentage of the sales made to Victims.  In truth and in fact, the perpetrators of the Debt Relief Scheme did not settle or consolidate the Victims’ debt. 

Obstruction of Justice 

In or about January 2019, law enforcement conducted a search of the telemarketing sales floor at which LARKIN and CIRILO were employed.  During the search, law enforcement seized several electronic devices from LARKIN and CIRILO.  Following the search, LARKIN and CIRILO knowingly deleted, and attempted to delete, the data on those devices in an effort to prevent law enforcement from using that data in the instant investigation into the Business Opportunity Scheme.

CHEEDIE, 34, of Jersey City, New Jersey, ALLEN, 41, of Laveen, Arizona, HANNA, 40, of El Mirage, Arizona, BREWSTER, 39, of Las Vegas, Nevada, HANDREN, 37, of Sandy, Utah, CIACCIO, 30, of Hillsdale, New Jersey, MINETTO, 32, of Washington, New Jersey, DEPAOLA, 30, of Hillsdale, New Jersey, LARKIN, 36, of Elmwood Park, New Jersey, and CIRILO, 28, of Elmwood Park, New Jersey, are each charged with one count of conspiracy to commit wire fraud in connection with telemarketing through which they targeted and victimized 10 or more persons over the age of 55, which carries a maximum sentence of 30 years in prison.  LARKIN and CIRILO also are each charged with obstruction of justice, which carries a maximum sentence of 20 years in prison.  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.  

Mr. Berman praised the outstanding investigative work of HSI’s El Dorado Task Force and the NYPD. 

If you believe you have been a victim of the scheme described above, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact Wendy Olsen-Clancy, the Victim Witness Coordinator at the United States Attorney’s Office for the Southern District of New York, at 866-874-8900 or wendy.olsen@usdoj.gov.  You may also report it to Detective Christopher Bastos at 917-480-7167 or christopher.bastos@nypd.org.

 [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.