Brooklyn Supreme Court Justice And Former Chair Of Board Of Directors Of Municipal Credit Union Charged With Obstruction Of Justice

 Former New York City Police Department Officer and Supervisory Committee Member Also Charged With Embezzlement, Fraud, and Controlled Substance Offenses

  Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced today that SYLVIA ASH, presiding judge of the Kings County Supreme Court, Commercial Division, and former chair of the board of directors of Municipal Credit Union (“MCU”), was charged in Manhattan federal court with conspiracy to obstruct justice and obstruction of justice, arising from a scheme to seek to influence and impede an ongoing federal investigation into fraud and corruption at MCU, a non-profit, multibillion-dollar financial institution.  U.S. Attorney Berman also announced today that Joseph Guagliardo, a/k/a “Joseph Gagliardo,” a former New York City Police Department Officer and former member of MCU’s supervisory committee, was charged separately with embezzlement, fraud, and controlled substance offenses arising from abuse of his position as a member of the supervisory committee.  Guagliardo was arrested in Brooklyn, New York, yesterday afternoon and was presented before U.S. Magistrate Judge Ona T. Wang in Manhattan federal court.  ASH was arrested at LaGuardia Airport this morning and is expected to appear before Magistrate Judge Wang in Manhattan federal court this afternoon.

U.S. Attorney Geoffrey S. Berman said:  “The charges announced today reflect the latest in our ongoing work to uncover criminal conduct at the highest levels of MCU, a multibillion-dollar, federally insured credit union.  As alleged, Sylvia Ash, a sitting state court judge, took repeated steps to obstruct a federal investigation into significant financial misconduct at MCU during Ash’s tenure as chair of the board of directors.  Joseph Guagliardo allegedly abused his position as an MCU supervisory committee member to enrich himself and his family.”

According to the allegations contained in the two Complaints unsealed today in Manhattan federal court, publicly available information, and prior court filings:[1]

Municipal Credit Union

MCU is a non-profit financial institution headquartered in New York, New York, which is federally insured by the National Credit Union Administration (“NCUA”).  MCU is the oldest credit union in New York State and one of the oldest and largest in the country, providing banking services to more than 500,000 members, and with more than $2.9 billion in member accounts, each of which is federally insured for at least $250,000 by the National Credit Union Share Insurance Fund, which is administered by the NCUA.  Membership in MCU is generally available to employees of New York City and its agencies, employees of the federal and New York state governments who work in New York City, and employees of hospitals, nursing homes, and similar facilities located within New York State.

At all relevant times, MCU was supposed to be overseen by a board of directors (the “Board”) and a supervisory committee (the “Supervisory Committee”), each of which was composed of volunteer members of MCU, who were not to be compensated.  According to New York banking law, the Supervisory Committee’s duties included supervision of the actions of MCU’s Board and officers.  MCU’s written conflict of interest policy, which was regularly distributed to Board members, Supervisory Committee members, and others, provided, among other things, that members of MCU’s “Board of Directors and Supervisory Committee may not do business with the Credit Union, either individually or as representative of any business entity.”

ASH

ASH is a New York State Supreme Court Justice in Kings County.  ASH has served as a judge in the New York State court system since at least approximately 2006, first as a Kings County Civil Court Judge, and, commencing in 2011, as a Kings County Supreme Court Justice.  In or about January 2016, ASH was appointed to be the presiding judge in the Kings County Supreme Court’s Commercial Division.

ASH served on MCU’s Board from in or about May 2008 until on or about August 15, 2016, when she resigned.  ASH also served as a trustee of MCU’s pension plan, a position from which she resigned on or about October 31, 2016.  From in or about May 2015 until her resignation from the Board, ASH served as the chair of the Board.

Guagliardo

GUAGLIARDO is a former officer with the New York City Police Department, who retired in or about 1989.  In or about 1993, GUAGLIARDO joined the Supervisory Committee of MCU, a volunteer position, and remained in that position until he was removed from that position by the New York State Department of Financial Services on or about May 24, 2018, except for a brief period of time when he served as a member of MCU’s Board in or about 2008.  While he was a Supervisory Committee member, GUAGLIARDO sought to and did use his position to oversee aspects of MCU’s security and fraud department, including serving in the role of vice president of MCU’s security and fraud department while that position was vacant.

Kam Wong

From on or about at least 2007 until on or about June 12, 2018, Kam Wong served as MCU’s chief executive officer (“CEO”) and president.  On or about May 8, 2018, Wong was charged and arrested by the United States Attorney’s Office for the Southern District of New York, and, on or about June 12, 2018, Wong was terminated by MCU.  On or about December 2, 2018, Wong pled guilty to a multimillion-dollar embezzlement from MCU, and acknowledged, in his written plea agreement, among other things, endeavoring to obstruct and impede and obstructing and impeding the administration of justice with respect to the criminal investigation into this matter, and agreeing with one or more others to do the same.

ASH’s Alleged Obstruction of Justice

From at least in or about 2012 through 2016, while serving as an MCU Board member and while Wong was CEO, ASH received annually tens of thousands of dollars in reimbursements and other benefits from MCU, including airfare, hotels, food and entertainment expenses for her and a guest to attend conferences domestically and abroad, as well as payment for phone and cable bills, and electronic devices.  Even after her resignation from the Board, Wong continued to provide or cause MCU to provide ASH with benefits, such as Apple devices. 

In or about January 2018, after Wong had been approached by federal law enforcement agents investigating potential financial misconduct by Wong involving MCU and in an attempt to protect Wong, ASH agreed to and did sign a false and misleading memorandum purporting to explain and justify millions of dollars in payments that Wong had received from MCU, which was then provided by Wong to law enforcement officers.

Subsequently, ASH agreed to and did continue to seek to influence and impede the federal investigation in multiple ways, including by (i) concealing and deleting relevant text messages and email messages and wiping her MCU-issued Apple iPhone in a further effort to destroy and impair the availability of evidence that had been sought by federal grand jury subpoenas, and (ii) making false and misleading statements to federal law enforcement officers in interviews conducted as part of a federal criminal investigation.

            GUAGLIARDO’s Alleged Embezzlement, Fraud, and Unlawful Provision of Controlled Substances to Wong

GUAGLIARDO engaged in a long-running scheme to defraud MCU, with the agreement and assistance of, among others, Wong.  Among other things, GUAGLIARDO defrauded and embezzled from MCU by causing it to direct more than $250,000 to a purported security company created and controlled by GUAGLIARDO, but operated in another’s name, which did little to no real work for MCU.  GUAGLIARDO also defrauded and embezzled from MCU by over-billing for more than $200,000 for purported web advertising services provided by a non-profit organization that GUAGLIARDO also controlled. 

In addition, during substantially the same period in which GUAGLIARDO was committing and concealing these offenses, GUAGLIARDO participated in a scheme to unlawfully distribute controlled substances to Wong, in the form of prescription drugs, some of which were obtained from GUAGLIARDO’s spouse, who worked as a doctor affiliated with a public hospital, and some of which were obtained from a doctor affiliated with the New York City Police Department.

ASH, 62, of Brooklyn, New York, is charged with one count of conspiracy to obstruct justice, which carries a maximum penalty of five years in prison; and two counts of obstruction of justice, each of which carries a maximum penalty of 20 years in prison.

GUAGLIARDO, 62, of Brooklyn, New York, is separately charged with one count of conspiracy to embezzle from a federal credit union, which carries a maximum penalty of five years in prison; one count of embezzlement, one count of conspiracy to defraud a financial institution, and one count of defrauding a financial institution, each of which carries a maximum penalty of 30 years in prison; and one count of conspiracy to distribute controlled substances, and one count of distribution of controlled substances, each of which carries a maximum penalty of 20 years in prison.  

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

U.S. Attorney Berman praised the outstanding work of the Special Agents of the United States Attorney’s Office.  Mr. Berman also thanked the New York County District Attorney’s Office, the New York State Department of Financial Services, and the New York City Police Department Internal Affairs Bureau for their assistance.

The charges contained in the Complaints 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 Complaints, and the description of the Complaints set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation.

Attorney General James On Decision To Block Public Charge Rule From Taking Effect

 New York Attorney General Letitia James released the following statement in response to the decision to grant a nationwide preliminary injunction and stop the Trump Administration’s Public Charge from taking effect. The rule, scheduled to take effect on October 15, 2019, would have had devastating impacts on New York and states across the country. Attorney General James said:

“The history of our nation is inextricably tied to our immigrant communities, and because of today’s decision, so too will be our future. Once again, the courts have thwarted the Trump Administration’s attempts to enact rules that violate both our laws and our values, sending a loud and clear message that they cannot rewrite our story to meet their agenda. This rule would have had devastating impacts on all New Yorkers – citizens and non-citizens alike – and today’s decision is a critical step in our efforts to uphold the rule of law. As long as our communities are under attack from this federal government, we will never stop fighting back.” 

In August 2019, New York Attorney General James filed a lawsuit against the Trump Administration’s Public Charge Rule, a rule that aimed to deny green cards and visas to immigrants that use or have used government assistance programs. In the lawsuit, joined by the States of Connecticut and Vermont and the City of New York and filed in the United States District for the Southern District of New York, the parties argued that such a rule would have short- and long-term impacts on public health and the economy. With the rule set to take effect on October 15, 2019, the coalition filed a motion for a preliminary injunction in September 2019.  

SAFE AND HEALTHY CITY: MAYOR DE BLASIO ORDERS 30 DAY REVIEW OF INTENSIVE MENTAL HEALTH INTERVENTION PROGRAMS

NYPD and DOHMH to lead review of City’s use of Mobile Treatment Teams, Kendra’s Law, and NYC Safe

 Mayor de Blasio announced today that the City will be conducting a 30 day review of how the City uses Kendra’s Law and other intensive mental health interventions, particularly mobile treatment teams, to make sure those in need receive treatment and stay connected with it. This effort will be led by DOHMH Commissioner Oxiris Barbot and NYPD Chief of Department Terence Monahan. Under the direction of DOHMH and NYPD, NYC Health + Hospitals, DHS, and Thrive will review clients who are potentially eligible for Assisted Outpatient Treatment through Kendra’s Law and make referrals to the Department of Health, triggering an immediate clinical review for the courts consideration. Agencies will also review this caseload to facilitate connections to other intensive mental health interventions including the city’s mobile treatment teams where appropriate.  

“When people with mental illness need help, we as a City should be doing everything we can to make sure they get it,” said Mayor de Blasio. “To keep our city safe and healthy, we are taking every measure necessary to protect New Yorkers and make sure that those struggling with mental illness receive the help that they need.” 

“A review of services is important to improve the system of care for people affected by mental illness,” said Health Commissioner Dr. Oxiris Barbot. “Bottom line is that services are key to better health outcomes faster. We will assess routes into treatment to maximize engaging those most in need.”

“This review will comprehensively assess the mental health care programs and services that provide support for some of the city’s most vulnerable residents,” said Police Commissioner James P. O’Neill. “This effort backs the everyday mission of our officers to effectively protect those we serve while also keeping one another safe.”

 Court-ordered Assisted Outpatient Treatment (AOT), through Kendra’s Law, is up 20% since the Mayor’s took office. Additionally, in 2016, the City increased investment in the Office of Assisted Outpatient Treatment at the Department of Health and Mental Hygiene by adding twenty additional staff to ensure people are engaged in AOT. Over the next 30 days, the City will review its use of AOT, or “Kendra’s Law. 

Lastly, the City has already pledged historic investments in mobile treatment teams to reach the narrow category of people who have serious mental health needs and pose a risk of violence to themselves or others. Such historic investments in mobile treatment teams include but are not limited to Assertive Community Treatment Teams (ACT) and Forensic Assertive Community Treatment Teams (FACT).  In 2016, the City launched Co-Response Teams (CRT) comprised of a mental health professional and police officers to help individuals in crisis. Additionally, the Health Department launched Intensive Mobile Treatment (IMT), an interdisciplinary team including peers that provide long term behavioral health treatment and supportive services. These teams are designed to support people living with a serious mental illness who are not traditionally engaged in care. In 2015, the de Blasio Administration created NYC Safe to provide a continuum of services, including mobile treatment teams, for a subset of people living with a serious mental illness who pose a risk to others.

“As one of the largest providers of behavioral health services in the City, NYC Health + Hospitals connects its patients to high-quality clinical care and to resources available in the community,” said Mitchell Katz, MD, President and CEO of NYC Health + Hospitals. “We want to be sensitive to our patients’ needs and customize care to address their unique challenges. We will work closely with the Health Department to ensure coordination around patient care and the services we provide.”

“Ensuring our most vulnerable neighbors get the help they need is our City’s number one priority,” said Social Services Commissioner Steven Banks. “Through collaborative, interagency initiatives and interventions like this, we’re committed to continually developing new approaches that better connect New Yorkers experiencing hardship, from housing crises to mental health challenges, to a holistic range of supports and services. As we all work together to close gaps in programs and strengthen our safety net, we are determined to keep doing better by those we serve, as well as those who may need our services, but may not be ready to accept assistance yet. When it comes to extending a hand, we refuse to give up.”

“The risk of serious mental illness leading to violent behavior is already low, but getting real, lasting mental healthcare to those in need makes it even lower,” said Susan Herman, Senior Advisor to the Mayor and Director of the Mayor’s Office of ThriveNYC. "The Mayor's Office of ThriveNYC will work across city government to help ensure everyone who needs mental health treatment is connected to it. A safe and healthy NYC demands no less."

South Bronx Unite - Help Stop the $8.7 Billion New Jail Plan!

On Thursday, October 17, NYC Council will vote on an $8.7 billion plan to build new jails - the city’s biggest planned expansion of jails despite a significant drop in incarceration rates. The South Bronx is united in its call for NO NEW JAILS - NOT IN THE SOUTH BRONX, NOT ANYWHERE - where more than 6,500 people have signed a petition against the building of a new jail in Mott Haven. ***** OUR VOICES NEED TO CONTINUE TO BE HEARD. SEND TWO EMAILS AND MAKE TWO CALLS TODAY.

#1 - Email City Councilwoman Diana Ayala to VOTE NO on Oct 17 (click for draft message)

#2 - Email Speaker Corey Johnson to VOTE NO on Oct 17 (click here for draft message)

Then CALL THEM. COUNCILWOMAN DIANA AYALA: 212-788-6960, 347-297-4922, 212-828-9800 SPEAKER COREY JOHNSON: 212-788-7210, 212-564-7757 TALKING POINTS: VOTE NO ON OCT. 17! While we support the plan to close Rikers Island for the inhumane activity which has occurred during its existence, we unequivocally reject the city's plan to build new jails, including in the South Bronx where more than 6,500 people have signed a petition to prevent a new jail from being built (see petition here). The city’s jail population has fallen from a high of 21,674 in 1991 to under 9,000 earlier this year through a combination of falling crime rates and criminal justice reforms, and we challenge the city to further reduce the number of people in jail through a combination of bail reform, decriminalization of minor offenses, and more restorative ways to deal with crime that would make the construction of a new facility unnecessary. We believe that Rikers Island can be safely and responsibly closed without constructing new jails as shown in the plan laid out by No New Jails NYC If the city builds new jails, the city is going to fill them up. With more than 2.3 million people imprisoned across the US, mass incarceration is the greatest moral and racial injustice of our time.  We need bold investments in people, not prisons. The answer to our communities’ problems is not to expand the criminal justice footprint and the carceral state, but rather to support grassroots community efforts for self-care, affordability, and inclusion like the Diego Beekman Neighborhood Plan and restorative justice methods used by Community Connections for Youth and Friends of Brook Park to provide alternatives to incarceration for youth, men and women - just a few examples from the South Bronx. See nonewjails.nyc and South Bronx Petition Against New Jails for more talking points.

Senator Rivera and Assembly member Paulin Urge Passage of Bill to Curb Internet Sales of E-Cigarettes

 In response to an outbreak of lung injuries among otherwise healthy people who use electronic cigarettes or vaping products that has prompted investigations and public health warnings by the Food and Drug Administration (FDA), the Centers for Disease Control and Prevention (CDC), Governor Andrew Cuomo, and state and local health departments, Assembly member Amy Paulin (D-Scarsdale) and State Senator Gustavo Rivera (D-Bronx) urged passage of their bill to hold electronic cigarettes to the same standards of distribution and transportation that currently apply to tobacco products.

State Senator Rivera is Chair of the Senate Health Committee while Assembly member Paulin sits on the Assembly Health Committee.

"The alarming public health incidents involving vaping confirm the worst nightmares of parents who were already alarmed by the increased use of Juul and other vape pens by teenagers," said Assembly member Amy Paulin. "I have heard from student activists in my district who tell me that it is far easier to obtain electronic cigarettes and other vaping products from Internet retailers than to go to a physical store, since websites make only a rudimentary attempt to verify age. It simply makes no sense that you're prohibited from buying addictive tobacco cigarettes online, but you can buy addictive electronic cigarettes online."

 

"E-cigarettes and vaping products are causing New Yorkers to develop serious health issues, and our youth are particularly vulnerable. We have a responsibility to safeguard New Yorkers' health by regulating these products as what they are - public health hazards that are just as damaging as traditional tobacco products, " said State Senator Gustavo Rivera. "The Senate's upcoming hearing to investigate the safety and potential harm of such products will consider important policies such as this."    

 

Public health advocates, parents, educators, and student activists have expressed alarm for many years at the rise in popularity of e-cigarettes and vape pens among teenagers. The products usually contain the addictive substance nicotine. The intended use is to help those addicted to tobacco products to cease smoking by managing their cravings for nicotine. However, the very use of nicotine makes electronic cigarettes addictive as well.

 

In addition, electronic cigarettes routinely contain flavoring including diacetyl, a chemical linked to a serious lung disease, other cancer-causing chemicals, and heavy metals including nickel, tin, and lead. What could be a comparable health risk for long-term smokers is a clear danger for teenagers and others who never started smoking in the first place but could become addicted to vaping. The FDA has reported that within the past year, use of e-cigarettes has risen by 78% among high school students and 48% for middle school students.

 

The issue has taken on new urgency with an outbreak of 1,299 lung injury cases reported by the CDC through the end of September in which 100% of those persons injured indicated that they regularly vaped. So far, 80% of these vape-related lung injury cases have been found in people 35 years and younger. Tragically, 26 people nationwide - including a 17 year-old in the Bronx - have died from a vaping-related sickness.

This legislation (A7714 / S3905) would ensure that electronic cigarettes are included, along with cigarettes and other tobacco products, in several important laws and regulations. In particular, it would add electronic cigarettes to the section of law that bans the shipment of cigarettes by businesses to individuals, including by Internet retailers.

"This bill will not impose an appreciable burden on individuals using e-cigarettes to break their addiction to tobacco, since it is the same set of regulations they're already accustomed to following for tobacco products," said Assembly member Paulin. "But it will help close the loopholes that make e-cigarettes, vaping products, and nicotine easier to obtain than tobacco for those under age 21." 

"In the wake of a clear public health emergency, New York State has already mobilized to protect our citizens, particularly our young people, and I am hopeful these efforts will educate everyone on the health risks associated with vaping," continued Assembly member Paulin. "We also need to employ the exact same policies and regulations that have helped us dramatically reduce the instances of teenage smoking. That's what our bill does."

YOUR GUIDE TO THE NEW YORK CITY CHARTER REVISION COMMISSION 2019

The following is a copy of the flyer printed by the Charter Revision Commission 2019. 

There is an editorial comment at the bottom.

WHAT IS THE CHARTER?

The New York City Charter is the City's constitution. It creates a framework for our government. The Charter controls how the City spends our tax dollars, how decisions are made about changes to our neighborhoods and the power of our elected officials. Nearly 30 years ago, a Charter Revision Commission overhauled the City's government. We've been taking a fresh look. This fall, New Yorkers will have a chance to amend our Charter by voting on ballot proposals covering a wide variety of issues, from elections to police accountability.

On November 5th, you can vote on that.

WHAT ARE THE PROPOSALS ON THE BALLOT?

1 - Elections:

- Use ranked choice voting in primary and special elections for City elected officials such as the Mayor and City Council members.

- Extend the time from 45 to 80 days between when an elected official leaves office during their term and a special election is held.

- Amend the timeline for redistricting to ensure that district lines are drawn in a timely manner for future primary City Council elections.

2 - Civilian Complaint Review Board (CCRB):

- Add two members to the CCRB board, one appointed by the Public Advocate and one jointly appointed by the Mayor and the Speaker of the City Council (who would also serve as Chair).

- Require the Police Commissioner to provide an explanation to the CCRB when they deviate from the CCRB’s disciplinary recommendations.

- Authorize subpoena power for the CCRB Executive Director.

- Allow the CCRB to investigate potentially false official statements made by an officer under investigation and to recommend discipline, if appropriate.

- Guarantee the CCRB budget.

3 - Ethics and Governance:

- Prohibit elected officials and senior appointed officials from lobbying the City government for two years after leaving city service.

- Replace two members of the Conflicts of Interest Board currently appointed by the Mayor with one appointed by the Comptroller and one by the Public Advocate.

- Prohibit COIB board members from participating in campaigns for local elected offices, and reduce the maximum amount of money that they can contribute.

- Require the Citywide Minority/Women-owned Business Enterprises (M/WBE) Director report directly to the Mayor.

- Require advice and consent—a system of checks and balances—by the City Council for the Mayor’s appointment of the Corporation Counsel.

4 - City Budget:

- Allow the City to use a “rainy day fund” to save money for use in future years (state law permitting).

- Guarantee the budgets for the Public Advocate and Borough Presidents.

- Require the Mayor to submit the revenue estimate to the City Council by May 25 (instead of June 5).

- Require the Mayor to submit budget modifications to the City Council within 30 days of updating the city’s financial plan. 

5 - Land Use (ULURP):

- Give affected Community Boards, Borough Presidents, and Borough Boards advance notice of ULURP applications by requiring the Department of City Planning to provide a detailed project summary 30 days before the application is certified for public review.

Give Community Boards additional time during the summer to review ULURP applications.

Find out more: charter2019.nyc/finalreport

EDITOR'S OPINION:

It is the opinion of this editor that the nineteen items squeezed into five ballot questions should all be rejected by the voters. 

Ranked Choice Voting will not give one candidate a majority of the vote, and can instead have the second, third, or even forth place finisher be declared the winner.  

18 Members Of International Fraud And Money Laundering Conspiracy Charged In Manhattan Federal Court

 Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Troy Miller, Director, Field Operations, New York, U.S. Customs and Border Protection (“CBP”), and James P. O’Neill, the Police Commissioner for the City of New York (“NYPD”), today announced the unsealing of an indictment and two superseding indictments charging 18 defendants with participating in an international conspiracy to commit a variety of offenses, including access device fraud, wire fraud, bank fraud, and aggravated identity theft.

Defendants NIKOLAOS LIMBERATOS, a/k/a “Nicu Limberto,” CRISTIAN COSTEA, a/k/a “Momo,” THEOFRASTOS LYMBERATOS, ANDREW ELIOPOULOS, PETER SAMOLIS, KELLY KARKI LAM, and IULIANA MIHAILESCU were arrested this morning and will be presented in federal court in Manhattan before U.S. Magistrate Judge Ona T. Wang later today.  Defendants MIRCEA CONSTANTINESCU, a/k/a “Sobo,”ALIN HANES CALUGARU, IONELA CONSTANTINESCU, a/k/a “Pitica,” and GEORGE SERBAN were also arrested this morning and will be presented in federal court in Miami before U.S. Magistrate Judge Lauren F. Louis later today.  Defendant FLORIAN CLAUDIU MARTIN, a/k/a “Florin Claudiu,” a/k/a “Johnny Ion,” a/k/a “Jane Hotul,” a/k/a “Petru Andrioaie,” a/k/a “Petru Andrioane,” was arrested this morning in Cabo San Lucas, Mexico, and defendant RAUL IONUT VIDRASAN, a/k/a “Michu,” a/k/a “The Boy,” was arrested this morning in Perugia, Italy.  Defendants VALENTIN PETRESCU, a/k/a “Gico Cosmin Giscan,” a/k/a “Zoltan Pruma,” DRAGOS DIACONU, MADLIN ALEXANDRU ANCA, a/k/a “Mateo Fernandez Alejandro,” and CRISTIAN ULMANU, a/k/a “Boris Moravec,” are currently in custody on other charges and will be transferred to federal custody in New York and presented at a later date.  The case has been assigned to U.S. District Judge Laura Taylor Swain.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged, the defendants participated in a wide-ranging international ATM skimming and money laundering operation, using their technological know-how to steal tens of millions of dollars from financial institutions and individual victims.  Thanks to the FBI, CBP, and the NYPD, the defendants are in custody and facing felony charges for their alleged offenses.”

FBI Assistant Director William F. Sweeney Jr. said:  “An extremely frustrating thing to experience, you grab cash from an ATM but then find out your bank information was stolen and your account drained.  The scheme detailed here cost victims money, time, and effort to get their finances returned and their identities restored, which can be an infuriating long process.  The FBI New York Cyber Crimes Task Force and our law enforcement partners have worked exhaustively to find the members of this criminal organization, and the arrests and charges are a testament to their hard work stopping these thieves from creating more havoc for anyone trying to access their hard-earned money.”

CBP Director of New York Field Operations Troy Miller said:  “This case serves as a great example of collaborative law enforcement efforts to combat international debit card schemes.  U.S. Customs and Border Protection in coordination with our partners at FBI and the NYPD will continue to work tirelessly to ensure that criminals associated with transnational criminal organizations are brought to justice.”

NYPD Commissioner James P. O’Neill said:  “The NYPD and its law enforcement partners are committed to dismantling criminal enterprises that leverage attacks against our cyber infrastructure.  We comprehensively confront everything from highly-sophisticated transnational groups, like this one, to those criminals who exploit our citizens with cyber-enabled scams.  I want to thank our federal partners and NYPD detectives for their coordination and tireless efforts in bringing this important case.”

According to the allegations in the Indictment and Superseding Indictments[1] unsealed today in Manhattan federal court:

From 2014 until September 2019, FLORIAN CLAUDIU MARTIN, a/k/a “Florin Claudiu,” a/k/a “Johnny Ion,” a/k/a “Jane Hotul,” a/k/a “Petru Andrioaie,” a/k/a “Petru Andrioane,” ALEX DONATI, RAUL IONUT VIDRASAN, a/k/a “Michu,” a/k/a “The Boy,” MIRCEA CONSTANTINESCU, a/k/a “Sobo,” NIKOLAOS LIMBERATOS, a/k/a “Nicu Limberto,” CRISTIAN COSTEA, a/k/a “Momo,” ALIN HANES CALUGARU, IONELA CONSTANTINESCU, a/k/a “Pitica,” THEOFRASTOS LYMBERATOS, ANDREW ELIOPOULOS, VALENTIN PETRESCU, a/k/a “Gico Cosmin Giscan,” a/k/a “Zoltan Pruma,” PETER SAMOLIS, KELLY KARKI LAM, GEORGE SERBAN, DRAGOS DIACONU, MADLIN ALEXANDRU ANCA, a/k/a “Mateo Fernandez Alejandro,” CRISTIAN ULMANU, a/k/a “Boris Moravec,” and IULIANA MIHAILESCU participated in a transnational organization that engaged in what is colloquially referred to as “ATM skimming” (the “Skimming Organization”).  The Skimming Organization unlawfully obtained victim accountholders’ debit card account information by using advanced technological devices to surreptitiously record the debit card numbers and personal identification numbers at automatic teller machines (“ATMs”), and then manufacturing counterfeit and fraudulent debit cards that bore the victim accountholders’ account information.  The Skimming Organization’s members then used those cards to fraudulently withdraw cash from victims’ bank accounts.

Certain of the defendants directed, or worked in, teams that the Skimming Organization deployed across the United States in order to carry out ATM skimming attacks, casing ideal locations for the attacks, installing skimming devices on ATMs, removing those devices, and cashing out large numbers of fraudulent debit cards manufactured as a result of the skimming operations.  Other defendants assisted in receiving packages containing skimming devices or component parts that were shipped from other parts of the U.S. and from abroad.  Other defendants assisted in engineering the skimming devices that the Skimming Organization used.  Still other defendants laundered the proceeds of the skimming attacks through bank accounts, properties, businesses, and the transportation of bulk cash.

The defendants carried out hundreds of ATM skimming operations across the U.S., including in New York and at least 17 other states.  The scheme defrauded financial institutions and individual victims of more than $20 million.

Each defendant is charged with one count of conspiracy to commit access device fraud, which carries a maximum sentence of 7 ½ years in prison; one count of conspiracy to commit wire and bank fraud, which carries a maximum sentence of 30 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison, consecutive to any other sentence imposed.  FLORIAN CLAUDIU MARTIN, a/k/a “Florin Claudiu,” a/k/a “Johnny Ion,” a/k/a “Jane Hotul,” a/k/a “Petru Andrioaie,” a/k/a “Petru Andrioane,” MIRCEA CONSTANTINESCU, a/k/a “Sobo,” NIKOLAOS LIMBERATOS, a/k/a “Nicu Limberto,” CRISTIAN COSTEA, a/k/a “Momo,” ALIN HANES CALUGARU, and KELLY KARKI LAM are also charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.  FLORIAN CLAUDIU MARTIN, a/k/a “Florin Claudiu,” a/k/a “Johnny Ion,” a/k/a “Jane Hotul,” a/k/a “Petru Andrioaie,” a/k/a “Petru Andrioane” is also charged with two counts of bank fraud, each of which carry a maximum sentence of 30 years in prison.  ALEX DONATI is also charged with one count of access device fraud, which carries a maximum sentence of 10 years in prison. 

The statutory maximum and minimum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.  A chart with the defendants’ ages, places of residence, and nationalities is below.

Mr. Berman praised the outstanding investigative work of the FBI, CBP, and the NYPD, and thanked the United States Postal Inspection Service, INTERPOL-Rome, INTERPOL-Mexico City, and Mexico’s Agencia de Investigación Criminal and Instituto Nacional de Migración for their assistance.  

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

Defendant	Age	Place of Residence	Nationality
FLORIAN CLAUDIU MARTIN, a/k/a “Florin Claudiu,” a/k/a “Johnny Ion,” a/k/a “Jane Hotul,” a/k/a “Petru Andrioaie,” a/k/a “Petru Andrioane,”	44	Cabo San Lucas, Mexico	Romania
ALEX DONATI	51	Cabo San Lucas, Mexico	Romania
RAUL IONUT VIDRASAN, a/k/a “Michu,” a/k/a “The Boy”	27	Perugia, Italy	Romania
MIRCEA CONSTANTINESCU, a/k/a “Sobo”	44	Cooper City, Florida	Romania
NIKOLAOS LIMBERATOS, a/k/a “Nicu Limberto”	53	Deer Park, New York	Greece
CRISTIAN COSTEA, a/k/a “Momo”	44	Queens, New York	Romania
ALIN HANES CALUGARU	39	Sunny Isles, Florida	Romania
IONELA CONSTANTINESCU, a/k/a “Pitica”	35	Cooper City, Florida	Romania
THEOFRASTOS LYMBERATOS	36	Queens, New York	United States
ANDREW ELIOPOULOS	34	Queens, New York	United States
VALENTIN PETRESCU, a/k/a “Gico Cosmin Giscan,” a/k/a “Zoltan Pruma”	32	Russellville, Arkansas	Romania
PETER SAMOLIS	30	Queens, New York	United States
KELLY KARKI LAM	42	New York, New York	United States
GEORGE SERBAN	32	Miami, Florida	Romania
DRAGOS DIACONU	41	Nashville, Tennessee	Romania
MADLIN ALEXANDRU ANCA, a/k/a “Mateo Fernandez Alejandro”	22	Nashville, Tennessee	Romania
CRISTIAN ULMANU, a/k/a “Boris Moravec”	54	Russellville, Arkansas	Romania
IULIANA MIHAILESCU	42	Queens, New York	Romania

 

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