eller Of Forged Basquiats And Harings Arrested On Fraud Charges

Angel Pereda Attempted to Sell a Series of Fake Artworks Attributed to Jean- Michel Basquiat and Keith Haring, Among Others, For Millions of Dollars 

 Audrey Strauss, United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of ANGEL PEREDA for his role in a scheme to sell forged artworks purportedly created by renowned artists, including Jean-Michel Basquiat and Keith Haring.  PEREDA was arrested in New York on July 9, 2021.

Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Angel Pereda attempted to sell forgeries of artworks by Jean-Michel Basquiat and Keith Haring, among others, as genuine.  If real, such works would be worth millions.  The alleged fakes have little or no value, except potentially as evidence of the alleged crime.  Angel Pereda now faces the prospect of a jury’s appraisal of his alleged conduct.”

FBI Assistant Director William F. Sweeney Jr. said: "As we allege, Mr. Pereda conned art buyers, hoping his victims wouldn’t see the difference between real art and a forgery. He used their trust to his advantage by passing off worthless pieces as priceless works of art. Hopefully, this case provides a lesson to any others hoping to engage in similar behavior – the FBI's Art Crime Team has the resources to distinguish the real from the fake, and its members will ensure you face the consequences of your actions."

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

In or about 2020 and 2021, ANGEL PEREDA engaged in a scheme to sell paintings and other artwork that he marketed for sale as having been painted or created by world-famous artists, including Jean-Michel Basquiat and Keith Haring, among others.  By knowingly and falsely claiming that these fake works were painted by these famous artists, PEREDA tried to trick purchasers into paying millions of dollars for the fake works, which, as the defendant well knew, were essentially worthless.

To deceive his victims, PEREDA falsified the provenance – that is, the ownership history – of the forged artworks.  On one occasion, PEREDA attempted to facilitate the sale of a painting purportedly by Basquiat, which PEREDA referred to as “Glory Boys Kingdom.”  When told by another individual that a particular false provenance had been detected as fraudulent, PEREDA created and sent to an individual in New York new fraudulent provenances, so that the painting could be sold for millions of dollars.  A photograph of “Glory Boys Kingdom” is below:

PEREDA is also connected to at least three other works of art purportedly by Basquiat and Haring, which have been determined to be fraudulent.  Photographs of the pieces are below:

If you believe you have additional information regarding ANGEL PEREDA, also known as “Angel Luis Pereda Eguiluz,” please contact the FBI at 1-800-CALL FBI or NYArtCrime@fbi.gov, and reference this case.

PEREDA, 49, of Mexico, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.

The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Ms. Strauss praised the outstanding efforts of the FBI Art Crime Team in the investigation, which she noted is ongoing.

The charge and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

175 Days and Counting

 

I want to make sure all our third grade public school children are reading at grade level or above. Next year when they go into fourth grade they take the statewide English and Math standardized tests. I want to make sure the students do well on this test. I want to be remembered as the education Mayor, not the Mayor who built homeless shelters and jails in your communities. 

I have less than six months to go as your mayor, and I will try to do the least amount of work, leaving it to your next Mayor, Eric Adams. What I will do before I leave office as has been done by every outgoing mayor, is to appoint people to positions like Judges, Marshalls, and Sheriff positions.

Defendant Pleads Guilty To 2011 Murder

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, announced that MICHAEL CASTILLO, a/k/a “Squirrel,” pled guilty today in Manhattan federal court in connection with the March 10, 2011, murder of Hector Arias in the Bronx, New York.  U.S. District Judge John G. Koeltl accepted the defendant’s guilty plea.  

U.S. Attorney Audrey Strauss said: “Today, Michael Castillo admitted that he shot and killed Hector Arias in 2011.  This guilty plea shows that law enforcement will relentlessly seek justice for murder victims and their loved ones, regardless of the passage of time.”

According to the allegations in the Indictment and other filings and statements made in court:

CASTILLO was a member of a conspiracy to distribute marijuana centered near 193rd Street and Broadway in New York, New York.  CASTILLO was hired by the leader of the conspiracy, David Espinal, a/k/a “D-Block,” to kill Hector Arias, the leader of a rival marijuana business operating in the same area.  On March 10, 2011, CASTILLO shot and killed Arias outside Arias’s home at 712 East Gun Hill Road in the Bronx, New York.  The murder plot arose out of the rivalry between the two marijuana businesses. 

CASTILLO, 38, pled guilty to one count of murder through the use of a firearm, in violation of 18 U.S.C. § 924(j), which carries a maximum penalty of life in prison and a mandatory minimum penalty of five years in prison.  The statutory maximum and minimum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.

CASTILLO is scheduled to be sentenced before Judge Koeltl on October 15, 2021, at 10:00 a.m.

On or about December 8, 2020, CASTILLO’s codefendant, Espinal, pled guilty to conspiring to kill Arias, among other offenses.  During his guilty plea, Espinal admitted to hiring a hitman to kill Arias.    

Ms. Strauss praised the outstanding investigative work of the Federal Bureau of Investigation and its Westchester County Safe Streets Task Force in this case. 

Attorney General James Takes 196 Guns Off the Streets at Community Gun Buyback in Western New York

 

AG James Has Taken More Than 1,600 Firearms Out of Communities Since 2019

 New York Attorney General Letitia James today announced that 196 firearms were turned in to law enforcement at a gun buyback event hosted by her office and the Niagara Falls Police Department. The Office of the Attorney General (OAG) accepts — with no questions asked — working and non-working, unloaded firearms in exchange for compensation on site. To date, Attorney General James has taken more than 1,600 firearms out of communities through gun buyback events and other efforts since taking office in 2019.

“Gun violence is a public health crisis that is endangering communities across the state,” said Attorney General James. “From going after the violent drug rings responsible for this violence, to hosting these gun buybacks statewide, we are doing everything in our power to get guns off our streets and out of dangerous hands. We thank our partners in law enforcement for their invaluable support in this effort and shared commitment to ensuring all New Yorkers are safe.”

Today’s community gun buyback resulted in 196 guns being collected, including 92 handguns, 80 long guns, four assault rifles, and 20 non-working or antique guns. Since 2013, OAG has hosted gun buyback events throughout New York state and has successfully collected nearly 3,600 firearms.

In exchange for the firearms, OAG also offered monetary compensation, in the form of prepaid gift cards, and Apple iPads when an unloaded gun was received and secured by an officer on-site.

Gun violence is a public health crisis that is plaguing communities throughout New York, and today’s action is the latest action that Attorney General James has taken to combat this crisis and protect New Yorkers from harm. This year alone, Attorney General James has held eight gun buybacks across the state, and within the past two weeks, she has secured 24 guns, including 10 ghost guns, off the streets in takedowns of violent groups terrorizing New York. To date, Attorney General James has taken a total of more than 1,600 guns out of communities since 2019.

Army Reservist Sentenced To 40 Months In Prison For Participating In Money Laundering Scheme

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, announced that EMEKA NNAWUBA, a/k/a “Benjamin Alabie,” who is a member of the United States Army Reserves, was sentenced yesterday to 40 months in prison for participating in a scheme to launder over $1 million in proceeds of romance fraud and business email compromise schemes perpetrated against dozens of victims.  NNAWUBA previously pled guilty before United States District Judge Katherine Polk Failla, who also imposed yesterday’s sentence. 

U.S. Attorney Audrey Strauss said:  “Emeka Nnawuba laundered money for a scheme that trolled dating websites in order to steal money from the accounts of unsuspecting women.  He will now spend time in prison and be compelled to make restitution to the victims of the scheme.” 

According to the allegations in the Superseding Indictment, court documents, and statements made in court:

From at least 2016 until 2018, NNAWUBA participated in a scheme to launder the proceeds of frauds perpetrated against dozens of victims.  Among other things, NNAWUBA used false identities and false passports to open bank accounts, received or attempted to receive more than $2 million in fraud proceeds, withdrew tens of thousands of dollars of fraud proceeds in cash, and transferred more than $1 million of fraud proceeds to bank accounts controlled by co-conspirators in an effort to conceal the source of funds. 

The funds laundered by NNAWUBA were procured principally by (a) romance scams, in which members of the scheme trolled dating websites to find unsuspecting women and stole their money on false pretenses, and (b) business compromise scams, in which members of the scheme impersonated individuals, professionals, or businesses in the course of otherwise ordinary financial transactions, and then fraudulently induced the counterparties to those transactions to transfer funds to bank accounts controlled and operated by NNAWUBA or other members of the scheme.

NNAWUBA, 31, of Fayetteville, Arkansas, pled guilty to and was sentenced on one count of participating in a conspiracy to commit money laundering.  In addition to the prison term, NNAWUBA was sentenced to three years of supervised release and was ordered to forfeit $2,096,248.39 and pay $1,362,528.46 in restitution.

Ms. Strauss praised the outstanding investigative work of the U.S. Secret Service, and thanked Homeland Security Investigations for its assistance. 

Governor Cuomo Updates New Yorkers on State's Progress Combating COVID-19

 

Statewide 7-Day Average Positivity is 0.79%

41,223 Vaccine Doses Administered Over Last 24 Hours

342 Patient Hospitalizations Statewide

3 COVID-19 Deaths Statewide Yesterday 

 Governor Andrew M. Cuomo today updated New Yorkers on the state's progress combating COVID-19.

"New Yorkers have fought the COVID-19 pandemic with tremendous discipline and fortitude, but it's absolutely critical to remember that vaccination is the way we beat this beast for good," Governor Cuomo said. "I urge New Yorkers who haven't taken their shot to do so right away—the faster we vaccinate the population, the faster COVID becomes a thing of the past." 

Today's data is summarized briefly below:

• Test Results Reported - 80,311
• Total Positive - 661
• Percent Positive - 0.82%
• 7-Day Average Percent Positive - 0.79%
• Patient Hospitalization - 342 (-7)
• Patients Newly Admitted - 50
• Patients in ICU - 73 (0)
• Patients in ICU with Intubation - 37 (0)
• Total Discharges - 185,351 (+58)
• Deaths - 3
• Total Deaths - 43,009
• Total vaccine doses administered - 21,524,919
• Total vaccine doses administered over past 24 hours - 41,223
• Total vaccine doses administered over past 7 days - 237,218
• Percent of New Yorkers ages 18 and older with at least one vaccine dose - 70.3%
• Percent of New Yorkers ages 18 and older with completed vaccine series - 65.0%
• Percent of New Yorkers ages 18 and older with at least one vaccine dose (CDC) - 73.0%
• Percent of New Yorkers ages 18 and older with completed vaccine series (CDC) - 66.5%
• Percent of all New Yorkers with at least one vaccine dose - 58.6%
• Percent of all New Yorkers with completed vaccine series - 53.8%
• Percent of all New Yorkers with at least one vaccine dose (CDC) - 60.8%
• Percent of all New Yorkers with completed vaccine series (CDC) - 55.1% 

Michael Avenatti Sentenced To Over Two Years In Prison For Attempting To Extort Nike And For Defrauding His Client

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, announced that MICHAEL AVENATTI was sentenced today in Manhattan federal court by United States District Judge Paul G. Gardephe to 30 months in prison for attempting to extort NIKE, Inc., and for defrauding a client.  AVENATTI was previously found guilty on February 14, 2020, following a three-week jury trial.

Manhattan U.S. Attorney Audrey Strauss said:  “Michael Avenatti used illegal and extortionate threats and betrayed one of his clients for the purpose of seeking to obtain millions of dollars for himself.  Not only did Avenatti attempt to weaponize his law license and celebrity to seek to extort payments for himself, he also defrauded his own client.  Avenatti will now serve substantial time in prison for his criminal conduct.”

According to the Complaint, Superseding Indictment, court documents, and evidence presented at trial:

In a scheme that unfolded in less than a week, AVENATTI used threats of economic and reputational harm to seek to extort NIKE, Inc. (“Nike”), while defrauding his client (“Client-1”), by promising to settle potential claims by Client-1 against Nike if Nike agreed to make extortionate payments to AVENATTI.  AVENATTI threatened to hold a press conference on the eve of Nike’s quarterly earnings call and the start of the annual National Collegiate Athletic Association (“NCAA”) basketball tournament at which he would announce allegations of misconduct by employees of Nike.  However, AVENATTI stated that he would refrain from holding the press conference and harming Nike only if Nike made a payment of $1.5 million to Client-1, who was in possession of information potentially damaging to Nike, and further agreed to “retain” AVENATTI and another individual to conduct a supposed “internal investigation” – an investigation that neither Nike nor Client-1 requested – for which AVENATTI demanded to be paid, at a minimum, between $15 million and $25 million.  Alternatively, in lieu of such a retainer, AVENATTI demanded a total payment of $22.5 million from Nike to resolve any claims Client-1 might have and to buy AVENATTI’s silence. 

AVENATTI never told Client-1, among other things, that AVENATTI planned to and did threaten Nike that, unless Nike paid AVENATTI, he would hold the press conference, or that AVENATTI planned to and did seek money for himself separate from, and to the financial detriment of, Client-1.

In addition to the prison sentence, AVENATTI, 50, of Venice Beach, California, was sentenced to three years of supervised release. The Court deferred a determination as to restitution for a later date. 

Ms. Strauss praised the work of the FBI and the Special Agents of the United States Attorney’s Office for the Southern District of New York.

Attorney General James Recovers $590,000 for Airline Workers Subjected to Minimum Wage Violations

 

Eulen America Agrees to Repay Employees Who Were Illegally Forced to Pay Laundry Costs for Required Uniforms Out of Pocket 

 New York Attorney General Letitia James announced an agreement with airline service company Eulen America (Eulen) for failing to reimburse employees more than half a million dollars for the laundering costs of their required uniforms that was unlawfully deducted from paychecks. Under the agreement, Eulen — which provides passenger services at JFK Airport as a subcontractor to American Airlines — will deliver $590,000 to approximately 1,500 workers who were forced to pay for laundry costs out of their minimum wage paychecks. New York Labor Law requires employers to reimburse minimum wage workers who are required to wear uniforms for laundering costs at a fixed rate per week. Eulen’s failure to follow the law led to consistent minimum wage violations from 2014 to 2020.  

“The dedicated and hardworking workers at airports across the tri-state area deserve to be compensated fairly for their labor and reimbursed for what the law clearly lays out,” said Attorney General James. “For nearly six years, Eulen failed its workers by illegally and consistently refusing to reimburse them for uniform laundering, forcing workers to pay laundry costs out of their minimum wage paychecks. But today, we’re delivering nearly $600,000 in stolen wages back into the pockets of these workers, especially crucial as New Yorkers continue to suffer the economic effects of COVID-19. My office is fully committed to ensuring all workers in the state are justly compensated for their labor, and we stand ready to hold accountable those who commit minimum wage violations in New York.”

Attorney General James initiated her investigation into Eulen in November of 2019. The investigation revealed that between February 21, 2014 and May 11, 2020, Eulen failed to reimburse its workers for their uniform maintenance/laundry, resulting in illegal deductions of these costs from employees' paychecks. The law requires companies to pay for laundry costs as part of the minimum wage and any legally-required overtime rate for all hours worked over 40 in a workweek. On top of the unpaid laundry reimbursements, Eulen was found to have failed to pay the minimum wage established by the Port Authority during the week of September 14, 2015.  

Based on these failures, Attorney General James concluded that Eulen engaged in persistent and repeated violations of New York state labor laws. Eulen has agreed to adhere to all federal, state, and local labor laws going forward and may face legal action if they fail to comply. The $590,000 in monetary restitution will be distributed to workers who should have been reimbursed for laundering their uniforms. Along with the monetary restitution, Eulen has also agreed to additional terms to ensure pay equity moving forward, including: 

• Compliance with all labor laws;  
• The posting of notices with information on employee rights, wage and hour laws, and the right to not fear retaliation for speaking out about labor issues; 
• Compliance with all recordkeeping requirements laid out in New York Labor Laws; 
• The maintenance of all employment documents, documents related to employment practices, and records on employee complaints for six years; and 
• The implementation of an independent third-party administrator to identify and contact eligible workers and prepare and distribute payments, as well as to provide the Office of the Attorney General with a written plan for this disbursement process.