U.S. Attorney Announces Charges Against 11 Members Of Money Laundering And Bank Fraud Ring

 

Over 50 Victims Sent More Than $9 Million to Defendants as a Result of Online Fraud Schemes

 Damian Williams, the United States Attorney for the Southern District of New York, and Patrick J. Freaney, the Special Agent-in-Charge of the New York Field Office of the United States Secret Service (“Secret Service”), announced today the unsealing of an Indictment charging 11 defendants with conspiracy to commit money laundering, conspiracy to commit bank fraud, and aggravated identity theft, in connection with their involvement in laundering millions of dollars in proceeds derived from business email compromises and romance fraud schemes.  Nine defendants were arrested today in the District of New Jersey and the Eastern District of New York, and will be presented this afternoon before United States Magistrate Judge Sarah Netburn in the Southern District of New York.  One defendant was arrested in the Southern District of Texas, and will be presented today in that district’s federal court.  One defendant remains at large.

U.S. Attorney Damian Williams said: “As alleged, the defendants were part of a criminal enterprise that not only defrauded businesses by assuming the online identities of legitimate counterparties, but also preyed on vulnerable elderly people, deceiving victims into sending money in phony romance scams.  Thanks to the Secret Service, the defendants are now facing federal felony charges.”

Secret Service Special Agent-in-Charge Patrick J. Freaney said: “As the continued threat posed by cyber enabled fraud remains ever present, the U.S. Secret Service remains steadfast in its pursuit of those who threaten our collective financial security. This case is no exception, as the defendants allegedly utilized a myriad of fraud schemes, to include romance scams and business email compromises, to defraud over 50 victims in excess of $9 million. Due to the efforts of the Secret Service and our partners at the New York City Police Department Financial Crimes Task Force, this organized group will no longer be able to operate its alleged scheme to defraud and will answer the charges brought against them in the Southern District of New York.” 

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

ADEDAYO JOHN, OLUWADAMILOLA AKINPELU, KAZEEM RAHEEM, MORAKINYO GBEYIDE, WARRIS ADENUGA, a/k/a “Blue,” SMART AGUNBIADE, LATEEF GOLOBA, SAMSONDEEN GOLOBA, OLAWALE OLANIYAN, OLAWOYIN PETER OLAREWAJU, and EMMANUEL ORONSAYE-AJAYI (collectively, the “Defendants”) participated in one or both of a money laundering conspiracy and bank fraud conspiracy, which received funds stolen from victims.

Victims were typically defrauded in one of two ways.  In some instances, business email compromise fraud schemes were used to trick businesses into transferring funds to bank accounts the victims believed were under the control of legitimate recipients of the funds as part of normal business operations, when in fact the bank accounts were under the control of the Defendants or their co-conspirators.  In other instances, romance scams were used, primarily through electronic messages sent via email, text messaging, social media, or online dating websites, to deceive victims – many of whom were vulnerable older men and women – into believing they were in romantic relationships with fake identities, and then using false pretenses to cause the victims to transfer funds to bank accounts controlled by the Defendants or their co-conspirators.

As a result of these frauds, law enforcement officers have identified more than 50 victims who have transferred more than $9 million to bank accounts under the control of the Defendants.

Ten defendants – ADEDAYO JOHN, 32, OLUWADAMILOLA AKINPELU, 26, KAZEEM RAHEEM, 29, MORAKINYO GBEYIDE, 39, WARRIS ADENUGA, a/k/a “Blue,” 26, LATEEF GOLOBA, 27, SAMSONDEEN GOLOBA, 29, OLAWALE OLANIYAN, 41, OLAWOYIN PETER OLAREWAJU, 34, and EMMANUEL ORONSAYE-AJAYI, 30 – are each charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.  Nine defendants – ADEDAYO JOHN, 32, SMART AGUNBIADE, 28, OLUWADAMILOLA AKINPELU, 26, MORAKINYO GBEYIDE, 39, WARRIS ADENUGA, a/k/a “Blue,” 26, LATEEF GOLOBA, 27, SAMSONDEEN GOLOBA, 29, OLAWOYIN PETER OLAREWAJU, 34, and EMMANUEL ORONSAYE-AJAYI, 30 – are each charged with one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison.  One defendant – MORAKINYO GBEYIDE, 39 – is also charged with one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.  The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge.

Mr. Williams praised the outstanding investigative work of the Secret Service.  

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

[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.

U.S. Attorney Announces Arrest Of Iranian Large-Scale Heroin Trafficker

Malek Mohammad Balouchzehi Is Charged with Conspiring to Sell Multi-Hundred Kilogram Quantities of Heroin for Distribution in New York City

 Damian Williams, the United States Attorney for the Southern District of New York, and Anne Milgram, the Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced today the arrest of MALEK MOHAMMAD BALOUCHZEHI, a/k/a “Malek Khan,” for conspiring to import heroin into the United States and distributing heroin for importation into the United States.  BALOUCHZEHI, a citizen of Iran, was taken into custody by Kenyan authorities expelled to the United States from Kenya on October 9, 2021.  BALOUCHZEHI was presented before United States Magistrate Judge Sarah Netburn earlier today. 

U.S. Attorney Damian Williams said: “From thousands of miles away, Malek Balouchzehi allegedly arranged the importation of massive quantities of heroin into the United States with seemingly little regard for the devastation that highly addictive opiates cause after landing at our shores.  Balouchzehi’s expulsion to the United States is a direct result of this Office’s successful ongoing partnership with the D.E.A., and we commend the outstanding work of the agents both here and abroad who made today’s charges possible.”

D.E.A. Administrator Anne Milgram said:  “This investigation demonstrates our collective resolve to pursue criminals who traffic in these dangerous, addictive substances. For decades, DEA’s partnerships with our law enforcement partners around the world have been the key to bringing to justice those threatening our communities. DEA will continue to bring all that we have to bear to combat and defeat the criminal drug traffickers putting Americans’ safety and health at risk.”

According to the allegations contained in the Complaint charging the defendant,[1] which was unsealed today in Manhattan federal court:

BALOUCHZEHI is an Iran-based drug trafficker who distributes methamphetamine and manufactures and distributes heroin.  In or about September 2019, BALOUCHZEHI and his associate began communicating and meeting with individuals whom BALOUCHZEHI believed were heroin traffickers interested in large quantities of heroin for importation into the United States, as well as methamphetamine for distribution in Australia.  Those individuals were, in fact, a confidential source working at the DEA’s direction, and an undercover DEA agent posing as a New York-based heroin distributor.  In December 2019, BALOUCHZEHI caused a sample of approximately two kilograms of heroin to be delivered in Mozambique, with the understanding that those drugs would be transported to the United States for testing and sale.  Following this sample shipment, BALOUCHZEHI planned to supply larger quantities of heroin for importation to and distribution within the United States, and in December 2019, BALOUCHZEHI discussed providing as many as 400 kilograms of heroin for importation to the United States in the next transaction. 

BALOUCHZEHI, 38, a citizen of Iran, is charged with one count of conspiring to import heroin into the United States and one count of distributing heroin intending that the narcotics would be imported into the United States.  Both counts carry a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison.  The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Mr. Williams praised the outstanding investigative efforts of the DEA’s Special Operations Division, Bilateral Investigations Unit and New York Field Division; the DEA’s Nairobi, Maputo, Pretoria, Bucharest, and Jakarta Country Offices; the Kenyan National Police, Directorate of Criminal Investigations; the Mozambique National Criminal Investigation Services; and the Western Australia Police Force.  Mr. Williams also thanked the U.S. Department of Justice’s Office of International Affairs for its assistance.

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

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

NEW STUDY FROM NYC ADMINISTRATION FOR CHILDREN’S SERVICES SHOWS HOW “PARENT ADVOCACY INITIATIVE” HAS IMPROVED OUTCOMES FOR CHILDREN AND FAMILIES

 

When Parent Advocates with Lived Experience in the Child Welfare System Supported Parents in Child Safety Conferences, ACS Saw Improvements in Well-being Outcomes for Children

 Today, the NYC Administration for Children’s Services (ACS) announced key findings from a new study that suggests that the Parent Advocacy Initiative in initial child safety conferences is helping to improve outcomes for children and families. Utilizing this research, ACS has released a concept paper to seek feedback in preparation for the upcoming Parent Advocate Request for Proposals (RFP) to operate Parent Advocacy programs. The concept paper lays out a vision to build on the current model and scale enhancements that were found to improve outcomes, including expanded Parent Advocate involvement and support, family-driven service plans, and strengthened linkages between Parent Advocates in different ACS program areas.

 

The Parent Advocacy Initiative is a peer support program in which parents with prior experience in the child welfare system offer advocacy and support to parents currently involved in the child welfare system. In New York City, Parent Advocates participate in Initial Child Safety Conferences, meetings in which family members and child protective specialists (CPS) at ACS discuss safety concerns in the home and identify the best safety plan for the child. The recently published study revealed that, with the Parent Advocacy Initiative in place, ACS saw a significant increase in the conference attendance by parents in comparison with the past; a reduction in child removals; and an increased use of kinship care for children who had to be removed due to safety concerns. 

 

“We are excited by the results of this new study, which reinforce our belief that having Parent Advocates providing support to parents as we work to assure child safety can be of significant benefit to children and families. Parent Advocates have walked in the shoes of those currently involved in the child welfare system, and their lived experience can help empower and better engage parents during one of the most challenging times of their lives. We will continue to elevate the voices of parents and incorporate Parent Advocates into all parts of our agency, because we are confident that it will result in better outcomes for children and families in New York City,” said ACS Commissioner David A. Hansell.

 

“Parent Advocates possess a unique ability to understand the perspectives of parents and offer supports, promote family engagement in case decision-making, and encourage participation in services. Parent advocacy and support programs have been gaining attention in child welfare, and the growing body of empirical evidence on such programs have demonstrated that the inclusion of a Parent Advocate enhances the family-centered practice and has the potential to improve outcomes for children and families while giving voice to parents and communities most impacted by the system,” said Dr. Marina Lalayants of the Silberman School of Social Work, Hunter College, The City University of New York.

 

“Parent Advocates are not only trained in child welfare policy, but they have previous experience navigating the child welfare system, and so the support and expertise they offer to the families we work with is invaluable. As this study suggests, the Parent Advocacy Initiative is having a positive impact on children and families and truly represents a culture shift within the New York City child welfare system. I look forward to its continued success,” said Sabra Jackson, Parent Engagement Specialist at ACS.

 

The Parent Advocacy Initiative in Initial Child Safety Conferences is a type of peer/parent support program that became operational in New York City in December 2013. ACS works with non-profit organizations to recruit, train and employ these parent advocates across all boroughs.

 

Parent Advocates offer services such as support to parents in preparation for and during the child safety conference by helping them to be informed about their rights and responsibilities within the child welfare system, gain awareness of the child welfare concerns and understand and navigate the child welfare system. This initiative builds upon the work happening at ACS to address racial disproportionality across the child welfare system. ACS has prioritized initiatives that help strengthen parents’ voice and success and is currently implementing its Equity Action Plan, which is designed to address racial disparities across the child welfare system.

 

A recently published study in the Children and Youth Services Review titled, “Outcomes of the Parent Advocacy Initiative in Child Safety Conferences: Placement and Repeat Maltreatment,” examined the impact of the child safety conferences on case outcomes of families served by parent advocates. Specifically, the study researched cases receiving Parent Advocate intervention over a period of the 2016 calendar year and compared it to pre-intervention cases from the 2013 calendar year and cases from the 2016 calendar year that did not receive the parent advocate intervention. The study results revealed a significant increase in the conference attendance by parents in comparison with the past. Furthermore, the results of the study revealed that the Parent Advocacy Initiative contributed to the reduction of child removals, as a result, more children remained at home with parents. For children who had to be removed due to safety concerns, the study results also showed an increased use of kinship care, or children being placed with relatives and close friends as opposed to non-relative foster parents. Finally, the rates of indicated repeat maltreatment remained unchanged, suggesting that the initiative did not result in compromised child safety.

 

The Parent Advocate Initiative at Initial Child Safety Conferences builds on the agency’s continued work to incorporate Parent Advocates into decision making processes across the child welfare system. Last year, ACS announced the “Parents Supporting Parents” initiative which provides Parent Advocates to support, inform and mentor parents with children currently in foster care. ACS aims to scale this approach across the foster care system so that every parent with a goal of reunifying with their child has an assigned parent advocate, in order to increase safe and timely reunification of families with children in foster care. ACS will continue to identify new ways to incorporate Parent Advocates across all of its programs.

 

To read the study, please click here.

 

To read the concept paper, click here. Comments are due by December 3 at 5pm and can be submitted to ParentAdvocateOOA-CP@acs.nyc.gov.

 

EDITOR'S NOTE:

As is the case with the NYC Administration For Children's Services, we believe that right after the Riker's Island issue is closed, ACS should be next to be investigated by federal authorities. 

Governor Hochul Reminds New Yorkers to Get Vaccinated as Flu Season Begins

 

Releases New PSA Encouraging People to Get Vaccinated for Flu and COVID-19

COVID-19 Vaccine Can Be Received at the Same Time as Flu Shot

Flu Cases Hit Record Low in 2020 Due to Mask Wearing and Social Distancing, Show Preventive Measures for 2021 Flu Season Will Be Critical

 Governor Kathy Hochul today released a new Public Service Announcement (PSA) encouraging New Yorkers to get both a flu and COVID-19 vaccine this season. The COVID-19 vaccine and/or a booster dose can be received at the same time as the seasonal flu shot.  Flu season occurs primarily from October through May, often peaking between December and February. 

"Vaccination is the best defense against both the flu and COVID-19," said Governor Hochul. "Getting vaccinated is not just about protecting yourself, it also protects people around you. I urge all New Yorkers to get vaccinated to protect themselves, their family, friends and coworkers from both the flu and COVID-19 viruses."

The State Health Department recommends that everyone six months of age or older receive an influenza vaccination. The vaccine is especially important for people at high risk for complications from influenza, including children under age 2, pregnant women and adults over age 65. People with preexisting conditions such as asthma and heart disease are also at greater risk, as are individuals with weakened immune systems due to disease or medications such as chemotherapy or chronic steroid use. Since influenza virus can spread easily by coughing or sneezing, it is also important that family members and people in regular contact with high-risk individuals get an influenza vaccine.

"We actively monitor both flu activity and COVID-19 to help protect and raise awareness among New Yorkers and encourage them to get vaccinated against both infectious diseases," said Health Commissioner Dr. Howard Zucker.  "Both of these viruses can cause serious complications that may require hospitalization, so while getting vaccinated against flu and COVID-19 remains the best way to combat these infections, it's also important to wear a mask, social distance where possible and practice good hygiene in order to stay healthy and reduce hospitalizations."

Transcript of the new PSA:

Are you ready for flu season?

With kids back in school and many people returning to work, we need to get ready for both flu and COVID this fall and winter. 

Protect yourself, your family and your community by getting BOTH vaccines.

Everyone (6 months and older on screen) should get their flu shot-- and people 12 and older should get a COVID vaccine, too. 

Talk to your health care provider about getting flu and COVID-19 vaccines.

Learn more at health.ny.gov/flu

Influenza activity data will be available on the New York State Flu Tracker. The Flu Tracker is a dashboard on the New York State Health Connector that provides timely information about local, regional and statewide influenza activity. Click here for a video demonstration of how to use New York State Flu Tracker.  The New York State COVID-19 Tracker is available here.

Last flu season, flu cases in New York State hit a record low because of people wearing masks, social distancing and practicing frequent handwashing, which are the same public health measures used to help prevent the spread of COVID-19 since the start of the pandemic.

In addition to getting a flu shot and staying home when sick, it's essential to practice good hand-hygiene:

• Wash your hands often with soap and hot water for at least 20 seconds to protect yourself from germs and avoid spreading them to others.
• Carry an alcohol-based hand sanitizer to use when soap and water are not available. Choose a product with at least 60 percent alcohol.
• Do not cough or sneeze into your hands. Instead, cover your mouth and nose. 

All New York State mass vaccination sites are open to eligible New Yorkers for walk-in COVID-19 vaccination on a first-come, first-serve basis. People who would prefer to schedule an appointment at a state-run mass vaccination site can do so on the Am I Eligible App or by calling 1-833-NYS-4-VAX.  People may also contact their local health department, pharmacy, doctor or hospital to schedule appointments where vaccines are available, or visit vaccines.gov to find information on COVID-19 vaccine appointments near them. In addition to contacting their provider or local health department to get a flu shot, people can find a flu shot near them here. 

October Pelham Parkway Neighborhood Association Meeting

 

Tuesday October 12th was the monthly meeting of the PPNA, and it was the second in person meeting drawing a large crowd. Over forty people were on hand to hear and question, Department of Sanitation Citywide Community Affairs Officer Steven Caruso. Mr. Caruso explained what his job was, that being the information center for the DSNY, informing the public of DSNY policy, and attending Community meetings like this to get feedback for the DSNY. 

Questions came in from all over the PPNA area, and were questions such as 'What happened to the trash baskets that were on the street corners'? Mr. Caruso answered that question by saying that household garbage was being thrown into the waste baskets which are made for individual pieces of trash, not bags of household garbage. He said where that problem began, the trash can was removed. Another Question to him was about reducing Alternate Side of the street parking on commercial streets from six days a week to three days a week. Mr. Caruso said that it is the community board's responsibility to request that, and the matter was turned over to a member of Community Board 11's Traffic and Transportation committee who was in attendance since it is the DOT who is in charge of street signs. 

Also at the meeting were the NCO officers for Sector B, with their new NCO Sergeant for the 49th precinct, and representatives of Councilman Mark Gjonaj, and Assemblywoman Fernandez.

L-R, Lewis Lutnick PPNA Secretary, Elio Marrero PPNA Treasurer, Steven Caruso DSNY, Steven Glosser PPNA Vice-President, Edith Blitzer PPNA President, and Christian Amato PPNA Trustee.

 L-R 49th Precinct Sector B NCO Officers Alacantra and McDowell with new NCO Sergeant Hines.

A view of the crowd at the October PPNA meeting.

Permits Filed For 3020 Williamsbridge Road In Allerton, The Bronx (Most Likely a SRO Building)

 

3020 Williamsbridge Road in Allerton, The Bronx via Google Maps

Permits have been filed for a four-story residential building at 3020 Williamsbridge Road in Allerton, The Bronx. Located at the intersection of Williamsbridge Road and Wallace Avenue, the corner lot is closest to the Burke Avenue subway station, serviced by the 2 and 5 trains. Amarjit Singh is listed as the owner behind the applications.

The proposed 37-foot-tall development will yield 14,945 square feet designated for residential space. The building will have 25 residences, most likely rentals based on the average unit scope of 597 square feet. The masonry-based structure will also have a cellar, a 40-foot-long side yard, and seven enclosed parking spaces.

Badaly Architects is listed as the architect of record.

Demolition permits have not been filed yet for the two-family residential building built in 1925. An estimated completion date has not been announced.

80 Days and Counting

 

I am making more appearances in the Bronx, because as your current Governor said, the state goes the way the Bronx goes. Governor Hochul's power is in conservative upstate New York where she comes from, and it was upstate New York's loss of population that will make New York lose one congressional district.

Thanks to me New York City grew by over 500,000 people, and I am the one person who can repopulate upstate New York. I did it in New York City, and I can do it for upstate New York. New York City has survived the COVID-19 pandemic thanks to my quick thinking, and under my guidance New York City is returning better than it was. However just like my mentor Former Mayor David Dinkins who started the Safe Streets program, it was Mayor Giuliani who got all the credit. So as I have laid all the groundwork, it will be Mayor Adams who will get all the credit, not me. People will say Thumbs down, call me a Commie, and the worse mayor New York City ever had, but that's all right because I will become the next governor of New York State.

Sean Merchant, a/k/a “Bronxwood,” Sentenced To More Than 16 Years In Prison For Sex Trafficking Of Minors

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced that SEAN MERCHANT was sentenced today to 196 months in prison for sex trafficking of three minor females.  MERCHANT was sentenced by U.S. District Judge Kimba M. Wood, before whom he previously pled guilty to one count of sex trafficking of a minor.  As part of his plea, MERCHANT acknowledged that he trafficked three minor females.

U.S. Attorney Damian Williams said: “Sean Merchant preyed upon three minor females who had previously resided at a residential treatment facility for at-risk children and adolescents.  Merchant placed these young women in harm’s way by enticing them to perform commercial sex acts for money, and in turn providing them with addictive drugs.  It is hard to imagine a more selfish and inhumane act than coercing a minor to have sex with strangers for profit, and Merchant has justly been sentenced to more than 16 years in prison for his outrageous conduct.”  

According to the allegations contained in the Indictment and other court documents filed in Manhattan federal court:

From at least in or about March 2017 to at least in or about October 2017, SEAN MERCHANT, a/k/a “Bronxwood,” the defendant, engaged in the sex trafficking and sexual exploitation of three minor victims (“Minor Victim-1,” “Minor Victim-2,” and “Minor Victim-3,” and together, the “Minor Victims”).  The defendant recruited, enticed, harbored, transported, provided, obtained, and maintained the Minor Victims for the purpose of commercial sex.  Prior to being trafficked by MERCHANT, each of the Minor Victims previously resided at a residential treatment facility located in Westchester County, which provided housing for at-risk troubled children and adolescents on behalf of department of social services for certain counties in New York State.           

The defendant recruited the Minor Victims to engage in commercial sex.  Subsequently, the defendant used the website Backpage.com, an online classifieds website, to post advertisements of the Minor Victims for commercial sex.  The defendant provided Minor Victim-1 and Minor Victim-2 with drugs, and directed them to engage in commercial sex acts in particular locations in the Bronx, New York.

In addition to his prison sentence, MERCHANT, 32, was sentenced to five years of supervised release.

MERCHANT is the third defendant to be sentenced in this case by Judge Wood for his participation in sex trafficking of minors.  Steven Lesane, who pled guilty to sex trafficking of two minor victims, was sentenced to a term of 256 months in prison on July 27, 2021.  Jermaine Myrie, who pled guilty to participating in a conspiracy to commit sex trafficking of a minor, was sentenced to a term of 135 months in prison on February 12, 2020.  Reuben Sands, who pled guilty to conspiracy to violate the Travel Act, was sentenced to a term of 60 months in prison on December 18, 2019.  The final defendant, Martique Mcgriff, is scheduled to be sentenced on December 8, 2021.

This case is part of an ongoing prosecution of 19 defendants, set forth in eight indictments, for the sex trafficking of at least 20 minor girls and young adults in New York State’s social services system.  All 19 of the defendants have been convicted, either via guilty plea or following trial. 

Any individuals who believe that they have information that may be relevant to this investigation should contact the FBI at 1-212-384-1000 or https://tips.fbi.gov.

Mr. Williams thanked the FBI and the NYPD for their outstanding work in this matter and, in particular, the New York Child Exploitation and Human Trafficking Task Force.