Dual U.S. / Russian National Charged With Acting Illegally As A Russian Agent In The United States

 

Elena Branson Allegedly Willfully Evaded FARA Registration for Nearly a Decade, Working to Advance the Interests of the Russian Government While Receiving Tasking and Funding from High-Level Russian Officials

 Damian Williams, the United States Attorney for the Southern District of New York, Matthew G. Olsen, the Assistant Attorney General for National Security, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of a Complaint charging ELENA BRANSON, a dual Russian and U.S. citizen, with acting and conspiring to act in the United States illegally as an agent of the Russian government, willfully failing to register under the Foreign Agents Registration Act (“FARA”), as well as conspiring to commit visa fraud and making false statements to the FBI.  As alleged, beginning in at least 2011, BRANSON worked on behalf of the Russian government and Russian officials to advance Russian interests in the United States, including by coordinating meetings for Russian officials to lobby U.S. political officials and businesspersons, and by operating organizations in the United States for the purpose of publicly promoting Russian government policies, and BRANSON never notified the Attorney General as she was required to, including by registering under FARA.

U.S. Attorney Damian Williams said: “As alleged, Elena Branson, a dual U.S. / Russian national, actively subverted foreign agent registration laws in the United States in order to promote Russian policies and ideology.  The Russian government at its highest levels, up to and including President Vladimir Putin, have made known that aggressive propaganda and recruitment of the Russian diaspora around the world is a Russian priority.  In connection with this pursuit, Branson is alleged to have corresponded with Putin himself and met with a high-ranking Russia minister before founding a Russian propaganda center here in New York City, the Russian Center New York.  Branson’s promotional outreach, including an ‘I Love Russia’ campaign aimed at American youths, exemplifies her attempts to act at the behest of the Russian government to illegally promote its interests in the United States.  All the while, Branson knew she was supposed to register as an agent of the Russian government but chose not to do so and, instead, instructed others regarding how to illegally avoid the same.  Particularly given current global events, the need to detect and hinder attempts at foreign influence is of critical importance, and the Southern District of New York is proud to do its part in the fight against tyranny.”

Assistant Attorney General Matthew G. Olsen said: “As alleged, Branson engaged in a wide-ranging influence and lobbying scheme with funding and direction from the Russian government – all while deliberately leaving the American people in the dark. The Department will continue to expose these serious crimes and shine a light on foreign malign influence.”

FBI Assistant Director-in-Charge Michael J. Driscoll said: “As alleged, Branson worked as an illegal agent of the Russian government in circumvention of FARA requirements. At the direction of the Russian government, she led a years long campaign to identify the next generation of American leaders, cultivate information channels, and shape US policy in favor of Russian objectives.  This case highlights the breadth of Russia's relentless intelligence and malign influence activities targeting the United States. The FBI will continue to be just as aggressive in uncovering and dismantling these Russian government networks who seek to harm our national security.”

According to the allegations contained in the Complaint filed today in Manhattan federal court[1]:

The Russian government has sought to spread Russian propaganda and to use Russian citizens in the United States and elsewhere to make connections with U.S. community leaders, politicians, and businesspersons, in order to advance Russian government objectives.  Russian leaders, including President Vladimir Putin, have made public statements acknowledging this foreign policy strategy of the Russian government. 

As part of that Russian government effort, beginning in at least approximately 2011, BRANSON, a native of Russia, acted illegally as an agent of the Russian government while living in the United States, by not registering pursuant to FARA or otherwise notifying the Attorney General as required by a separate statute. Among other things, in or about 2012, after receiving approval from the highest levels of the Russian government, BRANSON incorporated an organization headquartered in Manhattan, New York, named the Russian Center New York (“RCNY”).  BRANSON sent correspondence to then-Prime Minister Putin and met with a high-ranking Russian government Minister in connection with the initiation of her activities for the Russian government in the United States.  BRANSON received tens of thousands of dollars in funding from the Russian government for the RCNY and has used the RCNY to host events and engage in public messaging at the direction of the Russian government and Russian officials.  BRANSON was directed to, among other things, host events designed to consolidate the Russian-speaking youth community in the United States.  For example, BRANSON and the RCNY hosted an annual youth forum, funded in part by an entity controlled by the Government of Moscow. Throughout her work as a Russian agent in the United States, BRANSON received funding and direction from the Russian government, including from the Russian Embassy in Washington, D.C., and received tasking from high-level Russian government officials and Russian government-run organizations. At the same time, however, BRANSON actively sought to hide that the Russian government was providing her with tasking and funding her activity and she instructed her co-conspirators to do the same. She also cautioned others against using language in describing their activities that would draw attention to FARA registration obligations for herself and the organizations.

As alleged, in or about 2019, BRANSON coordinated through the RCNY a campaign to lobby Hawaiian officials not to change the name of a fort located on the Hawaiian island of Kauai, which is the last remaining formerly Russian fort in the Hawaiian islands and is significant to the Russian government.  Among other things, BRANSON provided Hawaiian officials with messages from Russian government officials and organized a trip to Moscow for Hawaiian officials responsible for the potential name change to meet with high-ranking Russian government personnel. 

In addition to the RCNY, BRANSON has served as a Chairperson of the Russian Community Council of the USA (“KSORS”), which is funded at least in part by various Russian government-run entities.  Among other things, KSORS has coordinated an “I Love Russia” campaign in the United States and organized youth forums focused on the promotion of Russian history and culture to American youths.  BRANSON used the KSORS website to promote messages from the Russian Embassy and organized KSORS events approved by the Russian Ambassador to the United States.  When BRANSON sought financial support from a Government of Moscow official for the KSORS website, BRANSON reported that the purpose of the KSORS website was to spread information “about the activities of organizations created by Russian compatriots to form a positive image of Russia and Moscow among Americans.” 

According to the Complaint, BRANSON’s work on behalf of the Russian government also included arranging meetings for herself and other Russian officials with U.S. Government officials and executives at businesses based in the United States.  For example, in March 2016, BRANSON worked to arrange meetings for the head of the Department of Foreign Economic Activity and International Relations for the Government of Moscow with, among others, a then-New York State Senator and the management of certain U.S. companies.

BRANSON also participated in a scheme to obtain fraudulent visas for Russian officials and their associates, by providing information about RCNY events to those individuals for using as false pretenses to obtain visas to enter the United States. 

The FBI interviewed BRANSON on September 29, 2020.  During this interview, among other things, BRANSON falsely claimed that she had never been asked by Russian officials to coordinate any meetings between U.S. business leaders or politicians and officials from the Government of Moscow.  BRANSON subsequently left the United States for Russia.  On or about October 15, 2021, during an interview on a Russian government-controlled television station, BRANSON stated that she had left the United States because she thought it was likely that she would be arrested. 

BRANSON, 61, is charged with (1) conspiring to act as an agent of a foreign government without notifying the Attorney General, which carries a maximum sentence of five years in prison; (2) acting as an agent of a foreign government without notifying the Attorney General, which carries a maximum sentence of ten years in prison; (3) conspiring to evade FARA registration, which carries a maximum sentence of five years in prison; (4) willfully failing to register under FARA, which carries a maximum sentence of five years in prison; (5) conspiring to commit visa fraud, which carries a maximum sentence of five years in prison; and (6) making false statements to the FBI, which carries a maximum sentence of five years in prison.  The maximum statutory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.

BRANSON left the United States for Russia in 2020 and remains at large.

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

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

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

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

Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19 - MARCH 8, 2022

 

Daily Positivity is 1.57% -- Under 2% Over Past 12 Consecutive Days

17 COVID-19 Deaths Statewide Yesterday

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

"Thanks to New Yorkers stepping up, we continue to see numbers trending in the right direction," Governor Hochul said. "But we must remain vigilant in order to continue the progress we have made against COVID-19. Parents and guardians, please talk to your pediatrician or health care provider about getting your children vaccinated and boosted. The vaccine is safe, effective and the best way to keep our communities safe from this virus."

Today's data is summarized briefly below:      

• Test Results Reported - 67,714
• Total Positive - 1,060
• Percent Positive - 1.57%  
• 7-Day Average Percent Positive - 1.51%
• Patient Hospitalization - 1,507 (-13)
• Patients Newly Admitted - 125
• Patients in ICU - 251 (-7)
• Patients in ICU with Intubation - 138 (-1)
• Total Discharges - 287,343 (+115)
• New deaths reported by healthcare facilities through HERDS - 17
• Total deaths reported by healthcare facilities through HERDS - 54,869 

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

• Total deaths reported to and compiled by the CDC - 69,541

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

• Total vaccine doses administered - 37,149,364
• Total vaccine doses administered over past 24 hours - 13,495
• Total vaccine doses administered over past 7 days - 131,994
• Percent of New Yorkers ages 18 and older with at least one vaccine dose - 91.8%
• Percent of New Yorkers ages 18 and older with completed vaccine series - 83.1%
• Percent of New Yorkers ages 18 and older with at least one vaccine dose (CDC) - 95.0%
• Percent of New Yorkers ages 18 and older with completed vaccine series (CDC) - 85.7%
• Percent of New Yorkers ages 12-17 with at least one vaccine dose (CDC) - 81.9%
• Percent of New Yorkers ages 12-17 with completed vaccine series (CDC) - 71.9%
• Percent of all New Yorkers with at least one vaccine dose - 81.2%
• Percent of all New Yorkers with completed vaccine series - 73.4%
• Percent of all New Yorkers with at least one vaccine dose (CDC) - 89.2%
• Percent of all New Yorkers with completed vaccine series (CDC) - 75.7%

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

Borough in NYC	Saturday, March 5, 2022	Sunday, March 6, 2022	Monday, March 7, 2022
Bronx	0.78%	0.79%	0.76%
Kings	0.96%	0.95%	0.93%
New York	1.29%	1.32%	1.33%
Queens	0.96%	0.94%	0.94%
Richmond	1.16%	1.19%	1.19%

Texas Man Sentenced To 48 Months In Prison For Laundering Proceeds Of Multimillion Dollar Business Email Compromise Scheme

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced today that TERRY FORMER was sentenced this afternoon to 48 months in prison in connection with the laundering of more than $2.2 million in proceeds of a business email compromise scheme.  FORMER pled guilty to conspiring to commit wire fraud on April 2, 2021, before U.S. District Judge P. Kevin Castel, who imposed today’s sentence.

U.S. Attorney Damian Williams said:  “Terry Former played an essential role in a scheme to defraud businesses, by organizing a team of co-conspirators to open shell company bank accounts to accept the victims’ funds and clandestinely transfer them to the fraudsters. Today’s sentence demonstrates the severe consequences that will befall those who facilitate criminal conduct by laundering its proceeds.”

According to the Indictment and other public filings in the case: 

From at least in or about October 2018 through at least in or about October 2019, TERRY FORMER participated in a scheme to defraud businesses and by impersonating individuals and businesses in the course of otherwise ordinary financial transactions, thereby fraudulently inducing counterparties to those transactions to transfer funds to bank accounts controlled by FORMER and his co-conspirators (the “Scheme”).  FORMER was one of the primary individuals responsible for coordinating the money side of the Scheme.  In particular, he directed co-conspirators to open up bank accounts in the names of shell companies, which were purposefully chosen to mirror the names of the true counterparties in the business transactions that were targeted by the Scheme.  FORMER also coordinated between the individuals involved in impersonating the true counterparties and the individuals holding the bank accounts to let them know when the accounts would be funded and to funnel the money out of those accounts once received . 

In reliance on the foregoing false and misleading misrepresentations, one of the victims of the Scheme wired more than $2.2 million into a fraudulent bank account opened at FORMER’s direction.  FORMER and his co-conspirators, knowing the money represented fraud proceeds, transferred a portion of those fraud proceeds out of the fraudulent bank account in transactions designed to conceal and disguise their source, ownership, and control.  FORMER’s efforts to drain the account completely were stopped only when the bank froze the funds.

FORMER, 46, of Texas, was also sentenced to three years of supervised release. 

Mr. Williams praised the work of Homeland Security Investigations for their investigative efforts and ongoing support and assistance with the case.  The prosecution of this case is being handled by the Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Emily Deininger and Tara La Morte are in charge of the prosecution.

Attorney General James Warns New Yorkers of Potential Price Gouging of Fuel Following President Biden’s Ban on Russian Oil

 

AG James to Oil Companies and Gas Stations: Price Gouging Will Not be Tolerated

 In response to U.S. President Joe Biden’s announcement today that the United States will ban imports of Russian oil, natural gas, and coal, New York Attorney Letitia James warned oil companies and gas stations that price gouging is illegal and reminded New Yorkers to be on alert for potential price gouging of fuel. Russia is one of the world’s largest producers of energy, and as a result of these sanctions, New Yorkers should prepare for continued market disruptions, potentially inflated prices at the pump, and ensure that they know their rights. New York law prohibits sellers of fuel and other vital and necessary goods from charging unconscionably excessive prices during an abnormal market disruption, including disruptions caused by world conflicts. New York consumers who experience dramatic increases in the price of gasoline or fuel should report these incidents to the Office of the Attorney General (OAG). 

“President Biden is taking critical and necessary action to hold Russia accountable for this unprovoked invasion that has claimed thousands of Ukrainian lives,” said Attorney General James. “This newest round of sanctions could impact New Yorkers, so we are reminding companies that price gouging is illegal and ensuring that consumers take precautions to protect themselves and their wallets. Anyone who has experienced issues relating the price gouging of fuel should contact my office, and we will continue to do everything in our power to protect consumers.”

When reporting price gouging to OAG, consumers should:

• Report the specific increased prices, the dates, and places that they saw the increased prices, and the types of fuel being sold;
• Provide copies of their sales receipts and photos of the advertised prices, if available; and
• Buy only as much fuel as they need and not to stock up out of fear of a potential future shortage. 

New Yorkers should report potential concerns about price gouging to OAG.  

California Man Pleads Guilty For Operating A Multi-Million Dollar Mortgage Modification Fraud

 

Damian Williams, the United States Attorney for the Southern District of New York, and Daniel B. Brubaker, Inspector-in-Charge of the New York Office of the United States Postal Inspection Service (“USPIS”), announced today that SERGIO LORENZO RODRIGUEZ, of Orange County, California, pled guilty to one count of wire fraud in connection with a fraudulent foreclosure rescue scheme that took in at least $5 million in prohibited advance fees from thousands of financially distressed homeowners.  RODRIGUEZ pled guilty before U.S. Magistrate Judge Sarah Netburn.

U.S. Attorney Damian Williams said:  “As he admitted today, for years, Sergio Lorenzo Rodriguez took advantage of desperate homeowners who were facing foreclosure and eviction to collect from them, in the aggregate, millions of dollars in advance fees based on promises that Rodriguez knew he could not, or would not, keep.  He exploited the financial vulnerability of his victims and is now being held accountable for his crime.”

According to the Complaint, the Indictment,[1] and statements made in court, and publicly available documents:    

From approximately mid-2015 through August 2020, SERGIO LORENZO RODRIGUEZ and a co-conspirator (the Defendants) owned and/or managed a series of mortgage modification companies through which they perpetrated a scheme to defraud and attempt to defraud financially distressed consumers who were facing or were at imminent risk of foreclosure through deceptive marketing practices. Those companies included American Home Servicing Center, National Advocacy Center, National Advocacy Group, and Capital Home Advocacy Center (collectively, the “Companies”).  The Defendants tricked desperate homeowners into paying thousands of dollars each in prohibited advance fees through various misrepresentations, including: falsely claiming that the homeowners had been pre-approved by their lender or servicer for a mortgage modification; misrepresenting prohibited advance fees as closing costs or other non-prohibited costs; fraudulently claiming that the Companies achieved success rates of 95 percent or higher for mortgage modifications; and making empty promises of a no-risk money back guarantee.  As a result of their intentional misrepresentations, and misrepresentations that they encouraged their subordinates to make, the Defendants induced thousands of homeowners to pay, in the aggregate, millions of dollars in prohibited advance fees to the Companies, including a large number of consumers who were ultimately denied mortgage modifications or who received modification offers that were less favorable than they had been led to expect at the time they paid advance fees.

In February 2018, the Federal Trade Commission brought a civil lawsuit against the Defendants, among others, in federal court in Santa Ana, California.  That civil action resulted first in a temporary restraining order and then a permanent injunction barring the Defendants from marketing and selling all debt relief products and services.  As alleged in the Indictment, the Defendants flouted those judicial orders by having a relative create another mortgage modification company named 1st Premier Asset Solutions, which the Defendants operated using aliases and some of the same deceptive practices. 

SERGIO LORENZO RODRIGUEZ, 47, of Laguna Niguel, California, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. 

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. 

Mr. Williams praised the outstanding and persistent investigative work of the United States Postal Inspection Service and thanked the Federal Trade Commission for their assistance.

[1] As to Rodriguez’s co-defendant Eva Christine Rodriguez, the entirety of the text of the Indictment, and the descriptions of the Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.

NYC Comptroller Brad Lander Stands With State’s Vulnerable Workers to Make Pandemic Safety Net Permanent

 

Photo by: Office of New York City Comptroller.

New York City Comptroller Brad Lander marched in solidarity with the Fund Excluded Workers campaign, calling on Governor Kathy Hochul and the New York State Legislature to replenish the Excluded Workers Fund and create a permanent program to support undocumented, self-employed and cash economy New Yorkers who are excluded from existing unemployment benefits. In 2021, the Fund Excluded Workers campaign won a one-time $2.1 billion fund to support undocumented workers and other excluded workers who did not receive economic assistance from the state or federal government, but ran out of funds before being able to distribute funds to everyone who applied. Advocates are asking for an additional $3 billion in funding for excluded workers who still need support and urging the legislature to create a permanent unemployment fund for excluded workers.
 
In a show of support, Comptroller Lander said:
 
“New York City and its economy are stronger when all working families get the support they need to weather a crisis with food on the table and a roof over their heads. The pandemic laid bare the holes in our social safety net, which left hundreds of thousands of Black and brown low-wage workers to fall through. People who deliver meals, sanitize our subway stations, take care of our homebound elders, harvest our crops, and so many other essential tasks to keep our society going deserve the same social support when hard times cause them to lose work. At a time when our state budget outlook is relatively strong, we can and we must invest in programs that strengthen our collective resilience.    
 
“Helping excluded workers get back on their feet now and expanding our social safety net to catch them the next time there’s a crisis will help secure a lasting and inclusive economic recovery for NYC.”

Statement from NYGOP Chairman Nick Langworthy on Biden's Remarks About Gas Pric

 

“Americans are paying the highest prices ever for gas and it is a crisis of the Democrat Party’s own making. Since being sworn in, Joe Biden has destroyed American energy creation to appease the radical wing of his own Party.  We were seeing the consequences long before Russia brutally invaded Ukraine. Americans are being forced to shoulder the burden of their radical energy agenda that is not only crushing the low and middle class but also makes our nation less secure. Joe Biden, Chuck Schumer, Kathy Hochul, and every Democrat elected leader should be calling for a return to American energy production, today. Voters are watching.” 

March 8, 2022

DEC REMINDS NEW YORKERS THE ANNUAL RESIDENTIAL BRUSH BURNING PROHIBITION STARTS MARCH 16

 

Spring Burn Ban Reduces Wildfire Risks, Protects Lives and Property

 New York State Department of Environmental Conservation (DEC) Commissioner Basil Seggos today announced the annual statewide ban prohibiting residential brush burning will begin March 16 and run through May 14. Since 2009, DEC has enforced the annual brush burning ban to prevent wildfires and protect communities during heightened conditions for wildfires each spring. 

“The start of spring in New York comes with an increased risk of wildfires,” Commissioner Seggos said. "Starting March 16 and ending May 14, New York State prohibits residential brush burning to protect our communities and our natural resources. Since 2009, New York’s burn ban has reduced the number of wildfires in our communities and we’re looking forward to continuing that trend in 2022." 

Even though some areas of the state remain blanketed in snow, warming temperatures can quickly cause wildfire conditions to arise. Open burning of debris is the single-largest cause of spring wildfires in New York State. When temperatures warm and the past fall's debris and leaves dry out, wildfires can start and spread easily, further fueled by winds and a lack of green vegetation. Each year, DEC Forest Rangers extinguish dozens of wildfires that burn hundreds of acres. In addition, local fire departments, many of which are staffed by volunteers, all too often have to leave their jobs and families to respond to wildfires caused by illegal debris fires. DEC will post the Fire Danger Map for the 2022 fire season on DEC's website once there is a moderate risk anywhere in New York. 

New York first enacted strict restrictions on open burning in 2009 to help prevent wildfires and reduce air pollution. The regulations allow residential brush fires in towns with fewer than 20,000 residents during most of the year, but prohibit such burning in spring when most wildfires occur.

Backyard fire pits and campfires less than three feet in height and four feet in length, width, or diameter are allowed. Small cooking fires are allowed. Only charcoal or dry, clean, untreated, or unpainted wood can be burned. People should never leave these fires unattended and must extinguish them. Burning garbage or leaves is prohibited year-round. For more information about fire safety and prevention, go to DEC's FIREWISE New York website.

Some towns, primarily in and around the Adirondack and Catskill parks, are designated "fire towns." Open burning is prohibited year-round in these municipalities unless an individual or group has a permit from DEC. To find out whether a municipality is a designated fire town or to obtain a permit, contact the appropriate DEC regional office. A list of regional offices is available on DEC's website. 

Forest Rangers, DEC Environmental Conservation Police Officers (ECOs), and local authorities enforce the burn ban. Violators of the State's open burning regulation are subject to criminal and civil enforcement actions, with a minimum fine of $500 for a first offense. To report environmental law violations, call 1-833-RANGERS, or report online on DEC's website. 

Media Availability

DEC will hold a media availability via Zoom to discuss the brush burning ban and answer questions about fire safety and prevention:

Wednesday, March 9 at 10:30 a.m.

https://zoom.us/j/95278771874?pwd=cFZiUm42Z25oeVpKWGc0cGt6OTRwZz09

Meeting ID: 952 7877 1874

Passcode: m2Jeb5