Happy New Year, from Representative Ocasio-Cortez

 

A Message from Representative Ocasio-Cortez

To Our Neighbors in NY-14, 

 

It seems hard to believe, but my second term representing New York’s 14th Congressional District is coming to a close. In just four years, we’ve been able to do so much work with our communities in The Bronx and Queens. Here’s a quick snapshot of what we’ve accomplished this year:   

We passed the first gun reform into law in 40 years — which will expand background checks, increase protections for victims of domestic violence, and more.   

The U.S. acknowledged its role as a colonizing force in Puerto Rico. The House passed the Puerto Rico Status Act, which doesn’t favor statehood, independence, or free association, but allows Puerto Ricans to choose their own future.   

Congress secured $60 billion to fight climate change — the largest climate investment ever!   

We capped the cost of insulin to $35 for those on Medicare, starting in 2023.   

After Hurricane Ida caused deadly flash flooding in Queens, we secured $119.2 million for water and wastewater infrastructure.  

NYC Taxi Drivers were targeted and trapped in predatory medallion schemes, so we worked with the City to get more than 1,000 drivers $225 million in debt relief.  

We taxed the rich. Congress instituted a 15% minimum tax rate on the wealthiest corporations.  

From Social Security benefits to tax returns, our constituent liaisons helped constituents get back $1,908,647 they were owed from federal agencies.   

As always, there’s still more to do. But as this year comes to a close, I just wanted to say that it's been an honor to serve you. I am especially going to miss those constituents who will no longer be in NY-14 next year. Your guidance and feedback over the years has been invaluable — and I hope I’ve made you proud. 

  

Wishing you and your loved ones a happy holiday season!  

 

Warmly, Representative Ocasio-Cortez (& Deco! ) 

New York Attorney And Doctor Convicted Of Defrauding New York City-Area Businesses And Their Insurance Companies Of More Than $31 Million Through Massive Trip-And-Fall Fraud Scheme

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced the convictions in Manhattan federal court of GEORGE CONSTANTINE, a New York lawyer, and ANDREW DOWD, a New York orthopedic surgeon, for their participation in a massive trip-and-fall fraud scheme between 2013 and 2018.  The jury convicted CONSTANTINE and DOWD following a three-week trial before U.S. District Judge Sidney H. Stein.  Co-conspirators Marc Elefant, Sady Ribeiro, Adrian Alexander, Kerry Gordon, and Peter Kalkanis previously pled guilty before Judge Stein for their involvement in the same trip-and-fall fraud scheme.  Co-conspirators Bryan Duncan, Ryan Rainford, and Robert Locust were convicted at trial in May 2019 before Judge Stein for their participation in the same trip-and-fall fraud scheme.  Sentencing of CONSTANTINE and DOWD is scheduled for March 21, 2023. 

U.S. Attorney Damian Williams said: “This unanimous jury verdict holds George Constantine, a lawyer, and Andrew Dowd, a doctor, accountable for their participation in a widespread fraud scheme that preyed upon poor, vulnerable, and at-times homeless individuals.  These individuals were recruited to stage trip-and-fall accidents and undergo medically unnecessary surgeries performed by Dowd that were designed to increase the value of fraudulent personal injury lawsuits filed by Constantine.  Constantine and Dowd abused their professional licenses, degrees, and titles to line their own pockets with millions of dollars, and they now face the prospect of lengthy prison sentences for their crimes.”

According to the allegations contained in the Superseding Indictment and the evidence presented in Court during the trial:

Between 2013 and 2018, CONSTANTINE and DOWD,  among others, engaged in an extensive fraud scheme, in which individuals (the “Patients”) were recruited to stage trip-and-fall accidents and then undergo medically unnecessary surgeries in order to increase the value of the fraudulent personal injury lawsuits that were filed on their behalf against the owners of the accident sites and/or insurance companies of the owners of the accident sites (the “Victims”).  During the course of the fraud scheme, CONSTANTINE and DOWD, together with others known and unknown, attempted to defraud the Victims of more than $31 million.

CONSTANTINE and DOWD relied upon a team of “runners” who were paid cash kickbacks by CONSTANTINE to recruit the Patients to stage or falsely claim to have suffered trip-and-fall accidents at particular locations throughout the New York City area.  Common accident sites used during the fraud scheme included cellar doors, cracks in concrete sidewalks, and purported “potholes” in front of commercial establishments, such as gas stations, diners, and other businesses.  

After their staged accidents, the Patients were directed to go to the hospital to obtain discharge papers and then were brought to CONSTANTINE’s office, by the carloads, where they met with CONSTANTINE briefly, after which CONSTANTINE would uniformly accept their case.  CONSTANTINE failed to ask even the most basic questions during the intake process, including the locations of the purported accidents, and yet, would file fraudulent lawsuits, under penalty of perjury, on behalf of the Patients against the Victims.  During the course of the scheme, CONSTANTINE filed nearly 200 fraudulent lawsuits and earned more than $5 million dollars in settlement fees from these fraudulent cases.

Following the Patients’ meeting with CONSTANTINE, the Patients were driven to various medical appointments, including visits with chiropractors, physical therapists, and to obtain MRIs, all of which was designed to justify the surgical procedures on their knees, shoulders, and backs that Patients were required to have as part of the scheme. 

The Patients were then driven to meet with DOWD, an orthopedic surgeon, who would perform arthroscopic knee and shoulder surgeries on Patients within one to two weeks of first meeting the Patients.  DOWD paid hundreds of thousands of dollars in kickbacks for these Patient referrals.  DOWD performed no physical exams on the Patients and fabricated his medical reports to make it seem like the Patients were injured, when in reality they were not.  To incentivize the Patients to get surgery, the Patients were paid approximately $1,000 after each surgery.  During the course of the scheme, DOWD performed nearly 300 medically unnecessary surgeries and earned more than $3.2 million dollars.  DOWD received approximately $10,000 per surgery. 

The surgeries, as well as the other medical procedures, were funded by litigation funding companies, including a funding company owned by co-conspirator Adrian Alexander, even when the Patient maintained medical coverage through an insurance company or a government-subsidized program.  The funding companies also paid the fraud scheme organizers and participants referral fees, typically $1,000 to $2,500, for each Patient who signed a funding agreement.  In exchange for funding Patients’ medical and legal costs, the funding companies charged the Patients high interest rates.  The interest rates were so high that oftentimes the majority of the proceeds that were awarded in the fraudulent lawsuits were paid to the Funding Companies, CONSTANTINE, and other scheme participants, with the Patients receiving a much smaller percentage of the remaining recovery.

The Patients were overwhelmingly poor – individuals desperate enough to submit to surgeries in exchange for the small payments they would receive after surgery.  It was common for the Patients to ask for food or money when they would appear for their intake meetings with CONSTANTINE.  Patients were recruited from homeless shelters and often suffered from drug and alcohol addiction as well.        

CONSTANTINE, 60, of Plainview, New York, and DOWD, 67, of Miller Place, New York, were found guilty of conspiracy to commit mail and wire fraud, mail fraud, and wire fraud, each of which carries a maximum term of 20 years in prison.  DOWD was also found guilty of additional counts of conspiracy to commit mail and wire fraud, mail fraud, and wire fraud. 

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.

Mr. Williams praised the outstanding investigative work of the New York Field Office of the Federal Bureau of Investigation.  Mr. Williams also thanked the National Insurance Crime Bureau for their assistance in the investigation.

MAYOR ADAMS MOVES TO REIMAGINE FIFTH AVENUE FROM BRYANT PARK TO CENTRAL PARK

 

Building on Recent “New New York” Report and Incredibly Popular, Largest-Ever Holiday Season-Specific Open Street, Vision for Fifth Avenue Will Prioritize Pedestrians, Cyclists, Mass Transit, and the Public Realm

Planning Process Will Bring Together Unique Public-Private Partnership With Stakeholders Across East Midtown and Build on Years of Study of This Crucial Corridor

New York City Mayor Eric Adams today launched a major new visioning process to reimagine Fifth Avenue — from Bryant Park at 42^nd Street to Central Park at 59^th Street — as a safer, less congested, pedestrian-centered boulevard that also prioritizes cyclists, mass transit, and the public realm. Bringing together city government and community stakeholders across East Midtown, the process will draw on the years of study of this critical corridor — one of the world’s leading shopping, office, and tourism destinations and a key economic engine for the neighborhood and the city — to craft a plan that will make Fifth Avenue more appealing to residents, workers, and visitors with world-class public space.

The new effort builds on the “New New York: Making New York Work for Everyone” action plan released last week by Mayor Adams and New York Governor Hochul and on the widely popular, largest-ever holiday season-specific Open Street on Fifth Avenue and around Rockefeller Center, which Mayor Adams visited this afternoon.

“Fifth Avenue is an iconic corridor and an engine of our Midtown economy. But it is also an unmissable opportunity to show the city and the country how world-class public space can help create vibrant central business districts,” said Mayor Adams. “New York isn’t coming back, New York is back. But New Yorkers don’t sit on our hands — we will continue to bring everyone to the table, come up with innovative ideas together, and make our city safer, fairer, and more prosperous.”

Conceptual renderings from one proposal for a reimagined Fifth Avenue. Credit: Fifth Avenue Association

“As a world-class city and destination, New York City needs a world-class, pedestrian-forward avenue,” said Deputy Mayor for Operations Meera Joshi. “From historic Central Park to the iconic Bryant Park, Fifth Avenue has the potential to become an even grander corridor, open to New Yorkers and international tourists alike. I look forward to working with the stakeholders for this important planning process as we design an even more inviting Fifth Avenue.” 

“Reimagining and rebuilding our streets and public spaces is the most effective path toward neighborhood recovery, economic recovery, and long-term sustainability,” said Deputy Mayor for Economic and Workforce Development Maria Torres-Springer. “Building on the success of our Fifth Avenue Open Street, we will deliver a world-class boulevard connecting Central Park to Bryant Park and take a critical step towards a ‘New New York’ and a better, bolder city.” 

The “New New York” action plan reimagines New York’s business districts as vibrant 24/7 destinations as a critical goal for the city’s economic recovery, with public realm improvements being one key initiative. Mayor Adams’ holiday season Open Streets plan for Fifth Avenue and the area around Rockefeller Center demonstrated the clear demand for increased pedestrian space and significant benefits for local businesses — in line with the findings of the New York City Department of Transportation’s (DOT) October 2022 “Streets for Recovery” report.

The city will look to identify and implement early action improvements in 2023, with the vision plan and construction plan expected to be completed in two years. While details of today’s plan will come out of that process, Mayor Adams outlined the following key goals for his vision for Fifth Avenue:

• Transforming Fifth Avenue between Bryant Park and Central Park into an innovative pedestrian-focused space for the public to enjoy, with public realm improvements like expanded green space, new tree plantings, and enhanced lighting;
• Prioritizing sustainable modes of transportation and mass transit, including speeding up bus travel;
• Significantly increasing pedestrian space across the avenue — expanding sidewalks and prioritizing accessibility and pedestrian mobility; and
• Improving street safety, including for cycling.

The planning process will incorporate a range of data and other factors, including pedestrian traffic patterns, commuting trends based on changing work patterns, and the implementation of congestion pricing.

Early in 2023, New York City’s lead agencies — the New York City Economic Development Corporation (NYCEDC) and DOT — will contract with a design firm to begin the process. Local stakeholders will convene as part of a vision plan steering group. In addition to city and state support, the plan announced today will be funded in part by a novel public-private partnership, led by several Midtown stakeholders, including the Fifth Avenue Association, the Grand Central Partnership, the Bryant Park Association, and the Central Park Conservancy. As part of the planning process, the steering group will identify immediate and near-term improvements to the corridor using DOT’s existing street design manual to better support local businesses, pedestrians, cyclists, and other road users — accelerating the work to turn Fifth Avenue into a world-class promenade and business boulevard.

“Through the mayor’s leadership, we have shown the incredible demand for Open Streets all around New York City, but what we saw on Fifth Avenue this past month was game-changing,” said DOT Commissioner Ydanis Rodriguez. “Over December, the Fifth Avenue Open Street proved that a street that is more welcoming to pedestrians is also great for business. We look forward to working with EDC and our local partners to come up with a plan that continues to prioritize sustainable uses on this iconic street.” 

“Seeing the packed crowds move through the holiday Open Street along Fifth Avenue gives us a glimpse into the future of how we can reimagine Midtown Manhattan,” said NYCEDC President and CEO Andrew Kimball. “Coming off the heels of the ‘New New York’ action plan, this type of bold thinking and unique public-private partnership will make Fifth Avenue a more vibrant destination for New Yorkers and visitors alike.” 

“Commercial corridors, and the small businesses that make them special, are crucial to the economic well-being of our city,” said New York City Department of Small Business Services Commissioner Kevin D. Kim. “By enhancing one of our liveliest corridors for pedestrians and cyclists alike, this iconic area will attract even more tourists and residents. This plan directly promotes the desired pedestrian activity our small businesses need to continue to lead our city’s economic recovery.” 

“After two years studying this corridor, we are thrilled to work with Mayor Adams and his team on reimagining Fifth Avenue for the future,” said Ed Hogan, board chair, Fifth Avenue Association. “Fifth Avenue has been an economic powerhouse for the city and a leader in retail, tourism, and office space. However, there hasn’t been a public investment in over 100 years. The sidewalks can’t accommodate the crowds, and the streets are overly congested. Open Streets has shown how improving the pedestrian experience can draw more New Yorkers and tourists to this iconic global corridor. We thank Mayor Adams for his leadership and acknowledging the importance of Fifth Avenue to the overall resurgence of the midtown business district.”

“We are excited by the proposal for a pedestrian pathway from Central Park to Bryant Park, connecting two of New York City’s premier green spaces,” said Dan Biederman, president, Bryant Park Corporation. “This will make life more convenient for visitors and New Yorkers alike. We look forward to partnering with the city and state to make this a reality.”

“For the past four decades, Grand Central Partnership and its stakeholders have been committed to improving the shopping, working, living, and commuting experience along one of the world’s most recognizable business corridors: Fifth Avenue,” said Fred Cerullo, president and CEO, Grand Central Partnership. “By supporting the Fifth Avenue vision plan, we reaffirm our support and commitment to working with city agencies and our stakeholders to reimagine and revitalize this premier destination for years to come.”

“Fifth Avenue is among the most iconic and most heavily-used corridors in Manhattan, and a new vision that better prioritizes pedestrians, cyclists, and public transit riders will be good for all who work in and visit the area,” said Manhattan Borough President Mark Levine. “The incredible success of the holiday pedestrianization shows how transformative this process could be, and I’m looking forward to working with the mayor, the Fifth Avenue Association, advocates, and local stakeholders to make this corridor safer, more pleasant, and more welcoming for all.”

Defendant Charged With Attempted Enticement Of Nine-Year-Old Boy

 

 Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced charges against EFREM ZELONY-MINDELL for attempted enticement of one minor boy in Manhattan, New York, and possession and distribution of child pornography.  ZELONY-MINDELL was arrested this morning and will be presented in Manhattan federal court today before U.S. Chief Magistrate Judge James L. Cott.

U.S. Attorney Damian Williams said: “Zelony-Mindell allegedly attempted to engage in sexual activity with a nine-year-old boy.  The protection of children from predation remains of critical importance to this Office, and we will continue to use our resources and work with our law enforcement partners to bring offenders to justice.”

FBI Assistant Director Michael J. Driscoll said: “As alleged, Mr. Zelony-Mindell’s actions are nearly unfathomable.  Through a series of conversations with undercover FBI agents conducted on encrypted messaging platforms, he stated his desire to have sex with minor children, and he ultimately met with one of the agents who he believed would provide him an opportunity to do so.  Today’s action should serve as a reminder to anyone who seeks to prey on children - the FBI Human Trafficking and Child Exploitation Task Force and our law enforcement partners will continue to aggressively pursue you and hold you accountable.”

According to the allegations in the Complaint charging ZELONY-MINDELL:[1]

On or about April 29, 2022, an individual identified to be ZELONY-MINDELL initiated a series of conversations with an undercover FBI Special Agent (“UC-1”) on an encrypted messaging service.  In these conversations, ZELONY-MINDELL repeatedly expressed, in graphic and unambiguous terms, his desire to engage in sexual activity with minor children and sent UC-1 numerous images and videos containing child pornography. 

On or about May 9, 2022, UC-1 sent ZELONY-MINDELL, over the encrypted messaging service, the username of a second undercover FBI Special Agent (“UC-2”), posing as the father of a nine-year-old boy.  ZELONY-MINDELL contacted UC-2 over the encrypted messaging service the same day and made clear that he was interested in having sex with the nine-year-old child.  Subsequently, ZELONY-MINDELL and UC-2 had numerous communications, including over the encrypted messaging service, by text message, and over the phone.  During these conversations, ZELONY-MINDELL made clear that he wanted to engage in sexual activity, including specifically anal sex, with UC-2’s purported child.  When told by UC-2 that the child would be “knocked out a little bit” on sleep medication during the planned sexual activity, ZELONY-MINDELL agreed to have sex with the drugged child.       

UC-2 and ZELONY-MINDELL arranged to meet at on a street corner in lower Manhattan on the morning of December 16, 2022, with the understanding that they would return to UC-2’s apartment afterward and ZELONY-MINDELL would then engage in sexual activity with the child.  On the morning in question, ZELONY-MINDELL met a third FBI Special Agent (“UC-3”) at the agreed-upon location, at which time law enforcement arrested ZELONY-MINDELL. 

ZELONY-MINDELL, 35, of Fayetteville, Arkansas, is charged with one count of attempted enticement of a minor to engage in illegal sexual activity, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; one count of distribution of child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison; and one count of possession of child pornography, which carries a maximum sentence of 20 years in prison.

The minimum and maximum potential 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 work of the FBI, and, in particular, the members of the Human Trafficking and Child Exploitation Task Force. 

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 herein, constitute only allegations, and every fact described should be treated as an allegation.

DEC ANNOUNCES THIRD YEAR OF ICE FISHING CREEL SURVEY ON LAKE CHAMPLAIN

 

Surveys to be Conducted January through March 2023

New York State Department of Environmental Conservation (DEC) Commissioner Basil Seggos today announced the annual ice fishing creel survey will resume for its third year on the New York waters of Lake Champlain from January through March 2023. 

“Anglers are important partners when it comes to the management of the Lake Champlain fishery,” said Commissioner Seggos. “By participating in programs like the ice fishing creel survey, anglers provide us with information that ultimately benefits both our environment and the future of quality fishing in New York State.” 

This survey is part of an annual effort to survey both ice and open water anglers. Data gathered during these surveys will help DEC fisheries biologists better understand angler use and expectations, while also informing management actions on Lake Champlain. 

The 2023 ice fishing survey will take place at four access points: King’s Bay (Point au Fer Road); Willsboro Bay Boat Launch; Bulwagga Bay Campground; and South Bay Boat Launch. Anglers coming off the ice will be asked to participate in the creel survey by providing information about their day of fishing. They will be asked to allow the DEC creel agent to collect biological data on their catch. Collected data will include target species, number caught, and size. Voluntary participation in the survey gives anglers the opportunity to contribute to future Lake Champlain management decisions. 

A copy of the Lake Champlain Ice Fishing Creel Survey plan can be found on DEC’s website. Previous years’ reports can be found on the Adirondack/Lake Champlain Reports webpage. The 2023 ice fishing survey report will be made available later next year. 

Anglers are reminded to always follow best practices for ice safety and to Love Our New York Lands and Leave No Trace™. This includes carrying out all gear and fishing waste, especially lines and lures that could potentially harm wildlife and other users. Anglers are also encouraged to help prevent the spread of aquatic invasive species and Clean. Drain. Dry. their equipment and boats before use in a new waterbody.

Attorney General James Releases Video Footage from Investigation Into the Death of Ronald Smith

 

New York Attorney General Letitia James released video footage that her office obtained as part of its ongoing investigation into the death of Ronald Smith, who died on April 7, 2022 after an encounter with members of the New York City Police Department (NYPD).

The Office of Special Investigation (OSI) of the Attorney General’s Office released videos from police pole cameras near the incident and body-worn cameras that two officers were equipped with. The release of this video follows Attorney General James’ directive that camera footage obtained by her office in the course of an OSI investigation be released to the public in order to increase transparency and strengthen public trust in these matters.

Pursuant to New York State Executive Law Section 70-b, OSI assesses every incident reported to it where a police officer or a peace officer, including a corrections officer, may have caused the death of a person, by an act or omission. Under the law, the officer may be on-duty or off-duty, and the decedent may be armed or unarmed. Also, the decedent may or may not be in custody or incarcerated. If OSI’s assessment indicates an officer caused the death, OSI proceeds to conduct a full investigation of the incident.

The release of this footage is not an expression of any opinion as to the guilt or innocence of any party in a criminal matter or any opinion as to how or whether any individual may be charged with a crime.

Warning: These videos contain imagery that viewers may find disturbing.

Co-Founder Of Multi-Billion-Dollar Cryptocurrency Pyramid Scheme “OneCoin” Pleads Guilty

 

OneCoin Was a Fraudulent Cryptocurrency Marketed and Sold to Millions of Victims Around the World, Resulting in Billions of Dollars in Losses

 Damian Williams, the United States Attorney for the Southern District of New York, announced that KARL SEBASTIAN GREENWOOD, who co-founded OneCoin with RUJA IGNATOVA, a/k/a “the Cryptoqueen,” pled guilty today in Manhattan federal court to wire fraud and money laundering charges in connection with his participation in the massive OneCoin fraud scheme.  OneCoin, which began operations in 2014 and was based in Sofia, Bulgaria, marketed and sold a fraudulent cryptocurrency by the same name through a global multi-level-marketing (“MLM”) network.  As a result of misrepresentations that GREENWOOD, IGNATOVA, and others made about OneCoin, victims invested over four billion dollars worldwide in the fraudulent cryptocurrency. District Judge Edgardo Ramos accepted GREENWOOD’s guilty plea.  IGNATOVA, who was added to the Federal Bureau of Investigation’s Top Ten Most Wanted List in June 2022, remains at large.

U.S. Attorney Damian Williams said: “As a founder and leader of OneCoin, Karl Sebastian Greenwood operated one of the largest international fraud schemes ever perpetrated.  Greenwood and his co-conspirators, including fugitive Ruja Ignatova, conned unsuspecting victims out of billions of dollars, claiming that OneCoin would be the ‘Bitcoin killer.’  In fact, OneCoins were entirely worthless.  Greenwood’s lies were designed with one goal, to get everyday people all over the world to part with their hard-earned money — real money — and to line his own pockets to the tune of hundreds of millions of dollars.  This guilty plea by the co-founder of OneCoin caps a week at SDNY that sends a clear message that we are coming after all those who seek to exploit the cryptocurrency ecosystem through fraud, no matter how big or sophisticated you are.”

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

In 2014, GREENWOOD and IGNATOVA co-founded OneCoin,[1] a company based in Sofia, Bulgaria, that marketed a purported cryptocurrency by the same name, which was in fact a fraudulent pyramid scheme.  OneCoin operated as a MLM network through which members received commissions for recruiting others to purchase cryptocurrency packages.  This MLM structure influenced rapid growth of the OneCoin member network.  Indeed, according to OneCoin’s promotional materials, over three million people invested in fraudulent cryptocurrency packages.  OneCoin records show that, between the fourth quarter of 2014 and the fourth quarter of 2016 alone, OneCoin generated €4.037 billion in sales revenue and earned “profits” of €2.735 billion.

IGNATOVA served as OneCoin’s top leader until her disappearance from public view, in October 2017.  GREENWOOD was OneCoin’s “global master distributor” and the leader of the MLM network through which the fraudulent cryptocurrency was marketed and sold.  In a video posted online, IGNATOVA attributed to GREENWOOD the idea of marketing and selling OneCoin through an MLM network structure.  GREENWOOD earned approximately €20 million a month in his role as the top MLM distributor of OneCoin.

GREENWOOD and IGNATOVA conceived of and built the OneCoin business fully intending to use it to defraud investors.  For example, in the summer of 2014, when GREENWOOD and IGNATOVA were developing the concept for OneCoin, they referred to the cryptocurrency in email correspondence as “trashy coin.”  On June 11, 2014, IGNATOVA wrote to GREENWOOD concerning the OneCoin business plan, stating in part:

It might not be [something] really clean or that I normally work on or even can be proud of (except with you in private when we make the money) – but . . . I am especially good in this very borderline cases [sic], where the things become gray - and you as the magic sales machine - and me as someone who really can work with numbers, legal and back you up in a good and professional way - we could really make it big - like MLM meets bitch of wall street ;-)

In an August 9, 2014, email between GREENWOOD and IGNATOVA, IGNATOVA described her thoughts on the “exit strategy” for OneCoin.  The first option that IGNATOVA listed was, “Take the money and run and blame someone else for this . . . .”  And in a September 11, 2016, exchange with IGNATOVA’s brother, Konstantin Ignatov, GREENWOOD referred to OneCoin investors stating, “These ppl are idiots,” to which Ignatov responded, “as you told me, the network would not work with intelligent people ;)”

As a result of misrepresentations made by GREENWOOD, IGNATOVA, and other OneCoin representatives, victims throughout the world wired investment funds to OneCoin-controlled bank accounts in order to purchase OneCoin packages.  OneCoin falsely claimed that the value of OneCoin was based on market supply and demand, when in fact, the value of the cryptocurrency was simply set by OneCoin itself.  For example, on June 9, 2014, in an email sent by IGNATOVA to a representative of a blockchain development company, copying GREENWOOD, IGNATOVA stated, “we are building our own cryptocurrency - and would like to set up an internal exchange service for them.  We would like to be able to set the price manually and automatically and also control the traded volume.”  On March 21, 2015, IGNATOVA wrote an email to GREENWOOD, in which IGNATOVA stated, “We can manipulate the exchange by simulating some volatility and intraday pricing.”  (bold in original).  And in an August 1, 2015, email, IGNATOVA wrote to GREENWOOD, and included as part of a section of the email entitled “Goals”: “6. Trading coin, stable exchange, always close on a high price end of day open day with high price, build confidence - better manipulation so they are happy.”  The purported value of a OneCoin grew steadily from €0.50 to approximately €29.95 per coin.  The purported price of OneCoins never decreased in value.

GREENWOOD and other OneCoin leaders also claimed that the OneCoin cryptocurrency was “mined” using mining servers maintained and operated by the company.  In fact, OneCoins were never mined using computer resources.  For example, in an email to IGNATOVA dated August 11, 2014, GREENWOOD proposed, “Get members to think that they are mining their OneCoin via crunching (exchanging) tokens for OneCoin.  This storey [sic] is good as ppl will then not go super crazy and just try and sell tokens all the time.”  GREENWOOD emailed IGNATOVA the following day, writing, “The concept of converting tokens into OneCoin is an important phase for validity and truth behind the OneCoin.  The so called ‘mining’ of coins is a concept that is very familiar in the industry and a story we can sell to the members.”  IGNATOVA then wrote to GREENWOOD, “We are not mining actually - but telling people shit,” to which GREENWOOD responded, “how can this be investigated and found out?” and “Can any member (trying to be clever) find out that we actually are not investing in machines to mine but it is merely a piece of software doing this for us?”

GREENWOOD and other OneCoin leaders further claimed that OneCoin maintained a private “blockchain,” or a digital ledger identifying OneCoins and recording historical transactions.  But OneCoin lacked a true blockchain, that is, a public and verifiable blockchain. Indeed, by approximately March 2015, IGNATOVA and GREENWOOD had started allocating to OneCoin members coins that did not even exist in OneCoin’s purported private blockchain, referring to those coins as “fake coins.”

GREENWOOD and IGNATOVA promoted OneCoin, including at official OneCoin events all over the globe.  One such event, called “Coin Rush,” was held at Wembley Arena in London on June 11, 2016.  Thousands of OneCoin members attended Coin Rush.  During the event, GREENWOOD introduced IGNATOVA to the crowd, stating in part: “This is the creator, the mastermind, the founder of cryptocurrency, of OneCoin . . . Now, this will be the biggest welcoming on stage that we’ve ever done in history.”  Then, to the tune of Alicia Keys’s “Girl on Fire,” and surrounded by actual onstage fireworks, IGNATOVA strode onto the Wembley Arena stage wearing a red ball gown.  She proceeded to repeatedly and favorably compare her fraudulent cryptocurrency to Bitcoin, stating, among other things, “OneCoin . . . is supposed to be the Bitcoin killer” and “In two years, nobody will speak about Bitcoin anymore.”

On July 4, 2015, a federal holiday commemorating the independence of the United States, IGNATOVA announced the official opening of the United States market for OneCoin.  In early July 2015, GREENWOOD sent IGNATOVA an email stating in part, “I thought this could go out tonight, problem is I don’t have the access to send out to the members,” and attaching a document which announced a July 4, 2015, online webinar hosted by IGNATOVA and others to mark the official opening of the United States market for OneCoin.  Thereafter, on July 4, 2015, IGNATOVA participated in an online webinar, later posted to YouTube.com, in which IGNATOVA announced the official opening of the United States market for OneCoin.  During the webinar, IGNATOVA said, among other things, “[I]f we want to go and catch Bitcoin, we never can do this without being strong in the U.S. and without being part of the community.  So, um, this is actually why I am so excited about the U.S. as the market.  It’s something that is about prestige.  It’s a huge market.  And, um, it is, I think, a place of innovation, of Wall Street, a place where we have to be if we want to be big.”  Many victims in the United States invested in fraudulent OneCoin cryptocurrency packages, including residents of the Southern District of New York.

GREENWOOD was arrested at his residence on the island of Koh Samui, Thailand, in July 2018, and was extradited to the United States to face fraud and money laundering charges in October 2018.  GREENWOOD has been detained since his arrest in July 2018.

On October 12, 2017, IGNATOVA was charged with OneCoin-related fraud and money laundering charges in the United States District Court for the Southern District of New York and a federal warrant was issued for her arrest.  On October 25, 2017, IGNATOVA traveled on a commercial flight from Sofia, Bulgaria, to Athens, Greece, and has not been seen publicly since.  IGNATOVA was added to the FBI’s Top Ten Most Wanted List in June 2022.  The FBI is offering a $100,000 reward for information leading to IGNATOVA’s arrest.

GREENWOOD, 45, a citizen of Sweden and the United Kingdom, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum potential sentence of 20 years in prison, one count of wire fraud, which carries a maximum potential sentence of 20 years in prison, and one count of conspiracy to commit money laundering, which carries a maximum potential sentence of 20 years in prison. 

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendant will be determined by a judge.  Sentencing before Judge Ramos is scheduled for April 5, 2023.

Mr. Williams praised the outstanding investigative work of the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation, which jointly conducted this investigation with Special Agents from the U.S. Attorney’s Office.  Mr. Williams also thanked the Royal Thai Police for their assistance in the arrest of GREENWOOD.

If you have any information about IGNATOVA’s whereabouts, please contact your local FBI office or the nearest American Embassy or Consulate.  Tips can be reported anonymously and can also be reported online at tips.fbi.gov.

[1] OneCoin has operated using several corporate entities and d/b/a names, including “OneCoin Ltd.,” “OnePayments Ltd.,” “OneNetwork Services Ltd.,” “OneAcademy,” and “OneLife.” These entities and d/b/a names ar ereferred to collectively here as “OneCoin.”