Foreign National Convicted of Conspiring to Export US-Made Drill Rigs to Iran in Violation of US Sanctions Laws

A federal jury convicted Brian Assi, also known as Brahim Assi, of conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR), attempted unlawful export of goods from the United States to Iran without a license, attempted smuggling goods from the United States, submitting false or misleading export information, and conspiracy to commit money laundering.

“The defendant schemed to unlawfully export U.S.-origin mining drills to Iran, while deceiving his employer into believing that they were being sent to Iraq,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “This conviction affirms the Justice Department’s resolve to disrupt and hold accountable those who evade our sanctions against Iran, wherever in the world they may be.”

“As this verdict makes clear, no matter how hard you try to obfuscate your scheme to send restricted U.S. items to Iran, we will work tirelessly to bring your conduct to light and ensure you face justice,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Department of Commerce, Bureau of Industry and Security (BIS). “We take action whenever we uncover attempts to evade our sanctions, especially when those efforts are designed to support adversaries like Iran.”

“Efforts to conceal impermissible transactions and circumvent imposed sanctions represent a threat to both the United States economic and national security interests,” said U.S. Attorney Jason R. Coody for the Northern District of Florida. “Today’s verdict demonstrates our collective resolve to hold those who violate regulatory restrictions accountable for their criminal conduct.”

According to evidence presented at trial, Assi was a Middle East-based salesman of a multinational heavy machinery manufacturer with a U.S.-based subsidiary and production plant located in northern Florida. Assi conspired with individuals affiliated with Sakht Abzar Pars Co. (SAP-Iran), based in Tehran, Iran, to export U.S.-made heavy machinery indirectly to Iran without first obtaining the required licenses from the Office of Foreign Assets Control (OFAC).

Assi and his Iranian co-conspirators orchestrated the scheme by locating an Iraq-based distributor to serve as the forward-facing purchaser of two U.S.-origin blasthole drills from the U.S. subsidiary of Assi’s employer. The drills are a type of heavy machinery used to create holes in the ground that are then filled with controlled explosives for mining.

Assi facilitated the sale of the drills and attempted to export them to Iran and used freight forwarding companies to ship the heavy equipment from the U.S. to Turkey. In doing so, Assi concealed any Iranian involvement in the transaction from his employer, claiming the drills were ultimately destined for use in Iraq. But in truth, Assi intended for his Iranian co-conspirators to transship or reexport those items from Turkey to Iran, in circumvention of U.S. export control and sanctions laws.

In furtherance of the conspiracy, Assi concealed his activities with his Iranian co-conspirators by causing false information to be entered into the Automated Export System (AES), a U.S.-government database containing information about exports from the United States. The U.S.-based plant hired a U.S. freight forwarder to arrange the drill’s export from the United States to Iraq. As part of the shipping process, the freight forwarder submitted information to AES about the shipment, including the ultimate consignee’s name and the ultimate delivery destination. Assi misled his employer by claiming that the Iraqi distributor was the ultimate consignee, and that the ultimate delivery destination was Iraq. In fact, Assi knew that his coconspirators in Iran were the true intended recipients, and Iran was the ultimate intended delivery destination.

In furtherance of the illicit transaction, Assi and his coconspirators caused the transfer of approximately $2.7 million from Turkey to pass through the United States.

Sentencing for Brian Assi is scheduled for Jan. 7, 2025.

The BIS is investigating the case. 

Attorney General James Announces Takedown of Major Gun Trafficking Operation in Queens

 

AG’s Investigation Recovered 184 Firearms, Including 11 Assault Weapons, High-Capacity Magazines, and Hundreds of Rounds of Ammunition

Firearms Were Illegally Purchased in North Carolina and Trafficked to New York City

New York Attorney General Letitia James announced the indictments of three individuals for their roles in a gun trafficking operation that illegally trafficked and sold 184 firearms in Queens County. The 579-count indictment charges Deundre Wright, 22, Abner Sparkes, 31, and Ethan Charles, 22, all of Queens, New York with trafficking and selling numerous assault weapons, semiautomatic pistols, revolvers, high-capacity magazines, and hundreds of rounds of ammunition. An investigation led by the Office of the Attorney General (OAG) recovered 184 firearms from the operation, which transported weapons from Goldsboro, North Carolina to New York City where they were sold. If convicted, the defendants face maximum sentences of 25 years in prison. 

“The majority of guns used in crimes in New York City are illegally trafficked from other states with lax gun laws along the Iron Pipeline and are fueling deadly gun violence in our communities,” said Attorney General James. “This investigation shut down a major gun trafficking operation that brought a flood of dangerous weapons, including assault weapons, from North Carolina into New York City in the span of just a few months. I will continue to use every tool at my disposal to keep New Yorkers safe and get illegal guns off our streets. I thank our partners in this investigation for their work to stop gun violence.”

Firearms and ammunition recovered by the investigation

The takedown was the result of a joint investigation between the Attorney General’s Organized Crime Task Force (OCTF), and the U.S. Drug Enforcement Administration (DEA)’s New York Strikeforce, which includes members of the New York City Police Department (NYPD)’s DEA Firearms Task Force. The investigation included the use of controlled firearms purchase operations and physical, covert video, and electronic surveillance.

The investigation revealed that from March to July 2024, Deundre Wright was responsible for sourcing firearms in North Carolina and trafficking them to Queens where they were sold. Wright would travel by bus from Chinatown in Manhattan to North Carolina and back, storing the firearms in luggage during the trips. After transporting the guns to New York, Wright stored them at friends’ homes in Jamaica, Queens, including in cars parked at the homes. Wright would set the prices for the firearms ranging from $1,000 to $2,500 per gun, and provide them to Abner Sparkes, who would meet a customer for sales at 115th Road and 222nd Street in Cambria Heights, Queens. Sparkes would meet the customer in a car, conduct the sale, and then bring the cash back to Wright who was parked nearby monitoring the transactions.

On August 8, 2024, investigators detained Deundre Wright and Ethan Charles in Manhattan while they were exiting a bus carrying suitcases and other luggage. Investigators seized 41 firearms, including four shotguns and an inoperable rocket-propelled grenade launcher in their luggage.

The rocket-propelled grenade launcher and one of the assault weapons seized by the investigation 

The indictment — unsealed before Queens County Supreme Court Judge Leigh Cheng — charges the three individuals with multiple crimes, including Criminal Sale of a Firearm in the First Degree, Criminal Possession of a Weapon in the First Degree, and Conspiracy in the Fourth Degree, among other charges, for their participation in the illegal gun trafficking operation. Each of the three individuals have been charged with Criminal Sale of a Firearm in the First Degree and Criminal Possession of a Firearm in the First Degree, which are both class B violent felonies. If convicted of one count of either of these crimes, the defendants face a maximum of 25 years in prison.

“Often times we see drug and gun violence go hand in hand. The indictments of these three individuals are thanks to the hard work of our DEA Strikeforce, New York’s Attorney General, and our law enforcement partners, when targeting those who pose a threat to our communities through the sale of illegal firearms,” said DEA New York Division Special Agent in Charge Frank Tarentino. “The removal of over 150 firearms, which includes numerous assault weapons and semiautomatic pistols, just made the streets of New York City and our neighborhoods safer. The DEA remains committed to protecting our communities, reducing gun violence, and enhancing public safety.”

“These charges are a stark reminder that high-powered, illegal firearms continue to proliferate and circulate in our communities, and that NYPD investigators and our law enforcement partners are doing the dangerous work of preventing them from getting into criminals’ hands on the streets,” said NYPD Interim Commissioner Thomas G. Donlon. “Disrupting and dismantling gun trafficking networks is a top priority for our city. I thank everyone at Office of the Attorney General and all of our local, state, and federal partners for their hard work on this important case and for their ongoing commitment to our shared public safety mission.”

The Office of the Attorney General wishes to thank the members of the DEA New York Strikeforce and the NYPD’s DEA Firearms Task Force Officers. The Office of the Attorney General also wishes to thank the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Queens District Attorney’s Office, the Goldsboro Police Department in North Carolina, the Wayne County Sheriff’s Office, and the North Carolina State Bureau of Investigations for their valuable participation and assistance in this investigation.

The investigation was led by DEA New York Strikeforce’s Task Force Officer, NYPD Detective Ryan Foy of the NYPD’s DEA Firearms Task Force, under the supervision of NYPD Sergeant Brian O’Hanlon, Captain Jeffrey Heilig, Deputy Chief Carlos Ortiz, and Assistant Chief Jason Savino, under the overall supervision of Chief of Detectives Joseph Kenny. 

DOC DASHBOARD UPDATE: NYC Comptroller Releases New Monthly Data on Department of Correction

 

The Office of the New York City Comptroller released its monthly update to the Department of Correction (DOC) Dashboard, available here. Key monthly DOC metrics show:   

• DOC housed 6,530 individuals as of October 1, 27 more people than the previous month.  

• 1,953 individuals entered DOC custody in September, 102 fewer people than the previous month.  

• DOC discharged 1,848 people in September, 140 fewer people than the previous month. 

• The average length of a person detained in DOC custody was 96 days in September, one fewer day than the previous month’s average.   

• The correction officer-to-incarcerated person ratio is 0.92 as of September, down from a peak of 2.45 in May 2020. This ratio has steadily declined over time and has remained below 1 since March 2024. 

• 6% of staff were out sick in September, no change from the previous month. 

• 5% of staff were out on medically restricted leave in September, no change from the previous month. 

• 1,784 incidents involving the use of force occurred in Q4, 22 fewer incidents in Q3. 

• Incidents of violence in September:   

• 53 assaults on staff, 19 fewer than the previous month.   

• 30 slashings and stabbings occurred, 11 more than the previous month.   

• 649 fights, 65 more than the previous month.   

The Comptroller’s dashboard, first published in August 2022, monitors pervasive issues in the City’s jails, including staff absenteeism, missed medical appointments, and incidents of violence among detained people and staff. It also tracks the jail population every month and length of stay. The Comptroller’s Office publishes data to this dashboard monthly to provide increased transparency and accountability over the City’s jail system.  

View the DOC Dashboard here. 

EDITOR'S NOTE:

Once again in this month's DOC Dashboard the number of missed medical appointments is missing.

TWO CONSTRUCTION COMPANY OWNERS INDICTED FOR STEALING WORKERS’ PAY

 

Defendants Allegedly Owed $35,000 to Four Workers; Allegedly Defrauded NYS Insurance Fund 

Bronx District Attorney Darcel D. Clark announced that the owners of a construction company and their firm have been indicted on fraud and grand larceny charges for stealing four of their employees’ wages and for defrauding the New York State Workers Compensation Board of over $200,00 by underpaying insurance premiums. 

District Attorney Clark said, “The defendants allegedly failed to pay four of their workers their hard-earned wages, consistently promising that they would be paid and then not doing so. The defendants also allegedly failed to provide workers’ compensation coverage for them, by underpaying the premiums. These allegations are not just numbers on paper; they hurt real people. In the Bronx we value workers and fight to make sure they receive every dollar they earn.” 

District Attorney Clark said the defendants, Ashley Candelario, 31 and her uncle, Joaquin Candelario 49, both of Manhattan, the owners of Muscleman L Corporation were arraigned on October 24, 2024 before Bronx Supreme Court Justice Brenda Rivera on second-degree Insurance Fraud, Failure to Secure Workers Compensation Coverage, first-degree Scheme to Defraud and four counts of third-degree Grand Larceny. The defendants are due back in court on December 18, 2024. Orders of Protection were issued for the four employees/complainants.

According to the investigation, between March of 2022 and October of 2022, the defendants allegedly schemed to defraud multiple employees of Muscleman by stealing more than $35,000 from four workers. The defendants stole wages by promising that the workers would receive their pay as soon as Muscleman was paid by their General Contractor. However, all the while the General Contractor was paying Muscleman, the defendants did not pay the workers. The defendants allegedly failed to provide workers’ compensation insurance coverage as required by law for their employees. They allegedly misclassified the employees’ job titles and paid at a lower rate, shorting the insurance fund by over $200,000.

District Attorney Clark thanked Senior Supervising Investigator Elaine Leach and Investigative Auditor Keith Moore from the Division of Confidential Investigations within the New York State Insurance Fund for their assistance with the investigation.

An indictment is an accusatory instrument and not proof of a defendant’s guilt. 

MAYOR ADAMS WELCOMES HOME NEW YORK CITY FIRST RESPONDERS FROM DEPLOYMENT IN NORTH CAROLINA AND FLORIDA AFTER RESPONDING TO HURRICANES HELENE AND MILTON

 

Members of New York Task Force 1 Assisted with Search, Rescue, and Evacuations During Hurricanes Helene and Milton

New York City Mayor Eric Adams today welcomed home 192 members of the Urban Search and Rescue New York Task Force 1 (NY-TF1) team and the Fire Department of the City of New York (FDNY) Incident Management Team (IMT) from their deployment to North Carolina and Florida to assist with response and recovery efforts following Hurricane Helene and Hurricane Milton. NY-TF1 — whose deployment is activated by the Federal Emergency Management Agency (FEMA) — is managed by New York City Emergency Management (NYCEM) and comprises personnel from NYCEM, FDNY, and the New York City Police Department (NYPD). The teams deployed included 151 NY-TF1 members, seven NY-TF1 K9s, and 34 FDNY IMT members. 

 

“I want to welcome back the frontline heroes who helped rescue and evacuate our brothers and sisters in Florida and North Carolina in the aftermath of Hurricanes Helene and Milton,” said Mayor Adams. “In times of need, New York City is always there to lend a helping hand, and members of the NYPD, FDNY, and NYCEM helped save the lives of our neighbors down south. They are the selfless heroes who show up when we need them most, and on behalf of 8.3 million New Yorkers, thank you to the men and women of New York Task Force 1 for answering the call.” 

 

“What I love about this city is that New Yorkers never hesitate to step up, and our first responders displayed that spirit when answering the call to help our fellow Americans in their time need,” said Deputy Mayor for Public Safety Chauncey Parker. “Partnership is at the heart of everything we do, and this critical aid illustrated the seamless coordination between our public safety agencies and federal, state, and local partners. I am honored to work with this team and proud of their role in keeping communities here at home and across the country safe.” 

 

"The members of New York Task Force 1 continue to demonstrate an unparalleled commitment to service, courageous spirit, and dedication to their fellow Americans," said NYCEM Commissioner Zach Iscol. "They spent weeks in communities hundreds of miles away, saving lives and providing their expert skillset to those most in need. We are proud to welcome them home. May we honor their sacrifices and strive to embody their heroism in our work serving New York City."   

 

“We are thrilled to have all the members of New York Task Force 1 safely return home, and we are forever grateful for their life-saving efforts while deployed outside of New York City,” said NYPD Interim Commissioner Thomas G. Donlon. “As we welcome them back, we extend our heartfelt appreciation for their capabilities and selfless dedication to public service, regardless of location or circumstance.” 

 

“The work of New York Task Force 1 is incredible. The members of this team are national heroes, and we thank them for their tireless dedication to service of our country,” said FDNY Fire Commissioner Robert S. Tucker. “The partnership between the NYPD and the FDNY has never been this strong and we know the work being done together on the ground makes New York City safer. The FDNY is honored to send our highly trained members wherever needed, and aid in whatever rescue mission is ahead of them, no matter the challenge. Congratulations on a job well done.”  

 

During their deployment, NY-TF1 successfully rescued three individuals and four pets, safely evacuated 32 people and one pet, and provided assistance to 31 additional individuals. Their commitment to ensuring the well-being of those in crisis was further exemplified through shelter-in-place welfare checks conducted for 236 individuals who were unable to evacuate. The team also searched 1,459 structures and assessed damage to 4,810 structures, identifying potential risks and prioritizing safety measures. 

 

The team deployed with a number of capabilities, including in-water rescue, technical search, canine search, a medical team, and logistics coordination from a base of operations. The deployment involved wide area and canine searches, as well as the collection of geospatial data documenting damage and those sheltering in place from the devastating impacts from the hurricanes. 

 

NY-TF1 specializes in urban search and rescue, disaster recovery, and emergency triage and medicine. With a history of effective deployments that include Hurricanes Harvey, Irma, and Maria in 2017; Hurricane Florence in 2018; Hurricane Ian in 2022; and Hurricane Ida in 2023, NY-TF1 stands as a testament to New York City’s commitment to helping American communities across the nation in times of crisis. There are 28 FEMA Urban Search and Rescue teams strategically located throughout the United States that can be deployed within hours of activation. 

 

IMTs are federally trained teams of first responders responsible for overseeing large-scale long-duration incidents and emergencies, including forest fires, earthquakes, hurricanes, and other natural disasters. Following September 11, 2001, an IMT from the U.S. Forestry Service greatly assisted FDNY with the rescue and recovery effort at the World Trade Center site. From this experience, the FDNY IMT was formed to manage incidents here in New York City and across the country. The FDNY IMT has responded to multiple national emergencies including forest fires; to New Orleans following Hurricane Katrina; in Broome County, NY following Hurricane Irene; and here in New York City after Hurricane Sandy. The FDNY IMT consists of more than 180 FDNY members from all ranks in the department with specialized training in incident command, rescue operations, logistics, and planning. 

Georgia Woman Sentenced to 12 Years in Prison for $30M COVID-19 Unemployment Fraud Scheme and Firearms Charge

 

A Georgia woman was sentenced yesterday for her role in a scheme to defraud the Georgia Department of Labor (GaDOL) out of tens of millions of dollars in benefits meant to assist unemployed individuals during the COVID-19 pandemic.

Tyshion Nautese Hicks, 32, of Vienna, was sentenced to 12 years in prison, three years of supervised release, and ordered to pay restitution in an amount to be determined at a later date. Hicks’ total sentence includes a penalty of three consecutive years in prison, imposed yesterday in relation to a separate charge of illegal possession of a machine gun prosecuted by the U.S. Attorney’s Office for the Middle District of Georgia.

According to court documents and evidence presented in court, from March 2020 through November 2022, Hicks and her co-conspirators caused more than 5,000 fraudulent unemployment insurance (UI) claims to be filed with the GaDOL, resulting in at least $30 million in stolen benefits.

“In one of the largest COVID fraud schemes ever prosecuted, the defendant and her coconspirators filed more than 5,000 fraudulent COVID unemployment insurance claims using stolen identities and unlawfully obtained more than $30 million in benefits,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “In doing so, the defendant and her co-conspirators exploited a program designed to alleviate pandemic-related economic hardship to enrich themselves at the expense of federal taxpayers. Yesterday’s sentence underscores the department’s commitment to investigating and prosecuting those who steal from the public fisc.”

To execute the scheme, Hicks and others created fictitious employers and fabricated lists of purported employees using personally identifiable information (PII) from thousands of identity theft victims and filed fraudulent unemployment insurance claims on the GaDOL website. The co-conspirators obtained PII for use in the scheme from a variety of sources, including by paying an employee of an Atlanta-area health care and hospital network to unlawfully obtain patients’ PII from the hospital’s databases, and by purchasing PII from other sources over the internet. Using victims’ PII, Hicks and her co-conspirators caused the stolen UI funds to be disbursed via prepaid debit cards mailed to addresses of their choice, many of which were in and around Cordele and Vienna. Hicks additionally paid a local U.S. Postal Service (USPS) carrier to unlawfully divert mail containing debit cards loaded with over $512,000 in fraud proceeds to her and coached another co-conspirator on how to create her own fictitious employer account via Facebook Messenger.

In February, Hicks pleaded guilty to one count of conspiracy to commit mail fraud and one count of aggravated identity theft. Seven of Hicks’ co-conspirators have previously pleaded guilty or been sentenced in the investigation.

“Tyshion Nautese Hicks and her co-conspirators used the stolen PII of unwitting victims to file numerous fraudulent claims for UI benefits with the Georgia Department of Labor,” said Special Agent in Charge Mathew Broadhurst of the U.S. Department of Labor, Office of Inspector General (DOL-OIG) Southeast Regional Office. “We will continue to work with our federal and state law enforcement partners to safeguard UI benefit programs for those who need them.”

“The sentence received by the defendant is the outcome of IRS Criminal Investigation’s commitment to investigating and prosecuting those who attempt to defraud various agencies by filing fraudulent claims using another person’s identifying information,” said Special Agent in Charge Demetrius Hardeman of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office.

“Postal Inspectors will continue to work with our law enforcement partners to hold individuals accountable for engaging in fraudulent schemes to manipulate the COVID-19 program for their own financial gain,” said Inspector in Charge Tommy D. Coke of the U.S. Postal Inspection Service (USPIS) Atlanta Division. “The sentencing should serve as a deterrence and shows that this type of behavior will not be tolerated.”

“Yesterday’s sentencing underlines our commitment to holding those who exploit federal relief programs for personal gain accountable,” said Special Agent in Charge Jonathan Ulrich of the USPS Office of Inspector General (USPS-OIG). “As proven in this case, our criminal investigators along with our law enforcement partners will work together and diligently pursue anyone who attempts to exploit programs created to help legitimate people and businesses affected by the global pandemic.”

“Hicks chose to commit fraud, further depleting limited funds designated to help individuals struggling to survive during the pandemic,” said Special Agent in Charge Frederick D. Houston of the U.S. Secret Service (USSS) Atlanta Field Office. “She and her co-conspirators also stole the personally identifiable information, caring only about self-enrichment, not the lives adversely affected. This case signifies our commitment to protect citizens and businesses from fraud and identity theft. We will continue to work with our local, state, and federal law enforcement partners to prosecute those who abuse these programs.”

“Homeland Security Investigations will aggressively pursue those who exploit unemployment benefits meant for those in need, ensuring that justice is served, and resources are preserved for legitimate claimants,” said Acting Special Agent in Charge Steven N. Schrank of the Homeland Security Investigations (HSI) Atlanta Office.

“Yesterday’s sentencing sends a clear message that those committing fraud will be held accountable,” said Inspector General Joseph V. Cuffari of the Department of Homeland Security Office of Inspector General (DHS-OIG). “DHS-OIG and our law enforcement partners will continue to prioritize protecting our country from these kinds of schemes.”

DOL-OIG, IRS-CI, USPS-OIG, USPIS, USSS, HSI, and DHS-OIG investigated the case.

Trial Attorneys Lyndie Freeman, Siji Moore, Matthew Kahn, and Andrew Jaco of the Criminal Division’s Fraud Section prosecuted the fraud case.

On May 17, 2021, Attorney General Merrick B. Garland established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.