Six Men Sentenced For Illegally Transmitting More Than $15 Million Dollars Using Halawa Network

 

Jay Clayton, the United States Attorney for the Southern District of New York, and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that HIRENKUMAR PATEL, the last of six defendants in a case involving an unlicensed money transmitting business that illegally sent millions of dollars in cash throughout the U.S. and between the U.S. and India, was sentenced to 21 months in prison by U.S. District Judge Kenneth M. Karas.  PATEL previously pled guilty to one count of conspiracy to operate an unlicensed money transmitting business and one count of operation of an unlicensed money transmitting business on September 12, 2024, before U.S. Magistrate Judge Victoria Reznik. 

“The anonymous transmission of money is a linchpin of international criminal activity, whether hacking, drug dealing, sex trafficking, or terrorism” said U.S. Attorney Jay Clayton.  “Unlicensed money transmission organizations, like the ‘halawa’ network operated by Patel and his cohorts, are tailor made for supporting international criminal activity.  Together with our law enforcement partners, we will seek to shut down these unlicensed networks and stop the flow of dirty money to criminals who do harm to Americans from abroad.” 

FBI Assistant Director in Charge Christopher G. Raia said: “These six defendants engaged in an unregulated money transferring scheme responsible for illegally transmitting $15 million in less than a year.  Illicit financial schemes like this one cause damage to our economic system that extends beyond the directly involved bad actors.  The sentencings announced today demonstrate the FBI’s commitment to ensuring those who attempt to carry out illegal financial schemes face the repercussions in the criminal justice system.”

According to allegations contained in the Complaint, the Information, court filings, and public court proceedings:

In or about April 2021, law enforcement identified a vendor (“Vendor”) on the dark web who was offering, in exchange for a fee, a service to convert cryptocurrency into cash.  The Vendor indicated to an undercover agent that some of his clients made money by selling drugs, his wealthiest clients were hackers, and that he had made approximately $30 million over the prior three years through the conversion of cryptocurrency to cash.

In or about February 2023, law enforcement began working with a confidential source and learned that the Vendor was using a “hawala”[1] to obtain the cash that was ultimately exchanged for the cryptocurrency.  As part of this hawala, several of the defendants collected cash along the East Coast of the U.S., which was later delivered to an individual who mailed the cash to the Vendor’s customers.  All six defendants participated in the delivery of, and/or coordinated the delivery of, the collected cash.  The persons who supplied the cash for collection, in turn, used the hawala to have their cash converted into rupees delivered to designated individuals in India.

Of the approximately $15 million sent through the hawala between in or about February 2023 and in or about September 2023, PATEL was responsible for participating in 42 deliveries of bags of cash totaling more than $7.7 million.  Neither PATEL nor his co-defendants were licensed or registered to operate as a money transmitting business in New York or under federal law.

A chart containing the names of the defendants, the charges they were convicted of, and the sentences they received is set forth below.

Mr. Clayton praised the outstanding work of the FBI, the U.S. Postal Inspection Service, and the U.S. Attorney’s Office for the Eastern District of Kentucky in connection with this investigation.

Defendant	Age	Convictions	Sentence
Rajendrakumar Patel	52	Conspiracy to Operate an Unlicensed Money Transmitting Business and Operation of an Unlicensed Money Transmitting Business	27 months in prison
Brijeshkumar Patel	32	Conspiracy to Operate an Unlicensed Money Transmitting Business and Operation of an Unlicensed Money Transmitting Business	18 months in prison
Hirenkumar Patel	40	Conspiracy to Operate an Unlicensed Money Transmitting Business and Operation of an Unlicensed Money Transmitting Business	21 months in prison
Naineshkumar Patel	51	Conspiracy to Operate an Unlicensed Money Transmitting Business and Operation of an Unlicensed Money Transmitting Business	12 months and one day in prison
Nileshkumar Patel	33	Conspiracy to Operate an Unlicensed Money Transmitting Business and Operation of an Unlicensed Money Transmitting Business	3 years of probation
Shaileshkumar Goyani	36	Conspiracy to Operate an Unlicensed Money Transmitting Business and Operation of an Unlicensed Money Transmitting Business	Time served

New York State Announces 12th Annual Invasive Species Awareness Week Begins June 9

 

Free Public Events Scheduled across New York State to Engage and Educate New Yorkers about Invasive Species

The New York State Departments of Environmental Conservation (DEC) and Agriculture and Markets (AGM) and New York Sea Grant (NYSG) announced that the State's 12^th annual Invasive Species Awareness Week (ISAW) begins Monday, June 9. Free public events, including webinars, hands-on workshops, guided hikes and paddles, and invasive species challenges will be offered online and across the state from June 9 to 15. Governor Kathy Hochul issued a proclamation designating ISAW (PDF) to support the annual campaign to encourage New Yorkers to learn more and participate in the fight against the negative impacts of invasive species.

“Invasive Species Awareness Week is an opportunity to further educate and engage New Yorkers about the need to protect our environment, economy, and public health from the risks posed by invasive species,” DEC Commissioner Amanda Lefton said. “Invasive species jeopardize the health of our native plant and animal communities, as well as the open spaces New Yorkers cherish for recreation, biodiversity, beauty, and the well-being of our communities. Working together, we can help safeguard New York’s rich biodiversity and ensure the resilience of our natural resources."  

"We work closely with our fellow State agencies to combat the spread of harmful invasive species that can damage our agricultural crops, trees, and natural habitats,” State Agriculture Commissioner Richard A. Ball said. We’re grateful to the New Yorkers that have been instrumental in helping the State keep a watchful eye out for these invasive species of all kinds. With their assistance, we have been able to better monitor and, as a result, slow the spread of these invasives. We encourage citizens to join us during Invasive Species Awareness Week to learn more about how they can help to spot, identify, and protect against these non-native species."

Invasive species are plants, animals, insects, and pathogens that are not native to an area and cause harm to the environment, agriculture, economy, or public health. New York is particularly vulnerable to these pests due to its role as a center for international trade and travel.  

To participate in an ISAW event, visit the NY Invasive Species Awareness Week 2025 page on the nyis.info website to find a complete list of offerings. Registration information and full event details can be found by clicking on individual events. On Monday, June 9, New York Sea Grant will provide an overview of how to use the newly redesigned nyis.info website, which provides easy access to resources and information for addressing invasive species infestations and impacts.

DEC leads a comprehensive program to promote education, research, management, and control related to invasive species across New York State. This includes aquatic invasive species like hydrilla, round goby, and northern snakehead, as well as terrestrial plants including giant hogweed, Japanese knotweed, and kudzu. DEC also tracks and manages forest pests such as southern pine beetle, beech leaf disease, and hemlock wooly adelgid. DEC works with numerous partners and administers eight New York State Partnerships for Regional Invasive Species Management (PRISMs), which educate residents and visitors about how everyone can protect their lands, water, and forests from invasive species. ISAW educates New Yorkers to together to spread the word, not the species.

AGM works to control and eradicate various invasive species, such as spotted lanternfly, European cherry fruit fly, and Asian longhorned beetle, which can harm New York’s agricultural crops, particularly grapes, hops, and fruit trees. Staff conduct annual surveys for each of these pests and inspect the state’s nearly 9,000 greenhouses, retail markets, and nursery growers and dealers for compliance with invasive plant regulations. Horticultural inspectors also monitor for invasive pests and diseases, such as European pepper moth and boxwood blight that are harmful to New York’s lands. Learn more about the invasive species that are a concern for New York agriculture at agriculture.ny.gov/plant-industry/plant-health.   

NYSG provides science-based information, education, curricula, and research related to aquatic invasive species and to promote coastal vitality, environmental sustainability, and citizen awareness of New York State’s marine and Great Lakes resources. Updates on NYSG activities are available at nyseagrant.org and on Facebook, X, and YouTube.

In the recently enacted FY 2025-26 State Budget, Governor Hochul increased the New York State Environmental Protection Fund (EPF) to a record $425 million, the highest level of funding in the program's history. EPF funding is a critical resource for environmental programs such as land acquisition, farmland protection, invasive species prevention and eradication, recreation access, water quality improvement, and environmental justice projects. The budget includes a renewed $18.5 million in funding to manage invasive species.

Everyone can make a difference in the fight against invasives by helping to locate and map infestations, using only local firewood, properly cleaning watercraft before and after boating, cleaning dirt off boots after hiking, or removing invasive species from the yard. To learn more about invasive species and how to get involved, visit DEC's website.

Comptroller Lander’s Survey of Over 600 School Principals Reveals Major Gaps in Afterschool Access for Students with Disabilities

 

New York City Comptroller Brad Lander surveyed over 600 school principals, revealing that the City’s afterschool programs left out students with disabilities. The report finds that schools serving students with the most intensive needs—especially District 75 schools—lack access to core afterschool funding, appropriate vendors, and basic bus transportation.  

With 62,000 students relying on IEP-mandated busing, the report raises major red flags about the equity of Mayor Adams’s proposed “universal” afterschool expansion—and outlines a clear roadmap for fixing it, including rebidding the City’s school bus contracts to secure reliable, inclusive transportation. With the State legislative session wrapping up and the City’s school bus contracts set to expire on June 30th, the report calls on both City and State leaders to take urgent action to finally address this long-standing gap in afterschool access as the City designs and rolls out its universal afterschool program. 

“Afterschool programs are essential for student success and support working families” said Comptroller Brad Lander. “The Mayor’s promise of universal afterschool rings hollow while his administration fails to meet the needs of students with disabilities who make up more than one-in-five of all New York City public school children. For the City’s ‘Afterschool for All’ initiative to live up to its name, City Hall must treat the inclusion of students with disabilities as a core commitment, not an afterthought.” 

Comptroller Lander released the report on Thursday morning ahead of the All Means ALL rally in front of City Hall, joined by leaders from Advocates for Children of New York, Alliance for Quality Education, Arise Coalition, Center for Independence of the Disabled (NY), the Citywide Council for District 75, Include NYC, Inter Agency Council, New York Appleseed, Parents to Improve School Transportation, and others. The rally highlighted the systemic barriers students with disabilities face including afterschool access, inaccessible school buildings and a shortage of special education preschool seats—within a chronically under-resourced school system that often falls short of their legally mandated needs.  

Mayor Adams’ recently announced $331 million investment to expand afterschool programming, which was billed as a response to growing demand amid the City’s growing affordability crisis. However, the Mayor’s proposal overlooks students with disabilities, ignores the chronic systemic issues with funding and transportation, and still falls short of meeting the citywide need. Twenty-two percent of public school students with disabilities—including the 60,000 students with Individual Education Plan (IEP) mandated school bus transportation—face acute afterschool needs. According to the Comptroller’s survey of over 600 school principals, only 74% of District 75 respondents reported having any afterschool programming at all, compared to 93% of other schools. 100% of District 75 respondents cited lack of bus transportation as a major barrier to participation. The City’s 46-year-old bus contracts exclude afterschool service entirely, effectively locking out thousands of students.  

At the same time, the City’s primary source for after school funding is through the Department of Youth and Community Development (DYCD), which partners with community-based organizations that often lack the capacity to serve students with complex needs, however DYCD excludes District 75 programs and leaves schools to cover afterschool programming out of their own limited budgets to pay their own staff per session to provide afterschool programming. As a result, the Mayor’s planned expansion of DYCD funding through his Afterschool for All program fails to address the specific needs of students with disabilities and will leaves tens of thousands of students without access to the very programs it promises to expand.  

Key Findings 

To better understand the City’s existing afterschool ecosystem, the Comptroller’s Office surveyed more than 600 public school principals and analyzed historical school bus performance data released publicly by the Department of Education (DOE) data: 

• Twenty-six percent of District 75 schools lack after-school programs, compared to just 7% of schools elsewhere.  

• Nearly a third of all survey respondents and 100% of District 75 respondents named the lack of school bus transportation as a barrier to student afterschool participation. 

• DOE provides contracted school bus service to 145,000 students, including an estimated 60,000 students with disabilities who have IEP mandated transportation—this number grew 9% over the last three school years. 

• The Mayor’s plan expects to increase the total number of publicly funded afterschool seats to 220,351 students, however, the Comptroller’s office estimates schools will need 392,000 additional afterschool seats. Given the number of students with IEPs that rely on bus service, and estimated 15% of these unfunded seats represent students with disabilities.  

Transportation remains a key barrier to access. Unfortunately, DOE’s outdated bus contracts, many virtually untouched since 1979, fail to provide adequate service and do not cover afterschool, weekend programs, or Summer Rising. A 2011 State Cout of Appeals decision blocks DOE from rebidding these contracts and including critical labor protections. The report underscores that the passage of Senate bill S1018/Assembly bill A8440 at the state level, would empower DOE to competitively rebid and modernize its contracts.  

Key Recommendations 

Comptroller Lander urges the City and State to build toward a truly universal system of afterschool that includes all students with disabilities. 

• Create dedicated afterschool funding for District 75 programs 

• Survey schools annually on afterschool needs 

• Increase City Council investment in the Cultural Afterschool Adventures (CASA) arts program, with a focus on District 75 programs.  

• Pilot a specialized Multiple Task Award Contract (MTAC) to help District 75 schools access appropriate afterschool vendors 

• Collaborate with the United Federation of Teachers (UFT) to offer afterschool per session bonuses for special education staff 

Rebid Bus Contracts: 

• Pass New York State Legislative bill S1018/A8440, to allow DOE to use employee protection provisions in new bus contracts.  

• Until this legislation is passed, the NYC DOE should avoid long-term extensions when the school bus contracts expire in June 2025 to keep the door open for a rebid that includes stronger worker protections and afterschool service. 

• Competitively rebid school bus contracts with updated terms, including afterschool, Summer Rising, and Saturday service 

Students with disabilities face systemic barriers far beyond after-school access—from inaccessible buildings to a shortage of special education preschool seats—within a chronically under-resourced school system that often fails to meet their legally mandated needs. For the Mayor’s universal afterschool plan to live up to its name, the City must fix the unresolved funding and transportation issues that prevent students with disabilities from participating in afterschool programs. 

 Read the Comptroller’s report: https://comptroller.nyc.gov/reports/stranded-after-school/

Attorney General James Stops Illegal Online Sweepstakes Casinos

 

26 Online Casinos Offered Players Casino Games and Sports Betting Using Virtual Sweepstakes Coins Exchangeable for Cash and Prizes

New York Attorney General Letitia James announced that her office has stopped online sweepstakes casinos operating in New York. The Office of the Attorney General (OAG), working with the New York State Gaming Commission, identified 26 online platforms offering players slots, table games, and sports betting using virtual coins that could be exchanged for cash and prizes. New York law prohibits online platforms from offering gambling that involves risking something of value, including virtual coins that can be redeemed for cash or prizes. Online sweepstakes casinos are not subject to audits and other regulatory oversight by the state to ensure that games are not rigged, putting New Yorkers at risk. Attorney General James sent cease and desist letters to the operators of these platforms, demanding that they stop all prohibited gambling activity in the state, and as a result, all 26 platforms are ending the sale of sweepstakes coins in New York.

“Online sweepstakes casinos are illegal, dangerous, and can seriously ruin people’s finances,” said Attorney General James. “I thank the New York State Gaming Commission and Senator Addabbo for partnering with my office on this issue to protect New Yorkers.”

“These so-called ‘sweepstakes’ games are unscrupulous, unsecure, and unlawful,” said New York State Gaming Commission Chairman Brian O’Dwyer. “I have been very vocal about the need to crack down on these operations, and I am thrilled that Attorney General James has taken this significant step to eradicate the illegal gambling market. We encourage those of age who wish to gamble to do so with legal operators.”

Sweepstakes casinos allow users to play traditional casino games, including slot machines, blackjack, and sports betting, using virtual sweepstakes coins that can be redeemed for cash or prizes, such as Amazon gift cards. Players typically purchase these virtual sweepstakes coins as part of a package with other virtual currency. Under New York law, betting cash-redeemable virtual coins on games of chance constitutes gambling, regardless of how the casino operator characterizes how players can obtain the virtual coins.

Placing a bet at a sweepstakes casino is risky because sweepstakes casinos are not subject to audits and other regulatory oversight by the state. Without oversight, players have no way of knowing whether a sweepstakes casino’s games are rigged, whether it will be able to cover a winning bet, or whether it complies with the many other consumer protection measures required of legal, licensed casinos under New York law.  Attorney General James warns New York consumers to steer clear of sweepstakes casinos. 

As a result of the cease and desist letters sent by Attorney General James, the operators of the following sweepstakes casinos are ending the sale of sweepstakes coins in New York: 

• Chanced
• Chumba
• DingDingDing
• Fliff
• Fortune Coins
• Fortune Wheelz
• Funrize
• FunzCity
• Global Poker
• Golden Hearts Games
• High 5 Casino
• Jackpota
• Luckyland
• McLuck
• Mega Bonanza
• NoLimitCoins
• Play Fame
• RealPrize
• Sidepot
• SpinBlitz
• Sportzino
• SweepSlots
• Sweeptastic
• TaoFortune
• Yay Casino
• Zula Casino

For those seeking help with problem gambling, resources and support are available through New York State’s Office of Addiction Services and Support. Individuals seeking help can also call New York state’s free and confidential HOPEline, available 24/7, at 1-877-8- HOPENY (1-877-846-7369) or text HOPENY (467369).