MAYOR ADAMS CELEBRATES HISTORIC PROGRESS REVITALIZING CONEY ISLAND, ANNOUNCES PARTNERSHIPS TO BUILD ROUGHLY 1,100 NEW HOMES

 

Coney Island Phase III Project Will Create 420 New Units of Affordable Housing, Community Facility Space, Commercial Space 

Coney Landing Project Will Create Nearly 180 Additional New Units of Affordable and Supportive Housing

City Advancing Coney Island West Redevelopment RFP, Planning to Select Developer This Year for 500+ Unit Mixed-Income Housing Development

Announcement Part of Mayor Adams’ “City of Yes for Families” Plan, Builds on Adams Administration’s Record as Most Pro-Housing Administration in New York City History

New York City Mayor Eric Adams, New York City Economic Development Corporation (NYCEDC) President and CEO Andrew Kimball, and New York City Department of Housing Preservation and Development (HPD) Acting Commissioner Ahmed Tigani today announced next steps in the Adams administration’s bold vision for the future of Coney Island, Brooklyn that will deliver approximately 1,100 homes — including over 720 affordable and supportive homes — to New Yorkers. Mayor Adams announced that the city will partner with BFC Partners Development LLC to continue the success of the ongoing Coney Island project with Coney Island Phase III, which will bring 420 additional affordable homes to the area. To help support this development — which will also include roughly 10,700 square feet of commercial space and approximately 9,700 square feet of community facility space — the Adams administration will contribute over $90 million in subsidy to this project. Additionally, the New York City Housing Development Corporation (HDC) is issuing bonds to support a $116 million construction loan. Moreover, Mayor Adams announced that the city will partner with Settlement Housing Fund Inc. to build 178 more units of affordable and supportive housing as part of the Coney Landing Project nearby. Finally, after receiving a robust response to its request for proposals (RFP) earlier this year to build over 500 new units of housing on a city-owned lot along Surf Avenue, NYCEDC is aiming to select a developer by the end of the year to bring the project to life. When combined, all three projects will create approximately 1,100 new homes across Coney Island in the next three years.

Today’s progress comes as the city is investing in new streets, sewers, and public realm improvements in Coney Island, including a $42 million renovation of the Abe Stark Sports Center. Today’s announcement continues Mayor Adams’ “City of Yes for Families” plan to create thousands of new homes across the city and build more family-friendly neighborhoods from Coney Island to Inwood. City of Yes for Families builds on the Adams administration’s record as the most pro-housing administration in New York City history. In addition to creating record amounts of affordable housing two years in a row, passing the first citywide zoning reform in 60 years, and advancing five neighborhood plans to create jobs and new housing across the city, new housing creation through City of Yes for Families will help New York City reach Mayor Adams’ moonshot goal of creating 500,000 new homes by 2032.

“Finding a home in Coney Island should not be a rollercoaster ride. That’s why we’re creating 1,100 new homes in this neighborhood so that more families can live in this iconic New York City community,” said Mayor Adams. “Along with tens of millions of dollars for new streets, sewers, and a renovated ice rink, these homes will make sure that Coney Island is not only a great place for families to spend time together but also a great place to live as well. But we’re not stopping with Brooklyn — our administration is shattering affordable housing records, year after year, and advancing generational projects across all five boroughs to make New York City the best place to raise a family.”

“From Nathan’s to Deno’s, there’s nowhere quite like Coney Island. We want to make sure that more families can afford to live in this iconic neighborhood, which is why our administration is advancing ambitious projects to bring roughly 1,100 new homes to the area,” said Deputy Mayor for Housing, Economic Development, and Workforce Adolfo Carrion, Jr. “Ultimately, though, these are more than just numbers in a press release. These are real homes where families will develop and grow. They are the reason this work is so important and the reason we are proud to call ourselves the most pro-housing administration in New York City history.”

“These new housing investments in Coney Island reinforce the Adams administration’s continued legacy as the most pro-housing administration in recent history,” said Executive Director for Housing Leila Bozorg. “Together, HPD, EDC, and their many public- and private-sector partners are going to bring thousands of units to Coney Island that will further elevate Coney Island’s history as one of the city’s most dynamic and heralded communities.”

“Our mission is as clear as it is urgent: to make sure that every New Yorker has a safe, stable, and affordable place to call home. Delivering more affordable housing in Coney Island is an opportunity to invest in a community with deep roots, to support an area with enduring cultural significance, and to open up thousands of new homes for families across the five boroughs,” said HPD Acting Commissioner Tigani. “Today, our administration is not just making progress — we're building momentum. From Inwood to Coney Island, HPD and the entire Adams administration is driving forward with a deep commitment to creating a fairer, more accessible city across every zip code.”

“These transformative housing investments in Coney Island are not only creating homes — they’re fueling economic growth, generating good-paying jobs, and laying the foundation for a more vibrant local economy,” said NYCEDC President and CEO Kimball. “Under the Adams administration, there has been historic momentum and investment to ensuring that Coney Island’s future is as dynamic and inclusive as its storied past.”

Coney Island Phase III will bring 420 new affordable homes to the area, as well as community and commercial space. Credit: S9Architecture

Coney Island Phase I — completed in 2023 — created 446 affordable housing units as well as 15,000 square feet of retail space and 66,000 square feet of new office space for use by the New York City Housing Resources Administration. Coney Island Phase II continued those efforts with another 376 units, including 57 set aside for formerly homeless individuals, as well as 11,000 square feet of retail space, 9,000 square feet of community space, and a 2,500 square-foot NYC Health + Hospitals health care facility. With Coney Island Phase III at 1709 Surf Avenue, the Adams administration will help bring another 420 units to the site for a total of over 1,200 homes across all three phases.

Coney Landing will bring over 178 units of supportive and affordable housing to Coney Island. Credit: ESKW/Architects.

Additionally, the Coney Landing development nearby at 2952 West 28^th Street will include one residential building with 178 units of affordable and supportive housing, as well as one superintendent unit. That will include 108 units of supportive housing available for tenants earning 30 percent of the area median income (AMI) or below, as well as another 62 units of affordable housing available for tenants earning 60 percent AMI or below. Additionally, eight units will be designated part of the New York City Housing Authority’s (NYCHA) Project-Based Voucher program, offering Section 8 rental assistance to the occupants of those units. The Adams administration will contribute over $40 million in subsidies to this project, while HDC will also issue bonds to support a $60 million construction loan. 

Along with tens of millions of dollars for a renovated Abe Stark Center, new streets, and an improved public realm, the Adams administration is advancing plans for more than 500 mixed-income homes on Surf Avenue. Credit: ONE Architecture & Urbanism 

Moreover, the Adams administration is advancing plans for more than 500 mixed-income homes — 25 percent of which will be affordable — and additional parking for the public along Surf Avenue between West 21^st and West 22^nd Streets, a location known as “Parcel A.” Along with Parcel A, the city will advance the development of nearly 1,500 new homes on city-owned sites near the ballpark, boardwalk, and Abe Stark Center. Development of this area, known as “Coney Island West,” began with the construction of two affordable housing projects — Surf Vets Place and Raven Hall — which opened in 2019 and 2022, respectively. An additional affordable housing project — Luna Green — is currently under construction on the same block and another residential building is in the planning phase. New streets — Ocean Way and West 20^th  — were recently completed to accompany development, with two additional streets expected to accompany the later stage of development. The result will be a vibrant beachfront district where Coney residents and visitors live, work, and play.

Following the rezoning of Coney Island in 2009, the area has undergone a remarkable revitalization fueled by public-private partnerships. NYCEDC, in partnership with city agencies and the Metropolitan Transportation Authority, has catalyzed this transformation with over $750 million in public investment over the past 15+ years — revitalizing the amusement district, generating over 3,400 new homes, and delivering neighborhood infrastructure like new sewers and streets.

Since entering office, Mayor Adams has made historic investments to create more affordable housing and ensure more New Yorkers have a place to call home. The Adams administration is advancing several robust neighborhood plans that, if adopted, would deliver more than 50,000 units over the next 15 years to New York neighborhoods. In addition to the Bronx-Metro North Station Area Plan and the Atlantic Avenue Mixed-Use Plan, both of which have been passed by the New York City Council, the Adams administration is advancing plans in Midtown South in Manhattan, as well as Jamaica and Long Island City in Queens.

 

Moreover, last December, Mayor Adams celebrated the passage of “City of Yes for Housing Opportunity,” the most pro-housing proposal in city history that will build 80,000 new homes over 15 years and invest $5 billion towards critical infrastructure updates and housing. Last June, City Hall and the City Council agreed to an on-time, balanced, and fiscally-responsible $112.4 billion Fiscal Year (FY) 2025 Adopted Budget that invested $2 billion in capital funds across FY25 and FY26 to HPD and NYCHA’s capital budgets. In total, the Adams administration has committed $24.7 billion in housing capital in the current 10-year plan as the city faces a generational housing crisis. Mayor Adams celebrated back-to-back record breaking fiscal years, as well as back-to-back calendar years, in both creating and connecting New Yorkers to affordable housing. Last spring, the city celebrated the largest 100 percent affordable housing project in 40 years with the Willets Point transformation. 

 

Building on the success of City of Yes for Housing Opportunity, Mayor Adams unveiled his City of Yes for Families strategy earlier this year to build more homes and create more family-friendly neighborhoods across New York City. Under City of Yes for Families, the Adams administration is advancing more housing on city-owned sites, creating new tools to support homeownership, and building more housing alongside schools, playgrounds, grocery stores, accessible transit stations, and libraries.

 

Further, the Adams administration is using every tool available to address the city’s housing crisis. Mayor Adams announced multiple new tools, including a $4 million state grant, to help New York City homeowners create accessory dwelling units that will not only help older adults afford to remain in the communities they call home but also help build generational wealth. In addition to creating more housing opportunities, the Adams administration is actively working to strengthen tenant protections and support homeowners. The Partners in Preservation program was expanded citywide in 2024 through an $24 million investment in local organizations to support tenant organizing and combat harassment in rent-regulated housing. The Homeowner Help Desk, a trusted one-stop shop for low-income homeowners to receive financial and legal counseling from local organizations, was also expanded citywide in 2024 with a $13 million funding commitment.

 

Finally, Mayor Adams and members of his administration successfully advocated for new tools in the 2024 New York state budget that will spur the creation of urgently needed housing. These tools include a new tax incentive for multifamily rental construction, a tax incentive program to encourage office conversions to create more affordable units, lifting the arbitrary “floor-to-area ratio” cap that held back affordable housing production in certain high-demand areas of the city, and the ability to create a pilot program to legalize and make safe basement apartments.

DA KATZ AND NYPD TAKE 74 GUNS OFF THE STREETS AT BUYBACK EVENT WITH GREATER ALLEN A.M.E. CATHEDRAL IN SOUTHEAST QUEENS

 

Queens District Attorney Melinda Katz announced that 74 guns were collected Saturday at the Greater Allen A.M.E. Cathedral of New York in Southeast Queens during a gun buyback event. The weapons were exchanged for bank cards pre-loaded with cash. The event was completely anonymous, with no identification required and no questions asked.

The buyback is the 11th of DA Katz’s administration and a total of 617 firearms have been recovered to date.

District Attorney Katz said: “Gun buybacks serve as a critical tool for reducing gun violence and promoting public safety within our communities. This Saturday, working with the NYPD and clergy leaders in Jamaica, we received 74 surrendered guns – including five automatic weapons. As a result, these firearms will not be used to cause heartache and tragedy. We thank our partners at the Greater Allen A.M.E. Cathedral for hosting us and look forward to hosting additional buyback events in the near future.”

NYPD Commissioner Jessica S. Tisch said: “Taking illegal guns off our streets saves lives and stops senseless violence before it can happen. So far this year, the NYPD has recovered more than 2,400 firearms and gun violence is at a historic low for the first five months of the year. That’s why gun buybacks are essential because every gun surrendered is a tragedy averted. I’m grateful for our continued partnership with the Greater Allen A.M.E. Cathedral of New York, the Queens District Attorney’s Office and the New York State Attorney General’s Office, who work tirelessly to keep our city safe.”

State Attorney General Letitia James said: “Every illegal gun taken off the streets of Queens today is a potential tragedy avoided and life saved. My office thanks District Attorney Katz and our partners in law enforcement for organizing today’s gun buyback and empowering New Yorkers to turn in their unwanted guns. We will continue to protect communities across New York and be a part of the solution against gun violence.”

The guns turned in were:

• 28 revolvers
• 23 pistols
• Five assault weapons
• Four 3D-printed ghost guns
• Three shot guns
• Two rifles
• One derringer pistol
• Eight non-specified operable weapons

The event was co-sponsored by the Office of New York State Attorney General Letitia James.

Colombian Money Broker Sentenced to Nearly a Decade in Prison for Role in International Money Laundering Conspiracy

 

Defendant laundered over $1.95 million in drug proceeds

A Colombian man has been sentenced in federal court in Boston for his involvement in a sophisticated international money laundering organization that laundered more than $6 million in drug trafficking proceeds from Colombian cartels through the United States, Caribbean and European banking systems.

Jaime Humberto Mejia-Bencardino, 62, was sentenced by U.S. District Court Judge Richard G. Stearns to 115 months in prison. On Dec. 11, 2024, Mejia-Bencardino pleaded guilty to one count of money laundering conspiracy and 16 counts of laundering of monetary instruments. He was extradited at the request of the United States to face the charges in this case and is subject to deportation upon completion of the sentence imposed.

Mejia-Bencardino was among 20 individuals from Colombia, Jamaica and Florida who were indicted by a federal grand jury in May 2022 in connection with the money laundering conspiracy. 

Over the course of the investigation, $1 million was seized from corporate bank accounts and other investigative activity. Nearly 3,000 kilograms of cocaine – with a street value of over $90 million – was traced back to the money laundering organization. This includes approximately 1,193 kilograms of cocaine seized at sea, 60 miles south of Jamaica, in July 2019, as well as 1,555 kilograms of cocaine seized in nine scrap metal shipping containers at the Port of Buenaventura, Colombia, in March 2019.

In or about October 2016, law enforcement began an investigation into a sophisticated money laundering organization located primarily in Barranquilla, Colombia. During an extensive five-year investigation, the organization laundered over $6 million in drug proceeds through intermediary banks in the United States, including banks in Massachusetts, as well as additional proceeds through banks in the Caribbean and Europe by use of the Colombian Black Market Peso Exchange (BMPE). By using the BMPE, the defendants and their co-conspirators sought to conceal drug trafficking activity and proceeds from law enforcement as well as evade currency exchange requirements in the United States and Colombia through the illegal currency exchange process. As part of the conspiracy, members of the organization held roles and responsibilities relative to the needs and opportunities of the scheme, such as drug suppliers, peso brokers, money couriers and business owners/dollar purchasers.

Through the BMPE, Colombian drug trafficking organizations with drug proceeds generated in the United States use third parties – generally referred to as “peso brokers” that are also based in Colombia – who agree to exchange Colombian pesos they control for the drug supplier’s dollar proceeds. Peso brokers then use money couriers in the United States and elsewhere to physically secure the drug proceeds, often in suitcases or bags on the street, and transfer the proceeds into the United States banking system. To avoid detection, peso brokers deposit the drug proceeds into bank accounts in company or individual names intended to appear as legitimate business activity, or through multiple small deposits into different bank accounts which are then consolidated into larger accounts. As a result, Colombian peso brokers control a pool of drug-derived proceeds in United States bank accounts. These dollar proceeds are then purchased by individuals or companies in Colombia seeking to exchange pesos for United States dollars at a favorable exchange rate and in a manner that avoids currency exchange and income reporting requirements. The dollar drug proceeds are transferred at the direction of the purchaser, and often end up in bank accounts of individuals or companies who appear to have no direct involvement in drug trafficking crimes.

Beginning in 2016 and continuing until 2022, an undercover agent infiltrated the organization by portraying himself as an international money launderer able to pick up bulk cash throughout the world, launder the proceeds through his United States-based accounts and send the money to Colombia through the BMPE. 

Throughout the course of the investigation, members of the money laundering organization would contact the undercover and arrange meetings for the undercover and the undercover’s purported associates to collect bulk cash throughout the world. Money brokers, such as Mejia-Bencardino, would negotiate the money laundering contract by hiring a money launderer to pick up the bulk cash drug proceeds throughout the world, and would then direct where the money was to be sent to various accounts in order to conceal the nature of the funds and facilitate the payout of the laundered proceeds in Colombia for the benefit of the drug suppliers. Over the course of the conspiracy, Mejia-Bencardino was personally responsible for the laundering of over $1.95 million in drug proceeds.

Mejia-Bencardino is the 11th defendant to be sentenced in this case. All but one remaining defendant has been convicted.

United States Attorney Leah B. Foley; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; Aura Liliana Trujillo Rojas, Delegate for Criminal Finance for the Colombian Attorney General’s Office; Ricardo Sánchez Silvestre, Brigadier General of the Colombian National Police Anti-Narcotics Directorate; Jervis Moore, Chief of the Narcotics Division for the Jamaica Constabulary Force; and Colonel Geoffrey Noble of the Massachusetts State Police made the announcement. The Justice Department’s Office of International Affairs and the Criminal Division’s Narcotic and Dangerous Drug Section’s Office of the Judicial Attaché in Bogotá, Colombia provided significant assistance in securing the arrests and extraditions of Cover, Rowe and other co-defendants from Colombia and Jamaica. Assistant U.S. Attorneys Jared C. Dolan and Alathea E. Porter of the Criminal Division are prosecuting the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The details contained in the charging documents are allegations. The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Governor Hochul Marks 1-Year Anniversary Since Launch of New York Mobile ID

New York Mobile ID is a Secure, Digital Form of State-Issued Driver License, Learner Permit, or Non-Driver ID 

Can Be Used for Airport Security Screening at Select Airports Nationwide  

Governor Kathy Hochul marked the one-year anniversary of the launch of New York Mobile ID (MiD), a highly secure digital version of a state-issued driver license, learner permit or ID on a smartphone or tablet. To date, more than 245,869 New Yorkers have completed the enrollment process for the MiD.

“We are just at the start of this exciting advancement in digital identity security, and New York is proud to be one of the states leading the way,” Governor Hochul said. “As more and more New Yorkers embrace the MiD and more states across the country launch similar digital options, there will be many more ways to use your MiD.” 

New York State Department of Motor Vehicles Commissioner Mark J.F. Schroeder said, “DMV is pleased to offer New Yorkers a simple and secure way to access their driver license, learner permit or non-driver ID directly on their mobile device. The MiD holder’s personal information and privacy are protected, and businesses also benefit by having a convenient, contactless, and highly secure method for verifying identity and age.”

Designed for New Yorkers’ convenience and security, the MiD is available for free to IOS and Android users, and use is completely voluntary. Anyone with a valid, state-issued driver license, learner permit or non-driver ID can download the secure Mobile ID app through  Google Play  or the  App Store. 

MiD is accepted at Transportation Security Administration (TSA) security checkpoints at participating airports across the country, including all terminals at LaGuardia, John F. Kennedy, Albany, Buffalo, Syracuse Hancock, and Stewart International airports, allowing New Yorkers to verify their identity easily and securely for airport security screening. 

Last fall, the state Liquor Authority issued an advisory to the state’s bars, restaurants and other liquor-license holders that MiD is an acceptable form of ID for age verification. The state’s largest associations representing the bar and restaurant industries now support their members utilizing the technology. Businesses can become MiD verifiers by downloading a free or paid verifier app to any smartphone or tablet. They can visit the DMV webpage on Mobile ID for businesses and organizations to learn more. 

MiD is not a picture of the user’s driver license. It can only be authenticated through an encrypted connection with a verifier device and does not require the user to hand over their phone to anyone. When using the app, the user taps “share ID” to generate a QR code containing no personal data that can be scanned by the verifier, establishing the encrypted connection between the devices.

The user is asked to consent to sharing the information being requested by the verifier, and consent is required every time they use their Mobile ID. The verifier receives only the information the user consented to share, along with a message on their device that the MiD is verified.

For added protection, Mobile ID can only be unlocked by the user’s FaceID, TouchID or PIN, even if someone accesses the user’s unlocked phone. If the user’s phone is lost or stolen, their Mobile ID becomes invalid as soon as they add MiD to a new device. Mobile ID cannot be used to track a user’s location.

Currently, nearly 20 states have launched a mobile ID and many more are in the process of developing one. Nationally, more than five million people hold a mobile ID.

For more information about MiD, visit the DMV website or follow NYS DMV online at  Facebook, X , and  Instagram. 

 

Attorney General James Announces Every State Has Joined $7.4 Billion Settlement with Purdue Pharma and the Sackler Family

 

55 Attorneys General Representing Every Eligible State and Territory Join Historic Settlement Secured by AG James

Up to $250 Million Will Directly Support Opioid Abatement Programs in New York; AG James Has Now Secured More Than $3 Billion for New York to Address the Opioid Crisis

New York Attorney General Letitia James announced that 55 attorneys general, representing all eligible states and U.S. territories, agreed to a $7.4 billion settlement in principle with Purdue Pharma and its owners, the Sackler family for their instrumental role in creating the opioid crisis. Attorney General James secured the settlement in principle in January, which will end the Sacklers’ control of Purdue and ability to sell opioids in the United States, and will deliver funding directly to communities across the country over the next 15 years to support opioid addiction treatment, prevention, and recovery programs. New York will receive up to $250 million for opioid abatement efforts throughout the state.

“I am proud to have helped secure the support of every state and territory in the country for this plan to hold the Sackler family accountable,” Attorney General James. “For decades, the Sacklers put profits over people, and played a leading role in fueling the epidemic of opioid addictions and overdoses. While no amount of money can fully heal the destruction they caused, these funds will save lives and help our communities fight back against the opioid crisis. I will continue to work to deliver justice for all those affected by opioid addiction.”

Purdue, under the Sacklers’ leadership, invented, manufactured, and aggressively marketed opioid products for decades, fueling waves of addiction and overdose deaths across the country. Communities throughout New York have been hit particularly hard. While opioid overdose deaths have declined, more than 5,000 New Yorkers died from an opioid overdose in 2023. 

Communities across the country will directly receive settlement funds over the next 15 years to support addiction treatment, prevention, and recovery. If approved, the settlement will deliver funds to the participating states, local governments, affected individuals, and other parties who have previously sued the Sacklers or Purdue. The Sacklers will pay $1.5 billion and Purdue will pay roughly $900 million in the first payment, expected in early 2026 pending settlement approval. Subsequent payments will be $500 million after one year, an additional $500 million after two years, and $400 million after three years. New York will receive up to $250 million total.

Like prior opioid settlements, this settlement requires resolution of legal claims by state and local governments. The local government sign-on process for this settlement will be contingent on bankruptcy court approval.

With the addition of up to $250 million from this settlement, Attorney General James has secured New York state more than $3 billion from opioid manufacturers and distributors for their role in the opioid epidemic. These include Mylan, Indivior, Amneal Pharmaceuticals, Hikma Pharmaceuticals, Teva Pharmaceuticals, Johnson & Johnson, Mallinckrodt, Allergan, Endo, McKesson, Cardinal Health, and Amerisource Bergen. Attorney General James has also led multistate coalitions in reaching settlements for billions of dollars with CVS, Walgreens, and Walmart for their roles in failing to properly regulate opioid prescriptions. Additionally, Attorney General James, co-led with a bipartisan coalition of states in securing settlements with consulting firm McKinsey & Company and the marketing firm Publicis Health for their role in fueling the opioid crisis. 

Joining Attorney General James in this settlement in principle are the attorneys general of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, American Samoa, the District of Columbia, Guam, the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.

Venezuelan National and U.S. Citizen Arrested for Sanctions Evasion and Smuggling in Scheme to Supply Venezuela’s State-Owned Steel Industry

 

Defendants Allegedly Moved Millions Through Global Front Companies and Illegally Supplied Industrial Goods to Sanctioned Venezuelan Entities

Juan Carlos Cairo-Padron, 56, of Huntsville, Texas, and Thomas Michael Fortinberry, 51, of Decatur, Alabama, were arrested on June 13, 2025 on a federal criminal complaint charging them with violating U.S. sanctions related to Venezuela, illegally smuggling goods from the United States, and money laundering. The defendants made their initial court appearances in the Southern District of Texas yesterday.

According to the complaint, Cairo, a Venezuelan national and U.S. lawful permanent resident, and Fortinberry, a U.S. citizen, conspired for years to sell chemical catalysts, industrial equipment, and associated services to Venezuelan state-owned steel mills and petrochemical companies that are subject to U.S. sanctions. Cairo and Fortinberry’s scheme involved the use of U.S. and overseas front companies that served as intermediaries on shipping documents, foreign bank accounts that moved money into and out of the United States, and other activities designed to conceal the fact that the goods and services were destined for sanctioned entities.

As alleged, from at least 2022 through the present, Cairo and Fortinberry — at times acting through companies that they owned or controlled such as DRI Reformers and Reformer Technologies — sold millions of dollars’ worth of catalysts, industrial equipment, and related services to the Venezuelan steel company Complejo Siderurgico de Guayana S.A. (COMSIGUA), which is owned by the Venezuelan government and is subject to U.S. sanctions. Cairo and Fortinberry used Chinese suppliers to ship the catalysts or industrial equipment directly from China to Venezuela, and in at least one instance, they shipped the goods from the United States to Venezuela. As part of their scheme, Cario and Fortinberry also transferred millions of dollars between bank accounts in the United States, Spain, and China — in transactions involving companies based in China, Germany, and Spain — all for the purpose of continuing their sanctions evasion scheme, and to conceal the true parties involved.

If convicted, both Cairo and Fortinberry face a maximum penalty of 20 years in prison for the sanctions and money laundering violations, and 10 years in prison for the smuggling violation. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Immigration and Customs Enforcement - Homeland Security Investigations (ICE-HSI) and the Defense Criminal Investigative Service are investigating the case.

Trial Attorneys Adam P. Barry and Yifei Zheng of the National Security Division’s Counterintelligence and Export Control Section, and Assistant U.S. Attorneys S. Mark McIntyre and John Marck for the Southern District of Texas are prosecuting the case. Trial Attorney Christopher Magnani provided substantial assistance.

A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.