Category: United States Department of Justice Criminal Division

Source: United States Department of Justice Criminal Division

Headline: Leader of Guatemalan Drug Trafficking Organization Sentenced to Life in Prison

Earlier today, Eliu Elixander Lorenzana-Cordon, 46, previously residing in La Reforma, Guatemala, was sentenced to life in prison following a trial in March 2016, where he was found guilty of conspiring to illegally import into the United States and distribute multi-ton quantities of cocaine.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge Raymond P. Donovan of the Drug Enforcement Administration’s (DEA) Special Operations Division made the announcement. 

The sentence was issued by U.S. District Judge Colleen Kollar-Kotelly of the U.S. District Court for the District of Columbia.

“Lorenzana-Cordon was a leader of a major international drug trafficking organization with close ties to the Sinaloa Cartel, one of the most violent and sophisticated transnational criminal organizations operating in the world today,” said Acting Assistant Attorney General Cronan.  “In that capacity, Lorenzana-Cordon was responsible for receiving and distributing tons of cocaine destined for the United States, where it would be sold on our streets, causing untold harm to our communities and the lives of our citizens.  This sentence sends an unmistakable message that the Department will continue to relentlessly pursue and prosecute international drug traffickers who endeavor to send drugs to the United States, wherever they may be.”

“Global criminal networks operate every day through drug trafficking and violence to assault the rule of law in the United States and around the world,” said Special Agent in Charge Donovan. “DEA and our foreign counterparts have worked tirelessly to ensure that Lorenzana-Cordon would spend a significant portion of his life in a U.S. prison cell for his crimes against our great country.”

The defendant was convicted on one count of conspiring to unlawfully distribute cocaine for illegal importation into the United States.  As proven at trial, the defendant along with his brother, co-defendant Waldemar Lorenzana-Cordon, established himself as a leader of an international drug trafficking organization with close ties to the Sinaloa Cartel.  Between 1996 and 2009, the defendant and his co-conspirators received, stored and distributed multi-ton quantities of cocaine from Colombia at their properties in Zacapa, Guatemala, for importation into Mexico and then ultimately into the United States.  The cocaine delivered to the defendant’s properties during the course of the conspiracy arrived via extensive and varying means, including the use of go-fast boats, non-commercial light aircraft, and vehicles with hidden compartments.  The defendant and his associates also used firearms during their criminal activity, and relied on threats of violence to promote their drug trafficking objectives.

On April 27, 2010, the Department of Treasury’s Office of Foreign Asset Control designated the defendant and his brother, Waldemar Lorenzana-Cordon, as Specially Designated Narcotics Traffickers pursuant to the Foreign Narcotics Kingpin Designation Act due to their significant roles in international narcotics trafficking and their ties to the Sinaloa Cartel.

The DEA’s 959/Bilateral Investigations Unit and Guatemala City Country Office led the investigation, which was supported by the Organized Crime Drug Enforcement Task Force program, the Criminal Division’s Office of International Affairs, the Chicago Police Department and the governments of El Salvador and Panama provided support and assistance.  Finally, and in particular, the Justice Department wishes to convey its gratitude to the government of Guatemala for its steadfast commitment, collaboration and assistance in the investigation, extradition and prosecution of this case. 

Trial Attorneys Michael Lang, Stephen Sola and Emily Cohen of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case. 

Source: United States Department of Justice Criminal Division

Headline: Five Former Venezuelan Government Officials Charged in Money Laundering Scheme Involving Foreign Bribery

Charges were unsealed today against five former Venezuelan government officials for their alleged participation in an international money laundering scheme involving bribes made to corruptly secure energy contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).  Two of the five defendants are also charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA).

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston made the announcement.

Four of the defendants, Luis Carlos De Leon Perez (De Leon), 41; Nervis Gerardo Villalobos Cardenas (Villalobos), 50; Cesar David Rincon Godoy (Cesar Rincon), 50; and Rafael Ernesto Reiter Munoz (Reiter), 39, were arrested in Spain in October 2017 by Spanish authorities on arrest warrants based on a 20-count indictment returned in the Southern District of Texas on Aug. 23, 2017.  Cesar Rincon was extradited from Spain on Feb. 9, and made his initial appearance today before U.S. Magistrate Judge MJ Stephen Smith of the Southern District of Texas.  De Leon, Villalobos and Reiter remain in Spanish custody pending extradition.  A fifth defendant, Alejandro Isturiz Chiesa (Isturiz), 33, remains at large.  All five defendants are citizens of Venezuela; De Leon is also a U.S. citizen.

De Leon, Villalobos, Reiter and Isturiz are each charged with one count of conspiracy to commit money laundering.  Cesar Rincon is charged with two counts of conspiracy to commit money laundering.  Each of the defendants is charged with one or more counts of money laundering, as follows:  De Leon, Cesar Rincon and Reiter, four counts each; Villalobos, one count; and Isturiz, five counts.  De Leon and Villalobos are also each charged with one count of conspiracy to violate the FCPA.

“Corruption threatens economic and political stability, and victimizes ordinary law-abiding people by diverting public funds into the pockets of corrupt officials and bribe payers,” said Acting Assistant Attorney General Cronan.  “The charges announced today demonstrate our commitment to fighting corruption at its source and to prosecuting those who allegedly launder their illicit gains through American financial institutions and real estate.  Through cases like this, we are sending a strong message to corrupt foreign officials: if you launder your ill-gotten gains through the United States, you will be prosecuted.”

“Effective deterrence of corruption requires prosecution of culpable individuals, wherever those individuals are located,” said U.S. Attorney Patrick. “We will continue to enforce the FCPA against those that avail themselves of the privileges of the American marketplace.”

“This case is an example of what can be accomplished when international law enforcement agencies work together to thwart complex cross-border crimes” said Special Agent in Charge Dawson.   “HSI is committed to upholding the rule of law and investigating those that would participate in illegal practices.

The indictment alleges that the five defendants, all of whom were then-current officials of PDVSA and its subsidiaries or former officials of other Venezuelan government agencies or instrumentalities, were known as the “management team” and wielded significant influence within PDVSA.  According to the indictment, the management team conspired with each other and others to solicit several PDVSA vendors, including vendors who were residents of the United States, and who owned and controlled businesses incorporated and based in the United States, for bribes and kickbacks in exchange for providing assistance to those vendors in connection with their PDVSA business.  The indictment further alleges that the co-conspirators then laundered the proceeds of the bribery scheme through a series of complex international financial transactions, including to, from or through bank accounts in the United States, and, in some instances, laundered the bribe proceeds in the form of real estate transactions and other investments in the United States. 

According to the indictment, two PDVSA vendors, Roberto Enrique Rincon Fernandez (Roberto Rincon), 57, of The Woodlands, Texas, and Abraham Jose Shiera Bastidas (Shiera), 54, of Coral Gables, Florida, sent over $27 million in bribe payments to an account in Switzerland for which De Leon was a beneficial owner and De Leon and Villalobos were authorized signers.  The indictment alleges that those funds were later transferred to other accounts in Switzerland.  Both Roberto Rincon and Shiera previously pleaded guilty in the Southern District of Texas to FCPA charges in connection with a scheme to bribe PDVSA officials.  According to admissions made in connection with their pleas, Roberto Rincon and Shiera paid bribes and provided other things of value to PDVSA officials to ensure that their companies were placed on PDVSA bidding panels and ensure that they were given payment priority so that they would get paid ahead of other PDVSA vendors with outstanding invoices.  Roberto Rincon and Shiera are currently awaiting sentencing.    

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

With the unsealing of the indictment today, the Justice Department has announced charges against 15 individuals, 10 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA.  HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and Madrid, as well as from Internal Revenue Service Criminal Investigation.  Trial Attorneys Jeremy R. Sanders and Sarah E. Edwards of the Criminal Division’s Fraud Section and Deputy Chief John Pearson and Assistant U.S. Attorney Robert S. Johnson of the Southern District of Texas are prosecuting the case.  Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.

The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice and the Spanish Guardia Civil also provided assistance.

The Fraud Section is responsible for investigating and prosecuting all FCPA matters.  Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

Source: United States Department of Justice Criminal Division

Headline: Three Individuals Indicted for Visa Fraud Scheme for Profit

Three individuals were indicted in the Eastern District of New York for their alleged roles in a multi-year visa fraud scheme that brought Armenian citizens into the United States for profit.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney Richard P. Donoghue of the Eastern District of New York and Principal Deputy Assistant Secretary Christian J. Schurman for U.S. Department of State Diplomatic Security and Director for Diplomatic Security Service (DSS), made the announcement.

Stella Boyadjian, 47, of Rego Park, New York; Hrachya Atoyan, 30, of Glendale, California; and Diana Grigoryan aka “Dina Akopovna,” 41, of the Republic of Armenia, were charged in a 15-count indictment unsealed yesterday in federal court in Brooklyn with multiple counts of visa fraud and with conspiracy to defraud the United States, commit visa fraud, and illegally bring aliens into the United States.  Boyadjian and Grigoryan are also charged with related money laundering charges, and Boyadjian is charged with aggravated identity theft. Boyadjian was arraigned yesterday before U.S. Magistrate Judge James Orenstein.  Atoyan’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for later today, in the Central District of California.

“Fraudsters who undermine our immigration system threaten our public safety and our national security,” said Acting Assistant Attorney General John P. Cronan. “The Justice Department will not tolerate abuses of our nation’s immigration laws like those alleged in the indictment unsealed today.  We will root out immigration fraud and bring those responsible to justice.”

“As alleged in the indictment, the defendants choreographed their fraud scheme by dressing visa applicants in traditional dance costumes and creating fake concert flyers in order to deceive a government program that allows foreign nationals to temporarily enter the United States as artistic performers,” said U.S. Attorney Donoghue. “As a result of outstanding investigative work and commitment to protecting the integrity of the immigration process by this Office and our law enforcement partners, the defendants will now face the music for their alleged crimes.”

“The Diplomatic Security Service is firmly committed to protecting the integrity of all U.S. visas and travel documents — especially those, like the P-3 visa, which allow for entertainers to visit the United States to perform in culturally unique events and deepen our understanding of different cultures,” said Principal Deputy Assistant Secretary Schurman. “This case is the result of a strong partnership among federal law enforcement agencies and DSS’ global network of special agents working together to stop visa and passport crimes and stop criminals from earning illegal income by exploiting U.S. visas, passports, and foreign workers.”

According to the indictment, unsealed today upon the arrest of Boyadjian and Atoyan, Boyadjian led a transnational network of co-conspirators who engaged in a widespread visa fraud scheme to bring Armenian citizens into the United States by fraudulently claiming to the U.S. Citizenship and Immigration Services (USCIS) that the Armenians were members of folk performance groups, and thus qualified for P-3 “Culturally Unique Artist” visas. The P-3 nonimmigrant visa classification allows foreign nationals to temporarily travel to the United States to perform, teach or coach as artists or entertainers, under a program that is culturally unique. A U.S. employer or sponsoring organization is required to submit a USCIS Form I-129 Petition for a Non-Immigrant Worker, along with supporting documentation, attesting that the performances in the United States are culturally unique.

As alleged in the indictment, Boyadjian ran a non-profit organization called Big Apple Music Awards Foundation, based in Rego Park, New York. Boyadjian used the Big Apple Music Awards Foundation as well as formal and informal Armenian music industry contacts in the United States and Armenia to perpetuate the scheme. Boyadjian and others solicited Armenian citizens who wanted to come to the United States and charged them between $3,000 and $15,000 to be included on the Form I-129 Petitions. Boyadjian and other associates in Armenia acquired fraudulent performer certificates and organized staged photo sessions where the aliens wore traditional Armenian folk outfits to make it appear as though they were traditional Armenian performers. After being trained how to defeat U.S. visa interviews, the individual aliens presented these certificates and photos to U.S. consular officers during their visa interviews.  Once the Armenians entered the United States, some would pay Boyadjian and her associates additional money to be included in another fraudulent petition asking for P-3 visa extensions.  Some aliens have overstayed their visas and remain unlawfully in the United States.

This case was a joint investigation by the DSS’s Criminal Fraud Investigations and Overseas Criminal Investigations Divisions with assistance from the USCIS Fraud Detection and National Security, Center Fraud Detection Operations in Vermont.  Trial Attorney Sasha N. Rutizer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney David Gopstein of the Eastern District of New York are prosecuting the case.

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

Source: United States Department of Justice Criminal Division

Headline: New York Doctor Sentenced to 13 Years in Prison for Multi-Million Dollar Health Care Fraud

Earlier today, in federal court in Brooklyn, Dr. Syed Imran Ahmed, a licensed medical doctor who practiced at hospitals in Brooklyn and on Long Island, was sentenced by United States Chief Judge Dora L. Irizarry of the Eastern District of New York to 13 years’ imprisonment for submitting millions of dollars in false and fraudulent claims to Medicare.  The Court also ordered Dr. Ahmed to pay $7,266,008.95 in restitution, to forfeit $7,266,008.95, and to pay a $20,000 fine.  Dr. Ahmed was convicted by a federal jury after an 11-day trial of one count of health care fraud, three counts of making false statements related to health care matters, and two counts of money laundering.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, John P. Cronan, Acting Assistant Attorney General of the Justice Department’s Criminal Division, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS OIG) Office of Investigations, New York Region, announced the sentence.

“Dr. Syed Ahmed treated Medicare like a personal piggy bank, stealing over $7.2 million by making fraudulent claims for medical procedures he never performed,” stated United States Attorney Donoghue.  “Dr. Ahmed will now pay the price for violating the trust that Medicare places in doctors.  His 13-year prison sentence and the heavy payments imposed should send a powerful message of deterrence to other medical professionals who would seek to defraud vital taxpayer-funded programs like Medicare for personal enrichment.  This Office, together with our law enforcement partners, will remain vigilant in rooting out health care fraud.”

“Medicare is a crucial program for many of the most vulnerable people in our society – American seniors and those with disabilities,” stated Acting Assistant Attorney General Cronan.  “In this case, Syed Ahmed put his own greed ahead of the trust we put in our medical professionals, draining over $7 million in precious funding from our Medicare program.  His conviction and the sentence imposed in this case demonstrate the Department of Justice’s unwavering commitment to protecting public funds and the integrity of our health care system.”

“Health care fraud is often billed as a victimless crime, but that couldn’t be further from the truth,” stated FBI Assistant Director-in-Charge Sweeney.  “Someone is always left to foot the bill. Insurers, the insured, and others are the ones who pay the price. Those who employ these schemes will most certainly be brought to justice, as we’ve proven here today.”

“The fraud scheme that Dr. Ahmed engaged in was motivated by pure greed,” stated HHS OIG Special Agent-in-Charge Lampert.  “HHS OIG and our law enforcement partners will continue to aggressively pursue all those who seek to unlawfully enrich themselves by victimizing participants of the Medicare program.” 

According to evidence presented at trial, Dr. Ahmed, a surgeon who practiced at Kingsbrook Jewish Medical Center and Wyckoff Heights Medical Center in Brooklyn, Franklin Hospital in Valley Stream, and Mercy Medical Center in Rockville Centre, New York, billed the Medicare program for incision-and-drainage and wound debridement procedures that he did not perform.  Dr. Ahmed wrote out lists of phony surgeries and sent the lists to his billing company in Michigan, with instructions that the procedures be billed to Medicare.  Dr. Ahmed also directed that the surgeries be billed as though they had taken place in an operating room in order to increase the payout for the fraudulent scheme.  The evidence introduced at trial showed that Medicare paid over $7 million to Dr. Ahmed for his fraudulent claims.

The FBI and HHS OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York.  Assistant U.S. Attorney F. Turner Buford, formerly a Fraud Section trial attorney, Senior Litigation Counsel Patricia Notopoulos of the United States Attorney’s Office for the Eastern District of New York, and Trial Attorney Debra Jaroslawicz of the Fraud Section are prosecuting the case. 

The Defendant:

Syed Imran Ahmed
Age: 51
Residence: Glen Head, New York

E.D.N.Y. Docket No. 14-CR-277 (DLI)