5 Charged with Conspiring to Fraudulently Obtain Union Job for Organized Crime Underboss

Five men have been charged in the Eastern District of New York with conspiring to defraud the Newspaper and Mail Deliverers’ Union (NMDU) and Hudson News newsstands to obtain a union card and employment at Hudson News newsstands for the son of the alleged underboss of the Colombo family of La Cosa Nostra.

A criminal complaint was unsealed charging Benjamin Castellazzo Jr., Rocco Giangregorio, Glenn LaChance, Rocco Miraglia, aka “Irving,” and Anthony Turzio, aka “the Irish Guy,” with mail fraud conspiracy.  The five men were arrested and their initial appearances are scheduled before United States Magistrate Judge Robert M. Levy at the federal courthouse in Brooklyn.

In addition, a three-count indictment was unsealed charging Thomas Leonessa, aka “Tommy Stacks,” with wire fraud, wire fraud conspiracy and theft and embezzlement from employee benefit plans in an unrelated scheme.   The indictment was returned by a federal grand jury sitting in Brooklyn, N.Y., on March 6, 2014, and relates to Leonessa’s alleged “no show” job as a delivery driver for the New York Post.

The charges were announced by Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, United States Attorney Loretta E. Lynch of the Eastern District of New York Acting Special Agent in Charge Cheryl Garcia of the New York region of the U.S. Department of Labor’s Office of Labor Racketeering and Fraud Investigations and Assistant Director in Charge George C. Venizelos of the FBI’s New York Field Office.

As alleged in the complaint, the NMDU is an independent union that represents approximately 1,500 employees involved in the newspaper industry in New York, New Jersey and Connecticut.   NMDU members deliver newspapers for The New York Times, The Wall Street Journal, the New York Daily News, the New York Post and El Diario.  Hudson News, which also employs members of the NMDU, is a retail chain of newsstands mainly located in major transportation hubs, including airports and train stations.

Between June 2009 and October 2009, Miraglia, who was a foreman at the New York Daily News – as well as an associate of the Colombo organized crime family and the son of a deceased soldier in the Colombo family – conspired with officials of the NMDU and with Turzio, an employee of El Diario, to get an NMDU union card for Castellazzo Jr. and place him in a job at Hudson News.   Castellazzo Jr. is the son of Benjamin Castellazzo, the alleged underboss of the Colombo family.   Giangregorio and LaChance, who are business agents for the NMDU, also participated on this scheme.

As alleged in the indictment, Leonessa was employed by the New York Post to deliver newspapers by truck from a New York Post warehouse in the Bronx, N.Y., to New Jersey.   He was also a member of the NMDU, which maintained offices, including offices for its welfare and pension funds, in Queens, N.Y.   From about December 2010 to about September 2011, Leonessa had a “no show job” – a job for which he was paid wages and benefits for services he did not perform – at the New York Post.   When Leonessa did not complete his required deliveries, he was nevertheless, based on his fraudulent representations, paid wages by the New York Post and accorded benefits from employee pension and welfare funds managed by the NMDU.

Leonessa is scheduled to be arraigned before United States Magistrate Judge Robert M. Levy at the federal courthouse in Brooklyn, N.Y.

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Dr. Naeem Mahmood Kohli, of the Kohli Neurology and Sleep Center, Indicted on Charges of Health Care Fraud and Illegal Dispensation of Controlled Substances

A federal grand jury sitting in East St. Louis, Illinois returned a 15-count indictment against an Effingham County doctor, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The indictment was opened upon the arrest and arraignment of the doctor in Benton, Illinois.

Naeem Mahmood Kohli, 59, of Effingham, Illinois, operated the Kohli Neurology and Sleep Center, located on North Maple in Effingham, Illinois. The indictment alleges that, for some patients, Kohli did not operate a legitimate medical practice but instead was engaged in a scheme to illegally distribute controlled substances by running what was in essence a prescription service for drug addicts, commonly known as a pill mill. The indictment also alleges that Kohli defrauded Health Care Benefit Programs, namely, Medicare, Medicaid, and Blue Cross Blue Shield of Illinois, by billing for services not provided.

In the indictment, Kohli is charged with the following offenses: (1) health care fraud in counts one through three, which carry penalties of a maximum of 10 years in prison, a maximum fine of $250,000, a maximum of three years’ supervised release; (2) illegal distribution of a Schedule II controlled substances (oxycodone, hydromorphone, and methadone) in counts four through 13, which carry penalties of a maximum of 20 years in prison, a maximum fine of $1,000,000, no less than three years’ supervised release; and (3) money laundering in counts 14 and 15, which carry penalties of a maximum of 10 years in prison, a maximum fine of $250,000, and one year of supervised release. A $100 special assessment must be imposed on each count.

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Severe weather impacted January 2014 U.S.-Canada freight flows

Severe weather in January impacted freight transportation, contributing to a decline in U.S.-Canada trade for the month. Freight moving across the northern border in January 2014 was down 3.4 percent from January 2013, the first decline from the same month of the previous year since June 2013 and the largest year-to-year decline since November 2009, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics. Trade using truck, the largest mode, declined 4.9 percent while rail dropped 9.9 percent. Air trade also declined while pipeline and vessel increased.

With less weather impact along the southern border, U.S.-México trade rose 3.9 percent from January 2013, the seventh consecutive increase from the same month of the previous year. Trade using the three surface transportation modes – truck, rail and pipeline – rose a combined 5.4 percent from the previous year while trade using air and vessels declined.        

Total U.S.-NAFTA trade declined 0.2 percent from January 2013 in the face of the weather impact on the northern border. It was the first year-to-year decline since June 2013. Trade using rail and air declined. With the rise in trade by truck with Mexico offsetting the trucking decline with Canada, total U.S.-NAFTA truck trade was virtually unchanged. Pipeline and vessel trade rose.

Trade by Mode

Truck, which carries nearly three-fifths of U.S.-NAFTA trade and is the most heavily utilized mode for moving goods to and from both U.S.-NAFTA partners, was essentially unchanged year-to-year while rail declined 4.2 percent. Vessel rose 0.6 percent and air declined 1.2 percent.

Trade with Canada

Year-to-year, the value of U.S.-Canada trade by vessel increased the most of any mode, growing 3.7 percent. Vessel freight exports to Canada increased 64.8 percent due to an increase in exports of mineral fuels. U.S.-Canada trade by pipeline increased by 1.9 percent. U.S.-Canada pipeline trade comprised 95.1 percent of total U.S.-NAFTA pipeline trade in January.

Trade with Mexico

Year-to-year, the value of trade by pipeline increased the most of any mode, growing 30.6 percent, but pipeline trade remained less than 1 percent of total U.S.-Mexico trade. Trade using rail rose 5.9 percent while truck freight increased 5.0 percent. Freight moved by vessel and air decreased by 5.4 percent and 0.4 percent respectively.

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17 Defendants Indicted in Chicago in International ATM Skimming and Money Laundering Scheme

Seventeen defendants are facing federal fraud or related charges for their alleged roles in an international ATM skimming and money laundering scheme involving hundreds of thousands of dollars. Two defendants were arrested in Sofia, Bulgaria, and 13 defendants were arrested in Chicago and several suburbs by FBI agents following a lengthy international investigation.

The alleged scheme involved using ATM and debit card numbers and the personal identification numbers associated with them, which were fraudulently obtained in Europe, to withdraw money from victims’ accounts using automated teller machines at various locations in the Chicago area. The charges were brought in a 29-count indictment, which was returned by a federal grand jury on March 12 and was unsealed following the arrests.

“These charges are the result of the hard work of dedicated law enforcement personnel both here and abroad to address a transnational crime problem that can affect virtually anyone with a bank account and carries significant financial consequences. Cooperation with international law enforcement agencies was crucial to the investigation, and we are grateful for the assistance that led to these arrests,” said Robert J. Holley, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation.

The arrests and charges were announced by Mr. Holley and Zachary T. Fardon, United States Attorney for the Northern District of Illinois. They praised the cooperation of the State Agency National Security and the Supreme Prosecutor’s Office of Cassation in Bulgaria. The investigation is continuing, they said.

Two defendants, Radoslav Pavlov, 36, of Sofia, Bulgaria, also known as “Radi,” charged with wire fraud, and Mihail Petrov, 41, of Sofia, charged with wire fraud, money laundering conspiracy and money laundering, were arrested in Sofia. The United States intends to seek their extradition to face the charges in U.S. District Court in Chicago. The indictment alleges that Pavlov, Petrov, and Domeniko Evitmov, 46, of Chicago, who was arrested here, were located outside the United States and fraudulently obtained ATM and debit card numbers and PINs from locations in Europe and elsewhere without the actual account holders’ knowledge.

Pavlov, Petrov, Evitmov, Alexander Savov, 47, of Carol Stream, Illinois, and others they directed then transferred the fraudulently obtained information, often by Skype or e-mail, to Gheorgui Martov, also known as “Mitsubishi” and “Mitsu,” 39, of Schiller Park, Illinois, who allegedly directed the scheme in the Chicago area. Martov gave the information to numerous co-defendants to make the fraudulent withdrawals from area ATMs, the charges allege, and the defendants divided the money they obtained.

Martov and his wife, Temenuga Koleva, aka “Nushka,” 37, also of Schiller Park, were each charged with obstruction of justice for allegedly destroying computer files and Internet browsing history during the course of the FBI’s investigation. Koleva was also charged with being an accessory after the fact to wire fraud.

Martov, Petrov, and Emil Gospodinov, 44, of Chicago—who owned and operated BG Center Rodina, located 4828 N. Cumberland Ave. in Norridge, Illinois, a business that transmitted funds via MoneyGram, among other things—were charged with money laundering conspiracy for allegedly transmitting the fraudulently obtained funds from the United States to Bulgaria and elsewhere. After receiving funds from Martov, Gospodinov transmitted the funds to Martov’s alleged co-schemers outside the United States using nominee senders and receivers on the transactions to disguise the true identities of those sending and receiving the funds.

The indictment seeks forfeiture of approximately $200,000 from 15 defendants as alleged proceeds of the fraud, and it also seeks approximately $50,000 from Martov, Petrov, and Gospodinov as alleged proceeds of the money laundering.

The indictment alleges that once Martov obtained the ATM and debit card and PIN information he gave it to the following defendants to fraudulently withdraw money from area ATMs: Ivan Kotselov, 32, of Schiller Park; Georgi Vangelov, aka “Zhoro,” 26, of Schiller Park; Svetoslav Nedelchev, aka “Svetlyo,” 28, of Chicago; Daniel Yordanov, aka “Dani,” 29; Deyan Slavchev, aka “Dido,” 28, of Schiller Park; Karl Popovski, aka “Kiro Papata,” 23, of Chicago; Nikolay Todorov, aka “Niketsa,” 35, of Schiller Park; Mladen Gueorguiev, 25, of Chicago; Nedislav Gabov, 33, of Chicago; and Dimo Deshkov, 28, of Chicago.

After receiving the fraudulently obtained account data, defendants Kotselov, Vangelov, Nedelchev, Yordanov, Slavchev, Popovski, Todorov, Gueorguiev, and Gabov allegedly encoded the data onto the magnetic strip of blank or recycled cards. Once in possession of the encoded cards, various defendants traveled to Chicago-area ATMs to withdraw funds. The defendants, acting at Martov’s direction, made ATM withdrawals shortly before and after midnight in the timezone of the issuing bank in an attempt to circumvent the daily withdrawal limits on the victims’ accounts. The defendants also coordinated ATM transactions to withdraw money before the issuing banks could detect the fraud and deactivate the ATM and debit card numbers.

Martov was charged with 22 counts of wire fraud and four counts of money laundering in addition to the money laundering conspiracy and obstruction counts. Fourteen other defendants were each charged with one or more counts of wire fraud. Gospodinov was charged with four counts of money laundering in addition to the money laundering conspiracy.

Martov, his wife, and 11 other defendants were arraigned yesterday and pleaded not guilty to the charges against them before U.S. Magistrate Judge Daniel Martin. Two defendants, Gueorguiev and Gabov were released on bonds, while the other 11 defendants who appeared in court yesterday remain in federal custody pending detention hearings scheduled for tomorrow and Friday. Yordanov is a fugitive and a warrant was issued for his arrest. Todorov is in state custody and will be arraigned on the federal charges on a date to be determined.

Each count of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and restitution is mandatory. Money laundering conspiracy and each count of money laundering carry a maximum penalty of 20 years in prison and a $500,000 fine or a fine totaling twice the value of the funds involved in the money laundering. The obstruction of justice count against Martov and Koleva carries a maximum of 20 years in prison and a $250,000 fine, and the accessory count against Koleva carries a maximum of 10 years in prison and a $125,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

The government is being represented by Assistant U.S. Attorneys Scott Edenfield, Matthew Getter, and Timothy Chapman. Assistant U.S. Attorney Matthew Burke guided the investigation before he transferred last week from the U.S. Attorney’s Office in Chicago to the Eastern District of Virginia. The Office of International Affairs of the Justice Department’s Criminal Division provided assistance with this case.

The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

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14 #BloodsStreetGang Members & #MacBallers Charged with Engaging in a Drug Trafficking Conspiracy

United States Attorney Richard S. Hartunian announced that 14 members and associates of the Bloods street gang known as the “MacBallers” were charged by way of a felony criminal complaint in federal court in Binghamton, New York, with engaging in a drug trafficking conspiracy, pursuant to Title 21, United States Code, Sections 841(a)(1) and 846. Federal, state, and local law enforcement teams executed arrest warrants in the greater Binghamton, New York area, as well as in New York City. Defendants made their appearances before a federal magistrate judge in federal court. Additionally, law enforcement also executed federal search warrants at nine locations in the Binghamton, New York area including at the nightclub called 17 East, located at 348 Clinton Street, Binghamton, New York, which was utilized and frequented by members of the MacBallers gang.

The investigation leading to today’s arrests and charges was conducted by members of a task force comprised of the U.S. Attorney’s Office, Binghamton, New York; FBI Albany Field Office and FBI New York Field Office; Broome County District Attorney’s Office; Binghamton Police Department; New York State Police; Broome County Sheriff’s Office; Johnson City Police Department; Endicott Police Department; and the U.S. Marshals Service.

The federal felony complaint charges that starting in September 2009 and continuing up to the present, members and associates of the MacBallers set of the Bloods street gang operated in Binghamton, New York and were responsible for distributing large quantities of controlled substances including cocaine base (crack cocaine), powder cocaine, heroin, and marijuana in the greater Binghamton area. The complaint also charges that MacBaller members utilized rental vehicles and rental apartments to facilitate their drug trafficking conspiracy in order to cook, package, store, and transport controlled substances; utilized prepaid cellular telephones to contact drug customers and gang associates, both affiliated and unaffiliated to the MacBallers, in order to distribute controlled substances; engaged in gang meetings at various locations in the Binghamton area; and utilized firearms including handguns to commit assaults and shootings and to threaten others in furtherance of the MacBallers’ drug trafficking conspiracy.

The federal felony complaint also charges as follows as to each defendant:

1. DEREK CARR, a/k/a “Jinx,” 29 years old, is affiliated to the Bloods street gang and believed to a member of the MacBallers. DEREK CARR is a close, personal associate of SAQUAN JOHNSON and supplied SAQUAN JOHNSON with controlled substances including crack cocaine and heroin. DEREK CARR communicated with SAQUAN JOHNSON regarding the cooking, packaging, acquisition, and distribution of controlled substances including crack cocaine and heroin.
2. COURTNEY DOUGLAS, a/k/a “Poppy,” 32 years old, is a member of the MacBallers who received supplies of crack cocaine and heroin from SAQUAN JOHNSON, as well as crack cocaine from CHAD EDWARDS, JUAN PENA, and REGINALD SIMMONS, JR. and then distributed those controlled substances to drug customers. COURTNEY DOUGLAS communicated with other members of the MacBallers’ drug trafficking conspiracy, including SAQUAN JOHNSON, CHAD EDWARDS, and JUAN PENA regarding the acquisition, distribution, and resale of controlled substances including crack cocaine and heroin.
3. LAMONT CLEMONS, a/k/a “Stime,” 39 years old, is believed to be a family relative (cousin) of CALVIN JOHNSON who transported supplies of controlled substances and distributed controlled substances on behalf of CALVIN JOHNSON. LAMONT CLEMONS also supplied SAQUAN JOHNSON with controlled substances including crack cocaine, heroin, powder cocaine, and marijuana. LAMONT CLEMONS communicated with SAQUAN JOHNSON regarding the acquisition, storage, transportation, distribution, and resale of controlled substances, including crack cocaine, powder cocaine, heroin, and marijuana.
4. CHAD EDWARDS, a/k/a “Chaddy O,” 31 years old, is a high-ranking member of the MacBallers who was responsible for distributing large quantities of crack cocaine in Binghamton, New York. CHAD EDWARDS worked closely with JUAN PENA AND REGINALD SIMMONS, JR. to distribute controlled substances and shared the same cellular telephones with these individuals. CHAD EDWARDS communicated with other members of the MacBallers’ drug trafficking conspiracy, including SAQUAN JOHNSON, JUAN PENA, REGINALD SIMMONS, JR., SHARELL HOLTON, and COURTNEY DOUGLAS regarding the acquisition, packaging, and distribution of controlled substances.
5. SHARELL HOLTON, a/k/a “Rell,” 35 years old, is a known controlled substances distributor in Binghamton, New York who is believed to have been supplied by members of the MacBallers’ drug trafficking conspiracy including JOHN MELVILLE, CHAD EDWARDS, JUAN PENA, and REGINALD SIMMONS, JR. She allowed members of the MacBallers’ drug trafficking conspiracy, including JOHN MELVILLE and BRIAN WEST, to utilize her residence in Endicott, New York and distribute controlled substances from her residence. SHARELL HOLTON communicated with other known members of the MacBallers’ drug trafficking conspiracy including SAQUAN JOHNSON, CHAD EDWARDS, and JUAN PENA regarding the acquisition, storage, and distribution of controlled substances as well as the collection of drug proceeds.
6. LESLIE HUGHES, a/k/a “Les,” 41 years old, is a Bloods Street Gang member and a known controlled substances distributor in Binghamton, New York who supplied SAQUAN JOHNSON with controlled substances including crack cocaine. LESLIE HUGHES worked for CALVIN JOHNSON and supplied SAQUAN JOHNSON with controlled substances to include crack cocaine. LESLIE HUGHES communicated with SAQUAN JOHNSON regarding the acquisition, cooking/mixing, packaging, and distribution of controlled substances, including crack cocaine, and the collection of drug proceeds.
7. CALVIN JOHNSON, a/k/a “Cal,” 38 years old, is a known controlled substances distributor in Binghamton, New York who operated the nightclub 17 East, which was utilized and frequented by members of the MacBallers’ drug trafficking conspiracy. He also supplied SAQUAN JOHNSON, LAMONT CLEMONS, LESLIE HUGHES, and others with controlled substances including crack cocaine, powder cocaine, and marijuana. CALVIN JOHNSON communicated with SAQUAN JOHNSON regarding the acquisition, distribution, and storage of controlled substances including crack cocaine, powder cocaine, and marijuana, as well as the acquisition of a handgun/firearm.
8. SAQUAN JOHNSON, a/k/a “Banga,” a/k/a “Sa,” 23 years old, is a member of the MacBallers gang and is known as an enforcer/shooter who was responsible for the distribution of large amounts of crack cocaine, powder cocaine, heroin, and marijuana to other members of the MacBallers’ drug trafficking conspiracy including GERALD NORFLEET and COURTNEY DOUGLAS. SAQUAN JOHNSON was supplied with controlled substances from CALVIN JOHNSON, LAMONT CLEMONS, DEREK CARR, CHAD EDWARDS, JUAN PENA, REGINALD SIMMONS, JR., and DAYNELL ROWLAND. SAQUAN JOHNSON also communicated with other members of the MacBallers’ drug trafficking conspiracy including DEREK CARR, COURTNEY DOUGLAS, LAMONT CLEMONS, CHAD EDWARDS, SHARELL HOLTON, LESLIE HUGHES, CALVIN JOHNSON, GERALD NORFLEET, JUAN PENA, DAYNELL ROWLAND, and REGINALD SIMMONS, JR. regarding the acquisition, distribution, transportation, and cooking/mixing of controlled substances including crack cocaine, powder cocaine, heroin, and marijuana, as well as robberies, assaults, and firearms violations.
9. JOHN MELVILLE, a/k/a “Flip,” a/k/a “Fat Boy,” 29 years old, is a high ranking member of the MacBallers gang. JOHN MELVILLE was known to traffic large quantities of controlled substances including crack cocaine and powder cocaine into Binghamton, New York, in order to distribute controlled substances and supply additional members of the MacBallers’ drug trafficking conspiracy including SHARELL HOLTON, CHAD EDWARDS, JUAN PENA, and REGINALD SIMMONS, JR.
10. GERALD NORFLEET, a/k/a “G,” 55 years old, purchased controlled substances from SAQUAN JOHNSON and distributed controlled substances including crack cocaine. Additionally, he collected drug proceeds derived from controlled substance sales on behalf of SAQUAN JOHNSON AND LAMONT CLEMONS. GERALD NORFLEET also provided transportation for SAQUAN JOHNSON in order to facilitate drug transactions in furtherance of the MacBallers’ drug trafficking conspiracy. GERALD NORFLEET communicated with SAQUAN JOHNSON regarding the acquisition, packaging, and distribution of controlled substances, and the collection of drug proceeds derived from the sales of controlled substance including crack cocaine.
11. JUAN PENA, a/k/a “John John,” 30 years old, is a high ranking member of the MacBallers who was responsible for distributing large quantities of crack cocaine. At one time, JUAN PENA also paid CALVIN JOHNSON an amount of United States currency to control and operate various illegal gambling games at CALVIN JOHNSON’S nightclub 17 East. JUAN PENA also communicated with other members of the MacBallers’ drug trafficking conspiracy including SAQUAN JOHNSON, CHAD EDWARDS, REGINALD SIMMONS, JR., SHARELL HOLTON, COURTNEY DOUGLAS, and others regarding the acquisition and distribution of controlled substances.
12. DAYNELL ROWLAND, a/k/a “Daylo,” 31 years old, is a suspected member of the MacBallers who resides in Syracuse, New York, and was responsible for supplying SAQUAN JOHNSON and others with large amounts of controlled substances including marijuana and heroin. DAYNELL ROWLAND introduced SAQUAN JOHNSON to his (DAYNELL ROWLAND’S) heroin supplier residing in the New York City area so SAQUAN JOHNSON could obtain large quantities of heroin directly from this individual. DAYNELL ROWLAND also expressed a desire for SAQUAN JOHNSON to become his main heroin distributor in Binghamton, New York. DAYNELL ROWLAND communicated with SAQUAN JOHNSON regarding the acquisition, cooking, packaging, and distribution of controlled substances and the collection of drug proceeds derived from the sales of controlled substances.
13. REGINALD SIMMONS, JR., a/k/a “Reg,” a/k/a “Moe,” 30 years old, is a member of the MacBallers who was responsible for distributing large quantities of crack cocaine. REGINALD SIMMONS, JR. worked with JUAN PENA AND CHAD EDWARDS to distribute controlled substances and shared the same cellular telephones with them for the purpose of distribution of controlled substances. REGINALD SIMMONS, JR. also communicated with other additional members of the MacBallers’ drug trafficking conspiracy including SAQUAN JOHNSON, JUAN PENA, CHAD EDWARDS, SHARELL HOLTON, and COURTNEY DOUGLAS regarding the demand, acquisition, packaging, and distribution of controlled substances.
14. BRIAN WEST, a/k/a “West,” 27 years old, is a member of the MacBallers who was responsible for distributing large quantities of crack cocaine. BRIAN WEST trafficked controlled substances into the Binghamton, New York area with JOHN MELVILLE and who supplied other members of the MacBallers’ drug trafficking conspiracy including SHARELL HOLTON, CHAD EDWARDS, JUAN PENA, and REGINALD SIMMONS, JR. BRIAN WEST also utilized SHARELL HOLTON’S residence to distribute controlled substances.

If convicted, each defendant faces an imprisonment term of at least 10 years and up to life.

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