Month: February 2023

Source: United States Department of Justice

A federal court in New York unsealed an indictment today charging a citizen of the Russian Federation and legal permanent resident of the United States with participating in a scheme to make over $4 million in U.S. dollar payments to maintain four real properties in the United States that were owned by Viktor Vekselberg, a sanctioned oligarch, as well as to attempt to sell two of those properties.

According to court documents, Vladimir Voronchenko, aka Vladimir Vorontchenko, 70, of Moscow, Russia; New York, New York; Southampton, New York; and Fisher Island, Florida, is additionally charged with contempt of court in connection with his flight from the United States following receipt of a grand jury subpoena requiring his personal appearance and testimony.

According to allegations in the indictment, Voronchenko, who resided at various times in New York, Florida, and Russia, held himself out as a successful businessman, art collector, and art dealer, and as a close friend and business associate of Vekselberg.

On April 6, 2018, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Viktor Vekselberg as a Specially Designated National (SDN) in connection with its finding that the actions of the Government of the Russian Federation in Ukraine constituted an unusual and extraordinary threat to the national security and foreign policy of the United States. On or about March 11, 2022, OFAC redesignated Vekselberg as an SDN and blocked Vekselberg’s yacht and private airplane.

Prior to his designation by OFAC, between in or about 2008 and in or about 2017, Vekselberg, through a series of shell companies, acquired real properties in the United States, specifically, (a) an apartment on Park Avenue in New York, New York, (b) an estate in Southampton, New York, (c) an apartment on Fisher Island, Florida, and (d) a penthouse apartment also on Fisher Island, Florida (collectively, the Properties). As of the date of the indictment, the Properties were worth approximately $75 million.

Voronchenko retained an attorney (the Attorney), who practiced in New York, New York, in connection with the acquisition of the Properties. The Attorney also managed the finances of the Properties, including by paying common charges, property taxes, insurance premiums, and other fees associated with the Properties in U.S. dollar transactions from the Attorney’s interest on lawyer’s trust account (IOLTA account).

Prior to Vekselberg’s designation as an SDN, between approximately February 2009 and March 2018, shell companies owned by Vekselberg sent approximately 90 wire transfers totaling approximately $18.5 million to the IOLTA account. At the direction of Voronchenko and his family member who lived in Russia, the Attorney used these funds to make various U.S. dollar payments to maintain and service the Properties.

Immediately after Vekselberg’s designation as an SDN, the source of the funds used to maintain and service the Properties changed. The IOLTA Account began to receive wires from a bank account in the Bahamas held in the name of a shell company controlled by Voronchenko, “Smile Holding Ltd.,” and from a Russian bank account held in the name of a Russian national who was related to Voronchenko. Between approximately June 2018 and March 2022, approximately 25 wire transfers totaling approximately $4 million were sent to the IOLTA account. Although the source of the payments changed, the management of the payments remained the same as before: Voronchenko and his family member directed the Attorney to use these funds to make various U.S. dollar payments to maintain and service the Properties. Additionally, after Vekselberg was sanctioned in 2018, Voronchenko and others tried to sell both the Park Avenue apartment and Southampton estate. No licenses from OFAC were applied for or issued for these payments or attempted transfers.

On or about May 13, 2022, federal agents served Voronchenko on Fisher Island with a Grand Jury subpoena, which called for his personal appearance for testimony and his production of documents. Approximately nine days later, on or about May 22, 2022, Voronchenko took a flight from Miami, Florida to Dubai, United Arab Emirates, and then went to Moscow, Russia. Voronchenko failed to appear before the grand jury and has not returned to the United States.

Voronchenko charged with conspiring to violate and evade U.S. sanctions, in violation of the International Emergency Economic Powers Act (IEEPA); violating IEEPA; conspiring to commit international money laundering; and international money laundering, each of which carries a maximum sentence of 20 years in prison. Voronchenko was also charge with contempt of court, which carries a maximum sentence within the discretion of the court. The indictment also provides notice of the United States’ intention to forfeit from Voronchenko the proceeds of his offenses, including the Properties. 

U.S. Attorney Damian Williams for the Southern District of New York, Task Force KleptoCapture Director Andrew C. Adams, Special Agent in Charge Ivan J. Arvelo of Homeland Security Investigations (HSI) New York Field Office, and Acting Special Agent in Charge Maged Behnam of the FBI Miami Field Office made the announcement.

The FBI and HSI are investigating the case with valuable assistance provided by the Justice Department’s National Security Division and Office of International Affairs, and OFAC.

Assistant U.S. Attorneys Jessica Greenwood, Joshua A. Naftalis, and Sheb Swett for the Southern District of New York are prosecuting the case.

This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022 and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.

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 News

MIAMI – A 29-year-old man from Martin County, Florida, German Oliver Jose Martin, has pled guilty before U.S. Magistrate Judge Shaniek M. Maynard, to production of child pornography.

As part of his guilty plea, Martin admitted that on May 26, 2022, he picked up a 15-year-old girl from her school bus stop, drove her to his trailer, and used his cellular telephone to produce several videos of them engaging in sexually explicit conduct.  Law enforcement learned of the activity and, in early June 2022, executed a federal search warrant on Martin’s phone.  They found two sexually explicit videos involving the minor victim.

Martin has pled guilty to one count of production of visual depictions of sexual exploitation of a minor.  He faces up to 30 years in prison followed by a lifetime of supervised release.  

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Acting Special Agent in Charge Maged Behnam of the FBI Miami Field Office, and Sheriff William D. Snyder of the Martin County Sheriff’s Office announced the guilty plea.  

FBI Miami, Fort Pierce Resident Agency, and the Martin County Sheriff’s Office investigated the case.  Managing Assistant U.S. Attorney Carmen Lineberger is prosecuting the case.

This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims.  For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-14043.

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Source: United States Department of Justice News

Damian Williams, the United States Attorney for the Southern District of New York, and Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), announced that MARK O’MARA, a disaster relief consultant, pled guilty to fraud in connection with his work for an Illinois-based consulting firm (“Company-1”) that provided Hurricane Sandy-related recovery services to the City of New York.  O’MARA surrendered today and pled guilty before U.S. District Judge Richard M. Berman in federal court in Manhattan.  O’MARA is the second Company-1 employee to plead guilty in recent months to fraud related to Hurricane Sandy relief work, as WALTER MELNICK previously pled guilty in a separate case assigned to U.S. District Judge Victor Marrero. 

U.S. Attorney Damian Williams said: “Instead of helping New York City recover from the devastation of Hurricane Sandy, Mark O’Mara helped himself by fraudulently obtaining housing benefits to which he was not entitled.  I commend the Department of Investigation and this Office for holding to account those who conspire to defraud invaluable federal programs.”

DOI Commissioner Jocelyn E. Strauber said: “This defendant used Hurricane Sandy as an opportunity for personal profit, through a scheme to pocket federal relief funds intended to help New Yorkers rebuild from this disaster.  Today, he takes responsibility for that conduct, pleading guilty to federal offenses, including destroying evidence, and agreeing to repay the City nearly $225,000, forfeit over a quarter-million dollars, and pay any past-due taxes.  DOI and our law enforcement partners in the U.S. Attorney’s Office for the Southern District of New York are committed to stopping frauds that drain public resources and holding accountable those who participate.”

According to the allegations in the Information, court filings, and statements made in court:

Beginning in or about 2013, in the aftermath of Hurricane Sandy, the City of New York (the “City”) received billions of dollars in federal money to fund Hurricane Sandy-related recovery efforts.  The City used certain of these funds to hire Company-1 to assist with Hurricane Sandy relief (the “Sandy Project”).  Company-1 hired O’MARA to work on the Sandy Project.

Between at least in or about 2013 and in or about 2019, while working for Company-1, O’MARA submitted fraudulent information and documents, including a fraudulent lease agreement, to the New York City Office of Management and Budget (“NYC-OMB”) via Company-1 in order to obtain lodging reimbursements from the City to which he knew he was not entitled.  Between in or about 2017 and in or about 2019, O’MARA also conspired with others – including another consultant at Company-1, WALTER MELNICK – to defraud the City by falsely claiming that he was residing in an apartment purchased by an individual at MELNICK’s direction.  O’MARA fraudulently obtained more than approximately $250,000 from the City via Company-1 as a result of these schemes. 

Additionally, in or about February 2020, when the City began raising concerns about Company-1’s travel reimbursements, O’MARA destroyed relevant emails and other communications to cover up the fraud. 

MELNICK previously pled guilty in a separate case to conspiring to commit federal program fraud while working for Company-1 on the Sandy Project for fraudulently obtaining housing reimbursements based on a fake lease and other fraudulent documentation.  MELNICK agreed to pay $387,749 in forfeiture and restitution.  MELNICK is scheduled to be sentenced by Judge Marrero on February 24, 2023. 

O’MARA is cooperating with the Government.

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MARK O’MARA, 41, of New York, New York, pled guilty to one count of federal program fraud, which carries a maximum sentence of 10 years in prison; one count of wire fraud in connection with a presidentially-declared major disaster, which carries a maximum sentence of 30 years in prison; one count of conspiracy to commit federal program fraud and wire fraud, which carries a maximum sentence of five years in prison; and one count of destruction of evidence, which carries a maximum sentence of 20 years in prison.  Under the terms of his plea agreement, O’MARA agreed to forfeit $258,900 and to pay restitution to NYC-OMB in the amount of $224,687.26.

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge. 

Mr. Williams praised the outstanding investigative work of DOI. 

This matter is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Jane Kim and Catherine Ghosh are in charge of the prosecution.

Source: United States Department of Justice News

JEFFERSON CITY, Mo. – A Kingdom City, Mo., business owner pleaded guilty in federal court today to fraudulently receiving more than $673,000 in loans for several businesses under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Scott Allen Maples, 39, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to one count of bank fraud.

By pleading guilty today, Maples admitted that he fraudulently applied for and received Paycheck Protection Program (PPP) loans for several businesses. When Maples applied for PPP loans, he reported exaggerated and inaccurate payroll expenses and submitted fabricated and altered bank statements and tax forms. Under the CARES Act, both the principal and interest on those loans were eligible for forgiveness if the loan money was spent for permissible expenses (such as payroll, mortgage interest, rent and utilities) and at least 60 percent of the loan went towards payroll expenses.

After submitting those fraudulent loan applications, Maples received a total of $673,127 in loan proceeds. Under the terms of today’s plea agreement, Maples must pay restitution and must forfeit to the government $673,127.

Maples admitted that he submitted a loan application to Square, Inc., a company authorized to issue PPP loans, on May 6, 2020, on behalf of Area 23, LLC, claiming 21 employees and an average monthly payroll of $69,548. Maples submitted fabricated documents to support the loan application. He received a $173,872 loan. Maples also submitted a loan application to US Bank on May 15, 2020, for the same business, Area 23, making the same claims of employees and payroll and again including fabricated documents to support the loan application. Maples again received a $173,872 loan.

Maples also received a $51,750 PPP loan for Maples Enterprises through Square. In the loan application, Maples indicated that there were six employees earning a total of $20,700 per month on average. In reality, Department of Labor records reflected that there was only one employee. Another business, Clearance Depot, received a $270,632 PPP loan. Maples submitted statements in support of this loan that were later found to be altered and incorrect.

Maples also submitted an application for an Economic Injury Disaster Loan seeking $30,000. This loan also contained suspected misrepresentations that overstated the prior year’s revenues. Maples received a $3,000 advance on this loan, but the loan that he sought was not issued.

Under federal statutes, Maples is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by the Small Business Administration Office of Inspector General, the Treasury Inspector General for Tax Administration, the FDIC Office of Inspector General, and IRS-Criminal Investigation.

Source: United States Department of Justice News

                CONCORD – Robert Gramolini, 64, of Malden, Massachusetts, was sentenced to 24 months in federal prison for possession of stolen goods, United States Attorney Jane E. Young announced today.

             According to court documents and statements made in court, Gramolini was seen on video driving a gray Dodge pickup stealing a black enclosed trailer from a business in Hampton, New Hampshire.  Law enforcement located the stolen trailer at a storage lot in Brentwood.  The owner of the storage lot confirmed Gramolini rented space on his lot to store trailers and other items and gave the officers permission to inspect the lot.  Police uncovered other stolen items in his possession, including additional trailers and motorcycles.  Gramolini then arrived at his storage lot driving the same gray Dodge pickup seen earlier in security footage.  After being questioned, Gramolini admitted to taking the trailer from the Hampton business and that he took another trailer “off the side of the road” in Massachusetts that contained approximately $64,000 in heavy equipment.  In total, the value of the stolen property exceeded $150,000.

            “The defendant traveled across state lines to steal tens of thousands of dollars of property from others,” said U.S. Attorney Young.  “Through the hard work of our local and federal law enforcement officers we stopped this defendant’s criminal activities and held him accountable for his actions.”

             This matter was investigated by the Federal Bureau of Investigation, the Hampton Police Department, and the Brentwood Police Department.  The case was prosecuted by Assistant U.S. Attorneys Matthew T. Hunter and Alexander S. Chen.

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