Month: February 2023

Source: United States Department of Justice News

James Bradley, aka Abdullah, 21, of the Bronx, New York, and Arwa Muthana, 30, of Hoover, Alabama, were sentenced to 11 years in prison followed by 10 years of supervised release and nine years in prison followed by 10 years of supervised release, respectively, for attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS).

In September 2022, Bradley and Muthana pleaded guilty to attempting to provide material support to ISIS before U.S. District Judge Paul A. Engelmayer. According to court documents, Bradley and Muthana are ISIS supporters who sought to travel to the Middle East to join and fight for ISIS. Bradley expressed violent extremist views since at least 2019, including his desire to support ISIS by traveling overseas to join the group or committing a terrorist attack in the United States. In May 2020, Bradley stated to an undercover law enforcement officer (UC-1) a belief that ISIS may be good for Muslims because ISIS was establishing a caliphate. Bradley also expressed his desire to conduct a terrorist attack in the United States and discussed potentially attacking the United States Military Academy in West Point, New York. Bradley explained that if he could not leave the United States, he would do “something” in the United States instead, referring to carrying out an attack.

In June 2020, Bradley reaffirmed his interest to UC-1 in attacking a military base and that doing so would be his contribution to the cause of jihad. In January 2021, Bradley mentioned to UC-1 another university in New York State where he frequently saw Reserve Officer Training Corps (ROTC) cadets training. Bradley stated that he could use his truck in an attack along with Muthana, take “out” all of the ROTC cadets.

In late January 2021, Bradley married Muthana in an Islamic marriage ceremony. Beginning before and continuing after their marriage, Bradley and Muthana discussed, planned, and ultimately attempted to travel to the Middle East together to join ISIS. In or about early March 2021, Bradley traveled from New York to Alabama to visit Muthana. They returned to New York together to travel from New York to join ISIS in the Middle East. Thereafter, Bradley raised the possibility of UC-1 helping the couple board a cargo ship to travel to the Middle East or Africa. UC-1 subsequently put Bradley in contact with a purported associate who could assist in making travel arrangements via cargo ship. In reality, the purported facilitator was a law enforcement officer acting in an undercover capacity (UC-2).

Later in March 2021, Bradley met with UC-2 and expressed his desire to travel via cargo ship and to “fight among the rank[s] of the Islamic State.”  Bradley subsequently provided UC-2 $1,000 in cash as travel costs. Bradley told UC-2 that he and Muthana both planned to be “fighting” after arriving in the Middle East. Bradley also told UC-2 that he had a dream that he had given “bay’ah,” an Arabic term meaning the oath of allegiance, to Abu Ibrahim al-Hashimi al-Qurashi, the former leader of ISIS.

On March 25, 2021, UC-2 told Bradley that the cargo ship would be leaving on March 31 from a seaport in Newark, New Jersey. Bradley praised Allah and confirmed he and Muthana planned to travel on the ship. On March 31, 2021, Bradley and Muthana met with UC-2 en route to the seaport. During this meeting, Muthana confirmed to UC-2 that she was traveling to the Middle East to fight for ISIS. Bradley and Muthana were arrested as they walked on a gangplank to board the cargo ship. After Muthana was arrested, she waived her Miranda rights and stated during an interview that she was willing to fight and kill Americans if it was for Allah. Also on March 31, 2021, in connection with court-authorized searches, the FBI seized from a bedroom previously used by Bradley a hand-drawn image of a jihadi flag commonly used by ISIS and a hand-drawn map of the Pakistan region. The FBI also recovered a machete from a truck used by Bradley.

In the months and years prior to their arrests, Bradley and Muthana also accessed, posted, and distributed extremist online content, including materials indicative of their support for ISIS. Such material included Bradley’s postings of images of ISIS fighters, Usama Bin Laden, and terrorist attacks. Bradley also distributed to UC-1 videos of ISIS fighters, a 2020 stabbing attack against a New York City Police Department (NYPD) officer, and extremists shooting a uniformed soldier. Content on Muthana’s cellphone, which was searched pursuant to a court-authorized search warrant, included images of an ISIS flag with Arabic writing, ISIS propaganda, firearms, quotations of the deceased former al Qaeda in the Arabian Peninsula member Anwar al-Awlaki, and a video showing an individual in prisoner garb being chained and then burned alive.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Damian Williams for the Southern District of New York, Assistant Director Robert R. Wells of the FBI Counterterrorism Division and Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office made the announcement.

The New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state and local agencies, investigated the case.

Assistant U.S. Attorneys Kaylan E. Lasky and Jason A. Richman for the Southern District of New York are prosecuting the case with valuable assistance provided by Trial Attorney Jennifer Burke of the National Security Division’s Counterterrorism Section.

Source: United States Department of Justice News

SAN JUAN, Puerto Rico – A federal grand jury in the District of Puerto Rico returned an indictment on February 1, 2023 charging Elberto Berdut-Teruel, Wanda L. Carballo-Cabrera, María Santos-Carballo, and Magnetic Healer of PR Inc. with conspiracy and introduction of adulterated and misbranded devices with intent to defraud and mislead, conspiracy to commit mail fraud, and alteration of a device after shipment in interstate commerce.

According to court documents, the defendants unlawfully enriched themselves and operated the company Magnetic Healer of PR Inc. to sell devices containing magnets (“healing magnets”) which were advertised as being effective in the cure, mitigation, treatment, and prevention of diseases in humans, which included COVID-19, migraines, depression, insomnia, Parkinson’s disease, Alzheimer’s disease, autism, and cancer, among others. The indictment alleges that the defendants generated proceeds from the unlawful sale of the devices, which were adulterated and misbranded for purposes of the Federal Food, Drug, and Cosmetic Act (the FDCA) and seeks the forfeiture of a money judgment totaling $327,047.56.

One purpose of the FDCA is to ensure that devices and drugs sold to prevent, cure, or treat diseases are safe and effective for their intended uses and bear labeling that contain true and accurate information and have adequate directions for use. The FDCA prohibits, among other things, the knowing introduction and delivery in interstate commerce of a device that is misbranded or adulterated.

The devices that the defendants sold were misbranded under the FDCA because the defendants marketed and sold devices without notifying and obtaining the necessary approval from the United States Food and Drug Administration (FDA). The lack of approval from the FDA also made the devices adulterated for purposes of the FDCA. Furthermore, the devices were misbranded because their the labeling was false and misleading; the labeling failed to bear adequate directions for use; and the labeling lacked adequate warnings.

The defendants obtained parts for the devices via the mail from vendors outside of Puerto Rico and assembled the devices in Puerto Rico. They promoted the devices on social media and websites, including www.elbertoberdut.com and www.magneticbiotherapy.com. The defendants falsely claimed that the devices did not require FDA approval, had been submitted for FDA approval, and were FDA Authorized, using an official “FDA authorized” logo. The defendants sold the devices via the same websites and at the company’s physical address in San Juan, Puerto Rico.

Elberto Berdut-Teruel was the president, secretary, treasurer, and resident agent of Magnetic Healer of PR Inc. Wanda L. Carballo-Cabrera and María Santos-Carballo were employees of the company.

“Companies that sell medical products put their customers at risk when they misrepresent the quality, safety, or effectiveness of those products,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “Working with the FDA and other law enforcement partners, we are committed to holding individuals and companies accountable for violating the integrity of the FDA approval process, which directly impacts public health and safety.”

“The FDA continues to actively monitor the marketplace for fraudulent products related to our battle against COVID-19 as well as other diseases and conditions,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations Miami Field Office. “We will continue to take appropriate action against those who choose to mislead consumers and attempt to subvert the legitimate device regulatory regime.”

The defendants are scheduled for their initial court appearance today before U.S. Magistrate Judge Bruce McGiverin of the U.S. District Court for the District of Puerto Rico. If convicted, the defendants face a maximum penalty of 20 years in prison. A federal district court judge would determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FDA – Office of Criminal Investigations is investigating the case. Assistant U.S. Attorney Victor O. Acevedo-Hernández is prosecuting the case.

For more information about the FDA, the products it regulates, and public safety notices, please visit www.FDA.gov or www.FDA.gov/about-fda/fda-en-espanol.

To report an adverse event or serious problem to the FDA, please visit https://www.fda.gov/safety/reporting-serious-problems-fda/how-consumers-can-report-adverse-event-or-serious-problem-fda or https://www.fda.gov/safety/reporting-serious-problems-fda/como-los-consumidores-pueden-reportar-eventos-adversos-o-problemas-serios-la-fda.  

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

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Source: United States Department of Justice News

Gonzalo Ortiz was sentenced yesterday in federal court in Brooklyn by United States District Judge William F. Kuntz II, to 30 months in prison for defrauding an investor of nearly $600,000 by making false representations about Ortiz’s trading expertise and the profitability of various investments.  The Court also ordered Ortiz to pay $224,500 in restitution to the victim and imposed two years of supervised release to follow his custodial sentence.  In November 2021, Ortiz pleaded guilty to one count of investment advisor fraud.

Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.

Mr. Peace expressed his appreciation to the Federal Bureau of Investigation, New York Field Office, and the United States Securities and Exchange Commission, New York Regional Office, for their significant cooperation and assistance in this case.

Between approximately April 2015 and May 2017, Ortiz falsely represented himself to an investor (the “Victim”) as a successful investment adviser who had made profits for other individuals by trading stocks on their behalf.  Ortiz convinced the Victim to allow him to invest the Victim’s money, promising significant returns.  Based on those misrepresentations, the Victim made successive investments with Ortiz over a period of years.  During this time, Ortiz falsely told the Victim that the investments were profitable and sent the Victim a false account statement to support these claims.  In reality, Ortiz made poor trading decisions that resulted in the loss of a portion of the Victim’s money, and also stole some of the Victim’s money for himself, siphoning off portions of the investments to pay for personal expenses, including clothing, food and car payments.  Ortiz controlled nearly $600,000 of the Victim’s money, stole approximately $224,500 for himself, and lost a significant amount of the Victim’s money to unprofitable trades.

The case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys Alixandra Smith and Andrew D. Grubin are in charge of the prosecution.

The Defendant:

Gonzalo Ortiz
Age: 49
Hackensack, New Jersey

E.D.N.Y. Docket No. 19-CR-161 (WFK)

Source: United States Department of Justice News

If you believe you were a victim, please contact the Victim Witness Section of the USAO, Dist. of Arizona