DOJ: Brooklyn Supreme Court Justice And Former Chair Of Board Of Directors Of Municipal Credit Union Charged With Obstruction Of Justice

Whenever you see the "Elected Ones" doing those Fashion Show Selfies, you know the NAACP and Child Welfare Fraud is soon to follow.

I can smell stealin' the children, the land and the votes before I enter its realms of thiefdom.

The New York Police Department seems to have a very unique interest in this case, but we shall await for this tale to unfold.

I see children's trust funds.

Do you see children's trust funds?

Do you see campaigns?

I see campaigns.

I wonder when the real estate is going to come into play?

Brooklyn Supreme Court judge faces obstruction of justice charge

Another "Elected One of the Fashion Show Selfies" to celebrate in February.

Former New York City Police Department Officer and Supervisory Committee Member Also Charged With Embezzlement, Fraud, and Controlled Substance Offenses

Sylvia Ash

Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced today that SYLVIA ASH, presiding judge of the Kings County Supreme Court, Commercial Division, and former chair of the board of directors of Municipal Credit Union (“MCU”), was charged in Manhattan federal court with conspiracy to obstruct justice and obstruction of justice, arising from a scheme to seek to influence and impede an ongoing federal investigation into fraud and corruption at MCU, a non-profit, multibillion-dollar financial institution.  U.S. Attorney Berman also announced today that Joseph Guagliardo, a/k/a “Joseph Gagliardo,” a former New York City Police Department Officer and former member of MCU’s supervisory committee, was charged separately with embezzlement, fraud, and controlled substance offenses arising from abuse of his position as a member of the supervisory committee.  Guagliardo was arrested in Brooklyn, New York, yesterday afternoon and was presented before U.S. Magistrate Judge Ona T. Wang in Manhattan federal court.  ASH was arrested at LaGuardia Airport this morning and is expected to appear before Magistrate Judge Wang in Manhattan federal court this afternoon.

U.S. Attorney Geoffrey S. Berman said:  “The charges announced today reflect the latest in our ongoing work to uncover criminal conduct at the highest levels of MCU, a multibillion-dollar, federally insured credit union.  As alleged, Sylvia Ash, a sitting state court judge, took repeated steps to obstruct a federal investigation into significant financial misconduct at MCU during Ash’s tenure as chair of the board of directors.  Joseph Guagliardo allegedly abused his position as an MCU supervisory committee member to enrich himself and his family.”

According to the allegations contained in the two Complaints unsealed today in Manhattan federal court, publicly available information, and prior court filings:[1]

Municipal Credit Union

MCU is a non-profit financial institution headquartered in New York, New York, which is federally insured by the National Credit Union Administration (“NCUA”).  MCU is the oldest credit union in New York State and one of the oldest and largest in the country, providing banking services to more than 500,000 members, and with more than $2.9 billion in member accounts, each of which is federally insured for at least $250,000 by the National Credit Union Share Insurance Fund, which is administered by the NCUA.  Membership in MCU is generally available to employees of New York City and its agencies, employees of the federal and New York state governments who work in New York City, and employees of hospitals, nursing homes, and similar facilities located within New York State.

At all relevant times, MCU was supposed to be overseen by a board of directors (the “Board”) and a supervisory committee (the “Supervisory Committee”), each of which was composed of volunteer members of MCU, who were not to be compensated.  According to New York banking law, the Supervisory Committee’s duties included supervision of the actions of MCU’s Board and officers.  MCU’s written conflict of interest policy, which was regularly distributed to Board members, Supervisory Committee members, and others, provided, among other things, that members of MCU’s “Board of Directors and Supervisory Committee may not do business with the Credit Union, either individually or as representative of any business entity.”

ASH

ASH is a New York State Supreme Court Justice in Kings County.  ASH has served as a judge in the New York State court system since at least approximately 2006, first as a Kings County Civil Court Judge, and, commencing in 2011, as a Kings County Supreme Court Justice.  In or about January 2016, ASH was appointed to be the presiding judge in the Kings County Supreme Court’s Commercial Division.

ASH served on MCU’s Board from in or about May 2008 until on or about August 15, 2016, when she resigned.  ASH also served as a trustee of MCU’s pension plan, a position from which she resigned on or about October 31, 2016.  From in or about May 2015 until her resignation from the Board, ASH served as the chair of the Board.

National Association of Women Judges - Summer 2013 Volume 31 Issue 5 by Beverly Tran on Scribd

Guagliardo

GUAGLIARDO is a former officer with the New York City Police Department, who retired in or about 1989.  In or about 1993, GUAGLIARDO joined the Supervisory Committee of MCU, a volunteer position, and remained in that position until he was removed from that position by the New York State Department of Financial Services on or about May 24, 2018, except for a brief period of time when he served as a member of MCU’s Board in or about 2008.  While he was a Supervisory Committee member, GUAGLIARDO sought to and did use his position to oversee aspects of MCU’s security and fraud department, including serving in the role of vice president of MCU’s security and fraud department while that position was vacant.

Kam Wong

From on or about at least 2007 until on or about June 12, 2018, Kam Wong served as MCU’s chief executive officer (“CEO”) and president.  On or about May 8, 2018, Wong was charged and arrested by the United States Attorney’s Office for the Southern District of New York, and, on or about June 12, 2018, Wong was terminated by MCU.  On or about December 2, 2018, Wong pled guilty to a multimillion-dollar embezzlement from MCU, and acknowledged, in his written plea agreement, among other things, endeavoring to obstruct and impede and obstructing and impeding the administration of justice with respect to the criminal investigation into this matter, and agreeing with one or more others to do the same.

ASH’s Alleged Obstruction of Justice

From at least in or about 2012 through 2016, while serving as an MCU Board member and while Wong was CEO, ASH received annually tens of thousands of dollars in reimbursements and other benefits from MCU, including airfare, hotels, food and entertainment expenses for her and a guest to attend conferences domestically and abroad, as well as payment for phone and cable bills, and electronic devices.  Even after her resignation from the Board, Wong continued to provide or cause MCU to provide ASH with benefits, such as Apple devices. 

In or about January 2018, after Wong had been approached by federal law enforcement agents investigating potential financial misconduct by Wong involving MCU and in an attempt to protect Wong, ASH agreed to and did sign a false and misleading memorandum purporting to explain and justify millions of dollars in payments that Wong had received from MCU, which was then provided by Wong to law enforcement officers.

Subsequently, ASH agreed to and did continue to seek to influence and impede the federal investigation in multiple ways, including by (i) concealing and deleting relevant text messages and email messages and wiping her MCU-issued Apple iPhone in a further effort to destroy and impair the availability of evidence that had been sought by federal grand jury subpoenas, and (ii) making false and misleading statements to federal law enforcement officers in interviews conducted as part of a federal criminal investigation.

            GUAGLIARDO’s Alleged Embezzlement, Fraud, and Unlawful Provision of Controlled Substances to Wong

GUAGLIARDO engaged in a long-running scheme to defraud MCU, with the agreement and assistance of, among others, Wong.  Among other things, GUAGLIARDO defrauded and embezzled from MCU by causing it to direct more than $250,000 to a purported security company created and controlled by GUAGLIARDO, but operated in another’s name, which did little to no real work for MCU.  GUAGLIARDO also defrauded and embezzled from MCU by over-billing for more than $200,000 for purported web advertising services provided by a non-profit organization that GUAGLIARDO also controlled. 

In addition, during substantially the same period in which GUAGLIARDO was committing and concealing these offenses, GUAGLIARDO participated in a scheme to unlawfully distribute controlled substances to Wong, in the form of prescription drugs, some of which were obtained from GUAGLIARDO’s spouse, who worked as a doctor affiliated with a public hospital, and some of which were obtained from a doctor affiliated with the New York City Police Department.

*                *                *

ASH, 62, of Brooklyn, New York, is charged with one count of conspiracy to obstruct justice, which carries a maximum penalty of five years in prison; and two counts of obstruction of justice, each of which carries a maximum penalty of 20 years in prison.

GUAGLIARDO, 62, of Brooklyn, New York, is separately charged with one count of conspiracy to embezzle from a federal credit union, which carries a maximum penalty of five years in prison; one count of embezzlement, one count of conspiracy to defraud a financial institution, and one count of defrauding a financial institution, each of which carries a maximum penalty of 30 years in prison; and one count of conspiracy to distribute controlled substances, and one count of distribution of controlled substances, each of which carries a maximum penalty of 20 years in prison.  

The maximum potential sentences in these cases are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

U.S. Attorney Berman praised the outstanding work of the Special Agents of the United States Attorney’s Office.  Mr. Berman also thanked the New York County District Attorney’s Office, the New York State Department of Financial Services, and the New York City Police Department Internal Affairs Bureau for their assistance.

The case is being prosecuted by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Eli J. Mark and Daniel C. Richenthal are in charge of the prosecution, with assistance of Special Assistant U.S. Attorney Alona Katz from the New York County District Attorney’s Office.

The charges contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

---

[1] As the introductory phrase signifies, the entirety of the text of the Complaints, and the description of the Complaints set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation.

USA v. Sylvia Ash Complaint - SDNY --10-4-2019 by Beverly Tran on Scribd

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Happy Chanukah! Jona Rechnitz Sentenced For Stealin' Children, Land & Votes In New York

Over $1 Billion in fraud.

This would mean that there was mortgage fraud, and probably property tax fraud, and TARP.

I speculate that if you squint your eyes really, really hard, then look at the financials, you will see the Detroit Land Bank Authority, but, hey, what do I know?

I know we have now entered the New York Police Department quagmire of public drama of trafficking tiny humans.

This quagmire, also, includes the New York prison guards.

Hedge Fund Fraud Case Study — Platinum

‘Liar,’ and Star Witness in City Graft Cases, Gets 10-Month Sentence

Jona Rechnitz was arrested on corruption charges in New York and then became a star witness. His testimony led to the conviction of several officials.

Jona Rechnitz & DeBlasio

Jona Rechnitz, center, made large donations to the campaigns and causes of Mayor Bill de Blasio, right, as a way to gain access.

Mayor Bill de Blasio called him a “liar and a felon.”

The man, Jona S. Rechnitz, was a wealthy real estate scion who made large donations to the mayor’s political campaigns and causes, gaining access to key officials, including Mr. de Blasio.

But Mr. Rechnitz became an instant pariah in City Hall after pleading guilty in 2016 to corruption-related charges. He admitted that those contributions — as well as direct bribes given to police officials — were a means to gain influence.

His admissions formed the core of a cooperation agreement in which he became a key government witness in three federal corruption trials, leading to the convictions and guilty pleas of half a dozen people, including a powerful correction officers’ union boss, a hedge fund mogul, a police official and a Brooklyn businessman.

Mr. Rechnitz became, according to federal prosecutors in Manhattan, “one of the single most important and prolific white-collar cooperating witnesses in the recent history of the Southern District of New York.”

On Thursday, Mr. Rechnitz was sentenced to five months in prison and five months of house arrest, followed by three years on parole,  an outcome that contrasted sharply from the possible 20 years in prison he faced when he was first arrested and charged. The start of his sentence has been suspended pending the outcome of an appeal.

Before he was sentenced, Mr. Rechnitz apologized to Judge Alvin K. Hellerstein for his “criminal and moral” behavior, and asked the judge for leniency.

“I cannot express, your honor, how distraught I am at how I desecrated my religion,” he said, acknowledging that he had “made many poor choices, and many people suffered because of them.”

Mr. Rechnitz had endured intense public scrutiny as a government witness, federal prosecutors said. He met with prosecutors more than 80 times, often traveling to New York City from the West Coast, where he lived.

His testimony in one of the trials helped expose years of sordid and petty corruption within the New York City Police Department — officials who had provided favors in exchange for junkets, prostitutes and expensive gifts — that reached the highest echelon of the department.

Mr. Rechnitz’s testimony, the government wrote, had “exposed the sordid underbelly of multiple New York City institutions, exposed serious crimes and held powerful people who fell short of their obligations to the broader public to account.”

The cases cast a cloud over City Hall and the mayor, who was never accused of wrongdoing. Mr. Rechnitz asserted that he had bought access to City Hall with his donations to Mr. de Blasio’s campaigns and causes; the mayor said that Mr. Rechnitz was “exaggerating in many, many ways,” characterizing him as a “horrible human being.”

Mr. Rechnitz had undoubtedly hoped to make a different kind of impact when he moved to New York City from Los Angeles in 2008 to follow in his father’s footsteps in real estate.

He got his start with Africa Israel USA, an international real estate development firm owned by Lev Leviev, an Israeli real estate and diamond mogul. Mr. Rechnitz wanted badly to be a “big shot,” federal prosecutors said during one of the trials.

Mr. Rechnitz eventually met Jeremy Reichberg, an enterprising Brooklyn businessman who had built a reputation as a “fix-it guy” who used his police connections to help friends and associates with moving and parking violations for a fee. (He was sentenced to 48 months in prison in May.)

The men bonded, it seemed, over a shared desire to secure access to New York City’s most powerful and influential officials.

“He had all these connections to police,” Mr. Rechnitz testified. “I didn’t know many people that had connections with police, growing up in Los Angeles, and I thought this would be an awesome tool for me personally and for my business.”

The men became partners, federal prosecutors said, trading gifts with police officials for favors. Mr. Rechnitz testified that he spent hundreds of thousands of dollars on meals at luxury restaurants, sporting events, on private jets, jewelry, hotel stays, all-expense paid trips and prostitutes for officers.

The men used their connections to officers in one instance to shut down a lane in the Lincoln Tunnel to allow a police escort to take Mr. Leviev, Mr. Rechnitz’s boss, to his Manhattan hotel.

Jeremy Reichberg

Jeremy Reichberg, center, was Mr. Rechnitz’s partner; he was convicted earlier this year on bribery and conspiracy charges.

“This will earn me lots of points,” Mr. Rechnitz recalled thinking.

Three years later, he launched his own firm, JSR Capital, in midtown on Fifth Avenue.

By 2013, their police connections included four deputy chiefs in commands throughout the city.

Emboldened, they chartered a $60,000 jet to Las Vegas in February 2013 with a prostitute on board for an all-expense-paid Super Bowl weekend with two police officials.

On Christmas Day that year, they dressed as Santas and delivered expensive gifts to high-ranking police officials. In exchange, they got favors and police escorts.

Around the same time, they began courting Philip Banks III, a former chief of the department. They bought him a ring that once belonged to Muhammad Ali, took him to cigar bars and on trips to Israel, the Dominican Republic, Los Angeles and Las Vegas.

In return, they asked Mr. Banks for a parking placard, and to promote a police official  — which Mr. Banks did. Mr. Banks was not charged with a crime. He resigned in 2014 citing unspecified personal and professional reasons.

Mr. Banks introduced Mr. Rechnitz to Norman Seabrook, the longtime leader of the Correction Officers’ Benevolent Association, who was one of the most politically connected figures in the city.

Mr. Rechnitz played a key role in the prosecution of Mr. Seabrook, who was convicted last year on bribery and conspiracy charges. Mr. Seabrook had steered $20 million from the union into a risky hedge fund in exchange for a promised kickback worth more than $100,000. The union lost $19 million of its investment.

Still riding a wave of “unbridled ambition,” prosecutors said Mr. Rechnitz turned his attention to City Hall.

“We’re going to become significant contributors, but we want access,” Mr. Rechnitz told Mr. de Blasio’s chief fund-raiser. “When we reach out for things, we want them to get done.”

Over the next several months, Mr. de Blasio received more than $150,000 in contributions for his political campaigns and causes. In return, Mr. Rechnitz had the mayor’s personal cellphone number and email, which he used to invite the mayor to a Knicks game.

At his sentencing, Mr. Rechnitz who now operates a jewelry store in Los Angeles that is frequented by celebrities, told the judge that if he were given a lengthy prison sentence, he doubted that he could “start over a third time.”

Judge Hellerstein cited the Seabrook case in how he determined what sentence to give Mr. Rechnitz. He ordered Mr. Rechnitz to pay $10 million in restitution for the correction officers’ union’s loss.

“All of us do bad things,” the judge said. “Some of those bad things are criminal acts for which we must account.”

Hedge Fund Founder Pleads Guilty To Fraud In Connection With Bribery Of Former Correction Officers Union Leader

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today the guilty plea of MURRAY HUBERFELD to wire fraud conspiracy in connection with funds used to bribe the former president of the nation’s largest municipal correction officers union.  Specifically, HUBERFELD, founder of the Platinum Partners hedge fund (“Platinum”), pled guilty to conspiring with an intermediary, Jona Rechnitz, to cause the fund to pay $60,000 to Rechnitz’s company by falsely representing that the money was payment for courtside tickets to eight New York Knicks basketball games.  Instead, as HUBERFELD knew, the actual purpose of the payment was to reimburse Rechnitz for having paid Norman Seabrook, then-president of the Correction Officer’s Benevolent Association (“COBA”), for Seabrook’s efforts to get COBA to invest millions of dollars in Platinum.  HUBERFELD pled guilty before U.S. District Judge Alvin K. Hellerstein.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “Murray Huberfeld caused his former hedge fund to pay tens of thousands of dollars to a criminal partner in order to enable another crime – paying off the head of the correction officer’s union for the investment of millions of its members’ funds.  We will continue to work with our law enforcement partners to fight fraud and corruption.”

According to the Superseding Information, Superseding Indictment, Indictment, and Complaint filed in this case, other public filings, statements made during the plea proceeding, and evidence and testimony presented at trial proceedings in October and November of 2017:

HUBERFELD was the founder of Platinum, a hedge fund that he continued to help operate unofficially even after his formal affiliation with the fund had ceased.  In late 2013, HUBERFELD and Rechnitz, a real estate businessman who was an acquaintance of HUBERFELD, sought to attract public and institutional investors to the fund.  At or around that time, Rechnitz told HUBERFELD that a contact of his – COBA President Norman Seabrook – would likely invest COBA’s money in Platinum.  Over the next few months, Seabrook caused COBA to invest approximately $20 million of its funds into Platinum, including $15 million from a retirement benefits program funded by the City of New York that invests money for correction officers’ retirements.

In or around December 2014, arrangements were made to pay Seabrook personally for the millions of dollars the Union had invested over the course of that year.  Rechnitz paid Seabrook $60,000 in cash, delivered to Seabrook in a men’s luxury handbag.  HUBERFELD and Rechnitz then arranged for Platinum’s management company to receive a fraudulent invoice for $60,000 – generated by Rechnitz – that, on its face, billed Platinum for eight pairs of courtside tickets to New York Knick games given to Platinum by Rechnitz, who owned Knicks season tickets.  In truth, and as HUBERFELD knew, the reason given to Platinum was false, and no Knicks tickets had changed hands.  The real purpose of the payment was to reimburse Rechnitz, who had paid Seabrook for his efforts in securing COBA’s investments.  Three days later, Platinum issued Rechnitz a $60,000 check. 

HUBERFELD, 57, of Lawrence, New York, pled guilty to one count of conspiracy to commit wire fraud.  The charge carries a maximum term of five years in prison.  HUBERFELD is scheduled to be sentenced on September 14, 2018.  The maximum potential penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Trial against Seabrook, on charges of (i) conspiracy to commit honest services wire fraud, (ii) the substantive offense of honest services wire fraud, and (iii) the substantive crime of wire fraud with respect to COBA’s right to control its assets, is scheduled to commence on July 30, 2018, before Judge Hellerstein.  As to Seabrook, the charges in the various charging instruments are merely allegations, and Seabrook is presumed innocent unless and until proven guilty.

Mr. Berman praised the investigative work of the Federal Bureau of Investigation and the New York City Police Department, Internal Affairs Division.

This case is being handled by the Office’s Public Corruption Unit.  Assistant United States Attorneys Martin S. Bell, Russell Capone, and Lara Pomerantz are in charge of the prosecution.

Huberfeld Platinum Partners SDNY Indictment by Beverly Tran on Scribd

Voting is beautiful, be beautiful ~ vote.©

The Tale of El Chapo Begins - Ishmael Bailey Arrested - Will They Both Blow The Whistle?

El Chapo returns in a tale of espionage, intrigue and some hard core playas.

This New York tale spans the globe, through the ages, but for now, we enjoy the possibilities of this New York Officer being a whistleblower, which is what an undercover officer is, not saying he is, nor am I saying El Chapo is a whistleblower, but I thought I would just present plausible scenario, considering the fact that Loretta Lynch was hard on the New York Police, and the New York Police had their psyoptic moments.

Whew!

That was a mouthful.

This NYPD cop had a side gig as El Chapo's wife's bodyguard. Now, he's been arrested in a cocaine sting

Ishmael Bailey

Ishmael Bailey, 36, was arrested Wednesday and arraigned in Queens Criminal Court on five counts

NYPD officer Ishmael Bailey gestures as he exits the Brooklyn Federal Courthouse, in the Brooklyn borough of New York, U.S., July 17, 2019.

A New York police officer who worked an off-duty job as a bodyguard for the wife of drug lord Joaquín “El Chapo” Guzmán faces felony drug charges after he was accused of accepting cash in exchange for police protection in a cocaine operation.

Ishmael Bailey, 36, was arrested Wednesday and arraigned in Queens Criminal Court on five counts, including criminal sale and possession of a controlled substance, receiving bribes and official misconduct. The 12-year veteran of the force was suspended without pay after his arrest. If convicted, he would face up to 15 years in prison.

Prosecutors at Bailey’s arraignment mentioned his work for the Sinaloa Cartel boss’s wife, Emma Coronel Aispuro, earlier this year, escorting her to and from the Brooklyn federal courthouse in July, when her husband was sentenced for running the world’s largest narcotics trafficking group.

Bailey’s attorney, Jeffrey Cohen, said his client’s side jobs are “irrelevant.”

“He’s not being brought up on charges for that,” Cohen told The Washington Post. “What’s happening now is, he’s pled not guilty, and I’m investigating the matter.”

NYPD officer Ishmael Bailey escorts Emma Coronel Aispuro,
 the wife of Joaquin ‘El Chapo’ Guzman, from the
Brooklyn Federal Courthouse, following the sentencing of
Guzman in the Brooklyn borough of New York, U.S., on July 17, 2019. 

Bailey’s prosecution involves conduct that postdates Guzman’s trial and does not involve the Sinaloa Cartel, according to the district attorney’s office.

According to the criminal complaint, Bailey met with an undercover officer last month, who he believed was a drug dealer. On two occasions, he agreed to provide security as packages of cocaine were transported from location to location; he was allegedly paid in cash per kilogram moved.


Bailey earned $2,500 on Sept. 4 for driving a duffel bag filled with drugs to a parking lot in Queens, prosecutors said. The following week, Bailey again acted as a security guard for the undercover officer, according to the complaint, and he was paid $10,000 to pick up two kilograms of cocaine.

The acting district attorney of Queens County, John Ryan, said Bailey “took an oath to enforce the law. Today, sadly, he is accused of taking part in an illicit drug operation.”

New York Police Commissioner James O’Neill also condemned Bailey’s alleged acts.

“There is no place for corruption within the NYPD,” O’Neill said at a news conference after the arrest. “When an individual officer intentionally tarnishes the shield worn proudly by thousands before him, he will be held to the highest account the law provides.”

Bailey is next scheduled to appear in court Oct. 3.

Voting is beautiful, be beautiful ~ vote.©

DOJ: Jeffrey Epstein Charged - In Custody - On The Road To Detroit & The End Of Trafficking Tiny Humans & Media Is Silent

Get to know Jeffrey Epstein, et al.

Thank you, GW.

Thank you, Miami Herald.

Is it my turn, yet?

Jeffrey Epstein Charged In Manhattan Federal Court With Sex Trafficking Of Minors

Alleged Conduct Occurred in both New York and Florida over Multiple Years, Involving Dozens of Victims

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced that JEFFREY EPSTEIN was arrested Saturday and charged with sex trafficking of minors and conspiracy to commit sex trafficking of minors.  The indictment unsealed today alleges that, between 2002 through 2005, EPSTEIN sexually exploited and abused dozens of underage girls by enticing them to engage in sex acts with him in exchange for money.  Epstein allegedly worked with several employees and associates to ensure that he had a steady supply of minor victims to abuse, and paid several of those victims themselves to recruit other underage girls to engage in similar sex acts for money.  He committed these offenses in locations including New York, New York, and Palm Beach, Florida.  EPSTEIN is expected to be presented in Manhattan federal court this afternoon before U.S. Magistrate Judge Henry B. Pitman.  The case is assigned to U.S. District Judge Richard M. Berman.

U.S. Attorney Geoffrey S. Berman said:  “As alleged, Jeffrey Epstein abused underage girls for years, operating a scheme in which girls he victimized would recruit others for Epstein to exploit and abuse.  Epstein exploited girls who were vulnerable to abuse, enticed them with cash payments, and escalated his conduct to include sex acts, often occurring at his residence on the Upper East Side of Manhattan.  While the charged conduct is from a number of years ago, the victims – then children and now young women – are no less entitled to their day in court.  My Office is proud to stand up for these victims by bringing this indictment.”

FBI Assistant Director William F. Sweeney Jr. said:  “We are asking anyone who may have been victimized by Jeffrey Epstein, or anyone who may have information about his alleged criminal behavior, to please call us.  The number is 1-800-CALL-FBI.  We want to hear from you, regardless of the age you are now, or whatever age you were then, no matter where the incident took place.  The bravery it takes to call us might empower others to speak out about the crimes committed against them.  It is important to remember there was never, nor will there ever be an excuse for this type of behavior.  In the eyes of the FBI, the victims will always come first.”

NYPD Commissioner James P. O’Neill said:  “Today’s charges serve as a warning to individuals who continue to prey upon some of our society’s most vulnerable population: we are coming for you.  I thank and commend the U.S. Attorney’s Office for the Southern District and the FBI for their tireless efforts to ensure child predators are taken off our streets.  The NYPD will continue to work with our law enforcement partners to eradicate the trafficking of children in our city and nation and work to bring justice to victims of these heinous crimes.”

If you believe you are a victim of the sexual abuse perpetrated by Jeffrey Epstein, please contact the FBI at 1-800-CALL FBI, and reference this case.

According to the Indictment[1] unsealed today in Manhattan federal court:

From at least 2002 through at least 2005, JEFFREY EPSTEIN enticed and recruited, and caused to be enticed and recruited, dozens of minor girls to visit his mansion in New York, New York (the “New York Residence”), and his estate in Palm Beach, Florida (the “Palm Beach Residence”), to engage in sex acts with him, after which he would give the victims hundreds of dollars in cash.  In order to maintain and increase his supply of victims, EPSTEIN also paid certain victims to recruit additional underage girls whom he could similarly abuse.  In this way, EPSTEIN created a vast network of underage victims for him to sexually exploit, often on a daily basis, in locations including New York and Palm Beach.

EPSTEIN’s victims were as young as 14 at the time he abused them, and were, for various reasons, often particularly vulnerable to exploitation.  Moreover, EPSTEIN knew that many of his victims were under 18, including because, in some instances, victims expressly told him they were underage.

In creating and maintaining this network of minor victims in multiple states to abuse and exploit sexually, EPSTEIN worked with others, including employees and associates who facilitated his conduct by, among other things, contacting victims and scheduling their sexual encounters with EPSTEIN at the New York Residence and at the Palm Beach Residence.

In both New York and Florida, EPSTEIN perpetuated this abuse in similar ways.  Victims were initially recruited to provide “massages” to EPSTEIN, which became increasingly sexual in nature and would typically include one or more sex acts.  EPSTEIN paid his victims hundreds of dollars in cash for each encounter.

In particular, during encounters at the New York Residence, victims would be taken to a room where they would perform a massage on EPSTEIN, during which EPSTEIN would frequently escalate the nature and scope of physical contact with his victims to include, among other things, sex acts such as groping and direct and indirect contact with the victims’ genitals.  In connection with the encounters, EPSTEIN, or one of his employees or associates, typically paid each victim hundreds of dollars in cash.  Once minor victims were recruited, EPSTEIN or his employees or associates would contact victims to schedule appointments for “massages.”  As a result, many victims were abused by EPSTEIN on multiple subsequent occasions.

To further enable him to abuse underage girls, EPSTEIN asked and enticed certain of his victims to recruit additional minor girls to perform “massages” and similarly engage in sex acts with EPSTEIN.  When a victim would recruit another underage girl for EPSTEIN, he paid both the victim-recruiter and the new victim hundreds of dollars in cash.  Through these victim-recruiters, EPSTEIN maintained a steady supply of new victims to exploit, and gained access to dozens of additional underage girls to abuse.

*                      *                      *

JEFFREY EPSTEIN, 66, is charged with one count of sex trafficking of minors, which carries a maximum sentence of 40 years in prison, and one count of conspiracy to engage in sex trafficking of minors, which carries a maximum sentence of five years in prison.

The statutory maximum and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.

Mr. Berman praised the outstanding investigative work of the FBI and the NYPD.  He also thanked the U.S. Customs and Border Protection for their assistance.

This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Alex Rossmiller, Alison Moe, and Maurene Comey are in charge of the prosecution, with assistance from the Office’s Human Trafficking Co-Coordinator, Abigail Kurland.

The charges contained in the Indictment are merely accusations.  The defendant is presumed innocent unless and until proven guilty.

---

[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation.

Jeffrey Epstein Indictment by Beverly Tran on Scribd

DOD Kosovo Human Traffickin... by on Scribd

Remember, a foster kid has to eat.

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DOJ: Five Members of Mexican Sex Trafficking Organization Sentenced to Prison

This conjugal collaborative included law enforcement jurisdictions of Mexico, Central America, New York, Atlanta, and D.C. 

Notice how this is omitted from media reporting.

Prosecution Dismantled International Sex Trafficking Organization that Forced Young Women and Girls from Mexico and Central America into Prostitution for Over a Decade

Last week in federal district court in Brooklyn, New York, five members of a notorious international criminal organization, known as the Rendon-Reyes Trafficking Organization, were sentenced to prison terms of 15 to 25 years by United States District Court Judge Edward R. Korman. The amount to be paid in restitution will be announced at a later date. Three other defendants are set to be sentenced on Jan. 15. The defendants previously pled guilty to racketeering, sex trafficking, and other federal charges following their arrests in Mexico and the United States, where they were residing illegally. For over a decade, the Rendon-Reyes Trafficking Organization, based in Tenancingo, Tlaxcala, Mexico, smuggled numerous young women and girls from Mexico and Central America into the United States and forced them to engage in prostitution for the Organization’s profit, generating hundreds of thousands of dollars in criminal proceeds that were then laundered back to Mexico. The U.S. Attorney’s Office for the Eastern District of New York and the Department of Justice’s Civil Rights Division prosecuted this case.

“These well-deserved sentences reflect the gravity of the human trafficking crimes these defendants committed,” said Acting Attorney General Whitaker. “The defendants operated an extensive sex trafficking enterprise that preyed on vulnerable young women and girls, deceiving them with false promises, coercing their compliance, and compelling them into submission through beatings, threats, isolation, and intimidation. This prosecution is the result of strong partnerships among the Eastern District of New York, the Civil Right Division’s Human Trafficking Prosecution Unit, the New York Office of the Department of Homeland Security’s Homeland Security Investigations, and our Mexican law enforcement counterparts. The sentences imposed in this case demonstrate our unwavering commitment to working across international borders to dismantle transnational trafficking networks and seek justice on behalf of victims and survivors.”

“These sentencings are the latest chapter in this Office’s long-term commitment to eradicate human trafficking and all forms of modern-day slavery,” stated United States Attorney Donoghue.  “The crimes committed by the members of the Rendon-Reyes Trafficking Organization were brutal and shocking, and I hope that the sentences give the victims in this case some sense of justice.  We will not tolerate the exploitation of women and girls for profit or sexual servitude.”

“These individuals will now face the consequences of their callous criminal actions exploiting women and girls whom they forced into sex slavery for profit. The investigation and prosecution that led to today’s sentencings speak to the strong bilateral relationship between the United States and Mexico, in which both nations are committed to holding accountable those engaged in the ruthless act of human trafficking,” said Homeland Security Investigations Executive Associate Director Derek Benner.  “Investigating human trafficking remains a priority for HSI, whose primary focus is to rescue victims and release them from the grip of their captors. HSI will continue leveraging all of its investigative capabilities to disrupt human trafficking syndicates no matter where in the world they operate.”

The defendants were sentenced to the following prison terms: Jovan Rendon-Reyes, aka Jovani, 32, of Mexico, was sentenced to 20 years in prison; Saul Rendon-Reyes, aka Satanico, 41, of Mexico, was sentenced to 15 years in prison; Felix Rojas, 48, of Mexico, was sentenced to 25 years in prison; Odilon Martinez-Rojas, aka Chino or Saul, 47, of Mexico, was sentenced to over 24 years in prison; and Severiano Martinez-Rojas, 53, of Mexico, was sentenced to over 24 years in prison. Severiano Martinez-Rojas was also sentenced in a related case in the Northern District of Georgia. Those proceedings were transferred to the Eastern District of New York for entry of the defendant’s guilty plea last year, and the cases were consolidated for last week’s sentencing. Defendants Jose Rendon-Garcia, aka Gusano, 35, of Mexico, Guillermina Rendon-Reyes, 48, of Mexico, and Francisco Rendon-Reyes, aka Pancho, 30, of Mexico, will be sentenced on Jan. 15.

According to documents filed in court, between December 2004 and November 2015, members of the Rendon-Reyes Organization, including the defendants, enriched themselves by forcing multiple young women and girls, including the 12 referenced in court documents, to perform countless commercial sex acts throughout the United States and Mexico. The Organization targeted vulnerable women and girls, some as young as 14, from impoverished areas of Mexico and Central America. Male members of the Organization typically used false promises of love and marriage to lure the victims into fraudulent romantic relationships. In some instances, they forcibly abducted the victims, and on one occasion, a victim’s child. Members of the Organization frequently arranged for others to smuggle the victims across the border and into the United States. Once in the United States, members of the Organization utilized different methods to force the victims to engage in prostitution, including severe and repeated beatings, sexual assaults, forced abortions, threats to the victims, their families and children, and psychological harm. Members of the Organization forced the victims to perform as many as 45 sex acts a night and took all of the prostitution proceeds, funneling the money back to Mexico.

Sounds like a foster care home.

The investigation, prosecution, bilateral enforcement action, and extraditions of the defendants apprehended in Mexico were coordinated through the U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative. Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, and restore the rights and dignity of human trafficking victims. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 170 defendants in multiple cases in New York, Georgia, Florida, and Texas, in addition to numerous Mexican federal and state prosecutions of associated sex traffickers. The convictions in this case are also the latest development in the Eastern District of New York’s comprehensive anti-trafficking program, which has to date indicted more than 80 defendants, assisted more than 150 victims, including 45 minors, reunited 19 victims’ children with their mothers, and secured restitution orders of over $4 million on behalf of trafficking victims.

So, does that mean the children who were Legally Kidnapped by Child Protective Services who were raped, drugged as lab rats, tortured, attempted suicide and successful in suicide will be reunited with their parents and made who through restitution because you do know the babies made from these operations end up in foster care.

Just asking.

The investigation of the Rendon-Reyes Trafficking Organization was led by HSI New York’s Trafficking in Persons Unit, the U.S. Attorney’s Office for the Eastern District of New York, and the Department of Justice’s Human Trafficking Prosecution Unit, with assistance from HSI Mexico City Attaché Office, the Department of Justice’s Office of International Affairs, the State Department, Interpol and the New York City Police Department. Assistance was also provided by the FBI’s Atlanta Division, and the U.S. Attorney’s Office of the Northern District of Georgia. The government of Mexico, including Mexico’s Procuraduría General de la República and Policía Federal, also played a prominent role in advancing the bilateral anti-trafficking enforcement efforts in this case.  Non-governmental victim service providers and advocates also dedicated efforts to restore and improve the lives of survivors of trafficking and their families.

Acting Attorney General Matthew Whitaker, Assistant Attorney General Eric Dreiband for the Civil Rights Division, U.S. Attorney Richard P. Donoghue of the Eastern District of New York, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Executive Associate Director Derek Benner made the announcement today.

The case against the Rendon-Reyes Trafficking Organization was investigated by HSI New York’s Trafficking in Persons Unit, and is being prosecuted by Assistant U.S. Attorneys Taryn A. Merkl and Margaret Lee of the Eastern District of New York and Deputy Director for Litigation Benjamin J. Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.

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DOJ: New York DEA Diversion Investigator Charged With Attempting To Produce Child Pornography And Enticing A Minor To Have Sex

I 💘 SDNY.org

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), Keith A. Bonanno, Special Agent in Charge of the Department of Justice Office of the Inspector General (“DOJ OIG”) Cyber Investigations Office, and Guido Modano, Special Agent in Charge of the DOJ OIG New York Field Office, announced today the arrest and filing of charges against FREDERICK L. SCHEININ.  The Complaint charges that between October 2019 and January 2020, SCHEININ attempted to produce child pornography and entice a minor to have sex.  SCHEININ was arrested yesterday and will be presented later today before U.S. Magistrate Judge Katharine H. Parker in Manhattan federal court.

U.S. Attorney Geoffrey S. Berman said:  “As a diversion investigator at the DEA, Frederick Scheinin’s foremost responsibility was to protect the public from illegally diverted drugs.  Instead of fulfilling this worthy mission, Scheinin allegedly spent months attempting to prey on a 14-year-old boy.  This arrest exemplifies that no one is above the law.  Our law enforcement partners will continue to bring all necessary tools to bear to apprehend individuals who wish to do harm to young children, no matter who they are.”

NYPD Commissioner Dermot Shea said:  “I want to commend the U.S. Attorney and our federal partners who, together with our NYPD investigators, work every day to protect the innocent against such alleged reprehensible predators.  I am proud of the undercover work in this case, which has now led to criminal charges against a law enforcement officer who allegedly betrayed his sacred oath.”

DOJ OIG Cyber Investigations Office Special Agent in Charge Keith A. Bonanno said:   “The OIG and our law enforcement partners will thoroughly investigate allegations of abuse or exploitation of children by DOJ employees.  Those who are found guilty of this type of criminal behavior will be brought to justice.”

Up until the time of his arrest, SCHEININ was a diversion investigator in the New York Field Office of the Drug Enforcement Administration (“DEA”).  According to the allegations in the Complaint filed in Manhattan federal court today[1]:

Between October 2019 and January 2020, SCHEININ used a multimedia messaging application on his cellphone to communicate with an undercover law enforcement officer (“UC‑1”) who was posing as a 14-year-old boy.  SCHEININ repeatedly sent sexually explicit images and videos to UC-1 in an attempt to persuade UC-1 to transmit sexually explicit images, photos, and live visual depictions of UC-1 to SCHEININ.  In particular, SCHEININ repeatedly asked UC-1 to transmit images and videos of UC-1’s penis.  The Complaint further alleges that SCHEININ attempted to arrange a meeting with UC-1 at which SCHEININ planned to have sex with UC-1.  Law enforcement arrested SCHEININ yesterday in New York, New York, at a location where SCHEININ said he would meet UC-1.  SCHEININ was in possession of condoms and lubricant at the time of his arrest. 

SCHEININ, 29, of Sunnyside, New York, is charged with one count of attempted production of child pornography, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison, and one count of attempted enticement of a minor, which carries a mandatory minimum sentence of 10 years in prison and maximum sentence of life in prison.  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 will be determined by the judge.

The charges in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.

*                      *                     *           

Mr. Berman praised the outstanding investigative work of the NYPD and the DOJ OIG New York Field Office and Cyber Investigations Office. 

The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant United States Attorney Nicholas Chiuchiolo is in charge of the prosecution.

---

[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

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The Pastoral Plays Of Jorge: DOJ Pops Goldman Sachs In $2.9 Billion Bribery FCPA Case - More To Come

Jorge has been busy, busy, busy!

Where is Melanie?

Happy Fratelli Tuttii!

#maytheheavensfall

Goldman Sachs Charged in Foreign Bribery Case and Agrees to Pay Over $2.9 Billion

The Goldman Sachs Group Inc. (Goldman Sachs or the Company), a global financial institution headquartered in New York, New York, and Goldman Sachs (Malaysia) Sdn. Bhd. (GS Malaysia), its Malaysian subsidiary, have admitted to conspiring to violate the Foreign Corrupt Practices Act (FCPA) in connection with a scheme to pay over $1 billion in bribes to Malaysian and Abu Dhabi officials to obtain lucrative business for Goldman Sachs, including its role in underwriting approximately $6.5 billion in three bond deals for 1Malaysia Development Bhd. (1MDB), for which the bank earned hundreds of millions in fees.  Goldman Sachs will pay more than $2.9 billion as part of a coordinated resolution with criminal and civil authorities in the United States, the United Kingdom, Singapore, and elsewhere. 

Goldman Sachs entered into a deferred prosecution agreement with the department in connection with a criminal information filed today in the Eastern District of New York charging the Company with conspiracy to violate the anti-bribery provisions of the FCPA.  GS Malaysia pleaded guilty in the U.S. District Court for the Eastern District of New York to a one-count criminal information charging it with conspiracy to violate the anti-bribery provisions of the FCPA. 

Previously, Tim Leissner, the former Southeast Asia Chairman and participating managing director of Goldman Sachs, pleaded guilty to conspiring to launder money and to violate the FCPA.  Ng Chong Hwa, also known as “Roger Ng,” former managing director of Goldman and head of investment banking for GS Malaysia, has been charged with conspiring to launder money and to violate the FCPA.  Ng was extradited from Malaysia to face these charges and is scheduled to stand trial in March 2021.  The cases are assigned to U.S. District Judge Margo K. Brodie of the Eastern District of New York.

In addition to these criminal charges, the department has recovered, or assisted in the recovery of, in excess of $1 billion in assets for Malaysia associated with and traceable to the 1MDB money laundering and bribery scheme.   

“Goldman Sachs today accepted responsibility for its role in a conspiracy to bribe high-ranking foreign officials to obtain lucrative underwriting and other business relating to 1MDB,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.  “Today’s resolution, which requires Goldman Sachs to admit wrongdoing and pay nearly three billion dollars in penalties, fines, and disgorgement, holds the bank accountable for this criminal scheme and demonstrates the department’s continuing commitment to combatting corruption and protecting the U.S. financial system.”

“Over a period of five years, Goldman Sachs participated in a sweeping international corruption scheme, conspiring to avail itself of more than $1.6 billion in bribes to multiple high-level government officials across several countries so that the company could reap hundreds of millions of dollars in fees, all to the detriment of the people of Malaysia and the reputation of American financial institutions operating abroad,” said Acting U.S. Attorney Seth D. DuCharme of the Eastern District of New York.  “Today’s resolution, which includes a criminal guilty plea by Goldman Sachs’ subsidiary in Malaysia, demonstrates that the department will hold accountable any institution that violates U.S. law anywhere in the world by unfairly tilting the scales through corrupt practices.”

“When government officials and business executives secretly work together behind the scenes for their own illegal benefit, and not that of their citizens and shareholders, their behavior lends credibility to the narrative that businesses don’t succeed based on the quality of their products, but rather their willingness to play dirty,” said Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office.  “Greed eventually exacts an immense cost on society, and unchecked corrupt behavior erodes trust in public institutions and government entities alike.  This case represents the largest ever penalty paid to U.S. authorities in an FCPA case.  Our investigation into the looting of funds from 1MDB remains ongoing. If anyone has information that could assist the case, call us at 1-800-CALLFBI.”

“1MDB was established to drive strategic initiatives for the long-term economic development of Malaysia. Goldman Sachs admitted today that one billion dollars of the money earmarked to help the people of Malaysia was actually diverted and used to pay bribes to Malaysian and Abu Dhabi officials to obtain their business,” said Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation’s (IRS-CI) Los Angeles Field Office.  “Today’s guilty pleas demonstrate that the law applies to everyone, including large investment banks like Goldman Sachs.  IRS Criminal Investigation will work tirelessly alongside our law enforcement partners to identify and bring to justice those who engage in fraud and deceit around the globe.  When the American financial system is misused for corruption, the IRS will take notice and we will take action.”

According to Goldman’s admissions and court documents, between approximately 2009 and 2014, Goldman conspired with others to violate the FCPA by engaging in a scheme to pay more than $1.6 billion in bribes, directly and indirectly, to foreign officials in Malaysia and Abu Dhabi in order to obtain and retain business for Goldman from 1MDB, a Malaysian state-owned and state-controlled fund created to pursue investment and development projects for the economic benefit of Malaysia and its people.  Specifically, the Company admitted to engaging in the bribery scheme through certain of its employees and agents, including Leissner, Ng, and a former executive who was a participating managing director and held leadership positions in Asia (Employee 1), in exchange for lucrative business and other advantages and opportunities.  These included, among other things, securing Goldman’s role as an advisor on energy acquisitions, as underwriter on three lucrative bond deals with a total value of $6.5 billion, and a potential role in a highly anticipated and even more lucrative initial public offering for 1MDB’s energy assets.  As Goldman admitted — and as alleged in the indictment pending in the Eastern District of New York against Ng and Low — in furtherance of the scheme, Leissner, Ng, Employee 1, and others conspired to pay bribes to numerous foreign officials, including high-ranking officials in the Malaysian government, 1MDB, Abu Dhabi’s state-owned and state-controlled sovereign wealth fund, International Petroleum Investment Company (IPIC), and Abu Dhabi’s state-owned and state-controlled joint stock company, Aabar Investments PJS (Aabar). 

Goldman admitted today that, in order to effectuate the scheme, Leissner, Ng, Employee 1, and others conspired with Low Taek Jho, aka Jho Low, to promise and pay over $1.6 billion in bribes to Malaysian, 1MDB, IPIC, and Aabar officials.  The co-conspirators allegedly paid these bribes using more than $2.7 billion in funds that Low, Leissner, and other members of the conspiracy diverted and misappropriated from the bond offerings underwritten by Goldman.  Leissner, Ng and Low also retained a portion of the misappropriated funds for themselves and other co-conspirators.  Goldman admitted that, through Leissner, Ng, Employee 1 and others, the bank used Low’s connections to advance and further the bribery scheme, ultimately ensuring that 1MDB awarded Goldman a role on three bond transactions between 2012 and 2013, known internally at Goldman as “Project Magnolia,” “Project Maximus,” and “Project Catalyze.” 

Goldman also admitted that, although employees serving as part of Goldman’s control functions knew that any transaction involving Low posed a significant risk, and although they were on notice that Low was involved in the transactions, they did not take reasonable steps to ensure that Low was not involved.  Goldman further admitted that there were significant red flags raised during the due diligence process and afterward — including but not limited to Low’s involvement — that either were ignored or only nominally addressed so that the transactions would be approved and Goldman could continue to do business with 1MDB. As a result of the scheme, Goldman received approximately $606 million in fees and revenue, and increased its stature and presence in Southeast Asia.

Under the terms of the agreements, Goldman will pay a criminal penalty and disgorgement of over $2.9 billion.  Goldman also has reached separate parallel resolutions with foreign authorities in the United Kingdom, Singapore, Malaysia, and elsewhere, along with domestic authorities in the United States.  The department will credit over $1.6 billion in payments with respect to those resolutions.

The department reached this resolution with Goldman based on a number of factors, including the Company’s failure to voluntarily disclose the conduct to the department; the nature and seriousness of the offense, which included the involvement of high-level employees within the Company’s investment bank and others who ignored significant red flags; the involvement of various Goldman subsidiaries across the world; the amount of the bribes, which totaled over $1.6 billion; the number and high-level nature of the bribe recipients, which included at least 11 foreign officials, including high-ranking officials of the Malaysian government; and the significant amount of actual loss incurred by 1MDB as a result of the co-conspirators’ conduct.  Goldman received partial credit for its cooperation with the department’s investigation, but did not receive full credit for cooperation because it significantly delayed producing relevant evidence, including recorded phone calls in which the Company’s bankers, executives, and control function personnel discussed allegations of bribery and misconduct relating to the conduct in the statement of facts.  Accordingly, the total criminal penalty reflects a 10 percent reduction off the bottom of the applicable U.S. sentencing guidelines fine range. 

Low has also been indicted for conspiracy to commit money laundering and violate the FCPA, along with Ng, E.D.N.Y. Docket No. 18-CR-538 (MKB).  Low remains a fugitive.  The charges in the indictment as to Low and Ng are merely allegations, and those defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The investigation was conducted by the FBI’s International Corruption Unit and IRS-CI.  The prosecution is being handled by the Criminal Division’s Fraud Section and the Money Laundering and Asset Recovery Section (MLARS), and the Business and Securities Fraud Section of the U.S. Attorney’s Office for the Eastern District of New York.  Trial Attorneys Katherine Nielsen, Nikhila Raj, Jennifer E. Ambuehl, Woo S. Lee, Mary Ann McCarthy, Leo Tsao, and David Last of the Criminal Division, and Assistant U.S. Attorneys Jacquelyn M. Kasulis, Alixandra Smith and Drew Rolle of the Eastern District of New York are prosecuting the case.  Additional Criminal Division Trial Attorneys and Assistant U.S. Attorneys within U.S. Attorney’s Offices for the Eastern District of New York and Central District of California have provided valuable assistance with various aspects of this investigation, including with civil and criminal forfeitures.  The Justice Department’s Office of International Affairs of the Criminal Division provided critical assistance in this case. 

The department also appreciates the significant assistance provided by the U.S. Securities and Exchange Commission; the Board of Governors of the Federal Reserve System, including the Federal Reserve Bank of New York; the New York State Department of Financial Services, the United Kingdom Financial Conduct Authority; the United Kingdom Prudential Regulation Authority; the Attorney General’s Chambers of Singapore; the Singapore Police Force-Commercial Affairs Division; the Monetary Authority of Singapore; the Office of the Attorney General and the Federal Office of Justice of Switzerland; the judicial investigating authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg; the Attorney General’s Chambers of Malaysia; the Royal Malaysian Police; and the Malaysian Anti-Corruption Commission.  The department also expresses its appreciation for the assistance provided by the Ministry of Justice of France; the Attorney General’s Office of the Bailiwick of Guernsey and the Guernsey Economic Crime Division.

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/foreign-corrupt-practices-act.

MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.

MLARS’s Kleptocracy Asset Recovery Initiative, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, seeks to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office.

Relevant court documents will be uploaded throughout the day and available at the following links: The Goldman Sachs Group Inc. and Goldman Sachs Sdn. Bhd.

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