HOW ST. LUCIA VIOLATED AMERICAN SANCTIONS ON RUSSIA AND PLAYED THE U.S. STATE DEPARTMENT

While the attention of most compliance officers is focused on the allegations of money laundering and corruption in St. Kitts & St. Lucia, our investigation has uncovered an even more sinister development: how the country's Citizenship by Investment (CBI/CIP) passport sales program allowed some of its favorite vendors to apply for passports while the country had banned Russian applicants, to comply with Americans sanctions imposed due to the invasion of the Ukraine. The U.S. State Department had told all five of the East Caribbean states that have a CBI program that they could not pass Russian application fees (in USD$) through their New York banks' correspondent accounts, and all had formally agreed to cease and desist with all Russian applications, including St. Lucia, in March of 2022.

Unfortunately, in an internal maneuver designed to help certain select vendors, St. Lucia continued to process Russian applications after the early 2022 memorandum establishing the ban. This was done for the purposes of financial gain, and the U.S. State Department was not informed. We have a copy of a check showing payment for fees from a Russian applicant, drawn on St. Lucia's correspondent account at BNY Mellon, a clear violation of both the sanctions and the CIP's own ban. Attached please find an official memorandum confirming that the ban was still in place; it was never formally suspended, and no correspondence issued by the CIP in that period exists; Any claims to the contrary are bogus, spurious and without any basis in fact. The US eventually learned that violations were occurring.

Eventually, after an additional consultation with the US Government, a subsequent memorandum confirming the ban was issued in 2023, and some vendors are improperly claiming that it absolves those who illegally made applications for Russians, after March 2022. Therefore, a number of violations of America's Russian sanctions occurred, and as the U.S. State Department was never notified of any suspension of sanctions, which would have had serious consequences for St. Lucia, it was played by both CIP leadership, and the country's government. We trust that the Department of State and the Treasury Department is investigating the specific violations,and will take appropriate action. One of the individuals processing these illegal applications is a lawyer who is a close personal friend of the Deputy Prime Minister.

One final note; one of the post-sanctions Russian applicants reportedly made a USD$200,000 bribe payment, to insure that his illegal application would be processed. The recipients, who shared this cash payment, were a prominent individual in the CIP and a senior government official. The money was delivered by a Panamanian Courier (Testaferro), coming from Antigua.

US STATE DEPARTMENT RECOMMENDS CUBA BE REMOVED FROM LIST OF STATE SPONSORS OF TERRORISM

Notwithstanding the substantial risks* to American businesses that choose to conduct business in Cuba, the US State Department has reportedly completed its review, and has recommended to President Obama that cuba be removed from the list of State Sponsors of Terrorism.  An aide to the US Senate Foreign Relations Committee confirmed this information today; This presents a major problem.

There are rumors that the President will make the announcement in Panama this weekend, at the Summit of the Americas. A large number of American companies have already made preliminary plans to enter the Cuban market as soon as existing legal impediments are removed; the terrorism designation is a major obstacle to business operations.

Removal creates a massive headache for American companies. Compliance officers at these US corporations do not presently possess sufficient access to data on the SDGTs who maintain offices and staff in Havana, and since much of the necessary information is either classified, or when available, appears only in the Arabic language, will be unable to cull out terrorist agents, or their corporate entities, from legitimate Cuban nationals and businesses.

Many of the terrorists have genuine identity documents from countries that cooperate with them, such as Venezuela, but those aliases have been classified by the US Government agencies who are aware of them, and not available to the banking industry. In short, American compliance officers are woefully unprepared to separate members of terrorist organizations from legitimate entities inside Cuba.

Unfortunately, the American intelligence community, and the Federal law enforcement agencies, keep the identities of known terrorists operating in the Western Hemisphere confidential, and quietly monitor the activities of those individuals. This does not help the North American financial community, as those agents, not known by the banks to be  terrorist organization members, gain access to the US banking structure.

Removing Cuba as a State Sponsor of Terrorism will only further expose American corporations to the risks of Federal criminal charges for unwittingly providing material support to terrorism; the casualties will be US companies whose only crime was an eagerness to do business in Cuba.
___________________________________________________________________________
*Removing Cuba from List of State Sponsors of Terrorism exposes American Businessmen

THE UNITED STATES MUST ASSIST SAINT LUCIA IN OBTAINING JUSTICE IN LAND THIEVES FRAUD SCANDAL

 A new administration has arrived in St. Lucia; it faces the problem of making extensive corrections to local real estate titles, due to massive fraud committed by officials in the prior government, in association with corrupt associates and subordinates , who illegally altered real estate records. These criminals conspired together to steal a large amount of St. Lucia real estate from many property owners, some of whose families had held title for generations. This is a huge research project to undertake.

We have previously, on this blog*, detailed the specific types of fraud employed by the conspirators to cheat the true owners out of their land, and readers who are not familiar with these articles are urged to review those articles, by accessing the hyperlinks at the end of this article.

Some of the victims were permanently residing abroad, and others were deceased, with no immediate relatives present in St. Lucia. Still others were poor farmers and absentee landowners having no formal education. Most these victims were cheated out of their properties through artful forgeries of real estate surveys, records, deeds and wills all of which actions resulted in the fraudsters acquiring title, which they promptly thereafter sold to unsuspecting third parties, for value, cleverly conveying good title. This demonstrates a clear knowledge on the part of the conspirators, of how real estate law can be employed to deceive buyers, and make corrective action difficult, if not impossible, at a later date. 

 While we do not know precisely how many local landowners were dispossessed of their realty, given the organized campaign to acquire their lands, the number could be in the hundreds. It will take a team of experienced real estate solicitors, all of whom must be experienced in East Caribbean title laws and procedures, paired with forensic investigators, including disputed documents examiners, to determine which transfers were legitimate, and which were accomplished through forgeries. Additionally, local St. Lucian staff who are familiar with, and can access family histories, and therefore capable of tracing missing or deceased victims, to identify and locate next of kin. It is hoped that leaders of Commonwealth states can recommend, and assemble, qualified individuals, and fund their compensation and costs.

We note that the National Election in St. Lucia, on July 26, 2021, was a clear victory for the Opposition Saint Lucia Labour Party, (https://en.wikipedia.org/wiki-Saint_Lucia_Labour_Party)  which won thirteen of the seventeen seats in the House, while the then-ruling United Workers Party,(https://en.wikipedia.org/wiki/United-Workers-Party(Saint_Lucia), which allegedly supported the land thieves, lost nine of its eleven seats. Thus Opposition victory gave the victims of the land thefts a chance for justice, especially since Richard Frederick won the Castries Central seat in Parliament. 

 Mr. Frederick, an seasoned lawyer with a record of being a strong advocate for St. Lucia's underprivileged, poor and uneducated victims of the country's land thieves. He appears to be best suited,  through training and experience, of all those in Prime Minister Philip J. Pierre's government, to conduct an objective investigation and audit of St. Lucia real estate records, and to obtain justice for the victims.

 

The US State Department is believed to have erroneously and repeatedly revoked Attorney Frederick's US Visa  based solely upon false statements and accusations made by his political enemies in St. Lucia. Frederick asserts that there is not an iota of evidence possessed by any US government agency to support his continuing visa denial by the US Embassy in Barbados.

 

The Honorable Richard Frederick, now appointed as Minister in the Office of the Prime Minister with responsibility for Housing and Local Government,  now requires access with, and travel to, a number of US government agencies located within the Continental United States, to properly investigate the St. Lucia land thieves, who have reportedly concealed their criminal proceeds in the US.

stlucia.loopnews.com/content/frederick-i-accomplished-more-one-term-sarahs-three-terms-553842

We believe that St. Lucia's new Prime Minister must also ask the US State Department, at the highest level, to investigate alleged bias and racism against Frederick, which he claims exists at the US Embassy in Bridgetown, Barbados.

https://ieyenews.com/former/st-lucia-minister-sus-over-visa-revocation/

 The Government of St. Lucia, to effectively discharge its duties, especially the land thieves investigation, must have US visas issued to Richard Frederick and other members of the government, to give them access to agencies located at Washington, D.C. we trust that the US government will recognize its errors, and issue US visas.  

We note that the April 18, 1961 Vienna Convention on Diplomatic Relations remains binding upon the United States, and Prime Minister Pierre could simply invoke its provisions against the obviously racist and biased American officials with the stroke of a pen.

* St. Lucia Land Thieves Exploit Americans and Canadians

The Peter Leroy John Land Fraud Scam is Unraveling

Peter Leroy John, St.Lucia's Fraudster Extraordinaire

US DESIGNATES IRAQI TERRORIST GROUP HARAKAT ANSAR AL-AWFIYA

Individuals and Entities Designated by the State Department Under E.O. 13224

Like the Department of the Treasury, the Department of State has authority to designate individuals and entities under Executive Order (E.O.) 13224. Below are all E.O. 13224 listings designated by the Department of State, as well as those designated under the Annex of the executive order and marked with an asterisk (*). For a full list of all E.O. 13224 designations, including those listed by the Department of the Treasury, please visit the Office of Foreign Assets Control’s website .

Designated Individuals and Entities

Date Designated	Name
June 17, 2024	Harakat Ansar Allah al-Awfiya (HAAA)

The US Department of State designated an Iraqi-based terrorist group on June 17. “The Department of State today designated Harakat Ansar Allah al-Awfiya (HAAA) and HAAA Secretary General Haydar Muzhir Ma’lak al-Sa’idi as Specially Designated Global Terrorists,” the US said. This is important because it shows the US continues to be focused on the threat of Iranian-backed militias in Iraq.

PORTUGAL REFUSES TO EXTRADITE AMERICAN HIJACKER TO US

A court in Portugal last week declined to extradite the American fugitive, George Wright, to the United States, where he has been wanted since hijacking a Delta Airlines aircraft to Algeria in 1972. Wright, who was serving 30 years  for an armed robbery of a petrol station, where the proprietor was killed, had escaped from prison in 1970.

Wright, disguised as a priest, commandeered a flight from Detroit to Miami, with some armed associates, and forced the crew to ultimately fly him to Algeria, collecting $1m before departing Miami. He lived in France, and later in Africa, settling in Portugal in 1993, living under an alias.

The Portuguese appellate court ruled that Wright, now a citizen of that country, could not be extradited. It also found that the Statute of Limitations for his crimes had expired, though that reasoning is flawed, in my humble opinion, since the statute is tolled when the offender is outside the jurisdiction.

The United States is clearly disturbed by the court's ruling, since the violent crimes Wright pled guilty to are "within the terms of our bilateral extradition treaty with Portugal," according* to the US State Department, and Wright was a member of the Black Panther Party, a violent extremist group involved in anti-American terrorist acts in the 1960s and 1970s.

Since 9/11, the decision, by any state, to refuse to extradite any fugitive who is known to have been a member of a terrorist organisation, has been condemned by the European Union, of which Portugal is a member. What impact this case will have in the future is unknown.

_____________________________________________________________________________
*Portugal: Decision to Deny US Extradition Request for George Wright ( US State Department)
http://www.state.gov/r/pa/prs/ps/2011/11/177324.html

AHEAD OF SECRETARY OF STATE MARCO RUBIO'S REGIONAL VISIT, U.S. STATE DEPARTMENT BRIEFING ON REIGNING IN CHINA'S GEOPOLITICAL THREATS POSED BY ITS ILLICIT CARIBBEAN CITIZENSHIP BY INVESTMENT ACTIVITIES, EXPLAINS AMERICAN POLICY AND RESPONSE TO THE NATIONAL SECURITY THREATS CBI POSES

This week, U.S. Secretary of State Marco Rubio is set to embark on his first tour of several Caribbean countries; he will also hold meetings with senior government officials of additional West Indian states while in Jamaica. In advance of his trip, in an On-the-Record briefing, State Department officials and Presidential Advisors detailed the official American position on several topics, including the dangerous role of China in the Citizenship by Investment (CBI/CIP) programs of the East Caribbean states.

To quote from the Briefing,"You mentioned also the Citizenship by Investment. That’s been a longstanding concern we have seen, obviously, in some of these islands in the Caribbean a lot of movement from not only Chinese nationals but Iranian nationals and other countries that affect not only the national security of the United States but, frankly, that affect the security of these islands. That’ll be also an issue for conversation." Additionally, the United States policy on CBI was specifically spelled out here: "So where we want to be is in a place where some of these islands don’t find these citizenship-by-investment programs which attract, unfortunately, nefarious actors from China, Iran, and other countries into the Americas, which then becomes a security challenge for all of us – that we don’t want that to become – CBI should not be a major part of these smaller islands’ GDP. That’s not the goal."

Expect Secretary Rubio to firmly explain America's new assertive foreign policy on controlling bad actors, especially, China, who are using CBI to commit financial crime, engage in espionage against the U.S. and other countries, and create undue influence over the East Caribbean states, which is a direct threat upon America. We note that the penetration by China of Caribbean CBI was the center of the MSR Media documentary “THE MEN WHO SOLD THE CARIBBEAN TO CHINA, “ which was privately screened at the US. Congress in February 2025, before two Congressional Committees. While not yet available to the public, we have seen the program, and it is a damning indictment of widespread systemic fraud, money laundering and corruption by the CBI programs and government leaders responsible for operating them, in coordination with China. The documentary, which was also seen by several US Government officials, exposes the takeover by China PRC of CBI in the Caribbean.

We will be reporting fully on Secretary Rubio's upcoming trip, and his policy announcements and statements regarding the Citizenship by Investment programs, and what reforms must be instituted, if they are to continue to exist for the economic benefit of the people of the Caribbean.

DOJ RESPONDS TO ALEX SAAB MORAN'S MOTION FOR RECONSIDERATION OF DISCOVERY ORDER

 

The US Attorney in the Southern District of Florida has filed a reply to a massive motion, with multiple exhibits, filed by counsel for money laundering defendant Alex Main Saab Moran, to reconsider the Court's ruling on certain Discovery issues, involving records of the Department of State, which Saab Moran asserts may contain evidence that must bear disclosed, pursuant to the Brady and Giglio decisions. Saab believes he can prove Diplomatic Immunity through State Department records. Saab asserts that State had a part in his indictment, and therefore has exculpatory information that he is entitled to.

The DOJ response, entitled United States's Response in Opposition to Defendant's Motion to Reconsider Order on Motion to Compel Discovery, the Government argues that its obligation are "limited to materials within the possession, custody and control of the prosecution team," and that the State Department played no role in prosecutorial decisions.

The key points cited in the Response:

1.  Giglio requires the Government to produce only materials in the possession, custody or control of the prosecution team.

2. The Government's actions to date have satisfied its Discovery obligations, under Eleventh Circuit precedent.

3. The "New Evidence" cited in the Defendant's Motion does not warrant reconsideration. Saab asserts that the State Department "was involved in the investigation leading to [the] charges," without proof, and the relevant rules and case law limit Discovery to prosecution-controlled  materials.

We will report back to our readers when the Court has ruled on the defense's motion; most likely, an adverse ruling will be taken up to the Eleventh Circuit Court of Appeals, and possibly to the US Supreme Court. We do not expect to see a trial anytime soon, as the issue of whether Saab Moran is protected from criminal prosecution  by Diplomatic Immunity exists is potentially dispositive of the case. The US has taken the position that his "diplomatic status" is a cover for transnational money laundering. 

US THREATENS ANTIGUA WITH LOSS OF ACCESS TO AMERICAN FINANCIAL STRUCTURE; ANTIGUA ISSUES DENIAL

 Readers who wondered what was in the letter an American official delivered to Antigua & Barbuda PM Gaston Browne, at the United Nations General Assembly meeting this week need puzzle no more. Insiders in Antigua report that it contained a direct threat to sever Antigua's financial institutions from the American financial structure, meaning close out all correspondent relationships, and disconnect Antigua from the Federal Reserve System, thereby blocking all access, due to rampant official misconduct. This may explain the immediate, and very pubic, arrest of former government official Leroy King, on a 2010 extradition warrant that Antigua had previously intentionally evaded, through a variety of dilatory legal maneuvers.

King's attorney, David Dorsett, has reportedly filed yet another bogus Constitutional appeal of the extradition order, and claimed that his client cannot be extradited while the appeal is pending, in another in a long list of frivolous actions. Dorsett, it is important to note, is also fighting the extradition of another of his high-profile criminal clients, the Indian fugitive Mehul Choksi, whose case has also been reported extensively on this blog. Dorsett claims that Choksi is innocent of the charges pending against him in India, where he is the Most Wanted financial criminal, due to losses in the billions of dollars.

Antigua's Ambassador to the United States, Sir Ronald Sanders, has denied that the State Department wrote or delivered such a letter to the Prime Minister, and stated that in any event, protocol requires that such a letter be delivered directly to the ambassador, and that he has not received such a letter. he further stated that his contacts the US State Department awaire of such a letter. Our article above did not state which department, agency or office of the US Government wrote the letter in question.

David Dorsett QC

Corrrupt Antiguan government officials, who have long boasted that the United States would take no action against their nation, are now reportedly fearful that more direct American Government actions, of a financial nature, will be taken against their country for its lack of cooperation in international matters, including extradition, transparency in its CBI and diplomatic passport issuances, and close relationship with known fraudsters and career criminals.

 Antigua's fragile tourist industry is totally dependent upon the regular arrival of US and Canadian citizens via commercial aviation, and that could be the next target of an Uncle Sam who is quite unhappy with how Antigua is being governed. Look for some additional American government actions, unless Antigua institutes much needed reforms.

US STATE DEPARTMENT POSTS $7 MILLION REWARD FOR RUSSIAN SANCTIONS EVADER WANTED FOR MONEY LAUNDERING

WANTED: ARTEM ALEKSANDROVICH USS
REWARD OF UP TO $7,000,000 

NAME: Artem Aleksandrovich Uss
ALIASES:   Artyom Uss
DOB: April 22, 1982
POB: Russia
NATIONALITY: Russia
CITIZENSHIP: Russia
HEIGHT: 5’10”
WEIGHT: 180 lbs
HAIR COLOR: Brown
EYE COLOR: Blue/Green

Artem Uss is the son of a Russian politician who served as the governor of Russia’s Krasnoyarsk Krai region.  Uss had ownership interests in several Russian companies in Krasnoyarsk Krai and elsewhere, including a coal mining company in Krasnoyarsk.  Uss also held a senior position with a subsidiary of a Russian state-controlled oil conglomerate.  The FBI determined Uss was a close associate of Russian oligarch Oleg Deripaska.

Uss orchestrated a transnational fraud, smuggling, and money laundering operation under the umbrella of Nord-Deutsche Industrieanlagenbau GmbH (NDA GmbH), a privately held industrial equipment and commodity trading company located in Hamburg, Germany.  As owner of NDA GmbH with another co-conspirator, Uss engaged in a variety of activities in violation of U.S. criminal laws and U.S. and other sanctions, including:  1) the unlawful export of millions of U.S. dollars in military and sensitive dual-use technologies from the United States to Russia; and 2) the use of the U.S. financial system to smuggle millions of barrels of oil from Venezuela.  

On September 26, 2022, a federal grand jury in the Eastern District of New York returned a 12-count sealed indictment against Uss and six other co-defendants.  Uss was charged with four counts: 1) conspiracy to defraud a department or agency of the United States; 2) conspiracy to violate the International Emergency Economic Powers Act (IEEPA); 3) conspiracy to commit bank fraud, and 4) conspiracy to commit money laundering for the oil smuggling and IEEPA scheme.  

The U.S. Department of State is offering a REWARD OF UP TO $7,000,000 for information leading to the arrest and/or conviction of Artem Aleksandrovich Uss.

OUR QUESTIONS ABOUT A USD$200,000 PAYMENT IN ST. LUCIA SIMPLY CANNOT WAIT FOR THE END OF CARNIVAL

If you read our prior article, HOW ST. LUCIA VIOLATED AMERICAN SANCTIONS ON RUSSIA AND PLAYED THE U.S. STATE DEPARTMENT, you know that we have in hand a complete set of documents that were used to apply under St. Lucia's citizenship by Investment (CBI/CIP) program in late 2022. The reason we published that article is that the applicant was a citizen of the Russian Federation, notwithstanding that a ban had existed on sales of any CBI products to Russians, due to the United States sanctions on Russia, which prohibited the deposit of any US Dollars from Russians into American banks, as St. Lucia has correspondent accounts, into which it places payments from CBI applicants. We have all the application forms, Russian passport and birth certificate, and applicant's CV, for one Alexander Tugushev, whose application was duly accepted for processing by the St. Lucia CIP Unit, together with a check drawn on the Bank of St. Lucia's New York correspondent account at the Bank of New York Mellon, notwithstanding the ban. What's wrong with this picture?

Therefore, we have a number of questions, which we are hereby directing at Deputy Prime Minister Ernest Hilaire, CIP Chairman Lorne Theophilus, and attorney Thaddeus Antoine:
(1) Did Mr. Theophilus meet with a Panamanian courier, Carlos Benitez, arriving from Antigua, who delivered USD$200,000 in cash?
(2) Did Theophilus and Benitez then bring the Russian national, Alexander Tugushev, to a meeting at the offices of Antoine, to complete his CBI application?
(3) Why would attorney Antoine even try to process a Russian citizen for CBI, in the middle of US sanctions, and the CIP ban?
(4) What was the role of Minister Hilaire in all that intrigue?
(5) How was the cash divided up, and to whom?
(6) Why are these gentlemen now asking Tugushev for an additional USD$100,000 in cash?

These are best questions for an outside, independent investigator to determine. The people of St. Lucia deserve straight answers, as they are the constituents of these officials, so that they can take whatsoever action they deem necessary and proper to insure that justice is done. The findings of fact should also be submitted to the U.S. State Department for appropriate action regarding the sanctions violations.

CARIBBEAN ASYLUM DEALS STIR QUIET, BUT MISPLACED, EXPECTATIONS OVER FINANCIAL SCRUTINY FROM THE U.S.

Antigua & Barbuda, and Dominica, have confirmed agreements with the United States to accept asylum seekers transferred from U.S. borders,  as part of Washington's broader effort to manage illegal migration flows. A senior Caribbean diplomat, speaking on condition of anonymity,  stated that some regional leaders believe that cooperation on asylum could reduce U.S. scrutiny of offshore wealth and financial structures, including assets linked to politically connected individuals (Politically Exposed Persons also known as PEPs). The wealth offshore, from Chinese corruption and illicit money from the Maduro  regime, is a major U.S. concern.

Some constituents in those countries have voiced objections, asserting that only those states' Parliaments have the legal authority to modify immigration laws, and that they fear the effect the arrival of a significant number non-English speaking deportees might have on their small states. 

No formal assurances from the U.S. were described, but the diplomat said that there is an expectation among some officials that enforcement pressure could ease. The diplomat also disclosed that other Caribbean states are in negotiation with Washington over similar arrangements. Legal and policy experts have concluded that such expectations are naive, and made by local leaders to pacify voters upset with the enactment of new visa entry into America restrictions, noting that  cooperation on migration does not constrain the authority of the U.S. Department of Justice and the US Department of the Treasury, whose actions are governed by statute, not diplomatic arrangements or agreements. Neither Caribbean governments have publicly linked the asylum deal to financial matters. 

In the meantime, the U.S. State Department has imposed a USD$15,000 visa bond fee on Antigua & Barbuda and Dominica, for visa applications, so things are not getting better for citizens of those countries.

US CONGRESSMAN GEORGE SANTOS CHARGED WITH MONEY LAUNDERING, A DOZEN OTHER FELONIES

Congressman George Santos Charged with Fraud, Money Laundering, Theft of Public Funds, and False Statements

Wednesday, May 10, 2023

For Immediate Release

U.S. Attorney's Office, Eastern District of New York

Santos Allegedly Embezzled Contributions from Supporters, Fraudulently Obtained Unemployment Benefits, and Lied in Disclosures to the House of Representatives

CENTRAL ISLIP, NY – A 13-count indictment was unsealed today in the United States District Court for the Eastern District of New York charging George Anthony Devolder Santos, better known as “George Santos,” a United States Congressman representing the Third District of New York, with seven counts of wire fraud, three counts of money laundering, one count of theft of public funds, and two counts of making materially false statements to the House of Representatives.

The indictment was returned yesterday under seal by a federal grand jury sitting in Central Islip, New York. Santos was arrested this morning and will be arraigned this afternoon before U.S. Magistrate Judge Arlene R. Lindsay at the federal courthouse in Central Islip, New York.

Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Anne T. Donnelly, District Attorney, Nassau County, announced the charges.

“This indictment seeks to hold Santos accountable for various alleged fraudulent schemes and brazen misrepresentations,” stated United States Attorney Peace.  “Taken together, the allegations in the indictment charge Santos with relying on repeated dishonesty and deception to ascend to the halls of Congress and enrich himself.  He used political contributions to line his pockets, unlawfully applied for unemployment benefits that should have gone to New Yorkers who had lost their jobs due to the pandemic, and lied to the House of Representatives. My Office and our law enforcement partners will continue to aggressively root out corruption and self-dealing from our community’s public institutions and hold public officials accountable to the constituents who elected them.”

“The Criminal Division’s Public Integrity Section is committed to rooting out fraud and corruption, especially when committed by our elected officials,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As alleged, Santos engaged in criminal conduct intended to deceive and defraud the American public. As this indictment reflects, the Department of Justice will hold accountable anyone who engages in such criminality.”

“As today's enforcement action demonstrates, the FBI remains committed to holding all equally accountable under the law.  As we allege, Congressman Santos committed federal crimes, and he will now be forced to face the consequences of his actions.  I would like to commend the diligent efforts of the investigative and prosecutorial teams in this matter,” stated FBI Assistant Director-in-Charge Driscoll.

“At the height of the pandemic in 2020, George Santos allegedly applied for and received unemployment benefits while he was employed and running for Congress,” stated District Attorney Donnelly.  “As charged in the indictment, the defendant’s alleged behavior continued during his second run for Congress when he pocketed campaign contributions and used that money to pay down personal debts and buy designer clothing. This indictment is the result of a lengthy collaboration between law enforcement agencies, and I thank our partners at the U.S. Attorney’s Office, the Department of Justice and the Federal Bureau of Investigation for their dedication to rooting out public corruption.” 

Mr. Peace also thanked the U.S. Department of Labor, Office of Inspector General, the New York State Department of Labor (NYS DOL), and the Queens County District Attorney’s Office for their assistance.

As alleged in the indictment, Santos, who was elected to Congress last November and sworn in as the U.S. Representative for New York’s Third Congressional District on January 7, 2023, engaged in multiple fraudulent schemes.

Fraudulent Political Contribution Solicitation Scheme

Beginning in September 2022, during his successful campaign for Congress, Santos operated a limited liability company (Company #1) through which he allegedly defrauded prospective political supporters.  Santos enlisted a Queens-based political consultant (Person #1) to communicate with prospective donors on Santos’s behalf.  Santos allegedly directed Person #1 to falsely tell donors that, among other things, their money would be used to help elect Santos to the House, including by purchasing television advertisements. In reliance on these false statements, two donors (Contributor #1 and Contributor #2) each transferred $25,000 to Company #1’s bank account, which Santos controlled.

As alleged in the indictment, shortly after the funds were received into Company #1’s bank account, the money was transferred into Santos’s personal bank accounts—in one instance laundered through two of Santos’s personal accounts.  Santos allegedly then used much of that money for personal expenses.  Among other things, Santos allegedly used the funds to make personal purchases (including of designer clothing), to withdraw cash, to discharge personal debts, and to transfer money to his associates.  

Unemployment Insurance Fraud Scheme

Beginning in approximately February 2020, Santos was employed as a Regional Director of a Florida-based investment firm (Investment Firm #1), where he earned an annual salary of approximately $120,000.  By late-March 2020, in response to the outbreak of COVID-19 in the United States, new legislation was signed into law that provided additional federal funding to assist out-of-work Americans during the pandemic.

In mid-June 2020, although he was employed and was not eligible for unemployment benefits, Santos applied for government assistance through the New York State Department of Labor, allegedly claiming falsely to have been unemployed since March 2020.  From that point until April 2021—when Santos was working and receiving a salary on a near-continuous basis and during his unsuccessful run for Congress—he falsely affirmed each week that he was eligible for unemployment benefits when he was not.  As a result, Santos allegedly fraudulently received more than $24,000 in unemployment insurance benefits.

False Statements to the House of Representatives

Finally, the indictment describes Santos’s alleged efforts to mislead the House of Representatives and the public about his financial condition in connection with each of his two Congressional campaigns.

Santos, like all candidates for the House, had a legal duty to file with the Clerk of the House of Representatives a Financial Disclosure Statement (House Disclosures) before each election.  In each of his House Disclosures, Santos was personally required to give a full and complete accounting of his assets, income, and liabilities, among other things.  He certified that his House Disclosures were true, complete, and correct.

In May 2020, in connection with his first campaign for election to the House, Santos filed two House Disclosures in which he allegedly falsely certified that, during the reporting period, his only earned income consisted of salary, commission, and bonuses totaling $55,000 from another company (Company #2), and that the only compensation exceeding $5,000 he received from a single source was an unspecified commission bonus from Company #2.  In actuality, Santos allegedly overstated the income he received from Company #2 and altogether failed to disclose the salary he received from Investment Firm #1.

In September 2022, in connection with his second campaign for election to the House, Santos filed another House Disclosure, in which he allegedly overstated his income and assets.  In this House Disclosure, he falsely certified that during the reporting period:

• He had earned $750,000 in salary from the Devolder Organization LLC, a Florida‑based entity of which Santos was the sole beneficial owner;
• He had received between $1,000,001 and $5,000,000 in dividends from the Devolder Organization LLC;
• He had a checking account with deposits of between $100,001 and $250,000; and
• He had a savings account with deposits of between $1,000,001 and $5,000,000. 

As alleged in the indictment, these assertions were false: Santos had not received from the Devolder Organization LLC the reported amounts of salary or dividends and did not maintain checking or savings accounts with deposits in the reported amounts.  Further, Santos allegedly failed to disclose that, in 2021, he received approximately $28,000 in income from Investment Firm #1 and more than $20,000 in unemployment insurance benefits from the NYS DOL.

The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted of the charges, Santos faces a maximum penalty of 20 years in prison for the top counts.  A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI is investigating the case with assistance from the Nassau County District Attorney’s Office and the IRS-Criminal Investigation.

The government’s case is being prosecuted by the Office’s Public Integrity Section, the Long Island Criminal Division, and the Criminal Division’s Public Integrity Section.  Assistant United States Attorneys Ryan Harris, Anthony Bagnuola, and Laura Zuckerwise, along with Trial Attorneys Jolee Porter and Jacob Steiner, are in charge of the prosecution with assistance from Paralegal Specialist Rachel Friedman. Senior Litigation Counsel Victor R. Salgado of the Criminal Division’s Public Integrity Section provided substantial contributions to the prosecution.

The Defendant:

GEORGE ANTHONY DEVOLDER SANTOS
Age:  34
Washington, District of Columbia

E.D.N.Y. Docket No. 23-CR-197

Contact

John Marzulli
Danielle Blustein Hass
U.S. Attorney's Office
(718) 254-6323

Updated May 10, 2023

---

Attachment

Indictment   [PDF, 9 MB]

Topics