Northern District of New York

Strauss Ventures LLC, doing business as The Grand Health Care System, and 12 affiliated skilled nursing facilities (collectively, the Grand) have agreed to resolve allegations that they violated the False Claims Act by knowingly billing federal health care programs for therapy services that were unreasonable, unnecessary, unskilled or that simply did not occur as billed.

“We expect nursing facilities to provide only reasonable and appropriate amounts of skilled rehabilitation therapy service to their residents and to bill government healthcare programs only for the services actually provided,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department's Civil Division. “The department is committed to protecting both vulnerable nursing home patients and taxpayers against fraudulent conduct by unscrupulous actors.”

The settlement resolves allegations that, from as early as Jan. 1, 2014, to Sept. 30, 2019, the Grand knowingly submitted false claims for rehabilitation therapy for residents at 12 facilities Strauss Ventures owned and operated. During this period, Medicare Part A (Medicare’s hospital insurance, which also pays for care in a skilled nursing facility in some circumstances) and TRICARE (the federal health care program for the Department of Defense) paid for such services at rates that varied based on the number of minutes of skilled rehabilitation therapy provided. The Grand allegedly submitted bills where the reimbursement claimed was based on providing more therapy than was reasonable and necessary, or in some cases where the therapists did not provide the amount of therapy reported.

As part of the settlement, the Grand admitted that certain now-former Grand management level employees implemented quotas that each of the 12 facilities was expected to reach, including quotas relating to beneficiaries’ lengths of stay and to the percentage of beneficiaries billed at the highest reimbursement level. To meet these quotas, facilities often scheduled patients to receive therapy without consideration of what was reasonable and necessary based on the individual patients’ clinical condition. In addition, the Grand directed that no more than three patients be discharged from any facility per week and instructed that no Medicare Part A patients should be discharged from rehabilitation therapy unless it had been discussed with corporate officials. The Grand admitted that this resulted in some Medicare beneficiaries “staying on therapy longer than was reasonable and medically necessary.”

The Grand acknowledged that there were various instances where supervisory officials, who did not personally evaluate or treat patients, set or adjusted the number of minutes of therapy that a Medicare patient would receive. The Grand also acknowledged that there were instances where supervisory personnel falsified the number of therapy minutes in the Grand’s electronic recordkeeping system or instructed subordinates to do so, well after the therapy was allegedly rendered.

“Today’s settlement protects patients and taxpayers by ensuring that medical treatment is dictated by patient need and not by financial motive,” said U.S. Attorney Carla B. Freedman for the Northern District of New York. “Skilled nursing facilities provide important services to a vulnerable population, and we will continue to hold them accountable when they provide patients with unnecessary services and falsify records.”

The settlement also resolves federal allegations that the Grand submitted false claims to Medicaid for services rendered at its Pawling, New York, nursing home between Jan. 1, 2016, and June 30, 2021. These claims were allegedly false because the reimbursement rate was inflated by data inaccurately reflecting the degree of care, including rehabilitation therapy services, needed by Medicaid patients there.

The Grand has also entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires an independent review organization to annually assess the medical necessity and appropriateness of therapy services billed to Medicare.

“Violations of the False Claims Act are absolutely unacceptable and will not be tolerated by the FBI and its partners,” said Executive Assistant Director Michael Nordwall of the FBI’s Criminal, Cyber, Response and Services Branch. “We will continue our work of protecting the American taxpayer by relentlessly pursuing businesses that do not comply with the rule of law. If you bill federal health care programs in an unnecessary manner, there will be consequences.”

“As a part of this settlement, the defendants acknowledged that they obtained funds from the Medicare program to which they were not entitled,” said Special Agent in Charge Naomi Gruchacz of HHS-OIG. “Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”

“Protecting the integrity of the healthcare system for our military members and their families is a top priority of the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General,” said Acting Special Agent in Charge Brian J. Solecki of the DCIS Northeast Field Office. “DCIS will continue to work with its law enforcement partners and the Department of Justice to hold Department of Defense contractors accountable for their fraudulent activity and ensure America's service members are not subject to unnecessary risk.”

The settlement resolves a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Stacey Rosenberger and Kelley Retig, former providers of rehabilitation therapy at the Grand. The Act allows private persons to file civil actions on behalf of the government and share in any recovery. Under the settlement, the whistleblowers will receive approximately $4,047,000 of the settlement proceeds. The case is captioned United States ex rel. Rosenberger and Retig v. Strauss Ventures, LLC, et al., No. 1:19-cv-1311 (N.D.N.Y.).

The U.S. Attorney’s Office for the Northern District of New York; the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; HHS-OIG’s New York Region; the FBI Albany Field Office; DCIS, Syracuse Resident Agency and the New York State Attorney General’s Office investigated the matter.

Senior Trial Counsel Christelle Klovers of the Civil Division's Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Adam J. Katz for the Northern District of New York prosecuted the case.

Settlement

ALBANY, NEW YORK – Adam Gomez, age 27, of Brooklyn, New York, was sentenced today to 11 months in prison, to be followed by 3 years of supervised release, for possessing a handgun with an obliterated serial number.

United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.

As part of his prior guilty plea, Gomez admitted that on September 8, 2022, in a parking lot of a shopping mall in Albany County, he unlawfully possessed a Glock 17 handgun with an obliterated serial number. 

HSI investigated the case. Assistant U.S. Attorney Rick Belliss prosecuted the case.

ALBANY, NEW YORK – Ocyris Morgan, age 36, of Schenectady, New York, was sentenced today to 188 months in prison for possessing methamphetamine with the intent to sell it.

United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

Morgan admitted that he intended to sell the 21.4 grams of methamphetamine law enforcement seized from his house on June 1, 2023, and when he overheard agents saying they found between one-half and one ounce of methamphetamine, Morgan corrected them, “21.7, to be exact.”  Morgan also admitted to receiving $10,130 over the course of 12 instances in which he sold a total of 93 grams of methamphetamine and 50 grams of cocaine base to several customers.  He further admitted to possessing a firearm and bullet-proof vest.

Chief United States District Judge Brenda K. Sannes also imposed a 4-year term of supervised release and ordered Morgan to forfeit the $10,130 he made from the drug sales. 

The FBI’s Capital District Safe Streets Task Force—made up of FBI Special Agents as well as members of other federal, state, and local law enforcement agencies, including the Schenectady Police Department—investigated the case, which Assistant U.S. Attorney Jonathan S. Reiner prosecuted.

SYRACUSE, NEW YORK – Johannes Vulto, age 64, a former raw milk cheese manufacturer, and Vulto Creamery LLC, the company Vulto founded and owned, were each sentenced today in federal court in Syracuse after each previously pleading guilty to one misdemeanor count of causing the introduction of adulterated food into interstate commerce, relating to the sale and distribution of cheese that was linked to a 2016-2017 outbreak of listeriosis, the disease caused by the pathogen Listeria monocytogenes. 

Vulto was sentenced to 3 years of probation and ordered to pay a fine of $100,000, and to perform 240 hours of community service. Vulto Creamery LLC, which no longer operates, was sentenced to 1 year of probation. United States Attorney Carla B. Freedman and Special Agent in Charge Fernando McMillan, of the U.S. Food and Drug Administration’s Office of Criminal Investigations New York Field Office, announced the sentences.

In previously pleading guilty, Vulto admitted that he oversaw operations at the Vulto Creamery manufacturing facility in Walton, New York, including those relating to sanitation and environmental monitoring. Vulto and Vulto Creamery both admitted that between December 2014 and March 2017, they caused the shipment in interstate commerce of adulterated cheese. According to the plea agreement, environmental swabs taken at the Vulto Creamery facility between approximately July 2014 and February 2017 repeatedly tested positive for Listeria species. The Listeria family includes both harmless species and L. monocytogenes, which can cause listeriosis in humans.

Listeriosis is a severe, invasive illness that can be life-threatening in some cases. Persons who have the greatest risk of experiencing listeriosis due to consumption of foods contaminated with L. monocytogenes are pregnant women and their newborns, the elderly and persons with weakened immune systems.

In March 2017, after the FDA linked Vulto Creamery’s cheese to an outbreak of listeriosis, Vulto shut down the Vulto Creamery facility and issued a partial recall that was expanded to a full recall within weeks. According to the Centers for Disease Control and Prevention, the listeriosis outbreak resulted in eight hospitalizations and two deaths.

The case was investigated by the FDA’s Office of Criminal Investigations, and it was prosecuted by Senior Trial Attorney James T. Nelson of the Civil Division’s Consumer Protection Branch and Northern District of New York Assistant U.S. Attorney Michael F. Perry.

Further information about the case is posted under “Information for Victims in Large Cases” at the Consumer Protection Branch’s website: www.justice.gov/civil/consumer-protection-branch. For more information about the enforcement efforts of the Consumer Protection Branch visit www.justice.gov/civil/consumer-protection-branch.

ALBANY, NEW YORK – Aaron Griesche, age 41, of Niskayuna, New York, was sentenced today to 135 months of imprisonment, to be followed by 10 years of supervised release, for possessing child pornography. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

As part of his prior guilty plea, Griesche admitted that on July 11, 2021, he possessed child pornography on a USB flash memory stick found in his residence.  Griesche admitted that he had purchased the memory stick from an online retailer and transferred numerous videos of child pornography from the Internet to the device.

In addition to the imprisonment and supervised release terms, Griesche was ordered to pay a total of $18,000 in restitution to child victims depicted in the files he possessed.

The FBI and its Child Exploitation Task Force investigated this case.  The FBI’s Child Exploitation Task Force includes members of federal, state, and local law enforcement agencies. Assistant United States Attorney Dustin C. Segovia prosecuted the case as part of Project Safe Childhood.

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).  Project Safe Childhood marshals federal, state, and local resources to better locates, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

SYRACUSE, NEW YORK – Joseph Thompson, age 37, of Hogansburg, New York, pled guilty yesterday to possession with intent to distribute a controlled substance and possession of firearms in furtherance of a drug trafficking crime.

United States Attorney Carla B. Freedman and Bryan Miller, Special Agent in Charge of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), New York Field Division, made the announcement.

As part of his guilty plea, Thompson admitted that in June 2023, he arranged to meet another individual at a parking lot in Massena, NY, for the purpose of selling marijuana in exchange for firearms. Thompson admitted that he gave the individual approximately 18 pounds of marijuana in exchange for 7 semiautomatic pistols and ammunition magazines. During the transaction, Thompson said that he was a “middle guy,” and that he had a contact in Montreal who would pay him approximately $2,000 to $2,300 for each firearm. Thompson was arrested immediately after the transaction.

At sentencing, Thompson faces at least five years and up to life in federal prison, a total maximum fine of $500,000, and a term of post-imprisonment supervised release of at least 2 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

ATF investigated the case, with assistance from Quebec Provincial Police, St. Regis Tribal Police, New York State Police, U.S. Homeland Security Investigations, U.S. Customs and Border Protection, St. Lawrence County Sheriff’s Office, Massena Police Department, and U.S. Bureau of Industry and Security. Assistant U.S. Attorney Matthew J. McCrobie is prosecuting the case.

ALBANY, NEW YORK – Kamaro Campbell, age 42, of Albany, pled guilty today to possessing cocaine and fentanyl with the intent to distribute them and to possessing a firearm in furtherance of that drug trafficking crime.

United States Attorney Carla B. Freedman and Special Agent in Charge Frank A. Tarentino III of the U.S. Drug Enforcement Administration (DEA) New York Division made the announcement.

The charges to which Campbell pled guilty carry a combined mandatory prison sentence of between 10 years and life; a combined fine of up to $5,250,000; and a term of supervised release of at least 4 years and up to life.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

Agents found 105 grams of fentanyl, 95 grams of cocaine, and a fanny pack containing a loaded pistol and $15,000 all inside of Campbell’s bedroom closet when executing a search warrant.  A separate court-ordered search of Campbell’s storage unit led to the recovery of an additional 105 grams of cocaine.  Over the course of five law enforcement operations leading up to those searches, Campbell collectively sold 155 grams of cocaine and 74 grams of methamphetamine.

The DEA is investigating the case, which Assistant U.S. Attorney Jonathan S. Reiner is prosecuting.

ALBANY, NEW YORK – Elizabeth Lashley, a/k/a “Elizabeth Bonilla,” age 42, of Watervliet, New York, has been indicted on wire fraud charges for fraudulently obtaining pandemic-related unemployment insurance benefits in multiple states.

United States Attorney Carla B. Freedman; Jonathan Mellone, Special Agent in Charge, Northeast Region, United States Department of Labor, Office of Inspector General (USDOL-OIG); Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.

Lashley was arraigned in federal court today on an indictment alleging that from about May 2020 to July 2020, she fraudulently obtained unemployment insurance benefits worth more than $65,000 by submitting applications for benefits in her own name or an alias with the state workforce agencies of California, Arizona, and Massachusetts. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.

The wire fraud charges carry a maximum term of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

The case is being investigated by USDOL-OIG, USPIS, and HSI, with assistance from the Albany Police Department. Assistant U.S. Attorneys Matthew M. Paulbeck, Joseph S. Hartunian, and Joshua R. Rosenthal are prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

ALBANY, NEW YORK –Jason Miller, age 33, of Plattsburgh, New York, was sentenced today to serve 120 months in federal prison for possession of child pornography.

United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

As part of his guilty plea, Miller admitted that on March 17, 2021, he possessed images on his cell phone of minors engaged in sexually explicit conduct. The defendant’s conduct was uncovered during a joint law enforcement investigation into an online group sharing images of child pornography on Kik, a social media messaging application. The defendant admitted to receiving, distributing, and possessing child pornography on Kik.

United States District Judge Mae A. D’Agostino also imposed a term of 15 years of supervised release, which will start after Miller is released from prison. Miller will also be required to register as a sex offender.

Miller was previously convicted on May 16, 2016, in Clinton County Court of disseminating indecent material to minors in the first degree. Following multiple violations of probation, he was sentenced to 16 months to 4 years’ imprisonment.

The FBI investigated this case as part of Project Safe Childhood. Assistant U.S. Attorney Carling Dunham prosecuted the case.

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

SYRACUSE, NEW YORK – William Soto, age 32, of Springfield, Massachusetts, pled guilty today to a federal indictment charging him with twelve counts of theft of government property, United States Attorney Carla B. Freedman and Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS) announced.

During the plea, Soto admitted that, on twelve separate occasions, he used fraudulent checks to purchase more than $30,000 worth of United States Postal Service postage stamps over the course of two days in Oneida County, Oswego County, and Onondaga County in August 2023. In one instance, he bought $9,438.00 in stamps from a post office in Oswego County using a fake check.

Sentencing is scheduled for October 29, 2024. Soto faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

The USPIS is investigating the case with the help of the City of Fulton Police Department and Special Assistant U.S. Attorney Paul Tuck is prosecuting the case.

ALBANY, NEW YORK – Leon “Sam” Ostrander, age 50, of Johnstown, New York, pled guilty today to possessing with intent to distribute methamphetamine and cocaine.

United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.

Ostrander admitted that on January 17, 2024, he possessed over 400 grams of actual methamphetamine and 1.2 kilograms of cocaine seized by law enforcement during a search warrant executed at Ostrander’s home.  Ostrander further admitted that he possessed the substances with the intent to sell them.

Ostrander will be sentenced on October 25, 2024 by United States District Judge Anne M. Nardacci.  Ostrander faces at least 10 years and up to life in prison, a fine of up to $10 million, and a term of post-release supervision of between 5 years and life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

The DEA and the Johnstown Police Department investigated the case. Assistant U.S. Attorney Mikayla Espinosa is prosecuting the case.

ALBANY, NEW YORK –Todd Ward, a/k/a “Fats,” age 45, of Troy, New York, pled guilty earlier this week to conspiring to defraud the New York State Department of Labor (NYSDOL) by obtaining unemployment insurance benefits under the name of another person, including benefits funded by the federal government in response to the COVID-19 pandemic.

The announcement was made by United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Jonathan Mellone, Special Agent in Charge, Northeast Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG).

Ward admitted that he provided Carl J. DiVeglia III with the personal identifying information of another individual, which DiVeglia used to file a false claim via the NYSDOL website.  Ward further admitted that as a result of the fraudulent applications submitted by DiVeglia, the NYSDOL paid out $152,086 in unemployment insurance benefits.  As part of his plea agreement, Ward agreed to pay $152,086 in restitution to the State of New York.  DiVeglia previously pled guilty to fraudulently obtaining $1.6 million in unemployment insurance benefits as part of the scheme.  Ward’s three co-defendants, his brother Christopher Ward, Rocco Resciniti, and Jamaine Myers, have all pled guilty to related offenses.

Ward faces a maximum of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years when he is sentenced on November 14, 2024, by U.S. District Judge Glenn T. Suddaby. 

The FBI and USDOL-OIG are investigating this case, with assistance from the NYSDOL Office of Special Investigations, and Assistant U.S. Attorneys Joseph S. Hartunian and Joshua R. Rosenthal are prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

SYRACUSE, NEW YORK – Following a four-day jury trial in federal court, Steven Valder, age 34, of Syracuse, was convicted of all counts of an indictment charging him with sexual exploitation and child pornography offenses.  United States Attorney Carla B. Freedman, Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Superintendent Steven G. James made the announcement.

Valder was convicted of two counts of Sexual Exploitation of a Child for producing sexually explicit images of a 13-year-old boy in 2023, one count of Committing a Felony Offense Against a Minor as a Registered Sex Offender, and one count of Receipt of Child Pornography.  The jury also found that Valder committed the Sexual Exploitation offenses after a prior conviction for a sex offense against a minor. 

The evidence at trial showed that approximately one year after being released from prison for 2010 convictions in Cayuga County Court for Criminal Sexual Act in the First Degree (forcible anal sexual conduct with a 14-year-old child), and in Federal Court for transportation and possession of child pornography, Valder sexually abused a 13-year old boy multiple times in multiple locations around the City of Syracuse and photographed that abuse, and that he received child pornography over the Internet through Russian applications he had downloaded to his phone. 

Valder’s crimes were discovered after his United States Probation Officer found him in possession of an unauthorized smart phone on which the images of the child victim and internet child pornography were found.

At sentencing, scheduled for October 25, 2023, Valder faces a mandatory life sentence.

This case was investigated by the Federal Bureau of Investigation’s Mid-State Child Exploitation Task Force and the New York State Police.  Assistant U.S. Attorney Lisa M. Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, prosecuted the case.

Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov

ALBANY, NEW YORK – Aly Kaba, age 29, of New Rochelle, New York, has been indicted on conspiracy to commit mail fraud, mail fraud, and aggravated identity theft charges for fraudulently obtaining pandemic-related unemployment insurance benefits using stolen identities.

United States Attorney Carla B. Freedman; Jonathan Mellone, Special Agent in Charge, Northeast Region, United States Department of Labor, Office of Inspector General (USDOL-OIG); Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.

The indictment alleges that from about September 2020 through October 2020, Kaba fraudulently obtained unemployment insurance benefits in the names of other people.  The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.

The conspiracy and mail fraud charges each carry a maximum term of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years.  The aggravated identity theft charge carries a mandatory term of 2 years in prison, to be imposed consecutively to any other term of imprisonment. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

Kaba appeared today before United States Magistrate Judge Christian F. Hummel in Albany and was released with conditions.

This case is being investigated by USDOL-OIG, USPIS, and HSI, with assistance from U.S. Customs and Border Protection’s New York Field Office and the New York State Department of Labor’s Office of Special Investigations.  Assistant U.S. Attorneys Alexander P. Wentworth-Ping and Joshua R. Rosenthal are prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

SYRACUSE, NEW YORK – Carlos Manuel Valdez, 40, of the Dominican Republic, was sentenced yesterday to serve sixty months imprisonment for illegally reentering the United States after having been previously convicted of an aggravated felony.

United States Attorney Carla B. Freedman, Matthew Scarpino, Special Agent in Charge of United States Homeland Security Investigations (HSI), Buffalo Field Office, and Broome County Sheriff Frederick Akshar II made the announcement.

As part of his guilty plea, Valdez admitted that prior to being deported to his home country in 2019, he had been convicted of a number of Massachusetts state felony offenses, including assaulting a police officer and possessing narcotics with the intent to distribute them.

In February 2023, Valdez was discovered in Broome County, New York, in a vehicle that also contained over a kilogram of fentanyl. Valdez was charged for the narcotics by New York State authorities in Broome County and was sentenced to serve 6 years’ imprisonment in state court.

Valdez was ordered to serve 30 months of his federal sentence consecutively, meaning that 30 months of Valdez’s federal sentence will not begin until after he has fully satisfied his New York State sentence of incarceration.

The U.S. Department of Homeland Security, Immigration and Customs Enforcement- Customs and Border Protection Air and Marine Operations, and the Broome County Special Investigations Unit Task Force (which is comprised of personnel from the Broome County Sheriff’s Office, City of Binghamton Police Department, and Johnson City Police Department) investigated the case. Assistant U.S. Attorney Ben Gillis prosecuted the case.

SYRACUSE, NEW YORK –Charles Kennedy, age 26, of Chemung County, pled guilty yesterday in federal court to conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, and carrying a firearm in furtherance of a drug trafficking crime. 

The announcement was made by United States Attorney Carla B. Freedman, Bryan Miller, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), New York State Police Superintendent Steven G. James, and Broome County Sheriff Frederick J. Akshar II.

Kennedy was arrested on September 5, 2021, after a high-speed chase that began as he fled from New York State Police in Tioga County during a DWI investigation. Upon entering Broome County, Deputies from the Broome County Sheriff’s Office joined the pursuit.  Kennedy’s car crashed on Route 17 when he unsuccessfully attempted to jump out of the moving vehicle after tire deflation devices were deployed. Kennedy was pinned between the open passenger-side door and a concrete abutment but suffered only minor injuries. A search of the vehicle located a loaded M and P 9mm semiautomatic pistol, as well as methamphetamine, cocaine base, cocaine powder, fentanyl, marijuana, and a money counting machine. Subsequent investigation established, and Kennedy admitted during his guilty plea, that he conspired with others to distribute and possess with intent to distribute more than 50 grams of methamphetamine, cocaine base, cocaine powder, heroin, and fentanyl.

Sentencing is scheduled for November 13, 2024, at which time Kennedy faces a minimum of ten (10) years and a maximum term of life imprisonment and a fine of up to $10,000,000.00. for his convictions for possession with intent to distribute controlled substances, and conspiracy to distribute and possess with intent to distribute controlled substances. Kennedy also faces a minimum of five (5) years and a maximum term of life in prison, which must run consecutively to any other term of imprisonment imposed, and a fine of up to $250,000.00. for his conviction for carrying a firearm in furtherance of a drug trafficking crime. The Court will also impose a term of supervised release of at least 5 years to follow any term of imprisonment. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

The case is being investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the New York State Police, and the Broome County Sheriff’s Office. Assistant U.S. Attorneys Kristen Grabowski, Richard Southwick, and Geoffrey Brown are prosecuting the case.

ALBANY, NEW YORK – Tiffany Lynn Robillard, age 28, of Schenectady, New York, pled guilty today to possession of fentanyl and cocaine with intent to distribute.  United States Attorney Carla B. Freedman and Frank A. Tarentino, III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.

As part of her plea, Robillard admitted that, on March 25, 2024, she possessed over 3 kilograms of fentanyl and several hundred grams of cocaine, which she intended to distribute, and two firearms. 

Robillard faces a minimum term of 10 years and up to life in prison, a fine of up to $10 million, and a term of post-imprisonment supervised release of at least 5 years and up to life.  She will be sentenced on October 25, 2024, by United States District Judge Anne M. Nardacci.

A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

The DEA is investigating the case with assistance from the Colonie Police Department, Schenectady Police Department, and New York State Police.  Assistant U.S. Attorney Mikayla Espinosa is prosecuting the case.

ALBANY, NEW YORK – Aaron W. Scott, 28, of Poughkeepsie, New York, was sentenced today to 15 years in prison for attempting to entice and coerce an 11-year-old child into sexual activity and for possessing child pornography.

United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

As part of his previously entered guilty plea, Scott admitted that between on or April 1, 2022, and June 14, 2022, he sent sexually explicit text messages to someone he believed was an 11-year-old girl in an attempt to entice the child into engaging in sexual acts with him. Scott admitted that on June 14, 2022, he traveled to Warren County, New York, with the intent to engage in sexual acts with the 11-year-old girl. Scott was arrested by law enforcement shortly after arriving at the location and was found in possession of child pornography at the time of his arrest.

United States District Judge Anne M. Nardacci also imposed a 25-year term of post-imprisonment supervised release, ordered Scott to pay $3,000 in restitution to a victim whose images he possessed, and ordered him to forfeit the devices that he used to attempt to entice the child and that contained the child pornography. Scott will be required to register as a sex offender after his release from prison.

This case was investigated by the FBI Child Exploitation Task Force, comprised of FBI Special Agents, and state and local police investigators, including from the New York State Police, the Colonie Police Department, and the Cary (North Carolina) Police Department. Assistant U.S. Attorney Allen J. Vickey prosecuted this case as part of Project Safe Childhood.

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).  Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

UTICA, NEW YORK – Carol Evans, age 56, of West Winfield, New York, was sentenced yesterday to serve 37 months in federal prison for wire fraud, announced United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of her earlier guilty plea, Evans admitted that, while she was employed at Sullivan Contracting, Inc., she doctored invoices from vendors to reflect inflated charges. Unaware that the invoices were altered, Sullivan Contracting, Inc. then issued checks for the amount due in the doctored invoices and gave the checks to Evans to pay the invoices.  Evans thereafter deposited the checks into her own bank account. Altogether, Evans admitted to depositing approximately $1,800,000 in checks into her personal bank account from Sullivan Contracting, Inc. Though she used some of that money to pay vendors in furtherance of her scheme, she profited nearly $500,000.

United States District Judge David N. Hurd further sentenced Evans to a three-year term of supervised release to begin after Evans serves her term of imprisonment and imposed a restitution order and forfeiture judgment in the amount of $498,690.01.  

FBI investigated the case and Special Assistant U.S. Attorney Paul Tuck prosecuted the case.

PLATTSBURGH, NEW YORK – Randall J. Montour, age 45, a resident of Cornwall, Ontario, was sentenced today to two years of probation for violating the Stolen Valor Act of 2013 and for falsifying his military discharge certificate.  United States Attorney Carla B. Freedman and United States Marshal David L. McNulty made the announcement.

As part of his guilty plea on February 29, 2024, Montour admitted that he falsely altered his Certificate of Release or Discharge from Active Duty, Form DD-214, to reflect he received an honorable discharge from the United States Air Force and that he earned numerous decorations, medals, badges, citations or campaign ribbons, including the Purple Heart. Military records show, however, that Montour received a bad conduct discharge from the Air Force in 2001 and was only awarded the Air Force Training Ribbon during his time in service. He is not a Purple Heart recipient. Montour also admitted that he used his altered Form DD-214 to purchase Purple Heart Recipient license plates from the New York State Department of Motor Vehicles, which he then affixed to his vehicle.

Montour also appeared at veterans’ events wearing an Air Force uniform belonging to a senior non-commissioned officer, a rank the defendant did not achieve in the Air Force, and displaying a ribbon stack depicting many decorations, medals, badges, citations or campaign ribbons that he did not earn, including the Purple Heart.

United States Magistrate Judge Gary L. Favro also sentenced Montour to 200 hours of community service and a $10,000 fine.

The United States Marshals Service investigated the case with assistance from the United States Air Force Office of Special Investigations (OSI), Homeland Security Investigations (HSI), U.S. Customs and Border Protection (CBP) and the New York State Department of Motor Vehicles. Assistant U.S. Attorney Douglas G. Collyer prosecuted the case.

ALBANY, NEW YORK – James Tyrell Daniels, aka “Red” and “Ghost,” 40, of Fresno, California, Consanga Harris, aka “Sondy,” 63, of Troy, New York, and Earnest Flood, aka “Pop,” 66, of Richmond, Virginia, pled guilty yesterday to offenses related to their involvement in nationwide marijuana trafficking and money laundering conspiracies. 

United States Attorney Carla B. Freedman; Bryan Miller, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; Troy Police Chief Daniel DeWolf; and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.

In pleading guilty, Daniels, Harris, and Flood all admitted to being members of a marijuana and tetrahydrocannabinols (THC) trafficking organization that cultivated marijuana on a commercial scale in Fresno, California, and shipped thousands of kilograms of marijuana and THC from Fresno to locations throughout the United States, including the Capital Region of New York.

In pleading guilty, Daniels admitted to working with, among others, Dwight A. Singletary II, aka “Nutt” and “Mike Jones,” to cultivate marijuana in two grow houses behind his home and in a commercial warehouse in Fresno.  The marijuana grow in the warehouse was financed in substantial part by Singletary, and on June 15, 2022, law enforcement executed a search warrant at the warehouse and seized, among other things, 424 marijuana plants at various stages of maturity in five commercial-grow rooms.  Video footage from a DVR for a surveillance system seized from the warehouse depicted, among other things, Daniels tending to the marijuana plants and bringing supplies into the warehouse with Singletary.  In addition to growing marijuana, Daniels purchased and resold large quantities of marijuana and sold THC “edibles.” 

Daniels and other members of the organization shipped the marijuana and THC edibles through UPS and FedEx from a shipping store, Fast Pack & Ship, in Fresno.  Sammy Olague owned and operated Fast Pack & Ship from 2016 through June 2018, when he sold the business to Nehemiah Fane, aka “Neil.”  In April 2020, Fane transferred ownership of Fast Pack & Ship to McKenzie Merrialice Coles, aka “Kenzie,” who operated Fast Pack & Ship through M.M.M.C. Management, Inc.  Daniels managed Fast Pack & Ship when it was owned by Fane and ran the day-to-day operations of the business with Fane.

The packages of marijuana, which reflected the names of fake shippers, were shipped from Fast Pack & Ship to locations throughout the United States, including the Capital Region, New York City, and other parts of New York, New Jersey, Connecticut, Massachusetts, Maryland, Ohio, Delaware, Nevada, Virginia, Alabama, Georgia, Louisiana, Florida, North Carolina, South Carolina, Tennessee, Missouri, Oklahoma, and Texas.  The marijuana in the packages was contained in dog food containers and luggage, and the packages were often sealed with eBay packing tape in an effort to avoid detection by law enforcement.  Between April 2017 and June 2022, approximately 1,292 packages containing approximately 7,068 kilograms, or 15,582 pounds, of marijuana were shipped from Fast Pack & Ship to the Capital Region alone. 

Daniels admitted to working with Fane and others to launder marijuana proceeds for Singletary and other members of the organization, including through bank accounts maintained by Fane in the name of Fast Pack & Ship and Fast Pack & Ship, LLC, which Fane organized in 2019.    Daniels also laundered marijuana proceeds through bank accounts he owned and controlled, including business accounts held by his company BRDL, LLC, and by receiving money transfers in Fresno purchased with cash marijuana proceeds. 

Harris admitted to receiving packages of marijuana shipped by Singletary and Coles from Fast Pack & Ship at her home in Troy.  Harris was notified of the packages of marijuana by Coles and Isiah Ti-Quan Clements, aka “Zay,” and was paid between $300 and $400 in cash per package of marijuana received.  Between March 2018 and May 2022, Harris received 90 packages containing approximately 700 kilograms, or 1,543 pounds, of marijuana. 

Flood admitted to receiving packages of marijuana shipped by Singletary and Coles from Fast Pack & Ship at his home in Richmond and to selling the marijuana.  Flood coordinated the shipments of marijuana with Onisha Smith, who in turn coordinated with Singletary.  After selling the marijuana, Flood deposited cash marijuana proceeds into his bank account and transferred the funds to Smith, who in turn transferred payment for the marijuana to Singletary through Zelle and Cash App. 

Daniels, who has a prior serious violent felony conviction, faces at least 15 years and up to life in prison, a term of post-release supervision of at least ten years and up to life, and a fine of up to $20 million for conspiring to manufacture, distribute, and possess with intent to distribute controlled substances.  He also faces up to 20 years in prison and a fine of up to $500,000 for conspiring to commit money laundering. 

If United States District Judge Glenn T. Suddaby accepts the parties’ agreed-upon disposition at sentencing, Daniels will be sentenced to 180 months in prison to be followed by ten years of supervised release. 

Harris faces up to 20 years in prison, a term of supervised release of between three years and life, and a fine of up to $1 million for conspiring to manufacture, distribute, and possess with intent to distribute controlled substances. 

Flood faces up to up to 20 years in prison and a fine of up to $500,000 for conspiring to commit money laundering and up to five years in prison and a fine of up to $250,000 for conspiring to manufacture, distribute, and possess with intent to distribute controlled substances.  He also faces a term of supervised release of between two years and life. 

A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

Daniels, Harris, and Flood were charged in an indictment with Singletary, Coles, Fane, Olague, Smith, and 16 other people charging marijuana distribution and money laundering conspiracies, firearms offenses, and other crimes.  Singletary, Coles, and Fane have pled not guilty and are presumed innocent unless and until proven guilty.  The charges in the indictment are merely accusations. 

In addition to Daniels, Harris, and Flood, Olague, Smith, and seven other defendants, Rosemary Coles, Latrice Mumphrey, Sammy Olague, Victor Turner, Kristle Walker, Ruby Ledesma, and Jazell Shuler, previously pled guilty and are pending sentencing. 

The ATF, DEA, Troy Police Department and HSI are investigating the case. Assistant U.S. Attorneys Cyrus P.W. Rieck and Dustin C. Segovia are prosecuting the case.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

ALBANY, NEW YORK – Troy Kelly, age 19, of Crown Point, New York, was arrested yesterday and charged via criminal complaint with making threats against the President of the United States.

United States Attorney Carla B. Freedman, Jeffrey Burr, Special Agent in Charge of the Buffalo Field Office of United States Secret Service and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations and Steven James, Superintendent of the New York State Police made the announcement.

Kelly was charged with one count of making threats against the President of the United States. The charge filed against Kelly carries a maximum sentence of 5 years imprisonment, a fine of up to $250,000, and a term of supervised release following any term of incarceration of up to three years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

Kelly appeared yesterday in Albany, New York, before United States Magistrate Judge Christian F. Hummel, and was detained pending a full detention hearing scheduled for Friday, June 28.

The criminal complaint alleges that on May 17, 2024, using an account on the social media platform “X,” Kelly responded to a post of President Joseph R. Biden Jr. with a post which included the sentence: “Gonna put a bullet in your head if I ever catch you.” A Secret Service investigation revealed Kelly was the likely user of the account that posted the threat and proceeded to interview him at his home. During the interview, Kelly confirmed he posted the threat and told the Secret Service agent on scene that he had done so because it was “true.” As alleged in the complaint, when asked if he still wanted to kill President Biden, Kelly told them “If I could, I would.”

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

The United States Secret Service, Homeland Security Investigations, and the New York State Police are investigating the case. Assistant U.S. Attorney Joseph S. Hartunian is prosecuting the case.

ALBANY, NEW YORK – Felix Arencibia, age 38, of Amsterdam, New York; Todd Austin, age 64, of Gloversville, New York; Ahmad Burke, age 66, of Albany; Kevisha DuBoise, age 27, of Schenectady, New York; and Christian Mur-Santana, age 28, of Las Vegas, Nevada have been indicted for participating in a drug distribution conspiracy.

United States Attorney Carla B. Freedman; Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division; and Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS), made the announcement.

As alleged in the indictment and other court papers, between November 2022 and July 2023, the defendants participated in a drug conspiracy led by Arencibia, who received packages of methamphetamine and fentanyl from Mur-Santana through the mail and then distributed those drugs in the Capital Region.  The specific charges, and the maximum and mandatory terms of imprisonment, are set forth below:

Defendant

Charges

Max./Min.

Felix Arencibia

Conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl

Distribution of methamphetamine

Minimum:10 years Maximum: Life

Todd Austin

Conspiracy to distribute and possess with intent to distribute methamphetamine

Distribution of methamphetamine

Maximum: 20 years

Ahmad Burke

Conspiracy to distribute and possess with intent to distribute methamphetamine

Maximum: 20 years

Kevisha DuBoise

Conspiracy to distribute and possess with intent to distribute methamphetamine

Distribution of methamphetamine

Maximum: 20 years

Christian Mur-Santana

Conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl

Distribution of methamphetamine

Minimum:10 years Maximum: Life

 

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

Each of the defendants previously made initial appearances before United States Magistrate Judge Daniel J. Stewart.  All were released with conditions pending further proceedings, except for Todd Austin, who was ordered detained following a detention hearing.  

Four other defendants charged as part of this conspiracy have pled guilty to conspiracy to distribute and possess with intent to distribute methamphetamine, and to the distribution of methamphetamine, and are currently scheduled to be sentenced as follows:

• Andrew Deleon, age 27, of Schenectady, is scheduled to be sentenced on July 12, 2024.

• Melissa Karwan, age 37, of Schenectady, is scheduled to be sentenced on July 16, 2024.

• Flor Arencibia, age 39, of Albany, is scheduled to be sentenced on September 5, 2024.

• Stefanie Plass, age 37, of Schenectady, is scheduled to be sentenced on July 17, 2024.

The DEA and USPIS are investigating these cases.  Assistant U.S. Attorneys Ashlyn Miranda and Joshua Rosenthal are prosecuting the cases.

These cases are part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

SYRACUSE, NEW YORK – United States Attorney Carla B. Freedman joined national, state, local, and Tribal leaders in recognizing World Elder Abuse Awareness Day (WEAAD) on June 15, 2024. Since 2006, WEAAD has been commemorated to promote awareness and increases understanding of the many forms of elder abuse as well as the resources available to those at risk.

Highlighting the partnership between law enforcement and the public, U.S. Attorney Freedman recorded a message highlighting the need for continued attention to address elder abuse and the work her office has done to address financial fraud that victimizes older Americans, along with enforcement efforts to address grossly substandard care in nursing homes. 

United States Attorney Carla Freedman stated: “Elder abuse is rampant and, unfortunately, it comes in many forms. My office will continue to work with our law enforcement partners to promote awareness of elder abuse and to bring criminal and civil actions against those who prey on older Americans.”

Elder abuse is an act that knowingly, intentionally, or negligently causes or creates a serious risk of harm to an older person by a family member, caregiver, or other person in a trust relationship. Such harm may be financial, physical, sexual, or psychological. The Justice Department maintains a variety of programs and initiatives to combat elder abuse.

The Transnational Elder Fraud Task Force marshals federal and state agencies working collaboratively to investigate and prosecute foreign-based schemes that target older Americans. In addition to aggressively investigating the individuals, organizations, and networks responsible for these crimes, this initiative provides the public with information to guard against both traditional scams, like tech support fraud, as well as trending schemes, such as romance scams.

Using one scam to perpetrate or conceal another, some fraudsters rely on money mules to move the proceeds of their illegal activity. Preying on the good will or financial vulnerability of their targets, scammers recruit people, many times older victims, to participate in schemes to move money in ways that avoid notice. The Money Mule Initiative identifies and addresses money mule activity to disrupt these fraud schemes, and helps people to recognize and avoid participation in perpetuating fraud.

To help older individuals and their families identify and avoid fraudulent activity, the Justice Department provides Senior Scam Alerts with information about the tactics used in specific schemes. For example, in Social Security Administration impostor schemes, scammers impersonate government administrators and falsely report suspicious activity to request that the victims provide their Social Security number for confirmation. In tech support scams, fraudsters contact victims, sometimes through internet pop-up messages, to warn about non-existent computer problems, ask that the victim give them remote access to their computer, and identify a non-existent problem, then demand large sums of money for unnecessary services. In lottery scams, telemarketers falsely notify victims that they have won a sweepstakes and tell them they must first pay fees for shipping, insurance, customs duties, or taxes before they can claim their prizes.

To learn more about the department’s elder justice efforts please visit the Elder Justice Initiative page.

The U.S. Attorney’s Office for the Northern District of New York continues to work with federal, state, local, and Tribal law enforcement partners to investigate and prosecute elder abuse crimes. 

Representative past examples include the following:  

• In May 2024, the Secret Service seized a web domain, used in a “Pig Butchering” Scheme, which used dating applications and social media websites to direct victims to fraudulent cryptocurrency platforms. 
• In May 2024, the United States and the State of New York announced the recovery of $6.3 million in restitution, which will go to the victims of an investment advisor and attorney who defrauded their clients. 
• In October 2023, JoAnne Natalie was sentenced to 3 months in jail for misappropriating the funds of a veteran as his appointed fiduciary.
• In February 2023, four individuals paid $7,168,000, and were excluded from federal healthcare programs, for providing worthless services to nursing home residents
• In January 2023, Kirtankumar Dalwadi was sentenced to 15 months in prison for his role in a law enforcement impersonation scheme. 

To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov. 

ALBANY, NEW YORK – Ahmed AlSaadi, age 19, of Troy, New York, was sentenced today to 24 months in prison for possessing a machinegun.

The announcement was made by United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Bryan Miller, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Troy Police Chief Daniel DeWolf.

During his earlier guilty plea, AlSaadi admitted that on August 2, 2023, he possessed three machinegun conversion devices and a Glock handgun that had been modified with a machinegun conversion device that allowed the Glock to shoot and function as a machinegun. AlSaadi also admitted to advertising machinegun conversion devices for sale from March to July 2023.

United States District Judge Mae A. D’Agostino also sentenced AlSaadi to serve a 3-year term of supervised release to begin after imprisonment.

ATF, FBI and the Troy Police Department investigated the case. Assistant United States Attorney Alexander Wentworth-Ping prosecuted the case.

SYRACUSE, NEW YORK – Michael Gonzalski, 36, was sentenced Tuesday to serve 54 months in federal prison for conspiring to distribute cocaine, possessing cocaine with the intent to distribute, and money laundering, announced United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the United States Drug Enforcement Administration (DEA), New York Division.

As part of his earlier guilty plea, Gonzalski admitted that from approximately August 2020, until March 30, 2022, he distributed cocaine to customers in Onondaga County, NY. The court determined as part of Gonzalski’s sentencing that he distributed approximately 10 kilograms of powder cocaine.  Gonzalski also admitted committing money laundering by attempting to conceal the source of some of his drug proceeds through an automobile transaction. 

United States District Judge David N. Hurd further sentenced Gonzalski to a three-year term of supervised release to begin after Gonzalski serves his terms of imprisonment, and imposed a $333,111 money judgment, which reflected the proceeds Gonzalski obtained through drug dealing.

This case was investigated by the U.S. Drug Enforcement Administration (DEA), the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Syracuse Police Department (SPD), the Onondaga County Sheriff’s Office (OCSO), the New York State Police (NYSP), the Onondaga County District Attorney’s Office, and the Internal Revenue Service (IRS) Criminal Investigation.  It was prosecuted by Assistant U.S. Attorney Thomas Sutcliffe.

ALBANY, NEW YORK – Patrick Civitello, age 18, of Schenectady, New York, was indicted on Tuesday for witness retaliation for his assault of the child of a witness who testified in a federal criminal trial.

United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

Patrick Civitello is the son of Jeffrey Civitello Sr. and the younger brother of Jeffrey Civitello Jr., both of whom were convicted of federal drug trafficking charges following a jury trial in Albany in April 2023. A witness, identified in the indictment as V-1, testified at that trial.

The indictment and a previously filed criminal complaint allege that on May 19, 2024, Patrick Civitello assaulted V-1’s son, V-2, causing him to suffer head and bodily injuries, with the intent to retaliate against V-1 for her trial testimony. Patrick Civitello’s assault of V-2 occurred in front of V-1 in a restaurant parking lot in the Town of Glenville. The charges in the indictment and complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.

Civitello was arrested on the criminal complaint on June 13, 2024. Following a detention hearing on June 14, United States Magistrate Judge Daniel J. Stewart ordered Civitello released with conditions. The Government has appealed that decision and, as a result, Civitello currently remains in custody.

If convicted, Civitello faces up to life in prison, and a term of post-imprisonment supervised release of up to 5 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

The FBI’s Capital District Safe Streets Gang Task Force is investigating this case, with assistance from the Glenville Police Department. Assistant U.S. Attorneys Michael Barnett and Dustin Segovia are prosecuting this case.

ALBANY, NEW YORK – Andrew Miller, age 38, of Schenectady, New York, pled guilty today to conspiring with Mufid Fawaz Alkhader to illegally purchase a shotgun for Alkhader.

United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Bryan Miller, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement.

Miller admitted that between October 1, 2023 and November 6, 2023, he and Alkhader conspired to lie to a firearms dealer in Albany County that he (Miller) was the actual buyer of a Kel-Tec 12-gauge pump shotgun, when in reality, Alkhader was the true buyer.  Miller and Alkhader came up with the plan because they believed that Alkhader could not lawfully purchase the shotgun himself.  Miller further admitted that on November 5, 2023, he lied on the Firearms Transaction Record (ATF Form 4473) submitted to the gun shop when he falsely stated that he was the true purchaser of the shotgun.  On November 6, 2023, Miller and Alkhader returned to the gun shop wherein Miller took possession of the shotgun.  Miller also admitted that later on November 6, 2023, he transferred the shotgun to Alkhader. 

The shotgun purchased by Miller and given to Alkhader is the same shotgun alleged to have been possessed and shot by Alkhader outside of Temple Israel on December 7, 2023. 

Miller will be sentenced on October 18, 2024, by United States District Judge Anne M. Nardacci.  Miller faces up to 5 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Judge Nardacci ordered Miller released with conditions pending sentencing.

Alkhader is charged by complaint with two firearms crimes. The charges in the complaint against Alkhader are merely accusations. He is presumed innocent unless and until proven guilty.

This case is being investigated by the FBI’s Joint Terrorism Task Force, the ATF, and the Albany Police Department. Assistant U.S. Attorneys Rick Belliss and Alexander Wentworth-Ping are prosecuting this case.

ALBANY, NEW YORK – Thomas Love, age 35, of Amsterdam, New York, was sentenced yesterday to serve 121 months in prison for receiving child pornography.

United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

As part of his prior guilty plea, Love admitted that from January 2017 through October 2020, he used the internet to access the “dark web” and download depictions of minors engaged in sexually explicit conduct. The defendant also admitted to distributing child pornography on Twitter (now known as X). A subsequent search of Love’s electronic devices revealed that he received and possessed over 300 files depicting child pornography, including videos of toddlers being sexually abused.

United States District Judge Anne M. Nardacci also imposed a 20-year term of supervised release, which will start after Love is released from prison, and ordered him to pay restitution to victims in the amount of $9,000. Love will also be required to register as a sex offender upon his release from prison.

The FBI investigated this case. Assistant U.S. Attorney Carling Dunham prosecuted the case as part of Project Safe Childhood.

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

SYRACUSE, NEW YORK – Anthony Beverly, age 34, most recently of Syracuse, pled guilty today to possession with intent to distribute a controlled substance and possession of a firearm and ammunition by a prohibited person.

United States Attorney Carla B. Freedman, Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Joseph L. Cecile, Chief of the Syracuse Police Department (SPD), made the announcement.

As part of his guilty plea, Beverly admitted that on October 26, 2023, he knowingly possessed in his Onondaga County apartment three pistols, extended ammunition magazines, and approximately 615 rounds of ammunition of various calibers. Beverly further admitted that when he possessed the firearms and ammunition, he knew that he had previously been convicted of a felony. Specifically, in 2015 he was sentenced in Onondaga County Court to 2 to 6 years’ imprisonment as a result of his conviction of possession of a forged instrument in the first degree. Beverly further admitted that in his apartment, he possessed various controlled substances which he intended to distribute to others, including cocaine base, powder cocaine, N,N-Dimethylpentylone (sold as “molly”), fentanyl, and methamphetamine.

At sentencing, Beverly faces a total of up to 35 years in federal prison, a total maximum fine of $1,250,000, and a term of post-imprisonment supervised release of at least 3 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

FBI and the Syracuse Police Department investigated the case. Assistant U.S. Attorney Matthew J. McCrobie is prosecuting the case.

This case was charged as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

ALBANY, NEW YORK – Allahson Allah, formerly known as Gwyn Cancer, age 53, of Albany, pled guilty today to conspiring to commit bank fraud and aggravated identity theft.  United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement. 

In a plea before United States District Judge Anne M. Nardacci, Allah admitted that between February and October 2022, he organized a conspiracy to defraud SEFCU by, among other things, applying for loans using stolen identities of real people, and withdrawing the money in cash.  Allah admitted that lower-level members of the conspiracy applied for loans in other people’s names using fake New York driver’s licenses with their photographs but bearing the names and dates of birth of other people, and the proceeds were given to Allah.  Allah further admitted that the conspiracy netted $113,800 in fraudulent cash withdrawals. 

Allah was previously charged by an indictment, along with Evan Cutler, of Queensbury, New York, Davon Parson, of Albany, and Dnauticah Taylor-Sterman, of Albany.   According to the indictment and statements made by prosecutors in court, the conspirators obtained customer account information from Caeshara Cannon, of Albany, a former Member Service Manager at SEFCU, and used that information to create counterfeit checks, which were presented for negotiation at SEFCU branches in the Northern District of New York.  The conspirators also obtained personal identifying information of others, which they used to fraudulently obtain loans from SEFCU and then withdraw the proceeds in cash.

Allah will be sentenced on October 21, 2024. The charges to which Allah pled guilty carry a minimum term of 2 years in prison and a maximum term of 32 years, a fine of up to $1.25 million, and a supervised release term of up to 5 years. He has also agreed to pay restitution in the amount of $113,800, and to entry of a forfeiture money judgment in the same amount. 

Allah is the fourth defendant in the conspiracy to plead guilty, following previous pleas by Cannon, Parson, and Taylor-Sterman.  Cutler is charged in the indictment with one count of conspiracy to commit bank fraud and four counts of aggravated identity theft.  Those charges remain pending. The charges in the indictment against Cutler are merely accusations. Cutler is presumed innocent unless and until proven guilty.

HSI is investigating the case, with assistance from the Bethlehem Police Department.  Assistant United States Attorney Benjamin S. Clark is prosecuting this case.

ALBANY, NEW YORK – Guidehouse Inc., headquartered in McLean, Virginia, has paid $7,600,000, and Nan McKay and Associates (Nan McKay), headquartered in El Cajon, California, has paid $3,700,000, to resolve allegations that they violated the False Claims Act by failing to meet cybersecurity requirements in contracts intended to ensure a secure environment for low-income New Yorkers to apply online for federal rental assistance during the COVID-19 pandemic.

The announcement was made by United States Attorney Carla B. Freedman; Principal Deputy Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division; Acting Inspector General Richard K. Delmar of the Department of the Treasury’s Office of Inspector General (Treasury OIG); and New York State Comptroller Thomas P. DiNapoli.

In early 2021, Congress established the emergency rental assistance program (ERAP) to provide financial assistance to eligible low-income households to cover the costs of rent, rental arrears, utilities, and other housing-related expenses during the COVID-19 pandemic. Participating governments were required to establish programs to distribute the federal funding to eligible tenants and landlords. In New York, the Office of Temporary and Disability Assistance (OTDA) was the state agency responsible for administering New York’s ERAP. In May 2021, Guidehouse and OTDA entered a contract under which Guidehouse, as the prime contractor, assumed responsibility for the New York ERAP, including for the ERAP technology and services provided to New Yorkers. Nan McKay, in turn, served as Guidehouse’s subcontractor and was responsible for delivering and maintaining the ERAP technology product used in New York to fill out and submit online applications requesting rental assistance (ERAP Application).

Guidehouse and Nan McKay shared responsibility for ensuring that the ERAP Application underwent cybersecurity testing in its pre-production environment before it was launched to the public. As part of the settlements announced today, Guidehouse and Nan McKay admitted that neither satisfied their obligation to complete the required pre-production cybersecurity testing. The State’s ERAP went live on June 1, 2021. Twelve hours later, OTDA shut down the ERAP website after determining that certain applicants’ personally identifiable information (PII) had been compromised and portions were available on the internet. Guidehouse and Nan McKay acknowledged that had either of them conducted the contractually-required cybersecurity testing, the conditions that resulted in the Information Security Breach may have been detected and the incident prevented.

In addition, as part of its settlement, Guidehouse admitted that for a short time period in 2021, it used a third-party data cloud software program to store personally identifiable information without first obtaining OTDA’s permission, in violation of its contract.

United States Attorney Carla B. Freedman stated: “Contractors who receive federal funding must take their cybersecurity obligations seriously. We will continue to hold entities and individuals accountable when they knowingly fail to implement and follow cybersecurity requirements essential to protect sensitive information.”

Principal Deputy Assistant Attorney General Brian M. Boynton stated: “Federal funding frequently comes with cybersecurity obligations, and contractors and grantees must honor these commitments. The Department of Justice will continue to pursue knowing violations of material cybersecurity requirements aimed at protecting sensitive personal information.”

Acting Inspector General Richard K. Delmar stated: “These vendors failed to meet their data integrity obligations in a program on which so many eligible citizens depend for rental security, which jeopardized the effectiveness of a vital part of the government’s pandemic recovery effort. Treasury OIG is grateful for DOJ’s support of its oversight work to accomplish this recovery.”

New York State Comptroller Thomas P. DiNapoli stated: “This settlement sends a strong message to New York State contractors that there will be consequences if they fail to safeguard the personal information entrusted to them or meet the terms of their contracts. Rental assistance has been vital to our economic recovery and the integrity of the program needs to be protected. I thank the United States Department of Justice, United States Attorney Freedman, and the United States Department of the Treasury Office of Inspector General for their partnership in exposing this breach and holding these vendors accountable.”

On October 6, 2021, the Deputy Attorney General announced the Department’s Civil Cyber-Fraud Initiative, which aims to hold accountable entities or individuals that put sensitive information at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor and report cybersecurity incidents. Information on how to report cyber fraud can be found here.

The United States’ investigation was prompted by a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds, and to receive a share of any recovery. The settlement agreements in this case provide for the whistleblower, Elevation 33, LLC, an entity owned by a former Guidehouse employee, to receive a $1,949,250 share of the settlement amounts. The case is captioned United States ex rel. Elevation 33, LLC v. Guidehouse Inc. et al., Case No. 1:22-cv-206 (N.D.N.Y.).

The investigation was a result of a coordinated effort between the United States Attorney’s Office for the Northern District of New York; the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; Treasury OIG; and the Office of the New York State Comptroller. The United States was represented by Assistant United States Attorney Adam J. Katz and Trial Attorney J. Jennifer Koh.

ALBANY, NEW YORK – Jerjuan Joyner, age 49, of the Bronx, New York, pled guilty today for his role in a bank fraud conspiracy that targeted credit unions all over the country since at least December 2021. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

Joyner admitted that between at least December 2021 and April 2023, he was a member of a nationwide bank fraud conspiracy that targeted credit unions insured by the National Credit Union Share Insurance Fund.  Many of the credit unions were members of a shared branching network, which allowed customers of member credit unions to withdraw funds from their accounts at other member credit unions by presenting an identification with their photograph, their account number, and the last four digits of their Social Security number.  The network was designed to allow customers of localized credit unions easier access to their accounts when traveling throughout the country.  However, according to the plea agreement, the conspirators exploited this network by creating fake identifications in the names of real credit union customers, but with photographs of other individuals, who conducted fraudulent transactions at shared branch member credit unions all over the country in exchange for drugs or a small portion of the stolen funds.

Joyner pled guilty today to conspiracy to commit bank fraud.  He admitted that he was recruited by senior members of the conspiracy to drive individuals to credit unions in the Northern District of New York and elsewhere to fraudulently withdraw cash from customers’ accounts.  Joyner admitted that the trips he drove resulted in fraudulent withdrawals of $120,998, with an additional nearly $15,000 in attempted fraudulent withdrawals. 

When Joyner is sentenced by United States District Judge Mae A. D’Agostino, in Albany on October 22, 2024, he faces up to 30 years in prison, a term of supervised release of up to 5 years, and a fine of up to $1 million.  Joyner will also be ordered to pay restitution in the amount of $120,998 to the victims of his crimes.   

Joyner’s plea resolves the charges against him in a federal indictment returned last December.  The indictment charges an additional 7 individuals with their roles in the bank fraud conspiracy, which allegedly involves more than $1 million in total losses. 

The charges in the indictment are merely accusations as to the remaining defendants. The remaining defendants are presumed innocent unless and until proven guilty.

FBI Albany is investigating the case, with assistance from the FBI Field Offices in New York and Newark, and Resident Agencies in Westchester, New York; Garrett Mountain, New Jersey; and Fort Walton Beach, Florida.  Additional assistance was provided by other law enforcement agencies, including Immigration and Customs Enforcement – Enforcement & Removal Operations (New York Field Office & Albany sub-office); U.S. Department of State Diplomatic Security Service (Buffalo Field Office & St. Albans Resident Office); U.S. Social Security Administration – Office of the Inspector General, the New York State Police; Cohoes Police Department; Colonie Police Department; Elmira Police Department; Corning Police Department; Plattsburgh Police Department; Florida law enforcement agencies including the Okaloosa County Sheriff’s Office and Escambia County Sheriff’s Office; law enforcement agencies in New Hampshire, including the Rochester Police Department, Manchester Police Department, Amherst Police Department; the Norwich, CT Police Department; law enforcement agencies in Massachusetts, including the Springfield, MA Police Department; the Pennsylvania State Police; the Delaware State Police; and law enforcement agencies in Maryland, including the Harford County Sheriff’s Office and Baltimore County Sheriff’s Office.

Assistant United States Attorney Benjamin S. Clark is prosecuting this case.

ALBANY, NEW YORK – Kevin Smurphat, age 35, of Whitehall, New York, was sentenced today to 15 years of imprisonment, to be followed by 15 years of supervised release, for possessing, receiving, distributing, and transporting child pornography.

United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

As part of his guilty plea, Smurphat, a previously convicted sex offender, admitted that while on state parole in early November 2020, he used a cellphone to upload, to a file-hosting service, depictions of minors engaged in sexually explicit conduct and that he joined a group chat where he distributed child pornography to other individuals and received child pornography as well.

In addition to the imprisonment and supervised release terms, Smurphat was ordered to pay a total of $7,000 in restitution to his victims.

The FBI investigated the case as part of Project Safe Childhood. Assistant United States Attorney Dustin C. Segovia prosecuted the case.

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).  Project Safe Childhood marshals federal, state, and local resources to better locates, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

ALBANY, NEW YORK – Peter Bratis, age 44, of Chestertown, New York, was sentenced today to 137 months in prison for possessing child pornography with a prior conviction for abusive sexual conduct involving a minor.

United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.

In pleading guilty, Bratis admitted to using a Google Drive account to store images depicting minors engaged in sexually explicit conduct between February 24, 201 and August 4, 2022.  Bratis had previously been convicted in Warren County Court of an offense involving abusive sexual conduct of a minor, specifically rape in the second degree.  Bratis has been in custody since his arrest on August 25, 2022.

Chief United States District Judge Brenda K. Sannes also sentenced Bratis to 25 years of supervised release following his term of imprisonment. Bratis will continue to be required to register as a sex offender upon his release from prison.

HSI investigated this case.  Assistant U.S. Attorneys Emmet O’Hanlon and Joseph Hartunian prosecuted this case as part of Project Safe Childhood. 

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

ALBANY, NEW YORK – Rodell Patterson, age 52, of Baton Rouge, Louisiana, was sentenced today to the maximum 60 months in prison for engaging in the firearms business without a license.

United States Attorney Carla B. Freedman and Special Agent in Charge Bryan Miller, New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement.

Chief United States District Judge Brenda K. Sannes also imposed 3 years of supervised release. 

Patterson previously admitted to mailing eight packages containing a total of 10 firearms from Baton Rouge to the Capital Region in 2021 and 2022.  Two of those firearms were recovered in June 2022 at the Troy, New York, apartment of a man on parole.  Patterson acknowledged that he knew these transfers were unlawful, and he admitted to engaging in extensive conversations with the recipient of the packages about the types of firearms and the amount of payment.   

Patterson still faces an indictment in the United States District Court for the Middle District of Louisiana for possessing a firearm as a previously convicted felon.  That charge is merely an accusation of which Patterson is presumed innocent unless and until proven guilty.  If convicted of that charge, Patterson faces up to an additional 15 years in prison. 

ATF’s Albany Field Office investigated this case with assistance from the U.S. Attorney’s Office for the Middle District of Louisiana and ATF’s Baton Rouge Field Office.  Assistant U.S. Attorney Jonathan S. Reiner prosecuted the case.

SYRACUSE, NEW YORK – Northstar Auto and Salvage LLC, of Evans Mills, New York, has agreed to pay $45,000 to resolve allegations that it violated the False Claims Act by receiving government property from unauthorized individuals.

United States Attorney Carla B. Freedman and Special Agent in Charge Joel Kirch of the Northeast Field Office of the Department of the Army, Criminal Investigation Division made the announcement. 

When the Army conducts live-fire exercises at Fort Drum, brass shell cartridges (“brass”) are collected and returned to a centralized processing facility, where the brass is prepared for sale on the open scrap metal recycling market, thereby recovering money for the Government.  Northstar Auto and Salvage LLC (Northstar) purchases and processes scrap metal, but Northstar never had a contract to purchase Fort Drum brass.  From 2017-2019, a Fort Drum civilian employee and two soldiers took approximately 29,000 pounds of brass from the centralized processing facility.  Neither the civilian employee nor the soldiers were authorized to dispose of the brass. These individuals sold the brass to Northstar, delivering it in personally-owned pickup trucks, not military vehicles.  Northstar then sold the brass on the open market, receiving $24,012 in profit.  Northstar did not make any effort to verify whether the individuals were authorized to dispose of the brass, beyond accepting their verbal assurances that they were authorized. 

The knowing receipt of public property from a federal employee or member of the Armed Forces who lawfully may not sell such property, including acting with deliberate ignorance, violates the False Claims Act.  31 U.S.C. § 3729(a)(1)(F).

The investigation and settlement was the result of a coordinated effort among the United States Attorney’s Office for the Northern District of New York, and the Northeast Field Office of the Department of the Army, Criminal Investigation Division.  The New York State Police provided substantial assistance.  Assistant U.S. Attorney Christopher Moran represented the United States in this matter. 

ALBANY, NEW YORK – Alexander G. Madera, age 21, of Guilderland, New York, was sentenced today to 85 months in prison for robbing a marijuana dealer and brandishing a pistol in furtherance of the robbery at the dealer’s residence in Guilderland.

United States Attorney Carla B. Freedman; Bryan Miller, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Guilderland Police Chief Daniel P. McNally made the announcement.

As part of his earlier guilty plea, Madera admitted that on January 23, 2022, at about 5 a.m., he and Jorge Rosario, armed with a rifle and pistol, respectively, entered a single-family residence in Guilderland with the goal of robbing a marijuana dealer.  After entering the residence, Madera robbed the dealer of $172 in drug money, at gunpoint, in the dealer’s bedroom, while Rosario remained on guard in the living room.  Before they could leave the residence, however, they were attacked and disarmed by other residents of the house.  They were then restrained until the police arrived and arrested them.  Both have remained in custody since that time.

Rosario pled guilty and will be sentenced on July 9, 2024.  Under the terms of Rosario’s plea agreement, the parties have jointly recommended that Rosario receive a prison term of between 168 and 188 months, and a 5-year term of post-imprisonment supervised release.

Chief United States District Judge Branda K. Sannes also ordered that Madera serve a 3-year term of supervised release following his release from prison.

ATF and the Town of Guilderland Police Department investigated this case, with the assistance of the Albany County District Attorney’s Office.  Assistant U.S. Attorneys Emmet O’Hanlon and Joshua R. Rosenthal are prosecuting the case.

ALBANY, NEW YORK – Luke Kenna a.k.a. “Lt.,” age 44, of Gloversville, New York, was sentenced today to 41 months in prison for conspiring to commit bank robbery and for illegally possessing a firearm after having been convicted of a prior misdemeanor crime of domestic violence. Michael Brown, Jr. a.k.a. “Russ” a.k.a. “Doc Grimson,” age 43, of Exton, Pennsylvania, was sentenced today to 37 months in prison for his part in the bank robbery conspiracy.

United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

As part of their respective guilty pleas, Brown and Kenna each admitted that between November 14 and November 27, 2022, they agreed to and planned to commit an armed bank robbery at a bank branch in Johnstown, New York, with each other and with another conspirator, Brian Tierney a.k.a. “Wodanaz.” As part of that conspiracy, Kenna conducted surveillance of the bank and purchased items, including weapons, to commit the robbery; Tierney ordered handgun parts for use in the robbery and sent photographs of a handgun, and a radio scanning and jamming device, to Kenna; and Brown drove to New York to conduct surveillance of the bank with Kenna.

Kenna also admitted that he possessed a rifle on November 6, 2022, after previously being convicted of a misdemeanor crime of domestic violence.

Chief United States District Judge Brenda K. Sannes also ordered that both Brown and Kenna serve 3-year terms of supervised release. Kenna was also ordered to forfeit the rifle he possessed in November 2022.

The third conspirator, Brian Tierney, of Lynchburg, Virginia, pled guilty on April 16, 2024, and is scheduled to be sentenced on August 16, 2024, by Chief Judge Sannes.

The FBI Albany Field Office’s Joint Terrorism Task Force (JTTF), which includes FBI Special Agents, and federal, state, and local investigators, including from the New York State Police, investigated the case. The FBI’s Philadelphia Field Office, the FBI’s Richmond Field Office, and New York State Police Special Investigations Unit also provided assistance. Assistant U.S. Attorney Alexander Wentworth-Ping is prosecuting the case.

UTICA, NEW YORK – Dianna Nolan, 48, of Utica, New York, was sentenced today in federal court in Utica to a 3-year term of probation after previously pleading guilty to filing false federal income tax returns. The guilty plea was announced by United States Attorney Carla B. Freedman and Thomas Fattorusso, Executive Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office.

In pleading guilty previously, Nolan admitted that she worked as a professional tax return preparer in Oneida County, New York, between at least 2014 through 2018. On her personal income tax returns for tax years 2017 and 2018, Nolan intentionally did not report all the income she received as a tax return preparer. Nolan also filed income tax returns on behalf of clients that falsely claimed losses from rental properties, thereby reducing the total taxes owed by these clients and causing losses to the IRS.

As part of her sentence, Nolan was also ordered to pay restitution to the IRS totaling $101,636.00 for tax years 2014 through 2018.

This case was investigated by Internal Revenue Service-Criminal Investigation (IRS-CI), and it is being prosecuted by Assistant U.S. Attorneys Michael F. Perry and Melissa O. Rothbart.

SYRACUSE, NEW YORK – Eugene Gilbert, age 30, of Clay, New York was sentenced yesterday to serve ten (10) years in federal prison for his convictions for distribution and possession with intent to distribute controlled substances, and possession of a firearm in connection with a drug trafficking crime, announced United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.

As part of his previous guilty plea, Gilbert admitted that on November 4, 2021, he led DEA Special Agents and other law enforcement officers on a high-speed vehicular chase on Interstate 81 north as they attempted to execute search warrants on his vehicle, his person, and his residence in Clay, New York. Pursuing agents located Gilbert’s Dodge Ram pickup truck abandoned near the Village of Parish. Gilbert left a bag containing 50 grams of cocaine, 39 grams of cocaine base, and 6 grams of fentanyl, as well as a loaded 9mm pistol in a nearby dumpster, where they were recovered by DEA Special Agents. The defendant was later arrested on December 17, 2021, after a second vehicle pursuit through Syracuse, Dewitt, and on Interstate 81 south after he fled from a United States Marshals Service Fugitive Task Force. As part of his guilty plea, Gilbert further admitted distributing fentanyl on four separate instances between October 14, 2021, and November 2, 2021.

Gilbert was also sentenced yesterday to a post-prison term of supervised release of 5 years.

The United States Drug Enforcement Administration (DEA), the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Onondaga County District Attorney’s Office, the Syracuse Police Department, the Metro-Jefferson Drug Task Force, U.S. Border Patrol, the New York State Police, the Oswego County Sheriff’s Office, and the United States Marshals Service investigated the case, which was prosecuted by Assistant U.S. Attorney Richard Southwick.

SYRACUSE, NEW YORK – Joseph Horan, 40, of Binghamton, New York, was sentenced yesterday to serve 17-months in federal prison for illegally possessing ammunition as a felon. United States Attorney Carla B. Freedman and Bryan Miller, Special Agent in Charge of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), New York Field Division, made the announcement. 

When he pled guilty in January 2024, Horan admitted that, on November 4, 2022, while on parole, he possessed a magazine loaded with six rounds of .380 caliber ammunition. A 2019 felony conviction in Broome County Court prohibited Horan from legally possessing ammunition under federal law.

United States District Judge Glenn T. Suddaby also ordered that Horan serve a 3-year term of supervised release following his release from prison.

The United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the case with assistance from the New York State Department of Corrections and Community Supervision.  Assistant U.S. Attorney Jessica N. Carbone prosecuted the case.

ALBANY, NEW YORK – Israa Sultan, age 44, of New York, New York, was sentenced today to time served (approximately 141 days in jail) for making a false statement to federal authorities.

United States Attorney Carla B. Freedman and Port Director Timothy Walker of the Alexandria Bay Port of Entry, U.S. Customs and Border Protection (CBP), made the announcement.

United States District Judge Anne M. Nardacci also imposed a $5,000 fine and 1 year of supervised release, and she ordered Sultan to reimburse the Office of the Federal Public Defender for the cost of her defense. 

Sultan—an Iraqi national lawfully admitted into the United States in 2007—attempted to cross from New York into Canada using another woman’s United States passport.  Canadian authorities refused to grant entry to Sultan, and they turned her over to CBP.  Sultan falsely told a CBP Officer that she was the person depicted in the passport.  When CBP searched Sultan, they recovered approximately 20 grams of cocaine hidden within her shoes.  Sultan subsequently brought cocaine into a federal courthouse during a hearing in this case. 

CBP investigated the case, which Assistant U.S. Attorney Jonathan S. Reiner prosecuted.

ALBANY, NEW YORK – Jashene Austin, age 29, of Troy, New York, pled guilty today to distributing fentanyl and illegally possessing a firearm as a felon.

United States Attorney Carla B. Freedman and Bryan Miller, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement.

Austin admitted that on August 11, 2023, he sold, to another person, 50 grams of fentanyl and a semi-automatic pistol.  A prior felony conviction for attempted burglary prevented Austin from legally possessing the firearm in New York.

Austin faces a minimum term of 5 years and up to 40 years in prison, a fine of up to $5 million, and a term of post-imprisonment supervised release of at least 4 years and up to life, when he is sentenced on October 22, 2024, by United States District Judge Mae A. D’Agostino. 

A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

ATF investigated this case with assistance provided by the Troy Police Department.  Assistant U.S. Attorney Emmet O’Hanlon is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

ALBANY, NEW YORK – Jesse Bedell, age 36, of Mayfield, New York, was sentenced today to 33 months in prison for transmitting threats to injure another person. United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.

Bedell was convicted following a two-day jury trial in February 2024. The evidence established that Bedell applied to work at Medline Industries’ NAMIC Division in Glens Falls and received an employment offer conditioned upon passing a background investigation. Bedell, however, failed to disclose a prior criminal conviction. As a result, on January 9, 2020, Medline withdrew the employment offer. The following morning, Bedell phoned Medline employees in Neptune, New Jersey, and Northfield, Illinois, and threatened to burn down and blow up the Glens Falls plant. Bedell also threated to kill the employee in Illinois.

United States District Judge Mae A. D’Agostino also imposed a 3-year term of supervised release, which will start when Bedell is released from prison.

The case was investigated by the Glens Falls Police Department and HSI, with assistance from the Warren County District Attorney’s Office. Assistant U.S. Attorney Douglas Collyer prosecuted the case.

ALBANY, NEW YORK – Michael Klugo, age 44, of East Greenbush, New York, was arrested on Friday, June 7 on a criminal complaint charging him with distribution of child pornography.

United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

The criminal complaint alleges that on or about June 6, 2024, Klugo distributed an image of child pornography over the internet.  The charges in the complaint are merely accusations.  The defendant is presumed innocent unless and until proven guilty.

Kluger was arraigned today in Albany before United States Magistrate Judge Christian F. Hummel, and ordered detained pending a detention hearing scheduled for Thursday, June 13.

FBI is investigating the case. Assistant U.S. Attorney Allen J. Vickey is prosecuting the case.

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

ALBANY, NEW YORK – Bruce Bochette, age 67, of Charlton, New York, pled guilty today to evading taxes on about $825,000 in business income.

United States Attorney Carla B. Freedman and Thomas Fattorusso, Executive Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), New York Field Division, made the announcement.

Bochette operates a commercial painting business. In pleading guilty, he admitted that for tax years 2017 through 2021, he evaded income taxes by depositing checks, and portions of checks, into his personal account that were payments from his company’s commercial painting clients. Bochette did not report this income to the IRS, on either his company’s tax returns or his personal tax returns, and did not pay taxes on this income. Bochette admitted to not reporting $825,719.56 in business income, and to evading the assessment and payment of $219,706 in taxes.

Sentencing is scheduled for October 4, 2024, before United States District Judge Anne M. Nardacci. Bochette faces up to 5 years in prison, up to 3 years of supervised release, and a maximum $100,000 fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

IRS-CI investigated this case and Assistant U.S. Attorney Michael Barnett is prosecuting this case.

ALBANY, NEW YORK – Juller Perez Salcedo, age 45, of Garfield, New Jersey, was sentenced today to three years of probation, including 6 months of home detention, for conspiring to commit wire fraud and honest services fraud, and for tax evasion.

United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Jenifer L. Piovesan, Special Agent in Charge of the Newark Field Office of Internal Revenue Service – Criminal Investigation (IRS-CI), made the announcement.

As part of his prior guilty plea, Perez Salcedo admitted that from at least 2015 to 2019, he co-owned a trucking company in New Jersey that transported products as a third-party contractor for a bedding company with a distribution facility in West Coxsackie, New York. As part of the fraudulent scheme, Perez paid kickbacks to the transportation manager of the bedding company, Leonard Hummel, in exchange for the use of the bedding company’s trucks and drivers to transport merchandise from West Coxsackie to Perez’s truck yard in Clifton, New Jersey, which allowed Perez to avoid certain transportation costs. Perez then fraudulently invoiced and received payment from the bedding company as if his trucking company had transported and delivered the merchandise from West Coxsackie when Perez and his trucking company did not in fact transport the merchandise from West Coxsackie. As a result of the scheme, Perez caused $422,170.86 in losses to the bedding company.

Perez also evaded taxes between January 2014 and April 2018 by cashing gross receipts checks on behalf of his trucking business, providing false and incomplete information to tax preparers and omitting the cashed checks, and filing false federal income tax returns. Perez Salcedo evaded a total of $477,090 in taxes.

United States District Judge Mae A. D’Agostino also ordered Perez to pay $422,170.86 in restitution to the bedding company, and $477,090.00 to the IRS, and separately ordered forfeiture of a money judgment totaling $422,170.86 in proceeds derived from the fraud.

Hummel previously pled guilty and was sentenced on May 17, 2024, to two years of probation for conspiring to commit wire fraud and honest services fraud. Judge D’Agostino also ordered Hummel to pay $161,784 in restitution to the bedding company and ordered forfeiture of a money judgment totaling $17,000.

The FBI and IRS-CI investigated the case. Assistant U.S. Attorney Alexander Wentworth-Ping prosecuted the case.

ALBANY, NEW YORK – Burlington E. Nieuenkirk, age 47, of Brooklyn, New York, was sentenced today to 65 months in prison for illegally possessing three loaded firearms as a felon.

United States Attorney Carla B. Freedman; Bryan Miller, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Albany County Sheriff Craig D. Apple Sr. made the announcement.

When he pled guilty in this case, Nieuenkirk admitted that on April 30, 2020, he possessed three loaded pistols, one of which had been reported stolen, at a residence in Green Island, New York.  A prior felony conviction for robbery prevented Nieuenkirk from legally possessing the firearms in New York.

Senior United States District Judge Frederick J. Scullin, Jr. also ordered that Nieuenkirk serve a 3-year term of supervised release following his release from prison.

The ATF and the Albany County Sheriff’s Office investigated this case with assistance provided by the Albany County District Attorney’s Office. Assistant U.S. Attorney Emmet O’Hanlon prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

ALBANY, NEW YORK – James Alvin Boone, age 29, of Schenectady, New York, was indicted today for conspiracy to distribute and possess with intent to distribute controlled substances, distribution of a controlled substance, possession with intent to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime. 

United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.

Boone was previously charged by federal complaint, on March 25, 2024.  He has been detained since he made his initial appearance that day before United States Magistrate Judge Daniel J. Stewart.

According to the indictment, on July 28, 2023, Boone possessed cocaine with the intent to distribute it, and also possessed a pistol in furtherance of that crime.  The indictment further alleges that Boone conspired to distribute and possess with intent to distribute fentanyl and cocaine from January 14, 2023 through March 25, 2024; possessed with intent to distribute fentanyl and cocaine on March 25, 2024; and distributed fentanyl on three occasions between December 6, 2023 and February 8, 2024. 

The indictment seeks the forfeiture of the pistol, over $27,000 in U.S. currency, and nearly $40,000 worth of jewelry.

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

The charges filed against Boone carry a mandatory minimum prison term of 15 years and a maximum term of life, a fine of up to $10 million, and a term of supervised release of at least 5 years and up to life.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

The DEA is investigating the case with assistance from the Colonie Police Department, Schenectady Police Department, and New York State Police.  Assistant U.S. Attorney Mikayla Espinosa is prosecuting the case.