Northern District of New York

SYRACUSE, NEW YORK - Oswego Hospital has agreed to pay $98,694.36 to resolve allegations that it knowingly violated the False Claims Act by: (1) improperly billing Medicare and Medicaid for outpatient mental healthcare services that were rendered by an unsupervised LMSW, and (2) improperly billing Medicaid for outpatient mental healthcare services rendered by another LMSW for which Oswego Hospital could not provide documentation to support those claims.

“The integrity and strength of our federal healthcare system depends on accurate and honest billing for services that are provided by qualified healthcare workers,” said United States Attorney Carla Freedman.  “We will continue to use the False Claims Act to hold healthcare providers accountable when their billing practice do not meet this standard.”

This case began in April of 2019, when a whistleblower filed a qui tam complaint investigation under seal in the United States District Court for the Northern District of New York. When a whistleblower, or “relator,” files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. The relator in this case will receive $19,738.87 of the settlement proceeds.  The case is docketed with the U.S. District Court for the Northern District of New York under number 5:19-cv-0431 (GTS/ATB).

The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the New York State Attorney General’s Office, the Department of Health and Human Services Office of the Inspector General and the Defense Criminal Investigative Service on behalf of the Defense Health Agency.  The United States was represented by Assistant U.S. Attorney Carl G. Eurenius, and New York State was represented by Special Assistant Attorney General Ralph D. Tortora, III.

ALBANY, NEW YORK – Irvis Jorge, age 44, and Pamela Febo, age 38, of Keansburg, New Jersey, each pled guilty today to conspiring to steal government property.  The announcement was made by United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision (DOCCS); and New York State Department of Labor (NYSDOL) Commissioner Roberta Reardon.

The defendants admitted to a conspiracy in which they agreed to, and did, submit a fraudulent unemployment insurance claim to NYSDOL using Jorge’s personal identifying information, at a time when Jorge was an inmate in DOCCS custody.  Febo submitted the application at Jorge’s direction in October 2020 and continued to re-certify Jorge’s benefits eligibility each week for approximately four months.  Each weekly certification indicated that Jorge was “able and available to start work immediately” even though Febo knew Jorge remained incarcerated and could not work.  NYSDOL paid the defendants $27,348 based on the repeated false certifications. 

The charge to which the defendants pled guilty carries a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years.  Sentencing will take place before Senior United States District Judge Gary L. Sharpe.  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.  Both defendants agreed to pay restitution for the full amount of funds stolen as well as forfeiture of the proceeds they still have.

The case was investigated by the FBI, the DOCCS Office of Special Investigations, and the NYSDOL Office of Special Investigations.  The case is being prosecuted by Assistant U.S. Attorney Jonathan S. Reiner.

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 – Michael P. Fish, age 27, of Albany, was sentenced today to 18 months in prison for obstruction of justice.

The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his June 27, 2022 guilty plea, Fish admitted that he submitted seven fraudulent character letters to United States District Judge Mae A. D’Agostino in December 2019, in an effort to deceive the Court and obtain leniency during his sentencing in a now-concluded criminal case in which Fish was convicted of computer hacking, identity theft and child pornography crimes.  Fish admitted that he doctored four letters, including one from a priest, and fabricated another three letters, including ones purportedly from his mother and grandparents.

In his underlying criminal case, Fish was sentenced to 111 months in prison, to be followed by 15 years of supervised release, for computer fraud and aggravated identity theft in connection with his hacking of online social media accounts and theft of nude images of dozens of female victims, as well as possession of child pornography.  Fish’s term of imprisonment for obstruction of justice will begin immediately after his prison sentence in the underlying case concludes. 

This case was investigated by the FBI and was prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal.

ALBANY, NEW YORK – Rodney Matthews, age 49, of Albany, pled guilty today to possessing and intending to distribute cocaine and heroin, and to possessing a firearm in furtherance of a drug trafficking crime.

The announcement was made by United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Chief Eric Hawkins of the Albany Police Department (APD).

As part of his plea, Matthews admitted to possessing 306 grams of cocaine and 95 grams of heroin at his apartment in Albany, as well as approximately $12,000, which represented the proceeds of his drug trafficking.  Matthews, a previously convicted felon, further admitted to possessing a loaded, privately manufactured .357 caliber semi-automatic pistol (a/k/a a “ghost gun”) in order to guard against the potential theft of his drugs and proceeds.  Matthews was initially arrested by APD officers after he was observed firing the pistol into a telephone pole outside of his residence. 

Matthews faces at least 5 years and up to life in prison, a fine of up to $1 million, and a term of post-imprisonment supervised release of at least 3 years and up to life, when he is sentenced on February 22, 2023, by Senior United States District Judge Gary L. Sharpe.  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.

This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including APD.  This case is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.

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 – The Rensselaerville Institute (TRI), a not-for-profit corporation located in Albany, New York, has agreed to pay the United States $86,676 in damages and civil penalties to resolve allegations that it violated the False Claims Act by obtaining an inflated Paycheck Protection Program (PPP) loan. TRI also agreed to repay its lender $86,676, thereby relieving the U.S. Small Business Administration (SBA) of liability to the lender for the federal guaranty of the overstated portion of its loan, announced United States Attorney Carla B. Freedman.

United States Attorney Freedman stated: “Paycheck Protection Program loans were intended to provide critical relief to small businesses so that they could retain employees and continue operations during the COVID-19 pandemic. We will continue to use all available tools, including the False Claims Act, against companies that overstated eligibility for these taxpayer-funded loans.”

The PPP was established pursuant to the Coronavirus Aid, Relief, and Economic Security (CARES) Act, in March 2020, to provide emergency financial assistance to small businesses suffering economic effects caused by the COVID-19 pandemic. PPP loan applications were processed by participating lenders, which received a processing fee from the SBA. If a loan application was approved, the participating lender funded the loan, which was fully guaranteed by the SBA. 

TRI acknowledged in the settlement agreement that, in early April 2020, its now-former Chief Financial Officer (CFO) provided another now-former TRI official with data and calculations showing that TRI’s “average monthly payroll,” when multiplied in accordance with the PPP loan eligibility formula, totaled less than $500,000. That individual nevertheless applied on TRI’s behalf to an SBA participating lender for a $500,000 PPP loan. Shortly thereafter, the CFO wrote various TRI board members: “I have not received a copy of the PPP application. I am hopeful it was not actually submitted” because “it would be better if we don’t have a federal loan application floating out there for more money than we were entitled to.”

Later in 2020, as part of an audit of TRI’s annual financial statements, an audit and consulting firm represented that it notified TRI that TRI had applied for and received a larger loan than it was entitled to, and that it advised the former TRI official to return the excess funds. Rather than return the excess funds, in January 2021, yet another TRI official submitted an application for forgiveness of the entirety of the $500,000 loan. The SBA subsequently determined that TRI had overstated its average monthly payroll and, accordingly, declined to forgive $86,676 of TRI’s loan.

Special Agent in Charge Janeen DiGuiseppi of the Albany Field Office of the Federal Bureau of Investigation (FBI) stated: “The FBI will continue to work with our partners from the United States Attorney’s Office to investigate and hold accountable all those who take advantage of these critically important loan programs designed to provide assistance to American businesses.”

The case began in August 2021, when a whistleblower filed a qui tam complaint under seal in the United States District Court for the Northern District of New York. When a whistleblower, or “relator,” files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. Pursuant to the settlement agreement, the relator will receive $17,000 of the settlement.

The investigation and settlement were the result of a coordinated effort between the United States Attorney’s Office for the Northern District of New York and the FBI. The United States was represented by Assistant United States Attorney Adam J. Katz.

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 the federal 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 – Thomas “Tommy” Squires, age 37, of Cairo, New York, was sentenced today to 120 months in prison for attempting to coerce and entice a minor to engage in sexual activity with him.  The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

Squires admitted that between June 28, 2020 and August 19, 2020, he exchanged sexually explicit messages with an undercover officer posing as a 14-year-old child, in an attempt to coerce and entice the child into engaging in sexual acts with him.  In those messages, Squires repeatedly asked the child for naked photos and sent photos of an erect penis to the presumed child.  Squires further admitted that on August 19, 2020, he traveled in order to meet with the child in Cairo.  Squires was arrested after arriving at the location, and he has been in custody since that date.

United States District Judge Mae A. D’Agostino also imposed a 15-year term of supervised release, which will start after Squires is released from prison.  As a result of his conviction, Squires will be required to register as a sex offender upon his release from prison.

This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state, and local law enforcement agencies, including the Colonie and Rotterdam Police Departments, as well as the New York State Police.  This case was prosecuted by Assistant U.S. Attorney Rachel Williams as a 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.

SYRACUSE, NEW YORK – Ahmad M. Mehdi and his medical practice, Ahmad M. Mehdi, M.D., P.C. (“Mehdi”), agreed to pay a total of $900,000 to resolve civil claims for up-coding billings for some medical services, billing for smoking cessation counseling services that were not adequately documented, and allegedly improper prescribing of opioids, announced United States Attorney Carla B. Freedman.

Mehdi operates a general medical practice with offices in Groton and Tully, New York.  According to the settlement agreement, between January 1, 2012, and September 17, 2018, Mehdi caused false claims to be submitted to federal healthcare programs by billing for some services at a higher rate of reimbursement than it would be entitled to for the service actually provided, a scheme commonly referred to as “upcoding.” Mehdi also submitted billing to federal healthcare programs for some smoking cessation counseling services that were not sufficiently documented.  This settlement also resolves claims that Mehdi violated the Controlled Substances Act between April 1, 2018, and December 31, 2020, by prescribing opioids outside the usual course of professional practice to three patients.  Mehdi has agreed to pay $331,250 to the United States to resolve all of these claims.  Mehdi will also pay $568,750 to the State of New York pursuant to the terms of a separate agreement.

“Providers who increase their own profits by over-billing for medical care increase medical costs for all of us and drain critical funds from Medicare and other government health programs,” said U.S. Attorney Freedman.  “We will continue to hold accountable medical professionals who undermine our healthcare system by over-billing for care.”

“Every dollar scammed from Medicaid is a dollar not spent caring for New Yorkers with actual medical needs,” said New York Attorney General Letitia James. “I am proud of the work my team did, together with the U.S. Attorney’s Office for the Northern District of New York, in uncovering these false claims and securing these funds. Let this settlement be a clear message: We have zero tolerance for lying to Medicaid, and we will hold those who do accountable.”

U.S. Attorney Freedman thanks the New York Attorney General’s Office for its collaboration in the investigation and resolution of this matter

The matter was investigated by the U.S. Department of Health and Human Services Office of Inspector General and the New York Attorney General’s Office Medicaid Fraud Control Unit.  Assistant U.S. Attorneys Christopher R. Moran and John Hoggan handled this matter for the U.S. Attorney’s Office.

SYRACUSE, NEW YORK – United States Attorney Carla B. Freedman announced today that Assistant United States Attorneys (AUSAs) Michael F. Perry and Joshua R. Rosenthal will lead the efforts of the Northern District of New York in connection with the Justice Department’s nationwide Election Day Program for the November 8, 2022 general election.  AUSAs Perry and Rosenthal have been appointed to serve as the District Election Officers (DEOs) for the Northern District of New York, and in that capacity are responsible for overseeing the District’s handling of complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department headquarters in Washington, D.C.

United States Attorney Freedman said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election.  Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence.  The Department of Justice will always work tirelessly to protect the integrity of the election process.”

The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud.  The Department will address these violations wherever they occur.  The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice.  The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).  

The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSAs Perry and Rosenthal will be on duty in this District while the polls are open.  They can be reached by the public at the following telephone numbers: 315-448-0913 (AUSA Perry) and 518-431-0389 (AUSA Rosenthal).

In addition, the FBI will have Special Agents available in each Field Office and Resident Agency throughout the country to receive allegations of election fraud and other election abuses on Election Day.  The local FBI Field Office can be reached by the public at 518-465-7551.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, D.C. by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .

United States Attorney Freedman said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate.  It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”

In the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities.  State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

SYRACUSE, NEW YORK - James Mack, age 39, of Syracuse, was convicted today following a four-day jury trial for possession with intent to distribute cocaine and cocaine base, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon, announced United States Attorney Carla B Freedman, Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division, John B. DeVito, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Chief of Police Joseph Cecile, Syracuse Police Department.

The evidence at trial established that James Mack used his Honda Accord as a stash location for his drug trafficking operation. During a search of the defendant’s Accord in Syracuse on February 12, 2020, Syracuse Police Detectives located a hidden compartment (or “trap”) in the dashboard. From the trap, Detectives recovered over 400 grams of cocaine, over 100 grams of cocaine base, and a loaded .38 caliber revolver.

The charges of which the defendant was convicted carry a mandatory minimum term of imprisonment of 15 years and maximum of life, a fine of up to $8,000,000.00, and a term of supervised release of at least 8 years following the defendant’s release from incarceration. 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. Sentencing is scheduled for March 16, 2023, in Utica, New York.

This case is being investigated by the U.S. Drug Enforcement Administration (DEA), the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Syracuse Police Department-Special Investigations Division (SPD-SID).  The case is being prosecuted by Assistant U.S. Attorneys Adrian LaRochelle and Jessica Carbone 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.

SYRACUSE, NEW YORK – Michael Hawkins, age 60, of Maryland, New York was sentenced today to just short of seven months in prison to be followed by five years of supervised release for failing to register as a sex offender as required by the Sex Offender Registration and Notification Act (“SORNA”). The announcement was made by United States Attorney Carla B. Freedman, David L. McNulty, United States Marshal for the Northern District of New York, and Sharon B. MacDermott, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, New York Field Office.

During his earlier change of plea hearing, Hawkins acknowledged that he was convicted in 1997 in Rhode Island of First-Degree Child Molestation and Second-Degree Child Molestation. He served 20 years in prison for those crimes and became required to register as a sex offender under SORNA for 25 years upon his release. At the time of his arrest in this case, Hawkins had been residing in Otsego County New York for several months after having relocated from Rhode Island and did not report his change of address to the Sex Offender Registry in either jurisdiction, as required by SORNA.

This case was investigated by the United States Marshals Service and the Social Security Administration Office of the Inspector General. It was prosecuted by Assistant U.S. Attorney Michael D. Gadarian 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

SYRACUSE, NEW YORK – Douglas Gustafson, age 36, of Syracuse, pled guilty yesterday to violating the Sex Offender Registration and Notification Act, announced United States Attorney Carla B. Freedman and United States Marshal David L. McNulty.  

Gustafson, who is a sex offender based on a 2008 federal conviction for recruiting and enticing a 14-year-old minor to engage in a commercial sex act, admitted that on May 28, 2022 he absconded from a residential recovery center, which was his court-ordered and registered address, and that he remained at large until he was located by law enforcement in Madison County on June 27, 2022.  Gustafson’s failure to notify the state Division of Criminal Justice Services Sex Offender Registry of this change in his residence was a violation of the Sex Offender Registration and Notification Act, which requires sex offenders to notify the registry within 3 days of any change in residence.    

Gustafson also admitted to violating his federal supervised release by, among other things, absconding from the residential reentry center and committing a new crime by failing to report his change of address to the Sex Offender Registry. 

Gustafson will be sentenced on February 13, 2023 before Senior United States District Judge Norman A. Mordue.  For failing to update his sex offender registration information, Gustafson faces a sentence of up to 10 years in prison, a term of supervised release of at least 5 years and up to life, and a fine of up to $250,000.  For violating the conditions of his supervised release, Gustafson faces a potential additional penalty of up to 5 years in prison.  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.

This case was investigated by the United States Marshal Service and is being prosecuted by Assistant U.S. Attorney Lisa M. Fletcher.

ALBANY, NEW YORK – Thomas Cesiro, age 68, of Rutland, Vermont, was convicted yesterday of attempting to entice or coerce a minor, following a three-day jury trial. The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

The evidence at trial established that, from October 10 to October 20, 2020, Cesiro exchanged over 1,000 text messages and 9 phone calls with Albany-based undercover investigators who were posing as both a 12-year-old girl and the adult mother of the girl.  During one phone call, Cesiro instructed the girl how to conduct a sexual act.  On October 20, 2020, Cesiro traveled from his residence in Rutland to Bennington, Vermont, to meet the purported mother and 12-year-old child, and brought with him various sexual toys and gifts for the child, including a vibrating Frozen-themed toothbrush.  Cesiro was encountered by law enforcement officials upon his arrival to the arranged meeting location and arrested. 

When United States District Judge Mae A. D’Agostino sentences Cesiro on February 15, 2023, Cesiro faces a minimum of 10 years and up to life in prison, and a term of post-imprisonment 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.

This case was investigated by the FBI and its Child Exploitation Task Force, including investigators from the Colonie Police Department, Rotterdam Police Department, and New York State Police, and is being prosecuted by Assistant United States Attorneys Rachel Williams and Richard Belliss. 

This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorney’s offices, Project Safe Childhood marshals federal, state, and local resources to better located, 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 https://www.justice.gov/psc/.

SYRACUSE, NEW YORK – Marcus Lombardo, age 38, of Hannibal, NY, pled guilty today to possession of child pornography, announced United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his guilty plea, Lombardo admitted that on February 18, 2021, during a visit at his home from his United States Probation Officer, Lombardo possessed at least 180 image and video files of child pornography on an SD card found inside a cell phone that he was prohibited from possessing under the conditions of his supervised release. 

Lombardo was on federal supervision following a 2012 federal conviction for receipt and possession of child pornography and commission of a felony offense while on pretrial release. He was sentenced to a one-year term of imprisonment in 2019 for violating the conditions of his release on a prior occasion and was sentenced to 16-month term in 2021 for the violation that occurred on February 18, 2021.

Sentencing is scheduled for February 9, 2023, before United States District Judge David N. Hurd.  Lombardo faces a mandatory minimum term of 10 years in prison, a maximum term of 20 years in prison, a fine of up to $250,000, and a term of supervised release of between 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.

This case was investigated by the United States Probation Office and the FBI Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI).  The case is being prosecuted by Assistant U.S. Attorney Thomas Sutcliffe as a 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.

 

ALBANY, NEW YORK – Jesus Baez, age 32, of Loudonville, New York, pled guilty today to a cocaine distribution conspiracy, announced United States Attorney Carla B. Freedman and Ketty Larco-Ward, Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service (USPIS).

Baez admitted that between June 2021 and December 2021, in Albany and Rensselaer Counties, he and three co-conspirators obtained cocaine shipped from Puerto Rico and distributed it in the Capital Region.  The cocaine was shipped via U.S. mail in one-kilogram bricks, and transported to a stash house maintained by Baez on Fifth Avenue in Troy, New York, where the cocaine was processed for distribution.

Sentencing is scheduled for February 8, 2023 in front of Senior United States District Judge Gary L. Sharpe.  Baez faces a minimum of 5 years in prison, a maximum of 40 years in prison, a fine of up to $5 million, and a term of supervised release of at least 4 years and up to life.   Baez also agreed to forfeit $5,000 seized from his residence as proceeds of the drug conspiracy.

Baez’s plea resolves the charges against him in an indictment unsealed in September.  The following three individuals were also charged for their role in the conspiracy:

• Jan Lopez-Colon, 28, of Troy,
• Ilvin Batista-Figueroa, 31, of Albany, and
• Sam Calderon, 20, of Troy.

 

Calderon previously pled guilty before Judge Sharpe.  The charges against codefendants Lopez-Colon and Batista-Figueroa remain pending.  The charges in the indictment are merely accusations. These defendants are presumed innocent unless and until proven guilty.

This case is being investigated by the USPIS and its Capital Region Task Force, led by the USPIS and including the Albany Police Department, the Albany County Sheriff’s Office, and the Schenectady Police Department, as well as the U.S. Drug Enforcement Administration, and is being prosecuted by Assistant U.S. Attorney Benjamin S. Clark.

PLATTSBURGH, NEW YORK – Jose Angel Portillo-Lopez, age 72, of Norwalk, Connecticut, pled guilty today to conspiracy to commit alien smuggling and possession of child pornography.

The announcement was made by United States Attorney Carla B. Freedman and Acting Chief Patrol Agent Keith Hoops, United States Border Patrol, Swanton Sector.

Portillo-Lopez admitted that in April 2021, he traveled to the border in Burke, New York, where he assisted in the smuggling of four Vietnamese nationals from Canada and into the United States for profit.  Further, the investigation revealed, and Portillo-Lopez admitted, that he possessed videos of child pornography on his cellphone.

Sentencing is scheduled for February 8, 2023, before United States District Judge David N. Hurd in Utica, New York, at which time Portillo-Lopez faces a mandatory term of 10 years in prison, a fine of up to $250,000, 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.

This case was investigated by the United States Border Patrol, Burke Station, and Homeland Security Investigations, and was prosecuted by Assistant U.S. Attorney Jeffrey C. Stitt.

SYRACUSE, NEW YORK – Alex Carrasquillo-Rosado, age 31, of Syracuse, was sentenced today to 70 months’ imprisonment to be followed by five years of supervised release for possessing with intent to distribute six kilograms of cocaine seized from his car and house in November of 2021.

The announcement was made by United States Attorney Carla B. Freedman, Ketty Larco-Ward, Inspector in Charge, United States Postal Inspection Service (USPIS), Boston Division, Matthew Scarpino, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo Field Office, Thomas Fattorusso, Executive Special Agent in Charge, Internal Revenue Service – Criminal Investigation Division (IRS-CI), New York Field Office, and Joseph Cecile, Chief of Police, Syracuse Police Department.

This case is being investigated by the United States Postal Inspection Service (USPIS), Homeland Security Investigations (HSI), Internal Revenue Service – Criminal Investigation Division (IRS-CI), and the Syracuse Police Department. Investigative assistance was provided by the Drug Enforcement Administration (DEA), United States Border Patrol, and the Onondaga County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Michael D. Gadarian.

SYRACUSE, NEW YORK – Shelby Ortiz, age 30, of Maryland, New York pled guilty today to distribution of child pornography. The announcement was made by United States Attorney Carla B. Freedman and Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).

During the change of plea hearing today, Ortiz admitted that she subjected an approximately seven-month-old boy to mouth to penis contact, knowing that the sex act she was performing was being video recorded. She admitted further that, on the same day she performed the sex act, she knowingly distributed the video to a person then living in Florida with whom she was participating in an online and telephone dominant/submissive sexual relationship.

If the plea agreement is accepted by the district court, at sentencing on February 21, 2023, Ortiz faces a term of imprisonment of between 10 and 20 years, a term of post imprisonment supervised release of between five years and life, a fine of up to $250,000, restitution to the victim, and will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

This case is being investigated by Homeland Security Investigations (HSI), the Oneonta Police Department, led by Police Chief Christopher Witzenburg, and the New York State Police and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian as part of Project Safe Childhood.

Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s offices, 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 http://www.justice.gov/psc/.

SYRACUSE, NEW YORK – Carrie Wetherell, 44, of Watertown, New York, pled guilty to one count of bank fraud related to her scheme to withdraw and spend the Supplemental Security Income (SSI) benefits of a deceased relative. 

The announcement was made by United States Attorney Carla B. Freedman and Sharon B. MacDermott, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, New York Field Office.

As part of her guilty plea, Wetherell admitted to using her deceased relative’s identity and ATM card to withdraw SSI benefits that had been deposited into the relative’s bank account after her death. At the same time Wetherell withdrew these funds, she was also receiving Temporary Assistance and Supplemental Nutrition Assistance Program (SNAP) benefits from the Jefferson County Department of Social Services. However, she failed to disclose the money she withdrew from her deceased relative’s account knowing that such disclosure would disqualify her from receiving those benefits.  As part of her plea, Wetherell agreed to pay $85,980.05 in restitution to the Social Security Administration and the Jefferson County Department of Social Services and agreed to a forfeiture money judgment in the amount of $6,194.00. 

At sentencing, currently scheduled for February 9, 2023, Wetherell faces a maximum term of imprisonment of thirty years, a fine of up to $1,000,000, and a term of supervised release of up to five years. A defendant’s sentence is imposed by a judge based on the statute the defendant is convicted of violating, the U.S. Sentencing Guidelines, and other factors.

This case is being investigated by the Social Security Administration Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Paul J. Tuck and Assistant United States Attorney Adrian S. LaRochelle.

ALBANY, NEW YORK – David Colon, age 41, of Troy, New York was sentenced yesterday to 46 months in prison for distributing fentanyl.

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

In pleading guilty, Colon admitted that from August 31, 2020 through December 15, 2020, he ran a drug trafficking organization that operated in Albany and Rensselaer counties.  As the leader of this operation, Colon distributed and agreed with others to distribute approximately 125 grams of fentanyl on multiple occasions throughout Albany and Troy.  Colon forfeited $560,548 in seized cash, which represented proceeds of his fentanyl distribution operation.   

United States District Judge Mae. A. D’Agostino also sentenced Colon to serve 4 years of post-release supervision. 

This case was investigated by the DEA and was prosecuted by Assistant U.S. Attorney Rachel Williams.

SYRACUSE, NEW YORK – The U.S. Attorney’s Office for the Northern District of New York announced today that it is joining the Justice Department’s Transnational Elder Fraud Strike Force, as part of its continuing efforts to protect older adults and prosecute perpetrators of fraudulent schemes.

Since 2019, current Strike Force members — including the Department’s Consumer Protection Branch, six U.S. Attorney’s offices, the FBI, U.S. Postal Inspection Service and Homeland Security Investigations — have brought successful cases against the largest and most harmful elder fraud schemes and worked with foreign law enforcement to disrupt criminal enterprises, disable their infrastructure and bring perpetrators to justice. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat sophisticated fraud schemes that target or disproportionately impact older adults. The expansion will increase the total number of U.S. Attorney’s offices comprising the Strike Force from six to 20, including all of the U.S. Attorney’s offices in the states of California, Arizona, Texas, Florida, Georgia, Maryland and New York.

Attorney General Merrick B. Garland said: “We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorney’s offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors. This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”

United States Attorney Carla B. Freedman stated: “Our district is proud to join the Strike Force as part of the Department’s overall efforts to combat elder abuse, neglect, and financial fraud. We will continue to devote resources to prosecuting the perpetrators of significant exploitation schemes and spreading awareness about these scams so that people do not fall victim to them.”

The Strike Force expansion will further enhance the Department’s existing efforts to protect older adults from fraud and exploitation. From September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged. The matters tackled by the Department and its partners ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims.

This past year, the U.S. Attorney’s Office for the Northern District of New York has obtained indictments in two cases under the Elder Justice Initiative. Each case involves theft and misappropriation of funds by a fiduciary of an incompetent, elderly veteran. Both cases remain pending. The charges in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty.

Also this year, Assistant U.S. Attorneys Alexander Wentworth-Ping and Christopher Moran, the Office’s Elder Justice Coordinators, participated in outreach efforts in the Town of Dewitt and in Saratoga Springs to spread awareness about scams targeting older Americans.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available via the National Elder Fraud Hotline: 1-833-FRAUD-11 or 833-372-8311.  This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6 a.m. to 11 p.m. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.

ALBANY, NEW YORK – Calvin Bautista, age 36, of Richmond Hill, New York, was arraigned today on an indictment charging him with smuggling three Burmese pythons into the United States at the Champlain Port of Entry.

The announcement was made by United States Attorney Carla B. Freedman, and Ryan Noel, Regional Special Agent in Charge, U.S. Fish and Wildlife Service, Office of Law Enforcement.

Bautista smuggled the snakes in his pants as he rode on a bus that crossed the U.S.-Canadian border. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.

The charge filed against Bautista carries a maximum sentence 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.

Bautista was arraigned today in Albany, before United States Magistrate Judge Christian F. Hummel, and released pending a trial before Senior United States District Judge Lawrence E. Kahn.

This case is being investigated by the U.S. Fish & Wildlife Service and U.S. Customs and Border Protection, and is being prosecuted by Assistant U.S. Attorney Alexander P. Wentworth-Ping.

SYRACUSE, NEW YORK – Ryan Berte, age 33, of Eaton, New York, was indicted on September 29, 2022, for receiving and possessing child pornography and for delay of mail while previously serving as a rural mail carrier for the United States Postal Service.

The announcement was made by United States Attorney Carla B. Freedman and Matthew Modafferi, Special Agent in Charge of the United States Postal Service-Office of Inspector General (USPS-OIG), Northeast Area Field Office.

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

The charges filed against Berte carry a maximum sentence of 20 years in prison, a mandatory minimum term of 5 years in prison, a fine of up to $250,000, and a term of supervised release 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.

Berte was arraigned yesterday in Syracuse, New York, before United States Magistrate Judge Andrew T. Baxter, and was detained pending further proceedings.

This case was investigated by the USPS-OIG and the New York State Police, Bureau of Criminal Investigation (BCI), Computer Crimes Unit (CCU).  This case is being prosecuted by Assistant United States Attorney Adrian S. LaRochelle 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.

SYRACUSE, NEW YORK – Sean Morrissey, age 51, of Waterford, New York, pled guilty today to abusive sexual contact of a ward, announced United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

Morrissey pled guilty today before United States District Judge Glenn T. Suddaby in Syracuse.  As part of the plea, Morrissey admitted that between September 7, 2018 and September 21, 2018, while he was a corrections officer at Rensselaer County Correctional Facility, he knowingly rubbed the genitalia of a female federal inmate, with the intent to abuse, humiliate, harass, degrade, or arouse or gratify the sexual desire of a person.

Sentencing is scheduled before Judge Suddaby in Albany on February 23, 2023.  Morrissey faces a maximum sentence of 2 years in prison, a fine of up to $250,000, and a term of supervised release of up to 1 year.  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.

This case was investigated by the FBI and the Rensselaer County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Benjamin S. Clark.

ALBANY, NEW YORK – Isaiah Lafoe, age 24, of Lancaster, New Hampshire, appeared in Albany federal court today on charges that he received child pornography, announced United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

According to the criminal complaint, between September 2020 and March 2021, Lafoe communicated via social media and phone with a girl residing in Troy, New York, and received child pornography images and videos from her.

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

Lafoe was arrested on September 14, 2022 and made an initial appearance in the District of New Hampshire. Today, he appeared before United States Magistrate Judge Daniel J. Stewart and was detained pending trial.

If convicted, Lafoe faces at least 5 years and up to 20 years in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000.  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. Lafoe would also be required to register as a sex offender upon his release from prison.

This case was investigated by the FBI and its Child Exploitation Task Force. The Child Exploitation Task Force is comprised of FBI Special Agents, and state and local police investigators.  The case is being prosecuted by Assistant U.S. Attorney Alexander P. Wentworth-Ping 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

ALBANY, NEW YORK - Jonathan Woodworth, age 44, a citizen of Canada, was charged yesterday with attempting to entice and coerce a minor into sexual activity.

The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

According to the criminal complaint, Woodworth exchanged sexually explicit messages over a period of four months with undercover law enforcement officers whom Woodworth believed to be a foster mother and 10-year-old child. Before his arrest, Woodworth traveled by plane and train from the Canadian province of New Brunswick, to Rensselaer County, with a gift for the child with whom Woodworth intended to engage in sexual activity in a cabin he rented in advance of his travel.  

The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.  If convicted, Woodworth faces at least 10 years and up to life in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000.  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.

Woodworth appeared yesterday before United States Magistrate Judge Daniel J. Stewart, who ordered Woodworth detained pending trial.

This case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state, and local law enforcement agencies.  This case is being prosecuted by Assistant United States Attorney Ashlyn Miranda 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.

ALBANY, NEW YORK – Glyn Frink, age 51, of Albany, was sentenced today to 3 years in prison for escaping from a residential re-entry center in September 2021, announced United States Attorney Carla B. Freedman and United States Marshal David L. McNulty.

Frink pled guilty on June 1, 2022.  He admitted that he had been ordered to reside at a halfway house as part of a prior federal term of imprisonment, and that on September 25, 2021, he signed out of the halfway house to go to work and failed to return at 6 p.m. as required. He then remained in the Albany area without approval and failed to notify Albany Police of his change of address as required under the sex offender registry laws, until March 7, 2022, when he was arrested at a fast food restaurant in Albany.

Following his release from prison, Frink will continue serving a 15-year term of supervised release.

This case was investigated by the United States Marshals Service and prosecuted by Assistant U.S. Attorney Benjamin S. Clark. 

SYRACUSE, NEW YORK – Jay Garnsey, 38, pleaded guilty yesterday to embezzling assets from a labor union, announced United States Attorney Carla B. Freedman and District Director Jonathan Russo of the Boston-Buffalo District Office for the United States Department of Labor, Office of Labor Management Standards (DOL-OLMS).

From about late 2015, until December 2019, Garnsey was employed by Remington Arms in Ilion, NY and the financial secretary of the union that represented its employees. As part of his guilty plea, Garnsey admitted that, while he was financial secretary, he embezzled money from the union by, among other things, submitting fraudulent reimbursement vouchers. Garnsey admitted embezzling over $38,000 in union funds.

Sentencing is scheduled for January 25, 2023, before District Judge David N. Hurd in Utica, New York, at which time Garnsey faces a maximum sentence of up to five years in prison, a fine of up to $250,000, and a post-imprisonment 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.  Garnsey also agreed to pay to the union $38,172.76 in restitution. 

This case was investigated by the DOL-OLMS and the Ilion Police Department. The case is being prosecuted by Assistant United States Attorney Thomas Sutcliffe.

 

SYRACUSE, NEW YORK – Dr. Omar Guesmia, of Phoenix, New York will pay $60,000 to resolve allegations that he, and his dentistry practice, “Gentle Dental Care,” violated the Controlled Substances Act by enabling an office staff member to use an electronic prescription system to obtain oxycodone for their own use.  

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

Physicians generally send prescriptions to pharmacies using an electronic prescription system that can only be accessed using a password or other token, ensuring that only authorized persons transmit prescriptions to a pharmacy.  Federal and New York State law prohibit practitioners from sharing their prescribing credentials with others and provide that physicians are responsible for all prescriptions written under their credentials.  Dr. Guesmia gave his credentials to an office staff member, who transmitted oxycodone prescriptions to various pharmacies, then retrieved the prescriptions for their own illegitimate use.  As part of the civil settlement, Dr. Guesmia admitted that he failed to monitor the prescriptions written using his credentials. 

“The authority to prescribe controlled substances comes with great responsibility,” said United States Attorney Freedman. “I encourage all medical providers who have a prescription pad or credentials to safeguard access and vigilantly monitor their use through resources like New York State’s Prescription Monitoring Program, also known as I-STOP.” 

“DEA Diversion teams focus on helping communities avoid overdoses and poisonings through regulation and investigation,” said DEA Special Agent in Charge Frank Tarentino.  “This settlement is a reminder of how much harm a prescription pad can have when it is in the wrong hands.  I commend the Northern District of New York, U.S. Attorney’s Office, the New York State Department of Health, Bureau of Narcotic Enforcement, as well as the DEA’s Albany Tactical Diversion Squad and NYC Tactical Diversion Squad for their diligent work throughout this investigation.”  

Dr. Guesmia surrendered his DEA Registration, and as part of the civil settlement agreement, agreed not to seek a renewal for at least five years. 

This case was jointly investigated by DEA New York Division’s Albany Tactical Diversion Squad, Intelligence Group, and New York City’s Diversion Group and the New York State Department of Health, Bureau of Narcotic Enforcement. 

Assistant U.S. Attorney Christopher R. Moran handled this matter on behalf of the United States. 

ALBANY, NEW YORK – RGIS LLC (RGIS) and its affiliated company, Retail Services WIS Corporation (WIS), agreed to pay $158,760 to resolve allegations that they caused violations of the Controlled Substances Act.  RGIS and WIS employees were implicated in the theft of controlled substances from pharmacies in upstate New York and throughout the United States.  As part of the settlement, RGIS and WIS are changing their policies to require more thorough vetting of employees assigned to inventory pharmacies nationwide. 

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

“This settlement strengthens policies that previously provided opportunities for employees to steal while they inventoried controlled substances,” said United States Attorney Freedman. “We are committed to working with our DEA partners to eliminate sources of drug diversion in our communities.”  

“Diversion prevention programs and the Controlled Substance Act are in place to safeguard the public from the perils of drug use and misuse,” said DEA Special Agent in Charge Frank Tarentino.  “This is an example of the many investigative capabilities at DEA’s disposal to combat drug overdoses and poisonings, and I applaud our law enforcement partners, especially the U.S. Attorney’s Office Northern District of New York for their partnership and diligent efforts.”

RGIS and WIS provide inventory services to client-retail stores throughout the United States, including retail pharmacies.  According to RGIS and WIS policies, only handpicked, high-caliber, well-respected employees are assigned to pharmacy inventory teams and they are required to undergo a drug test and criminal background check.  RGIS and WIS maintain a “zero tolerance policy” for theft. 

Despite these policies, RGIS and WIS employees were implicated in stealing controlled substances from several pharmacies.  For example, in July 2017, an RGIS employee stole Vicodin pills while inventorying a retail pharmacy in Schenectady, New York.  RGIS terminated the employee but later rehired him.  In 2020, that same employee was implicated in stealing narcotics from three pharmacies in Fort Edward, Saratoga, and Glens Falls, New York.  RGIS employees were also implicated in stealing narcotics from pharmacies in Kentucky, North Carolina, and Louisiana.  In addition, WIS employees were implicated in stealing narcotics from pharmacies in Dallas, Duncanville, and Little Elm, Texas. 

RGIS and WIS agreed to implement additional procedures to ensure the proper vetting of employees assigned to inventory pharmacies, and to make the results of the vetting available to their pharmacy-clients.  The pharmacy-clients, as DEA registrants, are ultimately responsible for supervising all personnel on the premises and preventing the diversion of controlled substances.   

DEA’s Albany Diversion Group led this investigation with assistance from the Tactical Diversion Squads in Albany, New York; Dallas, Texas; and Charleston, West Virginia.  The New York State Police, Glens Falls Police Department, and the Little Elm (Texas) Police Department also provided assistance. 

Assistant U.S. Attorney Christopher R. Moran represented the United States in this matter

ALBANY, NEW YORK – Richard Hileman, age 39, of Marcy, New York, pled guilty today to mailing a threatening communication.  The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

In pleading guilty, Hileman admitted that on September 3, 2021, he mailed a letter to a woman who lived in Ballston Spa, New York.  In the letter, Hileman threatened the woman not to end her personal relationship with him.  Hileman wrote, in part, “i have 2 different guns and a vest . . .”  and “i told you before if you left me someone will pay people dont really know me once I set my mind it’s set if you contact anyone it will not be nice.”  Hileman further wrote, in part, “. . . if you contact the jail or police your lovely kids wont have a mother i swear on my dead son they cant keep me forever I’ll get out one day.”    

Hileman faces a maximum term of 5 years in prison, as well as 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. 

This case was investigated by the FBI and the New York State Department of Corrections and Community Supervision’s Office of Special Investigation, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.

ALBANY, NEW YORK – Duquan McLeod, age 32, of Rockingham, North Carolina, was sentenced today to 52 months in prison for unlawfully possessing a loaded pistol as a felon.

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

As part of his previously entered guilty plea, McLeod admitted that he possessed a 9mm semi-automatic pistol when Schenectady Police Department officers encountered him in downtown Schenectady on March 16, 2021.  The patrol officers, who were responding to a call of individuals fighting, observed McLeod drop the pistol to the ground when they approached him.  The pistol was equipped with a fully loaded 30-round magazine.  A prior felony conviction for armed robbery prevented McLeod from legally possessing the firearm.

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

This case was investigated by ATF and the Schenectady Police Department, with assistance from the Schenectady County District Attorney’s Office.  This case was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.

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 – Tyquan Armstrong, aka “Moose,” age 43, of Rotterdam, New York, pled guilty yesterday to conspiring to distribute and possessing with intent to distribute marijuana and possessing firearms in furtherance of a drug trafficking crime.

The announcement was made by United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF);  and Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division.

In pleading guilty, Armstrong admitted to being a member of a marijuana-trafficking organization that shipped large quantities of marijuana from Fresno, California, to locations throughout the United States, including the Capital Region of New York.  The marijuana was shipped from Fresno through UPS and FedEx and, to track the packages, Armstrong’s co-conspirator text-messaged him shipping receipts with tracking information.  Armstrong admitted to receiving at least 19 packages of marijuana from Fresno at his apartment in Rotterdam between July 2021 and June 2022, which he sold in and around Schenectady, New York.  Armstrong also admitted that his participation in the conspiracy involved at least 50 kilograms, or 110 pounds, of marijuana. 

On June 15, 2022, law enforcement executed a search warrant at Armstrong’s apartment in Rotterdam and discovered 7 vacuum-sealed packages of marijuana weighing 10 pounds, which Armstrong planned to sell.  The apartment contained two money counters and $18,723 in cash, which was earned by the defendant selling marijuana.  Law enforcement also seized a loaded .357 revolver, a loaded .22 caliber “ghost gun,” and 125 rounds of .357 ammunition.  Armstrong possessed the revolver and “ghost gun” to protect his marijuana and marijuana proceeds. 

The defendant’s apartment also contained a gold Rolex watch, gold chain with a diamond-encrusted cross pendant, and two gold rings encrusted with diamonds, all of which were purchased with marijuana proceeds.  Armstrong will forfeit $18,723 in cash, the Rolex, jewelry, firearms, and ammunition. 

At sentencing, Armstrong faces at least 5 years and up to life in prison, a term of post-release supervision of at least 6 years and up to life, and a fine of up to $2 million.  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.

This case is being investigated by the ATF and DEA, and is being prosecuted by Assistant U.S. Attorneys Cyrus P.W. Rieck and Dustin C. Segovia.

 

ALBANY, NEW YORK – Jason Schofield, age 42, of Troy, New York, was arraigned today on an indictment charging him with unlawfully using the names and dates of birth of voters to fraudulently apply for absentee ballots for elections held in Rensselaer County in 2021. 

The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

Schofield is an Elections Commissioner at the Rensselaer County Board of Elections. 

The indictment alleges that in 2021, Schofield unlawfully possessed and used the names and dates of birth of voters in connection with absentee ballot applications he submitted to a New York State Board of Elections web site.

The indictment alleges that Schofield applied for absentee ballots in the names of people who had no interest in voting in 2021; did not request absentee ballots, or Schofield’s assistance in voting or obtaining absentee ballots, in 2021; and/or did not know that Schofield was using their personal information. In some of these instances, according to the indictment, Schofield also took possession of the absentee ballots issued to these voters, brought the ballots to the voters, and had the voters sign absentee ballot envelopes but not actually vote; this allowed Schofield or another person to cast votes in these voters’ names, in Rensselaer County’s primary and general elections held in 2021. 

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

Schofield was arraigned today before United States Magistrate Judge Daniel J. Stewart, and was ordered released on his own recognizance pending a trial scheduled before United States District Judge Mae A. D’Agostino. 

On each of 12 counts, if convicted, Schofield would face 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.

This case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Michael Barnett.

SYRACUSE, NEW YORK – Gregory William Hill, whose aliases include Gregory Allen Davis, Gregory William Davis, and John Martin Hill, age 37, of Georgia, has been charged by indictment with two counts of misuse of a social security number and two counts of aggravated identity theft. The indictment was announced by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

The indictment alleges that Hill impersonated a former graduate of Syracuse University and used that victim’s name and a false social security number for the purpose of obtaining information and documentation from Syracuse University by fraud.

The charges filed against Hill carry a maximum sentence of 5 years in prison for the social security fraud counts and mandatory two-year terms of imprisonment for the aggravated identity theft counts; a fine of up to $250,000 for each count; 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 defendant was arraigned today by videoconference before United States Magistrate Judge Miroslav Lovric and has been ordered detained pending a trial to be scheduled before United States District Judge Glenn T. Suddaby.

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

This case is being investigated by the FBI, and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.

SYRACUSE, NEW YORK – Glen Zinszer, age 52, of Liverpool, New York was sentenced today to serve 51 months in federal prison for committing wire fraud and filing false tax returns, announced United States Attorney Carla B. Freedman, Thomas Fattorusso, Special Agent in Charge, New York Field Office, Internal Revenue Service – Criminal Investigation (“IRS-CI”), and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his previous guilty plea, Zinszer admitted that he began operating the Brazzlebox company in 2012, which he represented to investors would be like Facebook for business. Beginning in April 2013 and continuing until approximately the summer of 2016, Zinszer made false representations to investors about how Brazzlebox was doing to cause them to invest more money and stay invested. For example, Zinszer inflated Brazzlebox’s user numbers and told employees to create fake user accounts to inflate those numbers, misrepresented purportedly revenue-generating strategic partnerships, forged documents to effectuate those falsehoods, and forged a letter of intent to purchase Brazzlebox for millions of dollars.

From 2012 through 2016, Zinszer used a substantial portion of the money invested in Brazzlebox to finance his lifestyle rather than to operate the business, including paying mortgages on his homes and purchasing concert tickets and jewelry. Although Zinszer used money from Brazzlebox to finance his lifestyle, he willfully filed false tax returns underreporting his income in tax years 2013-2016.

Senior United States District Judge Frederick J. Scullin, Jr. also imposed a 3 year term of supervised release, which will start after Zinszer is released from prison, and ordered him to pay restitution in the amount of $3,049,933 to his victims including the government, forfeiture in the amount of $2,763,811, and a $200 special assessment. 

Zinszer’s case was investigated by the Internal Revenue Service – Criminal Investigation (“IRS-CI”) and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorneys Michael D. Gadarian and Geoffrey J.L. Brown.

 

SYRACUSE, NEW YORK - Fadl Mohamad Alharbi, age 51, of Syracuse, was sentenced today in federal court in Syracuse to a $10,000 fine and to two years of supervised release following his conviction for naturalizing contrary to law and submitting a false statement in a passport application. The sentence was announced by United States Attorney Carla B. Freedman and Special Agent-in-Charge Keith J. Byrne, New York Field Office, U.S. Department of State-Diplomatic Security Service (DSS).

Alharbi was convicted following a jury trial in August 2021 in Binghamton, New York. The trial evidence revealed that Alharbi, a native of Yemen, used a false name and falsely posed as the son of his uncle, who was a U.S. citizen (and is now deceased), to obtain lawful permanent residency in the United States and, later, to naturalize as a U.S. citizen and to apply for a passport. The defendant later admitted in interviews with immigration and Department of State officials that he knew these facts about his identity were false and that he had submitted these false statements to naturalize and to obtain a passport.

Alharbi will also be denaturalized (lose his U.S. citizenship) as a result of his conviction.

This case was investigated by the U.S. Department of State-Diplomatic Security Service with assistance from United States Citizenship and Immigration Services (USCIS), and it was prosecuted by Assistant U.S. Attorney Michael F. Perry.

SYRACUSE, NEW YORK – Dianna Nolan, age 46, formerly of Utica, New York, has been charged by indictment with two counts of filing false income tax returns and 15 counts of aiding and assisting the filing of false income tax returns. The indictment was announced by United States Attorney Carla B. Freedman and Thomas Fattorusso, Executive Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division (IRS-CI), New York Field Office.

The indictment alleges that Nolan worked as a professional tax return preparer in Oneida County, New York, between at least 2014 through 2018. Nolan is charged with filing false income tax returns on behalf of various clients during those years by falsely claiming losses for rental properties. Nolan is also charged with filing false tax returns on her own behalf for tax years 2017 and 2018 by failing to report all of the income she received from her tax preparation business.

The charges filed against Nolan carry a maximum sentence of 3 years in prison, a fine of up to $250,000, a term of supervised release of up to 1 year, and a special assessment of $100 per count of conviction.  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 defendant, who recently moved to Florida, was arraigned today by videoconference before United States Magistrate Judge Miroslav Lovric and released pending a trial to be scheduled before Senior United States District Court Judge Norman A. Mordue.

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

This case is being investigated by Internal Revenue Service-Criminal Investigation Division (IRS-CI), and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.

ALBANY, NEW YORK – Four people have been indicted for conspiring to distribute cocaine that was mailed from Puerto Rico to the Capital Region, announced United States Attorney Carla B. Freedman and Ketty Larco-Ward, Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service (USPIS).

The indictment alleges that between June 2021 and December 2021, in Albany and Rensselaer Counties, the following four men engaged in a conspiracy to possess with intent to distribute and to distribute 5 kilograms or more of cocaine:

• Jan Lopez-Colon, age 28, of Troy, New York;
• Jesus Baez, age 32, of Loudonville, New York;
• Ilvin Batista-Figueroa, age 31, of Albany; and
• Sam Calderon, age 20, of Troy.

According to a complaint previously filed in the case, over the period of June to December 2021, the defendants obtained numerous packages shipped by U.S. Mail from Puerto Rico to addresses in the Capital Region, and each package contained approximately one kilogram of cocaine.  The packages were then retrieved by the defendants and transported to Troy, where the cocaine was processed for distribution.  The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.

The four defendants are also each charged with possession with intent to distribute controlled substances, and Baez is also charged with being a felon in possession of ammunition.

The charges filed against Lopez-Colon carry a minimum sentence of 10 years and a maximum sentence of life in prison, a fine of up to $10 million, and a term of supervised release of at least 5 years and up to life.  Baez, Batista-Figueroa, and Calderon each face a minimum sentence of 5 years and a maximum sentence of 40 years in prison, a fine of up to $5 million, and a term of supervised release of at least 4 years and up to life. 

Lopez-Colon and Baez were arraigned this week before United States Magistrate Judge Christian F. Hummel.  Lopez-Colon is detained pending trial before Senior United States District Judge Gary L. Sharpe.  Baez is detained pending a detention hearing scheduled for September 9.  Batista-Figueroa and Calderon waived arraignment and are released pending trial.

This case is being investigated by the USPIS and its Capital Region Task Force, led by the USPIS and including the Albany Police Department, the Albany County Sheriff’s Office, and the Schenectady Police Department, as well as the U.S. Drug Enforcement Administration, and is being prosecuted by Assistant U.S. Attorney Benjamin S. Clark.

SYRACUSE, NEW YORK – Ted Serr, 38, of Syracuse, was sentenced today to serve 150 months in federal prison for distributing, receiving and possessing child pornography, announced United States Attorney Carla B. Freedman, Matthew Scarpino, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo, New York Field Office, and New York State Police Superintendent Kevin P. Bruen.

As part of his guilty plea, Serr admitted that he actively traded child pornography images and videos using a social media messaging application on his cellular telephone, and that on June 2, 2021, he distributed a video file depicting sexual conduct with a child who was between 8 and 11 years old.  Serr further admitted that on June 8, 2021, he received a video file depicting sexual conduct with a child who was between 3 and 5 years old.  Finally, Serr admitted that on June 10, 2021, he knowingly possessed 52 image files and 452 video files depicting child pornography on his cellular telephone.

Senior United States District Judge Norman A. Mordue also imposed a 15-year term of supervised release, which will start after Serr is released from prison, and ordered Serr to pay $6,000 in restitution and a $300 special assessment.  Serr will also be required to register as a sex offender.

Serr’s case was investigated by United States Homeland Security Investigations (HSI), and Investigators of the New York State Police, Computer Crimes Unit (CCU).  The case was prosecuted by Assistant U.S. Attorney Geoffrey J.L. Brown 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.

BINGHAMTON, NEW YORK - Nezir “Nick” Boljevic, age 57, of Broome County, New York, was sentenced today in federal court in Utica to 12 months and 1 day in prison after previously pleading guilty to one felony count of willful failure to pay federal payroll taxes, announced United States Attorney Carla B. Freedman and Thomas Fattorusso, Executive Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division (IRS-CI), New York Field Office.

In his guilty plea, Boljevic admitted that from 2007 through 2017, while he owned and operated Vestal Diner in Vestal, New York, he failed to make payroll tax payments to the government with respect to his employees, including for Social Security and Medicare taxes. Boljevic withheld the payroll taxes from his employees’ paychecks but did not report the withholdings or turn the money over to the Internal Revenue Service. To avoid IRS collection efforts, Boljevic repeatedly put Vestal Diner in the names of a series of nominee owners with different Employer Identification Numbers for tax purposes, even though Boljevic remained the true owner and operator of Vestal Diner. In total, Boljevic failed to pay approximately $322,516.51 in payroll taxes to the Internal Revenue Service between 2007 and 2017. Boljevic no longer owns or operates Vestal Diner.

The defendant will serve a three-year term of supervised release after he completes his prison sentence, and he was ordered to pay $322,516.51 in restitution to the IRS.

This case was investigated by Internal Revenue Service-Criminal Investigation Division (IRS-CI), and it was prosecuted by Assistant U.S. Attorney Michael F. Perry and former Assistant United States Attorney Andrew Beaty.

SYRACUSE, NEW YORK - Jeremie Hoyt, age 42, of Davenport, New York, was sentenced today to serve 25 years in federal prison for sexually exploiting a child and distributing and possessing child pornography, announced United States Attorney Carla B. Freedman, Matthew Scarpino, Acting Special Agent in Charge, Homeland Security Investigations (HSI) and New York State Police Superintendent Kevin P. Bruen.

As part of his previous guilty plea, Hoyt admitted that he used a child to engage in sexually explicit conduct for the purpose of producing visual depictions of that conduct, and that in August of 2019 and November of 2020 he produced a sexually explicit photograph and video of the child.  Hoyt further admitted that he later distributed the sexually explicit image and video over the Internet to other users on a messaging application and that he still possessed the sexually explicit image and video on his iPad when law enforcement searched his home in April 2021.

United States District Judge Glenn T. Suddaby also imposed a 30 year term of supervised release, which will start after Hoyt is released from prison, and ordered Hoyt to pay a $500 special assessment. Hoyt will also be required to register as a sex offender.

Hoyt’s case was investigated by U.S. Homeland Security Investigations (HSI), Investigators of the New York State Police, Computer Crimes Unit (CCU), and the Delaware County District Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as a 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.

SYRACUSE, NEW YORK - Thomas E. Cargill, age 56, of Endicott, New York was sentenced today to 18 months in prison, to be followed by 20 years of supervised release, for failing to update his sex offender registration by maintaining an unregistered email account. The announcement was made by United States Attorney Carla B. Freedman and David L. McNulty, United States Marshal for the Northern District of New York.

Cargill also was ordered to pay a special assessment of $100. In addition to the term of imprisonment for failing to update his sex offender registration, Cargill was sentenced to an 10 month consecutive term of imprisonment for violating the conditions of his supervised release by committing new criminal conduct, failing to answer truthfully questions from his probation officer, and possessing an undisclosed internet capable device.

As part of his previously entered plea agreement, Cargill admitted that from November 5, 2016, through November 13, 2021, he failed to register a Google email address he created on September 24, 2016, as required by the Sex Offender Registration and Notification Act (“SORNA”).  Cargill was required to register as a sex offender because of his prior federal conviction in 2008 for possession of child pornography in Maryland.  That conviction required Cargill to register as a sex offender and to keep that registration current with personal identifying information, including email accounts. Cargill admitted that although he maintained his registration as a sex offender in the State of New York he did not register one of the email accounts that he had created despite knowing that he has an obligation under law to do so.

This case was investigated by the United States Marshals Service Sex Offender Investigation Branch with assistance from the United States Probation Office for the Northern District of New York, and was prosecuted by Assistant United States Attorney Geoffrey J. L. Brown.

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney's offices, 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 http://www.justice.gov/psc/.

ALBANY, NEW YORK – Mikal Smith, age 28, of Albany, was convicted on August 31 of unlawfully possessing ammunition as a felon, and possessing and intending to distribute cocaine base, following a three-day trial. The announcement was made by United States Attorney Carla B. Freedman; Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; and Albany Police Chief Eric Hawkins.

The evidence at trial established that on April 7, 2021, Smith possessed with the intent to distribute 83 grams of cocaine base and possessed a large-capacity magazine loaded with 20 rounds of LC 5.56 ammunition.  Smith discarded the cocaine base and ammunition during a foot pursuit after members of the Albany Police Department’s Community Response Unit attempted to arrest him on a parole warrant.  At the time, Smith had felony convictions for Attempted Robbery in the Second Degree and Criminal Sale of a Controlled Substance in the Third Degree.  Under federal law, these convictions prevented Smith from lawfully possessing the ammunition. 

When United States District Judge Mae A. D’Agostino sentences him on December 14, 2022, Smith faces a minimum of 5 years and up to 40 years in prison, and a term of post-imprisonment 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.

This case was investigated by the Albany Police Department and DEA, and is being prosecuted by Assistant United States Attorneys Allen J. Vickey and Katherine Kopita.

ALBANY, NEW YORK – Thomas Brace a/k/a “Justice,” age 61, of Altoona, Pennsylvania, and formerly of Albany; Taliek Lanier, age 22, of Albany; and Errol Murray, age 21, of Yonkers, New York, were arrested this week on an indictment alleging their participation in a conspiracy to defraud the New York State Department of Labor (NYSDOL). The defendants allegedly conspired with Jamie Johnson, who previously pled guilty to fraudulently obtaining $701,441 in unemployment insurance benefits under the names of other people, 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; New York State Inspector General Lucy Lang; Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); and Jonathan Mellone, Special Agent in Charge, New York Region, United States Department of Labor, Office of Inspector General (USDOL-OIG). 

The indictment alleges that Brace, Lanier, and Murray provided Johnson with the personal identifying information of other people, which Johnson used to file false claims via the NYSDOL website. The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.

Murray was arraigned yesterday before United States Magistrate Judge Daniel J. Stewart and released with conditions pending trial. Brace also appeared yesterday before Judge Stewart and is scheduled to be arraigned tomorrow. Lanier appeared today before a federal magistrate judge in the Middle District of Pennsylvania, was released with conditions, and will be arraigned before Judge Stewart on September 7.

The defendants are charged with mail and wire fraud, as well as aggravated identity theft. The mail and 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. The charges for aggravated identity theft carry a mandatory term of 2 years in prison, to be imposed consecutive 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.

This case was investigated by the New York State Inspector General’s Office, HSI, USPIS, and USDOL-OIG, with assistance from the NYSDOL Office of Special Investigations, the Capital Region Crime Analysis Center, and the Albany County Department of Social Services. The case is being prosecuted by Assistant U.S. Attorney John T. Chisholm.

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 – Marquail Jones, age 33, of Syracuse, was sentenced yesterday to 96 months in prison for distributing cocaine, cocaine base and fentanyl. The announcement was made by 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 Kevin P. Bruen, Superintendent of the New York State Police.

In previously pleading guilty, Jones admitted he trafficked cocaine, cocaine base and fentanyl from Syracuse to the areas of Glens Falls and Plattsburgh, New York.  Jones admitted that when police pulled him over in Plattsburgh on December 18, 2020, he possessed 82 grams of cocaine, 8.8 grams of cocaine base and 38 grams of fentanyl that he intended to distribute.  Jones also admitted that he had distributed another 82 grams of cocaine just before he was pulled over.

Senior United States District Judge Norman A. Mordue also imposed a 3-year term of supervised release, which will start after Jones is released from prison.

This case was investigated by the DEA and New York State Police, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.

ALBANY, NEW YORK – The New York State Environmental Facilities Corporation (“EFC”) has agreed to pay $500,000 to resolve allegations that it falsely certified that several individuals were working at EFC in support of a federal water-quality improvement grant when, in fact, they were working directly for now-former Governors of New York in positions unrelated to that grant, announced United States Attorney Carla B. Freedman.  As part of the

settlement agreement , EFC admitted that former senior EFC officials caused the state to include in federal funding requests part of these individuals’ salaries and benefits without disclosing that they were hired by, and worked for, the Executive Chamber.

United States Attorney Freedman stated: “The Environmental Facilities Corporation falsely certified that employees were supporting a clean water grant when they were actually working directly for former Governors in unrelated positions.  I am pleased that current EFC leadership was willing to admit what happened, resolve EFC’s liability, and implement new compliance measures that should ensure ethical and legal behavior in the future.  We will continue to use all of our resources to make sure that federal grant administrators follow the rules and that clean water grant money is used to improve water quality for all New Yorkers.”

EFC is a public benefit corporation that provides funding and technical assistance to municipalities, businesses, and state agencies for environmental and public health projects in New York State.  During fiscal years 2009 through 2019 (the “Relevant Period”), New York State, through its Department of Environmental Conservation (“DEC”), submitted applications to the United States Environmental Protection Agency (“EPA”) for Clean Water State Revolving Fund (“CWSRF”) grants.  During this same period, EPA awarded CWSRF grant funds to the state.  EFC and DEC jointly administered New York’s CWSRF program.

The Executive Chamber is the Office of the Governor of the State of New York and includes staff who assist the Governor in managing state government.  As part of the settlement agreement, EFC admitted that “during the Relevant Period, senior Executive Chamber staff asked (now-former) senior EFC officials for EFC to pay the salaries and benefits of several individuals who the then-Governors hired to work in the Executive Chamber in positions unrelated to the CWSRF program (the ‘Subject Employees’).  During the Relevant Period, more than one former senior EFC official agreed to this arrangement.”  EFC further admitted that “the individuals hired to work in the Executive Chamber pursuant to this arrangement were not hired specifically to work at EFC or to support the CWSRF program.”  EFC acknowledged that “one individual whose salary and benefits EFC paid was hired by the Executive Chamber to work on the former Governor’s advance team while another was hired to help run the former Governor’s Washington, D.C. office.”

On eight occasions during the Relevant Period, EFC submitted certifications to EPA that identified one or more Subject Employee by name, title, and costs that EFC incurred to pay them, and falsely represented that such costs bore a “beneficial or causal relationship” to the CWSRF grant.  EFC admitted in the settlement agreement that “it never informed EPA that those individuals worked for the Executive Chamber in positions unrelated to the CWSRF program.”

EFC represented in the settlement agreement that, upon learning of the United States’ investigation, it promptly took steps to ensure that all individuals listed as EFC staff in the CWSRF documentation submitted to EPA worked at EFC in positions related to those grants.  It further represented that it has implemented safeguards in its internal controls to ensure the conduct covered by the settlement agreement will not recur in the future.

Special Agent in Charge Nic Evans of EPA’s Office of Inspector General (“OIG”) stated: “EFC knowingly submitted false information to EPA, resulting in the state accessing federal funds for unintended purposes.  This settlement is an example of EPA OIG’s commitment to ensuring that all EPA grant administrators, including state actors, are held accountable when dealing with taxpayer funds so that the public can have confidence in the integrity of vital programs like the Clean Water State Revolving Fund.”

Special Agent in Charge Janeen DiGuiseppi of the Albany Field Office of the Federal Bureau of Investigation (“FBI”) stated: “EFC falsely certified for a decade that individuals worked in support of the Clean Water State Revolving Fund federal grant, when their actual positions in the Executive Chamber were wholly unrelated.  The FBI takes our responsibility to investigate and pursue those who commit fraud very seriously and we will continue to work with our federal, state, and local law enforcement partners to ensure the protection of these federally funded programs.”

The investigation and settlement were the result of a coordinated effort among the United States Attorney’s Office for the Northern District of New York, EPA OIG, and the FBI.  The United States was represented by Assistant United States Attorney Adam J. Katz.

PLATTSBURGH, NEW YORK – Gerald Washington, age 29, of Springfield, Massachusetts, pled guilty today to possession of a controlled substance with intent to distribute and unlawful possession of a firearm by a prohibited person.

The announcement was made by United States Attorney Carla B. Freedman; New York State Police Superintendent Kevin P. Bruen; and Acting Chief Patrol Agent Keith Hoops, United States Border Patrol, Swanton Sector.

As part of his plea, Washington admitted that on July 1, 2020, he travelled from Springfield, Massachusetts, to Westville, New York, near the northern border, with a co-defendant, and acquired approximately 13 kilograms of marijuana that was intended for distribution in Massachusetts. Washington also admitted to possessing a handgun while being a convicted felon.

Washington faces a sentence of 70 months in prison, a fine of up to $250,000, and a term of post-imprisonment supervision of 2 years when he is sentenced on December 28, 2022, by United States District Judge Mae A. D’Agostino.  This is a sentence jointly recommended by the Government and the defendant; if Judge D’Agostino rejects the recommendation, Washington can withdraw his guilty plea and proceed to trial.

This case was investigated by the United States Border Patrol and the New York State Police, Violent Gangs and Narcotics Enforcement Team (VGNET).  This case is being prosecuted by Assistant U.S. Attorney Jeffrey Stitt.

SYRACUSE, NEW YORK - Tyler Hull, age 39, of Fulton, New York, was sentenced yesterday to serve 33 months in federal prison for conspiring to unlawfully distribute and possess with the intent to distribute eutylone, a Schedule I controlled substance. 

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

As part of his previously entered guilty plea, Hull admitted that from November of 2020, through December 22, 2020, he participated in a conspiracy to distribute eutylone to others throughout Oswego County. Eutylone is a synthetic cathinone and has pharmacological effects on the central nervous system similar to other schedule I or II substances such as methylone, pentylone, cocaine, methamphetamine, and MDMA.

United States District Judge Glenn T. Suddaby also imposed a 3-year term of supervised release, which will start after Hull is released from prison.

The case was investigated by Homeland Security Investigations (HSI), the U.S. Internal Revenue Service-Criminal Investigation (IRS-CI), and the Oswego County Drug Task Force, comprised of Special Agents of HSI, members of the City of Oswego Police Department, the Oswego County Sheriff’s Office, Investigators from the Oswego County District Attorney’s Office, the SUNY Oswego Police Department, and Agents of the U.S. Border Patrol.  The case was prosecuted by Assistant United States Attorney Adrian LaRochelle.

ALBANY, NEW YORK - Sean O’Hare, age 54, of South Portland, Maine, pled guilty today to committing wire fraud in connection with a scheme to defraud his tax preparation clients.  The announcement was made by 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).

O’Hare, a former tax preparer and accountant, admitted that he defrauded his clients trusted him to prepare their tax filings and pay their taxes.  From September 2015 through September 2016, O’Hare filed quarterly tax returns with the New York State Department of Taxation and Finance on behalf of three companies; these returns understated the amount of taxes owed by the companies. O’Hare collected the full amount of taxes owed from the companies and stole the difference between the amount in taxes remitted to New York State and the amount he received from the companies. O’Hare admitted to fraudulently obtaining $131,758, which he has agreed to repay as restitution.

O’Hare’s wire fraud conviction carries 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. O’Hare is scheduled to be sentenced on January 11, 2023, by Senior United States District Judge Lawrence E. Kahn. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

This case was investigated by USPIS, with assistance from the New York State Department of Taxation and Finance, and is being prosecuted by Assistant U.S. Attorney Alexander P. Wentworth-Ping.

PLATTSBURGH, NEW YORK – Brian Lazore, age 45, of Hogansburg, New York, pled guilty today to conspiracy to commit alien smuggling and three counts of alien smuggling.

The announcement was made by United States Attorney Carla B. Freedman and Acting Chief Patrol Agent Keith Hoops, United States Border Patrol, Swanton Sector.

Lazore admitted to smuggling six citizens of India from Cornwall, Ontario, into the United States using the St. Lawrence and St. Regis Rivers.   During the smuggling event on April 28, 2022, Lazore’s boat sank in the St. Regis River, and Lazore and the Indian citizens were ultimately picked up by the St. Regis Mohawk Rescue Vessel.  Lazore admitted to smuggling the aliens for his own financial gain.

Lazore faces a minimum of 5 years and up to 15 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced on January 5, 2023 by United States District Judge Brenda K. Sannes.

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.

This case was investigated by the United States Border Patrol and Homeland Security Investigations.  This case is being prosecuted by Assistant U.S. Attorney Jeffrey Stitt.