Northern District of New York

Yesterday, a federal jury convicted a New York man of conspiracy to commit economic espionage following a four-week jury trial.

According to court documents and evidence presented at trial, Xiaoqing Zheng, 59, of Niskayuna, was employed at GE Power & Water in Schenectady, New York, as an engineer specializing in sealing technology. He worked at GE from 2008 until the summer of 2018. The trial evidence demonstrated that Zheng and others in China conspired to steal GE’s trade secrets surrounding GE’s steam and gas turbine technologies, knowing or intending to benefit the People’s Republic of China and one or more foreign instrumentalities, including China-based companies that research, develop, and manufacture parts for turbines.

“Zheng conspired to steal trade secrets from his employer, GE, and transfer this information to his business partner in China, so they could enrich both themselves and companies receiving support from the PRC government,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “This is the kind of exploitation of our economy and open society that the Department will continue to counter relentlessly.”

"Today's verdict holds Xiaoqing Zheng accountable for betraying his employer and trying to help China cheat in the global marketplace," said U.S. Attorney Carla B. Freedman for the Northern District of New York. "With our law enforcement partners, we will continue to investigate and prosecute individuals who connive to steal trade secrets and valuable technology from the innovative companies doing cutting-edge work in our district.”

“Those who conspire to steal technology from a U.S. business and transfer it to China can cause tremendous damage,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “Good-paying jobs could be lost, and communities can suffer. These actions help China become more of a threat to our national security. This is why the FBI puts so much effort into investigating cases of economic espionage.”

“Dr. Zheng used his status as a trusted engineer with GE to conspire to commit economic espionage on behalf of the People’s Republic of China,” said Special Agent in Charge Janeen DiGuiseppi of the FBI’s Albany Field Office. “This conviction should send a strong message that the FBI will continue to vigorously investigate economic espionage cases and pursue prosecution in partnership with the United States Attorney’s Office to ensure the protection of American technology and American jobs.”

Sentencing is scheduled for Aug. 2 in Albany before U.S. District Judge Mae A. D’Agostino. Zheng faces up to 15 years in prison, a fine of up to $5 million, and a term of supervised release of up to three years. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The jury acquitted Zheng of two counts of economic espionage and two counts of trade secret theft.  The jury could not reach a verdict on one count of conspiracy to commit trade secret theft, two counts of economic espionage, three counts of trade secret theft, and one count of making a false statement to the FBI.

This case was investigated by the FBI, with assistance from the Homeland Security Investigations (HSI) Buffalo Field Office.

The case was prosecuted by Assistant U.S. Attorneys Rick Belliss and Emily C. Powers for the Northern District of New York, and Trial Attorney Matthew Chang of the National Security Division’s Counterintelligence and Export Controls Section.

PLATTSBURGH, NEW YORK – Marquail Jones, age 42, of Syracuse, New York, pled guilty today to possessing and intending to distribute controlled substances, announced United States Attorney Carla B. Freedman and Timothy Foley, Acting Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division.

Jones admitted that on December 18, 2020, he distributed 82 grams of cocaine to an individual in Schuyler Falls, New York.  Thereafter, police stopped and searched Jones’s vehicle and found approximately 8.8 grams of crack cocaine, approximately 82 grams of cocaine, and approximately 38.3 grams of fentanyl, along with approximately $15,000 in cash and a scale.

At sentencing on July 29, 2022, Jones faces up to 20 years in prison, a post-incarceration term of at least 3 years and up to a life term of supervised release, and a maximum fine of $1 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 was investigated by DEA and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.

ALBANY, NEW YORK – Bryan P. Krynicki, age 58, of Pittsfield, Massachusetts, was sentenced today to 120 months in prison for attempting to coerce and entice a minor to engage in sexual conduct 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).

Krynicki admitted that between February and April, 2020, he exchanged over 1,000 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.  Krynicki further admitted that on April 29, 2020, he traveled to meet with the child in Rensselaer County.  Krynicki 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 lifetime term of supervised release, which will start after Krynicki is released from prison.  As a result of his conviction, Krynicki 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.  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 – Ernest Shaw, Sr. of New Woodstock, New York, was sentenced yesterday to serve 15 years in federal prison in connection with his trial conviction for conspiracy to distribute and possess with intent to distribute more than five kilograms of cocaine, and 28 grams of cocaine base (crack), announced United States Attorney Carla Freedman and Timothy Foley, Acting Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.

During the September 2021 jury trial, evidence was presented that proved Ernest Shaw, Sr. conspired with others from September 2017 to September 25, 2019, to distribute and possess with intent to distribute cocaine and cocaine base in the Syracuse area. As part of the verdict, jurors unanimously found that the defendant’s part in the conspiracy involved more than 5 kilograms of cocaine and 28 grams of cocaine base (crack). The trial evidence included the seizure of over 171 grams of powder cocaine and over 80 grams of crack cocaine from a stash house in Nedrow, New York used by Shaw to store drugs prior to distributing them to drug dealers and drug users in the Syracuse area.  

Ernest Shaw was also sentenced yesterday to a 10-year term of supervised release following his release from federal prison and ordered to forfeit $36,335.00 in cash seized as drug proceeds by DEA during the execution of a search warrant at his home in New Woodstock, New York on September 25, 2019. Shaw also was ordered to pay a forfeiture money judgment in the amount of $105,000.00 for unrecovered proceeds he acquired during the conspiracy through the sale of cocaine and cocaine base (crack). 

Ernest Shaw, Sr. was previously convicted in federal court in Syracuse in March 2007 of conspiracy to distribute and possess with intent to distribute cocaine. He pled guilty and was sentenced to serve 41 months in federal prison in that previous case.  

This case was investigated by the United States Drug Enforcement Administration (DEA)-Syracuse Resident Office, which includes Task Force Officers from the City of Auburn Police Department, the City of Syracuse Police Department, the New York State Police, and the Oneida County Sheriff’s Office. Other Agencies that assisted in this investigation included the New York State Police, the Onondaga County Sheriff’s Office, Investigators from the Onondaga County District Attorney’s Office, and the U.S. Department of Homeland Security-Homeland Security Investigations (HSI). The case was prosecuted by Assistant U.S. Attorney Thomas Sutcliffe and Assistant U.S. Attorney Richard Southwick.   

SYRACUSE, NEW YORK – Sean O’Sullivan, age 59, of Sackets Harbor, New York, and David Rose, age 58, of Newport News, Virginia, have pled guilty to conspiracy to commit wire fraud for their roles in a fraudulent scheme to obtain government construction contracts that were set aside for businesses owned and operated by disabled veterans. O’Sullivan, Rose, and their businesses also agreed to pay a total of $758,526.68 to the United States to resolve their civil liability for the submission of false claims for payment to the federal government.

The announcement was made by United States Attorney Carla B. Freedman; Patrick J. Hegarty, Special Agent in Charge, Department of Defense Office of Inspector General Defense Criminal Investigative Service; Larry S. Moreland, Special Agent in Charge, U.S. Army Criminal Investigation Division, Mid-Atlantic Fraud Field Office; Joseph Dattoria, Special Agent in Charge of the General Services Administration, Office of the Inspector General (GSA-OIG); Amaleka McCall-Brathwaite, Special Agent in Charge, U.S. Small Business Administration, Office of Inspector General, Eastern Region (SBA-OIG); and Joseph Harris, Special Agent in Charge, Department of Transportation Office of Inspector General, Northeastern Region (DOT-OIG).

Federal government agencies offer “set aside” construction contracts to Service-Disabled Veteran-Owned Small Businesses (“SDVOSBs”), which must meet certain criteria, including that a military veteran with a disability rating incurred as a result of military service must own the majority of the business and personally manage and controls its daily business operations.

Rose and O’Sullivan incorporated, and co-owned, Sierra Delta Contracting, LLC, a construction company. Although Rose is a service-disabled military veteran, O’Sullivan is not. O’Sullivan certified to federal agencies that Sierra Delta was a SDVOSB, falsely representing that Rose personally managed and controlled Sierra Delta’s day-to-day business operations. That certification was false because O’Sullivan, not Rose, fulfilled those roles. Rose lived in Virginia, where he had a full-time job, unrelated to Sierra Delta, and O’Sullivan ran the business by himself in Jefferson County, New York, with little input from Rose.

Sierra Delta bid on and received multiple construction contracts from the Army at Fort Drum, New York, and one construction contract from the U.S. Department of Transportation. All of the contracts were 100% set aside for SDVOSBs. These contracts were fraudulently obtained because Sierra Delta was not a SDVOSB.

O’Sullivan arranged for Sierra Delta to hire SOS Inc. – O’Sullivan’s own construction company – as the primary subcontractor on the set-aside contracts, enabling O’Sullivan to retain the majority of the profits generated by the contracts. O’Sullivan admitted that he received $345,271.34 in profits from the scheme. Rose admitted that he received $33,992 from his participation in the scheme.

Government agencies challenged Sierra Delta’s SDVOSB status and questioned whether Rose managed the company on a day-to-day basis. In response, Rose falsely claimed that he “control[led] the long term and day to day operations of Sierra Delta Contracting LLC,” that he maintained Sierra Delta’s “main office” in Virginia, that he worked on Sierra Delta business 25 hours a week and that O’Sullivan dedicated substantially less time to Sierra Delta.  Rose knew these statements were false.

O’Sullivan, Sierra Delta Contracting LLC, and SOS Inc. will pay $690,542.68, and Rose will pay $67,984, to the federal government as part of the resolution of the criminal and civil allegations.

O’Sullivan is scheduled to be sentenced on May 11, 2022, and Rose is scheduled to be sentenced on July 20, 2022. The charges filed against O’Sullivan and Rose carry 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.

In a related matter, O’Sullivan also pled guilty to conspiring to commit an offense against the United States by offering and giving gratuities to Fort Drum Contracting Officer Cindy McAleese. In pleading guilty, O’Sullivan agreed that he promised and provided things of value to McAleese, including sports tickets, meals, sexual encounters, and time and attention, for and because of official action taken by McAleese on O’Sullivan’s behalf, such as providing O’Sullivan’s company with government contracts and approving payment on those contracts. O’Sullivan also admitted that he and McAleese took steps to keep their relationship a secret from other officials at Fort Drum. McAleese has been indicted for her alleged role in the conspiracy, and her trial is scheduled to take place on July 11, 2022. The charges in the indictment against McAleese are merely accusations, and she is presumed innocent unless and until proven guilty.

The investigation and resolution were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the Department of Defense Office of Inspector General Defense Criminal Investigative Service; U.S. Army Criminal Investigation Division; General Services Administration, Office of the Inspector General; U.S. Small Business Administration, Office of Inspector General; and Department of Transportation Office of Inspector General, Northeast Region. The criminal cases are being prosecuted by Assistant United States Attorney Michael Perry. The civil case was handled by Assistant United States Attorney Christopher R. Moran.

ALBANY, NEW YORK – Hector J. Sanchez, age 30, of Rensselaer, New York, pled guilty today to defrauding pandemic-related unemployment insurance programs administered by the New York State Department of Labor (NYSDOL). Sanchez also admitted to fraudulently obtaining a Paycheck Protection Program (PPP) loan.

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

Sanchez pled guilty to mail fraud and aggravated identity theft with respect to his unemployment insurance fraud scheme. He admitted to soliciting the personal identifying information of other people on social media and using the information to submit false unemployment insurance applications to NYSDOL. He also admitted that he fraudulently obtained a PPP loan by falsely claiming to run a car wash business.

Sanchez agreed to pay restitution in the amount of $131,560 to the State of New York and $12,500 to the PPP lender.

The mail fraud convictions carry maximum terms of 20 years in prison, fines of up to $250,000, and a term of supervised release of up to 3 years. The aggravated identity theft conviction carries a mandatory term of 2 years in prison, to be imposed consecutively to any other term of imprisonment. Sanchez is scheduled to be sentenced on July 25, 2022 by United States District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

The case was investigated by USPIS, USDOL-OIG, and HSI, with assistance from the NYSDOL Office of Special Investigations and the Albany Police Department. 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 – Jay Elhage, age 39, of Palermo, New York, was sentenced today to serve 13 years in prison for distributing, receiving, attempting to receive, and possessing child pornography. The announcement was made by 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.

In addition to the 13-year term of imprisonment, Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release to begin after Elhage is released from prison, ordered him to pay $15,000 in restitution to his victims, and imposed $600 in special assessments. Elhage also will be required to register as a sex offender upon his release from prison. 

During a 3-day jury trial in December 2021, the evidence established that Elhage used an online peer-to-peer file-sharing program to distribute, receive and attempt to receive child pornography and that he possessed thousands of child pornography images and videos on three devices found in the bedroom of his home.

This case was investigated by U.S. Homeland Security Investigations (HSI), and the New York State Police-Computer Crimes Unit and was prosecuted by Assistant U.S. Attorneys Geoffrey J.L. Brown and 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 Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

SYRACUSE, NEW YORK – Dionel Hall, age 42, of Liverpool, New York, pled guilty today to possessing with intent to distribute a controlled substance, possessing a firearm in furtherance of a drug-trafficking crime, and unlawfully possessing a firearm as a felon, announced United States Attorney Carla B. Freedman, Timothy Foley, Acting Special Agent in Charge. U.S. Drug Enforcement Administration (DEA), New York Division, and New York State Police Superintendent Kevin P. Bruen.

As part of his guilty plea, Hall admitted that on February 7, 2021, he possessed 995.6 grams of eutylone, also known as “molly,” which he intended to distribute to customers in Oneida County and elsewhere. Hall further admitted that on September 9, 2021, he possessed a loaded semiautomatic pistol, approximately 140 rounds of ammunition of various calibers, and $45,094.00 cash drug proceeds. Hall acknowledged that at the time of the offense, he knew that he had been convicted of multiple felony offenses punishable by imprisonment for a term exceeding one year, and that he was also on parole at the time. Those prior convictions included a first-degree robbery conviction in 2003, for which he received a sentence in Monroe County Court of 18 years’ imprisonment.

At sentencing on July 20, 2022, Hall faces minimum term of 5 years and up to life in prison, a post-incarceration term of at least 3 years and up to life of supervised release, and a maximum fine of $1,000,000. 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.

This case is being investigated by DEA, the New York State Police, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and is being prosecuted by Assistant U.S. Attorney Matthew J. McCrobie.

SYRACUSE, NEW YORK – Noah Felice, age 70, of Fayetteville, New York, was arraigned today after being charged in an indictment with lying to the Federal Aviation Administration (FAA), announced United States Attorney Carla B. Freedman, Joseph Harris, Special Agent in Charge of the Northeast Region of the U.S. Department of Transportation, Office of Inspector General, and Christopher F. Algieri, Special Agent in Charge of the Northeast Field Office of the Department of Veterans Affairs, Office of Inspector General.

According to the indictment, in September 2017, Felice made false statements to the FAA on a Form 8500-8, which is an application pilots submit to the FAA to renew their medical certifications. The indictment alleges that Felice stated on the form that he had no history of criminal convictions and had never received medical disability benefits, when he knew that he had been convicted of multiple prior misdemeanor offenses and was receiving disability benefits from the Department of Veterans Affairs.

The charge filed against Felice 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. 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.

Felice appeared today in U.S. District Court in Syracuse, New York and was released by United States Magistrate Judge Miroslav Lovric on conditions of supervision pending further proceedings in the case.

The charge in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.

This case is being investigated by the U.S. Department of Transportation, Office of Inspector General and the U.S. Department of Veterans Affairs, Office of Inspector General, and is being prosecuted by Assistant U.S. Attorney Thomas Sutcliffe. 

BINGHAMTON, NEW YORK – Stan Johnson, age 23, of the Bronx, New York, pled guilty today and was sentenced to time served (approximately 6 months in jail) for trespassing at the Albany International Airport on May 24, 2021.

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 Albany County Sheriff Craig D. Apple Sr.

As part of his guilty plea, Johnson admitted that at the Albany airport on May 24, 2021, he breached the perimeter fence, crossed the airfield, and entered an unoccupied aircraft, where he sat in the cockpit.  He then exited the airplane and entered the airport terminal through a gate access door, which he propped open; he then walked around the terminal hiding from security. He did not submit to security screening of his person or property before trespassing on airport property and entering the airplane.

Following Johnson’s plea, Senior United States District Judge Thomas J. McAvoy sentenced Johnson to time served (approximately 6 months in jail) and 1 year of supervised release.

This case was investigated by the FBI’s Joint Terrorism Task Force (JTTF), the Albany County Sheriff’s Office, the Transportation Security Administration (TSA), and the Federal Air Marshal Service, and was prosecuted by Assistant U.S. Attorney Alexander Wentworth-Ping.

SYRACUSE, NEW YORK – Frederick J. Haresign, age 62, of Oswego, New York pled guilty yesterday to possessing child pornography. The announcement was made by United States Attorney Carla B. Freedman and Matthew Scarpino, Acting Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office.

As part of his guilty plea, Haresign, a school bus driver, admitted that, in 2017, he provided a minor child who rode on his bus with nicotine and other gifts in exchange for the child creating sexually explicit images and videos and providing those images and videos to Haresign. Haresign admitted that he possessed those images and videos in 2017 so that he could view them.

Sentencing is set for July 20, 2022, before Chief United States District Court Judge Glenn T. Suddaby. If the Court accepts the parties’ plea agreement, Haresign will be sentenced to 10 years’ imprisonment to be followed by 20 years of supervised release. In addition, the court could impose a fine of up to $250,000 and order restitution to the victim. Haresign will have to register as a sex offender upon his release from prison. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines, and other factors.

This case is being investigated by the Department of Homeland Security Investigations (HSI) and the New York State Police: Fulton Bureau of Criminal Investigations, and Troop D Computer Crimes Unit. It is being prosecuted by Assistant United States Attorney Michael D. Gadarian in coordination with the Oswego County District Attorney’s Office as part of Project Safe Childhood.

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better 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 – Kymani Minott, aka “Bizz,” aka “K-Bizz,” age 19, of Utica, New York, pled guilty to conspiring to distribute and possess with intent to distribute 40 grams or more of a mixture and substance containing fentanyl, and distribution of mixture and substance containing fentanyl, announced United States Attorney Carla B. Freedman, Oneida County District Attorney Scott McNamara, New York State Police Superintendent Kevin P. Bruen, Timothy Foley, Acting Special Agent in Charge. U.S. Drug Enforcement Administration (DEA), New York Division; John B. Devito, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Mark Williams, Utica Police Department.

As part of his guilty plea, Minott admitted that beginning in March 2021, he agreed with others to distribute 40 grams or more of a mixture containing fentanyl to customers in the Utica, New York area. Minott also admitted that on June 17, 2021, he distributed approximately 5 grams of a fentanyl mixture in Utica.

At sentencing on July 14, 2022, Minott, faces a minimum term of 5 years and up to 40 years in prison, a post-incarceration term of at least 4 years and up to life of supervised release, and a maximum fine of $5,000,000.00. 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 is being investigated by New York State Police-Special Investigations Unit (NYSP-SIU), investigators from the Oneida County District Attorney’s Office, members of the City of Utica Police Department, DEA, ATF, and is being prosecuted by Assistant U.S. Attorney Matthew J. McCrobie.

SYRACUSE, NEW YORK – Phoenix Phan, age 63, of Syracuse, was sentenced yesterday to 18 months’ imprisonment and one year of supervised release for filing a false tax return for herself and aiding and abetting the filing of a false tax return for a client. Phan also was ordered to pay $890,690.67 in restitution to the Internal Revenue Service. The announcement was made by United States Attorney Carla B. Freedman and Thomas Fattorusso, Special Agent in Charge, New York Field Office, Internal Revenue Service – Criminal Investigation (IRS-CI).

As part of her previously entered guilty plea, Phan admitted that she failed to report gross receipts on her personal income tax returns for tax years 2013-2017.  She also admitted that she aided and assisted hundreds of clients in filing false federal income tax returns during the same period, including by falsely reporting: (1) business income that the taxpayer did not earn; (2) rental losses; and/or (3) that the taxpayer had a filing status (e.g., head of household) that the taxpayer did not actually have.

This case was investigated by IRS-CI and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian.

ALBANY, NEW YORK – Gary Ryan, age 51, of Mechanicville, New York, was sentenced today to 30 years in prison for aggravated sexual abuse and transportation of minors to engage in sexual activity.  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 Colonie Police Department Chief Michael Woods.

As part of his previously entered guilty plea, Ryan admitted that in 2003 and 2004, he took Victim 1, then 5 and 6 years old, to Florida, Massachusetts, and Nevada.  On those trips, Ryan anally penetrated Victim 1. 

In 2007, Ryan took Victim 2, then 14 years old, to Florida and Massachusetts.  On those trips, Ryan showed Victim 2 pornography and rubbed Victim 2’s penis.

Between 1998 and 1999, Ryan took Victim 3, then 14 or 15 years old, to Massachusetts.  On that trip, while Victim 3 was asleep, Ryan rubbed Victim 3’s penis to try to arouse him and shaved Victim 3’s genitals.  Ryan instructed another teenager to video-record the conduct.

In imposing sentence, United States District Judge Mae A. D’Agostino told Ryan that he is “the definition of a sexual predator.”  She also imposed a lifetime term of supervised release, which will begin after Ryan is released from prison. Ryan will also be required to register as a sex offender. 

This case was investigated by the FBI and its Child Exploitation Task Force, which includes investigators from the Colonie Police Department, the Saratoga County Sheriff’s Department, and the New York State Police.  This case was prosecuted by Assistant United States Attorney Katherine Kopita 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 – Jovaun Clark, age 45, of Syracuse, was sentenced yesterday to serve 87-months in federal prison for possessing unregistered machine guns and short-barreled rifles, possessing firearms and ammunition while a convicted felon, and selling firearms and ammunition to a convicted felon, announced United States Attorney Carla B. Freedman, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Chief Kenton Buckner, City of Syracuse Police Department, and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.

As part of his guilty plea, Clark admitted to selling seven (7) firearms and numerous rounds of ammunition in an undercover enforcement operation in January 2019.  Five (5) of the firearms were “ghost guns” bearing no serial number, two (2) were handguns that had been modified to operate as machine guns, and two (2) were illegal short-barreled rifles. None of the machine guns and short-barreled rifles were registered to the defendant as required by federal law.  In 1999, the defendant was convicted in Onondaga County Court of Criminal Possession of a Controlled Substance in the Third Degree, a felony offense.

United States District Judge David N. Hurd further imposed a 3-year term of supervised release, which will start after Clark is released from prison. 

This case was investigated by United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Syracuse Police Department (Intelligence Section), and the U.S. Drug Enforcement Administration (DEA), and was prosecuted by Assistant U.S. Attorneys Thomas Sutcliffe and Richard Southwick.

This prosecution was brought as 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 – Daniel Porrazzo, a/k/a “lickndipinu,” age 52, of Stillwater, New York, was sentenced today to 210 months in prison for possessing child pornography.  The announcement was made by United States Attorney Carla B. Freedman and Matthew Scarpino, Acting Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office.

As part of his previously entered guilty plea, Porrazzo admitted that on June 2, 2016, he possessed approximately 2,682 images and 43 videos of child pornography on two laptop computers, and that the child pornography he possessed included depictions of children under age 12 being sexually abused.

Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will begin after Porrazzo is released from prison.  Porrazzo will also be required to register as a sex offender.

The case was investigated by HSI and prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal 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 - Sean Okrzesik, age 34, of Syracuse, was sentenced today to serve 25-months in federal prison on charges of aggravated identity theft and theft of Supplemental Security Income (SSI) benefits.  The charges stemmed from Okrzesik’s use of the names and Social Security numbers of SSI beneficiaries or their representative payees in order to steal SSI benefit payments.  Okrzesik’s conduct occurred while he was employed in the Syracuse District Office of the Social Security Administration (SSA).  SSI is a federal income supplement program funded by general tax revenue. The program is designed to help the elderly and people with disabilities, with little or no income, cover the costs of basic needs.

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 his previously entered guilty plea, Okrzesik admitted that from February of 2020 through February of 2021, he opened bank accounts using the names and Social Security numbers of various SSI beneficiaries or their representative payees.  Okrzesik also admitted that once these accounts had been created, he would divert SSI benefit payments intended for these beneficiaries into the accounts, which he then used to pay personal expenses including the purchase of video gaming equipment, a custom suit, jewelry, airline tickets to the Caribbean, and online gambling.  The total amount of SSI benefits stolen by Okrzesik was $103,798.77.

“Sean Okrzesik stole from Supplemental Security Income funds while working for the Social Security Administration,” said United States Attorney Carla B. Freedman.  “Hard working Americans contributed to those funds to support their fellow citizens who need help. The sentence imposed today represents a measure of justice for that breach of faith and serves as notice to those who might consider similar thefts that they will be held fully accountable for their crimes.”

“Mr. Okrzesik used his position of public trust at the Social Security Administration (SSA) to steal Supplemental Security Income funds, a safety net for those in need.  We will continue to work with SSA to identify suspected employee fraud,” said Gail S. Ennis, Inspector General for the SSA. “I want to thank SSA, the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Adrian S. LaRochelle for their ongoing commitment in their fight to help ensure public trust in SSA’s vital programs.”

United States District Judge David N. Hurd also imposed a 3-year term of supervised release, which will start after Okrzesik is released from prison, and ordered Okrzesik to pay $103,798.77 in restitution to SSA.

This case was investigated by the SSA Office of the Inspector General and was prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.

ALBANY, NEW YORK – Michael Murray, age 69, of Sidney, New York, was arrested and charged yesterday with possessing 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).

According to the complaint, Murray possessed child pornography images and videos on his phone. 

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

Murray appeared yesterday before United States Magistrate Judge Daniel J. Stewart, and was detained pending further proceedings.  If convicted on this charge, Murray faces a minimum of 10 years and up to 20 years in prison, a maximum $250,000 fine, 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 is being investigated by HSI with assistance from the New York State Police, and is being prosecuted by Assistant U.S. Attorney Rachel Williams.

This case is being prosecuted 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 – Eric William Tompkins, age 38, of Clifton Park, New York, was sentenced today to serve 10 years in prison for possessing child pornography.  Tompkins also received a 43-month term of imprisonment for failing to register as a sex offender; that sentence will run concurrent to the term of imprisonment for child pornography possession.

The announcement was made by United States Attorney Carla B. Freedman; United States Marshal David L. McNulty; 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 pleas, Tompkins acknowledged that, in 2009, he was convicted of a sex offense in Washington State and was required to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA).  Tompkins further acknowledged that, from February 2017 until his arrest by the United States Marshals Service (USMS) in March 2019, he failed to register as a sex offender in New York and failed to update his SORNA registration in Washington.  Tompkins also admitted that, at the time of his arrest in March 2019, he possessed child pornography images on his cell phone. 

Senior United States District Judge Thomas J. McAvoy further imposed a 15-year term of supervised release, which will start after Tompkins is released from prison.  Tompkins will continue to be required to register as a sex offender. 

Tompkins’ case was investigated by the USMS along with the FBI and its Child Exploitation Task Force, which includes members of federal, state and local law enforcement agencies, including the New York State Police.  The 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 - James Obelkevich, age 52, of Carbondale, Pennsylvania, was sentenced today to 121 months (10 years and 1 month) for traveling to New York from Pennsylvania for the purpose of engaging in illicit sexual conduct with two children. 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 New York State Police Superintendent Kevin P. Bruen.

As part of his previously entered guilty plea, Obelkevich admitted that from the summer of 2019 until the spring of 2020 he exchanged multiple sexually explicit messages via an online social networking application with an undercover officer posing as the mother of 9-year-old and 13-year-old girls.  In these messages, Obelkevich expressed a desire to engage in sexually explicit conduct with both children.  Obelkevich further admitted that on March 11, 2020, he traveled from Pennsylvania to New York in order to meet with the children and engage in sexual conduct with them at a location in the Binghamton area.

Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will start after Obelkevich is released from prison.  Obelkevich will also be required to register as a sex offender.

This case was investigated by 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 was prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle 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 – Chantal Jaquez, age 20, of Syracuse, pled guilty today to robbing a Syracuse convenience store and brandishing a rifle in furtherance of the robbery, announced United States Attorney Carla B. Freedman, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Chief Kenton Buckner, City of Syracuse Police Department, and William Fitzpatrick, Onondaga County District Attorney.

As part of her guilty plea, Jaquez admitted that on December 21, 2020, at about 10:45 am, she and Akiem Howard robbed a convenience store in Syracuse, NY. During the robbery, Howard carried a handgun and Jaquez carried a high-powered rifle. Jaquez went behind the counter where the clerk was standing and pointed the rifle at the clerk. While fleeing the store, Howard fired several rounds from his handgun at the store clerk. One of the bullets struck Jaquez in the leg. Howard pleaded guilty to related charges on March 1, 2022.

Sentencing is scheduled for July 19, 2022, before the Hon. Thomas J. McAvoy in Binghamton, New York, at which time Jaquez faces a minimum term of imprisonment of 7 years, a maximum term of life, a fine of up to $250,000, and a term of supervised release of up to 5 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

This case was investigated by the Syracuse Police Department’s Criminal Investigations Division (CID), the SPD Intelligence Section (Intel), the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Onondaga County District Attorney’s Office, and the United States Marshals Fugitive Task Force as part of Project Safe Neighborhoods (PSN) and is being prosecuted by Assistant U.S. Attorney Thomas Sutcliffe.

Project Safe Neighborhoods (PSN) is 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.

SYRACUSE, NEW YORK – Antwan Jones, age 37, of Syracuse, was sentenced today to serve 57 months in federal prison for possessing fentanyl with intent to distribute.

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 United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Chief Kenton Buckner, Syracuse Police Department.

In pleading guilty, Jones admitted to possessing and intending to distribute 132 grams of fentanyl, on January 20, 2020.  Jones was found to be in possession of the fentanyl during a search of his vehicle following a traffic stop in Syracuse New York.  Jones intended to distribute the fentanyl to others.

Senior U.S. District Judge Thomas J. McAvoy also sentenced Jones to serve 3 years of post-release supervision.

This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Syracuse Police Department, and was prosecuted by Assistant U.S. Attorneys Andrew Beaty and Geoffrey Brown.

ALBANY, NEW YORK – Kevin Smurphat, age 33, of Whitehall, New York, appeared in federal court yesterday on child pornography charges.

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 indictment, Smurphat used the Internet to distribute, receive, transport and possess images and videos of child pornography. 

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

Smurphat appeared yesterday before United States Magistrate Judge Daniel J. Stewart and was ordered detained pending further proceedings.  If convicted, Smurphat faces a minimum 15 years and up to 40 years in prison, a maximum $250,000 fine, 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 is being investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant U.S. Attorney Dustin C. Segovia 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 – Adrian Morris, age 65, of Clifton Park, New York, formerly a licensed psychiatrist specializing in addiction recovery, was sentenced today to serve 37 months in prison for distributing controlled substances outside the course of professional practice and for no legitimate medical purpose.

The announcement was made by United States Attorney Carla B. Freedman; Acting Special Agent in Charge Timothy Foley of the U.S. Drug Enforcement Administration (DEA), New York Division; and Special Agent in Charge Janeen DiGuiseppi of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his guilty plea, Morris admitted that he dispensed controlled substances, including Adderall and Xanax, for no legitimate medical purpose, to people he never met or treated.  Morris also admitted that he engaged in personal relationships with female patients seeking treatment from him for addiction to controlled substances.

United States District Judge Mae A. D’Agostino also imposed a 2-year term of supervised release, which will start after Morris is released from prison.

This case was investigated by the DEA, FBI, Albany County Sheriff’s Office, and the New York State Bureau of Narcotic Enforcement, and was prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Emmet J. O’Hanlon.

SYRACUSE, NEW YORK – Vennie Coleman, age 38, of Utica, New York, was sentenced yesterday to serve 97-months in federal prison for his role in a drug conspiracy that trafficked fentanyl and acetyl fentanyl in Utica from July 2018 through July 2019, announced United States Attorney Carla B. Freedman, Oneida County District Attorney Scott McNamara, Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), New York State Police Superintendent Kevin P. Bruen, and Chief Mark Williams, Utica Police Department.

The multi-agency investigation began in March of 2017 and culminated in the federal arrest of Vennie Coleman on July 23, 2019, following the execution of several search warrants in Utica where drugs, cash, and other evidence was seized.

In addition to his prison sentence, Vennie Coleman was also sentenced to a post-incarceration term of supervised release of 4 years. The Court also directed the forfeiture of unrecovered assets Coleman acquired through the distribution of drugs consisting of a money judgment in the amount of $36,100.00.

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 New York State Police-Special Investigations Unit (NYSP-SIU), Investigators from the Oneida County District Attorney’s Office, members of the City of Utica Police Department, and the Federal Bureau of Investigation (FBI), and was prosecuted by Assistant U.S. Attorney Andrew Beaty, Special Assistant United States Attorney Grant Garramone, and Assistant U.S. Attorney Richard Southwick.

SYRACUSE, NEW YORK – Matthew Bormann, age 35, previously of Sherburne, New York, was sentenced yesterday to serve 120 months (10 years) in prison, to be followed by 15 years of supervised release, for possessing child pornography announced 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 New York State Police Superintendent Kevin P. Bruen.

As part of his previously entered guilty plea, Bormann admitted that on March 12, 2021, during a visit at his home from his United States Probation Officer, Bormann possessed at least 3500 images and video files of child pornography on a cellular telephone he was prohibited from possessing under the conditions of his supervised release.

In addition to the term of imprisonment for possessing child pornography, Bormann was sentenced yesterday to a 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 failing to successfully complete mental health and sex offender treatment. 

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 was prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle 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 – Akiem Howard, age 22, of Syracuse, pled guilty yesterday to robbing two Syracuse convenience stores and brandishing and discharging handguns in furtherance of both robberies, announced United States Attorney Carla B. Freedman, John B. DeVito. Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Chief Kenton Buckner, City of Syracuse Police Department, and William Fitzpatrick, Onondaga County District Attorney.

As part of his guilty plea yesterday, Howard admitted that on December 13, 2020, and again on December 21, 2020, he robbed two convenience stores in Syracuse, NY.  During both robberies, Howard pointed handguns at store clerks. During the second robbery, Howard was accompanied by another alleged robber carrying a rifle. While fleeing the store, Howard fired several rounds from his handgun at the store clerk.  One of the bullets struck the other alleged robber in the leg. The other alleged robber’s case is pending, and she is presumed innocent unless or until proven guilty. As part of his guilty plea yesterday, Howard also admitted to committing three other armed robberies in Syracuse on December 19, 2020.

Sentencing is scheduled for July 6, 2022, before the Hon. Thomas J. McAvoy in Binghamton, New York, at which time Howard faces a minimum term of imprisonment of 17 years, a maximum term of life, a fine of up to $250,000, and a term of supervised release of up to 5 years.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.                          

This case was investigated by the Syracuse Police Department’s Criminal Investigations Division (CID), the SPD Intelligence Section (Intel), the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Onondaga County District Attorney’s Office, and the United States Marshals Fugitive Task Force, and is being prosecuted as part of Project Safe Neighborhoods (PSN) by Assistant U.S. Attorney Thomas Sutcliffe.

Project Safe Neighborhoods (PSN) is 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 – Daniel Quintero, age 36, of Schenectady, New York, was arrested and charged today with receiving child pornography.

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 complaint, Quintero used the Internet to access, view and download images and videos of child pornography. 

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

Quintero appeared today before United States Magistrate Judge Christian F. Hummel, and was detained pending further proceedings.  If convicted on this charge, Quintero faces a minimum 5 years and up to 20 years in prison, a maximum $250,000 fine, 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 is being investigated by the FBI and its Child Exploitation Task Force, which includes Investigators from the New York State Police and Colonie Police Department, and is being prosecuted by Assistant U.S. Attorney Rachel Williams.

This case is being prosecuted 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.

BINGHAMTON, NEW YORK - Nezir “Nick” Boljevic, 57, of Broome County, New York, waived indictment and pled guilty today in federal court in Binghamton 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 pleading guilty, 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.

Sentencing is scheduled for July 6,2022. If the Court accepts the parties’ plea agreement, the defendant will receive a sentence of 1 year and 1 day in prison and will pay $322,516.51 in restitution to the IRS.

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 - Timothy Schleede, age 30, of Lake Katrine, New York, was sentenced today to serve 70 months in prison for distributing fentanyl in Ulster County.

The announcement was made by United States Attorney Carla B. Freedman; Acting Special Agent in Charge Timothy Foley of the U.S. Drug Enforcement Administration (DEA), New York Division; Ulster County Sheriff Juan Figueroa, whose office leads the Ulster Regional Gang Enforcement Narcotics Team (URGENT); and Ulster County District Attorney David Clegg.

As part of his guilty plea, Schleede admitted that on August 26, 2020, he distributed a fentanyl mixture in glassine envelopes to another person in a mall parking lot in Ulster, New York.  Schleede was arrested later the same day after selling more glassine envelopes containing the same fentanyl mixture in a hotel parking lot in Ulster.  Law enforcement searched Schleede’s hotel room and storage locker, and recovered approximately 8,000 additional glassine envelopes, which contained fentanyl and heroin

United States District Judge Mae A. D’Agostino also imposed a 4-year term of supervised release, which will start after Schleede is released from prison

This case was investigated by URGENT and the DEA, with assistance provided by the Ulster County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.

SYRACUSE, NEW YORK – Kamar L. Boatman, 36, of Syracuse was sentenced today to serve 60 months (five years) in federal prison for possessing firearms and ammunition as a convicted felon, announced United States Attorney Carla B. Freedman, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Chief Kenton Buckner, Syracuse Police Department. Boatman was also sentenced to a 3-year term of supervised release following his prison sentence.

As part of his previous guilty plea, Boatman admitted that he possessed at his residence in Syracuse the following firearms and ammunition recovered by the Syracuse Police Department-Special Investigations Division (SPD-SID) during the execution of a search warrant on May 31, 2018:

Firearms 

One (1) Ruger pistol, model P89DC, caliber 9mm

One (1) Hi Point rifle, model 4595, .45 ACP caliber rifle,

One (1) Smith and Wesson rifle, model M&P15 .556 caliber rifle,

One (1) Defense Procurement Manufacturing Services model A15, Multi Caliber rifle (stolen)

Ammunition

Twenty-six (26) rounds of .223 caliber ammunition

Six (6) rounds of 9mm caliber ammunition

Eight (8) rounds of .45 caliber ammunition

As part of his previous guilty plea, Boatman also admitted that he was previously convicted of possession with intent to distribute cocaine (a felony) in United States District Court for the Northern District of New York, and was sentenced on May 7, 2010, to serve 48 months in federal prison. Today’s sentencing was Boatman’s fifth felony 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.

This case was investigated by the Syracuse Police Department-Special Investigations Division (SPD-SID) and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and was prosecuted by Assistant U.S. Attorney Richard Southwick as 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.

SYRACUSE, NEW YORK – Dean Whittles, 61, formerly of Syracuse, New York, waived indictment and pled guilty yesterday in federal court in Utica 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.

From 2016 through 2019, Whittles was the sole owner of multiple businesses in and around Syracuse, New York:  DJ’s on the Hill and DJ’s on the Boulevard; the 317 Corporation (restaurant); and Dejon’s Hair Design, with salons in Cicero, Westvale and Skaneateles. Whittles no longer owns or operates any of the businesses at issue and recently moved to Tucson, Arizona.

In pleading guilty yesterday, Whittles admitted that he failed to make payroll tax payments to the government with respect to his employees, including for Social Security and Medicare taxes, even though he withheld such taxes from his employees’ paychecks. Instead, he used the money withheld from employees to pay for business and personal expenses. In total, Whittles failed to pay approximately $617,843 in payroll taxes to the Internal Revenue Service between 2016 and 2019. As part of his plea agreement, Whittles agreed to repay $617,843 to the IRS.

The charge to which Whittles pled guilty yesterday carries a maximum sentence of five years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Whittles will be sentenced on June 22, 2022 by United States District Judge David N. Hurd.

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 – Sean Eckrote, age 38, of Granville, New York, was sentenced today to 192 months in prison for possessing and distributing child pornography.

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).

Eckrote pled guilty on June 3, 2021, admitting to possessing and distributing images and videos of child pornography to members of a private chat group. Eckrote admitted that he distributed child pornography to others in exchange for other child pornography, and to gain acceptance within the private chat group. Eckrote also admitted to possessing additional images and videos of child pornography on his cell phone, including depictions involving the sexual abuse and exploitation of toddlers.

Chief United States District Judge Glenn T. Suddaby also imposed a 30-year term of supervised release, which will begin after Eckrote is released from prison. Eckrote will also be required to register as a sex offender.

The case was investigated by the FBI and its Child Exploitation Task Force, which includes members of the New York State Police, and Homeland Security Investigations, and was prosecuted by Assistant U.S. Attorney Ashlyn Miranda 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/.

ALBANY, NEW YORK – Two New York State prison inmates pled guilty today to conspiring with others to defraud pandemic-related unemployment insurance programs administered by the New York State Department of Labor (NYSDOL).

Reginald Thornton, age 29, pled guilty to conspiracy to commit mail fraud and aggravated identity theft. He admitted to conspiring with others to file unemployment insurance claims in his own name and in the names of other inmates, even though they were incarcerated by New York State at the Bare Hill Correctional Facility in Malone, New York. Inmates were not eligible to receive unemployment insurance benefits.

Lord Paulin, age 41, pled guilty to conspiracy to commit mail fraud and admitted to conspiring with Thornton and another person to file a false unemployment insurance claim in his own name while he was also incarcerated at Bare Hill.

The announcement was made by United States Attorney Carla B. Freedman; Jonathan Mellone, Special Agent in Charge, New York Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG); 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); Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision (NYSDOCCS); and Roberta Reardon, Commissioner of NYSDOL.

Thornton agreed to pay restitution in the amount of $31,276 to the State of New York. Paulin agreed to restitution in the amount of $10,004.

The mail fraud convictions carry maximum terms of 20 years in prison, fines of up to $250,000, and terms of supervised release of up to 3 years. Thornton’s identity theft conviction carries a mandatory term of 2 years in prison, to be imposed consecutively to any other term of imprisonment. Thornton and Paulin are scheduled to be sentenced on June 30, 2022 by Chief United States District Judge Glenn T. Suddaby. 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.

These cases were investigated by USDOL-OIG, HSI, USPIS, and the Offices of Special Investigations of NYSDOCCS and NYSDOL. The cases are being prosecuted by Assistant U.S. Attorneys John T. Chisholm and Joshua R. Rosenthal.

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 – Sean M. Andre, age 32, of Brooklyn, New York, was sentenced today to 30 months in prison for conspiring with an Ulster County man to fraudulently obtain more than $5.6 million in government-backed loans meant for businesses struggling with the financial effects of the coronavirus pandemic.

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).

Chief United States District Judge Glenn T. Suddaby also imposed a 2-year term of supervised release, ordered Andre to pay $1,309,754 in restitution to his victims, and ordered Andre to forfeit $32,900 in U.S. currency, the balances of six bank accounts totaling $365,613.09, and a 2019 Mercedes Benz GLS, all previously seized by the FBI. 

Andre pled guilty last May to conspiring to commit bank fraud and conspiring to commit wire fraud.  He admitted to helping Jean R. Lavanture obtain $4,309,581 in Paycheck Protection Program (PPP) loans between June and August 2020, by submitting fraudulent loan applications in the names of four companies that Lavanture controlled.  Each loan application misrepresented the number of employees, and total payroll, that each company had, and included false tax documents that Andre created as part of the scheme.  Andre was paid $157,578 for his role in the scheme.

Andre also admitted that he fraudulently obtained an additional $1,309,754 in pandemic relief loans, by submitting loan applications in the names of companies he controlled.  In these loan applications, Andre lied about the number of employees, and total payroll, that his companies had.

Andre was a Special Inspector for the Metropolitan Transportation Authority (MTA), in New York City, at the time of his crimes.

Lavanture, age 49, of Saugerties, New York, was sentenced last month to 60 months in prison. 

This case was investigated by the FBI, as well as Internal Revenue Service (IRS)-Criminal Investigation and the Small Business Administration, Office of Inspector General (SBA-OIG), and was prosecuted by Assistant U.S. Attorneys Michael Barnett and Joshua R. Rosenthal.

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 – Kahleke Taylor, age 21, of Albany; Taquan Parker, age 25, of Snellville, Georgia, and formerly of Albany; and Olajuwon Sutherland, age 26, of Troy, New York, were indicted earlier this month for engaging in a fraudulent scheme to obtain more than $100,000 in unemployment insurance benefits. The alleged false claims exploited federal programs intended to aid out-of-work New Yorkers during the COVID-19 pandemic.

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

The indictment alleges that Parker and Sutherland provided Taylor with the personal identifying information of other people, which Taylor used to file false claims via the New York State Department of Labor (NYSDOL) website.  NYSDOL ultimately paid more than $100,000 in benefits. The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.

Taylor appeared last week before United States Magistrate Judge Daniel J. Stewart and was ordered detained after he waived a detention hearing.  Parker appeared last week in the United States District Court for the Northern District of Georgia, was released with conditions, and is scheduled to first appear before Judge Stewart on March 10.  Sutherland appeared today before Judge Stewart, who ordered Sutherland detained pending a detention hearing scheduled for tomorrow.

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 is being investigated by HSI, the New York State Inspector General’s Office, USDOL-OIG, and USPIS, with assistance from the NYSDOL Office of Special Investigations and the Schenectady County Department of Social Services, and 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.

ALBANY, NEW YORK – TriMark USA, LLC of Mansfield, Massachusetts, has agreed to pay $48.5 million to resolve allegations that its subsidiaries, TriMark Gill Marketing and Gill Group, Inc. (collectively, TriMark), improperly manipulated federal small business set-aside contracts around the country, announced Carla B. Freedman, the United States Attorney for the Northern District of New York, and Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington.  A former TriMark executive in charge of the company’s government business, Kimberley Rimsza of Phoenix, Arizona, has agreed to pay an additional $100,000 as an individual civil penalty for her conduct in connection with the scheme.  The settlement constitutes the largest-ever False Claims Act recovery based on allegations of small business contracting fraud.

“TriMark and one of its former top executives are paying a steep price for obtaining contracts intended for service-disabled veterans,” said United States Attorney Freedman.  “This settlement demonstrates the federal government’s commitment to ensuring the integrity of its business partners, and the serious consequences for depriving legitimate small businesses of the opportunities that the government has allocated to them.”

Federal government contracts may be reserved, or “set aside,” for various categories of small businesses, such that only eligible small businesses in a particular socioeconomic category are eligible to bid on, receive, and perform the contracts.  One such category is a service-disabled, veteran-owned small business (SDVOSB), which is reserved for small businesses owned, controlled, and operated by veterans of the United States military who incurred a disability in the course of their military service to the United States.  

TriMark provides kitchen and food service equipment to government customers around the world, including in the Northern District of New York and the Eastern District of Washington.  As part of the Settlement Agreement, TriMark and Rimsza admitted to and accepted responsibility for their conduct in connection with set-aside contracts that, because of their actions, resulted in federal agencies improperly awarding government set-aside contracts between 2011 and 2021 to three small businesses with which TriMark worked, identified in the Settlement Agreement as “Company 1,” “Company 2,” and “Company 3” (the “small businesses”).  

TriMark and Rimsza admitted that their conduct caused federal agencies to award set-aside contracts to the small businesses in violation of federal regulations designed to encourage contract awards to legitimate small businesses and SDVOSBs.  TriMark and Rimsza further admitted that when set-aside contracts were awarded by federal agencies to the small businesses, it was typically TriMark Gill Marketing, rather than the small business, that performed substantially all the work, while the small business merely served as the face of the contract, billing the government for the work, and using its small business status to obtain the set-aside contracts. 

As part of the Settlement Agreement, TriMark admitted that TriMark Gill Marketing identified federal set-aside contract opportunities for the small businesses to bid on using their set-aside status; instructed them regarding how to prepare their bids and what prices to propose; “ghostwrote” emails for those companies to send to government officials to make it appear as though the small businesses were performing work that TriMark Gill Marketing was performing; and affirmatively concealed TriMark Gill Marketing’s involvement in the contract.  TriMark and Rimsza further admitted that one of the small businesses expressed concern more than a decade ago that their business arrangement violated the law and would subject both companies to liability under the False Claims Act, after which a TriMark Gill Marketing official responded that she had spoken with Rimsza about the concerns, and told the individual to “calm down and enjoy your weekend.” 

With regard to one of the small businesses, TriMark admitted that certain TriMark Gill Marketing employees had access to and used that company’s email accounts in order to conduct business with the government on behalf of the small business; that TriMark Gill Marketing assisted it in obtaining federal contracts to supply goods that, in reality, TriMark Gill Marketing was providing; that at least one TriMark Gill Marketing employee posed as a representative of the small business when communicating with the government; that TriMark Gill Marketing allowed the small business to use its office space and equipment; and that TriMark considered the small business “an extension” and “affiliate” of TriMark. 

TriMark, which has fully cooperated in the United States’ investigation, also represented in the Settlement Agreement that it has taken “comprehensive measures and implemented enhanced controls” to prevent the recurrence of similar conduct, including personnel changes, and implementing revised compliance procedures and training programs. 

“This case demonstrates a shocking disregard for fair competition, small business rules, and integrity in government contracting,” said United States Attorney Waldref.  “We insisted that both TriMark and former company executive Kimberley Rimsza admit and accept responsibility for their conduct, which included improperly obtaining contracts that were meant for legitimate small businesses, and affirmatively concealing TriMark’s role in the sham contracts.  The fact that the money they were stealing was intended for service-disabled veterans is simply unconscionable.  Conduct of this kind is antithetical to a safe and strong Eastern Washington.”

“The Department of Veterans Affairs Office of Inspector General is committed to identifying and stopping those individuals who misappropriate an opportunity meant solely for our nation’s veterans with disabilities,” said Inspector General Michael J. Missal.  “I want to recognize Special Agent in Charge Christopher Algieri of our Northeast Field Office and Special Agent in Charge Jason Root of our Northwestern Field Office for their leadership on this investigation.  We appreciate the exhaustive efforts of our law enforcement partners and both U.S. Attorney’s Offices in this collaborative effort.”

“Investigating corrupt schemes that undermine the integrity of Department of Defense (DoD) procurement is a top priority for the DoD Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office.  “Today’s announcement demonstrates our commitment to work with the Department of Justice and our law enforcement partners to ensure that the contracting process for legitimate small businesses remains fair and competitive.”

“We will continue working with our law enforcement partners to root out small business contracting fraud,” said General Services Administration Inspector General Carol Ochoa. “I appreciate the hard work of the team on this case.”

“When contractors abuse set-aside programs and divert opportunities to themselves, they are undermining the acquisition process and taking business away from legitimate companies.  The Air Force Office of Special Investigations, our joint investigative partners, and DOJ work vigorously to protect the Department of Defense’s procurement process and ensure wrongdoers are held accountable,” said Special Agent Paul W. Wachsmuth, Air Force Office of Special Investigations Procurement Fraud Director.

“The settlement in this matter demonstrates the excellent results achieved through the combined efforts of federal agencies to uncover and forcefully respond to procurement fraud that unconscionably deprives legitimate small businesses of important procurement opportunities,” said the Small Business Administration’s General Counsel, Peggy Delinois Hamilton.  “The federal government is strongly committed to identifying and aggressively pursuing instances of fraud perpetrated by those participating in SBA’s procurement programs.  We commend the hard work of all those in law enforcement who successfully prosecuted this case.”

The case began in May 2019, when a whistleblower, a company known as Fox Unlimited Enterprises, LLP, filed a qui tam complaint under seal in the U.S. 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.  In this case, the United States intervened in the action in December 2021, and subsequently reached this settlement.  Pursuant to the Settlement Agreement, the relator will receive $10,912,500 of the settlement amount paid by TriMark. 

The settlement was the result of a joint investigation conducted by the U.S. Attorney’s Office for the Northern District of New York; the U.S. Attorney’s Office for the Eastern District of Washington; the U.S. Department of Veterans Affairs Office of Inspector General, Spokane and Buffalo Resident Agencies; the Defense Criminal Investigative Service, Syracuse Post of Duty; the General Services Administration Office of Inspector General, New York Field Investigations Office; the Department of Homeland Security Office of Inspector General, New York Field Office; the Air Force Office of Special Investigations, Procurement Fraud Detachment 6 Rome, New York; the U.S. Army Criminal Investigative Division, Syracuse Fraud Branch Office; and the Small Business Administration, Office of Inspector General, Seattle Field Office.  Assistant United States Attorneys Adam J. Katz of the Northern District of New York and Dan Fruchter and Tyler H.L. Tornabene of the Eastern District of Washington handled this matter on behalf of the United States. 

Case No. 1:19-cv-914 (N.D.N.Y.)

SYRACUSE, NEW YORK – Frank Hunter, 37, of Utica, New York, was sentenced yesterday to serve 121 months in federal prison for his role in a drug conspiracy that trafficked cocaine, fentanyl and acetyl fentanyl in Utica from July 2018 through July 2019, announced United States Attorney Carla B. Freedman, Oneida County District Attorney Scott McNamara, Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), New York State Police Superintendent Kevin P. Bruen, and Chief Mark Williams, Utica Police Department.

The multi-agency investigation began in March of 2017 and culminated in the federal arrest of Frank Hunter on July 23, 2019, following the execution of several search warrants in Utica where drugs, cash, and other evidence was seized.

In addition to his prison sentence, Frank Hunter was also sentenced to a post-incarceration term of supervised release of 5-years. The Court also directed the forfeiture of unrecovered assets Hunter acquired through the distribution of drugs consisting of a money judgment in the amount of $518,080.00.

Also forfeited by Frank Hunter were:

$3,241.57 from a credit union account

$5,266.59 from a credit union account

$6,722.07 from a credit union account

$8,226.53 from a credit union account

$4,415.24 from a credit union account

$66,060.00 in U.S. currency

$36,005.00 in U.S. currency

$4,391.00 in U.S. currency

$4,100.00 in money orders

A 2011 Ford Explorer SUV

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 New York State Police-Special Investigations Unit (NYSP-SIU),  Investigators from the Oneida County District Attorney’s Office, members of the City of Utica Police Department, and the Federal Bureau of Investigation (FBI), and was prosecuted by Assistant U.S. Attorney Andrew Beaty, Special Assistant U.S Attorney Grant Garramone, and Assistant U.S. Attorney Richard Southwick.

ALBANY, NEW YORK – Elizabeth Doyle, age 49, of Burnt Hills, New York, was sentenced today to a year of probation, and to pay restitution in the amount of $94,522 and a $7,500 fine, following her conviction on two counts of filing false tax returns.  The announcement was made by United States Attorney Carla B. Freedman and Thomas Fattorusso, Special Agent in Charge, New York Field Office, Internal Revenue Service – Criminal Investigation (IRS-CI).

Doyle’s conviction related to business income she earned through a Saratoga County company that places home health care aides in patients’ homes. In pleading guilty, Doyle admitting to filing materially false tax returns in tax years 2016 and 2017 that underreported income totaling $647,263, resulting in a loss to the government of at least $94,522.

Betty Marriot, age 71, of Gansevoort, New York, sold the home health care company to Doyle in 2016.  She also filed false tax returns, and was sentenced on October 21, 2021 to a year of probation and ordered to pay $280,413 in restitution and a $7,500 fine.

These cases were investigated by IRS-CI and prosecuted by Assistant U.S. Attorney Emily C. Powers.

SYRACUSE, NEW YORK – Simarjeet Singh, age 50, of Rochester, New York, pled guilty today to naturalization fraud for providing false identification information during efforts to avoid deportation and become a United States citizen, announced United States Attorney Carla B. Freedman and Matthew Scarpino, Acting Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office.

As part of his guilty plea, Singh admitted to filing a 1995 asylum application using a false identity and to failing to disclose that he had previously filed for asylum in 1993. Singh also admitted that in 2010, when he sought U.S. citizenship, he failed to disclose his earlier efforts to obtain asylum.

Singh faces up to 10 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. Sentencing is set for June 14, 2022, in Syracuse, before Chief United States District Judge Glenn T. Suddaby.

This case was investigated by HSI and is being prosecuted by Assistant U.S. Attorney Emily C. Powers.

SYRACUSE, NEW YORK – William L. Marshall, 40, of Ithaca, New York, pled guilty yesterday to possessing a loaded semiautomatic handgun as a prior convicted felon, and possessing marihuana with intent to distribute, announced United States Attorney Carla B. Freedman, Matthew Scarpino, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo, New York Field Office, and Acting Chief of Police John Joly, City of Ithaca Police Department.

As part of his guilty plea yesterday, Marshall admitted that he possessed a loaded Lorcin .380 mm caliber semiautomatic handgun in his Ithaca residence when it was searched by Ithaca Police on August 18, 2021, pursuant to a search warrant. The handgun was reported stolen from Norfolk, Virginia in 2014. Marshall also admitted that he was a convicted felon, having been found guilty after trial in 2002 of the New York State felony of Criminal Possession of a Controlled Substance in the First Degree in Tompkins County Court, for which he was sentenced to serve eight (8) years in prison.

Marshall also pled guilty yesterday to possessing with intent to distribute over a pound of marihuana in his apartment when it was searched by Ithaca Police. As part of his guilty plea, Marshall also agreed to forfeit $37,064.00 in cash recovered during the search warrant as proceeds of drug selling.

Sentencing is scheduled for June 8, 2022, in Binghamton, New York, at which time Marshall faces a maximum sentence of up to 10-years imprisonment, and a fine of up to $250,000.00 for his conviction for possession of a firearm by a convicted felon. For his conviction for possession of a controlled substance (marihuana) with intent to distribute, Marshall faces a maximum sentence of up to 5 years in prison, a fine of up to $250,000.00, and term of supervised release of at least 2 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 City of Ithaca Police Department and the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), with assistance from the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and is being prosecuted as part of Project Safe Neighborhoods by Assistant U.S. Attorney Richard Southwick.

Project Safe Neighborhoods (PSN) is 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 – Jamie Johnson, age 36, of Albany, pled guilty today to conspiring to commit mail fraud and aggravated identity theft. Johnson admitted to filing false unemployment insurance applications online with the New York State Department of Labor (NYSDOL) in order to fraudulently obtain $701,441 in benefits issued in the names of other people.

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).   

United States Attorney Carla B. Freedman stated: “Jamie Johnson used stolen identities to cheat a system designed to help unemployed New Yorkers as the pandemic raged in 2020 and 2021.  Johnson’s crimes ultimately did not pay – she is going to prison and she has forfeited hundreds of thousands of dollars in ill-gotten gains.  Johnson’s prosecution is the result of a multi-agency initiative to pursue, stop and deter fraudsters who try to steal public funds and undermine the integrity of the unemployment insurance program.”

New York State Inspector General Lucy Lang stated: “Unemployment insurance fraud undermines the integrity of a vital government safety net, can affect victims’ ability to file legitimate claims, and puts additional strain on already struggling New York State families. Our office is grateful for the collaboration with our federal partners in working to protect vulnerable community members and good government.”

HSI Acting Special Agent in Charge Matthew Scarpino stated: “Jamie Johnson displayed a complete disregard for the law and a system designed to assist those struggling. I commend our agents and law enforcement partners on a job well done—HSI will continue to find and hold accountable those who defraud the U.S. programs designed to assist individuals in need.”

In pleading guilty, Johnson admitted to receiving personal identifying information from other people and using it to file false unemployment insurance applications in other people’s names. She then collected the resulting unemployment insurance benefits, including by driving a Maserati sport utility vehicle to Capital Region banks and withdrawing cash using debit cards tied to the benefits. The Maserati, over $200,000 in cash, and multiple jewelry items are subject to administrative forfeiture pursuant to the plea agreement.

Johnson also agreed to pay restitution in the amount of $701,441 to the State of New York.

The mail 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. The identity theft conviction carries a mandatory term of 2 years in prison, to be imposed consecutive to any other term of imprisonment. Johnson is scheduled to be sentenced on June 22, 2022 by Senior United States District Judge Lawrence E. Kahn. 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.

USPIS Inspector in Charge Ketty Larco-Ward stated: “The U.S. Postal Inspection Service is firmly committed to investigating individuals like Johnson who take advantage of programs designed to support individuals during times of hardship.  The U.S. Postal Service has proven to be an essential service that our customers rely on, especially throughout this pandemic.  We will continue to work hard to prevent any criminal misuse of the U.S. Mail and work with our law enforcement partners to put a stop to complex fraud schemes such as this.”

USDOL-OIG Special Agent in Charge Jonathan Mellone stated: “Jamie Johnson used the identities of others to fraudulently obtain over $700,000 in unemployment benefits. The Unemployment Insurance Program exists to provide needed assistance to qualified individuals who are unemployed due to no fault of their own.  Fraud against the Unemployment Insurance Program distracts state workforce agencies from ensuring benefits go to individuals who are eligible to receive them. The Office of Inspector General will continue to work closely with our law enforcement partners to investigate those who exploit the Unemployment Insurance Program.”

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, the Albany County Department of Social Services, and the United States Marshals Service.  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.

BINGHAMTON, NEW YORK – Daniel Day, age 35, of Argyle, New York, pled guilty today to unlawful possession of destructive devices, and to the unlawful possession of other firearms and ammunition as a felon.

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).

Day has a prior felony conviction for unlawfully possessing a firearm as a user of a controlled substance.  In pleading guilty today, he admitted to possessing the component parts necessary to readily assemble and create three homemade, improvised explosive devices at his residence in Argyle on August 5, 2021. Day also admitted to possessing other firearms and ammunition at his residence, including a submachinegun, a sawed-off shotgun, and a 3D-printed pistol without a serial number. None of the firearms were registered to Day as required by federal law. As part of his plea agreement, Day agreed to abandon all the bomb-making materials and chemicals, firearms, firearm parts and ammunition found at his residence.

Sentencing is scheduled for June 14, 2022, before Senior United States District Judge Thomas J. McAvoy in Albany, New York, at which time Day faces up to 10 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.

This case was investigated by the FBI’s Joint Terrorism Task Force (JTTF), which includes members of the FBI and New York State Police, and is being prosecuted by Assistant U.S. Attorneys Alexander Wentworth-Ping and Richard Belliss.

SYRACUSE, NEW YORK – Brian T. Whipple, age 42, of New Berlin, New York pled guilty today to receipt and possession of child pornography. The announcement was made by United States Attorney Carla B. Freedman, Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations, and New York State Police Superintendent Kevin P. Bruen.

According to the offer of proof filed by the government and admitted to by Whipple during his change of plea hearing, he used peer-to-peer file sharing programs from 2009 through 2020 to knowingly receive child pornography images and videos. When Whipple was arrested in June 2020, he had over 5,000 child pornography files (images and videos) on DVDs, a thumb drive, and his cellular telephone.

At sentencing scheduled for June 14, 2022, Whipple faces a mandatory minimum term of imprisonment of five years and a maximum term of 20 years for the receipt offense. He faces a maximum sentence of 20 years’ imprisonment for each of the three counts of possession of child pornography to which he pled guilty. In addition to imprisonment, Whipple can be fined up to $250,000 per count, will be required to pay restitution to the victims of his child pornography receipt and possession offenses, and will be required to serve a term of supervised release after imprisonment of between five years and life. Whipple also will have to register as sex offender upon his release. A defendant’s sentence is imposed by a judge based on the statutes the defendant violated, the U.S. Sentencing Guidelines, and other factors.

This case was investigated by Homeland Security Investigations in cooperation with the New York State Police and the Chenango County District Attorney’s Office. It is being 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.

BINGHAMTON, NEW YORK – Shameek Halls, age 31, of Tompkins County, New York, was sentenced yesterday to 20 years in federal prison for his convictions for trafficking crack cocaine, heroin and fentanyl, and possessing firearms in furtherance of a drug trafficking crime, 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).

Halls was also ordered to forfeit ownership of the currency, ammunition and firearms seized during this case and, also, serve a 5-year term of supervised release following his prison sentence. 

As part of his guilty plea, Halls admitted that he was responsible for selling crack cocaine, heroin and fentanyl on numerous occasions in Broome County in New York’s Southern Tier from 2018 through 2019. Further, on November 14, 2019, the Federal Bureau of Investigation (FBI) and their partner agencies seized  three handguns, an AR-15 style weapon and ammunition from Halls. As part of his guilty plea, Halls admitted that he possessed firearms in furtherance of his drug trafficking crimes. 

This case was investigated by the Federal Bureau of Investigation (FBI), the Broome County Special Investigations Unit Task Force (BCSIUTF), comprised of the Broome County Sheriff’s Office, Binghamton Police Department, Johnson City Police Department and Endicott Police Department, as well as by the New York State Police Violent Gang Narcotic Enforcement Team (VGNET) and the New York State Police Special Investigation Unit (SIU), and was prosecuted by Assistant U.S. Attorney Kristen Grabowski. 

ALBANY, NEW YORK – Shawn Pondillo, age 26, of Rensselaer, New York, pled guilty today to distributing fentanyl. 

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

As part of his guilty plea, Pondillo admitted that he sold a quantity of “M 30” blue pills containing a mixture of fentanyl to another person on March 1, 2021 in Rensselaer County.     

As a result of his conviction, Pondillo faces a maximum sentence of up to 20 years in prison, when he is sentenced by Chief United States District Judge Glenn T. Suddaby on June 9, 2022.  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 DEA and the Rensselaer Police Department, and is being prosecuted by Assistant U.S. Attorney Rachel Williams. 

ALBANY, NEW YORK – Shamel Chung, age 35, of Bayside, New York, pled guilty today to unlawful possession of a firearm by a felon and possession of a firearm with an obliterated serial number, announced 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).

Chung admitted to possessing a firearm he knew had an obliterated serial and to hiding the firearm under a vehicle in an alleyway in Troy, New York, after being involved in a physical altercation nearby. Chung had been convicted of four felonies previously, all of which involved controlled substance offenses, and was on parole at the time he possessed the firearm.

At sentencing, Chung faces up to 10 years in prison, a 3-year term of post-release supervision, 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.

This case was investigated by the ATF and the Troy Police Department, and is being prosecuted by Assistant U.S. Attorneys Rachel Williams and Dustin Segovia

SYRACUSE, NEW YORK – Kevin Couture, a/k/a “travelsizepocket,” 40, of Chicago, Illinois, appeared yesterday in federal court on a charge that he attempted to entice 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, Couture exchanged weeks of sexually explicit messages with undercover law enforcement officers posing as the child, who Couture believed to be 9 years old, and the child’s mother.  Before his arrest yesterday, Couture travelled from his home in Chicago, Illinois to Oneida County, New York with gifts for the child with whom Couture intended to engage in sexual activity upon his arrival. 

The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.  If convicted, Couture 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.  Additionally, if convicted, Couture would be required to register as a sex offender.

Couture appeared today before United States Magistrate Judge Thérèse Wiley Dancks, who ordered Couture 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 Special 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.

ALBANY, NEW YORK – James Workman, age 33, of Conquest, New York, was sentenced today to 27 months in prison for unlawful possession of a firearm and ammunition as a felon. 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); Darren Miller, Deputy Commissioner and Chief of the Office of Special Investigation for the New York State Department of Corrections and Community Supervision (DOCCS); and Cayuga County Sheriff Brian Schenck.

As part of his guilty plea, Workman, who has prior felony convictions for arson and burglary offenses, admitted that he possessed a .30-06 caliber rifle and ammunition. and discharged the rifle at his residence in Conquest on October 6, 2020.

Chief United States District Judge Glenn T. Suddaby also imposed a 3-year term of supervised release, which will start after Workman is released from prison. Workman was also sentenced to 15 months in prison for violating his parole in New York State based on the same conduct; those 15 months in state prison will not be credited toward his federal term of imprisonment.

This case was investigated by the FBI, DOCCS, and the Cayuga County Sheriff’s Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Immigration and Customs Enforcement (ICE). The case was prosecuted by Assistant U.S. Attorneys Richard Belliss and Alexander Wentworth-Ping.

This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.  Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.  For more information about Project Guardian, please see https://www.justice.gov/ag/project-guardian-memo-2019/download

ALBANY, NEW YORK – Matthan Carroll, age 36, of Albany, pled guilty today to distribution of methamphetamine, making fake government identification documents, using others’ identification information to open a U.S. Post Office Box, and aggravated identity theft.

The announcement was made by United States Attorney Carla B. Freedman; Matthew Scarpino, Acting Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office; and Ketty Larco-Ward, Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service (USPIS).

Carroll admitted to selling a total of 277.41 grams of methamphetamine and sending a portion of that methamphetamine through the U.S. mail. Carroll also admitted to opening a Clifton Park P.O. Box—using other people’s personally identifying information without their permission—in order to receive mailed shipments of methamphetamine. He also admitted to making two fake government identification documents, one of which used another person’s personally identifying information without that person’s permission, bearing Carroll’s photograph.

Carroll faces a minimum sentence of 10 years in prison, a maximum sentence of life, and a fine of up to $10 million.  The aggravated identity theft conviction carries a mandatory two-year term of imprisonment to be imposed consecutive to any other term of imprisonment.  The defendant also faces 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. Sentencing is set for June 9, 2022, in Albany, before Chief United States District Judge Glenn T. Suddaby.

This case was investigated by HSI and USPIS, with the assistance of the Federal Bureau of Investigation and the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Emily C. Powers.