Northern District of New York

ALBANY, NEW YORK – John R. Paeglow III, age 64, of Troy, New York, pled guilty today to defrauding a commercial finance company.  The company paid more than $400,000 to Paeglow’s book printing business for the right to collect payment for the sales of books that, in fact, had not been sold nor shipped.

The announcement was made by Acting United States Attorney Antoinette T. Bacon and Jonathan Mellone, Special Agent in Charge, New York Region, United States Department of Labor, Office of Inspector General (DoL-OIG).

As part of his guilty plea to 10 counts of wire fraud, Paeglow admitted that, between October and December 2014, he fraudulently solicited and received more than $400,000 on behalf of his now-closed Castleton, New York-based book printing business Integrated Book Technology, Inc./Hamilton Printing (“IBT/Hamilton”).  Paeglow caused the submission of fraudulent invoices and forged shipping documents to a New Jersey-based commercial finance company, which paid him money on the basis of book sales and shipments that Paeglow falsified. 

As part of his plea agreement, Paeglow agreed to pay full restitution to the victim finance company.  Paeglow also agreed to pay $11,410 in restitution to reimburse the union that represented the IBT/Hamilton employees whose health care premiums Paeglow was charged with embezzling.

Sentencing is scheduled for December 9, 2021, in Albany, before Senior United States District Judge Frederick J. Scullin, Jr.  Paeglow faces a maximum sentence of 20 years in prison, a fine of up to the greater of $250,000 or twice the pecuniary gain to the defendant or the loss to any victim, 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 jointly investigated by the U.S. DoL-OIG and the New York State Police Financial Crimes Unit, and is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.

ALBANY, NEW YORK – Peter Mami, age 43, of Orange County, New York, pled guilty today to possessing and intending to distribute more than 500 grams of cocaine.  The announcement was made by Acting United States Attorney Antoinette T. Bacon and Ray Donovan, Special Agent in Charge, United States Drug Enforcement Administration (DEA), New York Division.

As part of his guilty plea, Mami admitted that on March 2, 2020, he and his co-defendant possessed with the intent to distribute approximately two kilograms of cocaine.

Mami faces at least 5 years and up to 40 years in prison, a fine of up to $5 million, and a term of supervised release of at least 4 years and up to life, when Chief United States District Judge Glenn T. Suddaby sentences him on January 6, 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 is being prosecuted by Assistant U.S. Attorneys Ashlyn Miranda and Joshua R. Rosenthal.

ALBANY, NEW YORK – Jonathan L. Morgan, age 32, of Gloversville, New York, was sentenced today to 180 months in prison for distributing and possessing child pornography. 

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

In previously pleading guilty, Morgan admitted that he distributed videos depicting the sexual exploitation of children via a phone-based application connected to the Internet, from March 11 to March 12, 2020.  He also admitted to possessing child pornography on two phones.  Additionally, Morgan sought out videos of parents abusing their children, and provided detailed instructions to an undercover law enforcement officer (posing as a parent) as to how to abuse her daughter while filming it; smashed and tried to destroy one of his phones upon being approached by law enforcement; and admitted to inappropriately touching a child on several occasions.

Chief United States District Judge Glenn T. Suddaby also imposed a 15-year term of post-imprisonment supervised release.  Additionally, Morgan will be required to register as a sex offender upon his release from prison.

The case was investigated by the FBI and its Child Exploitation Task Force, and was prosecuted by Assistant U.S. Attorney Michael Barnett.

This case was 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), 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 – Sarah R. Gates, age 40, of Cortland, New York, was sentenced yesterday to serve 540 months (45 years) in prison for conspiring and acting together with co-defendant Christopher Perry to sexually exploit a child under five years of age for the purpose of producing images of the abuse. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).

As part of her prior guilty plea to a three-count Information, Gates admitted that on several occasions in 2017, she and Perry performed sexual acts on the child while taking photographs of the abuse, using two cell phones.

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

Perry previously pled guilty to the same offenses and was sentenced, on November 3, 2020, to 540 months (45 years) in prison. 

The case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), the City of Cortland Police Department, and the New York State Police-Computer Crimes Unit, and prosecuted by Assistant U.S. Attorney Sahar L. Amandolare and Special Assistant U.S. 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 – Michael Kurtz, age 57, of Albany, pled guilty today to charges of distribution and possession of child pornography.  The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI). 

In pleading guilty before United States District Judge Mae A. D’Agostino, Kurtz admitted that between September 29, 2018 and at least January 12, 2019, he used a peer-to-peer file sharing software program installed on his computer to distribute approximately 28 videos of child pornography from his home in Albany.  Kurtz also admitted to possessing over 200 images of child pornography on his home computer at the time of his arrest on March 18, 2019.

Kurtz faces at least 5 years and up to 20 years in prison, as well as a term of supervised release of between 5 years and life.  His sentencing is scheduled for December 28, 2021 in Albany.  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.  Upon his release from prison, Kurtz will also be required to register as a sex offender in any state where he lives, is employed, or is a student. 

This case was investigated by the FBI and its Child Exploitation Task Force, including investigators from the New York State Police Computer Crimes Unit, and is being prosecuted by Assistant U.S. Attorneys Ashlyn Miranda and Rachel Williams. 

This case is 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

SYRACUSE, NEW YORK – Robert Hardin, age 75, of Michigan, was charged today with interstate travel with the intent to engage in sexual conduct with a minor.  The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

The criminal complaint alleges that during July and August 2021, Hardin communicated through a social media application with an undercover officer posing as a mother who was willing to make her 10-year-old daughter available for a sexual encounter.  It further alleges that on August 24, 2021 Hardin drove from his home in Michigan to a location near Binghamton, New York, with the intent to engage in sexual conduct with the child.  Upon his arrival at the location, Hardin was arrested. The charge in the complaint is merely an accusation.  The defendant is presumed innocent unless and until proven guilty. 

Hardin appeared today before United States Magistrate Judge Miroslav Lovric and was ordered detained pending a hearing on August 27. 

If convicted of this offense, Hardin faces up to 30 years in prison, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Hardin would also have to register as a sex offender upon his release from prison.

This case is being investigated by the FBI Syracuse Mid-State Child Exploitation Task Force.  This task force is comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI).  The case is being prosecuted by Special Assistant U.S. Attorney Adrian LaRochelle as part of Project Safe Childhood.

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

SYRACUSE, NEW YORK – Quayshaun Mitchell, age 28, of Syracuse, was sentenced today to serve 6 months of home detention, to be followed by 3 years of supervised release, for helping another person steal mail from United States Postal Service (USPS) collection boxes.

The announcement was made by Acting United States Attorney Antoinette T. Bacon; Joshua McCallister, Acting Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service; and Matthew Modafferi, Special Agent in Charge of the USPS Office of Inspector General-Northeast Region. 

Mitchell was also ordered to perform 150 hours of community service. 

On February 25, 2021, Mitchell pled guilty to one count of possession with the intent to unlawfully use a USPS key, and one count of aiding and abetting the theft of mail.

As part of his guilty plea, Mitchell admitted that on March 5, 2020, he provided a USPS arrow key to his co-defendant Kevin Williams so that Williams could open USPS blue collection boxes in Liverpool, New York, and steal mail from the boxes.  Mitchell also admitted that he gave Williams a USPS letter carrier uniform jacket and mail satchel to wear so that Williams would look like a USPS employee as he improperly accessed the collection boxes. Williams stole mail contained in the USPS blue collection boxes, including 49 pieces of first-class mail with checks totaling $67,883.91. 

Williams also pled guilty to one count of possession with the intent to unlawfully use a USPS key and one count of theft of mail.  Williams was sentenced on May 12, 2021 to serve 6 months of home detention, followed by 3 years of supervised release, and ordered to perform 120 hours of community service.

This case was investigated by the United States Postal Inspection Service (USPIS) and the United States Postal Service-Office of Inspector General (USPS-OIG), and was prosecuted by Assistant U.S. Attorney Tamara Thomson.

SYRACUSE, NEW YORK – William D. Wood, Jr. pled guilty today to federal charges related to the September 2018 robbery and murders he committed at the Chili’s Grill and Bar in Dewitt, New York, announced Acting United States Attorney Antoinette T. Bacon and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

Wood, age 35, of Syracuse, entered guilty pleas to three federal felonies: one count of robbery and two counts of using a firearm in furtherance of a crime of violence and murder.  He admitted that in September 2018, he planned and carried out an armed robbery of the Chili’s in Dewitt, and that during the commission of the robbery he directly caused the deaths of two people by use of a firearm. 

Wood further admitted that during the early morning hours of September 15, 2018, armed with a loaded handgun, he forced his way into the back door of Chili’s, where four employees remained to close the restaurant.  Wood admitted that he held all four employees on the ground at gunpoint, and after obtaining the available cash from the restaurant’s safe, shot and killed Stephen Gudknecht and Kristopher Hicks.  Wood admitted that his gun malfunctioned as he attempted to shoot another employee, allowing time for that employee and a fourth employee to hide and flee from Wood.   

Wood’s sentencing is scheduled for December 29, 2021 before Senior United States District Judge Thomas J. McAvoy in Binghamton, New York.   He faces maximum sentences of 20 years on the robbery conviction, and life on each of the two firearms offenses.  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; however, by statute, the sentences imposed on each count of conviction in this case must run consecutively to one another.  

Wood was previously sentenced in Onondaga County Court to life without parole following his plea of guilty to related state crimes, including two counts of Murder in the First Degree.  Wood will serve his state sentence first, and if ever released by New York State, he would be surrendered to federal custody to serve any undischarged portion of his federal term of imprisonment.   

This case was investigated by the ATF, the Town of Dewitt Police Department, and the New York State Police, and is being prosecuted by Assistant U.S. Attorneys Lisa M. Fletcher and Michael D. Gadarian.

ALBANY, NEW YORK – Derek R. Schwartz, age 52, of Coppell, Texas, was indicted yesterday and accused of conspiring with ValueWise CEO Michael T. Mann to defraud companies that loaned millions of dollars to ValueWise subsidiaries. 

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

Schwartz was charged with conspiring to commit wire fraud, along with four counts of wire fraud, and will be arraigned at a later date.  The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.

According to the indictment, Mann obtained millions of dollars in loans from two financing companies, located in New York and Colorado, by falsifying his companies’ receivables.  Mann falsely told the financing companies that Minnesota-based UnitedHealth Group Incorporated (“UHG”), and its subsidiary OptumInsight Inc. (“Optum”), owed millions of dollars to his companies.  Mann routinely created fake invoices reflecting the fictitious debt and assigned them to the financing companies as collateral for loans.

Schwartz was a high-level executive at Optum, and then began working for ValueWise in about October 2013.  Until about August 2016, he operated TrueHR, LLC, a ValueWise subsidiary based in Dallas, Texas.

According to the indictment, in or about October 2013, Schwartz recruited a UHG/Optum employee, Luke Steiner, to falsely represent to the financing companies that the fake invoices created by Mann were valid and payable by Optum.  With Schwartz’s encouragement and direction, Steiner regularly made these false verifications for six years, ending in August 2019.

Schwartz also allegedly took other actions in furtherance of the fraudulent scheme, including, according to the indictment:

• In 2014 and 2015, he recruited at least two other UHG/Optum employees to verify false invoices that Mann submitted to one of the financing companies.
   
• From 2014 through 2019, he made misrepresentations directly to one of Mann’s lenders, identified in the indictment as “Financing Company-2.”  Mann falsely represented to Financing Company-2 that one of his companies, Weitz & Associates, needed loans in order to pay its vendors.  As part of its due diligence process, Financing Company-2 verified, with Weitz’ purported vendors, that they were receiving payments from Weitz.  One such purported vendor was TrueHR, a ValueWise company operated by Schwartz.  In fact, TrueHR was not a Weitz vendor, and Schwartz regularly lied to Financing Company-2 about TrueHR receiving payments from Weitz – and continued to do so even after TrueHR ceased to exist as a company.
   
• Schwartz worked with Mann to fabricate Weitz vendors.  Mann told Financing Company-2 that, in additional to TrueHR, Weitz had a number of other vendors.  Mann, with Schwartz’ help, fabricated the names and contact information of non-existent people working at fake Weitz vendors.

If convicted of any of the charges in the indictment, Schwartz faces up to 20 years in prison, and up to 3 years of post-imprisonment supervised release.  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.

Mann pled guilty to various crimes in connection with his fraudulent scheme, and was sentenced earlier this month to 144 months in prison.  Steiner, age 33, of Minneapolis, Minnesota, pled guilty in February 2020 to conspiring with Mann, and is pending sentencing.

This case is being investigated by the FBI, and being prosecuted by Assistant U.S. Attorneys Michael Barnett and Cyrus P.W. Rieck.

BINGHAMTON, NEW YORK – Fadl Mohamad Alharbi, age 50, of Syracuse, New York, was convicted today following a federal jury trial of naturalizing contrary to law and submitting a false statement in a passport application, announced Acting United States Attorney Antoinette T. Bacon and Timothy Novak, Resident Special Agent in Charge, Buffalo, New York, U.S. Department of State-Diplomatic Security Service (DSS).

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

The charges for which Alharbi was convicted carry a maximum sentence of 15 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. Alharbi also faces denaturalization as a result of his naturalization fraud 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. Alharbi will be sentenced in federal court in Binghamton, New York, on January 4, 2022, by Senior United States District Judge Thomas J. McAvoy, who presided over the trial.

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

ALBANY, NEW YORK – Micah Hines, a/k/a “Water,” age 42, pled guilty today to distributing more than 28 grams of cocaine base, and also admitted to distributing fentanyl, in January 2021.

The announcement was made by Acting United States Attorney Antoinette T. Bacon; Ray Donovan, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; and New York State Police Superintendent Kevin P. Bruen.

Hines has recently resided in Hudson, Cairo and Poughkeepsie, New York.  In pleading guilty, he admitted to selling about 40 grams of cocaine base on January 7, 2021, and to selling about 52 grams of fentanyl, and about 28 grams of cocaine base, on January 13, 2021.

Hines faces at least 5 years and up to 40 years in prison, and a term of post-release supervision of at least 4 years, when United States District Judge Mae A. D’Agostino sentences him on December 21, 2021.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case was investigated by the New York State Police and the DEA’s Capital District Drug Enforcement Task Force, which includes investigators from the Columbia County Sheriff’s Office and Hudson Police Department.  The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.

ALBANY, NEW YORK – Nicholas Faber, age 25, of Rochester, New York, was sentenced today to serve 36 months in prison for computer fraud and aggravated identity theft in connection with his hacking of online social media accounts and theft of nude images of dozens of female victims.

The announcement was made by Assistant Attorney General Kenneth A. Polite, Jr.; Acting United States Attorney Antoinette T. Bacon; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and State University of New York-Plattsburgh Police Chief Patrick Rascoe.

As part of his guilty plea on February 8, 2021, Faber admitted that from about 2017 to 2019, he worked with co-conspirator Michael Fish to access the school email accounts of dozens of female college students and then used information from those school email accounts to gain access to the victims’ social media accounts.  Faber then stole, and traded online with others, private nude photographs and movies stored in the victims’ social media accounts.  Also, as a result of Faber’s crimes, the university had to allocate money and staff to identifying compromised accounts, reviewing computer and server access logs, resetting passwords, and notifying students and parents.

Faber obtained his undergraduate degree from SUNY-Plattsburgh, graduating in 2017.

United States District Judge Mae A. D’Agostino also imposed a 3-year term of supervised release, which will start after Faber is released from prison, and ordered him to pay $35,430 in restitution to SUNY-Plattsburgh and a $200 special assessment. 

Fish pled guilty to computer hacking, aggravated identity theft and child pornography offenses on May 19, 2020, and is scheduled to be sentenced on November 3, 2021.

This case was investigated by the FBI with substantial assistance from the SUNY-Plattsburgh Police Department.  Deputy Chief Michael Stawasz from the Department of Justice Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorneys Joshua R. Rosenthal and Wayne A. Myers, prosecuted the case. 

A New York man was sentenced today to 36 months in federal prison for computer fraud and aggravated identity theft in connection with his hacking of online social media accounts and theft of nude images of dozens of women.

Nicholas Faber, 25, of Rochester, pleaded guilty on Feb. 8. According to court documents, Faber admitted that from about 2017 to 2019, he worked with co-conspirator Michael Fish to access the school email accounts of dozens of female SUNY-Plattsburgh students and then used information from those school email accounts to gain access to the victims’ social media accounts. Faber then stole, and traded online with others, private nude photographs and movies stored in the victims’ social media accounts. As a result of Faber’s crimes, the university had to allocate money and staff to identifying compromised accounts, reviewing computer and server access logs, resetting passwords and notifying students and parents.

Faber obtained his undergraduate degree from SUNY-Plattsburgh, graduating in 2017.

In addition to the 36 month prison sentence, United States District Judge Mae A. D’Agostino also imposed a three year term of supervised release, which will start after Faber is released from prison, and ordered him to pay $35,430 in restitution to SUNY-Plattsburgh and a $200 special assessment.

Fish pleaded guilty to computer hacking, aggravated identity theft and child pornography offenses on May 19, 2020 and is scheduled to be sentenced on Nov. 3.

This case was investigated by the FBI's Albany Field Office with substantial assistance from the SUNY-Plattsburgh Police Department.

Deputy Chief Michael Stawasz of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Joshua R. Rosenthal and Wayne A. Myers of the U.S. Attorney’s Office for the Northern District of New York are handling the case.

SYRACUSE, NEW YORK – Randell Adist, age 50, of Martinsburg, New York pled guilty today to distributing and possessing child pornography. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his guilty plea before United States District Court Judge David N. Hurd, Adsit, who has a prior New York State conviction for possessing a sexual performance by a child, admitted that he distributed child pornography using a social media application from approximately February 2020 through September 2020. Adsit also admitted that, on November 11, 2020, he possessed approximately 40 files depicting child pornography on his cell phone.

When Adist is sentenced on December 22, 2021, he faces at least 15 years and up to 40 years in prison for distributing child pornography and at least 10 years and up to 20 years in prison for possessing child pornography. In addition, Adist will be required to serve a term of supervised release of between five years and life after his term of incarceration and will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

This case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), and Computer Crimes Unit (CCU) and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.

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.

SYRACUSE, NEW YORK – Timothy B. Pease, 32, of Kirkville, New York, pled guilty yesterday to charges of distribution, receipt, and possession of child pornography.  The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

In pleading guilty before Chief United States District Judge Glenn T. Suddaby in Syracuse, Pease admitted that from December 2019 through January of 2020, he used various online social networking applications to receive and distribute child pornography.  Pease also admitted that during this time he used another social networking application, on which he posed as a teenage girl, to solicit teenage boys to produce sexually explicit images and videos of themselves, which Pease then distributed to others.  Pease also admitted to possessing thousands of images and videos of child pornography at the time of his arrest on January 23, 2020.

Pease faces at least 5 years and up to 20 years in prison, as well as a term of supervised release of between 5 years and life.  Upon his release from prison, Pease also will be required to register as a sex offender in any state where he lives, is employed, or is a student.  His sentencing is scheduled for December 14, 2021.

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 was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force. This task force is comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI). The case is being prosecuted by Special Assistant U.S. Attorney Adrian 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.

ALBANY, NEW YORK – Josef Jarvis, age 32, of Albany, appeared in federal court today on a charge of unlawfully possessing a firearm as a felon at the Albany International Airport on August 16, 2021.

The announcement was made by Acting United States Attorney Antoinette T. Bacon; 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.

The criminal complaint alleges that Jarvis, who has prior felony convictions for racketeering and weapons offenses, possessed a loaded handgun while attempting to pass through a security checkpoint at Albany International Airport on August 16, 2021.

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

If convicted, Jarvis faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

Jarvis appeared today before United States Magistrate Judge Christian F. Hummel, who ordered him detained.

This case was investigated by the FBI’s Joint Terrorism Task Force and the Albany County Sheriff’s Office, as well as the Transportation Security Administration.  The case is being prosecuted by Assistant U.S. Attorney Alexander Wentworth-Ping.

ALBANY, NEW YORK – Christopher Pratt, age 57, of Albany, pled guilty today to the distribution, receipt and possession of child pornography.   The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his guilty plea before United States District Judge Mae A. D’Agostino, Pratt admitted that he distributed and received child pornography over the internet through a peer-to-peer file sharing program.  Pratt also admitted that he possessed numerous images of child pornography on his personal laptop, and that he created a folder on his laptop, labeled “JB” for “jailbait,” in which he stored images of child pornography that he had downloaded from the internet.  

Pratt faces at least 5 years and up to 20 years in prison, and a term of supervised release of at least 5 years and up to life, when he is sentenced on December 20, 2021.  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, Pratt 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, including investigators from the Albany County Sheriff’s Office and New York State Police Computer Crimes Unit, and is being prosecuted by Assistant U.S. Attorneys Rachel Williams and Katherine Kopita. 

This case is 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

SYRACUSE, NEW YORK – Ryan Maher, 35, of Cicero, New York pled guilty today to receipt and possession of child pornography. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his guilty plea before Chief United States District Court Judge Glenn T. Suddaby, Maher, who has a prior New York State conviction for Sexual Abuse in the Second Degree, admitted that he received child pornography in 2019 and 2020 using a peer-to-peer file sharing service on the internet. Maher also admitted that, on November 17, 2020, he possessed approximately 4,000 child pornography files on a thumb drive.

When Maher is sentenced on December 11, 2021, he faces at least 15 years and up to 40 years in prison for receiving child pornography and at least 10 years and up to 20 years in prison for possessing child pornography. In addition, Maher will be required to serve a term of supervised release of between five years and life after his term of incarceration and will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

This case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), and Computer Crimes Unit (CCU) and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.

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 – Two New York State prison inmates and two others were indicted last week for conspiring to defraud COVID-19 pandemic-related unemployment insurance programs administered by the New York State Department of Labor (NYSDOL).

The announcement was made by Acting United States Attorney Antoinette T. Bacon; Nikitas Splagounias, Acting Special Agent in Charge, New York Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG); Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); Joshua McCallister, Acting 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.

In one indictment, Reginald Thornton, age 28, an inmate at the Bare Hill Correctional Facility in Malone, New York, and Briana Garland, age 28, of Uniondale, New York, were charged with conspiracy to commit mail fraud and aggravated identity theft.

In a second indictment, Thornton and Rhasha Wright, age 29, of Roosevelt, New York, were charged with conspiracy to commit mail fraud and aggravated identity theft. Another Bare Hill inmate, Lord Paulin, age 40, was also charged with conspiracy to commit mail fraud in the second indictment.

The indictments, returned on August 5, 2021, allege conspiracies to submit fraudulent unemployment insurance claims in the names of Bare Hill inmates. Specifically, Thornton provided his own means of identification to Garland, and the means of identification of Paulin and another inmate to Wright, in order for the non-inmates to submit claims. NYSDOL paid over $30,000 as a result of the scheme. The charges in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty.

Garland and Wright were arraigned today in Albany before United States Magistrate Judge Daniel J. Stewart, and were released with conditions.  Thornton and Paulin will be arraigned on August 19.

The charges for conspiracy to commit mail fraud 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.

These cases are being 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.

UTICA, NEW YORK – Lathisa Smokes, age 38, formerly of Syracuse, New York, and currently residing in Charlotte, North Carolina, was sentenced today to 5 years of probation, after previously pleading guilty to filing false tax returns, and assisting others in preparing false tax returns, which caused the IRS to issue refunds worth over $100,000.

The announcement was made by Acting United States Attorney Antoinette T. Bacon, and Thomas Fattorusso, Acting Special Agent in Charge, New York Field Office, Internal Revenue Service – Criminal Investigation (IRS-CI).

In pleading guilty, Smokes admitted that from January 2013 to March 2014, she falsely represented herself as a licensed tax preparer, and told taxpayers in Syracuse that she could obtain refunds for them by filing their individual federal tax returns.  Smokes convinced the taxpayers to supply her with their dates of birth, social security numbers, addresses, and other information for themselves and their minor dependents.  Smokes then prepared and filed 21 individual federal income tax returns that she knew contained false information relating to the taxpayers’ income, withholding, and eligibility for certain tax credits.  The false returns caused the IRS to deposit $102,918 in refunds to the taxpayers and Smokes.  The IRS has recovered the majority of this money.

Smokes was also ordered to pay $11,135 in restitution to the U.S. Treasury as part of her sentence, which was pronounced by United States District Judge David N. Hurd.

This case was investigated by IRS-CI and prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.

SYRACUSE, NEW YORK – Roy Bovee, age 34, of Jamesville, New York, was sentenced today to serve 15 years in federal prison for distribution, transportation and possession of child pornography, announced Acting United States Attorney Antoinette T. Bacon, 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 Bruen. 

As part of his guilty plea, Bovee admitted that in July 2020 he used the Kik Messenger application on his cellular telephone to distribute child pornography to other other Kik users.  A search of the defendant’s cellular telephone revealed that he possessed 152 images and 113 video files depicting minors engaged in sexually explicit conduct. The images and videos included depictions of the rape and sodomy of prepubescent children.  In addition, Bovee admitted to uploading over 100 images and videos depicting minors engaged in sexually explicit conduct to his on-line cloud storage account.   

Bovee is a registered sex offender who while in the military was convicted in 2010 of Distribution of Child Pornography, sentenced to 20 months imprisonment, and given a bad conduct discharge. 

United States District Judge David N. Hurd also imposed a 20-year term of supervised release, which will start after Bovee is released from prison, and ordered him to pay a $300 special assessment and $9,000 in restitution to the victims of his crimes.

At the time of his offense Bovee was on federal supervised release for a 2014 conviction for failing to register as a sex offender, for which he served a 54-month sentence. Today he also received a concurrent term of 9 months imprisonment for violating the conditions of that release.

Bovee’s case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), and Computer Crimes Unit (CCU) with assistance from the United States Probation Office.  The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as a part of Project Safe Childhood.

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). 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 37, of Clifton Park, New York, pled guilty today to possession of child pornography.   The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his guilty plea before Senior United States District Judge Thomas J. McAvoy, Tompkins, a registered sex offender, admitted that on March 28, 2019, he possessed child pornography images on his cellular phone that included depictions of prepubescent children.

Tompkins faces at least 10 years and up to 20 years in prison, and a term of supervised release of at least 5 years and up to life, when he is sentenced on December 15, 2021.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. 

This case was investigated by the FBI and its Child Exploitation Task Force, with assistance from the United States Marshals Service and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Rachel Williams. 

This case is 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 – Brandon Glaski, age 38, of East Nassau, New York, was sentenced today to 30 months in prison for unlawfully possessing firearms including “ghost guns,” as well as ammunition, a machinegun conversion device, and silencers.

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

United States District Judge Mae A. D’Agostino also sentenced Glaski to a 3-year term of supervised release.

On June 12, 2018, investigators with ATF and the New York State Police (NYSP) executed a federal search warrant at Glaski’s residence in East Nassau.  Stored in locked gun lockers in Glaski’s bedroom, as well as in unlocked containers in a hallway closet, basement and garage, were 23 rifles, 15 handguns, seven silencers, one machinegun conversion device, 101 ammunition magazines, and over 5,000 rounds of assorted ammunition.  The recovered firearms included two rifles without serial numbers (“ghost guns”), as well as 15 finished rifle and pistol lower receivers lacking serial numbers.

In pleading guilty, Glaski admitted that he had ordered the machinegun conversion device and silencers from Internet-based suppliers.  At the time he possessed the firearms and ammunition, Glaski had a prior state felony conviction for impaired driving.

This case was investigated by ATF, with assistance provided by NYSP, and prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.

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

ALBANY, NEW YORK – Nakia Barber, age 46, of Schenectady, New York, plead guilty today to unlawfully possessing a defaced firearm, and to possessing with intent to distribute and distributing heroin. The announcement was made by Acting United States Attorney Antoinette T. Bacon and 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).

As part of her guilty plea, Barber admitted that she possessed a defaced Walther P22 .22 caliber pistol, and possessed and distributed heroin on October 30, 2018.

Barber faces a maximum sentence of 20 years in prison, a fine of up to $1 million, and a term of supervised release of at least 3 years and up to life when she is sentenced by United States District Judge Mae A. D’Agostino. on December 7, 2021. 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 Schenectady County Sherriff’s Office, and is being prosecuted by Assistant United States Attorney Alexander P. Wentworth-Ping.

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

ALBANY, NEW YORK – Dr. Larry Bruni has agreed to pay the United States $50,000 to resolve allegations that on numerous occasions from 2016 through 2020, he prescribed controlled substances without a legitimate medical purpose or outside the usual course of a professional medical practice, in violation of the Controlled Substances Act.  Dr. Bruni also agreed to surrender DEA registration, and will not seek another DEA registration for at least 15 years.  The amount of the civil penalty is based on Dr. Bruni’s inability to pay a higher amount. 

The announcement was made by Acting United States Attorney Antoinette T. Bacon and Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division.

“Prescription pads are for the medication patients need, not drugs they want,” said Antoinette T. Bacon, Acting United States Attorney for the Northern District of New York.  “We will continue to work with the Drug Enforcement Administration to enforce the Controlled Substances Act by pursuing civil remedies when there is evidence that physicians have violated their oath to do no harm by writing unlawful prescriptions.”

“Instead of providing appropriate treatment and a safe haven for patients, Dr. Bruni perpetuated the cycle of addiction,” said Special Agent in Charge Ray Donovan, DEA New York Division.  “I commend the Northern District of New York and the Diversion Investigators of the Albany District Office for their resolve to this investigation. DEA and our dedicated partners will continue to investigate those DEA Registrants who choose to neglect their duties and harm those they swore to protect.” 

The Settlement Agreement resolves allegations that while Dr. Bruni purported to treat patients for substance abuse, he actually facilitated continued addiction and drug abuse.  Examples of conduct include:

• Prescribing Adderall to a patient Dr. Bruni knew was abusing cocaine and methamphetamines, contributing to a high risk of heart attack or stroke for that individual;
   
• Prescribing Adderall to a patient who repeatedly tested negative for having taken Adderall, suggesting that those prescriptions were not medically necessary or that the medication was being diverted to the illegal market;
   
• Prescribing ketamine to patients to self-administer even though that drug is typically administered only in a medical setting because it induces a trance-like and dissociative state.  In one case, a patient was injured at work while under the influence of ketamine; and
   
• Prescribing fentanyl strips for a patient who had ongoing substance abuse problems and ultimately died of fentanyl intoxication.
   

The DEA suspended Dr. Bruni’s DEA Registration in March 2021, which Dr. Bruni agreed to surrender in June 2021.  As a result, Dr. Bruni is no longer able to write prescriptions for controlled substances.  Pursuant to the Agreement, Dr. Bruni also agreed not to reapply for a DEA registration for at least 15 years. 

This case was investigated by the DEA Albany District Office Diversion Group.   Assistant United States Attorney Christopher R. Moran represented the United States in this matter.  

ALBANY, NEW YORK – Daniel Day, age 34, of Argyle, New York, was arrested and charged by criminal complaint today with unlawfully possessing ammunition as a felon and illegally possessing a machinegun on August 5, 2021.

The announcement was made by Acting United States Attorney Antoinette T. Bacon; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).

The criminal complaint alleges that Day, who has a prior felony conviction for unlawfully possessing a firearm as a user of a controlled substance, possessed ammunition and a machinegun at his residence in Argyle, on August 5, 2021. Law enforcement also located other firearms and ammunition at his residence. The charges in the complaint are merely accusations.  The defendant is presumed innocent unless and until proven guilty. 

If convicted, Day faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

Day appeared today before United States Magistrate Judge Christian F. Hummel, who ordered him detained.

This case was investigated by the FBI's Joint Terrorism Task Force (JTTF), with assistance from the New York State Police and ATF, and is being prosecuted by Assistant U.S. Attorneys Alexander Wentworth-Ping and Richard Belliss. 

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

ALBANY, NEW YORK – Anthony A. Parker, age 55, of Troy, was sentenced today to 51 months in prison for unlawful possession of a firearm by a felon.

The announcement was made by Acting United States Attorney Antoinette T. Bacon; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police (NYSP) Superintendent Kevin P. Bruen.

In pleading guilty, Parker admitted that on April 13, 2020, while employed as a driver at the Federal Express distribution center in Menands, New York, he removed a package from a conveyor belt that was addressed to a Capital Region gun store that contained a Ruger 57 5.7 x 28mm caliber semi-automatic pistol and two magazines.  Parker later hid the pistol and magazines at his residence in Troy.  At the time he stole and possessed the pistol and magazines, Parker had a prior conviction for second-degree murder. 

Parker has been in custody since his arrest on a federal complaint on May 13, 2020.

In addition to the prison sentence, Chief U.S. District Judge Glenn T. Suddaby sentenced Parker to serve a 3-year term of post-release supervision. 

This case was investigated by the FBI and NYSP, and was prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon. 

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

ALBANY, NEW YORK – Jean Luis Colon, age 23, of Troy, New York, was sentenced today to 36 months in prison, to be followed by 3 years of supervised release, for possessing and intending to distribute heroin, and to possessing a firearm with an altered serial number.

The announcement was made by Acting United States Attorney Antoinette T. Bacon and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division.

Colon admitted that he possessed approximately 2,050 small bags of heroin that he intended to sell, which law enforcement seized when they executed a search warrant on his Troy residence on August 21, 2020; some of the heroin bags were stamped with the words “Corona Virus.”  The bags collectively contained between 60 and 80 grams of heroin. 

Colon also admitted to possessing a .38 caliber Smith and Wesson revolver with a scratched serial number.  Colon has been in custody since his arrest on August 21, 2020.

This prosecution was the result of a joint investigation by the DEA, Troy Police Department, and the New York State Police Special Investigations Unit, and was prosecuted by Assistant U.S. Attorney Michael Barnett with assistance from the Rensselaer County District Attorney’s Office.

ALBANY, NEW YORK – Michael T. Mann, age 51, was sentenced today to 144 months in prison for running a complex scheme that caused more than $100 million in losses to banks, financing companies, and other businesses, and also involved his misappropriation of millions of dollars entrusted to payroll companies that he owned.

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

Senior United States District Judge Lawrence E. Kahn also ordered Mann to serve 3 years of post-imprisonment supervised release, pay restitution to victims in the total amount of $101,038,793.31, and to forfeit assets already seized by the Government, including $14,522,474.90 contained in bank accounts and 30,000 common shares of Pioneer Bancorp Inc.

Acting United States Attorney Antoinette T. Bacon stated: “Today’s sentence holds Michael Mann accountable for his despicable crimes.  For years, instead of growing a legitimate business in Clifton Park, he grew a fraudulent scheme.  Mann inflicted major losses on companies that loaned him money.  He also stole the paychecks of thousands of hard-working people, and the tax payments of hundreds of small businesses, across the country.  Mann caused immense stress for small business owners and fear among employees living paycheck to paycheck, and he justly deserves the term of imprisonment imposed today. This case should be a deterrent to businesspeople who would seek to lie, cheat and steal their way to success.”

FBI Special Agent in Charge Janeen DiGuiseppi stated: “Michael Mann's intricate fraud scheme allowed him to manipulate the system to the tune of $100 million. He played a dangerously deceitful game with the paychecks of thousands of hard-working Americans trying to make an honest living. Not only were thousands of employees impacted, but some small business owners lost their livelihoods when they went out of business due to Mann’s criminal scheme. While today’s sentence cannot build back those businesses or give back lost jobs, we can only hope it serves as a resounding message that the FBI, together with our law enforcement partners, will not stand for anyone looking to gamble with the hard-earned incomes of our citizens.”

Mann operated ValueWise Corporation, based in Clifton Park, New York, as well as subsidiary companies including MyPayrollHR.com LLC.  He admitted that from 2013 to September 2019, he engaged in a fraudulent scheme to deceive banks and financing companies into loaning his companies tens of millions of dollars. Because Mann could not repay the loans with legitimate business revenues, he expanded the fraud, by stealing and diverting millions of dollars that were entrusted to his payroll companies, and engaging in the daily kiting of millions of dollars among bank accounts he controlled.

Mann’s scheme collapsed in late August and early September 2019, when one of his banks froze his accounts, setting off a chain of events that left his payroll companies unable to process payroll and tax payments for hundreds of small business customers nationwide.

On August 12, 2020, Mann pled guilty to one count of conspiracy to commit wire fraud, one count of aggravated identity theft, nine counts of bank fraud, and one count of filing a false tax return.

Mann’s scheme had multiple layers, including: 

• Mann obtained tens of millions of dollars in loans from three financing companies, located in New York, Colorado and California, respectively, by falsifying his companies’ revenues and receivables. Mann falsely told the financing companies that Minnesota-based UnitedHealth Group Incorporated (“UHG”) and its subsidiary OptumInsight Inc. (“Optum”), owed millions of dollars to his companies.  Mann created fake invoices reflecting the fictitious debt and assigned them to the financing companies as collateral for the loans.
   
• Mann fraudulently obtained a line of credit from several Capital Region banks; the line of credit had grown to $42 million by August 2019.  To obtain the line of credit, Mann created companies whose sole purpose was to further the fraud by generating fake invoices, disguising sources of funds, and artificially inflating his assets; falsely represented to the banks that his fake businesses had revenues and receivables based on consulting work for Optum/UHG and other well-known companies, including 3M, Best Buy and T-Mobile; hid the tens of millions of dollars in loans he was receiving from the financing companies, and that he was using the line of credit to pay down these loans; and provided false financial statements, and individual and corporate tax returns, to his outside auditor, which in turn made inaccurate reports to the banks.
   

• Mann misappropriated payroll monies, entrusted to MyPayrollHR and other payroll companies he owned, by changing the instructions for digital Automated Clearing House (“ACH”) files that were supposed to transmit payroll from customers (employers) to the employees of the customers.  Although his companies’ contracts with Cachet Financial Services specified that ACH transfers would route payroll funds from the employers’ accounts to a designated Cachet trust account and then directly to the customers’ employees, Mann changed the instructions inside digital ACH files provided to Cachet, in order to divert payroll funds into accounts that he controlled at Pioneer Bank. When Pioneer Bank froze Mann’s corporate accounts on or about August 30, 2019, it froze the payroll funds in those accounts, and caused several thousand people across the country to not receive a payroll payment. 

Mann is the first person to be sentenced in connection with this fraud.  A co-conspirator, former Optum employee Luke E. Steiner, age 33, of Minneapolis, Minnesota, pled guilty in February 2020 to conspiring with Mann to defraud two financing companies out of millions of dollars. 

This case was investigated by the FBI, as well as Internal Revenue Service-Criminal Investigation, and was prosecuted by Assistant U.S. Attorneys Michael Barnett and Cyrus P.W. Rieck. 

SYRACUSE, NEW YORK – James Obelkevich, age 51, of Carbondale, Pennsylvania, pled guilty today to traveling to New York from Pennsylvania for the purpose of engaging in illicit sexual conduct with two children. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his guilty plea, 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.  Obelkevich was arrested after arriving at the location and has been in custody since that date.

Sentencing is scheduled for December 8, 2021, in Binghamton, before Senior United States District Judge Thomas J. McAvoy. Obelkevich faces up to 30 years in prison, a fine of up to $250,000, 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 statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.  Upon his release from prison Obelkevich will be required to register as a sex offender in any state where he resides, is employed, or is a student.

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 is being 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 – Tanner Brown, 25, of Cobleskill, New York, was sentenced today in federal court in Syracuse to 18 months of Probation and ordered to pay a $1,000 fine, after previously pleading guilty to one felony count of delaying the mail, announced Acting United States Attorney Antoinette T. Bacon and Special Agent in Charge Matthew Modafferi, United States Postal Service-Office of Inspector General (USPS-OIG), Northeast Area Field Office.

As a part of his prior guilty plea, Brown admitted that between January 1, 2019, and July 24, 2019, while working as a postal carrier for the United States Postal Service, he intentionally detained and failed to deliver 5,833 pieces of mail. Instead of delivering this mail to its intended recipients in Onondaga County, Brown drove it to Sharon Springs, New York, where he dumped some of it in a grassy field and the rest of it in a wooded area underneath a pile of discarded tires. When agents recovered the mail from those locations, they discovered that much of it was First-Class Mail and that most of it was wet, dirty, and/or covered in bugs. The Postal Service eventually delivered as much of the recovered mail as it could, and Brown is no longer employed by the Postal Service. 

Brown was also ordered to serve 100 hours of community service as part of his sentence, which was pronounced by Chief United States District Judge Glenn T. Suddaby, who presides over the case.

This case was investigated by USPS-OIG and prosecuted by Assistant U.S. Attorney Michael F. Perry.

SYRACUSE, NEW YORK – Alisha Obey, age 35, of Fulton, New York, pled guilty yesterday to unlawfully possessing with the intent to distribute eutylone, a Schedule I controlled substance. 

The announcement was made by Acting United States Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).

As part of her guilty plea, Obey admitted that on July 14, 2019, November 8, 2019, and December 3, 2019, she possessed eutylone, which she intended to distribute to customers throughout Oswego County.  Eutylone is a synthetic cathinone and has pharmacological effects on the central nervous system similar to other schedule I or II substances such as cocaine, methamphetamine, and MDMA.

Obey faces up to 20 years in prison, a fine of up to $1 million, and a term of post-release supervision of at least 3 years and up to life when she is sentenced by Senior United States District Judge Frederick J. Scullin, Jr. on December 1, 2021.  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 Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation (IRS-CI), and the Oswego County Drug Task Force, comprised of Special Agents of HSI, members of the City of Oswego Police Department, the Oswego County Sheriff’s Office, investigators from the Oswego County District Attorney’s Office, the SUNY Oswego Police Department and agents of the U.S. Border Patrol.  The case is being prosecuted by Special Assistant United States Attorney Adrian LaRochelle.

SYRACUSE, NEW YORK – Four Syracuse men were indicted yesterday and charged with conspiracy to distribute fentanyl, and possessing controlled substances with the intent to distribute.  The announcement was made by Acting U.S. Attorney Antoinette T. Bacon; Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division; and Chief Kenton Buckner, City of Syracuse Police Department. 

• Raphael Frias, age 28, was charged with conspiring to distribute and possess with intent to distribute fentanyl, and possessing fentanyl with the intent to distribute. If convicted, Frias faces between 5 and 40 years in prison, a fine of up to $5 million, and a term of supervised release of at least 4 years and up to life.
   
• Carlos Esteras, age 40, was charged with conspiring to distribute and possess with intent to distribute fentanyl, and possessing fentanyl with the intent to distribute. If convicted, Esteras faces between 5 and 40 years in prison, a fine of up to $5 million, and a term of supervised release of at least 4 years and up to life.
   
• Adrian Esteras, age 37, was charged with conspiring to distribute and possess with intent to distribute fentanyl, and possessing cocaine with the intent to distribute. If convicted, Esteras faces up to 20 years in prison, a fine of up to $1 million, and a term of supervised release of at least 3 years and up to life.
   
• Shane Williams, age 30, was charged with conspiring to distribute and possess with intent to distribute fentanyl, and possessing a firearm and ammunition after being convicted of a felony. If convicted, Williams faces up to 20 years in prison, a fine of up to $1 million, and a term of supervised release of at least 3 years and up to life.
   

The charges in the indictment are merely accusations, and all defendants are presumed innocent unless and until proven guilty. 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 defendants were arrested on July 6, 2021, and are detained pending trial. At the time of the defendants’ arrests, law enforcement seized over 1,500 envelopes containing suspected fentanyl, a quantity of cocaine, and a loaded Smith & Wesson 9mm handgun.

This case is being investigated by the DEA, the Syracuse Police Department, the Onondaga County Sheriff’s Office, the Onondaga County District Attorney’s Office, the New York State Police, the New York State Division of Parole, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, and is being prosecuted by Assistant U.S. Attorney Thomas Sutcliffe.

SYRACUSE, NEW YORK – Frederick L. Guth, Jr., age 66, of Brewerton, New York, pled guilty yesterday to theft of Social Security retirement benefits.

The announcement was made by Acting United States Attorney Antoinette T. Bacon and John F. Grasso, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, New York Field Office.

As part of his guilty plea, Guth admitted that from November 2016 until July 2018, he erroneously received a total of $33,812.00 in Social Security retirement benefits issued under the social security number and name of another person, and that he spent the benefits despite knowing that the benefits were not his and that he was not entitled to them.

Sentencing is scheduled for ­­­­­November 30, 2021, before Senior United States District Judge Thomas J. McAvoy in Binghamton, New York.   Guth faces up to 10 years in prison, up to 3 years of supervised release, and a fine of up to $250,000 as a result of his conviction.  Additionally, Guth has agreed to pay restitution to the Social Security Administration.  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 SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.

ALBANY, NEW YORK – Jose Leon Roldan, age 42, of Troy, New York, pled guilty today to conspiring to distribute a kilogram of heroin.

The announcement was made by Acting United States Attorney Antoinette T. Bacon; Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division; and Rensselaer County Sheriff Pat Russo.

In pleading guilty, Leon Roldan admitted to working with his father, Carlos Leon Rivera, and Mario Figueroa-Portalatin, to sell heroin in Troy, from November 2019 to March 30, 2020.  Jose Leon admitted to regularly traveling to New York City with his father, where they would acquire heroin from Figueroa’s source of supply.  They brought the heroin back to Troy, where they and Figueroa prepared and packaged it for sale to customers. 

Leon faces at least 10 years and up to life in prison, as well as post-release supervision of at least 5 years and up to life, when Chief United States District Judge Glenn T. Suddaby sentences him on December 8, 2021. 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.

Figueroa-Portalatin, age 42, of Troy, pled guilty on August 11, 2020 to conspiring to distribute 1 kilogram or more of heroin, and is scheduled for sentencing on November 4, 2021.

Leon Rivera, age 63, of Troy, pled guilty on June 9, 2021 to conspiring to distribute 1 kilogram or more of heroin, and is scheduled for sentencing on October 28, 2021.

This case was investigated by the DEA and the Rensselaer County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Michael Barnett

SYRACUSE, NEW YORK – Phoenix Phan, age 62, of Syracuse, pled guilty today to filing a false tax return for herself and to aiding and abetting the filing of a false tax return for a client. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas Fattorusso, Acting Special Agent in Charge, New York Field Office, Internal Revenue Service – Criminal Investigation (IRS-CI).

As part of her 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 others in filing false federal income tax returns during the same time 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.

Sentencing is set for November 30, 2021 before Senior United States District Judge Thomas J. McAvoy.  Phan faces up to 3 years in prison on each count. The judge also could impose a term of supervised release of up to 1 year. In addition to imprisonment and supervised release, Phan faces a fine of up to $100,000 on each count and, as part of her plea agreement, Phan agreed to pay at least $222,999 in restitution to the IRS. 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 IRS-CI and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.

ALBANY, NEW YORK – Chandler Whittaker, age 25, of Schenectady, New York, was sentenced today to 121 months in prison for receipt and possession of child pornography.  The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his previously entered guilty plea, Whittaker admitted that, between July and October 2014, and in January 2016, he downloaded several images of child pornography from the Internet.  Whittaker also admitted to possessing hundreds of images and videos of child pornography on multiple electronic devices between December 2018 and February 2019.  

Chief United States District Judge Glenn T. Suddaby also sentenced Whittaker to 20 years of supervised release and to pay restitution to the victims of his crimes.  Whittaker will also be required to register as a sex offender upon his release from prison. 

This case was investigated by the Rotterdam Police Department, the New York State Police, and the FBI’s Child Exploitation Task Force, and prosecuted by Assistant U.S. Attorney Rachel Williams as part of Project Safe Childhood. 

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

SYRACUSE, NEW YORK – Michael Bartusek, age 52, of Fairport, New York, was sentenced today to two years in prison for wire fraud, money laundering, and filing a false tax return. The announcement was made by Acting United States Attorney Antoinette T. Bacon of the Northern District of New York; United States Attorney James P. Kennedy, Jr. of the Western District of New York; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Acting Inspector in Charge Joshua McCallister, Boston Division, United States Postal Inspection Service (USPIS); and Thomas Fattorusso, Acting Special Agent in Charge, New York Field Office, Internal Revenue Service – Criminal Investigation (IRS-CI).

As part of his previously entered guilty plea, Bartusek admitted that from the summer of 2015 through the end of 2016, he defrauded his employer of approximately $776,000, which he used to invest in a high-risk scheme to purchase and sell diamonds from overseas, hoping to profit personally from their sale and return the money he stole from his employer before his fraud was discovered. Instead, the diamond investment failed, and the money was lost.

Bartusek also admitted that, as part of his diamond scheme, he and two others solicited investments for a company called Integra Diamonds by making materially false and fraudulent representations in an effort to recover investment funds that had been lost, including the money Bartusek stole from his employer. In addition to the fraud and money laundering, Bartusek filed false tax returns for tax year 2015 and underreported his total income that tax year by approximately $123,000, and underreported his total income for the 2016 tax year by approximately $46,000.

Senior United States District Judge Thomas J. McAvoy also sentenced Bartusek to a 3-year term of supervised release to begin following his term of imprisonment and to pay restitution to his victims totaling $973,922.

This case was investigated by the FBI, United States Postal Inspection Service, and IRS-CI. The case was prosecuted by Assistant U.S. Attorneys Michael D. Gadarian and Nicolas Commandeur of the Northern District of New York, and Assistant U.S. Attorney Charles Kruly of the Western District of New York.

SYRACUSE, NEW YORK – Lawrence Berry, 27, of Marathon, New York pled guilty today to one count of conspiracy to sexually exploit a child and five counts of sexual exploitation of a child, announced Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his guilty plea, Berry admitted that he conspired with Brittany Berry (who has already pleaded guilty to the same charges) to sexually exploit a 3-year-old minor child in August and September of 2018 and that he directed Brittany Berry to sexually exploit the child on five different occasions for the purpose of creating and sending images and videos (live and recorded) of the sexual abuse to him over the internet.

Sentencing is scheduled for November 23, 2021 in Utica before United States District Judge David N. Hurd. Berry faces a minimum sentence of 15 years and up to 30 years in prison on each of the six counts of conviction. He also will be required to spend at least 5 years and up to a lifetime term on post-imprisonment supervised release. 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.  Upon release from prison Berry will be required to register as a sex offender in any state where he lives, is employed, or is a student.

This case was investigated by the FBI and the City of Cortland Police Department and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian and Special Assistant U.S. Attorney Adrian 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), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

ALBANY, NEW YORK – Junior Rafael Arias Soto, age 50, a citizen of the Dominican Republic and a resident of Troy, New York, was sentenced today to 37 months in prison for distributing fentanyl in the cities of Rensselaer and Troy.

The announcement was made by Acting United States Attorney Antoinette T. Bacon and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.

As part of his guilty plea, Arias Soto admitted that between June 2019 and June 2020, he distributed at least 155 grams of a fentanyl mixture to customers in Troy and Rensselaer.

Chief United States District Judge Glenn T. Suddaby also imposed a 2-year term of supervised release, to begin after Arias Soto’s release from prison.  Arias Soto has been in custody since his arrest in June 2020 and is subject to deportation following the completion of his prison sentence.

This case was investigated by the DEA, with assistance provided by Homeland Security Investigations (HSI), the Rensselaer Police Department and the Troy Police Department, and was prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.

SYRACUSE, NEW YORK – Richard J. Potter, Jr., age 57, of Springport, New York, pled guilty today to charges of receipt and possession of child pornography, and to possession of a firearm by a prohibited person.  The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

In pleading guilty before United States District Judge David N. Hurd in Utica, Potter admitted that from June 2018 to in or about January 2019, he used the Internet to search for and receive child pornography.  Potter also admitted that on January 23, 2019, he possessed a total of 33,066 images and 206 videos of child pornography on 35 separate electronic devices, and 451 images of child pornography in a cloud storage account that he maintained and controlled. 

Potter, who was previously convicted in 2003 of a crime related to the sexual abuse of a minor, faces at least 15 years and up to 40 years in prison for the child pornography crimes, as well as a term of supervised release of between 5 years and life.  Upon his release from prison, Potter will be required to register as a sex offender in any state where he lives, is employed, or is a student.

Potter also pled guilty to being a felon in possession of a firearm, admitting that on January 23, 2019, he possessed a 12-gauge shotgun.  For this offense, Potter faces up to 10 years in 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 was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force. This task force is comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI). The case is being 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 – Thomas Sczerbaniewicz, age 53, of Syracuse, was sentenced today to serve 120 months (ten years) in federal prison for possessing child pornography. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his previously entered guilty plea, Sczerbaniewicz admitted that he was convicted of possessing child pornography in 2009, was on supervised release for that offense at the time he committed the current offense in January 2021, and committed the new offense while in the bathroom of his sex offender counseling service using a mobile phone to access the internet and view child exploitation images.

Senior United States District Judge David N. Hurd also sentenced Sczerbaniewicz to four (4) months imprisonment for violating the terms of his supervised release (to be served concurrently with his 120-month sentence) and to a new 15-year term of supervised release to begin following his imprisonment. Sczerbaniewicz also will be required to continue to register as a sex offender upon his release from prison.

Sczerbaniewicz’s case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), after a referral from the United States Probation Office. The case was prosecuted by Assistant U.S. Attorney Michael D. Gadarian as a part of Project Safe Childhood.

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

ALBANY, NEW YORK – Dewey K. Sims, age 32, of Albany, pled guilty today to illegally possessing a .25 caliber pistol as a felon.

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

As part of his plea, Sims admitted that on March 7, 2020, he possessed a loaded .25 caliber pistol on his person when he was pulled over for a speeding violation in the Town of Colonie.  A prior felony conviction for armed robbery prevented Sims from legally possessing the firearm in New York. 

Sims faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced on November 30, 2021 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.

This case was investigated by the ATF and the Colonie Police Department.  This case is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.

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

ALBANY, NEW YORK – Eugene Rosen of Palm Beach Gardens, Florida has agreed to pay the United States $805,000 to resolve allegations that he made improper payments to his family trusts while disregarding his obligation to make payments on a federally-backed mortgage, and submitted a false statement to the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) related to those payments, in violation of the civil equity skimming statute and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), announced Acting United States Attorney Antoinette T. Bacon.

Ellsworth Commons, a mixed use residential and commercial property in Malta, New York, was owned by Ellsworth Partners, LLC., a company that Rosen owned and operated.  In 2010, Ellsworth Partners obtained an FHA-insured mortgage to finance the construction of Ellsworth Commons.  FHA agreed that, if Ellsworth Partners defaulted on the mortgage, FHA would pay the outstanding balance to the lender.  In exchange, Ellsworth Partners agreed to use project revenue only for FHA-authorized purposes.  Transferring money to Rosen’s family trusts when the mortgage was in default was not an authorized purpose.

At various times, Ellsworth Partners borrowed money from outside sources, including from trusts that Rosen established for his family, and repaid those loans with project funds.  On at least three occasions, HUD notified Rosen that Ellsworth Partners could not use project funds to repay those loans.  From mid-2016 through early 2018, Ellsworth Partners stopped paying its mortgage causing it to go into default.  To prevent foreclosure, FHA agreed to pay down a substantial portion of the mortgage after Rosen certified that, while the mortgage was in default, Ellsworth Partners paid to its lender all net cash remaining after project expenses had been paid.  That statement was false because, as Rosen admitted in the settlement agreement, “Between April 2016 through January 2018, while the mortgage was in default, Ellsworth Partners made unauthorized payments on loans to the Rosen family trusts and another entity.”

“Eugene Rosen falsely certified that Ellsworth Partners used all available funds to pay down its federally insured mortgage on housing built for moderate income families when, in reality, he transferred some of those funds to his family’s trust accounts,” said Acting United States Attorney Antoinette T. Bacon.  “Our office will continue in partnership with HUD to hold accountable those who violate affordable housing program requirements.”

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

ALBANY, NEW YORK – Cameron Hennelly, age 30, of Amsterdam, New York, pled guilty today to one count of distribution of child pornography and one count of possession of child pornography. 

The announcement was made by Acting United States Attorney Antoinette T. Bacon and Jodi Cohen, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI). 

As part of his guilty plea, Hennelly admitted that, while using a social media application on his phone, he sent a graphic image file of child pornography to another individual over the internet.  A subsequent search of Hennelly’s phone revealed that he was also in possession of images and video files depicting child pornography. 

Chief United States District Judge Glenn T. Suddaby will sentence Hennelly on December 9, 2021.  Hennelly faces at least 5 years and up to 20 years in prison, and a term of post-imprisonment supervised release of between 5 years and life.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.  Hennelly will also have 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 is being prosecuted by Assistant United States Attorney Rachel Williams as part of Project Safe Childhood.

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

SYRACUSE, NEW YORK – Glen Zinszer, age 51, of Liverpool, New York, pled guilty today to committing wire fraud and willfully filing false tax returns, announced Acting United States Attorney Antoinette T. Bacon; Thomas Fattorusso, Acting Special Agent in Charge, New York Field Office, Internal Revenue Service – Criminal Investigation (“IRS-CI”); and Jodi Cohen, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

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

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

Sentencing is scheduled for November 29, 2021, in Syracuse before Senior United States District Court Judge Frederick J. Scullin, Jr. Zinszer faces a maximum term of imprisonment of 20 years for his wire fraud conviction, and 3 years for his conviction for willfully filing false tax returns, a maximum fine of $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. 

This case was investigated by IRS-CI and the FBI, and is being prosecuted by Assistant United States Attorneys Michael D. Gadarian and Geoffrey J.L. Brown.

SYRACUSE, NEW YORK - Peter N. Allen, age 33, of East Stroudsburg, Pennsylvania was sentenced today to serve 124 months in prison for attempting to arrange for a sexual encounter with a minor. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Jodi Cohen, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his previously entered guilty plea, Allen admitted that between February 2020 and May 2020, he exchanged multiple sexually explicit messages online with an undercover officer posing an 11-year-old girl to entice the child into having sex with him. Allen also admitted that on May 14, 2020, he traveled from Pennsylvania to a fast-food restaurant parking lot in New York near where he believed the child lived to meet her for sex.

Senior United States District Judge Thomas J. McAvoy also sentenced Allen to a 15-year term of supervised release to begin following his term of imprisonment. Allen also will be required to register as a sex offender upon his release from prison.

This case was investigated by Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian as a 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.

ALBANY, NEW YORK – Anthony Beckwith, age 36, of Sheffield, Massachusetts, was sentenced today to 41 months in prison for traveling in interstate commerce to have sex with someone whom he believed to be a 12- or 14-year-old girl.

The announcement was made by Acting United States Attorney Antoinette T. Bacon; Jodi Cohen; Acting 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.

In pleading guilty, Beckwith admitted to communicating with a man he believed to be offering his 12- or 14-year-old stepdaughter for sex.  As arranged with the man, Beckwith drove from Sheffield to Albany to have sex with the child on February 1, 2019, but drove off after observing what he believed to be law enforcement.  He was later arrested and ultimately admitted to traveling to Albany with the intent to have sex with the child.

United States District Judge Mae A. D’Agostino also sentenced Beckwith to a 10-year term of supervised release, to begin following his term of imprisonment, and ordered him to pay $5,100 in assessments.  Beckwith will also be required to register as a sex offender upon his release from prison.

This case was investigated by the FBI and New York State Police, and prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.

ALBANY, NEW YORK – Kevin J. Nugent, age 43, of Halfmoon, New York, pled guilty today to attempting to coerce and entice a minor to engage in criminal sexual conduct with him.  The announcement was made by Acting United States Attorney Antoinette T. Bacon and Jodi Cohen, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his guilty plea, Nugent admitted that in August 2019, he exchanged multiple sexually explicit messages via an online social networking application with an undercover officer posing as a 14-year-old child, in an attempt to coerce and entice the child into having sex with him.  Nugent further admitted that on August 27, 2019, he traveled in order to meet with the child at a location in Albany County.  Nugent was arrested after arriving at the location, and has been in custody since that date.

Sentencing is scheduled for November 27, 2021 in Albany, before United States District Judge Mae A. D’Agostino.  Nugent faces at least 10 years and up to life in prison, a fine of up to $250,000, 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 statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.  Nugent also will have to register as a sex offender upon his release from prison.

This case was investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon 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 - Anthony Lopes, age 29, of Syracuse, New York, pled guilty today to possessing unregistered silencers, announced Acting United States Attorney Antoinette T. Bacon,   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, City of Syracuse Police Department.

As part of his guilty plea, Lopes admitted to selling a total of three silencers on February 10, 2020, and February 13, 2020.  None of the silencers had serial numbers and were not registered to Lopes in the National Firearms Registration and Transfer Record.

Sentencing is scheduled for November 10, 2021, before Chief District Judge Glenn T. Suddaby in Syracuse, New York, at which time Lopes faces up to 10 years in prison, a fine of up to $10,000, 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 United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Syracuse Police Department-Special Investigations Division (SPD-SID), and is being prosecuted by Assistant U.S. Attorney Thomas Sutcliffe.