Northern District of New York

ALBANY, NEW YORK – Luis Rivera, age 34, of Albany, pled guilty last week to unlawfully possessing a firearm as a felon. The announcement was made by United States Attorney Grant C. Jaquith and John B. DeVito, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

The guilty plea took place on June 25.  Rivera, who has three prior felony convictions, admitted that on January 31, 2019, he possessed a Taurus PT 738 .380 caliber pistol.  

Rivera faces up to 10 years in prison and a post-imprisonment supervised release term of up to 3 years, when he is sentenced by United States District Judge Mae A. D’Agostino on October 26, 2020. 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 is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.  

SYRACUSE, NEW YORK – Daitwaun Fair, age 33, of Syracuse, was sentenced today to serve 102 months (eight and one-half years) in prison in connection with his convictions for conspiracy to distribute and possess with intent to distribute cocaine and cocaine base (“crack cocaine”), possession with intent to distribute cocaine, and maintaining a drug involved premises, announced United States Attorney Grant C. Jaquith; Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division; Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); New York State Police Superintendent Keith Corlett; Sheriff Eugene Conway, Onondaga County Sheriff’s Office; and William J. Fitzpatrick, Onondaga County District Attorney.

The defendant was also ordered to serve a four-year term of supervised release following his release from prison, and ordered to forfeit $112,500.00 in proceeds from his drug trafficking activity.

In imposing sentence, the Court found that Fair and his coconspirators were responsible for distributing between 3.5 and 5 kilograms of cocaine in the Syracuse area from July to September 2018. The Court also found that Fair was the organizer of the drug trafficking operation, which included 12 other coconspirators, all of whom have previously pled guilty.

This case was investigated by the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the New York State Police, the Onondaga County Sheriff’s Office, and the Onondaga County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Nicolas Commandeur.

 

 

SYRACUSE, NEW YORK – Jamal Hassan, age 42, of Liverpool, New York, and Saddam Hassan, age 39, of East Syracuse, New York, pled guilty yesterday to conspiracy to traffic in contraband cigarettes, announced United States Attorney Grant C. Jaquith.  Jamal Hassan also pled guilty to one count of a money laundering conspiracy. 

“Contraband cigarette dealers cheat state and local governments of tax revenue, and that lost revenue undercuts vital government programs,” said U.S. Attorney Grant C. Jaquith.  “These illegal sales also put honest businesses at a disadvantage.  Jamal and Saddam Hassan will now be held accountable for their efforts to line their pockets with unpaid taxes including forfeiture of $400,000.”

“Illicit cigarette smuggling is a highly profitable crime that steals from the taxpayer and funds other criminal activity," said Kevin Kelly, HSI Buffalo special agent in charge. “HSI, with our law enforcement partners, is committed to dismantling these criminal organizations that exploit our borders for profit.” 

New York State Commissioner of Taxation and Finance Michael Schmidt said, “When individuals knowingly sidestep their tax obligation everyone suffers. These blatant acts rob the local community of funding for valuable public programs and services in addition to placing honest business owners at a massive disadvantage. We’ll continue to work with law enforcement, from the federal level on down to ensure those responsible are held accountable.”

As part of their guilty pleas, the Hassan brothers admitted that they conspired to possess, sell, distribute, and purchase contraband cigarettes.  During searches at their residence and at a storage facility rented by Jamal Hassan and used by Saddam Hassan, law enforcement officers seized over 250,000 contraband cigarettes and over 760 counterfeit New York State tax stamps.  The Hassan brothers admitted that they sold the contraband cigarettes to markets and delis in the Syracuse area.  Jamal Hassan faces a maximum sentence of 20 years in prison, a fine of up to $500,000, and a term of 3 years of supervised release for his plea to conspiracy to commit money laundering.  Jamal Hassan and Saddam Hassan face a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release for their plea to conspiracy to traffic in contraband cigarettes. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case is being investigated by Homeland Security Investigation Buffalo Field Office; Internal Revenue Service Criminal Investigation; New York Police Department Intelligence Bureau-Strategic Intelligence Unit; New York State Department of Taxation and Finance; Oswego County Drug Task Force; and the Syracuse Police Department, and is being prosecuted by Assistant U.S. Attorney Tamara B. Thomson. 

SYRACUSE, NEW YORK – Richard Alvarado, age 26, of Oswego, New York, appeared yesterday in federal court on charges that he distributed and possessed child pornography.

The announcement was made by United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

According to a criminal complaint, on February 29, 2020, Alvarado distributed videos of child pornography through a group messaging application on his cellular phone, including video files depicting sexual conduct with children between 5 and 9 years old. An examination of his cellular telephone revealed that it contained numerous image and video files depicting child pornography. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.

If convicted, Alvarado faces at least 5 years and up to 20 years in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

Alvarado appeared today before United States Magistrate Judge Andrew T. Baxter, and was detained pending further proceedings.

This case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of the New York State Police, and is being prosecuted by Assistant U.S. Attorney Geoffrey Brown.

This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.

ALBANY, NEW YORK – William Y. Asiedu, age 27, of Albany, pled guilty today to wire fraud conspiracy, arising from his receipt of nearly $450,000 from the victims of romance scams.

The announcement was made by United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

In pleading guilty, Asiedu admitted that he agreed to receive the proceeds of a fraudulent scheme, and to distribute the proceeds to his co-conspirators in Ghana, in exchange for a 5 to 10 percent share for himself. 

Between October 2018 and May 2019, two victims, one from Arizona and the other from Switzerland, sent a total of $445,333 to bank accounts standing in the name of Community Youth Development Council Incorporated, an entity that Asiedu incorporated in New York.  Asiedu’s co-conspirators falsely led each victim to believe that she was sending the money for the benefit of a man she met through an online dating web site.  In fact, Asiedu’s co-conspirators posed as these fake lovers, and fraudulently induced the victims to send money to Asiedu. 

Asiedu faces up to 20 years in prison, and up to 3 years of supervised release, when Senior United States District Judge Thomas J. McAvoy sentences him on October 15, 2020.  Additionally, Asiedu has agreed to pay $445,333 in restitution, and to forfeit currency worth more than $10,000.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

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

SYRACUSE, NEW YORK – Isidro De Los Santos, age 33, of Syracuse pled guilty to conspiracy to distribute and possess with intent to distribute, and distribution of  heroin, fentanyl, acetyl fentanyl, and cocaine, announced United States Attorney Grant C. Jaquith, 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), 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

As part of his guilty plea, De Los Santos admitted that he conspired with others to possess with intent to distribute and distribute heroin, fentanyl, acetyl fentanyl, and cocaine from a location on Syracuse’s west side. In pleading guilty, De Los Santos admitted that on six (6) occasions between December 2018 and January 2019, he and co-conspirator Anthony Moreno sold drugs during an undercover operation conducted by ATF, DEA, and the Syracuse Police Department. On January 31, 2019, ATF Agents assisted by the United States Drug Enforcement Administration (DEA) and the Syracuse Police Department Special Investigations Division, executed a federal search warrant at Isidro De Los Santos’s residence and recovered over a pound (743 grams) of heroin mixed with fentanyl in two packages. A federal search warrant executed at the residence of Anthony Moreno on the same day resulted in the seizure of approximately 13 ounces of cocaine. A sentencing date will be set in the future. Anthony Moreno also pled guilty previously and is awaiting sentencing.

At sentencing De Los Santos faces a maximum sentence of life imprisonment, a minimum of ten years imprisonment, a fine of up to $10 million, and a term of post-imprisonment supervised release of at least 5 years and up to life A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case is being investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Drug Enforcement Administration (DEA), and the Syracuse Police Department Special Investigations Division, and is being prosecuted by Assistant U.S. Attorney Richard Southwick.

ALBANY, NEW YORK – Robert McAdam, age 47, of Rutland, Vermont, was arrested on Tuesday and charged with traveling across state lines with the intent to engage in a sexual act with a minor. 

The announcement was made by United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI). 

The charge in the complaint is merely an accusation.  The defendant is presumed innocent unless and until proven guilty. 

The criminal complaint alleges that, between February 7, 2019 and June 16, 2020, McAdam exchanged text messages with an undercover investigator who was posing as the adult father of a 15-year-old girl.  In these exchanges, McAdam discussed his interest in having sex with the girl.  In furtherance of this interest, McAdam traveled to New York earlier this month to meet with the undercover officer in person.  After this meeting, McAdam arranged to have sex with the minor in a hotel room in Queensbury, New York, to take place on June 16, 2020.    On this date, McAdam traveled from Vermont to a predetermined hotel room in Queensbury.  Upon arrival to the hotel, McAdam was encountered by law enforcement and arrested. 

McAdam initially appeared in court on Monday before United States Magistrate Judge Christian F. Hummel.  Following a second hearing held today, Judge Hummel ordered McAdam detained.

The charge filed against McAdam carries a maximum sentence of 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. 

This case is being investigated by the FBI and its Child Exploitation Task Force, including investigators with the New York State Police, and is being prosecuted by Assistant United States Attorney Rachel Williams. 

This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.  For more information about Project Safe Childhood, please visit https://www.justice.gov/psc/.

ALBANY, NEW YORK - Tyler C. King, age 31, of Dallas, Texas, pled guilty today to obstruction of justice for a scheme to falsify evidence during his federal criminal trial.

The announcement was made by United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his guilty plea today, King admitted to obstructing justice by falsifying evidence for use in his November 2019 trial in Albany.  The 5-day trial ended on November 8 with King being convicted of conspiracy to commit computer fraud, computer fraud, and aggravated identity theft in connection with his hacking of a New York-based technology company.  In court today, King admitted that he provided doctored evidence to his attorney that was then used during the trial, in an attempt to influence the trial’s outcome in his favor.

King faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years when he is sentenced by Chief United States District Judge Glenn T. Suddaby on October 6, 2020.  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.

King will be sentenced on August 11, 2020 in connection with his trial convictions.  He faces at least 2 years in prison for those convictions. 

This case was investigated by the FBI, and is being prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Joshua R. Rosenthal.

 

ALBANY, NEW YORK – Brian Northup, age 29, of Hudson, New York, was sentenced today to 42 months in prison for repeatedly accessing a child pornography web site available only through an anonymous Internet network.

The announcement was made by United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

United States District Judge Mae A. D’Agostino also ordered that Northup serve 10 years of post-release supervision, which will start after Northup is released from prison.  As a result of his conviction, Northup will be required to register as a sex offender upon his release from prison.

As part of his guilty plea on December 11, 2019, Northup admitted that in 2015, he accessed “Playpen,” an online forum through which registered users advertised, viewed, and distributed child pornography.  Images and videos shared through the site were highly categorized according to victim age and gender, and type of sexual activity depicted. 

Before the FBI seized the Playpen web site and shut it down, it was available only through an anonymous Internet network, which allowed users to access websites including Playpen without revealing their actual internet protocol address, geographic location, or other identifying information.  Northup admitted that he logged into Playpen in order to download child pornography content.

This case was investigated by the FBI with assistance from the Columbia County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.

This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.

For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/

SYRACUSE, NEW YORK – Chad Swartwood, age 41, of Castle Creek, New York, was sentenced today to serve 180 months’ imprisonment for receiving and attempting to receive child pornography, announced United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).

As part of his previous guilty plea, Swartwood admitted that from approximately December 2017 through December 2018, he operated several social media accounts on different platforms where he presented himself as a teenage female interested in online, sexual interactions with minor boys.  While impersonating a teenage female, Swartwood engaged people he believed to be minor boys in sexually explicit text conversations, sent sexually explicit images that he claimed to be of himself as a teenage female, and solicited sexually explicit images from minor boys.

Swartwood was previously convicted of the New York State felony of Sexual Abuse in the First Degree, an offense that involved a child less than 10 years of age.

In addition to the term of imprisonment, Senior United States District Judge Thomas J. McAvoy also imposed a 20-year term of supervised release, which will start after Swartwood is released from prison.  Swartwood also will be required to register as a sex offender upon his release from prison.

This case was investigated by Homeland Security Investigations (HSI) with assistance from the Broome County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian as part of Project Safe Childhood.  Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and is designed to marshal federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

 

 

ALBANY, NEW YORK – Jean Carlos Rivera-Perez, aka “Tego,” age 38, of the Bronx, New York, was sentenced today to 135 months in prison for conspiring to distribute heroin to a Schenectady-based drug trafficking organization.  The announcement was made by United States Attorney Grant C. Jaquith; Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and New York State Police Superintendent Keith M. Corlett. 

United States District Judge Mae A. D’Agostino also ordered Rivera-Perez to forfeit $89,017 in heroin proceeds and to serve 5 years of post-release supervision.

In pleading guilty, Rivera-Perez admitted to being a member of a drug trafficking organization that distributed a kilogram or more of heroin in Schenectady between 2017 and December 20, 2018.  Rivera-Perez was the organization’s supplier and, through a courier, regularly delivered hundreds of grams of heroin from the Bronx to Schenectady, and received thousands of dollars in return.  The heroin was then sold in personal-use amounts in and around Schenectady by other members of the organization. 

In sentencing Rivera Perez, who has “King of Dope” tattooed across his abdomen, Judge D’Agostino found that he obtained $89,017 in heroin proceeds by suppling the organization in Schenectady.

Rivera-Perez was charged with eight other defendants, all of whom have pled guilty, and are from the Bronx, Schenectady, and Amsterdam, New York. 

The following defendants have pled guilty and face the following sentences of imprisonment:

Name

Age

Minimum

Maximum

Esteban Ressy, aka “The Boss”

44

15 years

Life

Daniel Garcia, aka “Danny”

35

10 years

Life

Linette Marie Soto

26

10 years

Life

The following defendants were sentenced to the following terms of imprisonment:

Name

Age

Sentence

Gregory Insogna

46

5 years

Leamzy Soto Calderon, aka “Lee,” aka “Gordo”

29

57 months

Kirsten Jansen

28

18 months

Jose Cortes-Cruz, aka “Bimbo”

29

1 year and 1 day

Patrick McNamara

49

Time served

This case was investigated by HSI, the New York State Police, Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Amsterdam Police Department, and was prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck. 

ALBANY, NEW YORK – Anthony Hadden, age 27, of Modena, New York, appeared today in federal court on charges that he distributed and possessed child pornography.

The announcement was made by United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

According to a criminal complaint, between December 13, 2017 and July 31, 2018, Hadden distributed and received images and videos of child pornography through a group messaging application on his phone. An examination of his phone revealed that it contained numerous files depicting child pornography. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.

Hadden had a detention hearing today before United States Magistrate Judge Christian F. Hummel, who ordered him detained pending further proceedings.

If convicted, Hadden faces at least 5 years and up to 20 years in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

This case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of the New York State Police, and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.

This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.

ALBANY, NEW YORK – Bruce A. Wakker, age 65, of Syracuse, New York, was arrested yesterday and charged with attempting to entice or coerce a child.  

The announcement was made by United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI). 

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

The criminal complaint alleges that between November 15, 2019 and June 11, 2020, Wakker exchanged sexually explicit text messages with an undercover investigator who was posing as both a 9-year-old girl and the adult mother of the girl.  On several occasions, Wakker directly instructed the girl how to use various sexual objects and aids he purchased and mailed to her and her mother.  Earlier this month, Wakker discussed meeting the girl and her mother.  On June 11, Wakker traveled from his residence in Syracuse to New York Mills, New York, to meet with them.  Wakker was encountered by law enforcement and arrested. 

Wakker appeared today for an initial appearance before United States Magistrate Judge Daniel J. Stewart, who scheduled Wakker’s detention hearing for June 17.  Wakker will remain detained pending that hearing. 

This charge filed against Wakker carries a sentence of at least 10 years and up to life in prison, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. 

This case is being investigated by the FBI and its Child Exploitation Task Force, including investigators from the Colonie Police Department, and is being prosecuted by Assistant United States Attorneys Geoffrey Brown and Rachel Williams. 

Anyone who wants to provide law enforcement with information about the defendant should contact the FBI Albany Field Office at (518) 465-7551. 

This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorney’s Office, Prouect Safe Childgood marshals federal, state, and local resources to better located, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.  For more information about Project Safe Childhood, please visit https://www.justice.gov/psc/. 

ALBANY, NEW YORK – Scott Eckrote, age 36, of Granville, New York, appeared in federal court this week on charges that he distributed and possessed child pornography.

The announcement was made by United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

According to a criminal complaint, between January 28, 2020 and March 9, 2020, Eckrote distributed images of child pornography through a group messaging application on his phone. An examination of his phone revealed that it contained numerous files depicting child pornography, as well as text messages with another individual arranging for Eckrote to meet and have sex with a person he believed to be a 12-year-old girl. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.

Eckrote had a detention hearing yesterday before United States Magistrate Judge Christian F. Hummel, who ordered him detained pending further proceedings.

If convicted, Eckrote faces at least 5 years and up to 20 years in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

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

This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.

SYRACUSE, NEW YORK – Joseph W. Cromp, Sr., age 46, of Blossfield, New York, pled guilty today to possessing two firearms and over 100 rounds of ammunition as a convicted felon, announced United States Attorney Grant C. Jaquith, 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 New York State Police Superintendent Keith Corlett.

As part of his guilty plea today, Cromp admitted that he possessed a Rohm .22 caliber revolver and an Izhmash SAIGA 7.62 x 39 mm AK-47 style semiautomatic rifle, as well as 113 rounds of rifle ammunition that were seized pursuant to a search warrant by New York State Police from the defendant’s home in Blossfield, New York, on October 2, 2019. Cromp was previously convicted of the felony offense of Attempted Assault in the Second Degree in Oneida County Court on February 9, 2001. The search warrant followed a confrontation Cromp had with another man earlier in the evening.

At sentencing on October 27, 2020, Joseph W. Cromp, Sr. faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years.  As part of his guilty plea, Cromp will forfeit both firearms and all ammunition seized during the execution of the search warrant at his residence. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Richard Southwick, with assistance from the Oneida County District Attorney’s office.

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

ALBANY, NEW YORK – Ricky J. Bilyou, age 28, of Catskill, New York, pled guilty today to failing to register as a sex offender.

The announcement was made by United States Attorney Grant C. Jaquith and United States Marshal David McNulty.

Bilyou was convicted of child exploitation, in Clinton County, Indiana, in 2016. 

In pleading guilty today, Bilyou admitted that he was residing in Indiana in May 2019, when he traveled to Colorado.  After staying briefly in Colorado, in late September 2019, he took Amtrak trains from Colorado, to Chicago, Illinois, and finally to the Albany-Rensselaer station. He then began residing in Catskill, up until his arrest on March 18, 2020.  Bilyou knew that he was required to register as a sex offender in New York, and failed to do so.

Bilyou faces up to 10 years in prison, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life, when he is sentenced by United States District Judge Mae A. D’Agostino on October 14, 2020.  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 U.S. Marshals New York/New Jersey Regional Fugitive Task Force, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.

ALBANY, NEW YORK – Jahjuan Sabb, age 20, of Troy, New York, was arrested on Saturday and charged with threatening to attack the Troy Police Department during a demonstration that took place yesterday, June 7. 

The announcement was made by United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

Sabb is charged by criminal complaint with making threats to injure another person, and also with distributing information pertaining to the manufacture of an explosive or destructive device with the intent that the information be used for, or in furtherance of, a crime of violence. 

The complaint alleges that on June 5, Sabb made Facebook Live recordings in which he threatened to throw bricks at the Troy Police Department, Troy Police vehicles, and Troy City Hall, during a demonstration that took place yesterday in downtown Troy.  The complaint alleges that he also offered instructions on how to make firebombs with the intent that they be used during the demonstration.  The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.

Sabb, who was arrested Saturday, appeared today before United States Magistrate Judge Christian F. Hummel, and was ordered detained pending a detention hearing on June 10.

If convicted on the charges set forth in the complaint, he faces up to 20 years in prison.   A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case is being investigated by the FBI’s Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of state and local law enforcement agencies, including the Troy Police Department and New York State Police.  The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.

ALBANY, NEW YORK – Zaiqua Acosta, age 21, of Albany, was arrested on June 4 on the charge of unlawfully possessing a firearm as a felon. 

The announcement was made by United States Attorney Grant C. Jaquith; John B. Devito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Eric Hawkins, Chief of the Albany Police Department. 

The complaint alleges that Acosta, a felon, possessed a handgun in Albany on May 5, 2020.  The charge in the complaint is merely an accusation.  The defendant is presumed innocent unless and until proven guilty.

The charge carries a maximum sentence of 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.

Acosta was released on conditions following an initial appearance on June 5 before United States Magistrate Daniel J. Stewart.

This case is being investigated by the Albany Police Department and ATF, and is being prosecuted by Assistant U.S. Attorney Rachel L. Williams. 

 

SYRACUSE, NEW YORK – Alan Longmore, age 66, of Fayetteville, New York, pled guilty today before United States District Judge David N. Hurd to one count of receipt of child pornography and one count of possession of child pornography, announced United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).  Longmore, who remains detained pending his sentencing, faces at least 180 months of imprisonment and up to 210 months of imprisonment on the charges when he is sentenced on October 1, 2020 in Utica, New York.  The Court will also impose a term of supervised release of between five (5) years and life, and Longmore will be required to register as a sex offender.

As part of his guilty plea, Longmore admitted that he received images and videos of child pornography through a Peer-to-Peer file-sharing program.  A forensic review of his laptop computer revealed that it contained numerous video files depicting child pornography.  After being confronted about these charges, Longmore admitted to engaging in this conduct for years. In addition to these video and image files, the defendant also admitted to secretly recording and subsequently possessing video files depicting two minors engaged in sexually explicit conduct. 

Longmore’s case was investigated by Homeland Security Investigations, Syracuse Office with assistance from the NYSP Computer Crimes Unit, and the Manlius Police Department.  The case is being prosecuted by Assistant United States Attorney Geoffrey J. L. Brown.

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 – Margaret Vandyke, age 58, of Ellenville, New York, pled guilty today to her involvement in a drug trafficking organization that distributed crack cocaine and fentanyl in Ulster County. 

The announcement was made by United States Attorney Grant C. Jaquith; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations (HSI), New York; Ulster County Sheriff Juan Figueroa, whose office leads the Ulster Regional Gang Enforcement Narcotics Team (URGENT); Ulster County District Attorney David Clegg; New York State Police Superintendent Keith M. Corlett; and Village of Ellenville Police Chief Philip Mattracion.

Vandyke admitted that between September 2017 and December 2018, in cooperation with co-conspirators, she sold over 300 grams of crack cocaine on behalf of the organization in various locations around Ellenville. 

Vandyke faces at least 10 years and up to life in prison, a term of supervised release of at least 5 years and up to life, and a maximum fine of $10 million, when she is sentenced by United States District Judge Mae A. D’Agostino on October 2, 2020.  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 following defendants have also pled guilty in connection with the conspiracy, and were sentenced as follows:

Name

Age

Prison Term

Supervised Release Term

Iqwan Mandiville, aka “Qwan”

27

70 months

4 years

Randy Mandiville, aka “B-Murda”

31

42 months

6 years

The following defendants have also pled guilty in connection with the conspiracy, and face the following terms of imprisonment:

Name

Age

Minimum

Maximum

Luis Curet

35

5 years

40 years

Edwin Jorge

46

None

20 years

Jennifer McCombs, aka
“Jennifer Marks”

49

5 years

40 years

The following defendant still faces charges in this case, and faces the following terms of imprisonment if convicted on the drug conspiracy charge:

Name

Age

Minimum

Maximum

 

Antonio Naveo, aka “Gratto,” aka “Green Eyes”

39

10 years

Life

Naveo is also charged with unlawful possession of a Mossberg shotgun as a felon.  The charges against Naveo are merely accusations.  He is presumed innocent unless and until proven guilty.

This case is being investigated by HSI, the Ulster County Sheriff’s Office in conjunction with URGENT, an inter-agency taskforce targeting drug dealers and gang members in Ulster County, and the New York State Police, with assistance from the Village of Ellenville Police and the Ulster County District Attorney’s Office.  The case is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.

ALBANY, NEW YORK - The Department of Justice yesterday announced nearly $400 million in grant funding through the Department’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP).  The Attorney General announced funding awards to 596 law enforcement agencies across the nation, which allows those agencies to hire 2,732 additional full-time law enforcement professionals.  The awards announced today are inclusive of the $51 million announced in May as part of Operation Relentless Pursuit.  

“The Department of Justice is committed to providing the police chiefs and sheriffs of our great nation with needed resources, tools, and support.  The funding announced today will bolster their ranks and contribute to expanding community policing efforts nationwide,” said Attorney General William P. Barr.  “A law enforcement agency’s most valuable assets are the men and women who put their lives on the line every day in the name of protecting and serving their communities.

“It is more important than ever for police agencies and the communities they serve to stand together to prevent crime, address problems, and promote justice,” said United States Attorney for the Northern District of New York Grant C. Jaquith.  “These grants will help local departments hire officers who can do that.  With its demonstrated record of success, community policing has become  a bedrock principle of law enforcement strategy.”

The following law enforcement agencies in our district are receiving grant funding:

Agency

Amount

City of Binghamton Police Department

$250,000

Clinton County Sheriff’s Department

$500,000

Fulton County Sheriff’s Department

$125,000

Village of Owego Police Department

$797,815

The COPS Hiring Program is a competitive award program intended to reduce crime and advance public safety through community policing by providing direct funding for the hiring of career law enforcement officers. In addition to providing financial support for hiring, CHP provides funding to state, local, and tribal law enforcement to enhance local community policing strategies and tactics. In a changing economic climate, CHP funding helps law enforcement agencies maintain sufficient sworn personnel levels to promote safe communities.  Funding through this program had been on hold since the spring of 2018 due to a nationwide injunction that was lifted earlier this year.

CHP applicants were required to identify a specific crime and disorder problem focus area and explain how the funding will be used to implement community policing approaches to that problem focus area.  43 percent of the awards announced today will focus on violent crime, while the remainder of the awards will focus on a variety of issues including school-based policing to fund school resource officer positions, building trust and respect, and opioid education, prevention, and intervention.  The COPS Office received nearly 1,100 applications requesting more than 4,000 law enforcement positions. 

The complete list of awards can be found here. To learn more about CHP, please visit https://cops.usdoj.gov/chp. For additional information about the COPS Office, please visit www.cops.usdoj.gov.

ALBANY, NEW YORK – Nelson L. Gouge, age 47, of Glens Falls, New York, was sentenced today to 60 months in prison for bank robbery.

The announcement was made by United States Attorney Grant C. Jaquith; Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Warren County Sheriff Jim LaFarr.

Gouge pled guilty on October 7, 2019 as his trial was set to begin.  As part of his plea, Gouge admitted that on January 12, 2018, at approximately 1 p.m., he walked into the Trustco Bank branch on Route 9L in Lake George, New York, after attempting to conceal his face by use of a neck warmer.  Gouge went to a line where a bank employee was standing, put a hard, black case on the counter and handed the employee a note that read, “I Have a weapon this is a robbery Just put all the money in the bag think about you and your employees + friends.”  The bank employee did not have a drawer of money at her station, so she went to another station and took money out of the drawer.  The employee turned back to her station where Gouge was holding a bag.  The employee put money in the bag and Gouge left with $4,301.

The Warren County Sheriff’s Department quickly identified Gouge as a suspect and arrested him that night in South Glens Falls, New York.

U.S. District Judge Mae A. D’Agostino also sentenced Gouge to serve a 3-year term of supervised release, to begin after his term of imprisonment, and ordered Gouge to pay $2,587 in restitution, representing the amount of money not recovered by police.

This case was investigated by the Warren County Sheriff’s Department, New York State Police, Warren County District Attorney’s Office, and the FBI, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.

ALBANY, NEW YORK – Yang Sui, age 42, of Niskayuna, New York, pled guilty today to stealing trade secrets belonging to the General Electric Company.

The announcement was made by Assistant Attorney General for National Security John C. Demers; United States Attorney Grant C. Jaquith; and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his guilty plea, Sui admitted that between 2015 and 2017, he stole multiple electronic files pertaining to the research, design, and manufacture of silicon carbide MOSFETs (metal-oxide semiconductor field-effect transistors).  Silicon carbide MOSFETs are used in a variety of GE’s parts and products, including aviation equipment and wind turbines.

United States District Judge Mae A. D’Agostino will sentence Sui on September 22, 2020.  Sui faces up to 10 years in prison, a maximum fine of $250,000 or up to twice the value of the pecuniary gain to him from the crime, and up to 3 years of supervised release.  A 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 is being prosecuted by Assistant U.S. Attorney Rick Belliss and National Security Division Trial Attorney Matthew Chang. 

SYRACUSE, NEW YORK – Peter N. Allen, age 32, of East Stroudsburg, Pennsylvania, appeared today on a criminal complaint charging him with attempted enticement and coercion of a minor into a sexual act, announced United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

The complaint charges that Allen attempted to entice and coerce a person he believed to be an 11-year-old girl to engage in sexual acts with him.  In fact, the girl was portrayed by an undercover police officer, and Allen was arrested in Broome County after he drove there from Pennsylvania, expecting to meet the purported child at her home. 

The charge filed against Allen carries a maximum sentence of life in prison, with a mandatory minimum sentence of 10 years, a fine of up to $250,000, and a post-imprisonment term of supervised release of at least 5 years, and up to life. If convicted, Allen will also be required to register as a sex offender.  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 charge in the complaint is merely an accusation and the defendant is presumed innocent unless and until proven guilty

Allen appeared today in Binghamton, New York, before United States Magistrate Judge Miroslav Lovric and was ordered detained pending further proceedings.

This case is being investigated by the Federal Bureau of Investigation (FBI), and is being prosecuted by Assistant U.S. Attorney Sahar L. Amandolare.

SYRACUSE, NEW YORK – Robert Carville, age 57, formerly of Johnstown, New York, was ordered today to pay $369,693.58 in restitution to the United States Environmental Protection Agency (EPA) to reimburse it for its expenses incurred in removing hazardous waste that Carville stored without a permit at the former Carville National Leather Corporation building in Johnstown.

The announcement was made by United States Attorney Grant C. Jaquith and Tyler Amon, Special Agent in Charge of the EPA’s Criminal Investigation Division (EPA-CID) in New York.

Carville National Leather Corporation was a family owned tannery business that operated in Johnstown, New York, from 1976 until it closed in September 2013. Robert Carville owned and operated the business for approximately 10 years prior to its closure.

Carville pled guilty in December 2018 to one felony count of illegally storing hazardous waste without a permit. As part of his guilty plea, Carville admitted that as the owner and manager of the tannery, he was responsible for the materials stored there when it ceased operations. Following the closure of the business, Carville moved out of state, leaving hundreds of containers of hazardous chemicals inside the abandoned tannery building. Some of these were labeled as “corrosive,” “acidic,” and “hazardous.” Carville did not have a permit to store hazardous materials. Chemicals began leaking from the tannery building approximately two years after Carville abandoned it. In light of the tannery’s proximity to multiple residences and to a local creek, EPA deemed it a Superfund site and incurred substantial expenses in cleaning up and removing the chemicals over a several-month period.

On July 22, 2019, Senior United States District Judge Frederick J. Scullin, Jr. sentenced Carville to serve a 2-year term of probation. However, the Court deferred until today a determination on any restitution Carville owed EPA as part of the sentence. The parties presented evidence and testimony regarding restitution at an evidentiary hearing in December 2019. After reviewing that evidence and considering legal briefs filed by the parties, Senior District Judge Scullin today issued an order directing Carville, as part of his sentence, to pay $369,693.58 in restitution to EPA.

This case was investigated by the U.S. Environmental Protection Agency’s Criminal Investigation Division (EPA-CID), and it was prosecuted by Assistant U.S. Attorney Michael F. Perry.

SYRACUSE, NEW YORK – Dean Brooks, age 40, of Hammond, New York, pled guilty today to one felony count charging receipt of child pornography and one felony count charging possession of child pornography, announced United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI). 

As part of his guilty plea, Brooks admitted that he used his Yahoo e-mail account to request and receive seven sexually explicit images from a 14-year old Alabama girl during a two-week period in December 2017.  A subsequent federal search warrant executed at his residence uncovered an additional nine child pornography images that Brooks downloaded from the internet to his cellular telephone.

Brooks remains detained pending his sentencing on August 13, 2020, in Utica, New York. He faces a minimum of five years and up to 20 years of imprisonment for his receipt of child pornography, and up to 20 years of imprisonment for his possession of child pornography. Brooks also faces a fine of up to $250,000.00 per count of conviction, as well as a term of supervised release of between five (5) years and life, and he will be required to register as a sex offender. 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. Sentences of imprisonment may be concurrent or consecutive at the discretion of the Court

Brooks’s case was investigated by Homeland Security Investigations (HSI), and the Baldwin County (Alabama) Sheriff’s Office.  The case is being prosecuted by Assistant United States Attorney Geoffrey J. L. Brown.

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

SYRACUSE, NEW YORK - In honor of National Police Week, United States Attorney for the Northern District of New York Grant C. Jaquith recognizes the service and sacrifice of federal, state, local, and tribal law enforcement. The week will be observed Sunday, May 10 through Saturday, May 16, 2020.

“There is no more noble profession than serving as a police officer,” said Attorney General William P. Barr. “The men and women who protect our communities each day have not just devoted their lives to public service, they’ve taken an oath to give their lives in order to ensure our safety. And they do so not only in the face of hostility from those who reject our nation’s commitment to the rule of law, but also in the face of evolving adversity – such as an unprecedented global health pandemic. This week, I ask all Americans to join me in saying ‘thank you’ to our nation’s federal, state, local, and tribal law enforcement officers. Their devotion and sacrifice to our peace and security will not be taken for granted.”

U.S. Attorney Grant Jaquith said, “Night and day, on weekends and holidays, in good weather and bad, throughout the 30,000 square miles of the Northern District, local, state, tribal, and federal law enforcement officers are on the job protecting our families, friends, communities, and countryside. Our justice system works because of the dedication, courage, and integrity of law enforcement officers who risk their lives to help people and confront danger so the rest of us can stay safe.  It is a privilege to see first-hand their selfless service securing our rights and freedoms, solving crimes, and saving lives. Please join me in thanking them this week for their professionalism and vigilance.”  

In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices.  Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.  

Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe. This year the COVID-19 pandemic has underscored law enforcement officers’ courage and unwavering devotion to the communities they swore to serve.

Based on data collected and analyzed by the FBI’s Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 89 law enforcement officers died nationwide in the line of duty in 2019. These include.

Comprehensive data tables about these incidents and brief narratives describing most of the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2019.

The names of the fallen officers who have been added in 2020 to the wall at the National Law Enforcement Memorial will be read on Wednesday, May 13, 2020, during a Virtual Annual Candlelight Vigil. Because public events have been suspended as a result of COVID-19, the vigil will be livestreamed to the public at 8:00 pm (EDT).  The online event can be viewed at https://www.youtube.com/user/TheNLEOMF.

To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.

SYRACUSE, NEW YORK – James W. O’Brien, age 64, of Binghamton, New York, was sentenced yesterday to 220 months in prison for transporting, receiving, and possessing child pornography, announced United States Attorney Grant C. Jaquith; Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Superintendent Keith Corlett. 

In connection with his guilty plea on October 23, 2019, O’Brien admitted to uploading image files depicting child pornography on three separate occasions in June and July 2017. Search warrants executed on O’Brien’s electronic devices on May 31, 2018, revealed 650 images and 8 video files depicting the sexual exploitation of children.  These files included eight nude images of a female victim, whose identity is known to law enforcement, which O’Brien received through a text exchange with the victim.

The defendant was previously convicted in 2008 in Chenango County (New York) Court of Possessing a Sexual Performance by a Child less than 16 years of age, in violation of New York State Penal Law Section 263.16, and was sentenced to six (6) months in jail, to be followed by 10- year term of  probation.

Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will start after O’Brien is released from prison, and ordered him to pay restitution in the amount of $3,000 per victim for each of the three identified minors depicted in the images and videos that O’Brien transported, received, and possessed.  As a result of his conviction, O’Brien will be required to register as a sex offender upon his release from prison.

This case was investigated by the Federal Bureau of Investigation (FBI) and the New York State Police, and was prosecuted by Assistant U.S. Attorney Sahar L. Amandolare.

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 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 – Great Barrington, Massachusetts-based G.A. Blanco & Sons, Inc. (G.A. Blanco), has agreed to pay the United States $450,000 to resolve allegations that it caused a now defunct company, Essential Business Products, Inc. (Essential), to submit false claims for payment to the government in connection with small businesses set-aside contracts.  The announcement was made by United States Attorney Grant C. Jaquith, Department of Energy Inspector General Teri L. Donaldson, and Special Agent in Charge Leo Lamont of Naval Criminal Investigative Service, Northeast Field Office.

“We are committed to curbing fraud by those who contract with the federal government,” said United State Attorney Jaquith.  “Congress set aside contracting opportunities for small, disadvantaged businesses to help them grow.  We will continue to use the False Claims Act to hold unqualified companies accountable when they fraudulently take those opportunities from deserving businesses.”

G.A. Blanco was previously certified by the U.S. Small Business Administration (SBA) as a “small disadvantaged business,” meaning a small business owned and controlled by a socially and economically disadvantaged individual.  In May 2006, GAB graduated from that program for exceeding the income threshold, and became ineligible to obtain small business set-aside contracts.  The following year, G.A. Blanco approached one of its employees and suggested that he start a minority-owned small business to bid on set-aside contracts and that the employee use G.A. Blanco as a supplier.  He agreed.  G.A. Blanco helped its employee prepare the necessary paperwork to form Essential and obtain SBA certification.  In 2007, in connection with the SBA certification process, G.A. Blanco prepared a letter that falsely represented that its employee had resigned when, in reality, he continued to perform work for G.A. Blanco from 2007 through 2018.  G.A. Blanco also helped run Essential by setting the prices for Essential’s products, preparing its bids for government contracts, and maintaining signature authority for its bank account.  While, on paper, the two companies had separate offices; in reality, they worked out of shared office space.  Essential dissolved in September 2019.

DOE-OIG Inspector General Donaldson stated: “The Department of Energy’s Office of Inspector General remains committed to ensuring the integrity of the Department’s programs.  By diverting contracts and benefits intended for legitimate small disadvantaged businesses to an ineligible company, G.A. Blanco undercut the purpose of the Small Disadvantaged Business program.  We will continue to aggressively investigate these matters to protect the Department and the American taxpayers.  We appreciate the efforts of the U.S. Attorney’s Office and our other law enforcement partners.”

NCIS Special Agent in Charge Lamont said: “Fraud is not a victimless crime, and puts our armed forces at greater risk.  The American taxpayers are also victims as the flagrant and wrongful misuse of American taxpayer dollars not only erodes the public trust but also jeopardizes the Department of Navy’s efforts to obtain the best technology, services, and equipment for our brave men and women in uniform.  By conspiring to manipulate the contracting process through lies and deceit, those involved have drained significant resources from the Navy and have made it harder for legitimate companies that play by the rules.”

The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, DOE-OIG, and NCIS.  The Defense Criminal Investigative Service also assisted with the investigation.  The United States was represented by Assistant U.S. Attorney Adam J. Katz.

ALBANY, NEW YORK – Northland Associates, Inc. (Northland), its president James Tyler, The Diverse Construction Group, LLC (Diverse), and their bonding agent, Rose & Kiernan, Inc., have agreed to pay the United States $4,470,000 to resolve allegations that they fraudulently exploited contracting opportunities reserved for veteran-owned small businesses and small businesses operating in historically underutilized business zones (HUBZones), announced United States Attorney Grant C. Jaquith.

“We are committed to curtailing corruption by contractors who take opportunities set aside for small businesses owned and operated by injured veterans,” said United State Attorney Jaquith.  “We owe no less to those who sacrificed their own well-being for our safety and security.”

The United States has long used government contracting to promote small businesses owned by veterans who have service-connected disabilities and small businesses operating in economically distressed communities.  To be eligible for these contracts, an applicant must first qualify as a small business.  To qualify, the business must report to the U.S. Small Business Administration (SBA) its total income and employees along with the income and employees of any affiliates.  Generally, federal regulations provide that companies are affiliated when one business has the power to control another, or when a third party has the power to control both businesses.  When two companies are affiliated, and together exceed the income and employee limitations, neither will be eligible for small business set-aside contracts. 

The settlement with Northland, Diverse, and Tyler resolves allegations that those parties orchestrated a scheme to secure government set-aside contracts for Diverse and subcontracts for Diverse’s undisclosed affiliate, Northland.

Diverse was 51% owned by a service-disabled veteran and 49% owned by senior Northland officials.  Northland exerted influence over Diverse in various ways, including by maintaining a “bid calendar” with deadlines for upcoming Northland and Diverse contracting opportunities, staffing Diverse with former Northland employees, and funneling Diverse subcontracts to Northland for fulfilment.  Northland also handled various administrative duties for Diverse, including its accounting, expediting, estimating, purchasing, contracting, and clerical work.

Witnesses recounted moving boxes of files from Northland’s Liverpool, New York office (which was not located in a HUBZone) to Diverse’s office in Plessis, New York (which was located in a HUBZone), to make the Plessis office appear operational for government inspections.  When the SBA questioned the parties’ affiliation in 2009, Tyler and Diverse’s 51% owner submitted sworn declarations that misrepresented the relationship between the two companies.  Shortly thereafter, Diverse funneled more than $1 million to Northland through a Northland subsidiary in an effort to hide the parties’ affiliation.  Northland, Diverse, and Tyler admitted that their conduct violated federal regulations designed to encourage contract awards to service-disabled veteran-owned small businesses and small businesses operating in HUBzones.

Contractors bidding for federal government construction contracts are generally required to post performance bonds and payment bonds, and the bonding company is required to ensure that the contractor will perform the work.  Rose & Kiernan is an insurance and surety brokerage that acted as a bond broker for both Northland and Diverse on government construction projects.  David Cooper is a senior vice president with Rose & Kiernan.  The settlement with Rose & Kiernan and Cooper resolves allegations that those parties knew or should have known that Diverse and Northland were affiliated in violation of SBA regulations and that those companies took steps to hide their affiliation from the government to obtain and receive payment on government set-aside contracts.  Their decision to help Diverse obtain bonding was a critical action in furtherance of Diverse’s and Northland’s fraud on the government, and served as a substantial factor in causing Diverse to submit false claims for payment to the United States.

“Providing false information to gain access to SBA’s preferential contracting programs is fraught with peril and is especially egregious when it involves programs intended to benefit our nation’s service-disabled veterans,” said SBA Inspector General Hannibal “Mike” Ware.  “SBA-OIG will always aggressively pursue allegations of wrongdoing against individuals that provide false information.  I want to thank the Department of Justice for their dedication to this case resulting in this settlement.”

SBA’s Associate General Counsel for Litigation, Eric S. Benderson, said: “The result in this case is the product of enhanced efforts by federal agencies, such as the Small Business Administration working with the U.S. Attorney’s Office and other Federal law enforcement agencies, to detect procurement fraud, pursue those individuals and companies that engage in fraudulent activities and protect the integrity of the program.”

“Ensuring the integrity of the DoD procurement process is a top priority for the Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Leigh-Alistair Barzey, DCIS Northeast Field Office.  “The successful resolution of this case is the result of a joint investigative effort and demonstrates the DCIS’ commitment to work with the U.S. Attorney’s Office for the Northern District of New York and its law enforcement partners to identify and prosecute individuals and companies that seek to defraud U.S. government contracting programs.”

“The Department of Veterans Affairs Office of Inspector General remains vigilant in its efforts to bring individuals and companies to justice that misappropriate the opportunity afforded exclusively to our nation’s veterans to obtain these VA set-aside contracts,” said VA-OIG Special Agent in Charge Christopher F. Algieri.  “The VA-OIG will continue to protect the integrity of this important program, and thanks the U.S. Attorney’s Office and our law enforcement partners in this collaborative effort.”

“Those who contract with the United States government must do so fairly and honestly,” said Douglas Shoemaker, Regional Special Agent-in-Charge of the U.S. Department of Transportation, Office of Inspector General.  “Today’s settlement clearly signals that it is not acceptable for contractors to unscrupulously take advantage of Federal programs created to enhance opportunities for small disadvantaged businesses.”

As part of the settlement agreements, Northland will pay $2,125,000, Tyler will pay $2,125,000, Diverse will pay $100,000, and Rose & Kiernan has paid $120,000.

The government’s investigation was triggered by whistleblower lawsuits filed under the qui tam provisions of the False Claims Act, which allows private persons, known as “relators,” to file civil actions on behalf of the United States and share in any recovery.  The relators in this case will receive $1,000,000 of the settlement proceeds that the government receives from Northland, Diverse, and Tyler.  The cases are docketed with the U.S. District Court for the Northern District of New York under numbers 5:17-cv-036 and 5:18-cv-516.

The investigation and settlements were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, SBA-OIG, VA-OIG, DCIS, DOT-OIG, and the U.S. Army Criminal Investigation Command.  The United States was represented by Assistant U.S. Attorneys Adam J. Katz and Christopher R. Moran.

ALBANY, NEW YORK – Bryan P. Krynicki, age 56, of Pittsfield, Massachusetts, was arrested on Tuesday and charged with traveling across state lines with the intent to engage in a sexual act with a minor. 

The announcement was made by United States Attorney Grant C. Jaquith and Susan Ferensic, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI). 

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

The criminal complaint alleges that between February 7, 2020 and April 29, 2020, Krynicki exchanged text messages with an undercover investigator who was posing as a 14-year old boy.  Many of the messages sent by Krynicki involved Krynicki expressing his desire to engage in sexual acts with the boy.  In April 2020, Krynicki and the boy discussed plans in which Krynicki would travel from Massachusetts in order to meet the boy at a location in Nassau, New York. On the morning of April 29, 2020, Krynicki drove from Pittsfield to Nassau, where he was encountered by law enforcement officials and arrested. 

Krynicki appeared today for a detention hearing before United States Magistrate Judge Christian F. Hummel, who ordered him detained. 

The charge filed against Krynicki carries a maximum sentence of 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. 

This case is being investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant United States Attorney Rachel Williams. 

This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.  For more information about Project Safe Childhood, please visit https://www.justice.gov/psc/.

SYRACUSE, NEW YORK – Kenneth Houck, 45, of Syracuse, New York, was arraigned yesterday on an indictment charging him with possession of child pornography, announced United States Attorney Grant C. Jaquith and Susan Ferensic, Acting Special Agent in Charge, Albany Field Office, Federal Bureau of Investigation (FBI).

The indictment charges Kenneth Houck with possessing child pornography on a laptop computer. The indictment further alleges that Houck was previously convicted in federal court in Delaware for transporting child pornography. He was sentenced to serve 97 months in prison for that offense. Houck was serving a term of post-imprisonment supervised release in connection with his previous conviction when he allegedly committed the current offense. He has been detained without bail pending a trial, which has not yet been scheduled. Houck is also charged separately with violating his conditions of supervised release.

The charge filed against Houck carries a maximum sentence of 20 years in prison, a mandatory minimum sentence of 10 years, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. If Houck is found to have violated the terms of his supervised release, he faces up to two additional years in prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

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

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

SYRACUSE, NEW YORK – Shakespeare Cruz, age 45, of the Bronx, New York, was arraigned in federal court today on an indictment charging him with a cocaine and heroin distribution conspiracy, announced United States Attorney Grant C. Jaquith and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division.

The indictment alleges that Cruz conspired with others to distribute more than one kilogram of heroin and more than five kilograms of cocaine in Lewis County, New York, and elsewhere. The indictment further alleges that Cruz has two previous convictions for serious drug felonies. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.

If convicted of the charges, the defendant faces up to life imprisonment, and a mandatory minimum sentence of 25 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. The defendant is currently held in custody without bail pending a detention hearing.

This case is being investigated the DEA, and is being prosecuted by Assistant U.S. Attorney Andrew D. Beaty.

ALBANY, NEW YORK – Guaranteed Rate, Inc. has agreed to pay the United States $15.06 million to resolve allegations that it violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) by knowingly violating material program requirements when it originated and underwrote mortgages insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA), United States Attorney Grant C. Jaquith announced today.  Guaranteed Rate is headquartered in Chicago, Illinois, with branches across the United States, including in upstate New York.

“Lenders participating in mortgage programs backed by taxpayers must follow rules designed to protect both program integrity and homeowners,” said United States Attorney Jaquith.  “Today’s settlement holds Guaranteed Rate accountable for its past violations and reflects that it has strengthened its internal controls to ensure future compliance with Federal Housing Administration and Department of Veterans Affairs requirements.”

Participants in FHA insurance and VA guarantee programs, like Guaranteed Rate, have the authority to originate and underwrite mortgage loans without first having the government review the loans for compliance with the agency’s underwriting and origination requirements.  If an FHA insured or VA guaranteed loan defaults, the holder of the loan may submit a claim to the United States for certain losses.  Lenders are therefore required to follow FHA and VA rules designed to ensure that only mortgages that meet key credit and underwriting criteria are insured or guaranteed by the government. 

The settlement announced today resolves allegations that Guaranteed Rate knowingly failed to comply with material program rules that require lenders to maintain quality control programs to prevent and correct underwriting deficiencies, self-report any materially deficient loans that they identify, and ensure that the underwriting process is free from conflicts of interest.

As part of the settlement, Guaranteed Rate admitted that it failed to adhere to the applicable self-reporting requirements, that its FHA underwriters received commissions and gifts in violation of program rules, and that there were instances in which its government underwriters were instructed not to review documents that were relevant to the underwriting decision.  Guaranteed Rate further acknowledged that it certified and the government insured and guaranteed loans approved by Guaranteed Rate that were not eligible for FHA mortgage insurance or VA loan guarantees and that HUD and VA would not have insured or guaranteed the loans but for it actions.

While the covered conduct stretched back as far as January 2008, Guaranteed Rate took significant measures to stop the practices, both before and after being notified of the United States’ investigation.  It received credit for doing so in connection with the settlement.

“The department works with our partners at HUD and the VA to protect vital federal lending programs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “We will continue to protect American taxpayers and homebuyers by holding accountable FHA and VA lenders that knowingly and materially violate program requirements.”

“This case involved a pattern of serious, systemic and widespread violations under the False Claims Act,” said Rae Oliver Davis, Inspector General, U.S. Department of Housing and Urban Development.  “This recovery on behalf of FHA and the American taxpayer should serve as a stark reminder of the potential consequences of not adhering to HUD program rules and to the value of whistleblowers, in pursuing lenders that violate these rules.”

Chris Algieri, Special Agent in Charge, VA Office of Inspector General (OIG), stated: “It is vital that the VA and other federal lending programs are protected and those who violate or circumvent program rules and regulations are held accountable.  Today’s civil settlement reinforces VA-OIG’s commitment to enforcing the VA’s requirements for mortgage underwriting and originations to protect taxpayers and veteran homebuyers.”

This investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, which allow private persons, known as “relators,” to file civil actions on behalf of the government and share in any recovery.  The relator in this case, a former Guaranteed Rate employee, will receive $2,443,000 of the settlement proceeds.  The case is docketed with the U.S. District Court for the Northern District of New York under number 17-cv-637.

This matter was investigated by the U.S. Attorney’s Office for the Northern District of New York, the Department of Justice’s Civil Division, HUD-OIG, HUD, and VA-OIG.  The United States was represented by Assistant U.S. Attorney Adam J. Katz and Department of Justice Trial Attorney Christopher Reimer.

Guaranteed Rate Inc. has agreed to pay the United States $15.06 million to resolve allegations that it violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) by knowingly violating material program requirements when it originated and underwrote mortgages insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) or  guaranteed by the Department of Veterans Affairs (VA), the Department of Justice announced today.  Guaranteed Rate is headquartered in Chicago, Illinois, with branches across the United States.

“The department works with our partners at HUD and the VA to protect vital federal lending programs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “We will continue to protect American taxpayers and homebuyers by holding accountable FHA and VA lenders that knowingly and materially violate program requirements.”

“Lenders participating in mortgage programs backed by taxpayers must follow rules designed to protect both program integrity and homeowners,” said U.S. Attorney Grant C. Jaquith for the Northern District of New York.  “Today’s settlement holds Guaranteed Rate accountable for its past violations and reflects that it has strengthened its internal controls to ensure future compliance with Federal Housing Administration and Department of Veterans Affairs requirements.”

Participants in FHA insurance and VA guarantee programs, like Guaranteed Rate, have the authority to originate and underwrite mortgage loans without first having the government review the loans for compliance with the agency’s underwriting and origination requirements.  If an FHA insured or VA guaranteed loan defaults, the holder of the loan may submit a claim to the United States for certain losses.  Lenders are therefore required to follow FHA and VA rules designed to ensure that only mortgages that meet key credit and underwriting criteria are insured or guaranteed by the government. 

The settlement announced today resolves allegations that Guaranteed Rate knowingly failed to comply with material program rules that require lenders to maintain quality control programs to prevent and correct underwriting deficiencies, self-report any materially deficient loans that they identify, and ensure that the underwriting process is free from conflicts of interest.

As part of the settlement, Guaranteed Rate admitted that it failed to adhere to the applicable self-reporting requirements, that its FHA underwriters received commissions and gifts in violation of program rules, and that there were instances in which its government underwriters were instructed not to review documents that were relevant to the underwriting decision.  Guaranteed Rate further acknowledged that it certified and the government insured and guaranteed loans approved by Guaranteed Rate that were not eligible for FHA mortgage insurance or VA loan guarantees and that HUD and VA would not have insured or guaranteed the loans but for its actions.

While the covered conduct stretched back as far as January 2008, Guaranteed Rate took significant measures to stop the practices, both before and after being notified of the United States’ investigation.  It received credit for doing so in connection with the settlement. 

“This case involved a pattern of serious, systemic and widespread violations under the False Claims Act,” said Rae Oliver Davis, Inspector General, U.S. Department of Housing and Urban Development.  “This recovery on behalf of FHA and the American taxpayer should serve as a stark reminder of the potential consequences of not adhering to HUD program rules and to the value of whistleblowers, in pursuing lenders that violate these rules.”

“It is vital that the VA and other federal lending programs are protected and those who violate or circumvent program rules and regulations are held accountable,” said Chris Algieri, Special Agent in Charge, VA Office of Inspector General.  “Today’s civil settlement reinforces VA OIG’s commitment to enforcing the VA’s requirements for mortgage underwriting and originations to protect taxpayers and veteran homebuyers.”

The agreement resolves allegations brought by former Guaranteed Rate employee Anthonitte Carranza under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery.  The qui tam case is captioned United States ex rel. Anthonitte Carranza v. Guaranteed Rate, Inc., et al., No. 17-cv-637 (N.D.N.Y.).  As part of this settlement, Carranza will receive $2,443,000 as her share of the government’s recovery.

The investigation and settlement were the result of a coordinated effort among the Commercial Litigation Branch of the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Northern District of New York, HUD-OIG, HUD, and VA-OIG.  

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

ALBANY, NEW YORK – Victor Aguero Vasquez, age 45, of Granville, New York, was arraigned last week on an indictment charging that he conspired to distribute and possess with intent to distribute more than 5 kilograms of cocaine, and that he possessed firearms in furtherance of his drug distribution operation.  The announcement was made by United States Attorney Grant C. Jaquith and Ray Donovan, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division.

Vasquez was arraigned on April 21 in Albany before United States Magistrate Judge Daniel J. Stewart, and ordered detained pending a trial before Senior United States District Judge Frederick J. Scullin, Jr. According to the indictment and a previously filed criminal complaint, Vasquez worked with a co-conspirator to possess and distribute more than 5 kilograms of cocaine between November 2018 and September 2019 in Saratoga and Washington Counties. Vasquez also possessed additional cocaine, drug processing paraphernalia, and multiple firearms at his residence.

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

If convicted on all counts, Vasquez faces at least 15 years and up to life in prison, a fine of up to $10 million, and a term of supervised release of at least 5 years and up to life.  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.

Vasquez’s co-conspirator, Nestor Cordero-Hernandez, age 43, of Fort Ann, New York, pled guilty in March 2020 to conspiring to distribute more than 500 grams of cocaine and more than 50 grams of methamphetamine. He is scheduled to be sentenced on July 2.

This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.

ALBANY, NEW YORK – Gerwin Schalk, age 48, of Albany, was sentenced today to 1 year of probation for making false statements on conflict of interest certifications he submitted in connection with National Institutes of Health (NIH) grants.

The announcement was made by United States Attorney Grant C. Jaquith; New York State Inspector General Letizia Tagliafierro; and Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (DHHS-OIG).

United States District Judge Mae A. D’Agostino also ordered Schalk to pay $70,000 in restitution and perform 50 hours of community service. 

Schalk was a research scientist employed by the New York State Department of Health (DOH) in Albany, and served as deputy director of the National Center for Adaptive Neurotechnologies.

In connection with applying for and receiving federal research grants, Schalk was required to disclose any financial conflicts of interests to DOH and its affiliate, Health Research, Inc. (“HRI”), or certify that no conflicts existed. 

In pleading guilty, Schalk admitted that he knowingly and repeatedly lied about, and failed to disclose, payments he was receiving from a company whose products Schalk regularly purchased and used in connection with his research.  Schalk admitted that the company paid him at least $70,000, from July 2013 to April 10, 2019, and that he signed at least 15 conflict of interest forms during that time, never once disclosing a payment from the company as he was required to do. 

The company paying Schalk also billed HRI approximately $260,000 for sales of neurotechnology equipment to HRI, from 2012 through January 23, 2018, and was principally paid from federal grant money.

Schalk resigned from state employment as part of his plea agreement.

This case was investigated by the New York State Inspector General’s Office and the DHHS Office of Inspector General, and was prosecuted by Assistant U.S. Attorney Michael Barnett.

SYRACUSE, NEW YORK - Patrick M. Kain, age 33, of Norwich, New York, was arrested and charged today with sexually exploiting a child, announced United States Attorney Grant C. Jaquith and Susan Ferensic, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

The federal criminal complaint charges that in February 2019, Kain sexually exploited a child under the age of 6 for the purpose of producing visual depictions of that abuse. The charges in the pending federal complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.

If convicted of the charge alleged in the complaint, Kain faces a mandatory minimum prison sentence of 25 years, a maximum sentence of 50 years, 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 particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

Kain appeared today before United States Magistrate Judge Miroslav Lovric, and was detained pending further proceedings.

This case is being investigated by the FBI, the New York State Police, and the Chenango County District Attorney’s Office.  It is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian as part of Project Safe Childhood.  Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States 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 – Latrell Davis, age 19, of Brooklyn, New York, was sentenced today to time served (10 months in prison), to be followed by 180 days of home confinement, for stealing two firearms from Safeshoot, LLC, a federally licensed firearms dealer in Kingston, New York.

The announcement was made by United States Attorney Grant C. Jaquith 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 Davis to 3 years of supervised release, which is to begin with 180 days of home confinement.

Davis pled guilty on November 13, 2019.  As part of his plea, Davis admitted that, on February 27, 2019, Davis and his co-conspirator entered Safeshoot by breaking an exterior window. Davis and his co-conspirator then pried open a glass display case, removed two firearms, and left Safeshoot with the firearms.

The case was investigated by the ATF and the Town of Ulster Police Department, and was prosecuted by Assistant U.S. Attorney Ashlyn Miranda.

SYRACUSE, NEW YORK – Daniel J. Trammell, age 58, of Syracuse, was arrested and charged yesterday in federal court with assaulting a United States Postal Service employee, announced United States Attorney Grant C. Jaquith and Joseph Cronin, Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service.

The criminal complaint charging Trammell alleges that on April 21, 2020, he entered the Franklin Square Station Post Office in Syracuse, N.Y., shouted at Postal Service employees, and threatened to shoot his former letter carrier. Shortly thereafter, Trammell left the building. Approximately twenty minutes later, Trammell accosted his former letter carrier during his delivery of mail, and attempted to choke him. Trammell is detained in custody pending a hearing.

If convicted of the charges set forth in the complaint, Trammell faces up to 8 years in prison, a maximum fine of up $250,000, 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.

The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.

This case is being investigated by the U.S. Postal Inspection Service and the Syracuse Police Department, and is being prosecuted by Assistant U.S. Attorney Thomas Sutcliffe.

ALBANY, NEW YORK – Maria Utrera-Viveros, a/k/a Maria Utrara-Viveros, age 33, of Veracruz, Mexico, was sentenced today to time served (5 months in jail), for illegal re-entry into the United States.

The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.

As part of her guilty plea, Utrera-Viveros admitted that she was removed from the United States to Mexico on October 17, 2014.  Utrera-Viveros admitted that she returned to the United States on November 15, 2019 by illegally entering from Canada.  That night, she was found to be a passenger in a vehicle that Border Patrol stopped after it left the area of the international border at a high rate of speed.

Following her sentencing, Utrera-Viveros was remanded to the custody of the Department of Homeland Security, for removal proceedings.    

The case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Douglas Collyer.

ALBANY, NEW YORK - U.S. Attorney Grant C. Jaquith joins the Department of Justice and communities nationwide in observing National Crime Victims’ Rights Week, celebrating victims’ rights, protections and services throughout the week.  This year’s observance takes place April 19-25 and features the theme, “Seek Justice| Ensure Victims' Rights | Inspire Hope.”

“Every year, millions of Americans suffer the shock and trauma of criminal victimization, affecting their well-being and sense of security and dignity,” said Attorney General William P. Barr.  “To these victims, we affirm our unwavering commitment to supporting them in their hour of need.  We also commend the thousands of victim advocates and public safety professionals who labor tirelessly to secure victims’ rights and support survivors.”

“The interests of crime victims are at the very heart of our criminal justice system, and we remain steadfast in our commitment to vindicate their rights in each and every case,” said U.S. Attorney Jaquith.  “We honor those who serve and protect crime victims and help them to healing and hope, and pledge our support and perseverance in the pursuit of justice for all.”

“While we have made tremendous progress driving down crime and violence across the country, far too many Americans continue to suffer the pain and loss of criminal victimization,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General of the Office of Justice Programs.  “This week, we stand by these survivors and their families, and we pledge our ongoing support to the countless men and women who serve them with such extraordinary skill and compassion.”

Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs, and concerns in a prominent spot on the American agenda.  He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims.  President Trump and his administration have implemented historic levels of support for victim assistance and victim compensation.

Some 3.3 million Americans age 12 and older were victims of violent crime in 2018, according to the National Crime Victimization Survey.  The Office for Victims of Crime (OVC), part of the Justice Department’s Office of Justice Programs, supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory.  Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties and bond forfeitures.

During National Crime Victims’ Rights Week, victim advocacy organizations, community groups and state, local and tribal agencies traditionally host rallies, candlelight vigils, and other events to raise awareness of victims’ rights and services.  This year, many communities are organizing virtual gatherings and online public awareness campaigns.

This year’s commemoration began yesterday, 25 years to the day when a truck bomb exploded in front of the Alfred P. Murrah Federal Building in Oklahoma City, Oklahoma, taking the lives of 168 people, including 19 children, as well as injuring hundreds of others.  The mass murder remains the worst act of domestic terrorism in our nation’s history and led to the establishment of the Antiterrorism Emergency Reserve, which is administered by OVC, and has been used to provide direct services to hundreds of victims of mass violence and terrorism.

“Crime victims deserve to know that they have the encouragement and support of the American people,” said OVC Director Jessica E. Hart.  “I hope that citizens throughout the nation will take the opportunity this week to remember all victims of crime and their heroic stories of survival.  I encourage everyone to also find meaningful ways to express their appreciation to the many committed and compassionate service providers across the country who work tirelessly supporting these survivors.”

This year, the annual National Crime Victims’ Service Awards Ceremony will be postponed until a time when we can honor this year’s award recipients in person.  During the ceremony, OVC will present awards recognizing individuals and organizations from across the nation for their outstanding service on behalf of crime victims.  The awardees will be selected from public nominations in 11 categories, including federal service, special courage, public policy, and victim services.  Visit www.ovc.gov/gallery to learn more about past recipients.

For more information on how to create your own public campaigns to raise awareness about crime victims’ rights online and at events throughout the year, please visit: https://ovc.ncjrs.gov/ncvrw2020/overview.html.

ALBANY, NEW YORK – Anthony C. Armstrong, age 30, was sentenced today to 18 months in prison, to be followed by 3 years of supervised release, and ordered to pay $50,000 in restitution, for committing fraud and paying bribes in connection with Medicaid-funded transportation. 

The announcement was made by:

• United States Attorney Grant C. Jaquith;
• New York State Police Superintendent Keith M. Corlett;
• Susan Ferensic, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and
• New York State Inspector General Letizia Tagliafierro.

 

From 2015 through May 2018, Armstrong worked for and helped operate Ti Taxi Inc. (“Ti Taxi”), and worked for other Medicaid-funded transportation companies, all based in Essex County, New York.

In pleading guilty, Armstrong admitted that he committed a variety of frauds against Medicaid and the New York State Department of Health, including: billing Medicaid and receiving payment for trips where beneficiaries drove themselves to their own medical appointments, and falsifying the identities of the drivers for those trips; billing Medicaid and receiving payment for roundtrips to and from medical appointments when the beneficiaries took only one-way trips; and falsifying pick-up and drop-off locations, in order to increase the purported distances traveled and therefore be able to claim and receive higher Medicaid payments.

Armstrong also admitted that he paid kickbacks and bribes to Medicaid beneficiaries in order to induce those beneficiaries to schedule and keep scheduling medical transportation appointments.  Kickbacks included cash, phone cards, cigarettes and tobacco, and free goods at a convenience store in Ticonderoga.

This case was part of a multi-agency investigation into Medicaid fraud committed by the owners and operators of medical transportation companies based in Essex County.  The following defendants were charged and have previously pled guilty:

Name

Residence

Federal charge(s)

Sentence

Arshad Nazir

Ticonderoga

Conspiracy to commit health care fraud; conspiracy to pay bribes and kickbacks to Medicaid beneficiaries

1 year and 1 day in prison, and ordered to pay $400,000 in restitution

Waqas Nauman

Queensbury, New York

Health care fraud

Time served (25 days in jail), and ordered to pay $55,000 in restitution

Khurram Gondal, aka Khurram Choudhary

Ticonderoga

Health care fraud

 

Time served (25 days in jail), and ordered to pay $60,000 in restitution

Qaiser Gondal

Watervliet, New York

Conspiracy to commit health care fraud

Sentencing scheduled for May 12, 2020

Khalid Chadder

Ticonderoga

Conspiracy to commit health care fraud

Sentencing scheduled for June 9, 2020

These cases were investigated by the FBI, the New York State Police’s Special Investigations Unit, and the Office of the New York State Inspector General, and were prosecuted by Assistant U.S. Attorney Michael Barnett.

Several additional agencies assisted in this investigation, including the Essex County District Attorney’s Office; New York State Police-Troop B; the Office of the New York State Comptroller, Division of Investigations; New York State Attorney General’s Office, Medicaid Fraud Control Unit (MFCU); Essex County Sheriff’s Office; Homeland Security Investigations (HSI); the Office of Inspector General for the U.S. Department of Health and Human Services (HHS-OIG); and the New York State Department of Labor.

ALBANY, NEW YORK – John R. Elbayeh, aka Jean Elbayeh, age 44, of Albany, was sentenced today to time served (about 6 months in jail), to be followed by 2 years of supervised release, for stealing Apple iPhones, gold coins, small gold bars and other valuable items from mailed packages while employed as a postal clerk. 

The announcement was made by United States Attorney Grant C. Jaquith and Matthew Modafferi, Special Agent in Charge of the Northeast Area for the United States Postal Service (USPS), Office of the Inspector General (OIG).

Elbayeh worked as a lead mail processing clerk at the USPS Processing and Distribution Center in Albany, from December 2012 through December 2018.  He admitted that for approximately 2 years ending in December 2018, he stole valuable items from the mail, including iPhones and gold coins, which he pawned for a total of $50,362.22. 

Shortly after being interviewed by federal agents in December 2018, Elbayeh took a one-way flight to Beirut, Lebanon, and remained outside the United States until October 17, 2019.  On that date, USPS-OIG Agents arrested him at Dulles International Airport in Virginia, where Elbayeh had just arrived from a flight originating in Cairo, Egypt.  Elbayeh had been in custody since that time.

This case was investigated by the USPS, Office of the Inspector General, with assistance from the United States Postal Inspection Service, and was prosecuted by Assistant U.S. Attorney Michael Barnett.

SYRACUSE, NEW YORK – Christopher M. Perry, 36, of Cortland, New York, pled guilty today to a two-count information charging that he, together with Sarah R. Gates, conspired to sexually exploit, and sexually exploited, a child under five years of age for the purpose of producing images of the abuse.

The announcement was made by the United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).

As part of his guilty plea, Perry admitted that on several occasions in 2017, he and Sarah R. Gates performed sexual acts on the child while taking photographs of the abuse, using two cell phones.

Sarah R. Gates is charged by complaint with the same offenses, which are merely accusations, and she is presumed innocent unless and until proven guilty. 

Senior United States District Judge Thomas J. McAvoy will sentence Perry on August 18, 2020.  Each of the three crimes to which Christopher M. Perry pled guilty carries a mandatory minimum sentence of 15 years, and a maximum sentence of 30 years in prison, a fine of up to $250,000.00, and a term of post-imprisonment supervised release of at least 5 years and up to life.  He will also be required to register as a sex offender. 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. Sentences of imprisonment may be concurrent or consecutive at the discretion of the Court.

This case is being 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 is being prosecuted by Assistant U.S. Attorney Sahar L. Amandolare.

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

ALBANY, NEW YORK – Simon Pedro Vilchis-Rosas, age 46, who resided in Elmsford, New York, was sentenced today to time served (41 days in jail), for illegal re-entry into the United States.

The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).

As part of his guilty plea, Vilchis-Rosas, a citizen of Mexico, admitted that he was removed from the United States to Mexico on May 6, 2011.  Vilchis-Rosas admitted that he returned to the United States following the removal without the necessary government permission.  On February 28, 2020, ICE Officers arrested Vilchis-Rosas in Albany.  

Vilchis-Rosas was remanded to the custody of the Department of Homeland Security, for removal proceedings.     

This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.

ALBANY, NEW YORK –United States Attorney Grant C. Jaquith urged the public to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by emailing the NCDF e-mail address [email protected].

In coordination with the Department of Justice, Attorney General William Barr has directed U.S. Attorneys to prioritize the investigation and prosecution of Coronavirus fraud schemes. The NCDF Hotline can receive and enter complaints into a centralized system that can be accessed by all U.S. Attorneys, as well as Justice Department litigating and law enforcement components to identify, investigate and prosecute fraud schemes.

“The full law enforcement resources of the United States will be employed to investigate and prosecute fraud committed during this time of national crisis,” said United States Attorney Grant C. Jaquith.

Some examples of these schemes include:

• Individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud.
• Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention.
• Malicious websites and apps that appear to share Coronavirus-related information to gain and lock access to your devices until payment is received.
• Seeking donations for illegitimate or non-existent charitable organizations.
• Medical providers obtaining patient information for COVID-19 testing and then using that information to fraudulently bill for other tests and procedures.      

 

In a memorandum to U.S. Attorneys issued March 19, Deputy Attorney General Jeffrey Rosen also directed each U.S. Attorney to appoint a Coronavirus Fraud Coordinator to serve as the legal counsel for the federal judicial district on matters relating to the Coronavirus, direct the prosecution of Coronavirus-related crimes, and to conduct outreach and awareness activities. The Northern District of New York Coronavirus Fraud Coordinator is Assistant U.S. Attorney Joshua Rosenthal.

To find more about Department of Justice resources and information, please visit www.justice.gov/coronavirus.

SYRACUSE, NEW YORK – Michael Bartusek, age 57, of Fairport, New York, was arrested yesterday on an indictment alleging wire fraud and money laundering stemming from his work as Chief Financial Officer (“CFO”) for a business in New Hartford, New York.  The announcement was made by United States Attorney Grant C. Jaquith and Susan Ferensic, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

The indictment alleges that Bartusek was formerly the CFO of a company based in New Hartford, New York, and covertly diverted approximately $776,000 of the firm’s money for personal expenses and to make a high-risk investment in African diamonds for his own benefit.    

The charges filed against Bartusek carry a maximum sentence of 20 years in prison, a fine of up to $250,000 or twice the loss suffered by the 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.

Bartusek was arraigned yesterday in Syracuse, before United States Magistrate Judge Thérèse Wiley Dancks and was released pending a trial before Senior United States District Court Judge Thomas J. McAvoy.

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

This case is being investigated by the Federal Bureau of Investigation (FBI) and is being prosecuted by Assistant U.S. Attorneys Michael D. Gadarian and Nico Commandeur.

SYRACUSE, NEW YORK – Joseph Williams, age 31, of Watertown, New York, was sentenced on Wednesday to serve 160 months in prison for receiving and possessing child pornography, announced United States Attorney Grant C. Jaquith, Susan Ferensic, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Superintendent Keith Corlett.

As part of his earlier guilty plea, Williams admitted that he used the Kik Messenger application to trade child pornography with other Kik users in 2016.   Execution of search warrants on Williams’ computers in February 2018 revealed that he possessed 4,875 images and 2,052 video files depicting minors engaged in sexually explicit conduct, including depictions of the rape and sodomy of prepubescent children and toddlers.  In addition to the large number of files he possessed, other factors taken into account in sentencing included Williams’ admission that he took surreptitious pictures of children in the community and shared them with others on the Internet, and that he possessed a manual on how to find, groom, and sexually abuse children.

Senior United States District Judge Thomas J. McAvoy also imposed a 20-year term of supervised release, which will start after Williams is released from prison, ordered a $300 special assessment, and restitution in the amount of $3,000 per victim for each of 15 children depicted in the images and videos that Williams received, distributed, and possessed. As a result of his conviction, Williams will be required to register as a sex offender upon his release from prison.

This case was investigated by the Federal Bureau of Investigation (FBI) and the New York State Police.  The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.

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 – Robert Gibeault Jr., age 52, of Gansevoort, New York, was sentenced today to 96 months in prison for distributing and possessing child pornography.

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

United States District Judge Mae A. D’Agostino also sentenced Gibeault to a 15-year term of supervised release, to begin following his term of imprisonment.  Gibeault will also be required to register as a sex offender upon his release from prison

In connection with his guilty plea on October 18, 2019, Gibeault admitted to using file-sharing program BitTorrent to distribute child pornography to other BitTorrent users from May 2017 through September 2017.  When his residence was searched pursuant to a federal search warrant in November 2017, his laptop computer was found to contain approximately 400 video files and 100 image files depicting the sexual exploitation of children.  These included files that Gibeault had previously distributed over the BitTorrent network. 

This case was investigated by HSI, with assistance from the New York State Police and Colonie Police Department, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. 

For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.