Northern District of New York
Press releases recorded for this federal judicial district.
Bronx Man Charged with Drug ConspiracyRead the Press Release
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.
Guaranteed Rate to Pay $15 Million to Resolve Allegations it Knowingly Caused False Claims to Government Loan ProgramsRead the Press Release
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 to Pay $15 Million to Resolve Allegations It Knowingly Caused False Claims to Government Mortgage Loan ProgramsRead the Press Release
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.
Washington County Man Indicted on Cocaine Distribution ChargesRead the Press Release
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.
Research Scientist Sentenced for Making False Statements in Connection with NIH GrantsRead the Press Release
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.
Chenango County Man Arrested on Child Exploitation ChargesRead the Press Release
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.
Brooklyn Man Sentenced for Breaking into Kingston Store and Stealing FirearmsRead the Press Release
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 Man Charged with Assaulting a U.S. Postal EmployeeRead the Press Release
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.
Mexican Citizen Sentenced for Illegal Re-EntryRead the Press Release
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.
Department of Justice Commemorates National Crime Victims' Rights WeekRead the Press Release
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.
North Country Man Sentenced for Health Care Fraud, Paying KickbacksRead the Press Release
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.
Former Postal Employee Sentenced for Mail TheftRead the Press Release
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.
Cortland County Man Pleads Guilty to Child Sexual Exploitation CrimesRead the Press Release
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.
Mexican Citizen Sentenced for Illegal Re-entryRead the Press Release
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.
COVID-19 Fraud to Be ProsecutedRead the Press Release
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.
Rochester-Area Man Indicted for Fraud and Money LaunderingRead the Press Release
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.
Watertown Man Sentenced to 160 Months for Distribution, Receipt and Possession of Child PornographyRead the Press Release
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.
Saratoga County Man Sentenced to 96 Months on Child Pornography ChargesRead the Press Release
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/.
Gloversville Man Charged with Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK – John Morgan, age 31, of Gloversville, New York, was arrested yesterday and charged by criminal complaint with distributing child pornography.
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 complaint alleges that Morgan, using the name “ilikyoung,” distributed videos depicting the sexual exploitation of children via a phone-based application connected to the Internet, from March 11 to March 12, 2020.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Morgan initially appeared in court today, before United States Magistrate Judge Daniel J. Stewart. He was ordered detained pending a detention hearing on Monday.
If convicted, Morgan 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 $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Additionally, if convicted, Morgan would be required to register as a sex offender.
Anyone with information about this defendant is encouraged to call the FBI Albany Field Office at 518-465-7551.
The case is being investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States 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.
Orange County Men Arrested on Drug ChargesRead the Press Release
ALBANY, NEW YORK – Peter Mami, age 41, and James Taylor, age 32, both of Orange County, New York, were ordered detained yesterday after being arrested last week and charged with possessing with the intent to distribute 500 grams or more of cocaine.
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.
Both Mami and Taylor appeared yesterday before United States Magistrate Daniel J. Stewart and were ordered detained pending further proceedings. The criminal complaint filed against them alleges that, on March 2, 2020, they possessed with intent to distribute approximately two kilograms of cocaine. The charges in the complaint are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The charges filed against Mami and Taylor carry a minimum sentence of 5 years and a maximum sentence of 40 years in prison, a fine of up to $5 million, and a term of supervised release of at least 4 years and up to life. 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 DEA and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
Ontario Man Pleads Guilty to Transporting Illegal AliensRead the Press Release
ALBANY, NEW YORK – Kumanaraj Thurairajah, age 44, pled guilty yesterday to transporting illegal aliens, announced United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
Thurairajah, a Canadian citizen and a resident of Ontario, Canada, admitted that, on the morning of October 5, 2019, he was waiting in a parking lot outside of a hotel in Canton, NY. While he was waiting, a van dropped off six Indian nationals, all of whom had recently crossed into the United States illegally. The aliens entered Thurairajah’s van and they departed intending to travel to New York City. Thurairajah and his passengers were thereafter apprehended by United States Border Patrol Agents. As part of his guilty plea, Thurairajah admitted that he knew or recklessly disregarded the fact that the Indian nationals were unlawfully in the United States, and that he acted with the intent to further their unlawful presence.
Thurairajah faces up to 5 years in prison, a maximum fine of $250,000, and up to 3 years of supervised release when he is sentenced by Senior Judge Lawrence E. Kahn on July 8, 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 United States Border Patrol, and is being prosecuted by Assistant U.S. Attorney Thomas Sutcliffe.
Montgomery County Man Sentenced to 30 Years for Producing and Transporting Child PornographyRead the Press Release
ALBANY, NEW YORK – John D. Salisbury, age 49, of Hagaman, New York, was sentenced today to 360 months in prison for producing and transporting child pornography.
The announcement was made by 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 Keith M. Corlett, Superintendent of the New York State Police (NYSP).
Senior United States District Judge Norman A. Mordue also sentenced Salisbury to a lifetime term of supervised release, to begin following his term of imprisonment. Salisbury will also be required to register as a sex offender upon his release from prison
Salisbury pled guilty on June 21, 2019, to four counts of sexual exploitation of a child, and one count of transportation of child pornography.
In connection with his guilty plea, Salisbury admitted that on four occasions between October 2016 and February 2017, he used a hidden camera inside the bathroom of his residence to produce sexually explicit videos depicting a minor. Salisbury also admitted that he knowingly uploaded photos and videos depicting child pornography from a smartphone to an Internet-based email account.
In addition, the investigation determined that in November 2017, Salisbury exchanged text messages with an undercover investigator, in which he repeatedly expressed sexual interest in a child under his care whom he previously sexually exploited, and sent the investigator two photos of the child, including a screenshot from one of the videos filmed in the bathroom of his residence.
This case was investigated by the FBI and the New York State Police, with assistance from the Colonie Police Department, 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/.
Jury Convicts Repeat Offender of Distributing, Attempting to Receive, and Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Yesterday evening a jury rejected a defense of insanity and convicted Benjamin Jakes-Johnson, age 42, of New York City and Syracuse, New York, of distributing, attempting to receive, and possessing child pornography, after a five-day jury trial. The verdict was announced by 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.
The evidence at trial demonstrated that the defendant, who was convicted of possessing child pornography in 2008, used an online peer-to-peer file-sharing program to distribute and attempt to receive child pornography in December 2016. In March 2017, execution of a search warrant at a Syracuse apartment where the defendant regularly stayed established that he possessed child pornography on a thumb drive recovered there. The defendant traded child pornography from hotels, hoping that by using the hotels’ Wi-Fi connections he could conceal his online activity. He also possessed child pornography at the Syracuse apartment leased by his family’s business because he believed that federal Probation Officers would not search that location because he reported to them that he was staying at his parents’ home or other locations.
During trial, Jakes-Johnson claimed that, although he was not insane at the time he first possessed child pornography in 2008, he was insane at the time he committed the offenses in 2016 and 2017 because of post-traumatic stress disorder (PTSD). Jakes-Johnson suggested he had PTSD from abuse he suffered as a child that was exacerbated by abuse he claimed to have experienced while serving a sentence in federal prison from his first child pornography conviction. In addition to both defense and government expert witnesses who testified about the defendant’s mental state, the jury heard a recorded interview between Jakes-Johnson and law enforcement officers on the day of his arrest. During the interview, he advised that he understood what he was facing and knew what was going on. During that same interview, Jakes-Johnson admitted the offense conduct and displayed an understanding of the potential penalties he could face as a repeat offender.
Jakes-Johnson is scheduled to be sentenced on July 15, 2020 in Binghamton, New York by Senior United States District Judge Thomas J. McAvoy. At sentencing, he faces a mandatory minimum term of 15 years and a maximum term of imprisonment of 40 years for his distribution and attempt to receive child pornography. He faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of 20 years for his possession of child pornography. A defendant’s sentence is imposed by a judge based on the particular statute(s) the defendant violated, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the Federal Bureau of Investigation (FBI) and the New York State Police, and was prosecuted by Assistant U.S. Attorneys Geoffrey J.L. Brown and Michael D. Gadarian.
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/.
Former Registered Nurse Receives 30 Months for Distribution of Opioids, Health Care Fraud, Aggravated Identity Theft, and Obstruction of JusticeRead the Press Release
ALBANY, NEW YORK – Sarah Brown, age 42, of Akra, Greene County, New York, was sentenced today to 30 months in prison for unlawfully distributing opioids, for impersonating patients of a co-conspirator and defrauding insurance companies as part of the opioids distribution scheme, and for attempting to obstruct the investigation into her criminal activities.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division.
As part of her September 4, 2019 guilty plea, Brown, a former registered nurse, admitted that between 2015 and 2017, she worked with a co-conspirator, Dr. Myra Mabry, to obtain prescriptions for oxycodone, morphine, and hydromorphone, for no legitimate medical purpose, by impersonating Mabry’s patients at pharmacies, knowing that health care benefit programs would pay the cost of the drugs.
Brown also admitted that she attempted to obstruct a federal investigation by testifying falsely before a federal grand jury that she was blackmailing Mabry into providing the prescriptions. As Brown admitted in her guilty plea, that was a lie, because Mabry was not the subject of an extortionate scheme, and was a willing member of the conspiracy to distribute opioids for no legitimate medical purpose. Brown admitted that Mabry agreed to pay Brown for the false testimony in the hope of minimizing Mabry’s criminal exposure and keeping her medical license.
United States District Judge Mae A. D’Agostino also sentenced Brown to 3 years of supervised release, to be served following her release from prison.
Mabry, age 50, of Catskill, New York, pled guilty to conspiring to distribute controlled substances, health care fraud, aggravated identity theft, and obstruction of justice. She was sentenced to 54 months in prison earlier this month.
This case was investigated by the DEA, with assistance from the New York Bureau of Narcotic Enforcement, and was prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Albany Man Pleads Guilty to Armed Bank Robbery and Firearms Charges for Two Capital Region Armed Bank RobberiesRead the Press Release
ALBANY, NEW YORK – Christopher J. Cohn, a/k/a “Wolf,” age 26, of Albany, pled guilty today to a four-count superseding indictment charging armed bank robbery, firearms, and conspiracy crimes in connection with two February 2019 armed bank robberies.
The announcement was made by 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); Keith M. Corlett, Superintendent of the New York State Police (NYSP); Chief Eric Hawkins of the Albany Police Department (APD); and Chief David Keevern of the Town of North Greenbush Police Department.
As part of his guilty plea, Cohn admitted to participating in two armed robberies. On February 6, 2019, Cohn and another man pulled up to an Albany Trustco Bank branch, where Cohn declared he was about to “go do this,” meaning that he planned to rob the bank. Cohn and his accomplice then entered the bank wearing ski masks. In the bank, Cohn’s accomplice displayed a gun, and both men threatened to kill the bank’s employees, who surrendered approximately $150,000 to the pair.
On the morning of February 26, 2019, Cohn and the same accomplice entered an M&T Bank branch in North Greenbush, each wearing a ski mask and brandishing a gun. In the course of the robbery, Cohn fired multiple shots, including one that grazed a bank employee. Law enforcement tracked Cohn, his accomplice, and their getaway driver to an Albany motel using a GPS device placed in the stolen money by a member of the bank’s staff. Cohn was apprehended by officers with more than $10,000 in cash and wearing red sneakers matching those captured by the bank’s surveillance cameras during the robbery. Cohn’s accomplice was arrested in the motel’s lobby, where officers found him with several bags containing approximately $3,800 in cash along with ski masks matching those worn by the robbers.
Cohn has been in custody since February 26, 2019.
Cohn faces at least 20 years and up to life in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 5 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Sentencing is scheduled for July 8, 2020 before Senior United States District Judge Lawrence E. Kahn.
This case was investigated by the FBI, the NYSP, the Town of North Greenbush Police Department, APD, and the Albany County Sheriff’s Office, with the assistance of the Rensselaer County District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorneys Joshua R. Rosenthal and Wayne A. Myers.
Upstate New York Businessman Pleads Guilty to Wire Fraud, Pays More Than $700,000 to Resolve False Claims Act LiabilityRead the Press Release
ALBANY, NEW YORK – Daren Arakelian, age 52, of Rensselaer, New York, pled guilty today to wire fraud for a scheme to import Chinese goods into the United States and then causing his company, Great 4 Image, Inc., to deceptively market and sell those goods to federal agencies as U.S.-made. Arakelian has also agreed to pay $702,000, plus interest, to the United States to resolve his civil liability for his submission of false claims for payment to the federal government.
The announcement was made by United States Attorney Grant C. Jaquith; Leigh-Alistair Barzey, Special Agent in Charge, Defense Criminal Investigative Service, Northeast Field Office; Joseph Dattoria, Special Agent in Charge of the General Service Administration, Office of the Inspector General; and Julio Santana, Acting Special Agent in Charge of the Washington Regional Office of the Department of Homeland Security, Office of the Inspector General.
“Daren Arakelian bilked the United States by telling officials that his products were made in America when they were actually made in China,” said United States Attorney Grant C. Jaquith. “We will continue to use the False Claims Act and the wire fraud statute to hold unscrupulous and greedy contractors accountable, and to make sure our nation gets the American made goods it pays for.”
Arakelian owned and operated Great 4 Image, a company that contracted with various federal agencies to produce backpacks, duffle bags, cinch bags, hydration packs, t-shirts and individual suspension trainers. Each of his company’s contracts required Great 4 Image to comply with the Buy American Act and/or the Trade Agreements Act, laws that Congress enacted for the purposes of promoting the United States’ trade interests.
The Buy American Act restricts the federal government’s purchase of goods that are not domestic end products. The Trade Agreements Act establishes additional restrictions on purchases of products made outside the United States, and generally prohibits government contracting officials from purchasing products that are not entirely from, or substantially transformed in, the United States or a designated country. The Trade Agreements Act effectively waives the requirements of the Buy American Act for designated countries. China is not a designated country.
As part of the civil settlement and guilty plea, Arakelian admitted that he devised and implemented a scheme to defraud the federal government by causing Great 4 Image to import goods, including thousands of backpacks and suspension trainers, that were made in China into the United States and then passing them off as compliant with the Buy American Act and the Trade Agreements Act. In carrying out this scheme, Arakelian made various verbal and written statements to federal officials falsely claiming to have domestically manufactured the goods that he knowingly imported from China.
As a result of his conviction, Arakelian faces up to 20 years in prison, and a term of post-release supervision of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Sentencing is scheduled for July 14, 2020 before Chief U.S. District Judge Glenn T. Suddaby.
“The plea and settlement agreements announced today are the direct result of a joint effort by the Defense Criminal Investigative Service (DCIS), the U.S. Army Criminal Investigation Command, the U.S. General Services Administration, the U.S. Department of Homeland Security and the U.S. Attorney’s Office for the Northern District of New York,” said Leigh-Alistair Barzey, Special Agent-in-Charge, DCIS Northeast Field Office. “The DCIS will continue to work with its law enforcement partners to protect the U.S. Defense Department’s procurement process and ensure that U.S. Government contractors provide products and services in compliance with all contractual requirements.”
“The General Services Administration’s Office of Inspector General (GSA-OIG) is committed to protecting the integrity of the GSA’s procurement process and ensuring that government contractors comply with all applicable laws and regulations, including the Buy American Act and the Trade Agreements Act,” said Joseph Dattoria, Special Agent in Charge of GSA-OIG. “Today’s resolution is a testament to that commitment and should serve as a wake-up call to other contractors who may consider violating the Buy American Act and the Trade Agreements Act clauses of their contracts. We appreciate the collaborative efforts of the Department of Justice and our other law enforcement partners.”
“The Department of Homeland Security Office of Inspector General (DHS-OIG) will continue to ensure that companies doing business with DHS comply with the Buy American Act and/or the Trade Agreements Act,” said Julio Santana, Acting Special Agent in Charge of the Washington Field Office of DHS-OIG.
The investigation and resolution were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, GSA-OIG, DCIS, DHS-OIG, and the U.S. Army Criminal Investigative Command. The U.S. Department of the Treasury’s Office of Inspector General also provided investigative support. The civil case was handled by Assistant United States Attorney Adam J. Katz. The criminal case is being prosecuted by Assistant United States Attorney Joshua R. Rosenthal.
Troy Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Jake Alexander Cruse, age 33, of Troy, New York, pled guilty today to charges of distributing, transporting and receiving child pornography.
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).
As part of his guilty plea, Cruse admitted that, between July and October 2018, he used a phone equipped with various Internet-based instant messaging and file-sharing applications to trade child pornography with others. Cruse admitted to creating multiple fake social media accounts for the purposes of making money selling child pornography and trading for additional child pornography files. Cruse’s phone and various online accounts contained approximately 120 video files and 234 image files depicting child pornography.
Sentencing is scheduled for July 15, 2020 before United States District Judge Mae A. D’Agostino.
Cruse faces a minimum term of imprisonment of 5 years, and a maximum term of imprisonment of 20 years. The Court is also required to impose a term of supervised release of between 5 years and life, and Cruse 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
This case was investigated by the FBI, with assistance from the New York State Police, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
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.
Washington County Man Pleads Guilty to Cocaine and Methamphetamine Distribution ChargesRead the Press Release
ALBANY, NEW YORK – Nestor Cordero-Hernandez, age 43, of Fort Ann, New York, pled guilty on Friday to conspiring to distribute more than 500 grams of cocaine and more than 50 grams of methamphetamine. 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.
As part of his guilty plea, Cordero-Hernandez admitted that between September 2018 and November 2019, he agreed with others to participate in a drug trafficking conspiracy that distributed cocaine and methamphetamine. In furtherance of this drug trafficking conspiracy, he distributed over 600 grams of methamphetamine and 450 grams of cocaine in Fort Ann and elsewhere.
Sentencing is scheduled for July 2, 2020, at which time Cordero-Hernandez faces at least 10 years and up to life in prison, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
Catskill Physician Receives 54 Months in Prison for Distribution of Opioids, Health Care Fraud, Aggravated Identity Theft, and Obstruction of JusticeRead the Press Release
ALBANY, NEW YORK – Myra Mabry, age 50, of Catskill, New York, was sentenced today to 54 months in prison for unlawfully distributing opioids, for impersonating her patients and defrauding insurance companies as part of the opioids distribution scheme, and for attempting to obstruct the investigation into her criminal activities.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division.
As part of her August 5, 2019 guilty plea, Mabry, an obstetrician-gynecologist, admitted that between 2015 and 2017, she wrote prescriptions for oxycodone, morphine and hydromorphone to third parties, for no legitimate medical purpose, and then instructed a co-conspirator, Sarah Brown, to fill those prescriptions by impersonating the named recipients at pharmacies, knowing that the patients’ health care benefit programs would pay the costs.
United States Attorney Grant C. Jaquith stated: “Myra Mabry’s disgraceful conduct demonstrates that she has no business practicing medicine. She betrayed her patients, violated her Hippocratic Oath, and orchestrated an elaborate scheme to avoid accountability for her crimes by bribing someone else to take the fall for her. I commend the DEA for its excellent work in this case. The message here is clear: those who criminally violate their professional oaths will be arrested, prosecuted, and imprisoned.”
DEA Special Agent in Charge Ray Donovan stated: “This investigation ends with Myra Mabry’s sentence of over four years in prison, but clearly reinforces law enforcement’s commitment to weeding out opioid traffickers no matter what their profession. I applaud our partners at the U.S. Attorney’s Office for the Northern District of New York, the DEA’s Albany District Office’s Tactical Diversion Squad, and the New York Bureau of Narcotic Enforcement for their diligent work.”
In pleading guilty, Mabry also admitted that she attempted to obstruct a federal investigation into her activities by instructing Brown to testify before a federal grand jury, falsely, that Mabry was the subject of an extortionate scheme. In fact, Mabry was not the subject of an extortionate scheme, was complicit in the scheme to distribute opioids for no medical purpose, and agreed to pay Brown for false testimony in the hope of minimizing her criminal exposure and preserving her medical license.
Mabry surrendered her New York medical license after pleading guilty in August 2019, and has been unable to prescribe controlled substances since October 2017.
United States District Judge Mae A. D’Agostino also sentenced Mabry to 3 years of supervised release, to be served following her release from prison. In sentencing Mabry, Judge D’Agostino described Mabry’s conduct as “horrendous” and a “massive conspiracy in terms of the drugs” involved.
Brown, age 42, of Akra, New York, pled guilty on September 4, 2019 to conspiring to distribute controlled substances, health care fraud, aggravated identity theft, and obstruction of justice. Her sentencing is scheduled for March 11.
This case was investigated by the DEA, with assistance from the New York Bureau of Narcotic Enforcement, and was prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Columbia County Man Pleads Guilty to Possession of Unregistered SilencersRead the Press Release
ALBANY, NEW YORK – Thomas E. Ozga, age 31, of East Nassau, New York, pled guilty on Monday to possessing 10 homemade, unregistered silencers.
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).
On May 3, 2019, law enforcement officers searched Ozga’s home in East Nassau, and found 10 homemade silencers. As part of his plea, Ozga admitted that the silencers were his, he knew they were intended to diminish the sound of portable firearms, and he did not register any of the silencers with the National Firearms Registration and Transfer Record, as is required under the law.
Ozga will be sentenced on July 2 by United States District Judge Mae A. D’Agostino. Ozga faces up to 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by HSI, and is being prosecuted by Assistant U.S. Attorney Emily C. Powers.
Schenectady Man Charged with Attempted Child ExploitationRead the Press Release
ALBANY, NEW YORK – Keith Mussenden, age 36, of Schenectady, New York, was arrested last week and charged by criminal complaint for attempted sexual exploitation of a child.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The complaint alleges that, on or about the dates of June 1, 2019 through January 1, 2020, in Schenectady County, Mr. Mussenden attempted to produce sexually explicit images of a child victim.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Mussenden initially appeared in court on Tuesday, February 25, before United States Magistrate Judge Daniel J. Stewart. Following a detention hearing held on February 28, Judge Stewart ordered Mussenden detained.
If convicted, Mussenden faces at least 15 years and up to 30 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. Additionally, if convicted, Mussenden would be required to register as a sex offender.
The case is being investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant U.S. Attorneys Rachel L. Williams and Alicia G. Suarez.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States 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.
Herkimer County Woman Pleads Guilty to Stealing Social Security FundsRead the Press Release
SYRACUSE, NEW YORK – TammyLynn Sterling Barthelmess, age 62, of Little Falls, New York, pled guilty today to Conspiracy to Steal Government Funds and three Counts of Bank Fraud, announced United States Attorney Grant C. Jaquith and Special Agent in Charge John Grasso, Social Security Administration-Office of the Inspector General (“SSA-OIG”), New York Field Division.
As a part of her guilty plea today, Barthelmess admitted that she concealed the death of D.W., a tenant of hers in Little Falls, New York, who died in her home in 2006. Barthelmess and others caused the body of D.W. to remain hidden until it was discovered in Little Falls on May 1, 2013, in an advanced state of decomposition inside a dog-crate behind an unoccupied house owned by the defendant. Following the death of D.W., TammyLynn Sterling Barthelmess and her daughter, Shannon Hardy Sekel, used the checking account of D.W. to steal Social Security retirement benefits that were deposited in the account each month. The defendant wrote checks from D.W.’s checking account until the payments stopped in May 2013 following the discovery of D.W.’s remains. As a further part of her guilty plea today, Barthelmess admitted to making false statements to New York State Police Investigators who interviewed her following the discovery of D.W.s body.
Shannon Hardy Sekel previously pled guilty to Conspiracy to Steal Government Money and Bank Fraud. Her sentencing is not yet scheduled.
At sentencing on June 24, 2020, in Binghamton, New York, TammyLynn Sterling Barthelmess faces a sentence of up to 5 years imprisonment and a fine of up to $250,00.00 for Conspiracy to Steal Government Money. For her convictions for bank fraud, she faces a sentence of up to 30 years in prison and a fine of up to $1,000,000.00 for each of the three counts. The defendant may also be sentenced to serve up to 5 years of supervised release following any term of imprisonment. As part of her guilty plea today, Barthelmess agreed to pay $ 110,948.00 in restitution to the Social Security Administration.
This case was investigated by the United States Social Security Administration-Office of Inspector General (“SSA-OIG”), the New York State Police, and the City of Little Falls Police Department, and is being prosecuted by Assistant U.S. Attorneys Tamara B. Thomson and Richard R. Southwick.
Troy Felon Admits Possessing a Loaded Firearm in Furtherance of Drug TraffickingRead the Press Release
ALBANY, NEW YORK – Dyshawn Fisher, age 25, of Troy, New York, pled guilty today to possessing and intending to distribute marijuana, possessing a firearm as a felon, and possessing a firearm in furtherance of a drug trafficking crime.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Fisher, who has a prior felony conviction for attempted burglary, admitted that on June 5, 2018, while distributing marijuana out of a residence in Troy, he fired multiple shots down the street in order to protect his marijuana distribution operation. Fisher further admitted to possessing the marijuana that was recovered from inside the residence, and that he intended to sell that marijuana.
Fisher faces at least 5 years and up to life in prison, a fine of up to $250,000, and a term of post-release supervision of up to 5 years, when he is sentenced by Senior United States District Judge Gary L. Sharpe on June 18, 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 FBI and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
Montreal Man Sentenced for Attempting to Smuggle Firearms Parts into CanadaRead the Press Release
ALBANY, NEW YORK – Luc Emond, age 60, of Montreal, Canada, was sentenced today to 10 months in prison, and to pay a $3,000 fine, for attempting to smuggle pistol kits into Canada. 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).
In pleading guilty, Emond admitted to hiding the pistol kits in his car and attempting to smuggle them into Canada without first obtaining export licenses and completing other paperwork. Emond ordered the two pistol kits over the internet and had them delivered to him at a motel in Lake George, New York, to which he traveled from Canada in order to pick up the firearms kits and transport them to Canada.
This case was investigated by HSI, the Warren County Sheriff’s Office, and the Albany County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Emily C. Powers.
Three Charged in Federal Murder, Drug Conspiracy, and Firearm IndictmentRead the Press Release
SYRACUSE, NEW YORK – Kyle Leeper, age 36, of Palmyra, Pennsylvania, Ramon Nieves Cotto, age 28, of DeRuyter, New York, and Arlene Rodriguez, age 36, of Montebello, California, were named as defendants Thursday in a federal superseding indictment that includes charges of murder during a drug conspiracy, conspiracy to distribute and possess with intent to distribute 50 or more grams of methamphetamine, possession of 50 or more grams of methamphetamine with intent to distribute, and possession of a firearm by a convicted felon.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division; Cortland County Sheriff Mark E. Helms; and Barstow, California, Police Chief Albert Ramirez Jr.
The superseding indictment charges Kyle Leeper, aided and abetted by Ramon Nieves Cotto, with shooting and killing Robert Chavez on January 17, 2019, while engaging in a drug trafficking conspiracy involving 50 or more grams of methamphetamine. Also charged with drug conspiracy is Arlene Rodriguez. The indictment also charges Leeper and Rodriguez with possessing with intent to distribute 50 or more grams of methamphetamine on January 19, 2019, in Cortland County, New York. All three defendants also are charged, either as principals, accomplices, or co-conspirators, with using and carrying a firearm during and in relation to drug trafficking crimes, with Kyle Leeper further charged with discharging that firearm and murdering Chavez, and Ramon Nieves Cotto charged with aiding and abetting those crimes. Kyle Leeper also is charged with possession of a firearm as a felon on that same day.
If convicted of committing murder during a conspiracy to distribute and possess with intent to distribute more than 50 grams of methamphetamine, Kyle Leeper and Ramon Nieves Cotto face a minimum sentence of 20 years, and a maximum sentence of up to life imprisonment, or a sentence of death. For the charge of conspiracy to distribute and possess with intent to distribute 50 or more grams of methamphetamine, Kyle Leeper, Ramon Nieves Cotto and Arlene Rodriguez face a minimum of 10 years and a maximum sentence of 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. Kyle Leeper and Arlene Rodriguez face those same penalties on the charge of possessing with intent to distribute 50 or more grams of methamphetamine. On the charge of using and carrying a firearm in relation to a drug trafficking crime, Arlene Rodriguez faces a sentence of 5 years to life imprisonment, a $250,000 fine, and a 5-year supervised release term; based on additional allegations against them of discharge of the firearm and murder, for this charge Kyle Leeper and Ramon Nieves Cotto each face sentences of 10 years to life imprisonment, or death, a fine of $250,000, and a 5-year supervised release term. Kyle Leeper could be sentenced for up to 10 years imprisonment, a fine of up to $250,000.00 and up to a 3-year term of supervised release if convicted of possession of a firearm by a convicted felon.
The charges in the superseding indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Ramon Nieves Cotto was arrested and arraigned yesterday in Syracuse, before United States Magistrate Judge Andrew Baxter, and was ordered detained pending a bail hearing. Kyle Leeper and Arlene Rodriguez have been detained in federal custody since August 2019, when they were charged in an earlier federal indictment that alleged drug and firearms charges only. Kyle Leeper and Arlene Rodriguez were first arrested on January 19, 2019, by members of the Cortland County Sheriff’s Office. New York State Penal Law charges for possession of methamphetamine and firearms possession stemming from those arrests have been dismissed following the federal indictments.
This case is being investigated by the FBI, the DEA, the Cortland County Sheriff’s Office, and the City of Barstow, California Police Department, with assistance from the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New York State Police, the Cortland County (New York) District Attorney’s Office, and the San Bernardino County (California) District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys Steven D. Clymer, Richard R. Southwick, and Thomas R. Sutcliffe.
Rotterdam Man Arrested for Attempted Enticement and Coercion of a MinorRead the Press Release
ALBANY, NEW YORK –Randy Eignor, age 49, of Rotterdam, New York, appeared yesterday in federal court on a charge that he attempted to entice a minor into sexual activity.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to the criminal complaint, Eignor, attempted to entice and coerce an individual, whom he believed to be a 12-year-old girl, to engage in sex. After days of sexually explicit text messages with the person whom he believed to be a 12-year-old girl, Eignor arranged to meet in Colonie, where Eignor was confronted by law enforcement.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty. If convicted, Eignor faces at least 10 years and up to life in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Additionally, if convicted, Eignor would be required to register as a sex offender.
Eignor appeared today before United States Magistrate Judge Christian F. Hummel, who ordered him detained pending trial.
Anyone with information relevant to this investigation may contact the FBI’s Albany Field Office at (518) 431-4866.
This case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of state and local law enforcement agencies, including the New York State Police and the Colonie Police Department, and the Rotterdam Police Department, and is being prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States 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 Felon Charged with Unlawful Possession of a FirearmRead the Press Release
ALBANY, NEW YORK – Saul McDuffie, age 32, of Albany, was indicted yesterday on a charge of unlawfully possessing a firearm as a felon. The announcement was made by United States Attorney Grant C. Jaquith; Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and Chief Eric Hawkins of the Albany Police Department.
The indictment alleges that McDuffie, a felon, possessed a Taurus handgun in Albany on October 28, 2019. 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.
The charge in the indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
McDuffie was arraigned today in Albany before United States Magistrate Judge Christian F. Hummel, and detained pending a trial before Chief United States District Judge Glenn T. Suddaby.
This case is being investigated by the Albany Police Department and HSI, and is being prosecuted by Assistant U.S. Attorneys Cyrus P.W. Rieck and Rachel L. Williams.
Mexican Citizen, Previously Convicted of Negligent Homicide, Sentenced to 24 Months for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Daniel Antonio Salas-Miranda, age 41, and a citizen of Mexico, was sentenced today to 24 months in prison for illegally re-entering the United States.
The announcement was made by United States Attorney Grant C. Jaquith; Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO); and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Salas-Miranda admitted as part of his guilty plea that he is a citizen of Mexico, and that he was removed from the United States to Mexico on November 20, 2002, June 3, 2008 and again on June 18, 2008. On two occasions, Salas-Miranda had been arrested by immigration authorities in New Jersey and on one occasion, he was arrested by Border Patrol in Arizona after he entered the United States without inspection from Mexico.
On October 12, 2018, he was arrested by an ICE-ERO officer in Wilton, New York. New York State Police Officers had interviewed Salas-Miranda while conducting a homicide investigation. ICE checked the fingerprints of Salas-Miranda, discovered his prior removals, and detained him.
On April 9, 2019, Salas-Miranda was convicted in Saratoga County Court of criminal possession of a weapon and criminally negligent homicide, resulting in a sentence of 10 years in state prison. The Saratoga County prosecution stemmed from the possession and discharge of a firearm by Salas-Miranda at the Crest Inn, in Wilton, that caused the death of Michael Kornacki. United States District Judge Mae A. D’Agostino directed that the federal sentence she imposed today run consecutive to the New York State sentence. The 24-month federal sentence is the maximum permitted by law.
This case was investigated by ATF and ICE-ERO, and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Indian Citizen Sentenced to Prison for Alien TransportationRead the Press Release
UTICA, NEW YORK - Jaswinder Singh, age 30, and a citizen of India who most recently resided in Philadelphia, was sentenced today to 12 months in prison for knowingly transporting illegal aliens within the United States for the purpose of financial gain.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
Singh, who worked as an Uber driver, admitted that between January 1, 2019 and May 20, 2019, he picked up several aliens whom he knew had crossed illegally into the United States and transported them into the interior of the United States, in exchange for payment. On May 20, 2019, the day he was arrested for this offense, Singh drove to a location in St. Lawrence County, New York, to pick up two aliens – including a child – who had illegally crossed into the United States from Canada. The aliens paid Singh $2,200 after he picked them up.
Singh, who previously sought and received asylum in the United States, faces possible deportation as a result of this offense. United States District Judge David N. Hurd imposed a 2-year term of supervised release to begin after Singh is released from prison, in the event that Singh is not deported.
This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Michael F. Perry.
Utica Man Sentenced to 60 Months for Receipt and Possession of Child PornographyRead the Press Release
UTICA, NEW YORK – James Caruso, age 57, of Utica, was sentenced today to 60 months in prison for receiving 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).
As part of his guilty plea, Caruso admitted that he purchased and received images and videos of child pornography from a foreign website. A search of Caruso’s laptop computer revealed that he possessed 131 videos and 32 images depicting child pornography.
United States District Judge David. N. Hurd also imposed a 10-year term of supervised release, which will start after Caruso is released from prison. As a result of his conviction, Caruso will be required to register as a sex offender upon his release from prison.
Caruso’s case was investigated by HSI 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.
New Jersey Man Pleads Guilty to Crack Cocaine ChargeRead the Press Release
ALBANY, NEW YORK – Thomas Critten, age 30, of Jersey City, New Jersey, pled guilty today to possession with the intent to distribute 104 grams of crack cocaine in St. Lawrence County.
The announcement was made by United States Attorney Grant C. Jaquith and Sheriff Brooks J. Bigwarfe of St. Lawrence County.
As part of his guilty plea, Critten admitted that on December 20, 2018, he brought 104 grams of grams of crack cocaine to Massena, New York, with the intent of distributing the drugs to another individual. Critten admitted he had hidden two bags containing crack cocaine in his underwear, and that police discovered the drugs during a search incident to his arrest on an unrelated charge.
Chief United States District Judge Glenn T. Suddaby scheduled sentencing for June 24, 2020. Critten faces at least 5 years and up to 40 years in prison, and a term of post-imprisonment supervised release of at least 4 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the St. Lawrence County Drug Task Force, and was prosecuted by Assistant U.S. Attorney Troy Anderson.
Mexican Citizen Sentenced to 26 Months for Misuse of a Social Security Number and Aggravated Identity TheftRead the Press Release
SYRACUSE, NEW YORK – Alejandro Hernandez, a/k/a Eddy Wilkins, age 69, a citizen of Mexico, pled guilty and was sentenced yesterday to time served (26 months in prison) for misusing a Social Security Number and aggravated identity theft. He also was ordered to pay restitution of $127,739.32 to the Van Duyn Center for Rehabilitation and Nursing (“Van Duyn”) and $946,801.83 to the State University of New York Upstate Medical University Hospital (“SUNY-Upstate”). The announcement was made by United States Attorney Grant C. Jaquith, U.S. Immigration and Customs Enforcement (ICE), Buffalo Field Office Director of Operations Thomas Feeley, and Special Agent in Charge John Grasso of the New York Field Office of the Social Security Administration, Office of Inspector General.
In pleading guilty, Hernandez acknowledged that in October 2016, he was admitted as a patient to SUNY-Upstate in Syracuse. At that time, he identified himself as Eddy Wilkins and provided a Social Security Number. He knew at the time he made those statements that the Social Security Number that he presented was not his own and was assigned to another person. He made the false representations for purposes of billing for his medical expenses and in an effort to use the number to receive care at SUNY-Upstate. The defendant was later admitted to Van Duyn where he again provided a false name and Social Security Number for the purposes of billing for medical expenses and to obtain care. Hernandez was provided medical care by both facilities, resulting in unpaid charges of slightly more than $1 million.
Upon being sentenced yesterday, Hernandez was taken into custody by the Department of Homeland Security on an immigration detainer. He faces further civil proceedings in Immigration Court.
This case was investigated by the United States Department of Homeland Security – Immigration and Customs Enforcement and the Social Security Administration Office of Inspector General, and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
Ithaca Man Pleads Guilty to Filing False Income Tax ReturnsRead the Press Release
SYRACUSE, NEW YORK – William Harrell, age 58, of Ithaca, New York, pled guilty yesterday to filing a false tax return, announced United States Attorney Grant C. Jaquith and Jonathan Larsen, Special Agent in Charge of Internal Revenue Service-Criminal Investigation, New York Field Office.
Harrell was charged with one count of filing a false tax return in 2016. As part of his guilty plea, Harrell admitted that in October 2016, he filed a tax return for the year 2015 in which he knowingly and willfully underreported revenue he received through his construction and remodeling business. Harrell also admitted to underreporting revenue for the years 2012-14, and 2016. Harrell failed to report approximately $3,994,866 in income, as result of which he avoided paying $422,843 in federal incomes taxes, not including interest and penalties.
Harrell faces up to 3 years in prison, a maximum fine of up $250,000, and up to 1 year of supervised release, when he is sentenced by Senior United States District Judge Thomas J. McAvoy on June 16, 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 Internal Revenue Service-Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Thomas Sutcliffe.
Former Fort Drum Soldiers Plead Guilty to Burglarizing North Country Firearms DealersRead the Press Release
SYRACUSE, NEW YORK – Rian Patterson, age 23, and Devin Diggs, age 20, who were soldiers stationed at Fort Drum, New York, pled guilty yesterday to felony charges in connection with the burglaries of federally licensed firearms dealers in September 2019, announced 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).
In pleading guilty, Patterson and Diggs admitted to stealing firearms during the burglary of a licensed federal firearms dealer in Gouvernuer, New York, on September 14, 2019, and to the burglary of a second licensed federal firearms dealer in De Kalb Junction, New York, on September 29, 2019. As part of their guilty pleas, both men also admitted to knowingly possessing stolen firearms taken during those burglaries in their barracks at Fort Drum, in Le Ray, N.Y. Patterson also admitted that he knowingly possessed a firearm with an obliterated serial number.
Patterson and Diggs each face up to 10 years in prison, a maximum fine of up to $250,000, and up to 3 years of supervised release, when they are sentenced by Senior United States District Judge Thomas J. McAvoy on June 16, 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. Patterson and Diggs have already been discharged from the United States Army.
This case was investigated by the ATF, the U.S Army Criminal Investigation Division (ARMY CID), the St. Lawrence County Sheriff’s Department, and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Thomas Sutcliffe.
This case is brought pursuant to 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.
Oneida County Man Sentenced to 132 Months for Distribution and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – John Angwin, age 30, of Holland Patent, New York, was sentenced today to 132 months in prison for distributing and possessing child pornography. The announcement was made by United States Attorney Grant C. Jaquith; Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and New York State Police Superintendent Keith Corlett.
As part of his guilty plea, Angwin admitted that he used the Kik Messenger application to distribute child pornography to other Kik users. Agwin also used his iPhone to possess images and videos of child pornography he received via the internet. On Angwin’s iPhones he possessed over 1,500 images and over 150 video files depicting minors engaged in sexually explicit conduct. The images and videos included depictions of the rape and sodomy of prepubescent children and toddlers.
Chief United States District Judge Glenn T. Suddaby also imposed a 25-year term of supervised release, which will start after Angwin is released from prison, and ordered payment of $12,000 in restitution. As a result of his conviction, Angwin will be required to register as a sex offender upon his release from prison.
Angwin’s case was investigated by HSI Syracuse with assistance from the State Police Computer Crimes Unit, and the Oneida County Sheriff’s Office. 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.
Amsterdam Man Pleads Guilty to Heroin and Fentanyl ChargeRead the Press Release
ALBANY, NEW YORK – Edwin Rodriguez, a/k/a “Chaka,” age 31, of Amsterdam, New York, pled guilty today to possessing and intending to distribute more than 100 grams of heroin mixed with fentanyl. The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division; and City of Amsterdam Police Chief Gregory J. Culick. On May 15, 2019, Rodriguez was the subject of a traffic stop in Amsterdam. In pleading guilty, he admitted that he was stopped while driving to meet a drug customer to whom he planned to sell 100 grams of heroin, and that he was driving with a suspended license. As Amsterdam Police Officers were arresting Rodriguez for driving with a suspended license, a vacuum-sealed bag of powder fell out of his pant leg. The bag contained 100.3 grams of heroin mixed with fentanyl. Also on May 15, law enforcement executed a search warrant on Rodriguez’s Amsterdam residence. In the apartment’s kitchen, they found an empty bleach bottle, with a hidden compartment containing 1.78 grams of heroin mixed with fentanyl, which Rodriguez intended to sell. Rodriguez faces at least 5 years and up to 40 years in prison, and a term of post-imprisonment supervised release of at least 4 years and up to life, when United States District Judge Mae A. D’Agostino sentences him on June 15, 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 DEA and the Amsterdam Police Department, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.Owner of Essex County-Based Medical Transportation Company Admits Defrauding MedicaidRead the Press Release
ALBANY, NEW YORK – Khalid M. Chadder, age 50, of Ticonderoga, New York, pled guilty yesterday to conspiring to defraud Medicaid.
The announcement was made by:
- United States Attorney Grant C. Jaquith;
- New York State Police Superintendent Keith M. Corlett;
- James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and
- New York State Inspector General Letizia Tagliafierro.
Chadder operated Chadder Imports, Inc., d/b/a Adirondack Taxi and Limo, Inc. (“Adirondack Taxi”), a Medicaid-funded transportation company based in Ticonderoga.
Chadder admitted that from 2015 to 2018, he committed several 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; and billing Medicaid and receiving payment for roundtrips to and from medical appointments when the beneficiaries took only one-way trips with Adirondack Taxi.
Chadder faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years, when he is sentenced on June 9, 2020 by Senior United States District Judge Thomas J. McAvoy. 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. Chadder has also agreed to pay $200,000 in restitution.
Chadder is the last of 6 defendants to plead guilty to federal charges in connection with a multi-agency investigation into Medicaid fraud committed by the owners and operators of medical transportation companies based in Essex County. The following defendants 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 $450,000 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 March 11, 2020
Anthony Armstrong
Ticonderoga
Conspiracy to commit health care fraud; conspiracy to pay bribes and kickbacks to Medicaid beneficiaries
Sentencing scheduled for March 11, 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.
Minnesota Man Pleads Guilty to Conspiring with Michael Mann to Defraud Financing CompaniesRead the Press Release
ALBANY, NEW YORK – Luke E. Steiner, age 31, of Minnesota, pled guilty yesterday to conspiring with Michael T. Mann to defraud financing companies out of millions of dollars.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Steiner worked at Optum, a division of UnitedHealth Group Incorporated located in Eden Prairie, Minnesota. In pleading guilty, he admitted that between 2013 and September 2019, he conspired with Mann and others to fraudulently obtain millions of dollars in loans for Mann’s companies.
Steiner admitted that he worked with Mann to induce financing companies to loan money on the basis of fake invoices purporting to show payments owed by his employer, Optum, to Mann’s companies. Steiner’s role was to falsely represent to the financing companies that the fake invoices were valid and payable by Optum when, in fact, he knew that they were not. He admitted that the conspiracy caused a total of $12,968,505.22 in losses to two financing companies, one based in New York and the other in Colorado.
Steiner faces up to 20 years in prison, and up to 3 years of post-imprisonment supervised release, when he is sentenced by Senior United States District Judge Lawrence E. Kahn. He has agreed to entry of an order requiring him to pay $12,968,505.22 in restitution. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Mann, age 49, of Saratoga County, operated ValueWise Corporation and other companies based in Clifton Park, New York. He is charged with bank fraud. The charges in the criminal complaint against Mann are merely accusations. Mann is presumed innocent unless and until proven guilty.
These cases are being investigated by the FBI, and are being prosecuted by Assistant U.S. Attorneys Michael Barnett and Cyrus P.W. Rieck.
Hudson Man Sentenced to 120 Months for Crack Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Julan Morrison, aka “Weez,” age 38, of Hudson, New York, was sentenced today to 120 months in prison for his involvement in a crack cocaine distribution ring that operated in Columbia County.
The announcement was made by United States Attorney Grant C. Jaquith; Keith M. Corlett, Superintendent of the New York State Police; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Chief L. Edward Moore of the Hudson Police Department.
As part of his guilty plea, Morrison admitted that between August and December 2017, he was involved in a conspiracy to distribute crack cocaine in Columbia County. Morrison admitted that members of the conspiracy made weekly trips to New York City where they purchased hundreds of grams of powder cocaine, returned it to Hudson, converted it to crack cocaine, and then sold it to customers. Morrison admitted that the organization sold at least 464 grams of crack cocaine between August and December 2017.
Senior United States District Judge Thomas J. McAvoy also imposed a 5-year term of supervised release, to begin after Morrison’s release from prison.
This case was investigated by the New York State Police’s Special Investigations Unit, the FBI, and the Hudson Police Department, and was prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Joshua R. Rosenthal.
Essex County Man Sentenced to Prison for Health Care Fraud, Paying KickbacksRead the Press Release
ALBANY, NEW YORK – Arshad Nazir, age 55, of Ticonderoga, New York, was sentenced yesterday to 1 year and 1 day in prison, to be followed by 3 years of supervised release, for conspiring to defraud Medicaid, and conspiring to pay bribes and kickbacks to Medicaid beneficiaries who used his medical transportation service.
The announcement was made by:
- United States Attorney Grant C. Jaquith;
- James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI);
- New York State Police Superintendent Keith M. Corlett; and
- New York State Inspector General Letizia Tagliafierro.
Senior United States District Judge Thomas J. McAvoy also ordered Nazir to pay $450,000 in restitution, $50,000 of which Nazir paid immediately following his sentencing.
The sentencing was the result of a state and federal investigation into Medicaid fraud committed by the owners and operators of medical transportation companies based in Essex County.
Nazir operated Capital Medallion, Inc. d/b/a Avalanche Taxi Service (“Avalanche Taxi”), a Medicaid-funded transportation company based in Ticonderoga. The New York State Department of Health (“DOH”) paid Nazir’s company at least $2.45 million for Medicaid-funded transportation between 2014 and 2018.
As part of his plea on February 12, 2019, Nazir admitted that he committed a variety of frauds against Medicaid and DOH, 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 with Avalanche Taxi; 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.
Nazir also admitted that he agreed to pay kickbacks and bribes to Medicaid beneficiaries in order to get these beneficiaries to schedule and keep scheduling medical transportation appointments with Avalanche Taxi. Kickbacks included cash, cigarettes and tobacco, and free goods at Nazir’s convenience store in Ticonderoga.
This case was investigated by the FBI, the New York State Police’s Special Investigations Unit, and the Office of the New York State Inspector General, and was 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.