Northern District of New York

ALBANY, NEW YORK – Yvette Davila, age 34, of Oklahoma City, Oklahoma, was sentenced today to time served (23 days in jail), followed by a one-year period of supervised release, and to pay a fine of $1,000, for transporting two illegal aliens within 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.

On December 19, 2018, Davila drove to the international border near Trout River, New York, from Chelsea, Massachusetts, where she met with and picked up two illegal aliens from Mexico.  The aliens, Miguel Morales-Moreno and Cesar Ivan Almada-Velazquez, had avoided immigration inspection when they walked across the border east of the Trout River Port of Entry late on the night of December 19, 2018.   

Morales-Moreno and Almada-Velazquez walked to a spot south of the border where they waited for Davila.  After arriving at the border area the morning of December 20, 2018, Davila stopped and picked up Morales-Moreno and Almada-Velazquez.  Border Patrol Agents encountered Davila’s car parked on the side of Route 11 just east of Chateaugay, New York, where they arrested  Davila and her two passengers.

The passengers, Miguel Morales-Moreno, age 43, and Cesar Ivan Almada-Velazquez, age 38, citizens of Mexico, were convicted of the misdemeanor offense of entry without inspection by an alien on January 3, 2019 and each sentenced to 20 days in jail.    

This case was investigated by Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.

 

ALBANY, NEW YORK – Randy Mandiville, age 31, of Kerhonkson, New York, was sentenced today to 42 months in prison for his involvement in a drug trafficking organization in Ulster County that was dismantled and indicted in March 2019. 

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

As part of his plea, Mandiville admitted that between February and December 2018, in cooperation with co-conspirators, he sold at least 16.8 grams of crack cocaine on behalf of the organization in various locations around Ellenville. 

U.S. District Judge Mae A. D’Agostino also sentenced Mandiville to serve a 6-year term of supervised release upon his release from prison.

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

Name

Age

Minimum

Maximum

Luis Curet

34

5 years

40 years

Iqwan Mandiville

26

5 years

40 years

Edwin Jorge

46

None

20 years

The following defendants still face charges in this case, and face the following penalties:

Name

Age

Minimum

Maximum

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

38

10 years

Life

Margaret Vandyke

56

10 years

Life

Jennifer McCombs, aka
“Jennifer Marks”

49

5 years

40 years

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

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

ALBANY, NEW YORK – James Seeley, age 55, of Albany and Queensbury, New York, was sentenced today to 262 months in prison for attempted coercion and enticement of a minor.

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); and New York State Police Superintendent Keith M. Corlett.

Seeley was a sex offender as a result of a 2002 conviction, deviate sexual intercourse with another person less than 11 years old, for which he was sentenced to 7 years in state prison.  He also has a conviction for possessing child pornography.

As part of his guilty plea in federal court, Seeley admitted that in October 2018, he communicated with two undercover officers, including one posing as an 11-year-old girl.  Seeley admitted that he discussed his interest in engaging in various sex acts with someone he believed to be the 11-year-old girl and then went to a location in Queensbury to engage in sexual intercourse with her. 

United States District Judge Mae A. D’Agostino also ordered Seeley to serve a life term of supervised release following his release from prison.

This case was investigated by the FBI and the New York State Police, and was prosecuted by Assistant U.S. Attorney Katherine Kopita.

ALBANY, NEW YORK – John R. Elbayeh, aka Jean Elbayeh, age 44, of Albany, pled guilty today to 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 has been in custody since that time.

Elbayeh, who pled guilty to mail theft, faces up to 5 years in prison when United States District Judge Mae A. D’Agostino sentences him on April 17, 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 USPS, Office of the Inspector General, with assistance from the United States Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.

ALBANY, NEW YORK – Esteban Ressy, aka “The Boss,” age 44, of Puerto Rico and Schenectady, New York, pled guilty today to conspiring to traffic a kilogram or more of heroin.  Ressy was one of nine people indicted in January 2019 as part of law enforcement’s dismantling of a heroin distribution ring in Schenectady.  With Ressy’s plea, all nine defendants have pled guilty. 

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 M. Corlett. 

In pleading guilty, Ressy admitted to being a member of a drug-trafficking organization that distributed a kilogram or more of heroin in Schenectady between 2017 and December 20, 2018.  Ressy, who lived in both Puerto Rico and Schenectady, was the leader of the Schenectady faction of the organization and regularly obtained hundreds of grams of heroin from Jean Carlos Rivera-Perez, aka “Tego,” in the Bronx, New York.  Ressy paid thousands of dollars in cash for the heroin, which was packaged for sale by other members of the organization, including Leamzy Soto Calderon, Linette Marie Soto, and Kristen Jansen, and sold in and around Schenectady.  

On December 20, 2018, law enforcement executed search warrants at Linett Soto’s residence in Schenectady, Soto Calderon and Jansen’s residence in Schenectady, and Rivera-Perez’ residence in the Bronx, and seized, among other items, approximately 268 grams of heroin, cutting agent, heroin processing materials, and $11,066 in cash. 

United States Attorney Grant C. Jaquith stated: “Ressy, Rivera-Perez, and their co-conspirators sought to profit from the scourge of heroin, and now face many years in prison.  Dismantling this drug organization demonstrates our commitment to targeting traffickers who are fueling opioid addiction and its tragic consequences.”

“Ressy admitted to bringing deadly drugs into the city of Schenectady as he and his criminal organization preyed on the addictions and vulnerabilities of others,” said Kevin Kelly, Special Agent in Charge for HSI Buffalo.  “HSI continues to work in collaboration with state and local law enforcement to arrest those criminals operating in our communities with no regard for human life.”

New York State Police Superintendent Keith M. Corlett stated: “The success of this investigation is the direct result of the hard work and cooperation among federal, state and local law enforcement, and I applaud our partners for their dedication to closing this case.  The disruption of this distribution ring serves as a reminder that we will not tolerate the trafficking of deadly, illegal drugs, and those who choose to profit from this activity will be held fully accountable.”

Ressy has four prior drug distribution convictions, including a 2002 conviction in the U.S. District Court for the Northern District of New York for conspiring to distribute heroin. 

Ressy faces at least 15 years and up life in prison, and a term of post-imprisonment supervised release of at least 10 years and up to life, when he is sentenced on April 10, 2020 by United States District Judge Mae A. D’Agostino.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

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

Name

Age

Minimum

Maximum

Jean Carlos Rivera-Perez, aka “Tego”

37

10 years

Life

Daniel Garcia, aka “Danny”

34

10 years

Life

Linette Marie Soto

25

10 years

Life

Kristen Jansen

28

5 years

40 years

Patrick McNamara

48

None

20 years

The following defendants pled guilty and were sentenced to the following terms of imprisonment:

Name

Age

Term of imprisonment

Gregory Insogna

46

5 years

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

29

57 months

Jose Cortes-Cruz, aka “Bimbo”

29

1 year and 1 day

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

ALBANY, NEW YORK – John R. Paeglow III, age 63, of Troy, New York, was arraigned today on 10 counts of wire fraud, and one count of embezzling funds from an employee benefit plan. 

The announcement was made by United States Attorney Grant C. Jaquith and Michael C. Mikulka, Special Agent in Charge, New York Region, United States Department of Labor, Office of Inspector General (DOL-OIG).

Paeglow was arraigned today in Albany before United States Magistrate Judge Christian F. Hummel, and released on conditions pending trial before Senior United States District Judge Frederick J. Scullin, Jr.

According to the indictment, Paeglow fraudulently solicited and received over $400,000 on behalf of his now-closed Castleton, New York-based book printing business Integrated Book Technology, Inc./Hamilton Printing (“IBT/Hamilton”), by orchestrating the submission of fraudulent invoices and forged shipping documents to a New Jersey-based commercial finance company.  Paeglow obtained funding based on his false promises that he expected payment for the sales of books that, in fact, had not been sold or shipped.

Paeglow is also charged with embezzling employee contributions to his company’s health plan.

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

The charges filed against Paeglow carry a maximum sentence of 20 years in prison, a fine of up to the greater of $250,000 or twice the pecuniary gain to the defendant or the loss to any victim, and a term of supervised release of up to 3 years.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case is being jointly investigated by the U.S. DOL-OIG and the New York State Police Financial Crimes Unit, and is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.

ALBANY, NEW YORK – Richard J. Sherwood, age 59, of Guilderland, New York, was sentenced today to 54 months in federal prison for conspiring to steal approximately $11.8 million from estates for which he served as an attorney and fiduciary. 

The announcement was made by:

• United States Attorney Grant C. Jaquith;
• New York Attorney General Letitia James;
• James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and
• Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of IRS-Criminal Investigation.

 

Senior United States District Judge Lawrence E. Kahn also ordered Sherwood to serve a 1-year term of supervised release, to pay $5,560,505 in restitution, and to forfeit the following as proceeds of his crimes: 12 bank and brokerage accounts, and a house overlooking Galway Lake in Saratoga County.

In a related case prosecuted by the New York Attorney General’s Office, Sherwood pled guilty, in Albany County Court, to grand larceny in the first degree, and was sentenced this afternoon to a concurrent term of 3 to 9 years in state prison.

Sherwood’s co-conspirator, Thomas K. Lagan of Cooperstown, New York, was sentenced on December 11 to 78 months in federal prison, to run concurrent with a state sentence of 4 to 12 years in prison.

United States Attorney Grant C. Jaquith stated: “Our society depends on attorneys to be honest and ethical.  Richard Sherwood desecrated that trust when he stole millions of dollars from clients who relied on him to transfer their money to churches and other beneficiaries after they died.  His seven-year criminal conspiracy is all the more disturbing because Sherwood was also Guilderland Town Justice at the time.  Today’s sentence punishes Sherwood for his despicable conduct and requires him to repay every last dime that he stole.”

FBI Special Agent in Charge James N. Hendricks stated: “Richard Sherwood stole millions of dollars from estates meant for charities, churches, and civic organizations, while at the same time serving as an elected judge. Today’s sentencing affirms that the FBI has zero tolerance for attorneys who exploit their clients, and we will continue to work with our partners to make sure these criminals are brought to face justice.”

IRS-CI Special Agent in Charge Jonathan D. Larsen stated: “As demonstrated by the sentencing of co-conspirator Thomas Lagan last week and now Mr. Sherwood’s sentence today, IRS-Criminal Investigation continues to make tax law enforcement a key priority. Protecting victims is also one of our most important objectives. The sentences imposed in these cases illustrate the consequences of lying and stealing from the federal government and innocent taxpayers. They also underscore the government’s commitment to prosecuting tax fraud. Today’s sentence should serve as a warning and deterrent to others.”

Sherwood practiced primarily in the area of trusts and estates.  Starting in about 2006, he provided estate planning and related legal services to Capital Region philanthropists Warren and Pauline Bruggeman, and to Pauline’s sister, Anne Urban, all of Niskayuna, New York.  Sherwood was advising the Bruggemans when, in 2006, they signed wills directing that all their assets go to charities, churches and civic organizations, aside from bequests to Anne Urban and Julia Rentz, Pauline’s other sister.

Warren Bruggeman died in April 2009, and Pauline died in August 2011.  At the time of her death, Pauline had personal and trust assets valued at approximately $20 million.

In pleading guilty to charges of money laundering conspiracy and filing a false tax return, Sherwood admitted that after Pauline Bruggeman’s death, he and Lagan conspired to steal millions of dollars from her estate as well as from Anne Urban, who died in 2013.  Their conspiracy came to include the diversion and transfer to themselves of several million dollars belonging to Julia Rentz, a resident of Ohio, who was suffering from dementia at the time of the thefts and died in 2013. 

Sherwood admitted that he and Lagan stole $11,831,563, and that nearly $3.6 million was transferred outright to him, with an additional $1.96 million transferred to an entity, Empire Capital Trust, LLC, that he and Lagan controlled.  Sherwood also admitted that he transferred to himself the Bruggeman family camp located on Galway Lake. 

Sherwood admitted that he and Lagan induced Anne Urban to create a trust whose purpose, unknown to her, was to allow him and Lagan to transfer Bruggeman/Urban assets to themselves.  Sherwood and Lagan also set up more than 10 bank accounts, and created a limited liability company (Empire Capital Trust, LLC), to first conceal the theft of the money and then transfer the money to themselves. 

Sherwood pled guilty to filing false federal tax returns in 2013 and 2015.  These returns were false because he did not report, as other income, about $4.7 million that he received from the fraudulent scheme. 

Sherwood served as Guilderland Town Justice from 2014 until his arrest on February 23, 2018.  He resigned his position on March 5, 2018. He was disbarred on September 13, 2018.

The federal case was investigated by the FBI and IRS-CI, and was prosecuted by Assistant U.S. Attorney Michael Barnett.  Assistant U.S. Attorneys Adam J. Katz and Alicia G. Suarez prosecuted the asset forfeiture aspects of the case.

The state case was prosecuted by Assistant Attorneys General Christopher Baynes and Matthew Peluso of the Attorney General’s Public Integrity Bureau, under the supervision of Bureau Chief Travis Hill.  The Criminal Justice Division is led by Chief Deputy Attorney General Jose Maldonado.  The investigation was led by Investigator Mark Spencer of the Attorney General’s Investigations Bureau, under the supervision of Deputy Chief Investigator Antoine Karam.  The Investigations Bureau is led by Acting Chief John Reidy.  Financial analysis was provided by Principal Auditor Investigator Meaghan Scotellaro of the Forensic Audit Section under the supervision of Deputy Chief Auditor Sandy Bizzarro and Chief Auditor Edward J. Keegan, Jr.  Senior Analyst Sara Pogorzelski assisted in the investigation.

 

ALBANY, NEW YORK – Carlos Rivera, age 43, of Chatham, New York, pled guilty on December 13 to possessing and intending to distribute cocaine and to being a felon in possession of a firearm. 

The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration, New York Field Division.

Rivera admitted that on September 18, 2018, he possessed, at his residence in Chatham, approximately 480 grams of cocaine that he intended to distribute to others. He also admitted to possessing a Mossberg 535 12-gauge shotgun after having been convicted of a felony in New York.

Rivera faces up to 30 years in prison on the drug charge and up to 10 years in prison on the firearm charge, as well as a term of post-imprisonment supervised release of at least 6 years, and a maximum fine of $2 million, when he is sentenced by Senior United States District Judge Thomas J. McAvoy on May 12, 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 Columbia County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorneys Troy R. Anderson and Alicia Giglio Suarez.

ALBANY, NEW YORK – Steven McGill, age 49, of Albany, pled guilty on December 13 to being a felon in possession of firearms and ammunition. 

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).

McGill admitted that on January 9, 2019, in Troy, New York, he possessed a loaded .40 caliber pistol and a loaded .380 caliber pistol, as well as the ammunition contained within each firearm. He also admitted that he provided those firearms to another individual who sold them to a third party and returned the money to McGill.

McGill faces up to 10 years in prison, a term of post-imprisonment supervised release of up to 3 years, and a maximum fine of $250,000, when he is sentenced by Senior United States District Judge Thomas J. McAvoy on May 13, 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 its Capital District Safe Streets Gang Task Force, and is being prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.

ALBANY, NEW YORK – A grand jury yesterday returned a superseding indictment charging two men with the February 6, 2019 armed robbery of an Albany bank in which approximately $150,000 was stolen.

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); and Chief Eric Hawkins of the Albany Police Department (APD).

The superseding indictment adds charges against Christopher J. Cohn a/k/a “Wolf,” age 26, of Albany, and Ulysses Jessie Walls a/k/a “Guwala,” age 26, of Rensselaer, New York, for armed bank robbery. 

According to the superseding indictment and other court filings, Cohn and Walls entered a Trustco Bank branch in Albany on the afternoon of February 6, 2019, each wearing a ski mask and Walls displaying a gun, and threatened to shoot the bank’s employees if they did not comply with the pair’s demands.  Approximately $150,000 was taken during the robbery. 

The initial indictment in this case, returned on July 24, 2019, charged Cohn and Walls with armed bank robbery and use of a firearm during a crime of violence in connection with a February 26, 2019 robbery of an M&T Bank branch located in North Greenbush. 

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

Cohn and Walls have been in custody since February 26, 2019.

If convicted of all charges, Cohn and Walls would each face at least 20 years and up to life in prison.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case is being investigated by the FBI, the New York State Police, 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.

ALBANY, NEW YORK – Jacob Delaney, age 22, of Holtsville, New York, and currently residing in New Paltz, was charged and arrested today for possessing child pornography.

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).

A criminal complaint filed against Delaney alleges that he possessed child pornography on his computer and an external hard drive while residing in New Paltz.  The charges in the complaint are merely accusations.  The defendant is presumed innocent unless and until proven guilty. 

If convicted, Delaney faces a maximum term of imprisonment of 20 years, a mandatory term of supervised release of 5 years and up to life, mandatory registration as a sex offender, and a maximum $250,000 fine.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. 

This case is being investigated by the FBI and its Child Exploitation Task Force, and the New York State Police Troop F Campus Sexual Assault Victim’s Unit and Highland Barracks, and is being prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez. 

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

 

ALBANY, NEW YORK – Robert Kirk, age 36, of Schenectady, New York, pled guilty yesterday to sexually exploiting a child, and to 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). 

Kirk admitted that on two occasions in July 2018, he used a sleeping, minor child to create sexually explicit images and videos on his cellular telephone.  Kirk also admitted to distributing child pornography over a group messaging application and possessing hundreds of images of child pornography.

Kirk is scheduled to be sentenced on April 10, 2020 by Senior United States District Judge Norman A. Mordue.  Kirk faces at least 15 years and up to 30 years in prison on the sexual exploitation counts, at least 5 and up to 20 years in prison on the distribution count, and up to 20 years in prison on each of the child pornography counts.  Sentences of imprisonment may be concurrent or consecutive at the discretion of the Court.  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 Court also will impose a term of post-imprisonment supervised release of between 5 years and life.

This case was investigated by HSI, with assistance from the New York State Police, and is being prosecuted by Assistant U.S. Attorney Alicia Giglio 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.

 

ALBANY, NEW YORK - Gheorghe Cirstea, age 33, and a citizen of Romania, was sentenced today to 27 months in prison for conspiring to steal bank customers’ account information and personal identification numbers (PINs) by using skimming devices that he secretly installed on bank ATMs in the Capital Region from August through October 2015.

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.

On March 30, 2018, Cirstea was arrested on an international arrest warrant while travelling through Bogota, Colombia.  On October 19, 2018, Cirstea was formally extradited by Colombian authorities to the Northern District of New York, and he has remained in custody since then.

As part of his guilty plea on August 8, 2019, Cirstea admitted that from August 30, 2015 through October 24, 2015, he and co-conspirator Ilie Sitariu used skimming devices and pinhole cameras to secretly capture the account numbers and PINs of customers who used ATMs at First Niagara Bank, Trustco Bank, and Berkshire Bank branches in Chatham, New York, Delmar, New York, and Great Barrington, Massachusetts, respectively.  The skimming devices captured the information encoded on the magnetic strips of customers’ bank debit cards, while the pinhole cameras allowed the defendants to record the PINs used by the customers.  The conspirators then used the information to steal approximately $127,000 from the customers’ accounts by making withdrawals at ATMs in New York City.

Sitariu, who was arrested in September 2015, pled guilty on November 22, 2016, and was sentenced to 48 months in prison by Senior United States District Judge Lawrence E. Kahn.

Judge Kahn also ordered that Cirstea pay $127,389 in restitution to the three banks whose customers’ account information was skimmed and used to make unauthorized withdrawals.

This case was investigated by the FBI, U.S. Secret Service, and the New York State Police, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.

 

SYRACUSE, NEW YORK – A jury voted yesterday to convict Alfredo Carballo Nava, age 26, a citizen of Mexico staying in Homer, New York, of one count of immigration fraud for using a counterfeit permanent resident card. The jury acquitted the defendant of one count of social security fraud.  

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

Evidence presented during the two-day trial established that, in 2008, Carballo Nava unlawfully entered the United States and obtained a counterfeit permanent resident card. This document contained obvious errors including an incorrect date of birth, incorrect date of entry into the U.S., and a fingerprint that did not belong to Carballo Nava. In 2019, after arrest on another matter, an investigation revealed that Carballo Nava used the counterfeit permanent resident card in 2017 to obtain employment in Cortland County. 

Sentencing is scheduled for June 4, 2020, at which time Carballo Nava faces up to 10 years in prison and a fine of up to $250,000. The defendant may also face immigration proceedings that could result in his removal from the United States[1].A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.   

This case was investigated by United States Immigration and Customs Enforcement (ICE), the Social Security Administration-Office of Inspector General, United States Citizenship and Immigrations Services, and the City of Cortland Police Department. 

This case was prosecuted by Assistant United States Attorneys Kristen Grabowski and Tamara Thomson. 

 

---

[1] Immigration proceedings are civil in nature and are adjudicated separately in Immigration Court.

ALBANY, NEW YORK – Brian Northup, age 28, of Hudson, New York, pled guilty today to accessing a child pornography web site available only through an anonymous Internet network.

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

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

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

Northup faces up to 10 years in prison when he is sentenced by United States District Judge Mae A. D’Agostino on April 6, 2020.  He also faces a term of post-imprisonment supervised release of at least 5 years and up to life, a fine of up to $250,000, and mandatory registration 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 and is being 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/

ALBANY, NEW YORK – Two Georgia men have been sentenced to prison for creating counterfeit checks and then cashing them at banks in Saratoga and Warren Counties.

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); and New York State Police Superintendent Keith M. Corlett.

Alphonso L. Howard, Jr., age 29, of Decatur, Georgia, was sentenced today to 48 months in prison, to be followed by 3 years of supervised release, and to pay $119,077.54 in restitution.  Howard also forfeited $16,660 in cash that he possessed at the time of his arrest by New York State Police.  Howard additionally faces a parole violation proceeding in Wisconsin, where he was previously convicted of participating in a prior, similar check cashing scheme.

Javonte J. Johnson, age 23, of Decatur, Georgia, was sentenced on December 5 to 30 months in prison, to be followed by 5 years of supervised release, and to pay $119,077.54 in restitution.  Johnson also forfeited $2,391 in cash that he possessed at the time of his arrest by New York State Police.  Johnson has additionally agreed to plead guilty to grand larceny charges in Jefferson County Court, New York, arising from a similar check cashing scheme he committed there.

Each man pled guilty in federal court to 1 count of conspiring to commit bank fraud and 1 count of aggravated identity theft. 

They admitted that they defrauded financial institutions by intercepting and stealing checks sent through the U.S. Mail; using information from these legitimate checks to create counterfeit checks drawn on the same financial accounts as the stolen, legitimate checks; and then cashing and attempting to cash the counterfeit checks at financial institutions in Saratoga and Warren Counties. 

This case was investigated by the FBI and the New York State Police-Troop G, and was prosecuted by Assistant U.S. Attorney Michael Barnett.  Other agencies have assisted in the investigation and prosecution, including the District Attorney’s Offices in Jefferson, Saratoga and Warren Counties, the Glens Falls Police Department, the Burlington Police Department (Vt.), Vermont State Police, and the Stowe Police Department (Vt.).

ALBANY, NEW YORK – Thomas K. Lagan, age 61, of Cooperstown, New York, and formerly of Slingerlands, New York, was sentenced today to 78 months in prison, to be followed by 2 years of supervised release, for money laundering and filing a false tax return in connection with the theft of approximately $11.8 million from estates for which he served as a fiduciary. 

The announcement was made by:

• United States Attorney Grant C. Jaquith;
• New York Attorney General Letitia James;
• James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and
• Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of IRS- Criminal Investigation.

 

Senior United States District Judge Lawrence E. Kahn also ordered Lagan to pay $7,707,450 in restitution, and to forfeit the following as proceeds of his crimes: 10 bank and brokerage accounts; an additional $255,000 already paid to the Government; three properties in Otsego County; a 2016 Mercedes Benz S550; a 2015 Jeep Wrangler Sport; a 2015 Lexus RX450; and a 2015 Sea-Doo jet ski and accompanying trailer.

In a related case prosecuted by the New York Attorney General’s Office, Lagan pled guilty, in Albany County Court, to grand larceny in the first degree, and was sentenced to 4 to 12 years in prison.  The federal and state terms of imprisonment will run concurrent to one another.

In pleading guilty, Lagan admitted that between November 2011 and February 2018, he conspired with Richard J. Sherwood to launder the proceeds of a scheme to defraud the estates of three sisters: Pauline Bruggeman, Anne Urban, and Julia Rentz. 

Sherwood pled guilty in June 2018 to federal and state charges.  He is scheduled to be sentenced on December 19, 2019.

United States Attorney Grant C. Jaquith stated: “Fueled by insatiable greed, Thomas Lagan stole millions of dollars earmarked for churches and civic organizations.  Lagan was trusted to carry out his victims’ charitable endeavors, but betrayed them after they died.  Today’s sentence holds him accountable for his despicable behavior and ensures that his crimes won't pay.”

FBI Special Agent in Charge James N. Hendricks stated: “Thomas Lagan chose to steal millions of dollars from estates meant for churches and charitable organizations. The FBI takes our responsibility to investigate and pursue those who commit fraud for personal gain very seriously. We will continue working with our law enforcement partners to hold accountable those who use illegal means and criminal behavior to take advantage of others.”

IRS-CI Special Agent in Charge Jonathan D. Larsen stated: “Mr. Lagan failed to comply with some of the most basic taxpayer responsibilities.  Even worse, his self-seeking actions have deprived charitable organizations of funds intended to serve individuals in need. IRS-CI, along with its law-enforcement partners, is committed to impartially enforcing our country’s tax laws. Today’s sentencing should serve as a deterrent to criminals looking to enrich themselves by stealing charitable contributions donated by well-intended citizens.”

Lagan was an investment advisor and attorney.  Sherwood, an attorney who served as Guilderland Town Justice, practiced primarily in the area of trusts and estates. 

Starting in 2006, they provided estate planning and related legal services to Capital Region philanthropists Warren and Pauline Bruggeman, and to Pauline’s sister, Anne Urban, all of Niskayuna, New York.  They were advising the Bruggemans when, in 2006, the Bruggemans signed wills directing that all their assets go to charities, churches and civic organizations, aside from bequests to Anne Urban and Julia Rentz, Pauline’s sisters.

Warren Bruggeman died in April 2009, and Pauline died in August 2011.  At the time of her death, Pauline had personal and trust assets valued at approximately $20 million.

In pleading guilty, Lagan admitted that after Pauline Bruggeman’s death, he and Sherwood conspired to steal, and did steal, millions of dollars from her estate as well as from Anne Urban, who died in 2013.  Their conspiracy came to include the diversion and transfer to themselves of several million dollars belonging to Julia Rentz, a resident of Ohio, who was suffering from dementia at the time of the thefts and died in 2013.

Lagan admitted that he and Sherwood stole $11,831,563, and that nearly $6.3 million was transferred outright to him. 

Lagan admitted that he and Sherwood induced Anne Urban to create a trust whose purpose, unknown to her, was to allow them to transfer Bruggeman/Urban assets to themselves.  Sherwood and Lagan also set up more than 10 bank accounts, and created a limited liability company (Empire Capital Trust, LLC), to first conceal the theft of the money and then transfer the money to themselves.

Lagan also admitted to filing false federal tax returns in 2013 and 2015.  These returns were false because he did not report, as other income, millions of dollars that he received from the fraudulent scheme.

The federal case was investigated by the FBI and IRS-CI, and was prosecuted by Assistant U.S. Attorney Michael Barnett.  Assistant U.S. Attorneys Adam J. Katz and Alicia G. Suarez prosecuted the asset forfeiture aspects of the case.

The state case was prosecuted by Assistant Attorneys General Christopher Baynes and Matthew Peluso of the Attorney General’s Public Integrity Bureau, under the supervision of Bureau Chief Travis Hill.  The Criminal Justice Division is led by Chief Deputy Attorney General Jose Maldonado.  The investigation was led by Investigator Mark Spencer of the Attorney General’s Investigations Bureau, under the supervision of Deputy Chief Investigator Antoine Karam.  The Investigations Bureau is led by Acting Chief John Reidy.  Financial analysis was provided by Principal Auditor Investigator Meaghan Scotellaro of the Forensic Audit Section under the supervision of Deputy Chief Auditor Sandy Bizzarro and Chief Auditor Edward J. Keegan, Jr.  Senior Analyst Sara Pogorzelski assisted in the investigation.

SYRACUSE, NEW YORK – Donald M. Geiss, Jr., age 44, of Syracuse, was sentenced yesterday to 65 months in prison after previously pleading guilty to four counts of wire fraud and two counts of aggravated identity theft in relation to various schemes to defraud he perpetrated on victims in multiple states, announced 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).

In previously pleading guilty, Geiss admitted that between approximately August 2016 through August 2017 he perpetrated various fraud schemes on victims in multiple states, including by collecting money from his victims by (1) posing as an investor and pretending to go through the process of buying a business in the Syracuse area in order to gain access to the business; (2) pretending to negotiate the sale of a non-existent computer algorithm for insurance claims to a well-known multinational finance and insurance corporation in New York; (3) convincing a victim to purchase several online video game profiles from other people on Geiss’s behalf; and (4) selling fake and fraudulent “discount” airline tickets over the internet. In perpetrating these various crimes, Geiss used at least one alias, one false identity, and two stolen identities. Geiss ultimately obtained a total of more than $167,000 from his various victims.

Geiss was on supervised release related to a prior federal fraud conviction when he committed all of the crimes for which he was sentenced yesterday. In addition to the 65-month prison sentence, Geiss was also sentenced to serve an additional 6 months in prison for violating the terms of his supervised release by committing the fraud and aggravated identity theft offenses. In total, Geiss will serve 71 months in prison. The Court also ordered Geiss to pay money judgments totaling over $153,000, and to pay restitution to his victims of more than $167,000. Following his release from prison, Geiss will be on supervised release for 3 years.

This case was investigated by the Federal Bureau of Investigation (FBI), and was prosecuted by Assistant U.S. Attorney Michael F. Perry.

ALBANY, NEW YORK – Jose Fontanez, age 38, of Schenectady, New York, was sentenced today to 135 months in prison for stealing, possessing, concealing, and storing firearms stolen from Target Sports, Inc., a federally licensed firearms dealer in Schenectady County.

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 Norman A. Mordue also sentenced Fontanez to a 3-year term of supervised release and ordered that he pay restitution of $48,775.47.

Fontanez, who has prior felony convictions for robbery and drugs, pled guilty on April 16, 2018.  As part of his plea, Fontanez admitted that, on October 22, 2017, he and Christian Roman broke a window to gain entry into Target Sports and then removed dozens of firearms from the store, as well as ammunition and other property, making multiple trips to and from the store with the assistance of Dalmary Morales.  Fontanez further admitted that, after making an inventory of the stolen firearms, the two men hid them in a storage unit in Schenectady and, while on the run from law enforcement, enlisted accomplices in Amsterdam, New York, and Rochester, New York, to help retrieve and transport them to various locations in New York.  In exchange for their assistance, Fontanez and Roman provided some of the stolen firearms to their accomplices.

Christian Roman, age 25, of Schenectady, pled guilty in 2018 to stealing the firearms from Target Sports, and other, related charges.  He was sentenced to 150 months in prison.

Omar DeJesus, age 32, and Onic Martinez, age 34, both of Amsterdam, pled guilty in 2018 for their roles in stealing, transporting and possessing the firearms.  Both men were sentenced to 120 months in prison.

Dalmary Morales, age 24, of Schenectady, pled guilty in 2018 to stealing the firearms from Target Sports.  She was sentenced to 57 months in prison.

Juan Saez, age 37, of Rochester, pled guilty in 2018 for his role in stealing, transporting and possessing the firearms.  He is scheduled to be sentenced on March 20, 2020.

This case was investigated by the ATF, New York State Police, and the Glenville Police Department, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.

UTICA, NEW YORK – Derek Damuth, age 25, of Lowville, New York, was sentenced today to 60 months in prison by United States District Judge David N. Hurd based on his conviction for possessing with the intent to distribute in excess of 40 grams of a mixture of fentanyl and heroin, announced United States Attorney Grant C. Jaquith, Lewis County District Attorney Leanne K. Moser, Special Agent in Charge of United States Drug Enforcement Administration, New York Division (DEA) Raymond P. Donovan, and New York State Police Superintendent Keith Corlett.  Damuth was also ordered to serve four years of supervised release following his release from prison.

As part of his guilty plea in this case, Damuth admitted that in November 2018, he possessed more than forty grams of a substance containing fentanyl, 17 ounces of marijuana, additional quantities of cocaine and heroin, and drug-trafficking paraphernalia.  Damuth further admitted that he intended to distribute the drugs.

This case was investigated by the United States Drug Enforcement Administration (DEA) and the New York State Police, with assistance from the Lewis County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Nicolas Commandeur.

ALBANY, NEW YORK – Miguel Sernas, age 41, of Mexico City, Mexico, was sentenced today to time served (approximately 12 months in jail) for conspiring to steal trade secrets from the General Electric Company (GE).  Sernas was also ordered to pay restitution to GE in the amount of $1.4 million.

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).

Sernas, who pled guilty in May, admitted to conspiring with his business partner and co-defendant, Jean Patrice Delia, to compete against GE using trade secrets Delia stole from GE.  Among the stolen trade secrets were advanced computer models created and used by GE to calibrate its turbines.  Sernas and Delia used these trade secrets, as well as stolen marketing data and pricing information, to compete against GE while operating as Thermogen Power Services, a power plant performance evaluation company based in Montreal, Canada.

Sernas has been in custody since he was arrested in Detroit, Michigan, on December 3, 2018, after entering the United States on an international flight from Mexico.

Delia, age 44, and a citizen of Canada, pled guilty today to conspiring to steal trade secrets.  He is scheduled to be sentenced on April 10, 2020.

This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.

ALBANY, NEW YORK – Jean Patrice Delia, age 44, of Montreal, Canada, pled guilty today to conspiring to steal trade secrets from the General Electric Company (GE).

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).

As part of his plea, Delia, a former engineer with GE, admitted that he conspired with his business partner and co-defendant, Miguel Sernas, to compete against GE using trade secrets Delia stole from GE while employed by GE in Schenectady, New York.  Delia admitted that he and Sernas, operating as ThermoGen Power Services, used the stolen trade secrets, as well as stolen marketing data, pricing information, and other confidential GE documents, to compete against GE around the world.

Delia 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 when he is sentenced on April 10, 2020 by Senior United States District Judge Norman A. Mordue.  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.

Sernas, who pled guilty in May 2019, was sentenced today to time served (approximately 12 months in jail) and ordered to pay $1.4 million in restitution.

This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.

ALBANY, NEW YORK – Jovan Robinson, age 38, was sentenced on December 4 to 13 months in prison for failing to update his sex offender registration.

The announcement was made by United States Attorney Grant C. Jaquith and David L. McNulty, United States Marshal for the Northern District of New York.

Robinson was convicted of violating the federal Sex Offender Registration and Notification Act (“SORNA”), which requires a sex offender to register, and keep that registration current, wherever he or she resides. As part of his guilty plea, Robinson admitted that he was convicted of sexual abuse in the third degree in Oregon, which required him to register as a sex offender.  Robinson further admitted that he moved from Massachusetts to Albany, and lived in Albany from March 4, 2018 until his arrest on March 9, 2018 without ever registering in New York or updating his registration in Oregon.

This case was investigated by the United States Marshals Service Sex Offender Investigation Branch, the Albany Police Department, and the Albany County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Alicia G. Suarez.

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

ALBANY, NEW YORK – Eric Soto, age 37, of Queens County, New York, pled guilty today to distributing and possessing with intent to distribute over 800 grams of heroin, as well as Oxycodone pills, in June 2018 in Albany County.

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

In pleading guilty, Soto admitted that in June 2018, he travelled from New York City to the Capital Region on three occasions for the purpose of distributing both heroin and Oxycodone at various locations in the Capital Region, including in Colonie, Guilderland and Watervliet.  On June 22, 2018, Soto was arrested in the parking lot of the Crossgates Mall in possession of 583 grams of heroin and 99 Oxycodone pills, which he intended to sell.  He has remained in custody since his arrest.

Soto faces at least 5 years and up to 40 years in prison, a term of supervised release of at least 4 years and up to life, and a maximum fine of $5 million, when he is sentenced on June 11, 2020 by Senior United States District Judge Fredrick J. Scullin, Jr.  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 with assistance from the Albany County Sheriff’s Office, and the Police Departments of Colonie, Guilderland and Watervliet.  The case is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.

ALBANY, NEW YORK – Keith M. Moses, age 31, of Paterson, New Jersey, was sentenced today to 43 months in prison for conspiring to distribute 100 grams or more of heroin.

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; Joseph Cronin, Inspector in Charge, United States Postal Inspection Service (USPIS), Boston Division; and Plattsburgh City Police Chief Levi J. Ritter.

As part of his plea, Moses admitted that between December 1, 2017 and September 5, 2018, he supplied approximately 455 grams of heroin for distribution in Plattsburgh.  On approximately 65 occasions, Moses sent heroin through the U.S. Mail from New Jersey to a co-conspirator in Plattsburgh.  Each of these packages contained, on average, 4.6 grams of heroin.  Additionally, Moses and Darcy D. Briggs transported larger supplies of heroin on at least three occasions from New Jersey to the co-conspirator in Ulster County, New York.  Each of these packages contained, on average, 23 grams of heroin.  On approximately 20 occasions, the co-conspirator travelled to New Jersey to meet with Moses and receive heroin.  Each of these packages contained, on average, 4.6 grams of heroin.  The co-conspirator distributed the heroin in the Plattsburgh area and returned a portion of the drug proceeds to Moses.

Senior U.S. District Judge Frederick J. Scullin, Jr. also sentenced Moses to serve a 3-year term of supervised release once out of prison.

Briggs was sentenced on August 30, 2019 to 21 months in prison and 3 years of supervised release for his role in the conspiracy.

This case was investigated by the DEA, United States Postal Inspection Service, and Plattsburgh City Police, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.

ALBANY, NEW YORK - The Department of Justice announced yesterday that it has awarded more than $376 million in grant funding to enhance state, local and tribal law enforcement operations and reinforce public safety efforts in jurisdictions across the United States. Over $1.1million dollars will support public safety activities in the Northern District of New York. The awards were made by the Department’s Office of Justice Programs.

“Crime and violence hold families, friends and neighborhoods hostage, and they rip communities apart,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These programs help restore the health and safety of crime-ravaged communities by supporting prevention activities, aiding in the apprehension and prosecution of perpetrators, facilitating appropriate sentencing and adjudication, and providing communities and their residents the means for recovery and healing.”

The awards announced support an array of crime-fighting initiatives, including the quarter-billion dollar Edward Byrne Justice Assistance Grants Program, which funds public safety efforts in 929 state, local and tribal jurisdictions. Funding also supports sex offender registration and notification, law enforcement-based victim services, the testing of sexual assault kits, and programs designed to address youth with sexual behavioral problems. Other awards will focus on wrongful convictions, intellectual property enforcement, innovative prosecution strategies and the safety and effectiveness of corrections systems.

United States Attorney for the Northern District of New York Grant C. Jaquith said, “These Department of Justice grant awards demonstrate our commitment to support our state and local partners in their efforts to investigate and prosecute criminals, assist victims and witnesses, prevent crime, and address drug addiction and the opioids epidemic.”

The following awards were made to organizations in the Northern District of New York:

• City of Syracuse and the Onondaga County Sheriff’s Office: $100,628  ($50,314 each)
• City of Binghamton Police: $27,158
• City of Watertown Police: $12,347
• City of Troy Police: $30,231
• City of Albany: $66,741
• City and County of Schenectady: $42,604
• City of Utica and Oneida County: $28,403
• Cayuga Counseling Services in Cayuga County: $475,000

 

Under the BJA Innovative Prosecution Solutions for Combating Violent Crime Program:

• County of Onondaga, District Attorney’s Office: $360,000

 

Information about the programs and awards announced today is available here: OJP Awards Data webpage.

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.

ALBANY, NEW YORK – Carlo Varnado, age 41, of South Glens Falls, New York, was sentenced today to 60 months in prison for conspiring to distribute more than 500 grams of cocaine.

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 Field Division.

As part of his guilty plea, Varnado admitted that between January 2013 and October 9, 2017, he distributed cocaine from his apartment in South Glens Falls and in areas around Glens Falls. Some of this cocaine was resold in and around Lake Placid, New York.  On October 9, 2017, DEA Special Agents seized approximately 8.8 ounces of cocaine bound for Lake Placid after Varnado distributed it to another person.  DEA Special Agents then executed a search warrant at Varnado’s apartment and recovered approximately 20 grams of cocaine, inositol (a common cutting agent for cocaine), approximately $1,000 in U.S. currency, a scale, a vacuum sealer, and plastic baggies.  As part of his plea, Varnado admitted trafficking approximately 4 kilograms of cocaine during the conspiracy.

Senior U.S. District Judge Gary L. Sharpe also sentenced Varnado to serve a 4-year term of supervised release.

This case was investigated by DEA and prosecuted by Assistant U.S. Attorney Douglas Collyer.

ALBANY, NEW YORK – Hassan Raheem, age 43, of Uniondale, New York, pled guilty today to possessing and intending to distribute crack cocaine, and possessing a firearm in furtherance of a drug trafficking crime.

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).

Raheem, who has 6 prior felony convictions, admitted that on July 26, 2016, he possessed a loaded .22 caliber semiautomatic pistol and 17 grams of crack cocaine packaged for distribution at a motel in Colonie, New York.  He further admitted that he intended to distribute the crack cocaine to others in exchange for cash, and that he possessed the pistol, which he obtained illegally, to protect his crack and drug proceeds from potential robbers.  The pistol itself was reported stolen from a Mechanicsville, Virginia gun store in 2013.

Raheem faces at least 5 years and up to life in prison, a fine of up to $250,000, and at least 3 years of post-release supervision, when he is sentenced by Senior United States District Judge Fredrick J. Scullin, Jr. on June 9, 2020.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

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

BINGHAMTON, NEW YORK –Mahkya Searles, age 23, of Tioga County, New York, was sentenced yesterday to 109 months in prison, to be followed by 15 years of supervised release, for his receipt and possession of child pornography.  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).

In pleading guilty, Searles admitted that, from April 2018 through March 10, 2019, he searched for and downloaded child pornography from the Internet, and that on March 20, 2019 he possessed more than 30 images of child pornography on his phone, some of which involved prepubescent minors.  

In imposing sentence, Senior United States District Judge Thomas McAvoy found that Searles had a prior pattern of activity involving the sexual abuse or exploitation of a 5-year old child.  Upon release from imprisonment, Searles must also register as a sex offender.  

This case was investigated by the Tioga County Sheriff’s Department, Athens Police Department, and the FBI, and was prosecuted by Assistant U.S. Attorney Kristen Grabowski, as a part of Project Safe Childhood. 

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

SYRACUSE, NEW YORK – Jack Hiller, age 56, of Port Crane, New York, was sentenced on Monday to 36 months in prison, to be followed by 5 years of supervised release, for possessing child pornography.  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).

As part of his previously entered guilty plea, Hiller admitted that in February 2018, he used the Kik computer software application to receive sexually explicit images of children, some under 12 years of age.  Hiller also admitted that he knowingly stored photos and videos of child pornography on one of his electronic devices. 

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

SYRACUSE, NEW YORK – Chad Swartwood, age 41, of Castle Creek, New York, pled guilty on Monday to attempting to receive and receiving child pornography.

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

Swartwood faces at least 15 years and up to 40 years in prison, because of a prior conviction, from November 2000, for Sexual Abuse in the First Degree, an offense that involved a 9-year-old child.  Sentencing is scheduled for March 18, 2020 before 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.

This case was investigated by HSI and 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) and is designed to marshal federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

 

ALBANY, NEW YORK – Steven M. Boice, age 30, pled guilty today to distributing furanyl fentanyl that caused an overdose death in Saratoga County in February 2017, and further admitted to possessing 2 firearms in furtherance of his drug trafficking activities.  He agreed to be sentenced to 20 years in prison.

The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, New York Division, U.S. Drug Enforcement Administration (DEA); and Saratoga Springs Police Department Chief Shane Crooks. 

United States Attorney Grant C. Jaquith stated: “Steven Boice showed total disregard for the lives of others.  In selling furanyl fentanyl – a new, synthetic opioid many times more powerful than heroin and even fentanyl – he risked the lives of many, and caused the death of a young man whose family grieves every day.  Boice also sold drugs while armed with a loaded rifle and loaded shotgun, demonstrating that he was prepared to use deadly force to safeguard his drug sales.    I commend law enforcement for acting quickly to investigate and arrest Boice, which undoubtedly saved lives.” 

DEA Special Agent in Charge Ray Donovan stated: “This investigation made it evidently clear that no town is immune from the deadly consequences of fentanyl.  In order to save lives, law enforcement continues to warn the public about fentanyl’s potency and traffickers mixing fentanyl with more illicit drugs for sale like cocaine, heroin, and methamphetamine.   I applaud the diligent work of the men and women at the DEA Albany District Office, Saratoga Springs Police Department, New York State Police, and the U.S. Attorney’s Office for the Northern District of New York.” 

Saratoga Springs Police Chief Shane Crooks stated: “I commend our investigators for working with their federal and state counterparts to arrest Steven Boice within a month of his moving to Saratoga Springs. Boice was a scourge on our community, and by stopping him we prevented further tragedy.  We extend our deepest sympathies to the family of the young man who died.”

Boice admitted that he sold controlled substances, including furanyl fentanyl, from his residence in Saratoga Springs.  Early on February 3, 2017, he sold approximately 50 small envelopes, each containing furanyl fentanyl, to B.L., a Saratoga County man who overdosed and died that same day.  Boice admitted that B.L. would not have died had B.L. not used the furanyl fentanyl that Boice sold to him.  Furanyl fentanyl is a fentanyl analogue that the DEA Administrator listed as a Schedule I controlled substance, on an expedited basis, in November 2016. 

On February 10, 2017, the DEA, Saratoga Springs Police and New York State Police executed a search warrant on Boice’s residence in downtown Saratoga Springs, and found furanyl fentanyl packaged for sale and 2 firearms.  Boice admitted to possessing a total of 363 green-colored envelopes containing furanyl fentanyl.

He also admitted to possessing 2 firearms to protect his drugs and drug proceeds.  When law enforcement entered his house on February 10, 2017, Boice had a loaded Mossberg Maverick shotgun, leaning against a wall of his bedroom and directly next to the door, and a loaded DPMS Panther Arms .223-5.56 mm semi-automatic rifle, under his bed.

In his plea agreement, Boice agreed to be sentenced to 240 months, or 20 years, in prison, to be followed by 3 years of supervised release.  Senior United States District Judge Gary L. Sharpe will decide whether to accept or reject the recommended sentence on or before the March 25, 2020 sentencing date.  If Judge Sharpe does not agree with a 20-year sentence, Boice would be allowed to withdraw his plea and the case would proceed to trial.  Boice has been in custody since his arrest on February 10, 2017.

This case was investigated by the DEA and its Capital District Drug Enforcement Task Force; the Saratoga Springs Police Department; and the New York State Police.  The Saratoga County District Attorney’s Office assisted in the investigation.

This case is being prosecuted by Assistant U.S. Attorney Michael Barnett.

SYRACUSE, NEW YORK – Julio Recio, age 51, a fugitive from justice and a citizen of the Dominican Republic, was extradited from Spain and transported in the custody of the United States Marshals Service to Syracuse, on November 21, 2019, to begin serving a 30‑month prison sentence imposed in 1999. The extradition came about after Recio pled guilty in 1999 to conspiracy to possess with intent to distribute cocaine, and then became a fugitive, announced United States Attorney Grant C. Jaquith and United States Marshal David McNulty.

In 1999, Recio and a co‑conspirator arranged for the transport of cocaine from New York City to Binghamton with the intent to distribute it there.  He was arrested in Binghamton and charged by federal indictment.  After Recio pled guilty to a drug conspiracy charge, Senior United States District Judge Thomas J. McAvoy sentenced him to a 30‑month term of imprisonment and ordered him to self-report to the United States Bureau of Prisons to serve his term of incarceration.  Recio never surrendered to prison and instead fled the United States. He evaded law enforcement until the United States Marshals Service recently identified him traveling between the Dominican Republic and Spain under an assumed name.  With the cooperation of the International Criminal Police Organization (INTERPOL) and local law enforcement authorities, Recio was apprehended in Spain in January 2019.  Following extradition proceedings in Spain, Deputy United States Marshals transported Recio to Syracuse, from where he will be transferred to a federal prison.

United States Attorney Grant C. Jaquith said, “Mr. Recio ran from the law, but he could not hide forever. Thanks to the exceptional work of the United States Marshals Service and our law enforcement partners overseas, Mr. Recio’s overdue debt to society will now be paid as he finally serves his sentence.  His case should highlight for fugitives everywhere that the long arm of the law is enduring, and we will enforce court orders and warrants around the globe, if necessary.”

United States Marshal David McNulty said, “Time and distance did not stop United States Marshals Service Investigators from catching this fugitive. I am very proud of them and their fine work on this case and thank all those law enforcement agencies from around the world who assisted us in returning Mr. Julio Recio to justice. This case is a great example of international cooperation and the long arm of the law at work in Syracuse New York.”

The drug case that led to the defendant’s 1999 conviction was prosecuted by Assistant United States Attorney Thomas P. Walsh (retired). The investigation that led to the international extradition of Julio Recio was conducted by the United States Marshals Service (Syracuse) and prosecuted by Assistant United States Attorney Carina H. Schoenberger.

BINGHAMTON, NEW YORK – Ralph V. Signoracci, IV, age 44, of Cohoes, New York, was sentenced today to serve a one-year term of probation and 100 hours of community service after previously pleading guilty to conspiring with Cohoes Mayor Shawn Morse to defraud Morse’s supporters by stealing campaign contributions for Morse’s personal benefit.

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).

Signoracci, while a member of the City of Cohoes Common Council and then an Albany County Legislator, served as treasurer of a political committee called “Friends of Shawn Morse,” from approximately November 2013 through January 2019.  He also served as treasurer of the political action committee “The Chairman’s PAC.” 

In pleading guilty to wire fraud conspiracy, Signoracci admitted that he and Morse solicited and received contributions to the committees.  Signoracci, at Morse’s direction, withdrew funds from the committees’ bank accounts so that Morse could use the funds to pay for his personal expenses, including vacations, entertaining, dining, and home repairs.  Signoracci also admitted to illegally using contributions made to The Chairman’s PAC to directly benefit Morse’s 2015 mayoral campaign. 

Signoracci admitted that on behalf of Morse, he concealed the nature of these expenditures by falsely reporting the purpose of the expenditures or by not reporting or disclosing them on campaign disclosure reports, as was required of local candidates for public office. 

Morse pled guilty to wire fraud in August; his sentencing is scheduled for January 7, 2020 in Albany.

This case was investigated by the FBI, and was prosecuted by former Assistant U.S. Attorney Megan Kinsella Kistler and Assistant U.S. Attorney Dan Hanlon. 

ALBANY, NEW YORK – Kyle Caton, age 31, of Saratoga Springs, New York, was sentenced today to 88 months in prison for receiving 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, Caton admitted that his offense involved more than 600 images depicting the sexual exploitation of children, including images of prepubescent children, toddlers, and images depicting sadistic or masochistic conduct.  Caton also admitted to purchasing child pornography from an encrypted web site that is not accessible via ordinary online search engines. 

Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will begin after Caton is released from prison, and ordered him to pay $12,000 in restitution to child pornography victims.  Caton will be required to register as a sex offender as a result of his conviction.

Caton was enlisted in the United States Navy prior to his arrest, and was discharged because of his crimes.

This case was investigated by HSI and prosecuted by Assistant United States Attorney Shira Hoffman as part of Project Safe Childhood. 

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

 

ALBANY, NEW YORK – Mark King, age 25, of Oneonta, New York, pled guilty yesterday to failing to update his sex offender registration, announced United States Attorney Grant C. Jaquith and United States Marshal David L. McNulty. 

King pled guilty to violating the federal Sex Offender Registration and Notification Act (“SORNA”), which requires a convicted sex offender to register, and keep that registration current, wherever he or she resides.  King admitted that he was previously convicted of attempted sexual abuse of a minor in Alaska, which required him to register as a sex offender for the rest of his life.  King further admitted that he moved from Alaska to New York, sometime after he completed serving a 6-month term of incarceration that concluded on July 17, 2018.  Since then, King admitted, he has failed to register as a sex offender in New York or update his registration to reflect his valid address and place of residence.

King faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life, when he is sentenced on March 11, 2020 by United States District Judge Mae A. D’Agostino.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

The case was investigated by the United States Marshals Service, and was prosecuted by Assistant United States Attorney Sahar L. Amandolare.

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

ALBANY, NEW YORK – James Brady, age 70, of Philmont, New York, was sentenced yesterday to 78 months in prison for distributing and possessing child pornography.

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).

Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will start after Brady is released from prison, and ordered him to pay $9,000 in restitution.  As a result of his conviction, Brady will be required to register as a sex offender upon his release from prison.

The case was investigated by the New York State Police and the FBI, and was prosecuted by Assistant United States Attorney Sahar L. Amandolare.

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

ALBANY, NEW YORK- Today, Attorney General William P. Barr announced the launch of Project Guardian, a new initiative designed to reduce gun violence and enforce federal firearms laws across the country. Specifically, Project Guardian focuses on investigating, prosecuting, and preventing gun crimes.

Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.

“Gun crime remains a pervasive problem in too many communities across America. Today, the Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian,” said Attorney General William P. Barr. “Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”

United States Attorney for the Northern District of New York Grant C. Jaquith said, “No one should have to live in fear of being shot.  Project Guardian extends and enhances our partnerships with local and state prosecutors and law enforcement agencies to share information and use our resources to target the most violent criminals and protect the public from gun violence.”

“ATF has a long history of strong partnerships in the law enforcement community,” said Acting Director Regina Lombardo. “Make no mistake, the women and men of ATF remain steadfast to our core mission of getting crime guns off of our streets. ATF and U.S. Attorneys nationwide will leverage these partnerships even further through enhanced community outreach initiatives and coordination with local, state, and tribal law enforcement and prosecutors to cut the pipeline of crime guns from those violent individuals who seek to terrorize our communities. Project Guardian will enhance ATF’s Crime Gun Intelligence, to include identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms.” 

Project Guardian’s implementation is based on five principles:

1. Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
2. Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees. Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
3. Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
4. Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety. Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
5. Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.

 

Federal law enforcement represents only about 15% of all law enforcement resources nationwide. Therefore, partnerships with state, local, and tribal law enforcement and the communities they serve are critical to addressing gun crime. The Department recognizes that sharing information with our state, local, and tribal law enforcement partners at every level will enhance public safety, and provide a greater depth of resources available to address gun crime on a national level. For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download

ALBANY, NEW YORK - Tyler C. King, age 30, of Dallas, Texas, was charged today with obstruction of justice for a scheme to falsify evidence during his recently concluded criminal trial.

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 a criminal complaint filed today, King obstructed justice by falsifying evidence for use in his federal criminal trial last week.  The 5-day trial ended on November 8 with King being convicted of conspiracy to commit computer fraud, computer fraud, and aggravated identity theft in connection with his hacking of a New York-based technology company.  According to today’s complaint, King created several false documents that he then sought to have his attorney use during the trial.

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

The charge filed against King carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

King will be sentenced on April 1, 2020 in connection with his trial convictions.  He faces at least 2 years in prison. 

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

ALBANY, NEW YORK – A jury on Friday convicted Tyler C. King, age 30, of Dallas, Texas, of computer fraud and aggravated identity theft in connection with his hacking of a New York-based technology company. 

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 evidence at the 5-day trial established that King – the founder of a defunct Texas computer repair company – conspired with Ashley St. Andria in 2015 to gain access to the computer network of a New York-based technology company that employed St. Andria.

While on the company’s network, King and St. Andria created unauthorized administrator accounts that gave them access to proprietary company information, including real-time access to the emails of senior company executives, personnel files, and financial records.  In response to the company shutting down the fake administrator accounts, King regained access to the network with the assistance of St. Andria, stole proprietary business records, and – through a series of sophisticated steps, including the use of password-cracking programs – bypassed the company’s security measures.  In doing so, King illegally used the credentials of two company employees based overseas.

The jury convicted King of conspiring to commit computer fraud, computer fraud, and two counts of aggravated identity theft. 

King faces at least 2 years and up to 19 years in prison, a term of post-imprisonment supervised release of up to 3 years, and a fine of up to $250,000, when Senior United States District Judge Thomas J. McAvoy sentences him on April 3, 2020.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

King’s co-conspirator, Ashley St. Andria, age 30, of Irving, Texas, pled guilty to computer fraud on August 15, 2018.  St. Andria is scheduled to be sentenced on February 13, 2020 in Albany by Judge McAvoy.

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

ALBANY, NEW YORK – Timothy J. Simpson, Jr., age 41, of Philmont, New York, was sentenced today to 37 months in prison, to be followed by 3 years of supervised release, for heroin and fentanyl trafficking in Columbia County.

The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, New York Division, U.S. Drug Enforcement Administration (DEA); and Columbia County Sheriff David P. Bartlett.

In pleading guilty, Simpson admitted that between April 2017 and March 2018, he purchased heroin and fentanyl from a supplier residing in the Bronx, New York.  Simpson and the supplier, Saul E. Pacheco, regularly met in the parking lot of a casino in Yonkers, New York.  They met so that Pacheco could resupply Simpson with heroin and fentanyl – typically between 40 and 60 grams per meeting.  After being supplied with heroin and fentanyl, Simpson drove back to Columbia County and sold the drugs to customers.

On March 22, 2018, Columbia County Sheriff’s Deputies stopped Simpson as he was driving on Route 9H in the Town of Claverack, Columbia County. Simpson was driving back from a meeting with Pacheco in Yonkers.

Deputies located two bags, each containing a powder substance, wrapped in black electrical tape, which Simpson had hidden above his car’s muffler. One bag contained approximately 56.1 grams of heroin. The other bag contained approximately 11.4 grams of fentanyl.

On September 10, 2019, Pacheco was sentenced to 5 years in prison for his role in the conspiracy. 

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

SYRACUSE, NEW YORK – Mark W. Sweeney, age 61, of Syracuse, was sentenced yesterday by United States District Judge David N. Hurd to 252 days in prison (time-served) for threatening to kill staff members employed at the Syracuse Veterans Affairs Hospital in Syracuse, announced United States Attorney Grant C. Jaquith and Chief Jon Godfrey, Veterans Affairs Police, Syracuse, New York. 

As part of his previously entered guilty plea, Sweeney admitted that he made a telephone call to the Veterans Crisis Line and made threatening statements directed toward Veterans Affairs Hospital staff, including that he intended to kill several people who treated him and had a plan and the means to do so. 

United States District Judge David N. Hurd also imposed a one-year term of supervised release and ordered the defendant not to have contact with the victims of his offense.

This case was investigated by the Veterans Affairs Police Department (Syracuse) and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian.

ALBANY, NEW YORK – An indictment unsealed today charges former Prattsville Town Supervisor Kory O’Hara, age 42, and Prattsville resident Stephen Baker, age 68, with fraud relating to grants extended to Prattsville in the wake of Hurricane Irene.  

The announcement was made by:

• United States Attorney Grant C. Jaquith;
• New York State Comptroller Thomas P. DiNapoli;
• James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI);
• John Tiano, Special Agent in Charge of the Detroit Field Office, Department of Homeland Security, Office of Inspector General (DHS-OIG); and
• Christina Scaringi, Special Agent in Charge, Housing and Urban Development, Office of Inspector General, Northeast Region (HUD-OIG). 

 

The indictment charges O’Hara and Baker with conspiracy to commit wire fraud, wire fraud, and theft concerning a program receiving federal funds.  O’Hara is also charged with bank fraud and making false statements in a loan application. 

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

In August 2011, Hurricane Irene caused significant damage to the Town of Prattsville, resulting in the issuance of millions of dollars in rehabilitation grants to Prattsville and its residents.  As Town Supervisor, O’Hara entered into various grant agreements, including with the New York State Housing Trust Fund Corporation and the New York Department of State. 

The indictment charges O’Hara and Baker with conspiring to fraudulently obtain grant funds. 

According to the indictment, between 2013 and 2015, Baker provided O’Hara with false invoices from his Prattsville-based modular home business, Moore’s Homes, purporting to reflect construction work on O’Hara’s automotive garage, O’Hara’s Service Station, which Moore’s Homes did not perform.  O’Hara issued checks to Moore’s Homes reflecting payment on the invoices, but Baker returned all of the money. 

O’Hara, who was Town Supervisor at the time, then submitted the false invoices and fully reimbursed checks to Prattsville and the New York State Housing Trust Fund Corporation to fraudulently obtain $24,915 in grant proceeds under the New York Main Street Program. 

The indictment further alleges that, between 2014 and 2016, O’Hara submitted the same false invoices and fully reimbursed checks to the New York Department of State and Office of the New York State Comptroller to fraudulently obtain grant proceeds for Prattsville under the Local Waterfront Revitalization Program.  In addition, the indictment alleges that O’Hara submitted other false invoices to obtain grant proceeds from the New York State Electric and Gas Corporation, and submitted the same false invoices and made false representations to NBT Bank, N.A., in applying for a business loan in November 2012. 

O’Hara and Baker appeared today in Albany before United States Magistrate Judge Daniel J. Stewart, and were released pending a trial scheduled before Senior United States District Judge Frederick J. Scullin, Jr.

This case is being investigated by the Office of the New York State Comptroller, Division of Investigation; FBI; DHS-OIG; and HUD-OIG, with assistance from the U.S. Commodity Futures Trading Commission Office of the Inspector General, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.

ALBANY, NEW YORK – John R. Elbayeh, aka Jean Elbayeh, age 43, of Albany, was arraigned today on an indictment charging him with stealing iPhones and other valuable items from mailed packages. 

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, according to a criminal complaint also filed in the case.  For approximately 2 years ending in December 2018, he stole valuable items from the mail, including iPhones, other phones, cash, coins, and jewelry, according to the complaint and indictment. 

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

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, where Elbayeh had just arrived from a flight originating in Cairo, Egypt.

Elbayeh was arraigned today before United States Magistrate Judge Daniel J. Stewart, who ordered him detained pending trial.

If convicted, Elbayeh faces up to 5 years in prison.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

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

ALBANY, NEW YORK – Anselmo Padron Martinez, age 47, a citizen of Mexico residing in Middletown, Virginia, was arrested Tuesday in Amsterdam, New York, during an effort to smuggle six Mexican citizens.  

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).

According to the criminal complaints, Amsterdam Police stopped a Virginia-registered vehicle following a traffic infraction at 2:50 a.m. on November 5.  Federal agents eventually responded and determined that the six passengers in the vehicle were illegal aliens from Mexico who had secretly entered the United States from Canada near Champlain, New York, mere hours prior to the vehicle stop.   

Padron Martinez is charged with transporting aliens unlawfully present in the United States for the purpose of commercial advantage and private financial gain.  He appeared before United States Magistrate Judge Daniel J. Stewart and was detained pending a detention hearing scheduled for November 8.  Of the smuggled aliens, five were detained and appeared before Judge Stewart today on misdemeanor charges of entry without inspection.  The charges in the complaints are merely accusations.  The defendants are presumed innocent unless and until proven guilty.

The charges filed against Padron Martinez carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a post-imprisonment 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.    

These cases are being investigated by HSI, with assistance from ICE-Enforcement and Removal Operations, and are being prosecuted by Assistant U.S. Attorney Edward P. Grogan.

ALBANY, NEW YORK – Edwin Rodriguez, a/k/a “Chaka,” age 31, of Amsterdam, New York, was indicted on October 30 on charges that he distributed heroin mixed with fentanyl on two occasions, and possessed and intended 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.

According to the indictment, Rodriguez distributed heroin mixed with fentanyl on April 18, 2019 and May 3, 2019, both times in Amsterdam. 

On May 15, 2019, according to the indictment and a previously filed criminal complaint, Rodriguez was the subject of a traffic stop in Amsterdam, and was found to be carrying, in his pants, more than 100 grams of heroin mixed with fentanyl.  Also on May 15, according to the complaint, law enforcement executed a search warrant on Rodriguez’s Amsterdam residence, and found additional quantities of heroin and fentanyl, and packaging materials.

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

If convicted, 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.  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 the Amsterdam Police Department, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.

ALBANY, NEW YORK – Albert Hessberg III, age 64, a disbarred attorney residing in Slingerlands, New York, was sentenced today to 68 months in prison for stealing at least $2 million in the course of defrauding his former clients and law firm. 

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.

Hessberg worked for 37 years in the Albany office of the law firm now known as Barclay Damon LLP (“Barclay”), practicing in the area of trusts and estates.  The Syracuse-based law firm terminated Hessberg for cause in March 2018. 

Starting in 2006 and continuing until his termination, Hessberg defrauded Barclay and law firm clients, by: stealing at least $2,060,803 entrusted to him as fiduciary and trustee for his clients; stealing funds from one client to replenish the account of another client from whom he had previously stolen; billing clients and receiving payments for legal services he did not perform; and stealing payments for legal services that should have been made to Barclay. 

United States Attorney Grant C. Jaquith stated: “Today’s sentence holds Albert Hessberg accountable for a 12-year crime spree and a staggering amount of betrayal by an attorney.  Hessberg did not care about his clients, their heirs, or his oath to faithfully discharge his obligations as an attorney when he stole $2 million.  Lawyers must be held to society’s highest standards, and we will not waver in our efforts to hold them accountable when they commit serious crimes.”

FBI Special Agent in Charge James N. Hendricks stated: “Albert Hessberg spent 12 years deliberately stealing from his clients and lying to their families.  He showed a despicable disregard for the very oath he took as an attorney and now he's facing the consequences. The FBI will continue to work with our partners to ensure this kind of malicious behavior is investigated and prosecuted.”

Hessberg pled guilty in May to 1 count each of wire fraud, mail fraud and filing a false tax return.   

United States District Judge Mae A. D’Agostino also imposed a 2-year term of supervised release, and ordered Hessberg to pay $2,638,147.40 in restitution, and to forfeit $2,060,803.40 to the government.  In sentencing Hessberg, she noted that he acted in a “ruthless and predatory fashion.”

In November 2018, the Appellate Division, Third Department suspended Hessberg from the practice of law, and followed with an order of disbarment in June 2019. 

This case was investigated by the FBI and Internal Revenue Service-Criminal Investigation, and was prosecuted by Assistant U.S. Attorney Michael Barnett.

ALBANY, NEW YORK – Gerwin Schalk, age 48, of Albany, pled guilty today to 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).

Schalk is a research scientist employed by the New York State Department of Health (DOH) in Albany, and serves 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.

United States Attorney Grant C. Jaquith stated: “Gerwin Schalk specializes in cutting-edge neurology research, but he failed to honor some of his most basic obligations as a state employee and federal grant recipient.  He lined his pockets with at least $70,000 in payments from a company whose products he used in his research, and then repeatedly lied about this brazen conflict of interest.  His guilty plea demonstrates that even acclaimed researchers must follow the rules, and that we and our law enforcement partners are committed to safeguarding the integrity of federally funded research.”

“Dr. Schalk abused his high-profile state position by using public funds to purchase neurotechnololgy products from a company that was paying him a handsome sum on the side,” said New York State Inspector General Letizia Tagliafierro. “Through his elaborate scheme, he lied, failed to disclose conflicts of interest and ultimately broke the public’s trust. I applaud the U.S. Attorney’s Office for the Northern District for working to ensure he will no longer be able to unscrupulously enrich himself.”

“By not disclosing payments totaling $70,000, Schalk failed to uphold the integrity of taxpayer-funded government research,” said Scott J. Lampert, Special Agent in Charge for DHHS-OIG’s New York Region. “We will continue working with our federal and state law enforcement partners to protect research supported by these critically needed funds.”’

Schalk faces up to 5 years in prison, up to 3 years of post-imprisonment supervised release, and a maximum $250,000 fine, when he is sentenced by Senior United States District Judge Lawrence E. Kahn.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

Schalk has agreed to pay $70,000 in restitution: $49,000 payable to the State of New York and $21,000 payable to NIH.  He has also agreed that within 60 days he will terminate his employment with the State of New York.

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

ALBANY, NEW YORK – Gary Ryan, age 48, of Clifton Park, New York, was indicted on October 16 and appeared today in court for his arraignment on charges of aggravated sexual abuse of a minor younger than 12 years old and transportation of minors with intent to engage in criminal 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).

Ryan, a registered sex offender, is charged with three counts of aggravated sexual abuse, each of which carries a sentence of at least 30 years in prison and up to life.  Ryan is also charged with six counts of transportation with intent to engage in criminal sexual activity, each of which carries a sentence of at least 10 years in prison 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.

Ryan was arraigned today before United States Magistrate Judge Daniel J. Stewart, and detained pending a trial before United States District Judge Mae A. D’Agostino.

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

This case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of the Colonie Police Department, Saratoga County Sheriff’s Office, and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Katherine Kopita.

 

SYRACUSE, NEW YORK – Upstate Construction Services, LLC (Upstate) and Structural Associates, Inc. (Structural) have agreed to pay more than $1 million in total to resolve allegations that they improperly obtained government contracts set-aside for companies qualified as historically underutilized business zone (HUBZone) firms, announced United States Attorney Grant C. Jaquith.

The United States occasionally utilizes government contracting to promote small businesses, including firms that qualify as HUBZone entities.  To be eligible for these contracts, a firm must qualify as a small business, have its principal office located in a HUBZone, and have a certain percentage of employees live in a HUBZone. 

The settlements resolve allegations that Upstate (which was a qualified HUBZone entity) and Structural (which was not) entered into a set of agreements – including two Silent Joint Venture Agreements – that were not disclosed to the government.  The agreements enabled Upstate to obtain bonding on jobs that it otherwise would not have been able to obtain, and in exchange Structural (which could not have bid on the jobs itself or as part of a joint venture with Upstate) received approximately half of Upstate’s profits on government contracts worth millions of dollars. 

United States Attorney Grant C. Jaquith said:  “Openness and integrity are critical to the fair and effective implementation of federal contracting assistance programs, including programs designed to help small businesses from economically distressed communities.  Secret agreements between firms to share profits on government contracts undermine the integrity of these programs, which we will continue to protect by persistently pursuing these cases with our investigative partners.”

“The settlement agreement announced today is the successful resolution of a joint investigation conducted by the Defense Criminal Investigative Service (DCIS), the U.S. Army Criminal Investigation Command and the U.S. Attorney’s Office, Northern District of New York,” stated Leigh-Alistair Barzey, Special Agent-in-Charge, DCIS Northeast Field Office.  “The integrity of the U.S. Department of Defense procurement process is of vital importance and is a DCIS investigative priority.  The DCIS will continue to work with its law enforcement partners to hold Defense Contractors accountable and ensure that quality products and services are provided to the U.S. military in compliance with contractual requirements.”

The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the Defense Criminal Investigative Service, and the United States Army Criminal Investigation Command. The United States was represented by Assistant U.S. Attorney Michael D. Gadarian.