Northern District of New York
Press releases recorded for this federal judicial district.
Former Superintendent of Oswego Wastewater Treatment Plant Sentenced for Clean Water Act ViolationRead the Press Release
SYRACUSE, NEW YORK - Gary Hallinan, 61, of Oswego, New York, was sentenced yesterday to 2 years of probation and a $1,000 fine after previously pleading guilty in federal court in Syracuse to negligently discharging wastewater from the City of Oswego Wastewater Treatment Plant into Lake Ontario in violation of the Clean Water Act on three dates between March 2015 and June 2015, announced Grant C. Jaquith, United States Attorney; Tyler Amon, Special Agent in Charge of the U.S. Environmental Protection Agency’s Criminal Investigation Division (EPA-CID) in New York; and Bernard Rivers, Director of Law Enforcement, New York State Department of Environmental Conservation (DEC).
Hallinan admitted when he pled guilty that in December 2014, while he was the Superintendent of the Oswego Wastewater Treatment Plant, the plant’s centrifuge, an essential piece of equipment to process wastewater and remove untreated or improperly treated sewage, stopped operating. As a result, the plant could no longer properly remove sewage from its wastewater. Over the next five months, Hallinan, as the superintendent of the plant, failed to take action to remove sewage from the plant’s wastewater or to report the broken centrifuge to the New York State Department of Environmental Conservation. As a result of the defendant’s negligence, the Oswego Wastewater Treatment Plant discharged wastewater containing solid sewage in violation of its permit under the Clean Water Act. These discharges took place on March 1, 2015; June 19, 2015; and June 23, 2015. The concentration of solid matter in the water discharged into Lake Ontario on June 23, 2015, was approximately 60 times higher than allowed by the plant’s permit.
United States Magistrate Judge David E. Peebles imposed the sentence, which included an order directing Hallinan to perform 200 hours of community service.
This case was investigated by the United States EPA-CID, the New York State DEC, Division of Law Enforcement and Bureau of Environmental Crimes Investigation Unit (BECI), and it was prosecuted by Assistant United States Attorney Michael F. Perry.
Capital Region Gang Member Pleads Guilty to Drug and Gun OffensesRead the Press Release
ALBANY, NEW YORK – Darrell Chapman, a/k/a “Bishop,” a/k/a “Sly Foxx,” age 39, of Rensselaer, New York, pled guilty today to narcotics and gun offenses.
The announcement was made by United States Attorney Grant C. Jaquith; New York State Police Superintendent Keith M. Corlett; and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Chapman is a self-described founder of the East Bishop Family, a set of the Bloods gang operating in the Capital Region. In pleading guilty, Chapman admitted to regularly obtaining distribution-size quantities of cocaine and heroin in New York City, which he and others sold in the Albany area. In addition to Albany, Chapman’s drug-distribution operations reached to Rochester, New York, and to Pennsylvania.
In the early morning hours of October 18, 2017, Chapman was stopped returning to Albany from New York City with 250 grams of heroin. Later in the day, law enforcement seized over 100 grams of cocaine from Chapman’s jewelry store, “The Freezer,” on South Pearl Street in Albany, and seized digital scales, a money counter, and $3,910 in cash from Chapman’s home in Rensselaer. In searching a Chevy Malibu parked behind Chapman’s home, law enforcement seized approximately 1.5 kilograms of cocaine, cutting agent, and additional digital scales. Law enforcement also seized four handguns and two rifles, some of which were loaded, and over 100 rounds of ammunition. Chapman admitted he used the guns to protect his drugs and drug proceeds.
In pleading guilty, Chapman agreed to be sentenced to 262 months in prison, to be followed by 5 years of supervised release. Senior United States District Judge Fredrick J. Scullin Jr. will sentence him on June 10, 2020.
This case was investigated by the New York State Police and the FBI, with assistance from the Albany County District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Chenango County Man Sentenced to 78 Months on Child Pornography ConvictionsRead the Press Release
SYRACUSE, NEW YORK – Brock Likens, age 34, of Greene, New York, was sentenced today to 78 months in prison for distributing, receiving 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.
As part of his guilty plea, Likens admitted that he knowingly received and distributed child pornography over the internet using peer-to-peer file sharing software. An undercover law enforcement officer downloaded 87 child pornography video files from Likens’ computer that he had made available to share with others. A subsequent search of Likens’ house revealed that he possessed, on electronic devices, 31 video files and 24 image files that depicted child pornography. The images and videos included depictions of the rape and sodomy of prepubescent children and toddlers.
Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will start after Likens is released from prison, and ordered him to pay $6,000 in restitution. As a result of his conviction, Likens will be required to register as a sex offender upon his release from prison.
This case was investigated by the New York State Police Computer Crimes Unit, Colonie Police Department, and the FBI. The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
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.
Ithaca-Area CPA Sentenced to 87 Months for Bankruptcy Fraud, Mail Fraud, and Money LaunderingRead the Press Release
BINGHAMTON, NEW YORK - Andrew N. LaVigne, age 66, of Lansing, New York, was sentenced today in federal court in Binghamton to serve 87 months in prison for bankruptcy fraud, mail fraud, and money laundering, announced United States Attorney Grant C. Jaquith, James 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 Internal Revenue Service, Criminal Investigations (IRS-CI), New York Field Division.
Senior United States District Judge Thomas J. McAvoy also ordered LaVigne to pay over $3.6 million in restitution to his victims.
LaVigne, a Certified Public Accountant (“CPA”) who practiced in the Ithaca, New York area for more than 30 years, filed for personal bankruptcy in 2004. At the time, he owed approximately $7.6 million to over 80 unsecured creditors following a failed scheme to use their money to purchase sports and entertainment memorabilia for resale. During the course of LaVigne’s years‑long bankruptcy proceedings, he claimed that his only asset was his home. He paid back no money to his 80 investors. In pleading guilty, LaVigne admitted that during his bankruptcy he used his CPA practice’s bank accounts to conceal between $3.5 and $9.5 million in assets from the United States Bankruptcy Court and the Office of the United States Trustee. LaVigne laundered money by depositing funds unrelated to his CPA practice into his business accounts and then using that money for his own benefit and that of his family, including buying himself sports memorabilia and writing checks to himself totaling tens of thousands of dollars that were never disclosed in his bankruptcy proceeding.
In pleading guilty, LaVigne also admitted to defrauding an elderly client in a $4.6 million mail fraud scheme. Between 2014 and 2016, LaVigne convinced the elderly victim to pay $3.6 million for shares of a company that LaVigne created, which LaVigne claimed would develop a piece of waterfront property on Pier Road in Ithaca. After the victim bought 90% of the company, LaVigne obtained an additional $1 million from her, purportedly as a further investment in the company. LaVigne did not use the $1 million to invest in the company, and he never developed the property. Instead, he used the victim’s money for his own purposes, including writing checks to himself, paying for the construction of a house for a family member, and funding payroll for his CPA practice. LaVigne also laundered payments he received from this scheme through his CPA practice accounts.
United States Attorney Grant C. Jaquith said, “Bankruptcy is intended to give honest debtors a fresh start. Andrew LaVigne is not that honest debtor. He abused the bankruptcy process for his own gain and attempted to leave his creditors with nothing while he hid and spent millions of dollars. Mr. LaVigne’s crimes did not stop there – he lied to an elderly client and defrauded her of millions of dollars that he spent on himself, his family, and his business. Mr. LaVigne’s frauds cost his victims dearly, and I am grateful to our partners at the IRS, the FBI, and the Office of the United States Trustee for helping to bring him to justice.”
“The FBI takes our responsibility to investigate and pursue those who commit fraud for personal gain very seriously,” said James N. Hendricks, Special Agent in Charge of the Federal Bureau of Investigation's (FBI) Albany Field Office. “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 Criminal Investigation uses financial investigative expertise to pursue those individuals who engage in corruption as demonstrated in this case by Mr. LaVigne.” said Jonathan D. Larsen, IRS Special Agent in Charge of the New York Field Office, “Money laundering and fraud constitutes a serious threat to our communities and to the integrity of our financial system; today’s sentence is an example of how the FBI and the IRS work together to make a formidable team as we prosecute the offenders.”
This case was investigated by the Internal Revenue Service, Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation (FBI), following a referral from the Office of the United States Trustee for the Northern District of New York. It was prosecuted by Assistant U.S. Attorneys Carina H. Schoenberger and Michael F. Perry.
Amsterdam Man Sentenced to 25 Months for Passport Fraud and Aggravated Identity TheftRead the Press Release
ALBANY, NEW YORK – Marvin Danilo Aquino a/k/a Marvin Padilla, age 23, of Amsterdam, New York, was sentenced today to serve 25 months in prison for making a false statement in a passport application and aggravated identity theft.
The announcement was made by United States Attorney Grant C. Jaquith and Timothy Dumas, Special Agent in Charge of the New York Field Office of the United States Department of State’s Diplomatic Security Service.
As part of his guilty plea on April 19, 2019, Aquino admitted that in October 2017, he visited a U.S. Post Office in Gloversville, New York, and filled out an application for a U.S. passport, which he then submitted with a picture of himself. On his application, however, Aquino listed the name, social security number, birthdate, and other identifying information of another person who had not authorized Aquino to file the application. In support of the application, Aquino also submitted numerous documents containing the same third party’s identifying information.
This case was investigated by the U.S. Department of State’s Diplomatic Security Service with assistance from the Social Security Administration Office of the Inspector General. It was prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal.
Watertown Man Pleads Guilty to Distribution, Receipt, and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Joseph Williams, 30, of Watertown, New York, pled guilty today to distributing, receiving and possessing child pornography, announced United States Attorney Grant C. Jaquith, James N. Hendricks, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation (FBI) and New York State Police Superintendent Keith Corlett.
In entering his guilty plea today in United States District Court, Williams, admitted that he used the Kik Messenger application to distribute and receive child pornography from other Kik users from January 2016 through June 2016. Williams used his iPhone to trade images of child pornography via the internet. Execution of search warrants on Williams’ desktop and laptop computers revealed that he possessed 4,875 images and 2,052 video files depicting minors engaged in sexually explicit conduct. The images and videos included depictions of the rape and sodomy of prepubescent children and toddlers.
Senior United States District Judge Thomas J. McAvoy will sentence Williams on January 2, 2020. He faces at least 5 years and up to 20 years in prison for the distribution and receipt charges and up to 20 years in prison on the possession charge, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000. Williams will also be required to register as a sex offender.
This case is being investigated by the Federal Bureau of Investigation (FBI) and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
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.
Mexican Citizen Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Jose Guadalupe Flores-Ayala, age 50, and a citizen of Mexico, was sentenced today to time served (1 month in prison) for illegally re-entering the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
Flores-Ayala has been arrested six times for being illegally present in the United States.
On August 24, 2019, he was encountered and arrested by an ICE Officer in Ballston Spa, New York. A fingerprint check of Flores-Ayala resulted in the discovery of the prior arrests and removals from the United States.
Following his sentencing, Flores-Ayala was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Ulster County Man Pleads Guilty to Crack Cocaine and Fentanyl ConspiracyRead the Press Release
ALBANY, NEW YORK – Luis Curet, age 34, of Ellenville, New York, pled guilty today to his involvement in a drug trafficking organization that operated in Ulster County.
The announcement was made by United States Attorney Grant C. Jaquith; Angel M. Melendez, Special Agent in Charge of Homeland Security Investigations (HSI), New York; Ulster County Sheriff Juan Figueroa, whose office leads the Ulster Regional Gang Enforcement Narcotics Team (URGENT); Ulster County District Attorney Holley Carnright; New York State Police Superintendent Keith M. Corlett; and Village of Ellenville Police Chief Philip Mattracion.
Curet admitted that between November and December 2018, he operated a stash house, and assisted in the distribution of crack cocaine and heroin laced with fentanyl to street dealers on behalf of the organization.
Curet 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. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors
The following defendants have also pled guilty in connection with the conspiracy, and face the following penalties:
Name
Age
Minimum
Maximum
Edwin Jorge
46
None
20 years
Randy Mandiville, aka “B-Murda”
30
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
Iqwan Mandiville, aka “Qwan”
26
5 years
40 years
Jennifer McCombs, aka “Jennifer Marks”
49
5 years
40 years
Naveo is also charged with unlawful possession of a Mossberg shotgun as a previously convicted 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.
Michael Mann Charged with Bank FraudRead the Press Release
ALBANY, NEW YORK – Michael T. Mann, age 49, of Saratoga County, New York, appeared in federal court today on a criminal complaint charging him with committing a $70 million bank fraud.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to the complaint (copy attached), Mann fraudulently obtained at least $70 million in loans from banks and other financial institutions. He created companies that had no purpose other than to be used in the fraud; fraudulently represented to banks and financing companies that his fake businesses had certain receivables that they did not have; and obtained loans and lines of credit by borrowing against these non-existent receivables. Mann began the fraudulent scheme in 2010 or 2011.
Mann operates MyPayrollHr, based in Clifton Park, New York.
Until this month, MyPayrollHR processed payroll and tax payments for approximately 1,000 small-business clients located across the country.
On September 5, 2019, MyPayrollHR suddenly ceased operations after Mann’s banks froze his accounts, suspecting him of fraud. This account freeze affected MyPayrollHR’s clients because, as part of the fraudulent scheme, Mann diverted clients’ payroll payments to a bank account he controlled.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Mann appeared today before United States Magistrate Judge Daniel J. Stewart. Mann was released on a financial bond and with pretrial supervision conditions.
If convicted of the charge set forth in the complaint, Mann faces up to 30 years in prison, a maximum $1 million fine, and up to 5 years of post-release supervision. 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, with assistance from the New York State Attorney General’s Office, and is being prosecuted by Assistant U.S. Attorneys Michael Barnett and Cyrus P.W. Rieck.
The FBI continues to seek information from people and businesses who may have suffered financial loss due to the alleged activities of Mann, MyPayroll, and affiliated companies. Information can be sent to the FBI by filling out a form on the FBI’s web site, available at https://forms.fbi.gov/seeking-victim-information-in-mypayrollhr-investigation.
Maine Man Charged with Attempted Sex Offenses Against a MinorRead the Press Release
ALBANY, NEW YORK – Jay Scott Cloutier, age 56, of Lyman, Maine, was charged today with attempting to entice and coerce a minor into committing criminal sex acts and traveling in interstate commerce for the purpose of meeting a minor for sex.
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, Cloutier used a social networking and online dating application, text messages and phone calls to attempt to entice and coerce an individual whom he believed to be a 14- or 15-year-old boy to engage in various sexual acts with him, and he traveled from Maine to Colonie, New York, with the motivating purpose of engaging in such sexual acts with the boy. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Cloutier appeared today in Albany before United States Magistrate Judge Daniel J. Stewart, and was detained pending further proceedings.
If convicted, Cloutier faces a mandatory minimum of 10 years and up to life in prison on the enticement charge and up to 30 years in prison on the traveler charge, a fine of up to $250,000, per charge, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant U.S. Attorney 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/.
Columbia County Man Pleads Guilty in Connection with Two Overdose DeathsRead the Press Release
ALBANY, NEW YORK – Jacob Ebel, age 32, of Niverville, New York, pled guilty today to drug conspiracy and possession charges, and admitted that he distributed heroin and fentanyl to two people who took these drugs and then died in Columbia County in July 2016. He agreed to be sentenced to 18 years in prison.
The announcement was made by United States Attorney Grant C. Jaquith; New York State Police Superintendent Keith M. Corlett; and Columbia County Sheriff David P. Bartlett.
United States Attorney Grant C. Jaquith stated: “Jacob Ebel was a merchant of death whose heroin and fentanyl killed two people in less than three weeks. Thanks to the quick and thorough work of our law enforcement partners, Ebel is being held responsible for his crimes and the pain and suffering he inflicted on two families. We will continue to pursue those who peddle this poison, while also maintaining our robust education and outreach efforts aimed at turning the tide of opiate addiction.”
State Police Superintendent Keith M. Corlett stated: “I commend our members at Troop K and our law enforcement partners for bringing this perpetrator to justice. Jacob Ebel had absolutely no regard for his victims, instead selling them a dangerous and deadly mix of illegal drugs just to make a profit. We have absolutely no tolerance for those who destroy lives, families and communities for their own personal gain.”
Columbia County Sheriff David Bartlett stated: “There should be zero tolerance for those who peddle poison on our streets. These dealers are killers and we will continue to work with our federal and state law enforcement partners to bring them to justice for their heinous behavior. I thank the U.S. Attorney’s Office, U.S. Drug Enforcement Administration, New York State Police, Columbia County District Attorney Paul Czajka and members of the Columbia County Sheriff’s Office who all worked collaboratively to deliver justice in this case.”
In pleading guilty, Ebel admitted to selling heroin, fentanyl and other controlled substances, from 2014 through July 26, 2016, in Columbia County.
Ebel admitted to dealing heroin and fentanyl first to a man identified as S.B., who overdosed on July 3, 2016 and died five days later, and then to a woman identified as S.S., who overdosed and died on July 23, 2016.
S.B., age 29, overdosed and was found unconscious in Niverville on July 3, 2016, less than a mile from Ebel’s house. A State Police investigation established that prior to the overdose, S.B. had had extensive text message communications with Ebel, and that Ebel had sold heroin and fentanyl to S.B. at about 2:15 p.m. on July 3, 2016, several hours before S.B. was found unresponsive. Inside S.B.’s vehicle, State Police located a folded, yellow sticky note with heroin and fentanyl, and “4-0” written on the outside – the amount of money that S.B. told the defendant he had in the text message conversations.
Ebel and S.B. were friends. Ebel knew that S.B. had died, but he kept dealing heroin and fentanyl.
On the morning of July 23, 2016, the Columbia County Sheriff’s Office (CCSO) responded to a house in Stuyvesant, New York, and found S.S. dead. Sheriff’s Investigators found three folded sticky notes in a small plastic bag on her bed; the notes contained heroin and fentanyl. The CCSO investigation established that Ebel had sold heroin and fentanyl to S.S.’s husband in the days prior to S.S.’s death, and that S.S., age 19, had taken these drugs and died.
Law enforcement executed a search warrant on Ebel’s house in the early morning hours of July 26, 2016. Investigators seized about 16 grams of heroin and fentanyl that Ebel intended to sell. Ebel was arrested that day and has been in custody ever since.
In his plea agreement, Ebel agreed to be sentenced to 216 months, or 18 years, in prison, to be followed by 3 years of supervised release. United States District Judge Mae A. D’Agostino will decide whether to accept or reject the recommended sentence on or before the January 8, 2019 sentencing date. If Judge D’Agostino does not agree with an 18-year sentence, Ebel would be allowed to withdraw his plea and the case would proceed to trial.
This case was the result of a joint investigation conducted by the New York State Police-Troop K and Columbia County Sheriff’s Office, with assistance from the U.S. Drug Enforcement Administration (DEA) and the office of Columbia County District Attorney Paul Czajka. The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Former State DOT Employee Sentenced for Federal Program TheftRead the Press Release
ALBANY, NEW YORK – Jerome Lauzon, age 45, of Gansevoort, New York, was sentenced today to 1 year of probation for misappropriating more than $17,000 from a federally funded program.
The announcement was made by United States Attorney Grant C. Jaquith; Douglas Shoemaker, Special Agent in Charge of the Northeast Regional Office of the United States Department of Transportation, Office of Inspector General (USDOT-OIG); New York State Inspector General Letizia Tagliafierro; and Robert L. Keihm, Chief Investigator for the New York State Department of Transportation (NYSDOT) Investigations Bureau.
Lauzon, formerly an employee of the NYSDOT, was the Engineer in Charge of a $10.5 million road reconstruction project in Washington County, New York, from 2012 to 2017. The Federal Highway Administration, a USDOT agency, provided 80 percent of the funding for the contract.
In pleading guilty, Lauzon admitted that employees of the project contractor purchased more than $17,000 in goods and services for Lauzon’s personal use, and Lauzon unlawfully reimbursed the contractor for these purchases using project funds. These goods and services included more than $2,500 worth of repairs to Lauzon’s personal car, a home entertainment surround sound system, a laptop computer, a computer monitor, a printer, lumber for a treehouse, a paint sprayer, a lawnmower, a snowblower, and a power washer. Lauzon previously paid restitution to New York State as part of a related case brought in Albany City Court.
This case was investigated by USDOT-OIG, NYSDOT’s Investigations Bureau, and the Office of the New York State Inspector General, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Bronx Man Sentenced to 60 Months for Heroin Trafficking in Columbia CountyRead the Press Release
ALBANY, NEW YORK – Saul E. Pacheco, age 37, of the Bronx, New York, was sentenced today to 60 months in prison, to be followed by 4 years of supervised release, for conspiring with another person to distribute more than 100 grams of heroin 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, Pacheco admitted to supplying heroin to Timothy J. Simpson Jr., a Columbia County drug dealer, from at least April 2017 through March 2018. Pacheco was arrested on April 4, 2018, while attempting to meet Simpson in the parking lot of a casino in Yonkers, Westchester County. In the parking lot, DEA Special Agents located a plastic bag containing approximately 68 grams of heroin, which Pacheco had discarded once he noticed agents approaching him.
Simpson has pled guilty to drug conspiracy and possession charges, and is scheduled to be sentenced on October 16, 2019.
This case was investigated by the DEA and the Columbia County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Pacheco has also pled guilty to an unrelated charge of conspiring to distribute more than 40 grams of fentanyl, in a case investigated by the DEA and prosecuted by the United States Attorney’s Office for the Southern District of New York. Pacheco will be sentenced to at least 5 years in prison in that case as well.
Albany Felon Sentenced to 37 Months for Unlawful Firearm PossessionRead the Press Release
ALBANY, NEW YORK – Juan A. Torres, age 36, of Albany, was sentenced today to 37 months in prison, to be followed by 3 years of supervised release, for unlawfully possessing a firearm and ammunition as a felon.
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, Torres admitted that on July 13, 2018, he sold a Kel-Tec 9 millimeter pistol, and four rounds of Luger ammunition, to another person in Rotterdam, New York. Torres had two felony convictions at the time, including a felony drug conviction for which he was sentenced to probation just weeks prior to selling the firearm on July 13, 2018.
This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Rensselaer Man Sentenced to 20 Years for Distribution and Receipt of Child PornographyRead the Press Release
ALBANY, NEW YORK – Bruce Williams, age 38, was sentenced today to 240 months in prison for distributing and receiving 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.
As part of his guilty plea, Williams admitted that he knowingly received and distributed child pornography over the internet using peer-to-peer file sharing software. A search warrant executed at Williams’s house revealed that he possessed, on electronic devices, 122 video files and 400 image files that depicted child pornography.
Senior United States District Judge Thomas J. McAvoy also imposed a life term of supervised release, which will start after Williams is released from prison, and ordered a payment of $5,000 in restitution to child pornography victims. As a result of his conviction, Williams will be required to register as a sex offender upon his release from prison.
This case was investigated by the New York State Police-Computer Crimes Unit, Colonie Police Department, Rensselaer Police Department, and the FBI. The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
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.
Menands Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Kenneth J. Monahan, age 44, of Menands, New York, pled guilty today to one count of distribution of child pornography, one count of receipt of child pornography, and two counts of 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).
As part of his guilty plea, Monahan admitted to using peer-to-peer software to distribute numerous images of child pornography in February and April 2018. He also admitted to downloading child pornography from the Internet from 2017 through April 2018, and to possessing over 1,300 images of child pornography in May 2018.
Sentencing is scheduled for January 6, 2020 in Albany, before Senior United States District Judge Thomas J. McAvoy. Monahan faces a minimum of 5 years and up to 20 years in prison. The Court is also required to impose a term of supervised release of between 5 years and life, and Monahan will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI with assistance from the New York State Police, and is being prosecuted by Assistant U.S. Attorney Alicia G. 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/.
Liberian Man Sentenced for Making False StatementsRead the Press Release
SYRACUSE, NEW YORK –Augustine Sneh, age 31, a Liberian citizen living in Philadelphia, Pennsylvania, was sentenced today to time served (11 months in jail), after being convicted at trial of making a false statement and making a false claim of United States citizenship.
The announcement was made by United States Attorney Grant C. Jaquith and Steven Bronson, Area Port Director, United States Custom and Border Protection (CBP).
Sneh was convicted following a 2-day trial in May 2019. Trial evidence showed that on October 16, 2018, Sneh was denied admission into Canada at the Saint Bernard de LaColle, Quebec Port of Entry. Due to the Canadian refusal, Sneh was required to report to the Champlain Port of Entry in New York. During immigration inspection at the Champlain Port of Entry, Sneh stated that he was a United States citizen born in Philadelphia. Trial evidence showed that Sneh is an alien, a citizen of Liberia, born in Liberia, and that he is not a United States citizen. Evidence showed that Sneh entered the United States in 2000. Sneh has resided in the United States since 2000 and he is the subject of a pending removal order, issued by an Immigration Judge in February 2012.
Following his sentencing, Sneh was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by CBP and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Johnstown Sex Offender Sentenced to 20 Years on Child Pornography ConvictionsRead the Press Release
ALBANY, NEW YORK – Charles Guyer, age 60, of Johnstown, New York, was sentenced today to 240 months in prison, for distributing and receiving child pornography.
The announcement was made by United States Attorney Grant C. Jaquith; Kevin Kelly, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo Field Office; and New York State Police Superintendent Keith M. Corlett.
At the time of the offenses, Guyer was a registered sex offender with New York State, having been previously convicted of sexually abusing a child in Montgomery County in 1996.
As part of his guilty plea on May 13, 2019, Guyer admitted to using two laptop computers equipped with peer-to-peer file-sharing software to download and distribute child pornography between December 2017 and April 2018. Guyer has been in federal custody since his arrest on April 24, 2018.
Senior United States District Judge Thomas J. McAvoy also imposed a 20-year term of supervised release, to be served upon completion of Guyer’s prison sentence.
This case was investigated by HSI and the New York State Police, and was prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
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.
Guilderland Man Indicted for Sexually Exploiting a ChildRead the Press Release
ALBANY, NEW YORK – Blake Spears, age 38, of Westmere, Town of Guilderland, New York, was indicted on August 29 on charges of sexual exploiting a child, and child pornography distribution and possession.
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 indictment alleges that Spears sexually exploited a child on December 1, 2018, distributed child pornography on December 26, 2018, and possessed child pornography on February 15, 2019.
A previously filed criminal complaint alleges that Spears used the Kik phone messaging application to distribute child pornography in December 2018. On February 15, 2019, FBI agents found child pornography on both a USB drive in Spears’s residence and on Spears’s cell phone.
The charges in the complaint and indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Spears, who has been in custody since February 15, 2019, faces at least 15 years in prison if convicted of all charges, as well as a term of post-release supervision of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state and local law enforcement agencies, including the Colonie Police Department and New York State Police. The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Franklin County Man Charged with Sexually Exploiting a ChildRead the Press Release
ALBANY, NEW YORK – Robert B. Fitzgerald, age 81, of St. Regis Falls, New York, was arrested on Wednesday on a criminal complaint charging him with sexually exploiting a child.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo Field Office.
The criminal complaint alleges that Fitzgerald: sexually exploited a girl for approximately three years and beginning when the child was 14 years old; photographed and video-recorded the sexual abuse; and distributed and sold this child pornography to others. According to the complaint, on August 9, 2019, Fitzgerald possessed a computer that contained videos depicting Fitzgerald sexually abusing the child when she was 17 years old.
The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty
If convicted of the charge set forth in the complaint, Fitzgerald faces at least 15 years and up to 30 years in prison, and can also be sentenced to at least 5 years and up to lifetime post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Fitzgerald appeared today for a detention hearing before United States Magistrate Judge Gary L. Favro, and was ordered detained.
This case is being investigated by HSI and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Katherine Kopita.
Plattsburgh Man Sentenced to 78 Months for Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Sean R. Fabian, age 42, of Plattsburgh, New York, was sentenced yesterday to 78 months in prison for conspiring to distribute 300 grams of cocaine.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, United States Drug Enforcement Administration (DEA), New York Division; and Plattsburgh City Police Chief Levi J. Ritter.
Fabian was convicted by a jury on April 5, 2019 following a four-day trial. The evidence showed that on February 11, 2018, Fabian conspired with Hannah Dyer to traffic 300 grams of cocaine from New York City to Plattsburgh for distribution. On February 13, 2018, the pair met in Albany where Fabian provided the 300 grams of cocaine to Dyer, who was to take the cocaine to Plattsburgh. The New York State Police stopped Dyer’s vehicle in Clinton County and found the 300 grams of cocaine in a thermos, submerged in a fish stew.
United States District Judge Mae A. D’Agostino also sentenced Fabian to 6 years of supervised release, to follow his incarceration. Fabian has been in custody since his arrest on June 21, 2018.
This case was investigated by the DEA and the Plattsburgh City Police Department, and was prosecuted by Assistant U.S. Attorneys Douglas Collyer and Troy Anderson.
Onondaga County Man Sentenced to 24 Months for Investment FraudRead the Press Release
SYRACUSE, NEW YORK – Charles H. Riel, age 60, of Clay, New York, was sentenced today by Senior United States District Court Judge Frederick J. Scullin, Jr. to serve 24-months’ imprisonment, to be followed by three years of post-release supervision for defrauding investors of hundreds of thousands of dollars. As part of his sentence, Riel was ordered to pay $197,500 in restitution to his victims. The announcement was made by United States Attorney Grant C. Jaquith, James 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 Internal Revenue Service, Criminal Investigation (IRS-CI), New York Field Division.
As part of his guilty plea, Riel admitted that he was the founder, principal member, and officer of REinvest, LLC, a New York limited liability company based in Clay. From June 2010, through May 2014, Riel provided false, fraudulent, and misleading information about REinvest, LLC, including historical rates of return on supposed REinvest LLC investments and fictitious testimonials touting the financial successes of non-existent REinvest, LLC investors. As part of his guilty plea, Riel also admitted that he collected money from a total of five investors, all of whom had received false and fraudulent information regarding the nature of Riel’s business and how their funds would be utilized. Riel used a substantial portion of the monies received from investors to pay for his own personal living expenses rather than investing the funds in ways that could result in a legitimate return. He also used money from later investors to pay back a portion of the investment of an earlier investor.
This case was investigated by IRS-CI and the FBI, and was prosecuted by Assistant U.S. Attorneys Nicolas Commandeur and Michael D. Gadarian.
Guatemalan Citizen Sentenced to 60 Months for Alien SmugglingRead the Press Release
ALBANY, NEW YORK – Jose Eduardo Lopez-Hernandez, age 21, and a citizen of Guatemala who was residing in Providence, Rhode Island, was sentenced yesterday to 60 months in prison for smuggling aliens.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
As part of his guilty plea, Lopez-Hernandez admitted that on August 22, 2018, he and a co-defendant were paid to travel from Rhode Island to Chateaugay, New York, where they picked up five Romanian citizens who had just illegally entered the United States from Canada. When Border Patrol attempted to stop their vehicle, the co-defendant led Border Patrol on a high-speed chase before crashing the vehicle in Ellenburg, New York. Lopez-Hernandez, the co-defendant, and three of the Romanians fled the crash scene, but were all apprehended within hours; no one was injured.
Following his term of imprisonment, Lopez-Hernandez will be transferred to the custody of the U.S. Department of Homeland Security, for removal proceedings.
This case was investigated by the Border Patrol, and was prosecuted by Assistant U.S. Attorneys Katherine Kopita and Douglas Collyer.
Former Registered Nurse Pleads Guilty to Illegal Distribution of Opioids, Health Care Fraud, Aggravated Identity Theft, and Obstruction of JusticeRead the Press Release
ALBANY, NEW YORK – Sarah Brown, age 42, of Akra, Greene County, New York, pled guilty today to conspiring to distribute controlled substances, health care fraud, aggravated identity theft, and obstruction of justice.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Ray Donovan, United States Drug Enforcement Administration (DEA), New York Division.
As part of her guilty plea, Brown, a former registered nurse, admitted that between 2015 and 2017, she worked with a co-conspirator, Dr. Myra Mabry, to obtain prescriptions for oxycodone, morphine, and hydromorphone, for no legitimate medical purpose, by impersonating Mabry’s patients at pharmacies, knowing that health care benefit programs would pay the cost of the drugs.
Brown also admitted that she attempted to obstruct a federal investigation by testifying falsely before a federal grand jury that she was blackmailing Mabry into providing the prescriptions. As Brown admitted in her guilty plea, that was a lie, because Mabry was not the subject of an extortionate scheme, and was a willing member of the conspiracy to distribute opioids for no legitimate medical purpose. Brown admitted that Mabry agreed to pay Brown for the false testimony in the hope of minimizing Mabry’s criminal exposure and keeping her medical license.
Brown faces a mandatory 2-year term of imprisonment on the aggravated identity theft charge, and up to 20 years in prison on the remaining charges, when she is sentenced by United States District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the DEA, with assistance from the New York State Bureau of Narcotic Enforcement, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Albany Man Indicted for Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK – Thomas Rosario, age 35, of Albany, was arraigned on August 26 on an indictment charging him with distributing child pornography through the Kik phone messaging application.
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 indictment alleges that in May 2017, Rosario – using the Kik name “tommynewtothis” – shared child pornography by providing others with links to Dropbox.com remote storage accounts that contained child pornography. On August 26, 2019, Rosario appeared before United States Magistrate Judge Christian F. Hummel and was released under pretrial supervision conditions.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Rosario faces at least 5 years and up to 20 years in prison, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Rosario would also have to register as a sex offender upon his release from prison.
This case is being investigated by the FBI, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
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/.
Clifton Park Man Arrested for Attempting to Entice and Coerce Minor into SexRead the Press Release
ALBANY, NEW YORK – Kevin Nugent, age 41, of Clifton Park, New York, was arrested on August 27 on a complaint charging him with attempted enticement and coercion of a minor into committing criminal sex acts.
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).
Nugent was arraigned yesterday in Albany before United States Magistrate Judge Christian F. Hummel. He was ordered detained pending trial.
The complaint charges Nugent with attempting to entice and coerce a minor, whom he believed to be a 14 year-old girl, to engage in various sexual acts with him. The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
The charge filed against Nugent carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Additionally, if convicted, Nugent would be required to register as a sex offender.
This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
Federal Corrections Officer Sentenced to 120 Months on Firearm, Drug and Bribery ConvictionsRead the Press Release
ALBANY, NEW YORK – Federal Bureau of Prisons Corrections Officer Carlos Ochoa, age 33, of Puerto Rico, was sentenced today in two separate cases to a total of 120 months in prison.
The announcement was made by:
- United States Attorneys Grant C. Jaquith (Northern District of New York) and Rosa Emilia Rodríguez-Vélez (District of Puerto Rico);
- Federal Bureau of Investigation (FBI) Special Agents in Charge James N. Hendricks (Albany Field Office) and Douglas A. Leff (San Juan Field Office); and
- Department of Justice Office of the Inspector General (DOJ OIG) Special Agents in Charge James F. Boyersmith (Miami Field Office) and Guido Modano (New York Field Office).
In one case, which was originally charged in the District of Puerto Rico before being transferred to the Northern District of New York, Ochoa pled guilty and admitted to working with an individual in Puerto Rico in 2017 to provide an armed escort for a shipment of multiple kilograms of cocaine in exchange for $5,000. At the time, Ochoa was working as a Federal Corrections Officer in Puerto Rico. He pled guilty to attempting to aid and abet possession with intent to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime. This case was also investigated by the Miami Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
In the second case, charged in the Northern District of New York, Ochoa pled guilty and admitted to accepting a $600 cash bribe in October 2012, in exchange for smuggling an iPhone to an inmate while Ochoa was employed at Federal Correctional Institution (FCI) Ray Brook, New York. He pled guilty to bribery by a public official.
Senior United States District Judge Frederick J. Scullin, Jr. also imposed a 4-year term of supervised release, to begin after Ochoa is released from prison. Ochoa was also ordered to forfeit $17,840 and a black 2015 Cadillac Escalade.
These cases were investigated by the FBI, the U.S. Department of Justice Office of the Inspector General, and the ATF.
The cases were prosecuted by Assistant U.S. Attorneys Douglas Collyer and Katherine Kopita of the Northern District of New York, and Assistant U.S. Attorney Seth A. Erbe of the District of Puerto Rico.
Ithaca Man Arrested for Attempting to Entice and Coerce Minors into SexRead the Press Release
SYRACUSE, NEW YORK – Jeffrey Blake, age 49, of Ithaca, New York, was arraigned yesterday on a criminal complaint charging him with attempting to entice and coerce two minors into a sexual act.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The complaint charges Blake with attempting to entice and coerce two minor females, whom he believed to be 9 years old and 13 years old, to engage in various sexual acts with him. The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
The charge filed against Blake carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Blake was arraigned yesterday in Johnson City, New York, before United States Magistrate Judge Thérèse Wiley Dancks, and detained pending further proceedings.
This case is being investigated by the FBI, and is being prosecuted by Assistant U.S. Attorney Sahar L. Amandolare.
Ellenville Man Sentenced for Defrauding the Social Security AdministrationRead the Press Release
ALBANY, NEW YORK – Anthony Alvarez, age 38, of Ellenville, New York, was sentenced yesterday to 15 months in prison, to be followed by 3 years of supervised release, for fraudulently obtaining more than $38,000 in benefits from the Social Security Administration (SSA).
The announcement was made by United States Attorney Grant C. Jaquith and John F. Grasso, Special Agent in Charge of the SSA Office of the Inspector General, New York Field Office.
As part of his January 3, 2019 guilty plea, Alvarez admitted that from January 2011 to February 2015, he fraudulently concealed from the SSA the fact that he was living in the Philippines so that he could continue to receive Supplemental Security Income benefits.
Senior United States District Judge Gary L. Sharpe also ordered Alvarez to pay $38,894.42 in restitution to the SSA.
This case was investigated by the SSA Office of the Inspector General, and was prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal and Special Assistant U.S. Attorney Jason W. White.
Liverpool Business Owner Sentenced to 60 Months for Money Laundering and Maintaining Drug-Involved PremisesRead the Press Release
SYRACUSE, NEW YORK – Jayesh Patel, age 49, of Liverpool, New York, was sentenced yesterday to 60 months in prison and a 3-year term of supervised release for engaging in money laundering and maintaining a drug-involved premises, announced United States Attorney Grant C. Jaquith and Jonathan D. Larsen, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), New York Field Division. As part of a related civil forfeiture case, Patel agreed to forfeit $931,588.06 in drug proceeds that were seized in cash during search warrants and from bank accounts. Additionally, Patel forfeited 5,150 shares of Solvay Bank stock worth over $200,000.00.
In sentencing the defendant, United States District Judge David N. Hurd said that Patel “became wealthy by exploiting his customers’ addictions.” Patel, co-owner of Munchies convenience store in Solvay, New York, and the Econo Lodge Inn and Suites located near the Syracuse airport, admitted that he sold crack cocaine on a daily basis to drug customers from inside these two businesses. As part of his guilty plea, Patel admitted that he sold crack cocaine to two police informants working with the Syracuse Police Department on 14 separate occasions from inside Munchies. Patel also admitted to laundering drug proceeds utilizing his business account at Solvay Bank.
Law enforcement officers executed search warrants at Munchies, the Econo Lodge, and Patel’s residence and truck, from which were seized large amounts of U.S. currency. Stock and funds held in bank accounts were also seized by IRS-CI. In total, Patel forfeited over $1 million dollars in drug proceeds.
This case was investigated by the Internal Revenue Service-Criminal Investigation (IRS-CI), the Syracuse Police Department-Special Investigation Division, and the United States Department of Agriculture-Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys Tamara Thomson and Michael Perry, with assistance from the Onondaga County District Attorney’s Office.
Former Cooperstown Teacher Pleads Guilty to Sexually Exploiting Three ChildrenRead the Press Release
BINGHAMTON, NEW YORK – Justin Hobbie, age 41, of Springfield Center, New York, pled guilty today to three counts of sexual exploitation of a child.
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).
Hobbie was a gym and health teacher in Cooperstown, New York, until his arrest in December 2018. In pleading guilty, Hobbie admitted that from 2015 to 2018, he persuaded, induced, enticed and coerced three girls under the age of 16 to masturbate and show him their genitalia by transmitting live depictions of this sexually explicit activity to him. These sexually explicit acts and images were recorded by Hobbie so that he could look at them again.
Hobbie also admitted that he persuaded, induced, enticed and coerced the three girls to take and send him pictures of their genitalia. In response to Hobbie’s instructions to do so, the three children took lewd and lascivious pictures of their genitalia for him, and at his request sent those pictures to him using the Kik and Snapchat phone messaging applications.
Senior United States District Judge Thomas J. McAvoy will sentence Hobbie on December 19, 2019. Hobbie faces at least 15 years in prison on each count, with a maximum penalty of 30 years in prison per count. The term of imprisonment for each count can run concurrent or consecutive to the term of imprisonment for other counts, at the discretion of the Court. Hobbie will be required to serve a term of supervised release of at least 5 years and up to life, following his term of imprisonment. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Hobbie will also be required to register as a sex offender.
This case was investigated by HSI Albany with assistance from the New York State Police Computer Crimes Unit, the Internet Crimes Against Children Task Force, and U.S. Customs and Border Protection, and is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
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.
Pennsylvania Man and California Woman Charged with Drug and Firearms CrimesRead the Press Release
SYRACUSE, NEW YORK – Kyle Leeper, 35, of Pennsylvania and Arlene Rodriguez, 35, of Almonte, California appeared today in federal court in Syracuse on an indictment charging them with conspiracy to possess with intent to distribute and distribution of methamphetamine, and firearms offenses, announced 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 Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division.
The indictment unsealed today charges Leeper and Rodriguez with conspiring to distribute and possess with intent to distribute methamphetamine in Cortland, New York, and elsewhere. The indictment also charges both defendants with using and carrying a firearm in connection with drug trafficking crimes, and charges Kyle Leeper with being a prohibited person in possession of a firearm and ammunition.
The drug conspiracy charge and drug possession charge against both Leeper and Rodriguez carry minimum sentences of 10 years, and a maximum sentence of life imprisonment, as well a fine of up to ten million dollars, and a term of supervised release of at least five years, and up to life. If convicted of the charge of using and carrying a firearm in connection with a drug trafficking crime, Leeper and Rodriguez could be sentenced to a mandatory consecutive sentence of five years in prison. If convicted of being a prohibited person in possession of a firearm and ammunition, Kyle Leeper could be sentenced to up to ten years in prison and a fine of up to $250,000.00. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Kyle Leeper and Arlene Rodriguez were arraigned today in Syracuse, New York, before United States Magistrate Judge Therese Wiley-Dancks and were ordered detained pending a trial before United States District Court Judge David N. Hurd.
This case is being investigated by the United States Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Cortland County (New York) Sheriff’s Department, and is being prosecuted by Assistant U.S. Attorneys Richard Southwick and Thomas Sutcliffe, with assistance from the Cortland County District Attorney’s Office.
Bronx Man Sentenced for Importation of Synthetic MarijuanaRead the Press Release
ALBANY, NEW YORK – Mansoor Ghaleb, age 30, was sentenced today to 60 months in prison, to be followed by 3 years of supervised release, for his role in a conspiracy to possess with intent to distribute synthetic cannabinoids.
The announcement was made by United States Attorney Grant C. Jaquith; Ray Donovan, Special Agent in Charge of the New York Office of the U.S. Drug Enforcement Administration (DEA); and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
In pleading guilty, Ghaleb admitted that from September 2016 through June 2017, he conspired with a supplier in China to import at least 8 kilograms of synthetic cannabinoids, with the goal of processing the raw chemicals into “spice” or “K2” for distribution in Schenectady. Ghaleb specifically admitted to coordinating the payment of $48,000 to the supplier via multiple electronic funds transfers, and arranging for delivery of the synthetic cannabinoids to various locations in the Capital Region.
This case was investigated by the DEA, HSI, and the United States Postal Inspection Service (USPIS). The Albany Police Department also assisted in the investigation. The case is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Repeat Troy Sex Offender Sentenced to 10 Years in PrisonRead the Press Release
UTICA, NEW YORK – Gary McKay, age 43, of Troy, New York, was sentenced today to serve 10 years in prison, followed by a lifetime term of supervised release, for possessing child pornography for a second time.
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 to three counts of possession of child pornography, McKay admitted that on August 14, 2017, while on supervised release for a prior federal conviction for possession of child pornography, he possessed three electronic devices containing more than 2,500 images of minors, including prepubescent children engaged in sexually explicit conduct. McKay previously served 30 months in prison for his prior possession conviction and was seven years into a ten-year term of supervised release at the time he committed this new offense.
United States District Judge David N. Hurd sentenced McKay to 10 years in prison and lifetime supervised release on each of the possession of child pornography counts to run concurrently (at the same time). Judge Hurd also sentenced McKay to 5 years imprisonment for violating his terms of supervised release, to run concurrently to the other sentences.
This case was investigated by the United States Probation Office for the Northern District of New York and Homeland Security Investigations (HSI), and was prosecuted by Assistant U.S. Attorneys Richard Bellis and 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/.
Lewis County Man Sentenced to 101 Months on Drug and Firearms ConvictionsRead the Press Release
SYRACUSE, NEW YORK – Victor Ehlers, age 37, of Lyons Falls, New York, and Lowville, New York, was sentenced today to serve 101 months in prison, followed by a 3 year term of supervised release, for possessing methamphetamine with intent to distribute it, possession of a firearm in furtherance of a drug trafficking crime, and possession of firearms and ammunition by a drug user.
The announcement was made by United States Attorney Grant C. Jaquith, Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division, and New York State Police Superintendent Keith Corlett.
In March 2018, Ehlers manufactured and sold methamphetamine out of his home in Lyons Falls, New York. Ehlers kept multiple firearms in his home, among other reasons to further his drug trafficking activities. Included among Ehlers’s firearms were a machinegun and silencers in operating condition.
This case was investigated by the DEA, the New York State Police-Community Narcotics Enforcement Team (NYSP-CNET), the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Lewis County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian, with assistance from the Lewis County District Attorney’s Office.
Johnson City Man Pleads Guilty to Sexually Exploiting a Child and Child Pornography OffensesRead the Press Release
SYRACUSE, NEW YORK – Michael Rushmer, age 47, of Johnson City, New York, pled guilty today to one count of sexual exploitation of a child, one count of distribution of child pornography, and one count of possession of child pornography, 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).
As part of his guilty plea Rushmer admitted that he created sexually explicit images and videos of a minor (including secretly recording the victim engaged in sexual acts), and that he distributed some of those images and videos to other persons over the internet. Rushmer further admitted that he also possessed hundreds of images and videos depicting child pornography on his electronic devices, some of which included children under the age of 12.
Sentencing is scheduled for December 17, 2019 in Binghamton before Senior United States District Judge Thomas J. McAvoy. Rushmer faces a minimum sentence of 15 years and up to 30 years in prison for the sexual exploitation of a child, between 5 and 20 years in prison for his distribution of child pornography, and up to 20 years in prison for his possession of child pornography. Rushmer will also be required to spend at least 5 years, and up to a lifetime term on post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI, the Johnson City Police Department, the Broome County Sheriff’s Department, and the Broome County District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorneys Michael D. Gadarian and Sahar Amandolare.
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
Cohoes Mayor Pleads Guilty to Stealing Campaign ContributionsRead the Press Release
ALBANY, NEW YORK – Shawn Morse, age 52, the Mayor of Cohoes, New York, pled guilty today to a wire fraud scheme to defraud his supporters by stealing campaign contributions for his 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).
During the guilty plea, Morse admitted that he and his campaign treasurer, Ralph Signoracci, solicited and received contributions to his political committee the “Friends of Shawn Morse” and a political action committee. Signoracci then provided some of those funds to Morse for his personal use including an August 2015 contribution of $500 Morse used to pay a personal bill. In total, as part of the scheme, Morse personally obtained $12,250 in political contributions from at least 10 victims to pay personal expenses at hotels, restaurants, and retailers.
As part of the scheme, Signoracci concealed the nature of the fraudulent expenditures by falsely reporting their purpose or by not reporting or disclosing them on campaign disclosure reports, as was required of local candidates for public office. Signoracci pled guilty to conspiracy to commit wire fraud on March 7, 2019.
“Our democracy depends on honesty by public officials. Stealing campaign funds frustrates the freedom of speech so important to the integrity of elections, undermines public faith in the process and outcome, and betrays the trust of donors. No one is above the law, and we will continue to hold accountable politicians who put personal enrichment above public good,” said United States Attorney Jaquith.
"Public trust must be something that is cherished by all who serve in positions of public office," said James N. Hendricks, Special Agent in Charge of the Federal Bureau of Investigation's (FBI) Albany Division. "Sadly, Mr. Morse abused his position for personal gain. Today’s plea announcement should send a clear signal that the FBI will vigorously investigate any public official who attempts to use their position to enrich themselves.”
Morse pled guilty to one count of wire fraud, and faces up to 20 years in prison, a term of post-release supervision of up to 3 years, and fine of up to $250,000, when he is sentenced by Senior United States District Judge Thomas J. McAvoy on December 10, 2019. 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 Megan Kinsella Kistler.
Research Scientist Charged with Making False Statements in Connection with NIH GrantsRead the Press Release
ALBANY, NEW YORK – Gerwin Schalk, age 48, of Albany, and formerly of Glenmont, New York, appeared today in federal court on a complaint charging him with 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.
Schalk is a research scientist employed by the New York State Department of Health (DOH) in Albany, and is the 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. (Neither DOH nor HRI is suspected of wrongdoing.)
The complaint alleges that Schalk knowingly and repeatedly lied about, and failed to disclose, payments he was receiving from Company A, whose products Schalk regularly purchased and used in connection with his research. According to the complaint (copy attached), Company A has paid at least $69,856 to Schalk, from July 2013 to April 10, 2019. Additionally, in July 2017, Company A purchased a car that Schalk registered in his name.
Company A billed HRI approximately $260,000 for sales of neurotechnology equipment to HRI, from 2012 through January 23, 2018; Company A was principally paid from federal grant money.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Schalk appeared today before United States Magistrate Judge Daniel J. Stewart, and was released pending further proceedings.
If convicted, Schalk faces up to 5 years in prison on each false statement charge, up to 3 years of post-imprisonment supervised release, 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 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.
Mexican Citizen Pleads Guilty to Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Lazaro Juarez-Martinez, age 30, and a citizen of Mexico, pled guilty on Wednesday to illegal re-entry into the United States, and was immediately sentenced to time served (110 days in jail).
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
As part of his plea of guilty, Juarez-Martinez admitted that on April 26, 2019, he entered the United States from Canada by walking across the international boundary near Fort Covington, New York, avoiding United States immigration and customs inspection. Juarez-Martinez encountered and was subsequently apprehended by United States Border Patrol Agents near Peru, New York, nearly 80 miles from the international boundary.
Prior to this case, in 2016, Juarez-Martinez entered the United States near Naco, Arizona, and was apprehended and ordered removed by an immigration judge in Hebronville, Texas, that same year.
This case was investigated by United States Border Patrol and prosecuted by Assistant U.S. Attorney Troy Anderson.
Rockland County Man Sentenced for Transporting Illegal AliensRead the Press Release
ALBANY, NEW YORK – Raul Nolasco, age 46, of Nanuet, New York, was sentenced yesterday to time served (11 days in jail), followed by 1 year of supervised release and a fine of $4,000, for transporting illegal aliens within the United States for financial gain.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
On June 2-3, 2018, Nolasco drove to a spot near the border between the United States and Canada, and picked up illegal aliens on the United States side of the border. He intended to drive the illegal aliens to Long Beach, New York, and expected to be paid $400-$500 for doing so. However, Nolasco was stopped and arrested by Border Patrol before he could complete the trip. The illegal aliens, who are citizens of Honduras, plead guilty to the misdemeanor offense of improper entry by an alien and were sentenced on June 14, 2018 to time served.
This case was investigated by Border Patrol and prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.
Owner of Essex County-Based Medical Transportation Companies Pleads Guilty to Health Care FraudRead the Press Release
ALBANY, NEW YORK – Waqas Nauman, age 37, of Queensbury, New York, pled guilty today to defrauding Medicaid.
The announcement was made by:
- United States Attorney Grant C. Jaquith;
- New York State Police Superintendent Keith M. Corlett;
- James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI);
- New York State Inspector General Letizia Tagliafierro; and
- Rensselaer County District Attorney Mary Pat Donnelly.
Today’s plea is the result of a state and federal investigation into Medicaid fraud committed by the owners and operators of medical transportation companies based in Essex County.
Nauman admitted to fraudulent Medicaid billing practices connected to two medical transportation companies he owned, Green Mountain Medical Transportation Inc. and Four Way Taxi, Inc. The other owner of these companies, Khurram Gondal, age 39, of Ticonderoga, New York, pled guilty to health care fraud on July 9, 2019. They have each admitted that between 2015 and May 2018, they fraudulently billed Medicaid for medical transportation trips where Medicaid beneficiaries drove themselves to their own medical appointments.
Nauman and Gondal each face up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years, when they are sentenced by Senior United States District Judge Thomas J. McAvoy. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Nauman has agreed to pay $55,000 in restitution, and Gondal has agreed to pay an additional $60,000 in restitution.
The federal charges were investigated by the FBI and the New York State Police’s Special Investigations Unit in Albany, and are being prosecuted by Assistant U.S. Attorney Michael Barnett.
Parallel state charges are being investigated by the New York State Police’s Special Investigations Unit, as well as the Office of the New York State Inspector General, and are being prosecuted by Rensselaer County Chief Assistant District Attorney Matthew Hauf as Special Prosecutor.
Several additional agencies assisted in this investigation, including the Essex County District Attorney’s Office; New York State Police-Troop B; the Office of the New York State Comptroller, Division of Investigations; New York State Attorney General’s Office, Medicaid Fraud Control Unit (MFCU); Essex County Sheriff’s Office; Homeland Security Investigations (HSI); the Office of Inspector General for the U.S. Department of Health and Human Services (HHS-OIG); and the New York State Department of Labor.
Delaware County Man and Schoharie County Woman Sentenced for Sexual Exploitation of a ChildRead the Press Release
ALBANY, NEW YORK – Joshua Carey, age 38, of Stamford, New York, and Ariel Machia, age 28, of Middleburgh, New York, were sentenced today to 40 years and 30 years in prison, respectively, for their sexual exploitation of an infant.
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).
Carey and Machia both pled guilty to sexual exploitation of a child in February 2019, admitting that in 2016, they photographed one another engaged in sexually explicit conduct with a 1-year-old child. The couple was arrested for the offense in February 2018, when the images they produced were recovered by law enforcement in an unrelated investigation. They have been detained in federal custody since that time.
Today, Senior United States District Judge Thomas A. McAvoy sentenced Machia to serve 30 years in prison, followed by 20 years of supervised release. Carey, who is a registered sex offender with two prior convictions for rape in the second degree, was sentenced to serve a total of 40 years in prison, to be followed by lifetime supervised release. Both defendants will be required to register with the sex offender registry upon release.
This case was investigated by the FBI and its Child Exploitation Task Force, as well as the Schoharie County Sheriff’s Office, the Delaware County Sheriff’s Office, and the New York State Police. The case was prosecuted by Assistant U.S. Attorney Lisa M. Fletcher, Project Safe Childhood Coordinator for the Northern District of New York.
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 County Man Pleads Guilty to Sexually Exploiting a Child and Child Pornography OffensesRead the Press Release
ALBANY, NEW YORK – Douglas Fountain, age 30, of Colonie, New York, pled guilty today to eight counts of sexual exploitation of a child, one count of transportation of child pornography, and two counts of possession of 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, Fountain admitted that on eight occasions between July 2017 and July 2018, he used cell phones to create videos and images of a minor engaging in sexually explicit conduct, some of which included Fountain engaging in sexual acts with the minor. Fountain also admitted to sharing some of those images on a foreign, image-sharing website, and to possessing images of child pornography on his laptop computers, including images depicting the sexual abuse and exploitation of pre-pubescent girls.
Sentencing is scheduled for December 11, 2019 in Albany before Senior United States District Judge, Thomas J. McAvoy. Fountain faces at least 15 years and up to 30 years in prison on each of the sexual exploitation counts, between 5 and 20 years in prison on the transportation count, and up to 20 years in prison on each of the possession counts. Fountain also can be sentenced to at least 5 years and up to lifetime post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by HSI 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.
Hudson Man Sentenced to 120 Months for Crack Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – William “Whoody” Morrison, age 32, of Hudson, New York, was sentenced yesterday to 120 months in prison for his involvement in a crack cocaine distribution ring that operated in Columbia County. Senior United States District Judge Thomas J. McAvoy ordered that the sentence run consecutive to a 36-month term of imprisonment Morrison is serving for violating supervised release conditions imposed as part of a 2011 federal drug conviction.
The announcement was made by United States Attorney Grant C. Jaquith; Keith M. Corlett, Superintendent of the New York State Police; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Chief L. Edward Moore of the Hudson Police Department.
As part of his guilty plea, Morrison admitted that between August and December 2017, he was involved in a conspiracy to distribute crack cocaine in Columbia County. The defendant further admitted that members of the conspiracy made weekly trips to New York City where they purchased hundreds of grams of powder cocaine, returned it to Hudson, converted it to crack cocaine, and then sold it to customers. The defendant admitted that the organization sold at least 464 grams of crack cocaine between August and December 2017.
Judge McAvoy also imposed a 5-year term of supervised release, to begin after Morrison’s release from prison.
This case was investigated by the New York State Police’s Special Investigations Unit in Albany, the FBI, and the Hudson Police Department, and was prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Joshua R. Rosenthal.
German Citizen Sentenced for Violating U.S. Sanctions Against IranRead the Press Release
ALBANY, NEW YORK – Mojtaba Biria, age 68, and a citizen of Germany, was sentenced today to time served (approximately 21 months in jail) for conspiring to unlawfully export gas turbine parts from the United States to Iran.
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); Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and Jonathan Carson, Special Agent in Charge, U.S. Department of Commerce, Office of Export Enforcement, New York Field Office.
United States District Judge Mae A. D’Agostino also ordered Biria to pay a $5,000 fine.
Biria pled guilty to one count of conspiring to violate the International Emergency Economic Powers Act (IEEPA), and the Iranian Transactions and Sanctions Regulations.
Biria was the Technical Managing Director of Energy Republic GmbH (“Energy Republic”), an export company based in Cologne, Germany; most of Energy Republic’s customers were located in Iran.
Biria admitted to conspiring in 2017 with Olaf Tepper and others to acquire about $1 million worth of energy turbine parts from a company in Saratoga County, New York. The parts would have been shipped to Germany and then immediately re-shipped to Iran, as part of a scheme to willfully violate U.S. export control laws.
Biria was arrested on November 23, 2017 at Boston’s Logan International Airport. He had been in custody since that day.
Two of Biria’s co-conspirators have also pled guilty.
Tepper, age 53, and a citizen of Germany, pled guilty to conspiring to violate IEEPA. On August 3, 2018, Judge D’Agostino sentenced him to 24 months in prison, and to pay a $5,000 fine. Tepper was the founder and Managing Director of Energy Republic.
Mahin Mojtahedzadeh, age 74, and a citizen of Iran, pled guilty on July 19, 2019 to conspiring to violate IEEPA. She is scheduled to be sentenced on November 12, 2019.
These cases are the result of a joint investigation by FBI, HSI and the Department of Commerce Office of Export Enforcement, and are being prosecuted by Assistant U.S. Attorneys Rick Belliss and Michael Barnett, with assistance from Trial Attorney Scott A. Claffee of the Department of Justice’s National Security Division, Counterintelligence & Export Control Section.
Clifton Park Man Sentenced for Lying to the FBIRead the Press Release
ALBANY, NEW YORK - Thomas Ruchlicki, age 63, of Clifton Park, New York, was sentenced today to 1 year of probation for making a false statement to the Federal Bureau of Investigation, announced United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the FBI Albany Field Office.
As part of his August 15, 2018 guilty plea, Ruchlicki admitted that on January 3, 2018, when questioned by FBI Special Agents, he falsely told the agents that his financial dealings with an owner/operator of a property construction and development company involved the owner/operator’s purchasing of an antique car from Ruchlicki. In fact, Ruchlicki never sold a car, and never had any plans to sell the owner/operator a car.
Senior United States District Judge Lawrence E. Kahn also ordered Rucklicki to pay a $3,000 fine and perform 50 hours of community service.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Rick Belliss.
Amsterdam Man Sentenced to 18 Months on Firearm ConvictionRead the Press Release
ALBANY, NEW YORK – Mark P. Messare, age 43, of Amsterdam, New York, was sentenced today to 18 months in prison for possessing an unregistered, short-barreled rifle.
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).
Senior United States District Judge Lawrence E. Kahn also imposed a 3-year term of post-imprisonment supervised release.
In pleading guilty, Messare admitted that on September 8, 2018, he possessed a Glock 9 millimeter handgun that was inserted into a Micro Roni Pistol Carbine Conversion Kit, creating a short-barreled rifle with a barrel length of approximately four (4) inches. Messare also admitted that he knew that the Micro Roni Pistol Carbine Conversion Kit was designed to convert a handgun into a short-barreled rifle, as the Conversion Kit includes a folding shoulder stock that allows a handgun to be fired from the shoulder. Messare never registered this firearm in the National Firearms Registration and Transfer Record, as required by federal law.
This case was investigated by the ATF and prosecuted by Assistant U.S. Attorney Michael Barnett.
Former Student Sentenced for Destroying Computers at the College of St. RoseRead the Press Release
ALBANY, NEW YORK - Vishwanath Akuthota, age 27, of Albany, was sentenced today to 12 months in prison, to be followed by 1 year of supervised release, for intentionally damaging computer equipment owned by The College of St. Rose. Akuthota was also ordered to pay restitution in the amount of $58,471.
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).
In pleading guilty, Akuthota admitted that on February 14, 2019, he inserted a “USB Killer” device into 66 computers, as well as numerous computer monitors and computer-enhanced podiums, owned by the college in Albany. The “USB Killer” device, when inserted into a computer’s USB port, sends a command causing the computer’s on-board capacitors to rapidly charge and then discharge repeatedly, thereby overloading and physically destroying the computer’s USB port and electrical system.
Akuthota is a citizen of India, residing in the United States on a student visa. He has been in custody since he was arrested in North Carolina on February 22, 2019.
This case was investigated by the FBI and APD, and was prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Essex County Man Indicted for Making a False Statement to the VARead the Press Release
ALBANY, NEW YORK – Alex Cheney, age 55, of Moriah, New York, was arraigned today on an indictment alleging he made a false statement to the U.S. Department of Veterans Affairs (VA) in order to receive Individual Unemployability benefits.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Sean J. Smith, VA Office of Inspector General, Northeast Field Office.
The indictment alleges that in September 2016, Cheney falsely certified on an employment questionnaire that he was not employed at any time during the prior 12 months when he was, in fact, working in construction and earning wages. The charge in the indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty
Cheney was arraigned today before United States Magistrate Judge Christian F. Hummel and released on his own recognizance. Cheney faces a maximum of 5 years in prison and up to 3 years of post-imprisonment supervised release. He also faces 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 VA Office of Inspector General and prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
Clifton Park Doctor Arrested for Unlawful Drug DistributionRead the Press Release
ALBANY, NEW YORK – Scott McMahon, age 50, of Clifton Park, New York, was arrested today and charged with distributing controlled substances outside the course of professional practice and for no legitimate medical purpose.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division.
McMahon practices in Clifton Park, having previously maintained offices in Albany and other locations within the Capital Region. According to a criminal complaint (copy attached), McMahon prescribed controlled substances, including Ritalin and its generic equivalents, for non-medical purposes and outside the usual course of professional practice, often with the intent of having his patients kick back a portion of each prescription to him for his own personal use.
The complaint alleges that McMahon prescribed controlled substances to people who were never his patients, including three young children of one patient, and the boyfriend of another patient. The activity alleged in the complaint occurred between December 2018 and April 2019.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty
McMahon appeared today in Albany before United States Magistrate Judge Christian F. Hummel, who ordered him detained pending a detention hearing scheduled for tomorrow, August 14.
If convicted, McMahon faces up to 20 years in prison, at least 3 years of post-imprisonment supervised release, and a maximum $1 million 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 DEA Albany District Office’s Tactical Diversion Squad and its Capital District Drug Enforcement Task Force, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Also assisting in the investigation are the Civil Division of the U.S. Attorney’s Office, the New York State Police, the New York State Bureau of Narcotic Enforcement, and the DEA Resident Office in Burlington, Vermont.