Northern District of New York

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.

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.

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.

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.

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.

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, 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/.

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.

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.

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.

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.

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. 

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.

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.

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.

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/.

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.

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

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.

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.

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.

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. 

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.

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, 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.

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.

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.

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.

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.

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.

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. 

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.

ALBANY, NEW YORK – Matthew Osuba, 34, of Saugerties, New York, was found guilty today of sexual exploitation of a child, of distributing child pornography, and of possessing child pornography following a three-day jury trial.  The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

The evidence at trial showed that Osuba videotaped himself sexually exploiting a minor child.  The trial evidence also included that he sent three images of child pornography over the internet using a chat application on his mobile phone, and possessed three additional images of prepubescent girls engaged in sexually explicit conduct. 

Sentencing is set for December 12, 2019, before Senior United States District Judge Thomas J. McAvoy.  Osuba faces a minimum sentence of 15 years, and a maximum sentence of up to 70 years in prison, to be followed by a term of supervised release of up to life. He will also be required to register as a sex offender.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case was investigated by the FBI, New York State Police, the Town of Colonie (New York) Police Department, and the Warren County (New York) Sheriff’s Department.  It is being prosecuted by Assistant U.S. Attorneys Katherine Kopita and Shira C. Hoffman.

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.

WASHINGTON – The Department of Justice today announced that Douglas S. Waterbury and his co-defendants will be obligated to pay $850,000 in damages and civil penalties to resolve two Fair Housing Act lawsuits alleging that Waterbury sexually harassed numerous female tenants and prospective tenants for nearly three decades at properties he owned in and around Oswego, New York.  The Department filed one of the lawsuits and a group of private plaintiffs brought the other.

Under the Consent Decree in United States of America v. Douglas S. Waterbury, et al., which still must be approved by the U.S. District Court for the Northern District of New York, Defendants have agreed to pay a total of $450,000, which includes $400,000 in monetary damages to former tenants and potential tenants who were harmed as a result of the sexual harassment, as well as a $50,000 civil penalty. Additionally, the Defendants will pay $400,000 to compensate nine plaintiffs in the related private suit. The Consent Decree also bars Douglas Waterbury from participating in the rental or management of residential properties. 

"The sexual harassment of the vulnerable female applicants and tenants in this case by their landlord is an egregious and intolerable violation of federal civil rights law," said Assistant Attorney General Eric Dreiband. "The Department of Justice will continue to pursue any depraved landlords and others who prey upon vulnerable women."

"No woman should have to endure harassment and discrimination to obtain housing," said Grant C. Jaquith, United States Attorney for the Northern District of New York. "Landlords who sexually harass their tenants in our district will be held accountable under the Fair Housing Act."

The Department’s complaint, filed in 2018, alleged that Douglas Waterbury, his business partner, and two related entities operated an extensive real estate business involving more than 50 residential rental properties in and around Oswego, New York. The lawsuit further alleged that Douglas Waterbury subjected former tenants and potential tenants of these homes to sexual harassment, including unwanted sexual intercourse, sexual advances and comments, groping or other touching of their bodies without consent, and offers to reduce or eliminate security deposits and rent in exchange for sexual contact. The complaint further alleged that Waterbury took or threatened to take adverse action against residents when they refused or objected to his advances.

In October 2017, the Justice Department launched an initiative to combat sexual harassment in housing. In April 2018, the Department of Justice announced the nationwide rollout of the initiative, including three major components:  an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, a public awareness campaign, including the launch of a national Public Service Announcement, and a new joint Task Force with the Department of Housing and Urban Development to combat sexual harassment in housing.

Since launching the initiative, the Department of Justice has filed 10 lawsuits alleging a pattern or practice of sexual harassment in housing. The Justice Department has filed or settled 15 sexual harassment cases since January 2017, and has recovered over $2.6 million for victims of sexual harassment in housing.

The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination can call the Housing Discrimination Tip Line at 1‑800‑896‑7743, e-mail the Justice Department at [email protected], or contact HUD at 1‑800‑669‑9777 or through its website at www.hud.gov/program_offices/fair_housing_equal_opp.

ALBANY, NEW YORK - Gheorghe Cirstea, 32, a Romanian national, pled guilty yesterday to an indictment charging him with conspiring to steal bank customers’ account information and personal identification numbers (PINs) by using skimming devices that were secretly installed on bank ATMs in the Capital Region.

The announcement was made by U.S. Attorney Grant C. Jaquith and James Hendricks, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation.

The indictment was the basis for an international warrant for Cirstea’s arrest.  On March 30, 2018, Cirstea was arrested on the warrant while travelling through Bogota, Colombia.  On October 19, 2018, Cirstea was formally extradited by Colombian authorities to the Northern District of New York.

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

Sitariu, who was arrested on October 24, 2015, was sentenced to 48 months in prison by Senior United States District Judge Lawrence E. Kahn on May 10, 2017.

Cirstea faces a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years when he is sentenced on December 12, 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, U.S. Secret Service, and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.

The Department of Justice today announced that Douglas S. Waterbury and his co-defendants will be obligated to pay $850,000 in damages and civil penalties to resolve two Fair Housing Act lawsuits alleging that Waterbury sexually harassed numerous female tenants and prospective tenants for nearly three decades at properties he owned in and around Oswego, New York.  The Department filed one of the lawsuits and a group of private plaintiffs brought the other.

Under the Consent Decree in United States of America v. Douglas S. Waterbury, et al., which still must be approved by the U.S. District Court for the Northern District of New York, Defendants have agreed to pay a total of $450,000, which includes $400,000 in monetary damages to former tenants and potential tenants who were harmed as a result of the sexual harassment, as well as a $50,000 civil penalty. Additionally, the Defendants will pay $400,000 to compensate nine plaintiffs in the related private suit. The Consent Decree also bars Douglas Waterbury from participating in the rental or management of residential properties. 

“The sexual harassment of the vulnerable female applicants and tenants in this case by their landlord is an egregious and intolerable violation of federal civil rights law,” said Assistant Attorney General Eric Dreiband. “The Department of Justice will continue to pursue any depraved landlords and others who prey upon vulnerable women.”

“No woman should have to endure harassment and discrimination to obtain housing,” said Grant C. Jaquith, United States Attorney for the Northern District of New York. “Landlords who sexually harass their tenants in our district will be held accountable under the Fair Housing Act.”

The Department’s complaint, filed in 2018, alleged that Douglas Waterbury, his business partner, and two related entities operated an extensive real estate business involving more than 50 residential rental properties in and around Oswego, New York. The lawsuit further alleged that Douglas Waterbury subjected former tenants and potential tenants of these homes to sexual harassment, including unwanted sexual intercourse, sexual advances and comments, groping or other touching of their bodies without consent, and offers to reduce or eliminate security deposits and rent in exchange for sexual contact. The complaint further alleged that Waterbury took or threatened to take adverse action against residents when they refused or objected to his advances.

In October 2017, the Justice Department launched an initiative to combat sexual harassment in housing. In April 2018, the Department of Justice announced the nationwide rollout of the initiative, including three major components:  an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, a public awareness campaign, including the launch of a national Public Service Announcement, and a new joint Task Force with the Department of Housing and Urban Development to combat sexual harassment in housing.

Since launching the initiative, the Department of Justice has filed 10 lawsuits alleging a pattern or practice of sexual harassment in housing. The Justice Department has filed or settled 15 sexual harassment cases since January 2017, and has recovered over $2.6 million for victims of sexual harassment in housing.

The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp.

ALBANY, NEW YORK – Robert Kirk, 36, of Schenectady, New York, was charged today in a five-count indictment for sexually exploiting a child by using a minor to create sexually explicit images on a cellular telephone, and distributing and possessing child pornography.

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

Kirk was initially charged by criminal complaint on July 26, 2018, and has remained in custody since.  If convicted, Kirk faces at least 15 years and up to 30 years in prison on the sexual exploitation counts, at least 5 and up to 20 years in prison on the distribution count, and up to 20 years in prison on each of the child pornography counts.  Sentences of imprisonment may be concurrent or consecutive at the discretion of the Court.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.  The Court also will impose a term of post-imprisonment supervised release of between 5 years and life.

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

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

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

ALBANY, NEW YORK – Thomas K. Lagan, age 60, of Cooperstown, New York, and formerly of Slingerlands, New York, pled guilty today to money laundering and filing a false tax return in connection with the theft of approximately $11.8 million from estates for which he served as a fiduciary. 

The announcement was made by:

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

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

In a related case being prosecuted by the New York Attorney General’s Office, Lagan pled guilty on April 30, 2019, in Albany County Court, to grand larceny in the first degree.

Lagan’s co-conspirator, Sherwood, pled guilty in June 2018 to federal and state charges. 

United States Attorney Grant C. Jaquith stated: “Thomas Lagan’s fraud was staggering, both in terms of the amount stolen and in his misuse of his professional standing and betrayal of longtime clients who trusted him to direct their money to family members, churches, charities, and other organizations after they died.  Instead, Lagan and Richard Sherwood lined their own pockets and then lied about it on their tax returns. Now they will be held accountable for their contemptible crimes.”

FBI Special Agent in Charge James N. Hendricks stated: “Thomas Lagan’s despicable greed and deceit led to the theft of money meant for churches, charities, and even a women suffering from dementia.  He took advantage of his client’s trust for his own personal gain and will now face the consequences of his fraudulent actions. The FBI, in concert with our federal and state partners, will continue to identify and stop those who line their own pockets at the expense of others.”

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

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

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

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

Lagan admitted that he and Sherwood stole $11,831,563, and that nearly $6.3 million was transferred outright to him, with an additional $1.96 million transferred to an entity, Empire Capital Trust, LLC, that he and Sherwood controlled. 

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

Lagan also admitted to filing false federal tax returns in 2013 and 2015.  These returns were false because he did not report, as other income, about $5.4 million that he received from the fraudulent scheme.

IRS-CI Special Agent in Charge Jonathan D. Larsen stated: “Society places attorneys/financial advisors in positions of trust, and the clients victimized in this case clearly trusted the defendant to direct their money according to their wishes.  Lagan violated this faith purely out of selfishness and greed, causing significant harm to the entire community and especially those that would have benefited from the victims’ legacies.  IRS-CI Special Agents are working tirelessly to protect taxpayers from fraud and to hold those in positions of power and trust accountable.” 

Lagan faces up to 20 years in prison, a maximum fine of $250,000, and up to 3 years of post-imprisonment supervised release when he is sentenced on December 12, 2019, by Senior United States District Judge Lawrence E. Kahn.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

The federal case was investigated by the FBI and IRS-CI, and is being prosecuted by Assistant U.S. Attorney Michael Barnett. 

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

ALBANY, NEW YORK – Myra Mabry, 50, of Catskill, New York, pled guilty yesterday before United States District Judge Mae A. D’Agostino 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, Mabry, an obstetrician-gynecologist, admitted that between 2015 and 2017, she wrote numerous prescriptions for oxycodone, morphine, and hydromorphone to third parties, for no legitimate medical purpose, and then instructed a co-conspirator to fill those prescriptions by impersonating the named patients at pharmacies, knowing that health care benefit programs would pay the cost of the drugs.  In pleading guilty, Mabry also admitted that she attempted to obstruct the federal investigation into her activities by instructing a co-conspirator to falsely testify before a federal grand jury that she (Mabry) was the subject of extortion.  As Mabry admitted in her guilty plea, she was not the subject of an extortionate scheme, and was a willing member of the conspiracy to distribute opioids for no legitimate medical purpose. Mabry further admitted that she had agreed to pay her co-conspirator for false testimony in the hope of minimizing her criminal exposure and keeping her medical license.

As a result of her conviction, Mabry 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 on December 4, 2019 in Albany.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

This case is being investigated by the U.S. Drug Enforcement Administration (DEA), with assistance from the New York State Bureau of Narcotic Enforcement, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.

SYRACUSE, NEW YORK – Carlos Vega-Carbonell, 36, of Amsterdam, New York, pled guilty today to unlawfully possessing a firearm and ammunition as a felon and distributing heroin, announced United States Attorney Grant C. Jaquith and John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).

As part of his guilty plea, Vega-Carbonell admitted he sold a Mossberg 12-gauge shotgun, five shotgun shells, and 30 bags of heroin during an ATF undercover operation in the City of Amsterdam, New York, on November 14, 2018.  Vega-Carbonell had a felony conviction at the time.

Sentencing is scheduled for December 4, 2019, in Albany, New York, at which time Vega-Carbonell faces a maximum sentence of up to 10 years in prison and a fine of to $250,000.00 for the firearm and ammunition conviction and up to 20 years in prison, a one million dollar fine, and a term of supervised release between three years and life for the heroin conviction.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with assistance from the City of Amsterdam (New York) Police Department, and is being prosecuted by Assistant U.S. Attorney Richard Southwick.

BINGHAMTON, NEW YORK – On Thursday, August 1, 2019, after a four-day trial, a Binghamton jury found Daniel M. Passero, Jr., of Herkimer County, guilty of receiving and possessing child pornography, announced United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).

The jury found that between July of 2015 and January 13, 2016 Passero downloaded hundreds of sexually explicit images of children, and saved them to a memory card that was later found in a smartphone recovered at Passero’s home.

At the time of the offense, Passero was on parole for a prior sex offense against a child.  As a result, he faces a sentence of between 15 and 60 years imprisonment, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant was convicted of violating, the U.S. Sentencing Guidelines and other factors.

This case was investigated by United States Homeland Security Investigations, the New York State Department of Corrections and Community Supervision, and the New York State Police, with assistance from the Gloversville Police Department, Federal Bureau of Investigation, Burlington Police Department and Iowa Division of Criminal Investigations. 

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

SYRACUSE, NEW YORK – Aaron Vroman, age 29, of Watervliet, New York, pled guilty today to sexual exploitation of a child and 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 plea agreement, Vroman admitted that on at least four occasions he secretly video-recorded a minor using the bathroom for the purposes of obtaining sexually explicit images of the child’s genitals.  Vroman also admitted that he used his hand to touch that same child’s genital area over the child’s underwear while the child was asleep, and that he video-recorded that conduct as well.  Vroman also possessed images of child pornography on his laptop computer, including videos depicting the sexual abuse and exploitation of pre-pubescent girls. 

Sentencing is scheduled for November 22, 2019 in Albany.  Vroman faces at least 15 years and up to 30 years in prison on the sexual exploitation count and up to 20 years in prison on each of the child pornography possession counts.  Sentences of imprisonment may be concurrent or consecutive at the discretion of the Court.  A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is convicted of violating, the U.S. Sentencing Guidelines, and other factors.  The Court also will impose a term of post-imprisonment supervised release of between 5 years and life, and Vroman will be required to register as a sex offender.

Vroman’s case was investigated by HSI, with assistance from the New York State Police and the Colonie Police Department.  This case is being prosecuted by Assistant U.S. Attorneys Geoffrey J. L. Brown and Michael D. Gadarian.

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

SYRACUSE, NEW YORK – Silvus Technologies, Inc., a California based company specializing in wireless communication systems, agreed today to pay $435,806 to resolve a False Claims Act investigation into the company’s cost-based billing on government contracts. 

According to the settlement agreement, the government overpaid Silvus on three different Air Force contracts.  The overpayments were due to Silvus’s failure to track accurately its direct labor costs and certain indirect costs (including tax payments).  Silvus improperly attributed some employee labor costs to the contracts and included certain unallowable charges in its incurred cost proposals.

“This settlement reflects the Northern District of New York’s continued commitment to using civil enforcement tools to recover money wrongfully paid by the government,” said United States Attorney Grant C. Jaquith.  “It is critical that government contractors have internal controls in place to ensure that cost-based billings are fair and accurate.”

“The announced settlement sends a clear message that those who inappropriately profit by willfully disregarding established Department of Defense procurement protocols will be investigated and held accountable,” said Bryan D. Denny, Special Agent in Charge of the Western Field Office, Defense Criminal Investigative Service.  “Those who contract with the Department of Defense must be above reproach.  The Defense Criminal Investigative Service will continue to investigate anyone who seeks to compromise the procurement system at the expense of the U.S. military and taxpayers.”

This case was investigated by the Air Force Office of Special Investigations, the Defense Criminal Investigative Service, and the Army Criminal Investigation Command.  Additional investigative assistance was provided by the Defense Contract Audit Agency and the Air Force Materiel Command Law Office Fraud Division.  The United States was represented by Assistant U.S. Attorney Michael D. Gadarian.

ALBANY, NEW YORK – A federal grand jury today indicted two men in connection with a February 2019 armed robbery of an M&T Bank branch in which a bank employee was shot.

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 Keith M. Corlett, Superintendent of the New York State Police.

The indictment charges Christopher J. Cohn a/k/a “Wolf,” age 26, of Albany, and Ulysses Jessie Walls a/k/a “Guwala,” age 25, of Rensselaer, New York, with armed bank robbery and use of a firearm during a crime of violence.  According to the indictment and a previously filed criminal complaint, Cohn and Walls entered an M&T Bank branch in North Greenbush on the morning of February 26, 2019, each wearing a ski mask and brandishing a gun.  In the course of the robbery, Cohn fired multiple shots, including one that grazed an employee of the bank.  Law enforcement arrested Cohn, Walls and their alleged getaway driver Quardel Valentine, at an Albany motel shortly after the robbery.  Valentine remains charged by criminal complaint.

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

If convicted on the armed bank robbery charge, Cohn and Walls each face at least 10 years and as much as life in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 5 years.  If convicted of the firearm charge, Cohn and Walls each face at least 10 years and up to life in prison, to be served consecutive to the term of imprisonment for the armed bank robbery charge.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

This case is being investigated by the FBI, the New York State Police, the Town of North Greenbush Police Department, the Albany Police Department, and the Albany County Sheriff’s Office, with the assistance of the Rensselaer County District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorneys Joshua R. Rosenthal and Wayne A. Myers.

ALBANY, NEW YORK – Nashaan Howard, age 34, of Schenectady, New York, was sentenced today to 60 months in prison for his involvement in a heroin distribution ring that operated in Schenectady County.

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

As part of his guilty plea, Howard admitted that between December 2017 and April 2018, in conjunction with co-conspirators whom he used as “runners” to distribute controlled substances and collect payment on his behalf, he distributed approximately 235 grams of heroin to another individual in Schenectady County.

Senior United States District Judge Gary L. Sharpe also imposed a 4-year term of supervised release, to begin after Howard’s release from prison.

This case was investigated by the DEA and the Schenectady County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.

ALBANY, NEW YORK – Kenneth Kindlon, age 47, of Caroga Lake, New York, was sentenced yesterday to 36 months in prison for possessing an unregistered, short-barreled rifle.

The announcement was made by United States Attorney Grant C. Jaquith; John B. Devito, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division; and Kevin Kelly, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo Field Office.

Kindlon admitted that on June 22, 2016, he knowingly possessed a 5.56 caliber rifle with a barrel length of approximately 10.5 inches, and showed the firearm to an individual seeking to purchase firearms and firearm parts.  Kindlon never registered the firearm in the National Firearms Registration and Transfer Record, as required by federal law.

Senior United States District Judge Norman A. Mordue also sentenced Kindlon to 3 years of supervised release, to be served following Kindlon’s release from prison.

This case was investigated by the ATF and HSI, and was prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.

ALBANY, NEW YORK – Ronny Mota, age 29, of the Bronx, New York, was sentenced today to 60 months in prison, to be followed by 4 years of supervised release, for conspiring to distribute more than 100 grams of heroin. 

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.

In pleading guilty, Mota admitted that on December 5, 2018, he drove from New York City to Albany County, New York, for the purpose of selling approximately 130 grams of heroin to another individual.  The DEA arrested Mota and a co-conspirator in a motel parking lot in Colonie before they could meet with the buyer.  Agents found the bag of heroin in a coffee cup. 

This case was investigated by the DEA and its Capital District Drug Enforcement Task Force, which includes investigators from the Schenectady Police Department, Troy Police Department and New York State Police.  The Schenectady County Sheriff’s Office also assisted in the investigation.  This case was prosecuted by Assistant U.S. Attorney Michael Barnett.

ALBANY, NEW YORK – Brendan Chandler, age 35, of Latham, New York, admitted today to sending images of his erect penis to someone he believed to be a 14-year-old girl.

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).

Chandler admitted that on April 17, 2018, he used the Kik phone messaging application to send photos of his penis to someone he thought was a 14-year-old girl, but who was actually a New York State Police Investigator acting in an undercover capacity.  Chandler was arrested that same day in a parking lot in Latham, where, he admitted, he believed he was going to pick up the girl in his car so that they could have sex. 

As part of his plea agreement, Chandler agreed to serve a 100-month prison sentence, to be followed by 3 years of supervised release.  Senior United States District Judge Thomas J. McAvoy will impose sentence on November 14, 2019.

This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of the New York State Police Troop G Computer Crimes Unit, 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/.

ALBANY, NEW YORK – William Reid, age 38, of Schenectady, New York, pled guilty today to two counts of distributing crack cocaine, announced United States Attorney Grant C. Jaquith and James Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his guilty plea, Reid admitted that he sold 33.4 grams of crack cocaine on April 26, 2018 and 8.9 grams of crack cocaine on June 22, 2018, each time in Schenectady.

As a result of his conviction, Reid faces at least 5 years and up to 40 years in prison, and a term of post-release supervision of at least 4 years and up to life.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.  Sentencing is scheduled for November 14, 2019 before Senior United States District Judge Thomas J. McAvoy.

This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force.  It is being prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal. 

ALBANY, NEW YORK - Mahin Mojtahedzadeh, age 74, and a citizen of Iran, pled guilty today to conspiring to unlawfully export gas turbine parts from the United States to Iran.

The announcement was made by Assistant Attorney General for National Security John C. Demers; 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.

Mojtahedzadeh pled guilty to one count of conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations.  She admitted that she was the President and Managing Director of ETCO-FZC (“ETCO”), an export company with an office in Dubai in the United Arab Emirates.  ETCO is a supplier of spare and replacement turbine parts for power generation companies in the Middle East, including Iran.

Mojtahedzadeh admitted that from 2013 through 2017, she worked with companies in Canada and Germany to violate and evade U.S. sanctions against Iran, by having these companies first acquire more than $3 million dollars’ worth of turbine parts from two distributors in Saratoga County, New York. 

When the U.S. parts arrived in Canada and Germany, respectively, these companies and Mojtahedzadeh then arranged for the parts to be re-shipped to ETCO’s customers in Iran.  At all times, U.S. law prohibited the export and re-export of U.S.-origin turbine parts to Iran without a license from the U.S. Office of Foreign Assets Control (OFAC), which neither Mojtahedzadeh nor her co-conspirators possessed.

“By supplying Iran with millions of dollars’ worth of illegally exported turbine machinery, the defendant provided equipment that is critically important for Iran’s infrastructure,” said Assistant Attorney General Demers.  “This sort of sanctions violation allows the Iranian government to withstand the pressure of U.S. sanctions – pressure that is intended to end Iran’s malign behavior.  We will continue to hold to account those who aid Iran in evading the United States’ comprehensive embargo.”

United States Attorney Grant C. Jaquith stated: “Mahin Mojtahedzadeh worked for years to illegally acquire gas turbine parts for power plants in Iran.  Thanks to thorough inter-agency collaboration by the FBI, Homeland Security Investigations, and the Department of Commerce Office of Export Enforcement, the defendant and her co-conspirators are being held accountable for circumventing economic sanctions that protect the national security of the United States.”

FBI Special Agent in Charge James N. Hendricks stated: “The proliferation of sensitive U.S. technologies to Iran remains a clear threat to our national security.  The FBI, along with our interagency partners, will continue to identify, investigate, and eliminate proliferation efforts aimed at circumventing our export control laws and economic sanctions to illegally obtain sensitive technologies.”              

HSI Special Agent in Charge Kevin Kelly stated: “HSI's export enforcement initiatives safeguard national security and protect our interests across the world.  The defendant’s admission of willful attempts to thwart these efforts is inexcusable and her guilty plea is an example of the significant repercussions for such actions.”

Special Agent in Charge Jonathan Carson, of the U.S. Department of Commerce, Office of Export Enforcement, stated: “We will fully and aggressively enforce our nation’s restrictions on exports to Iran.  Controls on exports to Iran help apply maximum pressure on Iran to end its promotion of instability and terrorism worldwide. The Office of Export Enforcement will continue to leverage our unique authorities to pursue violators wherever they are, worldwide. We will continue to work with our law enforcement partners to achieve this goal.”

Mojtahedzadeh faces up to 20 years in prison, as well as a fine of up to $1 million, when she is sentenced on November 12, 2019 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.

Two of Mojtahedzadeh’s co-conspirators have previously pled guilty.

Olaf Tepper, age 52, 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 GmbH (“Energy Republic”), based in Cologne, Germany, which re-exported U.S.-origin turbine parts to Iran, including as part of a conspiracy with Mojtahedzadeh.

Mojtaba Biria, age 68, and a citizen of Germany, also pled guilty to conspiring to violate IEEPA, and is scheduled to be sentenced on August 14, 2019.  Biria was Energy Republic’s Technical Managing Director. 

These cases are the result of a joint investigation by the 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.