Northern District of New York
Press releases recorded for this federal judicial district.
Ulster County Man Found Guilty of Sexually Exploiting a Child and Distributing and Possessing Child PornographyRead the Press Release
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.
DOJ Announces Settlement of Sexual Harassment Claims Against Oswego Property OwnerRead the Press Release
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.
Romanian Man Pleads Guilty in Capital Region ATM Card Skimming ConspiracyRead the Press Release
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.
Justice Department Settles Sexual Harassment Lawsuit Against New York Property OwnerRead the Press Release
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.
Schenectady County Man Indicted for Sexually Exploiting a ChildRead the Press Release
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.
Cooperstown Man Pleads Guilty to Money Laundering, Filing False Tax ReturnRead the Press Release
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.
Catskill Physician Pleads Guilty to Illegal Distribution of Opioids, Health Care Fraud, Aggravated Identity Theft, and Obstruction of JusticeRead the Press Release
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.
Amsterdam Man Admits to Selling Gun and DrugsRead the Press Release
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.
Jury Finds Herkimer County Man Guilty of Receipt and Possession of Child PornographyRead the Press Release
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.
Watervliet Man Pleads Guilty to Sexually Exploiting a ChildRead the Press Release
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.
Federal Contractor Pays $435,000 to Resolve False Claims Act ExposureRead the Press Release
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.
Two Men Indicted on Armed Bank Robbery and Firearms Charges in Connection with North Greenbush Bank RobberyRead the Press Release
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.
Schenectady Man Sentenced to 60 Months for Heroin Trafficking ConspiracyRead the Press Release
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.
Fulton County Man Sentenced to 36 Months for Unlawful Firearm PossessionRead the Press Release
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.
Bronx Man Sentenced to 60 Months for Heroin ConspiracyRead the Press Release
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.
Latham Man Pleads Guilty to Attempting to Send Obscene Material to a MinorRead the Press Release
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/.
Schenectady Man Pleads Guilty to Distributing Crack CocaineRead the Press Release
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.
Iranian Export Company Executive Pleads Guilty to Violating U.S. Sanctions Against IranRead the Press Release
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.
Export Company Executive Pleads Guilty to Violating U.S. Sanctions against IranRead the Press Release
Mahin Mojtahedzadeh (Mahin), age 74, a citizen of Iran, pleaded 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, U.S. Attorney Grant C. Jaquith for the Northern District of New York; Special Agent in Charge James N. Hendricks of the FBI’s Albany Field Office, Special Agent in Charge Kevin Kelly of the Buffalo Field Office of Homeland Security Investigations (HSI) and Special Agent in Charge Jonathan Carson of the New York Field Office of the Office of Export Enforcement, Bureau of Industry and Security (BIS), U.S. Department of Commerce.
Mahin pleaded 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.
Mahin 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 Mahin 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 Mahin 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.”
“Mahin Mojtahedzadeh worked for years to illegally acquire gas turbine parts for power plants in Iran,” said U.S. Attorney Jaquith. “She will now be punished for undermining the efficacy of economic sanctions that are intended to protect the national security of the United States.”
“The proliferation of sensitive U.S. technologies to Iran remains a clear threat to our national security,” said Special Agent in Charge Hendricks. “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's export enforcement initiatives safeguard national security and protect our interests across the world,” said HSI Special Agent in Charge Kevin Kelly. “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.”
“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,” said Special Agent in Charge Jonathan Carson, of U.S. Department of Commerce, Office of Export Enforcement. “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.”
Mahin faces up to 20 years in prison, as well as a fine of up to $1 million, when she is sentenced on Nov. 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 Mahin’s co-conspirators have previously pleaded guilty.
Olaf Tepper, age 52, and a citizen of Germany, pleaded guilty to conspiring to violate IEEPA. On Aug. 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, as part of a conspiracy with Mahin.
Mojtaba Biria, age 68, and a citizen of Germany, also pleaded guilty to conspiring to violate IEEPA, and is scheduled to be sentenced on Aug. 14, 2019. Biria was Energy Republic’s Technical Managing Director.
These cases are the result of a joint investigation by FBI, HSI and BIS, and are being prosecuted by Assistant U.S. Attorneys Rick Bellis and Michael Barnett, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence & Export Control Section.
Amsterdam Felon Sentenced to 66 Months for Firearms OffensesRead the Press Release
ALBANY, NEW YORK – Nelson Rodriguez, age 39, of Amsterdam, New York, was sentenced today to 66 months in prison for possessing a firearm in furtherance of a drug trafficking crime and possessing a firearm as a felon.
The announcement was made by United States Attorney Grant C. Jaquith; Amsterdam Police Chief Gregory J. Culick; and Special Agent in Charge John B. DeVito of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division.
Rodriguez was convicted of attempted murder in 2009. In pleading guilty, he admitted to selling cocaine base (a/k/a crack cocaine) in Amsterdam and to possessing a .25 caliber handgun to protect his drugs and drug money. The handgun was discovered under Rodriguez’s mattress during the execution of a search warrant on his Amsterdam apartment in August 2017. Along with the handgun, law enforcement seized 6 grams of crack, 40 individually-wrapped packages of crack, and $2,000 in cash.
Senior United States District Judge Gary L. Sharpe also imposed a 5-year term of supervised release, to be served after Rodriguez’s release from prison.
This case was investigated by the Amsterdam Police Department and ATF, and prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Syracuse Man Pleads Guilty to Federal Drug ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Marcus Sales, 29, of Syracuse, New York, pled guilty yesterday to a federal cocaine distribution conspiracy, announced United States Attorney Grant C. Jaquith, Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division, 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, Sales admitted his involvement in a conspiracy to traffic more than 500 grams of cocaine over a period of several months. Sales further admitted that as part of the conspiracy he personally redistributed cocaine to others.
Sentencing is scheduled for December 3, 2019 in Syracuse, New York before Senior U.S. District Judge Frederick J. Scullin, Jr. At sentencing, the defendant faces a mandatory minimum of five years, and a maximum of forty years in prison, a fine of up to $5,000,000, and a term of supervised release of at least four 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. The defendant agreed in his plea agreement to forfeit to the United States the proceeds of his illegal activity.
This case was investigated by the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the New York State Police, the Onondaga County Sheriff’s Office, and the Onondaga County District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Nicolas Commandeur.
Schenectady Man Sentenced to 41 Months for Distributing Heroin Laced with FentanylRead the Press Release
ALBANY, NEW YORK - Hezekiah Morton, age 49, of Schenectady, New York, was sentenced today to 41 months in prison for distributing heroin and fentanyl in the city of Schenectady in May 2018.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division; and Schenectady County Sheriff Dominic Dagostino.
As part of his guilty plea, Morton admitted that between May 7 and May 17, 2018, he distributed approximately 46 grams of heroin, which contained fentanyl.
Senior United States District Judge Gary L. Sharpe also imposed a 3-year term of supervised release, to begin after Morton’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.
Utica Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
UTICA, NEW YORK – James Caruso, age 57, of Utica, pled guilty yesterday to one count of receipt of child pornography and one count of possession of 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).
As part of his guilty plea, Caruso admitted that he purchased and received images and videos of child pornography from an overseas website. A search of Caruso’s laptop computer revealed that he possessed 131 videos and 32 images depicting child pornography.
Sentencing is scheduled for November 7, 2019, in Utica.
Caruso faces at least 5 years of imprisonment and up to 20 years of imprisonment on the receipt count and up to 20 years of imprisonment on the possession count. 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 will also impose a term of supervised release of between 5 years and life, and Caruso will be required to register as a sex offender.
Caruso’s case was investigated by HSI and the New York State Police. The case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
The 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.
Three Men Sentenced to Prison for Stolen Identity Refund Fraud SchemeRead the Press Release
ALBANY, NEW YORK – Miles Bailey, age 54, of Queens, New York; Eric Thorne, age 51, of Albany; and James Simmons, age 51, of Albany, were sentenced to prison this week in connection with a conspiracy to use stolen identities to file fraudulent tax returns and obtain tax refunds. The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Jonathan D. Larsen, Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office.
Bailey was sentenced today to serve 75 months in prison, to be followed by 3 years of supervised release.
Thorne and Simmons were each sentenced this week to serve 24 months in prison, to be followed by 3 years of supervised release.
Bailey was ordered to pay restitution in the amount of $1,916,928; Simmons was ordered to pay restitution in the amount of $22,778; and Thorne was ordered to pay restitution in the amount of $1,400 and a fine of $10,000.
Bailey pled guilty to conspiring with Simmons, Thorne and others to defraud the United States, through the IRS, by filing hundreds of false and fraudulent income tax returns using the stolen means of identification of other individuals and obtaining tax refunds to which they were not entitled.
Bailey used his own bank accounts and bank accounts in the name of his business, D.E. Caribe Taxes, to deposit the tax refund checks, after which Bailey withdrew, spent and transferred the money to his co-conspirators for their own purposes. Bailey also pled guilty to aggravated identity theft in connection with his deposits of tax refund checks bearing forged signatures. Simmons pled guilty to conspiracy to defraud the United States, and Thorne pled guilty to theft of public money. The conspiracy caused a loss to the IRS of $1,963,991.
Senior United States District Judge Frederick J. Scullin, Jr. presided over the cases and sentenced all three defendants.
This case was investigated by the IRS, the Town of Colonie Police Department, the Town of Niskayuna Police Department, the Albany Police Department, the New York State Police, and the United States Postal Inspection Service. It was prosecuted by Assistant U.S. Attorney Megan Kistler.
Syracuse Man Pleads Guilty to Threatening to Kill VA Hospital EmployeesRead the Press Release
SYRACUSE, NEW YORK – Mark W. Sweeney, age 60, of Syracuse, New York, pled guilty today in Utica, New York. before United States District Court Judge David N. Hurd, to threatening to kill federal officials employed at the Syracuse Veterans Affairs Hospital (VA), announced United States Attorney Grant C. Jaquith and Jon Godfrey, Chief, Veterans Affairs Police, Syracuse, New York.
As part of his guilty plea, Sweeney admitted that he made a telephone call to the Veterans Crisis Line and during that call made several threatening statements directed to the Syracuse VA Hospital staff, including that he intended to kill multiple people who treated him and had a plan, and the means to do so.
Sweeney faces up to 10 years in prison, a fine of up to $250,000.00, and a term of supervised release of up to three years when he is sentenced on November 7, 2019, by Judge Hurd. 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 Veterans Affairs Police Department and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
Hudson Man Sentenced to 120 Months for Crack Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Archie “A.J.” Evans, age 42, 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.
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, Evans 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.
Senior United States District Judge Thomas J. McAvoy also imposed a 5-year term of supervised release, to begin after Evans’s release from prison.
This case was investigated by the New York State Police’s Special Investigations Unit, the FBI, and the Hudson Police Department, and was prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Joshua R. Rosenthal.
Owner of Essex County-Based Medical Transportation Company Pleads Guilty to Health Care FraudRead the Press Release
ALBANY, NEW YORK – Qaiser Gondal, age 47, of Watervliet, New York, pled guilty today to conspiring to defraud Medicaid.
The announcement was made by:
- United States Attorney Grant C. Jaquith;
- New York State Police Superintendent Keith M. Corlett;
- James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI);
- 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.
Qaiser Gondal operated Ti Taxi Inc. (“Ti Taxi”), a Medicaid-funded transportation company based in Ticonderoga, New York.
As part of his plea, Qaiser Gondal admitted that he committed a variety of frauds against Medicaid and the New York State Department of Health, including: billing Medicaid and receiving payment for trips where beneficiaries drove themselves to their own medical appointments, and falsifying the identities of the drivers for those trips; billing Medicaid and receiving payment for roundtrips to and from medical appointments when the beneficiaries took only one-way trips with Ti Taxi; and falsifying pick-up and drop-off locations, in order to increase the purported distances traveled and therefore be able to claim and receive higher Medicaid payments.
Qaiser Gondal also admitted that he paid kickbacks and bribes to Medicaid beneficiaries in order to induce those beneficiaries to schedule and keep scheduling medical transportation appointments with Ti Taxi. Kickbacks included cash, phone cards, cigarettes and tobacco, and free goods at Gondal’s convenience store in Ticonderoga.
Qaiser Gondal faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years, when he is sentenced on November 14, 2019 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.
Qaiser Gondal has also agreed to pay $325,000 in restitution.
Yesterday, Khurram Gondal, age 38, of Ticonderoga, pled guilty to health care fraud in connection with fraudulent Medicaid billing practices connected to two other medical transportation companies, Green Mountain Medical Transportation Inc. and Four Way Taxi, Inc. Khurram Gondal, who is Qaiser Gondal’s brother, also faces up to 10 years in prison when he is sentenced on November 14, 2019 by Judge McAvoy. Khurram Gondal has agreed to pay $60,000 in restitution.
Charges remain pending against several other defendants. Those defendants are presumed innocent unless and until proven guilty.
The federal charges are being investigated by the FBI and the New York State Police’s Special Investigations Unit, 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.
Second Georgia Man Pleads Guilty to Check Cashing SchemeRead the Press Release
ALBANY, NEW YORK – Javonte J. Johnson, age 22, of Decatur, Georgia, pled guilty today to creating counterfeit checks and then cashing them at banks in Saratoga and Warren Counties.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Superintendent Keith M. Corlett.
Johnson pled guilty to one count of conspiring to commit bank fraud and one count of aggravated identity theft.
Johnson admitted that he and co-conspirators, including Alphonso L. Howard, Jr., defrauded financial institutions by intercepting and stealing checks sent through the U.S. Mail; using information from these legitimate checks to create counterfeit checks drawn on the same financial accounts as the stolen, legitimate checks; and then cashing and attempting to cash the counterfeit checks at financial institutions in Saratoga and Warren Counties. Johnson agreed that he caused $164,077.70 in losses.
Johnson, who has been in custody since New York State Police arrested him on September 26, 2018, will be sentenced on October 29, 2019. He faces at least 2 years and up to 30 years in prison, a maximum $1 million fine, and up to 5 years of post-release supervision. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
On April 9, 2019, Howard, age 28, of Decatur, Georgia, pled guilty to one count of conspiring to commit bank fraud and one count of aggravated identity theft. He is scheduled to be sentenced on August 13, 2019.
This case was investigated by the FBI and the New York State Police-Troop G, and is being prosecuted by Assistant U.S. Attorney Michael Barnett. Other agencies have assisted in the investigation and prosecution, including the District Attorney’s Offices in Jefferson, Saratoga and Warren Counties, the Glens Falls Police Department, the Burlington Police Department (Vt.), Vermont State Police, and the Stowe Police Department (Vt.).
Syracuse Man Pleads Guilty to Possession with Intent to Distribute Crack CocaineRead the Press Release
SYRACUSE, NEW YORK – DeAndre Peterson, age 23, of Syracuse, pled guilty today to possession with intent to distribute crack cocaine, announced United States Attorney Grant C. Jaquith and Kenton T. Buckner, Chief of the Syracuse Police Department.
In pleading guilty, Peterson admitted that on November 8, 2018, he possessed several bags of crack cocaine totaling less than 2.8 grams and that he intended to distribute that cocaine to customers in the city of Syracuse. Peterson was arrested that day in connection with an enforcement operation targeting drug distribution in the city of Syracuse after he sold crack cocaine to a man named Damion Anderson, who then re-sold the crack cocaine to an undercover police officer. Anderson previously pled guilty to his role in conspiring with Peterson to distribute crack cocaine and was sentenced last month to serve 12 months in prison followed by 3 years of supervised release.
Peterson will be sentenced on October 30, 2019, by Chief United States District Judge Glenn T. Suddaby, who presides over the case. Peterson faces up to 20 years in prison, a fine of up to $1 million, and a supervised release term of between 3 years and life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the Syracuse Police Department with assistance from the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the United States Marshals Service, and is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Jefferson County Woman Pleads Guilty to Sexual Exploitation CrimesRead the Press Release
UTICA, NEW YORK – Amber Decker, age 25, of Antwerp, New York, pled guilty today to all counts of a seven-count indictment charging that she, together with her husband, conspired to sexually exploit, and sexually exploited, a 2-year-old child for the purpose of producing images and videos of the abuse.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As a part of her guilty plea, Decker admitted that on several occasions in July and August 2018, while she was living in Jefferson County, New York, and her husband was located in Sioux Falls, South Dakota, she videotaped her sexual abuse of the 2-year-old, and uploaded the video files to a cloud storage account for her husband to view.
United States District Judge David N. Hurd will sentence Decker on October 24, 2019. Her husband, Logan Decker, is charged with the same offenses, and is scheduled for trial on September 30, 2019. The charges in the indictment against Logan Decker are merely accusations. Logan Decker is presumed innocent unless and until proven guilty
Each of the seven crimes to which Amber Decker pled guilty carries a mandatory minimum sentence of 15 years, and a maximum sentence of 30 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. She 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 is being investigated by the FBI, the New York State Police, the Jefferson County Sheriff’s Office, and the Sioux Falls, South Dakota Police Department, and is being 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), 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.
Former Border Patrol Agent Pleads Guilty to Distribution, Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Keith E. Hook, age 55, of Oswego, New York, pled guilty today to distributing, receiving and possessing child pornography, announced United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
United States Attorney Grant C. Jaquith stated: “It is a sad day when a federal agent sworn to protect the public violates that duty in such a profound way. Former Border Patrol Agent Hook exploited the most vulnerable members of our community, our children, by trading child pornography both on and off duty. Thanks to the hard work of our law enforcement partners, Hook will now be held fully accountable for his despicable conduct.”
HSI Special Agent in Charge Kevin Kelly stated: “The actions of an individual officer sworn to protect the public should in no way tarnish the excellent reputation of the overwhelming majority of those who wear the badge. This case should however demonstrate that HSI will hold accountable all of those involved in these crimes, regardless of the position they hold in the community.”
In entering his guilty plea today in United States District Court, Hook, formerly a Border Patrol Agent, admitted that he used the Kik Messenger application to distribute and receive child pornography from other Kik users from January 2018 through July 2018. Hook, using his iPod Touch, traded images of child pornography using a Wifi connection both at his home and while on duty at the Oswego Port of Entry. Forensic analysis of Hook’s iPod revealed that at the time of his arrest he possessed on his iPod 138 images and 4 video files depicting minors engaged in sexually explicit conduct. In addition to those images, Hook also had 10 video files and over 200 image files saved in his iCloud storage account and another 3 images stored on his laptop computer. The images and videos included depictions of the rape and sodomy of prepubescent children and toddlers.
United States District Judge David N. Hurd will sentence Hook on October 24, 2019. He faces at least 5 years and up to 20 years in prison for the distribution and receipt charges and up to 20 years in prison on the possession charge; a term of post-release supervision of at least 5 years and up to life; and a fine of up to $250,000. Hook will also be required to register as a sex offender.
This case is being investigated by HSI Syracuse with assistance from Department of Homeland Security Office of Inspector General, U.S. Customs and Border Protection Office of Professional Responsibility, New York State Police Computer Crimes Unit, and the New York State Police-Troop D, 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.
Troy Man Pleads Guilty to Attempted Online Enticement of a MinorRead the Press Release
ALBANY, NEW YORK – Michael Varian, age 52, of Troy, New York, pled guilty today to one count of attempted online enticement of a minor, 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, Varian, a school bus driver, admitted that he attempted to entice an individual, whom he believed to be a 14-year-old boy, to have sex. After weeks of exchanging sexually explicit text messages with undercover law enforcement officers posing as the boy, Varian arranged to meet the boy at a fast food restaurant in Albany County, where Varian was arrested. As part of the plea, Varian also admitted that he had a prior sexual encounter with a minor boy in the public bathroom of an Albany County mall.
As a result of his conviction, Varian faces at least 10 years and up to life in prison, and 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. Sentencing is scheduled for October 16, 2019 before Senior United States District Judge Thomas J. McAvoy. Varian will also have to register as a sex offender upon his release from prison.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of state and local law enforcement agencies, including the Town of Colonie Police Department, and is being prosecuted by Assistant U.S. Attorneys Joshua R. Rosenthal and Megan Kinsella Kistler.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
Columbia County Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – James Brady, age 68, of Philmont, New York, pled guilty yesterday to distributing and possessing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Brady admitted to using a desktop computer equipped with peer-to-peer file-sharing software to download and distribute child pornography. Overall, Brady downloaded and retained more than 200 videos and images depicting child pornography.
Sentencing is scheduled for November 12, 2019 before Senior United States Judge Thomas J. McAvoy. Brady, who is detained pending sentencing, 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. Brady will also be required to register as a sex offender upon his release from prison.
This case was investigated by the New York State Police and the FBI, and is being prosecuted by Assistant United States Attorney Sahar L. Amandolare.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). 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.
Schenectady Man Sentenced to 15 Years for Gun and Drug CrimesRead the Press Release
ALBANY, NEW YORK – James Haskins, age 43, of Schenectady, New York, was sentenced on Friday, June 21 to 15 years in prison for possessing and intending to distribute crack cocaine, and for possessing a firearm in furtherance of a drug trafficking crime.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge John B. DeVito of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division.
In pleading guilty, Haskins admitted that on April 11, 2018, he possessed 152 grams of crack cocaine and a .380 caliber pistol and ammunition in Schenectady. He further admitted that he intended to distribute the crack cocaine to others in exchange for cash, and he possessed the firearm to protect his crack and drug proceeds from potential robbers.
Senior United States District Judge Norman A. Mordue sentenced Haskins to 10 years in prison on the drug charge and 5 years in prison on the firearm charge, to be run consecutively. He also sentenced Haskins to 5 years of supervised release to begin following his term of imprisonment.
This case was investigated by the ATF and Schenectady County Sherriff’s Office, and was prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.
Schenectady Man Pleads Guilty to Conspiring to Distribute HeroinRead the Press Release
ALBANY, NEW YORK – Jose Cortes-Cruz, aka “Bimbo,” age 28, of Schenectady, New York, pled guilty today to conspiring to possess with intent to distribute and to distribute heroin.
The announcement was made by United States Attorney Grant C. Jaquith; Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and New York State Police Superintendent Keith M. Corlett.
In pleading guilty, Cortes-Cruz admitted to being a member of a drug trafficking organization that distributed heroin in Schenectady between 2017 and December 20, 2018. As a member of the organization, the defendant picked up heroin and delivered thousands of dollars in cash as payment. The heroin was then sold in and around Schenectady.
Cotes-Cruz faces up to 20 years in prison, a term of supervised release of at least 3 years and up to life, and a maximum fine of $1 million. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Cortez-Cruz was charged with eight other defendants in an indictment alleging a conspiracy to distribute heroin in Schenectady. Four of Cortes-Cruz’s co-defendants, Leamzy Soto Calderon, aka “Lee,” aka “Gordo,” Linette Marie Soto, Kristen Jansen, and Gregory Insogna, have pled guilty. Co-defendants Jean Carlos Rivera-Perez, aka, “Tego,” Esteban Ressy, aka “The Boss,” and Patrick McNamara are pending trial. The final defendant, Daniel Garcia, aka “Danny,” is at large. The charges in the indictment are merely accusations. Rivera-Perez, Ressy, Garcia and McNamara, are presumed innocent unless and until proven guilty.
This case is being investigated by HSI, the New York State Police, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Amsterdam Police Department, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Saratoga County Man Pleads Guilty to Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – Kyle Caton, age 31, of Saratoga County, New York, pled guilty today to receiving child pornography, announced United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo Field Office.
In pleading guilty, Caton admitted that between 2018 and February 25, 2019, he downloaded child pornography from the internet. At the time of his arrest, Caton’s computer contained at least 454 images and 50 videos of child pornography. Some of these images depicted the abuse of very young children, including at least one toddler.
Sentencing has been set for November 3, 2019 in Albany before Senior United States District Judge Thomas J. McAvoy. Caton faces at least 5 years and up to 20 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. 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 Shira C. Hoffman, as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). 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.
Utica Man Arrested on Child Pornography ChargesRead the Press Release
SYRACUSE, NEW YORK – Aaron Bohannon, age 52, of Utica, New York, was charged today with distributing and possessing child pornography, announced United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo Field Office.
Bohannon made his initial appearance in federal court today before United States Magistrate Thérèse Wiley Dancks, who ordered that he be detained pending resolution of the charges.
The criminal complaint filed against Bohannon alleges that in January 2019, he distributed child pornography by uploading images and videos to a social media platform. Further, the complaint alleges that Bohannon had material depicting child pornography on one his mobile devices at the time of his arrest.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Bohannon faces at least 5 years and up to 20 years in prison, a term of post-imprisonment supervised release of at least 5 years and up to life, and mandatory registration as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the New York State Police, the Oneida County Sheriff’s Office, the Utica Police Department, and Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
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/.
Seven Maryland Residents Charged in Connection with Computer Fraud and Identity Theft Ring That Targeted State GovernmentsRead the Press Release
ALBANY, NEW YORK – A federal grand jury has indicted Jason “J.R.” Trowbridge, age 40; Guy Cuomo, age 51; Robin Chapin, age 61; Anna Hardy, age 66; and Shamair Brison, age 33, all of Frederick, Maryland; and Rebecca Fogle, age 25, of Woodsboro, Maryland, and Sarah Bromfield, age 39, of Hagerstown, Maryland, in connection with their alleged roles in a scheme to obtain unauthorized access to information from state government computers in order to sell this information to debt collectors.
The announcement was made by United States Attorney Grant C. Jaquith and Michael C. Mikulka, Special Agent in Charge, New York Region, United States Department of Labor, Office of Inspector General.
The indictment charges the defendants with conspiracy to commit computer fraud, accessing a protected computer and obtaining information for commercial advantage and private financial gain, and aggravated identity theft.
The defendants operated or were employed by Paymerica Corporation, a Maryland-based company involved in researching place-of-employment information to assist debt collectors. According to the indictment, the defendants conspired to gain unauthorized access to computers used by state governments in New York and other states for processing unemployment insurance applications. Members of the conspiracy created user accounts in the names of their victims, without the victims’ authorization, to obtain information about the victims’ current employers. The defendants then sold this information to third-party debt collectors seeking to collect money from the victims, including by garnishing the victims’ wages.
The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
If convicted, Trowbridge faces a mandatory 2-year term of imprisonment on the aggravated identity theft charges and up to 10 years in prison on the remaining charges. If convicted, Cuomo, Chapin, Hardy, and Brison each face a mandatory 2-year term of imprisonment on the aggravated identity theft charges and up to 5 years in prison on the remaining charges. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The case is being investigated by the U.S. Department of Labor, Office of Inspector General, with assistance from the New York State Department of Labor, Office of Special Investigations, and is being prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Joshua R. Rosenthal.
Montgomery County Man Pleads Guilty to Producing and Transporting Child PornographyRead the Press Release
ALBANY, NEW YORK – John D. Salisbury, age 48, of Hagaman, New York, pled guilty today to four counts of sexual exploitation of a child, and 1 count of transportation of child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Salisbury admitted that on four occasions between October 2016 and February 2017, he used a hidden camera inside the bathroom of his residence to produce sexually explicit videos depicting a minor. Salisbury also admitted that he knowingly uploaded photos and videos depicting child pornography from a smartphone to an Internet-based email account.
Salisbury will be sentenced by Senior United States District Judge Norman A. Mordue on October 21, 2019. Salisbury faces a sentence of at least 15 years and up to 30 years in prison on each of the four counts of sexual exploitation, and between 5 and 20 years on the transportation count. Salisbury also can be sentenced to at least 5 years and up to lifetime post-imprisonment supervised release. He will also have to register as a sex offender when he is released from prison.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI, with assistance from the New York State Police Troop G Computer Crimes Unit, and is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Miami Company Sentenced to Pay $500,000 Fine for Structuring Financial TransactionsRead the Press Release
ALBANY, NEW YORK – Latam Games, LLC of Miami, Florida, was sentenced today to pay a $500,000 fine following its guilty plea to structuring financial transactions to evade currency reporting requirements.
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 Jonathan D. Larsen, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office.
A bank is required to report a customer’s deposits of more than $10,000 in currency in a single transaction. According to the plea agreement, between March 2013 and June 2013, to avoid these reports, Latam Games’s corporate officers broke cash deposits into amounts of less than $10,000 and deposited these smaller amounts in Florida, California, and New Jersey. For example, the company deposited $4,240 on March 18, 2013, $7,445 on March 19, and $9,560 on March 20. The company deposited $9,045 on April 25, 2013, and $9,000 the following day.
Latam Games admitted that it willfully violated federal law against structuring as part of a pattern of illegal activity involving more than $100,000 in a 12-month period.
Latam Games and another company, Crescent Marketing, Inc. previously forfeited $2,076,155.11 to the United States.
This case was investigated by the DEA and IRS-CI, and was prosecuted by First Assistant U.S. Attorney Elizabeth C. Coombe and investigated by Assistant U.S. Attorney Jeffrey Coffman. Assistant U.S. Attorney Adam Katz represented the United States in the civil forfeiture action.
Capital Region Anti-Gang Initiative Reaches More Than 1,600 Fifth-GradersRead the Press Release
ALBANY, NEW YORK – United States Attorney Grant C. Jaquith concluded the 2019 LEADership Project today at the Thomas O’Brien Academy of Science and Technology in Albany with seven fifth-grade students who completed the project this year, and many leaders and representatives of the participating federal, state, and local law enforcement agencies. The LEADership Project, an anti-gang initiative, reaches fifth-grade students in the Albany, Schenectady, Troy, and Lansingburgh School Districts. The project began with the Albany School District in 2011 and has grown since then.
United States Attorney Grant C. Jaquith stated: “The LEADership Project is about investing in our children, for they are the ones to whom we will be passing the future of our republic and the rule of law on which it is grounded. It is an important opportunity to tell students that we want them to excel and believe that they can, and that they should view law enforcement as a friend and supporter in their quest for success. There is no substitute for law enforcement officials speaking directly to students about the dangers of gangs, the consequences of their conduct and the effects of their choices, and the importance of positive self-esteem in achieving their goals. Reaching fifth-graders is crucial because we know that middle school can be a difficult transition period for students, where the temptation to join gangs and engage in other criminal behavior sometimes first arises. I thank our law enforcement partners for generously donating their time to this important anti-crime effort; the superintendents, teachers, and staff who dedicate their lives to helping students learn and become their best; and the students whose participation is cause for great optimism.”
This year, 27 law enforcement agencies participated in the LEADership Project, providing 123 law enforcement officials who volunteered their time in fifth-grade classrooms. They taught in over 80 classrooms, reaching more than 1,600 students. The following agencies participated:
Federal agencies
U.S. Attorney’s Office
U.S. Marshals Service
Bureau of Alcohol, Tobacco, Firearms, and Explosives
Federal Bureau of Investigation
U.S. Probation and Pretrial Services
U.S. Department of Health & Human Services, Office of the Inspector General
Social Security Administration, Office of the Inspector General
Internal Revenue Service
Homeland Security Investigations
U.S. Customs & Border Protection
Drug Enforcement Administration
Transportation Security Administration
State Agencies
New York State Police
New York State Attorney General’s Office
New York State Department of Corrections and Community Supervision
Local Agencies
Albany Police Department
Schenectady Police Department
Albany County District Attorney’s Office
Schenectady County District Attorney’s Office
Rensselaer County District Attorney’s Office
Albany County Sheriff’s Office
Rensselaer County Sheriff’s Office
Schenectady County Probation Department
Rensselaer County Probation Department
Albany County Department of Probation
Schenectady County Sheriff’s Office
Schenectady County Public Defenders’ Office
Broome County Man Pleads Guilty to Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Jack Hiller, 55, of Port Crane, New York pled guilty today to possessing 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, Hiller admitted that in February 2018 he used the Kik computer software application to receive sexually explicit images of children, some under 12-years of age. Hiller also admitted that he knowingly stored photos and videos of child pornography on one of his electronic devices.
Hiller will be sentenced on November 4, 2019, and faces up to 20 years in prison, a term of supervised release of at least five years and up to life, and a fine of up to $250,000.00. 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 is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
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.
New Hartford-Based Professional Tax Preparer Pleads Guilty to Failing to File his Tax ReturnsRead the Press Release
SYRACUSE, NEW YORK – James Becker, age 53, of New Hartford, New York, pled guilty yesterday to four counts of failing to file his personal federal income tax returns for tax years 2012-2015, announced United States Attorney Grant C. Jaquith and James D. Robnett, Special Agent in Charge of the New York Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
As part of the plea, Becker admitted that he was required to file tax returns for 2012-2015 based on his gross income in those years and that he willfully failed to do so, despite being a professional tax preparer who filed hundreds of tax returns for other people.
Becker will be sentenced by United States Magistrate Judge Thérèse Wiley Dancks on September 16, 2019 and faces up to one year in prison and up to a $100,000 fine on each of the four counts to which he pled guilty. 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 IRS-Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
Arizona Man Sentenced to 30 Years for Methamphetamine Trafficking and Money Laundering ConspiracyRead the Press Release
SYRACUSE, NEW YORK - Alonzo Harris, 44, of Youngtown, Arizona, was sentenced today to thirty (30) years imprisonment for his conviction for federal drug trafficking and money laundering charges, announced United States Attorney Grant C. Jaquith and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division. In imposing sentence, Chief United States District Judge Glenn T. Suddaby also ordered the defendant to serve ten years of supervised release following his term of incarceration, and to forfeit $873,592.99 in unlawful proceeds from the criminal activity.
Alonzo Harris was convicted following a four-day jury trial in October 2018. The evidence at trial proved that Harris used the U.S. Postal Service to send more than fifty multi-pound packages of methamphetamine from the Phoenix, Arizona area to Broome County, New York, where other members of his trafficking organization distributed the drugs. The trial evidence also established that Harris, along with his co-conspirators, generated hundreds of thousands of dollars in proceeds from this illegal drug activity.
The conviction in this case was part of Operation Hailstorm, a multi-agency investigation that resulted in charges against ten individuals involved in illegal methamphetamine-trafficking activity. The other nine defendants all previously pled guilty and were sentenced.
This case was investigated by the United States Drug Enforcement Administration (DEA), the United States Postal Inspection Service, the New York State Police, the Broome County Special Investigations Unit Task Force, and the Vestal (New York) Police Department and was prosecuted by Assistant U.S. Attorneys Nicolas Commandeur and Michael Gadarian.
Syracuse Man Sentenced for Possessing a Pistol as a FelonRead the Press Release
SYRACUSE, NEW YORK – Edwin Cuello-Martinez, 32, was sentenced today to serve 57 months in prison to be followed by a 3-year term of supervised release in connection with his conviction for possessing a pistol as a convicted felon, announced United States Attorney Grant C. Jaquith, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Chief Kenton Buckner, City of Syracuse Police Department.
As part of his previous guilty plea, Cuello-Martinez admitted that he possessed a Bryco 9mm semiautomatic pistol when he was stopped by uniformed Syracuse Police Officers at about 3:30 am on July 9, 2018 in the 100 block of Coolidge Avenue, in the City of Syracuse. As the Officers were speaking with Cuello-Martinez and a female companion, he suddenly fled on foot, abandoning his backpack containing the pistol. Following a short chase, Syracuse Police Officers were able to apprehend Cuello-Martinez, whom it was then learned was the subject of an arrest warrant for absconding from the New York State Department of Corrections and Community Supervision (Parole). Cuello-Martinez was previously convicted of five (5) prior felonies and was prohibited by federal law from possessing firearms or ammunition. The Bryco 9mm-semiautomatic pistol possessed by the defendant was inoperable due to a broken firing pin. Also found in the backpack were three live 9mm bullets.
This case was investigated by the City of Syracuse Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and was prosecuted by Assistant U.S. Attorney Richard Southwick, with assistance from the Onondaga County District Attorney’s Office.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the U.S. Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former Albany-Area HUD Employee Sentenced on Fraud ChargesRead the Press Release
SYRACUSE, NEW YORK – Timothy J. Oravec, age 60, formerly an employee at the United States Department of Housing and Urban Development (HUD) in Albany, New York, was sentenced yesterday afternoon to serve four months imprisonment and three years of supervised release by Senior United States District Judge Frederick J. Scullin, Jr. for committing wire fraud as part of a scheme to defraud the United States and HUD employees by falsely claiming that he had cancer and receiving and using leave time donated to him by his coworkers. The announcement was made by United States Attorney Grant C. Jaquith and Christina Scaringi, Special Agent in Charge for HUD’s Office of Inspector General (OIG), Northeast Region.
As part of his previous guilty plea, Oravec admitted that in 2013 he created a number of letters that purported to be from medical providers at two facilities that treat cancer patients and provided those fabricated letters to his management at HUD to support his assertion that he was then under care and treatment for cancer when that was not the case. He also admitted that he applied for and was accepted into HUD’s Voluntary Leave Transfer Program (“VLTP”), which permits HUD employees with a qualifying medical condition to receive donations of annual leave from other HUD employees and use that leave to take paid time off. Oravec received leave donations from HUD employees through the VLTP and used that donated time to take paid leave, resulting in salary payments to which he was not entitled. Oravec’s scheme was discovered after a HUD supervisor in 2018 questioned a subsequent fraudulent doctor’s note in support of a request for sick leave.
This case was investigated by HUD’s Office of Inspector General (HUD-OIG) and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
Cazenovia Man Pleads Guilty to Sexually Exploiting a ChildRead the Press Release
SYRACUSE, NEW YORK – Naven Conley, age 75, of Cazenovia, New York, pled guilty today to three counts of sexual exploitation of a child, announced United States Attorney Grant C. Jaquith, Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), and New York State Police Acting Superintendent Keith Corlett.
In entering his guilty plea today in United States District Court, Conley admitted that on three separate occasions he engaged in sexually explicit conduct with a minor under seven years of age and produced video recordings of that conduct over the course of three years.
As part of his guilty plea, Conley admitted that from 2016 through 2018 he used a cellular telephone to record sex acts that he engaged in with a child who was under the age of seven. In addition, to that conduct, Conley also admitted that he possessed 21 images and 15 video files depicting child pornography that he received over the internet. Conley further admitted that he showed those images and videos to the child victim as part of his efforts to convince the child to engage in sex acts with him.
United States Chief District Judge Glenn T. Suddaby will sentence Conley on October 23, 2019. He faces a mandatory minimum term of 15 years imprisonment on each count, with a maximum penalty of 30 years imprisonment per count. He will be required to serve a term of supervised release of a minimum of 5 years, and up to life, following his term of imprisonment. Conley will also be required to register as a sex offender.
Conley’s case was investigated by U.S. Homeland Security Investigations (HSI) and the New York State Police, Troop D, Computer Crimes Unit. The case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown
Salvadoran Citizen Sentenced to 21 Months for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Efrain Diaz Alachan, age 46, and a citizen of El Salvador, was sentenced today to 21 months in prison, for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea entered on February 12, 2019, Diaz Alachan admitted that he was removed from the United States to El Salvador five times, the most recent removal date being March 15, 2016. Diaz Alachan admitted that he returned to the United States following the removals without the necessary government permission.
On December 18, 2018, ICE Officers arrested Diaz Alachan at his residence in Schenectady, New York.
Diaz Alachan was previously convicted of this same offense, re-entry of a removed alien, in the Northern District of New York in 2011 and 2013, and in the Southern District of Texas in 2015.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Auburn Man Sentenced to 78 Months for Unlawful Possession of FirearmsRead the Press Release
SYRACUSE, NEW YORK – Steven Reynolds, age 38, of Auburn, New York, was sentenced today by Chief United States District Court Judge Glenn T. Suddaby to serve 78 months’ imprisonment and 3 years of supervised release for being a felon in possession of firearms, 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).
In May 2018, Reynolds drove a car with a stolen Browning 16-guage shotgun and a stolen Savage .308 caliber rifle to a parking lot in the Auburn area. While in the parking lot, Reynolds personally moved both firearms from the back of the car he was driving into the back of a Jeep occupied by two other individuals who then drove away with the firearms. Reynolds is prohibited from possessing firearms as he has two prior New York State felony drug convictions, one in 2005, the other in 2012.
This case was investigated by U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Finger Lakes Drug Task Force, consisting of law enforcement officers from the City of Auburn Police Department and the Cayuga County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorneys Sahar Amandolare and Michael Gadarian.
This case was brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors, and communities to prevent and deter gun violence and to arrest and prosecute offenders.
Mexican Citizen Sentenced to 63 Months for Helping Criminal Alien Enter United StatesRead the Press Release
ALBANY, NEW YORK – Maria Angelica Cruz Lancheros, also known as Coral Marisol Tovar-Flores, age 42, and a Mexican citizen living in Corona, New York, was sentenced today to 63 months in prison, to be followed by a 3-year period of supervised release, for aiding and assisting an illegal alien previously convicted of an aggravated felony to enter the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
On May 5, 2017, Cruz Lancheros travelled from New York City to Fort Covington, New York, with Jose Cardona Brito, in an attempt to help Jose Idarraga Lozano sneak into the United States from Canada. They were unsuccessful on May 5, and tried again the next day.
Cruz Lancheros and Cardona Brito met with and picked up Idarraga Lozano along the border near Fort Covington late on the night of May 6, 2017. As they were leaving the border area, they were stopped and arrested by Border Patrol Agents on New York State Route 11 near Burke, New York. Idarraga Lozano was inadmissible for entry into the United States, as he had been convicted of an aggravated felony, for drug trafficking, in the United States District Court for the District of New Jersey, in 2007, and removed to Colombia in 2009.
On May 9, 2019, Jose Cardona Brito, age 43, a citizen of Colombia residing in Jackson Heights, New York, was also convicted of helping an aggravated felon illegally enter the United States, and sentenced to time served (24 months in jail), followed by 1 year of supervised release. Jose Idarraga Lozano, age 34, of Colombia, pled guilty to the felony offense of illegal re-entry by an alien and was sentenced on March 28, 2018 to 16 months in prison, to be followed by 1 year of supervised release.
This case was investigated by Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.