Northern District of New York

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.

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, 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.

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, 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.

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, 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.

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.

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.

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, 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.

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.

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.

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

 

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.

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.

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. 

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.

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/.

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.

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/.

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.

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

 

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.

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.

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, 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.

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.

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

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.

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. 

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.

ALBANY, NEW YORK – Fidel Herrera-Cruz, age 40, and a citizen of Mexico, was sentenced today to 5 months in jail for illegally re-entering 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.

Herrera-Cruz admitted that he is a citizen of Mexico, and that he was removed from the United States to Mexico on April 10, 2018 and again on October 28, 2018.  On each occasion, Herrera-Cruz had been arrested by immigration authorities along the southwest border after he entered the United States without inspection from Mexico.  

On February 24, 2019, Herrera-Cruz was arrested by a Border Patrol Agent as part of a group of five people who had illegally entered the United States from Canada by walking across the border approximately 4 miles east of the Fort Covington Port of Entry.  A fingerprint check of Herrera-Cruz resulted in the discovery of the prior removals. 

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

 

SYRACUSE, NEW YORK – Arkmallah Hilliard, age 38, of Baltimore, Maryland, was sentenced today to serve 5 years in prison, to be followed by 3 years of post-imprisonment supervised release, and ordered to pay $943,597.00 in restitution to the IRS, after previously pleading guilty to conspiring to defraud the United States.  The announcement was made by United States Attorney Grant C. Jaquith, Special Agent in Charge Jonathan D. Larsen, Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office, and Special Agent in Charge Leigh-Alistair Barzey, Defense Criminal Investigative Service (DCIS), Northeast Field Office.

Hilliard previously pled guilty to conspiring with former Utica resident Anas Wilson and others to defraud the IRS by filing false and fraudulent income tax returns in the names of various individuals and obtaining tax refunds to which they were not entitled. Hilliard used his own bank accounts and others he controlled that were opened by co-conspirators to receive the tax refunds, after which Hilliard and others withdrew, spent, and transferred the money for their own purposes. The conspiracy netted Hilliard, Anas Wilson, and others a total of more than $900,000.00 in tax refunds from the IRS based on their filing of over 400 fraudulent income tax returns. Anas Wilson previously pled guilty to similar charges in federal court in Syracuse and is currently serving a 12-year prison sentence.

Senior United States District Judge Frederick J. Scullin, Jr. presided over the case and sentenced both Hilliard and Wilson.

This case was investigated by Internal Revenue Service-Criminal Investigation (IRS-CI) and the Defense Criminal Investigative Service (DCIS), and was prosecuted by Assistant U.S. Attorney Michael F. Perry.

SYRACUSE, NEW YORK – Donald M. Geiss, Jr., age 43, of Syracuse, pled guilty today to four counts of wire fraud and two counts of aggravated identity theft in relation to various schemes to defraud victims in New York, Pennsylvania, Wisconsin, Illinois, and California, announced United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

In pleading guilty, Geiss admitted that between approximately August 2016 through August 2017 he defrauded an individual (“Victim 1”) out of a total of $141,000 after fraudulently convincing Victim 1 that he (Geiss) was a private equity investor seeking to make investments in Central New York. In doing so, Geiss used the alias, “Dom.” In June 2017, Geiss defrauded another individual (“Victim 2”) out of approximately $6,500 after fraudulently convincing Victim 2 to enter into a sales contract for heavy equipment belonging to Victim 1’s company that Geiss purported to have the authority to sell (without Victim 1’s knowledge). In August and September 2017, Geiss defrauded a third individual (Victim 3) out of $3,000 by convincing Victim 3 that he (Geiss) was in the final stages of negotiating the sale of a computer algorithm to a well-known multinational finance and insurance corporation in New York (the “Insurance Company”). As part of this fraud on Victim 3, Geiss forged e-mail messages and text messages from individuals (Victims 4 and 5) who actually worked for the Insurance Company but who had no knowledge of Geiss or his actions. These forged electronic communications formed the basis of the aggravated identity theft charges. Based on Geiss’s assurances, including the forged electronic communications purportedly from Victims 4 and 5, Victim 3 sent $3,000 by wire to Victim 2 and $5,000 by wire to Victim 1, believing that paying them would facilitate the supposed transaction with the Insurance Company. In reality, Geiss had no pending deal with the Insurance Company and had Victim 3 make the payments in an attempt to keep Victim 1 and Victim 2 from realizing they had been defrauded.

Separate and apart from the schemes described above, Geiss also pled guilty today to defrauding people he met through the internet. As part of this guilty plea, Geiss admitted that he used the online alias, “Dominic LaRossa,” to convince people that he was an airline pilot. Geiss, acting as the supposed “LaRossa,” collected more than $5,000 from victims he met online in exchange for fake and fraudulent “discount” airline tickets, which did not exist. Geiss also defrauded several victims out of money in relation to an online video game platform, including convincing one individual (Victim 6) to purchase several online video game profiles from other people. Relying on Geiss’s fraudulent assertions, Victim 6 paid a total of approximately $13,300 to purchase online video game profiles created by others, and Geiss never reimbursed, and never intended to reimburse, Victim 6.

Geiss will be sentenced on October 11, 2019, by Senior United States District Judge Norman A. Mordue. The aggravated identity theft charges to which Geiss pled guilty carry a mandatory sentence of 2 years in prison consecutive to any other prison sentence, and the wire fraud charges filed against Geiss carry a maximum sentence of up to 20 years in prison for each count of conviction. At sentencing, Geiss also faces a fine of up to $1.5 million, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. In his plea agreement, the defendant agreed to submit to money judgments totaling over $153,000, and to pay restitution to his victims.

Geiss was on federal probation related to a prior conviction when he committed the crimes for which he pled guilty today, and a separate petition charging Geiss with violating the terms of his probation has been filed by United States Probation and Pretrial Services. With respect to the probation violation petition, the defendant is presumed innocent until proven guilty. If the defendant is found to have violated the terms of his probation, he faces up to two additional years in prison. The probation violation petition is also pending before Senior Judge Mordue.

This case was investigated by the FBI, and is being prosecuted by Assistant U.S. Attorney Michael F. Perry.

SYRACUSE, NEW YORK – Keith M. Moses, age 31, of Paterson, New Jersey, pled guilty today to conspiring to distribute 100 grams or more of heroin.

The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division; Joseph Cronin, Inspector in Charge, United States Postal Inspection Service (USPIS), Boston Division; and Plattsburgh City Police Chief Levi J. Ritter.

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

Moses faces at least 5 years and up to 40 years in prison, and a fine of up to $5 million, when he is sentenced by Senior United States District Judge Frederick J. Scullin, Jr. on October 15, 2019.  A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

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

ALBANY, NEW YORK – Caitlin Kenney, age 33, of Clifton Park, New York, was sentenced today to 21 months in prison for embezzlement by a bank employee. 

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.

In pleading guilty, Kenney admitted to embezzling a total of $483,784.83 from KeyBank, N.A., branches in Queensbury and Malta, New York, between September 2013 and February 2017.  Kenney, who worked as a head teller for KeyBank, transferred cash from KeyBank’s vaults to unused cashboxes and then stole the money.  In an effort conceal her theft, Kenney made false entries in KeyBank’s electronic accounting system.  Kenney spent the stolen money on clothes, cocaine and vacations, among other things. 

Senior United States District Judge Thomas J. McAvoy also sentenced Kenney to 2 years of supervised release, to begin following her term of imprisonment.  She is required to pay $483,784.83 in restitution to KeyBank. 

This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.

ALBANY, NEW YORK – United States Attorney Grant C. Jaquith and New York State Attorney General Letitia James announced today that Cathy Grossman, the owner and pharmacist-in-charge of Nassau Pharmacy, Inc., will pay $100,000 to resolve allegations that she and Nassau Pharmacy violated the federal and New York False Claims Acts by billing the federal and state governments for prescription drugs that Grossman and her staff never dispensed.

“When pharmacists submit false claims to Medicare and Medicaid, hard-working taxpayers foot the bill,” said United States Attorney Jaquith.  “We will continue to protect the public fisc and the integrity of our health care programs by holding health care professionals responsible when they line their pockets improperly.”

“Fraudulently billing Medicare and Medicaid for personal gain is both illegal and immoral,” said Attorney General Letitia James. “Not only did Cathy Grossman steal from government programs intended to support vulnerable populations, but she saddled taxpayers with the bills of this dishonest activity. We will continue to work to root out Medicaid fraud throughout New York State.”

As part of today’s settlement, Grossman admitted that, from March 2010 through March 2017, she submitted or caused others to submit false claims for payment to Medicare and Medicaid for prescription drugs that she and the staff at Nassau Pharmacy never dispensed.  In some instances, she billed Medicare and Medicaid for drugs that patients never ordered or never picked up from Nassau Pharmacy.  In other instances, Grossman billed the government for brand name drugs but dispensed to her patients less expensive generic alternatives. 

“Health care professionals must be held to a high standard of ethical behavior,” said Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (“HHS-OIG”).  “Along with our law enforcement partners, HHS-OIG will continue to ensure that those individuals and entities that bill federal health care programs do so in an honest manner.”

This investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the federal and New York False Claims Acts, which allow private persons, known as “relators,” to file civil actions on behalf of the government and share in any recovery.  The relator in this case will receive $22,000 of the settlement proceeds.  The case is docketed with the U.S. District Court for the Northern District of New York under number 1:16-cv-1338.

The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the New York State Attorney General’s Office, HHS-OIG, and the Federal Bureau of Investigation. The United States was represented by Assistant U.S. Attorney Adam J. Katz and New York State was represented by Special Assistant Attorney General Jill D. Brenner.

ALBANY, NEW YORK – Victor M. Diaz, age 29, of Johnstown, New York, pled guilty yesterday to possessing and intending to distribute more than 100 grams of heroin mixed with fentanyl.

The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division; and City of Amsterdam Police Chief Gregory J. Culick.

On March 7, 2019, DEA agents and other law enforcement officers executed a federal warrant at Diaz’s Johnstown residence.  They found him home, alone, and sitting near a suitcase containing 1,740 small glassine bags.  The bags contained a total of approximately 89 grams of heroin mixed with fentanyl.  Law enforcement also found, in a plastic container, an additional 53.5 grams of heroin mixed with fentanyl.

Diaz faces at least 5 years and up to 40 years in prison, and a term of post-imprisonment supervised release of at least 4 years and up to life, when he is sentenced on October 4, 2019 by Senior United States District Judge Norman A. Mordue.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case was investigated by the DEA and the Amsterdam Police Department, with assistance from the New York State Police and the Gloversville Police Department, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.

BINGHAMTON, NEW YORK – Mahkya Searles, 23, of Tioga County, New York, pled guilty  in United States District Court to receipt and possession of child pornography, announced United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI). Searles will remain in the custody of the United States Marshal’s Service pending sentencing by Senior United States District Judge Hon.Thomas J. McAvoy on September 26, 2019.  

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

Searles faces a sentence of between 5 and 20 years in prison, a fine of up to $250,000 and a term of supervised release of at least 5 years and up to life.  Upon release from imprisonment, Searles must also 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 Tioga County Sheriff’s Department, Athens Police Department, and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Kristen Grabowski, as a part of Project Safe Childhood. 

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

SYRACUSE, NEW YORK – Christopher Martinelli, 40, of Syracuse, was sentenced to serve a total of twenty‑five years in prison, to be followed by a lifetime of supervised release, for distributing, receiving, and transporting child pornography and violating supervised release.  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 Acting Superintendent Keith Corlett.

As part of his guilty plea, Martinelli admitted to knowingly exchanging sexually explicit photographs with a fourteen-year-old girl over the Internet, as well as trading child pornography online while on supervised release from a prior federal felony conviction. That prior conviction from January 14, 2011 was for Martinelli’s failure to register as a sex offender, for which he was sentenced to serve 14 months imprisonment, to be followed by a ten-year term of supervised release. Martinelli was required to register as a sex offender based upon a child pornography adjudication under the Uniform Code of Military Justice that was imposed while he was serving in the U.S. military.

In the current case, Chief United States District Court Judge Glenn T. Suddaby sentenced Martinelli to serve 240 months’ imprisonment for his child pornography crimes and 5 years’ imprisonment for violating the conditions of his supervised release by committing those crimes.  Judge Suddaby ordered that the terms of imprisonment be served consecutively, for a total of twenty‑five years’ imprisonment.

This case was investigated by the United States Probation Office, the New York State Police Major Crimes Unit, and the FBI Syracuse Mid-State Child Exploitation Task Force, a federal task force that investigates cases involving the sexual exploitation of children.  The task force consists of FBI Special Agents and New York State Police Investigators from Troop D, Bureau of Criminal Investigation.  The case was prosecuted by Assistant U.S. Attorney Carina H. Schoenberger.

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

ALBANY, NEW YORK - Joseph Defilippi, 55, of Chicopee, Massachusetts, pled guilty to one count of attempted online enticement of a minor, announced United States Attorney Grant C. Jaquith and James Hendricks, Special Agent in Charge of the Albany, New York Field Office of the Federal Bureau of Investigation (FBI).

As part of his guilty plea, Defilippi admitted that between about February 2018 and August 10, 2018, he exchanged multiple online communications with an undercover officer posing as a 13-year old boy “Dylan”.  Defilippi further admitted that his online communications were intended to persuade, induce, entice and coerce the boy into meeting with him for the purpose of engaging in sexual acts, and that on the morning of Friday, August 10, 2018, he travelled to the Schuyler Flatts Park in Menands, New York, in an effort to meet the child.

As a result of his conviction, Defilippi now faces a mandatory minimum sentence of ten (10) years imprisonment, a maximum term of life imprisonment, a fine of up to $250,000.00, a term of supervised release of at least five 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.  Sentencing is scheduled for October 15, 2019 before Senior U.S. District Judge Thomas J. McAvoy in Albany, New York.   

This case is being investigated by the FBI and the Town of Colonie (New York) Police Department, and is being prosecuted by Assistant U.S. Attorneys Rick Belliss and Joshua Rosenthal.

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

ALBANY, NEW YORK – Leamzy Soto Calderon, aka “Lee” and “Gordo,” 28, of Schenectady, New York, and Gregory Insogna, 45, of Amsterdam, New York, pled guilty on Friday and today, respectively, to conspiring to possess with intent to distribute and to distribute heroin, 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 M. Corlett. 

In pleading guilty, Soto Calderon admitted to being a member of a drug-trafficking organization that distributed a kilogram or more of heroin in Schenectady between 2017 and December 20, 2018.  As a member of the organization, Soto Calderon regularly picked up hundreds of grams of heroin and delivered thousands of dollars in cash in payment for the heroin; prepared the heroin for sale by mixing it with cutting agent and packaging it into “bags” and “bundles”; and sold the heroin to a large customer base in and around Schenectady, New York.  In December 2018, law enforcement officers executed a search warrant at Soto Calderon’s residence in Schenectady and seized 268 grams of heroin, cutting agent, and heroin processing materials. 

In his guilty plea, Insogna admitted to being a member of the same drug-trafficking organization and to obtaining heroin from Soto Calderon, and others, which Insogna then sold in Amsterdam, New York.  Insogna also admitted to directing couriers to pick up the heroin from and deliver payment for the heroin to Soto Calderon in Schenectady. 

Soto Calderon faces at least 10 years and up to life imprisonment, a term of supervised release of at least 5 years and up to life, and a maximum fine of $10 million.  Insogna faces at least 5 years and up to 40 years imprisonment, a term of supervised release of at least 4 years and up to life, and a fine of up to $5 million.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

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

ALBANY, NEW YORK – Carlo Varnado, age 41, of South Glens Falls, New York, pled guilty to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine.

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

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

As a result of his conviction, Varnado faces at least 5 years and up to 40 years in prison and a fine of up to $5,000,000, when he is sentenced on September 24, 2019.  A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

This case was investigated by the United States Drug Enforcement Administration (DEA) and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.

SYRACUSE, NEW YORK – Christian Roman, age 25, of Schenectady, New York, was sentenced to serve 150 months in prison for stealing, possessing, concealing, and storing firearms stolen from Target Sports, Inc., a federally licensed firearms dealer in Schenectady County.

The announcement was made by United States Attorney Grant C. Jaquith and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

United States District Judge Norman A. Mordue also sentenced Roman to a three year term of supervised release and ordered that he pay restitution of $48,775.00

Roman pled guilty on November 21, 2018.  As part of his plea, Roman admitted that, on October 22, 2017, he and Jose Fontanez broke a window to gain entry into Target Sports and then removed dozens of firearms, as well as ammunition and other property from the store, making multiple trips to and from the store with the assistance of Dalmary Morales.  Roman further admitted that, after inventorying the stolen firearms, the two men hid them in a storage unit in Schenectady, New York and, while on the run from law enforcement, enlisted accomplices in Amsterdam, New York and Rochester, New York to help retrieve and transport them to various locations in New York.  In exchange for their assistance, Roman and Fontanez provided some of the stolen firearms to their accomplices.

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

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

Juan Saez, age 35, of Rochester, pled guilty in 2018 for his role in stealing, transporting, and possessing the firearms.  He is scheduled to be sentenced on August 2, 2019.

Jose Fontanez, age 36, of Schenectady, pled guilty in 2018 to stealing the firearms from Target Sports, and other, related charges.  He is scheduled to be sentenced on August 16, 2019.

The case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York State Police, and the Glenville, (New York) Police Department, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.

SYRACUSE, NEW YORK – Damion Anderson, age 48, of Syracuse, was sentenced today in federal court in Syracuse to serve 12 months in prison, followed by 3 years of supervised release, after previously pleading guilty to possession with intent to distribute and distributing crack cocaine, announced United States Attorney Grant C. Jaquith, John B. DeVito, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief of Police Kenton T. Buckner, Syracuse Police Department.

In previously pleading guilty, Anderson admitted that on November 8, 2018, he conspired with one or more other people to sell crack cocaine in Syracuse and that he engaged in a sale of less than 2.8 net grams of crack cocaine on that day. This case was part of a targeted drug suppression and enforcement operation conducted jointly by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Syracuse Police Department.

This case was investigated by the Syracuse Police Department and U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with assistance from the United States Marshals Service, and was prosecuted by Assistant U.S. Attorney Michael F. Perry.

SYRACUSE, NEW YORK – Jaswinder Singh age 30, of Philadelphia, Pennsylvania, has been charged in federal court in Syracuse with transporting aliens in the United States, knowing or in reckless disregard of the fact that the aliens were in the United States illegally, announced United States Attorney Grant C. Jaquith and U.S. Border Patrol Swanton Sector Chief Patrol Agent Robert Garcia.

A criminal complaint filed in United States District Court charges Singh with transporting two aliens who were without lawful status in the United States, and alleges that he received approximately $2,200 as payment for his services.  The complaint further alleges that an agent from the United States Border Patrol stopped Singh’s vehicle in St. Lawrence County near the Canadian border, after a U.S. Customs and Border Protection (CBP) Air and Marine Unit helicopter spotted multiple people entering a vehicle in the area after crossing the St. Lawrence River from Canada into the United States.

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

The defendant was arraigned before United States Magistrate Judge David E. Peebles, and ordered detained pending resolution of the charges.

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

This case is being investigated by the United States Border Patrol with assistance from U.S. Customs and Border Protection (CBP) Air and Marine Operations (AMO), and is being prosecuted by Assistant U.S. Attorney Michael F. Perry.

SYRACUSE, NEW YORK – Gary Hallinan, age 61, of Oswego, New York, pled guilty yesterday in federal court in Syracuse to negligently discharging wastewater from the City of Oswego Wastewater Treatment Plant into Lake Ontario in violation of the Clean Water Act on three dates between March 2015 and June 2015, announced United States Attorney Grant C. Jaquith, Tyler Amon, Special Agent in Charge of the U.S. Environmental Protection Agency’s Criminal Investigation Division (EPA-CID) in New York, and Bernard Rivers, Director of Law Enforcement, New York State Department of Environmental Conservation (DEC).

In pleading guilty, Hallinan admitted that in December 2014, while he was the Superintendent of the Oswego Wastewater Treatment Plant, the plant’s centrifuge, an essential piece of equipment to process wastewater and remove untreated or improperly treated sewage, stopped operating. As a result, the plant could no longer properly remove sewage from its wastewater. Over the next five months, Hallinan, as the superintendent of the plant, failed to take action to remove sewage from the plant’s wastewater or to report the broken centrifuge to the New York State Department of Environmental Conservation. As a result of the defendant’s negligence, the Oswego Wastewater Treatment Plant discharged wastewater containing solid sewage in violation of its permit under the Clean Water Act. These discharges took place on March 1, 2015; June 19, 2015; and June 23, 2015. The concentration of solid matter in the water discharged into Lake Ontario on June 23, 2015, was approximately 60 times higher than allowed by the plant’s permit.

The charge to which Hallinan pled guilty yesterday carries a maximum penalty of up to 1 year in prison, a fine of up to $100,000, and a term of supervised release of up to 1 year. The defendant will be sentenced on September 24, 2019 by United States Magistrate Judge David E. Peebles. 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 U.S. Environmental Protection Agency’s Criminal Investigation Division (EPA-CID), the New York State DEC, Division of Law Enforcement and Bureau of Environmental Crimes Investigation Unit (BECI), and is being prosecuted by Assistant United States Attorney Michael F. Perry.

ALBANY, NEW YORK – John L. Brooks, age 41, of Akron, Ohio, was sentenced yesterday to 21 months in prison for tampering with evidence.

The announcement was made by United States Attorney Grant C. Jaquith and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

Brooks was convicted of tampering with evidence after a 4-day jury trial in January 2019.  The evidence presented at trial showed that Brooks traveled from Akron to Albany on April 29, and retrieved a bag containing eight firearms that he had previously purchased on March 18 and 19, 2017 and provided to individuals from New York.  Brooks then returned to Akron with those firearms.  After hearing evidence that Brooks did so only days after one of the individuals from New York attended an interview with a federal agent, and Brooks received several calls from phone numbers with a 518 area code, as well as other evidence, the jury found that Brooks attempted to conceal the firearms with the intent to impair their availability for use in a grand jury investigation.

United States District Judge Mae A. D’Agostino also sentenced Brooks to 2 years of supervised release, to begin following his term of imprisonment. 

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

SYRACUSE, NEW YORK – A federal grand jury has indicted 12 members of a Syracuse-based drug trafficking organization that distributed more than two kilograms of heroin and mixtures of heroin and fentanyl, 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.

United States Attorney Grant C. Jaquith stated: “Heroin and fentanyl kill tens of thousands every year. Each and every death causes unfathomable suffering and grief for loved ones, and the magnitude of overdose deaths reverberates in our communities.  Holding dealers who peddle this poison accountable is essential in turning this tide.  We will continue to work with the Drug Enforcement Administration to investigate and prosecute those who profit from the tragedy of addiction.”

“DEA’s job is to save lives,” said Ray Donovan, DEA Special Agent in Charge. “Today’s arrests are significant because we arrested 12 opioid traffickers allegedly responsible for fueling the deadliest drug crisis in U.S. history. In addition to the arrests, we seized over a million dollars-worth of heroin/fentanyl, which would supply every ticket holder at a sold-out event in the Carrier Dome at least one dose of death.  I commend our law enforcement partners and the U.S. Attorney’s Office for the Northern District of New York on this exceptional investigation.”

In connection with this investigation, law enforcement officers led by DEA seized more than 67,000 individual bags of heroin and mixtures of heroin and fentanyl, which weighed more than two kilograms; $78,000 in drug proceeds; 11 vehicles; and two handguns.

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

The defendants are all charged with conspiracy to distribute and possess with the intent to distribute heroin and fentanyl, and they face the following potential penalties:

Defendant

Age

Residence

Minimum

Maximum

Jesus Manuel Lopez-Mendez

34

New York City

(the Bronx)

10 years

Life

Gavin Ballog

29

Syracuse

10 years

Life

Yan Morales

29

Syracuse

10 years

Life

Brian Morales

28

Syracuse

10 years

Life

Juan Santa

27

Syracuse

10 years

Life

Jerry Massa

21

Syracuse

5 years

40 years

Ariel Massa

18

Syracuse

5 years

40 years

Carlos Torres

24

Syracuse

5 years

40 years

Gregorio Pizarro

20

Syracuse

None

20 years

Gregory Darrain

29

Syracuse

None

20 years

Michael Calderon

24

Syracuse

None

20 years

Dennis Smith

32

East Syracuse

None

20 years

Ballog, Bryan Morales, Santa, and Lopez-Mendez are also charged with possession with intent to distribute a controlled substance.  Ballog is charged with two counts of possession with intent to distribute 100 grams or more of heroin.  Morales is charged with one count of possession with intent to distribute heroin. Juan Santa is charged with one count of possession with intent to distribute heroin and fentanyl.  Lopez-Mendez is charged with one count of possession with intent to distribute 100 grams or more of heroin.  The indictment also contains forfeiture allegations.

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.

Eleven defendants have appeared in federal court in Syracuse and were held without bail pending detention hearings scheduled for next week.  Defendants Ballog, Yan Morales, Brian Morales, and Santa were arrested and charged by criminal complaint on February 2, 2019.  Lopez-Mendez was arrested and charged by criminal complaint on February 11, 2019.  The remaining defendants were arrested this week, except for Gregory Darrain, who is a fugitive. 

This case is being investigated by the DEA Syracuse Resident Office HIDTA (High Intensity Drug Trafficking Area) Group consisting of agents and officers of the DEA, the New York State Police, and the City of Auburn (New York) Police Department, Syracuse Police Department, Onondaga County Sheriff’s Office, and investigators from the Onondaga County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Carla B. Freedman.