Northern District of New York

ALBANY, NEW YORK – John Coffin, aka “Body,” age 49, of Schenectady, New York, was sentenced on Tuesday to 120 months in prison for illegally possessing a handgun and ammunition.

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

Coffin, who has multiple, prior felonies for drug and assault offenses, was convicted of possessing the handgun and ammunition after a 5-day jury trial in November 2018.  The evidence at trial showed that Coffin provided a Walther P22 .22 caliber firearm, which he described as “the murderer’s gun,” and 9 rounds of ammunition, to another man in Schenectady.  The jury acquitted Coffin on a second charge, of possessing a separate firearm, a 9mm Hi-Point rifle, in furtherance of a drug trafficking crime.

Senior United States District Judge Thomas J. McAvoy also sentenced Coffin to 5 years of supervised release, to begin following his term of imprisonment.

This prosecution resulted from an investigation by the FBI and its Capital District Safe Streets Task Force, which includes members of the FBI, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the New York State Police, the Schenectady Police Department, the Schenectady County District Attorney’s Office, the New York State Department of Corrections and Community Supervision, the Albany County Sheriff’s Office, and the New York Air National Guard.

The case was prosecuted by Assistant United States Attorney Wayne A. Myers.

SYRACUSE, NEW YORK – Miguel Sernas, age 40, of Mexico City, Mexico, pled guilty yesterday to conspiring to steal trade secrets from the General Electric Company (GE).

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

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

Sernas, who is in custody, faces up to 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years when he is sentenced on September 16, 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.

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

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

ALBANY, NEW YORK – Justin W. May, age 37, of Edinburg, New York, was sentenced today to 72 months in prison for possessing firearms in furtherance of a drug trafficking crime, possessing a machinegun, and manufacturing marijuana.

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

On April 12, 2016, the New York State Police responded to a call for shots fired on Fox Hill Road in Edinburg.  Upon arrival, one individual was immediately taken into custody, but the second shooter, later identified as May, was not visible.  In response, State Police members looked around May’s property and observed a marijuana grow operation, along with an AR-15-type weapon. 

May later returned home and was taken into custody.  He possessed two handguns in his vehicle.  The State Police executed a search warrant on the property and found marijuana plants in various stages of growth, approximately 6 pounds of processed marijuana, two semi-automatic rifles, and other firearms.

Further ATF examination of one of the rifles, an AR-15 type, .300 Blackout caliber rifle, concluded that the hammer had been modified to allow the firearm to fire automatically, as a machinegun.  May admitted during his plea on November 21, 2018, that he knew the Blackout rifle, as modified, was a machinegun, and that he possessed two handguns to protect his marijuana grow operation and drug money.

United States District Judge Mae A. D’Agostino sentenced May to 12 months in prison for growing marijuana and for possessing the machinegun, to run concurrently, and imposed a mandatory 60-month consecutive sentence for possessing the handguns in furtherance of drug trafficking.  May must also serve a 3-year term of supervised release once out of prison and pay a $3,000 fine.

This case was investigated by ATF and the New York State Police, and was prosecuted by Assistant U.S. Attorneys Douglas Collyer and Jeffrey Coffman.

 

SYRACUSE, NEW YORK –Augustine Sneh, age 31, a Liberian citizen living in Philadelphia, Pennsylvania, was convicted yesterday after a 2-day trial of making a false statement and making a false claim of United States citizenship.

The announcement was made by United States Attorney Grant C. Jaquith and Steven Bronson, Area Port Director, United States Custom and Border Protection (CBP).

Trial evidence showed that on October 16, 2018, Sneh was denied admission into Canada at the Saint Bernard de LaColle, Quebec Port of Entry.  Due to the Canadian refusal, Sneh was required to report to the Champlain Port of Entry, New York.  During immigration inspection at the Champlain Port of Entry, Sneh stated that he was a United States citizen born in Philadelphia.  Sneh is in fact a citizen of Liberia, born in Liberia, and he is not a United States citizen.  Sneh entered the United States in 2000, has resided here since 2000, and is the subject of an unexecuted removal order from February 2012.

Sneh faces up to 5 years in prison and a fine of up to $250,000 when he is sentenced by Senior United States District Judge Norman A. Mordue on September 16, 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 CBP and prosecuted by Assistant U.S. Attorney Edward P. Grogan.

 

ALBANY, NEW YORK – Michael Greenholtz, age 24, of Cairo, New York, was sentenced today to 24 months in prison for illegally possessing a .22 caliber revolver as a prohibited person.

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 John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

Senior United States District Judge Thomas J. McAvoy also sentenced Greenholtz to 3 years of supervised release, to begin following his term of imprisonment. 

As part of his guilty plea, Greenholtz admitted that on July 31, 2018, he sold a .22 caliber revolver in Albany.  Two prior state felony convictions for burglary prevented Greenholtz from legally possessing the firearm.  Greenholtz has been in custody since his arrest on September 15, 2018.

This case was investigated by the FBI, its Capital District Safe Streets Gang Task Force, and the ATF, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.

 

ALBANY, NEW YORK – Juan A. Torres, age 36, of Albany, pled guilty today to unlawfully possessing a firearm and ammunition as a felon. 

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

Torres admitted that on July 13, 2018, he sold a Kel-Tec 9 millimeter pistol, loaded with four rounds of Luger ammunition, in Schenectady County, New York.  Torres had two felony convictions at the time.

Torres, who is in custody, faces up to 10 years in prison, and up to 3 years of post-imprisonment supervised release, when he is sentenced on September 17, 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.

This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.

SYRACUSE, NEW YORK – Dalmary Morales, age 38, of Schenectady, New York, was sentenced on May 9 to 57 months in prison for receiving, 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).

Senior United States District Judge Norman A. Mordue also sentenced Morales to 3 years of supervised release and ordered that she pay restitution of $48,775.

Morales pled guilty on May 17, 2018.  As part of her plea, Morales admitted that she helped Christian Roman and Jose Fontanez steal dozens of firearms from Target Sports by repeatedly driving the men between her apartment and the gun store.  Each time, she served as a lookout while the two removed firearms, ammunition, and other property from inside the store through a broken window and placed them in her car.  Morales also admitted that she helped Roman and Fontanez inventory the stolen firearms at her apartment and obstructed justice by alerting Roman and Fontanez that authorities were looking for them in the hours after the burglary, resulting in an extended manhunt.

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

Christian Roman, age 24, of Schenectady, pled guilty in 2018 to stealing the firearms from Target Sports.  He is scheduled to be sentenced on May 29, 2019.

Juan Saez, age 35, of Rochester, New York, 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 ATF, New York State Police, and the Glenville Police Department, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.

ALBANY, NEW YORK – Charles Guyer, age 60, of Johnstown, New York, pled guilty today to distributing and receiving child pornography.

The announcement was made by United States Attorney Grant C. Jaquith; Kevin M. Kelly, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo Field Office; and Acting New York State Police Superintendent Keith M. Corlett.

As part of his guilty plea, Guyer admitted to using two laptop computers equipped with peer-to-peer file-sharing software to download and distribute child pornography.  Guyer, who has a prior New York State felony conviction for sexual abuse in the first degree (sexual contact with an individual less than 11 years old), has been in custody since his arrest on April 24, 2018.  

Sentencing is scheduled for September 16, 2019 before Senior United States Judge Thomas J. McAvoy.  Guyer faces at least 15 years and up to 40 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. Guyer will also be required to register as a sex offender upon his release from prison. 

This case was investigated by HSI and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.

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 – Terry L. Shellenberger, age 50, of Albany, pled guilty today to child pornography possession, announced United States Attorney Grant C. Jaquith.

Shellenberger admitted that on July 21, 2018, while on supervised release for a prior federal felony conviction, he was in possession of a phone that he used to download child pornography videos from the internet.  Shellenberger had not previously informed Probation Officers that he had the phone, as he was required to do.  Probation Officers found it during an unannounced home visit. 

Shellenberger has prior federal convictions for child pornography possession (2006) and failure to register as a sex offender (2017). 

Shellenberger, who is in custody, faces at least 10 years and up to 20 years in prison, as well as a term of post-imprisonment supervised release of at least 5 years and up to life, when he is sentenced on September 4, 2019 by Senior United States District Judge Lawrence E. Kahn.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case was investigated by the United States Probation Office for the Northern District of New York, and the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.

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 – Saul E. Pacheco, age 38, of the Bronx, New York, pled guilty today to conspiring with another person to distribute more than 100 grams of heroin in Columbia County.

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

In pleading guilty, Pacheco admitted to supplying heroin to Timothy J. Simpson Jr., a Columbia County drug dealer, from at least April 2017 through March 2018.  Pacheco was arrested on April 4, 2018, while attempting to meet Simpson in the parking lot of a casino in Yonkers, Westchester County.  In the parking lot, DEA Special Agents located a plastic bag containing approximately 68 grams of heroin, which Pacheco had discarded once he noticed agents approaching him. 

Pacheco, who is in custody, faces at least 5 years and up to 40 years in prison, as well as a term of post-imprisonment supervised release of at least 4 years and up to life, when he is sentenced on September 16, 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. 

Simpson has pled guilty to drug conspiracy and possession charges, and is scheduled to be sentenced by Judge McAvoy on June 19, 2019. 

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

Pacheco has also pled guilty to an unrelated charge of conspiring to distribute more than 40 grams of fentanyl, in a case investigated by the DEA and prosecuted by the United States Attorney’s Office for the Southern District of New York.  Pacheco faces at least 5 years in prison in that case as well. 

ALBANY, NEW YORK – Niles O’Neil, age 28, of Plattsburgh, New York, pled guilty yesterday to possession of crack cocaine with intent to distribute.

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

As part of his plea, O’Neil admitted that he possessed approximately 40 grams of crack cocaine that he was intending to distribute on April 3, 2018. 

O’Neil faces at least 5 years and up to 40 years in prison when he is sentenced by Chief United States District Judge Glenn T. Suddaby on September 18, 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 and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.

ALBANY, NEW YORK – Cammron Robinson, age 24, of New Paltz, New York, was sentenced yesterday to 30 years in prison for sexual exploiting four children.

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 M. Corlett.

As part of his guilty plea, Robinson admitted that he convinced four children to engage in sexually explicit conduct, and produced videos and images capturing that conduct over the course of three years.

Specifically, Robinson admitted that from 2015 through 2017, he used the PS4 gaming console, Skype, Zoom and cell phones to chat online with numerous male children.  During the course of these communications, Robinson persuaded, induced, enticed, or coerced boys between the ages of 11 and 13 to masturbate and/or show him their genitalia.  These sexually explicit acts were then recorded or saved by Robinson so he could watch and view them again. 

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

Robinson’s case was investigated by the New York State Police and the FBI.  The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.

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

SYRACUSE, NEW YORK – Chad Swartwood, age 40, of Castle Creek, New York, was arrested today on a federal criminal complaint charging him with attempted sexual exploitation of a child, attempted receipt of child pornography, and possession of child pornography.  The announcement was made by United States Attorney Grant C. Jaquith, Kevin M. Kelly, Special Agent in Charge, United States Homeland Security Investigations (HSI), Buffalo Field Office, and Acting New York State Police Superintendent Keith Corlett.

According to the allegations in the complaint, Swartwood impersonated a teenage female online to try to convince individuals he believed to be teenage boys to send him sexually explicit images of themselves.  He also is alleged to have possessed images of child pornography on his mobile telephone.  The charges in the complaint are merely accusations.  The defendant is presumed innocent unless and until proven guilty.

Swartwood appeared today before United States Magistrate Judge David E. Peebles, who ordered the defendant detained.

If convicted of all counts, Swartwood faces a mandatory minimum of 25 years imprisonment and a maximum term of 110 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release between five years and life, as well as mandatory registration as a sex offender. A defendant’s sentence is imposed by a judge base on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

This case is being investigated by U.S. Homeland Security Investigations (HSI), the New York State Police Computer Crimes Unit, and Investigators from the Broome County (New York) District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian. 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov

ALBANY, NEW YORK – Hector Vinicio Howell-Calvo, age 51, a legal resident of Canada and citizen of Costa Rica, pled guilty today to smuggling three Mexican citizens from Canada to the United States. 

The announcement was made by United States Attorney Grant C. Jaquith and Steven Bronson, United States Customs and Border Protection Port Director for the Champlain Port of Entry.

During his plea, Howell-Calvo admitted to smuggling three men who were Mexican citizens into the United States in exchange for a total of 9,000 Canadian dollars.  Howell-Calvo further admitted that he drove the men from Montreal to the Canadian border just north of Mooers, New York.  Howell-Calvo then dropped off the men, who crossed the international border on foot, and intended to pick them up on the United States side of the border, after Howell-Calvo had entered the United States separately through the Mooers Port of Entry. 

Sentencing is set for September 18, 2019 before Chief United States District Judge Glenn T. Suddaby.  Howell-Calvo faces at least 5 years and up to 15 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

This case was investigated by U.S. Customs and Border Protection and U.S. Border Patrol, and is being prosecuted by Assistant U.S. Attorney Shira C. Hoffman.

ALBANY, NEW YORK – Albert Hessberg III, age 64, an attorney residing in Slingerlands, New York, pled guilty today to stealing at least $2 million in the course of defrauding his former clients and law firm. 

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

Hessberg admitted to a fraudulent scheme spanning more than a decade, and pled guilty to 1 count each of wire fraud, mail fraud and filing a false tax return.   

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

Starting in 2006 and continuing until his termination in 2018, Hessberg defrauded Barclay and law firm clients, by: stealing at least $2,060,803 entrusted to him as fiduciary and trustee for his clients; stealing funds from one client to replenish the account of another client from whom he had previously stolen; billing clients and receiving payments for legal services he did not perform; and stealing payments for legal services that should have been made to Barclay. 

United States Attorney Grant C. Jaquith stated: “Albert Hessberg betrayed his clients, his law firm, his profession, and the courts.  He stole $2 million from his clients by taking advantage of their trust, and when they asked questions about their money, he repeatedly lied to them to hide his theft.   His guilty plea is the first step in holding him accountable for his despicable fraud.  I thank Barclay Damon LLP for reporting this fraud as soon as it was discovered.” 

FBI Special Agent James H. Hendricks stated: “At its most basic level, this is a case about greed and the abuse of trust. Albert Hessberg abused his position and defrauded clients of over two million dollars. His clients trusted him with their life savings and now he must face the consequences of his actions.  The FBI is dedicated to working with our law enforcement partners to investigate these crimes because of their lasting impact on the lives of the victims and our community as a whole.”

As part of his plea, Hessberg also admitted to filing federal tax returns that were false because he did not report, as income, money that he stole as part of his fraudulent scheme.

Hessberg faces up to 20 years in prison, a maximum $250,000 fine, and up to 3 years of post-imprisonment supervised release, when he is sentenced by United States District Judge Mae A. D’Agostino on September 5, 2019.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

In November 2018, following Hessberg’s arrest on a federal criminal complaint, the Appellate Division, Third Department suspended Hessberg from the practice of law.  

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

SYRACUSE, NEW YORK – John G. Stroming, age 60, of Stuyvesant, New York, was found guilty today of sexual exploitation of a child following a 2-day jury trial.

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 M. Corlett.

The evidence at trial showed that Stroming video-recorded himself sexually abusing a 19-month-old child and that he also possessed child pornography involving other children.  At the time of the crimes, Stroming was required to register as a sex offender.  He has sex offense convictions including for rape in the second degree (2011) and promoting an obscene sexual performance by a child (1999). 

Sentencing is set for September 9, 2019 before Senior United States District Judge Norman A. Mordue.  Stroming faces at least 35 years in prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case was investigated by the New York State Police and the FBI, and is being prosecuted by Assistant U.S. Attorneys Katherine Kopita and Shira C. Hoffman.

ALBANY, NEW YORK – Jason M. VanBuren, age 44, of Cobleskill, New York, was sentenced today to serve 180 months in prison for receiving child pornography.

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

At sentencing, Senior United States District Judge Gary L. Sharpe concluded that VanBuren also engaged in a pattern of activity involving the sexual abuse of a female child between the ages of 12 and 15, which Judge Sharpe was permitted to take into account in sentencing the defendant. 

Judge Sharpe also sentenced VanBuren to a life term of supervised release, to begin following his term of imprisonment.  VanBuren will be required to register as a sex offender following his release from prison.

VanBuren pled guilty on January 2, 2019 to an indictment charging two counts of receiving child pornography.

As part of his plea, VanBuren admitted using two smartphones equipped with instant messaging and file-sharing applications to download child pornography via the Internet.  Overall, VanBuren downloaded and retained over 1,000 images and videos depicting child pornography.

This case was investigated by the FBI, the Cobleskill Police Department, and the New York State Police Computer Crimes Unit, and was prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.

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

BINGHAMTON, NEW YORK – Kareem Young, age 40, of Binghamton, was convicted today of filing a fraudulent claim with the Internal Revenue Service, following a 4-day trial.

The announcement was made by United States Attorney Grant C. Jaquith and Jonathan D. Larsen, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), New York Field Division.

Young is scheduled to be sentenced on September 24, 2019 by Senior United States Judge Thomas J. McAvoy, and faces up to 5 years in prison.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

The trial evidence showed that Young filed a 2013 U.S. Individual Tax Return claiming income of $6,125,000 and federal tax withholdings of $6,125,000.  Young’s return also sought a refund of $6,125,000.  Young’s actual income for 2013 was $3,127.36. 

To further his claims, Young fabricated withholdings on a Form 1099 OID claiming false withholding credits from the Broome County District Attorney.  Young’s return was reviewed and the IRS sent Young correspondence telling him to file a corrected return immediately.  Young failed to do so and persisted in his efforts to get a refund of $6,125,000.  The IRS never issued a refund. 

The trial evidence showed that Young learned of this scheme while in state prison, and that the scheme involved falsely claiming credits from the District Attorney’s Office that prosecuted the prisoner.

This case was investigated by IRS-CI, with the assistance of the Inspector General’s Office of the New York State Department of Corrections and Community Supervision.  The case was prosecuted by Assistant United States Attorney Tamara Thomson.

ALBANY, NEW YORK – Thomas E. Ozga, age 30, of East Nassau, New York, was arrested today on a charge of possessing unregistered firearms.

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

According to the complaint, Ozga possessed multiple, unregistered firearm silencers.  The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.

Ozga appeared today before United States Magistrate Judge Christian F. Hummel, who ordered Ozga released with conditions.

If convicted, Ozga faces up to 10 years in prison and a fine of up to $10,000. 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 HSI Office of the Assistant Special Agent in Charge, Albany, and is being prosecuted by Assistant U.S. Attorney Emily C. Powers.

SYRACUSE, NEW YORK – Michael Cozzens, 34, of Syracuse, New York, pled guilty yesterday to conspiring to distribute and possess with intent to distribute more than 500 grams of cocaine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a stolen gun.  The announcement was made by United States Attorney Grant C. Jaquith and Ray Donovan, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division.

As part of his guilty plea, Cozzens admitted that between January 2017 and April 20, 2018, he agreed with others to participate in a drug trafficking conspiracy that distributed cocaine.  The defendant also admitted that he obtained quantities of cocaine from co-conspirators and distributed, or arranged to distribute, cocaine to others.  Cozzens further admitted he possessed a stolen, loaded, .40 caliber Smith and Wesson semiautomatic handgun, in an effort to protect the drugs and drug proceeds he kept in his car and his home.

Sentencing is scheduled for September 19, 2019, at which time the defendant faces a mandatory minimum term of imprisonment of ten (10) years, and a maximum sentence of up to life in prison, a term of post-imprisonment supervised release of at least four (4) years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case was investigated by the United States Drug Enforcement Administration (DEA), and was prosecuted by Assistant U.S. Attorney Sahar L. Amandolare.  

SYRACUSE, NEW YORK – Nathaniel P. Lorenz, age 47, of Holley, New York, was sentenced today to 18 months in prison, and to pay restitution in the amount of $600,000, following his trial conviction last year on wire fraud and mail fraud charges.

The announcement was made by United States Attorney Grant C. Jaquith; Douglas Shoemaker, Special Agent in Charge of the Northeast Regional Office of the United States Department of Transportation, Office of Inspector General (USDOT-OIG); New York State Inspector General Letizia Tagliafierro; and Robert L. Keihm, Chief Investigator for the New York State Department of Transportation (NYSDOT) Investigations Bureau.

Senior United States District Judge Norman A. Mordue also ordered Lorenz to serve a 2-year term of post-imprisonment supervised release.

Lorenz was convicted on all charges – eight counts of wire fraud and one count of mail fraud – following a 7-day trial that ended on November 6, 2018.  The evidence at trial established that Lorenz, a former police officer and sheriff’s deputy, submitted fake invoices to NYSDOT in order to conceal that he was not buying the materials needed to perform bridge maintenance contracts in the Buffalo and Binghamton regions, for which his company was ultimately paid more than $1 million. 

Lorenz’s company, ACME Powerwashing Inc. (ACME) of Holley, contracted with NYSDOT in 2015 and 2016 to clean and seal the road portions of bridges, known as concrete bridge decks.  The work involved cleaning the bridge decks and then sealing them with a chemical that makes the concrete more resistant to penetration by water, chlorides and waterborne contaminants, which might cause potholes.  The Federal Highway Administration, part of the United States Department of Transportation, provided most of the money for these contracts. 

Each of these contracts required ACME to purchase a certain amount of sealing chemical, based on how many square feet of concrete bridge deck was sealed.  On three contracts in 2015 and 2016, Lorenz submitted fraudulent invoices to NYSDOT in order to conceal that he was not buying the amount of the sealing chemical required by the contracts.  Lorenz falsely claimed that he was buying sealing chemicals from S.E. Brett, Inc., another company that he owned that does not sell anything. 

The evidence at trial established that ACME, which had been a NYSDOT contractor since 2010, was not buying the appropriate amount of sealing chemicals since at least 2012 and had saved at least $500,000 in avoided material costs.

This case was investigated by USDOT-OIG, the Office of the New York State Inspector General, and NYSDOT’s Investigations Bureau, and was prosecuted by Assistant U.S. Attorney Michael Barnett.

SYRACUSE, NEW YORK – Stephen J. Taubert, age 61, of Syracuse, was sentenced today by Chief United States District Court Judge Glenn T. Suddaby to serve 46 months in prison, to be followed by a three-year term of supervised release, and to pay a fine of $1,000, following Taubert’s conviction after trial on charges that he threatened to kill Congresswoman Maxine Waters (D-CA 43rd District) and her staff, and separately threatened to kill former President Barack Obama.  The sentence was announced by United States Attorney Grant C. Jaquith, Chief Matthew R. Verderosa, United States Capitol Police, and Special Agent in Charge Lewis Robinson, United States Secret Service, Buffalo, New York Field Office.

United States Attorney Jaquith said, “The jury unanimously found that Taubert targeted former President Obama and Representative Waters because of their race.  Racist threats to kill present and former public officials are not protected free speech, but serious crimes against both the victims and the rule of law that is the cornerstone of our republic.   As the trial verdict and sentence in this case illustrate, those who spew such vile, violent hatred will be held accountable.”

In March 2019, a federal jury found Taubert guilty of making several telephone calls to the Washington D.C. office of then-Minnesota Senator Al Franken in June 2017. In two of those calls, Taubert stated that he was planning to go to Washington D.C. the next day to “hang” former President Obama at his home and to kill him. In making these threats, Taubert repeatedly used vile racial slurs directed toward former President Obama.

The jury also convicted Taubert of threatening Congresswoman Maxine Waters on July 20, 2018. Taubert called the Los Angeles, California district office of Congresswoman Waters and stated that he would be at every event the Congresswoman attended and that he would kill her and every member of her staff. In making these threats, Taubert directed vile racial slurs toward Congresswoman Waters and her staff.

The evidence at trial included a recorded law enforcement interview of Taubert, during which he admitted that he called Congresswoman Waters’s office to “terrorize” her in retaliation for public statements she had previously made.

In addition to returning guilty verdicts on all three counts charged in the indictment, the trial jury made specific findings that Taubert selected his victims because of their actual or perceived race, color, or ethnicity, which provided for an enhancement under the U.S. Sentencing Guidelines based upon hate-crime motivation.

This case was investigated by the United States Capitol Police, Threat Assessment Section, and the United States Secret Service, with assistance from the Syracuse Police Department, and was prosecuted by Assistant U.S. Attorneys Michael D. Gadarian and Michael F. Perry.

ALBANY, NEW YORK – Melvin Nelson, age 39, of Troy, New York, was arraigned on Friday on an indictment charging him with possessing and intending to distribute crack cocaine.

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

According to the indictment, on June 26, 2018, Nelson possessed and intended to distribute more than 28 grams of crack cocaine.  The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.

On Friday, April 26, Nelson appeared before United States Magistrate Judge Christian F. Hummel, who set conditions for Nelson’s release.

If convicted, Nelson faces a minimum of 5 years in prison, a term of post-release supervision of at least 4 years, 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 FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Troy Police Department.  This case is being prosecuted by Assistant U.S. Attorneys Ashlyn Miranda and Alicia Suarez.

ALBANY, NEW YORK – Michelle M. Syler, age 50, of Albany, was sentenced today to 120 months in prison after admitting to downloading 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).

United States District Judge Mae A. D’Agostino also imposed a life term of supervised release, to begin after Syler is released from prison. 

This case was investigated by the FBI and its Child Exploitation Task Force, which includes investigators from the Colonie Police Department.  The case was prosecuted by Assistant U.S. Attorney Michael Barnett.

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 – Dyshawn Fisher, age 24, of Troy, New York, was arraigned Monday on a charge of unlawful possession of a firearm as a felon.

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

The indictment alleges that on June 26, 2018, Fisher, a felon, was in possession of a .38 caliber revolver. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.

On Monday, Fisher appeared before United States Magistrate Judge Christian F. Hummel, who ordered him detained pending further proceedings.

If convicted, Fisher faces up to 10 years in prison, a term of post-release supervision of up to 3 years, and a fine of up to $250,000.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

This case is being investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Troy Police Department.  This case is being prosecuted by Assistant U.S. Attorneys Ashlyn Miranda and Alicia Suarez.

SYRACUSE, NEW YORK – Charles H. Riel, age 60, of Clay, New York, pled guilty today to mail fraud and money laundering charges for his role in a fraudulent investment scheme involving hundreds of thousands of dollars, announced United States Attorney Grant C. Jaquith, James Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Jonathan D. Larsen, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), New York Field Division.

In his plea agreement, Riel admitted that he was the founder, principal member, and officer of REinvest, LLC, a New York limited liability company based in Clay.  From June 2010, through May 2014, Riel provided false, fraudulent, and misleading information about REinvest, LLC, including historical rates of return on supposed REinvest LLC investments and fictitious testimonials touting the financial successes of non-existent REinvest, LLC investors. As part of his guilty plea, Riel further admitted that he collected approximately $285,000 from a total of five investors, all of whom had received false and fraudulent information regarding the nature of Riel’s business and how their funds would be utilized.  Riel used a substantial portion of the funds received from investors to pay for his own personal living expenses rather than investing the funds in ways that could result in a legitimate return on the investments.  He also used money from subsequent investors to pay back a portion of the investment of an earlier investor.

As part of his plea agreement, the defendant agreed to pay restitution to his victims, and to forfeit $197,500.00 to the United States.

Sentencing is scheduled for September 5, 2019, before the Senior District Judge Frederick J. Scullin, Jr. in Syracuse. For his conviction for mail fraud, Riel faces up to 20 years in prison, a maximum fine of $250,000, and up to 3 years of post-imprisonment supervised release.  For his conviction for money laundering, he faces up to 10 years in prison, a maximum fine of $250,000, and up to 3 years of post-imprisonment supervised release.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

This case was investigated by IRS-CI and the FBI, and is being prosecuted by Assistant U.S. Attorneys Nicolas Commandeur and Michael D. Gadarian.

SYRACUSE, NEW YORK – Matthew Lagoe, 34, of Jamesville, New York, was sentenced today to serve 24 months in prison, to be flowed by a three-year term of supervised release for attempting to possess with intent to distribute the drug MDMA, also known by its street name ecstasy, announced United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of U.S. Homeland Security Investigations (HSI).

As part of his guilty plea in federal court, Lagoe admitted that in March 2017 he went to a U.S. Post Office in Syracuse, New York, attempting to retrieve a package that contained approximately 1000 MDMA tablets that he previously ordered from Germany, intending to distribute them.  Unknown to the defendant, the actual pills had been previously seized by law enforcement and replaced with a sham substance. Lagoe was then arrested and charged in federal court. 

This case was investigated by U.S. Homeland Security Investigations (HSI) and was prosecuted by Assistant U.S. Attorneys Sahar Amandolare and Michael D. Gadarian.

ALBANY, NEW YORK – Mark P. Messare, age 42, of Amsterdam, New York, pled guilty today to possessing an unregistered, short-barreled rifle.

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

Messare admitted that on September 8, 2018, he possessed a Glock 9 millimeter handgun that was inserted into a Micro Roni Pistol Carbine Conversion Kit, creating a short-barreled rifle with a barrel length of approximately 4 inches.   Messare also admitted that he knew that the Micro Roni Pistol Carbine Conversion Kit was designed to convert a handgun into a short-barreled rifle, as the Conversion Kit included a folding shoulder stock that allows a handgun to be fired from the shoulder.  Messare never registered this firearm in the National Firearms Registration and Transfer Record, as required by federal law. 

Messare, who is in custody, faces up to 10 years in prison, as well as a $10,000 fine and up to 3 years of post-imprisonment supervised release, when he is sentenced on August 14, 2019 by Senior United States District Judge Lawrence E. Kahn.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case was investigated by the ATF and is being prosecuted by Assistant U.S. Attorney Michael Barnett.

ALBANY, NEW YORK – Daniel J. Fillerup, age 33, of Albany, was sentenced today to 120 months in prison for selling fentanyl that caused a woman’s death.

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 on December 20, 2018, Fillerup admitted that on September 29, 2016, he arranged with Kate Centofanti, via text message and phone call, to supply her with two bags of heroin.  Fillerup met with Centofanti in Schenectady, New York, where Centofanti gave Fillerup $36.  He acquired bags of what he believed to contain heroin, and gave Centofanti two of the bags.  Centofanti ingested the substance Fillerup gave her, which was fentanyl.  The ingestion of the fentanyl caused Centofanti’s death due to fentanyl intoxication.

Senior United States District Judge Lawrence E. Kahn also imposed a 3-year term of supervised release, which will start after Fillerup is released from prison.

This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including investigators from the Schenectady County District Attorney’s Office.  The case was prosecuted by Assistant U.S. Attorney Douglas Collyer.

SYRACUSE, NEW YORK – John Dauenhauer, 58, of Liverpool, New York, was sentenced today to serve 20 years in prison for transporting and possessing child pornography, announced United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of U.S. Homeland Security Investigations (HSI).

As part of his guilty plea in federal court, Dauenhauer admitted that in November of 2017 he used a computer connected to the internet to upload to an IMGBox account nine graphic image files depicting one or more minors engaged in sexually explicit conduct. 

Dauenhauer further admitted that in addition to the child pornography files he uploaded to the internet in November of 2017, that in June of 2018 he knowingly possessed on a Sandisk thumb drive approximately 80 videos that depict child pornography. 

Senior United States District Judge Hon. Thomas J. McAvoy also imposed a lifetime term of supervised release, which will start after Dauenhauer is released from prison, ordered the defendant to pay $21,000 in restitution to victims, as well as a $200 special assessment. As a result of his conviction, Dauenhauer will be required to register as a sex offender upon his release from prison.

Dauenhauer was previously convicted of a child pornography charge in Onondaga County (New York) Court on March 26, 2010, when he pled guilty to Possessing A Sexual Performance By A Child Less Than 16 Years of Age, a Class E Felony, and was sentenced to a 10-year term of probation.

Dauenhauer’s current federal case was investigated by U.S. Homeland Security Investigations (HSI) and the New York State Police. The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.

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

WASHINGTON – An indictment unsealed today charges Xiaoqing Zheng, age 56, of Niskayuna, New York, and Zhaoxi Zhang, age 47, of Liaoning Province, China, with economic espionage and conspiring to steal General Electric’s (GE’s) trade secrets surrounding turbine technologies, knowing and intending that those stolen trade secrets would be used to benefit the People’s Republic of China.  Assistant Attorney General for National Security John C. Demers, U.S. Attorney Grant C. Jaquith, FBI Assistant Director John Brown of the Counterintelligence Division, and Special Agent in Charge James N. Hendricks of the FBI’s Albany Field Office made the announcement.

According to the 14-count indictment (copy attached), Zheng, while employed at GE Power & Water in Schenectady, New York, as an engineer specializing in sealing technology, exploited his access to GE’s files by stealing multiple electronic files, including proprietary files involving design models, engineering drawings, configuration files, and material specifications having to do with various components and testing systems associated with GE gas and steam turbines.  Zheng e-mailed and transferred many of the stolen GE files to his business partner, Chinese businessman Zhaoxi Zhang, who was located in China.  Zheng and Zhang used the stolen GE trade secrets to advance their own business interests in two Chinese companies, Liaoning Tianyi Aviation Technology Co., Ltd. (LTAT) and Nanjing Tianyi Avi Tech Co. Ltd. (NTAT), companies that research, develop, and manufacture parts for turbines.

The indictment also alleges that Zheng and Zhang conspired to commit economic espionage, as the thefts of GE’s trade secrets surrounding various turbine technologies were done knowing and intending that the thefts would benefit the People’s Republic of China and one or more foreign instrumentalities, including LTAT, NTAT, Shenyang Aerospace University, Shenyang Aeroengine Research Institute, and Huaihai Institute of Technology.  The defendants, through LTAT and NTAT, received financial and other support from the Chinese government and coordinated with Chinese government officials to enter into research agreements with Chinese state-owned institutions to develop turbine technologies.

“The indictment alleges a textbook example of the Chinese government’s strategy to rob American companies of their intellectual property and to replicate their products in Chinese factories, enabling Chinese companies to replace the American company first in the Chinese market and later worldwide,” said Assistant Attorney General Demers.  “We will not stand idly by while the world’s second-largest economy engages in state-sponsored theft.  As part of the Attorney General’s China Initiative, we will partner with the private sector to hold responsible those who violate our laws, and we urge China’s leaders to join responsible nations and to act with honesty and integrity when competing in the global marketplace.”

“As alleged, the thefts of trade secrets to benefit the People’s Republic of China are serious crimes against the victimized company and our country,” said United States Attorney Jaquith. “Both fair competition and incentivized innovation require that American companies be able to rely on the secrecy of technological advances forged through their talent and tenacity.  When technology is taken through treachery, we will continue to work with the National Security Division and the FBI to prosecute the perpetrators.”

“American businesses spend many hours and large amounts of money developing unique technology.  When such technology is stolen it can be devastating to U.S. businesses and can result in American workers losing jobs,” said FBI Assistant Director Brown.  “China continues to support behavior that violates the rule of law. This case demonstrates the FBI will continue to pursue China's efforts to steal American technology.”

“Economic espionage and the theft of trade secrets have a profound impact on our companies and communities,” said FBI Special Agent in Charge Hendricks.  “We view this as a grave threat to our economic and national security and the FBI will work tirelessly to prevent the loss of American technology and American jobs.”

Zheng was arraigned today in Albany before United States Magistrate Judge Christian F. Hummel, and released with conditions pending a trial before United States District Judge Mae A. D’Agostino. 

The economic espionage counts (Counts One, Three, Four, Seven, Eight and Eleven) carry a maximum sentence of 15 years in prison, a fine of up to $5,000,000, and a term of supervised release of up to three years.  The trade secrets theft counts (Counts Two, Five, Six, Nine, Ten, Twelve and Thirteen) carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years.  Count Fourteen of the indictment, which charges Zheng with making false statements to the FBI during a voluntary interview, carries a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years.      

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

This case is being investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Rick Belliss, and National Security Division Trial Attorneys Jason McCullough and Matthew Chang.

An indictment unsealed today charges Xiaoqing Zheng, 56, of Niskayuna, New York, and Zhaoxi Zhang, 47, of Liaoning Province, China, with economic espionage and conspiring to steal General Electric’s (GE’s) trade secrets surrounding turbine technologies, knowing and intending that those stolen trade secrets would be used to benefit the People’s Republic of China.  Assistant Attorney General for National Security John C. Demers, U.S. Attorney Grant C. Jaquith for the Northern District of New York, Assistant Director John Brown of the FBI’s Counterintelligence Division and Special Agent in Charge James N. Hendricks of the FBI’s Albany Field Office made the announcement.

According to the 14-count indictment, Zheng, while employed at GE Power & Water in Schenectady, New York as an engineer specializing in sealing technology, exploited his access to GE’s files by stealing multiple electronic files, including proprietary files involving design models, engineering drawings, configuration files, and material specifications having to do with various components and testing systems associated with GE gas and steam turbines.  Zheng e-mailed and transferred many of the stolen GE files to his business partner, Chinese businessman Zhaoxi Zhang, who was located in China.  Zheng and Zhang used the stolen GE trade secrets to advance their own business interests in two Chinese companies - Liaoning Tianyi Aviation Technology Co., Ltd. (LTAT) and Nanjing Tianyi Avi Tech Co. Ltd. (NTAT), companies which research, develop, and manufacture parts for turbines.

The indictment also alleges that Zheng and Zhang conspired to commit economic espionage, as the thefts of GE’s trade secrets surrounding various turbine technologies were done knowing and intending that the thefts would benefit the People’s Republic of China and one or more foreign instrumentalities, including LTAT, NTAT, Shenyang Aerospace University, Shenyang Aeroengine Research Institute, and Huaihai Institute of Technology.  The defendants, through LTAT and NTAT, received financial and other support from the Chinese government and coordinated with Chinese government officials to enter into research agreements with Chinese state-owned institutions to develop turbine technologies.

“The indictment alleges a textbook example of the Chinese government’s strategy to rob American companies of their intellectual property and to replicate their products in Chinese factories, enabling Chinese companies to replace the American company first in the Chinese market and later worldwide,” said Assistant Attorney General Demers.  “We will not stand idly by while the world’s second-largest economy engages in state-sponsored theft.  As part of the Attorney General’s China Initiative, we will partner with the private sector to hold responsible those who violate our laws, and we urge China’s leaders to join responsible nations and to act with honesty and integrity when competing in the global marketplace.”

“As alleged, the thefts of trade secrets to benefit the People’s Republic of China are serious crimes against the victimized company and our country,” said U.S. Attorney Jaquith. “Both fair competition and incentivized innovation require that American companies be able to rely on the secrecy of technological advances forged through their talent and tenacity.  When technology is taken through treachery, we will continue to work with the National Security Division and the FBI to prosecute the perpetrators.”

“American businesses spend many hours and large amounts of money developing unique technology.  When such technology is stolen it can be devastating to U.S. businesses and can result in American workers losing jobs,” said FBI Assistant Director Brown.  “China continues to support behavior that violates the rule of law.  This case demonstrates the FBI will continue to pursue China's efforts to steal American technology.”

“Economic espionage and the theft of trade secrets have a profound impact on our companies and communities,” said FBI Special Agent in Charge Hendricks.  “We view this as a grave threat to our economic and national security and the FBI will work tirelessly to prevent the loss of American technology and American jobs.”

Zheng was arraigned today in Albany, New York, before United States Magistrate Judge Christian F. Hummel, and released with conditions pending a trial before United States District Judge Mae A. D’Agostino. 

The economic espionage counts (Counts One, Three, Four, Seven, Eight and Eleven) carry a maximum sentence of 15 years in prison, a fine of up to $5,000,000, and a term of supervised release of up to three years.  The trade secrets theft counts (Counts Two, Five, Six, Nine, Ten, Twelve and Thirteen) carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years.  Count Fourteen of the indictment, which charges Zheng with making false statements to the FBI during a voluntary interview, carries a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years.       

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

This case is being investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Rick Belliss, and National Security Division Trial Attorneys Jason McCullough and Matthew Chang.

ALBANY, NEW YORK - Marvin Danilo Aquino a/k/a Marvin Padilla, age 23, of Amsterdam, New York, pled guilty on April 19 to making a false statement in a passport application and aggravated identity theft.

The announcement was made by United States Attorney Grant C. Jaquith and Timothy Dumas, Special Agent in Charge of the New York Field Office of the United States Department of State’s Diplomatic Security Service.

As part of his plea, Aquino admitted that in October 2017, he visited a U.S. Post Office in Gloversville, New York, and filled out an application for a U.S. passport, which he then submitted with a picture of himself.  On his application, however, Aquino listed the name, social security number, birthdate, and other identifying information of another person who had not authorized Aquino to file the application.  In support of the application, Aquino also submitted numerous documents containing the same third party’s identifying information.    

Aquino faces at least 2 years and up to 12 years in prison, a term of post-imprisonment supervised release of up to 3 years, and a fine of up to $250,000, when United States District Judge Mae A. D’Agostino sentences him on August 12.  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. Department of State’s Diplomatic Security Service with assistance from the Social Security Administration Office of the Inspector General.  It is being prosecuted by Assistant U.S. Attorneys Megan Kinsella Kistler and Joshua R. Rosenthal.

SYRACUSE, NEW YORK – Lawrence C. Berry, age 25, and Brittany E. Berry, age 24, of Cortland, New York, were charged today with conspiring to sexually exploit a child.

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. 

A federal criminal complaint charges that in or about August and September 2018, the defendants conspired together to sexually exploit a child who was born in 2015 for the purpose of producing visual depictions of that abuse.  The charges in the complaint are merely accusations.  The defendants are presumed innocent unless and until proven guilty.

If convicted of the charge alleged in the complaint, each defendant faces a mandatory minimum prison sentence of 15 years, a maximum sentence of 30 years, a fin 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.

The defendants appeared today before United States Magistrate Judge Andrew T. Baxter, who ordered that they be detained pending further proceedings. 

This case is being investigated by the FBI and the City of Cortland Police Department.  It is being prosecuted by Assistant United States Attorney Michael D. Gadarian as part of Project Safe Childhood.  Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). 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 – Vishwanath Akuthota, age 27, of Albany, pled guilty today to causing damage to computers owned by The College of St. Rose.

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

Akuthota admitted that on February 14, 2019, he inserted a “USB Killer” device into 66 computers, as well as numerous computer monitors and computer-enhanced podiums, owned by the college in Albany.  The “USB Killer” device, when inserted into a computer’s USB port, sends a command causing the computer’s on-board capacitors to rapidly charge and then discharge repeatedly, thereby overloading and physically destroying the computer’s USB port and electrical system.

Akuthota admitted that he intentionally destroyed the computers, and recorded himself doing so using his iPhone, including making statements such as “I’m going to kill this guy” before inserting the USB Killer into a computer’s USB port.  Akuthota also admitted that his actions caused $58,471 in damage, and has agreed to pay restitution in that amount to the College.

Akuthota is a citizen of India, residing in the United States on a student visa.  He has been in custody since he was arrested in North Carolina on February 22, 2019.

When he is sentenced on August 12, 2019 by United States District Judge Mae A. D’Agostino, Akuthota 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.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

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

ALBANY, NEW YORK – Stephen Jacques-Scott, age 33, of New York City, pled guilty yesterday to trafficking crack cocaine and fentanyl from New York City to Plattsburgh.

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 Plattsburgh City Police Chief Levi J. Ritter.

Jacques-Scott pled guilty to two counts of distribution of a controlled substance and one count of conspiracy to possess with intent to distribute and to distribute a controlled substance.

Jacques-Scott admitted that on May 11, 2017, he distributed approximately 33.5 grams of crack cocaine, and that on May 15, 2017, he distributed approximately 27.9 grams of crack cocaine and approximately 14.5 grams of fentanyl ,in Plattsburgh.  On May 18, 2017, Jacques-Scott was pulled over while travelling to Plattsburgh and police found approximately 27.9 grams of crack cocaine hidden on him that he intended to distribute in Plattsburgh.  Jacques-Scott has been in custody since his arrest on May 18, 2017.

As a result of his conviction, Jacques-Scott faces at least 10 years and up to life in prison, when he is sentenced by Senior United States District Judge Frederick J. Scullin, Jr. on August 14, 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 and the Plattsburgh City Police Department, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.

SYRACUSE, NEW YORK - United States Attorney Grant C. Jaquith and John Devito, Special Agent in Charge of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, announced today that United States Attorney General William Barr has authorized and directed the United States Attorney’s Office in Syracuse to pursue the death penalty against William D. Wood, Jr.

Wood, 33, of Syracuse, New York, was indicted by a federal grand jury February 14, 2019 for crimes resulting from the September 15, 2018 armed robbery of Chili’s Bar and Grill in Dewitt, and the murders of two employees committed during the course of that robbery.  While charges contained in that indictment carry a maximum sentence of death, the death penalty may only be pursued if authorized by the Attorney General.  Following Attorney General Barr’s authorization today, a Notice of Intent to Pursue the Death Penalty was filed by the United States Attorney’s Office.   

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

The case against Wood is being investigated by United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Town of Dewitt Police Department, the New York State Police, and is being prosecuted by Assistant U.S. Attorney Lisa Fletcher.

SYRACUSE, NEW YORK – Christopher M. Perry, age 35, and Sarah R. Gates, age 38, of Cortland, New York, were charged today with sexual exploitation of a child, announced United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).

A federal criminal complaint filed today charges that beginning in 2017, Perry and Gates engaged in sexually explicit conduct with a child who was born in 2014, for the purpose of producing visual depictions of that conduct.  The charge filed against Perry and Gates carries a mandatory minimum sentence of 15 years, a maximum sentence of up to 30 years in prison, a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and 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.

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

The defendants appeared today before United States Magistrate Judge Andrew T. Baxter in Syracuse, New York, who ordered that they be detained in federal custody pending resolution of their cases. 

The investigation is ongoing, and the City of Cortland Police Department requests anyone who may have information to call 607-758-8303.

The U.S. Department of Homeland Security, Homeland Security Investigations (HSI), the City of Cortland Police Department, and the New York State Police-Computer Crimes Unit are conducting the investigation.  The case is being prosecuted by Assistant U.S. Attorney Sahar L. Amandolare, 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.

 

ALBANY, NEW YORK – Lance Green, age 37, of Schenectady, New York, was sentenced today to 60 months in prison, to be followed by 4 years of supervised release, for conspiring to distribute crack cocaine. 

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

As part of his plea on November 5, 2018, Green admitted that between December 2015 and May 2016, he was a member of a drug trafficking organization that conspired to distribute at least 28 grams of crack cocaine in Schenectady.  Green has been in custody since his arrest in May 2016. 

A co-conspirator, Ray A. Perkins, age 31, of Schenectady, pled guilty and was sentenced to 60 months in prison on July 11, 2017.

This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Schenectady Police Department and Schenectady County District Attorney’s Office.

This case was prosecuted by Assistant U.S. Attorneys Megan Kistler and Michael Barnett.

ALBANY, NEW YORK – Alphonso L. Howard, Jr., age 28, 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 Acting Superintendent Keith M. Corlett.

Howard pled guilty to one count of conspiring to commit bank fraud and one count of aggravated identity theft. 

Howard admitted that he and co-conspirators 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.

Howard, who has been in custody since September 26, 2018, will be sentenced on August 12, 2019 by Senior United States District Judge Gary L. Sharpe.  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.  Howard has also agreed to forfeit $16,660 in cash he possessed at the time of his arrest, and to entry of a money judgment in the amount of $164,077.70.

This case is being 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 Saratoga and Warren Counties, the Glens Falls Police Department, the Burlington Police Department (Vt.), Vermont State Police, and the Stowe Police Department (Vt.).

ALBANY, NEW YORK – Sean R. Fabian, age 41, of Plattsburgh, New York, was convicted on Friday, following a 4-day jury trial, of conspiring to distribute cocaine.

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 Plattsburgh City Police Chief Levi J. Ritter.

The trial evidence showed that on February 11, 2018, Fabian conspired with Hannah Dyer to traffic 300 grams of cocaine from New York City to Plattsburgh for distribution.  On February 13, 2018, the pair met in Albany where Fabian provided the 300 grams of cocaine to Dyer, who was to take the cocaine to Plattsburgh.  The New York State Police stopped Dyer’s vehicle in Clinton County and found the drugs in a container, submerged in a fish stew.

As a result of his conviction, Fabian faces up to 30 years in prison and a fine of up to $2,000,000, when he is sentenced by United States District Judge Mae A. D ’Agostino on July 31, 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.   Fabian has been in custody since his arrest on June 21, 2018.

This case was investigated by the DEA and the Plattsburgh City Police Department, and is being prosecuted by Assistant U.S. Attorneys Douglas Collyer and Troy Anderson.

UTICA, NEW YORK – Mohan S. Saini, age 63, of Arlington, Massachusetts, and Melvin Claudio, age 22, of Lawrence, Massachusetts, were sentenced yesterday for transporting an illegal alien within the United States.  Saini was sentenced to time served (3 days in jail), followed by 3 years of supervised release, with 100 hours of community service, and a fine of $50,000.  Claudio was sentenced to time served (4 days in jail), followed by 3 years of supervised release, and 50 hours of community service.  

The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.

In February 2018, Saini hired Claudio to help him pick up an illegal alien near the border and transport him to Massachusetts.  On February 18, 2018, Saini and Claudio drove in separate cars to the Akwesasne Mohawk Indian Reservation near Hogansburg, New York.  While there, Claudio waited in a public parking lot and Saini drove to a remote location where he picked up Anil Singh, an illegal alien from India who had just crossed the border.  Saini transported Singh to where Claudio was waiting, and Singh transferred to Claudio’s car.  After Singh was successfully transferred to Claudio’s car, they all left the reservation driving east toward Massachusetts. 

A Border Patrol Agent had observed the transfer of Singh between the cars on the reservation.  After Saini and Claudio had left the reservation, they were each stopped and arrested by Border Patrol.     

Anil Singh, age 28, and a citizen of India, was convicted of the misdemeanor offense of entry without inspection on February 26, 2018, and sentenced to time served (8 days in jail).    

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

ALBANY, NEW YORK – Juan Leobardo Martinez Reyes, age 20, and a citizen of Mexico, was sentenced today to time served (6.5 months), for the offense of 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).

Martinez-Reyes entered a guilty plea on February 27, 2019.  Martinez-Reyes admitted as part of his guilty plea that he is a citizen of Mexico, and that he was removed from the United States to Mexico on February 7, 2018 and again on February 9, 2018.  On each occasion, Martinez-Reyes had been arrested by Border Patrol in Arizona after he entered the United States without inspection from Mexico.   On September 10, 2018, he was arrested by an ICE-ERO Officer in Latham, New York.  A fingerprint check of Martinez-Reyes resulted in the discovery of the prior removals.  Martinez-Reyes admitted that he returned to the United States without permission following the 2018 removals.  

Following the sentencing, Martinez-Reyes was remanded to the custody of the Department of Homeland Security, for removal from the United States.    

This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.

ALBANY, NEW YORK – Fernando Hernandez-Cruz, age 36, and a citizen of Mexico, pled guilty today to illegal re-entry into 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.

As part of his guilty plea, Hernandez-Cruz admitted that he is an alien from Mexico, and that he was removed from the United States to Mexico at Hidalgo, Texas, on March 11, 2016.  On February 24, 2019, Hernandez Cruz was encountered as part of a group of five individuals arrested by a Border Patrol Agent just south of the international border between the United States and Canada, after they entered the United States without inspection approximately four miles east of the Fort Covington Port of Entry.  A fingerprint check of Hernandez Cruz resulted in the discovery of the 2016 removal.  Hernandez Cruz admitted that he returned to the United States without permission.   

As a result of his conviction, Hernandez-Cruz faces up to 2 years in prison and a fine of up to $250,000 when he is sentenced by Chief United States District Judge Glenn T. Suddaby on May 6, 2019.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.      

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

ALBANY, NEW YORK – Ricardo Garcia De Jesus, age 29, and a citizen of Mexico, pled guilty today to immigration fraud.

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, Garcia De Jesus admitted that he possessed a counterfeit alien registration receipt card (green card) in Saratoga Springs, New York.  Garcia De Jesus also admitted that he was a citizen of Mexico, and that he was in the United States unlawfully.    

As a result of his conviction, Garcia De Jesus faces up to 10 years in prison and a fine of up to $250,000 when he is sentenced by Senior United States District Judge Lawrence E. Kahn on August 1, 2019.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.

ALBANY, NEW YORK – Fidel Herrera-Cruz, age 39, a citizen of Mexico, pled guilty today to illegal re-entry into the United States.

The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Acting Chief Patrol Agent, United States Border Patrol, Swanton Sector.

Herrera-Cruz admitted as part of his guilty plea 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, he was encountered and arrested by a Border Patrol Agent as part of a group of five individuals 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, thereby avoiding immigration and customs inspection.  A fingerprint check of Herrera-Cruz resulted in the discovery of the prior removals.  Herrera-Cruz admitted that he returned to the United States without permission following the 2018 removals.   

As a result of his conviction, Herrera-Cruz faces up to 2 years in prison and a fine of up to $250,000 when he is sentenced by Chief United States District Judge Glenn T. Suddaby on August 7, 2019.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.    

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

ALBANY, NEW YORK – Six men were arrested and appeared in court today on charges of distributing drugs in the city of Schenectady, New York.  A seventh person was already in custody and will be arraigned at a later date. 

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

The following defendants were charged by indictment in unrelated cases:

Name

Age

Residence

Charge(s)

Robert Atkins

Rhamel Pate

 

36

37

Schenectady

Schenectady

Conspiracy to distribute, and distribution of, crack cocaine

Lasun Blount

 

28

Albany

Distribution of crack cocaine

 

Darryl Carr

 

39

Schenectady

Distribution of crack cocaine;

Possession of a firearm by a felon

Raymel Diaz

 

24

Schenectady

Distribution of crack cocaine

 

Darryl Flannagan

 

29

Schenectady

Distribution of heroin

Additionally, a seventh person, Trevon Brunson, age 21, of Schenectady, is in state custody and will be arraigned at a later date on charges of distributing heroin. 

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

Six defendants appeared today before United States Magistrate Judge Daniel J. Stewart, and are scheduled for detention hearings later in the week.

These cases were investigated by the FBI and its Capital District Safe Streets Gang Task Force, with assistance from New York State Police-Troop G, the Schenectady Police Department, the Schenectady County Sheriff’s Office, the Schenectady County District Attorney’s Office, the Internal Revenue Service, the Albany County Sheriff’s Office, the Albany County District Attorney’s Office, the Albany Police Department, the NYS Department of Corrections and Community Supervision, Office of Special Investigations, the Warren County Sheriff’s Office, and the Troy Police Department.

The firearm charge against Carr was investigated by the Schenectady County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).

These cases are being prosecuted by Assistant U.S. Attorneys Robert A. Sharpe, Michael Barnett, and Emily Powers. 

ALBANY, NEW YORK –Alvin Cole, age 43, a Liberian citizen residing in Philadelphia, Pennsylvania, was convicted on March 28, following a 4-day jury trial, of making a false statement and making a false claim of United States citizenship.

The announcement was made by United States Attorney Grant C. Jaquith and Steven Bronson, Area Port Director, United States Customs and Border Protection (CBP).

Trial evidence showed that on October 16, 2018, Cole was denied admission into Canada at the Saint-Bernard-de-LaColle, Quebec Port of Entry.  Due to the Canadian refusal, Cole was required to report to the Champlain Port of Entry in New York.  During immigration inspection at the Champlain Port of Entry, Cole stated that he was a United States citizen born in Philadelphia.  But Cole is a citizen of Liberia, born in Liberia, who entered the United States in 1991 on a tourist visa and never left.  Cole has resided in the United States since 1991 and he is the subject of an unexecuted removal order from June 2013.

As a result of his conviction, Cole faces up to 5 years in prison and a fine of up to $250,000, when he is sentenced by United States District Judge Mae A. D ’Agostino on July 25, 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.   Cole has been in custody since his arrest on October 16, 2018.      

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

SYRACUSE, NEW YORK – Jayesh Patel, age 49, of Liverpool, New York, pled guilty to engaging in a monetary transaction in criminally derived property, and to maintaining a drug-involved premises, announced United States Attorney Grant C. Jaquith and Jonathan D. Larsen, Acting Special Agent in Charge Internal Revenue Service Criminal Investigation (IRS-CI), New York Field Office. 

Patel, co-owner of the Munchies convenience store in Solvay, New York, and the Econo Lodge Inn & Suites, located near the Syracuse airport, admitted that he sold crack cocaine on a nearly daily basis to drug customers inside Munchies and the Econo Lodge. Patel further admitted to laundering drug proceeds through his business account at Solvay Bank. 

Law enforcement officers executed search warrants at Munchies, the Econo Lodge, and Patel’s residence and vehicle, seizing funds held in bank accounts and in U.S. currency.  In all, these seizures totaled over $1 million, most of which were the proceeds from drug trafficking.   

Sentencing is scheduled for July 24, 2019, at which time Patel faces a maximum sentence of up to 20 years in prison, a fine of up to $500,000, 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.

This case was investigated by the Internal Revenue Service-Criminal Investigation (IRS-CI), the Syracuse Police Department-Special Investigation Division, the United States Department of Agriculture-Office of Inspector General, and the Onondaga County District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorneys Steven Clymer, Tamara Thomson, and Michael Perry. 

ALBANY, NEW YORK – Kevin R. Palmer, age 37, a Jamaican citizen residing in Suwanee, Georgia, pled guilty today to stealing more than $320,000 from an elderly Albany couple in a mail-based prize scam.

The announcement was made by United States Attorney Grant C. Jaquith and Joseph Cronin, Inspector in Charge, United States Postal Inspection Service (USPIS), Boston Division.

Palmer pled guilty to 1 count of mail fraud conspiracy and 12 counts of mail fraud.  He admitted that in 2017, R.H. and D.H., an elderly couple residing in Albany County, were contacted through the mail and by telephone, and were told that they needed to send money in order to obtain an inheritance and tax refund, and claim lottery and sweepstakes prize money.

As instructed, R.H. and D.H. mailed bank checks to addresses in Georgia, including Palmer’s address.  They mailed a total of 12 checks; 10 of these checks were payable to Palmer, and all 12 were deposited into bank accounts for which Palmer was a signatory.  Palmer admitted that his role in the fraudulent scheme was to receive checks sent by R.H. and D.H., deposit them, and distribute the proceeds (totaling $321,342) among the participants to the scheme.

Palmer, who is in custody, faces up to 20 years in prison and a maximum $250,000 fine, when United States District Judge Mae A. D’Agostino sentences him on July 25, 2019.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.  Palmer may also be ordered to pay restitution to his victims.  Additionally, as a result of his guilty plea, Palmer’s lawful permanent resident status in the United States may be revoked, and he may be removed to Jamaica. 

This case was investigated by the United States Postal Inspection Service, with assistance from the Georgia Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.

Fraudsters routinely use the U.S. Mail to falsely inform victims that they have to pay “fees” or “taxes” in order to receive a tax refund, lottery or sweepstakes prize, or inheritance.  These scams often target the elderly.  To learn how to detect and avoid these scams, please visit the web site of the Federal Trade Commission, at https://www.consumer.ftc.gov/articles/0199-prize-scams.