Northern District of New York

SYRACUSE, NEW YORK - Latham, New York-based medical device manufacturer AngioDynamics, Inc. has agreed to pay the United States a total of $12.5 million to resolve allegations that the company caused healthcare providers to submit false claims to Medicare, Medicaid, and other federal healthcare programs relating to the use of two medical devices, LC Bead and the Perforator Vein Ablation Kit (PVAK), the Justice Department announced today. 

“The Justice Department is committed to holding medical device manufacturers accountable, which includes requiring that they follow all laws designed to ensure that medical devices are safe and effective,” said Chad R. Readler, Acting Assistant Attorney General for the Justice Department’s Civil Division.  “When manufacturers make misleading statements concerning the use of their products in ways that have not been cleared by the FDA, it undermines patient care.  Taxpayers and patients deserve better.” 

AngioDynamics will pay $11.5 million to resolve allegations that the company caused false claims to be submitted to government healthcare programs for procedures involving an unapproved drug-delivery device that was marketed with false and misleading promotional claims..  The government alleged that, from May 2006 through December 2011, AngioDynamics served as the U.S. distributor for Biocompatibles plc, the manufacturer of LC Bead, and marketed LC Bead for use as a drug-delivery device in combination with chemotherapy drugs.  Moreover, AngioDynamics personnel routinely claimed that this particular use of LC Bead, which FDA had twice declined to approve, was “better”, “superior”, “safer” and “less toxic” than alternative treatments, even though there was insufficient clinical evidence to support the truthfulness of these claims.  The government also alleged that AngioDynamics was aware that many insurers declined to provide coverage for certain LC Bead procedures and, as a result, instructed healthcare providers to use inaccurate billing codes when submitting claims for such uses.  The federal share of the civil settlement is approximately $10.9 million, and the state Medicaid share of the civil settlement is approximately $600,000.  The government previously resolved related criminal and civil claims against Biocompatibles in November 2016.

“The basic legal rule in this area could be mastered by a third-grader:  Don’t lie,” said U.S. Attorney John F. Bash for the Western District of Texas.  “If you do, you will be held accountable.  This settlement reflects that.”

AngioDynamics will separately pay $1 million to resolve allegations that the company caused false claims to be submitted to federal healthcare programs in connection with the use of the PVAK, later renamed the 400 micron kit.  In 2008, AngioDynamics acquired the PVAK as part of a product suite that utilizes a laser to close or collapse malfunctioning veins.  The PVAK was FDA-cleared only for use in treating superficial veins, and, in 2011, AngioDynamics requested that the FDA clearance include the treatment of perforator veins.  However, FDA informed the company that the treatment of perforator veins constitutes a new indication for which safety and efficacy were unknown.  As a result, AngioDynamics voluntarily recalled the PVAK and re-issued the product under a new name, the 400 micron kit that did not refer to the unapproved use of treating perforator veins.  Notwithstanding the recall and rebranding, certain AngioDynamics personnel, as part of a continued campaign to market the device to treat perforator veins, falsely represented to providers that Medicare would cover this use despite Medicare coverage restrictions to the contrary.     

“This settlement reflects the expectation that medical device manufacturers will give doctors accurate information about devices they manufacture and underscores the vital role of the False Claims Act in protecting the public fisc,” said United States Attorney Grant C. Jaquith for the Northern District of New York.  “We will continue to use all available tools to help secure patient safety and ensure the integrity of healthcare services claims submitted to the government.”

“Medical device makers have an obligation to provide truthful information to protect both patients and the integrity of government health programs,” said Special Agent in Charge Scott J. Lampert of the U.S. Health and Human Services Department Office of Inspector General.  “We will continue to thoroughly investigate health care fraud allegations.”

The civil settlement relating to LC Bead resolves a lawsuit filed under the whistleblower provision of the False Claims Act by Mr. Ryan Bliss, who formerly worked in the marketing departments of both AngioDynamics and Biocompatibles.  The Act permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery.  The civil lawsuit was filed in the Western District of Texas and is captioned United States ex rel. Ryan Bliss v. Biocompatibles, Inc., et al., Case No. SA-13-CA-0667-XR.  As part of today’s resolution, Mr. Bliss will receive approximately $2.3 million from the settlement relating to LC Bead.

The settlements with AngioDynamics were the result of a coordinated effort among the U.S. Attorney’s Offices for the Western District of Texas and the Northern District of New York and the Civil Division’s Commercial Litigation Branch, with assistance from the FDA’s Office of Chief Counsel, HHS’ Office of Counsel to the Inspector General, and the Department of Defense’s Defense Criminal Investigative Service.  The investigations were conducted by the FDA’s Office of Criminal Investigations; the HHS Office of Inspector General investigated allegations in the settlement involving PVAK.

The claims resolved by the civil settlements are allegations only, and there have been no determinations of liability. 

WASHINGTON – Latham, New York-based medical device manufacturer AngioDynamics, Inc. has agreed to pay the United States a total of $12.5 million to resolve allegations that the company caused healthcare providers to submit false claims to Medicare, Medicaid, and other federal healthcare programs relating to the use of two medical devices, LC Bead and the Perforator Vein Ablation Kit (PVAK), the Justice Department announced today.   

“The Justice Department is committed to holding medical device manufacturers accountable, which includes requiring that they follow all laws designed to ensure that medical devices are safe and effective,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division.  “When manufacturers make misleading statements concerning the use of their products in ways that have not been cleared by the FDA, it undermines patient care.  Taxpayers and patients deserve better.” 

AngioDynamics will pay $11.5 million to resolve allegations that the company caused false claims to be submitted to government healthcare programs for procedures involving an unapproved drug-delivery device that was marketed with false and misleading promotional claims..  The government alleged that, from May 2006 through December 2011, AngioDynamics served as the U.S. distributor for Biocompatibles plc, the manufacturer of LC Bead, and marketed LC Bead for use as a drug-delivery device in combination with chemotherapy drugs.  Moreover, AngioDynamics personnel routinely claimed that this particular use of LC Bead, which FDA had twice declined to approve, was “better”, “superior”, “safer” and “less toxic” than alternative treatments, even though there was insufficient clinical evidence to support the truthfulness of these claims.  The government also alleged that AngioDynamics was aware that many insurers declined to provide coverage for certain LC Bead procedures and, as a result, instructed healthcare providers to use inaccurate billing codes when submitting claims for such uses.  The federal share of the civil settlement is approximately $10.9 million, and the state Medicaid share of the civil settlement is approximately $600,000.  The government previously resolved related criminal and civil claims against Biocompatibles in November 2016.            

“The basic legal rule in this area could be mastered by a third-grader:  Don’t lie,” said U.S. Attorney John F. Bash for the Western District of Texas.  “If you do, you will be held accountable.  This settlement reflects that.”

AngioDynamics will separately pay $1 million to resolve allegations that the company caused false claims to be submitted to federal healthcare programs in connection with the use of the PVAK, later renamed the 400 micron kit.  In 2008, AngioDynamics acquired the PVAK as part of a product suite that utilizes a laser to close or collapse malfunctioning veins.  The PVAK was FDA-cleared only for use in treating superficial veins, and, in 2011, AngioDynamics requested that the FDA clearance include the treatment of perforator veins.  However, FDA informed the company that the treatment of perforator veins constitutes a new indication for which safety and efficacy were unknown.  As a result, AngioDynamics voluntarily recalled the PVAK and re-issued the product under a new name, the 400 micron kit that did not refer to the unapproved use of treating perforator veins.  Notwithstanding the recall and rebranding, certain AngioDynamics personnel, as part of a continued campaign to market the device to treat perforator veins, falsely represented to providers that Medicare would cover this use despite Medicare coverage restrictions to the contrary.     

“This settlement reflects the expectation that medical device manufacturers will give doctors accurate information about devices they manufacture and underscores the vital role of the False Claims Act in protecting the public fisc,” said United States Attorney Grant C. Jaquith for the Northern District of New York.  “We will continue to use all available tools to help secure patient safety and ensure the integrity of healthcare services claims submitted to the government.”

“Medical device makers have an obligation to provide truthful information to protect both patients and the integrity of government health programs,” said Special Agent in Charge Scott J. Lampert of the U.S. Health and Human Services Department Office of Inspector General.  “We will continue to thoroughly investigate health care fraud allegations.”

The civil settlement relating to LC Bead resolves a lawsuit filed under the whistleblower provision of the False Claims Act by Mr. Ryan Bliss, who formerly worked in the marketing departments of both AngioDynamics and Biocompatibles.  The Act permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery.  The civil lawsuit was filed in the Western District of Texas and is captioned United States ex rel. Ryan Bliss v. Biocompatibles, Inc., et al., Case No. SA-13-CA-0667-XR.  As part of today’s resolution, Mr. Bliss will receive approximately $2.3 million from the settlement relating to LC Bead.

The settlements with AngioDynamics were the result of a coordinated effort among the U.S. Attorney’s Offices for the Western District of Texas and the Northern District of New York and the Civil Division’s Commercial Litigation Branch, with assistance from the FDA’s Office of Chief Counsel, HHS’ Office of Counsel to the Inspector General, and the Department of Defense’s Defense Criminal Investigative Service.  The investigations were conducted by the FDA’s Office of Criminal Investigations; the HHS Office of Inspector General investigated allegations in the settlement involving PVAK.   

The claims resolved by the civil settlements are allegations only, and there have been no determinations of liability.  

ALBANY, NEW YORK – Jason Novoa, age 37, of Ballston Spa, New York, pled guilty yesterday to one count of receipt of child pornography and one count of possession of child pornography, announced United States Attorney Grant C. Jaquith and Charles Margiotta, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his guilty plea, Novoa admitted that, over a period of at least five years, he used a laptop computer equipped with peer-to-peer file-sharing software to download videos and images depicting child pornography.  Novoa further admitted that between June 9 and June 13, 2017, he made available for download over 800 images of child pornography. Novoa possessed approximately 30 video files and 310 image files depicting child pornography on June 29, 2017, when the laptop was seized by investigators pursuant to a federal search warrant executed at his residence.

Sentencing is scheduled for November 15, 2018, in Albany, New York.

Novoa faces a minimum term of imprisonment of five (5) years on the charge of receipt of child pornography and a maximum term of imprisonment of twenty (20) years on both counts.The Court is also required to impose a term of supervised release between five (5) years and life, and Novoa will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

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

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 - Lavyette Garcia, age 41, of Johnson City, New York, was sentenced today to serve 24 months in prison and to pay $72,452.00 in restitution to the U.S. Treasury Department following her guilty plea to Preparing False Federal Income Tax Returns and Making False Claims Against the United States government, announced United States Attorney Grant C. Jaquith and James D.  Robnett, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigations (IRS-CI). Garcia was also ordered to serve a 3-year term of supervised release following her prison sentence.

The defendant was arrested by Special Agents of the IRS-CI at her home in Johnson City, New York, on November 17, 2017 and subsequently pled guilty. In admitting her guilt, Ms. Garcia acknowledged that from 2011 to 2014 she knowingly and intentionally prepared and filed 110 false and fraudulent federal income tax returns for others. These false returns included fictitious income levels and falsely claimed eligibility for tax credits in an effort to qualify for tax refunds totaling $848,196.00. The IRS was able to identify some income tax returns as containing false information and halted some refund payments. In many cases where refunds were issued, Lavyette Garcia kept as much as half of the refunded money for herself.

This case was investigated by the U.S. Internal Revenue Service-Criminal Investigations (IRS-CI) and was prosecuted by Assistant U.S. Attorney Richard Southwick.

BINGHAMTON, NEW YORK - Reid L. Babcock, age 48, of Binghamton, was sentenced today to serve 17 and ½ years in prison and a life term of supervised release for his previously entered guilty plea to receiving and downloading child pornography images from the internet, announced United States Attorney Grant C. Jaquith, Charles Margiotta, Acting Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation. and David Harder, Broome County Sheriff.

In pleading guilty to receipt of child pornography, Babcock admitted that from January of 2017 through April of 2017, in Broome County, New York, he used a cellular telephone to download more than 100 graphic image files of child pornography, depicting minors engaged in sexually explicit conduct, some of whom were approximately 6-7 years of age.  Babcock also admitted that at the time of the commission of this crime he was a registered sex offender as a result of his previous conviction in 2003 in Vermont for the crime of Lewd or Lascivious Conduct with a Child. 

This case was investigated by the Federal Bureau of Investigation (FBI) and the Broome County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Miroslav Lovric.

SYRACUSE, NEW YORK – Eugene James, age 34, of Rome, New York, was sentenced today to serve 188 months incarceration in connection with his guilty plea to federal drug trafficking charges, announced United States Attorney Grant C. Jaquith and U.S. Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt of the New York Division. The Court further ordered James to serve a term of supervised release of 8 years following his release from prison, and to forfeit a money judgment of $90,000.00.

As part of his guilty plea, the defendant admitted that, for more than a year from 2016 into 2017, he was involved in a conspiracy to distribute cocaine, heroin, and crack cocaine in Oneida County.  The defendant further admitted that he, and others working at his direction, made multiple trips to drug suppliers in New York City and Long Island, New York; and that on other occasions, the defendant’s suppliers traveled to the Utica, New York, area to deliver drugs to James. In total, the defendant trafficked multiple kilograms of cocaine, as well as additional quantities of heroin and crack cocaine.

This case was investigated by the U.S. Drug Enforcement Administration (DEA), the Oneida County Sheriff’s Office, the New York State Police, the Nassau County District Attorney’s Office, the Nassau County Police Department, the City of Rome Police Department, and the Utica Police Department, and was prosecuted by Assistant U.S. Attorney Nicolas Commandeur.

ALBANY, NEW YORK – Duane E. Griffin, 37, of Schenectady, New York, was sentenced to serve 63 months in prison for arson, announced United States Attorney Grant C. Jaquith and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)-New York Field Division.

On March 9, 2018, following a one-week trial, a jury voted to convict Griffin of arson. The evidence presented at trial established that on March 17, 2012, Griffin used a hand-held propane torch to set the three-story building, located at 605 Union Street in the City of Schenectady, on fire.  Griffin then got into his vehicle and fled the scene as flames began to engulf the building.  The fire caused such severe structural damage to the building that it later had to be torn down for public safety. Griffin was also sentenced to a three-year term of supervised release, which will start after he is released from prison.  

This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Schenectady Fire Department, and was prosecuted by Assistant U.S. Attorney Rick Belliss.

PLATTSBURGH, NEW YORK – Charles Adams, a.k.a. “Chuck,” 32, of Peru, New York, was sentenced today to serve 37 months in prison, to be followed by 4 years of supervised release, for conspiring to possess with intent to distribute and to distribute heroin, announced United States Attorney Grant C. Jaquith, Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA), and Clinton County Sheriff David Favro.

In pleading guilty, Adams admitted to being a member of a heroin-distribution conspiracy that transported hundreds of grams of heroin from Annapolis, Maryland and Schenectady, New York, to Plattsburgh, New York, where it was distributed.  Adams, who was arrested in possession of 24 grams of heroin (including packaging) on May 25, 2017, admitted to driving other members of the conspiracy to pick up heroin in Annapolis and Schenectady, and to selling heroin in Plattsburgh. 

The charges are the result of a nearly yearlong investigation led by the DEA Task Force in Plattsburgh, which consists of law enforcement officers from the DEA, Homeland Security Investigations, United States Border Patrol, New York State Police, Clinton County Sherriff’s Office, Essex County Sheriff’s Office, and the Plattsburgh Police Department.  The New York State Department of Corrections and Community Supervision also assisted in the investigation. 

The case was prosecuted by Assistant U.S. Attorneys Cyrus P.W. Rieck and Katherine Kopita. 

SYRACUSE, NEW YORK - Health Quest Systems, Inc. and certain of its subsidiaries (Health Quest) and Putnam Health Center (PHC) have agreed to pay over $14.7 million to resolve allegations of violations of the False Claims Act by submitting inflated and otherwise ineligible claims for payment, the Justice Department announced today.  New-York based Health Quest is a family of integrated hospitals and healthcare providers that deliver surgical, medical and home health care services.  PHC is a Health Quest subsidiary hospital based in Carmel Hamlet, New York.

“This resolution is a testament to our deep commitment to protecting the integrity of federally- funded healthcare programs,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division.  “We are determined to hold accountable healthcare providers that knowingly claim taxpayer funds to which they are not entitled.”

In the settlement announced today, Health Quest and PHC admitted, acknowledged, and accepted responsibility for certain facts involving the submission of improper claims for various health-related services, including the following: 

From April 1, 2009 through June 23, 2015, Health Quest submitted claims for evaluation and management services but did not sufficiently document the services to support the level of service billed.  As a result, the services were billed two levels higher than supported by the medical record. 

From April 1, 2011 through August 2014, Health Quest submitted claims for home health services that lacked sufficient medical records to support the claim, including documentation of a face-to-face encounter with a physician. 

From March 1, 2014 through December 31, 2014, Health Quest subsidiary hospital, PHC, submitted allegedly false claims for inpatient and outpatient services referred to PHC by two orthopedic physicians, in alleged violation of the Physician Self-Referral Law.  The two physicians had a direct financial relationship with PHC for providing administrative services and received compensation from PHC.  The United States alleged their compensation exceeded the fair market value for the services, and thereby violated the Physician Self-Referral Law, which prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has an improper compensation arrangement. The United States further alleged that one purpose of the excessive compensation was to induce the above referrals to PHC, in violation of the Anti-Kickback Statute.

“Today’s settlement holds Heath Quest responsible for false billings to federally funded health care programs, as well as claims tainted by a hospital’s payments to two physicians for administrative services where it appears that one purpose of those payments was to improperly induce referrals.  Hospitals and providers must be vigilant to make sure that claims accurately reflect medical services provided and are supported by sufficient documentation.  We will continue to investigate whistleblower complaints vigorously to protect public funds,” said United States Attorney Grant C. Jaquith for the Northern District of New York.

As part of the settlements announced today, Health Quest will pay an additional $895,427 to the State of New York, which jointly funds the State’s Medicaid program with the federal government.

Contemporaneously with the False Claims Act settlement, Health Quest also agreed to enter into a Corporate Integrity Agreement (CIA) with HHS-OIG to address future compliance.

“Government health program dollars are precious and need to be carefully guarded,” said Scott J. Lampert, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG).  “Working closely with our law enforcement partners we will fight for the integrity of these taxpayer-funded programs.”

The settlement resolves three lawsuits brought by former employees of Health Quest under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens to bring lawsuits on behalf of the United States and obtain a portion of the government’s recovery.  Tim Cleary will receive $1,893,092, John Betaudier and Carolyn Carroll will receive, collectively, $56,266, and Gregory Folta will receive at least $875,546. 

The lawsuits, are captioned:  United States, et al. ex rel. Folta v. Health Quest Systems, Inc., et al., No. 1:15-cv-396 (N.D.N.Y.); United States, et al. ex rel. Cleary v. Health Quest Systems, Inc., et al., No. 16-cv-76 (N.D.N.Y.); and United States, et al. ex rel. Betaudier and Carroll v. Health Quest Medical, Practice, P.C., et al., No. 1:16-cv-1344 (N.D.N.Y.).

The federal government’s resolution of these matters illustrate its emphasis on combating health care fraud.  One of the most powerful tools in this effort is the False Claims Act.  Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

These matters were investigated by the Civil Division’s Commercial Litigation Branch; the U.S. Attorney’s Office for the Northern District of New York; HHS-OIG; the FBI; and the U.S. Postal Service Office of Inspector General.

ALBANY, NEW YORK – George Muzio, Jr., 37, of Cohoes, New York, pled guilty today to two counts of sexual exploitation of a child, six counts of distribution of child pornography, and one count of possession of child pornography, announced United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI). 

As part of his guilty plea, Muzio admitted that between August 2014 and May 2016, he communicated with thirteen underage girls using his cellular phone and the Kik Messenger application.  The minors lived throughout North America and ranged in age from 11 to 17 years old, with most being between 13 and 14 years old at the time the defendant engaged them in text-message exchanges via Kik.  The communications, which Muzio frequently steered toward graphic sexual conversation, generally spanned thousands of messages sent and received over several months. 

In pleading guilty Muzio admitted that he posed as a teenage boy and repeatedly requested and received sexually explicit photographs from the underage girls whom he targeted.  As Muzio admitted, he texted detailed instructions to two victims about how he wanted them to pose in the sexually explicit photographs that they took and sent to him at his request.  One of those victims, a resident of Montana with whom Muzio exchanged over 2,000 text messages over a period of 8 months, was 11 years old at the time.  The second, a resident of Georgia with whom Muzio exchanged over 4,700 text messages over a period of 4 months, was 13 years old. 

In addition, Muzio admitted that on six occasions between March 2015 and January 2016, he distributed child pornography videos from his Cohoes home through an Internet file-sharing program. He also admitted that on May 3, 2016, he possessed a laptop computer that contained approximately 400 child pornography videos depicting the sexual abuse of children as young as 10 years old. 

Muzio, who has been in custody since March 2, 2018, is scheduled to be sentenced on November 6, 2018, at which time he faces a sentence of at least 15 years and up to 30 years in prison on each of the two counts of sexual exploitation, and between 5 and 20 years on the distribution counts, and up to 20 years on the possession count. He also can be sentenced to at least 5 years and up to lifetime post-imprisonment supervised release, and a maximum $250,000 fine.  He will also have to register as a sex offender when he is released from prison.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. 

This case was investigated by Homeland Security Investigations (HSI), with assistance from the Colonie Police Department and the Cohoes Police Department, and is being prosecuted by Assistant U.S. Attorneys Joseph A. Giovannetti and Emmet O’Hanlon.

This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.  For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.

 

SYRACUSE, NEW YORK – Keith E. Hook, age 54, of Oswego, New York, appeared in federal court today on a charge that he distributed child pornography over the internet, 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).

According to the federal criminal complaint, Hook, a United States Border Patrol Agent, used the Kik Messenger application to distribute child pornography to other Kik users from April 30, 2018 through May 4, 2018. As alleged in the complaint, an initial forensic review of his personally owned iPod revealed that it contained approximately 34 image files and 2 video files depicting child pornography. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.

Hook appeared today before United States Magistrate Judge Andrew T. Baxter, who ordered him detained pending a hearing scheduled for July 6, 2018.

If convicted, Hook faces at least 5 years and up to 20 years in prison, a term of post-release supervision of at least 5 years and up to life, 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.  Additionally, if convicted, Hook would be required to register as a sex offender.

This case is being investigated by HSI Syracuse with assistance from the U.S. Department of Homeland Security, Office of Inspector General (DHS/OIG); U.S. Customs and Border Protection, Office of Professional Responsibility; the New York State Police Computer Crimes Unit; and the New York State Police (Fulton station). The case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.

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

ALBANY, NEW YORK – Mountain Medical Services (Mountain Medical) and its owner, Michael Pond, M.D., have agreed to pay $110,000 under the False Claims Act to resolve allegations that they knowingly billed the federal government for services at a higher rate than appropriate, announced United States Attorney Grant C. Jaquith.

From January 2013 through October 2015, Mountain Medical employed physician assistants and nurse practitioners at its urgent care facilities in Lake Placid, Saranac Lake, Malone, and Massena, New York.  Most of these facilities operated seven days a week, for several hours each day, often without a physician present.  Nevertheless, during this period, Mountain Medical billed more than 99% of its Medicare services as though the services had been rendered or directly supervised by a physician.  Medicare reimbursement rules provide higher levels of reimbursement for services rendered by a physician, and for services rendered by a non-physician practitioner who is directly supervised by a physician who both remains actively involved in the patient’s treatment and is present in the office suite when services are rendered, than for services rendered by a non-physician operating with less physician supervision and involvement.

“The continued vitality of our federal health care system depends on honest billing for services,” said United States Attorney Jaquith.  “As this settlement illustrates, we are committed to ensuring that providers who knowingly violate Medicare requirements are held accountable.”

“Mountain Medical Services and Dr. Pond, like all health care providers, must be held to a high standard of ethical behavior,” said Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (HHS-OIG).  “HHS-OIG will continue to ensure that providers who bill federal health care programs do so in an honest manner.”

This settlement was entered in connection with a nationwide law enforcement operation targeting health care fraud, announced today by Attorney General Jeff Sessions and other officials in Washington, D.C. 

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

ALBANY, NEW YORK – Christopher Kevin Solomon, a/k/a Kevin Murphy, age 41, and a citizen of Jamaica, was sentenced today to time served (5 months in jail) for 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.

Solomon was removed from the United States to Jamaica on April 26, 2003.  On January 17, 2018, a Border Patrol Agent arrested him in Hogansburg, New York.  Solomon admitted that he returned to the United States without permission following the removal.   

Following the sentencing, Solomon was remanded to the custody of the Department of Homeland Security, for removal proceedings.

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

ALBANY, NEW YORK – Jose Isaias Guerrero, a/k/a Jose Isaias Herrera, age 40, and a citizen of Honduras, pled guilty today to 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).

Guerrero was removed from the United States to Mexico on October 19, 2010 and again on November 26, 2010.   On April 20, 2018, ICE-ERO Officers arrested him in Greene County, New York.  Guerrero admitted that he returned to the United States without permission following the prior removals.   

Guerrero faces up to 2 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 October 25, 2018.  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 – Robert Gibeault, Jr., age 49, of Gansevoort, New York, appeared today in federal court on charges that he distributed child pornography over the internet. 

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

According to the federal criminal complaint, Gibeault used the file-sharing program BitTorrent to distribute child pornography to other BitTorrent users from January 2017 through September 2017.  His laptop computer contained approximately 390 video files and 85 image files depicting child pornography.  These included files that Gibeault had previously distributed over the BitTorrent network.  The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.

If convicted, Gibeault faces at least 5 years and up to 20 years in prison, a term of post-release supervision of at least 5 years and up to life, 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.  Additionally, if convicted, Gibeault would be required to register as a sex offender. 

Gibeault appeared today before United States Magistrate Judge Christian F. Hummel, who ordered him detained pending a detention hearing scheduled for June 29, 2018. 

This case is being investigated by HSI, with assistance from the New York State Police and Colonie Police Department, and is being prosecuted by Assistant U.S. Attorneys Joseph A. Giovannetti and Emmet 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), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

 

ALBANY, NEW YORK – Katie Bessette, age 29, of Albany, pled guilty today to conspiring to distribute cocaine.

The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.

As part of her guilty plea, Bessette admitted that on December 3, 2017, she distributed approximately 527 grams of cocaine to another person at a shopping center in Albany County. 

Sentencing is scheduled for October 17, 2018 before Senior United States District Judge Gary L. Sharpe.  Bessette faces at least 5 years and up to 40 years in prison, and a term of post-imprisonment supervised release of at least 4 years and up to life.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. 

This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Rick Belliss.

ALBANY, NEW YORK – Corey J. White, aka “Stacks,” age 35, of Schenectady, New York, pled guilty today to conspiring to distribute heroin.

The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.

White admitted that between August 1, 2016 and May 10, 2017, he worked with another person to distribute heroin in Schenectady.  He also admitted that on May 11, 2017, he possessed, in his Schenectady residence, about 100 green-colored envelopes, each of which contained heroin packaged for sale, as well as 2 digital scales, drug packaging materials, and $4,462 in cash.

Sentencing is scheduled for October 25, 2018 before United States District Judge Mae A. D’Agostino.  White faces up to 30 years in prison, and a term of post-imprisonment supervised release of at least 6 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 FBI and is being prosecuted by Assistant U.S. Attorney Michael Barnett.

ALBANY, NEW YORK – Aaron Vroman, age 28, of Watervliet, New York, was indicted yesterday for sexual exploitation of a child by making pornographic images, distribution of child pornography, and possession of child pornography.

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

According to the indictment, Vroman sexually exploited a child from September 2015 through December 2017, used file-sharing software to distribute child pornography over the internet in April 2017, and possessed child pornography on a laptop computer and flash drive. 

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

Vroman has been in custody since December 15, 2017 and will be arraigned at a later date. If convicted of all charges, Vroman faces at least 15 years and up to 30 years in prison, as well as post-imprisonment supervised release of at least 5 years and up to life.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. 

This case is being investigated by HSI, with assistance from the New York State Police and the Colonie Police Department, and is being prosecuted by Assistant U.S. Attorney Joseph A. Giovannetti.

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 – Robert Jon Lazore, age 42, of Snye, Quebec, pled guilty today to conspiracy to distribute oxycodone on the Akwesasne Mohawk Indian Reservation in Franklin County. 

The announcement was made by United States Attorney Grant C. Jaquith; Kevin M. Kelly, Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office; Matthew Rourke, Saint Regis Mohawk Tribal Police Chief; Rose M. Brophy, Director of Field Operations,  Customs and Border Protection (CBP), Buffalo Field Office; and James J. Hunt, Special Agent in Charge of the New York Field Division of the U.S. Drug Enforcement Administration (DEA).

As part of his plea, Lazore admitted that between 2008 and November 2012, he operated a drug trafficking organization that distributed oxycodone on the Akwesasne Mohawk Indian Reservation, which straddles the United States and Canadian border along the Saint Lawrence River.  Lazore obtained 5,000 oxycodone tablets at a time from Canadian suppliers for distribution on the reservation.   Lazore used at least 8 couriers and runners to coordinate the distribution of oxycodone to his customers.  These couriers and runners included Carrie Lazore, Teri Jo Lazore, Travis Adams, Todd Edwards, and James Labarr.  Lazore regularly provided each courier with 100 to 200 tablets of oxycodone to sell to customers in both Canada and the United States.

In December 2017, Lazore was extradited from Canada to the United States following a term of imprisonment in Canada.

As part of the same case, the following people have pled guilty to conspiracy to distribute oxycodone, and been sentenced by United States District Judge Mae A. D’Agostino, as follows:

Name

Age

Residence

Sentence

Carrie Lazore

  31

Snye, Quebec

33 months

Terri Jo Lazore

  25

Akwesasne, Ontario

87 months

Travis Adams

  33

Hogansburg, NY

78 months

Todd Edwards

  28

Akwesasne, Ontario

46 months

James Labarr

  25

  Bombay, NY

46 months

Robert Jon Lazore faces up to 20 years in prison, a fine of up to $1 million, and a term of post-imprisonment supervised release of at least 3 years and up to life when Judge D’Agostino sentences him on October 22, 2018.  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 the result of close cooperative efforts of HSI, led by the Massena Residence Office, in conjunction with CBP, DEA, and the Saint Regis Mohawk Tribal Police.  These agencies worked closely with the Royal Canadian Mounted Police, Akwesasne Mohawk Tribal Police, Ontario Provincial Police, Sûreté du Québec, and the Canada Border Services Agency, as well as U.S. Border Patrol, the New York State Police, St. Lawrence County Sheriff’s Office, Canton Police Department, Potsdam Police Department, and Plattsburgh Police Department. 

This case is being prosecuted by Assistant U.S. Attorney Elizabeth R. Rabe.  Lazore was extradited to face charges in the Northern District of New York with the assistance of the U.S. Department of Justice’s Office of International Affairs.

SYRACUSE, NEW YORK - Charles J. Tan, age 22, of Pittsford, New York, and a citizen of Canada, pled guilty today to crimes related to the unlawful purchase of a firearm that was used to kill his father in 2015, announced United States Attorney Grant C. Jaquith and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)-New York Field Division.

As part of his guilty plea to the crime of receiving a firearm in interstate commerce intending to use it in the commission of a felony, Tan admitted that in February 2015 he caused a fellow Cornell University student to make an unlawful “straw purchase” of a 12-gauge shotgun for him.  Tan admitted to falsely telling the fellow student that he needed the firearm for hunting, when his actual intent was that it be used to shoot his father.

United States Attorney Grant Jaquith said, “Thanks to the perseverance and collaboration of federal and local law enforcement, Charles Tan is being held accountable for arranging for the unlawful purchase of a shotgun so he could use it to shoot his father. We will continue to work diligently with ATF and other federal, state, and local partners to fulfill our commitment to combat violent crime.”

“Mr. Tan circumvented the law and illegally obtained a firearm. Crimes involving illegal possession of firearms lie at the heart of ATF’s mission to protect the public from violent crime. I would like to thank our law enforcement partners that stand with ATF as one united front to protect our citizens from individuals that choose to disobey laws intended to preserve public safety. I would also like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case,” said Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives-New York Field Division

Tan also pled guilty to two offenses related to misrepresentations made to the federally licensed firearms dealer at the time of the “straw purchase” of the shotgun. In entering these guilty pleas, Tan admitted that he knew his fellow Cornell University student would have to lie on a background check form as to the true identity of the actual purchaser (Charles Tan). This form, known as the Department Of Justice – Bureau of Alcohol, Tobacco, Firearms and Explosives Form 4473, required that Tan’s fellow Cornell University student falsely sign and certify he was the actual purchaser in order to buy the shotgun. This was false because the purchase was actually and truly being made for Charles Tan, who supplied the money for the sale. In pleading guilty today, Charles Tan admitted to aiding, abetting and causing his fellow Cornell University student to make the false statement on the ATF Form 4473 as to the identity of the actual purchaser, a fact material to the lawful purchase of the firearm.   

Sentencing is scheduled for October 18, 2018 in Syracuse. The defendant faces a sentence of up to 25 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 ATF and the Monroe County (New York) Sheriff’s Office, and is being prosecuted by Assistant United States Attorneys Lisa M. Fletcher and Miroslav Lovric. 

 

PLATTSBURGH, NEW YORK – Jimolo Coates, a.k.a. “Lo,” Marlo,” “Brodie,” age 25, of Annapolis, Maryland, was sentenced today to 188 months in prison, to be followed by 8 years of supervised release, for conspiring to possess with intent to distribute and to distribute heroin.

The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA); and Clinton County Sheriff David Favro.

In pleading guilty, Coates admitted to regularly selling 40 grams of heroin to Melissa Kusalonis in Annapolis for $4,000.  Kusalonis then transported the heroin to Plattsburgh, New York, and sold it in personal-use quantities.  Initially, and beginning in June 2016, Coates sold the heroin directly to Kusalonis.  Following his arrest and detention on Maryland state charges in early September 2016, Coates directed two couriers, Tynaejah Thompson and Kiara Scott, to provide the heroin to and collect payment from Kusalonis.  Coates also admitted to selling distribution-quantities of heroin to Charles Adams, who frequently transported heroin from Annapolis to Plattsburgh with Kusalonis, following Coates’s release from pretrial detention in Maryland in early March 2017. 

Coates was charged along with nine other people in two related indictments relating to a heroin distribution ring that transported heroin from Annapolis and Schenectady, New York, and sold it in the Plattsburgh area.  In addition to Coates, the following eight defendants have pled guilty to conspiracy to possess with intent to distribute and to distribute heroin:

• Kyle Touchstone, age 30, of Plattsburgh;
• Melissa Kusalonis, a.k.a. “Mel,” “Liss,” age 36, of Plattsburgh;
• Tynaejah Thompson, a.k.a. “Naee,” age 20, of Annapolis, Maryland;
• Kiara Scott, age 29, of Annapolis, Maryland;
• Anthony DeFilippo, a.k.a “Flip,” age 36, of Schenectady;
• Charles Adams, a.k.a. “Chuck,” age 32, of Peru, New York;
• Travynn Ippolito, a.k.a “Trav,” age 30, of Plattsburgh; and
• Luke Kiroy, age 33, of Saranac, New York.

 

The tenth defendant, Danielle Conners, age 32, of Plattsburgh, is scheduled for trial on August 27, 2018.  The charge against Conners is merely an accusation, and she is presumed innocent unless and until proven guilty. 

The charges are the result of a nearly yearlong investigation led by the DEA Task Force in Plattsburgh, which consists of law enforcement officers from the DEA, Homeland Security Investigations, United States Border Patrol, New York State Police, Clinton County Sheriff’s Office, Essex County Sheriff’s Office, and the Plattsburgh Police Department.  The New York State Department of Corrections and Community Supervision also assisted in the investigation. 

The case is being prosecuted by Assistant U.S. Attorneys Cyrus P.W. Rieck and Katherine Kopita. 

BINGHAMTON, NEW YORK - Michael McCann, age 31, of Haverhill, Massachusetts, and formerly of Ilion, New York, pled guilty today to sexual exploitation of a minor and possession of child pornography.  The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his guilty plea, McCann admitted to taking and distributing a photograph of himself engaged in sexual conduct with a 3-year old child, as well as possessing videos and still images depicting child pornography.

McCann, who is held without bail,  will be sentenced on October 22, 2018 and faces up to fifty (50) years in prison, a mandatory minimum term of imprisonment of fifteen (15) years, a fine of up to $250,000, and a term of post-imprisonment supervised release of at least five (5) years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, a federal task force that investigates cases involving the sexual exploitation of children. The task force consists of FBI Agents and New York State Police Investigators. This investigation was conducted with the assistance of the FBI Little Rock, Arkansas Field Office, the FBI Lowell, Massachusetts Resident Agency, the Herkimer County District Attorney’s Office, the Herkimer County Child Advocacy Center, Herkimer County Child Protective Services, the Village of Ilion, NY Police Department and the Haverhill, Massachusetts Police Department, and is being prosecuted by Assistant U.S. Attorney Carina H. Schoenberger.

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

 

 

SYRACUSE, NEW YORK –Andrew Raymond, age 39, and Brian Requena, age 41, both of Los Angeles, California, were sentenced yesterday following their convictions after trial for conspiracy to possess with intent to distribute synthetic drugs and money laundering, relating to their operation of a major nationwide synthetic drug trafficking ring, announced United States Attorney Grant C. Jaquith; Special Agent in Charge James J. Hunt, Drug Enforcement Administration (DEA), New York Division; and Special Agent in Charge James D. Robnett, Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office.

Raymond was sentenced to serve 25 years in prison and Brian Requena was sentenced to serve 20 years in prison. Both men were convicted following an 11-day jury trial in Syracuse in July 2017. Upon their release from prison, Raymond and Requena will each serve a 3-year term of supervised release. As a further part of the sentence, Raymond and Requena forfeited multiple luxury vehicles, including a 2013 Rolls Royce Ghost, a 2014 BMW, and a 2015 Cadillac Escalade; 32 pieces of jewelry, including 10 Rolex watches, a Cartier watch, diamond earrings, diamond necklaces, and diamond rings; and funds seized from 16 bank accounts. Additionally, the court ordered a money judgment of $3 million against Raymond and a $1.5 million money judgment against Requena. Three other members of the conspiracy previously pled guilty to similar charges.

“The significant sentences imposed in this case reflect the seriousness of the defendants’ crimes –- leading an illegal business manufacturing and distributing large quantities of dangerous synthetic cannabinoids nationwide and laundering the drug proceeds,” said United States Attorney Grant C. Jaquith. “Thanks to the dedication of federal law enforcement, the profits of their poison peddling have been forfeited and prison substituted for their luxury. We will continue to investigate and prosecute drug traffickers who masquerade as legitimate businessmen.”

DEA Special Agent in Charge James J. Hunt stated, “Andrew Raymond and Brian Requena were not legitimate businessmen, they were drug kingpins earning millions off the sale of poison. They capitalized on distributing synthetic cannabinoids - a deadly psychoactive substance - in Northern New York and throughout the United States. I commend the Northern District of New York for their diligent work on this investigation and their unwavering commitment to prosecuting those who violate the Controlled Substance Act.”

“We are committed to working with our law enforcement partners and will use our financial expertise to dismantle criminal organizations that victimize the American public. These two individuals made enormous profits and acquired significant assets as a result of their criminal activity. Yesterday’s sentences demonstrate the high price they will pay for engaging in such criminal activity,” stated Special Agent in Charge James D. Robnett, Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office.

The trial evidence established that Raymond and Requena conspired to manufacture and distribute synthetic cannabinoids (also known as “Spice,” “Spike,” “K2,” or “synthetic marijuana”) throughout the country, including to multiple “head shops” in the Northern District of New York. Documents found at the defendants’ warehouses in Los Angeles and in their computers showed that they understood their synthetic substances were controlled by federal drug laws. The defendants took significant steps to evade detection by law enforcement, setting up shell companies and using Post Office boxes to divert attention from the warehouse where they manufactured their product. Additionally, the defendants transferred their company (Real Feel Products, Inc.) and all of its bank accounts from Andrew Raymond’s name to Brian Requena’s after DEA and other law enforcement agencies executed a search warrant on their warehouse in February 2014.

At the height of their drug trafficking conspiracy, Raymond and Requena were each making approximately $100,000 per week in profit, and they had a large team of employees who manufactured, shipped, and sold their products. The evidence at trial also showed that the defendants conspired to commit money laundering by wiring millions of dollars to China to purchase the powder form of the synthetic cannabinoid that they used in their finished product.

This case was investigated by the United States Drug Enforcement Administration (DEA), Internal Revenue Service-Criminal Investigation (IRS-CI), Homeland Security Investigations (HSI), and U.S. Immigration and Customs Enforcement (ICE), and was prosecuted by Assistant U.S. Attorneys Carla Freedman and Michael F. Perry.

SYRACUSE, NEW YORK - Marcial De Leon-Aguilar, age 31, and a citizen of Guatemala, pled guilty today to unlawfully re-entering the United States after previously having been removed, announced United States Attorney Grant C. Jaquith and Thomas Feeley, Field Office Director, U.S. Immigration and Customs Enforcement (ICE), Buffalo, New York.

As part of his guilty plea today, De Leon-Aguilar admitted that he was previously convicted of a felony offense and had been deported three times prior to the current charge.

Sentencing is scheduled for July 31, 2018.  At sentencing, Marcial De Leon-Aguilar faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and removal or deportation from the United States.[1] A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case is being investigated by the United States Department of Homeland Security, Immigration and Customs Enforcement (ICE).

---

[1] Deportation and removal proceedings are separate civil matters litigated in Immigration Court and are not adjudicated as part of a criminal prosecution.

ALBANY, NEW YORK – United States Attorney Grant C. Jaquith concluded the 2018 LEADership Project today at a news conference at the Mont Pleasant Middle School in Schenectady.  Joining him were 14 fifth-grade students who completed the project this year, and many leaders and representatives of the participating federal, state, and local law enforcement agencies.

The LEADership Project, an anti-gang training for fifth-grade students, reached classrooms this year in the Albany, Schenectady, Troy and Lansingburgh School Districts.  The project began with just the Albany School District in 2011 and has grown since then.  Volunteer instructors spend four sessions in each classroom, and this year taught more than 1,500 students.

United States Attorney Grant C. Jaquith stated: “The LEADership Project is about investing in our children, and thus in the future of our community.  The acronym is for Legal Education and Decision-making and the Project involves working with 5th graders to help them stay out of gangs and away from crime, focus on what they can become, and make positive decisions to get there.  We want these students to excel, and to view law enforcement as a friend and supporter in their quest for success.  We have been able to reach so many students thanks to our partnership with federal, state, and local law enforcement agencies whose officers have generously donated their time.  This opportunity to encourage students to soar is very rewarding, and we hope this Project leads to long-lasting benefits for them and our community.”

Schenectady Schools Superintendent Laurence T. Spring stated: “We are proud to be part of the LEADership Project and appreciate the hard work of all of the agencies and the U.S. Attorney in order to help our students recognize and learn how to handle difficult situations and make good decisions.  The ability for our kids to interact and relate with law enforcement officers is important toward building trust and sends such a powerful message.  Our kids are engaged and are listening.  They are becoming more aware of how the many decisions and choices that they make today can shape their futures.”

Albany School Superintendent Kaweeda G. Adams stated: “The LEADership Project is an excellent example of the type of community partnership that is so important to helping our students learn to make good decisions and build strong relationships. Our students are building visions of themselves as adults, and this program is supporting them in taking positive first steps down those pathways to successful futures.”

Troy Schools Superintendent John Carmello stated: “For the past four years, fifth-grade students in the Troy City School District have had the opportunity to participate in the U.S. Attorney’s LEADership Project.  We are extremely grateful to the U.S. Attorney’s Office and all of our partners for this fantastic program.  Through this project, our students have been able to build lasting positive relationships with various members of the criminal justice system, learn critical lessons in making good decisions, and pave a pathway to success for themselves, in school and in life.  The LEADership Project is an integral part of the Troy City School District’s mission to educate students who become upstanding citizens in our community.”

To meet the challenge of getting volunteer law enforcement instructors for the 76 fifth-grade classrooms in the four school districts, United States Attorney Jaquith reached out to, and received a terrific response from, the following law enforcement agencies:

Federal Agencies

U.S. Attorney’s Office

U.S. Marshals Service

Bureau of Alcohol, Tobacco, Firearms, and Explosives

Transportation Security Administration

U.S. Probation and Pretrial Services

U.S. Dept. of Health & Human Services, Office of the Inspector General

Social Security Administration, Office of the Inspector General

U.S. Postal Service, Office of the Inspector General

U.S. Postal Inspection Service

U.S. Customs & Border Protection

 

State Agencies

New York State Police

New York State Attorney General’s Office

Local Agencies

Albany Police Department

Schenectady Police Department

University at Albany Police Department

Schenectady County District Attorney’s Office

Rensselaer County District Attorney’s Office

Albany County Sheriff’s Office

Rensselaer County Sheriff’s Office

Schenectady County Probation Department

Rensselaer County Probation Department

 

Through role-playing skits centered on two fifth-grade characters who are encouraged by an older gang member to make some bad decisions, classroom discussions revolve around making good life decisions, focusing on the future, acknowledging positive personal traits, and becoming the best that students can be.  The sessions introduce the students to the concepts of responsibility and accountability through learning about Victim Impact Panels and Community Accountability Boards.

In past student questionnaires from the project, 84% of fifth graders stated it was very important to them to have help to stay away from gangs.  These sessions help students learn how to do that.  While 98% said they were not in a gang, 73% indicated they had friends who were in gangs.  When asked who can help them stay away from gangs, students notably listed their parents, teachers, police officers, and their LEADership instructors.

ALBANY, NEW YORK – Kevin Safford, age 33, of Amsterdam, New York, pled guilty today to possessing child pornography and to accessing a child pornography web site available only through an anonymous Internet network.

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

As part of his plea, Safford admitted that in 2015, he accessed Playpen, an online forum through which registered users advertised, viewed, and distributed child pornography.  Images and videos shared through the site were highly categorized according to victim age and gender, and type of sexual activity depicted. 

Before the FBI seized the Playpen web site and shut it down, it was available only through an anonymous Internet network, which allowed users to access websites including Playpen without revealing their actual internet protocol address, geographic location, or other identifying information.  Safford admitted that he logged into Playpen in order to access its child pornography content.  He also admitted to possessing child pornography on an external hard drive.

Safford faces up to 10 years in prison when he is sentenced by United States District Judge Mae A. D’Agostino on October 23, 2018.  He also faces a term of post-imprisonment supervised release of at least 5 years and up to life, a fine of up to $250,000, and mandatory registration as a sex offender.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

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

This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.

ALBANY, NEW YORK – Charles Rainer Sinek, age 53, of Oakland, California, was sentenced today to 87 months in prison, to be followed by a 3-year term of supervised release, for conspiring to distribute opioid pills.

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

Sinek was convicted in September 2016, after a 3-day trial.  At trial, the evidence demonstrated that from 2011 to September 2012, Sinek used his father-in-law’s prescription pad to write prescriptions for Schedule II controlled substances, including oxycodone, oxymorphone, and hydromorphone.  He filled these prescriptions at different pharmacies using variations of his own name and at least one other pseudonym.  He then shipped the drugs cross-country to his co-conspirator in Saranac, New York, where the drugs were sold.

Senior United States District Judge Gary L. Sharpe also ordered Sinek to forfeit $164,025 as proceeds of the crime.

This case was investigated by the DEA and the Plattsburgh Police Department, and was prosecuted by Assistant United States Attorney Elizabeth R. Rabe.

ALBANY, NEW YORK – Ryan Mershon, age 40, of Ballston Spa, New York, was sentenced today to 71 months in prison, to be followed by a 3-year term of supervised release, for conspiracy to commit money laundering and distribute marijuana.

The announcement was made by United States Attorney Grant C. Jaquith; Warren County Sheriff Nathan H. “Bud” York; Acting Inspector in Charge Delany De Leon-Colon, United States Postal Inspection Service (USPIS), Boston Division; and Special Agent in Charge Kevin M. Kelly of Homeland Security Investigations (HSI), Buffalo Field Office.

Between October 2013 and February 2016, Mershon obtained marijuana from co-conspirators in California and shipped that marijuana to Northern New York in bucket containers.  The marijuana was sold throughout Northern New York.  Mershon arranged for his co-conspirators to deposit the proceeds from the sale of the marijuana in bank accounts in his name as well as the names of his immediate family and girlfriend.  The amount of proceeds deposited totaled more than $117,000.

United States District Judge Mae A. D’Agostino also ordered Mershon to forfeit $117,000 as proceeds of the crime.

After pleading guilty on September 5, 2017, Mershon absconded from Court supervision and left New York, becoming a fugitive.  The U.S. Marshals Service tracked down Mershon and arrested him in California.

This case was investigated by the Warren County Sheriff’s Office, the U.S. Postal Inspection Service, and HSI, and was prosecuted by Assistant U.S. Attorney Elizabeth R. Rabe.

SYRACUSE, NEW YORK – Jeffrey Rivera, age 34, of Utica, New York, pled guilty today to conspiring to possess with intent to distribute and to distribute more than five (5) kilograms of cocaine. The announcement was made by the United States Attorney Grant C. Jaquith; Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt of the New York Division; and New York State Police Superintendent George P. Beach, II. The jury trial on the charge to which Rivera pled guilty was scheduled to begin today before Chief United States District Judge Glenn T. Suddaby.

As part of his guilty plea, Rivera admitted that he agreed with others, including the co-defendants charged in his case, to participate in a drug trafficking organization that distributed cocaine.  The defendant also admitted that he obtained quantities of cocaine from co-conspirators within the organization and distributed, or arranged to distribute, cocaine to others.

Chief Judge Suddaby will sentence Rivera on October 25, 2018, at which time the defendant faces up to life in prison, a mandatory minimum term of imprisonment of ten (10) years, a fine of up to $10 million, and a term of post-imprisonment supervised release of at least five (5) years and up to life.  Rivera’s sentence will be imposed by Chief Judge Suddaby based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

The case was investigated by the United States Drug Enforcement Administration (DEA), the New York State Police-Community Narcotics Enforcement Team, the Oneida County Sheriff’s Department, the City of Rome Police Department, the City of Utica Police Department, and the Village of Yorkville Police Department, and is being prosecuted by Assistant U.S. Attorneys Robert Levine and Katherine King.

SYRACUSE, NEW YORK – Tammy Lamere, age 47, of Fulton, New York, was sentenced today to serve 30 years in prison for conspiracy to sexually exploit and sexual exploitation of a child, announced United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Division of Homeland Security Investigations (HSI).

The sentencing follows Lamere’s earlier plea of guilty in which she admitted to conspiring with Cilf Seaway to sexually abuse a child from 2010-2013, when the child was between the ages of 5 and 9 years old.  Lamere admitted that the abuse was photographed on at least 11 occasions, in which approximately 225 images and videos were produced.   

Senior United States District Judge Norman A. Mordue sentenced Lamere to 30 years on each of her two counts of conviction, to run concurrently to one another.  Following her sentence, Lamere will be on supervised release for 15 years, and will be required to register as a sex offender.

Co-defendant Clif Seaway was sentenced to serve 360 years in prison in connection with his convictions for two counts of Conspiracy to Sexually Exploit Children and ten counts of Sexual Exploitation of a Child, following a four-day jury trial in December 2017. In a related case, Tammy Martin of Carthage, New York, was sentenced to serve 90 years in prison for her conviction by guilty plea on three counts of sexual exploitation of a child that involved three different children.

Lamere’s case was investigated by the New York State Police, and the United States Department of Homeland Security, Homeland Security Investigations (HSI). The case was prosecuted by Assistant U.S. Attorneys Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, and Carina Schoenberger.

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

ALBANY, NEW YORK – Rosalvo Caetano, age 46, and a citizen of Brazil, pled guilty today to transporting two illegal aliens within 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.

Caetano admitted that on May 12, 2018, he drove from Worcester, Massachusetts, to Fort Covington, New York, where he picked up two illegal aliens who had secretly crossed the border from Canada.  Border Patrol Agents arrested Caetano and his passengers in Malone, New York.  Caetano, himself an illegal alien, was living in Worcester.  Following his term of imprisonment, he will be processed by the Department of Homeland Security, for removal proceedings.

Caetano 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 Gary L. Sharpe on October 16, 2018.  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 passengers arrested with Caetano were prosecuted for the misdemeanor offense of entry without inspection.  Gabriel Felipe Dias Prado, age 19, and a citizen of Brazil, was convicted of entry without inspection and sentenced to 20 days in jail.  Ilcione Bazoni, also known as Carlos Cousa, age 62, and a citizen of Brazil, was convicted of entry without inspection and sentenced to 45 days in jail.    

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

ALBANY, NEW YORK – Kristina Gross, age 37, of Wynantskill, New York, was sentenced today to pay a $5,000 fine for misusing the names of the Department of the Treasury and the Internal Revenue Service (IRS), a misdemeanor offense.

The announcement was made by United States Attorney Grant C. Jaquith and William A. Kalb, Special Agent in Charge of the Northeastern Field Division of the Office of the Treasury Inspector General for Tax Administration (TIGTA).

As part of her guilty plea on January 18, 2018, Gross admitted that she worked for a construction services company in Rensselaer County, whose Kinderhook Bank account had been levied by the IRS on February 14, 2017.  On February 23, 2017, Gross twice emailed Kinderhook Bank what she claimed was an IRS release of levy form, in an unsuccessful attempt to induce the bank to provide her company with access to funds that the bank had frozen as a result of receiving the IRS levy. 

Gross admitted that the document she sent to Kinderhook Bank on February 23 was forged, inaccurate and not approved or authorized by the Department of the Treasury or the IRS.  She also admitted to knowing that the document would create the false impression at Kinderhook Bank that the IRS had actually issued the document when, in fact, the IRS had not.

This case was investigated by TIGTA and prosecuted by Assistant U.S. Attorney Michael Barnett.

ALBANY, NEW YORK – Brad Rushford, age 35, of Ellenburg Depot, New York, was sentenced today to one year and one day in prison for his role in attempting to distribute 120 pounds of marijuana, announced United States Attorney Grant C. Jaquith.   

As part of his guilty plea, Rushford admitted to coordinating the delivery of a 120-pound load of marijuana in March 2011.  Rushford provided a driver and scout cellphones to use in delivering the marijuana, but the marijuana was intercepted by law enforcement in Malone, New York.  At the time, Rushford worked as a Corrections Officer with the New York State Department of Corrections and Community Supervision. 

United States District Judge David N. Hurd also sentenced Rushford to a 4-year term of supervised release and to pay a $6,000 fine.

This case was investigated by the Department of Homeland Security, Homeland Security Investigations; Federal Bureau of Investigation; U.S. Customs and Border Protection; U.S. Coast Guard Investigative Service; New York State Department of Corrections and Community Supervision, Office of Special Investigations; New York State Police; and the St. Regis Mohawk Tribal Police.  This case was prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.

ALBANY, NEW YORK – Albert Hessberg III, age 63, of Slingerlands, New York, appeared today in federal court on charges that he defrauded and stole money from his clients and former law firm.

The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.

A criminal complaint charges Hessberg with wire fraud and mail fraud.  Hessberg worked for 37 years in the Albany office of the law firm now known as Barclay Damon LLP, practicing in the area of trusts and estates.  According to the complaint, in March 2018, the law firm terminated Hessberg for cause.

Hessberg is accused of stealing and concealing the theft of at least $328,000 entrusted to him by clients, as well as diverting to himself payments for legal services that should have been made to Barclay Damon.  The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.

Hessberg appeared today before United States Magistrate Judge Christian F. Hummel, who ordered him released with conditions, pending further proceedings. 

If convicted, Hessberg faces up to 20 years in prison, a maximum $250,000 fine, 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 is being investigated by the FBI and being prosecuted by Assistant U.S. Attorney Michael Barnett.

ALBANY, NEW YORK – Ioan Rostas, a/k/a Ioan Angel, age 29, and a citizen of Romania, was sentenced today to time served (86 days in jail) for illegally re-entering 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.

As part of his guilty plea, Rostas admitted that he was removed from the United States to Romania on September 28, 2017.  On March 17, 2018, Border Patrol Agents arrested Rostas near Chateaugay, New York.  Rostas was in a group of four people who had entered the United States without inspection from Canada shortly before Border Patrol Agents encountered them in the woods near Chateaugay.    

Following sentencing, Rostas was remanded to the custody of the Department of Homeland Security, for removal proceedings.     

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

ALBANY, NEW YORK – Chad Knowlton, age 24, of Queensbury, New York, pled guilty today to distributing, receiving and possessing child pornography.

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

As part of his guilty plea, Knowlton admitted to using a custom-built desktop computer equipped with peer-to-peer file-sharing software to download and distribute child pornography.  Knowlton also admitted to using a smartphone to download additional child pornography.  Overall, Knowlton downloaded and retained more than 1,000 videos and images depicting child pornography. 

Sentencing is scheduled for October 9, 2018 before Senior United States Judge Thomas J. McAvoy.  Knowlton, who is detained pending sentencing, faces a minimum 5 years and up to 20 years in prison, a maximum $250,000 fine, 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. Knowlton will also be required to register as a sex offender upon his release from prison. 

Knowlton is also facing state charges alleging the sexual abuse of children in Warren County.  He is innocent unless and until proven guilty of those charges.

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

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 – Brennan McNeil, age 26, of Albany, was sentenced today to 210 months in prison for sexually exploiting a child for the purpose of producing child pornography.

The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.

As part of his guilty plea on March 5, McNeil admitted that, in early 2017, he produced a video of a 10-year-old child being subjected to sexually explicit conduct.  McNeil produced the video in North Carolina, where he lived at the time, and saved it on a thumb drive that he brought with him when he moved, in May 2017, from North Carolina to New York

Senior United States District Judge Thomas J. McAvoy also sentenced McNeil to a life term of post-imprisonment supervised release.  McNeil must also register as a sex offender upon his release from prison.

This case was investigated by the FBI, the Colonie Police Department, and the New York State Police, and was prosecuted by Assistant U.S. Attorneys Joseph A. Giovannetti and Katherine Kopita. 

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.

ALBANY, NEW YORK – Richard J. Sherwood, age 58, of Guilderland, New York, pled guilty today to money laundering and tax crimes, and admitted his role in stealing approximately $11.8 million from estates for which he served as an attorney and fiduciary. 

The announcement was made by United States Attorney Grant C. Jaquith; New York Attorney General Barbara D. Underwood; Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation; and James D. Robnett, Special Agent in Charge of the New York Field Office of IRS-Criminal Investigation.

Sherwood also pled guilty today, in Albany County Court, to grand larceny in the second degree, in a case brought by the New York Attorney General’s Office.

United States Attorney Grant C. Jaquith stated: “Richard Sherwood betrayed his clients and his profession when he stole $11.8 million from their estates.  His elderly clients, including one who suffered from dementia, planned to continue their philanthropy after their deaths by using their estates to support churches, charities, and civil organizations.  Instead of carrying out their wishes, as he was required to do by both legal and ethical obligations, Sherwood used his legal skills to divert and steal their money.  Any lawyer preying on elders should take notice that criminal conduct by attorneys will be aggressively investigated and prosecuted to the fullest extent of the law.” 

New York Attorney General Barbara D. Underwood said: “New Yorkers should be able to trust that their financial advisors will make sound decisions – not scheme to line their own pockets. We will continue to hold accountable those that try to game the system and violate the public trust.”

Sherwood, an attorney since 1988, practiced primarily in the area of trusts and estates.  Starting in about 2006, he provided estate planning and related legal services to Capital Region philanthropists Warren and Pauline Bruggeman, and to Pauline’s sister, Anne Urban, all of Niskayuna, New York.  Sherwood was advising the Bruggemans when, in 2006, they signed wills directing that all their assets go to charities, churches and civic organizations, aside from bequests to Anne Urban and Julia Rentz, Pauline’s other sister.

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

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

FBI Acting Special Agent in Charge Janelle M. Miller stated: “Richard Sherwood abused his position and defrauded clients who trusted him with their life savings.  This is a case about greed and abuse of trust.  The FBI will continue to work with our partners to ensure this kind of malicious behavior is investigated and prosecuted. Mr. Sherwood will now face serious consequences for his fraudulent actions.”

IRS-CI Special Agent in Charge James D. Robnett stated: “Richard Sherwood was entrusted to ensure the financial security of these innocent victims but instead chose to utilize his profession to unjustly enrich himself.  Attorneys who abuse their fiduciary responsibilities and commit their own financial crimes must be held responsible.”

Sherwood admitted that he and a co-conspirator stole $11,831,563, and that nearly $3.6 million was transferred outright to him, with an additional $1.96 million transferred to an entity, Empire Capital Trust, LLC, that he and the conspirator controlled.  Sherwood also admitted that he transferred to himself the Bruggeman family camp located on Galway Lake in Galway, New York. 

Sherwood’s co-conspirator is presumed innocent unless and until proven guilty. 

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

Sherwood also pled guilty to filing false federal tax returns in 2013 and 2015.  These returns were false because he did not report, as other income, about $4.7 million that he received from the fraudulent scheme. 

Sherwood faces up to 20 years in prison, a maximum fine of $250,000, and up to 3 years of post-imprisonment supervised release when he is sentenced 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. 

Sherwood has agreed to forfeit $3,742,211.65 that the United States Attorney’s Office and FBI have already seized from him, as well as the residence on Galway Lake that had previously belonged to the Bruggemans. 

Sherwood served as Guilderland Town Justice from 2014 until his arrest, on state charges, on February 23, 2018.  He resigned his position on March 5.

The federal case is being investigated by the FBI and IRS-CI, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.  Assistant U.S. Attorney Tamara B. Thompson is prosecuting the forfeiture aspects of this case. 

The state case is being prosecuted by Assistant Attorneys General Christopher Baynes and Matthew Peluso of the Attorney General’s Public Integrity Bureau, under the supervision of Bureau Chief Daniel G. Cort and Deputy Bureau Chief Stacy Aronowitz. The Criminal Justice Division is led by Executive Deputy Attorney General Margaret Garnett. 

The investigation was led by Investigator Mark Spencer of the Attorney General’s Investigations Bureau, under the supervision of Deputy Chief Investigator Antoine Karam. The Investigations Bureau is led by Chief Dominick Zarrella. Meaghan Scovello, Associate Forensic Auditor, provided the financial analysis. The Forensic Audit Section is supervised by Edward Keegan. Senior Analyst Sara Pogorzelski assisted in the investigation.

SYRACUSE, NEW YORK – Andrew Rowley, age 28, of Watertown, New York, was sentenced yesterday to serve 57 months in prison for possessing with intent to distribute cocaine and 3,4 Methylenedioxymethamphetamine (MDMA), also referred to as “ecstasy,” announced United States Attorney Grant C. Jaquith and New York State Police Superintendent George P. Beach II. After his imprisonment, Rowley will serve a 3-year term of supervised release. Rowley also agreed to forfeit a total of $100,685 in drug proceeds and two vehicles.

In pleading guilty Rowley admitted that on May 4, 2017, he possessed with intent to distribute approximately 616 grams of cocaine, and approximately 1,506 grams of MDMA, which were seized during the execution of a search warrant his residence.

This case was investigated by the New York State Police, the Metro-Jefferson Drug Task Force (Watertown, NY), and the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), and was prosecuted by Assistant U.S. Attorney Carl Eurenius.

SYRACUSE, NEW YORK – Tammy M. Martin, age 48, of Carthage, New York, was sentenced today to serve 90 years in prison for her conviction on three counts of 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).

The sentencing today follows Martin’s earlier plea of guilty during which she admitted that on at least 4 separate occasions in 2002, she and co-defendant Clif Seaway engaged the first of the 3 victims in sexually explicit conduct for the purpose of producing visual depictions. This criminal conduct resulted in the production of at least 30 separate files depicting the child engaged in sexually explicit conduct. Martin further admitted to the abuse of a second victim on at least 14 separate occasions from 2001 through 2007, producing at least 104 separate files depicting that abuse. Finally, Martin admitted that on at least 26 occasions from 2004 through 2008, she and Seaway engaged the third of their victims in sexually explicit conduct, producing at least 211 separate files of that abuse.

Martin was sentenced to serve the maximum sentence allowable under federal law, consisting of 30 years of imprisonment on each count of conviction to be served consecutively to one another.  If Martin is ever released from prison, she is sentenced to a term of supervised release for life, and required to register as a sex offender.

“Over a seven year period, Tammy Martin and Clif Seaway sexually exploited three children, and the 90-year sentence imposed reflects the depravity and gravity of those crimes,” said United States Attorney Grant C. Jaquith.  “Our commitment to prosecutions to protect children and secure just punishment for  their predators is unwavering, and we continue to seek sentences which ensure that those predators will never harm another child.”

"Today's sentence clearly demonstrates the serious nature with which the law enforcement community views crimes committed against children," said Kevin Kelly, Special Agent in charge of HSI Buffalo. "HSI and our partners will continue to be relentless in the aggressive pursuit of these cases, and the significant prison term handed down is an appropriate one and should serve as a stark warning about the consequences awaiting those involved in these acts."

For his part in the abuse of these and other children, Clif Seaway was sentenced on May 3, 2018 to serve 360 years in prison. 

Martin’s case was investigated by the New York State Police, and the United States Department of Homeland Security, Homeland Security Investigations (HSI). The case was prosecuted by Assistant U.S. Attorneys Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, and Carina Schoenberger.

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

ALBANY, NEW YORK – Angelina L. Cedeno, age 35, of Troy, New York, was sentenced today to 12 months in prison, to be followed by 3 years of supervised release, for distributing heroin in Albany County.

The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.

As part of her guilty plea on February 6, Cedeno admitted to distributing heroin in the Town of Bethlehem, Albany County, in August 2016.

This case was investigated by the FBI and New York State Police, and was prosecuted by Assistant U.S. Attorney Michael Barnett.

SYRACUSE, NEW YORK -- Arthur LaDuke, age 46, of Minoa, New York, and formerly of Oswego County, was sentenced today to serve one year and one day in prison for possessing pseudoephedrine, knowing it would be used to manufacture methamphetamine, announced United States Attorney Grant C. Jaquith, United States Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt of the New York Division, and New York State Police Superintendent George P. Beach II. LaDuke was also ordered to serve three years of supervised release after he is released from prison. 

As part of his guilty plea, LaDuke admitted that on approximately 21 occasions between October 2015 and January 2017, he purchased pseudoephedrine pills from different drug stores in and around Oswego County, New York, with an aggregate weight of approximately 50 grams.  LaDuke further admitted that he purchased the approximately 50 grams of pseudoephedrine knowing it was intended to be used in the manufacture of methamphetamine. Arthur LaDuke manufactured methamphetamine with the pills he himself purchased, as well as utilizing additional pills provided to him by others, for which he provided finished methamphetamine.  

This case was investigated by the New York State Police (NYSP), the New York State Intelligence Center (NYSIC), and the U.S. Drug Enforcement Agency DEA), and was prosecuted by Assistant U.S. Attorney Carl Eurenius

SYRACUSE, NEW YORK – A jury today voted to convict Peter W. Farnum, age 41, of Clifton Park, New York, of possessing child pornography, following a 2-week trial.

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

The evidence at trial established that Farnum, a former sergeant with the Saratoga County Sheriff’s Office, possessed more than 1,000 image and video files on his family computer that contained child pornography.  These included, among many others, image files that Farnum imported through the computer’s RealPlayer application while he conducted online research related to his position with the Sheriff’s Office and while his wife was in the hospital.

Following the verdict, Senior United States District Judge Norman A. Mordue remanded Farnum to custody pending sentencing on a date to be determined. Farnum faces up to 10 years in prison, a maximum fine of $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. Farnum will also have to register as a sex offender. 

This case was investigated by the FBI, with assistance from the Saratoga County Sheriff’s Office.   The case is being prosecuted by Assistant U.S. Attorney Joseph A. Giovannetti.

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

ALBANY, NEW YORK – On the 500th day of the Trump Administration, Attorney General Jeff Sessions and United States Attorney Grant Jaquith announced that the Department of Justice is taking a dramatic step to increase resources to combat violent crime, enforce our immigration laws, and help roll back the devastating opioid crisis.

In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys to assist in priority areas.  Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 additional immigration prosecutors. Many of the civil enforcement AUSAs will support the newly created Prescription Interdiction & Litigation Task Force, which targets the opioid crisis at every level of the distribution system.

“Under President Trump's strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis – and today we are sending in reinforcements,” said Attorney General Jeff Sessions. “We have a saying in my office that a new federal prosecutor is ‘the coin of the realm.’  When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed.  I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher.  These exceptional and talented prosecutors are key leaders in our crime fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades.”

In the Northern District of New York, three new AUSAs will be hired: one new AUSA will focus on violent crime, one will focus on civil enforcement, and one will focus on prosecuting immigration crimes. 

United States Attorney Grant Jaquith said: “We are grateful to Attorney General Sessions for allocating three additional Assistant United States Attorneys to the Northern District of New York.  These reinforcements will enhance our vigorous efforts to curtail violent crime, combat the opioids epidemic, and enforce criminal immigration laws throughout our large district, including our 310-mile border with Canada.”

ALBANY, NEW YORK – Joseph T. Clemente, Jr., age 34, of Latham, New York, was sentenced today to time served (6 days in jail) and 3 years of supervised release for illegally possessing a short-barreled rifle.

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

As part of his January 31, 2018 guilty plea, Clemente admitted that he intentionally removed the upper receiver of a rifle that he had purchased at a gun store, and replaced it with an upper receiver he purchased on the Internet, which he knew included a 9-inch barrel.  The resulting firearm he illegally possessed was a rifle with a barrel of less than 16 inches, also known as a short-barreled rifle.

This case was investigated by ATF and prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.

ALBANY, NEW YORK - A jury on Friday voted to convict Gary Dickens, age 29, of Brasher Falls, New York, and Richard Cruz, age 36, of the Bronx, New York, of conspiracy to traffic cocaine base (crack cocaine) in the Massena, New York, area. 

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

The evidence presented at the 5-day trial demonstrated that between January 2017 and September 4, 2017, Cruz supplied Dickens with crack cocaine on a regular basis.  Dickens picked up the crack cocaine himself and transported it to Massena or employed couriers, including Andre Murray and Emely Rosario, to transport the cocaine to Massena.  Dickens then distributed the drugs throughout the greater Massena area.  Carri Poliski and Tammy Phillips drove Dickens around the Massena area to help him distribute the drugs.  Dickens also directed the wiring of money via Western Union to Cruz in order to purchase more crack cocaine.

The jury found Dickens not guilty of being a felon in possession of a firearm.

The following people have pled guilty or been convicted at trial of conspiracy to possess with the intent to distribute and to distribute cocaine base, before United States District Judge Mae A. D’Agostino:

Name

Age

Residence

Charge

Sentencing Date

Gary Dickens

29

Brasher Falls, NY

Cocaine base conspiracy > 28 grams

10/5/2018

Richard Cruz

36

Bronx, NY

Cocaine base conspiracy > 28 grams

10/5/2018

Andre Murray

19

Bronx, NY

Cocaine base conspiracy

8/7/2018

Emely Rosario

30

Bronx, NY

Cocaine base conspiracy

7/12/2018

Tammy Phillips

48

Norwood, NY

Cocaine base conspiracy

7/12/2018

Carri Poliski

46

Norwood, NY

 

Cocaine base conspiracy

6/28/2018

Dickens faces at least 5 years and up to 40 years in prison, a fine of up to $5 million, and a term of post-imprisonment supervised release of at least 5 years and up to life.  Cruz faces at least 10 years and up to life in prison, a fine of up to $8 million, and a supervised release term of at least 8 years and up to life.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case is the result of the close cooperative efforts of HSI, led by the Massena Resident Office, in conjunction with U.S. Customs and Border Protection, Border Patrol, New York State Police, St. Lawrence County Sheriff’s Office, Massena Police Department, Potsdam Police Department, and Ogdensburg Police Department.  The case is being prosecuted by Assistant U.S. Attorneys Elizabeth Rabe and Katherine Kopita.

 

SYRACUSE, NEW YORK – Calvin Weaver, age 27, of Syracuse, was sentenced yesterday to serve 87 months in prison, as well as a 3-year term of supervised release, in connection with his convictions for being a  felon in possession of a firearm, possession of a firearm with an obliterated serial number, and simple possession of cocaine.

The announcement was made by United States Attorney Grant C. Jaquith; Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division; and Frank Fowler, Chief of the Syracuse Police Department.

Weaver pled guilty to all three charges following a decision by Chief U.S. District Judge Glenn T. Suddaby denying Weaver’s motion to suppress evidence found on the day of his arrest by Syracuse Police.  As part of his guilty plea, Mr. Weaver admitted that on February 15, 2016, after he had been convicted of a felony, the defendant possessed a handgun with an obliterated serial number as well as a small amount of cocaine.

This case was investigated by the ATF and the Syracuse Police Department, and was prosecuted by Assistant U.S. Attorney Robert S. Levine.

ALBANY, NEW YORK – Bryant C. Hardnett, age 45, of Cohoes, New York, pled guilty yesterday to stealing the personally identifying information of children and using it to falsely claim the children as his own dependents on his tax returns.

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

As part of his plea, Hardnett admitted that he formerly operated a tax preparation business, BH Tax Services, from a storefront in downtown Troy, New York. Through that business, Hardnett met a woman who asked him to file a tax return in her name for the year 2013.  She provided her two children’s personally identifying information, including their names and Social Security Numbers.  Hardnett never filed a tax return in the woman’s name, and instead falsely claimed the two children as his nephews and dependents on his tax returns filed with the IRS in 2013, 2014 and 2015.

Hardnett faces at least 2 years and up to 15 years in prison, as well as up to 3 years of post-imprisonment supervised release, when he is sentenced on September 19, 2018 by United States District Judge David N. Hurd in Utica, New York.  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. Hardnett has also agreed to pay at least $25,000 in restitution to the IRS, and to be permanently enjoined from ever filing a tax return for anyone other than himself.

As part of the same investigation, Guy Rochelle, age 59, of Troy, pled guilty to filing false tax returns for the tax years 2011 through 2014.  Hardnett prepared these returns, in which Rochelle falsely claimed two children as his nieces and dependents; Hardnett supplied the children’s personally identifying information and filed the returns. Rochelle faces up to 3 years in prison when he is sentenced on September 10, 2018 by Senior United States District Judge Thomas J. McAvoy.

These cases were investigated by the New York Field Office of IRS-Criminal Investigation, and are being prosecuted by Assistant U.S. Attorneys Michael Barnett and Alicia G. Suarez.

ALBANY, NEW YORK – Mathieu Forget, age 32, of St-Anicet, Quebec, Canada, was sentenced yesterday to 120 months in prison for conspiring to distribute marijuana.

The announcement was made by United States Attorney Grant C. Jaquith and Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt of the New York Division.

Following his extradition from Canada, Forget admitted that he and his co-conspirators smuggled thousands of pounds of marijuana into the United States from Canada through the Akwesasne Mohawk Indian Reservation.   The marijuana was distributed throughout the northeastern United States.  Forget admitted to transporting hundreds of pounds of marijuana across the St. Lawrence River in a boat at least 20 times, and on 30 other occasions, helping transport hundreds of pounds of marijuana smuggled in vehicles to locations in New York and New England.

Chief United States District Judge Glenn T. Suddaby also imposed a 5-year term of supervised release following Forget’s term of imprisonment.  Forget’s co-defendant, Allan Peters, was sentenced on February 12, 2015 to 144 months in prison for his role in the conspiracy.  A third defendant, Colin Stewart, pled guilty and is awaiting sentencing on August 8, 2018.

This case was the result of a joint investigation by the DEA, Homeland Security Investigations (HSI), the United States Border Patrol, U.S. Customs and Border Protection Air and Marine Operations, the New York State Police, the St. Regis Mohawk Tribal Police Department, the Akwesasne Mohawk Police Services, and the District Attorneys of Franklin and Clinton Counties.

The case is being prosecuted by Assistant U.S. Attorneys Katherine E. Kopita and Douglas G. Collyer.

ALBANY, NEW YORK – Thirteen people were arrested this week as part of a federal and state investigation into Medicaid fraud allegedly committed by the owners and operators of medical transportation companies based in Essex County.

The announcement was made by:

• United States Attorney Grant C. Jaquith;
• New York State Police Superintendent George P. Beach II;
• Essex County District Attorney Kristy Sprague;
• New York State Inspector General Catherine Leahy Scott; and
• Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

Criminal complaints were filed against the following people:

Name

Age

Residence

Charges

Khalid M. Chadder

48

Ticonderoga, New York

Federal charges -- Conspiracy to commit health care fraud; offering and conspiring to pay bribes and kickbacks to Medicaid beneficiaries

State charges -- Grand larceny in the third degree; falsifying business records in the first degree; offering a false instrument for filing in the first degree

Qaiser Gondal

46

Ticonderoga, New York

Federal charges -- Offering and conspiring to pay bribes and kickbacks to Medicaid beneficiaries

State charges – Grand larceny in the second degree; falsifying business records in the first degree; failure to secure compensation

Anthony Armstrong

29

Port Henry, New York

Federal charges – Offering and conspiring to pay bribes and kickbacks to Medicaid beneficiaries

State charges – Grand larceny in the third degree; falsifying business records in the first degree; offering a false instrument for filing in the first degree

Waqas Nauman

36

Queensbury, New York

Federal charges -- Conspiracy to commit health care fraud

State charges -- Grand larceny in the second degree; falsifying business records in the first degree; failure to secure compensation

Khurram Gondal, aka Khurram Choudhary

37

Ticonderoga, New York

Federal charges -- Conspiracy to commit health care fraud

State charges – Grand larceny in the first, second and third degrees; falsifying business records in the first degree; failure to secure compensation

Sana Ulla Chadder

55

Ticonderoga, New York

State charges – Grand larceny in the first degree; falsifying business records in the first degree; failure to secure compensation

Maryam Qaiser

41

Ticonderoga, New York

State charges – Grand larceny in the second degree; falsifying business records in the first degree; failure to secure compensation

Saleem Hayat

34

Port Henry, New York

State charges – Grand larceny in the second degree; falsifying business records in the first degree; failure to secure compensation

Muhammad Jahangir

23

Queensbury, New York

State charges – Grand larceny in the second degree; failure to secure compensation (misdemeanor)

Samone Marshall

27

Ticonderoga, New York

State charges – Grand larceny in the second degree; failure to secure compensation (misdemeanor)

Chaudary Khan

54

Keesville, New York

State charges – Grand larceny in the first degree; falsifying business records in the first degree; failure to secure compensation

Tukk Simpson

48

Crown Point, New York

State charges – grand larceny in the second degree; falsifying business records in the first degree

Arshad Nazir

53

Plattsburgh, New York

Federal charges – Conspiracy to commit health care fraud; offering and conspiring to pay bribes and kickbacks to Medicaid beneficiaries

State charges – Grand larceny in the first degree; falsifying records in the first degree; failure to secure compensation

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

United States Attorney Grant C. Jaquith stated: “These charges allege the theft and waste of taxpayer dollars by the owners and operators of medical transportation companies.  This week’s arrests should put all companies on notice that we will not tolerate the abuse of the public fisc through such schemes as false billing and kickbacks paid to beneficiaries, nor the corruption of medical transportation services on which many people legitimately rely to get to important appointments.”

Essex County District Attorney Kristy Sprague said: “Corrupt practices within the medical transportation business have been spreading for years like a cancer in our county and throughout the region. The arrests this week should make it crystal clear to any medical transport companies even thinking about breaking the law that my office and my law enforcement partners will be coming after them and will prosecute them to the fullest. These cases are the result of extraordinary teamwork by state and federal law enforcement partners and were made possible through the perseverance of the New York State Police and Inspector General Catherine Leahy Scott.”

New York State Police Superintendent George P. Beach II said: “These arrests are the culmination of a two-year long investigation into corruption involving Medicaid transportation providers, who were operating an elaborate scheme to defraud Medicaid and steal taxpayer dollars.   I commend the efforts of State Police members and our federal, state and local partners for their diligence on this case. We simply will not stand for those who defraud taxpayers, and victimize customers and other legitimate providers, for their own personal gain.”

FBI Acting Special Agent in Charge Janelle M. Miller stated: “Individuals who defraud health care programs place additional burdens and costs on the health care system, which affects every American citizen.  The FBI will continue to work closely with our law enforcement partners to identify any individuals who defraud the system for personal gain.”

New York State Inspector General Catherine Leahy Scott stated: “With these medical transport companies it was the New York taxpayers who were taken for a ride. For years, the Northway corridor has been plagued with corruption in the medical transport industry, and this week’s law enforcement actions send a clear message that those who abuse the Medicaid and Workers’ Compensation systems for illicit gains will be relentlessly pursued and prosecuted. I sincerely thank our state and federal law enforcement partners for their extraordinary efforts and cooperation, and particularly District Attorney Sprague for her tremendous dedication and focus on bringing these cases to fruition.”

The Medicaid program is a federal and state health care program that provides health care benefits to individuals and families who meet specified financial and other eligibility requirements, and certain other individuals who lack adequate resources to pay for medical care.  In general, Medicaid can cover the cost of getting to and from a medical appointment when a beneficiary does not have other, suitable transportation.

The federal charges are being investigated by the FBI, and the New York State Police’s Special Investigations Unit and Troop B, and are being prosecuted by Assistant U.S. Attorney Michael Barnett.

The state charges are being investigated by the New York State Police’s Special Investigations Unit and Troop B, as well as the Office of the New York State Inspector General, and are being prosecuted by the Office of Essex County District Attorney Kristy Sprague.

Several additional agencies are assisting in this investigation, including the Office of the New York State Comptroller, Division of Investigations; New York State Attorney General’s Office, Medicaid Fraud Control Unit (MFCU); Essex County Sheriff’s Office; Homeland Security Investigations (HSI); the Office of Inspector General for the U.S. Department of Health and Human Services (HHS-OIG); and the New York State Department of Labor.