Northern District of New York
Press releases recorded for this federal judicial district.
Ecuadorian Man Arrested in North Hudson, NY Sentenced for Illegal Re-entry into the United StatesRead the Press Release
ALBANY, NEW YORK – Jamie Paredes Lojano, 29, of Ecuador (currently living in Colonie, New York), was sentenced today to time served (57 days in jail), followed by a one year period of supervised release, for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
As part of his guilty plea, Paredes Lojano admitted that he is an alien, a citizen of Ecuador, and that he illegally returned to the United States after he was previously removed to Ecuador on July 21, 2010.
On June 8, 2017, Paredes Lojano was stopped and arrested by Border Patrol Agents on Interstate 87 near North Hudson, in Essex County New York.
Following the sentencing, Paredes Lojano was remanded to the custody of the Department of Homeland Security, which will place him into removal/deportation proceedings.
The case was investigated by United States Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Schenectady Man Sentenced to 67 Months on Firearms ChargesRead the Press Release
NEW YORK – Keeshawn Nesbitt, a/k/a Keesshawn A. Nesbitt, a/k/a Big Homie, age 37, of Schenectady, New York, was sentenced today to 67 months in prison for unlawfully possessing three firearms and ammunition.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
The sentence arose out of three separate incidents in which Nesbitt, who was legally prohibited from possessing firearms because of prior felony convictions, unlawfully possessed and sold firearms in Schenectady and unlawfully possessed ammunition in the Bronx. Specifically, on May 2, 2014, Nesbitt unlawfully possessed and sold two firearms, a Springfield Armory, Model XD, .40-caliber pistol and a Raven Arms Model MP25, .25-caliber pistol, and on May 14, 2014, Nesbitt unlawfully possessed and sold a Norinco Model 54-1, .762-caliber pistol in Schenectady. On March 8, 2015, Nesbitt unlawfully possessed seven 9-millimeter ammunition cartridges in the Bronx.
Nesbitt pled guilty to the Bronx conduct on July 7, 2016 and to the Schenectady conduct on March 15, 2017. The Bronx case was brought by the United States Attorney’s Office for the Southern District of New York, and was transferred to the Northern District of New York to be resolved with the Schenectady case.
Senior United States District Judge Lawrence E. Kahn also imposed a 3-year term of supervised release, which will start after Nesbitt is released from prison.
The case was investigated by the Federal Bureau of Investigation, the Schenectady Police Department, the Schenectady County District Attorney’s Office, and the New York City Police Department, and was prosecuted by Assistant United States Attorney Sean O’Dowd in the Northern District of New York and Assistant United States Attorney David Zhou in the Southern District of New York.
Former Plattsburgh Resident Admits Half a Million Dollars in Online FraudRead the Press Release
ALBANY, NEW YORK – Jared R. Hudson, 39, formerly of Plattsburgh, New York, pled guilty today to conspiracy to commit wire fraud, wire fraud, access device fraud, and aggravated identity theft.
The announcement was made by Acting United States Attorney Grant C. Jaquith, Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Plattsburgh Police Chief Kenneth R. Parkinson.
As part of his plea, Hudson admitted that from October 2009 until December 13, 2014, he devised a scheme to defraud banks, merchants, and individual consumers by obtaining stolen credit card numbers, bank account numbers, expiration dates, security codes, answers to security questions, and other personal identification information that was used to purchase goods electronically and to fraudulently transfer and attempt to transfer funds electronically.
Initially, the defendant used stolen credit card numbers belonging to others to order merchandise online and had the merchandise shipped to him. Hudson used the stolen personal identification information to sign up for credit cards in other people’s names, which the defendant had sent to him for use in purchasing merchandise online. The scheme to defraud evolved into opening investment accounts in the defendant’s name which were funded with money taken from the victims’ bank accounts using stolen account numbers, routing numbers, identification, and banking security information. As part of his guilty plea, Hudson admitted at least $510,544.49 in actual and intended losses from his victims.
Hudson has been detained in custody since his arrest on June 24, 2016. Upon sentencing on November 29, 2017, he faces at least 2 years and up to 20 years in prison. The court may also impose a fine of up to $250,000 on each count of conviction. Sentences are imposed by a judge based on the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
This case is being investigated by the Federal Bureau of Investigation (FBI) and the Plattsburgh Police Department, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Brazilian Woman Admits Illegal Re-entry into the United StatesRead the Press Release
ALBANY, NEW YORK – Carla Cristina De Paula, 39, of Brazil, pled guilty today to illegal re-entry into the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Steven Bronson, United States Customs and Border Protection Port Director for the Champlain Port of Entry.
Paula, an alien citizen of both Brazil and Italy, was removed from the United States to Brazil on July 28, 2008, following a 2008 New Jersey felony conviction. On June 25, 2017, De Paula was arrested as she attempted to enter the United States from Canada as a passenger on a commercial bus, at the Champlain Port of Entry. De Paula admitted that she attempted to re-enter the United States without permission following the 2008 removal.
As a result of her conviction, De Paula faces up to 10 years in prison and a fine of up to $250,000 when she is sentenced by Senior U.S. District Judge Norman A. Mordue on November 1, 2017. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The case was investigated by United States Customs and Border Protection, Champlain, NY, and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Scotia Man Indicted for ArsonRead the Press Release
ALBANY, NEW YORK – On July 27, 2017, a federal grand jury returned a one-count indictment charging Duane E. Griffin, 35, of Scotia, New York with arson, announced Acting United States Attorney Grant C. Jaquith, and Ashan M. Benedict, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) New York Field Division.
The indictment alleges that on March 17, 2012, Griffin set fire to the building at 605 Union Street, Schenectady, New York.
The charge filed against Griffin carries a maximum sentence of 20 years in prison and a mandatory minimum sentence of five years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Griffin was arraigned on July 31, 2017 in Albany, New York, before United States Magistrate Judge Daniel J. Stewart, and released pending a trial scheduled for October 2, 2017 before Senior United States District Court Judge Gary L. Sharpe.
The charge in the indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the ATF and the Schenectady Fire Department, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Ohio Man Sentenced to Thirty-Five Years for Bombing of Oneida County, New York Victim in May of 2016Read the Press Release
SYRACUSE, NEW YORK – Keith Seppi, 59, of Conneaut, Ohio, was sentenced today in United States District Court to serve thirty-five (35) years in prison, following his guilty plea to using a destructive device in relation to a crime of violence, and possessing a destructive device in furtherance of a crime of violence, announced Acting United States Attorney Grant C. Jaquith and U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Ashan M. Benedict. In imposing sentence, the Hon. Brenda K. Sannes also ordered the defendant to serve a term of five (5) years of supervised release following his term of incarceration.
As part of his guilty plea, Seppi admitted that he built a bomb at his Ohio home that was to be activated by motion and disguised to look like a standard parcel package. Seppi transported the bomb from Ohio to Floyd, New York, where he put it in the victim’s (Alan Dobransky) driveway near midnight on May 28, 2016, intending that it would explode when it was moved. The next morning, the victim attempted to pick up the bomb causing it to detonate, resulting in his sustaining severe injuries and burns. Alan Dobransky survived the explosion but was hospitalized for several weeks.
As part of his plea agreement, the defendant also admitted that in May of 2016 he learned that the bomb victim (Alan Dobransky) had accused Seppi’s sister-in-law of stealing money from Dobransky’s mother and had threatened to report the alleged thefts to law enforcement authorities in Ohio. Alan Dobransky’s mother had been living with and cared for by Seppi’s sister-in-law in her Conneaut, Ohio residence. Shortly after learning of the theft accusations against his sister-in-law, and the threat to report the alleged thefts to local law enforcement authorities in Ohio, Seppi constructed the bomb and later planted it in Alan Dobransky’s driveway in New York.
“Keith Seppi’s cold, calculating, and cowardly crime earned a sentence that will put him in prison for the next thirty-five years. The coordination and dedication of federal, state, and local law enforcement agencies from New York to Ohio pinpointed the perpetrator of this abominable attack and his accomplices and resulted in their convictions in county and federal court. We wish the victim strength and improvement in his recovery, and hope this measure of justice affords some solace,” said Acting U.S. Attorney Grant C. Jaquith.
Special Agent in Charge Ashan M. Benedict said, “Today’s sentence is effectively a life sentence for Keith Seppi. It is an appropriate punishment for his brazen, cowardly, and violent attack on Mr. Dobransky. Though Seppi was able to strike at his intended target, he ignored the extreme danger in the device’s transportation, and the indiscriminate nature of the explosive device once it was left in Mr. Dobranky’s driveway. The package bomb could have easily been picked up by an unintended victim, or others could have been near the device when it initiated. These possibilities were entirely outside the control of Seppi once the device was planted. The plot to silence Mr. Dobrasnky failed, but the disguised bomb left Mr. Dobransky with serious injuries requiring weeks of hospitalization. We continue to wish Mr. Dobransky a full recovery, and would like to extend our gratitude to the criminal investigators and prosecutors for their superb efforts in speedily bringing Seppi to justice.”
Oneida County District Attorney Scott McNamara said, “I would first like to recognize the victim, Alan Dobransky, as we all continue to wish him a full and speedy recovery from the injuries sustained as a result of this bombing.
I would like to thank all of the members of local, state and federal law enforcement who spent countless hours to identify the perpetrators of this heinous attack and bring them to justice. In particular I would like to thank the Oneida County Sheriff's Office, New York State Police, New York State Department of Corrections and Community Supervision, Office of Special Investigations, City of Utica Police Department, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, Ashtabula Sheriff and Prosecutor (OH), Conneaut Police (OH).
I would also like to thank former U.S. Attorney Rick Hartunian, Acting U.S. Attorney Grant Jaquith, and the U.S. Attorney’s Office, particularly Assistant U.S. Attorneys Steve Green and Nico Commandeur for taking the lead on the investigation of federal charges against Keith Seppi and sending the strong and clear message that persons involved in the production and deployment of improvised explosive devices will be prosecuted to the fullest extent of our laws.
I would also like to recognize First Assistant District Attorney Dawn Lupi and Bureau Chief Assistant District Attorney, and Special Assistant U.S. Attorney, Grant Garramone for all of the hard work that went into securing convictions for Keith Seppi, Cindy Shields and Donna Seppi in Oneida County Court for violations of New York State law. The success of this investigation is the direct result of the cooperation that occurred between all of the law enforcement agencies involved.”
Oneida County Sheriff Robert Maciol said, “Although the incident was extremely concerning on many levels, all those involved in the response and investigation, leading to the apprehension of the suspect, worked together flawlessly. This case truly displayed the effectiveness of collaboration between law-enforcement agencies at its best. The members of law-enforcement directly involved in this incident should be given all the credit for the precision and the expedience that brought closure to this matter. We are thankful the victim of this attack is recovering and that he will receive justice through the works of everyone involved.”
New York State Police Superintendent George P. Beach II said, “This case should send a strong message that we will not tolerate these kinds of pre-meditated, violent acts, and they will be prosecuted to the full extent of the law. This defendant admitted to carrying out the plot that left a state correction officer with serious injuries. I am proud of the outstanding work done by our members and law enforcement partners in bringing this case to justice.”
This case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Oneida County Sheriff’s Office and the New York State Police and was prosecuted by Assistant U.S. Attorneys Stephen C. Green and Nicolas Commandeur.
Former U.S. Postal Employee Convicted of Mail Theft, Bank Fraud, and Aggravated Identity TheftRead the Press Release
BINGHAMTON, NEW YORK – Melissa Elliott of Binghamton, a 27 year old former U.S. Postal Employee, was convicted on Friday by a federal jury in Binghamton, New York of 14 counts relating to Bank Fraud, Aggravated Identity Theft, and Theft and Destruction of Mail. The announcement was made by Acting United States Attorney Grant C. Jaquith and Special Agent-in-Charge Eileen Neff, Northeast Area Field Office, U.S. Postal Service Office of Inspector General.
The jury convicted Elliott of Bank Fraud and Aggravated Identity Theft, finding that between July 2014 and April 2015 she opened several bank credit card accounts, and obtained credit cards from financial institutions, by stealing and using the identity, including the social security number and date of birth, of a woman Elliott knew. Elliott then used the cards to fraudulently make purchases and pay personal debts amounting to over $57,000.
The jury also found Elliott guilty of Theft of Mail and Destruction of Mail for destroying and stealing mail while she worked as a postal clerk at the Cortland postal facility in December 2015 and January of 2016. Elliott destroyed some of the mail entrusted to her, and stole the contents of some of that mail, including gift cards and cash.
Elliott will be sentenced by Hon. Thomas J. McAvoy on November 20, 2017. She faces a maximum sentence of 30 years imprisonment and a $1,000,000 fine for Bank Fraud, with a mandatory 2-year consecutive imprisonment term for Aggravated Identity Theft, and a maximum term of 5 years imprisonment for the Theft and Destruction of U.S. Mail. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by U.S. Postal Service Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Misdemeanor Immigration Prosecutions – July 2017Read the Press Release
ALBANY, NEW YORK – The following is a summary of misdemeanor immigration prosecutions from July 2017:
Marcelo Chavez-Vera, a citizen of Mexico, was sentenced on July 20, 2017 to time served (14 days in jail) following his guilty plea to illegally entering the United States. Chavez-Vera admitted that on July 7, 2017, he entered the United States by boat from Canada on the Akwesasne reservation, where he was then picked up by an acquaintance driving a vehicle. Acting on a civilian tip, Border Patrol stopped the vehicle and arrested him.
Carlos Olivar-Varon, a citizen of Mexico, was sentenced on July 20, 2017 to 20 days in jail following his guilty plea to illegally entering the United States. Olivar-Varon admitted that on July 7, 2017, he entered the United States by boat from Canada on the Akwesasne reservation, where he was then picked up by an acquaintance driving a vehicle. Acting on a civilian tip, Border Patrol stopped the vehicle and arrested him.
Mexican Citizen Sentenced for Immigration FraudRead the Press Release
ALBANY, NEW YORK – Santiago Cayetano-Diaz, age 22, and a citizen of Mexico, was sentenced today to time served (60 days in jail) for immigration fraud.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas P. Brophy, Acting Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Cayetano-Diaz admitted that he possessed a counterfeit alien registration receipt card (commonly known as a green card) in Saratoga Springs, New York, on May 30, 2017, when he was arrested by ICE-ERO officers. Cayetano-Diaz also admitted that he is a citizen of Mexico, and that he was in the United States unlawfully.
Following his sentencing, Cayetano-Diaz was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Guatemalan Man Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Miguel Angel Mauricio-Ramirez, age 35, and a citizen of Guatemala, was sentenced today to time served (24 days in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas P. Brophy, Acting Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Mauricio-Ramirez admitted that he is a citizen of Guatemala, and that he illegally returned to the United States after he was removed to Guatemala, under the name Esvin Cano, on January 8, 2007.
On July 3, 2017, Mauricio-Ramirez was arrested by ICE officers in Kinderhook, New York.
Following the sentencing, Mauricio-Ramirez was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Albany Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Amado Colon, age 21, of Albany, New York, pled guilty today to distributing, receiving and possessing child pornography.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Colon admitted that in June 2014, he posted child pornography images to an image-sharing web site based in Russia, allowing visitors to the site to view the images. He also received, from others, the username and password information for 8 Dropbox remote storage accounts, each of which contained hundreds of images of child pornography. Colon then took exclusive control over these accounts, and the child pornography in them, by changing the accounts’ usernames and passwords. Colon also admitted to possessing child pornography files on several electronic devices found in his house.
Colon, who was ordered to jail upon his plea of guilty, faces at least 5 years and up to 20 years in prison, to be followed by supervised release of at least 5 years and up to life, and a maximum $250,000 fine, when he is sentenced on November 20, 2017 by Senior United States District Judge Gary L. Sharpe. Sentences are imposed by a judge based on the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
This case was investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant United States Attorney Michael Barnett.
Schenectady Man Sentenced to 63 Months on Firearm and Drug ChargesRead the Press Release
ALBANY, NEW YORK – Edwin Ferrer, age 44, of Schenectady, New York, was sentenced today to 63 months in prison for unlawfully possessing a handgun, ammunition, and crack cocaine.
The announcement was made by Acting 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 29, 2017, following a three-day trial, a jury voted to convict Ferrer of unlawfully possessing a firearm and ammunition, as well as a small quantity of crack cocaine. The evidence presented at trial showed that on December 18, 2015, Ferrer was driving his Cadillac SUV in Schenectady when he accidentally shot himself in the leg with his Smith & Wesson pistol. Investigators searched his SUV and recovered the pistol, six rounds of ammunition, and approximately a quarter of a gram of crack cocaine. As a felon, Ferrer was prohibited from possessing the pistol and ammunition.
United States District Judge Mae A. D’Agostino also imposed a 3-year term of supervised release, which will start after Ferrer is released from prison.
This case was investigated by the ATF and the Schenectady Police Department, and was prosecuted by Assistant U.S. Attorney Rick Belliss.
Saratoga County Man Arrested on Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK - Peter Farnum, age 41, of Ballston Lake, New York, appeared today in federal court on charges that he received and possessed child pornography.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The complaint filed against Farnum alleges that between October 2015 and April 2016, he used a home computer to download and store thousands of files containing child pornography.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted of all charges, Farnum faces at least 5 years and up to 20 years in prison, to be followed by supervised release of at least 5 years and up to life, and a maximum $250,000 fine. Sentences are imposed by a judge based on the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, with the assistance of the Saratoga County Sheriff’s Office, and is being prosecuted by Assistant United States Attorney Joseph A. Giovannetti.
Los Angeles Men Convicted for Running Nationwide Synthetic Drug Trafficking RingRead the Press Release
SYRACUSE, NEW YORK – A jury voted today to convict Andrew Raymond and Brian Requena, both of Los Angeles, on drug trafficking and money laundering charges related to their operation of a nationwide synthetic drug trafficking ring.
The announcement was made by Acting United States Attorney Grant C. Jaquith; Special Agent in Charge James R. 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.
Acting United States Attorney Grant Jaquith stated: “Synthetic drugs are a scourge on our community and communities across the country. They masquerade as innocuous substances like potpourri and incense, but are in fact toxic and send many users to the hospital or to a worse fate. The defendants, operating from Los Angeles, made millions by spreading this poison nationwide in commercial packaging bearing brand names like Twilite, Black Diamond, Platinum XXX, Get Real, and No Mames. Now they face the prospect of years in prison, as well as forfeiture of their ill-gotten gains. Their convictions today demonstrate that we will investigate and prosecute synthetic drug traffickers to the fullest extent of the law, working with our dedicated law enforcement partners.”
DEA Special Agent in Charge James R. Hunt stated: “These defendants manufactured synthetic cannabinoids and then distributed them nationwide, including in the upstate New York area. Due to diligent police work, these individuals were found guilty today and can no longer distribute these drugs, which have terrible public health impacts.”
IRS-CI Special Agent in Charge James D. Robnett stated: “CI is committed to using its expertise in investigating money laundering and other financial crimes to take down major drug traffickers such as these defendants.”
Raymond and Requena were convicted, following an 11-day trial, of conspiring to distribute synthetic drugs and launder money. The trial evidence demonstrated that they 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. At the height of their drug trafficking conspiracy, they were each making approximately $100,000 per week, and they had a large team of employees who manufactured, shipped and sold their products. Three other members of this conspiracy previously pled guilty to similar charges.
Documents found at the defendants’ warehouses in Los Angeles and on their computers showed that they understood their synthetic substances were controlled by federal drug laws. Additionally, the defendants went to great lengths to evade detection by law enforcement, including by setting up shell companies, using P.O. boxes to divert attention from the warehouse where they manufactured their product, and putting their company (Real Feel Products, Inc.) and all of its bank accounts in Requena’s name after DEA and other law enforcement agencies executed a search warrant on the defendants’ warehouse in February 2014.
The trial evidence also demonstrated 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.
Raymond and Requena, who were ordered to jail following the jury verdict, will be sentenced by Senior United States District Judge Norman A. Mordue on December 1, 2017. They each face up to 20 years in prison on each count of conviction, a fine of up to $5 million, and forfeiture money judgements in excess of $10 million in addition to any fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by DEA, 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.
Florida Man and Woman Charged with Wire Fraud ConspiracyRead the Press Release
ALBANY, NEW YORK – Robert F. Stout, age 51, and Kasey N. Riley (a/k/a Kasey Stout), age 33, of Windermere, Florida, were charged today with conspiracy to commit wire fraud relating to the sale of illegal activation keys for Microsoft products.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
According to a criminal information, Stout and Riley advertised Microsoft software products for sale online, using a variety of sham business names. Stout and Riley purchased unauthorized activation keys from various websites – including wholesaledwindows8key.com, buy2010key.net, cheapkeyoffer.com, godkey.net, and Alibaba – and provided those unauthorized activation keys, in exchange for PayPal payments, to customers throughout the United States. Stout and Riley received at least $1,480,227 from customers in exchange for providing them with the unauthorized, and often invalid, activation keys.
Stout and Riley each face up to 20 years in prison, up to 3 years of post-imprisonment supervised release, and a fine of up to $250,000 or twice the gain or loss caused by the offense. 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 Albany Field Office of the FBI and the Orlando Field Office of Homeland Security Investigations (HSI), part of Immigration and Customs Enforcement (ICE). It was prosecuted by Assistant U.S. Attorney Wayne A. Myers and Middle District of Florida Special Assistant U.S. Attorney Christina R. Downes, on assignment from the Office of the Principal Legal Advisor, ICE.
Cohoes Man Sentenced to 151 Months for Child Pornography OffensesRead the Press Release
ALBANY, NEW YORK – Paul A. Light, age 47, of Cohoes, New York, was sentenced today to 151 months in prison for distributing, receiving, and possessing child pornography.
The announcement was made by Acting United States Attorney Grant C. Jaquith and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his March 27, 2017 guilty plea, Light admitted that between March, 2015 and October, 2015 he used the Internet and a peer-to-peer file sharing program to receive and distribute multiple child pornography files. Light further admitted that he used various electronic storage devices to possess hundreds of child pornography video files and thousands of child pornography still image files.
Senior United States District Judge Gary L. Sharpe also imposed a 10-year term of supervised release, which will start after Light is released from prison. Judge Sharpe also ordered Light to pay a total of $142,500 in restitution to 15 victims whose images Light possessed. As a result of his conviction, Light will be required to register as a sex offender after leaving prison.
This case was investigated by Homeland Security Investigations (HSI) and was prosecuted by Assistant U.S. Attorney Rick Bellis.
Former Otsego County Undersheriff Sentenced for Possession and Sale of Stolen FirearmsRead the Press Release
BINGHAMTON, NEW YORK – Arnold Bruce Carroll, 75, of Maryland, New York, was sentenced yesterday in federal court following his earlier plea of guilty to Possession of Stolen Firearms and Sale of a Stolen Firearm, announced Acting United States Attorney Grant C. Jaquith.
Senior United States District Judge Thomas McAvoy sentenced Carroll to five years probation as well as imposing a fine in the amount of $10,000 and ordered him to perform 150 hours of community service. Carroll surrendered the stolen firearms to the FBI in the early stages of the investigation.
As part of his guilty plea on February 3, 2017, Carroll admitted that between 1995 and 2007 he was employed as Undersheriff at the Otsego County Sheriff’s Office, where he was also the sole evidence custodian for the agency and was directly responsible for the maintenance and disposal of all evidence recovered by the agency, including firearms. On numerous occasions between 1995 and 2007, Undersheriff Carroll stole 73 firearms from the evidence locker and falsely recorded on Sheriff’s Office records that the firearms had been destroyed pursuant to departmental policy. Instead, without the knowledge, approval, or authorization of anyone at the Sheriff’s Office, Carroll took the firearms to his house, where he possessed them. Further, on a number of occasions, all of which took place after the defendant retired from the Otsego County Sheriff’s Department, Carroll sold some of the stolen firearms to a gun store. On September 28, 2012, Carroll sold a stolen Smith and Wesson .44 magnum revolver to a third party (as charged in Count 2 of the information).
This case was investigated by the Federal Bureau of Investigation (FBI), Syracuse Resident Agency, the Otsego County Sheriff’s Office, and prosecuted by Assistant United States Attorneys Carl Eurenius and Carina Schoenberger.
East Greenbush Man Resentenced to 20 Years for FraudRead the Press Release
ALBANY, NEW YORK – Scott Valente, age 60, of East Greenbush, New York, was sentenced today to 20 years in prison for running a large investment fraud scheme. Valente was also ordered to pay $8,616,113.39 in restitution to his victims.
The announcement was made by Acting United States Attorney Grant C. Jaquith; Special Agent in Charge James D. Robnett, Internal Revenue Service-Criminal Investigation, New York Field Office; and Special Agent in Charge Vadim D. Thomas, Federal Bureau of Investigation, Albany Field Office.
Senior United States District Judge Gary L. Sharpe also imposed a 3-year term of supervised release, to begin after Valente’s release from prison.
Valente was originally sentenced, on November 20, 2015, to 20 years in prison after pleading guilty to charges of securities fraud, mail fraud, and obstructing and impeding the internal revenue laws. In April 2017, the United States Court of Appeals for the Second Circuit vacated the sentence and remanded the case for resentencing. Valente has been in custody since his original sentencing date.
Valente, working out of Albany, Schenectady and Warwick, New York, operated an investment fraud scheme that began in December 2010 and ended on June 16, 2014.
Through his investment company The ELIV Group, LLC, Valente received more than $10.6 million from more than 100 individual investors, many of them residing in Upstate New York. He told them that he had achieved annual investment returns of 36.38%, 48.27%, 44.56% and 45.11% for the years 2010 through 2013, respectively. In fact, Valente lost money in each of those years.
Valente also took about $2.2 million in unauthorized management fees, which he used to enrich himself through cash withdrawals totaling $230,000, personal credit card payments totaling $443,000, and the purchases of real estate (including a $117,000 condominium in Vermont), $424,000 in home improvements, $35,000 worth of jewelry, and $20,000 worth of liquor. In addition to taking $2.2 million, Valente made substantial investments in non-public companies, contrary to what he told investors he would do with their money.
Valente also falsely represented to more than 30 ELIV investors that he or his company were authorized to accept, hold and manage Individual Retirement Accounts (IRA), which get preferential treatment under U.S. tax law. In fact, neither Valente nor ELIV was authorized by the IRS to accept, establish or maintain IRA accounts. In an effort to obstruct and impede the IRS by preventing the IRS from learning of his unauthorized acceptance, holding and management of IRA accounts, Valente altered ELIV investment statements to make it appear as though ELIV had properly received certain investors’ IRA rollover investments, that ELIV was holding the investments as an IRA, and that there should be no taxable distributions to the ELIV investors.
ELIV ceased operations on June 16, 2014, when the U.S. Securities and Exchange Commission, in a separate civil proceeding, obtained a preliminary injunction enjoining ELIV’s operations and freezing its assets.
This case was investigated by Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Rick Belliss.
Connecticut Man Indicted for Robbery of North Greenbush StoreRead the Press Release
ALBANY, NEW YORK – David Daniel Hunter, age 53, of Enfield, Connecticut, was arraigned today on charges of robbery and transporting a stolen motor vehicle in interstate commerce.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
According to the indictment and previously filed complaint, Hunter robbed a Dollar Tree store in the Town of North Greenbush, New York, on May 6, 2017. Hunter brandished what appeared to be a handgun, demanded money, and received about $1,200 from the store’s register and safe, according to the complaint. Also on May 6, Hunter transported a 2017 Dodge Charger that he knew had been stolen, according to the indictment.
The charges are merely accusations. The defendant is presumed innocent until proven guilty.
Hunter was arraigned today before United States Magistrate Judge Christian F. Hummel, who ordered him detained pending trial.
If convicted on all charges, Hunter would face up to 20 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the United States Sentencing Guidelines, and other factors.
This case is being investigated by the Federal Bureau of Investigation, the North Greenbush Police Department, and the Enfield (Connecticut) Police Department, and is being prosecuted by Assistant United States Attorney Sean O’Dowd.
DeRuyter Man Sentenced for Attempting to Entice a 12 year old Girl for SexRead the Press Release
SYRACUSE, NEW YORK – Floyd Wood, 49, of DeRuyter, New York, was sentenced in federal court today following his earlier plea of guilty to Attempted Coercion and Enticement, announced Acting United States Attorney Grant C. Jaquith.
United States District Judge David N. Hurd sentenced Wood to a term of 120 months in federal prison, to be followed by 15 years of supervised release. In addition, Wood will be required to register as a sex offender.
As part of his guilty plea, Wood admitted that in April, 2016 through text messaging with someone he believed was a female acquaintance, he arranged to meet with the acquaintance and her 12 year old daughter at a Syracuse hotel to engage in a sexual encounter with both the mother and child. Instead, Wood was corresponding with law enforcement officers, and was arrested at the Syracuse hotel where he was to meet the child and her mother. Prior to his arrival at this location, Wood was surveilled by law enforcement officers at an adult products store where he purchased items he intended to use in the encounter.
This case was investigated by the Mid-state Child Exploitation Task Force, which includes the Federal Bureau of Investigation (FBI), Syracuse Resident Agency, together with the New York State Police, and was prosecuted by Assistant United States Attorney Lisa Fletcher as a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice, and 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 www.projectsafechildhood.gov.
Irish Citizen Sentenced for Attempted Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Michael A. Connors, age 36, and a citizen of Ireland, was sentenced today to time served (24 days in jail) for attempted illegal re-entry into the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Steven Bronson, United States Customs and Border Protection Port Director for the Champlain Port of Entry.
As part of his guilty plea, Connors admitted that he is a citizen of Ireland, and that he attempted to illegally return to the United States after he was removed to Ireland on June 15, 2011.
June 24, 2017, Connors was arrested as he attempted to enter the United States from Canada by car at the Champlain Port of Entry. Connors did not have permission to return to the United States following his prior removal.
Following the sentencing, Connors was remanded to the custody of the Department of Homeland Security for removal proceedings.
This case was investigated by United States Customs and Border Protection and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Eritrean Citizen Admits Visa FraudRead the Press Release
PLATTSBURGH, NEW YORK – Mohammed Nurey Ibrahim, age 41, a Eritrean citizen and resident of Riyadh, Saudi Arabia, pled guilty today to presenting a fraudulently obtained visa to a United States Border Patrol Agent in Champlain, New York.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Acting Director Christian J. Schurman of the U.S. Department of State’s Diplomatic Security Service.
Ibrahim admitted that he fraudulently obtained a United States non-immigrant tourist visa in September 2016 and on January 5, 2017, presented it to a Border Patrol Agent in Champlain as he attempted to illegally cross the border in order to claim asylum in Canada.
As a result of his conviction, Ibrahim faces up to 10 years in prison and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the U.S. Department of State’s Diplomatic Security Service, United States Customs and Border Protection, United States Border Patrol, and Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorney Elizabeth Horsman.
Nigerian Man Admits Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Chukwudi Olisemeka, age 48, and a citizen of Nigeria, pled guilty today to illegal re-entry into the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
Olisemeka was removed from the United States to Nigeria on June 19, 2008, following a 2006 embezzlement conviction in California.
May 7, 2017, he was found by a Border Patrol Agent in Massena, New York, on a bus destined for New York City. A fingerprint check of Olisemeka resulted in the discovery of the prior removal. Olisemeka admitted that he returned to the United States without permission following the 2008 removal.
Olisemeka faces up to 10 years in prison and a fine of up to $250,000 when he is sentenced by Senior United States Judge Frederick J. Scullin, Jr. on September 18, 2017. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Moldovan Man Pleads Guilty to Illegal Transportation of AlienRead the Press Release
ALBANY, NEW YORK – Constantin Chiriac, age 41, and a citizen of Moldova, pled guilty today to transporting an alien who had illegally crossed into the United States from Canada.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
Chiriac admitted that on May 23, 2017, while on the Akwesasne reservation near Hogansburg, New York, he picked up a Hungarian citizen who had just crossed the border illegally from Canada. Chiriac was driving the Hungarian citizen away from the border area when Border Patrol Agents stopped him. Chiriac admitted that he intended to transport the Hungarian citizen away from the border area and to Brooklyn, New York. At the time of his crime, Chiriac was in the United States on a visitor (tourist) visa.
Chiriac faces up to 5 years in prison and a fine of up to $250,000 when he is sentenced by Senior United States District Judge Frederick J. Scullin, Jr. on November 20, 2017. 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 Hungarian citizen, Zslot Mihaly, was convicted of entry without inspection, a misdemeanor, and sentenced to 36 days in jail. He was then transferred to the custody of the Department of Homeland Security for removal proceedings.
This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Mexican Man Arrested in Saratoga, NY Sentenced for Illegal Re-entry into the United StatesRead the Press Release
ALBANY, NEW YORK – Rufino Ramirez De Jesus, age 31, of Mexico, was sentenced today to time served (46 days in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), acting Field Office Director Thomas P. Brophy, Buffalo, New York Field Office.
As part of his guilty plea, Ramirez De Jesus admitted that he was an alien, a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on February 22, 2014. Ramirez De Jesus had previously been removed to Mexico on October 22, 2012.
On May 30, 2017, Ramirez De Jesus was arrested by ICE officers in Saratoga Springs, New York.
Following the sentencing, Ramirez De Jesus was remanded to the custody of the Department of Homeland Security, which will place him into removal proceedings.
The case was investigated by United States Immigration and Customs Enforcement, Albany, NY, and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Ten Indicted in Dismantling of Plattsburgh Heroin Distribution RingRead the Press Release
PLATTSBURGH, NEW YORK – Ten people have been indicted for their involvement in a heroin distribution ring operating in the Plattsburgh area.
The announcement was made by Acting 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.
Two indictments charge the following people with conspiracy to distribute heroin:
- Kyle Touchstone, age 29, of Plattsburgh;
- Melissa Kusalonis, a.k.a. “Mel,” “Liss,” age 35, of Plattsburgh;
- Jimolo Coates, a.k.a. “Lo,” “Marlo,” “Brodie,” age 24, of Annapolis, Maryland;
- Tynaejah Thompson, a.k.a. “Naee,” age 19, of Annapolis, Maryland;
- Kiara Scott, age 28, of Annapolis, Maryland;
- Anthony DeFilippo, a.k.a “Flip,” age 35, of Schenectady, New York;
- Charles Adams, a.k.a. “Chuck, age 31, of Peru, New York;
- Travynn Ippolito, a.k.a “Trav,” age 29, of Plattsburgh;
- Luke Kiroy, age 32, of Saranac, New York; and
- Danielle Conners, age 31, of Plattsburgh.
The charges in the indictments are merely accusations. The defendants are presumed innocent until proven guilty.
According to the indictments and criminal complaints previously filed in the case, from June 2016 through May 2017, the defendants transported heroin from Annapolis, Maryland, and Schenectady, New York, and sold it in the Plattsburgh area. Kiroy, a New York State Corrections Officer, was working at Clinton Correctional Facility in Dannemora, New York, prior to his arrest on June 20, 2017.
Acting United States Attorney Grant C. Jaquith stated: “The deadly effects of heroin are felt in our communities, but the groups profiting from spreading this poison are often found elsewhere. As this case illustrates, we are committed to collaboration with federal, state, and local law enforcement agencies to combat the scourge of heroin in our area, and to pursue and dismantle drug trafficking organizations wherever they may be found.”
DEA Special Agent in Charge James Hunt stated: “Heroin has been a plague to public health causing record numbers of overdoses in New York State. This investigation highlights law enforcement’s commitment to dismantling opioid trafficking organizations responsible for fueling addiction and death in neighborhoods across the nation.”
Clinton County Sheriff David Favro stated: “The result of this lengthy investigation will remove elements from our community that have proven to be life-threatening. Let the message resonate to all that the Clinton County Sheriff will continue to partner with local, state, and federal agencies to provide a safe and healthy community for our residents and guests.”
If convicted, Touchstone and Coates would each face at least 10 years and up to life in prison. Kusalonis, Thompson, and Adams would each face at least 5 years and up to 40 years in prison. DeFlippo, Ippolito, Conners, Kiroy, and Scott would each face up to 20 years in prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The indictments are the result of an 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 is being prosecuted by Assistant U.S. Attorneys Cyrus P.W. Rieck and Katherine Kopita.
Kinderhook Podiatrist Pleads Guilty to Health Care Fraud, Pays $410,000 to Resolve False Claims Act LiabilityRead the Press Release
ALBANY, NEW YORK – Podiatrist Perrin D. Edwards, age 64, of Kinderhook, New York, pled guilty on Tuesday to health care fraud for illegally charging Medicare and private insurance companies for services that he never provided. Edwards has also paid $410,000 to the United States to resolve his civil liability for his submission of false claims for payment to the Medicare program.
The announcement was made by Acting United States Attorney Grant C. Jaquith; Scott J. Lampert, Special Agent in Charge of the New York Regional Office for the Department of Health and Human Services, Office of Inspector General; and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
Edwards’s guilty plea was entered as part of a nationwide law enforcement operation targeting health care fraud, announced today by Attorney General Jeff Sessions and other officials in Washington, D.C. (see news release).
As part of his guilty plea, Edwards admitted that he operated a podiatry practice with offices in Hudson and Albany, New York, and caused false and fraudulent claims to be submitted to Medicare and private insurance companies for podiatric medical services that he had not performed or that he knew would not be covered by insurance.
Edwards admitted that he performed routine foot care services that were not covered by insurers, and falsely represented that nail debridement services were performed for some patients. Nail debridement is the process of removing dead and diseased portions of a toenail in order to significantly reduce its thickness and length, with the aim of allowing the patient to move around without pain.
Edwards also submitted claims to insurers for the trimming of normal toenails for patients Edwards knew did not suffer from any systemic condition such that Medicare and other insurers would cover his services. In connection with these fraudulent claims, Edwards caused false information to be entered into the patients’ medical records indicating that the patients suffered from systemic conditions and had reported symptoms that were not present.
Edwards faces up to 10 years in prison, up to 3 years of post-imprisonment supervised release, and the possibility of a fine, when he is sentenced by United States District Judge Mae A. D’Agostino on November 14, 2017. 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.
As part of the civil settlement, Edwards has paid $410,000 to the United States and admitted that he submitted, or caused others to submit, false claims for payment to the government representing that he had performed toenail debridements. Edwards also admitted that he submitted, or caused others to submit, false claims for payment for trimming toenails of patients that he knew did not suffer from conditions covered by Medicare.
This case was investigated by the Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. The criminal case is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman. The United States was represented in the civil case by Assistant United States Attorney Adam J. Katz.
New York Restaurant Entrepreneur Sentenced to 12 ½ Years in Prison for Investment Fraud Scheme and Tax EvasionRead the Press Release
A federal district judge in Utica, New York sentenced a Watertown, New York food and restaurant entrepreneur and franchisor to serve 150 months in prison for committing tax evasion and investment fraud, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Grant C. Jaquith for the Northern District of New York.
According to documents filed with the court, Christopher Swartz, 46, engaged in a promissory note scheme to defraud lenders and investors out of more than $19 million, as well as a scheme to evade more than $4 million in taxes and obstruct the Internal Revenue Service (IRS).
“For over a decade, Mr. Swartz stole millions from lenders, investors, and the United States, using multiple schemes, shell companies and layers of transactions in an effort to escape detection,” said Acting Deputy Assistant Attorney General Goldberg. “His 12 ½ year sentence sends the clear message to those involved in such financial chicanery that their schemes – no matter how complex – will be uncovered, investigated and successfully prosecuted.”
“Christopher Swartz stole millions of dollars from investors and lenders and cheated the public treasury out of millions of dollars of taxes,” said Acting U.S. Attorney Jaquith. “His elaborate scheme to defraud relied on a mind-boggling web of accounts and enterprises and concealment of his assets and diversions of funds. Swartz inflicted terrible harm on people who trusted him with money they needed to support their families, educate their children, pay for medical care, and retire. This case sends a strong message that such treachery will not be tolerated.”
“Today’s sentencing demonstrates the serious consequences of financial crimes such as this, and the collective focus of IRS Criminal Investigation (CI) and our partners on holding the perpetrators of such corrupt investment schemes accountable for their actions,” said Special Agent in Charge James D. Robnett of the IRS-CI. “Mr. Swartz preyed upon honest and law abiding citizens, abusing their trust for his own financial gain.”
“Mr. Swartz betrayed his investors and attempted to conceal his crimes,” said FBI Special Agent in Charge Vadim D. Thomas. “The resolution of this case is the culmination of the outstanding efforts of the FBI and our federal law enforcement partners.”
According to documents filed with the court, between 2005 and 2015, Swartz defrauded investors through bogus promissory notes and fraudulent offers of ownership in his companies. He induced investors by promising company growth and high interest rates. Despite these promises, Swartz stole investor funds and money from the businesses and spent it for his personal benefit. When lenders and investors tried to get their money back, Swartz provided false assurances, and made partial payments, including payments by check that he knew would bounce. He sought to cover up his thefts by falsifying company records. Swartz also concealed his assets and income to avoid seizure and collection by lenders, investors, and judgment creditors seeking to recover their funds.
The food and restaurant entities and companies Swartz used to fraudulently issue promissory notes and stock included: Jreck Subs, North Country Hospitality, Ultimate Franchise Systems, Caffino Live Roast, Madeline Ventures, Grace Ventures and Obees.
In addition to the promissory note scheme, Swartz sold worthless shell company stock to approximately 70 United Kingdom residents, stealing the funds and defrauding them of approximately $1.1 million.
Swartz also committed tax evasion for a decade. Between 2005 and 2015, Swartz filed false personal tax returns that underreported his income and did not file corporate returns or pay corporate taxes. Swartz diverted money from business accounts and concealed these diversions in the company records through fraudulent accounting entries. He made extensive use of cash so the funds could not be traced and used multiple entities and nominees to conceal his ownership of various assets. Swartz also falsified partnership tax returns and attempted to impede the IRS’s ability to collect employment taxes.
Court documents allege, and the defendant is not contesting, that Swartz owned and operated as franchisor, Jreck Subs, through layers of nominees and entities, since at least 2002. Jreck is one of the largest New York State-based franchises and a popular submarine sandwich chain with approximately 45 stores in central and upstate New York.
Swartz is in custody and will begin serving his sentence immediately. Judge Hurd ordered Swartz to serve three years of supervised release and to pay $21,041,249.43 in restitution to his investment fraud victims and $4,619,340.75 in restitution to the IRS. He also ordered a forfeiture money judgement totaling $12,360,400. Swartz pleaded guilty to tax evasion and wire fraud in September 2016. As part of his plea agreement, Swartz agreed not to contest ownership of the franchise or forfeiture of this asset. Jreck Subs is currently the subject of a restraining order, as the government evaluates the potential forfeiture of the business and a sale to new owners with proceeds serving as a potential source of funds to compensate victims.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Jaquith thanked special agents of IRS-CI and the FBI Albany Field Office, and an IRS revenue agent, who conducted the investigation, and Assistant Chiefs John N. Kane Jr. and Andrew Kameros, and Trial Attorney Abigail Chingos of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Honduran Man Sentenced for Illegal Re-Entry into United StatesRead the Press Release
ALBANY, NEW YORK – Jose Martir Romano-Hernandez, age 46, a citizen of Honduras, was sentenced today to time served (4 months in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
As part of his guilty plea, Romano-Hernandez admitted that he is a citizen of Honduras, and that he illegally returned to the United States after he was removed to Honduras on November 26, 1997.
On March 14, 2017, Romano-Hernandez was arrested by Border Patrol Agents in Champlain, New York, just south of the Canadian border. Romano-Hernandez had been residing in Salisbury, North Carolina, and was arrested by Border Patrol while attempting to illegally cross into Canada.
Following his sentencing, Romano-Hernandez was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by United States Border Patrol and prosecuted by Assistant United States Attorney Edward P. Grogan.
Watertown Man Sentenced for Citizenship FraudRead the Press Release
SYRACUSE, NEW YORK – Gurpreet Singh (37) of Watertown, New York, was sentenced today in federal court in Syracuse to three months in prison to be followed by three years of supervised release, following a jury trial in January where he was convicted of knowingly obtaining U.S. citizenship through unlawful naturalization, announced Acting United States Attorney Grant C. Jaquith and James C. Spero, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo, New York.
Because of this conviction, Singh’s U.S. citizenship will be revoked by law.
The trial evidence showed that Singh, who is originally from India, repeatedly affirmed to United States Citizenship and Immigration (USCIS) authorities that he had not committed any crimes for which he was not arrested. Immigration authorities later learned that the defendant sexually abused a 9-year-old child during the same time-period he was applying for U.S. citizenship. Evidence presented at trial demonstrated that Singh deliberately failed to report his criminal activity to USCIS because he knew that USCIS would not have approved his naturalization application if the agency had known about his crimes. Singh pled guilty in New York state court to a single count of sexual abuse of a minor child, after he had become a naturalized U.S. citizen. Singh was arrested by the City of Watertown (New York) Police Department the day after his naturalization ceremony in April 2012.
While on supervised release following his prison term, Singh will be required to register as a sex offender and will be prohibited from having direct contact with children under the age of 18 (other than his own) and from going to places where children under 18 are likely to congregate, such as parks, libraries, and schools, without prior permission of a probation officer.
This case was investigated by Homeland Security Investigations (HSI) and the City of Watertown Police Department, and was prosecuted by Assistant U.S. Attorneys Michael F. Perry and Robert S. Levine.
Schenectady Man Sentenced to 60 Months for Crack Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Ray A. Perkins, age 30, of Schenectady, New York, was sentenced today to 60 months in prison for conspiring to distribute crack cocaine.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
Senior United States District Judge Thomas J. McAvoy also sentenced Perkins to 4 years of supervised release, to begin after his release from prison.
As part of his guilty plea in August 2016, Perkins admitted that between December 2015 and March 2016, he and a co-conspirator sold more than 100 grams of crack cocaine in the city of Schenectady.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Michael Barnett.
Mexican Citizens Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Two Mexican citizens arrested together in Saratoga Springs, New York, were sentenced today for illegally re-entering the United States.
Arturo Garcia-Lopez, age 45, of Mexico, was sentenced today to time served (43 days in jail) for illegally re-entering the United States. Leonel Martinez-Ramirez, age 23, of Mexico, was also sentenced today to time served (43 days in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas P. Brophy, Acting Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Garcia-Lopez admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on June 9, 2015. Garcia-Lopez had also been removed to Mexico on September 26, 2014 and June 4, 2015.
As part of his guilty plea, Martinez-Ramirez admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on March 3, 2013.
On May 30, 2017, Garcia-Lopez and Martinez-Ramirez were arrested by ICE officers in Saratoga Springs, New York.
Following their respective sentencings, Garcia-Lopez and Martinez-Ramirez were each placed into the custody of the Department of Homeland Security, for removal proceedings.
These cases were investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Albany Man Sentenced for Oxycodone ConspiracyRead the Press Release
ALBANY, NEW YORK – Nicholas M. Signore, age 27, of Albany, New York, was sentenced today to 1 year and 1 day of imprisonment, to be followed by 3 years of supervised release, for conspiring to distribute oxycodone in Albany County.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
United States District Judge Mae A. D’Agostino also ordered that Signore forfeit $19,872 in drug proceeds.
As part of his December 23, 2016 guilty plea, Signore admitted that he obtained oxycodone tablets from a co-conspirator for resale in Albany County.
This case was investigated by the DEA and prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Watervliet Man Indicted on False Claim and Identity Theft ChargesRead the Press Release
ALBANY, NEW YORK – Bryant C. Hardnett, age 44, of Watervliet, New York, was arraigned yesterday on false claim and aggravated identity theft charges relating to his filing of fraudulent individual income tax returns.
The announcement was made by Acting United States Attorney Grant C. Jaquith and James D. Robnett, Special Agent in Charge of the New York Field Office of IRS-Criminal Investigation.
According to the indictment, from 2013 to 2016, Hardnett filed tax returns that falsely claimed dependents and self-employment income, causing the Treasury Department to issue tax refunds to which the taxpayers were not entitled. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Hardnett was arraigned yesterday before United States Magistrate Judge Daniel J. Stewart, who set conditions for Hardnett’s release pending a trial before Senior United States District Judge Lawrence E. Kahn.
On each false claims charge, Hardnett faces up to 5 years in prison, up to 3 years of post-imprisonment supervised release, and a maximum $250,000 fine. On each aggravated identity theft charge, Hardnett faces a mandatory 2-year term of imprisonment. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Michael Barnett.
Mexican Citizens Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Two Mexican citizens arrested together in Saratoga Springs, New York, were sentenced today for illegally re-entering the United States.
Juan Martinez-Garcia, age 27, of Mexico, was sentenced to time served (38 days in jail). Jorge Reyes-Merino, age 27, of Mexico, was also sentenced to time served (38 days in jail).
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas P. Brophy, Acting Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Martinez-Garcia admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed from the United States to Mexico on July 26, 2010. As part of his guilty plea, Reyes-Merino admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed from the United States to Mexico on November 9, 2011.
On May 30, 2017, ICE Officers arrested Martinez-Garcia and Reyes-Merino in Saratoga Springs.
Following their respective sentencings, Martinez-Garcia and Reyes-Merino were each placed into the custody of the Department of Homeland Security, for removal proceedings.
These cases were investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Citizen of Guatemala Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Elder Alexander Ajin-Surek, age 25, and a citizen of Guatemala, was sentenced today to time served (66 days in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
As part of his guilty plea, Anjin-Surek admitted that he is a citizen of Guatemala, and that he illegally returned to the United States after he was removed from the United States to Guatemala on August 9, 2012.
May 3, 2017, Anjin-Surek was arrested by Border Patrol Agents in Lewis, New York, in Essex County.
Following his sentencing, Anjin-Surek was placed into the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by United States Border Patrol and prosecuted by Assistant United States Attorney Edward P. Grogan.
Utica Man Convicted of Heroin ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Yesterday, following a two-day trial, a federal jury in Syracuse, New York, convicted Luis Estela, 53, of Utica of conspiracy to possess with intent to distribute heroin, announced United States Attorney Richard S. Hartunian and United States Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt.
The evidence at trial established that in July 2015, Mr. Estela became a member of a heroin trafficking organization operating in Utica and Rome, New York. In particular, the evidence showed that the defendant helped the organization package heroin and assisted in selling drugs along the Erie Canal Trail in Rome.
Chief United States District Judge Glenn T. Suddaby will sentence Estela on November 9, 2017. Mr. Estela faces up to 20 years in prison, a fine of up to $1,000,000, and a term of supervised release of at least 3 years and up to life.
This case was investigated by the DEA, New York State Police-Community Narcotics Enforcement Team-Central (NYSP-CNET), City of Rome Police Department, City of Utica Police Department, Oneida County Sheriff’s Office, Oneida County District Attorney’s Office, U.S. Marshals Service, U.S. Border Patrol, U.S. Department of Homeland Security Investigations, Onondaga County Sheriff’s Office, and Onondaga County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorneys Robert Levine and Carla Freedman.
Postal Worker Pleads Guilty to Stealing Money OrdersRead the Press Release
ALBANY, NEW YORK – Naisha Wiley, age 34, of Schenectady, New York, pled guilty today to stealing $10,000 worth of money orders from her employer, the United States Postal Service (USPS).
The announcement was made by United States Attorney Richard S. Hartunian; Eileen Neff, Special Agent in Charge of the Northeast Area for the USPS, Office of the Inspector General; and Inspector in Charge Shelly A. Binkowski, United States Postal Inspection Service, Boston Division.
In pleading guilty, Wiley admitted that while working part-time as a retail clerk in Post Offices in Montgomery County in 2016 and 2017, she stole USPS money orders with a total value of $10,000. She also admitted to stealing gift cards out of the mail.
Wiley faces up to 10 years in prison, up to 3 years of post-imprisonment supervised release, and a maximum $250,000 fine when she is sentenced on October 10, 2017 by Senior United States Judge Thomas J. McAvoy. She may also be ordered to pay restitution to her victims. 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 USPS, Office of the Inspector General, and the United States Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Misdemeanor Immigration Prosecutions – June 2017Read the Press Release
ALBANY, NEW YORK – The following is a summary of misdemeanor immigration prosecutions from June 2017:
Citizen of Russia Sentenced For Illegal Entry into United States
Denis Gennadyevich Kiselev, age 25, a citizen of Russia, was sentenced on June 6, 2017 to 22 days in jail following his guilty plea to illegally entering the United States. Kiselev admitted that on May 25, 2017, he walked across the border approximately 3 miles west of the Champlain Port of Entry, Champlain, New York, and that he walked south until he was stopped and arrested by Border Patrol Agents.
Citizen of Hungary Sentenced For Illegal Entry into United States
Zslot Mihaly, age 31, a citizen of Hungary, was sentenced on June 6, 2017 to 36 days in jail following his guilty plea to illegally entering the United States. Mihaly admitted that on May 24, 2017, he illegally crossed the border by boat on the St. Lawrence River near Hogansburg, New York, and was in the process of leaving the border area by car when he was arrested by Border Patrol Agents in Bombay, New York.
Citizen of United Kingdom Sentenced For Illegal Entry into United States
Michael B. Forster, a citizen of the United Kingdom, was sentenced on June 13, 2017 to time served (12 days in jail) following his guilty plea to illegally entering the United States. Forster admitted that on June 2, 2017, he crossed from Canada and into the United States by walking through a wooded area of the border, and was arrested by Border Patrol Agents after he crossed.
Citizen of Guatemala Sentenced For Illegal Entry into United States
Sergio Abrahan Arriaza-Morales, age 23, a citizen of Guatemala, was sentenced on June 27, 2017 to 15 days in jail following his guilty plea to illegally entering the United States. Arriaza-Morales admitted that on June 12, 2017, he walked across the border approximately 1 mile west of the Champlain Port of Entry, Champlain, New York, and that he continued walking until he was arrested by a Border Patrol Agent.
Citizen of Hungary Sentenced for Illegal Entry into United States
Mihaly Balazs, a/k/a Gabor Honved, age 32, a citizen of Hungary, was sentenced on June 29, 2017 to 45 days in jail and to pay a $500 fine following his guilty plea to illegally entering the United States. Balazs admitted that on May 27, 2017, he illegally entered the United States from Canada, without reporting for inspection, by taking a boat ride to a car that drove him to a motel in Fort Covington, New York,. Balazs also admitted to being picked up at the motel by a driver prior to his arrest by Border Patrol Agents in Westville, New York.
Mexican Citizen Sentenced for Illegal Re-Entry into United StatesRead the Press Release
ALBANY, NEW YORK – Fausto Guzman Guzman, age 28, and a citizen of Mexico, was sentenced today to time served (31 days in jail) for illegally re-entering the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Thomas P. Brophy, Acting Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Guzman admitted that he was a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on May 24, 2008.
On May 30, 2017, Guzman was arrested by ICE officers in Saratoga Springs, New York.
Following his sentencing, Guzman-Guzman was remanded to the custody of the Department of Homeland Security, which will place him into removal proceedings.
This case was investigated by ICE-ERO in Latham, New York, and prosecuted by Assistant United States Attorney Edward P. Grogan.
California Man Indicted for Marijuana ConspiracyRead the Press Release
ALBANY, NEW YORK – Eric D. McNeil, age 39, of Murietta, California, was indicted yesterday for conspiring to distribute more than 100 kilograms of marijuana in Columbia County, New York.
The announcement was made by United States Attorney Richard S. Hartunian and Inspector in Charge Shelly A. Binkowski, United States Postal Inspection Service (USPIS), Boston Division.
McNeil was arrested May 2, 2017, on a criminal complaint. According to the complaint, McNeil used the United States Postal Service to send more than 100 kilograms of marijuana, from California and to a co-conspirator located in Columbia County. The charges in the complaint and indictment are merely accusations. The defendant is presumed innocent until proven guilty.
McNeil will be arraigned at a later date. If convicted, he faces at least 5 years and up to 40 years in prison, a maximum $5 million fine, 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 is being investigated by the United States Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Queens Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Anthony David Gentile, age 57, of Queens, New York, pled guilty today to receiving and possessing child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Gentile admitted that between July 12, 2014 and September 5, 2014, as a resident of Albany County, he used the Internet and a peer-to-peer file-sharing network to download child pornography. Gentile also admitted that he possessed and stored child pornography on a computer and several hard drives.
Gentile faces at least 5 years and up to 20 years in prison, and a term of post-imprisonment supervised release of at least 5 years and up to life, when he is sentenced on October 24, 2017 by Senior United States District Judge Gary L. Sharpe. 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. Upon his release from prison, Gentile will be required to register as a sex offender.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Michael Barnett.
Madison County Man Sentenced for Child Pornography CrimesRead the Press Release
SYRACUSE, NEW YORK - Brent Dale, 40, of Earlville, NY, was sentenced yesterday to serve 210 months in federal prison following his plea of guilty to all counts of a five-count indictment charging him with child pornography offenses, announced United States Attorney Richard S. Hartunian. He will be placed on a lifetime period of supervised release following the end of his prison sentence. Dale was a registered sex offender at the time he committed the offenses of conviction, and will be required to continue that registration after his release.
Dale’s sentencing yesterday follows his September 2016 pleas of guilty to the distribution, receipt, and possession of child pornography stemming from his trading images of child pornography with other users on the Internet, and amassing a collection of images and videos depicting the sexual exploitation of children.
This case was investigated by the New York State Police, the Madison County Sheriff’s Office, the Madison County District Attorney’s Office, and the Department of Homeland Security, Homeland Security Investigations, and was prosecuted by Assistant U.S. Attorney Lisa M. Fletcher.
This multi-agency approach is a hallmark of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Former VA Nurse Re-Sentenced for Stealing and Tampering with Patient MedicationsRead the Press Release
ALBANY, NEW YORK – Nathan Baum, age 32, of East Greenbush, New York, was sentenced today to serve 38 months in prison for tampering with a consumer product and obtaining controlled substances by deception.
The announcement was made by United States Attorney Richard S. Hartunian; Special Agent in Charge Donna L. Neves of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office; and Special Agent in Charge Jeffrey Ebersole of the U.S. Food and Drug Administration Office of Criminal Investigations, New York Field Office.
Senior United States District Judge Lawrence E. Kahn also imposed a $2,000 fine and a 3-year term of supervised release, to begin after Baum’s release from prison.
Baum was originally sentenced, on June 22, 2016, to 82 months in prison. With the government’s consent, the United States Court of Appeals for the Second Circuit vacated the sentence in May 2017 and remanded the case for resentencing. Baum has been in custody since his original sentencing date.
Baum pled guilty in February 2016 to tampering with a consumer product and obtaining controlled substances by deception and subterfuge. Baum, a licensed practical nurse who worked at the hospice ward of the Veterans Affairs Medical Center, in Albany, improperly accessed syringes that contained oxycodone hydrochloride. These syringes were stored in locked containers that Baum was able to access using his individually assigned password. Between April 8, 2014 and May 16, 2014, Baum removed the oxycodone hydrochloride from at least 25 syringes and replaced it with haloperidol.
Oxycodone hydrochloride, a Schedule II controlled substance, is a highly addictive narcotic analgesic used to treat moderate to severe pain. Haloperidol, often marketed as Haldol, is an anti-psychotic medication used to treat certain mental/mood disorders and to treat uncontrolled movements or agitation.
This case was investigated by the U.S. Department of Veterans Affairs Office of Inspector General and the Food and Drug Administration Office of Criminal Investigations, and was prosecuted by Assistant U.S. Attorney Elizabeth R. Rabe.
Former Oneida County Resident Sentenced for Tax FraudRead the Press Release
SYRACUSE, NEW YORK - Dale J. Sexton, 48, formerly of Barneveld, New York, was sentenced today in federal court in Syracuse to 33 months in prison in connection with his previous guilty pleas to filing a false income tax return and to obstructing and impeding the Internal Revenue Service (IRS) in its administration of the internal revenue laws, announced United States Attorney Richard S. Hartunian and James D. Robnett, Internal Revenue Service Criminal Investigation (IRS-CI), Special Agent in Charge, New York Field Office. Sexton’s sentence also requires him to pay restitution to the IRS in the amount of $502,639. Senior United States District Judge Norman A. Mordue, who presided over the case, also ordered Sexton to spend one year on supervised release after completion of his 33-month prison sentence.
Sexton, who most recently resided in Bradenton, Florida, previously admitted in federal court that he failed to report to the IRS more than $1.5 million in income he earned between 2005 and 2008, that he engaged in complicated financial transactions involving numerous bank accounts in the United States and Costa Rica in order to mask and disguise his income and expenses, and that he made false statements to an IRS Revenue Officer in Utica, New York. Sexton also admitted that he filed a false 2008 tax return, claiming that he earned no income that year when he actually earned more than $200,000.
“IRS agents spent years tracing more than 100 bank accounts and tens of thousands of individual financial transactions to piece together Sexton’s fraud scheme. Unfortunately, today’s sentence cannot undo the financial harm suffered by Sexton’s victims, who paid a terrible price for the defendant’s greed in amassing income improperly and failing to report it to the IRS,” said U.S. Attorney Hartunian.
According to the plea agreement signed by Sexton, the unreported income related to Sexton’s ownership of multiple commercial real estate businesses in Florida involved in constructing, among other things, commercial “flex” warehouse units. Sexton financed the projects by obtaining loans from banks and investments from private investors. Sexton admitted in the plea agreement that he failed to repay much of the loan money and that he never intended to repay any of the private investors. Several victims filed statements with the Court describing the financially devastating consequences they faced after Sexton defrauded them in order to fund his luxurious lifestyle.
The case was investigated by Internal Revenue Service Criminal Investigation (IRS-CI), and was prosecuted by Assistant United States Attorney Michael F. Perry.
Schenectady Man Sentenced to 58 Months for Unlawful Firearm PossessionRead the Press Release
ALBANY, NEW YORK – Lawrence Giggetts, age 37, of Schenectady, New York, was sentenced today to 58 months in prison for possessing a firearm as a felon.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge Ashan M. Benedict of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
In pleading guilty, Giggetts admitted to possessing an inoperable .25-caliber, semiautomatic pistol, after he had been convicted of attempted reckless endangerment, a felony. The pistol, which was inoperable because it did not have a firing pin, still qualified as a firearm under federal law, which prohibits felons even from having inoperable firearms so long as there is an interstate connection.
Senior United States District Judge Gary L. Sharpe also sentenced Giggetts to 3 years of supervised release, to begin once Giggetts is released from prison.
This case was investigated by the ATF and the Schenectady Police Department, and was prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Salvadoran Man Sentenced for Illegal Re-EntryRead the Press Release
ALBANY, NEW YORK – Jose Domingo Contreras Flores, age 34, and a citizen of El Salvador, was sentenced today to time served (about 69 days in jail) for illegally re-entering the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Thomas P. Brophy, Acting Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
Flores had been removed from the United States in 2003, at Chandler, Arizona. He later re-entered the country without the permission of the Department of Homeland Security. Flores had been living in Hudson at the time of his arrest.
Flores will be transferred to the custody of the Department of Homeland Security, which will place him into removal proceedings.
This case was investigated by ICE-ERO in Latham, New York, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Glenmont Woman Sentenced for Social Security FraudRead the Press Release
ALBANY, NEW YORK – Tammy A. Grumme, age 42, of Glenmont, New York, was sentenced today to time served (about 4 months in jail), to be followed by 3 years of supervised release, for stealing more than $78,000 in benefits from the Social Security Administration (SSA).
The announcement was made by United States Attorney Richard S. Hartunian and John F. Grasso, Special Agent in Charge of the SSA Office of the Inspector General, New York Field Office.
As part of her October 17, 2016 guilty plea, Grumme admitted that she provided false information to the SSA so that she could continue to receive Survivors Insurance benefits for herself and another person from 2011 through 2013. Grumme admitted that she submitted false forms to the SSA because she knew she would not be entitled to benefits if the information were accurate.
Senior United States District Judge Frederick J. Scullin Jr. also ordered Grumme to pay $78,258 in restitution.
This case was investigated by the SSA Office of the Inspector General and was prosecuted by Special Assistant U.S. Attorney Jason W. White.
Mexican Citizen Arrested with Fraudulent immigration DocumentsRead the Press Release
ALBANY, NEW YORK – Victorico Catarino Ramirez, a citizen of Mexico, was charged today with possessing fraudulent immigration documents.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
Ramirez appeared today in Albany before United States Magistrate Judge Christian F. Hummel, who ordered him detained pending further proceedings.
If convicted of possessing fraudulent immigration documents, Ramirez faces up to 10 years in prison, a maximum $250,000 fine, and up to 3 years of post-imprisonment supervised release.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by HSI, Immigration Customs and Enforcement-Enforcement and Removal Operations, and the United States Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
U.S. Attorney Richard S. Hartunian to Step DownRead the Press Release
Albany, New York – Richard S. Hartunian announced today that he will step down as United States Attorney for the Northern District of New York on June 30, 2017, after serving seven and one-half years in office and 20 years with the Department of Justice. Hartunian has informed President Trump and Attorney General Sessions of his decision. First Assistant United States Attorney Grant C. Jaquith will become Acting United States Attorney for the Northern District of New York on July 1, 2017.
“Serving as the United States Attorney for the Northern District of New York has been the highest professional privilege of my lifetime,” said United States Attorney Hartunian. “It has been an honor to work with the men and women of the Department of Justice and to witness the immeasurable commitment to justice of my law enforcement colleagues throughout the nation. I am especially grateful for the opportunity to lead an office of outstanding, dedicated professionals who work tirelessly, day in and day out, to keep our communities safe. I am proud of our achievements and confident that the good work of the U.S. Attorney’s Office will continue under the outstanding leadership of Acting United States Attorney Jaquith.”
Deputy Attorney General Rod J. Rosenstein said, “Throughout his service as a career prosecutor and as United States Attorney, Rick Hartunian has demonstrated a steadfast commitment to the cause of justice. He is an excellent colleague and a reliable friend. I thank Rick for his twenty years of distinguished federal service and wish him all the best in the next chapter of his career.”
Richard S. Hartunian took office as the 48th United States Attorney for the Northern District of New York on January 3, 2010. Hartunian also served as the Chair of the Attorney General’s Advisory Committee (AGAC) in 2016 and 2017, leading the sixteen U.S. Attorneys who are responsible for advising the Attorney General on policy, management and operational issues influencing all 94 federal districts nationwide. He was appointed to this committee in 2013, working with his U.S. Attorney colleagues from around the nation to fight violent crime, promote border security, improve police/community relations and address the nationwide heroin/opioid abuse epidemic.
In 2010, Hartunian was honored by the Armenian Bar Association as the first United States Attorney of Armenian descent.
As United States Attorney, Hartunian emphasized several key areas. Fighting terrorist activity has been his highest priority – indeed, his sister Lynne was killed in the 1988 terrorist bombing of Pan Am Flight 103 – and his tenure included the prosecution of Glendon Crawford and Eric Feight. Crawford, a Ku Klux Klan member and the first person to be convicted of attempting to possess and use a radiological dispersal device, was sentenced to be imprisoned for 30 years for his plot to build a lethal radiation device to kill Muslim Americans and others. Feight, his accomplice, pled guilty to providing material support to terrorism and was sentenced to over 8 years in prison.
Border security has been a related priority, and Hartunian co-chaired the AGAC’s Border and Immigration Subcommittee, leading the Northern Border United States Attorneys in their efforts to combat transnational crime and improve cooperation with Canadian prosecutors and law enforcement agencies. In support of that effort, Hartunian testified on behalf of DOJ in April 2015, before the U.S. Senate Homeland Security and Governmental Affairs Committee, about the state of northern border security.
As a long time narcotics prosecutor, both on the local and federal level, U.S. Attorney Hartunian emphasized aggressive narcotics and gang prosecutions, with cases against the V-Not and Bricktown gangs in Syracuse, the Uptown Gunners in Schenectady, and the Original Gangsta Killers in Albany. His office fought the scourge of synthetic drugs through impactful prosecutions in Zhang and Tebbetts, and he testified on behalf of DOJ, before the United States Senate Judiciary Committee in June 2016, about the dangers of synthetic drugs.
In combatting financial fraud, U.S. Attorney Hartunian’s office prosecuted multi-million dollar fraudsters like McGinn and Smith, Stehl and Rossignol, Valente, and Backis.
Public and professional corruption has remained a priority for the DOJ and the U.S. Attorney’s Office under Hartunian’s leadership, as demonstrated by the prosecutions of Assemblyman Scarborough and Town Supervisor Warmouth, Saratoga County Deputy Sheriff Fuller, and attorneys Stanley Cohen, David Ehrlich and Michael Bouchard.
U.S. Attorney Hartunian also sought justice for victims of violent crime. In cases involving terrible acts of child exploitation, his office brought impactful prosecutions and achieved lengthy sentences against Kopp and Oberst, Howells and Vaisey, sex traffickers Tilden and Davall, and Christopher and Amanda Jansen. Finally, his office’s prosecution of four individuals for lying in connection with the investigation of a deadly arson homicide, where three children and one adult were killed, and another child seriously burned, demonstrated U.S. Attorney Hartunian’s commitment to fighting for victims of violent crime. “I am confident that my office will continue to seek the full measure of justice for the victims of this terrible tragedy,” he said, “and our prosecutors and agents will not rest until that goal has been fully achieved.”
Hartunian thanked his staff for their impactful work, describing them as “an incredible collection of talented AUSAs and support professionals who work long hours, out of the limelight, to help crime victims and keep our communities safe.”
Native American issues have remained an important facet of the U.S. Attorney’s work during Hartunian’s tenure. He served on the AGAC’s Native American Issues Subcommittee and visited several tribes throughout the United States, while consulting regularly with the Oneida, Mohawk, Onondaga and Cayuga nation leadership in the Northern District. He appointed a full time tribal liaison – a first for the NDNY – and collaborated closely with tribal police agencies to address public safety needs in Indian Country. “I am proud to have been part of improved nation to nation relations over the past eight years, and I am confident that we will build upon our successes and continue our constructive work with tribal communities in an environment of mutual respect and friendship,” Hartunian said.
U.S. Attorney Hartunian placed great emphasis on strengthening the NDNY Civil Division, doubling the number of AUSAs handling civil matters and emphasizing affirmative civil enforcement cases in the areas of health care, defense procurement and the environment. He was a member of the AGAC’s Health Care and Environmental Issues Subcommittees, and instituted programs designed to maximize recoveries and inform industry representatives about the NDNY’s increased enforcement efforts. As a measure of the success of these efforts, the NDNY recovered the following amounts in civil and criminal penalties during his term: $30.8 million in FY 2012; $29.3 million in FY 2013; $44 million in FY 2014; $32 million in FY 2015; and $20 million in FY 2016. In civil health care fraud matters alone, the office has recovered more than $25 million during Hartunian’s tenure -- a dramatic increase over previous years – including multi-million dollar settlements with Endo Pharmaceuticals, St. Joseph’s Hospital and Open MRI. “I’m proud of the work of the NDNY Civil Division, which has become a nationwide model of efficiency and effectiveness,” Hartunian said.
Crime prevention has also been a priority during his tenure, including through the LEADership Project, a youth violence reduction program designed to help 5th grade students steer clear of gangs, drugs, violence, and vandalism; Youth Courts; Reentry Court; and community and interdisciplinary forums to address the epidemic of opioid and synthetic drug abuse. “We must take a comprehensive approach to fighting crime – aggressive enforcement, strong prevention efforts aimed at young people, and attention to the needs of re-entering persons – these are the successful building blocks for safer communities,” Hartunian noted.
Hartunian is a 1983 cum laude graduate of the College of Arts and Sciences at Georgetown University and a 1986 graduate of the Albany Law School. He was engaged in the general private practice of law at the firm of Devine, Piedmont and Rutnik in Albany from 1987 to 1990, and served as an Assistant District Attorney in Albany County from 1990 to 1997, where his work on narcotics and violent crime cases led to his designation as a Special Assistant U.S. Attorney in 1994. He became an Assistant United States Attorney in 1997, and went on to serve as the Northern District’s Narcotics Chief and Organized Crime Drug Enforcement Task Force Coordinator from 2006 until his appointment as U.S. Attorney in 2010. During his tenure as an Assistant United States Attorney, Hartunian successfully prosecuted numerous large drug, gang, and violent crime cases. He has received many awards for his work, including the Federal Bureau of Prisons General Counsel’s Exemplary Assistance Award, the Narcotics Enforcement Officers’ Association U.S. Department of Justice Award, various Organized Crime Drug Enforcement Task Force Regional Awards, and several case-related commendations.
Hartunian plans to enter private practice, with a further announcement to follow.
The Northern District of New York is comprised of thirty-two counties in upstate New York, covering an area of over 30,000 square miles that is home to about 3.4 million people. The District includes 310 miles of the U.S. border with Canada and the Cayuga, Mohawk, Oneida, and Onondaga Nations. The United States Attorney has offices in Syracuse, Albany, Binghamton, and Plattsburgh.