Northern District of New York
Press releases recorded for this federal judicial district.
Pennsylvania Man Charged with Attempting to Entice a Minor into Sexual ActsRead the Press Release
ALBANY, NEW YORK – Eric S. Mann, age 32, of Howard, Pennsylvania, was ordered detained on Friday after being arrested on August 25 for attempting to coerce and entice a minor into sex.
The announcement was made by U.S. Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
The criminal complaint alleges that from May 10, 2016 through August 25, 2016, Mann used various forms of Internet-based communication to entice someone he thought was a 14-year-old boy to meet at a truck stop in Milesburg, Pennsylvania, for a sexual encounter. A Colonie Police Department investigator was posing as the boy. The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
Mann was arrested on August 25 in Milesburg and was ordered detained by a Middle District of Pennsylvania Magistrate Judge pending his appearance in Albany. Mann appeared on Friday at a detention hearing in Albany before U.S. Magistrate Judge Christian F. Hummel, who ordered Mann detained pending further proceedings.
If convicted, Mann faces at least 10 years and up to life in prison, as well as a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and the Colonie Police Department, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Melrose Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Jeremy Lillie, age 32, of Melrose, New York, pled guilty today to distribution, receipt and possession of child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
Lillie faces at least 5 years and up to 20 years in prison, and a term of post-imprisonment supervised release of between 5 years and life, when he is sentenced on January 4, 2017 by Senior U.S. 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. Lillie will also be required to register as a sex offender upon his release from prison.
This case was investigated by the FBI and the Colonie Police Department, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
East Durham Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Gregory Kurzajczyk, age 69, of East Durham, New York, pled guilty today to distributing and receiving child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge for Immigration and Customs Enforcement, Homeland Security Investigations (HSI).
Kurzajczyk 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 January 4, 2017 by United States District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Kurzajczyk would also have to register as a sex offender upon his release from prison.
As part of his plea, Kurzajczyk admitted that between July 16, 2014 and January 19, 2015, an undercover law enforcement officer using an Internet file-sharing application downloaded child pornography images and videos from Kurzajczyk’s computer. Kurzajczyk also admitted to using the file-sharing application to download child pornography.
This case was investigated by Homeland Security Investigations (HSI) and the Colonie Police Department, with the assistance of the U.S. Secret Service, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Brooklyn Men Sentenced for Intending to Sell Crack and Heroin in PlattsburghRead the Press Release
SYRACUSE, NEW YORK –Jawan Long, age 32, and Lance Harper, age 24, both of Brooklyn, New York, were sentenced today for possessing crack and heroin with the intent to distribute the drugs.
Senior U.S. District Judge Noman A. Mordue sentenced Long to 40 months of imprisonment, to be followed by a 3-year term of post-imprisonment supervised release, and sentenced Harper to 33 months of imprisonment, to be followed by a 6-year term of supervised release.
The announcement was made by United States Attorney Richard S. Hartunian; New York State Police Superintendent (NYSP) George P. Beach II; and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
On April 1, 2016, Long and Harper travelled by bus from New York City to Plattsburgh while in possession of crack and heroin, and were arrested by the NYSP and DEA when they arrived at the Plattsburgh bus station. Long had 39 grams of crack in his underwear. Harper had 22 grams of crack and 8 grams of heroin in his underwear. The two men intended to sell the crack and heroin in the Plattsburgh area.
This case was investigated by the New York State Police and U.S. Drug Enforcement Administration, and was prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Sex Offender Sentenced to 33 Months for Failure to Register in GloversvilleRead the Press Release
ALBANY, NEW YORK – James Newland, age 31, was sentenced today to serve 33 months in prison and 5 years of post-imprisonment supervised release for failing to update his sex offender registration.
The announcement was made by United States Attorney Richard S. Hartunian and United States Marshal David McNulty.
Newland pled guilty on March 2, 2016, admitting to moving to Gloversville, New York, from California, without updating his sex offender registration. The Sex Offender Registration and Notification Act (“SORNA”) requires a convicted sex offender to register where he or she resides, is employed, or is enrolled as a student, and to keep any registration current.
This case was investigated by the United States Marshals Service Sex Offender Investigation Branch, North East Region; the United States Marshals New York/New Jersey Regional Fugitive Task Force; the Johnston Police Department; and the Gloversville Police Department. The case was prosecuted by Assistant United States Attorney Solomon B. Shinerock.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Troy Felon Admits Possessing a Loaded FirearmRead the Press Release
ALBANY, NEW YORK – Gregory L. Clark, age 26, of Troy, New York, pled guilty today to unlawfully possessing a firearm and ammunition.
The announcement was made by U.S. Attorney Richard S. Hartunian, Troy Police Chief John F. Tedesco, and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
Clark, who has 3 prior felony convictions, admitted that on April 2, 2016, he possessed a loaded Ruger .357 caliber revolver. He admitted that Troy Police Officers who were investigating a report of a man with a gun found Clark hiding in a closet in a Lansingburgh apartment and that his loaded Ruger .357 caliber revolver was also in that closet.
Clark faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced on December 12, 2016 by Senior U.S. 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.
This case was investigated by the Troy Police Department and ATF, and is being prosecuted by Assistant U.S. Attorney Michael Barnett with assistance from the Rensselaer County District Attorney's Office.
Drug Supplier to Massena Sentenced to 36 MonthsRead the Press Release
ALBANY, NEW YORK – Matik Jones, age 26, of Jersey City, New Jersey, was sentenced yesterday to serve 36 months in prison, to be followed by 3 years of supervised release, for intending to supply heroin and crack cocaine to the Massena area.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge for Immigration and Customs Enforcement, Homeland Security Investigations (HSI).
The sentence followed Jones’s November 24, 2015 guilty plea.
Senior U.S. District Judge Frederick J. Scullin, Jr. sentenced Jones exactly one year after Jones’s arrest following a traffic stop in Massena, in which Jones was found to possess approximately 103 grams of crack cocaine and 25 grams of heroin.
This case was investigated by HSI and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
Ogdensburg Man Charged with Producing Child PornographyRead the Press Release
PLATTSBURGH, NEW YORK – Harry McCarthy, age 55, of Ogdensburg, New York, was indicted yesterday for sexually exploiting a child for the purpose of creating child pornography, and for distributing, receiving, possessing and transporting child pornography.
The announcement was made by United States Attorney Richard S. Hartunian; Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation; and New York State Police Superintendent George P. Beach II.
McCarthy appeared today before United States Magistrate Judge Gary L. Favro and was detained pending further proceedings. If convicted of all charges, McCarthy faces at least 15 years and up to 30 years in prison for each charge of child exploitation, and at least 5 years and up to 20 years for each charge of distributing, receiving, and transporting child pornography. If convicted, McCarthy would also face mandatory, post-imprisonment supervised release of at least 5 years and up to life, and would be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
According to the indictment, in 2013 and 2014, McCarthy induced a 13-year-old child into engaging in sexually explicit conduct for the purpose of creating images of such conduct. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by the Federal Bureau of Investigation and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Katherine Kopita.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/
Binghamton Man Sentenced for Sex Trafficking and Prostitution of A ChildRead the Press Release
BINGHAMTON, NEW YORK – Alphonso Dennis, 34, of Binghamton, New York, was sentenced to serve fifteen years in prison in connection with his convictions for sex trafficking of a child (four counts) and prostitution of a child (2 counts).
The announcement was made by United States Attorney Richard S. Hartunian, Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation, and New York State Police Superintendent George P. Beach, II.
In addition to being sentenced to fifteen years in federal prison, Dennis is also required to serve a twenty-year term of supervised release following his release from custody and must register as a sex offender.
As part of his guilty plea, Alphonso Dennis admitted that from August 2014 to November 2014, in Broome County, New York, Dennis hosted two minors, ages 14 and 15, at his apartment who met with men for the purpose of engaging in sex acts for money. Dennis, who was aware of their ages, also arranged for the two minors to be transported to various locations for the purpose of having them engage in commercial sex acts. Using a cell phone, Dennis took photos of the minors in sexually provocative poses that he posted on an Internet advertising site. Dennis directed the minors how much money to charge for sex and required them to give him 50% of the money that they received.
The prosecution stems from an investigation into a child prostitution ring conducted by the Federal Bureau of Investigation, the New York State Police, and the Town of Vestal Police Department.
The case was prosecuted by Assistant U.S. Attorney Miroslav Lovric.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Troy Woman Sentenced for Theft of Government PropertyRead the Press Release
ALBANY, NEW YORK – Catherine M. Kosakavich, age 51, of Troy, New York, was sentenced yesterday to 2 years of probation, and ordered to pay $49,766 in restitution, for unlawfully taking veteran benefits intended for her mother.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge Jeffrey G. Hughes of the U.S. Department of Veterans Affairs (VA) Office of Inspector General, Northeast Field Office.
In pleading guilty on March 17, 2016, Kosakavich admitted that as legal guardian for her mother, she received her mother's veteran benefit payment each month. Kosakavich’s mother died on February 18, 2013. Kosakavich failed to notify the VA of her mother’s death and, for almost two and a half years, she stole government property by continuing to receive and spend monthly benefit payments totaling $49,766.
This case was investigated by the U.S. Department of Veterans Affairs, Office of Inspector General, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
U.S. Attorneys Richard S. Hartunian and Barbara L. Mcquade Appointed to Lead the Attorney General’s Advisory CommitteeRead the Press Release
WASHINGTON—Attorney General Loretta E. Lynch announced today the appointment of U.S. Attorney Richard S. Hartunian for the Northern District of New York as chair of the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC). Attorney General Lynch also appointed U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan to serve as vice chair. Both appointments are effective immediately.
“The Attorney General’s Advisory Committee plays an essential role in shaping the Justice Department’s policies, implementing its programs, and ensuring that equal justice and the rule of law are upheld throughout the United States,” said Attorney General Lynch. “As a former chair of the AGAC, I know firsthand the significant duties required of the committee’s leaders, and I am certain that U.S. Attorneys Richard Hartunian and Barbara McQuade are ready to assume the responsibility of chairing such an important and distinguished body. They are both seasoned prosecutors, exemplary law enforcement officers, and devoted public servants, and I look forward to benefitting from their long experience and wise counsel as we advance the department’s vital work in the months ahead. I congratulate them on their new posts, and I once again thank former U.S. Attorney John Walsh for his outstanding service as AGAC chair over the last 20 months.”
U.S. Attorney Hartunian has been the vice chair of the AGAC since January 2015. He was appointed to the AGAC in 2013 and has served as the co-chair of the Border and Immigration Subcommittee, as well as a member of the subcommittees focused on Native American issues, Health Care Fraud and Environmental Crimes. He has served as U.S. Attorney for the Northern District of New York since January of 2010. Before that, he had been an Assistant U.S. Attorney there since 1997 and the district’s Narcotics Chief and Organized Crime Drug Enforcement Task Force Coordinator since 2006.
U.S. Attorney Hartunian is a 1983 cum laude graduate of Georgetown University and a 1986 graduate of the Albany Law School of Union University. He was engaged in the private practice of law in Albany from 1987 to 1990. He 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.
In May of 2010, U.S. Attorney Hartunian was honored by the Armenian Bar Association as the first U.S. Attorney of Armenian descent.
U.S. Attorney McQuade was appointed to the AGAC in April 2013 and has previously served as co-chair of the Terrorism and National Security Subcommittee. She also served on subcommittees addressing civil rights and border security. She became the first woman to serve as U.S. Attorney for the Eastern District of Michigan when she took office in January of 2010. She was an Assistant U.S. Attorney in Detroit, Michigan, for 12 years, including service as Deputy Chief of the National Security Unit.
U.S. Attorney McQuade is a 1987 graduate of the University of Michigan and a 1991 graduate of the University of Michigan Law School. Before becoming a federal prosecutor, she practiced law in a Detroit firm and served as a law clerk to a U.S. District Judge. From 2003 to 2009, U.S. Attorney McQuade was as an adjunct law professor at the University of Detroit Mercy School of Law.
While U.S. Attorney McQuade replaces U.S. Attorney Hartunian as vice chair, U.S. Attorney Hartunian replaces former U.S. Attorney John Walsh for the District of Colorado as chair.
The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the Attorney General on policy, management and operational issues impacting the offices of the U.S. Attorneys.
Schenectady Man Pleads Guilty to Crack Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Ray A. Perkins, age 29, of Schenectady, New York, pled guilty today to conspiring to distribute more than 100 grams of crack cocaine.
The announcement was made by U.S. Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
Perkins faces at least 5 years and up to 40 years in prison when he is sentenced on December 12, 2016 by Senior United States District Judge Thomas J. McAvoy. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
As part of his plea, Perkins admitted that between December 2015 and March 2016, he and a co-conspirator sold about 106 grams of crack cocaine in the city of Schenectady.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Massachusetts Man Indicted on Child Exploitation ChargesRead the Press Release
ALBANY, NEW YORK – David Rancourt, age 56, of Palmer, Massachusetts, was indicted today for attempting to coerce and entice a minor into sexual activity, after he posted an online advertisement soliciting sexual encounters and travelled to Colonie, New York, to meet what he believed to be a 14-year-old boy in order to engage in sexual activities. Rancourt is also charged with having distributed, received, and possessed child pornography.
The announcement was made by U.S. Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
On April 9, 2016, Rancourt was charged by complaint with attempted coercion and enticement of a minor. He was detained on that charge and has remained in custody ever ince.
If convicted, he faces at least 10 years and up to life in prison on the attempted coercion and enticement charge, and at least 5 years and up to 20 years in prison on the charges of receipt and distribution of child pornography. He also faces a term of post-imprisonment supervised release of at least 5 years and up to life, a fine of up to $250,000, and mandatory registration as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by the Federal Bureau of Investigation and the Colonie Police Department, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/
Troy Man Pleads Guilty to Intending to Sell Crack CocaineRead the Press Release
ALBANY, NEW YORK – Alikubar Shaw, age 33, of Troy, New York, pled guilty today to possessing more than 28 grams of crack cocaine with the intent to sell it.
The announcement was made by U.S. Attorney Richard S. Hartunian; Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation; and New York State Police Superintendent George P. Beach II.
Shaw faces at least 10 years and up to life in prison when he is sentenced on December 19, 2016 by United States District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
As part of his plea, Shaw admitted that on January 7, 2014, he was the passenger in a car that was stopped for a traffic violation in Albany County. The driver of the car had a suspended license, and New York State Police Troopers smelled burnt marijuana coming from the car. As Shaw exited the car to speak with one Trooper, the Trooper noticed Shaw touch his rear waist area, and the Trooper then found 263 grams of crack cocaine there. As part of his plea, Shaw admitted that he intended to sell the crack.
This case was investigated by the Federal Bureau of Investigation and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Washington County Man Pleads Guilty to Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – Tristan Shaw, 31, of Granville, New York, pled guilty yesterday to one count of receiving child pornography, announced United States Attorney Richard S. Hartunian and James C. Spiro, Special Agent in Charge of the Buffalo Division of Homeland Security Investigations (HSI).
As part of his guilty plea, Shaw admitted that between November 26, 2009 and November 26, 2013, while in his Granville, New York residence, he used the Internet and a peer-to-peer file sharing program to receive approximately 200 still image files containing child pornography.
As a result of his conviction, Shaw faces a minimum sentence of five (5) years imprisonment, a maximum term of twenty (20) years imprisonment, a fine of up to $250,000, a term of supervised release of at least five (5) years and up to life, and mandatory registration as a sex offender. Sentencing is scheduled for December 5, 2016 at 10 a.m. in Albany, New York, before Senior U.S. District Judge Gary L. Sharpe.
This case was investigated by Homeland Security Investigations (HSI), and is being prosecuted by Assistant U.S. Attorney Richard Belliss.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Two Indicted for Stealing $2.5 Million from Plattsburgh CompanyRead the Press Release
ALBANY, NEW YORK – Two men were arraigned today on charges that they conspired to steal $2.5 million that they had agreed to maintain in a bank account, but quickly spent instead.
The announcement was made by U.S. Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
Keith Eric Jergensen, age 56, of Salt Lake City, Utah, and Debashis Ghosh, age 52, of Chicago, Illinois, were arraigned today in Albany before U.S. Magistrate Judge Christian F. Hummel, and released pending a trial before U.S. District Judge Brenda K. Sannes.
According to the indictment (copy attached), Jergensen and Ghosh were Co-Chief Executive Officers of Verdant Capital Group, LLC (“Verdant”), which was in the business of helping companies obtain funding sources for construction and energy projects. In November 2010, Verdant was retained by a Plattsburgh, New York, company – identified in the indictment as “Company A” – to raise funds for the construction of an airplane maintenance, repair and overhaul facility in Plattsburgh.
Jergensen and Ghosh asked Company A to invest $2.5 million as seed money for the project. They and Company A agreed that this money would remain in a Wells Fargo account and could not be moved without the authorization of Company A. Company A wired $2.5 million into the account on December 3, 2010. Five days later, Jergensen and Ghosh began transferring the money out of the account, and by March 18, 2011 they had transferred all of the $2.5 million out of the account.
According to the indictment, Jergensen and Ghosh used Company A’s $2.5 million to pay Verdant’s expenses including employees and contractors, and to pay others, including payments totaling $1.75 million to a now-defunct home energy services company that Verdant had agreed to raise money for; a $55,000 “loan” to an acquaintance; and transfers of at least $40,000 to Jergensen’s company Contour Composites, Inc.
Once Company A’s executives discovered that the $2.5 million had been transferred, they began asking Jergensen and Ghosh where it had gone. According to the indictment, Jergensen and Ghosh repeatedly and falsely assured Company A that its money was safe in another Wells Fargo account.
The charges in the indictment are merely accusations. The defendants are presumed innocent until proven guilty.
Jergensen and Ghosh are each charged with one count of wire fraud conspiracy, and, if convicted, face up to 20 years in prison, 2 years of supervised release, and a $250,000 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 is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Schenectady Heroin Distributor Sentenced to 16 YearsRead the Press Release
ALBANY, NEW YORK – Raymond P. Baker, age 37, of Schenectady, New York, was sentenced today to 16 years in prison after a jury found him guilty in December 2015 of participating in a heroin distribution conspiracy.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
Senior United States District Judge Thomas J. McAvoy also sentenced Baker to serve 8 years of supervised release, to begin after Baker is released from prison.
In December 2015, a jury convicted Baker following a 4-day trial. The evidence at trial demonstrated that from January 2015 to June 2015, Baker worked with another person to sell heroin at two locations in Albany County, and that the amount of heroin involved in the conspiracy was 100 grams or more.
This case was investigated by the DEA. It was prosecuted at trial by Assistant U.S. Attorney Michael Barnett, and was prosecuted to indictment by Assistant U.S. Attorneys Wayne A. Myers and Elizabeth R. Rabe.
Middleburgh Man Sentenced for Receipt of Child PornographyRead the Press Release
ALBANY, NEW YORK – Edward Werner, 51, of Middleburgh, New York, was sentenced yesterday to serve one hundred and twenty-one (121) months in federal prison in connection with his conviction for receipt of child pornography, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
Edward Werner pled guilty on March 2, 2016, to a one-count information charging him with receiving child pornography. As part of his guilty plea, Werner admitted that between January 26, 2015 and March 3, 2015, he visited a website that provided for the display and sharing of child pornography, and accessed and viewed a series of images and videos depicting minors engaged in sexually explicit conduct.
United States District Judge Mae D’Agostino also imposed a fine in the amount of $3,000 and a fifteen (15) year term of supervised release, which will start after Werner is released from prison. As a result of his conviction, Werner will be required to register as a sex offender after leaving prison.
This case was investigated by the FBI and the Colonie, New York Police Department, and was prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
North Country Man Pleads Guilty to Illegal Gun PurchaseRead the Press Release
ALBANY, NEW YORK – Donald J. Shappy, Jr., age 57, of Keeseville, New York, pled guilty today to making a false statement during the purchase of a firearm.
The announcement was made by United States Attorney Richard S. Hartunian, Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) New York Field Division, and New York State Police Superintendent George P. Beach II.
Shappy admitted that on March 7, 2016, he falsely certified that he was the true purchaser of a Henry Repeating Arms .22 caliber rifle when he then knew that he was purchasing the firearm for his nephew, Jonathon Shappy, who had been denied the ability to purchase the same rifle two days earlier.
Jonathan Shappy is charged with aiding and abetting his uncle’s false statements. He is presumed innocent until proven guilty.
As a result of his conviction, Donald Shappy faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced by U.S. District Judge Mae D’Agostino on December 1, 2016. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the ATF and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Schenectady Woman Admits to Participating in Jamaican Lottery ScamRead the Press Release
ALBANY, NEW YORK – Kimberly Powell, age 37, of Schenectady, New York, pled guilty today to mail fraud charges arising out of a Jamaica-based lottery scam that mainly targeted elderly victims.
The announcement was made by United States Attorney Richard S. Hartunian and Shelly A. Binkowski, Inspector in Charge, United States Postal Inspection Service, Boston Division.
As part of her plea, Powell admitted to working with her husband Jeragh Powell, a co-defendant, and others, to mail false lottery prize notifications to mostly elderly individuals located throughout the United States. The fraudulent prize notifications letters congratulated the victims on winning a recent drawing and instructed them to pay tens of thousands of dollars in “fees and taxes,” and “shipping and handling,” in order to receive their purported prize money and cars. Members of the conspiracy located in Jamaica also communicated with the victims by telephone, directing them to make payments to specific individuals in the United States.
Kimberly Powell and her husband Jeragh, age 25, of Schenectady, received more than $67,000 from victims of the scheme, and forwarded a large portion of the proceeds to Jeragh Powell’s associates in Jamaica. Jeragh Powell pled guilty to mail fraud charges on August 1.
Jeragh and Kimberly Powell each face up to 20 years in prison, 3 years of post-imprisonment supervised release, and a $250,000 fine when they are sentenced by U.S. District Judge Mae A. D’Agostino. Jeragh Powell’s sentencing is scheduled for November 29, Kimberly Powell’s for December 2. 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 Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Plattsburgh Heroin Dealer Sentenced to 71 MonthsRead the Press Release
SYRACUSE, NEW YORK – John V. Brown, age 45, of New York City, was sentenced yesterday to serve 71 months in prison, to be followed by 4 years of supervised release, for supplying heroin in the Plattsburgh area.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
The sentence followed Brown’s October 21, 2015 guilty plea. Senior U.S. District Judge Frederick J. Scullin, Jr. sentenced Brown, also known as “Football,” for supplying at least half a kilogram of heroin to the Plattsburgh area between July and December of 2014.
This case was investigated by the DEA and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
Ilion Man Sentenced for Sexual Exploitation of His DaughterRead the Press Release
SYRACUSE, NEW YORK -- An Ilion, New York man who portrayed himself on social media as a teenage boy to sexually exploit his own daughter, was sentenced today to serve 20 years in prison for his crimes, announced United States Attorney Richard S. Hartunian.
In court papers and as part of his guilty plea, the defendant admitted that in 2013 he assumed the false identity of “Dan Smithson” and used social media to contact, befriend, and sexually exploit his then 14 year old daughter. As a part of the ruse, “Dan Smithson” became the child’s “boyfriend,” encouraged her to engage with him in sexually explicit chats, and when the child attempted to end the relationship, blackmailed her into taking and sending him sexually explicit images of herself – by threatening to reveal their explicit correspondence to her father, who was in reality sending her the messages himself.
The defendant previously pled guilty to all twelve counts of the federal superseding indictment, including charges of sexual exploitation of a minor; receipt, transportation and distribution of child pornography; and transferring obscene material to a minor younger than sixteen.
Earlier this year, in Herkimer County Court, the defendant was sentenced to imprisonment for six years for his actual physical sexual abuse of the daughter, which occurred after he concocted the fake “suicide” of “Smithson,” the fictitious online boyfriend.
While he was sexually abusing his daughter, the defendant also continued to harass her with anonymous electronic communications sending the sexually explicit images and graphically describing his sexual desires and intentions for her.
United States Attorney Richard S. Hartunian said: “The defendant’s grotesque manipulation of his own daughter is shocking even to those of us who have seen depravity in its rawest form in prior cases. His incestuous crimes were deviously planned and ruthlessly executed. The outstanding work of local police and the FBI in bringing this predator to justice reflects our resolve to use all the resources of the law to protect our children.”
“The defendant used the anonymity of the internet to target and victimize his own daughter,” said Special Agent in Charge Andrew W. Vale. “He has betrayed every law of human decency. His actions are as appalling as they are unimaginable. Predators like him are on notice, their horrific crimes will not remain hidden. The FBI, together with our law enforcement partners, will bring them to justice.”
In addition to imprisonment, the sentence imposed by United States District Judge Brenda K. Sannes included a lifetime term of supervised release and required registration as a sex offender.
The case was investigated by the Ilion Police Department, the Herkimer County District Attorney’s Office, and the Federal Bureau of Investigation, and prosecuted by Assistant U.S. Attorney Lisa M. 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, 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 www.projectsafechildhood.gov.
Albany Man Sentenced to 60 Months for Child Pornography DistributionRead the Press Release
ALBANY, NEW YORK – Michael G. Isaacson, age 34, of Albany, was sentenced today to 60 months in prison for distributing and possessing child pornography, announced U.S. Attorney Richard S. Hartunian.
Senior U.S. District Judge Gary L. Sharpe also sentenced Isaacson to 25 years of supervised release, to be served after his release from prison. Isaacson will also be required to register as a sex offender.
As part of his plea on March 1, Isaacson admitted that he distributed child pornography files over the Internet. He also admitted to possessing more than 1,000 image files, and more than 30 video files, depicting minors engaged in sexually explicit poses or conduct.
This case was investigated by the Colonie Police Department and the Federal Bureau of Investigation’s Albany Division, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Syracuse Area Woman Sentenced to Ten Months in Prison for Theft of Pension FundsRead the Press Release
SYRACUSE, NEW YORK – Lorraine Lorini (56), of Nedrow, New York, was sentenced today in federal court in Syracuse to serve 10 months in prison for her theft of government money in connection with her fraudulently obtaining pension benefits in her deceased mother’s name. In addition to the 10-month prison sentence, Senior United States District Judge Frederick J. Scullin, Jr. ordered Lorini to pay $30,074.80 in restitution to the Pension Benefit Guaranty Corporation (PBGC) and directed her to serve a three (3) year term of supervised release following her release from prison. The sentence was announced by United States Attorney Richard S. Hartunian and Robert A. Westbrooks, Inspector General of the Pension Benefit Guaranty Corporation (PBGC).
In previously filed court documents, Lorini admitted that she applied for and received pension benefits on behalf of her mother, who was deceased. The funds were paid by PBGC, an independent agency of the United States that acts as a guarantor of pension plans. As part of her guilty plea, Lorini admitted that she collected pension benefits in her deceased mother’s name for several years and retained this money for her own use, knowing it was obtained by fraud.
Following the sentencing hearing, Inspector General Westbrooks stated, “The Office of Inspector General of the Pension Benefit Guaranty Corporation will continue to aggressively investigate those who illegally obtain pension benefits for which they are not entitled. These cases are critical to ensuring the integrity of the Pension Benefit Guaranty Corporation’s programs that protect the retirement benefits of more than 40 million American workers and retirees.” U.S. Attorney Hartunian stated, “As was demonstrated here, the safeguarding of taxpayer money is among the first duties of good government and those who steal from federal programs risk prosecution and prison.”
This case was investigated by the Office of Inspector General for PBGC, and was prosecuted by Assistant United States Attorney Michael F. Perry.
Schenectady Man Admits to Participating in Jamaican Lottery ScamRead the Press Release
ALBANY, NEW YORK – Jeragh Powell, age 25, of Schenectady, New York, pled guilty today to mail fraud charges arising out of a Jamaica-based lottery scam that mainly targeted elderly victims.
The announcement was made by United States Attorney Richard S. Hartunian and Shelly A. Binkowski, Inspector in Charge, United States Postal Inspection Service, Boston Division.
As part of his plea, Powell, a citizen of Jamaica, admitted to working with his wife Kimberly Powell, a co-defendant, and others, to mail false lottery prize notifications to mostly elderly individuals located throughout the United States. The fraudulent prize notifications letters congratulated the victims on winning a recent drawing and instructed them to pay tens of thousands of dollars in “fees and taxes” and “shipping and handling” in order to receive their purported prize money and cars. Members of the conspiracy located in Jamaica also communicated with the victims by telephone, directing them to make payments to specific individuals in the United States.
Jeragh Powell and his wife Kimberly, age 37, of Schenectady, received more than $67,000 from victims of the scheme, and forwarded a large portion of the proceeds to Jeragh Powell’s associates in Jamaica. Kimberly Powell is scheduled to plead guilty to mail fraud charges on August 3.
Jeragh Powell faces up to 20 years in prison, 3 years of post-imprisonment supervised release, and a $250,000 fine when he is sentenced on November 29, 2016 by U.S. District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Postal Inspection Service and Homeland Security Investigations (HSI), and is being prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
To report or learn more about mail-based scams, please contact the U.S. Postal Inspection Service, at 877-876-2455 or by visiting https://postalinspectors.uspis.gov.
ST. Joseph’s Hospital to Pay $3.2 Million for Billing MEDICAID for Mental Health Services Rendered by Unqualified StaffRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian and New York State Attorney General Eric T. Schneiderman announced today that St. Joseph’s Hospital Health Center (St. Joseph’s) will pay $3.2 million to resolve allegations that it violated the federal and New York False Claims Acts by presenting false claims for payment to the state Medicaid program for mental health services rendered by unqualified staff.
Medicaid is a jointly funded federal-state program that provides health care to needy individuals. St. Joseph’s operates a Comprehensive Psychiatric Emergency Program (CPEP) that provides evaluation and treatment to individuals suffering from an acute mental health crisis. The CPEP’s “mobile crisis outreach” unit provides initial evaluation and assessment and crisis intervention services to individuals in Onondaga and Madison counties who are unable or unwilling to use hospital-based crisis intervention services in the emergency room. The mobile crisis outreach unit also provides interim crisis services for patients discharged from the emergency room who require follow up care from a mental health professional.
“Today’s settlements reflect my office’s commitment to protecting Central New York’s most vulnerable citizens, including those in crisis,” said U.S. Attorney Hartunian. “We will continue to use the False Claims Act to protect health care beneficiaries and the federal fisc by ensuring that taxpayers do not pay for services rendered by unlicensed or unqualified individuals.”
New York State has issued regulations governing the staffing of CPEPs. The regulations provide that at least two CPEP staff members, one of whom must be a member of the professional staff, shall be present whenever crisis intervention services are rendered outside of an emergency room. Professional staff includes credentialed alcohol counselors, physicians, psychiatrists, psychologists, registered professional nurses, rehabilitation counselors and social workers. The regulations condition payment of claims for CPEP services on compliance with these staffing requirements, making clear that use of qualified staff is a prerequisite to government payment of Medicaid claims for these services.
Today’s settlements resolve allegations that St. Joseph’s knowingly presented false claims for payment to Medicaid for mobile-crisis outreach services rendered from January 1, 2007 through February 29, 2016 by personnel who failed to satisfy the basic CPEP staffing requirements. By submitting claims for payment to Medicaid without disclosing that its CPEP staff failed to meet the regulatory staffing requirements, and by accepting payment for these claims, the governments allege that St. Joseph’s misrepresented its compliance with mental health staffing requirements that are central to the provision of counseling services and, by doing so, violated the False Claims Act. As part of today’s settlements, St. Joseph’s admits that it was improper to have conducted mobile crisis outreach visits without a member of its CPEP professional staff present and then bill Medicaid for such services.
“Mental health staffing requirements are intended to protect the public and avoid the waste of public funds by ensuring that services are delivered by qualified personnel in a meaningful way,” said New York State Attorney General Schneiderman. “We will continue to work with our federal partners to fight to recover misappropriated money on behalf of New York’s taxpayers.”
“Individuals that receive mental health services deserve to be treated by properly qualified providers, something St. Joseph’s failed to ensure,” said Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (HHS-OIG). “HHS-OIG is committed to protecting the taxpayers and the federally funded health care programs intended for the nation’s most vulnerable citizens.”
This investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the federal and New York False Claims Acts, which allow private persons, known as “relators,” to file civil actions on behalf of the government and share in any recovery. The relator in this case will receive $560,000 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 5:14-cv-850.
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the New York State Attorney General’s Office, and HHS-OIG. The United States was represented by Assistant U.S. Attorney Adam J. Katz and New York State was represented by Special Assistant Attorney General Jill D. Brenner.
Rome Man Indicted for Unlawful Possession of a FirearmRead the Press Release
SYRACUSE, NEW YORK – Michael Dyer, age 32, of Rome, New York, was arraigned today on a charge of being a felon in possession of a firearm.
The announcement was made by United States Attorney Richard S. Hartunian and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
Dyer is charged with being a felon in possession of a 12 gauge shotgun. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
If convicted, Dyer faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Dyer was arraigned today in Syracuse, before United States Magistrate Judge Andrew T. Baxter, and detained pending a trial scheduled for September 26, 2016 before Chief United States District Court Judge Glenn T. Suddaby.
This case is being investigated by the Oneida County Drug Enforcement Task Force and the ATF, and is being prosecuted by Assistant U.S. Attorney Robert S. Levine.
Massena Drug Dealer Sentenced to 24 MonthsRead the Press Release
ALBANY, NEW YORK –William Rochefort, age 21, of Massena, New York, was sentenced on Tuesday to serve 24 months in prison, to be followed by 3 years of supervised release, for his role in a drug trafficking organization that distributed heroin and crack cocaine in Massena.
The announcement was made by United States Attorney Richard S. Hartunian; James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and Adam Love, Chief of the Massena Police Department.
The sentence followed Rochefort’s February 25, 2016 guilty plea.
U.S. District Judge Mae D’Agostino sentenced Rochefort for participating in the distribution of heroin and crack cocaine that was transported from New York City to Massena.
This case is the result of a year-long investigation led by HSI’s Border Enforcement Security Task Force (BEST) in Massena, which consists of law enforcement officers from the Massena Police Department, the St. Lawrence County Sheriff’s Department and the New York State Police, and which receives assistance from the U.S. Border Patrol, the Drug Enforcement Administration, the District Attorneys of Clinton, Franklin, and St. Lawrence Counties, the St. Regis Mohawk Tribal Police Department, the Oneida Indian Nation Police, U. S. Customs and Border Protection, the U.S. Coast Guard Investigative Service, the Potsdam Police Department, the Royal Canadian Mounted Police, the Surete du Quebec, and the New York Attorney General’s Office. The case was prosecuted by Assistant U.S. Attorneys Katherine Kopita and Douglas Collyer.
Canandaigua Man Indicted for Threatening to Kill VA Employees in AlbanyRead the Press Release
ALBANY, NEW YORK – Robert J. Seifert, age 58, of Canandaigua, New York, was indicted today on charges that he threatened to commit a mass shooting at the Stratton VA Medical Center in Albany.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge Jeffrey G. Hughes of the U.S. Department of Veterans Affairs (VA) Office of Inspector General, Northeast Field Office.
According to the indictment, Seifert made phone calls on June 15, 2016 in which he threatened to kill a VA Police Officer, “kill everybody at the Albany VA,” and go to the Stratton VA Medical Center “with my Uzi and … start shooting people up.” The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Seifert has been in custody since July 14, when he was arrested in Buffalo on a criminal complaint. U.S. Magistrate Judge H. Kenneth Schroeder, Jr., of the Western District of New York, ordered Seifert detained pending his initial appearance in Albany. Seifert will appear in Albany at a later date.
If convicted on all charges, Seifert faces up to 10 years in prison and up to 3 years of post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the U.S. Department of Veterans Affairs Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Former NYS Corrections Officer Pleads Guilty to Marijuana Distribution ConspiracyRead the Press Release
PLATTSBURGH, NEW YORK – Brad Rushford, age 33, of Ellenburg Depot, New York, pled guilty today to being a member of a drug distribution conspiracy that involved more than 100 kilograms of marijuana, announced United States Attorney Richard S. Hartunian.
As part of his guilty plea, Rushford admitted to coordinating the transportation and delivery of marijuana loads smuggled into the United States from Canada and bound for locations throughout the eastern United States. Rushford was a Corrections Officer with the New York State Department of Corrections and Community Supervision. His co-defendant and mother, Freda Rushford, pled guilty on July 6 to making a false statement to federal officers, and to being part of the same marijuana distribution conspiracy.
As a result of his conviction, Rushford faces at least 5 years and up 40 years in prison, a fine of up to $5,000,000, and a term of supervised release of at least 4 years and up to life. Sentencing is scheduled for December 1, 2016 before U.S. District Judge David N. Hurd in Utica. A defendant’s sentence is imposed by the judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by Homeland Security Investigations (HSI); the Federal Bureau of Investigation; U.S. Customs and Border Protection; the U.S. Coast Guard Investigative Service; the New York State Department of Corrections and Community Supervision, Office of Special Investigations; the New York State Police; and the St. Regis Mohawk Tribal Police. The case is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Fayetteville Man Sentenced to 18 Months for Tax EvasionRead the Press Release
UTICA, NEW YORK – Edward J. Purcell, Sr., age 65, of Fayetteville, New York, was sentenced today to serve 18 months in prison for tax evasion.
The announcement was made by United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office.
U.S. District Judge David N. Hurd also sentenced Purcell to 3 years of supervised release, to begin after his release from prison, and also ordered him to pay $347,128 in restitution to the Internal Revenue Service (“IRS”).
In December 2015, Purcell pled guilty to one count of tax evasion.
During the years 2008 through 2010, Purcell owned and operated American Roofing Company (“ARC”) in the Syracuse area. In this time period, he failed to report any of the income he received from ARC by not filing federal income tax returns, despite receiving taxable income in the amount of $655,937.
For the tax years 2008, 2009, and 2010, Purcell willfully evaded the payment of taxes on his individual income, which totaled $150,980, $333,614, and $171,343, respectively. The total tax loss for the years 2008 through 2010 was $231,362. Purcell also agreed to repay the IRS an additional $115,766, representing the tax loss for 2007.
Purcell concealed his income by depositing checks payable to ARC into nominee bank accounts, which he controlled through powers of attorney. Purcell set up these bank accounts in the names of his close friends and family members for the purpose of concealing his income from the IRS.
This case was investigated by IRS-Criminal Investigation, and was prosecuted by Assistant U.S. Attorney Ransom P. Reynolds.
Schenectady Felon Pleads Guilty to Possessing GunRead the Press Release
ALBANY, NEW YORK – Lawrence Giggetts, age 36, of Schenectady, New York, pled guilty today to illegally possessing a firearm.
The announcement was made by United States Attorney Richard S. Hartunian and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
As part of his plea, Giggetts admitted to possessing a Raven .25 caliber handgun with a serial number that had been defaced in an attempt to remove it. A prior felony conviction prevented Giggetts from legally possessing a firearm.
Giggetts faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced on November 22, 2016 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.
This case was investigated by the ATF and the Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Jefferson County Man Sentenced to 50 Years for Sexual Exploitation of a ChildRead the Press Release
SYRACUSE, NEW YORK – Brok Chase, age 29, of Fort Drum, New York, was sentenced today to serve a total of 50 years in prison as a result of his guilty plea to four counts of sexually exploiting a young child for the purpose of producing images of the abuse.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
United States District Judge Brenda K. Sannes also sentenced Chase to lifetime supervised release, to begin after his release from prison. Chase would also be required to register as a sex offender upon his release from prison.
As part of his March 2016 guilty plea, Chase admitted that he sexually abused a child in Jefferson County beginning in 2014, when the child was 6 years old, and into 2015. Chase also admitted that he began exploiting the child even earlier, before moving to New York. Chase’s abuse of the child, and his visual depictions of the abuse, were discovered following the FBI’s execution of a search warrant at his Jefferson County home in September 2015. The search warrant was authorized based on evidence gathered by the FBI in Louisville, Kentucky, indicating that Chase had been trading child pornography on the Internet. Following execution of the search warrant, forensic analysis of Chase’s electronic devices found that, in addition to the images of his abuse of the child in Jefferson County, Chase possessed more than 9,000 images and 98 video files containing child pornography that he obtained from others through the Internet.
Chase was investigated by the Federal Bureau of Investigation Syracuse Resident Agency, Albany Division, and the FBI’s Louisville, Kentucky Child Exploitation Task Force, with assistance from the U.S. Army Criminal Investigations Command and New York State Police. He was prosecuted by Assistant United States Attorney Lisa Fletcher.
The joint effort is a part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Schenectady Heroin Dealer Sentenced to 60 MonthsRead the Press Release
ALBANY, NEW YORK – Jorge Rivas-Rivera, age 47, of Schenectady, New York, was sentenced today to serve 60 months in prison after being convicted of distributing heroin.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
U.S. District Judge Mae A. D’Agostino also sentenced Rivas-Rivera to serve 6 years of supervised release, to begin upon his release from prison.
On March 24, Rivas-Rivera pled guilty to selling heroin in Schenectady in May and July 2014.
This case was investigated by the DEA and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Etna Man Convicted After Jury Trial on Child Pornography ChargesRead the Press Release
BINGHAMTON, NEW YORK – A federal jury today convicted Robert Snyder, 67, of Etna, New York, of receipt, possession, and accessing with intent to view child pornography following a four day long trial, said United States Attorney Richard S. Hartunian, Inspector in Charge Shelly Binkowski, United States Postal Inspection Service, and the Toronto (Canada) Police Service.
Snyder faces a minimum of 5 years and up to 20 years in prison when he is sentenced on November 22, 2016, by Senior United States District Judge Thomas J. McAvoy. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The evidence at trial showed that in 2010 and 2011 Snyder purchased seven (7) DVD disks containing child pornography videos from Azovfilms, a company located in Toronto, Canada. A search warrant executed at the offices of Azovfilms resulted in the seizure of records and documents which showed that Snyder and others purchased child pornography videos. Additionally, a search of Snyder’s residence in October of 2014 resulted in the seizure of computers and other digital storage media which contained numerous additional images of child pornography.
This case was investigated by the United States Postal Inspection Service with assistance from the Toronto (Canada) Police Service and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Stephentown Man Sentenced to 30 Years for Gun and Drug ConvictionsRead the Press Release
ALBANY, NEW YORK – Joshua Stegemann, age 39, of Stephentown, New York, was sentenced today to serve 30 years of imprisonment, to be followed by lifetime supervised release, for (i) possessing cocaine, heroin, and oxycodone with the intent to distribute; (ii) possessing two handguns in furtherance of a drug trafficking crime; and (iii) unlawfully possessing three firearms and ammunition as a felon.
The announcement was made by United States Attorney Richard S. Hartunian and James J. Hunt, Special Agent in Charge, New York Division, U.S. Drug Enforcement Administration (DEA).
Stegemann was convicted in August 2015 following a jury trial. The evidence at trial showed that Stegemann, a longtime resident of Stephentown, used his house and surrounding property as a base of operation for his drug trafficking business. On April 30, 2013, investigators executed a search warrant at Stegemann’s house and surrounding property, and recovered large amounts of cocaine, heroin, and oxycodone pills, along with two loaded handguns, a loaded shotgun, and over $296,000 in U.S. currency. Most of these items were found hidden either inside of Stegemann’s house or in and around various landscaping features on his property, such as rock gardens, a stump pile and pine trees.
On May 3, 2013, investigators recovered a safe hidden by Stegemann in a Pittsfield, Mass. residence. The safe was found to contain more than $160,000 in U.S. currency. Cumulatively, investigators recovered more than 600 grams of cocaine, more than 30 grams of heroin, more than 700 oxycodone pills, three firearms, dozens of rounds of ammunition, and more than $450,000 in U.S. currency.
The investigation was initiated by the Massachusetts State Police, who were subsequently joined by the Rensselaer County Sheriff’s Office, the DEA, and the New York State Police. This case was prosecuted by Assistant United States Attorney Rick Belliss.
Little Falls Man Pleads Guilty to Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK – Eric Jaquays, age 53, of Little Falls, New York, pled guilty today to distributing child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and James Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his guilty plea, Jaquays admitted that between December 27, 2014 and December 12, 2015, while in his Little Falls residence, he used the Internet and a peer-to-peer file sharing program to distribute 27 video files containing child pornography.
As a result of his conviction, Jaquays faces at least 5 years and up to 20 years in prison, a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration as a sex offender. Sentencing is scheduled for November 17, 2016 before U.S. District Judge David N. Hurd in Utica. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by Homeland Security Investigations and the Saratoga Springs Police Department, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Troy Man Sentenced for Health Care FraudRead the Press Release
ALBANY, NEW YORK – Michael VonFricken, age 45, of Troy, New York, was sentenced today to 3 years of probation and 3 months of weekend incarceration at the Rensselaer County Jail for his part in a health care fraud that provided him with $32,732 in cash reimbursements from a local union, announced United States Attorney Richard S. Hartunian.
The sentence was issued by U.S. District Judge Mae A. D’Agostino, and followed Michael VonFricken’s guilty plea, on February 24, 2016, to obtaining false receipts for orthodontic services and submitting them to the health care plan for the Plumbers and Steamfitters, Local Union Number 7.
As part of his sentence, Michael VonFricken must complete 50 hours of community service and pay back the $32,732 that he fraudulently obtained.
Michael VonFricken’s brother, John VonFricken, also of Troy, was sentenced on July 5 for defrauding the same union health plan. John VonFricken also pled guilty in February to fraud, and to obtaining $54,600 in reimbursements for orthodontic work that he did not receive. He also received a sentence of 3 years of probation and 3 months of weekend incarceration. John VonFricken was ordered to repay $54,000 to the union health plan.
This case was investigated by the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
St. Lawrence County Felon Sentenced to 46 Months for Firearm, Ammunition PossessionRead the Press Release
SYRACUSE, NEW YORK – Clayton T. Brothers, age 40, of Russell, New York, was sentenced today to 46 months in prison, to be followed by 3 years of supervised release, for illegally possessing a firearm and more than 1,000 rounds of ammunition.
The announcement was made by United States Attorney Richard S. Hartunian; James Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); New York State Police Superintendent George P. Beach II; and Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision.
The sentence, issued by U.S. District Judge Brenda K. Sannes, followed Brothers’s March 25, 2016 guilty plea. He pled guilty to possessing, at his home in St. Lawrence County, a Sig Sauer pistol and more than 1,000 rounds of 5.56 mm caliber NATO Lake City XM855 Grain Steel Penetrator ammunition. Brothers was convicted of robbery in Pennsylvania in 1996. As a felon he could not lawfully possess a firearm or ammunition.
This case was investigated by HSI, the New York State Police and New York State Department of Corrections and Community Supervision, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
Cazenovia Man Convicted of Fraud and Money LaunderingRead the Press Release
SYRACUSE, NEW YORK – Following a seven-day trial, a jury returned a verdict today against James P. Griffin, 71, of Cazenovia, finding him guilty of all 23 counts of mail and wire fraud and money laundering, announced United States Attorney Richard S. Hartunian.
The evidence at trial showed Griffin is the Chief Executive Officer of several companies using variations of the names 54 Freedom and 5 Ledyard, all headquartered at 5 Ledyard Avenue, Cazenovia, New York. Testimony and documents established that Griffin solicited over $1.6 million in sales from 2009 to 2011 through a scheme involving a financial product called the 54 Freedom Charitable Gift Annuity. Griffin promised that the product was backed by a highly-rated, major insurance carrier and would provide guaranteed lifetime income to the purchaser. The trial evidence also showed that Griffin knew the Charitable Gift Annuities were not underwritten by insurance companies, and purchasers received no payments after 2013. Griffin was convicted of mail and wire fraud related to this scheme, and laundering money through various company bank accounts.
The jury also found Griffin guilty of mail fraud based on a scheme to entice investors to use retirement funds to invest in his companies by falsely promising to protect them from the tax consequences of withdrawing funds from qualified retirement accounts. Through this scheme, Griffin received at least $370,000.
Over the course of seven days, forty-one witnesses testified in the government’s case, and Griffin testified in his own defense.
Griffin will be sentenced in Syracuse on November 15, 2016, by Senior U.S. District Judge Frederick J. Scullin, Jr., who presided over the trial. Griffin faces a maximum term of imprisonment of twenty years on each of the mail and wire fraud counts and ten years on the money laundering counts. Each count carries a maximum fine of $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 Internal Revenue Service, Criminal Investigation, and the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorneys Edward R. Broton and Carina H. Schoenberger.
California Woman Sentenced in Marijuana and Money Laundering ConspiraciesRead the Press Release
SYRACUSE, NEW YORK – Simona Borissova, 31, of Danville, California, was sentenced on Friday by Chief U.S. District Judge Glenn T. Suddaby to a term of 24 months imprisonment, followed by 3 years of supervised release, and ordered to forfeit $273,665.00 in a money judgment, announced United States Attorney Richard S. Hartunian. The sentence followed her February 26, 2016 guilty plea to one count of conspiracy to distribute marijuana and one count of conspiracy to commit money laundering.
According to her written plea agreement, between January 2011 and August 2015, Simona Borissova, who lived in Las Vegas, caused marijuana to be driven from a marijuana farm in Northern California, owned by her parents, to various stash houses in Las Vegas, where others in the criminal conspiracy would take possession of the marijuana and ship it to Utica, New York and other cities around the United States. It was further part of the conspiracy that to pay for the marijuana shipped to individuals in Utica, New York, marijuana buyers and co-conspirators would deposit money into various bank accounts, some held in the names of third parties including Borissova. The cash was then withdrawn by Borissova from her accounts and used to purchase more marijuana, pay expenses, or otherwise spent at Borissova’s discretion.
As part of her guilty plea, Borissova admitted she knew the financial transactions involved proceeds from the marijuana distribution conspiracy and were conducted to conceal the true nature, source, and control of the proceeds. Borissova admitted in court that she conspired with others to engage in money laundering involving $273,665, which was the total amount of money orders purchased with proceeds from the sale of marijuana in and around Utica, New York which was used for payment for the marijuana shipped from California to Utica, New York.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, the Bureau of Alcohol, Firearms, Tobacco and Explosives, the Drug Enforcement Administration, the Oneida County Sheriff’s Office, the New York State Police, the Oneida County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Carl G. Eurenius and Special Assistant U.S. Attorney and Oneida County ADA Grant J. Garramone.
Watertown Man Sentenced for Illegally Possessing MachinegunsRead the Press Release
SYRACUSE, NEW YORK – Bruce Fowler, 60, of Watertown, New York, was sentenced by Senior U.S. District Judge Norman A. Mordue to a term of imprisonment of 1 year and 1 day to be followed by 3 years of supervised release for illegally possessing three (3) machinegun conversion devices, announced United States Attorney Richard S. Hartunian. The sentence followed his March 9, 2016 guilty plea.
It is illegal to possess fully automatic machine guns in the United States, and cannot legally be offered for sale. Realizing that, Fowler bought conversion devices from a foreign supplier and used them to convert a Glock handgun and an AR-15 rifle to fire as fully automatic. He also purchased two high capacity magazines for the Glock handgun. When confronted by U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agents about these purchases, Fowler initially denied that he had done so, then admitted to only the purchases known by ATF at the time and surrendered those devices to ATF while concealing that he had purchased yet another device. When confronted by ATF about that final conversion device, Fowler admitted making that purchase as well, but claimed that he had discarded it and other materials in a trash dumpster.
This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives-Syracuse Resident Office, and was prosecuted by Assistant U.S. Attorney Ransom P. Reynolds.
Troy Resident Sentenced for Marriage FraudRead the Press Release
ALBANY, NEW YORK – Mary Opoka, age 56, of Troy, New York, was sentenced today to 3 years of probation following a jury conviction for marriage fraud.
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).
The sentence was issued by Senior United States District Court Judge Thomas J. McAvoy and followed a one-week trial in November 2015. As part of the sentence, Opoka must also complete 150 hours of community service.
The evidence at trial established that in October 2011, Opoka, a U.S. citizen, married Gaurav Mehta, in Troy. At the time Gaurav Mehta was an alien unlawfully present in the United States. The fraudulent marriage was designed to enable Gaurav Mehta to stay in the United States as a spouse of a U.S citizen.
Opoka was tried and found guilty along with Gaurav Mehta, age 36, and Isha Mehta, also known as Isha Kamboj, also known as Isha Johnson, age 33. The Mehtas are citizens of India. Yesterday, Judge McAvoy sentenced each of them to 3 years of probation and payment of a $2,000 fine, following their jury convictions for marriage fraud and immigration fraud.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Troy Man Indicted for Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBANY, NEW YORK – Gregory L. Clark, age 26, of Troy, New York, was indicted yesterday for being a felon in possession of a firearm and ammunition.
The announcement was made by U.S. Attorney Richard S. Hartunian, Troy Police Chief John F. Tedesco, and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
Clark is charged with possessing a loaded Ruger .357 caliber revolver. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
If convicted, Clark faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Clark has been in custody since April 2, 2016. On that day, according to a criminal complaint, Troy Police officers responding to a report of a man with a gun found Clark hiding in a closet in an apartment in the Lansingburgh section of Troy. They also found the loaded Ruger revolver in the closet.
This case is being investigated by the Troy Police Department and ATF, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Schoharie Man Sentenced to 18 Months for Defrauding FEMARead the Press Release
ALBANY, NEW YORK – Scott A. Clapper, Jr., age 31, of Schoharie, New York, was sentenced today to 18 months in prison for making false statements and submitting false documents in connection with government benefits he received following Hurricane Irene.
The announcement was made by United States Attorney Richard S. Hartunian and Giovanni Tiano, Special Agent in Charge of the Department of Homeland Security’s Office of Inspector General, Detroit Field Office.
Senior U.S. District Judge Thomas J. McAvoy also ordered Clapper to serve 3 years of supervised release, to begin upon Clapper’s release from prison; to pay $16,426 in restitution to the Federal Emergency Management Agency (FEMA); and to pay a $1,300 special assessment to the Court. Clapper will serve the 18-month prison sentence concurrently with state prison sentences he is currently serving for burglary convictions unrelated to his defrauding of FEMA. He becomes eligible for state parole in March 2019.
As part of his guilty plea in January, Clapper admitted to making false statements and submitting false documents to FEMA following Hurricane Irene, which struck New York in August 2011 and made uninhabitable the Schoharie County home in which Clapper was living at the time.
Clapper told FEMA that his monthly rent at his new home, in Westerlo, was $1,200, when it was really $500. In an effort to document the $1,200 monthly rent, Clapper also submitted to FEMA fake lease agreements and rent receipts containing the forged signature of his landlord. Clapper received $16,426 from FEMA as a result of these falsehoods.
This case was investigated by the Detroit Field Office of the Department of Homeland Security’s Office of Inspector General, and was prosecuted by Assistant United States Attorney Michael Barnett.
Two Citizens of India Sentenced for Marriage and Immigration FraudRead the Press Release
ALBANY, NEW YORK – Gaurav Mehta, age 36, and Isha Mehta, also known as Isha Kamboj, also known as Isha Johnson, age 33, citizens of India, were each sentenced today to 3 years of probation and ordered to pay a $2,000 fine, following jury convictions for marriage fraud and immigration fraud.
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).
The sentence was issued by Senior United States District Court Judge Thomas J. McAvoy and followed a one-week trial in November 2015. As part of their respective sentences, each defendant must also complete 100 hours of community service. As citizens of India not lawfully present in the United States, the Mehtas also face removal from the country.
The third defendant who proceeded to trial, Mary Opoka, age 56, of Troy, is scheduled to be sentenced tomorrow for marriage fraud.
The evidence at trial established: Gaurav and Isha Mehta were married in India in February 2006. They claimed to be divorced in India in 2009, but then flew together, along with their child, to the United States, eventually settling in Menands, New York, and working together at a Menands gas station. The Mehtas came to the United States on 6-month tourist visas that expired in 2010; neither had authorization to stay in the United States.
In October 2011, Opoka, a U.S. citizen, and Gaurav Mehta, an alien unlawfully present in the United States as of January 2010, were married in Troy. The fraudulent marriage was designed to enable Gaurav Mehta to stay in the United States as a spouse of a U.S. citizen.
Isha Mehta, an alien unlawfully present as of January 2010, married a U.S. citizen, in Troy, in January 2013. Gaurav Mehta paid the citizen $2,000 to marry Isha. The fraudulent marriage was designed to enable Isha Mehta to stay in the United States as a spouse of a U.S. citizen.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Former Fultonville Resident Sentenced to 18 Months for Environmental Fraud SchemeRead the Press Release
SYRACUSE, NEW YORK - David L. Frisby, age 65, of Kiln, Mississippi, was sentenced today to 18 months in prison for defrauding scrap metal brokerage firms out of more than $144,000.
The announcement was made by United States Attorney Richard S. Hartunian; Vernesa Jones-Allen, Special Agent in Charge of the Environmental Protection Agency (EPA) Criminal Investigations Division, and EPA Office of Inspector General Special Agent in Charge Thomas Muskett.
The sentence was imposed by Chief United States District Judge Glenn T. Suddaby. In addition to the term of imprisonment, Frisby was ordered to pay $144,216 in restitution to his victims.
Frisby, formerly of Fultonville, New York, pled guilty on December 10, 2015 to one count of conspiracy to commit wire fraud in connection with a scheme in which he and others entered into contracts for the disposal of batteries and other metal waste under false pretenses. As part of his plea agreement, Frisby admitted that he and his co-conspirators falsely held themselves out to be representatives of a scrap metal recycling firm that was authorized by the EPA to dispose of metal waste by shipping it to Korea, and that they defrauded businesses and individuals by charging them for recycling services that were never provided. In reality, Frisby and his co-conspirators were not authorized by the EPA to provide scrap metal recycling services and never intended to provide such services.
To further the scheme, Frisby, who formerly served as the Chief Executive Officer of D & L Heritage Enterprises, Inc., provided his co-conspirators with D & L Heritage incorporation documents that were fraudulently altered and e-mailed to victims. Victims transferred money to bank accounts maintained by Frisby, who retained a portion of the funds for his personal benefit and transferred the remainder to his co-conspirators overseas.
The case was investigated by the EPA Criminal Investigations Division and the EPA Office of the Inspector General. The case was prosecuted by Assistant United States Attorney Sean O’Dowd.
Schenectady heroin dealer sentenced to 60 monthsRead the Press Release
ALBANY, NEW YORK – George R. Hilts, Jr., age 48, of Schenectady, New York, was sentenced today to serve 60 months in prison after being convicted of distributing heroin.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration.
Senior U.S. District Judge Thomas J. McAvoy also sentenced Hilts to serve 3 years of supervised release, to begin upon his release from prison.
On March 4, Hilts pled guilty to selling heroin to another person twice in Schenectady in April 2014.
This case was investigated by the Drug Enforcement Administration and the Schenectady Police Department, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Former Rensselaer County Corrections Officer SentencedRead the Press Release
ALBANY, NEW YORK – Former Rensselaer County Corrections Officer Mark A. Piche, age 47, of Poestenkill, New York, was sentenced today to 1 year of probation and to pay a $5,000 fine for obstructing the administration of the internal revenue laws.
The announcement was made by United States Attorney Richard S. Hartunian; Shantelle P. Kitchen, Special Agent in Charge of the New York Field Office of IRS-Criminal Investigation; and New York State Police Superintendent George P. Beach II.
Piche pled guilty on September 9, 2013 to instructing employees of his restaurant, Red Front LLC in Troy, New York, to make false statements to Special Agents from IRS-Criminal Investigation, who were investigating the restaurant’s tax filings and payments.
Between 2007 and 2011, Piche caused Red Front to file false quarterly returns with the IRS. Those false returns underreported the payroll and employment taxes owed by Red Front as follows: $4,460.64 in 2007, $4,469.28 in 2008, $5,704.07 in 2009, $7,873.80 in 2010, and $6,777.75 in 2011. From December 15, 2011 through June 20, 2012, Piche instructed Red Front employees to state falsely to federal agents that Red Front had accurately reported and withheld taxes due on its employees’ wages.
As part of his sentence, issued by Senior U.S. District Judge Gary L. Sharpe, Piche must pay restitution in the amount of $29,285.54 to the U.S. Department of Treasury. In 2012, Piche was required to resign his position as a corrections officer with the Rensselaer County Sherriff’s Office, as a precondition to his entering into a plea agreement with the government.
This case was investigated by IRS-Criminal Investigation and the Albany Special Investigations Unit of the New York State Police, and was prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Troy Man Sentenced for Health Care FraudRead the Press Release
ALBANY, NEW YORK – John VonFricken, age 51, of Troy, New York, was sentenced today to 3 years of probation and 3 months of weekend incarceration at the Rensselaer County Jail for defrauding a union health plan of $54,000, announced United States Attorney Richard S. Hartunian.
The sentence was issued by U.S. District Judge Mae A. D’Agostino and followed the defendant’s guilty plea, on February 3, 2016, to obtaining false receipts for orthodontic services and submitting them to his union’s health care plan.
As part of his sentence, John VonFricken must also complete 50 hours of community service and pay back the $54,600 that he fraudulently obtained from the Health and Welfare Plan of the Plumbers and Steamfitters, Local Union Number 7.
John VonFricken’s brother, Michael, also of Troy, is scheduled to be sentenced on July 18 for defrauding the same union health plan. He also pled guilty in February to fraud, and to obtaining $32,732 in reimbursements for orthodontic work that he did not receive.
This case was investigated by the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.