Northern District of New York
Press releases recorded for this federal judicial district.
Alleged Escapee from Syracuse Halfway House IndictedRead the Press Release
SYRACUSE, NEW YORK – Hector Rueben Padin-Rivera, 39, was indicted yesterday for escaping from the Syracuse Pavilion Residential Re-entry Center on April 4, 2016, announced United States Attorney Richard S. Hartunian.
The indictment alleges that Padin-Rivera was in the Syracuse halfway house following a 2001 conviction for Attempted Distribution of Cocaine Base and a revocation of his supervised release in connection with that conviction. The indictment further alleges that on April 4, 2016, Padin- Rivera left the Syracuse halfway house without permission, and on April 8, 2016, he was arrested pursuant to a Criminal Complaint in Albany. He is currently being held without bail pending trial. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
The charge against Padin-Rivera carries a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the United States Marshals Service and is being prosecuted by Assistant U.S. Attorney Robert Levine.
Alien in Oswego County Charged with Illegally Reentering United StatesRead the Press Release
SYRACUSE, NEW YORK – Jesus Alberto Medina-Montes, 24, was indicted yesterday for illegally reentering the United States without inspection after having been previously removed from the United States, announced United States Attorney Richard S. Hartunian.
The indictment charges Medina-Montes with illegal reentry of a removed alien and alleges that on April 7, 2016, Medina-Montes, an alien who was previously removed from the United States to Mexico on October 26, 2010, was found in Parish, New York. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
The charge filed against Medina-Montes carries a maximum sentence of 2 years in prison, a fine of up to $250,000, and a term of supervised release of up to 1 year. 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.
Medina-Montes was arrested on April 8, 2016 pursuant to a Criminal Complaint and is being detained without bail pending trial by order of the court.
This case is being investigated by the U.S. Department of Homeland Security, U.S. Customs & Border Protection and is being prosecuted by Assistant U.S. Attorney Robert Levine.
Press AdvisoryRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian and the United States District Court for the Northern District of New York will host, Intensive Reentry Court: Recognizing Our Partners, Celebrating Our Successes, tomorrow (Thursday April 28, 2016) at 11:00 am in the Ceremonial Courtroom of the Federal Courthouse in Syracuse.
The event is part of the United States Department of Justice Reentry Week (April 24-30, 2016). Successful graduates of the Intensive Reentry Court, all former federal prisoners, will be acknowledged as will community stakeholders who have helped them in their transition from prison to become contributing members of society. A short video, "Intensive Reentry Court: Where a Second Chance Begins," will be shared.
United States Attorney Richard S. Hartunian will be available for interviews following the conclusion of the event.
No further information will be provided prior to the event.
Thursday, April 28, 2016
11:00 AM to 12:30 PM
Federal Courthouse
100 S. Clinton Street
Syracuse, New York
Ceremonial Courtroom, 3rd FloorSyracuse Man Pleads Guilty to High Speed Flight from Border CrossingRead the Press Release
SYRACUSE, NEW YORK – Jeffrey Kelley, 33, of Syracuse, New York, pled guilty today to fleeing the border inspection checkpoint at the Alexandria Bay Port of Entry in Jefferson County, New York, announced United States Attorney Richard S. Hartunian. Kelley also pled guilty to failing to allow his vehicle to be inspected at the border crossing. Sentencing is scheduled for August 25, 2016, in Syracuse New York before Senior United States District Court Judge Norman A. Mordue.
As part of his guilty plea today, Kelley admitted that on December 19, 2015, he approached the Alexandria Bay Port of Entry from the north driving a Jeep 4x4. At the Customs and Immigration inspection point, Kelley refused to lower the rear driver’s side window to allow inspection of the vehicle and did not provide proof of citizenship. Kelley also refused to turn off the engine and turn over his keys. As the Customs and Border Protection Officer turned to retrieve a "stop stick" to place under the car’s tire to prevent departure, Kelley sped away.
Kelley faces a maximum sentence of up to 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years for his conviction for Fleeing From An Immigration Checkpoint. He faces a maximum sentence of up to one year in prison and a fine of up to $100,000 for his conviction for Failing to Allow His Vehicle to be Inspected. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Kelley will remain in custody until he is sentenced.
This case was investigated by the United States Department of Homeland Security, Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorney Carina H. Schoenberger.
Jury Convicts Connecticut Man of Methylone ConspiracyRead the Press Release
UTICA, NEW YORK – A federal jury on Friday convicted Ryan Canfield, age 39, of New Haven, Connecticut, of conspiring to distribute methylone, following a four-day trial.
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.
Methylone – also known as “bath salts” and “molly” – is an analogue of ecstasy (“MDMA”) that has been a scheduled drug since October 2011.
The jury also convicted Canfield of eight counts of using a communication facility to facilitate the commission of a felony under the Controlled Substances Act. Canfield faces up to 30 years in prison, and up to a lifetime of post-imprisonment supervised release, when he is sentenced by United States District Judge David N. Hurd on August 24, 2016 in Utica.
The evidence at trial demonstrated that Canfield imported methylone from manufacturers in China and redistributed that methylone to other distributors in the United States. Canfield made arrangements with co-conspirators to receive, on his behalf, kilograms of methylone from Chinese distributors and sell methylone to users including college students and other young people in New York, Connecticut, and elsewhere. Canfield also used a commercial pill press to convert methylone into pills, which Canfield and his distributors marketed as MDMA to what he called “young fools.”
This case was investigated by the Drug Enforcement Administration, and is being prosecuted by Assistant U.S. Attorneys Jeffrey C. Coffman and Wayne A. Myers.
Man Acquitted on a Charge of Failing to Register as a Sex OffenderRead the Press Release
ALBANY, NEW YORK – A jury voted on Thursday to acquit Richard Hernandez, age 47, on a charge of failing to register and update his registration as a sex offender, announced U.S. Attorney Richard S. Hartunian.
Hernandez was indicted on November 18, 2015 on a single charge of traveling across state lines and failing to register and update his registration as a sex offender as required by the Sex Offender Registration and Notification Act.
The jury voted to acquit Hernandez following a four-day trial in Albany before U.S. District Judge Mae A. D’Agostino.
Former Oneida County Man Arrested for Tax FraudRead the Press Release
SYRACUSE, NEW YORK – Dale J. Sexton (47), formerly of Barneveld, New York, was arrested this morning at his residence in Bradenton, Florida, for filing false income tax returns and for impeding the Internal Revenue Service (IRS) in its administration of the internal revenue laws. Sexton was named last week as the sole defendant in an indictment that was unsealed today during his arraignment before a federal judge in Tampa, Florida, following his arrest. Sexton was released pending a trial, which will be scheduled later this year in Syracuse, New York.
The charges were announced by United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Internal Revenue Service Criminal Investigation (IRS-CI), Special Agent in Charge, New York Field Office.
The indictment alleges that, for tax years 2005 through 2008, Sexton concealed tens of thousands of dollars in income derived from various business interests and investments, and that Sexton filed false income tax returns and made false and misleading statements to the Internal Revenue Service when confronted about his taxable income and tax due and owing for these years. These false statements and false filings were allegedly made in Utica, New York, in the Northern District of New York. The charges filed against Sexton carry a maximum sentence of up to 3 years in prison and a fine of up to $100,000.
The charges in the indictment are merely accusations, and the defendant is presumed innocent until proven guilty.
This case is being investigated by IRS-CI (Syracuse), and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Coxsackie Woman Sentenced to Probation for Benefits FraudRead the Press Release
ALBANY, NEW YORK – Colleen J. McCarten, age 43, of Coxsackie, New York, was sentenced today to serve 3 years of probation after a jury found her guilty in October of fraudulently obtaining federal and state disability benefits.
The announcement was made by United States Attorney Richard S. Hartunian and Edward J. Ryan, Special Agent in Charge for the Social Security Administration ("SSA") Office of the Inspector General.
On October 16, 2015, following a two-week trial, a jury found McCarten and co-defendant John W. Caltabiano, Jr. guilty of conspiracy to commit mail fraud, five counts of mail fraud, and theft of government property.
Between April 2008 and October 2010, Caltabiano and McCarten conspired to steal Social Security Disability and Workers’ Compensation benefits by falsely representing to the SSA, the New York State Workers’ Compensation Board, and Travelers Insurance that an on-the-job injury had left Caltabiano almost completely blind. The evidence at trial established that McCarten guided Caltabiano into medical examinations and Workers’ Compensation hearings as if he could not see. She also completed and submitted forms claiming that he could not drive, or manage his own money or move without assistance. Finally, she collected Social Security benefit payments on his behalf.
As demonstrated in videos taken during the investigation and presented at trial, Caltabiano was able to drive, shop, go to the gym, and otherwise move about without the assistance that a blind person would need. McCarten knew Caltabiano was not blind because videos showed her accompanying Caltabiano during some of these outings.
U.S. District Judge Mae A. D’Agostino also sentenced McCarten to pay $27,784 in restitution to the SSA.
On April 15, Judge D’Agostino sentenced Caltabiano, age 49, of Catskill, New York, to serve 57 months in prison and 3 years of post-imprisonment supervised release, and to pay $27,784 in restitution to the SSA.
This case was investigated by the Social Security Administration, Office of the Inspector General, and the Office of the New York State Workers’ Compensation Fraud Inspector General. This case was prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman and Special Assistant U.S. Attorney Jason W. White.
Quebec Man Sentenced for Lying to Border OfficersRead the Press Release
PLATTSBURGH, NEW YORK – Torran Mitchell-Terrance, age 23, of Snye, Quebec, was sentenced on Friday for making false statements to border officers.
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.
United States District Court Judge David N. Hurd sentenced Mitchell-Terrance to serve 141 days in jail – time that Mitchell-Terrance had already served as of Friday – and to serve an additional 1 year of supervised release.
On April 2, 2012, Mitchell-Terrance presented himself at the Massena Point of Entry, New York, for inspection by United States Customs and Border Protection officers. During that inspection, he signed a written declaration representing himself to be another person, who was his relative.
The government filed a complaint on April 3, 2012 and arrested Mitchell-Terrance, and he was released on conditions including that he remain in the United States. Mitchell-Terrance fled pretrial supervision in September 2012 and was indicted by a Plattsburgh grand jury in November 2012. Mitchell-Terrance remained a fugitive until early 2016, when he turned himself in.
This case was investigated by Homeland Security Investigations and U.S. Customs and Border Protection, and was prosecuted by Assistant U.S. Attorney Elizabeth Horsman.
Woman Pleads to Transporting Two Illegal AliensRead the Press Release
SYRACUSE, NEW YORK – Ruth Smoke, 29, of the St. Regis Mohawk Reservation, pled guilty today to transporting two illegal aliens for profit, announced United States Attorney Richard S. Hartunian. Sentencing is scheduled for August 24, 2016 in Syracuse, New York
On December 2, 2015 Ruth Smoke was stopped by New York State Police south of Watertown, New York with two passengers in her vehicle. Subsequent investigation by U.S. Border Patrol Agents revealed that the two passengers were illegal aliens from China who were smuggled into the United States from Canada across the St. Lawrence River earlier in the day. The illegal aliens told Border Patrol Agents that they were to pay $400.00 upon arriving in New York City. As part of her plea of guilty today, Ruth Smoke admitted she was transporting the two illegal aliens in return for a fee.
The charge carries with it a maximum sentence of ten (10) years imprisonment, a fine of up to $250,000.00 and a three year term of supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Border Patrol (Wellesley Island Station) and the New York State Police and is being prosecuted by Assistant U.S. Attorney Richard Southwick.
Whitehall Man Pleads Guilty to Machinegun ChargeRead the Press Release
ALBANY, NEW YORK – Shane Robert Smith, a/k/a Robert Smith, age 19, of Whitehall, New York, pled guilty today to illegal possession of a machinegun.
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 Attorney Richard S. Hartunian said: "Shane Smith repeatedly sought to acquire illegal firearms with the stated goal of executing members of racial and religious minority groups. The FBI Joint Terrorism Task Force stopped Smith before he could carry out this nightmare scenario. My Office is proud to work with the Joint Terrorism Task Force in keeping our communities safe."
"People like Mr. Smith seek to poison communities with hate and fear," said FBI Special Agent in Charge Andrew W. Vale. "His intentions to commit violent and deadly acts against members of our community were clear. The efforts of our Joint Terrorism Task Force and the United States Attorney’s Office have stopped a dangerous criminal from terrorizing our citizens."
At a change of plea hearing today, Smith pled guilty to illegal possession of a MAC 10 machinegun. He faces a maximum term of imprisonment of 10 years, a $250,000 fine, and 3 years of post-imprisonment supervised release when United States District Judge Mae A. D’Agostino sentences him on August 15, 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. With the felony conviction resulting from today’s plea, Smith will be prohibited from legally possessing firearms and ammunition.
As part of a plea agreement filed in the case, Smith admitted that he repeatedly sought to purchase or otherwise obtain fully automatic weapons, as well as semiautomatic weapons that he intended to convert into fully automatic weapons. On April 29, 2015, he made postings on social media seeking to acquire a "civilian," or semi-automatic, MAC 10 firearm. On that same date, he purchased a book on how to convert semi-automatic MAC 10 firearms to illegal fully automatic firearms. In other social media postings, Smith listed his interests as "guns, gun smithing, building bombs, knives, guerilla warfare, preserving my race and folk, and destroying the government."
After becoming aware of Smith’s April 29, 2015 social media postings, individuals working with law enforcement contacted him. In communications with these people, Smith confirmed that he sought to purchase a Mac 10 and that he intended to "rock and roll it," a phrase that means to convert a semi-automatic weapon to fully automatic. Smith further explained that the firearm was "gonna be used to execute kikes, coons, and get money for the crew." Smith explained that he planned to form a group called the "Silent Resistance Army" and that he sought to establish "a hit squad." Smith also sought to acquire Green Tip ammunition, which is designed to pierce body armor, as well as explosives such as "c4 or grenades."
After communicating through the Internet and text messages with an undercover FBI agent, Smith arranged to meet with the agent for the purpose of acquiring machineguns, silencers, and ammunition. Prior to the meeting, Smith expressed concerns about whether he was "gonna get busted by the feds." On August 5, 2015, Smith met with an undercover FBI agent in Whitehall, New York, and took possession of two machineguns, a silencer, a Beretta handgun, and 120 rounds of Green Tip ammunition (the guns were not loaded and were inoperable at the time). Smith was then immediately arrested and has been in custody ever since.
This case is being investigated by the FBI Joint Terrorism Task Force in Albany, and is being prosecuted by Assistant United States Attorneys Sean O’Dowd and Solomon Shinerock.
Catskill Man Receives 57 Months in Prison for Benefits FraudRead the Press Release
ALBANY, NEW YORK – John W. Caltabiano, Jr., age 49, of Catskill, New York, was sentenced today to serve 57 months in prison after a jury found him guilty in October of fraudulently obtaining federal and state disability benefits. He was immediately taken into custody.
The announcement was made by United States Attorney Richard S. Hartunian and Edward J. Ryan, Special Agent in Charge for the Social Security Administration ("SSA") Office of the Inspector General.
On October 16, 2015, following a two-week trial, a jury found Caltabiano and co-defendant Colleen McCarten guilty of conspiracy to commit mail fraud, five counts of mail fraud, and theft of government property. Between April 2008 and October 2010, Caltabiano and McCarten conspired to steal Social Security Disability and Workers’ Compensation benefits by falsely representing to the SSA, the New York State Workers’ Compensation Board, and Travelers Insurance that an on-the-job injury had left him almost completely blind. In reality, as demonstrated in videos taken during the investigation and presented at trial, he was able to drive, shop, go to the gym, and otherwise move about without the assistance that a blind person would need.
At the sentencing, Judge D’Agostino said, "And had he not been caught, I have no doubt that Mr. Caltabiano would still have someone leading him into any proceedings or any hearings as though he couldn’t see a darn thing when we all know that he was seeing well enough to carry out his ordinary activities, to drive, to go to convenience stores, all of that."
U.S. Attorney Richard S. Hartunian stated: "If Caltabiano had not been stopped, he would have been able to steal more than one-half a million dollars based on his life expectancy. His sentence reflects the magnitude of his fraud and sends a message that those who steal benefits face significant prison sentences. My office will continue to prosecute benefits fraud aggressively so that that taxpayer-funded government benefits go to people who truly need them."
Edward J. Ryan, Special Agent in Charge for the SSA Office of the Inspector General, stated: "As guardians of the public trust we vigorously pursue incidents of fraud against SSA programs. We continue to investigate allegations of fraudulent disability claims to combat fraud in federal and state government sponsored disability programs. Our successful criminal prosecutions protect the SSA trust funds for those who truly deserve disability benefits. Our office greatly appreciates the continued support and the priority given to these cases by the United States Attorney’s Office for the Northern District of New York."
United States District Judge Mae A. D’Agostino also sentenced Caltabiano to serve 3 years of post-imprisonment supervised release, and to pay $27,784 in restitution to the SSA. At today’s sentencing hearing, Judge D’Agostino described his criminal history as "extremely disturbing." She referred to Caltabiano’s many prior convictions, four of which involved his sexual assault or attempted abduction of teenage girls.
McCarten’s sentencing is scheduled for April 20, 2016 in Albany before Judge D’Agostino.
This case was investigated by the Social Security Administration, Office of the Inspector General, and the Office of the New York State Workers’ Compensation Fraud Inspector General, and was prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman and Special Assistant U.S. Attorney Jason W. White.
Alien Charged with Illegal Possession of Firearm and False Identity DocumentsRead the Press Release
SYRACUSE, NEW YORK – Chanel Garcia-Enrique, 36, of Utica, New York, was indicted on four federal criminal violations: (1) felon in possession of a firearm and ammunition; (2) alien in possession of a firearm and ammunition; (3) making false statements; and (4) possession of false identification documents, announced United States Attorney Richard S. Hartunian. The charges involving firearms and ammunition filed against Garcia-Enrique carry a maximum sentence of 10 years in prison and a term of supervised release of up to 3 years following release from incarceration The defendant faces up to fifteen years for the charge of possessing false identification documents and five years for making false statements. Fines of up to $250,000 could be levied on each charge. 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 and the defendant is presumed innocent until proven guilty.
A federal criminal complaint alleged that Garcia-Enrique was arrested on April 5, 2016 in Utica, New York after the execution of a search warrant at his residence by members of the Drug Enforcement Administration’s Syracuse Task Force and the Oneida County Drug Task Force. According to the complaint, Garcia-Enrique was found in his bedroom with a loaded 20 gauge shotgun.
The criminal complaint alleged that Garcia-Enrique is a citizen of the Dominican Republic who illegally entered the United States in 1996 and lived under an alias since that time. The complaint further alleges that using the alias, Garcia-Enrique was arrested on October 23, 1998 in Oneida County, New York and thereafter convicted and sentenced for criminal sale of a controlled substance in the 5th degree – all while under the alias.
Garcia-Enrique was arrested on the federal criminal complaint and made his initial appearance on April 6, 2016 in Syracuse, New York, before United States Magistrate Judge Andrew T. Baxter. After holding a detention hearing on April 8, 2016, Judge Baxter ordered the defendant held without bail.
This case is being investigated by the DEA, Oneida and Onondaga County District Attorney’s Offices, the Oneida County Drug Task Force, the U.S. Department of Homeland Security/U.S. Border Patrol, the New York State Police, Oneida and Onondaga County Sheriff’s Offices, the Rome Police Department, and the Utica Police Department. This case is being prosecuted by
Assistant U.S. Attorney Carl G. Eurenius and Oneida County Assistant District Attorney Grant Garramone.
Syracuse Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
SYRACUSE, NEW YORK – Carl Switala, 34, was indicted yesterday for failing to register as a sex offender after he moved to Syracuse, New York from North Carolina, announced United States Attorney Richard S. Hartunian.
The indictment alleges that Switala moved to Syracuse from Raleigh, North Carolina in November 2015 and lived in the area without registering as a sex offender for more than four months prior to being arrested. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Switala was previously arrested on April 4, 2016 pursuant to a Criminal Complaint. On April 7, 2016, Switala appeared before United States Magistrate Judge Andrew T. Baxter for a detention hearing after which he was ordered held without bail pending trial.
The charge against Switala carries a maximum sentence of 10 years imprisonment, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the United States Marshals Service Sex Offender Investigation Branch and is being prosecuted by Assistant U.S. Attorney Robert S. Levine.
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 Man Indicted for Distributing Heroin that Killed WomanRead the Press Release
SYRACUSE, NEW YORK - An indictment filed today charges Anthony Vita, 36, of Syracuse, New York, with distributing heroin that resulted in the death of another person.
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 (DEA).
The indictment alleges that Vita distributed heroin on or about November 7, 2015 to the victim, described in a criminal complaint as being a 24-year-old resident of Camillus, New York, who was five months pregnant when Vita provided her heroin that led to her overdose death.
U.S. Attorney Richard S. Hartunian said: "Opioid addiction and overdose deaths have become the single greatest danger to the lives and health of our citizens. Our resolve to confront this epidemic and the criminals who supply it is unwavering and we will not hesitate to use all of the tools the law provides us with in this fight."
DEA Special Agent in Charge James J. Hunt stated, "Every aspect of drug trafficking is heinous; but selling a fatal combination of heroin and fentanyl to a mother and unborn child shows how inconsequential drug traffickers view heroin use. The latest trend in opiate abuse- a toxic combination of heroin and fentanyl- is on a deadly rampage throughout the nation resulting in too many lives taken too early. This arrest only highlights the sad extent a dealer will go to in order to make a profit off the sale of drugs."
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
The charge filed against Vita carries a minimum term of imprisonment of 20 years, a maximum sentence of life imprisonment, a fine of up to $1 million, and a term of post-imprisonment supervised release of at least 3 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.
Vita was arrested by DEA agents on March 15, 2016, in Virginia Beach, Virginia. The criminal complaint filed against Vita alleged that agents recovered a text message exchange between Vita and the victim on the night of her death that included arrangements for them to meet so he could sell her heroin and a hypodermic needle.
Following his arrest, Vita appeared in Federal Court in Virginia and was transported to Syracuse by the United States Marshals Service. The defendant had an initial appearance in Syracuse before United States Magistrate Judge David E. Peebles on April 1, 2016. Following a hearing on April 6, 2016, Judge Peebles ordered Vita detained without bail pending trial.
This case is being investigated by the U.S. Drug Enforcement Administration (DEA), Syracuse Resident Agency (with Assistance from DEA Norfolk, Virginia), the Onondaga County Sheriff Department and the Town of Camillus (New York) Police Department, and is being prosecuted by Assistant U.S. Attorney Carla Freedman.
Press AdvisoryRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian will conduct a press conference tomorrow (Wednesday April 13, 2016) at 2 PM in the Syracuse U.S. Attorney’s Office to announce a case of interest to the media.
Wednesday, April 13, 2016
2:00 PM
U.S. Attorney’s Office
100 S. Clinton Street
Syracuse, New York
9th FloorHogansburg Man Arraigned on Human Smuggling ChargesRead the Press Release
PLATTSBURGH, NEW YORK – Jacob Wesley Martin, age 26, of Hogansburg, New York, was arraigned last month on human smuggling charges.
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.
Martin was indicted on January 20, 2016, for his alleged role in the attempted for-profit smuggling, into the United States from Canada, of three young men from India on September 2, 2015. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
An alleged co-conspirator, Louie John McDonald, age 37, of Snye, Quebec, is being prosecuted in Ontario by provincial and federal crown prosecutors, for his alleged role in the smuggling attempt. In the attempt, two of the three Indian men were killed by drowning when a jet ski capsized in the St. Lawrence River.
If convicted of all charges, Martin faces a minimum term of imprisonment of 5 years, a fine of up to $250,000, and a post-imprisonment supervised release term of 5 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
Martin was arraigned in Syracuse, New York, before United States Magistrate Judge Therese Wiley Dancks, on March 11, 2016. Five days later, he was released with conditions pending trial, which is scheduled for August 8, 2016 in Albany, before United States District Court Judge Mae A. D’Agostino.
This case is being investigated by Homeland Security Investigations’ Border Enforcement Security Task Force with assistance by the Akwesasne Mohawk Police Service, the Canada Border Services Agency, the Royal Canadian Mounted Police, the United States Border Patrol, Customs and Border Protection Office of Field Operations, the Saint Regis Mohawk Tribal Police Department, and the Utica Police Department, and is being prosecuted by Assistant U.S. Attorneys Elizabeth Horsman and Cyrus Rieck.
Mass. Man Charged with Attempted Coercion and Enticement of a Minor in AlbanyRead the Press Release
ALBANY, NEW YORK – David Rancourt, age 61, of Palmer, Massachusetts, was arrested and charged on Saturday with attempting to meet a 14-year-old boy for sex.
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.
Rancourt faces at least 10 years and up to life in prison on the charge of attempted coercion and enticement of a minor. 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. Today, United States Magistrate Judge Daniel J. Stewart ordered Rancourt detained pending trial.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
According to the criminal complaint, Rancourt posted an online advertisement titled "Dad looking for a son," in which he solicited sexual role-play encounters. Following email exchanges with a Colonie Police Department officer acting undercover, Rancourt travelled to Albany in order to meet at a prearranged time and place to engage in sexual activities with a person he believed to be a 14-year-old boy.
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/.
Superseding Indictment Charges Duell with Five Counts of Perjury in Schenectady Arson Homicide CaseRead the Press Release
ALBANY, NEW YORK – A superseding indictment filed today charges Jennica Duell with five counts of making false declarations before a federal grand jury, announced United States Attorney Richard S. Hartunian and Special Agent in Charge Delano Reid of the Bureau of Alcohol, Tobacco, Firearms & Explosives.
The superseding indictment alleges that the false declarations were made before a grand jury conducting an investigation into the fire on or about May 2, 2013 at 438 Hulett Street in Schenectady, New York, that caused the deaths of David Terry and three young children, seriously injured another child, and destroyed the building and the personal property inside.
The superseding indictment alleges that Duell testified under oath before the federal grand jury on May 24, 2013 and January 31, 2014 and knowingly made material declarations on each date which were irreconcilably contradictory and inconsistent to the degree that one of them was necessarily false. Each count alleges that on May 24, 2013, Duell testified regarding specific events that occurred May 1-2, 2013, and then, on January 31, 2014, gave irreconcilably contradictory testimony about those events. The specific events alleged included declarations about: Duell’s relationships with David Terry and another man; Duell and others traveling from Saratoga Springs to 438 Hulett Street; Duell and others getting gasoline; how the fire at 438 Hulett Street was started, and by whom; and discussion that the story for Duell and others would be that they were in Saratoga Springs when the fire was started.
Duell, age 28, of Schenectady, New York, is detained pending trial. Her arraignment on the superseding indictment is scheduled for Tuesday, April 19, 2016, at 12:30 pm before U.S. Magistrate Judge Christian F. Hummel in U.S. District Court in Albany, New York. The scheduled trial date is May 16, 2016 in Albany.
The superseding indictment is merely an accusation and the defendant is presumed innocent unless and until proven guilty in a court of law. If convicted, Duell faces a maximum sentence of imprisonment for five years and a $250,000 fine on each count, and a term of supervised release of up to three years.
The charges resulted from an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives of the U.S. Department of Justice, the Schenectady Police Department, and the Schenectady Fire Department. The case is being prosecuted by First Assistant U. S. Attorney Grant C. Jaquith and Assistant United States Attorney Wayne A. Myers.
Further questions or inquiries may be directed to First Assistant U.S. Attorney Jaquith at 518-431-0247.
The Bureau of Alcohol, Tobacco, Firearms and Explosives notes that there is a reward of up to a total of $40,000 for information leading to the arrest and conviction of the person(s) responsible for the arson that occurred on May 2, 2013 at 438 Hulett Street in Schenectady, resulting in personal injury and death. All information will be treated confidentially and the callers will remain anonymous if requested. Anyone having information should call the ATF Albany Field Office at 518-431-4182, or email [email protected].
Queensbury Man Pleads Guilty to Tax EvasionRead the Press Release
ALBANY, NEW YORK – Jason Holcomb, age 46, of Queensbury, New York, pled guilty today to tax evasion, announced United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office.
As part of his plea, Holcomb admitted that he willfully evaded the payment of income taxes he owed to the Internal Revenue Service for the 2002 to 2005 tax years. While working as a construction contractor, Holcomb concealed his assets by putting assets in the names of other people and dealing in cash, to try to hide his income from the government. As a result, Holcomb failed to pay $193,215 in taxes, which does not include interest and penalties that the IRS could assess.
Holcomb faces up to 5 years in prison, a maximum fine of $250,000, and a maximum term of post-imprisonment supervised release of 3 years when he is sentenced 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. Holcomb may also be ordered to pay restitution to the Internal Revenue Service.
This case was investigated by the New York Field Office of the IRS-Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Emily Farber.
Man Sentenced to 38 Months in Prison for Threatening Tribal Police OfficersRead the Press Release
PLATTSBURGH, NEW YORK – Roy Redeye, age 39, of Cortland and Akwesasne, New York, was sentenced today to serve 38 months in prison for threatening to injure Saint Regis Mohawk Tribe Police Department Officers.
The announcement was made by United States Attorney Richard S. Hartunian, Saint Regis Mohawk Police Chief Matthew Rourke, and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations.
U.S. District Judge Lawrence E. Kahn also sentenced Redeye to serve a 3-year term of supervised release, to be served after Redeye is released from prison.
As part of his plea on December 9, 2015, Redeye admitted that in February 2015, he posted messages to Facebook in which he threatened to kill or injure three Saint Regis Mohawk Tribe Police Department Officers.
U.S. Attorney Richard S. Hartunian stated: "The defendant threatened to injure and kill police officers and received a sentence that reflects the seriousness of his crime. This successful prosecution is the result of the excellent and close cooperation among federal, tribal and local law enforcement that my Office has fostered in the Northern District of New York."
Saint Regis Mohawk Tribe Police Chief Matthew Rourke stated: "This was a good outcome for public safety at all levels and the community as a whole. Internet safety is the key, be aware that your actions, including threats, and especially against law enforcement, will be taken seriously." Police Chief Rourke thanked Homeland Security Investigations, the Cortland Police Department, and the United States Attorney for their combined effort.
This case was investigated and assisted by the Saint Regis Mohawk Tribal Police Department, Homeland Security Investigations, the Cortland Police Department, and the Cortland County Sheriff’s Office. Assistant United States Attorney Elizabeth Horsman prosecuted the case under United States Attorney Hartunian’s Indian Country public safety initiative.
Former NYS Deputy Secretary of State Indicted for Perjury, Failing to Pay RestitutionRead the Press Release
ALBANY, NEW YORK – Joseph Felix Strevell, age 54, of Castleton, New York, was arraigned today on an indictment accusing him of lying under oath to conceal his failure to pay restitution to New York State.
The announcement was made by U.S. Attorney Richard S. Hartunian, New York State Police Superintendent Joseph A. D’Amico, and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
U.S. Attorney Richard S. Hartunian said: "Restitution is a mandatory obligation that no convicted felon should be able to walk away from. Joseph Strevell tried to shirk his restitution obligation and when my office took his deposition to find out about his ability to pay, he repeatedly lied under oath to an Assistant United States Attorney to cover his tracks. As a result, he has been indicted for perjury."
New York State Police Superintendent Joseph A. D’Amico said: "We will show no mercy for convicted criminals who fail to fulfill the obligations of their sentences, and this case proves that trying to cover your tracks by lying to law enforcement never works. I want to thank the State Police Special Investigations Unit, and our partners at the U.S. Attorney’s Office and the FBI, for their persistence in this case."
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
From 1997 to 1999, Strevell served as a Deputy Secretary of State for the State of New York. He left that position to serve as the head of the state-funded Institute for Entrepreneurship. In 2007, Strevell was convicted in federal court of defrauding New York State while leading the Institute. In March 2009, the United States District Court for the Northern District of New York entered judgment against Strevell on this conviction, requiring him to pay $111,500 in restitution to his victim, New York State. The judgment required Strevell to pay restitution at a minimum rate of $100 per month or 10 percent of his gross monthly earnings, whichever was greater, and to pay full restitution immediately if at any time he had the resources to do so.
In December 2014, the U.S. Attorney’s Office deposed Strevell under oath to determine whether he was complying with his restitution obligation. According to the indictment, when questioned about how he was able to make a $75,440 down payment on a lease with an option to purchase a 138.55-acre horse farm in Rensselaer County in April and May 2013, Strevell falsely testified that his mother and aunt provided the majority of the funds used to make the down payment. In fact, according to the indictment, neither Strevell’s mother nor aunt contributed toward the down payment.
According to the indictment, Strevell also lied during that deposition about whether he had paid for his daughter’s wedding in May 2014. Strevell falsely testified that he contributed only "a couple thousand dollars" toward wedding expenses, but, according to the indictment, Strevell paid for most of the wedding, ultimately contributing more than $30,000 toward wedding expenses by paying at least one wedding vendor directly and transferring tens of thousands of dollars from his business to his daughter.
The indictment also alleges that Strevell failed to pay restitution each month as required by the 2009 judgment.
Strevell faces five felony counts of perjury and one misdemeanor count of defaulting on his restitution obligation. If convicted of perjury, Strevell faces a maximum of 5 years in prison, a $250,000 fine, and 3 years of post-imprisonment supervised release. If convicted on the misdemeanor charge, Strevell faces a maximum of one year 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.
Strevell was arraigned today in Albany, New York, before United States Magistrate Judge Christian F. Hummel, and released pending a trial before United States District Court Judge Gary L. Sharpe.
This case is being investigated by the New York State Police and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorneys Jeffrey C. Coffman and Michael Barnett.
Liverpool Man and Syracuse Woman Indicted for Sexual Exploitation of Three Children Under the Age of FiveRead the Press Release
SYRACUSE, NEW YORK – Jason Kopp, 40, of Liverpool, New York and Emily Oberst, 23, of Syracuse, New York were indicted for conspiracy to sexually exploit a child, sexual exploitation of a child, distribution of child pornography, and possession 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.
The 28 count indictment charges Kopp and Oberst with one count of conspiracy to sexually exploit a female born in 2014 and two counts of sexual exploitation of that child. The indictment also charges Kopp, individually, with eight counts of sexual exploitation of children, nine counts of distribution of child pornography, and two counts of possession of child pornography. Kopp is accused of producing and distributing images depicting a female born in 2014 and a male born in 2013. As for Oberst, the indictment charges her, individually, with two counts of sexual exploitation of children and four counts of distribution of child pornography. Oberst is accused of producing and distributing images depicting a female born in 2014 and another female born in 2011.
Upon conviction, Kopp and Oberst would face a mandatory minimum sentence of fifteen years and a maximum sentence of thirty years imprisonment, on the conspiracy charge as well as each count of sexual exploitation of a child. On each count of distribution of child pornography, if convicted, Kopp and Oberst are subject to a mandatory minimum sentence of five years and a maximum sentence of twenty years imprisonment. If convicted of possession of child pornography, Kopp would face a maximum sentence of twenty years imprisonment on each charge. In addition, all of the charges provide for 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.
Kopp and Oberst were previously arrested pursuant to criminal complaints and arrest warrants filed on Saturday, March 19, 2016. On that day, Kopp and Oberst appeared before United States Magistrate Judge Baxter in Syracuse, New York and were detained without bail.
United States Attorney Hartunian said: "The indictment alleges criminal conduct that is unspeakable – the sexual exploitation and abuse of the most vulnerable members of our society, our very young children. We will seek to have the defendants held accountable to the fullest extent of the law. We commend the Federal Bureau of Investigation, the District of Columbia
Metropolitan Police Department-FBI Child Exploitation Task Force, and the New York State Police for the investigation which led to these charges, and appreciate the assistance of Onondaga County District Attorney William J. Fitzpatrick and his staff in pursuing justice for the victims and their families."
"Today's charges are the result of the combined efforts of several law enforcement agencies that are committed to ending the sexual exploitation of our most innocent citizens," said Special Agent in Charge Andrew W. Vale. "Our children deserve to be safe from alleged predators such as Kopp and Oberst, and the FBI will continue to work tirelessly with our law enforcement partners to stop and ultimately prevent such evil acts."
The charges in the indictments are merely accusations. The defendants are presumed innocent until proven guilty.
This case is being investigated by FBI Albany Division (Syracuse Resident Agency), the District of Columbia Metropolitan Police Department-Federal Bureau of Investigation ("MPD-FBI") Child Exploitation Task Force (Washington Field Office), and the New York State Police and is being prosecuted by Assistant U.S. Attorneys Lisa Fletcher and Robert Levine.
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.
Jury Convicts Binghamton Man on Eight Counts of Sex Trafficking and Prostitution of MinorsRead the Press Release
BINGHAMTON, NEW YORK –Antonio Ballard, 25, of Binghamton, New York, was convicted yesterday on eight counts of engaging in a sex trafficking and prostitution business involving three minor girls. The verdict followed a week-long trial, announced United States Attorney Richard S. Hartunian. Ballard faces a minimum sentence of 10 years and up to life in prison when he is sentenced on July 27, 2016 by Senior United States District Judge Thomas J. McAvoy. Sentences are imposed by a judge based upon the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
"The exploitation of minors in the commercial sex trade represents inhumanity in its worst form. It violates our laws, shocks our conscience and will be vigorously prosecuted," said United States Attorney Hartunian.
"The sexual exploitation of minors will not be tolerated," said FBI Special Agent in Charge Andrew W. Vale. "Mr. Ballard's crimes are as shocking as they are heinous and thanks to the combined efforts of law enforcement, our community is safe from a depraved and dangerous man."
The evidence at trial showed that from August 2014 through December of 2014, in Broome County, New York, Ballard recruited three minor girls to engage in commercial sex acts and prostitution with men. Ballard benefitted from prostituting these minors by receiving 50% of the proceeds that they earned from performing sex acts. Using a cellular telephone, Ballard caused the minors to be photographed in sexually provocative poses and then posted these images on an internet advertising site.
This case was investigated by the Federal Bureau of Investigation ("FBI")-Albany Division, New York State Police, and the Binghamton Police Department and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
St. Lawrence County Felon Pleads Guilty to Possessing Gun, AmmunitionRead the Press Release
PLATTSBURGH, NEW YORK – Clayton T. Brothers, age 40, of Russell, New York, pled guilty on Friday to illegally possessing a firearm and more than 1,000 rounds of steel-penetrating ammunition.
The announcement was made by United States Attorney Richard S. Hartunian; James Spero, Special Agent in Charge for Immigration and Customs Enforcement, Homeland Security Investigations (HSI); New York State Police Superintendent Joseph D’Amico; and Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision.
As part of his plea, Brothers admitted to possessing a Sig Sauer 556 pistol, and more than 1,000 rounds of 5.56 mm caliber NATO Lake City XM855 Grain Steel Penetrator ammunition, at his home in St. Lawrence County in April 2014. A prior felony conviction prevents Brothers from possessing firearms and ammunition.
He 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 July 25, 2016 by United States District Judge Brenda K. Sannes. 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, the New York State Police, and the New York State Department of Corrections and Community Supervision, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
Syracuse Attorney Sentenced for Social Security Disability FraudRead the Press Release
SYRACUSE, NEW YORK – Richard S. Hartunian, United States Attorney for the Northern District of New York announced today that Christopher Chadick, 63, of Syracuse, N.Y. was sentenced today by Chief United States District Judge Glenn T. Suddaby to a five (5) year term of probation with 6 months of intermittent weekend confinement in connection with his plea of guilty to Social Security Fraud. Chadick was also ordered to pay restitution to the Social Security Administration in the amount of $247,269.40.
As part of his guilty plea on November 23, 2015, Chadick admitted that from April 2003 through August 2010, he was engaged in significant gainful employment as an attorney. He did not disclose to the Social Security Administration that he was working in any capacity after the year 2000. The evidence in the case showed that Chadick operated a law firm, handled bankruptcy actions, appeared in town courts, and later was employed by a law firm. He further admitted that he concealed his employment to fraudulently secure his monthly disability benefits. Chadick never informed the Social Security Administration of any improvement in his medical condition or that he was able to work as a lawyer while receiving Social Security Disability benefits.
The case was investigated by the Social Security Administration Office of Inspector General, based on a referral from the U.S. Bankruptcy Trustee for the Northern District of New York and was prosecuted by Assistant U.S. Attorney Tamara B. Thomson.
Prisoner Sentenced in Plot to Smuggle Heroin into Attica PrisonRead the Press Release
UTICA, NEW YORK - Ramsi Uthman (42), an inmate with the New York State Department of Corrections, was sentenced today to serve 24 months in prison and three years of supervised release in connection with his guilty plea to a one-count indictment charging him with conspiring to smuggle heroin into Attica Correctional Facility, announced United States Attorney Richard S. Hartunian and Shelly Binkowski, Inspector in Charge, United States Postal Inspection Service, Boston Division.
Ramsi Uthman is currently serving a 25-year jail sentence as a the result of his 2003 conviction in Onondaga County Court from an arson he committed at Temple Beth El in Syracuse. At the sentencing hearing today, United States District Judge David N. Hurd ordered 12 months of Mr. Uthman’s federal sentence on the heroin conspiracy conviction to run consecutive to his state prison sentence.
Uthman’s sentence today in Federal Court was in connection with his guilty plea to conspiring with his ex-wife, Twanda Uthman (40), of Liverpool, New York, and Jonathan Lind (29), of New York City, to possess with intent to distribute and to distribution of heroin. Uthman admitted that he arranged for Lind to mail a package containing approximately .948 grams of heroin to Twanda Uthman, which she then planned to smuggle into Attica Correctional Facility during a conjugal visit with Ramsi Uthman. At sentencing, Uthman admitted that he previously received illegal drugs in a similar manner while incarcerated at least 40 or 50 times. Twanda Uthman pled guilty to the one-count indictment and is scheduled to be sentenced in June.
Jonathan Lind is scheduled for trial in April 20161.
This case was investigated by the United States Postal Inspection Service and the New York State Department of Corrections and Community Supervision, Office of Special Investigations- Narcotics Unit, with the assistance of the U.S. Drug Enforcement Agency (DEA) and the New York State Police, Community Narcotics Enforcement Team (CNET). It was prosecuted by Assistant United States Attorney Michael F. Perry.
1 Johnathan Lind is charged by indictment. The charges therein are merely accusations and he is presumed innocent unless and until proven guilty.
Martville, New York Man Sentenced for Child Pornography ChargesRead the Press Release
SYRACUSE, NEW YORK – Kenneth Burghardt, 44, of Martville, New York was sentenced today to serve 262 months in prison and a lifetime term of supervised release in connection with his previous guilty pleas to all ten counts of an indictment charging him with receipt and distribution of images of minors engaged in sexually explicit conduct, announced United States Attorney Richard S. Hartunian. The defendant was serving a federal supervised release term from a 2008 federal court child exploitation offense at the time he committed the crimes for which he was sentenced today1. For violating the conditions of his 2008 term of supervised term, Burghardt was sentenced to an additional 60 months in prison to be served consecutively to the 262 month sentence. He will also be required to register as a sex offender in connection with these convictions.
The evidence in the case showed that Kenneth Burghardt possessed a mobile telephone at his home on February 24, 2015 when he was visited by U.S. Probation officers who heard its ringtone. The Probation officers located and seized the mobile telephone, which was found to contain 1,437 images and 28 video files containing child pornography. Additional images of child pornography were also located on a computer used by the defendant. The conditions of supervised release imposed as part of Burghardt’s 2008 conviction prohibited from him possessing a mobile phone or computer without the permission of the Court and permitted Probation Officers to search such devices.
This case was investigated by United States Probation Department, Northern District of New York, and the Federal Bureau of Investigation ("FBI") Albany Division, Syracuse Resident Agency and was prosecuted by Assistant U.S. Attorney Lisa Fletcher.
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.justice.gov/psc.
1 Kenneth Burghardt pled guilty in 2008 and was sentenced in 2009 to serve 87 months imprisonment, a lifetime term of supervised release, and required him to register as a sex offender.
Ft. Drum Civilian Pleads Guilty to Sexual Exploitation of A MinorRead the Press Release
SYRACUSE, NEW YORK – Brok Chase, 29, of Ft. Drum, New York pled guilty today to all four (4) counts of a criminal information alleging he made images of a six year old victim engaging in sexually explicit conduct, announced United States Attorney Richard S. Hartunian.
The defendant, a civilian, shared a residence with a serving member of the United States Army (who was not involved in the commission of his crimes) when a search warrant was executed there on September 15, 2015. A mobile telephone possessed by the defendant contained the multiple images of the victim engaged in sexually explicit conduct with the defendant.
The defendant faces a maximum sentence of thirty years and a minimum sentence of fifteen years as to each count when he is sentenced on July 22, 2016 in Syracuse, New York. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by Federal Bureau of Investigation ("FBI") Albany Division, Syracuse Resident Agency, with assistance from FBI Louisville, Kentucky, Army CID (Fort Drum, New York), and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Lisa Fletcher.
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.
Two Arrested for Child Sexual ExploitationRead the Press Release
SYRACUSE, NEW YORK – Jason Kopp,40, of Liverpool, New York and Emily Oberst, 23, of Syracuse, New York were arrested yesterday and charged with sexual exploitation of a child by making pornographic images and distribution of child pornography involving a 16 month old infant, announced United States Attorney Richard S. Hartunian.
As alleged in the criminal complaint filed today, both defendants were arrested by Special Agents of the Federal Bureau of Investigation ("FBI") following the execution of search warrants and the seizure of evidence from their residences in Syracuse and Liverpool last night and early this morning.
The charges filed against Kopp and Oberst for sexual exploitation of a child by making pornographic images carry a minimum sentence of fifteen years and a maximum sentence of thirty years imprisonment. The charges for distribution of child pornography carry a minimum sentence of five years and a maximum sentence of twenty years imprisonment. Each charge provides for a fine of up to $250,000.
Kopp and Oberst appeared today in Syracuse, New York, before United States Magistrate Judge Andrew T. Baxter and were detained without bail pending further court proceedings.
The charges in the complaint are merely accusations. The defendants are presumed innocent until proven guilty.
This case is being investigated by FBI Albany Division (Syracuse Resident Agency), and the District of Columbia Metropolitan Police Department-Federal Bureau of Investigation ("MPD-FBI") Child Exploitation Task Force (Washington Field Office), and is being prosecuted by Assistant U.S. Attorney Lisa Fletcher.
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.
Ukrainian Woman Pleads Guilty to Conspiracy to Commit Marriage FraudRead the Press Release
SYRACUSE, NEW YORK – Natalia Polkowski, 29, of the Ukraine, pled guilty today in federal court in Syracuse to conspiracy to commit marriage fraud, announced United States Attorney Richard S. Hartunian and Brian Devine, Resident Agent in Charge, Homeland Security Investigations (HSI), Syracuse, New York.
As part of her guilty plea, Natalia Polkowski (nee Medvid), a Ukranian national, admitted that she entered into a sham marriage to John Polkowski of Binghamton, New York, on December 23, 2008, for the purpose of obtaining permanent residency in the United States. Polkowski further admitted that she never intended to establish a life with her husband, but rather entered into the bogus marriage to enable her to remain in the United States. John Polkowski pled guilty to conspiracy to commit marriage fraud on April 22, 2014. At that time, he admitted that he was promised $10,000 for entering into the fraudulent marriage.
Natalia Polkowski will be sentenced on July 21, 2016 in federal court in Binghamton by Senior District Judge Thomas J. McAvoy. She faces a maximum sentence of up to five years in prison and a fine of up to $250,000. Sentences are imposed by a judge based upon the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
This case was investigated by Homeland Security Investigations ("HSI"), and is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown
Leon Sentenced to 10 Years in Prison on Perjury ConvictionRead the Press Release
ALBANY, NEW YORK – Edward A. Leon, 43, of St. Johnsville, New York, was sentenced today to be imprisoned for the statutory maximum of 10 years, based upon his trial conviction on two counts of making false declarations before a federal grand jury, announced 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. Senior U.S. District Judge Gary L. Sharpe also sentenced Leon to a 3-year term of post-imprisonment supervised release and to pay a special assessment of $200.
United States Attorney Richard S. Hartunian said: “The defendant’s perjury was the most serious imaginable – a purposeful, flagrant attempt to avoid scrutiny in an investigation into an arson murder – and deserved this maximum sentence. The defendant’s deception was deadly, as he left the occupants at 438 Hulett Street to die rather than risk scrutiny for his activities. We remain completely committed to securing justice for the victims and their families. We are grateful for the outstanding work and dedication of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Schenectady Police Department, and of the Schenectady Fire Department.”
ATF Special Agent in Charge Delano A. Reid said: “The deadly events of May 2, 2013 have rocked the residents of Schenectady as they resulted in the death of three innocent children and their father. Similarly, the assigned law enforcement community has also been stymied by the mistruths and inconsistencies perpetrated by Mr. Leon. While his lies have affected our momentum in identifying those involved in the arson, today we can take some solace knowing that the defendant will serve the maximum sentence he can receive for impeding the investigation. Rest assured, the quadruple homicide investigation will continue to be our utmost priority, as it is our legal and moral obligation to incarcerate those person(s) responsible for such a heinous act. It is our hope that today’s sentence, combined with the additional monies that have been offered by the Mohawk Valley Crimestoppers, can incite the interest this case so deserves. Sa’fyre Terry deserves nothing less.”
A three day trial culminated in Leon’s conviction on November 12, 2015. Leon was convicted as charged for two false declarations that Leon made in testimony before a grand jury conducting an investigation into the fire on May 2, 2013 at 438 Hulett Street in Schenectady, New York, which caused the deaths of David Terry and three young children, seriously injured another child, and destroyed the building and the personal property inside.
Leon falsely testified regarding his travel on May 2, 2013, claiming that he had driven straight from the Cumberland Farms in Palatine Bridge to work in Amsterdam, New York, when he had actually driven first to Schenectady, was driving on Hamilton Street near its intersection with Hulett Street, and was in the area of 438 Hulett Street at the time of the fire. Leon also falsely testified in denying that he had used a particular telephone to send text messages to David Terry, some of which were threatening, from April 25 to 29, 2013.
The evidence at trial showed that: Leon purchased and activated a phone on April 25, 2013, which he used to threaten David Terry anonymously, as “the undertaker,” with words like “you’re not going to make it to your wedding day,” “die, Dave, die,” and “you’re a dead man walking.” When those threats apparently did not deter Terry from continuing his relationship with Leon’s girlfriend, Leon went to confront Terry under cover of early morning darkness. Leon said he saw a small fire in the front porch right by the door, with flames maybe two feet high, and left – without alerting the people inside, calling the fire department, the police department, or 911, because he did not want anyone to suspect him. Leon did not tell anyone, and lied about his involvement to a St. Johnsville Police Officer on May 2, 2013; to a Schenectady Police Detective on June 19, 2013; to ATF agents on November 14, 2013; to the grand jury on November 22, 2013; and to agents again on January 2, 2014, before admitting that day that he had lied about the phone and his activities on May 2.
This case was investigated by the ATF, the Schenectady Police Department, and the Schenectady Fire Department. The case was prosecuted by First Assistant U. S. Attorney Grant C. Jaquith and Assistant United States Attorney Wayne A. Myers.Further questions or inquiries may be directed to First Assistant U.S. Attorney Jaquith at 518-431-0247.
The Bureau of Alcohol, Tobacco, Firearms and Explosives notes that there is a reward of up to a total of $40,000 for information leading to the arrest and conviction of the person(s) responsible for the arson that occurred on May 2, 2013 at 438 Hulett Street in Schenectady, resulting in personal injury and death. All information will be treated confidentially and the callers will remain anonymous if requested. Anyone having information should call the ATF Albany Field Office at 518-431-4182, or email [email protected].
Jury Convicts Man of Transporting AliensRead the Press Release
ALBANY, NEW YORK – A jury voted yesterday to convict Wanxiang Chen, age 28, of transporting aliens in the United States for the purpose of financial gain.
The announcement was made by United States Attorney Richard S. Hartunian and United States Border Patrol Acting Division Chief Bradley S. Curtis.
Chen, a Chinese national who was residing in Flushing, Queens, was found guilty of transporting two Chinese people who were in the country illegally. On August 11, 2015, he picked them up from the Akwesasne Mohawk Casino in Hogansburg, New York, and was driving them when Border Patrol stopped his car in Fort Covington. The evidence at trial demonstrated that Chen had made three prior smuggling trips, transporting aliens from the casino to New York City in exchange for cash payments.
Chen 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 July 14, 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.
This case was investigated by the United States Border Patrol and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
CEO of Parkway Car Dealerships Pleads Guilty to Conspiracy to Submit False Statements to Influence A Financial InstitutionRead the Press Release
SYRACUSE, NEW YORK – Gerald McDonald, 52, of Madrid, NY, pled guilty today in federal court in Syracuse to conspiracy to submit false statements to influence a financial institution, announced United States Attorney Richard S. Hartunian and Internal Revenue Service, Criminal Investigation Division Special Agent in Charge Toni M. Weirauch.
As part of his guilty plea, McDonald, Chief Executive Officer (CEO) and part owner of Parkway Country Polaris, Parkway Dodge Chrysler and Jeep, and Parkway Chevrolet and Oldsmobile admitted that he conspired with sales persons and sales managers to submit false information to banks on consumer bank loan applications. In order to ensure that a borrower who would not otherwise qualify for a loan would qualify, a co-conspirator sales person or co-conspirator sales manager would falsely state on the loan application that a cash down payment had been made on a vehicle. In fact, no such down-payments had been made or were overstated in the financing applications. As CEO and part owner of Parkway, McDonald knew of and approved the use of this practice.
Gerald McDonald will be sentenced on July 19, 2016 in federal court in Syracuse by Senior District Judge Norman A. Mordue. He faces a maximum sentence of five years in prison, a fine of up to $250,000, an order of restitution in the amount of $102,498 and an order of forfeiture in the amount of $102,498. Sentences are imposed by a judge based upon the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
This case was investigated by IRS-Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown
Troy Felon Sentenced to 18 Months for Firearm PossessionRead the Press Release
ALBANY, NEW YORK – William J. Richardson, age 41, of Troy, New York, was sentenced today to 18 months in prison for possessing a firearm as a felon and possessing an unregistered 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.
U.S. District Judge Thomas J. McAvoy also sentenced Richardson to 3 years of supervised release, to be served following Richardson’s release from prison.
On May 13, 2015, Richardson sold a sawed-off rifle, a Taurus Circuit Judge manufactured in Brazil, for $500 in a parking lot on Livingston Avenue in Albany. Richardson could not possess the firearm because he had a prior felony conviction. Additionally, the rifle as modified measured less than 26 inches, and it had not been registered in the National Firearms Registration and Transfer Record as required.
This case was investigated by the ATF, with assistance from Homeland Security Investigations and the Albany County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Alleged Heroin Dealer Charged with Distributing Fatal DoseRead the Press Release
SYRACUSE, NEW YORK – Anthony Vita, 36, of Syracuse, New York was arrested yesterday in Virginia Beach, Virginia on a complaint filed in United States District Court for the Northern District of New York (Syracuse) charging him with distributing a controlled substance (heroin) resulting in the death of another person, announced United States Attorney Richard S. Hartunian
The victim, a twenty-four year old resident of Camillus, New York, was five months pregnant when she died of a heroin and fentanyl overdose on November 7, 2015 at her home, as alleged in the complaint. The complaint further alleges that Investigators recovered a text message exchange between Vita and the victim on the night of her death that included arrangements for them to meet so he could sell her heroin and a hypodermic needle.
Following his court appearance in Norfolk, Virginia, Vita was ordered to remain in custody pending his appearance in federal court in Syracuse, New York sometime next week.
The charge filed against Anthony Vita carries a mandatory minimum sentence of 20 years in prison, and a maximum sentence of life imprisonment, a fine of up to $1,000,000.00, and a term of supervised release of at least 3 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by United States Drug Enforcement Administration (DEA) and the Town of Camillus (New York) Police Department and is being prosecuted by Assistant U.S. Attorney Carla Freedman.
Troy Man Pleads Guilty to Bank RobberiesRead the Press Release
ALBANY, NEW YORK – Michael C. Matzen, age 35, of Troy, New York, pled guilty yesterday to committing two bank robberies over the course of two days in East Greenbush and Latham.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Federal Bureau of Investigation, Albany Division.
On March 19, 2015, Matzen entered a TD Bank branch in East Greenbush with his face partially covered. He presented a teller with a note demanding money and stating he had a gun. The defendant took $500 and then fled the bank.
The following day, Matzen walked into a Trustco Bank branch in Latham with his face partially covered. Again he presented a teller with a note demanding money and stating he had a gun. The defendant took $5,750 and then fled the bank.
Matzen faces up to 20 years in prison, and a term of post-imprisonment supervised release of up to 3 years, when he is sentenced on July 26, 2016 by United States District Judge Gary L. Sharpe. Matzen also faces a fine of up to $250,000, and may be ordered to forfeit the money he took during the robberies, or pay restitution to his 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 Federal Bureau of Investigation in coordination with the Colonie Police Department and East Greenbush Police Department, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.The Hayner Hoyt Corporation to Pay $5 Million to Resolve False Claims Act LiabilityRead the Press Release
Government Contractor and Several Individuals Admit That They Violated Laws Designed to Enhance Contracting Opportunities for Our Nation’s Service-Disabled Veterans
Syracuse-based Hayner Hoyt Corporation has agreed to pay $5 million, plus interest, to resolve allegations that its chairman and chief executive officer, Gary Thurston, its president, Jeremy Thurston, employees, Ralph Bennett and Steve Benedict and Hayner Hoyt affiliates LeMoyne Interiors and Doyner Inc., engaged in conduct designed to exploit contracting opportunities reserved for service-disabled veterans.
The United States has long used government contracting to promote small businesses in general and specifically small businesses owned by veterans who have service-connected disabilities. Congress has established a targeted procurement program for the U.S. Department of Veterans Affairs (VA), which requires the VA to set annual goals for contracting with service-disabled veteran-owned small businesses. To be eligible for these contracts, an applicant must qualify as a “small business.” In addition to being a small business, a service-disabled veteran must own and control the business and handle its strategic decisions and day-to-day management.
The settlement resolves allegations that the defendants orchestrated a scheme designed to take advantage of the service-disabled veteran-owned small business program to secure government contracts for a now-defunct company, 229 Constructors LLC, that Gary and Jeremy Thurston created and controlled and subcontracts for Hayner Hoyt and its affiliates. The Thurstons – neither of whom is a veteran – exerted significant influence over 229 Constructors’ decision-making during the bid, award and performance of these contracts in various ways, including by staffing the company entirely with then-current and former Hayner Hoyt employees and their spouses. They also provided 229 Constructors with considerable resources, which provided it with a competitive advantage over legitimate service-disabled veteran-owned small businesses neither affiliated with nor controlled by a larger, non-veteran owned corporation. Hayner Hoyt officials caused false certifications and statements to be made to the government representing that 229 Constructors met all requirements to be a service-disabled veteran-owned small business when they knew, or should have known, that 229 Constructors did not meet such requirements. By diverting contracts and benefits intended for our nation’s service-disabled veterans to Hayner Hoyt and its affiliates, the defendants undercut Congress’s intent of encouraging contract awards to legitimate service-disabled veteran-owned small businesses.
The investigation revealed that Bennett – a service-disabled veteran who allegedly ran 229 Constructors, served as its president and oversaw its $14.4 million government-contracts portfolio – was not involved in making important business decisions for the company. He was instead responsible for overseeing Hayner Hoyt’s tool inventory and plowing snow from Hayner Hoyt’s property. Jeremy Thurston set up an email account in Bennett’s name in such a way that all emails received by the veteran were automatically forwarded to him. After the government began to question 229 Constructors’ affiliation with Hayner Hoyt, Gary Thurston wrote others that he and Jeremy Thurston would likely terminate operations of 229 Constructors. A few months later, service-disabled veteran Bennett and Benedict, who was simultaneously the “co-owner” of 229 Constructors and listed on Hayner Hoyt’s website as one of its five “key” officials, transferred a total of $52,000 to Gary Thurston’s personal bank account allegedly to show their appreciation for the assistance he had provided.
Defendants make various admissions in the settlement agreement, including that their conduct violated federal regulations designed to encourage contract awards to legitimate service-disabled veteran-owned small businesses. They also admit that 229 Constructors provided more than $1.3 million in service-disabled veteran-owned small business subcontracts to Hayner Hoyt, LeMoyne Interiors and Doyner and that those companies generated $296,819 in gross profits as a result.
“Those who do business with the federal government must do so honestly,” said U.S. Attorney Richard S. Hartunian for the Northern District of New York “As today’s settlement demonstrates, this office will vigorously pursue those individuals and entities who game programs designed to help our nation’s veterans succeed in starting small businesses.”
“Federal contracting programs designed to help service-disabled veteran-owned small businesses should never be undermined by actions such as the ones taken by Hayner Hoyt Corporation officials to divert contracts to ineligible large firms,” said Inspector General Peggy E. Gustafson for the Small Business Administration (SBA). “The Office of Inspector General (OIG) will continue to work with the U.S. Department of Justice and partnering agencies in using all available remedies to deter parties from taking advantage of contracting programs designed to assist deserving service-disabled veteran-owned small businesses.”
“This settlement demonstrates the Department of Veterans Affairs, Office of Inspector General’s continued commitment to aggressively pursue individuals and companies that misrepresent themselves as service-disabled veteran-owned small businesses and deny legitimate disabled veterans the opportunity to obtain VA set-aside contracts,” said Special Agent in Charge Jeff Hughes for the Office of Inspector General for the Department of Veteran Affairs (VA-OIG). “The VA-OIG will continue to work diligently to protect the integrity of this important program, which is designed to aid disabled veterans. I also want to thank the U.S. Attorney’s Office and our law enforcement partners in this effort.”
“This civil settlement is a positive result of a joint investigation that proved Department of Defense contractor Hayner Hoyt executed a scheme to exploit and violate SBA and VA regulations in order to obtain service-disabled veteran-owned small business set aside contracts,” said Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service’s (DCIS) Northeast Field Office for the U.S. Department of Defense Office of the Inspector General. “Through these schemes, Hayner Hoyt denied small businesses, owned by legitimate service-disabled veterans, the opportunity to obtain government contracts. Such schemes erode public confidence and undermine the mission of our government. The DCIS and its law enforcement partners will continue to tirelessly pursue and investigate procurement fraud allegations in order to safeguard the American taxpayer and its military veterans.”
The government’s investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, which allows private persons, known as “relators,” to file civil actions on behalf of the United States and share in any recovery. The relator in this case will receive $875,000 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 14-cv-830.
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, SBA-OIG, VA-OIG and DCIS. The United States was represented by Assistant U.S. Attorney Adam J. Katz.
The Hayner Hoyt Corporation to Pay $5 Million to Resolve False Claims Act LiabilityRead the Press Release
SYRACUSE, NEW YORK – Syracuse-based Hayner Hoyt Corporation has agreed to pay $5 million, plus interest, to resolve allegations that its Chairman and Chief Executive Officer, Gary Thurston, its President, Jeremy Thurston, employees, Ralph Bennett and Steve Benedict and Hayner Hoyt affiliates LeMoyne Interiors and Doyner Inc., engaged in conduct designed to exploit contracting opportunities reserved for service-disabled veterans.
The United States has long used government contracting to promote small businesses in general and specifically small businesses owned by veterans who have service-connected disabilities. Congress has established a targeted procurement program for the U.S. Department of Veterans Affairs (VA), which requires the VA to set annual goals for contracting with service-disabled veteran-owned small businesses. To be eligible for these contracts, an applicant must qualify as a “small business.” In addition to being a small business, a service-disabled veteran must own and control the business and handle its strategic decisions and day-to-day management.
The settlement resolves allegations that the defendants orchestrated a scheme designed to take advantage of the service-disabled veteran-owned small business program to secure government contracts for a now-defunct company, 229 Constructors LLC, that Gary and Jeremy Thurston created and controlled and subcontracts for Hayner Hoyt and its affiliates. The Thurstons – neither of whom is a veteran – exerted significant influence over 229 Constructors’ decision-making during the bid, award and performance of these contracts in various ways, including by staffing the company entirely with then-current and former Hayner Hoyt employees and their spouses. They also provided 229 Constructors with considerable resources, which provided it with a competitive advantage over legitimate service-disabled veteran-owned small businesses neither affiliated with nor controlled by a larger, non-veteran owned corporation. Hayner Hoyt officials caused false certifications and statements to be made to the government representing that 229 Constructors met all requirements to be a service-disabled veteran-owned small business when they knew, or should have known, that 229 Constructors did not meet such requirements. By diverting contracts and benefits intended for our nation’s service-disabled veterans to Hayner Hoyt and its affiliates, the defendants undercut Congress’s intent of encouraging contract awards to legitimate service-disabled veteran-owned small businesses.
The investigation revealed that Bennett – a service-disabled veteran who allegedly ran 229 Constructors, served as its president and oversaw its $14.4 million government-contracts portfolio – was not involved in making important business decisions for the company. He was instead responsible for overseeing Hayner Hoyt’s tool inventory and plowing snow from Hayner Hoyt’s property. Jeremy Thurston set up an email account in Bennett’s name in such a way that all emails received by the veteran were automatically forwarded to him. After the government began to question 229 Constructors’ affiliation with Hayner Hoyt, Gary Thurston wrote others that he and Jeremy Thurston would likely terminate operations of 229 Constructors. A few months later, service-disabled veteran Bennett and Benedict, who was simultaneously the “co-owner” of 229 Constructors and listed on Hayner Hoyt’s website as one of its five “key” officials, transferred a total of $52,000 to Gary Thurston’s personal bank account allegedly to show their appreciation for the assistance he had provided.
Defendants make various admissions in the settlement agreement, including that their conduct violated federal regulations designed to encourage contract awards to legitimate service-disabled veteran-owned small businesses. They also admit that 229 Constructors provided more than $1.3 million in service-disabled veteran-owned small business subcontracts to Hayner Hoyt, LeMoyne Interiors and Doyner and that those companies generated $296,819 in gross profits as a result.
“Those who do business with the federal government must do so honestly,” said U.S. Attorney Richard S. Hartunian for the Northern District of New York “As today’s settlement demonstrates, this office will vigorously pursue those individuals and entities who game programs designed to help our nation’s veterans succeed in starting small businesses.”
“Federal contracting programs designed to help service-disabled veteran-owned small businesses should never be undermined by actions such as the ones taken by Hayner Hoyt Corporation officials to divert contracts to ineligible large firms,” said Inspector General Peggy E. Gustafson for the Small Business Administration (SBA). “The Office of Inspector General (OIG) will continue to work with the U.S. Department of Justice and partnering agencies in using all available remedies to deter parties from taking advantage of contracting programs designed to assist deserving service-disabled veteran-owned small businesses.”“This settlement demonstrates the Department of Veterans Affairs, Office of Inspector General’s continued commitment to aggressively pursue individuals and companies that misrepresent themselves as service-disabled veteran-owned small businesses and deny legitimate disabled veterans the opportunity to obtain VA set-aside contracts,” said Special Agent in Charge Jeff Hughes for the Office of Inspector General for the Department of Veteran Affairs (VA-OIG). “The VA-OIG will continue to work diligently to protect the integrity of this important program, which is designed to aid disabled veterans. I also want to thank the U.S. Attorney’s Office and our law enforcement partners in this effort.”
“This civil settlement is a positive result of a joint investigation that proved Department of Defense contractor Hayner Hoyt executed a scheme to exploit and violate SBA and VA regulations in order to obtain service-disabled veteran-owned small business set aside contracts,” said Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service’s (DCIS) Northeast Field Office for the U.S. Department of Defense Office of the Inspector General. “Through these schemes, Hayner Hoyt denied small businesses, owned by legitimate service-disabled veterans, the opportunity to obtain government contracts. Such schemes erode public confidence and undermine the mission of our government. The DCIS and its law enforcement partners will continue to tirelessly pursue and investigate procurement fraud allegations in order to safeguard the American taxpayer and its military veterans.”
The government’s investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, which allows private persons, known as “relators,” to
file civil actions on behalf of the United States and share in any recovery. The relator in this case will receive $875,000 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 14-cv-830.
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, SBA-OIG, VA-OIG and DCIS. The United States was represented by Assistant U.S. Attorney Adam J. Katz.Schenectady Man Pleads Guilty to Identity TheftRead the Press Release
ALBANY, NEW YORK – A Schenectady man pleaded guilty on Friday to stealing another person’s identity and using that person’s information to apply for a United States passport and public benefits.
The announcement was made by United States Attorney Richard S. Hartunian, Special Agent in Charge David Schnorbus of the Department of State Diplomatic Security Service, and Edward J. Ryan, Special Agent-In-Charge of the Social Security Administration Office of the Inspector General.
During his plea on Friday before United States District Judge Mae A. D’Agostino, the man identified himself as Fernando Lugo, a citizen of the Dominican Republic residing in Schenectady prior to his arrest. He admitted that in April 2010, he submitted an application for a U.S. passport to the U.S. Post Office in Schenectady. In February 2015, he applied to receive Medicaid benefits with the Schenectady County Department of Social Services. On both applications, he used the name, Social Security Number, and date of birth of another person he knew.
The defendant faces at least 2 years and 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 July 7, 2016 by Judge 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 Department of State Diplomatic Security Service and the Social Security Administration Office of the Inspector General, and is being prosecuted by Special Assistant U.S. Attorney Jason W. White.
Glenmont Woman Indicted for Social Security FraudRead the Press Release
ALBANY, NEW YORK – Tammy A. Grumme, age 41, of Glenmont, New York, was arraigned today on an indictment accusing her of stealing Social Security Survivor’s Insurance Benefits.
The announcement was made by United States Attorney Richard S. Hartunian and Edward J. Ryan, Special Agent-In-Charge of the Social Security Administration (SSA) Office of the Inspector General.
Grumme is charged with submitting false statements to the SSA from March 2011 through May 2013, claiming that she was the caregiver for her minor son, a surviving child, and that he resided with her. In January 2011, an Albany County Court Judge awarded primary physical custody and sole decision-making authority to the child’s grandparents. The indictment alleges that based on that court order, and the fact that the child did not reside with her, Grumme collected nearly $80,000 in benefits for her and her son that she was not entitled to receive.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Grumme faces up to 10 years of imprisonment, a term of post-imprisonment supervised release of up to 3 years, and a $250,000 fine, if convicted. 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.
Grumme was arraigned today before U.S. Magistrate Judge Daniel J. Stewart. She was detained pending a trial scheduled for May 10, 2016 before U.S. District Judge Frederick J. Scullin, Jr.
This case is being investigated by the SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Jason W. White.
Andes Woman Indicted for Social Security FraudRead the Press Release
BINGHAMTON, NEW YORK – Deborah E. Cottrell, age 65, of Andes, New York, was arraigned yesterday on an indictment accusing her of concealing her marriage and making false statements to the Social Security Administration (SSA) in order to obtain Survivor’s Insurance Benefits.
The announcement was made by United States Attorney Richard S. Hartunian and Edward J. Ryan, Special Agent-In-Charge of the SSA Office of the Inspector General.
The indictment alleges that Cottrell began to collect Survivor’s Insurance Benefits in 1998 and remarried in 2006, which disqualified her from receiving benefits. The indictment alleges that Cottrell continued to receive benefits following her remarriage and in July 2014, mailed a form to the SSA falsely stating that she had not remarried.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Cottrell faces up to 20 years of imprisonment, 2 years of post-imprisonment supervised release and a $250,000 fine, if convicted on all counts of the indictment. 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.
Cottrell was arraigned yesterday in Binghamton before U.S. Magistrate Judge Therese Wiley Dancks. She was released on a bond pending a trial scheduled for May 9, 2016 before U.S. District Judge Thomas J. McAvoy.
This case is being investigated by the SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Jason W. White.
Schenectady Man Indicted for Unlawfully Possessing a Firearm and AmmunitionRead the Press Release
ALBANY, NEW YORK – Edwin Ferrer, age 42, of Schenectady, New York, was arraigned today on a charge of being a felon in possession of a firearm and six rounds of ammunition.
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.
The indictment alleges that on December 18, 2015, Ferrer possessed a Smith & Wesson Model 41, .22 caliber semi-automatic pistol, with a defaced serial number, and six rounds of ammunition.
The charge in the indictment is merely an accusation and the defendant is presumed innocent until proven guilty.
The charge filed against Ferrer carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 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.
Ferrer was arraigned today in Albany before United States Magistrate Judge Christian F. Hummel, and detained pending a trial scheduled for May 9, 2016 in Syracuse before United States District Judge Frederick J. Scullin, Jr.
This case is being investigated by the ATF and the Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Chazy Man Pleads Guilty to Making Threats on FacebookRead the Press Release
ALBANY, NEW YORK – Brock Brian Beeman, age 23, of Chazy, New York, pled guilty today to making interstate threats to injure or kill a Plattsburgh-area man.
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.
In March 2015, Beeman sent threatening communications to a Plattsburgh-area man, by text message and through Facebook. Beeman continued sending these communications even after his victim said he would notify law enforcement if Beeman did not stop.
Beeman faces up to 5 years in prison, a fine of up to $250,000, a term of post-imprisonment supervised release of up to 3 years, and possible restitution to the victim, when he is sentenced on July 13, 2016 by United States District Judge Thomas J. McAvoy. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Elizabeth Horsman.
Man Admits Performing Lead-Based Paint Testing in Westville Without CertificationRead the Press Release
ALBANY, NEW YORK – Ronald Barney, age 66, of Orange, California, pleaded guilty yesterday to a misdemeanor charge of performing lead-based paint testing inspections and risk assessments without a certification from the Environmental Protection Agency (EPA).
The announcement was made by United States Attorney Richard S. Hartunian, EPA Criminal Investigations Division Special Agent in Charge Vernesa Jones-Allen, and Christina Scaringi, Special Agent in Charge of the Housing and Urban Development Office of Inspector General.
Barney, formerly of Constable, New York, pled guilty to a violation of the Toxic Substances Control Act. United States Magistrate Judge Douglas F. McCormick of the Central District of California sentenced Barney to a two-year term of probation and ordered him to pay a $2,500 fine. This case, brought by the U.S. Attorney’s Office for the Northern District of New York, was resolved in the Central District of California, where Barney now resides.
As part of his plea, Barney admitted that on November 4, 2010, he performed an inspection and risk assessment for lead-based paint on a residence in the Town of Westville, New York, despite not being certified by the EPA to do so, and that he billed Westville $2,500 for these services.
The case resulted from a joint investigation by the EPA Criminal Investigations Division and the Housing and Urban Development Office of Inspector General. The case was prosecuted by Assistant United States Attorney Sean O’Dowd in Albany and Assistant United States Attorney Robert Keenan of the Central District of California.Three Adults Charged with Sexual Exploitaion of ChildrenRead the Press Release
SYRACUSE, NEW YORK – Clif J. Seaway, 59, of Granby, New York, Tammy J. LaMere, 45, of Fulton, and Tammy L. Martin, 46, of Carthage, appeared today in United States District Court in Syracuse charged with offenses involving the sexual exploitation of children, announced United States Attorney Richard S. Hartunian.
Each of the three defendants are named in separate but related felony complaints charging them with employing, using, persuading, inducing, or enticing minors to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct over a period of years. The complaints against Seaway and LaMere allege their exploitation of two minors, and the complaint filed against Martin alleges that she exploited those same two minors, as well as a third child. The complaint alleges one of the minors was exploited for nearly ten years.
The charge filed against each of the defendants carries a mandatory minimum sentence of 15 years, and a maximum sentence of 30 years in prison, a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and requires sex offender registration. 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.
All three defendants made their initial appearances today in Syracuse, New York, before United States Magistrate Judge Thérèse Wiley Dancks, and were detained without bail.
The charges in the complaint are merely accusations. The defendants are presumed innocent until proven guilty.
This case is being investigated by the New York State Police and Homeland Security Investigations with assistance provided by the Onondaga County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, and Assistant United States Attorney Carina Schoenberger. Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Middleburgh Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
ALBANY, NEW YORK – Edward Werner, age 51 of Middleburgh, New York, pled guilty today to receiving 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.
Werner 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 July 6, 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. Werner 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/.
Albany Man Pleads Guilty to Child Pornography DistributionRead the Press Release
ALBANY, NEW YORK – Michael G. Isaacson, age 33, of Albany, pled guilty today to distributing and possessing child pornography, announced U.S. Attorney Richard S. Hartunian.
Isaacson 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 July 6, 2016 by 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. Isaacson will also be required to register as a sex offender upon his release from prison.
As part of his plea, Isaacson admitted that he distributed child pornography files over the Internet to a Colonie Police Department Investigator. 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 is being prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Amsterdam Man Admits to Unlawfully Possessing Guns and Distributing HeroinRead the Press Release
ALBANY, NEW YORK – Shawn Taft, age 46, of Amsterdam, New York, pled guilty today to being a felon in possession of five firearms and to 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.
In May 2014, Taft sold heroin to a confidential informant on two separate occasions in the city of Schenectady.
On July 8, 2015, the U.S. Marshals Service, with assistance from the Amsterdam Police Department, went to arrest Taft at his home. While arresting him, an officer observed a .22 caliber rifle in a closet in the front bedroom of Taft’s residence. Officers went on to find four additional firearms in the residence, which were three rifles and a High Standard, model 88, .22 caliber revolver. The revolver was found in a bag of dog food on the back porch. Taft had previously been convicted of a felony and could not possess a firearm.
U.S. District Judge Mae A. D’Agostino is scheduled to sentence Taft on June 23, 2016. Distributing heroin carries a maximum sentence of 20 years in prison, a fine of up to $1 million and a term of supervised release of up to life. Being a felon in possession of a firearm carries a maximum sentence of 10 years in prison, a fine of up to $250,000 and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on a combination of factors including the U.S. Sentencing Guidelines and relevant statutes.
This case was investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms & Explosives and the U.S. Marshals Service, in conjunction with the Schenectady Police Department and the Amsterdam Police Department. The case is being prosecuted by Assistant U.S. Attorney Elizabeth R. Rabe.
Troy Man Pleads Guilty to Health Care FraudRead the Press Release
ALBANY, NEW YORK – Michael VonFricken, age 44, of Troy, New York, pled guilty today to obtaining false receipts for orthodontic services and submitting them to his union’s health care plan, announced United States Attorney Richard S. Hartunian.
VonFricken was charged with health care fraud for obtaining $32,732 in cash reimbursements from the Health and Welfare Plan of the Plumbers and Steamfitters, Local Union Number 7. Between July 1, 2008 and March 5, 2015, he submitted approximately 17 fake receipts for orthodontic work that he did not receive.
U.S. District Judge Mae A. D’Agostino is scheduled to sentence Michael VonFricken on June 21, 2016. His brother John VonFricken, age 50, also of Troy, was separately charged with fraudulently obtaining $54,600 in cash reimbursements from the same union. John VonFricken also pleaded guilty and is scheduled to be sentenced by Judge D’Agostino on June 3, 2016.
The convictions carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.