Northern District of New York
Press releases recorded for this federal judicial district.
Nassau Man Pleads Guilty to Unlawfully Possessing FirearmsRead the Press Release
ALBANY, NEW YORK – Cory M. Saddlemire, age 35, of Nassau, New York, pled guilty today to being a felon in possession of firearms, and to possessing firearms while subject to a protective order.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge Delano Reid of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
Saddlemire was charged by indictment on November 5, 2015 with having unlawfully possessed, in his home, a Rossi shotgun, model S201220, and a .22 caliber Marlin rifle.
Saddlemire faces 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 when he is sentenced on June 22, 2016 by U.S. District Judge Mae A. D’Agostino. 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 ATF and the Nassau Village Police Department, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
Former VA Nurse Pleads Guilty to Stealing Controlled Substance from Hospital SyringesRead the Press Release
ALBANY, NEW YORK – Nathan Baum, age 30, of East Greenbush, New York, pled guilty today to tampering with a consumer product and obtaining controlled substances by deception and subterfuge.
The announcement was made by United States Attorney Richard S. Hartunian; Special Agent in Charge Jeffrey G. Hughes of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office; and Acting Special Agent in Charge Spencer E. Morrison of the U.S. Food and Drug Administration Office of Criminal Investigations, New York Field Office.
Baum, a licensed practical nurse who worked at the hospice ward of the Veterans Affairs Medical Center (VAMC) in Albany, improperly accessed syringes that contained oxycodone hydrochloride. These syringes were stored in locked containers, which Baum was able to access using his individually assigned password. Between April 8, 2014 and May 16, 2014, Baum removed the oxycodone hydrochloride from at least 25 syringes and replaced it with haloperidol.
Oxycodone hydrochloride, a Schedule II controlled substance, is a highly addictive narcotic analgesic used to treat moderate to severe pain and is to be prescribed only when medically required. Haloperidol, often marketed as Haldol, is an anti-psychotic medication used to treat certain mental/mood disorders and to treat uncontrolled movements or agitation.
“To satisfy his addiction, the defendant stole pain medicine intended for veterans in hospice care and tried to hide his crime by replacing that medicine with anti-psychotic medicine that would not have eased their pain,” stated U.S. Attorney Richard S. Hartunian. “In committing this terrible crime, Baum betrayed his patients and their loved ones, the nursing profession, and the Department of Veterans Affairs.”
“Mr. Baum abused his position as a nurse with the VA for his own personal gain at the expense of his patients,” stated Special Agent in Charge Jeffrey G. Hughes of the Veterans Affairs Office of Inspector General, Northeast Field Office. “The VAOIG will continue to work diligently with its law enforcement partners and U.S. Attorney’s Offices to apprehend those who victimize our nation’s veterans.”
“FDA oversees the U.S. supply of medicines to ensure that they are safe and effective, and those who knowingly give the wrong medicines to patients put their health at risk,” said Spencer E. Morrison, Acting Special Agent in Charge, FDA Office of Criminal Investigations’ New York Field Office. “Our office will continue to pursue and bring to justice those who violate laws designed to protect the public health.”
Baum’s tampering was discovered in late May 2014, when his supervisor noticed that he was slurring his speech and his pupils were pinpoint – signs of controlled substance abuse. When federal agents inspected the locked container Baum was allowed to access, they found that three sets of oxycodone hydrochloride syringes had been tampered with. In an interview, Baum admitted that he was addicted to painkillers; that he used oxycodone hydrochloride that was intended for veterans; and that he replaced the oxycodone hydrochloride in some syringes with Haldol.
Senior U.S. District Judge Lawrence E. Kahn is scheduled to sentence Baum on June 22, 2016. Tampering with a consumer product 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. Obtaining controlled substances by deception and subterfuge carries a maximum sentence of 4 years in prison and a fine of up to $250,000. 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 is being investigated by the U.S. Department of Veterans Affairs Office of Inspector General and the Food and Drug Administration Office of Criminal Investigations, and is being prosecuted by Assistant U.S. Attorney Elizabeth R. Rabe.
New York State Correction Officer and Saratoga Woman Charged in Marijuana Distribution ConspiracyRead the Press Release
PLATTSBURGH, NEW YORK – Brad Rushford, 33, of Ellenburg Depot, New York, and Freda Rushford, 62, of Saratoga Springs, New York, were arraigned today on charges related to a marijuana distribution conspiracy operating in upstate New York, announced United States Attorney Richard S. Hartunian.
The indictment charges both defendants with conspiracy to possess with intent to distribute and to distribute 100 kilograms or more marijuana. Freda Rushford is also charged with making a false statement to federal officers.
If convicted of the conspiracy charge, both defendants face at least 5 years and up to 40 years in prison, a maximum fine of $5 million, and a term of supervised release of at least 4 years and up to life. The false statement charge against Freda Rushford 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.
The defendants were arraigned in Plattsburgh, New York, before United States Magistrate Judge Garry L. Favro. Trial is scheduled for April 18, 2016 before United States District Judge David N. Hurd in Utica, New York.
Brad Rushford, who is Freda Rushford’s son, worked as a correction officer with the New York State Department of Corrections and Community Supervision.
The charges in the indictment are merely accusations. The defendants are presumed innocent until proven guilty.
This case is being investigated by the Department of Homeland Security, Homeland Security Investigations, Federal Bureau of Investigation, U.S. Customs and Border Protection, U.S. Coast Guard Investigative Service, New York State Department of Corrections and Community Supervision, Office of Special Investigations, New York State Police, and St. Regis Mohawk Tribal Police, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Florida Man Sentenced to Eight Years in Prison for Investment Fraud ConspiracyRead the Press Release
SYRACUSE, NEW YORK –Burton Greenberg, 75, of Plantation, Florida was sentenced today in Federal Court in Fort Lauderdale, Florida after pleading guilty to a Northern District of New York indictment charging him with conspiracy to commit wire fraud, announced United States Attorney Richard S. Hartunian and FBI Special Agent In Charge Andrew W. Vale. Greenberg was sentenced to 97 months imprisonment, ordered to pay restitution in the amount of over $10 million and ordered to pay a forfeiture money judgment of over $10 million. He was also ordered to serve a three year term of supervised release following release from imprisonment.
Greenberg is President/CEO of M&P Global Financial Services, Incorporated, a Florida based corporation that entered into agreements in 2001 with Global Financial Fund 8, LLP, a company that solicited and received over $10 million from investors located throughout the United States, including residents of the Northern District of New York. As part of his guilty plea, Greenberg admitted that rather than investing the money in a secure investment as promised, he instead used the funds to make separate investments for himself. In an effort to avoid detection and allow him to continue to divert money for his own use, Greenberg helped orchestrate the payment of phony "profit" distributions to investors in 2004 and 2005 which were merely a partial return of their own principal investment. From 2004 to 2013 Greenberg repeatedly assured the investors via e-mail that their investments were secure and profitable when he knew that was not the case.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Geoffrey Brown.
Guyanese Woman Sentenced to 75 Months for Trafficking in Counterfeit Credit CardsRead the Press Release
ALBANY, NEW YORK – Georgette Jackman, age 37, a citizen of Guyana and former resident of Brooklyn, New York, was sentenced today to serve 75 months in prison for a scheme in which she and others used counterfeit credit cards to purchase more than $400,000 in gift cards from grocery stores.
The announcement was made by U.S. Attorney Richard S. Hartunian and Todd Laster, Special Agent in Charge of the Buffalo Field Office of the U.S. Secret Service.
U.S. District Judge Mae A. D’Agostino sentenced Jackman to 51 months on her convictions for conspiracy to commit access device fraud and trafficking in counterfeit access devices. Judge D’Agostino additionally sentenced Jackman to two years of imprisonment on an aggravated identity theft conviction, which must be served consecutively to the other sentence of imprisonment Jackman received. Jackman, who pleaded guilty in October 2015, also faces deportation from the United States following the completion of her term of imprisonment.
From February 2012 through January 2013, Jackman and co-conspirators Jamese Williams and Terry Nicholas travelled together by car to stores throughout New York, Massachusetts, New Hampshire, Vermont and Connecticut, including approximately 47 Price Chopper grocery stores. During these trips, Jackman provided Williams and Nicholas with hundreds of counterfeit credit cards bearing stolen account numbers and embossed names that did not correspond to the actual account holders whose account numbers were stolen. Williams and Nicholas used these cards to purchase $435,465 worth of gift cards, which they gave to Jackman.
In December 2015, Nicholas and Williams were sentenced to 61 and 57 months in prison, respectively, for their involvement in the conspiracy.
This case was investigated by the U.S. Secret Service and was prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Albany County Man Sentenced to 80 Years for Sexually Exploiting A MinorRead the Press Release
ALBANY, NEW YORK - Robert C. McCoy, age 56, of Glenmont and Selkirk, NY, was sentenced today to 80 years in prison following his conviction in August 2015 for sexual exploitation of a minor and other child exploitation crimes.
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 August 6, 2015, a jury found McCoy guilty after a four-day trial. The evidence demonstrated that between 2012 and 2014, McCoy produced sexually explicit images of a minor. McCoy was also found guilty of possessing child pornography and committing a felony offense involving a minor while already a registered sex offender.
"McCoy’s sentence reflects the heinousness of his crimes," stated U.S. Attorney Richard S. Hartunian. "His prosecution is the result of the work we do every day with our federal agencies and the police to investigate and prosecute those who prey on our community’s children."
"Predators like Mr. McCoy endanger our community," said Special Agent in Charge Andrew Vale. "The damage inflicted on their victims can never be undone. While we do not have the power to restore a child’s innocence, we do have the power to ensure that Mr. McCoy and those of his ilk are held accountable for their unspeakable crimes."
In addition to imposing a sentence of 80 years of imprisonment, U.S. District Judge Mae A. D’Agostino also ordered McCoy to serve a lifetime term of supervised release, to begin after his release from prison.
This case was investigated by the Town of Bethlehem Police Department and the FBI, with assistance from the New York State Police. The case was prosecuted by Assistant United States Attorney Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, and Assistant United States Attorney Emily Farber.
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.
Utica Woman Pleads Guilty to Marriage FraudRead the Press Release
SYRACUSE, NEW YORK – Emina Baltic, 27, of Utica, New York, pled guilty today in federal court in Syracuse to 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, Baltic admitted that she married a citizen of Serbia on December 22, 2011, for the purpose of assisting him in obtaining permanent residency in the United States. Baltic further admitted that she never intended to establish a life with her husband and that she was paid more than $17,000 for entering into the fraudulent marriage.
Emina Baltic will be sentenced on June 17, 2016 in federal court in Syracuse by Chief District Judge Glenn T. Suddaby. 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 HSI, and is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Oneida County Woman Charged with Federal Disability FraudRead the Press Release
SYRACUSE, NEW YORK – Lynn M. Allen, 47, of Marcy, New York, appeared today in federal court in Syracuse on charges stemming from a scheme to defraud the United States Postal Service and the U.S. Department of Labor of more than $94,000 in federal disability compensation payments, announced United States Attorney Richard S. Hartunian and Eileen Neff, Special Agent in Charge, United States Postal Service Office of Inspector General (USPS OIG), Northeast Area Field Office.
Allen was arrested earlier today in Utica, New York, while at work at the New York State Workers’ Compensation Board. Following her court appearance before United States Magistrate Judge David E. Peebles, she was released pending trial.
The five-count indictment charges Allen with wire fraud, theft of government money, federal employees’ compensation fraud and includes a forfeiture allegation seeking a money judgment in the amount of $94,253.95. The indictment alleges that Allen received federal disability benefits after claiming that she injured her shoulder, back, and neck while working for the Postal Service. According to the indictment, Allen supported her disability claim by reporting that her injuries prevented her from grasping objects or reaching above the shoulder and that she could not engage in any repetitive reaching, bending, stooping, or movements of the wrists and elbows. The indictment further alleges that Allen continued to certify that she was disabled and unable to work for the Postal Service while playing in several recreational softball leagues in Rome, New York, and that in one instance, she played in a competitive softball game hours after claiming that she could not reach above her shoulder at all. If convicted, Allen faces up to 20 years in prison and a maximum fine of $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.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty. This case is being investigated by USPS OIG and is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Jefferson County Woman Pleads Guilty to $133,000 Theft at Fort DrumRead the Press Release
SYRACUSE, NEW YORK – Nancy E. Campany, 69, of Carthage, New York, pled guilty today in federal court in Syracuse to the theft of more than $133,000 related to contracts she held with the Army & Air Force Exchange Service ("AAFES"), announced United States Attorney Richard S. Hartunian and Craig W. Rupert, Special Agent in Charge, Defense Criminal Investigative Service ("DCIS"), Northeast Field Office, U.S. Department of Defense, Office of Inspector General.
Campany operated an alteration and dry cleaning business known as "Nancy’s Alteration" at Fort Drum, New York, between 2005 and 2011. Her contract with AAFES required payment to AAFES of approximately 23% of the gross sales and receipts generated by "Nancy’s Alteration." Over a nearly six-year period, Campany intentionally failed to record hundreds of thousands of dollars in sales by instructing her employees to process credit card transactions without ringing them through the cash register in order to conceal them from AAFES. Campany then created and submitted false and fraudulent reports to AAFES regarding her gross sales and gross receipts, thereby concealing what she owed under her contracts. In doing so, Campany defrauded AAFES out of $133,769.64 in fees. As part of her guilty plea, Campany agreed to make full restitution to AAFES.
Nancy E. Campany will be sentenced on June 17, 2016 in federal court in Syracuse by Chief District Judge Glenn T. Suddaby. She faces a maximum sentence of up to ten 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 DCIS, AAFES Loss Prevention, and the AAFES Business Law Division, Office of the General Counsel, and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Albany Man Sentenced to 51 Months for Importing EthyloneRead the Press Release
ALBANY, NEW YORK - Damon J. Murray, age 28, of Albany, was sentenced today to 51 months in prison and 6 years of supervised release for importing the controlled substance ethylone into the United States.
The announcement was made by U.S. Attorney Richard S. Hartunian and James Spero, Special Agent in Charge for Immigration and Customs Enforcement, Homeland Security Investigations (HSI).
Ethylone, which is often used as a party drug, has been a controlled substance since March 2014.
On February 12, 2015, U.S. Customs and Border Protection Officers in Cincinnati, Ohio, intercepted a package that had been sent from China to the United States, and which was addressed to “Damon Murray LLC” at the defendant’s residential address in Albany. The package was found to contain about 400 grams of ethylone. On February 26, 2015, the defendant accepted and signed for the package. HSI Special Agents then arrested the defendant, who admitted ordering the ethylone from China and also previously selling ethylone to others, sometimes marketing it as “molly.”
This case was investigated by Homeland Security Investigations, with assistance from the Albany County Sheriff’s Office and U.S. Customs and Border Protection. The case was prosecuted by Assistant U.S. Attorney Michael Barnett.
Two Syracuse Men Charged in Gun Store TheftsRead the Press Release
SYRACUSE, NEW YORK – Andrew Grady, 21, and Leron Ross, 24, both of Syracuse, New York, were charged today in federal court in a criminal complaint alleging they were members of conspiracy to steal firearms from Intimidator Sports in Nedrow, New York, a licensed federal firearms dealer. The complaint also alleges that both defendants aided and abetted in the commission of a break-in and the theft of firearms at this location on November 20, 2014, announced United States Attorney Richard S. Hartunian.
Andrew Grady was arrested yesterday by Special Agents of the United States Bureau of Alcohol, Tobacco, Firearms & Explosives ("ATF") and Detectives of the Onondaga County Sheriff’s Office, and made his appearance today in Syracuse, New York, before United States Magistrate Judge David E. Peebles. Grady is detained pending a hearing scheduled for February 10, 2016.
Leron Ross is currently incarcerated in the custody of the New York State Department of Correctional Services and will make his appearance in the future when scheduled by the court. The complaint alleges that the burglary resulted in the theft of nine (9) handguns when the glass doors of the store were smashed during a burglary in the early morning hours of November 20, 2014.
The Theft of Firearms From a Licensed Dealer charge carries a maximum sentence of 10 years in prison, a fine of up to $250,000.00 and a term of supervised release of up to 3 years. The Conspiracy to Commit the Firearms Thefts carries a maximum sentence of up to five years (5) in prison. 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 charges in the complaint are merely accusations. The defendants are presumed innocent until proven guilty.
This case is being investigated by The United States Bureau of Alcohol, Tobacco, Firearms & Explosives and the Onondaga County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorneys Emmet O’Hanlon and Richard Southwick.
Jury Convicts Schenectady Man of Crack Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – A jury on Friday convicted Charles McCormick, Jr., age 22, of Schenectady, New York, of conspiring to distribute and possess with intent to distribute crack cocaine.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge Andrew W. Vale of the FBI’s Albany Division.
McCormick faces up to 20 years in prison, and a term of post-imprisonment supervised release of at least 3 years and up to life, when he is sentenced on June 15, 2016 by Senior United States District Judge Thomas J. McAvoy. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The jury convicted McCormick following a three-day trial. The evidence at trial demonstrated that McCormick worked with others to sell crack cocaine in Schenectady and Rutland, Vermont.
This case was investigated by the Federal Bureau of Investigation and the Schenectady Police Department, in connection with the Capital District Safe Streets Gang Task Force. The Task Force includes members from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Schenectady District Attorney’s Office, the New York State Department of Corrections, the New York National Guard Counter-Drug Task Force, and the Albany County Sheriff’s Office.
The case was prosecuted by Assistant United States Attorneys Kofi Sansculotte and Sean O’Dowd.
Man Sentenced to 60 Months for Alien SmugglingRead the Press Release
SYRACUSE, NEW YORK –Ronaldo Reyes, age 39, of Quebec, Canada, was sentenced yesterday to 60 months in prison following a September 2015 trial in which he was found guilty of alien smuggling offenses.
The announcement was made by United States Attorney Richard S. Hartunian, John C. Pfeifer, Chief Patrol Agent, United States Border Patrol, and James Spero, Special Agent in Charge, Homeland Security Investigations.
The evidence at trial demonstrated that Reyes acted as a smuggler for 12 aliens who entered the United States without inspection at Champlain, NY and Beecher Falls, VT.
Witnesses testified they each paid Reyes thousands of dollars in U.S. and Canadian cash in order to be brought to the United States illegally. Reyes would then walk the aliens across the international border at night to a prearranged pickup vehicle, before fleeing north to Canada on foot. Reyes was indicted and extradited from Canada in 2015. He was convicted by a jury on September 23, 2015, following a three-day trial in Albany presided over by Senior United States District Judge Frederick J. Scullin.
This case was investigated by the United States Border Patrol and Homeland Security Investigations, and was prosecuted by Assistant U.S. Attorneys Douglas Collyer and Katherine Kopita.
Upstate New York Construction Company and Individuals to Pay More Than $1 Million to Settle Fraud ClaimsRead the Press Release
ALBANY, NEW YORK – An upstate New York construction company and three individuals have paid $1,012,000 to resolve claims that they defrauded a government program designed to benefit women- and minority-owned contractors, announced United States Attorney Richard S. Hartunian. The settling parties are Watervliet-based ING Civil, Inc. and its owner, Corey Ingerson; James Beaudoin, who is the former president of Watervliet-based Rexford Albany Municipal Supply Company, Inc. (RAMSCO); and former RAMSCO salesman John Leary.
The United States Department of Transportation (DOT) has promulgated regulations intended to provide opportunities for businesses owned by socially and economically disadvantaged individuals to perform work on projects financed, at least in part, by the federal government. DOT also administers a Disadvantaged Business Enterprise (DBE) program that requires state and local governments receiving federal funding to establish goals for the participation of DBEs on federally-funded projects. A contractor may claim credit for a DBE’s participation on a project only if the DBE serves a "commercially useful function." A DBE performs a commercially useful function when it is responsible for execution of a distinct element of work on a contract. A DBE does not serve a commercially useful function if its role is limited to that of an extra participant to a transaction through which funds are passed to create the impression that members of a historically disadvantaged group worked on a contract.
The settlements resolve the following allegations:
In 2009, when preparing to submit a bid to the City of Cohoes to reconstruct the Bridge Avenue Bridge over the Mohawk River, Corey Ingerson spoke with John Leary to see if RAMSCO would provide a quote for materials that ING Civil would need if awarded the project. Leary explained to Ingerson that RAMSCO could both provide the materials for the project and bill them through a DBE, American Indian Builders & Suppliers, Inc. (AIB), to help ING Civil satisfy the project’s DBE goals. Shortly thereafter, Ingerson learned that ING Civil had been awarded the project, and he signed a DBE Utilization Worksheet representing that AIB would supply $306,285 worth of materials for the project. When Ingerson signed the DBE Utilization Worksheet agreeing to work with AIB, he knew virtually nothing about the company and had not had any substantive discussions with anyone from AIB about the materials needed for the project. All of Ingerson’s discussions on that topic were with RAMSCO officials. ING Civil ended up purchasing all materials on its DBE Utilization Worksheet from RAMSCO, rather than AIB.
In November 2010, after work on the Bridge Avenue Bridge was substantially complete, local government officials asked Ingerson to document ING Civil’s DBE expenditures on the project. Ingerson then contacted Leary to explain that ING Civil did not have the documentation necessary to support a claim that it had purchased materials from AIB, as it had represented it would do on its DBE Utilization Worksheet. At that time, Leary and Ingerson decided to prepare documents to create the appearance that the materials ING Civil purchased from RAMSCO had been purchased from AIB. Over the next few months, officials from ING Civil, RAMSCO, and AIB exchanged invoices, purchase orders and other documents to make it appear as though ING Civil had purchased materials from AIB that it had actually purchased from RAMSCO. In February 2011, ING Civil submitted electronic documentation to the City of Cohoes falsely representing that it had satisfied its DBE goals on the project by working with AIB.
In the settlement agreement, Ingerson admitted that he made a false filing indicating that materials for the Bridge Avenue Bridge project had been supplied by AIB when, at the time he made that filing, he knew the materials had been provided by RAMSCO, which was not a DBE. Beaudoin (for RAMSCO) and Leary admitted that they took steps to aid ING Civil in making that false filing. The parties also acknowledged that their conduct violated the False Claims Act.
United States Attorney Hartunian said: "The Disadvantaged Business Enterprise program was established to help small businesses owned by minorities and women obtain work on federally funded projects. As these and our other recent DBE fraud settlements demonstrate, this office will aggressively pursue individuals and entities that undermine this important objective."
"As evidenced by the settlement agreements entered into by ING Civil, Inc., Corey Ingerson, James Beaudoin, and John Leary, we remain steadfast in our commitment to maintaining the integrity of the United States Department of Transportation’s Disadvantaged Business Enterprise program," said Douglas Shoemaker, regional Special Agent-in-Charge of DOT’s Office of Inspector General. "Working with the Secretary of Transportation and other DOT leaders, and our law enforcement and prosecutorial colleagues, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law."
In August 2015, HD Supply Waterworks, a company that acquired RAMSCO, paid $4,945,000 to resolve allegations that it also enabled several prime contractors to represent falsely that AIB had performed commercially useful functions on federally-funded contracts. Each of these investigations and settlements were the result of a coordinated effort among the United States Attorney’s Office for the Northern District of New York, the United States Department of Transportation’s Office of Inspector General and the United States Environmental Protection Agency’s Office of Inspector General, with the assistance of the Federal Bureau of Investigation and the New York State Department of Transportation’s Investigations Bureau. The United States was represented in each matter by Assistant United States Attorney Adam J. Katz.
Troy Man Pleads Guilty to Health Care FraudRead the Press Release
ALBANY, NEW YORK – John VonFricken, age 50, 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 $54,600 in cash reimbursements from the Health and Welfare Plan of the Plumbers and Steamfitters, Local Union Number 7. Between July 2008 and February 2015, VonFricken submitted 18 fake receipts for orthodontic work he did not receive.
VonFricken’s sentencing is scheduled for June 3, 2016 before United States District Court Judge Mae A. D’Agostino. The charges 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.
Schenectady Man Indicted for Firearm OffensesRead the Press Release
ALBANY, NEW YORK – A federal grand jury today returned a two-count superseding indictment charging John Coffin, age 46, of Schenectady, New York, of being a felon and armed career criminal in possession of a firearm, as well as possessing a firearm in furtherance of a drug trafficking crime.
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.
The superseding indictment alleges that on March 23, 2015, Coffin possessed a Walther P22 semi-automatic pistol and .22 caliber ammunition.
The superseding indictment also alleges that on July 28, 2015, Coffin possessed a Hi-Point 995 9-millimeter rifle and 9-millimeter ammunition, and possessed that rifle and ammunition in connection with a drug trafficking crime.
The charges in the superseding indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Coffin has three prior convictions for violent felonies or drug trafficking crimes, making him an armed career criminal under federal law and subject to a minimum 15-year prison sentence if convicted. Additionally, any person convicted of possessing a firearm in furtherance of a drug trafficking crime is subject to a minimum 5-year prison sentence.
Coffin faces the maximum of life imprisonment and a $250,000 fine if convicted of either count. A defendant’s sentence is imposed by a judge based on a combination of factors including the U.S. Sentencing Guidelines and relevant statutes.
Trial is scheduled to begin on March 21, 2016 before United States District Judge Gary L. Sharpe. Coffin is detained until trial.
This case is being investigated by the Federal Bureau of Investigation and the Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Kofi Sansculotte.
Schenectady Man Indicted as an Armed Career CriminalRead the Press Release
ALBANY, NEW YORK – An indictment was unsealed this week charging Tameen Johnson, age 38, of Schenectady, New York, of being a felon and armed career criminal in possession of a firearm.
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.
Johnson, who was indicted on December 23, 2015, is alleged to have possessed a Hi-Point .40 caliber pistol and ammunition in April 2015. At the time, Johnson had three prior convictions for violent felonies or drug trafficking crimes, making him an armed career criminal under federal law and subject to a minimum 15-year prison sentence if convicted.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Johnson faces a maximum of life imprisonment and a $250,000 fine if convicted. A defendant’s sentence is imposed by a judge based on a combination of factors including the U.S. Sentencing Guidelines and relevant statutes.
Trial is scheduled to begin on April 25, 2016 before United States District Judge Gary L. Sharpe. Johnson is detained until trial.
This case is being investigated by the Federal Bureau of Investigation and the Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Oswego Man Arrested for Distribution, Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – James M. Moody, Jr., 41, of Oswego, New York, was arrested yesterday on charges of distribution, receipt and possession of child pornography following a joint investigation by Special Agents of the Department of Homeland Security Investigations ("HSI"), the New York State Police-Computer Crime Unit and the Oswego Police Department, announced United States Attorney Richard S. Hartunian.
The defendant appeared today in federal court in Syracuse, New York, before United States Magistrate Judge David E. Peebles. He is being held in custody pending a detention hearing set for February 8, 2016.
If convicted of distributing, receiving and possessing child pornography, Moody faces a mandatory minimum sentence of five (5) years imprisonment, a maximum term of 20 years imprisonment, 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. Sentences are imposed by a judge based on the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
Liverpool, New York Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Christopher Filippi, 48, of Liverpool, New York, pled guilty today to the entirety of a four-count indictment charging him with the receipt and possession of child pornography, announced United States Attorney Richard S. Hartunian. In entering his guilty pleas before United States District Judge Brenda K. Sannes, Filippi admitted he received and possessed thousands of photographs and videos containing child pornography. A jury trial in the case was to begin on February 9, 2016.
At sentencing on May 27, 2016, Filippi faces a mandatory minimum term of five years in prison and a maximum term of up to twenty years in prison on each count. 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. In addition to a term of incarceration, Filippi will be required to register as a sex offender and to pay restitution to the victims depicted in the child pornography images he possessed. He will also forfeit the computer equipment used in his crimes and be required to serve a term of supervised release for a minimum of five years and up to life.
The case was investigated by the Federal Bureau of Investigation ("FBI") with assistance from the Syracuse Police Department, and is being prosecuted by Assistant U.S. Attorney Nicolas Commandeur.
Albany Man Indicted for Synthetic CannabinoidsRead the Press Release
ALBANY, NEW YORK – Shukri Abdullah, age 43, of Albany, New York, was arraigned yesterday on an indictment charging him with possession with the intent to distribute synthetic cannabinoids with brand names like Scooby Snax, Geeked Up, and Green Giant.
The announcement was made by United States Attorney Richard S. Hartunian, Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration, and Albany County Sheriff Craig D. Apple, Sr.
The indictment alleges that on August 20, 2015, Shukri, a co-owner of a deli in Albany, New York, possessed with the intent to distribute synthetic cannabinoids. Synthetic cannabinoids — also known as “Spice” and “K2” — are substances designed to mimic the effects of cannabis, and are often sold as a smokable drug.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Abdullah faces up to 20 years of imprisonment and a $1,000,000 fine, if convicted. A 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. Abdullah, who was indicted on December 23, 2015, was arraigned on February 2, 2016 before United States Magistrate Judge Christian F. Hummel. He was detained pending trial before United States District Judge Gary L. Sharpe.
The case is being investigated by the Drug Enforcement Administration and the Albany County Sherriff’s Office, and is being prosecuted by Assistant United States Attorney Wayne A. Myers.
Two Men Arrested in Watertown Area for Unlawful Possession of FirearmsRead the Press Release
SYRACUSE, NEW YORK – Loren Woodard, 34, of Calcium, New York and Corey Daniels, 33, of Watertown, New York, were arrested on federal firearms charges, announced United States Attorney Richard S. Hartunian.
Woodard appeared in court yesterday and Daniels appeared in court today on a ten-count indictment alleging possession of firearms by a convicted felon and possession of stolen firearms. Woodard is also charged with possession of a firearm with an obliterated serial number. The indictment alleges felony violations with respect to seven (7) different firearms, including multiple pistols and long guns.
If convicted, each defendant faces a maximum sentence of ten (10) years imprisonment, a term of supervised release of up to three (3) years following imprisonment, and a fine of up to $250,000. Actual sentences are typically less than the maximum penalties. Sentences are imposed by a judge based on U.S. Sentencing Guidelines and other statutory factors.
The defendants appeared in federal court in Syracuse, New York, before United States Magistrate Judge Andrew T. Baxter.
The charges in the indictment are merely accusations. The defendants are presumed innocent until proven guilty.
This case is being investigated by the United States Bureau of Alcohol, Tobacco, Firearms & Explosives ("ATF") and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Nicolas Commandeur.
Syracuse Woman Sentenced to 78 Months in Prison for Irs and Social Security FraudRead the Press Release
SYRACUSE, NEW YORK – Patique Donerlson, 34, of Syracuse, New York, was sentenced today to 78 months in prison to be followed by 3 years of supervised release, as a result of her conviction for three counts of aggravated identity theft and three counts of misuse of a social security number, announced United States Attorney Richard S. Hartunian. Donerlson was also ordered to pay $12,239 in restitution to the Internal Revenue Service ("IRS").
Donerlson’s sentence stemmed from her scheme to obtain federal income tax refunds by preparing and electronically filing fraudulent tax returns using other people’s personal information (names, dates of birth, and social security numbers). In the commission of these crimes, the defendant obtained the personal identification information in various ways, including some from persons whose taxes she had prepared in the past, without obtaining their permission and without their knowledge for the current filings. In each instance, the defendant fraudulently claimed these individuals had self-employment income and were eligible for an earned income tax credit from the IRS in the form of a refund, which was false. She then directed the IRS to issue the fraudulent tax refunds for these individuals on a prepaid debit card in the taxpayer’s name, and requested they be mailed to an address belonging or accessible to Donerlson.
This case was investigated by the Social Security Administration and Internal Revenue Service, Criminal Investigations, and was prosecuted by Assistant U.S. Attorney Carl G. Eurenius
Morrisville Man Arrested for Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Michael Caraher, 26, of Morrisville, New York, was arrested yesterday on charges of receipt and possession of child pornography following the execution of a search warrant at his residence by Special Agents of the Federal Bureau of Investigation ("FBI"), announced United States Attorney Richard S. Hartunian.
The defendant appeared yesterday in federal court in Syracuse, New York, before United States Magistrate Judge Andrew T. Baxter. He is being held in custody pending a detention hearing set for Tuesday, February 2, 2016.
If convicted of receiving and possessing child pornography, Michael Caraher faces a mandatory minimum sentence of five (5) years imprisonment and a maximum term of 20 years imprisonment, 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. Actual sentences are typically less than the maximum penalties and are imposed by a judge based on U.S. Sentencing Guidelines and other statutory factors.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
This case was investigated by The FBI, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
South Glens Falls Woman Indicted for Social Security FraudRead the Press Release
ALBANY, NEW YORK – Roberta L. Rivers, age 57, of South Glens Falls, New York, was arraigned yesterday on an indictment accusing her of stealing $112,000 in benefits from the Social Security Administration (SSA).
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.
Rivers is charged with theft of government property, Supplemental Security Income (SSI) fraud, and Social Security fraud. The indictment alleges that Rivers, while collecting SSI and survivors insurance benefits, concealed and failed to disclose that she had been remarried and resided with her new husband, a fact that she knew would disqualify her from receiving benefits.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Rivers faces up to 5 years of imprisonment and a $250,000 fine if convicted. Actual sentences are typically less than the maximum penalties. Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors.
Rivers, who was indicted on January 20, 2016, was arraigned yesterday before U.S. Magistrate Judge Daniel J. Stewart. She was released on a bond pending a trial scheduled for March 28, 2016 before Senior U.S. District Judge Gary L. Sharpe.
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.
Preston Hollow Woman Indicted for Social Security FraudRead the Press Release
ALBANY, NEW YORK – Karen L. Sowman, age 55, of Preston Hollow, New York, was arraigned today on an indictment accusing her of stealing $69,000 in benefits from the Social Security Administration (SSA).
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.
Sowman is charged with theft of government property. The indictment alleges that Sowman took and spent Social Security benefit payments deposited into her deceased mother’s bank account knowing that the money was not hers.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Sowman faces up to 10 years of imprisonment and a $250,000 fine if convicted. Actual sentences are typically less than the maximum penalties. Sentences are imposed by a judge based on U.S. Sentencing Guidelines and other statutory factors.
Sowman, who was indicted on January 20, 2016, was arraigned today before Magistrate Judge Daniel J. Stewart. She was released on her own recognizance pending a trial scheduled for March 28, 2016 before U.S. District Judge Mae A. D’Agostino.
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.
Onondaga County Woman Pleads Guilty to Theft of Pension FundsRead the Press Release
SYRACUSE, NEW YORK–Lorraine Lorini, 55, of Nedrow, New York, pleaded guilty to one felony count of theft of government money, announced United States Attorney Richard S. Hartunian. Lorini will be sentenced in June and faces up to ten years in prison and a fine of up to $250,000, although under the United States Sentencing Guidelines her actual sentence may be less.
Lorini admitted that she applied for and received pension benefits from the Pension Benefit Guaranty Corporation (PBGC), an independent agency of the United States, on behalf of her mother, who was already deceased. Lorini also admitted that she collected more than $37,000 in pension benefits in her deceased mother’s name and that she retained this money for her own use. As part of her plea, Lorini agreed to make full restitution to PBGC.
This case was investigated by the Office of Inspector General for PBGC, and it is being prosecuted by Assistant United States Attorney Michael F. Perry.
Surgeon Receives 78 Months in Prison for Distributing OxycodoneRead the Press Release
ALBANY, NEW YORK – Jeffrey Gundel, age 51, an orthopedic surgeon from Gansevoort, New York, was sentenced today to 78 months in prison for illegally authorizing the distribution of tens of thousands of oxycodone pills.
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.
On December 3, 2014, Gundel pled guilty to one count of unlawful distribution of oxycodone. As part of his guilty plea, Gundel admitted that, between May 2011 and April 2014, he wrote over 200 prescriptions authorizing the dispensation of at least 59,520 30-milligram oxycodone tablets for no legitimate medical purpose. Gundel also admitted that he received cash kickbacks after co-conspirators filled the prescriptions and sold the oxycodone pills on the black market. On several occasions, Gundel prescribed oxycodone to undercover law enforcement agents he never met, treated, or communicated with in any way.
U.S. District Judge Mae A. D’Agostino also sentenced Gundel to a term of 3 years of supervised release, to be served following his release from prison. In sentencing Gundel, Judge D ’Agostino told him that he “became a common criminal drug dealer” and that there was “no way to quantify how many people became addicted to oxycodone because of your actions.”
Oxycodone is an addictive and often abused Schedule II narcotic prescribed to treat severe pain. The typical street value of a single tablet of the type prescribed by Gundel ranges from $30 to $45.
United States Attorney Richard S. Hartunian said: “Prescription drug abuse kills thousands of Americans every year and results in countless others transitioning to heroin to support their opioid addictions. Doctor Gundel’s reprehensible violation of his duties as a physician caused the streets of this District to be flooded with tens of thousands of deadly, addictive oxycodone pills. Those who misuse their privilege to prescribe and distribute controlled substances need to understand that they will be investigated and prosecuted just like the criminals selling heroin and other dangerous drugs on the street.”
Special Agent in Charge James J. Hunt said: “Diverted oxycodone is today’s ‘gateway drug’ for heroin, leading to tens of thousands of overdose deaths in the U.S last year. This guilty plea reiterates that doctors who illegally prescribe pain medication for profit are fueling heroin abuse throughout America’s cities. I commend our law enforcement partners and the DEA’s Albany District Office for their diligent efforts throughout this investigation.”
This case was investigated by the Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Wayne A. Myers.
Stephentown Man Pleads Guilty to Illegally Possessing A FirearmRead the Press Release
ALBANY, NEW YORK – Joseph M. Jackson, age 36, of Stephentown, New York, pleaded guilty today to being a felon in possession of a firearm.
The announcement was made by United States Attorney Richard S. Hartunian and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
On September 27, 2015, Jackson, a felon, was found to be in possession of a Rohm Gesellschaft .38 caliber revolver, one box of Winchester .38 caliber live ammunition and one round of 9x19 caliber ammunition. The gun and the ammunition were found in a safe; the safe was in a car that was registered to Jackson.
Jackson faces 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 when he is sentenced on May 23, 2016 by U.S. District Judge Mae A. D’Agostino. Actual sentences are typically less than the maximum penalties. Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors.
This case is being investigated by the ATF and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Emily Farber.
Second Canadian Marijuana Trafficker Receives Life SentenceRead the Press Release
SYRACUSE, NEW YORK – Gaetan "Gates" Dinelle, age 42, of Cornwall, Ontario, was sentenced yesterday to life imprisonment for running a drug trafficking organization that made more than $10 million in profits in a single year.
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.
Dinelle and co-defendant Michael C. "Mickey" Woods were convicted following a six-day jury trial in July 2015, which was presided over by Senior United States District Judge Norman A. Mordue. Judge Mordue sentenced Woods to life imprisonment on January 14, 2016.
The evidence at trial proved that Dinelle assisted Woods in running a vast international marijuana operation from Cornwall, Ontario, Canada, which operated from about 2005 until 2008. During the trial in federal court in Syracuse, witnesses testified that Woods procured large quantities of marijuana from his sources in Canada, and with Dinelle, arranged for it to be smuggled across the border into the United States. Couriers selected and supervised by Woods and Dinelle delivered the marijuana to buyers throughout the Eastern United States.
The prosecution of Dinelle, which began with an indictment in November 2008, involved the extradition of 15 people from Canada, including Woods and Dinelle, in one of the largest uses of the extradition treaty between the two countries in a single case.
"Gaetan Dinelle supervised a massive drug trafficking organization and, like his boss, Mickey Woods, was sentenced accordingly," stated U.S. Attorney Richard S. Hartunian. "Our resolve to bring cross-border criminals to justice is reflected in this lengthy and successful case, which is the product of great cooperation between agencies on both sides of the border."
DEA Special Agent in Charge James J. Hunt stated, "Two defendants, Mickey Wood and Gaetan Dinelle, were both sentenced to life imprisonment within a week apart. These sentencings are indicative of the successful law enforcement collaboration entailed with the dismantlement of Mickey Woods’ multi-million dollar marijuana trafficking ring that operated on the Northern Border. I commend our Canadian, federal, state and local counterparts who worked on this investigation."
Between 2006 and February 2008, law enforcement officers seized approximately $2 million dollars in currency representing proceeds of marijuana trafficking and approximately 400 kilograms (nearly 1,000 pounds) of marijuana from couriers working for Woods and Dinelle.
Evidence during the trial included law enforcement estimates that the Woods organization distributed more than 22,000 pounds of high-grade marijuana with gross wholesale receipts of approximately $47 million.
This case was investigated primarily by the Drug Enforcement Administration and Homeland Security Investigations, and was prosecuted by Assistant U.S. Attorney Carl G. Eurenius. The Criminal Division’s Office of International Affairs Acting Associate Director, Lisa Roberts, and former International Affairs Specialist Benjamin Kurland provided significant assistance throughout the extradition stage of the prosecution.
Latham Man Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
ALBANY, NEW YORK – Gnoan Pierre Kablan, age 52, of Latham, New York, pled guilty today to aiding and assisting in the preparation of false tax returns.
The announcement was made by United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office.
As part of his plea, Kablan admitted that he prepared 16 tax returns that contained false information. These returns, which Kablan prepared for clients for the tax years 2008 through 2011, contained false deductions for charitable gifts, false deductions for unreimbursed employee expenses, and false solar property and energy efficiency credits. These false deductions and credits gave his taxpayer clients refunds that they were not entitled to.
Kablan faces up to 3 years in prison, a maximum fine of $100,000, and a maximum term of supervised release of 1 year when he is sentenced on May 23, 2016 by United States District Judge Mae A. D’Agostino. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors. Kablan may also be ordered to pay restitution to the government in the amount of the tax loss that his conduct is found to have caused.
This case was investigated by the New York Field Office of the IRS-Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Jury Convicts Constable Woman of Marijuana ConspiracyRead the Press Release
ALBANY, NEW YORK – A jury on Thursday convicted Stacie Demers, age 53, of Constable, New York, of a drug conspiracy involving 1,000 kilograms or more of marijuana.
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.
Demers faces at least 10 years and up to life in prison, and a term of post-imprisonment supervised release of at least 5 years and up to life, when she is sentenced on May 19, 2016 by United States District Judge Mae A. D’Agostino.
The jury convicted Demers following a three-day trial in Albany. The evidence at trial demonstrated that Demers, who lived on the Canadian border in Northern New York, worked with members of her family and other co-conspirators to smuggle tens of thousands of kilograms of marijuana from Canada and into the United States. After the loads of marijuana crossed the border, Demers stored the marijuana in a shed behind her home and in other places. The marijuana was then picked up by drivers who transported it to street-level marijuana dealers throughout the Eastern United States.
This case was investigated by the Drug Enforcement Administration, New York State Police, and United States Border Patrol, and is being prosecuted by Assistant U.S. Attorneys Katherine E. Kopita and Cyrus P.W. Rieck.
18 Months in Prison for Geneva Man Convicted of PerjuryRead the Press Release
SYRACUSE, NEW YORK – Joseph Jenkins, 46, of Geneva, N.Y., was sentenced today to 18 months in prison in connection with his conviction for perjury, following a jury trial, on April 1, 2015. Jenkins was also ordered to pay a $5,000 fine and a special assessment of $100, and will serve a one year term of supervised release when released from prison.
The perjury conviction stemmed from Jenkins’ appearance in federal court in Syracuse, New York on October 4, 2011, before United States Magistrate Judge Andrew T. Baxter to answer child pornography charges. At his initial appearance, Jenkins completed a financial affidavit under penalty of perjury seeking court-appointed counsel. In the application for assigned counsel, Jenkins failed to disclose his ownership of investment and bank accounts worth over $200,000 and concealed his ownership of boats and recreational vehicles. As a result, Jenkins was appointed an attorney paid for by the Court. Jenkins had an assigned lawyer for nearly a year before prosecutors learned of his false statements about his assets and notified the court. Subsequently, the defendant was found ineligible for assigned counsel and was ordered to reimburse the United States District Court $8,049.12.
With respect to his charges of transportation and possession of over 3,800 images and 100 videos of child pornography, Jenkins was convicted on February 6, 2014, following a jury trial and was sentenced on November 18, 2014, to a term of imprisonment of 225 months, a fine of $40,000, and was ordered to pay $12,000 in restitution to the victims of his crimes. The term of incarceration imposed today on the perjury conviction will run consecutively to his sentence for the child pornography offenses.
This case was investigated by Homeland Security Investigations and was prosecuted by Assistant U.S. Attorney Tamara Thomson.
Medical Reimbursement Systems, Inc. to Pay $500,000 to Resolve Allegations That It Submitted False Claims to Military Health InsurerRead the Press Release
ALBANY, NEW YORK: Medical Reimbursement Systems, Inc., a Massachusetts-based company that provides billing, coding, compliance and revenue cycle services to hospitals and physician practices, will pay $500,000 under the False Claims Act to resolve allegations that it submitted false claims to the TRICARE Program regarding a client’s eligibility to receive bonuses intended for providers who render care in qualifying Health Professional Shortage Areas (“HPSAs”), announced United States Attorney Richard S. Hartunian.
TRICARE is the uniformed health care program for active duty and retired service members, National Guard and Reserve members, family members, survivors and other eligible beneficiaries. HPSAs are geographic areas, population groups, or facilities that lack sufficient health care providers to meet the health care needs of the area or population. The federal government has implemented various reimbursement policies designed to encourage providers to treat beneficiaries in these underserved areas. Physicians who provide covered services in areas designated as geographic HPSAs are entitled to receive 10-percent bonus payments above the amount ordinarily reimbursed for Medicare-covered professional services. These “HPSA bonuses” are also available to providers who treat TRICARE beneficiaries in geographic areas that qualify for the bonus from Medicare. To obtain HPSA bonuses from TRICARE, billers must certify to the government that services were rendered in a qualifying HPSA.
In May 2009, Medical Reimbursement Systems, Inc. (“the Company”) entered into a billing services agreement with a physician group (“the Practice”) in Watertown, New York. Under that agreement, the Company agreed to provide coding, billing, physician education, and data entry services for the Practice. In exchange, the Company was paid a percentage of its net collections from the Practice.
Shortly after the Company and the Practice entered into that agreement, they began discussions about the Practice’s eligibility to receive HPSA bonuses from TRICARE. Despite the Company being informed that the Practice was not in a qualifying HPSA and therefore not entitled to the bonuses, the Company, at the Practice’s request, continued to certify to TRICARE that services were rendered in a qualifying HPSA. Significantly, according to the settlement agreement, a Company employee wrote the Company’s vice-president in 2009 to explain that they were billing TRICARE as if the Practice was in a “geographical area and they should not be.” The following week, that same employee reiterated that the Practice does not qualify for the HPSA bonus, and warned the Company’s vice president: “We need to stop billing this before we get in trouble.” The Company continued to bill TRICARE for HPSA bonuses on the Practice’s behalf through October 2014.
The Company, which accepted responsibility for the facts set forth in the settlement agreement, acknowledged that it was inappropriate under the circumstances for it to have sought HPSA bonuses from TRICARE for the Practice. It also agreed to hire an outside consultant to conduct TRICARE-specific billing training for its staff, and to appoint a new compliance officer with appropriate training or certification who will report directly to the Chief Executive Officer and whose responsibilities will include ensuring compliance with the statutes, regulations, and guidelines applicable to federal healthcare programs.
United States Attorney Hartunian said: “Healthcare providers rely on billing companies to assist them in processing claims in accordance with applicable statutes and regulations. While Medical Reimbursement Systems, Inc. should not have submitted claims for HPSA bonuses on its client’s behalf in these circumstances, I commend the Company and its management for accepting responsibility for this issue and for agreeing to implement forward-looking compliance measures to assure adequate systems are in place to facilitate and promote ethical and legal conduct.”
“This civil settlement demonstrates the continued commitment of the Defense Criminal Investigative Service (DCIS), partnering with the Defense Health Agency (DHA) and the United States Attorney’s Office for the Northern District of New York, to protect military members and their families and every other American taxpayer from those who seek to exploit our nation’s healthcare programs, including TRICARE,” said Craig W. Rupert, Special Agent in Charge, DCIS Northeast Field Office, United States Department of Defense Office of the Inspector General. “A company’s organized false and inappropriate billing, either through fraudulent schemes or willful ignorance, steals away hard-earned tax dollars, erodes public confidence, and undermines the mission of our military. We will continue to tirelessly pursue and investigate healthcare fraud allegations in order to shield America’s investment in national defense.”
Today’s settlement marks the fourteenth matter that this office, working in partnership with DCIS and DHA, has resolved since July 2015 involving improper claims for HPSA bonuses from TRICARE. Combined, these cases have returned $2,947,322.41 to TRICARE to continue to provide health care to members of our Nation’s armed services and their families. The United States was represented in each of these cases by Assistant United States Attorney Adam J. Katz.
U.S. Attorney’s Office Collects More Than $32 Million in Civil and Criminal Penalties in Fiscal Year 2015Read the Press Release
ALBANY, NEW YORK – Albany, NY - U.S. Attorney Richard S. Hartunian announced today that the U.S. Attorney’s Office for the Northern District of New York collected more than $32 million in civil and criminal penalties in fiscal year 20151. Of this amount, $4,792,446 was collected from criminal prosecutions; $8,057,372 was collected via the forfeiture of money and other assets that represented the proceeds of criminal conduct or property used to commit such conduct; $19,210,739 was collected in civil cases; and an additional $508,916 was collected in civil cases worked in conjunction with other U.S. Attorney’s Offices and agencies in the Department of Justice.
1 The federal fiscal year runs from October 1st to September 30th.
Nationally, U.S. Attorney General Loretta E. Lynch announced that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015 – more than seven and a half times the appropriated $2.93 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse," said Attorney General Loretta Lynch. "The collections we are announcing . . . demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work."
United States Attorney Richard S. Hartunian said, "Recovering ill-gotten gains from wrongdoers is an important part of our work to protect the public and secure justice for all. Such recoveries remove the incentive for improper conduct and fund restitution for victims and other important programs. These collections results demonstrate the value of using all available remedies to address violations of law fairly."
Notable cases in which funds were recovered by the U.S. Attorney’s Office during fiscal year 2015 include the following:
Allegations of fraud perpetrated against Disadvantaged Business Enterprise program:
HD Supply Waterworks, the Nation’s largest supplier of water, sewer, fire protection and storm drain products, paid the United States $4,945,000 under the False Claims Act to resolve allegations that it participated in a scheme designed to take advantage of the Disadvantaged Business Enterprise (DBE) program in order to obtain subcontracts on federally-funded projects. The DBE program provides opportunities for businesses owned by socially and economically disadvantaged individuals to perform work on projects financed, at least in part, by the federal government. The settlement resolved allegations that Waterworks enabled various prime contractors to represent falsely that a now-defunct DBE, American Indian Builders & Suppliers, had performed commercially useful functions on federally-funded projects when, in reality, the prime contractors worked directly with Waterworks and used the DBE as a pass through.
Hospital and physician combine to pay to resolve billing improprieties self-disclosed by the hospital:
Oswego Hospital, a 164-bed acute care community hospital located in Oswego, New York, agreed to pay $1,456,457.33 to resolve False Claims Act liability stemming from healthcare billing improprieties that the hospital self-disclosed to the federal government. Dr. Vilas Patil, a physician formerly working as an independent contractor with Oswego Hospital, agreed to pay $204,365.97 to resolve False Claims Act liability in connection with a related investigation. The combined recovery to the state and federal governments was $1,660,823.30. The improprieties centered on billings that were unsupported by valid medical records and "repeat notes." These were instances where a patient’s chart would cover multiple days of inpatient services but the same treatment note was used for each day. The medical records therefore failed to support that any distinct services were rendered (making it improper to bill) and were of little to no use to the patients or subsequent providers trying to learn the patient’s mental health history.
Securities fraud conviction nets large restitution recovery:
On May 16, 2001, Paul Ryan was sentenced to be imprisoned for 37 months and to pay restitution in the amount of $2,881,662.90 to Albany Savings Bank (known as First Albany) in connection with his securities fraud conviction. After his release from prison, Ryan became employed by Integra Networks, Inc., and arranged for compensation in the form of company stock transferred to a Trust he established. Upon learning of the stock, the United States initiated an investigation into whether the transfers were improper. Prior to instituting an action, the United States was informed that Mr. Ryan wished to avoid further litigation and was willing to arrange the transfer of Integra stock to First Albany in order to satisfy the remaining balance of his restitution obligation. After successfully negotiating an in-kind stock transfer to the victim, stock valued at $2,634,035.71 was issued to First Albany, resulting in full satisfaction of the court-ordered restitution.
Government Forfeitures involving synthetic marijuana distributors:
The United States forfeited $1,707,988.11 from synthetic marijuana distributors, Eagle Eye Products, Inc., & Canyon Novelty Sales, Inc. et al., based in California but having shipped synthetic marijuana to the Northern District of New York for distribution and sale at various head shops throughout Central New York. An additional $39,652.39 was seized and forfeited from the owner of Zonen LTD, a head shop based in the Northern District of New York which purchased and sold synthetic marijuana products, such as "bizarro" and "spice." The United States also forfeited $103,253.22 in U.S. Currency and a 2010 Chevrolet Express Cargo Van from members of the Mansour synthetic marijuana distribution conspiracy, involving the sale of packets of synthetic marijuana at various locations throughout the City of Syracuse, including corner shops.
All U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the U.S. Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration, and the U.S. Department of Education.
Jury Convicts Syracuse Man in Heroin and Crack Cocaine ConspiracyRead the Press Release
SYRACUSE, NEW YORK – A federal jury today convicted Derrick Wilson, a/k/a D-Ellis and Sonny Black, age 36, of Syracuse, of participating in a heroin and crack cocaine conspiracy, following a week-long trial.
The announcement was made by United States Attorney Richard S. Hartunian, Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration (“DEA”) and Syracuse Police Chief Frank L. Fowler.
“This verdict is the culmination of a long investigation into the conduct of people who poisoned our community and destroyed lives by pushing large quantities of heroin and crack cocaine,” stated United States Attorney Richard S. Hartunian. “Thanks to law enforcement collaboration, the leader and all twelve other charged defendants have been convicted, and this drug crew has been dismantled. We are committed to continuing to work together to take drug dealers off the streets of Syracuse and beyond.”
DEA Special Agent in Charge James J. Hunt stated, “Heroin and crack cocaine trafficking is a scourge throughout American cities, large and small. No city is immune from drug addiction as long as there are drug suppliers profiting off the sale of poison. Today's conviction of Derrick Wilson has sent a message to drug traffickers that their illegal profit off drug sales will only lead them to jail and long prison sentences. I commend the U.S. Attorney’s Office Northern District, the Syracuse Police Department and the DEA’s Syracuse Resident Office for their diligent efforts throughout this investigation, prosecution and conviction.”
Syracuse Police Chief Frank L. Fowler stated, “Our department is pleased with the outcome of this federal prosecution. Our joint efforts will make Syracuse safer and we intend to continue these efforts against those that deal or traffic in drugs in our communities. We look forward to continuing our joint efforts in the coming year.”
Wilson faces at least 20 years and up to life in prison when he is sentenced on May 20, 2016 by Chief United States District Judge Glenn T. Suddaby. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors.
The evidence at trial, some of which was obtained through court-ordered wiretaps, showed that: Wilson was the head of a conspiracy to distribute large quantities of crack cocaine and heroin in the Syracuse area from April 2013 through June 18, 2014, when arrests were made; Wilson made arrangements for heroin and cocaine powder from New York City to be delivered to him in Syracuse; Wilson had the cocaine powder processed into crack cocaine and packaged for sale; Wilson had the heroin packaged in distinctly marked plastic bags for “branding” purposes and distribution; and Wilson had members of the conspiracy sell the crack cocaine and heroin.
Wilson represented himself during the trial, with an assigned attorney present to advise him on legal matters. He was the last of thirteen defendants to be convicted of participating in this conspiracy to distribute heroin and crack cocaine. Wilson’s twelve co-defendants all pled guilty and six of them have been sentenced, while six are scheduled to be sentenced in February and March, as follows:
Name
Age
Residence
Sentence
Jeffrey Dowdell
37
Syracuse, NY
Scheduled for 2/25/2016
Tashawn Albert
28
Syracuse, NY
Scheduled for 2/26/2016
Kyle Dowdell
28
Syracuse, NY
Scheduled for 2/12/2016
Quonta Albert
23
Syracuse, NY
60 months
General Davis, Jr.
29
Clay, NY
130 months
Willie Strong, Jr.
37
Liverpool, NY
120 months
Jamall Harris
36
Syracuse, NY
Scheduled for 3/4/2016
James Handford
38
Syracuse, NY
120 months
Zephaneea Dowdell
33
Syracuse, NY
Scheduled for 3/1/2016
Lashandrea Johnson
31
Syracuse, NY
13 months
James Hudson
25
Syracuse, NY
60 months
Darnyl Apgar
28
Syracuse, NY
Scheduled for 2/29/2016
This case was investigated by the United States Drug Enforcement Administration (“DEA”) and the Syracuse Police Department, with assistance from the Federal Bureau of Investigation (“FBI”), and is being prosecuted by Assistant U.S. Attorneys Carla Freedman and Nicolas Commandeur.
Jury Convicts Schenectady Man on Crack and Gun ChargesRead the Press Release
ALBANY, NEW YORK – A federal jury today convicted Steven Ray Morgan, age 48, of Schenectady, New York, of five felony charges including conspiracy to distribute crack cocaine and possession of a firearm by a felon.
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.
The jury convicted Morgan of four counts relating to crack cocaine and one count of possession of a firearm by a felon. The jury acquitted Morgan on a sixth charge, of possessing a firearm in furtherance of a drug trafficking offense.
Morgan faces at least 10 years and up to life in prison, as well as at least 8 years of post-imprisonment supervised release, when he is sentenced on May 18, 2016 by Senior United States District Judge Thomas J. McAvoy. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors.
The jury convicted Morgan following a four-day trial. The evidence at trial demonstrated that Morgan worked with others to distribute crack cocaine in and around Schenectady, that he and others stored drugs in a Schenectady stash house for purposes of distribution, and that the amount of crack cocaine involved was 28 grams or more. The evidence also demonstrated that Morgan illegally possessed a loaded 9 mm handgun that was stored with the drugs.
A prior jury trial in 2009 resulted in convictions on all six charges. However, in 2015, the United States Court of Appeals for the Second Circuit reversed those convictions and remanded the case for a new trial.
This case was investigated by the Drug Enforcement Administration, and was prosecuted on retrial by Assistant United States Attorney Sean O’Dowd.Guatemalan Deported Four Times Pleads Guilty to Illegal Re-EntryRead the Press Release
ALBANY, NEW YORK – William Heriberto Reyes-Morales, age 42, of Guatemala, pled guilty on Friday to illegally re-entering the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Michael T. Phillips, Buffalo Field Office Director of Enforcement & Removal Operations for U.S. Immigration and Customs Enforcement (ICE).
Reyes-Morales pled guilty to violating the Immigration and Nationality Act (INA), which prohibits previously removed aliens from being found in the United States without permission.
ICE officers first encountered Reyes-Morales in the Montgomery County Jail on July 8, 2015. A check of Reyes-Morales’s fingerprints indicated that he had been deported and removed from the United States to Guatemala a total of four times, the most recent removal being on July 19, 2012.
Reyes-Morales faces up to 20 years in prison and a maximum $250,000 fine when he is sentenced on May 11, 2016 by Senior United States District Judge Thomas J. McAvoy. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors. Following his term of imprisonment, Reyes-Morales will be processed for removal from the United States.
This case was investigated by U.S. Immigration and Customs Enforcement and is being prosecuted by Edward P. Grogan.
Binghamton Man Pleads Guilty to Sex Trafficking and Prostitution of A ChildRead the Press Release
BINGHAMTON, NEW YORK – Alphonso Dennis, age 34, of Binghamton, New York, pleaded guilty on Friday to 4 counts of sex trafficking of a child and 2 counts of prostitution of a child.
The announcement was made by United States Attorney Richard S. Hartunian, Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation, and New York State Police Superintendent Joseph A. D’Amico.
Sentencing is scheduled for May 27, 2016 before Senior United States District Judge Thomas J. McAvoy. Dennis faces a minimum term of 10 years and up to life in prison, as well as a minimum period of supervised release – to be served following his release from prison – of 5 years and up to life. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors. Upon release, Dennis will also have to register as a sex offender.
From about August 2014 to November 2014, in Broome County, Dennis hosted two minors at his apartment, who met with men in that apartment for the purpose of engaging in sex acts for money. Dennis also transported and caused the minors to be transported to various locations in order to meet with men, all for the purpose of having the minors engage in commercial sex acts. Throughout this time period, the minors were 15 years old and 14 years old, respectively, and Dennis knew that they were minors.
Using a cell phone and while in his apartment, Dennis took photos and caused photos to be taken of the minors in sexually provocative poses when they were barely dressed, and then used those photographs in advertisements placed on an Internet advertising site.
As men called the phone number listed in the advertisements, Dennis arranged for the men to meet with the minors. Dennis told the minors how much money to charge the men and required that the minors surrender to him 50% of the money that they received from the men.
The prosecution stems from an investigation into a child prostitution ring conducted by the Federal Bureau of Investigation, the New York State Police, and the Vestal Police Department.
The case is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Schoharie Man Admits to Defrauding FEMARead the Press Release
LBANY, NEW YORK – Scott A. Clapper, Jr., age 31, of Schoharie, pleaded guilty today to 13 felony counts of making false statements and submitting false documents in connection with government benefits he received following Hurricane Irene.
The announcement was made by United States Attorney Richard S. Hartunian and Edward Nasiatka, Special Agent in Charge of the Department of Homeland Security’s Office of Inspector General, New York Field Office.
Clapper made false statements and submitted false documents to the Federal Emergency Management Agency (FEMA) following Hurricane Irene, which struck New York in August 2011 and made uninhabitable the Schoharie County home in which Clapper was living at the time.
Clapper told FEMA that his monthly rent at his new home, in Westerlo, was $1,200, when it was really $500. In an effort to document the $1,200 monthly rent, Clapper also submitted to FEMA fake lease agreements and rent receipts containing the forged signature of his landlord. Clapper received $16,426 from FEMA as a result of these falsehoods.
Clapper faces a maximum imprisonment term of 30 years and a maximum fine of $250,000 when he is sentenced on May 9, 2016 by Senior United States District Judge Thomas J. McAvoy. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the New York Field Office of the Department of Homeland Security’s Office of Inspector General, and is being prosecuted by Assistant United States Attorney Michael Barnett.
Canadian Marijuana Trafficker Receives Life ImprisonmentRead the Press Release
SYRACUSE, NEW YORK – Michael C. “Mickey” Woods, age 45, of Cornwall, Ontario, was sentenced today to life imprisonment for running a drug trafficking organization that made more than $10 million in profits in a single year.
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.
Woods and co-defendant Gaetan Dinelle were convicted following a six-day jury trial in July 2015, which was presided over by Senior United States District Judge Norman A. Mordue. Judge Mordue is scheduled to sentence Dinelle on January 21.
The evidence at trial proved that Woods, assisted by Dinelle, ran a vast international marijuana operation from Cornwall, Ontario, Canada, which operated from about 2005 until 2008. During the trial in federal court in Syracuse, witnesses testified that Woods procured large quantities of marijuana from his sources in Canada, and with Dinelle, arranged for it to be smuggled across the border into the United States. Couriers selected and supervised by Woods and Dinelle delivered the marijuana to buyers throughout the Eastern United States.
The prosecution of Woods, which began with an indictment in November 2008, involved the extradition of 15 people from Canada, including Woods and Dinelle, in one of the largest uses of the extradition treaty between the two countries in a single case.
“Because of the excellent and sustained cooperation among U.S. and Canadian authorities, Mickey Woods received a sentence befitting the vast drug trafficking organization that he ran,” stated U.S. Attorney Richard S. Hartunian. “This case shows how committed we are to bringing cross-border criminals to justice.”
Between 2006 and February 2008, law enforcement officers seized approximately $2 million dollars in currency representing proceeds of marijuana trafficking and approximately 400 kilograms (nearly 1,000 pounds) of marijuana from couriers working for Woods and Dinelle. Evidence during the trial included law enforcement estimates that the Woods organization distributed more than 22,000 pounds of high-grade marijuana with gross wholesale receipts of $47.3 million.
This case was investigated by the U.S. Drug Enforcement Administration and was prosecuted by Assistant U.S. Attorney Carl G. Eurenius. The Criminal Division’s Office of International Affairs Acting Associate Director, Lisa Roberts, and former International Affairs Specialist Benjamin Kurland provided significant assistance throughout the extradition stage of the prosecution.
Schenectady Couple Indicted for Mail FraudRead the Press Release
ALBANY, NEW YORK – Jeragh Powell, age 25, and Kimberly Powell, age 37, both of Schenectady, New York, were arraigned today on an indictment charging them with mail fraud in connection with a lottery scheme that targeted elderly victims.
The announcement was made by United States Attorney Richard S. Hartunian and Shelly A. Binkowski, Inspector in Charge, United States Postal Inspection Service, Boston Division.
The indictment alleges that the Powells mailed documents that falsely informed elderly victims that they had won lottery prizes and were required to pay fees and taxes in order to claim their prizes. Members of the conspiracy also called elderly victims with instructions on mailing the payments for sham taxes and fees. Elderly victims sent tens of thousands of dollars to the defendants and their co-conspirators, and the defendants then sent a portion of the payments they received to co-conspirators in Jamaica, Jeragh Powell’s country of citizenship.
The Powells were indicted on January 6, 2016. They face up to 20 years of imprisonment and a $250,000 fine, if convicted. They were arraigned today before Magistrate Judge Christian F. Hummel and detained pending their satisfaction of a Court-ordered bond. Their trial is scheduled to take place before District Judge Mae A. D’Agostino.
The charges in the indictment are merely accusations. The defendants are presumed innocent until proven guilty.
This case is being investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
West Point Cadet Sentenced to More Than Eight Years in Prison for Distributing, Receiving, and Possessing Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that RICKY PATRICK HESTER was sentenced to 97 months’ in prison by United States District Judge Vincent L. Briccetti for receipt, distribution, and possession of child pornography. The sentencing today followed HESTER’s conviction on June 23, 2015, following a jury trial before Judge Briccetti.
U.S. Attorney Preet Bharara said: “Ricky Patrick Hester collected, shared, and distributed appalling depictions of children being sexually abused. This case reinforces the need for law enforcement to remain vigilant in its efforts to protect children from those who prey on them.”
According to the Indictment and the evidence at trial:
From at least as early as November 2012, HESTER used a Yahoo! email account, a file-sharing account on Dropbox.com, as well as his personal cellphone, to collect and share images of children being forced into sexual activity.
On December 18, 2013, HESTER was interviewed by agents with Homeland Security Investigations (“HSI”) and he admitted that he had used his Yahoo! email account to send child pornography, that his preference was for boys as young as four years old, that he had used Dropbox to trade child pornography with others, and that he stored child pornography on his cellphone.
HESTER’s cellphone, which was seized by HSI on December 18, 2013, during a search warrant of HESTER’s dorm room at West Point, contained approximately 1,200 images and videos of children engaging in sexual activity.
Evidence at trial included approximately 100 emails sent or received by HESTER. In many of these emails, HESTER requested videos and images of “kids being forced to do stuff,” “boys being tied up and peed on,” and “man boy hardcore.” In numerous emails, he indicated a preference for boys aged four to 10 years old.
HESTER entered the United States Military Academy at West Point as a cadet in August 2009. He took a sabbatical from West Point from August 2011 through August 2012. He returned to West Point in the fall of 2012. At the time of his arrest, on December 19, 2013, HESTER was one semester away from graduation.
HESTER, 25, lived in Granger, Indiana, from his arrest until his conviction. Judge Briccetti remanded him following his conviction. In sentencing HESTER, Judge Briccetti underscored that the “evidence of guilt was overwhelming,” and that the images that HESTER possessed and traded depicted “the torture of children.”
Mr. Bharara praised the outstanding investigative work of the Department of Homeland Security. He also thanked the Army Criminal Investigation Command for their assistance with the investigation.
This prosecution is being handled by the White Plains Division. Assistant United States Attorneys Lauren Schorr and Marcia S. Cohen are in charge of the prosecution.
New Jersey Man Indicted for Wire FraudRead the Press Release
ALBANY, NEW YORK - Michael Pampalone, age 32, of Elizabeth, New Jersey, was arraigned yesterday on an indictment charging him with two counts of wire fraud for stealing $132,450 from an East Greenbush, New York man.
The announcement was made by United States Attorney Richard S. Hartunian, New York State Police Superintendent Joseph A. D’Amico, and Shelly A. Binkowski, Inspector in Charge, United States Postal Inspection Service, Boston Division.
The indictment alleges that Pampalone, a former mortgage broker, stole $132,450 from an East Greenbush man who hired Pampalone to help him obtain a mortgage. According to the indictment, Pampalone instructed the victim to wire funds to a New Jersey bank account, and then, after the wires were completed, stole the money.
Pampalone faces up to 20 years of imprisonment and a $250,000 fine, if convicted. Pampalone, who was indicted on December 23, 2015, was arraigned on January 4, 2016 before Magistrate Judge Daniel J. Stewart. He was released on a bond pending a trial scheduled for March 7, 2016 before District Judge Mae A. D’Agostino.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by the New York State Police and the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Wayne A. Myers.
Jury Convicts Schenectady Man of Heroin ConspiracyRead the Press Release
ALBANY, NEW YORK – A jury on Friday convicted Raymond P. Baker, age 36, of Schenectady, New York, of conspiring to distribute and possess with intent to distribute heroin, announced United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration.
Baker faces at least 10 years and up to life in prison, and a term of post-imprisonment supervised release of at least 8 years and up to life, when he is sentenced on May 9, 2016 by Senior United States District Judge Thomas J. McAvoy.
The jury convicted Baker following a four-day trial. The evidence at trial demonstrated that Baker worked with another person to sell heroin in Latham and Albany, and that the amount of heroin involved in the conspiracy was 100 grams or more.
This case was investigated by the Drug Enforcement Administration. It was prosecuted at trial by Assistant U.S. Attorney Michael Barnett, and was prosecuted to indictment by Assistant U.S. Attorneys Wayne A. Myers and Elizabeth R. Rabe.
Jury Convicts Utica Woman of Marriage FraudRead the Press Release
SYRACUSE, NEW YORK – Yesterday, a federal court jury convicted Zubeda Kalume, 42, of Utica, of entering into a fraudulent marriage for the purpose of allowing a Gambian man to unlawfully remain in the United States, announced United States Attorney Richard S. Hartunian and Brian Devine, Resident Agent in Charge, Homeland Security Investigations, Syracuse Office. Kalume is a naturalized U.S. citizen originally from the Congo. The jury reached its verdict following a four day trial.
United States Attorney Richard S. Hartunian said: "United States citizenship is not for sale. People who commit marriage fraud damage the integrity of our immigration system. We are committed to enforcing these laws to ensure that those who abuse the process do not cause harm or jeopardize the opportunities for lawful immigration."
"Marriage fraud is a federal crime and unfortunately one that is all too common," said Brian Devine, resident agent in charge for Homeland Security Investigations in Syracuse. "Schemes like this not only damage the integrity of America’s legal immigration system, but they could also be exploited by individuals who pose a significant risk to our nation's security. We applaud the U.S. Attorney's office for pursuing these violations vigorously and thank our federal partners at the U.S. Department of Agriculture for their instrumental efforts throughout the course of this investigation."
The evidence at trial that established Kalume and Alieu Jaiteh, 32, a citizen of The Gambia, were married in Dewitt, New York in October 2009. Jaiteh, who had entered the country on an F-1 student visa, violated its terms and was in the United States illegally at the time of the marriage. Kalume agreed to marry Jaiteh for $10,000 and later assisted him in getting temporary legal immigration status. Jaiteh, who resides in Syracuse, was himself convicted for conspiring from 2009 to 2012 to commit more than $1.7 million in federal food stamp fraud and was sentenced to 18 months in prison in April 2015.
Zubeda Kalume faces a maximum of 5 years in prison, a 3 year term of supervised release, and a fine of up to $250,000 for her conviction for marriage fraud. Chief United States District Judge Glenn T. Suddaby has scheduled her sentencing for April 28, 2016 in Syracuse.
These convictions are the culmination of a joint investigation conducted by Special Agents from Homeland Security Investigations (HSI) and the U.S. Department of Agriculture’s Office of the Inspector General and the investigative component of U.S. Immigration and Customs Enforcement, and prosecuted by the U.S. Attorney’s Office for the Northern District of New York in Syracuse. Substantial assistance was also provided throughout the investigation by the Onondaga County Department of Social Services’ Welfare Fraud Unit, Oneida County Social Services, and the New York State Police. The case was prosecuted by Assistant U. S. Attorney Geoffrey Brown.
Upstate New York Man Sentenced for Providing Material Support to TerroristsRead the Press Release
ALBANY, NEW YORK - Eric J. Feight, 55, of Hudson, New York, was sentenced yesterday to serve 97 months in prison followed by a term of 3 years of supervised release, announced United States Attorney Richard S. Hartunian of the Northern District of New York, Assistant Attorney General for National Security John P. Carlin, and Special Agent in Charge Andrew W. Vale of the FBI’s Albany, New York Division. The sentence imposed today follows Feight’s January 22, 2014 plea of guilty to Providing Material Support to Terrorists, in violation of Title 18, United States Code, Section 2339A(a), during which he admitted to helping Glendon Scott Crawford modify an industrial-grade radiation device intended to be used to kill Muslims in the Albany, New York area. Feight admitted he had assisted Crawford by designing and building a remote initiation unit to allow the radiation device to be activated from a distance1. Both men were arrested following an extensive federal investigation. Crawford, a self-proclaimed Ku Klux Klan ("KKK") member, sought financial support for his plot from the KKK, and he and Feight later met with individuals they believed to be KKK financiers to advance their scheme to kill innocent human targets. Those individuals were FBI Agents posing as businessmen connected to the KKK who were willing to support the scheme.
United States Attorney Richard S. Hartunian said: "This sentence highlights both the dangers we face when hatred and bigotry beget domestic terrorism and violent extremism, and our commitment to holding those who commit such crimes accountable. No American – of any background – should have to live in fear of this kind of attack. This case illustrates the importance of vigilance by community members and an immediate, comprehensive investigation by our Albany FBI Joint Terrorism Task Force, which thwarted the diabolical plan Feight supported. We must continue to counter messages of hate by empowering communities and emphasizing the inclusion on which our nation was founded – with local, state, and federal law enforcement ready to stop any who refuse to heed that call."
"Eric Feight aided Glendon Scott Crawford in altering a dispersal device to target unsuspecting Muslim Americans with lethal doses of radiation," said Assistant Attorney General Carlin. "Feight and Crawford’s abominable plot to harm innocent Americans was thwarted thanks to the tireless efforts of law enforcement. The National Security Division’s highest priority continues
to be combatting terrorism, and we remain ready to identify, disrupt and prevent terrorist threats, both domestically and internationally," said Assistant Attorney General Carlin.
"This sentencing is the result of the incredible efforts of our Joint Terrorism Task Force and the U.S. Attorney’s Office," said Special Agent in Charge Andrew W. Vale. "While we enjoy today’s success, it is important that we continue to gain the strongest possible understanding to allow us to better assess the terrorism threat and identify those who would go beyond hateful rhetoric and extremist views to commit violent, criminal acts."
This case resulted from a long term investigation conducted by the Albany FBI Joint Terrorism Task Force, which includes the Department of Homeland Security, New York State Police, Albany Police Department, Troy Police Department, and New York City Police Department. The United States Attorney’s Office also appreciates the assistance of the Criminal Division and National Security Division of the United States Department of Justice. The case is being prosecuted by Assistant United States Attorneys Stephen C. Green and Richard Belliss, and Counterterrorism Section Trial Attorney Joseph Kaster.
1 Glendon Scott Crawford was convicted after trial in federal court on August 21, 2015 of Conspiracy to Use a Weapon of Mass Destruction and two additional terrorism offenses. Crawford is scheduled to be sentenced on March 16, 2016 in Albany, New York and faces a maximum sentence of life imprisonment.
Questions or inquiries may be directed to Assistant United States Attorney Richard R. Southwick at 315-448-0672.
Schenectady Man Pleads Guilty to Selling Crack CocaineRead the Press Release
ALBANY, NEW YORK – Robert "Poobar" Daniels, age 42, of Schenectady, New York, pled guilty today to distributing crack cocaine, 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 guilty plea included Daniels’ admission that he sold crack cocaine directly and oversaw the distribution of crack cocaine by another individual. At sentencing on April 15, 2016 in Albany, New York, Daniels faces a maximum term of imprisonment of 20 years, a fine of $1,00,000, and a term of supervised release of up to life.
The case was investigated by the Federal Bureau of Investigation, the New York State Police, and the Schenectady Police Department, in connection with the Capital District Safe Streets Gang Task Force. The case is being prosecuted by Assistant United States Attorney Wayne A. Myers.
Howells and Vaisey Sentenced for Child ExploitationRead the Press Release
SYRACUSE, NEW YORK – Stephen M. Howells, II, 40 of Hermon, New York, was sentenced today to serve 580 years in prison in connection with his sexual exploitation of six children, including two St. Lawrence County girls he abducted with his girlfriend, Nicole F. Vaisey, 26, also of Hermon, from a roadside vegetable stand on August 13, 2014, announced United States Attorney Richard S. Hartunian, Special Agent in Charge Andrew W. Vale of the FBI’s Albany Division, and St. Lawrence County Sheriff Kevin Wells. Vaisey was also sentenced today to serve 300 years in prison for her role in the offenses, including her participation in the sexual exploitation of four of the children. The Court also ordered the forfeiture of property used by the defendants in the commission of these crimes, consisting of two cars, a computer and five hard drives, a camera, and two iPhones.
On May 8th, Howells pled guilty to all twenty-one federal charges: conspiracy to sexually exploit minors, fifteen counts of sexual exploitation of children, involving six victims, and five counts of possession of child pornography. On May 14th, Vaisey also pled guilty to conspiracy to sexually exploit minors, as well as nine counts of sexual exploitation of children, involving four victims.
From September of 2013 through August 15, 2014, Howells and Vaisey conspired to sexually exploit children for the purpose of producing videos and pictures of such conduct. Howells used his position as a registered nurse to obtain drugs to administer to the six children to sedate them. On at least sixteen dates specified in the indictment, Howells sexually abused six young girls, ages 5 – 11, sometimes with Vaisey also doing so, as Howells or Vaisey filmed that abuse. Howells and Vaisey made arrangements with close friends and family to spend time with four of the children, and then betrayed their trust. Howells and Vaisey also developed, planned, and carried out a scheme to abduct children to sexually abuse them. On August 13, 2014, they kidnapped two Amish children from their family’s roadside farm stand by pretending to be customers. Howells forced the children into the car and Vaisey drove off. The two children were restrained as captives in Howells’ and Vaisey’s home until they were released in a remote location the next night. An ongoing manhunt and investigation resulted in the arrests of Howells and Vaisey and searches that helped uncover the other child sexual abuse by them.
United States Attorney Richard S. Hartunian said: "The sentences imposed today are a reflection of the monstrous crimes committed by Stephen M. Howells, II and Nicole F. Vaisey against the most vulnerable among us – our children. Howells and Vaisey will never be able to abduct, drug, and sexually abuse children again. Our hearts go out to the six children victimized by
Howells and Vaisey, and to all children who are subject to sexual exploitation. It is our hope that these severe sentences will deter others from engaging in such depraved conduct. Our commitment to promoting prevention, protecting children, and combatting child sexual abuse is complete and unwavering."
"Today’s sentencing is a culmination of an investigation into the unspeakable crimes committed against innocent victims within St. Lawrence County. The St. Lawrence County Sheriff’s Office has worked towards this conclusion in a cooperative investigative effort with our Federal, State and Local partners. This collaborative effort to bring these two to justice and stand responsible for their actions shows how well law enforcement can work together for the victims and citizens that we serve. The Sheriff’s Office appreciates the public support that has been demonstrated for the victims and the law enforcement agencies that were involved," said St. Lawrence County Sheriff Kevin Wells.
"The unspeakable acts against innocent children committed by Stephen Howells and Nicole Vaisey represent some of the most heinous and evil crimes ever committed in Troop B. It was through the collective efforts of all law enforcement agencies working tirelessly that these two depraved individuals will be brought to justice and will never pose a threat to our children and our communities again," said New York State Police Major Charles Guess, Troop B Commander.
"Stephen Howells and Nicole Vaisey represent the horrifying reality of the danger our families and children face; they are predators that plotted and schemed to harm those that are most precious to us," said Special Agent in Charge Andrew W. Vale. "It is our sworn duty to protect our community’s children, and the unfathomable suffering of Howells and Vaisey’s victims and their family is our daily reminder of that duty. Today’s sentencings are the culmination of tremendous efforts made by the FBI, the United States Attorney’s Office, the St. Lawrence County Sheriff’s Office, and the New York State Police."
This case was investigated by FBI, the St. Lawrence County Sheriff’s Office and the New York State Police, and was prosecuted by Assistant U.S. Attorneys Lisa M. Fletcher, Tamara Thomson, and Steven D. Clymer.
Upstate New York Man Sentenced to over Eight Years in Prison for Providing Material Support to TerroristsRead the Press Release
Conspired to Modify Lethal Radiation Device to be Used to Kill Muslims in New York State
Eric J. Feight, 55, of Hudson, New York, was sentenced today to serve 97 months in prison for providing material support to terrorists.
The sentence was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Richard S. Hartunian of the Northern District of New York and Special Agent in Charge Andrew W. Vale of the FBI’s Albany, New York, Division.
Feight pleaded guilty on Jan. 22, 2014, and admitted to helping Glendon Scott Crawford modify an industrial-grade radiation device intended to be used to kill Muslims in the Albany area. Feight also admitted he assisted Crawford by designing and building a remote initiation unit to allow the radiation device to be activated from a distance. Both men were arrested following an extensive federal investigation. Crawford, a self-proclaimed Ku Klux Klan (KKK) member, sought financial support for his plot from the KKK, and he and Feight later met with individuals they believed to be KKK financiers to advance their scheme to kill innocent Americans. Those individuals were actually FBI agents posing as businessmen connected to the KKK who were willing to support the scheme.
“Eric Feight aided Glendon Scott Crawford in altering a dispersal device to target unsuspecting Muslim Americans with lethal doses of radiation,” said Assistant Attorney General Carlin. “Feight and Crawford’s abominable plot to harm innocent Americans was thwarted thanks to the tireless efforts of law enforcement. The National Security Division’s highest priority continues to be combatting terrorism, and we remain ready to identify, disrupt and prevent terrorist threats, both domestically and internationally.”
“The sentence today highlights both the dangers we face when hatred and bigotry beget domestic terrorism and violent extremism, and our commitment to holding those who commit such crimes accountable,” said U.S. Attorney Hartunian. “No American – of any background – should have to live in fear of this kind of attack. This case illustrates the importance of vigilance by community members and an immediate, comprehensive investigation by our Albany FBI Joint Terrorism Task Force, which thwarted the diabolical plan Feight supported. We must continue to counter messages of hate by empowering communities and emphasizing the inclusion on which our nation was founded – with local, state and federal law enforcement ready to stop any who refuse to heed that call.”
“Today’s sentencing is the result of the incredible efforts of our Joint Terrorism Task Force and the U.S. Attorney’s Office,” said Special Agent in Charge Vale. “While we enjoy today’s success, it is important that we continue to gain the strongest possible understanding to allow us to better assess the terrorism threat and identify those who would go beyond hateful rhetoric and extremist views to commit violent, criminal acts.”
This case was investigated by the Albany FBI Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Stephen C. Green and Richard Belliss of the Northern District of New York, and Trial Attorney Joseph Kaster of the National Security Division’s Counterterrorism Section.
Press AdvisoryRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian will conduct a press conference tomorrow (December 17, 2015) at 4 PM in the Syracuse U.S. Attorney’s Office. Joining him will be officials representing multiple law enforcement agencies. This announcement is in connection with United States v. Stephen M. Howells, II and United States v. Nicole F. Vaisey, who are scheduled to be sentenced at 1 pm and 1:30 pm. in Syracuse.
No further information will be provided prior to the press conference.
Thursday, December 17, 2015
4:00 PM
U.S. Attorney’s Office
100 S. Clinton Street
Syracuse, New York
9th Floor