Northern District of New York

ALBANY, NEW YORK – A superseding indictment filed today charges Jennica Duell with five counts of making false declarations before a federal grand jury, announced United States Attorney Richard S. Hartunian and Special Agent in Charge Delano Reid of the Bureau of Alcohol, Tobacco, Firearms & Explosives.

The superseding indictment alleges that the false declarations were made before a grand jury conducting an investigation into the fire on or about May 2, 2013 at 438 Hulett Street in Schenectady, New York, that caused the deaths of David Terry and three young children, seriously injured another child, and destroyed the building and the personal property inside.

The superseding indictment alleges that Duell testified under oath before the federal grand jury on May 24, 2013 and January 31, 2014 and knowingly made material declarations on each date which were irreconcilably contradictory and inconsistent to the degree that one of them was necessarily false. Each count alleges that on May 24, 2013, Duell testified regarding specific events that occurred May 1-2, 2013, and then, on January 31, 2014, gave irreconcilably contradictory testimony about those events. The specific events alleged included declarations about: Duell’s relationships with David Terry and another man; Duell and others traveling from Saratoga Springs to 438 Hulett Street; Duell and others getting gasoline; how the fire at 438 Hulett Street was started, and by whom; and discussion that the story for Duell and others would be that they were in Saratoga Springs when the fire was started.

Duell, age 28, of Schenectady, New York, is detained pending trial. Her arraignment on the superseding indictment is scheduled for Tuesday, April 19, 2016, at 12:30 pm before U.S. Magistrate Judge Christian F. Hummel in U.S. District Court in Albany, New York. The scheduled trial date is May 16, 2016 in Albany.

The superseding indictment is merely an accusation and the defendant is presumed innocent unless and until proven guilty in a court of law. If convicted, Duell faces a maximum sentence of imprisonment for five years and a $250,000 fine on each count, and a term of supervised release of up to three years.

The charges resulted from an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives of the U.S. Department of Justice, the Schenectady Police Department, and the Schenectady Fire Department. The case is being prosecuted by First Assistant U. S. Attorney Grant C. Jaquith and Assistant United States Attorney Wayne A. Myers.

Further questions or inquiries may be directed to First Assistant U.S. Attorney Jaquith at 518-431-0247.

The Bureau of Alcohol, Tobacco, Firearms and Explosives notes that there is a reward of up to a total of $40,000 for information leading to the arrest and conviction of the person(s) responsible for the arson that occurred on May 2, 2013 at 438 Hulett Street in Schenectady, resulting in personal injury and death. All information will be treated confidentially and the callers will remain anonymous if requested. Anyone having information should call the ATF Albany Field Office at 518-431-4182, or email [email protected].

ALBANY, NEW YORK – Jason Holcomb, age 46, of Queensbury, New York, pled guilty today to tax evasion, announced United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office.

As part of his plea, Holcomb admitted that he willfully evaded the payment of income taxes he owed to the Internal Revenue Service for the 2002 to 2005 tax years. While working as a construction contractor, Holcomb concealed his assets by putting assets in the names of other people and dealing in cash, to try to hide his income from the government. As a result, Holcomb failed to pay $193,215 in taxes, which does not include interest and penalties that the IRS could assess.

Holcomb faces up to 5 years in prison, a maximum fine of $250,000, and a maximum term of post-imprisonment supervised release of 3 years when he is sentenced by United States District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Holcomb may also be ordered to pay restitution to the Internal Revenue Service.

This case was investigated by the New York Field Office of the IRS-Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Emily Farber.

PLATTSBURGH, NEW YORK – Roy Redeye, age 39, of Cortland and Akwesasne, New York, was sentenced today to serve 38 months in prison for threatening to injure Saint Regis Mohawk Tribe Police Department Officers.

The announcement was made by United States Attorney Richard S. Hartunian, Saint Regis Mohawk Police Chief Matthew Rourke, and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations.

U.S. District Judge Lawrence E. Kahn also sentenced Redeye to serve a 3-year term of supervised release, to be served after Redeye is released from prison.

As part of his plea on December 9, 2015, Redeye admitted that in February 2015, he posted messages to Facebook in which he threatened to kill or injure three Saint Regis Mohawk Tribe Police Department Officers.

U.S. Attorney Richard S. Hartunian stated: "The defendant threatened to injure and kill police officers and received a sentence that reflects the seriousness of his crime. This successful prosecution is the result of the excellent and close cooperation among federal, tribal and local law enforcement that my Office has fostered in the Northern District of New York."

Saint Regis Mohawk Tribe Police Chief Matthew Rourke stated: "This was a good outcome for public safety at all levels and the community as a whole. Internet safety is the key, be aware that your actions, including threats, and especially against law enforcement, will be taken seriously." Police Chief Rourke thanked Homeland Security Investigations, the Cortland Police Department, and the United States Attorney for their combined effort.

This case was investigated and assisted by the Saint Regis Mohawk Tribal Police Department, Homeland Security Investigations, the Cortland Police Department, and the Cortland County Sheriff’s Office. Assistant United States Attorney Elizabeth Horsman prosecuted the case under United States Attorney Hartunian’s Indian Country public safety initiative.

ALBANY, NEW YORK – Joseph Felix Strevell, age 54, of Castleton, New York, was arraigned today on an indictment accusing him of lying under oath to conceal his failure to pay restitution to New York State.

The announcement was made by U.S. Attorney Richard S. Hartunian, New York State Police Superintendent Joseph A. D’Amico, and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.

U.S. Attorney Richard S. Hartunian said: "Restitution is a mandatory obligation that no convicted felon should be able to walk away from. Joseph Strevell tried to shirk his restitution obligation and when my office took his deposition to find out about his ability to pay, he repeatedly lied under oath to an Assistant United States Attorney to cover his tracks. As a result, he has been indicted for perjury."

New York State Police Superintendent Joseph A. D’Amico said: "We will show no mercy for convicted criminals who fail to fulfill the obligations of their sentences, and this case proves that trying to cover your tracks by lying to law enforcement never works. I want to thank the State Police Special Investigations Unit, and our partners at the U.S. Attorney’s Office and the FBI, for their persistence in this case."

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

From 1997 to 1999, Strevell served as a Deputy Secretary of State for the State of New York. He left that position to serve as the head of the state-funded Institute for Entrepreneurship. In 2007, Strevell was convicted in federal court of defrauding New York State while leading the Institute. In March 2009, the United States District Court for the Northern District of New York entered judgment against Strevell on this conviction, requiring him to pay $111,500 in restitution to his victim, New York State. The judgment required Strevell to pay restitution at a minimum rate of $100 per month or 10 percent of his gross monthly earnings, whichever was greater, and to pay full restitution immediately if at any time he had the resources to do so.

In December 2014, the U.S. Attorney’s Office deposed Strevell under oath to determine whether he was complying with his restitution obligation. According to the indictment, when questioned about how he was able to make a $75,440 down payment on a lease with an option to purchase a 138.55-acre horse farm in Rensselaer County in April and May 2013, Strevell falsely testified that his mother and aunt provided the majority of the funds used to make the down payment. In fact, according to the indictment, neither Strevell’s mother nor aunt contributed toward the down payment.

According to the indictment, Strevell also lied during that deposition about whether he had paid for his daughter’s wedding in May 2014. Strevell falsely testified that he contributed only "a couple thousand dollars" toward wedding expenses, but, according to the indictment, Strevell paid for most of the wedding, ultimately contributing more than $30,000 toward wedding expenses by paying at least one wedding vendor directly and transferring tens of thousands of dollars from his business to his daughter.

The indictment also alleges that Strevell failed to pay restitution each month as required by the 2009 judgment.

Strevell faces five felony counts of perjury and one misdemeanor count of defaulting on his restitution obligation. If convicted of perjury, Strevell faces a maximum of 5 years in prison, a $250,000 fine, and 3 years of post-imprisonment supervised release. If convicted on the misdemeanor charge, Strevell faces a maximum of one year in prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

Strevell was arraigned today in Albany, New York, before United States Magistrate Judge Christian F. Hummel, and released pending a trial before United States District Court Judge Gary L. Sharpe.

This case is being investigated by the New York State Police and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorneys Jeffrey C. Coffman and Michael Barnett.

SYRACUSE, NEW YORK – Jason Kopp, 40, of Liverpool, New York and Emily Oberst, 23, of Syracuse, New York were indicted for conspiracy to sexually exploit a child, sexual exploitation of a child, distribution of child pornography, and possession of child pornography, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.

The 28 count indictment charges Kopp and Oberst with one count of conspiracy to sexually exploit a female born in 2014 and two counts of sexual exploitation of that child. The indictment also charges Kopp, individually, with eight counts of sexual exploitation of children, nine counts of distribution of child pornography, and two counts of possession of child pornography. Kopp is accused of producing and distributing images depicting a female born in 2014 and a male born in 2013. As for Oberst, the indictment charges her, individually, with two counts of sexual exploitation of children and four counts of distribution of child pornography. Oberst is accused of producing and distributing images depicting a female born in 2014 and another female born in 2011.

Upon conviction, Kopp and Oberst would face a mandatory minimum sentence of fifteen years and a maximum sentence of thirty years imprisonment, on the conspiracy charge as well as each count of sexual exploitation of a child. On each count of distribution of child pornography, if convicted, Kopp and Oberst are subject to a mandatory minimum sentence of five years and a maximum sentence of twenty years imprisonment. If convicted of possession of child pornography, Kopp would face a maximum sentence of twenty years imprisonment on each charge. In addition, all of the charges provide for a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration as a sex offender.

Kopp and Oberst were previously arrested pursuant to criminal complaints and arrest warrants filed on Saturday, March 19, 2016. On that day, Kopp and Oberst appeared before United States Magistrate Judge Baxter in Syracuse, New York and were detained without bail.

United States Attorney Hartunian said: "The indictment alleges criminal conduct that is unspeakable – the sexual exploitation and abuse of the most vulnerable members of our society, our very young children. We will seek to have the defendants held accountable to the fullest extent of the law. We commend the Federal Bureau of Investigation, the District of Columbia

Metropolitan Police Department-FBI Child Exploitation Task Force, and the New York State Police for the investigation which led to these charges, and appreciate the assistance of Onondaga County District Attorney William J. Fitzpatrick and his staff in pursuing justice for the victims and their families."

"Today's charges are the result of the combined efforts of several law enforcement agencies that are committed to ending the sexual exploitation of our most innocent citizens," said Special Agent in Charge Andrew W. Vale. "Our children deserve to be safe from alleged predators such as Kopp and Oberst, and the FBI will continue to work tirelessly with our law enforcement partners to stop and ultimately prevent such evil acts."

The charges in the indictments are merely accusations. The defendants are presumed innocent until proven guilty.

This case is being investigated by FBI Albany Division (Syracuse Resident Agency), the District of Columbia Metropolitan Police Department-Federal Bureau of Investigation ("MPD-FBI") Child Exploitation Task Force (Washington Field Office), and the New York State Police and is being prosecuted by Assistant U.S. Attorneys Lisa Fletcher and Robert Levine.

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

BINGHAMTON, NEW YORK –Antonio Ballard, 25, of Binghamton, New York, was convicted yesterday on eight counts of engaging in a sex trafficking and prostitution business involving three minor girls. The verdict followed a week-long trial, announced United States Attorney Richard S. Hartunian. Ballard faces a minimum sentence of 10 years and up to life in prison when he is sentenced on July 27, 2016 by Senior United States District Judge Thomas J. McAvoy. Sentences are imposed by a judge based upon the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.

"The exploitation of minors in the commercial sex trade represents inhumanity in its worst form. It violates our laws, shocks our conscience and will be vigorously prosecuted," said United States Attorney Hartunian.

"The sexual exploitation of minors will not be tolerated," said FBI Special Agent in Charge Andrew W. Vale. "Mr. Ballard's crimes are as shocking as they are heinous and thanks to the combined efforts of law enforcement, our community is safe from a depraved and dangerous man."

The evidence at trial showed that from August 2014 through December of 2014, in Broome County, New York, Ballard recruited three minor girls to engage in commercial sex acts and prostitution with men. Ballard benefitted from prostituting these minors by receiving 50% of the proceeds that they earned from performing sex acts. Using a cellular telephone, Ballard caused the minors to be photographed in sexually provocative poses and then posted these images on an internet advertising site.

This case was investigated by the Federal Bureau of Investigation ("FBI")-Albany Division, New York State Police, and the Binghamton Police Department and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.

PLATTSBURGH, NEW YORK – Clayton T. Brothers, age 40, of Russell, New York, pled guilty on Friday to illegally possessing a firearm and more than 1,000 rounds of steel-penetrating ammunition.

The announcement was made by United States Attorney Richard S. Hartunian; James Spero, Special Agent in Charge for Immigration and Customs Enforcement, Homeland Security Investigations (HSI); New York State Police Superintendent Joseph D’Amico; and Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision.

As part of his plea, Brothers admitted to possessing a Sig Sauer 556 pistol, and more than 1,000 rounds of 5.56 mm caliber NATO Lake City XM855 Grain Steel Penetrator ammunition, at his home in St. Lawrence County in April 2014. A prior felony conviction prevents Brothers from possessing firearms and ammunition.

He faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced on July 25, 2016 by United States District Judge Brenda K. Sannes. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

This case was investigated by Homeland Security Investigations, the New York State Police, and the New York State Department of Corrections and Community Supervision, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.

SYRACUSE, NEW YORK – Richard S. Hartunian, United States Attorney for the Northern District of New York announced today that Christopher Chadick, 63, of Syracuse, N.Y. was sentenced today by Chief United States District Judge Glenn T. Suddaby to a five (5) year term of probation with 6 months of intermittent weekend confinement in connection with his plea of guilty to Social Security Fraud. Chadick was also ordered to pay restitution to the Social Security Administration in the amount of $247,269.40.

As part of his guilty plea on November 23, 2015, Chadick admitted that from April 2003 through August 2010, he was engaged in significant gainful employment as an attorney. He did not disclose to the Social Security Administration that he was working in any capacity after the year 2000. The evidence in the case showed that Chadick operated a law firm, handled bankruptcy actions, appeared in town courts, and later was employed by a law firm. He further admitted that he concealed his employment to fraudulently secure his monthly disability benefits. Chadick never informed the Social Security Administration of any improvement in his medical condition or that he was able to work as a lawyer while receiving Social Security Disability benefits.

The case was investigated by the Social Security Administration Office of Inspector General, based on a referral from the U.S. Bankruptcy Trustee for the Northern District of New York and was prosecuted by Assistant U.S. Attorney Tamara B. Thomson.

UTICA, NEW YORK - Ramsi Uthman (42), an inmate with the New York State Department of Corrections, was sentenced today to serve 24 months in prison and three years of supervised release in connection with his guilty plea to a one-count indictment charging him with conspiring to smuggle heroin into Attica Correctional Facility, announced United States Attorney Richard S. Hartunian and Shelly Binkowski, Inspector in Charge, United States Postal Inspection Service, Boston Division.

Ramsi Uthman is currently serving a 25-year jail sentence as a the result of his 2003 conviction in Onondaga County Court from an arson he committed at Temple Beth El in Syracuse. At the sentencing hearing today, United States District Judge David N. Hurd ordered 12 months of Mr. Uthman’s federal sentence on the heroin conspiracy conviction to run consecutive to his state prison sentence.

Uthman’s sentence today in Federal Court was in connection with his guilty plea to conspiring with his ex-wife, Twanda Uthman (40), of Liverpool, New York, and Jonathan Lind (29), of New York City, to possess with intent to distribute and to distribution of heroin. Uthman admitted that he arranged for Lind to mail a package containing approximately .948 grams of heroin to Twanda Uthman, which she then planned to smuggle into Attica Correctional Facility during a conjugal visit with Ramsi Uthman. At sentencing, Uthman admitted that he previously received illegal drugs in a similar manner while incarcerated at least 40 or 50 times. Twanda Uthman pled guilty to the one-count indictment and is scheduled to be sentenced in June.

Jonathan Lind is scheduled for trial in April 20161.

This case was investigated by the United States Postal Inspection Service and the New York State Department of Corrections and Community Supervision, Office of Special Investigations- Narcotics Unit, with the assistance of the U.S. Drug Enforcement Agency (DEA) and the New York State Police, Community Narcotics Enforcement Team (CNET). It was prosecuted by Assistant United States Attorney Michael F. Perry.

1 Johnathan Lind is charged by indictment. The charges therein are merely accusations and he is presumed innocent unless and until proven guilty.

SYRACUSE, NEW YORK – Kenneth Burghardt, 44, of Martville, New York was sentenced today to serve 262 months in prison and a lifetime term of supervised release in connection with his previous guilty pleas to all ten counts of an indictment charging him with receipt and distribution of images of minors engaged in sexually explicit conduct, announced United States Attorney Richard S. Hartunian. The defendant was serving a federal supervised release term from a 2008 federal court child exploitation offense at the time he committed the crimes for which he was sentenced today1. For violating the conditions of his 2008 term of supervised term, Burghardt was sentenced to an additional 60 months in prison to be served consecutively to the 262 month sentence. He will also be required to register as a sex offender in connection with these convictions.

The evidence in the case showed that Kenneth Burghardt possessed a mobile telephone at his home on February 24, 2015 when he was visited by U.S. Probation officers who heard its ringtone. The Probation officers located and seized the mobile telephone, which was found to contain 1,437 images and 28 video files containing child pornography. Additional images of child pornography were also located on a computer used by the defendant. The conditions of supervised release imposed as part of Burghardt’s 2008 conviction prohibited from him possessing a mobile phone or computer without the permission of the Court and permitted Probation Officers to search such devices.

This case was investigated by United States Probation Department, Northern District of New York, and the Federal Bureau of Investigation ("FBI") Albany Division, Syracuse Resident Agency and was prosecuted by Assistant U.S. Attorney Lisa Fletcher.

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

1 Kenneth Burghardt pled guilty in 2008 and was sentenced in 2009 to serve 87 months imprisonment, a lifetime term of supervised release, and required him to register as a sex offender.
 

SYRACUSE, NEW YORK – Brok Chase, 29, of Ft. Drum, New York pled guilty today to all four (4) counts of a criminal information alleging he made images of a six year old victim engaging in sexually explicit conduct, announced United States Attorney Richard S. Hartunian.

The defendant, a civilian, shared a residence with a serving member of the United States Army (who was not involved in the commission of his crimes) when a search warrant was executed there on September 15, 2015. A mobile telephone possessed by the defendant contained the multiple images of the victim engaged in sexually explicit conduct with the defendant.

The defendant faces a maximum sentence of thirty years and a minimum sentence of fifteen years as to each count when he is sentenced on July 22, 2016 in Syracuse, New York. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case is being investigated by Federal Bureau of Investigation ("FBI") Albany Division, Syracuse Resident Agency, with assistance from FBI Louisville, Kentucky, Army CID (Fort Drum, New York), and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Lisa Fletcher.

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

SYRACUSE, NEW YORK – Jason Kopp,40, of Liverpool, New York and Emily Oberst, 23, of Syracuse, New York were arrested yesterday and charged with sexual exploitation of a child by making pornographic images and distribution of child pornography involving a 16 month old infant, announced United States Attorney Richard S. Hartunian.

As alleged in the criminal complaint filed today, both defendants were arrested by Special Agents of the Federal Bureau of Investigation ("FBI") following the execution of search warrants and the seizure of evidence from their residences in Syracuse and Liverpool last night and early this morning.

The charges filed against Kopp and Oberst for sexual exploitation of a child by making pornographic images carry a minimum sentence of fifteen years and a maximum sentence of thirty years imprisonment. The charges for distribution of child pornography carry a minimum sentence of five years and a maximum sentence of twenty years imprisonment. Each charge provides for a fine of up to $250,000.

Kopp and Oberst appeared today in Syracuse, New York, before United States Magistrate Judge Andrew T. Baxter and were detained without bail pending further court proceedings.

The charges in the complaint are merely accusations. The defendants are presumed innocent until proven guilty.

This case is being investigated by FBI Albany Division (Syracuse Resident Agency), and the District of Columbia Metropolitan Police Department-Federal Bureau of Investigation ("MPD-FBI") Child Exploitation Task Force (Washington Field Office), and is being prosecuted by Assistant U.S. Attorney Lisa Fletcher.

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

SYRACUSE, NEW YORK – Natalia Polkowski, 29, of the Ukraine, pled guilty today in federal court in Syracuse to conspiracy to commit marriage fraud, announced United States Attorney Richard S. Hartunian and Brian Devine, Resident Agent in Charge, Homeland Security Investigations (HSI), Syracuse, New York.

As part of her guilty plea, Natalia Polkowski (nee Medvid), a Ukranian national, admitted that she entered into a sham marriage to John Polkowski of Binghamton, New York, on December 23, 2008, for the purpose of obtaining permanent residency in the United States. Polkowski further admitted that she never intended to establish a life with her husband, but rather entered into the bogus marriage to enable her to remain in the United States. John Polkowski pled guilty to conspiracy to commit marriage fraud on April 22, 2014. At that time, he admitted that he was promised $10,000 for entering into the fraudulent marriage.

Natalia Polkowski will be sentenced on July 21, 2016 in federal court in Binghamton by Senior District Judge Thomas J. McAvoy. She faces a maximum sentence of up to five years in prison and a fine of up to $250,000. Sentences are imposed by a judge based upon the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.

This case was investigated by Homeland Security Investigations ("HSI"), and is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown

ALBANY, NEW YORK – Edward A. Leon, 43, of St. Johnsville, New York, was sentenced today to be imprisoned for the statutory maximum of 10 years, based upon his trial conviction on two counts of making false declarations before a federal grand jury, announced United States Attorney Richard S. Hartunian and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division. Senior U.S. District Judge Gary L. Sharpe also sentenced Leon to a 3-year term of post-imprisonment supervised release and to pay a special assessment of $200.

United States Attorney Richard S. Hartunian said: “The defendant’s perjury was the most serious imaginable – a purposeful, flagrant attempt to avoid scrutiny in an investigation into an arson murder – and deserved this maximum sentence.  The defendant’s deception was deadly, as he left the occupants at 438 Hulett Street to die rather than risk scrutiny for his activities.  We remain completely committed to securing justice for the victims and their families.  We are grateful for the outstanding work and dedication of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Schenectady Police Department, and of the Schenectady Fire Department.”

ATF Special Agent in Charge Delano A. Reid said: “The deadly events of May 2, 2013 have rocked the residents of Schenectady as they resulted in the death of three innocent children and their father. Similarly, the assigned law enforcement community has also been stymied by the mistruths and inconsistencies perpetrated by Mr. Leon.  While his lies have affected our momentum in identifying those involved in the arson, today we can take some solace knowing that the defendant will serve the maximum sentence he can receive for impeding the investigation.  Rest assured, the quadruple homicide investigation will continue to be our utmost priority, as it is our legal and moral obligation to incarcerate those person(s) responsible for such a heinous act. It is our hope that today’s sentence, combined with the additional monies that have been offered by the Mohawk Valley Crimestoppers, can incite the interest this case so deserves. Sa’fyre Terry deserves nothing less.”

A three day trial culminated in Leon’s conviction on November 12, 2015.  Leon was convicted as charged for two false declarations that Leon made in testimony before a grand jury conducting an investigation into the fire on May 2, 2013 at 438 Hulett Street in Schenectady, New York, which caused the deaths of David Terry and three young children, seriously injured another child, and destroyed the building and the personal property inside.

Leon falsely testified regarding his travel on May 2, 2013, claiming that he had driven straight from the Cumberland Farms in Palatine Bridge to work in Amsterdam, New York, when he had actually driven first to Schenectady, was driving on Hamilton Street near its intersection with Hulett Street, and was in the area of 438 Hulett Street at the time of the fire.  Leon also falsely testified in denying that he had used a particular telephone to send text messages to David Terry, some of which were threatening, from April 25 to 29, 2013.

The evidence at trial showed that: Leon purchased and activated a phone on April 25, 2013, which he used to threaten David Terry anonymously, as “the undertaker,” with words like “you’re not going to make it to your wedding day,” “die, Dave, die,” and “you’re a dead man walking.” When those threats apparently did not deter Terry from continuing his relationship with Leon’s girlfriend, Leon went to confront Terry under cover of early morning darkness.  Leon said he saw a small fire in the front porch right by the door, with flames maybe two feet high, and left – without alerting the people inside, calling the fire department, the police department, or 911, because he did not want anyone to suspect him.  Leon did not tell anyone, and lied about his involvement to a St. Johnsville Police Officer on May 2, 2013; to a Schenectady Police Detective on June 19, 2013; to ATF agents on November 14, 2013; to the grand jury on November 22, 2013; and to agents again on January 2, 2014, before admitting that day that he had lied about the phone and his activities on May 2.
 
This case was investigated by the ATF, the Schenectady Police Department, and the Schenectady Fire Department. The case was prosecuted by First Assistant U. S. Attorney Grant C. Jaquith and Assistant United States Attorney Wayne A. Myers.

Further questions or inquiries may be directed to First Assistant U.S. Attorney Jaquith at 518-431-0247.

The Bureau of Alcohol, Tobacco, Firearms and Explosives notes that there is a reward of up to a total of $40,000 for information leading to the arrest and conviction of the person(s) responsible for the arson that occurred on May 2, 2013 at 438 Hulett Street in Schenectady, resulting in personal injury and death.  All information will be treated confidentially and the callers will remain anonymous if requested.  Anyone having information should call the ATF Albany Field Office at 518-431-4182, or email [email protected].

ALBANY, NEW YORK – A jury voted yesterday to convict Wanxiang Chen, age 28, of transporting aliens in the United States for the purpose of financial gain.

The announcement was made by United States Attorney Richard S. Hartunian and United States Border Patrol Acting Division Chief Bradley S. Curtis.

Chen, a Chinese national who was residing in Flushing, Queens, was found guilty of transporting two Chinese people who were in the country illegally.  On August 11, 2015, he picked them up from the Akwesasne Mohawk Casino in Hogansburg, New York, and was driving them when Border Patrol stopped his car in Fort Covington.  The evidence at trial demonstrated that Chen had made three prior smuggling trips, transporting aliens from the casino to New York City in exchange for cash payments.

Chen faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced on July 14, 2016 by Senior United States District Judge Thomas J. McAvoy.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

This case was investigated by the United States Border Patrol and was prosecuted by Assistant U.S. Attorney Douglas Collyer.

SYRACUSE, NEW YORK – Gerald McDonald, 52, of Madrid, NY, pled guilty today in federal court in Syracuse to conspiracy to submit false statements to influence a financial institution, announced United States Attorney Richard S. Hartunian and Internal Revenue Service, Criminal Investigation Division Special Agent in Charge Toni M. Weirauch.

As part of his guilty plea, McDonald, Chief Executive Officer (CEO) and part owner of Parkway Country Polaris, Parkway Dodge Chrysler and Jeep, and Parkway Chevrolet and Oldsmobile admitted that he conspired with sales persons and sales managers to submit false information to banks on consumer bank loan applications. In order to ensure that a borrower who would not otherwise qualify for a loan would qualify, a co-conspirator sales person or co-conspirator sales manager would falsely state on the loan application that a cash down payment had been made on a vehicle. In fact, no such down-payments had been made or were overstated in the financing applications. As CEO and part owner of Parkway, McDonald knew of and approved the use of this practice.

Gerald McDonald will be sentenced on July 19, 2016 in federal court in Syracuse by Senior District Judge Norman A. Mordue. He faces a maximum sentence of five years in prison, a fine of up to $250,000, an order of restitution in the amount of $102,498 and an order of forfeiture in the amount of $102,498. Sentences are imposed by a judge based upon the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.

This case was investigated by IRS-Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown

ALBANY, NEW YORK – William J. Richardson, age 41, of Troy, New York, was sentenced today to 18 months in prison for possessing a firearm as a felon and possessing an unregistered firearm.

The announcement was made by United States Attorney Richard S. Hartunian and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.

U.S. District Judge Thomas J. McAvoy also sentenced Richardson to 3 years of supervised release, to be served following Richardson’s release from prison.

On May 13, 2015, Richardson sold a sawed-off rifle, a Taurus Circuit Judge manufactured in Brazil, for $500 in a parking lot on Livingston Avenue in Albany.  Richardson could not possess the firearm because he had a prior felony conviction.  Additionally, the rifle as modified measured less than 26 inches, and it had not been registered in the National Firearms Registration and Transfer Record as required.

This case was investigated by the ATF, with assistance from Homeland Security Investigations and the Albany County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Michael Barnett.

SYRACUSE, NEW YORK – Anthony Vita, 36, of Syracuse, New York was arrested yesterday in Virginia Beach, Virginia on a complaint filed in United States District Court for the Northern District of New York (Syracuse) charging him with distributing a controlled substance (heroin) resulting in the death of another person, announced United States Attorney Richard S. Hartunian

The victim, a twenty-four year old resident of Camillus, New York, was five months pregnant when she died of a heroin and fentanyl overdose on November 7, 2015 at her home, as alleged in the complaint. The complaint further alleges that Investigators recovered a text message exchange between Vita and the victim on the night of her death that included arrangements for them to meet so he could sell her heroin and a hypodermic needle.

Following his court appearance in Norfolk, Virginia, Vita was ordered to remain in custody pending his appearance in federal court in Syracuse, New York sometime next week.

The charge filed against Anthony Vita carries a mandatory minimum sentence of 20 years in prison, and a maximum sentence of life imprisonment, a fine of up to $1,000,000.00, and a term of supervised release of at least 3 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.

This case is being investigated by United States Drug Enforcement Administration (DEA) and the Town of Camillus (New York) Police Department and is being prosecuted by Assistant U.S. Attorney Carla Freedman.

ALBANY, NEW YORK – Michael C. Matzen, age 35, of Troy, New York, pled guilty yesterday to committing two bank robberies over the course of two days in East Greenbush and Latham.

The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Federal Bureau of Investigation, Albany Division. 

On March 19, 2015, Matzen entered a TD Bank branch in East Greenbush with his face partially covered.  He presented a teller with a note demanding money and stating he had a gun.  The defendant took $500 and then fled the bank.

The following day, Matzen walked into a Trustco Bank branch in Latham with his face partially covered.  Again he presented a teller with a note demanding money and stating he had a gun.  The defendant took $5,750 and then fled the bank.

Matzen faces up to 20 years in prison, and a term of post-imprisonment supervised release of up to 3 years, when he is sentenced on July 26, 2016 by United States District Judge Gary L. Sharpe.  Matzen also faces a fine of up to $250,000, and may be ordered to forfeit the money he took during the robberies, or pay restitution to his victims.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
 
This case was investigated by the Federal Bureau of Investigation in coordination with the Colonie Police Department and East Greenbush Police Department, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.

Government Contractor and Several Individuals Admit That They Violated Laws Designed to Enhance Contracting Opportunities for Our Nation’s Service-Disabled Veterans

Syracuse-based Hayner Hoyt Corporation has agreed to pay $5 million, plus interest, to resolve allegations that its chairman and chief executive officer, Gary Thurston, its president, Jeremy Thurston, employees, Ralph Bennett and Steve Benedict and Hayner Hoyt affiliates LeMoyne Interiors and Doyner Inc., engaged in conduct designed to exploit contracting opportunities reserved for service-disabled veterans.

The United States has long used government contracting to promote small businesses in general and specifically small businesses owned by veterans who have service-connected disabilities.  Congress has established a targeted procurement program for the U.S. Department of Veterans Affairs (VA), which requires the VA to set annual goals for contracting with service-disabled veteran-owned small businesses.  To be eligible for these contracts, an applicant must qualify as a “small business.”  In addition to being a small business, a service-disabled veteran must own and control the business and handle its strategic decisions and day-to-day management.

The settlement resolves allegations that the defendants orchestrated a scheme designed to take advantage of the service-disabled veteran-owned small business program to secure government contracts for a now-defunct company, 229 Constructors LLC, that Gary and Jeremy Thurston created and controlled and subcontracts for Hayner Hoyt and its affiliates.  The Thurstons – neither of whom is a veteran – exerted significant influence over 229 Constructors’ decision-making during the bid, award and performance of these contracts in various ways, including by staffing the company entirely with then-current and former Hayner Hoyt employees and their spouses.  They also provided 229 Constructors with considerable resources, which provided it with a competitive advantage over legitimate service-disabled veteran-owned small businesses neither affiliated with nor controlled by a larger, non-veteran owned corporation.  Hayner Hoyt officials caused false certifications and statements to be made to the government representing that 229 Constructors met all requirements to be a service-disabled veteran-owned small business when they knew, or should have known, that 229 Constructors did not meet such requirements.  By diverting contracts and benefits intended for our nation’s service-disabled veterans to Hayner Hoyt and its affiliates, the defendants undercut Congress’s intent of encouraging contract awards to legitimate service-disabled veteran-owned small businesses.

The investigation revealed that Bennett – a service-disabled veteran who allegedly ran 229 Constructors, served as its president and oversaw its $14.4 million government-contracts portfolio – was not involved in making important business decisions for the company.  He was instead responsible for overseeing Hayner Hoyt’s tool inventory and plowing snow from Hayner Hoyt’s property.  Jeremy Thurston set up an email account in Bennett’s name in such a way that all emails received by the veteran were automatically forwarded to him.  After the government began to question 229 Constructors’ affiliation with Hayner Hoyt, Gary Thurston wrote others that he and Jeremy Thurston would likely terminate operations of 229 Constructors.  A few months later, service-disabled veteran Bennett and Benedict, who was simultaneously the “co-owner” of 229 Constructors and listed on Hayner Hoyt’s website as one of its five “key” officials, transferred a total of $52,000 to Gary Thurston’s personal bank account allegedly to show their appreciation for the assistance he had provided.

Defendants make various admissions in the settlement agreement, including that their conduct violated federal regulations designed to encourage contract awards to legitimate service-disabled veteran-owned small businesses.  They also admit that 229 Constructors provided more than $1.3 million in service-disabled veteran-owned small business subcontracts to Hayner Hoyt, LeMoyne Interiors and Doyner and that those companies generated $296,819 in gross profits as a result.

“Those who do business with the federal government must do so honestly,” said U.S. Attorney Richard S. Hartunian for the Northern District of New York  “As today’s settlement demonstrates, this office will vigorously pursue those individuals and entities who game programs designed to help our nation’s veterans succeed in starting small businesses.”

“Federal contracting programs designed to help service-disabled veteran-owned small businesses should never be undermined by actions such as the ones taken by Hayner Hoyt Corporation officials to divert contracts to ineligible large firms,” said Inspector General Peggy E. Gustafson for the Small Business Administration (SBA).  “The Office of Inspector General (OIG) will continue to work with the U.S. Department of Justice and partnering agencies in using all available remedies to deter parties from taking advantage of contracting programs designed to assist deserving service-disabled veteran-owned small businesses.”

“This settlement demonstrates the Department of Veterans Affairs, Office of Inspector General’s continued commitment to aggressively pursue individuals and companies that misrepresent themselves as service-disabled veteran-owned small businesses and deny legitimate disabled veterans the opportunity to obtain VA set-aside contracts,” said Special Agent in Charge Jeff Hughes for the Office of Inspector General for the Department of Veteran Affairs (VA-OIG).  “The VA-OIG will continue to work diligently to protect the integrity of this important program, which is designed to aid disabled veterans.  I also want to thank the U.S. Attorney’s Office and our law enforcement partners in this effort.”

“This civil settlement is a positive result of a joint investigation that proved Department of Defense contractor Hayner Hoyt executed a scheme to exploit and violate SBA and VA regulations in order to obtain service-disabled veteran-owned small business set aside contracts,” said Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service’s (DCIS) Northeast Field Office for the U.S. Department of Defense Office of the Inspector General.  “Through these schemes, Hayner Hoyt denied small businesses, owned by legitimate service-disabled veterans, the opportunity to obtain government contracts.  Such schemes erode public confidence and undermine the mission of our government.  The DCIS and its law enforcement partners will continue to tirelessly pursue and investigate procurement fraud allegations in order to safeguard the American taxpayer and its military veterans.”

The government’s investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, which allows private persons, known as “relators,” to file civil actions on behalf of the United States and share in any recovery.  The relator in this case will receive $875,000 of the settlement proceeds.  The case is docketed with the U.S. District Court for the Northern District of New York under number 14-cv-830.

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

SYRACUSE, NEW YORK – Syracuse-based Hayner Hoyt Corporation has agreed to pay $5 million, plus interest, to resolve allegations that its Chairman and Chief Executive Officer, Gary Thurston, its President, Jeremy Thurston, employees, Ralph Bennett and Steve Benedict and Hayner Hoyt affiliates LeMoyne Interiors and Doyner Inc., engaged in conduct designed to exploit contracting opportunities reserved for service-disabled veterans.
 
The United States has long used government contracting to promote small businesses in general and specifically small businesses owned by veterans who have service-connected disabilities.  Congress has established a targeted procurement program for the U.S. Department of Veterans Affairs (VA), which requires the VA to set annual goals for contracting with service-disabled veteran-owned small businesses.  To be eligible for these contracts, an applicant must qualify as a “small business.”  In addition to being a small business, a service-disabled veteran must own and control the business and handle its strategic decisions and day-to-day management.
 
The settlement resolves allegations that the defendants orchestrated a scheme designed to take advantage of the service-disabled veteran-owned small business program to secure government contracts for a now-defunct company, 229 Constructors LLC, that Gary and Jeremy Thurston created and controlled and subcontracts for Hayner Hoyt and its affiliates.  The Thurstons – neither of whom is a veteran – exerted significant influence over 229 Constructors’ decision-making during the bid, award and performance of these contracts in various ways, including by staffing the company entirely with then-current and former Hayner Hoyt employees and their spouses.  They also provided 229 Constructors with considerable resources, which provided it with a competitive advantage over legitimate service-disabled veteran-owned small businesses neither affiliated with nor controlled by a larger, non-veteran owned corporation.  Hayner Hoyt officials caused false certifications and statements to be made to the government representing that 229 Constructors met all requirements to be a service-disabled veteran-owned small business when they knew, or should have known, that 229 Constructors did not meet such requirements.  By diverting contracts and benefits intended for our nation’s service-disabled veterans to Hayner Hoyt and its affiliates, the defendants undercut Congress’s intent of encouraging contract awards to legitimate service-disabled veteran-owned small businesses.
 
The investigation revealed that Bennett – a service-disabled veteran who allegedly ran 229 Constructors, served as its president and oversaw its $14.4 million government-contracts portfolio – was not involved in making important business decisions for the company.  He was instead responsible for overseeing Hayner Hoyt’s tool inventory and plowing snow from Hayner Hoyt’s property.  Jeremy Thurston set up an email account in Bennett’s name in such a way that all emails received by the veteran were automatically forwarded to him.  After the government began to question 229 Constructors’ affiliation with Hayner Hoyt, Gary Thurston wrote others that he and Jeremy Thurston would likely terminate operations of 229 Constructors.  A few months later, service-disabled veteran Bennett and Benedict, who was simultaneously the “co-owner” of 229 Constructors and listed on Hayner Hoyt’s website as one of its five “key” officials, transferred a total of $52,000 to Gary Thurston’s personal bank account allegedly to show their appreciation for the assistance he had provided.
 
Defendants make various admissions in the settlement agreement, including that their conduct violated federal regulations designed to encourage contract awards to legitimate service-disabled veteran-owned small businesses.  They also admit that 229 Constructors provided more than $1.3 million in service-disabled veteran-owned small business subcontracts to Hayner Hoyt, LeMoyne Interiors and Doyner and that those companies generated $296,819 in gross profits as a result.
 
“Those who do business with the federal government must do so honestly,” said U.S. Attorney Richard S. Hartunian for the Northern District of New York  “As today’s settlement demonstrates, this office will vigorously pursue those individuals and entities who game programs designed to help our nation’s veterans succeed in starting small businesses.”
 
“Federal contracting programs designed to help service-disabled veteran-owned small businesses should never be undermined by actions such as the ones taken by Hayner Hoyt Corporation officials to divert contracts to ineligible large firms,” said Inspector General Peggy E. Gustafson for the Small Business Administration (SBA).  “The Office of Inspector General (OIG) will continue to work with the U.S. Department of Justice and partnering agencies in using all available remedies to deter parties from taking advantage of contracting programs designed to assist deserving service-disabled veteran-owned small businesses.”

“This settlement demonstrates the Department of Veterans Affairs, Office of Inspector General’s continued commitment to aggressively pursue individuals and companies that misrepresent themselves as service-disabled veteran-owned small businesses and deny legitimate disabled veterans the opportunity to obtain VA set-aside contracts,” said Special Agent in Charge Jeff Hughes for the Office of Inspector General for the Department of Veteran Affairs (VA-OIG).  “The VA-OIG will continue to work diligently to protect the integrity of this important program, which is designed to aid disabled veterans.  I also want to thank the U.S. Attorney’s Office and our law enforcement partners in this effort.”

“This civil settlement is a positive result of a joint investigation that proved Department of Defense contractor Hayner Hoyt executed a scheme to exploit and violate SBA and VA regulations in order to obtain service-disabled veteran-owned small business set aside contracts,” said Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service’s (DCIS) Northeast Field Office for the U.S. Department of Defense Office of the Inspector General.  “Through these schemes, Hayner Hoyt denied small businesses, owned by legitimate service-disabled veterans, the opportunity to obtain government contracts.  Such schemes erode public confidence and undermine the mission of our government.  The DCIS and its law enforcement partners will continue to tirelessly pursue and investigate procurement fraud allegations in order to safeguard the American taxpayer and its military veterans.”
 
The government’s investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, which allows private persons, known as “relators,” to file civil actions on behalf of the United States and share in any recovery.  The relator in this case will receive $875,000 of the settlement proceeds.  The case is docketed with the U.S. District Court for the Northern District of New York under number 14-cv-830.
 
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, SBA-OIG, VA-OIG and DCIS.  The United States was represented by Assistant U.S. Attorney Adam J. Katz.

ALBANY, NEW YORK – A Schenectady man pleaded guilty on Friday to stealing another person’s identity and using that person’s information to apply for a United States passport and public benefits.

The announcement was made by United States Attorney Richard S. Hartunian, Special Agent in Charge David Schnorbus of the Department of State Diplomatic Security Service, and Edward J. Ryan, Special Agent-In-Charge of the Social Security Administration Office of the Inspector General.

During his plea on Friday before United States District Judge Mae A. D’Agostino, the man identified himself as Fernando Lugo, a citizen of the Dominican Republic residing in Schenectady prior to his arrest.  He admitted that in April 2010, he submitted an application for a U.S. passport to the U.S. Post Office in Schenectady.  In February 2015, he applied to receive Medicaid benefits with the Schenectady County Department of Social Services.  On both applications, he used the name, Social Security Number, and date of birth of another person he knew.

The defendant faces at least 2 years and up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced on July 7, 2016 by Judge D’Agostino.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

This case was investigated by the Department of State Diplomatic Security Service and the Social Security Administration Office of the Inspector General, and is being prosecuted by Special Assistant U.S. Attorney Jason W. White.

ALBANY, NEW YORK – Tammy A. Grumme, age 41, of Glenmont, New York, was arraigned today on an indictment accusing her of stealing Social Security Survivor’s Insurance Benefits.

The announcement was made by United States Attorney Richard S. Hartunian and Edward J. Ryan, Special Agent-In-Charge of the Social Security Administration (SSA) Office of the Inspector General.

Grumme is charged with submitting false statements to the SSA from March 2011 through May 2013, claiming that she was the caregiver for her minor son, a surviving child, and that he resided with her.  In January 2011, an Albany County Court Judge awarded primary physical custody and sole decision-making authority to the child’s grandparents.  The indictment alleges that based on that court order, and the fact that the child did not reside with her, Grumme collected nearly $80,000 in benefits for her and her son that she was not entitled to receive.

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

Grumme faces up to 10 years of imprisonment, a term of post-imprisonment supervised release of up to 3 years, and a $250,000 fine, if convicted.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

Grumme was arraigned today before U.S. Magistrate Judge Daniel J. Stewart. She was detained pending a trial scheduled for May 10, 2016 before U.S. District Judge Frederick J. Scullin, Jr.

This case is being investigated by the SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Jason W. White.

BINGHAMTON, NEW YORK – Deborah E. Cottrell, age 65, of Andes, New York, was arraigned yesterday on an indictment accusing her of concealing her marriage and making false statements to the Social Security Administration (SSA) in order to obtain Survivor’s Insurance Benefits.

The announcement was made by United States Attorney Richard S. Hartunian and Edward J. Ryan, Special Agent-In-Charge of the SSA Office of the Inspector General.

The indictment alleges that Cottrell began to collect Survivor’s Insurance Benefits in 1998 and remarried in 2006, which disqualified her from receiving benefits.  The indictment alleges that Cottrell continued to receive benefits following her remarriage and in July 2014, mailed a form to the SSA falsely stating that she had not remarried.

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

Cottrell faces up to 20 years of imprisonment, 2 years of post-imprisonment supervised release and a $250,000 fine, if convicted on all counts of the indictment. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. 

Cottrell was arraigned yesterday in Binghamton before U.S. Magistrate Judge Therese Wiley Dancks. She was released on a bond pending a trial scheduled for May 9, 2016 before U.S. District Judge Thomas J. McAvoy.

This case is being investigated by the SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Jason W. White.

ALBANY, NEW YORK – Edwin Ferrer, age 42, of Schenectady, New York, was arraigned today on a charge of being a felon in possession of a firearm and six rounds of ammunition.

The announcement was made by United States Attorney Richard S. Hartunian and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.

The indictment alleges that on December 18, 2015, Ferrer possessed a Smith & Wesson Model 41, .22 caliber semi-automatic pistol, with a defaced serial number, and six rounds of ammunition. 

The charge in the indictment is merely an accusation and the defendant is presumed innocent until proven guilty. 

The charge filed against Ferrer carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

Ferrer was arraigned today in Albany before United States Magistrate Judge Christian F. Hummel, and detained pending a trial scheduled for May 9, 2016 in Syracuse before United States District Judge Frederick J. Scullin, Jr.

This case is being investigated by the ATF and the Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.

ALBANY, NEW YORK – Brock Brian Beeman, age 23, of Chazy, New York, pled guilty today to making interstate threats to injure or kill a Plattsburgh-area man.

The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations.

In March 2015, Beeman sent threatening communications to a Plattsburgh-area man, by text message and through Facebook.  Beeman continued sending these communications even after his victim said he would notify law enforcement if Beeman did not stop.

Beeman faces up to 5 years in prison, a fine of up to $250,000, a term of post-imprisonment supervised release of up to 3 years, and possible restitution to the victim, when he is sentenced on July 13, 2016 by United States District Judge Thomas J. McAvoy.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

This case was investigated by Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Elizabeth Horsman.

ALBANY, NEW YORK – Ronald Barney, age 66, of Orange, California, pleaded guilty yesterday to a misdemeanor charge of performing lead-based paint testing inspections and risk assessments without a certification from the Environmental Protection Agency (EPA).

The announcement was made by United States Attorney Richard S. Hartunian, EPA Criminal Investigations Division Special Agent in Charge Vernesa Jones-Allen, and Christina Scaringi, Special Agent in Charge of the Housing and Urban Development Office of Inspector General. 

Barney, formerly of Constable, New York, pled guilty to a violation of the Toxic Substances Control Act.  United States Magistrate Judge Douglas F. McCormick of the Central District of California sentenced Barney to a two-year term of probation and ordered him to pay a $2,500 fine. This case, brought by the U.S. Attorney’s Office for the Northern District of New York, was resolved in the Central District of California, where Barney now resides. 

As part of his plea, Barney admitted that on November 4, 2010, he performed an inspection and risk assessment for lead-based paint on a residence in the Town of Westville, New York, despite not being certified by the EPA to do so, and that he billed Westville $2,500 for these services.
 
The case resulted from a joint investigation by the EPA Criminal Investigations Division and the Housing and Urban Development Office of Inspector General.  The case was prosecuted by Assistant United States Attorney Sean O’Dowd in Albany and Assistant United States Attorney Robert Keenan of the Central District of California. 

SYRACUSE, NEW YORK – Clif J. Seaway, 59, of Granby, New York, Tammy J. LaMere, 45, of Fulton, and Tammy L. Martin, 46, of Carthage, appeared today in United States District Court in Syracuse charged with offenses involving the sexual exploitation of children, announced United States Attorney Richard S. Hartunian.

Each of the three defendants are named in separate but related felony complaints charging them with employing, using, persuading, inducing, or enticing minors to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct over a period of years. The complaints against Seaway and LaMere allege their exploitation of two minors, and the complaint filed against Martin alleges that she exploited those same two minors, as well as a third child. The complaint alleges one of the minors was exploited for nearly ten years.

The charge filed against each of the defendants carries a mandatory minimum sentence of 15 years, and a maximum sentence of 30 years in prison, a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and requires sex offender registration. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

All three defendants made their initial appearances today in Syracuse, New York, before United States Magistrate Judge Thérèse Wiley Dancks, and were detained without bail.

The charges in the complaint are merely accusations. The defendants are presumed innocent until proven guilty.

This case is being investigated by the New York State Police and Homeland Security Investigations with assistance provided by the Onondaga County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, and Assistant United States Attorney Carina Schoenberger. Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

ALBANY, NEW YORK – Edward Werner, age 51 of Middleburgh, New York, pled guilty today to receiving child pornography.

The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.

Werner faces at least 5 years and up to 20 years in prison, and a term of post-imprisonment supervised release of between 5 years and life, when he is sentenced on July 6, 2016 by U.S. District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Werner will also be required to register as a sex offender upon his release from prison.

This case was investigated by the FBI and the Colonie Police Department, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.

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

ALBANY, NEW YORK – Michael G. Isaacson, age 33, of Albany, pled guilty today to distributing and possessing child pornography, announced U.S. Attorney Richard S. Hartunian.

Isaacson faces at least 5 years and up to 20 years in prison, and a term of post-imprisonment supervised release of between 5 years and life, when he is sentenced on July 6, 2016 by U.S. District Judge Gary L. Sharpe.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.  Isaacson will also be required to register as a sex offender upon his release from prison.

As part of his plea, Isaacson admitted that he distributed child pornography files over the Internet to a Colonie Police Department Investigator.  He also admitted to possessing more than 1,000 image files, and more than 30 video files, depicting minors engaged in sexually explicit poses or conduct.  

This case was investigated by the Colonie Police Department and the Federal Bureau of Investigation’s Albany Division, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.

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

ALBANY, NEW YORK – Shawn Taft, age 46, of Amsterdam, New York, pled guilty today to being a felon in possession of five firearms and to distributing heroin.

The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration. 

In May 2014, Taft sold heroin to a confidential informant on two separate occasions in the city of Schenectady.

On July 8, 2015, the U.S. Marshals Service, with assistance from the Amsterdam Police Department, went to arrest Taft at his home.  While arresting him, an officer observed a .22 caliber rifle in a closet in the front bedroom of Taft’s residence.  Officers went on to find four additional firearms in the residence, which were three rifles and a High Standard, model 88, .22 caliber revolver.  The revolver was found in a bag of dog food on the back porch. Taft had previously been convicted of a felony and could not possess a firearm. 

U.S. District Judge Mae A. D’Agostino is scheduled to sentence Taft on June 23, 2016.  Distributing heroin carries a maximum sentence of 20 years in prison, a fine of up to $1 million and a term of supervised release of up to life.  Being a felon in possession of a firearm carries a maximum sentence of 10 years in prison, a fine of up to $250,000 and a term of supervised release of up to 3 years.  A defendant’s sentence is imposed by a judge based on a combination of factors including the U.S. Sentencing Guidelines and relevant statutes.

This case was investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms & Explosives and the U.S. Marshals Service, in conjunction with the Schenectady Police Department and the Amsterdam Police Department.  The case is being prosecuted by Assistant U.S. Attorney Elizabeth R. Rabe.

ALBANY, NEW YORK – Michael VonFricken, age 44, of Troy, New York, pled guilty today to obtaining false receipts for orthodontic services and submitting them to his union’s health care plan, announced United States Attorney Richard S. Hartunian.

VonFricken was charged with health care fraud for obtaining $32,732 in cash reimbursements from the Health and Welfare Plan of the Plumbers and Steamfitters, Local Union Number 7.  Between July 1, 2008 and March 5, 2015, he submitted approximately 17 fake receipts for orthodontic work that he did not receive.

U.S. District Judge Mae A. D’Agostino is scheduled to sentence Michael VonFricken on June 21, 2016.  His brother John VonFricken, age 50, also of Troy, was separately charged with fraudulently obtaining $54,600 in cash reimbursements from the same union.  John VonFricken also pleaded guilty and is scheduled to be sentenced by Judge D’Agostino on June 3, 2016.

The convictions carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case was investigated by the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.

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.

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.

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.

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.

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, 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.

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.

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.

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, 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.

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.

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.

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.

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.

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.

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.

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.

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.