Northern District of New York

SYRACUSE, NEW YORK – Christopher Filippi, 48, of Liverpool, New York, pled guilty today to the entirety of a four-count indictment charging him with the receipt and possession of child pornography, announced United States Attorney Richard S. Hartunian. In entering his guilty pleas before United States District Judge Brenda K. Sannes, Filippi admitted he received and possessed thousands of photographs and videos containing child pornography. A jury trial in the case was to begin on February 9, 2016.

At sentencing on May 27, 2016, Filippi faces a mandatory minimum term of five years in prison and a maximum term of up to twenty years in prison on each count. Sentences are imposed by a judge based upon the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors. In addition to a term of incarceration, Filippi will be required to register as a sex offender and to pay restitution to the victims depicted in the child pornography images he possessed. He will also forfeit the computer equipment used in his crimes and be required to serve a term of supervised release for a minimum of five years and up to life.

The case was investigated by the Federal Bureau of Investigation ("FBI") with assistance from the Syracuse Police Department, and is being prosecuted by Assistant U.S. Attorney Nicolas Commandeur.

ALBANY, NEW YORK – Shukri Abdullah, age 43, of Albany, New York, was arraigned yesterday on an indictment charging him with possession with the intent to distribute synthetic cannabinoids with brand names like Scooby Snax, Geeked Up, and Green Giant. 

The announcement was made by United States Attorney Richard S. Hartunian, Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration, and Albany County Sheriff Craig D. Apple, Sr.

The indictment alleges that on August 20, 2015, Shukri, a co-owner of a deli in Albany, New York, possessed with the intent to distribute synthetic cannabinoids. Synthetic cannabinoids — also known as “Spice” and “K2” — are substances designed to mimic the effects of cannabis, and are often sold as a smokable drug.

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

Abdullah faces up to 20 years of imprisonment and a $1,000,000 fine, if convicted.  A sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.  Abdullah, who was indicted on December 23, 2015, was arraigned on February 2, 2016 before United States Magistrate Judge Christian F. Hummel.  He was detained pending trial before United States District Judge Gary L. Sharpe.

The case is being investigated by the Drug Enforcement Administration and the Albany County Sherriff’s Office, and is being prosecuted by Assistant United States Attorney Wayne A. Myers.

SYRACUSE, NEW YORK – Loren Woodard, 34, of Calcium, New York and Corey Daniels, 33, of Watertown, New York, were arrested on federal firearms charges, announced United States Attorney Richard S. Hartunian.

Woodard appeared in court yesterday and Daniels appeared in court today on a ten-count indictment alleging possession of firearms by a convicted felon and possession of stolen firearms. Woodard is also charged with possession of a firearm with an obliterated serial number. The indictment alleges felony violations with respect to seven (7) different firearms, including multiple pistols and long guns.

If convicted, each defendant faces a maximum sentence of ten (10) years imprisonment, a term of supervised release of up to three (3) years following imprisonment, and a fine of up to $250,000. Actual sentences are typically less than the maximum penalties. Sentences are imposed by a judge based on U.S. Sentencing Guidelines and other statutory factors.

The defendants appeared in federal court in Syracuse, New York, before United States Magistrate Judge Andrew T. Baxter.

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

This case is being investigated by the United States Bureau of Alcohol, Tobacco, Firearms & Explosives ("ATF") and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Nicolas Commandeur.

SYRACUSE, NEW YORK – Patique Donerlson, 34, of Syracuse, New York, was sentenced today to 78 months in prison to be followed by 3 years of supervised release, as a result of her conviction for three counts of aggravated identity theft and three counts of misuse of a social security number, announced United States Attorney Richard S. Hartunian. Donerlson was also ordered to pay $12,239 in restitution to the Internal Revenue Service ("IRS").

Donerlson’s sentence stemmed from her scheme to obtain federal income tax refunds by preparing and electronically filing fraudulent tax returns using other people’s personal information (names, dates of birth, and social security numbers). In the commission of these crimes, the defendant obtained the personal identification information in various ways, including some from persons whose taxes she had prepared in the past, without obtaining their permission and without their knowledge for the current filings. In each instance, the defendant fraudulently claimed these individuals had self-employment income and were eligible for an earned income tax credit from the IRS in the form of a refund, which was false. She then directed the IRS to issue the fraudulent tax refunds for these individuals on a prepaid debit card in the taxpayer’s name, and requested they be mailed to an address belonging or accessible to Donerlson.

This case was investigated by the Social Security Administration and Internal Revenue Service, Criminal Investigations, and was prosecuted by Assistant U.S. Attorney Carl G. Eurenius

SYRACUSE, NEW YORK – Michael Caraher, 26, of Morrisville, New York, was arrested yesterday on charges of receipt and possession of child pornography following the execution of a search warrant at his residence by Special Agents of the Federal Bureau of Investigation ("FBI"), announced United States Attorney Richard S. Hartunian.

The defendant appeared yesterday in federal court in Syracuse, New York, before United States Magistrate Judge Andrew T. Baxter. He is being held in custody pending a detention hearing set for Tuesday, February 2, 2016.

If convicted of receiving and possessing child pornography, Michael Caraher faces a mandatory minimum sentence of five (5) years imprisonment and a maximum term of 20 years imprisonment, a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration as a sex offender. Actual sentences are typically less than the maximum penalties and are imposed by a judge based on U.S. Sentencing Guidelines and other statutory factors.

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

This case was investigated by The FBI, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.

ALBANY, NEW YORK – Roberta L. Rivers, age 57, of South Glens Falls, New York, was arraigned yesterday on an indictment accusing her of stealing $112,000 in benefits from the Social Security Administration (SSA).

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

Rivers is charged with theft of government property, Supplemental Security Income (SSI) fraud, and Social Security fraud. The indictment alleges that Rivers, while collecting SSI and survivors insurance benefits, concealed and failed to disclose that she had been remarried and resided with her new husband, a fact that she knew would disqualify her from receiving benefits.

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

Rivers faces up to 5 years of imprisonment and a $250,000 fine if convicted.  Actual sentences are typically less than the maximum penalties.  Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors.

Rivers, who was indicted on January 20, 2016, was arraigned yesterday before U.S. Magistrate Judge Daniel J. Stewart.  She was released on a bond pending a trial scheduled for March 28, 2016 before Senior U.S. District Judge Gary L. Sharpe.

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

ALBANY, NEW YORK – Karen L. Sowman, age 55, of Preston Hollow, New York, was arraigned today on an indictment accusing her of stealing $69,000 in benefits from the Social Security Administration (SSA).

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

Sowman is charged with theft of government property.  The indictment alleges that Sowman took and spent Social Security benefit payments deposited into her deceased mother’s bank account knowing that the money was not hers.

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

Sowman faces up to 10 years of imprisonment and a $250,000 fine if convicted.  Actual sentences are typically less than the maximum penalties.  Sentences are imposed by a judge based on U.S. Sentencing Guidelines and other statutory factors.

Sowman, who was indicted on January 20, 2016, was arraigned today before Magistrate Judge Daniel J. Stewart.  She was released on her own recognizance pending a trial scheduled for March 28, 2016 before U.S. District Judge Mae A. D’Agostino.

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

SYRACUSE, NEW YORK–Lorraine Lorini, 55, of Nedrow, New York, pleaded guilty to one felony count of theft of government money, announced United States Attorney Richard S. Hartunian. Lorini will be sentenced in June and faces up to ten years in prison and a fine of up to $250,000, although under the United States Sentencing Guidelines her actual sentence may be less.

Lorini admitted that she applied for and received pension benefits from the Pension Benefit Guaranty Corporation (PBGC), an independent agency of the United States, on behalf of her mother, who was already deceased. Lorini also admitted that she collected more than $37,000 in pension benefits in her deceased mother’s name and that she retained this money for her own use. As part of her plea, Lorini agreed to make full restitution to PBGC.

This case was investigated by the Office of Inspector General for PBGC, and it is being prosecuted by Assistant United States Attorney Michael F. Perry.

ALBANY, NEW YORK – Jeffrey Gundel, age 51, an orthopedic surgeon from Gansevoort, New York, was sentenced today to 78 months in prison for illegally authorizing the distribution of tens of thousands of oxycodone pills.

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

On December 3, 2014, Gundel pled guilty to one count of unlawful distribution of oxycodone.  As part of his guilty plea, Gundel admitted that, between May 2011 and April 2014, he wrote over 200 prescriptions authorizing the dispensation of at least 59,520 30-milligram oxycodone tablets for no legitimate medical purpose.  Gundel also admitted that he received cash kickbacks after co-conspirators filled the prescriptions and sold the oxycodone pills on the black market.  On several occasions, Gundel prescribed oxycodone to undercover law enforcement agents he never met, treated, or communicated with in any way.

U.S. District Judge Mae A. D’Agostino also sentenced Gundel to a term of 3 years of supervised release, to be served following his release from prison.  In sentencing Gundel, Judge D ’Agostino told him that he “became a common criminal drug dealer” and that there was “no way to quantify how many people became addicted to oxycodone because of your actions.”

Oxycodone is an addictive and often abused Schedule II narcotic prescribed to treat severe pain.  The typical street value of a single tablet of the type prescribed by Gundel ranges from $30 to $45.

United States Attorney Richard S. Hartunian said:  “Prescription drug abuse kills thousands of Americans every year and results in countless others transitioning to heroin to support their opioid addictions.  Doctor Gundel’s reprehensible violation of his duties as a physician caused the streets of this District to be flooded with tens of thousands of deadly, addictive oxycodone pills.  Those who misuse their privilege to prescribe and distribute controlled substances need to understand that they will be investigated and prosecuted just like the criminals selling heroin and other dangerous drugs on the street.”

Special Agent in Charge James J. Hunt said:  “Diverted oxycodone is today’s ‘gateway drug’ for heroin, leading to tens of thousands of overdose deaths in the U.S last year.  This guilty plea reiterates that doctors who illegally prescribe pain medication for profit are fueling heroin abuse throughout America’s cities.  I commend our law enforcement partners and the DEA’s Albany District Office for their diligent efforts throughout this investigation.”    

This case was investigated by the Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Wayne A. Myers.

ALBANY, NEW YORK – Joseph M. Jackson, age 36, of Stephentown, New York, pleaded guilty today to being a felon in possession of a firearm.

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

On September 27, 2015, Jackson, a felon, was found to be in possession of a Rohm Gesellschaft .38 caliber revolver, one box of Winchester .38 caliber live ammunition and one round of 9x19 caliber ammunition. The gun and the ammunition were found in a safe; the safe was in a car that was registered to Jackson.

Jackson faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years when he is sentenced on May 23, 2016 by U.S. District Judge Mae A. D’Agostino.  Actual sentences are typically less than the maximum penalties.  Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors.

This case is being investigated by the ATF and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Emily Farber.

SYRACUSE, NEW YORK – Gaetan "Gates" Dinelle, age 42, of Cornwall, Ontario, was sentenced yesterday to life imprisonment for running a drug trafficking organization that made more than $10 million in profits in a single year.

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

Dinelle and co-defendant Michael C. "Mickey" Woods were convicted following a six-day jury trial in July 2015, which was presided over by Senior United States District Judge Norman A. Mordue. Judge Mordue sentenced Woods to life imprisonment on January 14, 2016.

The evidence at trial proved that Dinelle assisted Woods in running a vast international marijuana operation from Cornwall, Ontario, Canada, which operated from about 2005 until 2008. During the trial in federal court in Syracuse, witnesses testified that Woods procured large quantities of marijuana from his sources in Canada, and with Dinelle, arranged for it to be smuggled across the border into the United States. Couriers selected and supervised by Woods and Dinelle delivered the marijuana to buyers throughout the Eastern United States.

The prosecution of Dinelle, which began with an indictment in November 2008, involved the extradition of 15 people from Canada, including Woods and Dinelle, in one of the largest uses of the extradition treaty between the two countries in a single case.

"Gaetan Dinelle supervised a massive drug trafficking organization and, like his boss, Mickey Woods, was sentenced accordingly," stated U.S. Attorney Richard S. Hartunian. "Our resolve to bring cross-border criminals to justice is reflected in this lengthy and successful case, which is the product of great cooperation between agencies on both sides of the border."

DEA Special Agent in Charge James J. Hunt stated, "Two defendants, Mickey Wood and Gaetan Dinelle, were both sentenced to life imprisonment within a week apart. These sentencings are indicative of the successful law enforcement collaboration entailed with the dismantlement of Mickey Woods’ multi-million dollar marijuana trafficking ring that operated on the Northern Border. I commend our Canadian, federal, state and local counterparts who worked on this investigation."

Between 2006 and February 2008, law enforcement officers seized approximately $2 million dollars in currency representing proceeds of marijuana trafficking and approximately 400 kilograms (nearly 1,000 pounds) of marijuana from couriers working for Woods and Dinelle.

Evidence during the trial included law enforcement estimates that the Woods organization distributed more than 22,000 pounds of high-grade marijuana with gross wholesale receipts of approximately $47 million.

This case was investigated primarily by the Drug Enforcement Administration and Homeland Security Investigations, and was prosecuted by Assistant U.S. Attorney Carl G. Eurenius. The Criminal Division’s Office of International Affairs Acting Associate Director, Lisa Roberts, and former International Affairs Specialist Benjamin Kurland provided significant assistance throughout the extradition stage of the prosecution.

ALBANY, NEW YORK – Gnoan Pierre Kablan, age 52, of Latham, New York, pled guilty today to aiding and assisting in the preparation of false tax returns.

The announcement was made by United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office. 

As part of his plea, Kablan admitted that he prepared 16 tax returns that contained false information.  These returns, which Kablan prepared for clients for the tax years 2008 through 2011, contained false deductions for charitable gifts, false deductions for unreimbursed employee expenses, and false solar property and energy efficiency credits.  These false deductions and credits gave his taxpayer clients refunds that they were not entitled to.

Kablan faces up to 3 years in prison, a maximum fine of $100,000, and a maximum term of supervised release of 1 year when he is sentenced on May 23, 2016 by United States District Judge Mae A. D’Agostino.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors.  Kablan may also be ordered to pay restitution to the government in the amount of the tax loss that his conduct is found to have caused.

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

ALBANY, NEW YORK – A jury on Thursday convicted Stacie Demers, age 53, of Constable, New York, of a drug conspiracy involving 1,000 kilograms or more of marijuana.

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

Demers faces at least 10 years and up to life in prison, and a term of post-imprisonment supervised release of at least 5 years and up to life, when she is sentenced on May 19, 2016 by United States District Judge Mae A. D’Agostino. 

The jury convicted Demers following a three-day trial in Albany.  The evidence at trial demonstrated that Demers, who lived on the Canadian border in Northern New York, worked with members of her family and other co-conspirators to smuggle tens of thousands of kilograms of marijuana from Canada and into the United States.  After the loads of marijuana crossed the border, Demers stored the marijuana in a shed behind her home and in other places. The marijuana was then picked up by drivers who transported it to street-level marijuana dealers throughout the Eastern United States. 

This case was investigated by the Drug Enforcement Administration, New York State Police, and United States Border Patrol, and is being prosecuted by Assistant U.S. Attorneys Katherine E. Kopita and Cyrus P.W. Rieck.

SYRACUSE, NEW YORK – Joseph Jenkins, 46, of Geneva, N.Y., was sentenced today to 18 months in prison in connection with his conviction for perjury, following a jury trial, on April 1, 2015. Jenkins was also ordered to pay a $5,000 fine and a special assessment of $100, and will serve a one year term of supervised release when released from prison.

The perjury conviction stemmed from Jenkins’ appearance in federal court in Syracuse, New York on October 4, 2011, before United States Magistrate Judge Andrew T. Baxter to answer child pornography charges. At his initial appearance, Jenkins completed a financial affidavit under penalty of perjury seeking court-appointed counsel. In the application for assigned counsel, Jenkins failed to disclose his ownership of investment and bank accounts worth over $200,000 and concealed his ownership of boats and recreational vehicles. As a result, Jenkins was appointed an attorney paid for by the Court. Jenkins had an assigned lawyer for nearly a year before prosecutors learned of his false statements about his assets and notified the court. Subsequently, the defendant was found ineligible for assigned counsel and was ordered to reimburse the United States District Court $8,049.12.

With respect to his charges of transportation and possession of over 3,800 images and 100 videos of child pornography, Jenkins was convicted on February 6, 2014, following a jury trial and was sentenced on November 18, 2014, to a term of imprisonment of 225 months, a fine of $40,000, and was ordered to pay $12,000 in restitution to the victims of his crimes. The term of incarceration imposed today on the perjury conviction will run consecutively to his sentence for the child pornography offenses.

This case was investigated by Homeland Security Investigations and was prosecuted by Assistant U.S. Attorney Tamara Thomson.

ALBANY, NEW YORK:  Medical Reimbursement Systems, Inc., a Massachusetts-based company that provides billing, coding, compliance and revenue cycle services to hospitals and physician practices, will pay $500,000 under the False Claims Act to resolve allegations that it submitted false claims to the TRICARE Program regarding a client’s eligibility to receive bonuses intended for providers who render care in qualifying Health Professional Shortage Areas (“HPSAs”), announced United States Attorney Richard S. Hartunian.

TRICARE is the uniformed health care program for active duty and retired service members, National Guard and Reserve members, family members, survivors and other eligible beneficiaries.  HPSAs are geographic areas, population groups, or facilities that lack sufficient health care providers to meet the health care needs of the area or population.  The federal government has implemented various reimbursement policies designed to encourage providers to treat beneficiaries in these underserved areas.  Physicians who provide covered services in areas designated as geographic HPSAs are entitled to receive 10-percent bonus payments above the amount ordinarily reimbursed for Medicare-covered professional services.  These “HPSA bonuses” are also available to providers who treat TRICARE beneficiaries in geographic areas that qualify for the bonus from Medicare.  To obtain HPSA bonuses from TRICARE, billers must certify to the government that services were rendered in a qualifying HPSA.

In May 2009, Medical Reimbursement Systems, Inc. (“the Company”) entered into a billing services agreement with a physician group (“the Practice”) in Watertown, New York.  Under that agreement, the Company agreed to provide coding, billing, physician education, and data entry services for the Practice.  In exchange, the Company was paid a percentage of its net collections from the Practice.

Shortly after the Company and the Practice entered into that agreement, they began discussions about the Practice’s eligibility to receive HPSA bonuses from TRICARE.  Despite the Company being informed that the Practice was not in a qualifying HPSA and therefore not entitled to the bonuses, the Company, at the Practice’s request, continued to certify to TRICARE that services were rendered in a qualifying HPSA.  Significantly, according to the settlement agreement, a Company employee wrote the Company’s vice-president in 2009 to explain that they were billing TRICARE as if the Practice was in a “geographical area and they should not be.”  The following week, that same employee reiterated that the Practice does not qualify for the HPSA bonus, and warned the Company’s vice president:  “We need to stop billing this before we get in trouble.”  The Company continued to bill TRICARE for HPSA bonuses on the Practice’s behalf through October 2014.

The Company, which accepted responsibility for the facts set forth in the settlement agreement, acknowledged that it was inappropriate under the circumstances for it to have sought HPSA bonuses from TRICARE for the Practice.  It also agreed to hire an outside consultant to conduct TRICARE-specific billing training for its staff, and to appoint a new compliance officer with appropriate training or certification who will report directly to the Chief Executive Officer and whose responsibilities will include ensuring compliance with the statutes, regulations, and guidelines applicable to federal healthcare programs.

United States Attorney Hartunian said: “Healthcare providers rely on billing companies to assist them in processing claims in accordance with applicable statutes and regulations.  While Medical Reimbursement Systems, Inc. should not have submitted claims for HPSA bonuses on its client’s behalf in these circumstances, I commend the Company and its management for accepting responsibility for this issue and for agreeing to implement forward-looking compliance measures to assure adequate systems are in place to facilitate and promote ethical and legal conduct.”

“This civil settlement demonstrates the continued commitment of the Defense Criminal Investigative Service (DCIS), partnering with the Defense Health Agency (DHA) and the United States Attorney’s Office for the Northern District of New York, to protect military members and their families and every other American taxpayer from those who seek to exploit our nation’s healthcare programs, including TRICARE,” said Craig W. Rupert, Special Agent in Charge, DCIS Northeast Field Office, United States Department of Defense Office of the Inspector General.  “A company’s organized false and inappropriate billing, either through fraudulent schemes or willful ignorance, steals away hard-earned tax dollars, erodes public confidence, and undermines the mission of our military.  We will continue to tirelessly pursue and investigate healthcare fraud allegations in order to shield America’s investment in national defense.”

Today’s settlement marks the fourteenth matter that this office, working in partnership with DCIS and DHA, has resolved since July 2015 involving improper claims for HPSA bonuses from TRICARE.  Combined, these cases have returned $2,947,322.41 to TRICARE to continue to provide health care to members of our Nation’s armed services and their families.  The United States was represented in each of these cases by Assistant United States Attorney Adam J. Katz.

ALBANY, NEW YORK – Albany, NY - U.S. Attorney Richard S. Hartunian announced today that the U.S. Attorney’s Office for the Northern District of New York collected more than $32 million in civil and criminal penalties in fiscal year 20151. Of this amount, $4,792,446 was collected from criminal prosecutions; $8,057,372 was collected via the forfeiture of money and other assets that represented the proceeds of criminal conduct or property used to commit such conduct; $19,210,739 was collected in civil cases; and an additional $508,916 was collected in civil cases worked in conjunction with other U.S. Attorney’s Offices and agencies in the Department of Justice.

1 The federal fiscal year runs from October 1st to September 30th.

Nationally, U.S. Attorney General Loretta E. Lynch announced that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015 – more than seven and a half times the appropriated $2.93 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.

"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse," said Attorney General Loretta Lynch. "The collections we are announcing . . . demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work."

United States Attorney Richard S. Hartunian said, "Recovering ill-gotten gains from wrongdoers is an important part of our work to protect the public and secure justice for all. Such recoveries remove the incentive for improper conduct and fund restitution for victims and other important programs. These collections results demonstrate the value of using all available remedies to address violations of law fairly."

Notable cases in which funds were recovered by the U.S. Attorney’s Office during fiscal year 2015 include the following:

Allegations of fraud perpetrated against Disadvantaged Business Enterprise program:

HD Supply Waterworks, the Nation’s largest supplier of water, sewer, fire protection and storm drain products, paid the United States $4,945,000 under the False Claims Act to resolve allegations that it participated in a scheme designed to take advantage of the Disadvantaged Business Enterprise (DBE) program in order to obtain subcontracts on federally-funded projects. The DBE program provides opportunities for businesses owned by socially and economically disadvantaged individuals to perform work on projects financed, at least in part, by the federal government. The settlement resolved allegations that Waterworks enabled various prime contractors to represent falsely that a now-defunct DBE, American Indian Builders & Suppliers, had performed commercially useful functions on federally-funded projects when, in reality, the prime contractors worked directly with Waterworks and used the DBE as a pass through.

Hospital and physician combine to pay to resolve billing improprieties self-disclosed by the hospital:

Oswego Hospital, a 164-bed acute care community hospital located in Oswego, New York, agreed to pay $1,456,457.33 to resolve False Claims Act liability stemming from healthcare billing improprieties that the hospital self-disclosed to the federal government. Dr. Vilas Patil, a physician formerly working as an independent contractor with Oswego Hospital, agreed to pay $204,365.97 to resolve False Claims Act liability in connection with a related investigation. The combined recovery to the state and federal governments was $1,660,823.30. The improprieties centered on billings that were unsupported by valid medical records and "repeat notes." These were instances where a patient’s chart would cover multiple days of inpatient services but the same treatment note was used for each day. The medical records therefore failed to support that any distinct services were rendered (making it improper to bill) and were of little to no use to the patients or subsequent providers trying to learn the patient’s mental health history.

Securities fraud conviction nets large restitution recovery:

On May 16, 2001, Paul Ryan was sentenced to be imprisoned for 37 months and to pay restitution in the amount of $2,881,662.90 to Albany Savings Bank (known as First Albany) in connection with his securities fraud conviction. After his release from prison, Ryan became employed by Integra Networks, Inc., and arranged for compensation in the form of company stock transferred to a Trust he established. Upon learning of the stock, the United States initiated an investigation into whether the transfers were improper. Prior to instituting an action, the United States was informed that Mr. Ryan wished to avoid further litigation and was willing to arrange the transfer of Integra stock to First Albany in order to satisfy the remaining balance of his restitution obligation. After successfully negotiating an in-kind stock transfer to the victim, stock valued at $2,634,035.71 was issued to First Albany, resulting in full satisfaction of the court-ordered restitution.

Government Forfeitures involving synthetic marijuana distributors:

The United States forfeited $1,707,988.11 from synthetic marijuana distributors, Eagle Eye Products, Inc., & Canyon Novelty Sales, Inc. et al., based in California but having shipped synthetic marijuana to the Northern District of New York for distribution and sale at various head shops throughout Central New York. An additional $39,652.39 was seized and forfeited from the owner of Zonen LTD, a head shop based in the Northern District of New York which purchased and sold synthetic marijuana products, such as "bizarro" and "spice." The United States also forfeited $103,253.22 in U.S. Currency and a 2010 Chevrolet Express Cargo Van from members of the Mansour synthetic marijuana distribution conspiracy, involving the sale of packets of synthetic marijuana at various locations throughout the City of Syracuse, including corner shops.

All U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the U.S. Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration, and the U.S. Department of Education.

SYRACUSE, NEW YORK – A federal jury today convicted Derrick Wilson, a/k/a D-Ellis and Sonny Black, age 36, of Syracuse, of participating in a heroin and crack cocaine conspiracy, following a week-long trial.

The announcement was made by United States Attorney Richard S. Hartunian, Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration (“DEA”) and Syracuse Police Chief Frank L. Fowler.

“This verdict is the culmination of a long investigation into the conduct of people who poisoned our community and destroyed lives by pushing large quantities of heroin and crack cocaine,” stated United States Attorney Richard S. Hartunian. “Thanks to law enforcement collaboration, the leader and all twelve other charged defendants have been convicted, and this drug crew has been dismantled.  We are committed to continuing to work together to take drug dealers off the streets of Syracuse and beyond.”

DEA Special Agent in Charge James J. Hunt stated, “Heroin and crack cocaine trafficking is a scourge throughout American cities, large and small.  No city is immune from drug addiction as long as there are drug suppliers profiting off the sale of poison.  Today's conviction of Derrick Wilson has sent a message to drug traffickers that their illegal profit off drug sales will only lead them to jail and long prison sentences.  I commend the U.S. Attorney’s Office Northern District, the Syracuse Police Department and the DEA’s Syracuse Resident Office for their diligent efforts throughout this investigation, prosecution and conviction.”

Syracuse Police Chief Frank L. Fowler stated, “Our department is pleased with the outcome of this federal prosecution. Our joint efforts will make Syracuse safer and we intend to continue these efforts against those that deal or traffic in drugs in our communities. We look forward to continuing our joint efforts in the coming year.”

Wilson faces at least 20 years and up to life in prison when he is sentenced on May 20, 2016 by Chief United States District Judge Glenn T. Suddaby.  Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors.

The evidence at trial, some of which was obtained through court-ordered wiretaps, showed that: Wilson was the head of a conspiracy to distribute large quantities of crack cocaine and heroin in the Syracuse area from April 2013 through June 18, 2014, when arrests were made; Wilson made arrangements for heroin and cocaine powder from New York City to be delivered to him in Syracuse; Wilson had the cocaine powder processed into crack cocaine and packaged for sale; Wilson had the heroin packaged in distinctly marked plastic bags for “branding” purposes and distribution; and Wilson had members of the conspiracy sell the crack cocaine and heroin.  

Wilson represented himself during the trial, with an assigned attorney present to advise him on legal matters.  He was the last of thirteen defendants to be convicted of participating in this conspiracy to distribute heroin and crack cocaine.  Wilson’s twelve co-defendants all pled guilty and six of them have been sentenced, while six are scheduled to be sentenced in February and March, as follows:

Name

Age

Residence

Sentence

Jeffrey Dowdell

37

Syracuse, NY

Scheduled for 2/25/2016

Tashawn Albert

28

Syracuse, NY

Scheduled for 2/26/2016

Kyle Dowdell

28

Syracuse, NY

Scheduled for 2/12/2016

Quonta Albert

23

Syracuse, NY

60 months

General Davis, Jr.

29

Clay, NY

130 months

Willie Strong, Jr.

37

Liverpool, NY

120 months

Jamall Harris

36

Syracuse, NY

Scheduled for 3/4/2016

James Handford

38

Syracuse, NY

120 months

Zephaneea Dowdell

33

Syracuse, NY

Scheduled for 3/1/2016

Lashandrea Johnson

31

Syracuse, NY

13 months

James Hudson

25

Syracuse, NY

60 months

Darnyl Apgar

28

Syracuse, NY

Scheduled for 2/29/2016

 

This case was investigated by the United States Drug Enforcement Administration (“DEA”) and the Syracuse Police Department, with assistance from the Federal Bureau of Investigation (“FBI”), and is being prosecuted by Assistant U.S. Attorneys Carla Freedman and Nicolas Commandeur.

ALBANY, NEW YORK – A federal jury today convicted Steven Ray Morgan, age 48, of Schenectady, New York, of five felony charges including conspiracy to distribute crack cocaine and possession of a firearm by a felon.  

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

The jury convicted Morgan of four counts relating to crack cocaine and one count of possession of a firearm by a felon. The jury acquitted Morgan on a sixth charge, of possessing a firearm in furtherance of a drug trafficking offense. 

Morgan faces at least 10 years and up to life in prison, as well as at least 8 years of post-imprisonment supervised release, when he is sentenced on May 18, 2016 by Senior United States District Judge Thomas J. McAvoy. Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors. 

The jury convicted Morgan following a four-day trial.  The evidence at trial demonstrated that Morgan worked with others to distribute crack cocaine in and around Schenectady, that he and others stored drugs in a Schenectady stash house for purposes of distribution, and that the amount of crack cocaine involved was 28 grams or more.  The evidence also demonstrated that Morgan illegally possessed a loaded 9 mm handgun that was stored with the drugs. 

A prior jury trial in 2009 resulted in convictions on all six charges.  However, in 2015, the United States Court of Appeals for the Second Circuit reversed those convictions and remanded the case for a new trial. 
 
This case was investigated by the Drug Enforcement Administration, and was prosecuted on retrial by Assistant United States Attorney Sean O’Dowd. 

ALBANY, NEW YORK – William Heriberto Reyes-Morales, age 42, of Guatemala, pled guilty on Friday to illegally re-entering the United States.

The announcement was made by United States Attorney Richard S. Hartunian and Michael T. Phillips, Buffalo Field Office Director of Enforcement & Removal Operations for U.S. Immigration and Customs Enforcement (ICE).

Reyes-Morales pled guilty to violating the Immigration and Nationality Act (INA), which prohibits previously removed aliens from being found in the United States without permission. 

ICE officers first encountered Reyes-Morales in the Montgomery County Jail on July 8, 2015.  A check of Reyes-Morales’s fingerprints indicated that he had been deported and removed from the United States to Guatemala a total of four times, the most recent removal being on July 19, 2012. 

Reyes-Morales faces up to 20 years in prison and a maximum $250,000 fine when he is sentenced on May 11, 2016 by Senior United States District Judge Thomas J. McAvoy.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors.  Following his term of imprisonment, Reyes-Morales will be processed for removal from the United States.

This case was investigated by U.S. Immigration and Customs Enforcement and is being prosecuted by Edward P. Grogan.

BINGHAMTON, NEW YORK – Alphonso Dennis, age 34, of Binghamton, New York, pleaded guilty on Friday to 4 counts of sex trafficking of a child and 2 counts of prostitution of a child.

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

Sentencing is scheduled for May 27, 2016 before Senior United States District Judge Thomas J. McAvoy. Dennis faces a minimum term of 10 years and up to life in prison, as well as a minimum period of supervised release – to be served following his release from prison – of 5 years and up to life. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors. Upon release, Dennis will also have to register as a sex offender.

From about August 2014 to November 2014, in Broome County, Dennis hosted two minors at his apartment, who met with men in that apartment for the purpose of engaging in sex acts for money. Dennis also transported and caused the minors to be transported to various locations in order to meet with men, all for the purpose of having the minors engage in commercial sex acts. Throughout this time period, the minors were 15 years old and 14 years old, respectively, and Dennis knew that they were minors.

Using a cell phone and while in his apartment, Dennis took photos and caused photos to be taken of the minors in sexually provocative poses when they were barely dressed, and then used those photographs in advertisements placed on an Internet advertising site.

As men called the phone number listed in the advertisements, Dennis arranged for the men to meet with the minors. Dennis told the minors how much money to charge the men and required that the minors surrender to him 50% of the money that they received from the men.

The prosecution stems from an investigation into a child prostitution ring conducted by the Federal Bureau of Investigation, the New York State Police, and the Vestal Police Department.

The case is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.

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

LBANY, NEW YORK – Scott A. Clapper, Jr., age 31, of Schoharie, pleaded guilty today to 13 felony counts of making false statements and submitting false documents in connection with government benefits he received following Hurricane Irene.

The announcement was made by United States Attorney Richard S. Hartunian and Edward Nasiatka, Special Agent in Charge of the Department of Homeland Security’s Office of Inspector General, New York Field Office. 

Clapper made false statements and submitted false documents to the Federal Emergency Management Agency (FEMA) following Hurricane Irene, which struck New York in August 2011 and made uninhabitable the Schoharie County home in which Clapper was living at the time. 

Clapper told FEMA that his monthly rent at his new home, in Westerlo, was $1,200, when it was really $500.   In an effort to document the $1,200 monthly rent, Clapper also submitted to FEMA fake lease agreements and rent receipts containing the forged signature of his landlord.  Clapper received $16,426 from FEMA as a result of these falsehoods.

Clapper faces a maximum imprisonment term of 30 years and a maximum fine of $250,000 when he is sentenced on May 9, 2016 by Senior United States District Judge Thomas J. McAvoy.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors.

This case was investigated by the New York Field Office of the Department of Homeland Security’s Office of Inspector General, and is being prosecuted by Assistant United States Attorney Michael Barnett.

SYRACUSE, NEW YORK – Michael C. “Mickey” Woods, age 45, of Cornwall, Ontario, was sentenced today to life imprisonment for running a drug trafficking organization that made more than $10 million in profits in a single year.

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

Woods and co-defendant Gaetan Dinelle were convicted following a six-day jury trial in July  2015, which was presided over by Senior United States District Judge Norman A. Mordue.  Judge Mordue is scheduled to sentence Dinelle on January 21.

The evidence at trial proved that Woods, assisted by Dinelle, ran a vast international marijuana operation from Cornwall, Ontario, Canada, which operated from about 2005 until 2008.  During the trial in federal court in Syracuse, witnesses testified that Woods procured large quantities of marijuana from his sources in Canada, and with Dinelle, arranged for it to be smuggled across the border into the United States. Couriers selected and supervised by Woods and Dinelle delivered the marijuana to buyers throughout the Eastern United States.

The prosecution of Woods, which began with an indictment in November 2008, involved the extradition of 15 people from Canada, including Woods and Dinelle, in one of the largest uses of the extradition treaty between the two countries in a single case.

“Because of the excellent and sustained cooperation among U.S. and Canadian authorities, Mickey Woods received a sentence befitting the vast drug trafficking organization that he ran,” stated U.S. Attorney Richard S. Hartunian.  “This case shows how committed we are to bringing cross-border criminals to justice.”

Between 2006 and February 2008, law enforcement officers seized approximately $2 million dollars in currency representing proceeds of marijuana trafficking and approximately 400 kilograms (nearly 1,000 pounds) of marijuana from couriers working for Woods and Dinelle. Evidence during the trial included law enforcement estimates that the Woods organization distributed more than 22,000 pounds of high-grade marijuana with gross wholesale receipts of $47.3 million.

This case was investigated by the U.S. Drug Enforcement Administration and was prosecuted by Assistant U.S. Attorney Carl G. Eurenius. The Criminal Division’s Office of International Affairs Acting Associate Director, Lisa Roberts, and former International Affairs Specialist Benjamin Kurland provided significant assistance throughout the extradition stage of the prosecution. 

ALBANY, NEW YORK – Jeragh Powell, age 25, and Kimberly Powell, age 37, both of Schenectady, New York, were arraigned today on an indictment charging them with mail fraud in connection with a lottery scheme that targeted elderly victims.

The announcement was made by United States Attorney Richard S. Hartunian and Shelly A. Binkowski, Inspector in Charge, United States Postal Inspection Service, Boston Division.

The indictment alleges that the Powells mailed documents that falsely informed elderly victims that they had won lottery prizes and were required to pay fees and taxes in order to claim their prizes.  Members of the conspiracy also called elderly victims with instructions on mailing the  payments for sham taxes and fees.  Elderly victims sent tens of thousands of dollars to the defendants and their co-conspirators, and the defendants then sent a portion of the payments they received to co-conspirators in Jamaica, Jeragh Powell’s country of citizenship.

The Powells were indicted on January 6, 2016.  They face up to 20 years of imprisonment and a $250,000 fine, if convicted.  They were arraigned today before Magistrate Judge Christian F. Hummel and detained pending their satisfaction of a Court-ordered bond.  Their trial is scheduled to take place before District Judge Mae A. D’Agostino.

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

This case is being investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.

Preet Bharara, the United States Attorney for the Southern District of New York, announced today that RICKY PATRICK HESTER was sentenced to 97 months’ in prison by United States District Judge Vincent L. Briccetti for receipt, distribution, and possession of child pornography.  The sentencing today followed HESTER’s conviction on June 23, 2015, following a jury trial before Judge Briccetti. 

U.S. Attorney Preet Bharara said:  “Ricky Patrick Hester collected, shared, and distributed appalling depictions of children being sexually abused.  This case reinforces the need for law enforcement to remain vigilant in its efforts to protect children from those who prey on them.”

According to the Indictment and the evidence at trial:

From at least as early as November 2012, HESTER used a Yahoo! email account, a file-sharing account on Dropbox.com, as well as his personal cellphone, to collect and share images of children being forced into sexual activity. 

On December 18, 2013, HESTER was interviewed by agents with Homeland Security Investigations (“HSI”) and he admitted that he had used his Yahoo! email account to send child pornography, that his preference was for boys as young as four years old, that he had used Dropbox to trade child pornography with others, and that he stored child pornography on his cellphone.

HESTER’s cellphone, which was seized by HSI on December 18, 2013, during a search warrant of HESTER’s dorm room at West Point, contained approximately 1,200 images and videos of children engaging in sexual activity.

Evidence at trial included approximately 100 emails sent or received by HESTER.  In many of these emails, HESTER requested videos and images of “kids being forced to do stuff,” “boys being tied up and peed on,” and “man boy hardcore.”  In numerous emails, he indicated a preference for boys aged four to 10 years old.

HESTER entered the United States Military Academy at West Point as a cadet in August 2009.  He took a sabbatical from West Point from August 2011 through August 2012.  He returned to West Point in the fall of 2012.  At the time of his arrest, on December 19, 2013, HESTER was one semester away from graduation.

HESTER, 25, lived in Granger, Indiana, from his arrest until his conviction.  Judge Briccetti remanded him following his conviction.  In sentencing HESTER, Judge Briccetti underscored that the “evidence of guilt was overwhelming,” and that the images that HESTER possessed and traded depicted “the torture of children.”

Mr. Bharara praised the outstanding investigative work of the Department of Homeland Security.  He also thanked the Army Criminal Investigation Command for their assistance with the investigation.

This prosecution is being handled by the White Plains Division.  Assistant United States Attorneys Lauren Schorr and Marcia S. Cohen are in charge of the prosecution.

ALBANY, NEW YORK - Michael Pampalone, age 32, of Elizabeth, New Jersey, was arraigned yesterday on an indictment charging him with two counts of wire fraud for stealing $132,450 from an East Greenbush, New York man.

The announcement was made by United States Attorney Richard S. Hartunian, New York State Police Superintendent Joseph A. D’Amico, and Shelly A. Binkowski, Inspector in Charge, United States Postal Inspection Service, Boston Division.

The indictment alleges that Pampalone, a former mortgage broker, stole $132,450 from an East Greenbush man who hired Pampalone to help him obtain a mortgage.  According to the indictment, Pampalone instructed the victim to wire funds to a New Jersey bank account, and then, after the wires were completed, stole the money.

Pampalone faces up to 20 years of imprisonment and a $250,000 fine, if convicted.  Pampalone, who was indicted on December 23, 2015, was arraigned on January 4, 2016 before Magistrate Judge Daniel J. Stewart.  He was released on a bond pending a trial scheduled for March 7, 2016 before District Judge Mae A. D’Agostino.

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

This case is being investigated by the New York State Police and the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Wayne A. Myers.

ALBANY, NEW YORK – A jury on Friday convicted Raymond P. Baker, age 36, of Schenectady, New York, of conspiring to distribute and possess with intent to distribute heroin, announced United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration.

Baker faces at least 10 years and up to life in prison, and a term of post-imprisonment supervised release of at least 8 years and up to life, when he is sentenced on May 9, 2016 by Senior United States District Judge Thomas J. McAvoy.

The jury convicted Baker following a four-day trial.  The evidence at trial demonstrated that Baker worked with another person to sell heroin in Latham and Albany, and that the amount of heroin involved in the conspiracy was 100 grams or more.

This case was investigated by the Drug Enforcement Administration. It was prosecuted at trial by Assistant U.S. Attorney Michael Barnett, and was prosecuted to indictment by Assistant U.S. Attorneys Wayne A. Myers and Elizabeth R. Rabe.

SYRACUSE, NEW YORK – Yesterday, a federal court jury convicted Zubeda Kalume, 42, of Utica, of entering into a fraudulent marriage for the purpose of allowing a Gambian man to unlawfully remain in the United States, announced United States Attorney Richard S. Hartunian and Brian Devine, Resident Agent in Charge, Homeland Security Investigations, Syracuse Office. Kalume is a naturalized U.S. citizen originally from the Congo. The jury reached its verdict following a four day trial.

United States Attorney Richard S. Hartunian said: "United States citizenship is not for sale. People who commit marriage fraud damage the integrity of our immigration system. We are committed to enforcing these laws to ensure that those who abuse the process do not cause harm or jeopardize the opportunities for lawful immigration."

"Marriage fraud is a federal crime and unfortunately one that is all too common," said Brian Devine, resident agent in charge for Homeland Security Investigations in Syracuse. "Schemes like this not only damage the integrity of America’s legal immigration system, but they could also be exploited by individuals who pose a significant risk to our nation's security. We applaud the U.S. Attorney's office for pursuing these violations vigorously and thank our federal partners at the U.S. Department of Agriculture for their instrumental efforts throughout the course of this investigation."

The evidence at trial that established Kalume and Alieu Jaiteh, 32, a citizen of The Gambia, were married in Dewitt, New York in October 2009. Jaiteh, who had entered the country on an F-1 student visa, violated its terms and was in the United States illegally at the time of the marriage. Kalume agreed to marry Jaiteh for $10,000 and later assisted him in getting temporary legal immigration status. Jaiteh, who resides in Syracuse, was himself convicted for conspiring from 2009 to 2012 to commit more than $1.7 million in federal food stamp fraud and was sentenced to 18 months in prison in April 2015.

Zubeda Kalume faces a maximum of 5 years in prison, a 3 year term of supervised release, and a fine of up to $250,000 for her conviction for marriage fraud. Chief United States District Judge Glenn T. Suddaby has scheduled her sentencing for April 28, 2016 in Syracuse.

These convictions are the culmination of a joint investigation conducted by Special Agents from Homeland Security Investigations (HSI) and the U.S. Department of Agriculture’s Office of the Inspector General and the investigative component of U.S. Immigration and Customs Enforcement, and prosecuted by the U.S. Attorney’s Office for the Northern District of New York in Syracuse. Substantial assistance was also provided throughout the investigation by the Onondaga County Department of Social Services’ Welfare Fraud Unit, Oneida County Social Services, and the New York State Police. The case was prosecuted by Assistant U. S. Attorney Geoffrey Brown.

ALBANY, NEW YORK - Eric J. Feight, 55, of Hudson, New York, was sentenced yesterday to serve 97 months in prison followed by a term of 3 years of supervised release, announced United States Attorney Richard S. Hartunian of the Northern District of New York, Assistant Attorney General for National Security John P. Carlin, and Special Agent in Charge Andrew W. Vale of the FBI’s Albany, New York Division. The sentence imposed today follows Feight’s January 22, 2014 plea of guilty to Providing Material Support to Terrorists, in violation of Title 18, United States Code, Section 2339A(a), during which he admitted to helping Glendon Scott Crawford modify an industrial-grade radiation device intended to be used to kill Muslims in the Albany, New York area. Feight admitted he had assisted Crawford by designing and building a remote initiation unit to allow the radiation device to be activated from a distance1. Both men were arrested following an extensive federal investigation. Crawford, a self-proclaimed Ku Klux Klan ("KKK") member, sought financial support for his plot from the KKK, and he and Feight later met with individuals they believed to be KKK financiers to advance their scheme to kill innocent human targets. Those individuals were FBI Agents posing as businessmen connected to the KKK who were willing to support the scheme.

United States Attorney Richard S. Hartunian said: "This sentence highlights both the dangers we face when hatred and bigotry beget domestic terrorism and violent extremism, and our commitment to holding those who commit such crimes accountable. No American – of any background – should have to live in fear of this kind of attack. This case illustrates the importance of vigilance by community members and an immediate, comprehensive investigation by our Albany FBI Joint Terrorism Task Force, which thwarted the diabolical plan Feight supported. We must continue to counter messages of hate by empowering communities and emphasizing the inclusion on which our nation was founded – with local, state, and federal law enforcement ready to stop any who refuse to heed that call."

"Eric Feight aided Glendon Scott Crawford in altering a dispersal device to target unsuspecting Muslim Americans with lethal doses of radiation," said Assistant Attorney General Carlin. "Feight and Crawford’s abominable plot to harm innocent Americans was thwarted thanks to the tireless efforts of law enforcement. The National Security Division’s highest priority continues

to be combatting terrorism, and we remain ready to identify, disrupt and prevent terrorist threats, both domestically and internationally," said Assistant Attorney General Carlin.

"This sentencing is the result of the incredible efforts of our Joint Terrorism Task Force and the U.S. Attorney’s Office," said Special Agent in Charge Andrew W. Vale. "While we enjoy today’s success, it is important that we continue to gain the strongest possible understanding to allow us to better assess the terrorism threat and identify those who would go beyond hateful rhetoric and extremist views to commit violent, criminal acts."

This case resulted from a long term investigation conducted by the Albany FBI Joint Terrorism Task Force, which includes the Department of Homeland Security, New York State Police, Albany Police Department, Troy Police Department, and New York City Police Department. The United States Attorney’s Office also appreciates the assistance of the Criminal Division and National Security Division of the United States Department of Justice. The case is being prosecuted by Assistant United States Attorneys Stephen C. Green and Richard Belliss, and Counterterrorism Section Trial Attorney Joseph Kaster.

1 Glendon Scott Crawford was convicted after trial in federal court on August 21, 2015 of Conspiracy to Use a Weapon of Mass Destruction and two additional terrorism offenses. Crawford is scheduled to be sentenced on March 16, 2016 in Albany, New York and faces a maximum sentence of life imprisonment.

Questions or inquiries may be directed to Assistant United States Attorney Richard R. Southwick at 315-448-0672.

 

ALBANY, NEW YORK – Robert "Poobar" Daniels, age 42, of Schenectady, New York, pled guilty today to distributing crack cocaine, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation. The guilty plea included Daniels’ admission that he sold crack cocaine directly and oversaw the distribution of crack cocaine by another individual. At sentencing on April 15, 2016 in Albany, New York, Daniels faces a maximum term of imprisonment of 20 years, a fine of $1,00,000, and a term of supervised release of up to life.

The case was investigated by the Federal Bureau of Investigation, the New York State Police, and the Schenectady Police Department, in connection with the Capital District Safe Streets Gang Task Force. The case is being prosecuted by Assistant United States Attorney Wayne A. Myers.

SYRACUSE, NEW YORK – Stephen M. Howells, II, 40 of Hermon, New York, was sentenced today to serve 580 years in prison in connection with his sexual exploitation of six children, including two St. Lawrence County girls he abducted with his girlfriend, Nicole F. Vaisey, 26, also of Hermon, from a roadside vegetable stand on August 13, 2014, announced United States Attorney Richard S. Hartunian, Special Agent in Charge Andrew W. Vale of the FBI’s Albany Division, and St. Lawrence County Sheriff Kevin Wells. Vaisey was also sentenced today to serve 300 years in prison for her role in the offenses, including her participation in the sexual exploitation of four of the children. The Court also ordered the forfeiture of property used by the defendants in the commission of these crimes, consisting of two cars, a computer and five hard drives, a camera, and two iPhones.

On May 8th, Howells pled guilty to all twenty-one federal charges: conspiracy to sexually exploit minors, fifteen counts of sexual exploitation of children, involving six victims, and five counts of possession of child pornography. On May 14th, Vaisey also pled guilty to conspiracy to sexually exploit minors, as well as nine counts of sexual exploitation of children, involving four victims.

From September of 2013 through August 15, 2014, Howells and Vaisey conspired to sexually exploit children for the purpose of producing videos and pictures of such conduct. Howells used his position as a registered nurse to obtain drugs to administer to the six children to sedate them. On at least sixteen dates specified in the indictment, Howells sexually abused six young girls, ages 5 – 11, sometimes with Vaisey also doing so, as Howells or Vaisey filmed that abuse. Howells and Vaisey made arrangements with close friends and family to spend time with four of the children, and then betrayed their trust. Howells and Vaisey also developed, planned, and carried out a scheme to abduct children to sexually abuse them. On August 13, 2014, they kidnapped two Amish children from their family’s roadside farm stand by pretending to be customers. Howells forced the children into the car and Vaisey drove off. The two children were restrained as captives in Howells’ and Vaisey’s home until they were released in a remote location the next night. An ongoing manhunt and investigation resulted in the arrests of Howells and Vaisey and searches that helped uncover the other child sexual abuse by them.

United States Attorney Richard S. Hartunian said: "The sentences imposed today are a reflection of the monstrous crimes committed by Stephen M. Howells, II and Nicole F. Vaisey against the most vulnerable among us – our children. Howells and Vaisey will never be able to abduct, drug, and sexually abuse children again. Our hearts go out to the six children victimized by

Howells and Vaisey, and to all children who are subject to sexual exploitation. It is our hope that these severe sentences will deter others from engaging in such depraved conduct. Our commitment to promoting prevention, protecting children, and combatting child sexual abuse is complete and unwavering."

"Today’s sentencing is a culmination of an investigation into the unspeakable crimes committed against innocent victims within St. Lawrence County. The St. Lawrence County Sheriff’s Office has worked towards this conclusion in a cooperative investigative effort with our Federal, State and Local partners. This collaborative effort to bring these two to justice and stand responsible for their actions shows how well law enforcement can work together for the victims and citizens that we serve. The Sheriff’s Office appreciates the public support that has been demonstrated for the victims and the law enforcement agencies that were involved," said St. Lawrence County Sheriff Kevin Wells.

"The unspeakable acts against innocent children committed by Stephen Howells and Nicole Vaisey represent some of the most heinous and evil crimes ever committed in Troop B. It was through the collective efforts of all law enforcement agencies working tirelessly that these two depraved individuals will be brought to justice and will never pose a threat to our children and our communities again," said New York State Police Major Charles Guess, Troop B Commander.

"Stephen Howells and Nicole Vaisey represent the horrifying reality of the danger our families and children face; they are predators that plotted and schemed to harm those that are most precious to us," said Special Agent in Charge Andrew W. Vale. "It is our sworn duty to protect our community’s children, and the unfathomable suffering of Howells and Vaisey’s victims and their family is our daily reminder of that duty. Today’s sentencings are the culmination of tremendous efforts made by the FBI, the United States Attorney’s Office, the St. Lawrence County Sheriff’s Office, and the New York State Police."

This case was investigated by FBI, the St. Lawrence County Sheriff’s Office and the New York State Police, and was prosecuted by Assistant U.S. Attorneys Lisa M. Fletcher, Tamara Thomson, and Steven D. Clymer.

Conspired to Modify Lethal Radiation Device to be Used to Kill Muslims in New York State

Eric J. Feight, 55, of Hudson, New York, was sentenced today to serve 97 months in prison for providing material support to terrorists. 

The sentence was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Richard S. Hartunian of the Northern District of New York and Special Agent in Charge Andrew W. Vale of the FBI’s Albany, New York, Division.

Feight pleaded guilty on Jan. 22, 2014, and admitted to helping Glendon Scott Crawford modify an industrial-grade radiation device intended to be used to kill Muslims in the Albany area.  Feight also admitted he assisted Crawford by designing and building a remote initiation unit to allow the radiation device to be activated from a distance.  Both men were arrested following an extensive federal investigation.  Crawford, a self-proclaimed Ku Klux Klan (KKK) member, sought financial support for his plot from the KKK, and he and Feight later met with individuals they believed to be KKK financiers to advance their scheme to kill innocent Americans.  Those individuals were actually FBI agents posing as businessmen connected to the KKK who were willing to support the scheme.  

“Eric Feight aided Glendon Scott Crawford in altering a dispersal device to target unsuspecting Muslim Americans with lethal doses of radiation,” said Assistant Attorney General Carlin.  “Feight and Crawford’s abominable plot to harm innocent Americans was thwarted thanks to the tireless efforts of law enforcement.  The National Security Division’s highest priority continues to be combatting terrorism, and we remain ready to identify, disrupt and prevent terrorist threats, both domestically and internationally.”

“The sentence today highlights both the dangers we face when hatred and bigotry beget domestic terrorism and violent extremism, and our commitment to holding those who commit such crimes accountable,” said U.S. Attorney Hartunian.  “No American – of any background – should have to live in fear of this kind of attack.  This case illustrates the importance of vigilance by community members and an immediate, comprehensive investigation by our Albany FBI Joint Terrorism Task Force, which thwarted the diabolical plan Feight supported.  We must continue to counter messages of hate by empowering communities and emphasizing the inclusion on which our nation was founded – with local, state and federal law enforcement ready to stop any who refuse to heed that call.” 

“Today’s sentencing is the result of the incredible efforts of our Joint Terrorism Task Force and the U.S. Attorney’s Office,” said Special Agent in Charge Vale.  “While we enjoy today’s success, it is important that we continue to gain the strongest possible understanding to allow us to better assess the terrorism threat and identify those who would go beyond hateful rhetoric and extremist views to commit violent, criminal acts.”  

This case was investigated by the Albany FBI Joint Terrorism Task Force.  The case is being prosecuted by Assistant U.S. Attorneys Stephen C. Green and Richard Belliss of the Northern District of New York, and Trial Attorney Joseph Kaster of the National Security Division’s Counterterrorism Section. 

SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian will conduct a press conference tomorrow (December 17, 2015) at 4 PM in the Syracuse U.S. Attorney’s Office. Joining him will be officials representing multiple law enforcement agencies. This announcement is in connection with United States v. Stephen M. Howells, II and United States v. Nicole F. Vaisey, who are scheduled to be sentenced at 1 pm and 1:30 pm. in Syracuse.

No further information will be provided prior to the press conference.

Thursday, December 17, 2015
4:00 PM
U.S. Attorney’s Office
100 S. Clinton Street
Syracuse, New York
9th Floor

ALBANY, NEW YORK – Daniel Humberto Pulido-Mojica, age 30, a citizen of Colombia, was sentenced on Friday to serve 11 months in prison for alien smuggling, announced United States Attorney Richard S. Hartunian and U.S. Border Patrol Chief Patrol Agent John C. Pfeifer.  

In August, Pulido-Mojica pled guilty before United States District Court Judge David N. Hurd to transporting aliens unlawfully present in the United States. Judge Hurd also sentenced Pulido-Mojica to a two-year term of supervised release, to begin after his release from jail.

Pulido-Mojica, a lawful permanent resident of the United States living in Corona, New York, was prosecuted after he was encountered by Border Patrol just south of the international border between the United States and Canada near Champlain, New York. He was driving a van and transporting five illegal aliens.  Pulido-Mojica had pulled up to the border shortly after midnight on June 20, 2015 and picked up the five aliens who had just illegally crossed the border from Canada on foot.  Pulido-Mojica intended to drive the aliens to New Jersey, but he was stopped and arrested, together with his passengers.

The smuggled aliens, Brianth Steven Pineda Vallejo, age 23, from Colombia, Jacqueline Roberta Costa, age 39, of Brazil, Rafael Da Conceicao Santos, age 25, of Brazil, Miguel Eduardo Jara Elgueta, age 26, of Chile and Vipan Saini, age 38, of India, were also prosecuted.  All but Costa were convicted of the misdemeanor offense of entry without inspection.  Costa was convicted of the felony offense of re-entry of a removed alien.      

This case was investigated by the U.S. Border Patrol and prosecuted by Edward P. Grogan.

ALBANY, NEW YORK – Christopher Square, age 29, of Kahnawake, Quebec, Canada, was sentenced on Friday to serve 9 months in prison for alien smuggling, announced United States Attorney Richard S. Hartunian and U.S. Border Patrol Chief Patrol Agent John C. Pfeifer.  

In August, Square pled guilty before United States District Court Judge David N. Hurd to transporting aliens unlawfully present in the United States. Judge Hurd also sentenced Square to serve a two-year term of supervised release, to begin after his release from prison.

Square, a dual citizen of the United States and Canada, was prosecuted after he was encountered by Border Patrol on May 3, 2015 just south of the international border between the United States and Canada near Fort Covington, New York with three illegal alien passengers in the van he was driving.  Square was observed driving near the border on the Akwesasne Mohawk Indian reservation, and then leaving the reservation and driving toward Fort Covington.  When a marked Border Patrol vehicle approached the van Square was driving, Square pulled off the road and stopped, and three people were seen exiting the van and hiding nearby.  Square was promptly stopped and arrested.  The three people who exited his van were found hiding nearby and they were detained as aliens unlawfully present in the United States. 

Two of the smuggled aliens, Ruie Huang, 28, from China, and Bi Rong Chen, 37 of Canada, were convicted of the misdemeanor offense of entry without inspection.        

This case was investigated by the U.S. Border Patrol and prosecuted by Edward P. Grogan

SYRACUSE, NEW YORK - David L. Frisby, 65, of Kiln, Mississippi, pled guilty yesterday to one count of conspiracy to commit wire fraud in connection with a scheme to defraud scrap metal brokerage firms. The guilty plea included his admission to soliciting contracts for the disposal of batteries and other metal waste under false pretenses, announced United States Attorney Richard S. Hartunian and Environmental Protection Agency (EPA) Criminal Investigations Division Special Agent in Charge Vernesa Jones-Allen. 

Frisby, formerly of Fultonville, New York, admitted that he and his co-conspirators falsely held themselves out to be representatives of a scrap metal recycling firm that was authorized by the Environmental Protection Agency to dispose of metal waste by shipping it to Korea, and that they defrauded business and individuals by charging them for recycling services that were never provided.  In reality, Frisby and his co-conspirators were not authorized by the EPA to provide scrap metal recycling services and never intended to provide such services to the victims. 

To further the scheme, Frisby, who formerly served as the Chief Executive Officer of D & L Heritage Enterprises, Inc. (D & L Heritage), a New York State domestic business corporation, until its dissolution in 2009, provided his co-conspirators with D & L Heritage incorporation documents that were fraudulently altered and e-mailed to victims during the solicitation process.  Victims of the fraud scheme transferred at least $154,206.00 in fraud proceeds to bank accounts maintained by Frisby, who retained a portion of the funds for his personal benefit and transferred the remainder to his co-conspirators.    

At sentencing on April 27, 2016 at 10:00 a.m. in Syracuse, Frisby faces a maximum term of incarceration of 20 years and a maximum fine of $250,000. Additionally, the plea agreement requires Frisby to pay $144,216.00 in restitution to victims of the fraud scheme, if approved by the Judge.   
 
The case was investigated by the U.S. Environmental Protection Agency, Criminal Investigations Division.  The case is being prosecuted by Assistant United States Attorney Sean O’Dowd.

ALBANY, NEW YORK – Former Halfmoon Town Supervisor Melinda Wormuth was sentenced today to one year and one day in prison as a result of her convictions for extortion and making a false statement, 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.

United States District Judge Gary L. Sharpe also sentenced Wormuth to serve a 1-year term of supervised release, to begin after her release from prison, forfeit $3,000, and pay a fine of $7,500.

The sentence follows Wormuth’s August 10, 2015 guilty plea, during which she admitted that she accepted money in return for her official actions.  She admitted that she received $7,500 in cash, which was characterized as “consulting fees,” in return for using her official positions as Town Supervisor and member of the Saratoga County Board of Supervisors to lobby for the legalization of professional Mixed Martial Arts (“MMA”). 

“Public service is about dedication to community and country, not the use of official position for profit,” stated U.S. Attorney Richard S. Hartunian.  “Taking money to lobby for legislation is illegal corruption that betrays the public trust.  We will continue to work with the FBI, the Attorney General of New York, and the New York State Comptroller to identify and hold accountable officials who commit such crimes.”

“Ms. Wormuth exploited her position and the faith of those she swore to serve,” said Special Agent in Charge Andrew W. Vale. “This kind of criminality drains the public’s confidence in our leaders. The FBI stands determined with our law enforcement partners to investigate those who would further erode the public’s trust.”

The charges were the result of an investigation by the Federal-State Anti-Corruption Task Force that includes the Federal Bureau of Investigation, the New York Attorney General’s Office, the Internal Revenue Service, and the New York Comptroller’s Office. 

“When elected officials misuse their office for personal gain it betrays the public’s trust,” said Attorney General Schneiderman. “This case shows that when elected officials break the law, they will be held accountable. I’m proud to have worked with my partners in state and federal government to bring this defendant to justice.”

“Ms. Wormuth abused her office and betrayed the taxpayers she was elected to serve,” State Comptroller Thomas P. DiNapoli said.  “I hope this sentence sends a clear message that this misconduct by an elected official will not be tolerated.  I thank United States Attorney Hartunian, Attorney General Schneiderman, the FBI and the IRS for their continued partnership to fight corruption.”

Between April 10, 2013 and August 10, 2013, Wormuth sent letters on her official letterhead to state legislators in New York, requesting legislative action in favor of professional MMA.  Wormuth performed no legitimate consulting work for the $7,500 payment, and she accepted this money understanding that she was expected to use her official position to promote legislative action in favor of professional MMA. 

Wormuth also admitted that she lied to FBI agents during an interview on August 7, 2013.  Wormuth stated that she had consulted with “K.T.,” a former Town Justice in Saratoga County, to obtain approval for her actions before taking the $7,500 payment.  This statement was false because she had not consulted with “K.T.”

This case was prosecuted by Assistant U.S. Attorneys Ransom Reynolds and Jeffrey Coffman, and by former Executive Assistant U.S. Attorney John Duncan. 

PLATTSBURGH, NEW YORK – Roy Redeye, age 39, of Cortland and Akwesasne, New York, pled guilty yesterday to two counts of interstate threats to injure another person announced United States Attorney Richard S. Hartunian, James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations, and Matthew Rourke, Saint Regis Mohawk Police Chief. Redeye admitted during the change of plea hearing that on February 6, 2015, he posted threats to injure and kill three Saint Regis Mohawk Tribal Police Officers on Facebook.

On both counts, Redeye faces up to 5 years in prison, a fine of up to $250,000, and a term of supervised release up to 3 years. Sentencing is set for April 6, 2016 at 10:30 AM before Senior U.S. District Judge Lawrence E. Kahn.

The case was investigated by Homeland Security Investigations in both Massena and Syracuse, with assistance from the Cortland Police Department, the Cortland County Sheriff’s Office, and the Saint Regis Mohawk Tribal Police Department. Assistant United States Attorney Elizabeth Horsman prosecuted the case.

The case was prosecuted under the U.S. Attorney’s Office for the Northern District of New York’s Indian Country Public Safety Initiative, which was established as a result of the Tribal Law and Order Act of 2010. That Act launched department-wide initiatives to enhance public safety in Indian Country.

PLATTSBURGH, NEW YORK – Six people have been indicted on charges related to cocaine and heroin trafficking in and around the Massena area, announced United States Attorney Richard S. Hartunian, James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), and Mark LaBrake, Chief of Police for the Massena Police Department.

The indictment charges the following people with conspiracy to possess with intent to distribute and to distribute heroin and cocaine:

* Jonathan Rodriguez, a/k/a “Javi” a/k/a “Big Guy” a/k/a “Big Man” a/k/a “Babs” a/k/a “Bebz” a/k/a/ “Bebo,” age 27, of Bronx, New York; * Ricardo Garcia, aka “Bucky,” age 24, of New York City; * Tina Fumano, age 42, of Massena, New York; * Cecilia Lindsey, a/k/a “Cece,” age 28, of Massena, New York; * Nicole Francis, age  27, of Norwood, New York; and
* William Rochefort, age 21, of Massena, New York.

Rodriguez, Fumano and Garcia each face at least 5 years and up to 40 years of imprisonment, and a maximum $5 million fine, if convicted.  Lindsey, Francis and Rochefort each face up to 20 years of imprisonment and a maximum $1 million fine if convicted.

The defendants, except Garcia, will appear for arraignments in Plattsburgh on December 10, before United States Magistrate Judge Gary L. Favro.  Garcia is in custody in the Southern District of New York and will appear for arraignment at a later date.

“Vigorous law enforcement by federal, state, local, and Canadian agencies is essential to ending the emerging heroin epidemic and combatting the continuing cocaine problem,” stated U.S. Attorney Richard S. Hartunian.  “The outstanding collaboration here was critical to bringing this case.  We remain committed to working together to maintain public health and safety in this community.”

“Dismantling drug trafficking organizations is a critical component of our effort to enhance public safety in our communities,” stated HSI Special Agent in Charge James C. Spero.
“By disrupting these organizations, we are on the path to addressing the root causes of a myriad of criminal activity associated with drug trafficking.”

“This operation is a success story of how agencies come together to address the illegal drug trade in Northern New York,” stated Massena Police Chief Mark LaBrake.  “This operation, which started with an investigation by the Massena Police Department, was able to dismantle a large pipeline of cocaine and heroin trafficking from New York City to Massena. The hope is that people from out of the area will realize that bringing this poison to our community will not be tolerated.  I again want to thank our local, state and federal partners for their assistance in helping battle this problem of dangerous drugs that plagues our community.”

The indictment is the result of a year-long investigation led by HSI’s Border Enforcement Security Task Force (BEST) in Massena, which consists of law enforcement officers from the Massena Police Department, the St. Lawrence County Sheriff’s Department and the New York State Police, and which receives assistance from the U.S. Border Patrol, the Drug Enforcement Administration, the District Attorneys of Clinton, Franklin, and St. Lawrence Counties, the St. Regis Mohawk Tribal Police Department, the Oneida Indian Nation Police, U. S. Customs and Border Protection, the U.S. Coast Guard Investigative Service, the Potsdam Police Department, the Royal Canadian Mounted Police, the Surete du Quebec, and the New York Attorney General’s Office.

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

This case is being prosecuted by Assistant U.S. Attorneys Katherine Kopita and Douglas G. Collyer.

ALBANY, NEW YORK – Albert Reardon, age 74, of North Adams, Massachusetts, was indicted today on charges of attempted coercion and enticement of a minor for prohibited sexual activity, 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.

Reardon faces at least 10 years and up to life in prison.  He also faces a term of supervised release of at least 5 years and up to life, a fine of up to $250,000, and mandatory registration as a sex offender.  Reardon was arrested in October on a criminal complaint. At that time he appeared before United States Magistrate Judge Christian F. Hummel, and was detained following a detention hearing on October 27. 

According to the Complaint filed on October 22, Reardon posted online advertisements soliciting sexual encounters with a “teen” and “young” person.   Following email exchanges with a law enforcement officer acting undercover, Reardon travelled to Latham, New York, to meet at a prearranged time and place with persons he believed to be a 14-year-old boy and his 11-year-old brother.

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

This case is being investigated by the Colonie Police Department and the Federal Bureau of Investigation, 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/.

SYRACUSE, NEW YORK - Ralph Daniel Smith, 41, of Ilion, New York, was arrested today on a federal indictment, charging him with sexual exploitation of a child, announced United States Attorney Richard S. Hartunian.

The indictment alleges that in November of 2013 Smith, using the pseudonym "Dan Smithson," coerced a 14 year old girl to engage in sexually explicit conduct for the purpose of producing visual depictions of that conduct, in violation of federal law.

The charge filed against Smith carries a minimum sentence of 15 years, and a maximum sentence of 30 years in prison, a fine of up to $250,000.00, and a term of supervised release of at least 5 years and up to life. In addition, a conviction will require Smith to register as a sex offender.

Smith was arraigned today in Syracuse, New York, before a United States Magistrate Judge and remanded pending a detention hearing scheduled for Tuesday, December 8, 2015.

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

This case is being investigated by the Ilion Police Department, the Herkimer County District Attorney’s Office, and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Lisa M. Fletcher, as a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse.

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

PLATTSBURGH, NEW YORK – Billy Slick, age 54, was sentenced today to 60 months in prison as a result of his conviction for conspiracy to manufacture, possess with intent to distribute and distribute methamphetamine.

The announcement was made by United States Attorney Richard S. Hartunian, Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration (DEA), and New York State Police Superintendent Joseph A. D’Amico.

Chief United States District Judge Glenn T. Suddaby also sentenced Billy Slick to serve a four-year term of supervised release, to begin after his release from prison.

On August 26, 2015, Billy Slick’s wife, Danielle Trombly Slick, age 33, was sentenced to 46 months in prison for her role in the methamphetamine conspiracy.  Chief Judge Suddaby also sentenced Danielle Slick to serve a three-year term of supervised release, to begin after her release from prison.

The Slicks had lived in Augusta, Georgia, but moved to Clinton County in 2011 and remained in the area through 2013.  During that time, the Slicks manufactured and distributed methamphetamine. 

This case was investigated by the Drug Enforcement Administration, the New York State Police, the High Intensity Drug Trafficking Areas Program of New York and New Jersey, the Plattsburgh Police Department, the Clinton County District Attorney’s Office, and the Essex County District Attorney’s Office.  Assistant United States Attorney Katherine Kopita prosecuted the case.

ALBANY, NEW YORK:  The General Electric Company (“GE”) has agreed to pay a $2.25 million civil penalty to resolve a complaint alleging violations of federal and state environmental  laws in connection with GE’s use of an incinerator at a manufacturing facility that it once owned and operated in Waterford, New York, announced the United States Attorney’s Office for the Northern District of New York, the Department of Justice, the Environmental Protection Agency (“EPA”), the New York State Attorney General’s Office, and the New York State Department of Environmental Conservation (“DEC”).  Both the complaint and the settlement agreement were filed today in United States District Court in Albany.
 
The allegations in the civil complaint, which is docketed as United States of America and the State of New York v. General Electric Company, Civil No. 1:15-CV-1431, include the following:

GE owned the Waterford facility from 1947 through 2006, and continued to operate it through early 2007.  GE manufactured various products at the facility, including sealants made of silicone.  The silicone manufacturing process generated hazardous waste.  GE sought and received permits from DEC to dispose of the hazardous waste onsite, subject to compliance with the Clean Air Act (CAA) and the Resource Conservation and Recovery Act (RCRA).  GE disposed of hazardous waste in a rotary kiln incinerator that included an automatic waste feed cut-off system designed to shut down the incinerator if GE deviated from operating parameters designed to ensure compliance with the CAA and RCRA.  Unbeknownst to federal and state authorities, GE used a computer program to override the incinerator’s automatic waste feed cut-off system, allowing GE to continue to burn hazardous waste in the incinerator in violation of its CAA and RCRA permits. On at least 1,859 occasions during the period of September 2006 until February 2007, GE employees manually overrode the automatic waste feed cut-off system, thereby potentially exposing the public and the environment to harmful hazardous air pollutants, such as carbon monoxide, dioxins, and furans.  Though its employees were violating federal and state law, GE submitted routine compliance reports to the United States and the State of New York falsely attesting to compliance with RCRA, the CAA, and permits issued pursuant to those statutes.

First Assistant United States Attorney Grant C. Jaquith said:  “By operating a system to bypass safety controls, GE put the public and the environment in harm’s way.  This office will continue to pursue vigorously companies that thwart laws designed to protect public health, safety, and our environment.”

“GE violated the Nation’s and New York’s bedrock environmental laws that were put in place to protect the American public and the environment from harmful air pollution and hazardous materials,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division (ENRD).  “This settlement penalizes GE for these violations of law, and represents the combined efforts of the federal government and the state of New York to uphold the law and protect public health.”

“Our laws are critical to protecting the environment and ensuring the health and safety of the public,” said New York State Attorney General Eric T. Schneiderman. “GE ignored its duty to comply with clean air and hazardous waste laws at the Waterford facility.  Today’s settlement holds GE accountable for its illegal actions – and reflects my office’s continuing commitment to impose significant consequences on any company that puts New Yorkers in jeopardy by breaking environmental laws.  In addition, this settlement represents a strong cooperative effort between the State and the United States to protect public health and the environment.” 

“GE overrode a system designed to deal with dangerous air pollutants from a hazardous waste incinerator,” said Judith A. Enck, EPA Regional Administrator.  “By overriding the system, GE allowed the hazardous waste to continue to be fed into the incinerator, leading to levels of carbon monoxide that exceeded the permit limits.”

“Violations of New York State’s environmental laws and regulations are serious offenses, which carry serious consequences,” said DEC’s Acting Commissioner Basil Seggos. “This fine is the result of the collaborative efforts of state and federal partners working together to accomplish a shared mission to protect our citizens and communities and should send a strong message that New York State has zero tolerance for those who shirk environmental policies and procedures put in place as protections.  I commend DEC’s Law Enforcement Officers for their determined vigilance in this investigation.  This is a great example of the important work they perform in the course of their sworn duty to protect the citizens of New York and the environment.”

This case was investigated by EPA and DEC, and is being handled by Assistant United States Attorneys Thomas Spina Jr. and Adam J. Katz, New York State Assistant Attorneys General Maureen F. Leary and James C. Woods, an attorney from the Department of Justice’s Environmental Enforcement Section, and assistant regional counsel from EPA’s office in New York City.

ALBANY, NEW YORK – A federal grand jury has returned an indictment charging Shane Smith, age 18, of Whitehall, New York, with two counts of illegal possession of a machinegun and one count of possession of an unregistered firearm (silencer), 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. 

Smith was arraigned today before United States Magistrate Judge Christian F. Hummel, and ordered detained pending trial.  On each count, Smith faces a maximum of 10 years in prison and up to 3 years of supervised release. He also faces a maximum $250,000 fine on each machinegun possession charge, and a maximum $10,000 fine on the silencer possession charge.

Smith was arrested on August 6, 2015 and charged by complaint after he acquired, from an undercover agent, a Colt M16 model A2, a military-grade assault rifle capable of firing as a machinegun; a Military Armament Corporation “MAC 10” machinegun; a silencer; a Beretta model 92FS handgun; and 120 rounds of “green-tip” ammunition with armor-piercing capability. 

The charges and allegations announced today are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

This case is being investigated by the FBI Joint Terrorism Task Force in Albany, and is being prosecuted by Assistant United States Attorneys Sean O’Dowd and Solomon B. Shinerock.

SYRACUSE, NEW YORK – Brian Davis 46, of Owego, New York, was sentenced to serve one year and one day in federal prison after pleading guilty earlier this year to one felony count of treating, storing, and disposing of hazardous waste without a permit, in violation of the Resource Conservation and Recovery Act, announced United States Attorney Richard S. Hartunian, Vernesa D. Jones-Allen, Special Agent in Charge, New York Area Office, Criminal Investigation Division, U.S. Environmental Protection Agency ("EPA CID") and Basil Seggos, Acting Commissioner, New York State Department of Environmental Conservation ("DEC"). In addition to the prison sentence, Davis was sentenced to pay a $5,000 fine and to serve a three-year term of supervised release after release from prison.

In June 2013, Davis, the owner of Large Car LLC, a company in Owego that installs and removes old industrial plating equipment for re-use or recycling, agreed to remove various hazardous chemicals, including arsenic, chromium, lead, and selenium, from a bankrupt waste generator facility in New Hampshire. Davis did not have a permit or environmental license to remove these chemicals, but nevertheless transported them to the Large Car LLC facility in Owego, New York, where he treated, stored, and disposed of them over the course of nearly a year. Davis stored the hazardous waste without labeling, and failed to properly isolate incompatible materials, or protect them from the elements. Davis also treated and disposed of much of this waste by igniting and evaporating it, mixing it with other materials, and shipping it to offsite locations without listing it on manifests, as required.

United States Attorney Richard S. Hartunian said: "The illegal disposal of hazardous chemicals contaminates the environment and endangers public health. The defendant’s disregard of the statutory requirements that protect people and natural resources risked great harm. Prosecution of such conduct is a high priority."

"Industrial waste can pose serious threats to human health and the environment, so it’s imperative that companies dispose of their waste properly in order to protect local communities," said Special Agent in Charge Vernesa Jones-Allen, who oversees EPA’s criminal enforcement program in New York. "Today’s sentence demonstrates that when individuals refuse to comply with the law and put the public at serious risk, they will be held accountable for their actions." DEC Acting Commissioner Basil Seggos stated, "Violations of New York State’s environmental laws and regulations are serious offenses with serious consequences. This sentencing is the result

of the collaborative efforts of local, state and federal partners working together to accomplish a shared mission to protect our citizens and communities and should send a strong message that New York State has zero tolerance for those who shirk environmental policies and procedures put in place as protections."

This case was investigated by special agents and criminal investigators with EPA CID and DEC, and it was prosecuted by Assistant United States Attorney Michael F. Perry.

SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced today that additional criminal charges have been filed against a Cazenovia man already facing allegations of fraud and money laundering.

JAMES P. GRIFFIN, 70, is the Chief Executive Officer of several companies using a variation of the name 54 Freedom. These 54 Freedom companies are headquartered at 5 Ledyard Avenue, Cazenovia, New York. In July Griffin was indicted on charges that the 54 Freedom companies, marketed a financial product called the 54 Freedom Charitable Gift Annuity. This product purportedly allowed a person to make a gift to charity and still receive income for himself or others. The 54 Freedom Charitable Gift Annuity was represented to be backed by a highly rated major insurance carrier and would provide guaranteed life time income for the investor. It is alleged, however, that the monies invested by clients were not used to purchase annuities from A rated insurance companies, but rather were used by GRIFFIN for his own use and to pay expenses of the various 54 Freedom companies. The indictment charges that over $1.6 million was invested with the defendant to purchase 54 Freedom Charitable Gift Annuities. The investors initially received monthly payments as promised, but these regular payments stopped in approximately January 2013.

GRIFFIN was arrested on July 23, 2015 and appeared for arraignment before United States Magistrate Judge Andrew T. Baxter in Syracuse. He pled not guilty to the charges.

On November 25, 2015 a federal grand jury in Syracuse returned a superseding indictment that charges Griffin with five additional counts of mail fraud. The new charges allege that Griffin fraudulently induced persons to invest in his companies by using funds withdrawn from tax sheltered retirement accounts upon the false promise that the investments would be profitable and the investment funds would be "rolled over" into another tax sheltered account or that Griffin would pay any tax or penalty due on the early distribution of the retirement account monies. The indictment alleges that the investments were not profitable and the funds were not rolled over into tax sheltered accounts, and as a result, the investors did not realize a profit but also suffered an early withdrawal tax penalty on the funds invested. It is alleged that Griffin received at least $370,000 from investors that had come from tax sheltered retirement plans.

GRIFFIN is now charged with ten counts of mail fraud, eight counts of wire fraud, and five counts of money laundering. He faces a maximum term of imprisonment of twenty years on each of the mail and wire fraud counts and ten years on the money laundering counts. Each count carries a maximum fine of $250,000.

The case was investigated by the Internal Revenue Service, Criminal Investigation, and Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Edward R. Broton.

The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.

UTICA, NEW YORK – Certified Environmental Services, Inc. (“CES”) was sentenced today to 5 years of probation, and to make restitution in the amount of $409,829.67, for negligently releasing asbestos into the ambient air, thereby placing other persons in imminent danger of death or serious bodily injury, announced United States Attorney Richard S. Hartunian. 

U.S. District Judge David N. Hurd credited CES for prior restitution payments of $87,960.06 and ordered CES to make an initial lump-sum payment of $100,000 toward its restitution obligation, and then pay monthly installments of $2,000 or 10% of CES’s net monthly cash flow, whichever is greater. Judge Hurd also credited CES for time already served on its 5-year probation sentence.

United States Attorney Hartunian said, “CES was paid to conduct proper air monitoring to preserve the basic right to clean air when asbestos was removed from homes and other buildings.  It was the gatekeeper for the environment, but violated requirements and provided final clearances when asbestos contamination remained.  This was cutting corners with consequences – the release of dangerous, toxic asbestos fibers into the air.  We are committed to securing justice for abatement contractors and air monitors, as well as restitution for the harm they leave behind.”

The admissions by CES, in connection with pleading guilty to a one-count misdemeanor Information on May 5, 2015, included the following:

• During the period of 1999 to 2007, CES was engaged in the business of, among other things, conducting air monitoring and sampling, and performing laboratory analysis before, during, and at the conclusion of asbestos abatement (removal) projects.  CES provided air sampling and laboratory analysis for asbestos abatements by AAPEX Environmental Services, Inc., and Paragon Environmental Services, Inc., which had performed illegal “rip and run” removals in which asbestos was stripped and removed dry, scattered and left behind in various locations throughout the work area, and was permitted to, and did, migrate outside of the facility and into the ambient air. 

• Asbestos is a hazardous air pollutant, and severely toxic.  Medical science has not established any minimum level of exposure to asbestos fibers that is considered to be safe. Before asbestos abatement, containment structures known as isolation barriers must be constructed around the abatement area by the contractor and negative air pressure maintained to ensure that contaminated air in the abatement area does not filter back to an uncontaminated area.  The containment and negative air pressure must be maintained continuously from the start of the abatement work through the cleanup operations and clearance air monitoring.

• CES’s negligence, which caused the release of asbestos and the resulting imminent danger to people, involved: 1) CES employees failing in certain cases to: perform visual inspections for asbestos debris and pools of water; observe required waiting periods before sampling; record accurate sampling starting and stopping times; calibrate pumps before and after sampling; conduct aggressive air sampling (by agitating the air inside the work area to ensure that present asbestos fibers are rendered airborne for collection and measurement); and decontaminate air samplers and their equipment before leaving the asbestos work area or signing in and out of containment; and 2) CES employees, in certain cases, conducting air sampling without entering work areas; letting contractors collect air samples themselves; and overstating sampling times.

• CES thereby negligently released asbestos into the ambient air and negligently placed persons in imminent danger of death or serious bodily injury from exposure to asbestos fibers.

In 2010, a 15-count superseding indictment charged CES and others with environmental offenses and mail fraud, and a jury trial concluded with the conviction of CES and three co-defendants. In 2014, however, the U.S. Court of Appeals for the Second Circuit reversed the convictions and remanded for a new trial as to the three defendants (including CES) that appealed their convictions. The sentencing of CES for negligent endangerment resolves the pending charges against CES and two co-defendants who also appealed.  Two other co-defendants face re-sentencing.

This case was investigated by the U.S. Environmental Protection Agency Criminal Investigation Division, New York Regional Office and Syracuse Resident Office, whose diligence and dedication U.S. Attorney Hartunian commended.  On remand, the case was prosecuted by First Assistant U.S. Attorney Grant C. Jaquith.

PLATTSBURGH, NEW YORK – Bruce Michael Dority, age 55, of Ogdensburg, New York, was sentenced today to serve 112 months in prison on his convictions for receipt and possession of child pornography, announced United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations.

Chief U.S. District Court Judge Glenn T. Suddaby also ordered Dority to serve a lifetime of supervised release, to begin upon his release from prison.  Dority must also register as a sex offender.

Dority admitted that between November 2013 and April 2014, he searched on the Internet for graphic images of minors engaged in sexually explicit conduct, found such images, and downloaded such images onto his computer in order to view them.  Dority also admitted that on May 6, 2014, he possessed numerous graphic image files of minors engaged in sexually explicit conduct.

This case was investigated by Homeland Security Investigations and was prosecuted by Assistant United States Attorney Katherine Kopita.

ALBANY, NEW YORK – Anthony Redd, age 32, of Troy, New York, was sentenced today to serve 24 months of imprisonment for distributing crack cocaine, announced United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration.

United States District Judge Mae A. D’Agostino also sentenced Redd to serve three years of supervised release after his release from prison.

As part of his February 2015 guilty plea, Redd admitted that on March 10, 2014, in Troy, he agreed to sell 30 grams of crack cocaine to another.  Redd further admitted that he actually sold 26.1 grams of crack cocaine to that person, in exchange for $1,800. 

This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Wayne A. Myers.

ALBANY, NEW YORK – Scott Valente, age 58, of East Greenbush, New York, was sentenced today to 20 years in prison, and ordered to pay about $8.2 million in restitution, after being convicted in May of securities fraud, mail fraud, and obstructing and impeding the internal revenue laws.

The announcement was made by United States Attorney Richard S. Hartunian; Shantelle P. Kitchen, Special Agent-in-Charge of the Internal Revenue Service-Criminal Investigation’s New York Field Office; and Andrew W. Vale, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation.

United States District Judge Gary L. Sharpe also ordered Valente, formerly of Schenectady, to serve 3 years of supervised release following his release from prison. The Securities and Exchange Commission (SEC) has also filed a civil enforcement action against Valente and his company The ELIV Group LLC in the United States District Court for the Southern District of New York.

“What Scott Valente did was terrible, both in terms of the financial ruin he caused and the emotional anguish he inflicted on his victims,” stated U.S. Attorney Richard S. Hartunian. “He stole several million dollars, improperly invested millions more, and lied to people who put their trust in him and gave him their life savings. These people are devastated. My Office and our agency partners are working hard to recoup as much money as possible for them. And as we have done for many years, we will continue to investigate and prosecute investment advisors who steal from their clients.”

“Today, Mr. Valente was held accountable for the harm he inflicted on the many investors who trusted him,” said Special Agent-in-Charge Shantelle P. Kitchen of IRS-Criminal Investigation.  “Ultimately, this investigation succeeded in preventing Mr. Valente’s victims from sustaining additional losses and protecting potential investors from harm.  Additionally, through his representations that he and ELIV were authorized to accept, hold and manage IRA accounts, Mr. Valente made the Internal Revenue Service an unwilling part of his investment fraud scheme.  He subsequently learned how seriously IRS-Criminal Investigation takes attempts to impede and obstruct the tax laws.”

“This kind of fraud is an insidious act that involves not only criminality but a willingness to prey on others for personal gain,” said FBI Special Agent in Charge Andrew W. Vale.  “The FBI is committed to working with its law enforcement partners to ensure people like Mr. Valente are held accountable for their misdeeds.  The FBI is pleased to see justice for Mr. Valente’s victims.”

Valente, working out of Albany, Schenectady and Warwick, New York, operated an investment fraud scheme that began in December 2010 and ended on June 16, 2014.

Through his investment company The ELIV Group, LLC, Valente received more than $10.6 million from more than 100 individual investors, many of them residing in Upstate New York. He told them that he had achieved annual investment returns of 36.38%, 48.27%, 44.56% and 45.11% for the years 2010 through 2013, respectively.  In fact, Valente lost money in each of those years. 

Valente also took about $2.2 million in unauthorized management fees, which he used to enrich himself through cash withdrawals totaling $230,000, personal credit card payments totaling $443,000, and the purchases of real estate (including a $117,000 condominium in Vermont), $424,000 in home improvements, $35,000 worth of jewelry, and $20,000 worth of liquor.  In addition to taking $2.2 million, Valente made substantial investments in non-public companies that will be difficult to liquidate, contrary to what he told investors he would do with their money.

Valente also falsely represented to more than 30 ELIV investors that he or his company were authorized to accept, hold and manage Individual Retirement Accounts (IRA), which get preferential treatment under U.S. tax law.  In fact, neither Valente nor ELIV was authorized by the IRS to accept, establish or maintain IRA accounts.  In an effort to obstruct and impede the IRS by preventing the IRS from learning of his unauthorized acceptance, holding and management of IRA accounts, Valente altered ELIV investment statements to make it appear as though ELIV had properly received certain investors’ IRA rollover investments, that ELIV was holding the investments as an IRA, and that there should be no taxable distributions to the ELIV investors.

ELIV ceased operations on June 16, 2014, when the SEC, in a separate civil proceeding, obtained a preliminary injunction enjoining ELIV’s operations and freezing its assets. 

This case was investigated by Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Rick Belliss.

PLATTSBURGH, NEW YORK – Heath Powers, age 34, of Plattsburgh, New York, was sentenced today to serve 40 years in prison as a result of his convictions for production,  distribution 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. 

U.S. District Court Judge Mae A. D’Agostino also ordered Powers to serve a lifetime of supervised release, to begin upon his release from prison. Powers must also register as a sex offender.

Powers, a former youth theater group leader, admitted that between June and August 2014, he used a minor to engage in sexually explicit conduct and took photos of that conduct. Powers distributed images he produced of his victim in the hopes of receiving, from other people, additional child pornography depicting other minors.

This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Katherine Kopita.

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/.