Northern District of New York

News Conference
November 20, 2015
2:30 p.m.
U.S. Attorney’s Office, 445 Broadway, Albany, NY 12207
Second Floor

ALBANY, NEW YORK – United States Attorney Richard S. Hartunian, along with Andrew W. Vale, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation, and Ronald Whitsett, Assistant Special Agent in Charge at the New York Office of IRS-Criminal Investigation, will hold a news conference tomorrow, November 20, at 2:30 p.m., in the U.S. Attorney’s Office.

The conference concerns the sentencing of Scott Valente, which is scheduled to take place in Albany on November 20, starting at 11 a.m., before the Hon. Gary L. Sharpe, U.S. District Judge.

Media has been granted permission to bring cameras and cell phones to the U.S. Attorney’s Office Second-Floor Conference Room.

News releases will be distributed at the conference. Further information will not be available until the conference.

BINGHAMTON, NEW YORK – Nine (9) Binghamton area men were arrested today on federal drug conspiracy charges following an investigation by the Federal Bureau of Investigation (“FBI”), the New York State Police and the Broome County Special Investigations Unit Task Force, announced United States Attorney Richard S. Hartunian. The charges filed in federal court allege that the nine (9) men were engaged in a conspiracy to possess with intent to distribute and distribute cocaine powder, crack cocaine, heroin, marijuana and prescription drugs as part of a drug trafficking organization known as “the Eddie Block Gang.”  The criminal complaint alleges that the conspiracy operated from January 2014 to present. 

The defendants are:

IZABIVONE L. HUGHES, aka “Zay” and “Baby Boy,” age 22, of Johnson City, New York
ANTHONY E. BOYD, JR., aka “Height,” age 24, of Endicott, New York
TERRILL S. COLLINS, aka “LI” and “Neva Curve,” age 23, of Binghamton, New York
JOHN P. ABBADESSA, age 21, of Binghamton, New York
JALON T. PARKER, aka “Flex” and “Slizzy” age 23, of Binghamton, New York
ANTHONY J. RANDOLPH, JR., aka “Bleach,” age 29, of Binghamton, New York
RASHAWN C. CAUTHEN, aka “Tego,” age 24, of Binghamton, New York
AALIM M. SHABAZZ, aka “Hash,” age 23, of Binghamton, New York and THEODORE J. COOK, aka “Tato,” age 27, of Binghamton, New York

If convicted of drug conspiracy, the defendants face maximum sentences of up to life imprisonment, minimum sentences of at least ten (10) years imprisonment, a term of supervised release of at least five (5) years following imprisonment and a fine of up to $10 million.

Anthony J. Randolph, Jr., aka “Bleach” is also charged with possession of a firearm by a convicted felon and faces a maximum sentence of up to ten (10) years imprisonment, a term of supervised release of three (3) years following imprisonment, and a fine of up to $250,000.

The defendants were arraigned today in Binghamton, New York, before United States Magistrate Judge Therese Wiley-Dancks

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

This case was investigated by The FBI, The New York State Police and the Broome County  Special Investigations Unit Task Force, which is comprised of officers and detectives of the City of Binghamton Police Department, the Broome County Sheriff’s Office, the Johnson City Police Department and the Endicott Police Department, and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.

SYRACUSE, NEW YORK –Yesterday Grover Horn, 71, of Cayuga County, New York, pled guilty and was sentenced in federal court for embezzling money orders and cash from the U.S. Post Office in Martville, New York, announced United States Attorney Richard S. Hartunian and Eileen Neff, Special Agent in Charge, United States Postal Service, Office of Inspector General (USPS OIG), Northeast Area Field Office. Following the entry of his guilty plea, Horn was sentenced to a one (1) year term of probation and 50 hours of community service. The defendant was also ordered to pay more than $6,000 in restitution to the United States Postal Service.

The defendant admitted in court that he used his position as Postmaster to embezzle more than $6,000 in money orders and cash over a period of several weeks during July and September 2015. Horn was an employee of the Postal Service for more than 30 years.

This case was investigated by USPS Office of Inspector General and was prosecuted by Assistant United States Attorney Michael F. Perry.

SYRACUSE, NEW YORK – Yesterday Ergys Metashi, 34, of Ontario, Canada, was sentenced to a term of three (3) years in prison, followed by a three-year term of supervised release, in connection with his conviction after trial for bringing an alien to the United States for the purpose of financial gain, announced United States Attorney Richard S. Hartunian, Homeland Security Investigations, Assistant Special Agent in Charge Nicholas DiNicola, and Timothy J. Walker, Area Port Director, U.S. Customs and Border Protection, Area Port of Alexandria Bay.

Ergys Metashi, a commercial truck driver originally from Albania who lives and works in Canada, was convicted following a July jury trial in federal court of bringing an alien to the United States from Canada through the Alexandria Bay Port of Entry, New York, on March 31, 2015.  The evidence at trial showed that Metashi agreed to smuggle the alien, a fellow Albanian, into the United States by hiding him in the sleeping compartment of a tractor trailer in exchange for the promise of a payment of several thousand American dollars.  During an inspection, U.S. Customs and Border Protection Officers found the alien hiding under a blanket in the truck and arrested Metashi.

This case was investigated by Homeland Security Investigations and U.S. Customs and Border Protection, and was prosecuted by Assistant United States Attorney Michael F. Perry.

SYRACUSE, NEW YORK – Robert A. Williams, 24, of Watertown, NY, was sentenced yesterday to serve 130 months imprisonment followed by 5 years of supervised release in connection with the armed robbery of a convenience store in Watertown, announced U.S. Attorney Richard S. Hartunian.  On July 8, 2014 Williams pled guilty in U.S. District Court to using and carrying a sawed-off shotgun during and in relation to a crime of violence, and being a felon in possession of firearms and ammunition. 

In July 2013, Robert Williams and Robert Mono stole four shotguns, a rifle, and ammunition from a residence in Lewis County.  Williams and Mono used a hacksaw to cut down the barrels and stocks of the four shotguns.    On July 31, 2013, Williams and Yarbrough Latulas entered a Sunoco located at 1222 Washington Street, Watertown, New York where WILLIAMS pointed one of the stolen sawed-off 12 gauge shotguns at the store clerk and stated “give me your money.”  The clerk then opened the cash register and handed over $513.00 in cash.  Yarbrough Latulas stole $395.00 in tobacco products from behind the counter and instructed the clerk to get on the floor. 

Yarbrough Latulas was convicted after trial in U.S. District Court for interference with interstate commerce by robbery, and using and carrying a sawed-off shotgun during and in relation to a crime of violence. He was sentenced on November 5, 2015 to eighteen years in prison. Robert Mono pled guilty in U.S. District Court to being a felon in possession of firearms and ammunition and was sentenced on October 14, 2015 to nine years in prison.
 
This prosecution resulted from an investigation conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, Syracuse, New York, the Watertown Police Department and the Metro-Jefferson Drug Task Force.  The case was prosecuted by Assistant United States Attorneys Ransom P. Reynolds and Nicolas Commandeur.

ALBANY, NEW YORK – Today, a federal jury trial culminated in the conviction of Edward A. Leon, 43, of St. Johnsville, New York, of two counts of making false declarations before a federal grand jury, announced United States Attorney Richard S. Hartunian and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.

Leon faces an aggregate maximum sentence of imprisonment of 10 years (5 years for each count of conviction), a $500,000 fine, and a term of supervised release of up to five years when he is sentenced on March 8, 2016 by United States District Judge Gary L. Sharpe. 

The jury voted to convict on November 12, following a three-day trial. The perjury convictions are for two false declarations that Leon made in testimony before a grand jury conducting an investigation into the fire on May 2, 2013 at 438 Hulett Street in Schenectady, New York, which caused the deaths of David Terry and three young children, seriously injured another child, and destroyed the building and the personal property inside.

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

“The defendant’s perjury was a flagrant affront to the integrity of our system of justice and the fact-finding process,” stated U.S. Attorney Richard S. Hartunian. “He intentionally impeded the investigation into an arson murder, with very significant consequences.  Neither the defendant’s crime nor the passage of time have dimmed our resolve to secure justice for the victims and their families.  We are grateful for the outstanding work and dedication of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Schenectady Police Department, and of the Schenectady Fire Department.”

This case was investigated by the ATF, the Schenectady Police Department, and the Schenectady Fire Department. The case is being prosecuted by First Assistant U. S. Attorney Grant C. Jaquith and Assistant United States Attorney Wayne A. Myers.

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

The ATF is offering a reward of up to $12,000 for information leading to the arrest and conviction of the person(s) responsible for the arson that occurred on May 2, 2013 at 438 Hulett Street in Schenectady, resulting in personal injury and death.  All information will be treated confidentially and the callers will remain anonymous if requested.  Anyone having information should call the ATF Albany Field Office at 518-431-4182, or email [email protected].

ALBANY, NEW YORK – Lamar McFadden, 30, of Newark, New Jersey, pled guilty yesterday to assaulting a federal officer and inflicting bodily injury, announced United States Attorney Richard S. Hartunian and Steve Langford, Warden of Federal Correctional Institution (FCI) Ray Brook.

McFadden pled guilty pursuant to a plea agreement calling for a sentence of 72 months of imprisonment, to be served consecutively to his current term of imprisonment ,and three years of supervised release. That sentence is subject to approval by Chief U.S. District Court Judge Glenn T. Suddaby; sentencing is scheduled for March 1, 2016 in Albany.

On August 27, 2014, McFadden was an inmate at FCI Ray Brook in Ray Brook, New York, when a Bureau of Prisons officer instructed him to perform his prison job. McFadden refused, and when the officer attempted to escort him to the lieutenant’s office, McFadden pushed the officer to the ground and held him in a headlock in the prison dining hall. In the course of the assault, McFadden wounded the officer’s scalp and forehead, causing bleeding to the scalp.

This investigation was conducted by the U.S. Bureau of Prisons and is being prosecuted by Assistant United States Attorney Cyrus P.W. Rieck.

SYRACUSE, NEW YORK –Burton Greenberg, 75, of Plantation, Florida pled guilty on November 6, 2015, in Federal Court in Fort Lauderdale, Florida to a Northern District of New York indictment charging him with conspiracy to commit wire fraud, announced United States Attorney Richard S. Hartunian and FBI Special Agent In Charge Andrew W. Vale. Greenberg faces a maximum term of twenty years imprisonment, a fine of up to $250,000, an order of restitution in the amount of over $10 million and a forfeiture money judgment of over $10 million. Sentencing is scheduled for January 22, 2016 in federal court in Fort Lauderdale, Florida.

Greenberg is President/CEO of M&P Global Financial Services, Incorporated, a Florida based corporation that entered into agreements in 2001 with Global Financial Fund 8, LLP, a company that solicited and received over $10 million from investors located throughout the United States, including residents of the Northern District of New York. As part of his guilty plea, Greenberg admitted that rather than investing the money in a secure investment as promised, he instead used the funds to make separate investments on his own behalf. In an effort to avoid detection and allow him to continue to divert money for his own use, Greenberg helped orchestrate the payment of phony "profit" distributions to investors in 2004 and 2005 which were merely a partial return of their principal investment. Further, from 2004 to 2013 Greenberg repeatedly assured the investors via e-mail that their investments were secure and profitable when he knew this was false.

The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Geoffrey Brown.

SYRACUSE, NEW YORK – Yarbrough Latulas, 31, of Watertown, NY, was sentenced today to serve 216 months imprisonment followed by 3 years of supervised release in connection with the armed robbery of a convenience store in Watertown, announced U.S. Attorney Richard S. Hartunian. On May 22, 2015 Latulas was found guilty of conspiracy to interfere with interstate commerce by robbery, interference with interstate commerce by robbery, and using and carrying a sawed-off shotgun during and in relation to a crime of violence, following a five day jury trial in United States District Court in Syracuse. The sentence imposed today included an enhancement for obstruction of justice based upon the defendant’s false testimony during the trial.

The evidence at trial established that on July 31, 2013, Yarbrough Latulas and Robert Williams acted together when they entered the Sunoco mini-mart at 1222 Washington Street, Watertown, New York where Latulas stole money and tobacco products while Robert Williams pointed a sawed-off 12 gauge shotgun at the store clerk. Robert Williams pled guilty to participating in the armed robbery and will be sentenced on November 12, 2015.

This prosecution resulted from an investigation conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, Syracuse, New York, the Watertown Police Department and the Metro-Jefferson Drug Task Force. The case was prosecuted by Assistant United States Attorneys Ransom P. Reynolds and Nicolas Commandeur.

ALBANY, NEW YORK – Lawrence Macera, age 65, of Rensselaer, was sentenced yesterday to serve two years of probation and to pay $54,041.43 in restitution on a conviction of theft of government property, announced United States Attorney Richard S. Hartunian and Martin J. Dickman, Inspector General for the United States Railroad Retirement Board.

In May, Macera pled guilty to a one-count Information charging theft of government property. Macera was sentenced by U.S. District Court Judge Mae A. D’Agostino.

Macera was prosecuted for receiving approximately $54,041.43 of retirement benefits to which he was not entitled. Specifically, Macera, who was receiving a disability annuity from the Railroad Retirement Board at the time, failed to report income that he received between January 1, 2009 and December 31, 2010. His failure to report that income caused the Railroad Retirement Board to pay him money to which he was not entitled.

This case was investigated by the United States Railroad Retirement Board, Office of Inspector General, and prosecuted by Assistant United States Attorney Emily T. Farber.

ALBANY, NEW YORK – Ian Finn, age 39, of Summit, New Jersey, was sentenced yesterday to 21 months of imprisonment for a wire fraud conviction arising from his theft of $238,000 from a charity, 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 ordered Finn to pay restitution of $238,000 to his victim and sentenced him to three years of supervised release to be served after he is released from prison.

As part of his November 2014 guilty plea, Finn admitted that, while serving as the elected corporate treasurer on the Board of Directors for Rensselaer Acacia Corporation, a charitable organization that holds assets for the Acacia Fraternity at Rensselaer Polytechnic Institute in Troy, New York, he stole $238,000 from the organization’s accounts for his personal use and the use of his friends and family. Finn used the stolen funds to pay personal expenses, including for vacations, bar tabs and electronics. Finn attempted to cover up the theft by making misrepresentations to the organization’s Board of Directors over many years.

This case was investigated by the United States Attorney’s Office for the Northern District of New York and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Wayne A. Myers.

ALBANY, NEW YORK – Cory M. Saddlemire, age 34, of Nassau, was indicted today for unlawfully possessing multiple firearms, announced United States Attorney Richard S. Hartunian and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.

The charges filed against Saddlemire carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years.

Saddlemire is prohibited from possessing firearms because of a Protective Order pending against him and his prior felony conviction.

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

This case is being investigated by the ATF and the Village of Nassau Police Department, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock in coordination with the Rensselaer County District Attorney’s Office.

ALBANY, NEW YORK – James Newland, age 30, was indicted today for moving to Gloversville, New York, from California without updating his sex offender registration, announced United States Attorney Richard S. Hartunian.

The charge filed against Newland carries a maximum sentence of 10 years imprisonment, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life.

Newland was arrested last month on a Criminal Complaint. On October 13, he appeared before United States Magistrate Judge Christian F. Hummel in Albany and was detained following a detention hearing.

Newland was charged with a violation of the Sex Offender Registration and Notification Act (“SORNA”), also known as the Adam Walsh Protection and Safety Act, which requires a convicted sex offender to register where he or she resides, is employed, or is enrolled as a student, and to keep any registration current.

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

Newland’s arrest is the result of an investigation by the United States Marshals Service Sex Offender Investigation Branch, North East Region; the United States Marshals New York/New Jersey Regional Fugitive Task Force; the Johnston Police Department; and the Gloversville Police Department. The case is being prosecuted by Assistant United States Attorney Solomon B. Shinerock.

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

ALBANY, NEW YORK – Michael VonFricken and John VonFricken were indicted separately for obtaining false receipts for orthodontic services and submitting them to their union’s health care plan, announced United States Attorney Richard S. Hartunian.

The charges carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years.

Both defendants were arraigned on November 3, 2015 in Albany, New York, before United States Magistrate Judge Christian F. Hummel, and released pending a trial scheduled for January 4, 2016 before United States District Judge Mae A. D’Agostino.

John VonFricken, age 55, of Troy, New York, is charged with health care fraud for obtaining $54,600 in reimbursements from the Health and Welfare Plan of the Plumbers and Steamfitters, Local Union Number 7.

Michael VonFricken, age 44, of Troy, is charged with health care fraud for obtaining $32,732 in reimbursements from the Health and Welfare Plan of the Plumbers and Steamfitters, Local Union Number 7.

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 Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorneys Jeffrey C. Coffman and Solomon B. Shinerock.

ALBANY, NEW YORK – Peter Kellner, age 77, of Sunrise, Florida, was sentenced yesterday to two years of probation and ordered to pay restitution in the amount of $75,297.94, following his conviction for attempted tax evasion, announced United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office.

Kellner was sentenced in Albany by U.S. District Judge Mae A. D’Agostino. He pleaded guilty on November 3, 2014.

Kellner, a licensed real estate appraiser formerly of Philmont, New York, incurred a personal tax liability that had grown to approximately $86,179.94 by October 2008. In an effort to reduce his owed tax, Kellner submitted a false Offer of Compromise to the Internal Revenue Service, falsely reporting assets totaling $8,612. However, at that time, Kellner had assets totaling $79,263 in the form of 81 United States Postal Money Orders that he did not disclose to the IRS. On the basis of the false information Kellner provided, the IRS approved his Offer of Compromise on May 26, 2009, allowing him to resolve his tax debt for only $8,612. After his tax debt was resolved, Kellner negotiated approximately $78,540 in Postal Money Orders between May 26, 2009 and October 2010, and the IRS thereafter discovered that Kellner had attempted to evade the payment of his taxes.

This case was investigated by IRS-Criminal Investigation’s New York Field Office and was prosecuted by Assistant United States Attorney Ransom P. Reynolds.

ALBANY, NEW YORK – A jury voted yesterday to convict three people of entering into fraudulent marriages for the purpose of allowing two of them to unlawfully remain in the United States, announced United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations.

Gaurav Mehta, age 35, a citizen of India, was convicted of one count of marriage fraud and two counts of immigration fraud. Isha Mehta, age 32, a citizen of India, also known as Isha Kamboj and Isha Johnson, was convicted of one count of marriage fraud and one count of immigration fraud. Mary Opoka, age 55, of Troy, New York, was convicted of one count of marriage fraud.

The Mehtas each face up to 10 years in prison on each of the immigration fraud convictions. Each defendant faces a maximum of 5 years in prison on their marriage fraud conviction. Senior United States District Court Judge Thomas J. McAvoy is scheduled to sentence the three defendants on March 14, 2016 in Albany.

The jury reached a verdict on November 3, after a 6-day trial.

The evidence at trial established: Gaurav and Isha Mehta were married in India in February 2006. They divorced in India in 2009, but then flew together, along with their child, to the United States, eventually settling in Menands, New York, and working together at a Menands gas station. The Mehtas came to the United States on 6-month tourist visas that expired in 2010; neither had authorization to stay in the United States.

In October 2011, Opoka, a U.S. citizen, and Gaurav Mehta, an alien unlawfully present in the United States as of January 2010, were married in Troy. The marriage was designed to enable Gaurav Mehta to stay in the United States. Because of the fraudulent marriage to a U.S. citizen, Gaurav Mehta was issued an employment authorization document and a conditional permanent resident card that he was not eligible to receive.

Isha Mehta, an alien unlawfully present as of January 2010, married Brandon Johnson, a U.S. citizen, in Troy in January 2013. Gaurav Mehta paid Johnson $2,000 to marry Isha. The marriage was designed to enable Isha Mehta to stay in the United States. Because of the fraudulent marriage to a U.S. citizen, Isha Mehta was issued an employment authorization document that she was not eligible to receive.

On March 12, 2014, Brandon Johnson pled guilty to marriage fraud; he is scheduled to be sentenced on February 17, 2016.

The case was investigated by Homeland Security Investigations with assistance from the Menands Police Department, and is being prosecuted by Assistant U.S. Attorney Edward P. Grogan.

ALBANY, NEW YORK – Ronnie Robinson, age 21, of Troy, New York, was sentenced today to four years in prison after being convicted of the crime of felon in possession of a firearm, announced United States Attorney Richard S. Hartunian, Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division, and Rensselaer Police Department Chief Frederick Fusco.

Robinson was a passenger in a car stopped by the Rensselaer Police Department for a traffic violation in the early morning hours of June 24, 2014. When asked to exit the vehicle, he fled on foot and in the course of his flight dropped a handgun. After further pursuit, Robinson was captured and the handgun was recovered. At the time, Robinson had prior state felony convictions for attempted criminal possession of a narcotic drug (third degree) and attempted reckless endangerment (first degree).

The four-year sentence of imprisonment, imposed by U.S. District Court Judge Gary L. Sharpe, will be served consecutively to the 18-month to 3-year sentence of imprisonment Robinson is currently serving for an unrelated state conviction. Following his release from prison, Robinson will be required to serve three years of supervised release.

The case was investigated by the ATF and the Rensselaer Police Department, and was prosecuted by Assistant United States Attorney Cyrus P.W. Rieck.

ALBANY, NEW YORK – Calvin Stephon Moore, age 50, of Utica, pleaded guilty today to three counts of bank robbery, 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.

Moore faces up to 20 years of imprisonment, up to three years of supervised release and a maximum $250,000 fine when he is sentenced by Senior United States District Judge Thomas J. McAvoy on February 10, 2016 in Albany.

Moore committed bank robberies in Schenectady, Utica and Columbia, South Carolina.

On November 17, 2014, Moore and another man robbed a KeyBank branch in Schenectady. During the robbery, Moore stated to a teller, “this is a hold up give me money.” The two robbers fled the bank with $5,035. Schenectady Police found and arrested Moore’s accomplice near the bank; the accomplice had a backpack containing the stolen money and a copy of Moore’s birth certificate.

The following day, Moore robbed an Adirondack Bank branch in Utica. He handed the teller a demand note, which stated: “THIS IS A ROBBERY. I HAVE A GUN AND WILL SHOOT IF YOU TRY ANYTHING. PUT ALL THE LOOSE BILLS (EVERY DENOMINATION) IN THE BAG … NO DYE PACK OR TRACERS OR I WILL SHOOT!” Moore fled the bank with $1,647.

Moore then traveled to South Carolina.

On December 30, 2014, Moore entered a First Citizens Bank branch in Columbia. He approached a teller and presented a note in which he demanded money. He also told the teller he had a gun. Moore fled the bank with $1,271, into which a teller had placed an exploding dye pack.

On the evening of December 30, officers from the Cayce, South Carolina, Police Department responded to a report of a person at a motel tossing a suspicious item over a fence and into a parking lot. The item was a bank dye pack and several $20 bills.

Officers set up a perimeter near the motel and began identifying people in the area. One person they stopped was Moore, who, when his identification was checked, was found to have a federal arrest warrant for bank robberies committed in the Northern District of New York.

Officers determined that Moore was staying at the motel that had called the police, and obtained and executed a search warrant for Moore’s room. Officers recovered about $965 in U.S. currency; the serial numbers on some of this currency matched the serial numbers of some of the currency taken earlier in the day from the First Citizens Bank branch.

The investigation into the Schenectady and Utica robberies was conducted by the Albany Division of the Federal Bureau of Investigation, and the Schenectady and Utica Police Departments.

The investigation into the Columbia, South Carolina robbery was conducted by the Columbia Division of the FBI, and the Columbia and Cayce Police Departments. The case is being prosecuted by Assistant United States Attorney Michael Barnett of the Northern District of New York, and by Assistant United States Attorney Benjamin N. Garner of the District of South Carolina.

ALBANY, NEW YORK – Carmen Gentile, Jr., age 53, of Amsterdam, New York, pleaded guilty yesterday to conspiracy to defraud the United States and file fraudulent tax returns, announced United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office.

Gentile faces a maximum penalty of five years of imprisonment, a fine of $250,000, and a maximum term of supervised release of three years when he is sentenced on February 17, 2016 by United States District Judge Gary L. Sharpe. Gentile may also be ordered to reimburse the government for any tax loss resulting from his conduct.

As part of his guilty plea, Gentile, the owner and operator of Complete Financial Accounting Services in Gloversville, New York, admitted that from March 2006 through April 2008, he and co-conspirators Angela Witzke and Michele Lennon worked together to prepare, and submit to the IRS, dozens of tax returns for clients that omitted income and claimed inflated charitable contributions, expenses, and losses. Gentile and his co-conspirators filed these returns despite knowing they contained false statements concerning their clients’ income, expenses, and losses.

Both Witzke and Lennon have also pleaded guilty to conspiracy to defraud the United States and file fraudulent tax returns; both are scheduled to be sentenced on January 14 by Judge Sharpe.

This case was investigated by IRS-Criminal Investigation’s New York Field Office and is being prosecuted by Assistant United States Attorney Wayne A. Myers.

PLATTSBURGH, NEW YORK – Three Keeseville residents have been indicted on charges related to the manufacture and distribution of methamphetamine and the possession of pseudoephedrine for use in the manufacture of methamphetamine, announced United States Attorney Richard S. Hartunian, Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration, and New York State Police Superintendent Joseph A. D’Amico.

The four-count indictment alleges that Michael Lecuyer, 37, of Keeseville; Anita Lecuyer, 36, of Keeseville; and Keith Wolfe, 46, of Keeseville, conspired to manufacture, possess with intent to distribute, and to distribute methamphetamine. The indictment also charges each defendant with possession and distribution of a listed chemical, specifically pseudoephedrine, knowing and having reasonable cause to believe it would be used to manufacture methamphetamine.

The defendants were arraigned on October 13 and released pending trial, which is scheduled for December 14, 2015, in Syracuse before United States District Judge Brenda K. Sannes.

If convicted on the conspiracy charge, the maximum penalties each defendant faces are a term imprisonment of 20 years, a $1,000,000 fine, and lifetime supervised release. If convicted of possession and distribution of a listed chemical, the maximum penalties each defendant faces are a term of imprisonment of 20 years; a $250,000 fine; and 3 years of supervised release.

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

This case is being 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 is prosecuting the case.

ALBANY, NEW YORK – A jury on Friday voted to convict John W. Caltabiano, Jr., age 48, of Catskill, and Colleen J. McCarten, age 43, of Coxsackie, of conspiracy to commit mail fraud, five counts of mail fraud, and theft of government property, announced United States Attorney Richard S. Hartunian and Edward J. Ryan, Special Agent-In-Charge of the Social Security Administration (SSA) Office of the Inspector General.

The jury reached a verdict on October 16, after a two-week trial. Caltabiano and McCarten face up to 20 years in prison on each of the conspiracy and mail fraud counts, and a maximum of 10 years of imprisonment on the theft of government property count. United States District Judge Mae A. D’Agostino is scheduled to sentence them on February 18, 2016.

Between April 2008 and October 2010, Caltabiano and McCarten conspired to steal Social Security Disability and Workers’ Compensation benefits by falsely presenting Caltabiano as completely blind to the SSA, the New York State Workers’ Compensation Board and Travelers Insurance. Surveillance videos showed Caltabiano driving, shopping and otherwise moving about without assistance.

“The jury’s verdict holds the defendants accountable for pretending that one of them was completely blind in order to increase his Social Security Administration and workers’ compensation benefits,” stated U.S. Attorney Richard S. Hartunian. “My office will continue to work with the Social Security Administration’s Office of the Inspector General to ensure that such deceit does not pay.”

“We applaud the jury’s verdict and the successful efforts of the U.S. Attorney’s Office and the Social Security Administration’s Office of General Counsel in bringing this case to justice,” stated Edward J. Ryan, Special Agent-In-Charge of the SSA Office of the Inspector General. “As guardians of the public trust, our office will continue to investigate SSA beneficiaries who feign their medical conditions and submit false documentation to the SSA. Our successful criminal prosecutions protect the SSA trust funds for those who truly deserve disability benefits.”

This case was investigated by the Social Security Administration Office of the Inspector General and the New York State Workers’ Compensation Board, and is being prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman and Special Assistant U.S. Attorney Jason W. White.

ALBANY, NEW YORK – Georgette Jackman, age 37, a citizen of Guyana, pleaded guilty on October 16 to conspiracy to commit access device fraud, aggravated identity theft, and trafficking in counterfeit access devices, announced United States Attorney Richard S. Hartunian and Todd Laster, Special Agent in Charge of the Buffalo Field Office of the U.S. Secret Service.

Jackman was detained pending sentencing, which is scheduled for February 18, 2016 in Albany before United States District Judge Mae A. D’Agostino. She faces up to 15 years of imprisonment on the conspiracy and trafficking charges, and a mandatory two years of imprisonment on the aggravated identity theft charge, which must be served consecutive to any other sentence of imprisonment. Jackman also faces deportation from the United States following the completion of her punishment.

As part of her guilty plea, Jackman admitted that from February 2012 through January 2013, she and co-conspirators Jamese Williams and Terry Nicholas travelled together by car on a regular basis to stores throughout New York, Massachusetts, New Hampshire, Vermont and Connecticut, including approximately 47 Price Chopper grocery stores. During these trips Jackman provided Williams and Nicholas with hundreds of counterfeit credit cards bearing stolen account numbers and embossed names that did not correspond to the actual account holders. Williams and Nicholas used these cards to purchase $435,465 worth of gift cards, which they gave to Jackman.

This case was investigated by the Secret Service and is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.

SYRACUSE, NEW YORK –ROBERT MONO, 29, of Watertown, New York was sentenced yesterday in federal court to serve 112 months imprisonment to be followed by 3 year term of supervised release as the result of his convictions for possession of sawed-off firearms and ammunition by a convicted felon, and possession of unregistered firearms, announced United States Attorney Richard S. Hartunian.

"Keeping firearms and ammunition from felons and sawed-off shotguns off the streets are critically important to the safety of our communities. We are committed to the inter-agency cooperation that affords the best protection against tragedy," said U.S. Attorney Hartunian.

ROBERT MONO’s sentence resulted from his possession of four sawed-off shotguns, a rifle, and various types of ammunition at a residence in Watertown on July 23, 2013. MONO stole the five firearms and ammunition during a residential burglary and then used a hacksaw to shorten the barrels and stocks of the four shotguns. MONO also sold at least one of the four sawed-off shotguns to another person. MONO was previously convicted in Jefferson County Court of Burglary in the Third Degree, a felony.

The case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, (Syracuse, New York Office), the Watertown Police Department and the Metro-Jefferson Drug Task Force. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds.

ALBANY, NEW YORK – Howard Eugene Hazelton II, age 63, of East Greenbush, was sentenced today to serve 72 months in prison for distribution, receipt, 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.

In May, Hazelton pleaded guilty to an eight-count indictment, consisting of two counts of distribution of child pornography, one count of receipt of child pornography, and five counts of possession of child pornography.

U.S. District Court Judge Thomas J. McAvoy also sentenced Hazelton to 15 years of supervised release, to begin following his term of imprisonment, and to pay $2,500 to a child pornography victim.

Hazelton was prosecuted after he used the Internet to distribute child pornography to undercover officers of the Saratoga Springs and Colonie Police Departments. Subsequently, the FBI executed a search warrant on Hazelton’s home and seized electronic devices that contained sexually explicit images and videos of minors.

This case was investigated by the FBI, the Saratoga Springs Police Department and the Colonie Police Department, and prosecuted by Assistant U.S. Attorney Emily T. Farber and former Special Assistant U.S. Attorney Amanda Cox.

ALBANY, NEW YORK – Parker Sikand, age 23, of Ellington, Connecticut, was indicted last month on three felony charges of distributing, receiving and possessing 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.

Upon conviction, Sikand would face a mandatory minimum penalty of 5 years imprisonment on the distribution and receipt charges, with a maximum penalty of 20 years on each of the three charges. He would also face a potential 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.

Sikand has been released and is subject to pretrial supervision pending a trial scheduled for December 7, 2015 before United States District Court Judge Mae A. D’Agostino. He was indicted on September 24.

Sikand was living in Troy, New York, at the time of his alleged conduct.

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

This case is being investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.

This case is prosecuted as a part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.

ALBANY, NEW YORK – Jean Jacques Joseph Binette, age 53, of Canada, was sentenced today to serve 24 months in prison for illegally re-entering the United States, announced 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.

In August, Binette pleaded guilty to a violation of the Immigration and Nationality Act, which prohibits previously removed aliens from entering, attempting to enter or being found in the United States without permission. Binette was sentenced by U.S. District Court Judge Lawrence E. Kahn. Following Binette’s prison term, he will be removed from the United States.

Binette was prosecuted after he was encountered in June 2015 by the New York State Police in Dresden, New York. Immigration and Customs Enforcement (ICE) Officers then determined that Binette was an alien unlawfully present in the United States.

A check of Binette’s fingerprints indicated that he had been deported from the United States to Canada in 2000 after being convicted of an aggravated felony in Cook County, Illinois, in 1994. Binette was also deported a second time in 2002.

This case was investigated by U.S. Immigration and Customs Enforcement, with assistance from the New York State Police, and prosecuted by Assistant U.S. Attorney Edward P. Grogan.

ALBANY, NEW YORK – Damon J. Murray, age 27, of Albany, pleaded guilty today to importing the controlled substance ethylone into the United States, announced U.S. Attorney Richard S. Hartunian and Homeland Security Investigations (HSI) Assistant Special Agent in Charge Nicholas DiNicola.

Murray will face a maximum term of imprisonment of 30 years, a maximum fine of $2 million, and a term of supervised release of at least 6 years and up to life when he is sentenced on February 11, 2016 by United States District Judge Mae A. D’Agostino.

Ethylone, which is often used as a party drug, has been categorized as a Schedule I controlled substance since March 2014.

On February 12, 2015, U.S. Customs and Border Protection Officers in Cincinnati, Ohio, intercepted a package that had been sent from China to the United States, and which was addressed to “Damon Murray LLC” at the defendant’s residential address in Albany. The package was found to contain about 400 grams of ethylone. On February 26, 2015, the defendant accepted and signed for the package. HSI Special Agents then arrested the defendant, who admitted ordering the ethylone from China and also previously selling ethylone to others, sometimes marketing it as “molly.”

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

SYRACUSE, NEW YORK – Bruce Kane, 60, a former resident of Ithaca, New York who currently resides in Fort Lauderdale, Florida, and Burton Greenberg, 75, of Plantation, Florida were arrested today in Florida on a Northern District of New York indictment charging them with conspiracy to commit wire fraud, announced United States Attorney Richard S. Hartunian and FBI Special Agent In Charge Andrew W. Vale.

As alleged in the Indictment, Bruce Kane is the Managing Partner, Treasurer and Secretary of an investment partnership, Global Financial Fund 8, LLP, that solicited and received over $10 million from investors located throughout the United States, including residents of the Northern District of New York. The indictment alleges that Burton Greenberg, President/CEO of M&P Global Financial Services, Incorporated, a Florida based corporation, entered into agreements in 2001 with Kane and others to invest the $10 million on behalf of investors. The indictment further alleges that rather than investing the money in a secure investment as promised, the defendants instead used the funds to pay off personal debts, cover rent on a waterfront condominium, purchase a boat and make separate investments of their own. According to the indictment, in an effort to avoid detection and allow them to continue to improperly use the investors $10 million, the Defendants sent investors phony "profit" payments in 2004 and 2005 which were in reality a partial return of their principal investment. Further, the indictment alleges that from 2004 to 2013 the Defendants repeatedly assured the investors via e-mail that their investments were secure and profitable when they knew that was not the case.

Burton Greenberg appeared today in federal court in Ft. Lauderdale, Florida where he pled not guilty. Bruce Kane is scheduled to appear in court tomorrow. The case will be prosecuted in the Northern District of New York. If convicted, they face a maximum term of imprisonment of twenty years, a maximum fine of $250,000 and a potential forfeiture money judgment of $10 million.

The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Geoffrey Brown.

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

ALBANY, NEW YORK – Nathan Baum, age 30, of East Greenbush, New York, was indicted on September 30, 2015 for tampering with a consumer product and obtaining controlled substances by deception and subterfuge, announced United States Attorney Richard S. Hartunian; Special Agent in Charge Jeffrey G. Hughes of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office; and Acting Special Agent in Charge Jeffrey J. Ebersole of the U.S. Food and Drug Administration Office of Criminal Investigations.

The Indictment alleges that Baum, as a licensed practical nurse working at the Veterans Affairs Medical Center hospice ward, in Albany, improperly accessed syringes that contained oxycodone hydrochloride. Between April 8, 2014 and May 16, 2014, according to the Indictment, Baum removed the oxycodone hydrochloride from at least 25 syringes and replaced it with haloperidol.

Oxycodone hydrochloride, a Schedule II controlled substance, is a highly addictive narcotic analgesic used to treat moderate to severe pain and is to be prescribed only when medically required. Haloperidol, often marketed as Haldol, is an anti-psychotic medication used to treat certain mental/mood disorders and to treat uncontrolled movements or agitation.

Tampering with a consumer product carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. Obtaining controlled substances by deception and subterfuge carries a maximum sentence of 4 years in prison and a fine of up to $250,000.

Baum was arraigned on October 2 in Albany before United States Magistrate Judge Christian F. Hummel and released under pretrial supervision pending a trial scheduled for December 1 before United States District Court Judge Lawrence E. Kahn.

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

This case is being investigated by the U.S. Department of Veterans Affairs Office of Inspector General and the Food and Drug Administration Office of Criminal Investigations, and is being prosecuted by Assistant U.S. Attorney Elizabeth R. Rabe.

ALBANY, NEW YORK – Rafael Zapata, age 67, of the Dominican Republic, pleaded guilty today to illegally re-entering the United States following removal, announced United States Attorney Richard S. Hartunian and Border Patrol Chief Patrol Agent John C. Pfeifer.

Zapata faces a maximum of 20 years in prison, a maximum $250,000 fine, and a term of supervised release of up to 3 years when he is sentenced on February 3, 2016 by United States District Judge Mae A. D’Agostino.

Zapata pleaded guilty to a violation of the Immigration and Nationality Act (INA), which prohibits previously removed aliens from entering, attempting to enter, or being found in the United States without permission.

Zapata was encountered on July 28, 2015 by St. Regis Mohawk Tribal Police officers after crossing the border on the Akwesasne Reservation near Hogansburg, New York. Border Patrol agents responded and arrested Zapata when they determined that he was an alien unlawfully present in the United States. A check of Zapata’s fingerprints by Border Patrol indicated that he had been deported and removed from the United States to the Dominican Republic in 2008 after being convicted of a drug trafficking crime in 2003 in the United States District Court for the Southern District of New York.

This case was investigated by the United States Border Patrol with assistance from the St. Regis Mohawk Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney Edward P. Grogan.

ALBANY, NEW YORK – A jury last week found Ronaldo Reyes, 39, of Quebec, Canada, guilty of conspiracy to bring aliens to the United States and seven counts of bringing an alien to the United States, announced United States Attorney Richard S. Hartunian, United States Border Patrol Chief Patrol Agent John C. Pfeifer, and Homeland Security Investigations (HSI) Resident Agent in Charge Allen Vanscoy.

Reyes was indicted and extradited from Canada earlier this year. He faces at least five years and a maximum of fifteen years in prison when sentenced by United States District Judge Frederick J. Scullin Jr., as well as a maximum three-year term of supervised release.

Reyes was residing in Canada at the time of his crimes, but is from El Salvador. The evidence at trial, which concluded September 23 with a guilty verdict, established that Reyes smuggled aliens from Canada into the United States between January 2013 and July 22, 2013. Investigations conducted by Border Patrol agents at the Champlain, NY and Beecher Falls, VT, stations resulted in the detentions of 12 undocumented aliens whose passage into the United States was orchestrated by Reyes.

Reyes walked the aliens across the international border at night to a prearranged pickup vehicle before fleeing north to Canada on foot. The aliens paid Reyes thousands of dollars in U.S. and Canadian cash.

“The Department of Justice prioritizes cases involving the smuggling or transporting of undocumented individuals into the United States,” stated United States Attorney Richard S. Hartunian. “I commend the collaboration of our partner agencies, the United States Border Patrol and Homeland Security Investigations, which brought about the conviction.”

“The successful dismantling of this criminal organization was a result of the collaboration amongst several agencies and exemplifies how we conduct business every day,” stated John Pfeifer, Chief Patrol Agent, U.S. Border Patrol.

“Homeland Security Investigations is committed to targeting and dismantling smuggling organizations,” stated HSI Resident Agent in Charge Allen Vanscoy. “These investigations ensure integrity and safety at our borders and, more broadly, U.S. national security.”

This case was investigated by the United States Border Patrol and Homeland Security Investigations, and was prosecuted by Assistant U.S. Attorneys Douglas Collyer and Katherine Kopita.

SYRACUSE, NEW YORK – The United States Drug Enforcement Administration (DEA) will sponsor drop off sites where unused and unneeded prescription drugs can be disposed of by the public at locations all over the United States on Saturday September 26, 2015 from 10 am to 2 pm as part of National Prescription Drugs Take-Back Day, announced United States Attorney Richard S. Hartunian and DEA Resident Agent In Charge James Burns. Unused prescription drugs will be accepted at locations across the nation.

"This is a safe and convenient way to dispose of unneeded prescription drugs," said United States Attorney Hartunian.

This is the tenth DEA prescription drug take back. The last time the DEA accepted unused prescription drugs in November 2014, the public dropped off over 309 tons of unused pharmaceuticals.

Locations where unused prescription can be dropped off may be found at:

http://www.deadiversion.usdoj.gov/drug_disposal/index.html

SYRACUSE, NEW YORK – Brock Yancy, 35, of Syracuse, New York, was sentenced yesterday to serve 200 months (16 years, 8 months) in prison for his convictions for conspiracy to possess with the intent to distribute 280 grams or more of cocaine base (crack cocaine); and possession of a firearm in furtherance of drug trafficking, announced United States Attorney Richard S. Hartunian, Drug Enforcement Administration (DEA) Assistant Special Agent in Charge James Burns, and Syracuse Police Chief Frank Fowler. Chief United States District Judge Glenn T. Suddaby also sentenced Yancy to five years of supervised release following his jail term.

The sentence yesterday stemmed from a joint DEA and Syracuse Police PD investigation begun in 2013 into Yancy’s drug trafficking activities with co-conspirator Dwayne Handy in the Syracuse area. The wiretap investigation culminated on April 15, 2014, when agents arrested Handy and Yancy as they traveled to a drug deal. A search warrant executed at Yancy’s residence resulted in the seizure of over $32,000.00 in drug proceeds. An additional search warrant at a "stash" location the defendants’ utilized on Butternut Street, Syracuse recovered 12 grams of cocaine, several boxes of ammunition and four (4) handguns

This case was investigated by the DEA and Syracuse Police Department, and was prosecuted by Assistant United States Attorney Carla Freedman.

SYRACUSE, NEW YORK – Dwayne Handy, 37, of Syracuse, New York, was sentenced yesterday to serve fifteen years in prison for his convictions for conspiracy to possess with the intent to distribute 280 grams or more of cocaine base (crack cocaine); possession with the intent to distribute over 280 grams or more of crack cocaine, 500 grams or more of cocaine, and heroin; and possession of firearms in furtherance of drug trafficking, announced United States Attorney Richard S. Hartunian, Drug Enforcement Administration (DEA) Assistant Special Agent in Charge James Burns, and Syracuse Police Chief Frank Fowler. Chief United States District Judge Glenn T. Suddaby also sentenced Handy to five years of supervised release following his jail term.

The sentence yesterday stemmed from a joint DEA and Syracuse Police investigation begun in 2013 into Handy’s drug trafficking activities in the Syracuse area. The wiretap investigation culminated on April 15, 2014, when agents arrested Handy and co-conspirator Brock Yancy while they were traveling to a drug deal. Search warrants were executed at their residences, as well as a "stash" location they utilized on Butternut Street, Syracuse, where law enforcement officers recovered over 500 grams (1/2 kilogram) of crack cocaine, 500 grams (1/2 kilogram) of powder cocaine, heroin, and over $10,000.00 in cash in a safe belonging to Handy. Also seized in the search were several boxes of ammunition and four (4) handguns.

This case was investigated by the DEA and Syracuse Police Department, and was prosecuted by Assistant United States Attorney Carla Freedman.

BINGHAMTON, NEW YORK – Ten men were arrested Wednesday on federal charges of conspiring to distribute anabolic steroids and engage in international money laundering, announced United States Attorney Richard S. Hartunian, Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration, New York State Police Superintendent Joseph A. D’Amico, and Acting Inspector in Charge James V. Buthorn, U.S. Postal Inspection Service, Boston Division.

The felony charges, which allege that the defendants were part of a steroids distribution organization based in Broome County, New York, are contained in a September 11, 2015 indictment that was unsealed Wednesday afternoon in federal court in Binghamton. The defendants were arrested Wednesday morning in New York, New Jersey, Florida, Georgia and Delaware.

"Anabolic steroids are controlled substances that carry significant health risks when used or distributed unlawfully," stated U.S. Attorney Richard S. Hartunian. "As alleged in the indictment, these defendants were unlawfully distributing these dangerous substances and some of them engaged in international money laundering to carry on their steroids distribution ring. I commend the federal and state agencies that worked together to dismantle this organization."

The name of each defendant is set forth in the chart below, along with each defendant’s age, place of residence, the charges against him, and the maximum potential terms of imprisonment each faces upon conviction. The charges in the indictment are merely accusations. Each defendant is presumed innocent until proven guilty.

These charges are the result of a joint investigation conducted by the Drug Enforcement Administration, the United States Postal Inspection Service and the New York State Police.

"As alleged, these defendants were charged on drug trafficking and money laundering charges for their role in an international drug conspiracy," stated DEA Special Agent in Charge James J. Hunt. "Every day, 114 people die due to drug overdose, and law enforcement has committed our resources to identify, investigate and arrest those who distribute all illegal drugs. Similar to the consequences of any illegal drug, the repeated use of steroids leads to addiction, shame, embarrassment, heart attacks, strokes, cancer and jail."

"These arrests are the culmination of a wide-ranging investigation that uncovered a conspiracy to illegally distribute anabolic steroids," stated New York State Police Superintendent Joseph A. D’Amico. "These steroids exposed users to potentially dangerous health risks. I want to thank our Community Narcotics Enforcement Team and our federal partners for their work on this important case."

"The U.S. Postal Service is in the business of moving the mail and has no interest in being involved in the distribution of illegal drugs," stated Acting Postal Inspector in Charge James V. Buthorn. "Anabolic steroids are a controlled substance and like any other illegal drug, we want to keep them out of the U.S. Mail and away from the general public, who may not be aware of the full risks associated with their use. The men and women of the Postal Inspection Service work relentlessly to remove illegal narcotics from the mail while bringing to justice criminals who use the Postal Service to facilitate their crimes."

The case is being prosecuted by Assistant United States Attorneys Solomon B. Shinerock and Daniel Hanlon.

Defendants Charged

NAME

AGE

RESIDENCE

CHARGES

MAXIMUM POTENTIAL TERMS OF IMPRISONMENT

Ryan Root

36

West New York, New Jersey

Conspiracy to Possess with Intent to Distribute Anabolic Steroids
(Count One)

International Money Laundering (Count Two)

20 years
(Count One)

20 years
(Count Two)

Richard Progovitz

37

Port Crane, New York

Conspiracy to Possess with Intent to Distribute Anabolic Steroids

10 years

Caleb Doane

30

Las Vegas, Nevada

Conspiracy to Possess with Intent to Distribute Anabolic Steroids
(Count One)

International Money Laundering (Count Two)

10 years
(Count One)

20 years
(Count Two)

Kent Fletcher

46

Alpharetta, Georgia

Conspiracy to Possess with Intent to Distribute Anabolic Steroids
(Count One)

International Money Laundering (Count Two)

10 years
(Count One)

20 years
(Count Two)

Derek Strassle

32

Endicott, New York

Conspiracy to Possess with Intent to Distribute Anabolic Steroids
(Count One)

International Money Laundering (Count Two)

10 years
(Count One)

20 years
(Count Two)

Paul Boylan

31

Endicott, New York

Conspiracy to Possess with Intent to Distribute Anabolic Steroids
(Count One)

International Money Laundering (Count Two)

10 years
(Count One)

20 years
(Count Two)

Kyle Clark

30

Tampa, Florida

Conspiracy to Possess with Intent to Distribute Anabolic Steroids

10 years

Michael Gisondi

48

Belleville, New Jersey

Conspiracy to Possess with Intent to Distribute Anabolic Steroids

10 years

Jeremiah O’Brien

33

Binghamton, New York

Conspiracy to Possess with Intent to Distribute Anabolic Steroids
 

10 years
 

Jason Garcia

a.k.a.

Ignacio Javier Garcia

21

Duluth, Georgia

Conspiracy to Possess with Intent to Distribute Anabolic Steroids
 

10 years
 

SYRACUSE, NEW YORK – For the second time Syracuse has received a Project Safe Neighborhoods federal grant of nearly $300,000.00 for the continued support of gun violence reduction efforts. A similar grant was received in 2013. The grant funds a coalition of law enforcement agencies and community groups which combine their resources to reduce gun related violence in the City of Syracuse, announced United States Attorney Richard S. Hartunian.

"We are firmly committed to continuing this multi-agency and interdisciplinary effort to reduce death and injury from gun violence in Syracuse. There is no higher priority than combining resources to save the lives of our young people. The second round of funding provided by this grant will allow us to further expand and enhance these vital public safety and community support programs," said U.S. Attorney Hartunian.

"We appreciate the continued support of our partners in "Syracuse Truce." Since 2013 the collaboration between law enforcement and community services have proved to be an effective tool in combating gun and gang violence in city of Syracuse, while allowing a more positive relationship between the police and the community. We look forward to this relationship continuing,"said Syracuse Police Chief Frank Fowler

This latest funding for Syracuse also follows a 2013 federal grant of 1.5 million dollars to support the U.S. Department of Justice’s Comprehensive Gang Model, a program in place in other cities troubled by gang and gun violence.

United States Attorney Hartunian expressed his appreciation to the Syracuse Truce Executive Committee, the Executive Director for the Syracuse Salvation Army, Syracuse Model Neighborhood Facilities, the Mayor’s Office, the Syracuse Police Department, the Onondaga County District Attorney’s Office, The John F. Finn Institute of Public Safety and the Rosamond Gifford Foundation for their efforts in again obtaining this grant, and for their ongoing work combating gun and gang violence.

Under the Department of Justice’s Project Safe Neighborhoods Program, the grant will provide $300,000 to fund "Syracuse Truce," an innovative collaboration between law enforcement and community service agencies to reduce gun crime and gang violence and diminish tension between law enforcement and the community. Starting in the fall of 2014, Syracuse Truce was implemented with the assistance of the Rosamond Gifford Foundation. Since 2001, the Department of Justice’s Project Safe Neighborhoods Program has sought to reduce gun and gang crime in America by forming partnerships to enhance local programs and provide them with additional tools necessary to be successful. In Syracuse, the partnership of law enforcement agencies and community leaders has included establishment of a gang violence task force, collaboration of federal and local officials to review and prepare gun cases for prosecution in the most appropriate forum, federal prosecution of members of 8 gangs in Syracuse since 2003, and education and prevention efforts.

Syracuse Truce involves "focused deterrence" by integrating the community message that gun and gang violence will not be tolerated with offers of assistance to reduce criminal activity. Beginning in August 2015, two new initiatives, Syracuse Save our Youth, which focuses its efforts on neighborhoods in the south side of the City of Syracuse and Cure Violence, which provides street level outreach to potential violent offenders, began operating in coordination with the Syracuse Truce Partnership. In addition to day-to-day enforcement of the criminal law, gun crime committed by one gang member will result in enhanced law enforcement scrutiny of the entire gang. The Syracuse Truce strategies include:

Enhanced Enforcement – Approximately 40 street saturation patrols, warrant details, code enforcement and probation/parole home visits of offenders in the gang’s area will be conducted on the South and West side of the City of Syracuse.

Street Outreach - The Syracuse Model neighborhood Facilities group will communicate with

those most affected by gun violence and help mobilize the affected communities.

Call-In Meetings - High risk offenders (on probation/parole) are mandated and/or invited to attend meetings to hear about the consequences of continued criminal activity which they can relay back to fellow gang members. Options for assistance in changing their lives are provided by social service providers including Syracuse Model Neighborhoods Facilities, CNY Works, Salvation Army, OCC, Jobs Plus!, New Justice Services, Syracuse Trauma Team, Boys and Girls Club, and Center for Community Alternatives.

Community Organizations - Individuals from neighborhood organizations and clergy are invited to call-in meetings to provide a strong message that violence will not be tolerated and assistance will be provided to those who want to change their lives in a positive way.

Evaluation - The John F. Finn Institute of Public Safety conducts process and outcome evaluations of the project. The Finn Institute has been a long time partner in Operation IMPACT (Now G.I.V.E.) and Project Safe Neighborhoods initiatives in Onondaga County.

ALBANY, NEW YORK – Jeremy Lynn Rasmussen, age 38, pleaded guilty today to failing to update his sex offender registration, announced United States Attorney Richard S. Hartunian and U.S. Marshal David McNulty of the Northern District of New York.

Rasmussen faces a maximum of 10 years in prison, a maximum $250,000 fine, and a term of supervised release of between 5 years and up to life when he is sentenced on January 19, 2016 by United States District Judge Gary L. Sharpe.

Rasmussen pleaded guilty to a violation of the Sex Offender Registration and Notification Act (“SORNA”), which requires a convicted sex offender to register where he or she resides, is employed, or is enrolled as a student, and to keep any registration current.

Rasmussen was prosecuted after abandoning his Albany residence in January 2015 and then moving to Pittsfield, Mass., without updating his sex offender registration. Rasmussen is required to register as a sex offender as a result of a 2002 conviction, from Jefferson County, New York, for first-degree rape and second-degree kidnapping.

This case was investigated by the United States Marshals New York/New Jersey Regional Fugitive Task Force, with assistance from the Pittsfield Police Department, and is being prosecuted by Assistant United States Attorney Michael Barnett.

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

ALBANY, NEW YORK - Attorney General Loretta Lynch today announced that the Justice Department has awarded grants totaling more than $23.2 million to 73 local and tribal agencies in 32 states to expand the use of body-worn cameras and explore their impact. The investment includes $19.3 million to purchase body-worn cameras, $2 million for training and technical assistance and $1.9 million to examine the impact of their use. The grants, awarded by the Department’s Office of Justice Programs (OJP), are part of President Obama’s proposal to purchase 50,000 body-worn cameras for law enforcement agencies within three years.

"As we support local leaders and law enforcement officers in their work to protect their communities, we are mindful that effective public safety depends not simply on taking bad guys off the streets, but on winning – and keeping – the confidence of the people these officers are sworn to serve," said Attorney General Loretta Lynch. "The awards we’re announcing today will enhance our understanding [of this technology] even further, and I am confident that they will help our many local law enforcement partners do an even better job of serving their communities."

The City of Albany Police Department’s $133,305 grant award is one of four grants received by New York State agencies. The City of Rochester, Village of Spring Valley and City of White Plains also received funding.

"It is fitting that the Albany Police Department, whose leaders and officers believe in community policing, has been chosen for this funding award," said United States Attorney Richard S. Hartunian. "Advancements like this will foster transparency and thereby improve police-community relations."

"Over the past few years, the Albany Police Department has made tremendous changes to ensure that we are building trust and legitimacy within our community," said Albany Police Chief Brendan Cox. "By outfitting our officers with body-worn cameras, the Albany Police Department can continue to bridge the gap between the members of our community and of the police department through a transparent process that includes stakeholder input in the planning and implementation of a body-worn camera program. I would like to thank Attorney General Loretta Lynch for her leadership in making this funding available at a time when police accountability and community confidence in the police are the defining principles of 21st century policing."

The grants, which require a 50/50 in-kind or cash match, can be used to purchase equipment and require that applicants establish a strong implementation plan and a robust training policy before purchasing cameras. The long term costs associated with storing this information will be the financial responsibility of each local agency.

In addition to funds to help purchase body-worn cameras and train officers in their use, grants under the Bureau of Justice Assistance’s (BJA’s) Smart Policing Initiative will support police departments in Miami, Milwaukee, and Phoenix as they examine the impact of body-worn cameras on citizen complaints, internal investigations, privacy, community relationships, and cost effectiveness. Each of these three departments will partner with a research institution to gain insight on the merits of deploying body-worn camera programs.

Lynch announced the award today during a White House Champions of Change event co-hosted by the Office of Justice Programs and the Community Oriented Policing Services Office (COPS). The event honored law enforcement officers and young people who are leading efforts to improve relationships between law enforcement and youth in their communities.

BJA has launched a comprehensive online toolkit that consolidates research, promising practices, model policies and other tools that address issues surrounding body-worn cameras, including implementation requirements; image retention; concerns of policy makers, prosecutors, victim and privacy advocates; and community engagement and funding considerations. The toolkit is available at: https://www.bja.gov/bwc/.

OJP’s Bureau of Justice Statistics is collecting data on body-worn camera usage through surveys of law enforcement agencies. It is also designing data collection forms for future surveys of prosecutors and public defenders to measure how body-worn camera footage is being used by the courts in criminal cases.

For additional information about the BWC Pilot Implementation Program, visit http://www.bja.gov/bwc/pdfs/BWCPIP-Award-Fact-Sheet.pdf.

About the Office of Justice Programs (OJP)

OJP, headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP can be found at www.ojp.gov

ALBANY, NEW YORK – Jeremy Allen, age 41, of Niskayuna, New York, pleaded guilty today to one count of receipt of child pornography and two counts of 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.

Allen faces at least 5 years and up to 20 years in prison, as well as a term of supervised release of at least 5 years and up to life. He also faces a maximum fine of $250,000 and mandatory registration as a sex offender. Allen will be sentenced in Albany on January 14, 2016 by United States District Judge Gary L. Sharpe.

As part of his guilty plea, Allen admitted that between November 29, 2013 and July 8, 2014, he knowingly received child pornography and that on July 8, 2014, he possessed child pornography involving prepubescent children and children younger than 12.

This case was investigated by the Federal Bureau of Investigation and the Colonie Police Department, and was prosecuted by Assistant United States Attorney Emily T. Farber and former Special Assistant United States Attorney Amanda W. Cox.

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

ALBANY, NEW YORK – David Ahearn, age 53, of Syracuse, New York, pleaded guilty on September 14, 2015 to one count of attempted coercion and enticement of a minor, 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.

Ahearn faces at least 10 years and up to life in prison, as well as a term of supervised release of at least 5 years and up to life. He also faces a maximum fine of $250,000 and mandatory registration as a sex offender. Ahearn will be sentenced in Albany on January 11, 2016 by United States District Judge Thomas J. McAvoy.

As part of his guilty plea, Ahearn admitted that on March 10, 2015, he travelled from Syracuse to a hotel in Albany to meet “Craig” a 43-year-old man he met on Craigslist, and his 14-year-old son “Kyle,” for the purpose of having sex with both of them. “Craig” was actually an undercover Colonie Police Department Officer. During his online communications with “Craig,” Ahearn told “Craig” that he wanted to engage in sexual activity with “Craig” and his 14-year-old son “Kyle.”

This prosecution resulted from an investigation conducted by the Colonie Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Emily T. Farber and Lisa Fletcher.

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

ALBANY, NEW YORK – Walter Boutwell, age 56, of Stephentown, New York, was indicted on September 11, 2015 for failing to register as a sex offender after he moved to New York from Pittsfield, Massachusetts without updating his sex offender registration, announced United States Attorney Richard S. Hartunian.

The charge filed against Boutwell carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life.

Boutwell was detained pending trial following a detention hearing held on September 15 before United States Magistrate Judge Christian F. Hummel. His trial is scheduled for November 16, 2015 before United States District Judge Mae A. D’Agostino.

Boutwell was charged with a violation of the Sex Offender Registration and Notification Act (“SORNA”), which requires a convicted sex offender to register where he or she resides, is employed, or is enrolled as a student, and to keep any registration current.

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

This case is being investigated by the United States Marshals Service Sex Offender Investigation Branch, North East Region; the United States Marshals New York/New Jersey Regional Fugitive Task Force; the Pittsfield, Massachusetts Police Department; the New York State Police; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Social Security Administration Office of the Inspector General. The case is being prosecuted by Assistant United States Attorney Solomon B. Shinerock.

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

ALBANY, NEW YORK – Former New York State Assemblyman William Scarborough, 69, of Queens, New York, was sentenced today to 13 months in prison and 2 years of supervised release after being convicted of wire fraud and theft from a program receiving federal funds, announced United States Attorney Richard S. Hartunian of the Northern District of New York, New York State Attorney General Eric T. Schneiderman, New York State Comptroller Thomas P. DiNapoli, and Special Agent in Charge Andrew W. Vale of the Federal Bureau of Investigation, Albany Division.

Senior United States District Judge Thomas J. McAvoy also ordered that Scarborough pay $54,355 in restitution to New York State and forfeit the same amount to the United States. Scarborough pleaded guilty on May 7, 2015 pursuant to a written plea agreement with the United States that required him to resign his position as a Member of the New York State Assembly.

Scarborough’s federal convictions relate to his wrongful receipt of per diem payments from New York State. Assembly members receive per diem payments when they spend time in, and travel to and from, Albany. Scarborough falsely claimed, and received, per diem payments for days that he was not in Albany or in transit to or from the city.

U.S. Attorney Richard S. Hartunian said: "It is a sad day when an elected official is sentenced to imprisonment, but it is a serious crime when such an official steals the state funds he is sworn to safeguard. Former Assemblyman Scarborough betrayed the people’s trust when he repeatedly lied about when he had been in Albany to line his pockets. We hope that this prosecution helps bring an end to abuses of the state legislature’s per diem system."

As a New York State Assemblyman, Scarborough was entitled to receive the following types of payments when he traveled to Albany for legislative business: an allowance for overnight stays in Albany (full per diem), which varied from $160 to $171 per day; an allowance for travel not requiring an overnight stay in Albany (partial per diem), which varied from $49 to $61 per day; and reimbursement for mileage incurred for travel between his home and Albany. To receive those payments, Scarborough was required to submit travel vouchers to the New York State Assembly Finance Department certifying his dates of travel to and from Albany; the number of miles he traveled to and from Albany; the purpose of his travel; the days he was in Albany; and his eligibility for payment for either full per diem or partial per diem on each of those days. He also had to certify that the claimed amount was "just, true and correct."

From January 2009 through December 2012, Scarborough submitted 174 fraudulent travel vouchers to the assembly’s Finance Department, causing the State of New York to pay him $54,355 that he was not entitled to receive. In the fraudulent vouchers, Scarborough falsely certified that he had been in Albany for legislative business on specific days when he had not been in Albany at all, had been in Albany for less time than he claimed on a voucher, or had not stayed in Albany overnight.

On May 7, 2015, in a related case investigated by the New York State Attorney General’s Office and the New York State Comptroller’s Office, Scarborough pleaded guilty in Albany County Court to grand larceny in the fourth degree concerning his misuse of over $40,000 from his Friends of Bill Scarborough campaign account and is expected to be sentenced today to one year of jail time.

"Today’s sentencing of Assemblymember Scarborough on public corruption charges sends a clear message that those who abuse the public trust will be held accountable," said State Attorney General Eric Schneiderman. "Assemblymember Scarborough’s jail sentence resolves one unfortunate chapter in New York State government, but crystalizes the need for comprehensive reform to clean up corruption in our state."

"Public service is a commitment, not a means for self-enrichment," said State Comptroller Thomas P. DiNapoli. "Mr. Scarborough betrayed his oath of office. This case serves as a reminder: we are on the job, we are working together, and we will hold you accountable. I thank U.S. Attorney Hartunian, the Federal Bureau of Investigation and Attorney General Schneiderman for their hard work on this case."

"Today’s sentencing is the culmination of a vigorous and multi-agency investigation," said Special Agent in Charge Andrew W. Vale. "No public official is exempt from law enforcement scrutiny; if they breach the public’s trust through stealing in the course of their official duties, they will be brought to justice."

The federal case was investigated by the Federal Bureau of Investigation, Albany Division, and was prosecuted by Assistant United States Attorney Jeffrey C. Coffman.

Prosecuting the state case is Assistant Attorney General Christopher Baynes of the Attorney General’s Public Integrity Bureau. The Public Integrity Bureau is led by Bureau Chief Daniel Cort and Deputy Bureau Chief Stacy Aronowitz. The state’s investigation was handled by Investigator Mark Spencer and Deputy Bureau Chief Antoine Karam of the Investigation Bureau. The Investigations Bureau is led by Dominick Zarrella. Forensic Auditor Jason Blair, Legal Analyst Sara Pogorzelski, and Supervising Investigator Edward Keegan provided additional assistance.

The New York State Comptroller’s Division of Investigations conducted the investigation for Comptroller DiNapoli's Office.

SYRACUSE, NEW YORK – Ronald Reid, 52, of Rochester, New York, was sentenced on August 27, 2015 to three years in prison for robbery of a credit union in Syracuse, New York, announced United States Attorney Richard S. Hartunian, Federal Bureau of Investigation Special Agent in Charge Andrew Vale, and Syracuse Police Chief Frank Fowler. United States District Judge David N. Hurd also sentenced Reid to three years of supervised release following his jail term and restitution.

The charge stemmed from the robbery of the Summit Federal Credit Union, 1400 Erie Boulevard East, Syracuse, New York, on January 26, 2015. On that day, Reid walked into the credit union and presented a note which read, "Give me the money." After the teller complied, Reid left with $240.00 before Syracuse police arrived. He was arrested the following day in Utica, New York.

This case was investigated by the Syracuse Police Department and the Federal Bureau of Investigation, with assistance from the Utica Police Department, and was prosecuted by Assistant United States Attorney Michael F. Perry.

Jury Finds Glendon Scott Crawford Guilty on All Counts Following a Five-Day Trial

A jury convicted Glendon Scott Crawford, 51, of Galway, New York, today after a five-day trial on all charges relating to his efforts to build a weapon of mass destruction.

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 made the announcement.

Crawford was convicted of attempting to produce and use a radiological dispersal device and conspiring to use a weapon of mass destruction, which carries a maximum sentence of life in prison.  Crawford was also convicted of distributing information relating to weapons of mass destruction, which carries a maximum sentence of 20 years in prison.  He also faces a $2 million fine on the attempting to produce and use a radiological dispersal device charge, and a fine of $250,000 on the other two charges.

Sentencing is scheduled for Dec. 15, 2015, before Chief U.S. District Judge Gary L. Sharpe of the Northern District of New York.

Crawford is the first person to be found guilty of attempting to construct a radiological dispersal device, a statute Congress passed in 2004.

“Glendon Scott Crawford, a self-professed member of the Ku Klux Klan, was convicted of offenses relating to his deadly plan to use a radiological dispersal device to target unsuspecting Muslim Americans with lethal doses of radiation,” said Assistant Attorney General Carlin.  “The National Security Division’s highest priority is counterterrorism, and we will continue to pursue justice against those who seek to perpetrate attacks on American soil.”

“Crawford is a terrorist motivated by bigotry and hate who would have used a weapon of mass destruction to kill innocent Muslim members of our community were it not for the good judgment of citizens who quickly alerted law enforcement to his diabolical plan and the outstanding work of the Albany FBI Joint Terrorism Task Force,” said U.S. Attorney Hartunian.  “This case illustrates how we must remain vigilant to protect our community from would-be terrorists.” 

“Today’s verdict is a testament to the tremendous efforts of our Joint Terrorism Task Force in uncovering Crawford’s plot and the dedication of the U.S. Attorney’s Office in bringing justice to an individual who sought to inflict terror and harm on our innocent citizens,” said Special Agent in Charge Vale.  “This verdict is a victory for us all, but we must continue to remain observant; it is only with the assistance of our community members and law enforcement partners that we can be successful in thwarting these violent plots.”

In April 2012, the FBI received information that Crawford, who was employed as an industrial mechanic with General Electric in Schenectady, New York, had approached local Jewish organizations seeking people who might help him develop technology to be used against people whom he perceived to be enemies of Israel.  During a 14-month investigation, the Albany FBI Joint Terrorism Task Force learned that Crawford was attempting to solicit funds to purchase, and then weaponize, a commercially available X-ray machine so that it could be used to injure or kill others by exposing them to lethal doses of radiation. 

During the investigation, Crawford, with help from co-conspirator Eric J. Feight, took steps to design, acquire the parts for, build and test a remote initiation device that could have activated the radiation machine, and acquired the X-ray machine that he planned to modify into a weapon of mass destruction.  The X-ray device that he planned to use had been modified so that Crawford could not have used it to hurt anyone. 

Feight pleaded guilty on Jan. 22, 2014, to providing material support to terrorists.  He is scheduled to be sentenced on Sept. 17, 2015, by Chief Judge Sharpe and faces up to 15 years of imprisonment. 

Crawford, a self-professed member of the Ku Klux Klan, wanted to use the device against Muslims, and he scouted mosques in Albany and Schenectady and an Islamic community center and school in Schenectady as possible targets.  Crawford also suggested the New York governor’s mansion as a potential target.

With undercover agents, Crawford discussed placing the radiological device within a van or truck, parking the vehicle near the entrance to the target location, and then remotely activating the device so that it would direct lethal doses of radiation at people coming in and out of the target location. 

A central feature of Crawford’s completed X-ray device was that its targets would be exposed to dangerous and lethal doses of X-ray radiation without being aware of the exposure, the harmful effects of which would likely not be immediately apparent. 

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

ALBANY, NEW YORK – A jury convicted Glendon Scott Crawford, 51, of Galway, New York, today after a 5-day trial on all charges relating to his efforts to acquire a weapon of mass destruction, 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 Federal Bureau of Investigation, Albany Division.

Crawford was convicted of attempting to acquire and use a radiological dispersal device (count 1), conspiring to use a weapon of mass destruction (count 2), and distributing information relating to weapons of mass destruction (count 3). He faces at least 25 years of imprisonment on count 1, up to life on counts 1 and 2, and up to 20 years of imprisonment on count 3. He also faces a $2 million fine on count 1 and a fine of $250,000 on both counts 2 and 3.

Crawford is scheduled to be sentenced on December 15 at 9 a.m. by the Honorable Gary L. Sharpe, Chief United States District Judge for the Northern District of New York.

Crawford is the first person to be found guilty of attempting to acquire a radiological dispersal device, a statute Congress passed in 2004.

"Glendon Scott Crawford is a terrorist who would have used a weapon of mass destruction to kill innocent members of our Muslim community were it not for the good judgment of citizens who quickly alerted law enforcement to his diabolical plan and the outstanding work of the Albany FBI Joint Terrorism Task Force," said United States Attorney Richard S. Hartunian. "This case illustrates how vigilance, the shared values of Americans of all faiths, and vigorous investigation can defeat dehumanizing bigotry and hatred."

"Glendon Scott Crawford, a self-professed member of the Ku Klux Klan, was convicted of offenses relating to his deadly plan to use a radiological dispersal device to target unsuspecting Muslim Americans with lethal doses of radiation," said Assistant Attorney General Carlin. "The National Security Division’s highest priority is counterterrorism, and we will continue to pursue justice against those who seek to perpetrate attacks on American soil."

"Today’s verdict is a testament to the tremendous efforts of our Joint Terrorism Task Force in uncovering Crawford’s plot and the dedication of the U.S. Attorney’s Office in bringing justice to an individual who sought to inflict terror and harm on our innocent citizens," said Special

Agent in Charge Andrew W. Vale. "This verdict is a victory for us all, but we must continue to remain observant; it is only with the assistance of our community members and law enforcement partners that we can be successful in thwarting these violent plots."

In April 2012, the FBI received information that Crawford, who was employed as an industrial mechanic with General Electric in Schenectady, New York, had approached local Jewish organizations seeking people who might help him acquire a radiation-emitting device to be used against people whom he perceived to be enemies of Israel. During a 14-month investigation, the Albany FBI Joint Terrorism Task Force learned that Crawford was attempting to solicit funds to purchase, and then weaponize, a commercially-available industrial-grade X-ray device so that it could be used to injure or kill others by exposing them to lethal doses of radiation.

During the investigation, Crawford, with help from accomplice Eric J. Feight, took steps to design, acquire the parts for, build and test a remote initiation device that could have activated the radiation machine, and acquired (from an undercover FBI Agent) the X-ray device that he planned to modify into a weapon of mass destruction. The X-ray device that he planned to use had been modified so that Crawford could not have used it to hurt anyone.

Feight pleaded guilty on January 22, 2014 to providing material support to terrorists. He is scheduled to be sentenced on September 17, 2015 by Chief Judge Sharpe, and faces up to 15 years of imprisonment.

Crawford, a self-professed member of the Ku Klux Klan, wanted to use the device against Muslims, and he scouted mosques in Albany and Schenectady and an Islamic community center and school in Schenectady as possible targets. Crawford also suggested the Governor’s Mansion as a potential target.

With undercover agents, Crawford discussed placing the radiological device within a van or truck, parking the vehicle near the entrance to the target location, and then remotely activating the device so that it would direct lethal doses of radiation at people coming in and out of the target location.

A central feature of Crawford’s completed X-ray device was that its targets would be exposed to dangerous and lethal doses of X-ray radiation without being aware of the exposure, the harmful effects of which would likely not be immediately apparent.

This case was investigated by the Albany FBI Joint Terrorism Task Force, which includes FBI Special Agents as well as members of the New York State Police, U.S. Department of Homeland Security, Albany Police Department, Troy Police Department, and New York City Police Department.

This case is being prosecuted by Assistant United States Attorneys Stephen Green and Richard Belliss of the Northern District of New York, who represented the United States during the trial, and Counterterrorism Section Trial Attorney Joseph Kaster with support from the National Security Division and Criminal Division at the U.S. Department of Justice in Washington.

ALBANY, NEW YORK – Nelson E. Ferguson, age 48, of Albany County, New York, pled guilty today in Albany before United States District Judge Mae D’Agostino to one count of receipt of child pornography, and four counts of 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.

Ferguson faces at least 5 years and up to 20 years of imprisonment, as well as a term of supervised release of at least 5 years and up to life. He also faces a maximum fine of $250,000 and mandatory registration as a sex offender. Nelson will be sentenced in Albany, New York on December 15, 2015 at 10 AM in United States District Court.

As part of his guilty plea, Ferguson admitted that between December 26, 2008 and June 15, 2010, he knowingly received child pornography and that on June 16, 2010, he possessed child pornography involving prepubescent minors and minors who had not attained 12 years of age.

This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Emily T. Farber and former Special Assistant United States Attorney Amanda W. Cox.

ALBANY, NEW YORK – Jeremey VanWormer, 28, of Selkirk, was arrested this morning on federal drug trafficking and money laundering charges, announced United States Attorney Richard S. Hartunian and Inspector in Charge Shelly Binkowski, U.S. Postal Inspection Service, Boston Division.

VanWormer is charged by indictment with one count of participating in a conspiracy to distribute more than 100 kilograms of marijuana and four counts of participating in a conspiracy to launder drug trafficking proceeds. VanWormer was arraigned today in Albany before the Honorable Randolph F. Treece, United States Magistrate Judge, and released under pretrial supervision and secured bond pending a trial scheduled for October 13, 2015 before the Honorable Mae D’Agostino, United States District Court Judge.

On the drug trafficking conspiracy charge, VanWormer faces at least 10 years of imprisonment and up to life, a maximum fine of $8 million, and a term of supervised release of 8 years to life.

On each of the money laundering conspiracy charges, VanWormer faces a maximum imprisonment term of 20 years, a maximum fine of $500,000, and a maximum term of supervised release of 3 years.

According to the indictment, VanWormer participated in a marijuana trafficking conspiracy from about January 1, 2013 to November 14, 2014, and also participated in 4 separate money laundering conspiracies during that time. The indictment also seeks forfeiture of assets, including real properties in Troy and Watervliet.

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

This case is being investigated by the United States Postal Inspection Service, Homeland Security Investigations and the Drug Enforcement Administration, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.

ALBANY, NEW YORK – Frederick Hollingshed, a/k/a Franklin Hollingshed, 48, of Schenectady, was sentenced today to 57 months imprisonment for his role in a fraud scheme where he obtained at least $70,000 from people who believed they were purchasing used vehicles advertised over the internet, announced United States Attorney Richard S. Hartunian, United States Secret Service Resident Agent in Charge William Leege, Social Security Administration Office of the Inspector General New York Field Division Special Agent in Charge Edward J. Ryan, and United States Postal Inspection Service Boston Division Inspector in Charge Shelly Binkowski. The sentence followed Hollingshed’s January 5, 2015 guilty plea to eight counts of wire fraud, one count of possession with the intent to use five or more identification documents, and one count of misuse of a Social Security number. The sentence was imposed by Chief United States District Judge Gary L. Sharpe.

In connection with his guilty plea, Hollingshed admitted that he used bank accounts and corporate entities that he controlled to receive money from people who falsely believed they were sending money to purchase used motorcycles, all-terrain vehicles, utility vehicles, trucks, and automobiles. He also admitted that he knowingly possessed seven Social Security cards with the intent to use them unlawfully, and that he knowingly presented a false Social Security number for the purpose of opening a bank account used in the scheme. As part of his sentence, Hollingshed was ordered to pay $70,500.80 in restitution to victims who wired funds to the accounts he controlled.

The prosecution resulted from a joint investigation by the United States Secret Service, United States Social Security Administration, United States Postal Inspection Service, and the Schenectady Police Department. The case was prosecuted by Assistant United States Attorney Sean O’Dowd.

SYRACUSE, NEW YORK – Oswego Hospital (“Oswego”), a 164-bed acute care community hospital located in Oswego, New York will pay $1,456,457.33 to resolve False Claims Act liability stemming from healthcare billing improprieties that the hospital selfdisclosed to the federal government, announced United States Attorney Richard S. Hartunian. Dr. Vilas Patil, a physician formerly working as an independent contractor with Oswego, has paid $204,365.97 to resolve False Claims Act liability in connection with a related investigation. Under the settlements, the United States will receive $1,026,790.89, and the State of New York, which also participated in the investigation, will receive $429,666.44.

During the course of an internal review, Oswego identified a number of billing improprieties in its Behavioral Health Services Department. Specifically, Oswego identified claims that were paid by federal and state payors where the supporting medical record documentation: (1) was not created or could not be located; (2) contained incorrect service dates; (3) were simply verbatim treatment notes from prior appointments with patients; and/or (4) failed to include time-related information required for certain time-based billing codes. Oswego promptly took corrective steps to remedy the problems and brought its findings to the government’s attention. Due in large part to Oswego’s decision to self-disclose these issues and its cooperation throughout the government’s investigation, Oswego was required to pay far less than the treble damages and penalties that the United States is authorized to seek under the False Claims Act. Furthermore, the Department of Health and Human Services’ Office of Inspector General (HHS-OIG) decided that Oswego would not have to enter into a corporate integrity agreement or adopt other compliance measures.

United States Attorney Hartunian said: “Our office is committed to ensuring that federal health care programs and their beneficiaries receive the services for which the government pays. The settlements in this investigation demonstrate how voluntary self-disclosures benefit both the integrity of the health care programs and the providers who discover and report improper billing in their organizations. Oswego should be commended for the manner in which it handled the disclosure and investigation.”

“Medicaid serves many New Yorkers’ essential health care needs and I will continue to work with partners in government to protect this important program,” said Attorney General Eric Schneiderman. “This settlement illustrates the importance of hospitals being mindful of billing requirements for government-sponsored healthcare. Through its cooperation with the investigation and return of Medicaid funds, Oswego Hospital demonstrated its accountability and commitment to abide by government healthcare rules and regulations and uphold the highest standards of integrity.”

The United States encourages all health care providers to self-disclose any known violations that have resulted in the submission of improper claims to federal health care programs. The investigation and settlements were the result of coordinated effort among the United States Attorney’s Office for the Northern District of New York, on behalf of HHS-OIG, the Defense Criminal Investigative Service, and the New York State Attorney General (Medicaid Fraud Control Unit). Locally, the United States was represented by Assistant United States Attorney Michael D. Gadarian.

ALBANY, NEW YORK: HD Supply Waterworks (Waterworks) – the Nation’s largest supplier of water, sewer, fire protection and storm drain products – has agreed to pay 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, announced United States Attorney Richard S. Hartunian.

The United States Department of Transportation (DOT) and the United States Environmental Protection Agency (EPA) have promulgated regulations intended to provide opportunities for businesses owned by socially and economically disadvantaged individuals to perform work on projects financed, at least in part, by the federal government. Those agencies also administer DBE programs that require state and local governments receiving federal funding to establish goals for the participation of DBEs on federally-funded projects. A contractor may claim credit for a DBE’s participation on a project only if the DBE serves a commercially useful function. A DBE does not serve a commercially useful function if its role is limited to that of an extra participant to a transaction through which funds are passed to create the impression that one or more members of a historically disadvantaged group worked on a project.

In 2008, authorities began investigating prime contractors that claimed to have conducted business with the now-defunct American Indian Builders & Suppliers, Inc. (AIB), a Native American owned company certified as a DBE in New York and in other states. The investigation revealed that several prime contractors listed AIB as a subcontractor that had worked on or supplied materials for federally-funded projects when it did neither. Instead, a third party that would not itself qualify as a DBE performed the work or supplied the materials, and received much of the financial benefit. For its role, AIB would collect a small percentage of the subcontract amount as compensation for the fraudulent use of its name and DBE status.

The government alleges that Waterworks enabled several prime contractors to represent falsely that AIB had performed a commercially useful function on federally-funded contracts by negotiating price and other terms of sale when, in reality, the prime contractors had negotiated such terms with Waterworks and used AIB as a pass through. Waterworks acknowledged in the settlement agreement that AIB served as a pass-through by collecting invoices from Waterworks, transferring the information from those invoices to AIB’s own invoices, adding a markup, and passing the AIB marked-up invoices on to the prime contractors. The government alleges that the conduct described above enabled prime contractors to certify falsely that AIB supplied materials when the parties – i.e., Waterworks, AIB, and the prime contractors – knew that was not the case, resulting in the submission to government entities of false or fraudulent claims for payment from federal funds.

United States Attorney Hartunian said: "Waterworks enabled prime contractors to certify falsely that American Indian Builders & Suppliers served as a subcontractor on government-funded projects, thwarting the program’s objective of creating a level playing field for legitimate minority and women-owned businesses to compete fairly on such projects. As this case demonstrates, my office will vigorously pursue unscrupulous contractors who engage in schemes to divert grant funds away from those for whom the money was intended."

"Disadvantaged Business Enterprise fraud like that perpetrated by HD Supply Waterworks harms the integrity of the DBE program and law-abiding contractors, including many small businesses, by defeating efforts to ensure a level playing field in which all firms can compete fairly for contracts," said Douglas Shoemaker, regional Special Agent-in-Charge of the DOT Office of Inspector General (DOT-OIG). "Our agents will continue to work with the Secretary of Transportation, the Administrator of Federal Highways, and our federal, state, and local law enforcement and prosecutorial colleagues to expose and shut down DBE fraud schemes that adversely affect public trust and DOT-assisted highway programs throughout New York and elsewhere."

"EPA OIG will continue to work to ensure that the Disadvantaged Business Enterprise programs are used for their intended purposes," said Thomas Muskett, Special Agent in Charge for the EPA Office of Inspector General’s Washington Field Office, which covers the mid-Atlantic and northeastern United States. "Our agents are pleased to have contributed to the successful resolution of this investigation."

The investigation and settlement were the result of a coordinated effort among the United States Attorney’s Office for the Northern District of New York, DOT-OIG, EPA-OIG, and the Federal Bureau of Investigation, with the assistance of the United States Department of Justice’s Civil Division and the New York State Department of Transportation’s Investigations Bureau. The United States was represented by Assistant United States Attorney Adam J. Katz.