Northern District of New York
Press releases recorded for this federal judicial district.
Man Sentenced to 200 Months in Prison for Drug Trafficking and Gun PossessionRead the Press Release
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.
Man Sentenced to 15 Years in Prison for Drug Trafficking and Gun PossessionRead the Press Release
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.
10 Defendants Indicted on Steroid Distribution and Money Laundering Conspiracy ChargesRead the Press Release
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 Receives Second Round of Federal Funding for Gun Violence ReductionRead the Press Release
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.
Man Pleads Guilty to Failing to Update His Sex Offender RegistrationRead the Press Release
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 Police Department Funded for Body-Worn CamerasRead the Press Release
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
Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
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/.
Man Pleads Guilty to Attempting to Entice A MinorRead the Press Release
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/.
Man Indicted for Failing to Register as A Sex OffenderRead the Press Release
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/.
Former Assemblyman William Scarborough Sentenced on Fraud and Theft ConvictionsRead the Press Release
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.
Man Sentenced to 3 Years in Prison for Syracuse Credit Union RobberyRead the Press Release
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.
Upstate New York Man Convicted for his Role in Attempting to Develop Lethal Radiation DeviceRead the Press Release
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.
Upstate New York Man Convicted for His Role in Attempting to Acquire A Lethal Radiation DeviceRead the Press Release
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 County Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
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.
Selkirk Man Indicted on Drug and Money Laundering ChargesRead the Press Release
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.
Schenectady Man Sentenced in Fraud SchemeRead the Press Release
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.
Oswego Hospital and Physician Combine to Pay over $1.5 Million to Resolve Billing Improprieties Self-Disclosed by the HospitalRead the Press Release
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.
HD Supply Waterworks to Pay Nearly $5 Million to Resolve Grant Fraud AllegationsRead the Press Release
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.
Schenectady Man Sentenced for Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK – Adam Rey Gonzalez, 28, of Schenectady, New York, was sentenced yesterday by the Honorable Thomas J. McAvoy to 220 months in federal prison followed by a lifetime term of supervised release, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation. The sentence follows Gonzalez’s April 14, 2015 guilty plea to distribution of child pornography.
"The distribution of child pornography perpetuates the sexual exploitation of the children depicted in such images, re-victimizing them over and over again," said United States Attorney Richard S. Hartunian. "My office will continue to work diligently with the FBI and other law enforcement agencies to uncover and punish those who distribute such unspeakable images."
"Today’s sentencing reflects the commitment of the FBI to apprehend and bring to justice those who commit crimes against children," said Special Agent-in-Charge Andrew W. Vale. "Child pornography is not a victimless crime, and we are committed to protecting our children from sexual predators such as Mr. Gonzalez."
Gonzalez, who has two prior convictions for sexual offenses, including the sexual abuse of a minor, was a registered sex offender when federal agents identified him as a prolific online trader of child pornography known as "Redart-yob." Federal agents searched Gonzalez’s Schenectady home and located a hidden computer that contained a large collection of child pornography, primarily focused on the sexual abuse of young boys. At today’s sentencing hearing, Judge McAvoy described the materials Gonzalez traded as "horrific" and said that victims of child pornography "have their lives stolen from them." Gonzalez was ordered to pay $12,000 in restitution to a victim.
This case was investigated by the Federal Bureau of Investigation, Albany Division and was prosecuted by Assistant United States Attorneys Wayne A. Myers and Emily Farber, and Special Assistant United States Attorney Amanda Cox
Woman Enters Guilty Plea to Two Felony CountsRead the Press Release
ALBANY, NEW YORK – Former Town of Halfmoon Supervisor Melinda Wormuth pled guilty today to two felony counts charging her with extortion and making a false statement before Chief U.S. District Court Judge Gary L. Sharpe in federal court in Albany 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 Attorney Hartunian stated: "The defendant accepted money for taking official actions, and then lied to federal agents by claiming she had obtained prior approval for her corrupt conduct. This is yet another instance of an elected official who put her own interest ahead of the public’s. That is unacceptable at any level of government, whether in our state Capitol or in the counties and towns within the Northern District of New York."
"Ms. Wormuth chose to betray the public’s trust for personal gain," said Special Agent in Charge Andrew W. Vale. "Such actions have a real and negative impact on our system of government, and the FBI is committed to working with our law enforcement partners to investigate corruption at all levels of government."
The charges are the result of an investigation by the Federal-State Anti-Corruption Task Force that includes the Federal Bureau of Investigation, the New York Attorney General’s Office, the Internal Revenue Service, the New York Comptroller’s Office, and others. U.S. Attorney Hartunian thanked the FBI, the NYS Attorney General’s office, and the NYS Comptroller’s Office for their close collaboration and assistance in the investigation and prosecution of this case.
"Today’s guilty plea makes it clear that public officials who violate the law by misusing campaign funds will be held accountable," said Attorney General Schneiderman. "Public officials must be held to the highest ethical standards and I’m proud to continue working with partners in government to root out public corruption across New York State."
"Ms. Wormuth seemed oblivious to the requirements of public service, the first of which is honesty," State Comptroller Thomas P. DiNapoli said. "I hope her case serves as an example to any public official who might put their desires before the public good. I thank United States Attorney Richard Hartunian, Attorney General Eric Schneiderman and the Federal Bureau of Investigation for their partnership with us and their dedication to eliminating public corruption."
During the plea hearing, Melinda Wormuth admitted that she accepted money in return for her official actions. Specifically, she admitted that she received $7,500 in cash, which was characterized as "consulting fees," in return for using her official position as Town Supervisor and as a member of the Saratoga County Board of Supervisors to lobby for the legalization of professional Mixed Martial Arts ("MMA"). Between April 10, 2013 and August 10, 2013, Wormuth sent letters on her official letterhead as Supervisor of Halfmoon and as a Board Member of the County Board of Supervisors to state legislators in New York, requesting legislative action in favor of professional MMA. Wormuth performed no legitimate consulting work for this cash, and she accepted this cash understanding that she was expected to use her official position to promote legislative action in favor of professional MMA.
Wormuth also admitted that she lied to FBI agents during an interview on August 7, 2013. Specifically, Wormuth stated that she had consulted with "K.T.," a former Town Justice in Saratoga County, to obtain approval for her actions before taking the payments. This statement was false because she had not consulted with "K.T."
Wormuth faces a sentence of up to 12 months and one day of imprisonment, a fine of $7,500.00, and forfeiture in the amount of $5,500.00. Sentencing is scheduled for December 10, 2015, in Albany, New York.
The case is being prosecuted by Assistant United States Attorneys Ransom Reynolds and Jeffrey Coffman. Former Assistant United States Attorney John Duncan also worked on the prosecution.
Jury Convicts Stephentown Man of Possessing Cocaine, Heroin and Oxycodone with the Intent to DistributeRead the Press Release
ALBANY, NEW YORK – On August 5, a jury found Joshua Stegemann, 38, of Stephentown, New York, guilty of (a) possessing cocaine, heroin, and oxycodone with the intent to distribute; (b) possessing two handguns in furtherance of a drug trafficking crime; and (c) possessing three firearms and ammunition while being a felon, announced United States Attorney Richard S. Hartunian and James J. Hunt, Special Agent in Charge, New York Division, Drug Enforcement Administration.
United States Attorney Hartunian stated "This successful prosecution was brought about through the excellent cooperation of local, state, and federal law enforcement agencies working together to combat the trafficking of highly addictive drugs like cocaine, heroin and oxycodone. I commend these agencies for their tireless pursuit of those responsible for trafficking drugs on our streets."
The investigation was initiated by the Massachusetts State Police, who were subsequently joined by the Rensselaer County Sheriff’s Office, the Drug Enforcement Administration, and the New York State Police. The evidence at trial showed that Stegemann, a long-time resident of Stephentown, New York, used his Stephentown residence and surrounding grounds as a base of operation for his drug trafficking business. On April 30, 2013, investigators executed a search warrant at Stegemann’s residence and surrounding grounds and recovered large amounts of cocaine, heroin, and oxycodone pills, along with two loaded handguns, a loaded shotgun, and over $296,000 in U.S. currency. Most of these items were found hidden either inside of the defendant’s residence or in various landscaping features on the defendant’s property such as rock gardens, a stump pile or buried next to pine trees. On May 3, 2013, investigators recovered a safe hidden by the defendant in a Pittsfield, Massachusetts residence. The safe was found to contain over $160,000 in U.S. currency. Cumulatively, investigators recovered over 600 grams of cocaine, over 30 grams of heroin, over 700 oxycodone pills, three firearms, dozens of rounds of ammunition, and over $450,000 in U.S. currency.
Joshua Stegemann will be sentenced on December 2, 2015 at 9:00 a.m. in federal court in Albany before Chief Judge Gary L. Sharpe. Stegemann faces at least 15 years in prison and up to a life term of imprisonment, followed by a term of at least eight years of supervised release, and a fine up to $8,000,000.00.
This case was prosecuted by Assistant United States Attorneys Richard Belliss and Kofi Sansculotte.
Jury Convicts Albany County Man of Producing Child PornographyRead the Press Release
ALBANY, NEW YORK – Robert C. McCoy, 56, of Glenmont and Selkirk, NY, was convicted yesterday of three federal felony counts of sexual exploitation of a minor, possession of child pornography and commission of a felony offense involving a minor by a registered sex offender, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Federal Bureau of Investigation, Albany Division. The defendant was found guilty following a four day jury trial.
According to the evidence presented at trial, from 2012 to 2014, McCoy, a registered sex offender, produced sexually explicit images of a minor victim and possessed child pornography obtained by him from the Internet.
"Sexual exploitation crimes are heinous, preying upon the most vulnerable among us, our children," stated United States Attorney Richard S. Hartunian. "My office will continue to collaborate with our partner law enforcement agencies to investigate and prosecute such predators."
Sentencing was set by U.S. District Judge Mae D’Agostino for December 14, 2015 at 10 am. McCoy faces at least 35 years of imprisonment, with a maximum sentence of 70 years, a term of supervised release of no less than five years and up to life, and a fine of up to $250,000.
The case was investigated by the Town of Bethlehem NY Police Department and the Federal Bureau of Investigation, with assistance from the New York State Police. The case was prosecuted by Assistant United States Attorney Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, Assistant United States Attorney Emily T. Farber, and former Special Assistant United States Attorney Amanda W. Cox. Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
New York City Men Plead Guilty to Drug Conspiracy and Gun ChargesRead the Press Release
PLATTSBURGH, NEW YORK – On August 5 and 6, 2015, Patrick Lloyd, 27, and Michael Spencer, 27, pled guilty to conspiracy to possess with intent to distribute and to distribute controlled substances, as wells possession of firearms in furtherance of a drug trafficking crime, announced United States Attorney Richard S. Hartunian and Homeland Security Investigations Resident Agent in Charge Russell Linstad.
"I commend the excellent work of the federal, state and local law enforcement agencies in dismantling this drug trafficking organization," said United States Attorney Richard S. Hartunian. "This case serves as a strong message that we will vigorously pursue and prosecute all those who endanger our neighborhoods though the distribution of illegal drugs and illegal firearm activity."
"This plea is the result of the collaboration between law enforcement agencies, which was instrumental in successfully dismantling a major violent narcotics smuggling organization in this area," said Russell Linstad, Resident Agent in Charge of Homeland Security Investigations (HSI). "HSI will continue to utilize its broad authorities to aggressively target and take down groups who are distributing narcotics and posing a threat in our communities."
"The Massena Police Department is extremely pleased with the resolution of these cases and would like to thank our state and local partners, Homeland Security Investigations Border Enforcement Security Task Force, and the United States Attorney’s Office for their hard work," said Senior Investigator Joseph Brown of the Massena Police Department.
As a result of their drug conspiracy convictions, Lloyd and Spencer respectively face 20 and 10 year mandatory minimum sentences of imprisonment, and up to life imprisonment. The firearms convictions carry mandatory minimum sentences of 5 years imprisonment and up to life, which must be imposed to run consecutively to the sentence on the drug conspiracy convictions. As a result, Lloyd faces a 25 year mandatory minimum sentence and Spencer faces a 15 year mandatory minimum sentence of imprisonment. Lloyd’s sentencing is scheduled for December 2, 2015 at 11:00 a.m. and Spencer’s sentencing is scheduled for December 14, 2015 at 1:30 p.m., both in United States District Court in Albany, New York.
The investigation resulted in the conviction of 13 members of this conspiracy and revealed that the organization utilized suppliers in New York City to obtain large quantities of cocaine, heroin, and crack for redistribution in the Massena, New York area. Couriers were used to transport drugs from New York City to Massena, where the organization’s distribution network sold ounce and gram quantities to drug users and other wholesale drug dealers.
Homeland Security Investigations (HSI), the Massena Police Department (MPD), the Saint Lawrence County Sheriff’s Department and the New York State Police (NYSP) led the investigation.
The District Attorneys of Clinton, Franklin and St. Lawrence Counties, the Saint Regis Mohawk Tribal Police Department, the United States Customs and Border Protection Office of Air and Marine, the United States Customs and Border Protection Office of Field Operations, the Drug Enforcement Administration, the Royal Canadian Mounted Police, the New York Attorney General’s Office, the Oneida Indian Nation Police and the Customs and Border Protection United States Border Patrol assisted in the investigation.
This case was prosecuted by Assistant U.S. Attorney Katherine Kopita and Assistant U.S. Attorney Cyrus Rieck.
Company and Two Men Sentenced for Clean Water Act CrimesRead the Press Release
BINGHAMTON, NEW YORK – Mark Pullyblank, 54, of Caledonia, New York and William Clements, 54, of Victor, New York were sentenced yesterday for criminal violations of the Clean Water Act in federal court in Binghamton, New York, said United States Attorney Richard S. Hartunian and Vernesa Jones-Allen, Special Agent in Charge of U.S. Environmental Protection Agency’s criminal enforcement program in New York. Mark Pullyblank was sentenced to a 3 year term of probation, a $10,000 fine and 120 hours of community service. William Clements was sentenced to a 1year term of probation and a $2000 fine. Both men were employees of Crane-Hogan Structural Systems, Inc., Spencerport, New York, which also entered a corporate plea of guilty and was sentenced to pay a criminal fine of Five Hundred Thousand Dollars ($500,000) and was placed on a term of probation for 5 years. A condition of probation requires the company to develop, fund and implement a comprehensive Environmental Compliance Plan ("ECP") to prevent future violations.
As part of its guilty plea Crane-Hogan Structural Systems, Inc. admitted that in December 2008 and January 2009 during a hydro-demolition project at the Binghamton Governmental Center Parking Garage, in Binghamton, New York, it discharged concrete slurry into the Susquehanna River without a permit. Hydro-demolition results in the need to dispose of large quantities of waste concrete, concrete residue, and concrete slurry (concrete and water containing concrete sediments and/or high pH related thereto) William Clement was a project manager employed by Crane-Hogan Structural Systems, Inc. who supervised the negligent discharge of concrete slurry from hydro-demolition conducted within the Wilson Hospital Parking Garage, Johnson City, New York from May through July 2009, into a manhole that led to the Binghamton-Johnson City POTW.
Mark Pullyblank was a Project Manager employed by Crane-Hogan Structural Systems, Inc. who supervised the intentional discharge of concrete slurry from a hydro-demolition project at the Binghamton Governmental Center (BGC) Parking Garage, in Binghamton, New York in August and September 2009 into a BGC sub-basement sump that discharged to the storm sewer system and to the Susquehanna River.
"The illegal discharge of pollutants into the nation’s waters is a crime that has wide-ranging effects on the magnificent environment that is our shared legacy and violators will be held accountable under the law," said United States Attorney Richard S. Hartunian.
"America’s communities deserve clean water, free from pollutants in illegal wastewater discharges," said Vernesa Jones-Allen, Special Agent in Charge of EPA’s criminal enforcement program in New York. "For months, the defendants discharged contaminated wastewater in violation of the Clean Water Act. Protecting communities means holding violators accountable, both for illegal discharges and for failure to report them. It is appropriate that the company will be required to develop, fund, and implement an environmental compliance plan to ensure this type of illegal action doesn’t happen again."
The criminal investigation was conducted by the U.S. Environmental Protection Agency (EPA), Criminal Investigation Division and the New York State Department of Environmental Conservation, Bureau of Environmental Crimes Investigation.
Canadian Marijuana Traffickers Convicted After TrialRead the Press Release
SYRACUSE, NEW YORK – On Wednesday, August 05, 2015, Canadian citizens Michael C. Woods and Gaetan Dinelle were convicted of multiple federal felony drug charges following a six day jury trial, announced United States Attorney Richard S. Hartunian. The defendants were found guilty of membership in three separate but related conspiracies, each involving 1,000 kilograms or more of marijuana destined for the United States. The jury also found both defendants guilty of being leaders of a continuing criminal enterprise (CCE), an ongoing, structured organization distributing marijuana over a period of years generating substantial income.
As a result of the CCE convictions, both Woods and Dinelle face the possibility of mandatory life imprisonment. Sentencing is scheduled for December 8, 2015, in Syracuse.
The evidence at trial showed that Woods, assisted by Dinelle, ran a vast international marijuana operation from Cornwall, Ontario, Canada, that operated from at least 2005 until 2008. During the trial, witnesses testified that Woods procured large quantities of marijuana from his sources in Canada and with Dinelle arranged for it to be smuggled across the border into the United States, where it was temporarily stored at various locations in Northern New York on the Akwasasne Mohawk Indian Reservation. From there the marijuana was driven by couriers who were selected and supervised by Woods and Dinelle to buyers throughout the Eastern United States.
Between 2006 and February 2008, law enforcement seized approximately $2,000,000 in currency that was marijuana proceeds and approximately 400 kilograms of marijuana from couriers working for Woods and Dinelle. Evidence during the trial included law enforcement estimates that the Woods organization distributed over 22,000 pounds of high-grade marijuana with gross wholesale receipts of $47,300,000 during the life of the conspiracy.
This prosecution in the United States followed the extradition of 15 individuals from Canada, including Woods and Dinelle, in the largest use of the extradition treaty between the two countries in a single case.
The trial witnesses included employees of the U.S. Drug Enforcement Administration (DEA) and DEA Northeast Regional Laboratory; the U.S. Department of Homeland Security, U.S. Border Patrol, Immigration and Customs Enforcement; the New York State Police and New York State
Police Forensic Investigation Center; the Massachusetts State Police and Massachusetts State Laboratory, the Warren County (New York) Sheriff’s Office, and the New Hampshire State Police Laboratory. The Royal Canadian Mounted Police also provided assistance throughout the investigation. The case was prosecuted by Assistant U.S. Attorney Carl G. Eurenius.
Arizona Woman Sentenced to Six Years Jail in Identity Theft Tax Fraud CaseRead the Press Release
U.S. Attorney Richard S. Hartunian of the Northern District of New York and Acting Special Agent in Charge Thomas E. Bishop of the Internal Revenue Service-Criminal Investigations (IRS-CI) New York Field Office announced that Elaine Monique Zavalla-Charres, 34, of Winslow, Arizona, was sentenced yesterday in federal court in Utica, New York, in connection with her convictions for mail fraud and aggravated identity theft in a case involving false federal income tax returns that resulted in the theft of over $400,000 from the IRS. Zavala-Charres was sentenced to serve a total of 72 months in jail: 48 months for mail fraud and a consecutive term of 24 months for aggravated identity theft. She was also sentenced to serve three years of supervised release following her release from prison and ordered to pay restitution to the IRS in the amount of $411,309.
The fraud scheme occurred in 2011 through 2013. A co-defendant of Zavala-Charres, Lacey Hollinger, 27, of Massena, New York, contacted Massena-area residents via Facebook and other electronic media to tell them they were eligible for a tax refund, even though they were unemployed and had no income, as part of a U.S. government “stimulus program.” No such program existed. Several dozen responded, giving Hollinger their personal identification information (date of birth, social security number, etc.). Hollinger forwarded this information to Zavala-Charres, who used it to create false and fraudulent tax returns that, with others obtained from Arizona residents, generated over $400,000 in tax refunds. Zavala-Charres, Hollinger and others involved in the fraud scheme stole these funds after they were electronically deposited in bank accounts in Arizona.
The Massena-area residents never saw the tax returns, which falsely represented that they were self-employed and entitled to a refund. Some received pre-paid debit cards that Zavala-Charres directed to them through the U.S. mail. Many got nothing, with Zavala-Charres and Hollinger keeping most of the refund money. On May 22, 2013, IRS-CI special agents executed a search warrant at the former residence of Zavala-Charres in Phoenix resulting in the recovery of a computer used to create and file the fraudulent tax returns and numerous other documents used in the scheme.
Co-defendant Hollinger was sentenced on May 22, 2015, to serve a term of 36 months imprisonment, three years of supervised release and restitution.
“People who use identity theft to steal money by filing fake tax returns hurt honest taxpayers and cost the United States billions of dollars,” said U.S. Attorney Hartunian. “Cross-country crime connections cannot be allowed to evade the reach of the law. This was a serious crime warranting significant jail sentences and full restitution.”
“The Internal Revenue Service has made the investigation of individuals who orchestrate tax refund schemes using stolen identities a top priority,” said Acting Special Agent in Charge Bishop. “The sentence that Zavala-Charres received illustrates the consequences of committing this type of crime and how seriously the government is about prosecuting it. It will hopefully serve as a deterrent to others.”
The case was investigated by special agents of the IRS-CI Syracuse, New York, Field Office. The case was prosecuted by Assistant U.S. Attorney Richard Southwick of the Northern District of New York.
Arizona Woman Sentenced to Six Years Jail in Identity Theft Tax Fraud CaseRead the Press Release
SYRACUSE, NEW YORK –United States Attorney Richard S. Hartunian and IRS-Criminal Investigations, New York Field Office, Acting Special Agent in Charge Thomas E. Bishop announced that Elaine Monique Zavalla-Charres, 34, of Winslow, Arizona was sentenced yesterday in federal court in Utica, New York in connection with her convictions for mail fraud and aggravated identity theft in a case involving false federal income tax returns that resulted in the theft of over $400,000 from the IRS. Charres was sentenced to serve a total of seventy-two 72 months in jail: 48 months for mail fraud and a consecutive term of 24 months for aggravated identity theft. She was also sentenced to serve 3 years of supervised release following her release from prison and ordered to make restitution to the IRS of $411,309.
The fraud scheme which gave rise to the sentence occurred in 2011 through 2013. A co-defendant of Elaine Monique Zavalla-Charres, Lacey Hollinger, 27, of Massena, New York, contacted Massena area residents via Facebook and other electronic media to tell them they were eligible for a tax refund even though they were unemployed and had no income as part of a U.S. Government "stimulus program." No such program existed. Several dozen responded, giving Hollinger their personal identification information (date of birth, social security number, etc.). Hollinger forwarded this information to Charres, who used it to create false and fraudulent tax returns that, with others obtained from Arizona residents, generated over $400,000 in tax refunds. Charres, Hollinger, and others involved in the fraudulent scheme stole these funds after they were electronically deposited in bank accounts in Arizona.
The Massena area residents never saw the tax returns, which falsely represented that they were self-employed and entitled to a refund. Some received pre-paid debit cards that Elaine Monique Zavalla-Charres directed to them through the U.S. Mail. Many got nothing, with Charres and Hollinger keeping most of the refund money. On May 22, 2013, IRS-CI Special Agents executed a search warrant at the former residence of Charres in Phoenix, Arizona, resulting in the recovery of a computer used to create and file the fraudulent tax returns and numerous other documents used in the scheme.
Co-defendant Lacey Hollinger was sentenced on May 22, 2015 to serve a term of 36 months imprisonment, three years of supervised release and restitution.
United States Attorney Richard S. Hartunian stated, "People who use identity theft to steal money by filing fake tax returns hurt honest taxpayers and cost the United States billions of dollars. Cross-country crime connections cannot be allowed to evade the reach of the law. This was a serious crime warranting significant jail sentences and full restitution."
"The Internal Revenue Service has made the investigation of individuals who orchestrate tax refund schemes using stolen identities a top priority. The sentence that Ms. Zavala-Charres received illustrates the consequences of committing this type of crime and how seriously the government is about prosecuting it. It will hopefully serve as a deterrent to others," said IRS-Criminal Investigations in the New York Field Office, Acting Special Agent in Charge Thomas E. Bishop.
The case was investigated by Special Agents of the Internal Revenue Service, Criminal Investigations (Syracuse, New York Field Office). It was prosecuted by Assistant United States Attorney Richard Southwick.
Utica/Rome Area Residents Arrested in Heroin CaseRead the Press Release
SYRACUSE, NEW YORK – 21 defendants from the Utica and Rome area were arrested this morning on federal heroin charges, announced United States Attorney Richard S. Hartunian, James J. Hunt, Special Agent in Charge, United States Drug Enforcement Administration (DEA) for the region and New York State Police Superintendent Joseph A. D'Amico. Two indictments charge a total of 21 defendants for their involvement in the distribution of significant quantities of heroin. One indictment charges Edmaldo Figuero-Martinez, a/k/a Po, and 13 others with participating in a conspiracy to distribute over a kilogram of heroin in Oneida County, and 3 people with maintaining premises in Rome and Utica for heroin distribution. The other indictment charges Ernesto Alequin, a/k/a Cano, and 6 others with participating in a conspiracy to distribute over a kilogram of heroin and another man with maintaining premises in Rome for heroin distribution. Four defendants – Jamel Febus, a/k/a Shrimp, Jeremy Delmoral, Darius Wright, and Yousif Aluhujazi, a/k/a Jacob – are charged with having participated in both heroin conspiracies.
This morning, all 21 defendants were arrested and 11 federal search warrants were executed. The arrests follow a three month multi-agency investigation that included court authorized electronic eavesdropping warrants (wiretaps) obtained through federal court.
United States Attorney Richard S. Hartunian said: "The heroin epidemic has hit central New York, and we are hitting back. This case illustrates our commitment to bringing together a broad array of local, state, and federal agencies to preserve public safety and protect public health with swift and strong action. The arrests today disrupt the supply of kilograms of heroin so they do not destroy lives and devastate families."
"Today, the number of Americans who abuse heroin is at epic proportions. The defendants arrested today sought to capitalize on this deadly epidemic by turning heroin addicts into heroin dealers, doubling their customer base in the Utica and Rome areas. Law enforcement focused investigative efforts on this heroin distribution crew, resulting in 21 arrests, effectively dismantling this organization responsible for fueling heroin addiction," said DEA Special Agent in Charge James J. Hunt.
"I commend our federal and local law enforcement partners for their work in putting these drug dealers out of business -- these arrests would not be possible without their continued collaboration. Our message is simple: If you bring heroin or any other illegal drug into our communities, we will find you and put you behind bars. Heroin is a dangerous and often times deadly drug, and we will use every resource available to shut down these operations," said New York State Police Superintendent Joseph A. D'Amico.
A chart of the defendants, their charges, and maximum potential sentences is attached.
The case was investigated by the U.S. Drug Enforcement Administration (DEA), New York State Police-Community Narcotics Enforcement Team-Central (NYSP-CNET), City of Rome Police Department, City of Utica Police Department, Oneida County Sheriff’s Office, Oneida County District Attorney’s Office, U.S. Marshals Service, U.S. Border Patrol, U.S. Department of Homeland Security Investigations, Onondaga County Sheriff’s Office, and Onondaga County District Attorney’s Office. The case is being prosecuted by Assistant U.S. United States Attorney Carla Freedman.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
Rome Credit Union Robber SentencedRead the Press Release
SYRACUSE, NEW YORK – Robert "Bobby" Hendricks, 56, of Utica, was sentenced yesterday to 360 months imprisonment followed by five years of supervised release and was ordered to pay a special assessment of $200 and restitution of $24,400 to Access Federal Credit Union, announced United States Attorney Richard S. Hartunian and FBI Special Agent in Charge Andrew Vale. Robert Hendricks was found guilty of Credit Union Robbery and using a firearm during the robbery of the Access Federal Credit Union in Rome, NY.
The evidence at trial showed that on August 19, 2013 Shakeal Hendricks entered the credit union using a cell phone to communicate with Robert "Bobby" Hendricks and Taiquan Howard. Shortly thereafter, Robert Hendricks and Taiquan Howard entered the credit union brandishing handguns and threatening bank tellers at gunpoint. Approximately $24,400 was taken during the robbery. The defendants were convicted following an investigation that included images from the credit union surveillance system being released through the news media to assist in their identification.
Shakeal Hendricks pled guilty to robbery and aiding and abetting the use of firearms and was sentenced to 99 months imprisonment, five years of supervised release and ordered to make restitution of $24,400. Taiquan Howard pled guilty to similar charges and was sentenced to 125 months imprisonment, five years supervised release and restitution of $24,400.
The case was investigated by the Federal Bureau of Investigation and the City of Rome Police Department. The case was prosecuted by Assistant United States Attorney Edward R. Broton.
Investment Fund President Indicted for Fraud and Money LaunderingRead the Press Release
SYRACUSE, NEW YORK –A Cazenovia, NY man was arrested yesterday on charges of fraud and money laundering, announced United States Attorney Richard S. Hartunian and FBI Special Agent In Charge Andrew Vale.
As alleged in the Indictment, James P. Griffin, 70, of Cazenovia is the Chief Executive Officer of several investment companies in Cazenovia, which marketed a financial product called the 54 Freedom Charitable Gift Annuity. This financial product purportedly allowed investors to make a gift to charity and still receive income. The 54 Freedom Charitable Gift Annuity was represented to be backed by a highly rated major insurance carrier and would provide guaranteed life-time income for the investor. The Indictment alleges that over $1.6 million invested by clients were not used to purchase annuities from A rated insurance companies, but instead were used by Griffin for his own use and to pay the expenses of various companies he headed. The investors initially received monthly payments as promised, but these regular payments are alleged to have stopped in approximately January 2013.
Griffin was arrested yesterday and appeared for arraignment in federal court in Syracuse. He pled not guilty to the charges, which include five counts of mail fraud, eight counts of wire fraud, and five counts of money laundering. He faces a maximum term of imprisonment of twenty years on each of the mail and wire fraud counts and ten years on the money laundering counts. Each count carries a maximum fine of $250,000.
The case was investigated by the Internal Revenue Service-Criminal Investigation, and Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Edward R. Broton.
The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.
Man to Serve 15 Years for Child PornographyRead the Press Release
SYRACUSE, NEW YORK - Richard J. Watkins, Jr., 50, of Phoenix, NY was sentenced to serve 15 years imprisonment to be followed by 15 years supervised release in connection with his knowingly receiving and possessing child pornography obtained from the Internet, announced United States Attorney Richard S. Hartunian. Watkins was also ordered to register as a sex offender and pay $5,000 in restitution to one of the victims portrayed in the images he downloaded from the Internet.
Watkins’ sentence was the result of an investigation by the New York State Police that included a search of his Phoenix, NY residence where he possessed more than 400 video files depicting the sexual exploitation of children as young as 4, 5, and 8 years old.
Watkins’ federal arrest is the result of a cooperative effort between the New York State Police, the Oswego County District Attorney’s Office, the United States Secret Service and the United States Attorney’s Office as a part of Project Safe Childhood, a nationwide initiative to protect children from online exploitation and abuse. Led by United States Attorney’s Offices, Project Safe Childhood joins federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. The case was prosecuted by Assistant U.S. Attorney Lisa M. Fletcher.
Medical Billing Manager Sentenced in Health Care Fraud CaseRead the Press Release
SYRACUSE, NEW YORK – Bonnie Meislin, 43, of Utica, was sentenced to fifteen months imprisonment to be followed by three years of supervised release, a fine of $2,400.00 and restitution to Medicare of $84,265.11 following her convictions for health care fraud and conspiracy, announced United States Attorney Richard S. Hartunian.
Meislin was employed as the billing manager for Upstate Pain Medicine, a medical practice owned by Mahesh Kuthuru, M.D, with offices in Fulton and Utica, New York. Following a six day trial in February 2015, Meislin was found guilty on 23 counts of health care fraud and 1 count of conspiring with Kuthuru to send false and fraudulent billings to Medicare. Evidence at trial showed that in 2009, Dr. Kuthuru moved to Las Vegas where he opened a medical practice known as Desert Pain Management. Thereafter, Kuthuru began to spend the majority of his time in Las Vegas, returning to his Utica and Fulton offices only sporadically. From January 2010 through September 2011, Meislin and Kuthuru submitted false and fraudulent bills to Medicare which indicated that Kuthuru or another medical professional under his direct supervision had treated patients in the New York offices, when Kuthuru had not done so.
Mahesh Kuthuru, M.D. pled guilty to health care fraud and illegal distribution of prescriptions on January 22, 2015. He was sentenced on May 22, 2015 to serve 18 months imprisonment, 3 years of supervised release and restitution of $84,265.11 to Medicare.
"Protecting the integrity of the nation’s health care system by aggressively prosecuting those who defraud it is a high priority for my office. We will continue to pursue investigations and bring charges against people who prey upon the funds and procedures designed to serve patients and enhance the delivery of services by medical professionals," said United States Attorney Richard S. Hartunian.
The case was investigated by the Federal Bureau of Investigation ("FBI"), the Drug Enforcement Administration ("DEA"), the New York Department of Health, Bureau of Narcotic Enforcement, the Health and Human Services Department, the Worker’s Compensation Board, Office of Inspector General, Excellus Special Investigations Unit, Safeguard Services and MVP Health Care, Special Investigations Unit. The case was prosecuted by Assistant U.S. Attorney Edward R. Broton.
Jury Finds Truck Driver Guilty of Alien SmugglingRead the Press Release
SYRACUSE, NEW YORK – Yesterday a jury found Ergys Metashi, 34, of Ontario, Canada, guilty of 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 charged with bringing an alien to the United States from Canada at 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 a border 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 it was prosecuted by Assistant United States Attorney Michael F. Perry.
Ergys Metashi will be sentenced in federal court in Syracuse on November 16, 2015 and faces at least three (3) years and up to ten (10) years in prison followed by a three (3) year term of supervised release and a fine of up to $250,000.00.
For additional information, please contact Assistant United States Attorney Michael Perry at 315-448-0672.
Columbia County Man Sentenced to 37 Months in Prison for Money Laundering ConspiracyRead the Press Release
ALBANY, NEW YORK – Michael Elcox, 43, of Ghent, New York, was sentenced to 37 months in prison by United States District Judge Thomas J. McAvoy, announced United States Attorney Richard S. Hartunian, James J. Hunt, Special Agent in Charge of the Drug Enforcement Administration ("DEA"), New York Division, and Shantelle P. Kitchen, Special Agent in Charge IRS Criminal Investigations, New York Field Office. As part of the sentence, Judge McAvoy also imposed a $7,500 fine and three-year term of supervised release to follow Elcox’s prison term.
Elcox pled guilty in March 2015 for his role in a conspiracy to launder the proceeds of an illegal marijuana distribution network. The conspiracy involved routing illegal proceeds through various bank accounts and moving cash from New York to Florida. Federal agents seized more than $300,000 in cash, representing proceeds of Elcox’s illegal marijuana distribution, from locations in New York and Florida.
The case was investigated by Special Agents of the DEA in Albany, New York and Gainesville, Florida, and Internal Revenue Service–Criminal Investigations, New York Field Office, as well as the Columbia County Sherriff’s Department, as part of the DEA’s High Intensity Drug Trafficking Area Program. The case was prosecuted by Assistant United States Attorney Wayne A. Myers.
Syracuse Man Indicted for Social Security FraudRead the Press Release
SYRACUSE, NEW YORK – Blair A. Taylor, 50 of Syracuse, New York, was arraigned in federal court on July 9, 2015, on various charges related to a scheme to defraud the Social Security Administration (SSA) of more than $87,000, announced United States Attorney Richard S. Hartunian and Edward J. Ryan, Special Agent in Charge, Social Security Administration, Office of Inspector General.
The three-count indictment charges Taylor with theft of government money, making a false statement in an application for Social Security Disability Insurance Benefits (DIB) and concealing employment income while also receiving DIB payments.
The indictment alleges that Taylor applied for DIB in April 2006, claiming he was totally disabled. Between April 2006 and January 2015, SSA paid Taylor approximately $87,138.90. The indictment alleges that Taylor received income from various jobs using a second Social Security number which would have affected his eligibility for benefits. The indictment also alleges that in September 2010 Taylor filed an additional disability claim under the second Social Security number. This included an allegedly false report that he had not previously applied for benefits from SSA.
If convicted, Taylor faces up to ten years in prison on the theft of government money charge, up to five years in prison on the Social Security fraud charges, a forfeiture money judgment of up to $87,138.90, and a fine of up to $250,000.00 for each count.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Assistant United States Attorney Michael F. Perry.
Former Utica Resident Sentenced to 12 Years in Prison for IRS Tax Refund ScamRead the Press Release
SYRACUSE, NEW YORK – On June 15, 2015, ANAS K. WILSON, 33, a former resident of Utica, New York, was sentenced to 12 years in prison by the Honorable Frederick J. Scullin, Jr., announces United States Attorney Richard S. Hartunian, Shantelle P. Kitchen, Special Agent in Charge of the New York Field Office of IRS-Criminal Investigation, Craig W. Rupert, Special Agent in Charge, Defense Criminal Investigative Service ("DCIS") Northeast Field Office, and Robert E. O’Malley, Special Agent in Charge of the New York Field Office of the Treasury Inspector General for Tax Administration ("TIGTA"). Judge Scullin also imposed a forfeiture money judgment on Mr. Wilson of $414,000. As part of his sentence, Wilson will serve a three-year term of supervised release after completing his prison term.
Wilson pled guilty in November 2014 to theft of government property and aggravated identity theft for his role in a fraudulent tax return scheme. Wilson’s crimes involved electronically filing hundreds of fraudulent U.S. Individual Income Tax Returns on behalf of victims who were not entitled to tax refunds and then directing the tax refunds received to bank accounts he had established in the names of third parties. The investigation revealed that Wilson posed as an IRS employee at times in order to obtain the personal identifying information (including Social Security numbers and names) of the victims. After refunds were issued for the fraudulent tax returns, Wilson paid others to withdraw the funds from various banks and provide him the money. Wilson was ultimately responsible for submitting fraudulent tax returns to the IRS that resulted in the release of at least $414,000 in false tax refunds by the IRS.
United States Attorney Richard S. Hartunian stated, "The significant sentence imposed by the court today should serve as a clear warning that those who engage in illegal schemes to enrich themselves unjustly will pay a heavy price when they are caught. I commend all those agencies responsible for bringing this defendant to justice." Special Agent in Charge Craig W. Rupert, on behalf of DCIS, stated, "Today’s sentencing illustrates the seriousness of identity theft schemes. In this case, the defendant’s acts served to undermine well-intentioned government programs and defrauded the American taxpayer. Thwarting these efforts is a major concern for DCIS, and I applaud the agents and prosecutors who worked tirelessly to bring about this result." Special Agent in Charge Shantelle P. Kitchen stated the following on behalf of IRS-Criminal Investigation: "This sentence sends a strong message about the government’s resolve to investigate and prosecute tax refund fraud involving stolen identities. These cases remain a top priority for IRS-Criminal Investigation, and we will continue to work with the United States Attorney’s Office and our partner law enforcement agencies to stop such abuses of our nation’s tax system." Special Agent in Charge Robert O’Malley, on behalf of TIGTA, stated, "Identity theft is an extremely serious crime, particularly when it involves the impersonation of an employee of the Internal Revenue Service. We will aggressively investigate all crimes that involve efforts to impersonate IRS employees."
This case was investigated by the IRS Criminal Investigation Division, DCIS, and TIGTA, and it was prosecuted by Assistant United States Attorney Michael F. Perry.
For additional information, contact Executive Assistant U.S. Attorney John G. Duncan at 315-448-0672.
Former Postal Employee Sentenced for Theft of Money OrdersRead the Press Release
SYRACUSE, NEW YORK – On June 15, 2015, PENNY I. AUERBACH (47), former Postmaster Relief at the Westford Post Office in Otsego County, New York, was sentenced in United States District Court after pleading guilty to one count of stealing money orders and cash from the United States Postal Service and one count of misappropriating postal funds, announced United States Attorney Richard S. Hartunian and Eileen Neff, Special Agent in Charge, Office of Inspector General of the U.S. Postal Service, Northeast Area Field Office.
United States Magistrate Judge David E. Peebles sentenced AUERBACH to four years of probation and 50 hours of community service. Additionally, the judge ordered AUERBACH to pay $4,677.83 in restitution to the Postal Service and imposed a forfeiture money judgment in that amount as well.
At sentencing, AUERBACH admitted to "kiting" money orders from the Westford Post Office by taking money from her cash drawer that had been provided by customers to purchase money orders and using that cash during the period of time between the sale of the money orders and the dates on which the Postal Service was expensed for these money orders after their negotiation. In other words, rather than depositing in her drawer the cash provided by customers to purchase money orders, AUERBACH would take the cash to cover her own financial obligations (including, but not necessarily limited to, paying for previous money orders she had taken). The Postal Service was thus expensed, but never reimbursed, a total of $4,677.83 for money orders checked out exclusively to AUERBACH.
These charges stemmed from an investigation by the Office of Inspector General of the U.S. Postal Service. This case was prosecuted by Assistant United States Attorney Michael F. Perry.
For additional information, contact Executive Assistant U.S. Attorney John G. Duncan at 315- 448-0672.
Man Sentenced for Receipt and Possession of Child PornographyRead the Press Release
ALBANY, NEW YORK – John J. Tighe, 57, of Ballston Spa, New York, was sentenced on June 9 to 70 months in federal prison and 15 years of supervised release on child pornography charges by Senior United States District Judge Thomas J. McAvoy, 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. Tighe must also pay $11,900 in restitution to three victims whose images he possessed and register as a sex offender.
As part of his earlier guilty plea on January 26, 2015, Tighe admitted that in June 2013 he received child pornography and that in October 2013 he possessed child pornography involving prepubescent minors and minors who had not attained 12 years of age.
This case was investigated by the New York State Police and the Federal Bureau of Investigation, and was prosecuted by Special Assistant United States Attorney Amanda W. Cox and Assistant U.S. Attorney Michael Barnett.
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/.
Man Sentenced for Child Exploitation OffensesRead the Press Release
SYRACUSE, NEW YORK – A Cayuga County man was sentenced in federal court today on charges that he used the Internet to attempt to entice minors to engage in unlawful sexual conduct with him, and for his possession of child pornography, announced United States Attorney Richard S. Hartunian.
Robert J. Stachura, 45, of Sterling, New York was sentenced by United States District Judge Hon. David N. Hurd to serve concurrent terms 135 months in federal prison for enticement of minors and possession of child pornography. His sentence of incarceration will be followed by 20 years of supervised release, and his conviction will require Stachura to register as a sex offender.
As a part of his earlier guilty plea, Stachura admitted that he had posted several explicit ads on Craigslist soliciting minors to meet him for sexual conduct, and to smoke marijuana with him. When one of his posts was answered by an undercover investigator from the Cayuga County Sheriff’s Office, Stachura arranged to meet with whom he believed to be two teens, 15 and 13 years old, for sex. Instead, Stachura was arrested by the Cayuga County Sheriff’s Office, after which he was found to be in possession of 43 video files and 3 images of child pornography on computers seized in the investigation.
Stachura’s arrest was the result of an investigation by the Cayuga County Sheriff’s Office, with the assistance of the Federal Bureau of Investigation and the Northeast Cyber Forensic Center at Utica College. He was prosecuted by Assistant U.S. Attorney Lisa Fletcher, who can be reached 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/.
Man Sentenced for Anthrax and Ricin Hoax LettersRead the Press Release
UTICA, NEW YORK – A man who previously pled guilty to mailing letters falsely claiming to contain deadly anthrax or ricin was sentenced today in U. S. District Court in Utica. Brian D. Norton, 60, of Cicero, NY, was sentenced to thirty-three (33) months in prison, to be followed by a term of three (3) years on supervised release, according to U.S. Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge, FBI – Albany Division. The sentence was in connection with the series of 21 or more death threat letters the defendant mailed to individuals, businesses, law enforcement groups, schools, and public officials from November 1997 through December of 2011.
Norton’s plea agreement included his admission that he had written the letters and that all but one had contained a white powder, which he falsely claimed was anthrax or ricin. The letters were sent to Bishop Ludden Junior-Senior High School, Lemoyne College, federal law enforcement and intelligence agencies in Washington, D.C. and elsewhere. Norton also sent letters to United States Senator John McCain (R-Arizona), former Congresswoman Ann Marie Buerkle (R-NY 25th), then U.S. Secretary of Defense Robert Gates, veterans’ and military organizations, and several private individuals who work in the public media.
"This conviction reflects the sustained efforts of prosecutors and federal agents working together over a long period to bring the defendant to justice. Starting with little more than anonymous letters, we investigated, charged and convicted the defendant of this crime, which is an offense that by its nature caused understandable fear and concern to many victims. The sentence imposed today represents some measure of justice for them," said United States Attorney Richard S. Hartunian.
"Mailing letters threatening imminent death and containing unknown substances is a serious crime that results in the use of precious law enforcement resources," said Special Agent in Charge, Andrew W. Vale. "Threatening letters, whether or not they are a hoax, will be thoroughly investigated by the FBI and our law enforcement partners."
The sentencing today is the culmination of a long-term, nationwide investigation by Special Agents of the Federal Bureau of Investigation ("FBI") Syracuse Resident Office assisted by the FBI Laboratory in Quantico, Virginia, and the U.S. Postal Inspection Service (Syracuse). The case was prosecuted by Assistant U. S. Attorney Stephen C. Green of the U.S. Attorney’s Office for the Northern District of New York, Syracuse. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at 315-448-0672.
Man Pleads Guilty to Sexual ExploitationRead the Press Release
PLATTSBURGH, NEW YORK – Heath Powers, 34, of Plattsburgh, NY, pled guilty today to eleven (11) counts of production of child pornography, one (1) count of distribution of child pornography, and one (1) count of possession of child pornography announced United States Attorney Richard S. Hartunian and Federal Bureau of Investigation Special Agent-in-Charge Andrew W. Vale. Sentencing will be October 8, 2015 in Albany before United States District Judge Mae D’Agostino.
In entering his guilty plea, Powers admitted that between June through August 2014 he used a minor to engage in sexually explicit conduct and produced graphic images of that conduct. He also admitted that he possessed and distributed child pornography.
At sentencing, the defendant faces at least 15 years and up to 30 years in prison on each production of child pornography charge; at least 5 years and up to 20 years in prison on the distribution of child pornography charge; and up to 20 years in prison on the possession of child pornography charge. He also faces a fine of up to $250,000, a lifetime term of supervised release and registration as a sex offender.
The case was investigated by the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney Katherine Kopita.
Man Indicted for Submitting False Information and Documents to FEMARead the Press Release
ALBANY, NEW YORK – Scott A. Clapper, Jr., 30, of Schoharie, was arraigned in U. S. District Court in Albany today before U.S. Magistrate Judge Randolph F. Treece on 13 felony counts of disaster-related fraud, announced United States Attorney Richard S. Hartunian and Edward Nasiatka, Special Agent in Charge of the Department Of Homeland Security’s Office of Inspector General, New York Field Office. The defendant was remanded to federal custody. On each count, Clapper faces a maximum imprisonment term of 30 years, a maximum fine of $250,000, a special assessment of $100, and a maximum term of supervised release of 5 years.
According to the indictment, Clapper made false statements and submitted false documents to the Federal Emergency Management Agency ("FEMA") following Hurricane Irene. At that time, the issuance of a Presidential Disaster Declaration allowed FEMA to pay benefits to residents of certain New York counties who were affected by the hurricane and qualified for benefits under FEMA policies and procedures. Clapper, in connection with his applying for and receiving these benefits, made false statements to FEMA about his monthly rent and where he was residing. The indictment also alleges he submitted fraudulent lease agreements and rent receipts to FEMA.
The charges are merely accusations and the defendant is presumed innocent unless and until proven guilty in a court of law.
This case is being investigated by the New York Field Office of the Department Of Homeland Security’s Office of Inspector General. It is being prosecuted by Assistant United States Attorney Michael Barnett.
Summer Camps Must Reasonably Accommodate Children with DisabilitiesRead the Press Release
ALBANY, NEW YORK –The United States Attorney’s Office for the Northern District of New York is participating in a national initiative designed to make summer camps accessible to Americans with disabilities announced United States Attorney Richard S. Hartunian.
With school quickly coming to a close, many parents have already made, or are in the process of making, summer camp arrangements for their children. To help ensure that children with disabilities receive the opportunity to attend summer camp, the U.S. Attorney’s Office recently sent the attached flyer to hundreds of summer camps located within the Northern District of New York, reminding them of their obligations under the Americans with Disabilities Act ("ADA").
Under the ADA, summer camps, both private and those run by municipalities, must make reasonable modification to enable campers with disabilities to participate fully in all camp programs and activities. This generally means that children with disabilities are entitled to attend any camp or activity that non-disabled children attend, that camps must evaluate each child on an individual basis, and that camps must train their staff in the requirements of the ADA. Camps are obligated to pay for the cost of any reasonable modifications necessary for disabled children to participate in camp activities, and parents should not be charged any additional fee beyond standard camp enrollment costs.
"From the earliest days of the civil rights movement, eliminating barriers to recreational activities has been a key part of efforts to ensure equal opportunity in our society. We continue this tradition by ensuring that children with disabilities have equal access to the wonderful opportunities afforded by summer camps not only for children to have fun, but to interact with their peers and the natural environment in ways that will build their confidence, improve their health, and provide life-long memories." Hartunian said.
Additional information about the ADA is available at www.ada.gov, or through contacting the U.S. Attorney’s Office Civil Rights Unit at (518) 431-0247.
Rensselaer Man Pled Guilty to Theft of Government PropertyRead the Press Release
ALBANY, NEW YORK – Lawrence Macera, 65, of Rensselaer, pled guilty on May 26, 2015 in U. S. District Court to Theft of Government Property, announced United States Attorney Richard S. Hartunian. Sentencing is set for September 23, 2015 in Albany before District Judge Mae D’Agostino
In entering his guilty plea, Macera admitted that between January 1, 2009 and December 31, 2010, he stole approximately $54,041 of railroad benefits from the Railroad Retirement Board by failing to report income as required by the Railroad Retirement Act of 1974. During this period he was receiving disability benefits to which he was not entitled because he was earning additional income and failed to report that income to the board. Macera faces a maximum sentence of 10 years imprisonment and up to a $250,000 fine.
This case was investigated by the Office of Inspector General, Officer of Investigations, U.S. Railroad Retirement Board and is being prosecuted by Assistant United States Attorney Emily T. Farber.
Oneida County Resident Sentenced on Marijuana ChargesRead the Press Release
SYRACUSE, NEW YORK – Hon. Glenn T. Suddaby today sentenced Richard Williams, age 44, of Utica, New York, to thirty (30) months incarceration for his role in a marijuana conspiracy, announced United States Attorney Richard S. Hartunian.
Williams was arrested on June 24, 2014, when he took possession of a U.S. mail parcel containing four pounds of marijuana. Investigation revealed that over a several year period Williams had received numerous such parcels, all shipped from California. These parcels, all of which contained marijuana, were mailed from several different sources of supply in California. Investigation further revealed Williams paid approximately $8,000 to $10,000 for the marijuana in each parcel, which marijuana Williams thereafter sold, in smaller weights, to area customers.
Williams was charged with being a participant in a marijuana conspiracy between 2011 and 2014. On January 22, 2015, Williams pled guilty and admitted to distributing between 100 and 400 kilograms (220 and 880 pounds) of marijuana over the three year period.
After Williams serves his term of imprisonment, he will be placed on supervised release for three years.
The Williams case was investigated by agents and officers of the U.S. Postal Service, the Oneida County Drug Enforcement Task Force, the New York State Police Special Investigations Unit, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, and Firearms. The Williams case was prosecuted by AUSA Carl Eurenius and Oneida County District Attorney’s Office Bureau Chief and Special AUSA Grant Garramone.
Watertown Man Convicted of Armed RobberyRead the Press Release
SYRACUSE, NEW YORK – On Friday, May 22, 2015, after a five day jury trial, a jury in the Northern District of New York convicted Yarbrough Latulas (30, of Watertown, NY) of armed robbery, according to U.S. Attorney Richard S. Hartunian. After hearing all of the evidence, the jury found Yarbrough Latulas guilty of the following felony offenses as charged in the three-count superseding indictment: count one, conspiracy to interfere with interstate commerce by robbery; count two, interfere with interstate commerce by robbery; and count three, using and carrying sawed-off shotgun during and in relation to a crime of violence.
As a result of the conviction, the defendant is facing a statutory maximum term of imprisonment of life, a mandatory minimum term of imprisonment of 10 years, and a maximum fine of $250,000.00 per count of conviction. Sentencing is scheduled for October 2, 2015 at 10:30 a.m. in front of U.S. District Judge Glenn T. Suddaby.
The evidence at trial showed that on July 31, 2013, Yarbrough Latulas and Robert Williams, who previously pled guilty to participating in the armed robbery, entered the Sunoco mini-mart located at 1222 Washington Street, Watertown, New York intending to commit a robbery. After entering the Sunoco, Yarbrough Latulas stole money and tobacco products while Robert Williams pointed a sawed-off 12 gauge shotgun at the store clerk.
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. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315-448-0672).
Massena Woman Sentenced to 36 Months Jail in Identity Theft Tax Fraud CaseRead the Press Release
SYRACUSE, NEW YORK –United States Attorney Richard S. Hartunian and IRS Criminal Investigations, New York Field Office, Special Agent in Charge Shantelle P. Kitchen announced that Lacey Jane Hollinger, 27, of Massena, New York was sentenced on May 20, 2015 in connection with her convictions for mail fraud and aggravated identity theft. The case involved false federal income tax returns that resulted in the theft of over $200,000.00 from the IRS.
Hollinger was sentenced by United States District Court Judge David N. Hurd to serve twenty-four (24) months incarceration for aggravated identity theft and a consecutive term of one year and one day for mail fraud. She was also sentenced to serve three (3) years of supervised release following her release from prison and ordered to make restitution to the IRS in the amount of $212,317.00.
Lacey Hollinger was sentenced for her part of the fraud scheme, which took place in 2011 and 2012, when she contacted Massena area residents via Facebook and other electronic media to tell them they were eligible for a tax refund as part of a U.S. Government "stimulus program". No such program existed. Several dozen responded, providing personal identification information (date of birth, social security number, etc.). This information was then used to create fraudulent tax returns generating over $200,000.00 in tax refunds. Hollinger stole these funds after they were electronically deposited in bank accounts she controlled in Arizona.
Co-defendant, Elaine Monique Zavalas-Charres, is scheduled to be sentenced on June 10, 2015 for her role in the scheme.
"Tax fraud is a serious offense which we will continue to aggressively prosecute," said United States Attorney Richard S. Hartunian. "The use of the identities of innocent taxpayers to steal money from the government through the filing of fraudulent tax returns is on the increase. I urge people to take steps to protect themselves from these types of crimes."
How to reduce your risk
• Don’t routinely carry your Social Security card or any document with your SSN on it.
• Don’t give a business your SSN just because they ask – only when absolutely necessary.
• Protect your personal financial information at home and on your computer.
• Check your credit report annually.
• Check your Social Security Administration earnings statement annually.
• Protect your personal computers by using firewalls, anti-spam/virus software, update security patches and change passwords for Internet accounts.
• Don’t give personal information over the phone, through the mail or the Internet unless you have either initiated the contact or are sure you know who is asking.
The case was investigated by Special Agents of the Internal Revenue Service, Criminal Investigations (Syracuse, New York Field Office), under the direction of Special Agent in Charge Shantelle P. Kitchen. It was prosecuted by Assistant United States Attorney Richard Southwick.
Central New York Doctor Sentenced to 18 Months ImprisonmentRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian announced the sentencing today of Mahesh Kuthuru, age 43, a physician of a Utica and Fulton area pain management practice.
Mahesh Kuthuru, owner and operator of Upstate Pain Management with offices in Fulton and Utica, was sentenced by United States District Court Judge David N. Hurd to eighteen (18) months for Health Care Fraud, and twelve (12) months for Unlawful Distribution of Controlled Substances, to run concurrently, ordered to pay $84,265.11 restitution due to Medicare, along with a $125.00 Special Assessment. The defendant will serve three (3) years of supervised release upon release from prison. He was remanded to the custody of the United States Marshals upon being sentenced.
"The public expects physicians to apply high standards of professionalism in their interactions with their patients and delivery of health care services. Actions such as these demonstrate a complete disregard to the quality of care for patients. These criminal activities place additional burden on the public seeking competent health services, resulting in rising costs of health care," explained United States Attorney Hartunian. "Health care fraud remains a priority of my office and we will continue to aggressively prosecute such cases."
On January 22, 2015, Kuthuru pled guilty to Count 4 of the Superseding Indictment, specifically that he executed a scheme to defraud Medicare, and other health care benefit programs by submitting a claim that the defendant had rendered medical services to a patient, when, in fact, neither he, nor any physician, nor any licensed non-physician practitioner acting under his direct supervision, had rendered those services. On that same date, Kuthuru also pled guilty to Count 1 of the Information of unlawfully distributing controlled substances, a misdemeanor.
According to the Indictment, Kuthuru, and co-defendant Meislin, engaged in a scheme to defraud Medicare by submitting claims for reimbursement that falsely represented that Dr. Kuthuru had performed medical services when in fact he had not. Kuthuru purchased a medical practice in Las Vegas, Nevada, in November 2008. In July 2009 Kuthuru sold his home in Baldwinsville and purchased a home in Las Vegas. By January 2010 through at least September 2011, Kuthuru was spending the majority of his time at his Las Vegas medical practice, coming back to the Utica and Fulton offices to treat patients only on a sporadic basis. From January 2010 through September 2011 there were substantial periods of time when there were no licensed medical personnel whatsoever in the Utica and Fulton offices. Patients there were seen only by unlicensed staff members who had received no formal medical training. The Indictment further charged Kuthuru with unlawful distribution of Schedule II controlled substances including Oxycodone, Oxycotin, Methadone and Morphine Sulphate.
Co-defendant Bonnie Meislin was found guilty by a jury on February 25, 2015 to Counts 1-2, 4-6, 10-17, 19, 22-30, and 31 of the Superseding Indictment. Meislin’s sentencing is set for July 1, 2015 in Utica.
The case was a joint investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the New York State Bureau of Narcotics Enforcement, United States Department of Health and Human Services, New York State Worker’s Compensation Board, Safeguard Services, and Excellus Blue Cross & Blue Shield Special Investigations. The case was prosecuted by Assistant U.S. Attorney Edward R. Broton.
Forfeited Assets Seized in Internet Gambling and Money Laundering Case DistributedRead the Press Release
U.S. Attorney Richard S. Hartunian of the Northern District of New York announced today the distribution to numerous law enforcement agencies of over $9.6 million of forfeited assets seized during a multi-agency investigation of an international Internet gambling operation. Joining U.S. Attorney Hartunian were U.S. Marshal David McNulty, Sheriff Craig Apple Sr. of Albany County, Special Agent in Charge Andrew W. Vale of the FBI’s Albany Division, Supervisory Special Agent Thomas Fattorusso of the IRS and Attorney Karen Heggen of the Saratoga County District of New York.
The assets were forfeited in connection with guilty pleas entered in U.S. District Court in the Northern District of New York by Philip Gurian, Michele Lasso and Alan Gould, each of whom pleaded guilty to conspiracy to launder monetary instruments and Jay Goldman, who pleaded guilty to transmission of wagering information.
A total of $9,628,093.75 was distributed by the U.S. Marshal’s Service to the Albany County Sheriff’s Office, the FBI, the IRS, the Albany County District Attorney’s Office, the Saratoga County District Attorney’s Office and the Broward County Sheriff’s Office as follows:
- Albany County Sheriff’s Office
$4,662,393.21
- Albany County District Attorney’s Office
$862,468.22
- Saratoga County District Attorney’s Office
$363,833.85
- Broward County Sheriff’s Office
$104,946.22
- IRS
$1,653,579.39
- FBI
$1,980,872.86
All of the above law enforcement agencies participated in an investigation which revealed that the above-named defendants operated a large-scale illegal gambling business using internet websites which allowed bettors to place thousands of wagers from New York, Florida, Indiana, California, Texas, Kansas, Nevada and elsewhere. Over a four year period, at least $10 million in illegal gambling proceeds were deposited into accounts in the names of sham corporations and accounts in Panama, Andorra and the Cayman Islands. Gurian admitted having said that he was making $150,000 each day. Lasso admitted helping Gurian launder the gambling proceeds to conceal the source and control of the money, depositing at least $8 million. Gould admitted involvement in $3.8 million in transactions. Goldman admitted accepting nearly 9,000 bets totaling over $1.5 million using foreign websites and eighteen different routers.
“Stripping criminals of illegal profits deprives them of the fuel that sustains their illegitimate enterprises,” said U.S. Attorney Hartunian. “In illegal gambling, money is both the way the crime is committed and the reason for committing it. No money equals no crime. Forfeiting the proceeds and instrumentalities of crime puts the money to work for good – helping the victims of crime, funding community programs and providing resources to be used to promote public safety. Equitable sharing redirects these illegal proceeds toward the local law enforcement agencies who work with their federal counterparts and U.S. Attorneys to dismantle large scale criminal enterprises like this one. Such sharing can enable a local police chief, sheriff, or district attorney to commit the necessary resources to conduct a complex, long term investigation that in the end enhances public safety.”
This case was prosecuted by Assistant U.S. Attorney Robert A. Sharpe of the Northern District of New York.
Press ConferenceRead the Press Release
United States Attorney Hartunian has also invited Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation, United States Marshal David McNulty, IRS Supervisory Special Agent Thomas Fattorusso, Albany County District Attorney David Soares, Albany County Sheriff Craig Apple, Sr., and Saratoga County District Attorney Karen Heggen.
DATE: Wednesday, May 20, 2105
TIME: 2 PM
LOCATION: U.S. Attorney’s Office, 445 Broadway, Albany, NY 12207. 2nd Floor
Media has permission to bring cameras into the U.S. Attorney’s Office.
Press packets will be provided at the press conference. No further information will be provided at this time.