Northern District of New York

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

 

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, 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.

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.

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.

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/.

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/.

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.

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.

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.

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.

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.

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.

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).

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.

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.

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.

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.

ALBANY, NEW YORK - United States Attorney Richard S. Hartunian announced today the distribution to numerous law enforcement agencies of over $9.6 million dollars of forfeited assets seized during a multi-agency investigation of an international internet gambling operation. Joining U.S. Attorney Hartunian were United States Marshal David McNulty, Albany County Sheriff Craig Apple, Sr., Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation, IRS Supervisory Special Agent Thomas Fattorusso, and Saratoga County District Attorney Karen Heggen.

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 pled guilty to Conspiracy to Launder Monetary Instruments, and Jay Goldman, who pled 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 Federal Bureau of Investigation, the Internal Revenue Service, 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 was 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. Jay Goldman admitted accepting nearly 9,000 bets totaling over $1.5 million using foreign websites and eighteen different routers.

U.S. Attorney Hartunian said, "Stripping criminals of illegal profits deprives them of the fuel that sustains their illegitimate enterprises. In illegal gambling, money is both the way the crime is committed and the reason for committing it. No money = 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 United States 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.

SYRACUSE, NEW YORK – Nicole F. Vaisey, age 26, of Hermon, New York, pled guilty today to all 10 counts of a federal indictment charging her with child exploitation offenses, announced United States Attorney Richard S. Hartunian and Andrew T. Vale, Special Agent in Charge of the Federal Bureau of Investigation, Albany Division. Vaisey will be sentenced by U.S. District Judge Glenn T. Suddaby on September 25, 2015. She has been in custody since she was arrested on August 15th, and her detention was ordered to continue pending sentencing. Vaisey pled guilty to conspiracy to produce child pornography (Count 1) and producing child pornography (Counts 2-10). On May 8th, co-defendant Stephen M. Howells II pled guilty to all 21 of the counts of the indictment charging him with conspiracy, production of child pornography, and possession of child pornography. Howells will be sentenced by Judge Suddaby on September 18, 2015.

"Nicole Vaisey and Stephen Howells victimized the most vulnerable and innocent among us – young children – and the substantial penalties they face reflect the extreme seriousness of their predatory criminal conduct," said U.S. Attorney Richard S. Hartunian. "The guilty pleas by Vaisey today, following those by Howells last week, will help to hasten the process of healing and closure for the victims, their families, and a community that was shocked by the commission of these horrific crimes. I am grateful for the hard work by all those who toiled to bring them to justice, and I especially commend the joint efforts of the FBI, the St. Lawrence County Sheriff’s Department, and the New York State Police in conducting an investigation that resulted in both defendants pleading guilty to every charge they faced in federal court."

"Today’s guilty plea is an important step in ensuring that Nicole Vaisey is never able to abuse a child again," said Special Agent in Charge Andrew W. Vale. "The crimes she committed with Stephen Howells are horrifying, and the FBI and its law enforcement partners will continue to pursue those who engage and attempt to engage in the sexual exploitation of children."

St. Lawrence County Sheriff Kevin Wells said, "With the plea today to the indictment by Nicole F. Vaisey we can start to see an end to this investigation. Nicole Vaisey is a full co-conspirator with Howells and her plea and sentencing should all be reflective of that. I applaud the Sheriff’s Office staff, the FBI, and the U.S. Attorney’s Office for all of their hard work on this case. This brings some closure to the legal aspects of the case, but we still need to keep the victims in our thoughts and prayers. The positive part of this is that Howells and Vaisey will not have the ability to victimize a child again."

Vaisey’s admissions as part of her guilty plea included the following:

Beginning in 2013, Vaisey and Howells conspired with one another to engage minors in sexually explicit conduct for the purpose of producing child pornography. Howells obtained drugs through his work as a registered nurse and used the drugs to sedate the child victims, girls ranging in age from 5 to 11 years old. Vaisey arranged for a girl born in 2006 to spend the night with them, and the child was used by Vaisey and Howells to engage in sexually explicit conduct and they produced child pornography depicting that conduct, on six separate dates from September 7, 2013 through May 31, 2014. On several of the dates, Vaisey filmed Howells sexually abusing the child. On two of the dates, Vaisey also sexually abused the child.

Howells arranged for a girl born in 2003 to spend the night with them, and the child was used by Vaisey and Howells to engage in sexually explicit conduct and they produced child pornography depicting that conduct on November 17, 2013 and December 15, 2013. On both dates, Vaisey both filmed Howells sexually abusing the child and sexually abused the child herself.

In 2014, Vaisey and Howells together developed and planned a scheme to kidnap minor children for use in sexually explicit conduct and for the purpose of producing child pornography. Each of them made trips to observe and locate possible children to abduct, including Amish girls. On August 13, 2014, Vaisey and Howells went to an Amish farm stand to abduct two girls, ages 11 and 6, by pretending to be customers and using a dog to get the children to the car. Howell forced the children into the car and drugged one of them, and Vaisey drove off. Howells sexually assaulted the children as Vaisey watched and then filmed.

Vaisey faces imprisonment for at least 15 years, and up to 30 years, on the conspiracy charge, as well as on each of the substantive exploitation counts. The Court has the discretion to run all of these sentences concurrently or consecutively to one another. Vaisey will also be required to serve a term of supervised release of a minimum of 5 years and up to life to follow any term of incarceration, and will be required to register as a sex offender.

This case was investigated by the St. Lawrence County Sheriff’s Office and the Federal Bureau of Investigation, with substantial assistance from the New York State Police. It is being prosecuted by Assistant United States Attorneys Lisa Fletcher and Tamara Thomson.

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

Nicole F. Vaisey, 26, of Hermon, New York, pleaded guilty today to all ten counts of a federal indictment charging her with child exploitation offenses, announced U.S. Attorney Richard S. Hartunian for the Northern District of New York and Special Agent in Charge Andrew T. Vale of the Albany Division for the Federal Bureau of Investigation (FBI).  Vaisey will be sentenced by U.S. District Judge Glenn T. Suddaby on Sept. 25, 2015.  She has been in custody since she was arrested on Aug. 15, 2014, and her detention was ordered to continue pending sentencing.         

Vaisey pleaded guilty to conspiracy to produce child pornography (Count 1) and producing child pornography (Counts 2-10).  On May 8, 2015, co-defendant Stephen M. Howells II pleaded guilty to all 21 of the counts of the indictment charging him with conspiracy, production of child pornography and possession of child pornography.  Howells will be sentenced by Judge Suddaby on Sept. 18, 2015. 

“Nicole Vaisey and Stephen Howells victimized the most vulnerable and innocent among us – young children – and the substantial penalties they face reflect the extreme seriousness of their predatory criminal conduct,” said U.S. Hartunian.  “The guilty pleas by Vaisey today, following those by Howells last week, will help to hasten the process of healing and closure for the victims, their families and a community that was shocked by the commission of these horrific crimes.  I am grateful for the hard work by all those who toiled to bring them to justice and I especially commend the joint efforts of the FBI, the St. Lawrence County Sheriff’s Department and the New York State Police in conducting an investigation that resulted in both defendants pleading guilty to every charge they faced in federal court.”

“Today’s guilty plea is an important step in ensuring that Nicole Vaisey is never able to abuse a child again,” said Special Agent in Charge Vale.  “The crimes she committed with Stephen Howells are horrifying and the FBI and its law enforcement partners will continue to pursue those who engage and attempt to engage in the sexual exploitation of children.”

“With the plea today to the indictment by Nicole F. Vaisey we can start to see an end to this investigation,” said Sheriff Kevin Wells of St. Lawrence County.  “Nicole Vaisey is a full co-conspirator with Howells and her plea and sentencing should all be reflective of that.  I applaud Sheriff’s Office staff, the FBI and the U.S. Attorney’s Office for all of their hard work on this case.  This brings some closure to the legal aspects of the case, but we still need to keep the victims in our thoughts and prayers.  The positive part of this is that Howells and Vaisey will not have the ability to victimize a child again.”

Vaisey’s admissions as part of her guilty plea included the following: Beginning in 2013, Vaisey and Howells conspired with one another to engage minors in sexually explicit conduct for the purpose of producing child pornography.  Howells obtained drugs through his work as a registered nurse and used the drugs to sedate the child victims, girls ranging in age from five to 11 years old.  Vaisey arranged for a girl born in 2006 to spend the night with them and the child was used by Vaisey and Howells to engage in sexually explicit conduct and they produced child pornography depicting that conduct, on six separate dates from Sept. 7, 2013, through May 31, 2014.  On several of the dates, Vaisey filmed Howells sexually abusing the child.  On two of the dates, Vaisey also sexually abused the child.        

Howells arranged for a girl born in 2003 to spend the night with them, and the child was used by Vaisey and Howells to engage in sexually explicit conduct and they produced child pornography depicting that conduct on Nov. 17, 2013, and Dec. 15, 2013.  On both dates, Vaisey both filmed Howells sexually abusing the child and sexually abused the child herself.

In 2014, Vaisey and Howells together developed and planned a scheme to kidnap minor children for use in sexually explicit conduct and for the purpose of producing child pornography.  Each of them made trips to observe and locate possible children to abduct, including Amish girls.  On Aug. 13, 2014, Vaisey and Howells went to an Amish farm stand to abduct two girls, ages 11 and six, by pretending to be customers and using a dog to get the children to the car.  Howell forced the children into the car and drugged one of them, and Vaisey drove off.  Howells sexually assaulted the children as Vaisey watched and then filmed.

Vaisey faces imprisonment for at least 15 years and up to 30 years on the conspiracy charge, as well as on each of the substantive exploitation counts.  The court has the discretion to run all of these sentences concurrently or consecutively to one another.  Vaisey will also be required to serve a term of supervised release of a minimum of five years and up to life to follow any term of incarceration and will be required to register as a sex offender.

This case was investigated by the St. Lawrence County Sheriff’s Office and the FBI, with substantial assistance from the New York State Police.  It is being prosecuted by Assistant U.S. Attorneys Lisa Fletcher and Tamara Thomson.

The case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse.  Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

SYRACUSE, NEW YORK – On May 12, 2015, BRIAN DAVIS (46), of Owego, New York, pled guilty to one felony count of treating, storing, and disposing of hazardous waste without a permit, in violation of the Resource Conservation and Recovery Act, announces United States Attorney Richard S. Hartunian and Vernesa D. Jones-Allen, Special Agent in Charge, New York Area Office, Criminal Investigation Division, U.S. Environmental Protection Agency ("EPA").

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

DAVIS, who will be sentenced in Binghamton on September 25, 2015, by Senior United States District Judge Thomas J. McAvoy, faces up to 5 years in prison and a fine of up to $15 million. DAVIS will also be responsible to pay any charges associated with the cleanup and removal of the remaining hazardous waste material.

This case was investigated by the EPA Criminal Investigation Division and by criminal investigators with the New York State Department of Environmental Conservation, and it is being prosecuted by Assistant United States Attorney Michael F. Perry.

For additional information, please contact Executive Assistant U.S. Attorney John G. Duncan at 315-448-0672.

ALBANY, NEW YORK – Scott J. Bornt, age 53, and his wife Geri Mondlin-Bornt, age 50, of Hillsborough, NJ, formerly of Gloversville, NY, each were sentenced yesterday in Albany for Social Security Fraud before Senior United States District Court Judge Thomas J. McAvoy, announced United States Attorney Richard S. Hartunian and Special Agent in Charge Edward J. Ryan of the Social Security Administration, Office of Inspector General, Office of Investigations, New York Field Division.

Scott J. Bornt was sentenced to 18 months in prison and three years supervised release. The court ordered that he pay $314,650 restitution to the United States Social Security Administration.

Geri Mondlin-Bornt was sentenced to three years of probation. The court ordered that she pay $88,120 restitution to the United States Social Security Administration.

As part of their respective guilty pleas, Bornt and Mondlin-Bornt admitted that they each made false statements to Social Security Administration personnel to obtain Social Security Disability Insurance benefits payments to which they were not entitled. The amounts were $314, 650, over six years for Bornt and $88,120, over seven years for Mondlin-Bornt.

Bornt and Mondlin-Bornt admitted that they jointly owned and operated a business, GMB Trucking, and concealed the extent of their involvement with the business from the Social Security Administration. Bornt concealed income and the fact that he was the sole driver for the trucking business, and Mondlin-Bornt underreported and concealed income she received from the business.

The case was investigated by the Social Security Administration, Office of Inspector General, with the assistance of the United States Secret Service. The case was prosecuted by Assistant United States Attorney Edward P. Grogan.

Scott T. Valente, 58, of Schenectady, New York, pleaded guilty today in Albany before Chief U.S. District Judge Gary L. Sharpe to one count of securities fraud, one count of mail fraud and one count of obstructing and impeding the due administration of the Internal Revenue laws, announced U.S. Attorney Richard S. Hartunian, Special Agent in Charge Shantelle P. Kitchen for the New York Field Office’s Internal Revenue Service (IRS) Criminal Investigation, and Special Agent in Charge Andrew W. Vale for the Albany Division’s Federal Bureau of Investigation (FBI).  Valente was released pending his sentencing, scheduled for September 8, 2015, at 11:00 a.m. in Albany, New York.  Valente faces up to 20 years of imprisonment, a fine of $5.255 million, supervised release for three years, restitution, a money judgment of $10,555,954.27 and forfeiture of condominiums at River Oaks Golf and Tennis Resort II, Myrtle Beach, South Carolina, and Jackson Gore Road Adams House, Ludlow, Vermont.

During the plea hearing, Valente admitted that between December 2010 and June 16, 2014, Valente falsely inflated rates of return for his investment company, the ELIV Group LLC (ELIV).  During this time, ELIV raised more than $10.5 million from more than 100 investors.  In written materials and investor account statements provided to ELIV investors, Valente made false claims about annual investment returns.  Specifically, he claimed that ELIV had annual investment returns of 36.38 percent for 2010, 48.27 percent for 2011, 44.56 percent for 2012 and 45.11 percent for 2013 when ELIV actually lost money every year and lost more than $1.2 million by the end of April 2014.  Valente also paid himself more than $2.2 million in unauthorized management fees which he used to enrich himself through cash withdrawals, personal credit card payments and the purchases of real estate, jewelry, home improvements and liquor.

Valente falsely represented to more than 30 ELIV investors that he and his company were authorized to accept, hold and manage individual retirement accounts (IRA).  In reality, neither Valente nor ELIV had that authorization.  To prevent the IRS from learning that he had improperly accepted, held and managed IRA accounts, Valente altered a legitimate quarterly ELIV investment statement to make it appear as though ELIV had received an investor’s purported IRA rollover investment and was holding that investment as an IRA.  He then caused that altered statement to be submitted to the IRS.

At the time ELIV ceased operations, approximately $2.4 million of the more than $10 million dollars of investor principal that Valente had received from investors during ELIV’s operational period had been returned to investors with the false representations that these payments were a return of principal or a distribution of profits.  Valente knew that the very small profits earned were far less than those payments.

“Valente made false statements to investors to persuade them to part with their hard earned money so he could line his own pockets with millions of dollars and submitted false documents to the Internal Revenue Service to cover his tracks,” said U.S. Attorney Hartunian.  “We will continue to pursue aggressively those who use investment fraud to fleece folks of their savings and retirement money.” 

U.S. Attorney Hartunian thanked IRS-Criminal Investigation and the FBI for working with the U.S. Attorney’s Office to hold Valente accountable for his fraud.

“Through his representations that he and ELIV were authorized to accept, hold and manage IRA accounts, Mr. Valente made the Internal Revenue Service an unwilling part of his investment fraud scheme, for which he is now being held accountable,” said Special Agent in Charge Kitchen for the IRS.  “Fortunately, the partnership of IRS-Criminal Investigation, the U.S. Attorney’s Office and the FBI was successful in preventing his victims from sustaining additional losses and protecting potential investors from harm.” 

“These schemes and other securities related frauds have a devastating impact on the victims,” said Special Agent in Charge Vale for the FBI.  “The FBI is committed to working with our law enforcement partners to protect investor confidence in the U.S. financial markets.”

This case was investigated by the Internal Revenue Service - Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation.  This case is being prosecuted by Assistant U.S. Attorney Rick Belliss.   

ALBANY, NEW YORK – SCOTT T. VALENTE, age 58, of Schenectady, New York, pled guilty today in Albany before Chief United States District Judge Gary L. Sharpe to one count of securities fraud, one count of mail fraud, and one count of obstructing and impeding the due administration of the Internal Revenue laws, announced United States Attorney Richard S. Hartunian, Special Agent-in-Charge Shantelle P. Kitchen, Internal Revenue Service, Criminal Investigation, New York Field Office, and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. VALENTE was released pending his sentencing, scheduled for September 8, 2015, at 11:00 a.m. in Albany. VALENTE faces up to twenty years of imprisonment, a fine of $5,255,000, supervised release for three years, restitution, a money judgment of $10,555,954.27, and forfeiture of condominiums at River Oaks Golf and Tennis Resort II, Myrtle Beach, South Carolina, and Jackson Gore Road Adams House, Ludlow, Vermont.

During the plea hearing, VALENTE admitted that:

Between December 2010 and June 16, 2014, VALENTE falsely inflated rates of return for his investment company, The ELIV Group, LLC ("ELIV"). During this time, ELIV raised more than $10.5 million from more than 100 investors. In written materials and investor account statements provided to ELIV investors, VALENTE made false claims about annual investment returns. Specifically, he claimed that ELIV had annual investment returns of 36.38% for 2010, 48.27% for 2011, 44.56% for 2012, and 45.11% for 2013 when ELIV actually lost money every year and lost more than $1.2 million by the end of April 2014. VALENTE also paid himself more than $2.2 million in unauthorized management fees which he used to enrich himself through cash withdrawals, personal credit card payments, and the purchases of real estate, jewelry, home improvements, and liquor.

VALENTE falsely represented to more than 30 ELIV investors that he and his company were authorized to accept, hold, and manage individual retirement accounts ("IRAs"). In reality, neither VALENTE nor ELIV had that authorization. To prevent the IRS from learning that he had improperly accepted, held, and managed IRA accounts, VALENTE altered a legitimate quarterly ELIV investment statement to make it appear as though ELIV had received an investor’s purported IRA rollover investment and was holding that investment as an IRA. He then caused that altered statement to be submitted to the IRS.

At the time ELIV ceased operations, approximately $2.4 million of the more than $10 million dollars of investor principal that VALENTE had received from investors during ELIV’s operational period had been returned to investors with the false representations that these payments were a return of principal or a distribution of profits. VALENTE knew that the very small profits earned were far less than those payments.

U.S. Attorney Hartunian said, "VALENTE made false statements to investors to persuade them to part with their hard earned money so he could line his own pockets with millions of dollars, and submitted false documents to the Internal Revenue Service to cover his tracks. We will continue to pursue aggressively those who use investment fraud to fleece folks of their savings and retirement money." U.S. Attorney Hartunian thanked IRS-Criminal Investigation and the FBI for working with the U.S. Attorney’s Office to hold VALENTE accountable for his fraud.

IRS-CI Special Agent-in-Charge Shantelle P. Kitchen said, "Through his representations that he and ELIV were authorized to accept, hold and manage IRA accounts, Mr. Valente made the Internal Revenue Service an unwilling part of his investment fraud scheme, for which he is now being held accountable. Fortunately, the partnership of IRS-Criminal Investigation, the U.S. Attorney’s Office and the FBI was successful in preventing his victims from sustaining additional losses and protecting potential investors from harm."

"These schemes and other securities related frauds have a devastating impact on the victims," said FBI Special Agent-in-Charge Andrew W. Vale. "The FBI is committed to working with our law enforcement partners to protect investor confidence in the U.S. financial markets."

This case was investigated by the Internal Revenue Service - Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Rick Belliss.

SYRACUSE, NEW YORK –Stephen M. Howells II, age 39, of Hermon, NY pled guilty today to all 21 counts of a federal indictment charging him with child exploitation offenses, according to United States Attorney Richard S. Hartunian and Andrew T. Vale, Special Agent in Charge of the Federal Bureau of Investigation, Albany Division. Howells will be sentenced by U.S. District Judge Glenn T. Suddaby on Friday, September 18, 2015 at 11:00 am in Syracuse, New York. A trial is scheduled for co-defendant Nicole Vaisey on June 22, 2015 before Judge Suddaby in Syracuse.

Howells pled guilty to conspiracy to produce child pornography, producing child pornography (Counts 2-10), and possessing child pornography. The conspiracy count (Count 1) and fifteen additional counts relate to Howells’ sexual abuse of six separate children (ranging in age from 5 to 11) and his filming of that abuse on sixteen dates between December 2012 and August 2014. Howells is charged alone in six of those counts (Counts 11-16); Vaisey is also charged with conspiracy and nine of the production counts (Counts 2-10). Howells also pled guilty to five counts of possession of child pornography, (Counts 17-21), separate and apart from the children and images charged in the first 16 counts of the superseding indictment. These counts relate to numerous image and video files Howells collected from the Internet and downloaded to each of five separate hard drives from computers that were recovered from his residence. These images and video files also involve prepubescent minors and minors under the age of 12.

Howells’ admissions as part of his guilty plea included the following:

From September 2013 to August 2014, Howells conspired with Vaisey to produce child pornography. Howells obtained drugs through his work as a registered nurse and he used the drugs to sedate the child victims. On sixteen specified dates between December 2012 and August 2014, Howells sexually abused six separate children, ranging in age from 5 to 11, sometimes with Vaisey also doing so, as Howells or Vaisey filmed that abuse. Howells and Vaisey planned to abduct children to engage in sexually explicit conduct. They kidnapped two Amish children from a farm stand in August of 2014 to use them to engage in sexually explicit conduct and produce images and videos of that conduct. On August 15, 2014, Howells possessed five separate computer hard drives containing numerous image and video files of actual young children engaged in sexually explicit conduct.

Howells faces at least 15 years imprisonment, and up to 30 years on the conspiracy charge, as well as on each of the substantive exploitation counts. He also faces a maximum sentence of 20 years on each of the possession counts. The Court has the discretion to run all of these sentences concurrently or consecutively to one another. Howells will also be required to serve a term of supervised release of a minimum of 5 years and up to life to follow any term of incarceration. In addition, conviction on any count of the superseding indictment will require Howells to register as a sex offender.

"The criminal conduct committed by Stephen Howells is beyond comprehension," stated U.S. Attorney Richard S. Hartunian. "Our hearts go out to all the young victims who endured his unspeakable acts. We will continue to do everything in our power to see that he will never abuse another innocent child. I commend the community, the St. Lawrence County Sheriff’s Office, the New York State Police, and the Federal Bureau of Investigation for working tirelessly to bring him to justice."

"The crimes committed by Howells are some of the most horrific imaginable," said Special Agent in Charge Andrew W. Vale. "He carefully planned and carried out these abuses and exploitations, and today's guilty plea is the result of a vigorous investigation to locate Howells and uncover the full extent of his criminal actions. The FBI commends the work and dedication of its law enforcement partners and the U.S. Attorney's Office. It is because of this essential collaboration that the victims were recovered and that Howells is receiving justice for his crimes."

This case was investigated by the St. Lawrence County Sheriff’s Office and the Federal Bureau of Investigation with substantial assistance from the New York State Police. It is being prosecuted by Assistant United States Attorneys Lisa Fletcher and Tamara Thomson.

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

SYRACUSE, NEW YORK – Michael Dote, age 47, of West Edmeston, New York, pled guilty to harboring four illegal aliens from November 2013 through December 31, 2013 at a dog food plant Dote owns named Scooby Rendering, Inc. ("Scooby"), located at 1930 Oriskany Street, Utica, New York according to United States Attorney Richard S. Hartunian.

During the plea hearing on May 8, 2015, Dote admitted as the co-owner/operator of Scooby, he was responsible for the hiring of Scooby employees. In 2013, Dote hired four illegal aliens from Guatemala. When Dote hired the four aliens, he did not request any documentation verifying that they were authorized to work in the United States. On December 30, 2013, emergency crews responded to the report of a fire at one of the loading docks at Scooby. The fire investigation subsequently revealed that there were four aliens working and residing at Scooby. Dote admitted that he harbored the aliens and that such conduct substantially facilitated the aliens’ remaining in the United States.

The defendant is facing a statutory maximum sentence of 5 years imprisonment and a maximum fine of $250,000.00. Dote is scheduled to be sentenced on September 18, 2015 before the Honorable Glenn T. Suddaby.

This prosecution resulted from an investigation conducted by U.S. Homeland Security Investigations (HSI), Syracuse, New York, with cooperation from the New York State Police, Whitestown Police Department, ICE Enforcement and Removal Operations, U.S. Border Patrol, Utica Police Department, and CBP Air and Marine Operations. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant United States John Duncan at (315) 448-0672.

Stephen M. Howells II, 39, of Hermon, New York, pleaded guilty today to all 21 counts of a federal indictment charging him with child exploitation offenses, according to U.S. Attorney Richard S. Hartunian for the North District of New York and Special Agent in Charge Andrew T. Vale of the Albany Division for the Federal Bureau of Investigation (FBI).  Howells will be sentenced by U.S. District Judge Glenn T. Suddaby on Friday, Sept. 18, 2015 at 11 a.m. in Syracuse, New York.  A trial is scheduled for co-defendant Nicole Vaisey on June 22, 2015 before Judge Suddaby in Syracuse, New York.

Howells pleaded guilty to conspiracy to produce child pornography, producing child pornography (Counts 2-10) and possessing child pornography.  The conspiracy count (Count 1) and 15 additional counts relate to Howells’ sexual abuse of six separate children, ranging in age from 5 to 11 and his filming of that abuse on sixteen dates between December 2012 and August 2014.  Howells is charged alone in six of those counts (Counts 11-16), Vaisey is also charged with conspiracy and nine of the production counts (Counts 2-10).  Howells also pleaded guilty to five counts of possession of child pornography (Counts 17-21), separate and apart from the children and images charged in the first 16 counts of the superseding indictment.  These counts relate to numerous image and video files Howells collected from the Internet and downloaded to each of five separate hard drives from computers that were recovered from his residence.  These images and video files also involve prepubescent minors and minors under the age of 12.

Howells’ admissions as part of his guilty plea included the following: from September 2013 to August 2014, Howells conspired with Vaisey to produce child pornography.  Howells obtained drugs through his work as a registered nurse and he used the drugs to sedate the child victims.  On 16 specified dates between December 2012 and August 2014, Howells sexually abused six separate children, ranging in age from 5 to 11, sometimes with Vaisey also doing so, as Howells or Vaisey filmed that abuse.  Howells and Vaisey planned to abduct children to engage in sexually explicit conduct.  They kidnapped two Amish children from a farm stand in August of 2014 to use them to engage in sexually explicit conduct and produce images and videos of that conduct.  On Aug. 15, 2014, Howells possessed five separate computer hard drives containing numerous image and video files of actual young children engaged in sexually explicit conduct.

Howells faces at least 15 years imprisonment and up to 30 years on the conspiracy charge, as well as on each of the substantive exploitation counts.  He also faces a maximum sentence of 20 years on each of the possession counts.  The court has the discretion to run all of these sentences concurrently or consecutively to one another. Howells will also be required to serve a term of supervised release of a minimum of five years and up to life to follow any term of incarceration.  In addition, conviction on any count of the superseding indictment will require Howells to register as a sex offender.

“The criminal conduct committed by Stephen Howells is beyond comprehension,” said U.S. Attorney Hartunian.  “Our hearts go out to all the young victims who endured his unspeakable acts.  We will continue to do everything in our power to see that he will never abuse another innocent child.  I commend the community, the St. Lawrence County Sheriff’s Office, the New York State Police and the Federal Bureau of Investigation for working tirelessly to bring him to justice.”

“The crimes committed by Howells are some of the most horrific imaginable,” said Special Agent in Charge Vale.  “He carefully planned and carried out these abuses and exploitations and today's guilty plea is the result of a vigorous investigation to locate Howells and uncover the full extent of his criminal actions.  The FBI commends the work and dedication of its law enforcement partners and the U.S. Attorney's Office.  It is because of this essential collaboration that the victims were recovered and that Howells is receiving justice for his crimes.”

This case was investigated by the St. Lawrence County Sheriff’s Office and the FBI with substantial assistance from the New York State Police.  It is being prosecuted by Assistant U.S. Attorneys Lisa Fletcher and Tamara Thomson.

The case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse.  Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

UTICA, NEW YORK – Certified Environmental Services, Inc. ("CES") pled guilty on May 5th to a one count misdemeanor Information charging CES with negligently releasing asbestos into the ambient air, thereby placing other persons in imminent danger of death or serious bodily injury, announced United States Attorney Richard S. Hartunian. Sentencing is scheduled for 1:00 p.m. on September 10, 2015, before U.S. District Judge David N. Hurd in Utica. CES faces maximum penalties that include probation for 5 years, restitution, and a $200,000 fine, as well as a special assessment of $125.

The admissions by CES in connection with pleading guilty included the following:

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

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

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

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

In 2010, a fifteen count superseding indictment charged CES and others with environmental offenses and mail fraud and a jury trial concluded with the conviction of CES (and three co-defendants) as charged. However, in 2014, the Court of Appeals reversed the convictions and remanded for a new trial. The guilty plea May 5th resolves the pending charges against CES and two co-defendants. Two other co-defendants face re-sentencing.

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

Former New York State Assemblymember William Scarborough, 69, of Queens, New York, has agreed to plead guilty on federal and state charges stemming from public corruption investigations, announced U.S. Attorney Richard S. Hartunian of the Northern District of New York, Attorney General Eric T. Schneiderman of the State of New York, State Comptroller Thomas P. DiNapoli of New York and Special Agent in Charge Andrew W. Vale of the FBI’s Albany Division.

Scarborough pleaded guilty this morning to federal charges and is scheduled to plead guilty to state charges at 12:30 p.m. in Albany, New York, County Court.

Appearing in federal court before Senior U.S. District Judge Thomas J. McAvoy of the Northern District of New York, Scarborough pleaded guilty to wire fraud and theft concerning a program receiving federal funds.  Scarborough is scheduled to be sentenced on Monday, Sept. 14, 2015, at 11:30 a.m., in Albany.  He faces up to 20 years in prison on the wire fraud count, 10 years in prison on the count charging theft concerning a program receiving federal funds and fines of up to $250,000 on each count.  As part of the plea agreement, Scarborough also agreed to resign his position as a member of the New York State Assembly, pay $54,355 in restitution to the State of New York and forfeit that amount to the United States.   

This afternoon, Scarborough will appear before Judge Stephen W. Herrick of the Albany County Court to plead guilty to a public corruption charge related to the misuse of over $40,000 from his Friends of Bill Scarborough campaign account.  As part of the plea agreement, Scarborough will plead guilty to grand larceny in the fourth degree and is expected to be sentenced to one year of jail time, will resign his position in the State Assembly and will donate all funds remaining in his campaign account to charity.

The federal charges and guilty plea arose from an investigation into travel voucher fraud.  As a New York State Assemblymember, 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 actually 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.”

As part of his federal plea, Scarborough admitted that from January 2009 through December 2012 he submitted 174 fraudulent New York State Assembly 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 overnight.  

The state charges arose from an ongoing effort between Schneiderman and DiNapoli known as “Operation Integrity” and conducted with the FBI’s Public Corruption Task Force.  In his state plea agreement, Scarborough will admit that between January 2007 and March 2014, he stole from the Friends of Bill Scarborough campaign committee by making over $38,000 in unauthorized cash withdrawals and transfers from his campaign account for his own personal use and taking checks totaling $3,450 which were intended as donations to the Friends of Bill Scarborough campaign and instead depositing them directly into his personal bank.  In furtherance of this scheme, Scarborough will admit that, over the seven year period, he caused his campaign committee to file 21 false reports to the New York State Board of Elections that failed to reflect these larcenies.

“My office is committed to rooting out corruption in the state legislature, without regard to party, position, power or popularity,” said U.S. Attorney Hartunian.  “There is no delight in the downfall of a duly elected representative, but Mr. Scarborough chose personal gain over the public trust.  Complaints of financial distress – something many people experience – provide a poor excuse for Mr. Scarborough’s misconduct, which involved a four year scheme to defraud by abusing the New York State Assembly’s travel voucher system.  He falsely obtained $54,355, and now must face the consequences of his actions.  I commend the Federal Bureau of Investigation, the Office of New York State Attorney General Eric Schneiderman and the Office of New York State Comptroller Thomas DiNapoli for their outstanding work and collaborative efforts here.  This case is the result of interagency cooperation at its best.”

“Today Assemblymember Scarborough pleaded guilty to crimes that betrayed his constituents and the taxpayers of the State of New York – crimes that will send him to jail under this plea agreement,” said Attorney General Schneiderman.  “While he will pay the price for his individual crimes, we need to channel public outrage at the ongoing corruption scandals into a movement for comprehensive reform.  We have done this before in New York, and we can do it again.”

The Attorney General’s Office thanked the FBI and the U.S. Attorney’s Office of the Northern District of New York for their collaboration on this case.

“Public service means just that: serving the public,” said Comptroller DiNapoli.  “Mr. Scarborough abused his public office for personal gain and now faces the consequences of his actions.  I commend Attorney General Schneiderman, U.S. Attorney Hartunian and the Federal Bureau of Investigation for their commitment and for our continued partnership in rooting out corruption and protecting public funds.”

“American taxpayers deserve honesty from public officials,” said Special Agent in Charge Vale.  “Those involved in acts of corruption and blatant greed will be held accountable for their actions and we will continue to pursue those like Mr. Scarborough who sell their integrity at the public’s expense.”

The federal case was investigated by the FBI’s Albany Division and is being prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman of the Northern District of New York.

Prosecuting the state case is Assistant Attorney General Christopher Baynes of the Attorney General’s Public Integrity Bureau.  The state’s investigation was handled by Investigator Mark Spencer and Deputy Bureau Chief Antoine Karam of the Investigation Bureau.  Forensic Auditor Jason Blair and Legal Analyst Sara Pogorzelski provided additional assistance.

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

ALBANY, NEW YORK – United States Attorney Richard S. Hartunian, New York State Attorney General Eric T. Schneiderman, State Comptroller Thomas P. DiNapoli, and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation, today announced that former New York State Assemblymember WILLIAM SCARBOROUGH, age 69, of Queens, New York, has agreed to enter guilty pleas on federal and state public charges stemming from public corruption investigations.

SCARBOROUGH pled guilty this morning to federal charges and is scheduled to plead guilty to state charges at 12:30 p.m. in Albany County Court.

Appearing in federal court before Senior United States District Judge Thomas J. McAvoy, SCARBOROUGH pled guilty to wire fraud and theft concerning a program receiving federal funds. SCARBOROUGH is scheduled to be sentenced on Monday, September 14, 2015, at 11:30 a.m., in Albany, New York. He faces up to 20 years in prison on the wire fraud count, 10 years in prison on the count charging theft concerning a program receiving federal funds, and fines of up to $250,000 on each count. As part of the plea agreement, SCARBOROUGH also agreed to resign his position as a Member of the New York State Assembly, pay $54,355 restitution to New York State, and forfeit that amount to the United States.

This afternoon, SCARBOROUGH will appear before Albany County Court Judge Stephen W. Herrick to plead guilty to a public corruption charge related to the misuse of over $40,000 from his Friends of Bill Scarborough campaign account. As part of a plea agreement, SCARBOROUGH will plead guilty to Grand Larceny in the 4th Degree and is expected to be sentenced to one year of jail time, will resign his position in the State Assembly, and will donate all funds remaining in his campaign account to charity.

The federal charges and guilty plea arose from an investigation into travel voucher fraud. As a New York State Assembly Member, SCARBOROUGH was entitled to receive the following types of payments when he traveled to Albany for legislative business: (a) an allowance for overnight stays in Albany ("full per diem"), which varied from $160 to $171 per day; (b) an allowance for travel not requiring an overnight stay in Albany ("partial per diem"), which varied from $49 to $61 per day; and (c) reimbursement for mileage actually 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."

As part of his federal plea, SCARBOROUGH admitted that from January 2009 through December 2012 he submitted 174 fraudulent New York State Assembly Travel Vouchers to the Assembly Finance Department causing New York State 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 overnight.

The state charges arose from an ongoing effort between Schneiderman and DiNapoli known as "Operation Integrity" and conducted with the FBI Public Corruption Task Force. In his state plea agreement, SCARBOROUGH will admit that between January of 2007 and March of 2014, he stole from the "Friends of Bill Scarborough" campaign committee by making over $38,000 in unauthorized cash withdrawals and transfers from his campaign account for his own personal use, and taking checks totaling $3,450 which were intended as donations to "Friends of Bill Scarborough" and instead depositing them directly into his personal bank. In furtherance of this scheme, SCARBOROUGH will admit that, over the seven year period, he caused his campaign committee to file twenty-one false reports to the New York State Board of Elections that failed to reflect these larcenies.

U.S. Attorney Richard S. Hartunian said, "My office is committed to rooting out corruption in the state legislature, without regard to party, position, power, or popularity. There is no delight in the downfall of a duly elected representative, but Mr. Scarborough chose personal gain over the public trust. Complaints of financial distress -- something many people experience -- provide a poor excuse for Mr. Scarborough’s misconduct, which involved a four year scheme to defraud by abusing the New York State Assembly’s travel voucher system. He falsely obtained $54,355, and now must face the consequences of his actions. I commend the Federal Bureau of Investigation, the Office of New York State Attorney General Eric Schneiderman, and the Office of New York State Comptroller Thomas DiNapoli for their outstanding work and collaborative efforts here. This case is the result of interagency cooperation at its best."

"Today Assemblymember Scarborough pleaded guilty to crimes that betrayed his constituents and the taxpayers of the State of New York--crimes that will send him to jail under this plea agreement," said Attorney General Eric T. Schneiderman. "While he will pay the price for his individual crimes, we need to channel public outrage at the ongoing corruption scandals into a movement for comprehensive reform. We have done this before in New York, and we can do it again." The Attorney General’s Office thanked the Federal Bureau of Investigation and the United States Attorney’s Office for the Northern District of New York for their collaboration on this case.

"Public service means just that: serving the public. Mr. Scarborough abused his public office for personal gain and now faces the consequences of his actions," said Comptroller Thomas P. DiNapoli. "I commend Attorney General Schneiderman, U.S. Attorney Hartunian, and the Federal Bureau of Investigation for their commitment and for our continued partnership in rooting out corruption and protecting public funds."

"American taxpayers deserve honesty from public officials," said Special Agent in Charge Andrew W. Vale. "Those involved in acts of corruption and blatant greed will be held accountable for their actions, and we will continue to pursue those like Mr. Scarborough who sell their integrity at the public’s expense."

The federal case was investigated by the Federal Bureau of Investigation, Albany Division, and is being 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, which is led by Deputy Bureau Chief Stacy Aronowitz and Bureau Chief Daniel Cort. Kelly Donovan is the Executive Deputy Attorney General for Criminal Justice. The state’s investigation was handled by Investigator Mark Spencer and Deputy Bureau Chief Antoine Karam of the Investigation Bureau, which is led by Chief Dominick Zarrella. Forensic auditor Jason Blair and legal analyst Sara Pogorzelski provided additional assistance.

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

ALBANY, NEW YORK – Epifanio Andrade-Perez, 33, of Amsterdam, New York, was sentenced yesterday to 15 months of imprisonment for illegal re-entry by Chief United States District Court Judge Gary L. Sharpe in Albany, New York, announced United States Attorney Richard S. Hartunian and Field Office Director for ICE Enforcement & Removal Operations (ERO), Michael T. Phillips, Buffalo, NY.

On October 21, 2014, Andrade-Perez gave a false name to a Deputy Montgomery County Sherriff. ICE officers responded and determined that Andrade-Perez was an alien, a citizen of Mexico and that he had been removed from the United States to Mexico in 2008.

The case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Albany, New York and prosecuted by Assistant United States Attorney Edward P. Grogan.

SYRACUSE, NEW YORK – On April 30, 2015, Ergys Metashi (34), of Albania, was indicted on one count of bringing an alien into the United States without authorization, announces United States Attorney Richard S. Hartunian and Homeland Security Investigations, Resident Agent in Charge Brian Devine.

The indictment charges Mr. Metashi, a commercial truck driver from Albania who lives and works in Canada, with bringing an alien into the United States from Canada at the port of entry at Alexandria Bay, New York, on March 31, 2015. Mr. Metashi allegedly agreed to smuggle the alien into the United States by hiding the alien in the sleeping compartment of a tractor trailer in exchange for payment. Law enforcement officials at the border found the alien hiding under a blanket and arrested Mr. Metashi. If convicted, Mr. Metashi faces up to ten years in prison. Following a detention hearing, Magistrate Judge Andrew T. Baxter ordered Mr. Metashi to be detained pending trial.

The case is being investigated by Homeland Security Investigations and is being 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.

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

SYRACUSE, NEW YORK – A man who previously had been found guilty in December 2014 by a federal jury of Possessing with the Intent to Distribute Crack Cocaine; Possessing a Gun in Furtherance of his Drug Dealing; and being a Felon in Possession of a Gun, was sentenced to a term of incarceration in U. S. District Court in Syracuse. SHAEEM GRADY (A/K/A SHAHEEM GRADY), 29, of Syracuse, NY, was sentenced to 75 months incarceration, 3 years of supervised release, and ordered to pay a special assessment of $300 by Senior, U.S. District Judge Frederick J. Scullin, Jr., according to U.S. Attorney Richard S. Hartunian. GRADY was arrested on March 22, 2013, when Syracuse police officers observed a baggie of crack cocaine in his lap as GRADY sat in the passenger seat of a car illegally parked on Catawba Street. Police attempted to place GRADY under arrest but GRADY violently resisted them while attempting to gain access to the center console of the vehicle where a loaded handgun was later recovered. During GRADY’s struggle with the police he told the driver of the vehicle to "pull off, drive away" while the officers were trying to physically remove him from the car. Officers were eventually able to take GRADY into custody. Later, as GRADY was walked to the Public Safety Building he stated to one of the officers "I wasn’t going to kill you." GRADY was prohibited from possessing a firearm due to a 2002 conviction for Criminal Possession of a Weapon in the Second Degree.

This prosecution resulted from an investigation conducted by the Syracuse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Geoffrey Brown. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.

WASHINGTON – Three members of an international synthetic drug-trafficking organization—responsible for selling synthetic drugs with brand names like Twilite, Passion Sense, Stoopid, Black Diamond, and Platinum—were arrested in Los Angeles on April 14, 2015. The federal charges were unsealed in the Northern District of New York today. According to documents also unsealed in the Southern District of Indiana today, a leader of the organization has already pleaded guilty to federal drug-trafficking charges.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Richard S. Hartunian of the Northern District of New York, U.S. Attorney Josh J. Minkler of the Southern District of Indiana, and DEA New York Special Agent in-Charge James J. Hunt made the announcement.

"The manufacture and distribution of synthetic narcotics is a growing problem that is especially dangerous to the young people of our communities," said Assistant Attorney General Caldwell. "Drug traffickers peddle these illegal synthetic drugs with harmless sounding names to impressionable youth who are typically unaware of the harmful chemicals they actually are ingesting. The Criminal Division will continue to partner with local and federal law enforcement around the nation to stem the flow of these unsafe and illegal substances and bring the traffickers to justice."

"Despite the efforts of these drug traffickers to evade prosecution through the creation of synthetic drugs, these indictments demonstrate the ability of law enforcement to effectively respond to those who market these dangerous substances," said U.S. Attorney Hartunian. "We will continue to use all our resources to combat this national problem."

"Synthetic narcotics are not the harmless product traffickers and users make them out to be," said U.S. Attorney Minkler. "They are mind-altering substances that cause psychosis and even death with our nation’s youth."

"Abusing designer synthetic drugs is like playing a game of Russian Roulette, and DEA is aggressively going after those who import and distribute these poisons in neighborhoods and local communities," said DEA New York Special Agent in-Charge James J. Hunt. "These drug trafficking criminals have no regard for the health and well-being of those who abuse these drugs, nor do they have any regard for our nation’s laws. DEA must continue to attack these

dangerous drug facilitators who often prey on young, impressionable abusers, while educating Americans about this ever-changing new frontier of dangerous designer synthetic drugs."

Andrew Raymond, 36, Brian Requena, 37, and Zefren Michael, 35, all of Los Angeles, California, were indicted in the Northern District of New York for conspiracy to possess with the intent to distribute and to distribute controlled substance analogues in Central New York, intending that those analogues be used for human consumption. Raymond and Requena were also charged with a money laundering conspiracy.

In a related case, Roger Upchurch, 66, of Indianapolis, Indiana, pleaded guilty on March 11, 2015, before Chief U.S. District Judge Richard L. Young in the Southern District of Indiana, to conspiracy to distribute a controlled substance analogue and money laundering. Upchurch also forfeited over $2 million in cash and other assets obtained from his illegal activities, including a house, two cars and a Sweetwater pontoon boat. A sentencing date has not yet been scheduled.

As part of his guilty plea, Upchurch admitted that he was a leading member of the international drug-trafficking organization, working in the Los Angeles-area, to produce and distribute thousands of kilograms of smokable synthetic cannabinoids (SSCs) with brand names such as Twilite, Passion Sense, Stoopid, Black Diamond and Platinum. SSCs, also popularly known as "Spice," are smokable drugs that are designed to mimic marijuana. The synthetic chemicals used to produce these SSCs were imported from China, then applied to a plant-like substance and sold like marijuana in a smokable form.

According to allegations in the indictment, Raymond, Requena, Michaels, and others conspired with Upchurch to manufacture SSCs for distribution throughout the United States. In an effort to avoid detection and prosecution by law enforcement, the drug-trafficking organization allegedly mislabeled and fraudulently labeled packages with "not for human consumption" and other false statements, including falsely marketing their products as potpourri, incense or aroma.

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

This investigation is part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, and this case was supported under the DEA Special Operations Division’s Project Synergy. This case is the result of investigative efforts led by I.R.S. Criminal Investigations- Syracuse Office, DEA’s Syracuse Resident Office and DEA’s Indianapolis Field Office.

The case pending in the Northern District of New York is being prosecuted by Assistant U.S. Attorney Carla Freedman.

ALBANY, NEW YORK – Adam Rey Gonzalez, 28, of Schenectady, New York, pled guilty today in Albany before Senior United States District Judge Thomas J. McAvoy to one count of distribution 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.

"This case demonstrates that even sophisticated traders of child pornography will be identified and prosecuted," stated United States Attorney Richard S. Hartunian. "My office, working with our law enforcement partners, will use every tool at its disposal to track down and prosecute those who share movies and photographs depicting the sexual abuse of young children."

"Today’s guilty plea was the result of a diligent investigation that unraveled the web in which Mr. Gonzalez sought to anonymize his criminal online activities. Others who are engaging in similar online activity should be aware that we can identify them and will pursue criminal charges against them," said Special Agent-in-Charge Andrew W. Vale.

Gonzalez, who has been convicted twice previously for sexual offenses, faces a statutory mandatory minimum term of fifteen years of imprisonment and a maximum sentence of forty years of imprisonment, as well as a lifetime term of supervised release, a maximum fine of $250,000, and mandatory registration as a sex offender. Gonzalez will be sentenced in Albany on August 10, 2015.

As part of his guilty plea, Gonzalez admitted that he used a peer-to-peer file sharing program to distribute movies and photographs of young boys engaged in sexually explicit activity over the Internet. Gonzalez also admitted that he took numerous steps to remain anonymous while trading child pornography online, and that he kept a small computer hidden in his sofa specifically for the purpose of trading child pornography. A forensic examination of that computer ultimately revealed that Gonzalez had nearly a thousand files depicting children as young as age two engaged in sexually explicit conduct that he downloaded from the Internet and regularly traded with others.

This case was investigated by the Federal Bureau of Investigation, Albany Division, and is being prosecuted by Assistant United States Attorneys Wayne A. Myers, Emily T. Farber, and Special Assistant United States Attorney Amanda W. Cox.