Northern District of New York

ALBANY, NEW YORK – Gnoan Pierre Kablan was indicted on April 9 on 16 felony counts of aiding and assisting in the preparation and presentation of false and fraudulent tax returns, announced United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office. On each count, Kablan faces a maximum imprisonment term of 3 years, a maximum fine of $100,000, a special assessment of $100, and a maximum term of supervised release of 1 year. As part of any sentence, Kablan may also be ordered to pay to the Treasury Department an amount equaling the tax loss that his conduct is found to have caused.

Kablan, 52, of Latham, was arraigned in Albany on April 13 before the Honorable Randolph F. Treece, United States Magistrate Judge, and released on his own recognizance pending a trial scheduled for June 15 before the Honorable Mae D’Agostino, United States District Court Judge.

According to the indictment, Kablan, a tax preparer working in Rensselaer County during the relevant time period, prepared at least 16 tax returns for 2008 through 2011 containing false deductions for charitable gifts, false deductions for unreimbursed employee expenses, and false solar property or energy efficiency credits that gave his taxpayer clients refunds that they were not entitled to.

"The defendant allegedly prepared tax returns that resulted in a tax loss to the U.S. Treasury Department because his clients were not entitled to the deductions and credits that they claimed," stated United States Attorney Richard S. Hartunian. "This being tax-paying season, now is a good time for our citizens to remember that willfully filing a false return can result in civil and criminal liability."

"The investigation of unscrupulous tax return preparers remains a priority for the Internal Revenue Service," said Shantelle P. Kitchen, IRS Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office. "We will vigorously pursue the prosecution of them with our partners in the United States Attorney’s Office."

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

Assistant United States Attorney Michael Barnett is prosecuting this case, which is being investigated by the New York Field Office of the IRS-Criminal Investigation.

ALBANY, NEW YORK – FAISAL Q. MORSHED, 35, of Verplanck, New York, and IBRAHIM Q. MURSHED, 25, of Hudson, New York, were sentenced yesterday for conspiring to commit Supplemental Nutrition Assistance Program ("SNAP") fraud, and SNAP fraud, by Senior United States District Judge Thomas J. McAvoy, announced United States Attorney Richard S. Hartunian, Columbia County Sheriff David Bartlett, U.S. Department of Agriculture, Office of the Inspector General, Northeast Region Special Agent in Charge William G. Squires, Jr., and U.S. Department of Homeland Security, Homeland Security Investigations Assistant Special Agent in Charge Nicholas DiNicola.

FAISAL MORSHED was sentenced to 18 months in prison and three years of supervised release. The court ordered that he pay $247,736 restitution to the U.S. Department of Agriculture ("USDA").

IBRAHIM MURSHED was sentenced to five years of probation. The court ordered that he pay $26,134 restitution to USDA.

As part of their December 3, 2014, guilty pleas, MORSHED and MURSHED admitted that, while working at D&D Deli & Grocery, in Hudson, New York, they conspired to exchange SNAP beneficiaries’ food stamps for cash.

SNAP, formerly known as the Food Stamp Program, uses tax dollars to subsidize food purchases by eligible low-income households. SNAP benefits may only be used to purchase food in approved retail food stores, and may not be exchanged for cash.

A jury convicted coconspirators MOFADDAL M. MURSHED and AHMED A. ALGAHAIM of conspiracy to commit SNAP fraud and SNAP fraud on December 16, 2014. They are scheduled to be sentenced on June 8, 2015, in Albany.

The case was investigated by the Columbia County Sheriff’s Office, the U.S. Department of Agriculture, Office of Inspector General, the U.S. Secret Service, and the Department of Homeland Security, and is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.

PLATTSBURGH, NEW YORK – Frank Daniels, 37, of Gouverneur, New York, was sentenced yesterday in federal court in Utica to 5 years in prison followed by 15 years of supervised release for distribution, receipt, and possession of child pornography announced United States Attorney Richard S. Hartunian and Homeland Security Investigations (HSI) Resident Agent in Charge Russell Linstad.

"The sharing and distribution of child pornography images is not a victimless crime," stated United States Attorney Richard S. Hartunian. "The children in such photos are abused, violated and humiliated. Our office will continue to vigorously prosecute those who perpetuate their trauma by gathering and sharing such images."

"Sexually exploiting children is a horrendous crime that has long-term traumatic effects on the most vulnerable individuals in our society," said Resident Agent in Charge Linstad. "HSI will continue to work aggressively with our law enforcement partners to identify and apprehend predators who exploit our children and steal their innocence."

On December 3, 2014, Daniels pled guilty to distribution, receipt, and possession of child pornography. As part of the investigation, law enforcement officials seized Daniels’ computers and found 234 videos depicting children engaged in sexually explicit conduct which he downloaded from the Internet.

Homeland Security Investigations Massena, NY investigated the case. Assistant United States Attorney Katherine Kopita prosecuted it.

ALBANY, NEW YORK – Walter Elicer Luna Cayseda, 49, of Bronx, New York, was sentenced Wednesday in United States District Court in Utica for making a false statement and aggravated identity theft, announced United States Attorney Richard S. Hartunian and United States Customs Acting Director of Field Operations Rose Hilmey, Buffalo, New York. United States District Court Judge David N. Hurd sentenced Luna Cayseda to 25 months imprisonment, followed by a three year period of supervised release. Upon completion of his sentence, the United States Department of Homeland Security will process the defendant for removal from the country.

These charges stemmed from the defendant’s conduct at the Champlain Port of Entry on August 26, 2014. At that time the defendant provided authorities with a false name telling them he was a United States citizen born in Puerto Rico. He made these statements during an immigration inspection at the Port of Entry. The defendant also used a New York State driver’s license that contained his picture but listed a false name. The defendant is actually a citizen of Columbia. He was previously removed from the United States to Columbia in 1997.

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

PLATTSBURGH, NEW YORK – Christie Joseph, 24, and Naromie Joseph, 28, were arrested on April 3, 2015 after a federal grand jury indicted them for conspiracy to commit mail fraud and four counts of mail fraud, announced United States Attorney Richard S. Hartunian and Homeland Security Investigations Acting Special Agent in Charge Michael Kennedy. The defendants appeared in federal court in Plattsburgh on April 6, 2015 and were detained pending a detention hearing set for April 9, 2015 at 8:30 am. If convicted, each defendant faces a maximum sentence that includes 20 years imprisonment and a $250,000 fine.

According to the indictment, the Josephs picked up money which elderly people had sent believing that they were sending money to benefit their grandchildren who were in trouble. As alleged in the indictment, the elderly victims had been contacted by people who told them that their grandchildren needed money for bail and other purposes; once the money arrived at various addresses in Plattsburgh, the Josephs picked it up and delivered it to others.

"As alleged, these two defendants preyed upon the love of relatives and manufactured an emergency situation to get money," explained United States Attorney Richard S. Hartunian. "Citizens should confirm the existence of a family emergency before taking financial steps to assist a loved one."

"These types of scams, while nothing new, are becoming increasingly pervasive and sophisticated," said Acting Special Agent in Charge Kennedy. "And more often than not, these unscrupulous scammers are targeting the elderly, which is why HSI is urging the public to act as their first line of defense by taking some very basic precautions." Prevention tips are listed below.

The United States Attorney’s Office and Homeland Security Investigations would like to remind the public of the following:

• Be suspicious of anyone who calls unexpectedly asking for cash.
• Verify any supposed emergency, by calling friends and family, before sending money.
• Develop a secret code or "password" with family members that can be used to verify a true emergency.
• Resist the pressure to act quickly.
• Try to contact another family member to determine whether or not the call is legitimate.
• Never wire money based on a request made over the phone or in an e-mail...especially overseas. Wiring money is like giving cash-once you send it, you can’t get it back.

Contact Homeland Security Investigations at 1-866-DHS-2ICE or submit at ice.gov/tips or contact local authorities or state consumer protection agency if you think you’ve been victimized.

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

Assistant United States Attorney Katherine Kopita is prosecuting the case. The Plattsburgh Police Department originated the investigation and partnered with Homeland Security Investigations throughout. The United States Postal Service, Clinton County Sheriff's Office, the Canada Border Services Agency and the Royal Canadian Mounted Police Project COLT also participated.

ALBANY, NEW YORK – James J. McGonigle, age 42, of Troy, was sentenced today in Albany before United States District Judge Mae A. D’Agostino on distribution and possession of child pornography, announced United States Attorney Richard S. Hartunian and Homeland Security Investigations Assistant Special Agent in Charge Nicholas DiNicola. McGonigle was sentenced to 120 months on Distribution of Child Pornography and 120 months on Possession of Child Pornography, to run concurrently, for a total sentence of 10 years. The sentence included 15 years of supervised release upon release from prison and a $200 special assessment fee.

As part of his guilty plea, McGonigle admitted that he distributed videos of child pornography by e-mail. On March 5, 2014, investigators executed a federal search warrant at McGonigle’s residence in Troy, New York, and recovered 364 still images and 50 videos depicting child pornography from his smartphone.

"Child pornography consists of photographic images of minors, even infants, being sexually harmed, humiliated and scarred for life. Sentences for defendants who view and share such images must serve as both a deterrent and a warning that such behavior is wrong and will not be tolerated," said United States Attorney Richard S. Hartunian.

The case was investigated by the Department of Homeland Security, Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.

SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced the sentencing today of a Marina, California man on federal child exploitation charges.

DENNIS WHITT, age 41, was sentenced today by Hon. Glenn T. Suddaby to a total of 60 years in federal prison for enticing four minor children, ages 7 to 16, to engage in sexually explicit conduct with themselves and with one another, for the purpose of transmitting live depictions of the abuse to Whitt over the Internet. In November, 2014 WHITT pled guilty to seven counts of sexually exploiting these children.

Investigation by the New York State Police and the Federal Bureau of Investigation revealed that the four Jefferson County children were communicating with someone over the Internet who portrayed himself to be a 16 year old boy from California named "Lucas." "Lucas," never showed his face to the children, and would type directions to them as to what sexual conduct he wanted them to display for him, live, over the Internet.

As the result of the investigation the FBI executed a search warrant at WHITT’s California home in April of 2014, and WHITT was confirmed to be "Lucas." A review of WHITT’s computers revealed video and image files WHITT had recorded of the Jefferson County victims, as well as similarly explicit video and image files of other children. WHITT had catalogued over 10,000 video and image files depicting these children. To date, the FBI has identified a total of 35 children WHITT engaged with over the Internet, and whose sexually explicit images WHITT catalogued on his computers.

In addition to the 60 year sentence, WHITT was sentenced to a term of supervised release for life, and will be required to register as a sex offender.

WHITT’s arrest is the result of an investigation by the New York State Police and the Federal Bureau of Investigation, supported by the Northeast Cyber Forensics Center at Utica College, and the Jefferson County District Attorney’s Office. WHITT was prosecuted by Assistant U.S. Attorney Lisa Fletcher, as a part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.

SYRACUSE, NEW YORK – On April 2, 2015, ANTHONY B. FELDER (44) of Redwood, New York, was sentenced to 2 years of Probation and a $5,000 fine by the Honorable David E. Peebles, announced United States Attorney Richard S. Hartunian and Marion F. Robey, Director, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command (Army CID), Quantico, Virginia. Judge Peebles also ordered Felder to pay $35,500 in restitution to the United States Army Corps of Engineers.

Felder pled guilty in November 2014 to knowingly making a false statement regarding outside positions he held while employed by the Army Corps of Engineers at Fort Drum in Jefferson County, New York. Felder subsequently resigned his position as a project manager with the Army Corps of Engineers.

In January 2009, Felder incorporated a proprietary engineering company named East Coast Mitigation, which soon thereafter began performing environmental subcontract work at Fort Drum. The following month, Felder, who was legally barred from doing outside work on any contracts at Form Drum while employed by the Army Corps of Engineers, submitted a certification form in which he was required to report "[a]ll positions [held] outside the U.S. Government." When he submitted the form, Felder reported various outside positions which did not conflict with his employment at Fort Drum, but he did not disclose his ownership interest in East Coast Mitigation. As a result, Felder earned a personal profit of $35,500 from the subcontract work performed by East Coast Mitigation before his false statement was discovered.

This case was investigated by the Major Procurement Fraud Unit, Army CID, the Defense Criminal Investigative Service, Office of Inspector General, and the Federal Bureau of Investigation, and it was prosecuted by Assistant United States Attorney Michael F. Perry. Please direct press inquiries to Executive Assistant U.S. Attorney John Duncan at 315-448-0672.

SYRACUSE, NEW YORK – Two men who previously pled guilty to federal charges of Conspiracy to Commit Food Stamp Fraud were sentenced to terms of incarceration in U. S. District Court in Syracuse. Ebrima KRUBALLY, 46, of Syracuse, NY, was sentenced to 48 months incarceration and Alieu JAITEH, 32, also of Syracuse, was sentenced to 18 months incarceration according to U.S. Attorney Richard S. Hartunian and Brian Devine, Resident Agent in Charge, Homeland Security Investigations, Syracuse Office. U.S. District Judge Glenn T. Suddaby also ordered both to pay restitution of $1,709,304.81 in connection with the fraud scheme. JIATEH is also facing possible deportation as a result of this conviction as well as for other immigration violations.

KRUBALLY, a naturalized U.S. citizen from The Gambia, had been employed by the New York Department of Transportation as an engineer. KRUBALLY also owned and operated MAMA’s Imports, a food store formerly located at 529 N. State Street, Syracuse, NY. JAITEH, a foreign national, also from The Gambia, is a former employee of MAMA’s Imports. Between 2009 and 2012, the defendants conspired to commit more than $1.7 million fraud scheme by exchanging SNAP (Food Stamp) benefit coupons (including electronic benefits cards) for a discounted amount of cash or non-food items (i.e., clothing, cellular phones, DVD’s).

The Food Stamp Program is now referred to as the Supplemental Nutrition Assistance Program (SNAP). SNAP uses tax dollars to subsidize food purchases by eligible low-income or no-income households. SNAP benefits may only be used to purchase food in approved retail food stores, and may not be exchanged for cash or non-food items.

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

The case was prosecuted by Assistant U. S. Attorney Geoff Brown. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at 315-448-0672.

ALBANY, NEW YORK – Robert V. McLaughlin, age 58, of Mechanicville, New York, was sentenced today by the Honorable Mae A. D’Agostino to 720 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 McLaughlin’s guilty plea on November 13, 2014 to two counts of production of child pornography.

The evidence supporting this conviction included McLaughlin’s admission that between 2012 and 2014, he engaged in sexually explicit conduct with two young girls for the purpose of producing visual depictions of that abuse, and that he produced such depictions. In discussing the seriousness of the offenses, which involved the deliberate grooming of two innocent children, Judge D’Agostino noted that to describe McLaughlin’s actions as "disturbing" would be an understatement. The Judge went on to note that the public must be protected from McLaughlin’s predatory behavior.

This prosecution resulted from an investigation conducted by the Federal Bureau of Investigation and the New York State Police. It was prosecuted by Assistant United States Attorney Lisa M. Fletcher and Special Assistant United States Attorney Amanda W. Cox.

SYRACUSE, NEW YORK – JOSEPH JENKINS, age 45 of Geneva, New York, was found guilty of perjury on April 1, 2015 following a jury trial in federal court in Syracuse, announced United States Attorney Richard S. Hartunian.

The perjury charges arose from JENKINS’s request for appointment of counsel to represent him in connection with prior federal charges filed in 2011 relating to possession and transportation of child pornography. In his application for appointment of counsel, JENKINS made sworn statements to the court about his financial condition. Based on those statements, the court found JENKINS eligible for appointment of free counsel. But JENKINS did not disclose in his sworn statements that he in fact owned investment accounts worth more than $200,000. JENKINS also failed to disclose his ownership of various boats and recreational vehicles.

United States District Judge Elizabeth A. Wolford scheduled sentencing for August 3, 2015. JENKINS faces a maximum term of imprisonment of five years and a fine of up to $250,000.

JENKINS was previously convicted on February 6, 2014, following a jury trial, of possession and transportation of child pornography. He was sentenced on November 18, 2014, to a term of imprisonment of 225 months and a fine of $40,000, and he was ordered to pay restitution to the victims of his crimes.

The case was investigated by the Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorneys Tamara B. Thomson and Nicolas Commandeur.

ALBANY, NEW YORK – On Friday, March 27, 2015, a federal jury in Albany convicted Shakir Michael, age 37, of Albany, New York, of being a felon in possession of a firearm, announced United States Attorney Richard S. Hartunian and Special Agent in Charge Delano A. Reid of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, New York Field Division. Michael faces a maximum sentence of imprisonment of ten years and a maximum fine of $250,000 for possessing a loaded Mossberg 12 gauge shotgun. Michael, having previously been convicted on two prior occasions of felony offenses under New York State law, was prohibited from carrying any firearms under federal law. Michael, who was convicted after a four day trial, will remain in custody until his sentencing scheduled for August 4, 2015 by United States District Judge Mae A. D’Agostino. The jury acquitted Michael of a separate charge of possessing a firearm in furtherance of a drug trafficking crime.

This prosecution resulted from an investigation conducted by the Albany Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Robert A. Sharpe.

SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced the arrest today of a West Leyden, New York man on federal child pornography charges.

A criminal complaint filed in United States District Court charges BRIAN MINGO, age 38, with knowingly distributing child pornography through an Internet file sharing program. The complaint alleges that in February of 2015 an undercover agent with Homeland Security Investigations (HSI) downloaded 104 files of child pornography that were being shared by MINGO through an Internet account.

MINGO made his initial appearance this afternoon before Hon. David E. Peebles, United States Magistrate Judge, and was detained pending a hearing set for Wednesday, April 1, 2015 at 1:00 p.m. He faces a mandatory minimum penalty of 5 years imprisonment, with maximum penalty of 20 years. He also faces a potential fine of up to $250,000, a required term of supervised release of at least 5 years, and up to life, and mandatory registration as a sex offender.

"One image depicting the sexual exploitation of a child is too many. HSI, along with our law enforcement partners and the U.S. Attorney’s Office, will continue to use our unique and robust investigative authorities to identify, apprehend, and prosecute individuals who commit these kinds of crimes." said Brian Devine, resident agent in charge of Homeland Security Investigations in Syracuse.

MINGO’s arrest is the result of an investigation by Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorney Lisa Fletcher, as a part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.

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

ALBANY, NEW YORK – Eleven defendants were arrested today on federal felony charges arising out of the sale of cocaine base (crack) and firearms in and around Schenectady, New York, announced United States Attorney Richard S. Hartunian, Federal Bureau of Investigation Special Agent in Charge Andrew W. Vale, and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Delano A. Reid. The charges are set forth in nine indictments that were unsealed this afternoon in federal court in Albany. The defendants were arrested this morning, arraigned before United States Magistrate Judge Christian F. Hummel, and detained pending detention hearings which are scheduled for Monday and Tuesday of next week.

These charges are the result of a joint investigation conducted by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Schenectady District Attorney’s Office, the Schenectady Police Department, the New York State Department of Corrections, the New York National Guard Counter-Drug Task Force, the Albany County Sheriff’s Office, and the Office of the United States Attorney for the Northern District of New York.

United States Attorney Hartunian said, "I want to commend our local, state and federal law enforcement partners for their tireless efforts in bringing about these arrests today. 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."

Special Agent in Charge Vale stated, "Today’s arrests are clear evidence of the success of law enforcement partnerships. Schenectady neighborhoods, as well as the Greater Capital Region, are safer now than they were just hours ago. This investigation reflects our collective dedication to deterring illegal drug and firearm activity, and we will continue to actively identify individuals throughout the area who are involved in such criminal acts."

Special Agent in Charge Reid said, "I am extremely gratified with today’s arrests. The public – including the criminal element – must really appreciate how effective law enforcement can be once it focuses its resources on those violating the law. While each of our partners brings their own specialized expertise to the table in cases such as this, it is only through an open and collaborative effort that we can achieve these impressive results."

The cases are being prosecuted by Assistant United States Attorneys Sean O’Dowd and Kofi Sansculotte and Special Assistant United States Attorney Jennifer M. Assini from the Schenectady County District Attorney’s Office.

Defendants Charged

NAME

AGE

RESIDENCE

CHARGES

POTENTIAL TERMS OF IMPRISONMENT

Kareem Thompson,

a/k/a Gorilla

32

Schenectady

Conspiracy to possess with intent to distribute crack

Possession with intent to distribute crack (2 counts)

Maximum: Life

Mandatory minimum: 10 years

Assan Allah,

a/k/a Jamel Campbell, a/k/a Just

 

47

 

Schenectady

 

Conspiracy to possess with intent to distribute crack

Possession with intent to distribute crack (2 counts)

Maximum: Life

Mandatory minimum: 10 years

 

Darrel Irving-Anderson
, a/k/a Lil’D

23

 

Schenectady

 

Possession with intent to distribute crack (2 counts)

Maximum: 40 years

Mandatory minimum: 5 years

Leryco Hayes,

a/k/a Big Bro

44

 

Schenectady

 

Possession with intent to distribute crack (2 counts)

Maximum: 40 years

Mandatory minimum: 5 years

Kathlynne Marable,

a/k/a Kat

28

Albany

Conspiracy to possess with intent to distribute crack

Maximum: 20 years

Charles McCormick, Jr.,

a/k/a C

21

 

Schenectady

 

Conspiracy to possess with intent to distribute crack

Maximum: 20 years

 

Barrington Mordaunt,

a/k/a Bigz

51

 

Schenectady

 

Possession with intent to distribute crack (3 counts)

Maximum: Life

Mandatory minimum: 10 years

Autumn Saglimbeni

29

Schenectady

Conspiracy to possess with intent to distribute crack

Maximum: 20 years

 

Richel Skokan,

a/k/a Shel, a/k/a Sheryl

38

 

Schenectady

 

Conspiracy to possess with intent to distribute crack

Maximum: 20 years

 

Sharma Sukdeo,

a/k/a Andrew

20

 

Valley Stream, L.I.

Dealing firearms without a license

Maximum: 5 years

Jayquan Tomer,

a/k/a Killer

23

 

Schenectady

 

Conspiracy to possess with intent to distribute crack

Possession with intent to distribute crack (3 counts)

Maximum: Life

Mandatory minimum: 10 years

The charges are merely accusations and the defendants are presumed innocent unless and until proven guilty in a court of law.

 

ALBANY, NEW YORK – Howard Hazelton, age 63, of Rensselaer County, New York, pled guilty today in Albany before United States District Judge Thomas J. McAvoy to two counts of distribution of child pornography, one count of receipt of child pornography and five counts of possession of child pornography, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.

Hazelton faces at least 5 years and up to 20 years of imprisonment, as well as a term of supervised release of at least 5 years and up to life. He also faces a maximum fine of $250,000 and mandatory registration as a sex offender. Hazelton will be sentenced in Albany, New York on August 11, 2015.

As part of his guilty plea, Hazelton admitted that in August and September 2013, he knowingly distributed child pornography, and that in November 2013, he knowingly received child pornography and possessed child pornography involving prepubescent minors and minors who had not attained 12 years of age.

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

ALBANY, NEW YORK – United States Attorney Richard S. Hartunian, along with heads of the FBI, DEA, ICE/HSI, U.S. Marshals Service, U.S. Secret Service, U.S. Postal Inspection Service and Troy Police Department, will meet with TRIP – Troy Rehabilitation & Improvement Program – and TNAC – Troy Neighborhood Action Council – members to discuss how the federal and local law enforcement agencies work to keep them safe and address their crime concerns. The meeting is titled "Your Federal Tool Box". The meeting details are:

Monday, March 23rd
6 – 7:30 PM
Blitman Commons Residence Hall
1800 6th Ave.
Troy, NY

ALBANY, NEW YORK – United States Attorney Richard S. Hartunian was joined today by seventeen other federal, state and local law enforcement agencies to announce the initiation of the LEADership – Legal Education And Decision-making – Project in the enlarged City School District of Troy.

"The LEADership Project is a crime prevention program designed to reach the youngest members of our communities – all 5

th grade students in the Enlarged City of Troy School District – and to teach them Legal Education And Decision-making skills, skills which will help them to avoid gangs, drugs and violence and lead productive, law abiding lives.," said U.S. Attorney Hartunian. "With the LEADership Project we hope to accomplish two goals: first, to increase the awareness of our youth, specifically Troy’s 5th graders, about the dangers that gangs present to them and their communities, by discussing the myths of gang life, and letting them hear from a former gang member that gang life really amounts to ‘no life’. The second thing we hope to accomplish, in furtherance of Attorney General Eric Holder’s Smart on Crime initiative, is to build greater trust between Troy’s community members and the law enforcement officials who put their lives on the line every day to preserve public safety."

Joining the U.S. Attorney in today’s announcement were the heads of the following agencies, all participating in the project:

• United States Attorney’s Office

• Bureau of Alcohol, Tobacco, Firearms and Explosives

• Federal Bureau of Investigation

• Internal Revenue Service-Criminal Investigations

• Transportation Security Administration

• United States Coastal Guard- Sector New York

• United States Immigration and Customs Enforcement- Homeland Security Investigations

• United States Marshals Service

• United States Postal Inspection Service

• United Sates Postal Service Office of the Inspector General

• United States Probation and Pretrial Services

• New York State Department of Corrections and Community Supervision

PLATTSBURGH, NEW YORK – On March 11, 2015, a federal grand jury indicted Roy S. Redeye, age 38, with threatening to kill three Saint Regis Mohawk Police Officers, announced United States Attorney Richard S. Hartunian, Homeland Security Investigations Special Agent in Charge James Spero, and Saint Regis Mohawk Police Chief Matthew Rourke. According to the two-count indictment, on February 6, 2015, Redeye threatened to kill the police officers in posts on his Facebook page.

Redeye was arrested in Cortland, New York, on February 10, 2015, where he was living at that time. On February 26, 2015, he had his initial appearance before United States Magistrate Judge Gary L. Favro

; the defendant has been detained since then. The trial date will be set in the coming days.

If convicted of these charges, the maximum penalties the defendant faces include: a term of imprisonment of 5 years; a fine of $250,000; a term of three years of supervised release; and payment of restitution to the victims.

The case is being investigated by agents of Homeland Security Investigations based in Massena, New York. Assistant United States Attorney Elizabeth Horsman is prosecuting the case.

The charges are merely accusations and the defendant is presumed innocent unless and until proven guilty in a court of law.

 

ALBANY, NEW YORK – Michael Elcox, 43, of Ghent, New York, entered a plea of guilty today to conspiracy to launder money before United States District Judge Thomas J. McAvoy, announced United States Attorney Richard S. Hartunian and James J. Hunt, Special Agent in Charge of the Drug Enforcement Administration (DEA), New York Division.

Elcox admitted that he was involved in the illegal distribution of marijuana and conspired to launder the proceeds of that illegal marijuana distribution by routing money through bank accounts held by a co-conspirator 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.

Sentencing is scheduled for July 13, 2015 in Albany. Elcox faces a maximum sentence of up to twenty years in prison, a fine of up to $500,000, and three years of supervised release following his release from prison.

The case was investigated by Special Agents of the DEA Albany District Office, New York Division, DEA Gainesville Resident Office, Miami Field Division 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 is being prosecuted by Assistant United States Attorney Wayne A. Myers.

SYRACUSE, NEW YORK – On March 9, 2015, MICHAEL OLIVER (34) of Waterville, New York, was sentenced in United States District Court following his earlier plea of guilty to two counts of obstructing the United States mail, in violation of 18 U.S.C. § 1701.

United States Magistrate Judge David E. Peebles sentenced OLIVER to one year of Probation and 25 hours of community service. Additionally, the judge imposed a $250 fine and ordered OLIVER to pay $1,155.95 in restitution to the known victims.

These charges stemmed from an investigation by the U.S. Postal Inspection Service and the Office of Inspector General of the U.S. Postal Service. The investigation revealed that OLIVER obstructed the passage of the mail by opening envelopes addressed to others and stealing the contents of that mail, all while employed as a highway contract driver for the Postal Service in Oneida and Chenango counties. Between May and September 2014, OLIVER stole greeting cards, cash, and gift cards, among other things, from at least 160 different pieces of mail. In advance of sentencing, thirty-one victims submitted victim-impact statements for the court to consider in imposing OLIVER’s sentence.

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.

 

SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced that WILLIAM P. MC COY, 66, of New Hartford, New York was sentenced today in United States District Court following his earlier plea of guilty to a four-count Information charging him with receipt and possession of child pornography.

United States District Judge Glenn T. Suddaby sentenced MC COY to concurrent terms of 160 months imprisonment on each of the four counts. Following his term of imprisonment, MC COY will be placed on supervised release for 20 years, and will be required to register as a sex offender.

MC COY’s arrest came about as a result of an investigation by the United States Department of Homeland Security, Homeland Security Investigations, with assistance from the New York State Police and United States Postal Inspection Service. Agents discovered that MC COY had been using the Internet to obtain and share child pornography. They recovered nearly 1,200 images and 4 video files depicting the abuse of children from MC COY’s computers and other electronic devices. They also recovered evidence that MC COY created child pornography by morphing innocent images of children by adding objects to the images to make them sexually explicit. Additionally, agents also discovered that MC COY created his own videos of actual children by surreptitiously videotaping, on separate occasions, two minor children, capturing depictions of the children as they undressed.

MC COY was prosecuted by Assistant United States Attorney Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York. 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

SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced today the conviction of a Utica woman on charges of health care fraud.

BONNIE MEISLIN, age 45, of Utica, was found guilty on February 25, 2015 following a jury trial in federal court in Utica. MEISLIN was employed at Upstate Pain Medicine, which had medical offices at 59 South First Street, Fulton, New York and 287 Genesee Street, Utica, New York. Upstate Pain Medicine was owned by Mahesh Kuthuru, M.D. Following a six day trial, 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. In 2009, Kuthuru had moved to Las Vegas where he opened a medical practice known as Desert Pain Management. Kuthuru began to spend the majority of his time in Las Vegas and returning to his Utica and Fulton offices only intermittently. 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 a patient in the New York offices, when in fact Kuthuru was either in Nevada or outside the country and had not seen the patient nor supervised a medical professional who had done so.

United States District Court Judge David N. Hurd scheduled sentencing for July 1, 2015. MEISLIN faces a maximum term of imprisonment of ten years and a fine of $250,000 on each of the health care fraud counts. The maximum prison term for the conspiracy count is five years and a fine of $250,000.

Kuthuru had earlier pled guilty to health care fraud and illegal distribution of prescriptions on January 22, 2015. He is scheduled to be sentenced on May 22, 2015 at 12:00 pm in Utica.

The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, 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.

ALBANY, NEW YORK – RICHARD HASTINGS, 19, of Mayfield, NY entered a plea of guilty in Albany today to production and possession of child pornography before Chief United States District Judge Gary L. Sharpe, announced United States Attorney Richard S. Hartunian, Nicolas DiNicola, Assistant Special Agent in Charge, Homeland Security Investigations, and Captain Timothy Munro, New York State Police Troop G, Bureau of Criminal Investigation. Sentencing is set for June 3, 2015 at 10 AM.

In July 2013, RICHARD HASTINGS produced sexually explicit photographs of a minor victim and e-mailed some of these photographs to an undercover law enforcement officer in an effort to trade them for additional images of child pornography. On August 8, 2013, law enforcement officers executed a federal search warrant at the defendant’s Mayfield residence and seized his computer which contained the images of the minor victim and additional images of child pornography. As a result, he was placed under arrest. His brother, ROBERT HASTINGS, was also charged with federal child pornography offenses and is currently awaiting trial.

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

RICHARD HASTINGS faces a statutory minimum of fifteen years of imprisonment, a maximum sentence of thirty years of imprisonment, and a maximum fine of $250,000. He will remain in custody until sentencing.

This case was investigated by Homeland Security Investigations and the New York State Police. The case is being prosecuted by Assistant United States Attorney Sean O’Dowd, as part of Project Safe Childhood.

Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice, and 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

 

Robbery of Summit Federal Credit Union in Syracuse Took Place in Broad Daylight

SYRACUSE, NEW YORK

RONALD REID (52) of Rochester, New York, was indicted by a Northern District of New York Grand Jury on one count of bank robbery, announces United States Attorney Richard S. Hartunian.

According to the Indictment, the defendant robbed the Summit Federal Credit Union on Erie Boulevard East in Syracuse on January 26, 2015, by demanding money from a teller. The crime allegedly occurred just before 1:00 pm. If convicted of bank robbery, Reid faces up to twenty years in prison.

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 Federal Bureau of Investigation and the Syracuse Police Department. The case is being prosecuted by Assistant United States Attorney Michael F. Perry. Please direct press inquiries to Executive Assistant U.S. Attorney John Duncan at 315-448-0672.

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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 Elaine Monique Zavala-Charres, 34, of Phoenix Arizona pled guilty today in federal court in Utica, New York to mail fraud and aggravated identity theft in a case involving false federal income tax returns that resulted in the theft of over $260,000.00 from the IRS. Zavala-Charres admitted that in 2011 and 2012 she operated a scheme with her codefendant, Lacey Hollinger, a Massena, New York native, wherein Massena area residents were contacted 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 Elaine Monique Zavala-Charres in Phoenix, Arizona, who used it to create false and fraudulent tax returns that generated over $260,000.00 in tax refunds. Zavala-Charres and Hollinger stole these funds after they were electronically deposited in bank accounts they controlled 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 did get pre-paid debit cards that Hollinger and Zavala-Charres caused them to receive in the mail. Many got nothing, with Elaine Monique Zavalla-Charres and Lacey Hollinger keeping most of the refund money.

Lacey Hollinger, 27, pled guilty to these same charges and will be sentenced on March 5, 2015.

"Identify theft and false income tax filings are two crimes that are increasingly affecting the public," stated United States Attorney Richard S. Hartunian. "The most important thing for citizens to remember is to never give their personal identifying information out to people they don’t know or who shouldn’t need that information."

At sentencing on June 10, 2015 in Utica, Elaine Monique Zavala-Charres faces a maximum sentence of up to twenty (20) years for her conviction for mail fraud and a fine of up to $250,000.00 as well as restitution. She faces an additional mandatory sentence of two (2) years imprisonment for her plea of guilty to aggravated identity theft, to be served consecutively to her mail fraud sentence. She faces up to three (3) years of supervised release following her release from prison.

 

PLATTSBURGH, NEW YORK – Robert Girard, 56, of Massena, New York, was sentenced to 84 months in prison for receipt of child pornography yesterday in United States District Court in Utica, New York, announced United States Attorney Richard S. Hartunian and Homeland Security Investigations Assistant Special Agent in Charge Nicholas DiNicola.

"The receipt and viewing of child pornography is an atrocious crime. As people continue to share child pornography, the children in the images continue to be victimized," said United States Attorney Richard S. Hartunian. "Through collaborative law enforcement efforts, our offices continue to investigate and prosecute these cases to the fullest extent of the law."

"Homeland Security Investigations aggressively targets child predators as child exploitation cases are among the agency’s highest priority," stated Nicholas DiNicola, Assistant Special Agent in Charge of Homeland Security Investigations Buffalo. "Working as a team with the U.S. Attorney’s Office and our partners in law enforcement, Homeland Security Investigations will continue to target individuals seeking to harm children."

Girard pled guilty on October 16, 2014 to one count of receipt of child pornography. As part of his plea, Girard admitted that he used peer-to-peer software to download and share child pornography over the internet. Girard’s sentence also includes a term of supervised release, registration as a sex offender, payment of a $100 special assessment, and forfeiture of any equipment or materials involved in the offense.

This prosecution resulted from an investigation conducted by the Department of Homeland Security, Homeland Security Investigations Massena. Assistant United States Attorney Katherine Kopita prosecuted the case as part of Project Safe Childhood. 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 – ALLEN PETERS, 43, of Malone, was sentenced yesterday to fourteen years in federal prison by United States District Court Judge Glenn T. Suddaby for his conviction of conspiracy to distribute more than 1,000 kilograms of marijuana, announced United States Attorney Richard S. Hartunian and James J. Hunt, Acting Special Agent in Charge of the Drug Enforcement Administration, New York Division (DEA). Additionally, the judge imposed six years of supervised release upon release from incarceration. Peters had faced a minimum of 10 years of incarceration for his conviction.

In January 2014, a jury convicted PETERS of conspiracy to possess with the intent to distribute more than 1,000 kilograms of marijuana. At trial, the government offered evidence that from at least 2005 to 2011, PETERS, and many others, smuggled thousands of pounds of marijuana into the United States and sent millions of dollars in drug proceeds back to Canada. They used property controlled by PETERS in Snye, Quebec, Canada on the Akwesasne Mohawk Indian Reservation as a staging area for the hockey bags of marijuana smuggled into the United States. The bags, which normally contained 100 to 200 pounds of marijuana, were then transported into the United States and distributed to cities across the Northeast.

"I would like to commend the various agencies from federal, tribal and local law enforcement agencies for their efforts in bringing this case to successful conclusion," said United States Attorney Richard S. Hartunian.

"The arrest, conviction and sentencing of Allan Peters exemplifies law enforcement’s commitment to enforcing the Controlled Substance Act," stated DEA Special Agent in Charge James J. Hunt. "I would like to commend the United States Attorney’s Office, Northern District of New York for their diligent work throughout this investigation, as well our law enforcement partners’ essential collaboration which led to today’s sentencing."

The investigation and prosecution of PETERS was the result of a joint investigation by the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the United States Border Patrol (USBP), Air and Marine Operations (AMO), the New York State Police, the St. Regis Mohawk Tribal Police Department (SRMTPD), the Akwesasne Mohawk Police Services (AMPS), and the District Attorneys of Franklin and Clinton Counties.

The case was prosecuted by Assista

 

SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced that RONALD J. RICHARDS, 59, of Syracuse, New York was sentenced today in United States District Court following his earlier plea of guilty to a six-count Information charging him with receipt, distribution, and possession of child pornography.

United States District Judge David N. Hurd sentenced RICHARDS to a total of 30 years imprisonment, to be followed by 20 years of supervised release. The sentence consists of concurrent 20 year terms on two counts of distribution of child pornography to run consecutively to concurrent 10 year terms on four counts of receiving and possessing child pornography. RICHARDS will also be required to register as a sex offender.

RICHARDS’ arrest came about as a result of an investigation by the United States Department of Homeland Security, Homeland Security Investigations. Agents discovered that RICHARDS had been using his email account to trade child pornography over the Internet with other individuals, including two men, one in Indiana and one in Utah, who had disclosed to RICHARDS that they produced the images they sent to him. Agents later discovered that RICHARDS had also engaged in sexually explicit chats with two minor female children, one 15, and one 13 years old, solicited illicit images from them, and later distributed the images to others. In all, agents recovered from RICHARDS’ computers and thumb drives more than 3,700 images and 48 video files depicting the abuse of children, some as young as one and three years old.

RICHARDS was prosecuted by Assistant United States Attorney Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York. Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.

ALBANY, NEW YORK – RAYMOND T. DRAKE, age 53, of Albany, New York, was sentenced today to 327 months in prison for two counts of distribution of child pornography, one count of receiving child pornography, and three counts of possession of child pornography by Chief United States District Judge Gary L. Sharpe, announced United States Attorney Richard S. Hartunian and Homeland Security Investigations Assistant Special Agent in Charge Nicholas DiNicola. Drake must also serve a lifetime term of supervised release and register as a sex offender.

As part of his March 5, 2014 plea, DRAKE admitted that he distributed images of child pornography by e-mail and through a file sharing program. On January 25, 2013, investigators searched DRAKE’s residence and recovered more than 600 of photographs and several videos depicting child pornography.

"Child pornography is the most despicable victimization of our most vulnerable," said United States Attorney Richard S. Hartunian. "People who engage in viewing it and helping distribute it will be punished. My office will work with our federal and local partners to discover and prosecute defendants who engage in this crime."

This case was investigated by the Department of Homeland Security, Homeland Security Investigations, and was prosecuted by Assistant United States Attorney Jeffrey C. Coffman as part of Project Safe Childhood. 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

Attempted to trade images of minor victim with undercover officer

ALBANY, NEW YORK – RICHARD HASTINGS, 19, of Mayfield, NY entered a plea of guilty in Albany today to production and possession of child pornography before Chief United States District Judge Gary L. Sharpe, announced United States Attorney Richard S. Hartunian, Nicolas DiNicola, Assistant Special Agent in Charge, Homeland Security Investigations, and Captain Timothy Munro, New York State Police Troop G, Bureau of Criminal Investigation. Sentencing is set for June 3, 2015 at 10 AM.

In July 2013, RICHARD HASTINGS produced sexually explicit photographs of a minor victim and e-mailed some of these photographs to an undercover law enforcement officer in an effort to trade them for additional images of child pornography. On August 8, 2013, law enforcement officers executed a federal search warrant at the defendant’s Mayfield residence and seized his computer which contained the images of the minor victim and additional images of child pornography. As a result, he was placed under arrest. His brother, ROBERT HASTINGS, was also charged with federal child pornography offenses and is currently awaiting trial.

RICHARD HASTINGS faces a statutory minimum of fifteen years of imprisonment, a maximum sentence of thirty years of imprisonment, and a maximum fine of $250,000. He will remain in custody until sentencing.

This case was investigated by Homeland Security Investigations and the New York State Police. The case is being prosecuted by Assistant United States Attorney Sean O’Dowd, as part of Project Safe Childhood.

Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice, and 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

 

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GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick Miles announced today that Francis Block, 45, of Kalamazoo, Michigan was sentenced to life in prison by Chief U.S. District Judge Paul Maloney for various drug and witness tampering charges. Block was convicted following a four-day jury trial that concluded on October 2, 2014.

In 2012 officers of the Kalamazoo Valley Enforcement Team (KVET), with the assistance of Drug Enforcement Administration (DEA) agents, initiated “Operation Roadblock,” an investigation of methamphetamine trafficking by Block and others known to associate with him. In January 2013, KVET officers executed a warrant to search Block’s then-residence in Cooper Township, Michigan, and seized methamphetamine lab components, $29,800 U.S. currency, and multiple firearms. Later in 2013, KVET officers learned that Block likely had connections with crystal methamphetamine suppliers from Mexican drug cartels.

In October 2013, investigators executed a series of multi-ounce controlled purchases of crystal methamphetamine directly from Block. On October 23, 2013, KVET and DEA investigators arrested Block during Block’s attempted sale of four ounces of crystal methamphetamine to the informant. Later that night, the officers executed five search warrants at homes and premises around Kalamazoo, including a storage unit on Stadium Drive where Block and several of his drivers made frequent stops before and after drug deals. At a residence on North Arlington Street, officers located and seized, among other items, more than a pound of crystal methamphetamine, handwritten drug ledgers, and nearly $20,000 U.S. currency. At the Stadium Drive storage unit they located and seized nine more pounds (over four kilograms) of crystal methamphetamine and a pill bottle bearing Block’s name. The Stadium Drive seizure was KVET’s largest-ever crystal methamphetamine seizure. The street value of the methamphetamine seized during the controlled purchases and raids exceeded $350,000.

The investigation continued and between late 2013 and early 2014, five additional confederates of Block’s were charged with federal and state drug felonies. One defendant, Scott Webber of Kalamazoo, Michigan, fled prosecution and remains a fugitive. The grand jury later indicted Block and his sister, Elizabeth McNett, on witness tampering charges, after Block and McNett plotted to hire a convicted murderer who shared a cell with Block to firebomb an informant’s car and intimidate government witnesses.

With the exception of Webber, all of Block’s co-defendants pled guilty to one or more federal charges. Chief Judge Maloney sentenced the following co-defendants as follows:

Jeffrey Starrett, 43, of Kalamazoo, Michigan: 60 months in custody; Michael Head, 39, of Kalamazoo, Michigan: 84 months in custody; Martin McCaul, 52, of Paw Paw, Michigan: 48 months in custody; and
Elizabeth McNett, 44, of Lawton, Michigan: 33 months in custody.

In a related case, U.S. District Judge Janet Neff sentenced Ben Alan Phelps, 29, of Kalamazoo, Michigan, to 36 months in custody.

Block was the only defendant to take his case to trial, which was handled by Assistant U.S. Attorneys Heath M. Lynch and Sean M. Lewis. Following the trial, at which Phelps and all of Block’s convicted co-defendants testified against him, the jury found Block guilty of all charges.

On Monday, February 9th, Chief Judge Maloney sentenced Block to serve life in prison. Judge Maloney stated that the case represented “one of the largest methamphetamine distribution operations in the history of our district, and Mr. Block was the leader of it.” Commenting on Block’s recorded phone calls introduced at trial as evidence of Block’s witness tampering efforts, Judge Maloney noted Block’s “contempt for the system” and described being “flabbergasted” that Block was “so self-centered and egotistical that he brought his own sister into the conspiracy.”

In sentencing Block to life in prison and denying Block’s motion for a shorter sentence, Judge Maloney stated that he “d[id] not find any mitigating factors” and described Block’s criminal history as that of “an individual who is either unwilling or unable to reform himself.” According to Judge Maloney, no criminal sentence Block previously served “managed to convey to Mr. Block that he should stop dealing drugs.”

ALBANY, NEW YORK – HECTOR MORALES, 36, of the Bronx, was sentenced today by the Honorable Gary L. Sharpe to thirty years in federal prison, announced United States Attorney Richard S. Hartunian and Drug Enforcement Administration Special Agent in Charge James J. Hunt. Additionally, the judge imposed a term of twenty years of supervised release upon release from incarceration. MORALES has a prior drug felony conviction and, therefore, was subject to increased penalties.

In November 2011, a jury convicted MORALES of conspiracy to possess with the intent to distribute more than 280 grams of crack cocaine. At the trial, the government offered evidence that between January and September 2010, MORALES conspired with several individuals to sell large quantities of cocaine and crack in Troy and Plattsburgh. Two co-defendants, Nelson Cordero and Anthony Cordero, pled guilty prior to the trial, and were sentenced in 2012.

"The scourge of illegal drugs in our communities is intolerable," said United States Attorney Richard S. Hartunian. "Use of addictive drugs like crack cocaine is devastating. My office will work with our federal, state and local partners to continue our efforts to rid our streets of these substances."

The investigation of this case was the result of a joint investigation between the Drug Enforcement Administration (DEA), the Plattsburgh Police Department, the New York State Troopers and the Rensselaer Country Drug Task Force. The case was prosecuted by Assistant United States Attorneys Daniel C. Gardner and Elizabeth R. Rabe.

Conspired to sell cocaine and crack in the Troy and Plattsburgh areas

ALBANY, NEW YORK – HECTOR MORALES, 36, of the Bronx, was sentenced today by the Honorable Gary L. Sharpe to thirty years in federal prison, announced United States Attorney Richard S. Hartunian and Drug Enforcement Administration Special Agent in Charge James J. Hunt. Additionally, the judge imposed a term of twenty years of supervised release upon release from incarceration. MORALES has a prior drug felony conviction and, therefore, was subject to increased penalties.

In November 2011, a jury convicted MORALES of conspiracy to possess with the intent to distribute more than 280 grams of crack cocaine. At the trial, the government offered evidence that between January and September 2010, MORALES conspired with several individuals to sell large quantities of cocaine and crack in Troy and Plattsburgh. Two co-defendants, Nelson Cordero and Anthony Cordero, pled guilty prior to the trial, and were sentenced in 2012.

"The scourge of illegal drugs in our communities is intolerable," said United States Attorney Richard S. Hartunian. "Use of addictive drugs like crack cocaine is devastating. My office will work with our federal, state and local partners to continue our efforts to rid our streets of these substances."

The investigation of this case was the result of a joint investigation between the Drug Enforcement Administration (DEA), the Plattsburgh Police Department, the New York State Troopers and the Rensselaer Country Drug Task Force. The case was prosecuted by Assistant United States Attorneys Daniel C. Gardner and Elizabeth R. Rabe.

ALBANY, NEW YORK – Ryszard Lachowicz (57, of Windsor, Ontario, Canada) was sentenced Thursday, January 29, 2015, to serve 6 months in prison by Senior United States District Court Judge Lawrence E. Kahn announced United States Attorney Richard S. Hartunian and Patrol Agent in Charge Dennis O’Neill of United States Border Patrol, Burke Station. In November, Lachowicz pled guilty to illegally reentering the United States following removal, a felony under federal law. Following the completion of the term of imprisonment, the Department of Homeland Security will process Lachowicz for removal from the United States.

In October 2014, Lachowicz was arrested by United States Border Patrol Agents after he was detected riding a moped around the Chateaugay Port of Entry thereby avoiding immigration and customs inspection. Lachowicz had been previously removed to Canada twice in 1999 and again in May 2014.

The case was investigated by the United States Border Patrol, Burke, NY, and prosecuted by Assistant United States Attorney Edward P. Grogan.

ALBANY, NEW YORK - On January 30, a grand jury in the Northern District of New York returned an indictment charging CALVIN STEPHON MOORE (49, of Utica) with two counts of bank robbery, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation. If convicted, MOORE faces up to 20 years of imprisonment, three years of supervised release, a $250,000 fine, and special assessments of $200.

According to the indictment, on November 17, 2014, Moore told a KeyBank employee at 1610 Eastern Parkway in Schenectady, New York that he was holding up the bank and took $5,035. The indictment also alleges that on November 18, 2014, Moore gave an Adirondack Bank employee at 185 Genesee Street in Utica, New York a note that said in part “THIS IS A ROBBERY. I HAVE A GUN AND WILL SHOOT IF YOU TRY ANYTHING. PUT ALL THE LOOSE BILLS (EVERY DENOMINATION) IN THE BAG … NO DYE PACK OR TRACERS OR I WILL SHOOT!,” and took $1,647.

The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

Moore was arrested on December 30, 2014 in Cayce, South Carolina, by police officers from the Cayce Police Department, with assistance from the Columbia, South Carolina Police Department and the Columbia Division of the FBI. The U.S. Marshals Service is in the process of transporting Moore back to the Northern District of New York.

This prosecution resulted from an investigation conducted by the Albany Division of the Federal Bureau of Investigation, and the Schenectady and Utica Police Departments. The case is being prosecuted by Assistant United States Attorney Michael Barnett.

ALBANY, NEW YORK – Steven LEVESQUE, 41, was sentenced on Thursday, January 29, 2015 by the Honorable Lawrence E. Kahn to 27 months in federal prison, announced United States Attorney Richard S. Hartunian and James Spero, Special Agent-in-Charge, U.S Immigration and Customs Enforcement, Homeland Security Investigations. The sentence follows LEVESQUE’s July 10, 2003 guilty plea to illegally re-entering the United States. After failing to appear for his February 12, 2004 sentencing proceeding, the Court found LEVESQUE obstructed the administration of justice. LEVESQUE received the maximum sentence under the United States Sentencing Guidelines.

This case was investigated by the United States Department of Homeland Security and prosecuted by Assistant United States Attorney Wayne A. Myers.

SYRACUSE, NEW YORK – Richard S. Hartunian, the United States Attorney for the Northern District of New York announced that Todd L Tyo, 50 of Heuvelton, New York, was sentenced yesterday in United States District Court in Utica to a one year term of probation and a $100 fine in connection with his conviction after a jury trial for two felony violations of making false entries in a U.S. Customs and Border Protection cash register computer at the Alexandria Bay Port of Entry. Tyo, a uniformed U.S. Customs and Border Protection Officer, made the false entries in connection with his receipt of cash from commercial trucks entering the United States from Canada in April and July of 2011.

This case was investigated by the U.S. Department of Homeland Security, Office of Inspector General (Buffalo, New York and Philadelphia, Pa. offices). The case was prosecuted by Assistant U.S. Attorney Richard R. Southwick.

SYRACUSE, NEW YORK - A grand jury in the Northern District of New York returned an indictment charging YARBROUGH LATULAS (30, of Watertown, NY) with three felony offenses: Count One charges him with interference with interstate commerce by robbery; Count Two charges him with using and carrying a firearm during and in relation to a crime of violence; and Count Three charges him with being a felon in possession of a firearm, according to U.S. Attorney RICHARD S. HARTUNIAN. If found guilty, the defendant faces a statutory maximum sentence of life imprisonment, a mandatory minimum of 10 years imprisonment, and a maximum fine of $250,000.00 per count of conviction.

The indictment alleges that on July 31, 2013, the defendant and another male entered the Sunoco located at 1222 Washington Street, Watertown, New York intending to commit a robbery. After entering the Sunoco, YARBROUGH LATULAS stole money and tobacco products from an employee of Sunoco while the other male brandished a short-barreled 12 gauge shotgun. LATULAS is a convicted felon, having been previously convicted in Jefferson County Court on October 16, 2006, for the New York State felony crime of Attempted Forgery in the Second Degree.

The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

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 Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315-448-0672).

          GRAND RAPIDS, MICHIGAN – Riley Patrick Lively, 27, of Las Vegas, Nevada, was convicted Wednesday afternoon of child sexual exploitation after a two-day jury trial in federal court in Grand Rapids. The crime took place in Kalamazoo in 2009. Lively faces a minimum of 15 years and a maximum of 30 years in prison.

In April 2009, while visiting Robert Norwood-Charlier, in Kalamazoo, Michigan, Lively sexually assaulted a nine-year-old boy. Norwood-Charlier openly took pictures of the assault. The FBI discovered the evidence of Riley’s sexual assault in the course of investigating Norwood-Charlier for his own sexual exploitation of children. Norwood-Charlier is currently serving a 300-month federal sentence for producing and distributing child pornography. Lively was arrested in Las Vegas in February 2014 and has been held in custody since his arrest. Despite claims that he was the victim of “mind control” and that the pictures were fakes, the jury found Lively guilty after less than an hour of deliberations.

Lively’s sentencing will be before U.S. District Judge Robert J. Jonker on a date to be scheduled.

The investigation was conducted by the FBI. Assistant U.S. Attorneys Tessa K. Hessmiller and Jeanne F. Long prosecuted the case.

This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.

Renata Nicole Annese stole over $800,000.00 in a credit card fraud scheme

GRAND RAPIDS, MICHIGAN – Renata Nicole Annese, 39, of Jenison, Michigan, pled guilty on June 29 in U.S. District Court for the Western District of Michigan to one count of wire fraud as detailed in an indictment returned on November 12, 2014, U.S. Attorney Patrick Miles announced today. Annese agreed that she will pay restitution of approximately $872,000.00 and that she will forfeit her equity interest in her personal residence in Jenison, Michigan, because she used the fraud to make her mortgage payments.

“Deterring fraudulent conduct through vigorous prosecution of those who take advantage of others remains an important priority of this office. The repeated use of interstate wire transmissions to steal nearly a million dollars and to contribute to this victim’s decision that he had to sell his business makes this case especially appropriate for federal prosecution,” said U.S. Attorney Miles.

From October 2006 until April 2013, Annese used interstate wires to defraud the former owner of the Sleep Inn hotel in Allendale, Michigan, of nearly a million dollars. Annese did so by regularly accessing the Internet so that she could edit data related to the hotel’s credit card sales. Annese then inserted her own personal credit card and bank debit card numbers on the payment side of many of those transactions. This caused the hotel customers’ cards to be charged, but directed the customers’ banks to send the payments to Annese’s credit and debit cards, instead of to the hotel’s bank account. Defendant concealed her fraud by pairing her credit or bank debit card numbers with names and charge amounts actually associated with real hotel customers. This made it appear as if those customers were receiving a credit back to their cards, when in reality Annese was receiving the payments. The former owner of Sleep Inn sold the hotel in 2013 because of its struggling financial performance and did not learn of Annese’s fraud until shortly after the sale.

“Defendant Annese repeatedly used the Internet to siphon funds intended for her employer and divert them illegally to her own bank accounts,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “As reflected in this case, there are always very real victims on the other end of financial fraud crimes. The FBI remains committed to deterring this type of conduct and bringing justice to those who perpetrate fraudulent financial schemes in violation of federal law.”

Annese will be sentenced on May 18, 2015, at which time she will face up to 20 years’ imprisonment and a fine of up to $250,000.00.

The Federal Bureau of Investigation is conducting the investigation and Assistant United States Attorney Ronald M. Stella is prosecuting the case.

The Defendants Stole 26 Firearms from U.S. Lumber Company in Battle Creek

GRAND RAPIDS, MICHIGAN – Matthew Cameron Day Bolden, 24, and William Henry Watson, 22, both of Battle Creek, Michigan, pled guilty on January 28 in the U.S. District Court for the Western District of Michigan to one count of theft of firearms from a federally licensed dealer as detailed in an indictment returned on October 16, 2014, U.S. Attorney Patrick Miles announced today. James Maurice Lucas, 19, also of Battle Creek, previously pled guilty to the theft on November 14, 2014.

Late in the evening on September 6, 2014, the three men, armed with two semiautomatic pistols, broke into U.S. Lumber Company in Battle Creek, which was closed for the day. They shattered display cases containing semiautomatic pistols and revolvers, and fled the store with 26 firearms. Officers from the Battle Creek Police Department, responding to an alarm, apprehended Bolden and Watson at the scene. Lucas was arrested at a later date. Twenty-four of the firearms have been recovered.

“Stealing firearms from a federally licensed dealer is not only a dangerous crime in and of itself, but those stolen firearms can later pose a deadly threat to the public,” said U.S. Attorney Miles. “This office continues to protect the public by enforcing federal firearms law.”

“Anytime guns are stolen, the community is placed at risk,” said ATF Special Agent in Charge Steven Bogdalek. “Theft of firearms from a federally licensed firearms dealer is one of the most serious federal crimes as the guns typically end up in the hands of violent criminals. ATF, along with our local, state and federal partners remain committed to aggressively investigating these crimes.”

Chief of Police Jim Blocker of the Battle Creek Police Department said, “This incident once again validates the importance of open and joint investigations with our Federal and State law enforcement agencies. The Battle Creek Police Department has retained a long-time position on the ATF Task Force, and this case demonstrates why this remains so vital to our mission. As a local department, we naturally operate with limited resources, and we remain grateful that our Federal and State partners are so willing to assist the Battle Creek Police Department.”

Bolden and Watson will be sentenced in June and Lucas will be sentenced in March. Each faces up to 10 years’ imprisonment and a fine of up to $250,000.00.

The Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) conducted the investigation along with the Battle Creek Police Department. Assistant U.S. Attorney Justin M. Presant is prosecuting the case. The prosecution was coordinated with the Calhoun County Prosecuting Attorney.

GRAND RAPIDS, MICHIGAN – Scott Edward Carroll, 49, of Traverse City, Michigan, pled guilty on January 28, 2015, in United States District Court for the Western District of Michigan to a misdemeanor information filed on January 13, charging him with willfully failing to timely file an income tax return for the 2008 tax year, U.S. Attorney Patrick Miles announced today. Carroll will be sentenced on May 19, 2015, at which time he will face up to one year of imprisonment and a fine of up to $100,000.00. As part of his plea agreement, Carroll has agreed to pay restitution of $103,466.65, plus fraud penalties totaling an additional $44,241.00.

“In 2006 and 2007, Carroll underreported the gross sales from his business by over $180,000.00 on his federal tax returns, and then willfully failed to file tax returns in 2008, 2009 and 2010. This office will continue to vigorously prosecute those who willfully choose to cheat the tax system to avoid paying the same fair share of the tax burden dutifully paid by the taxpayers of this district,” said U.S. Attorney Miles.

From 2006 through 2010, Carroll operated a training and consulting business in Traverse City, Michigan. In 2006 and 2007, he substantially underreported his gross sales from that business on Schedule C of his federal tax returns, resulting in an underreporting of his tax liability in each year. Despite the fact that the Internal Revenue Service began an audit of his tax returns, Carroll willfully failed to timely file any personal tax returns for tax years 2008, 2009, and 2010, by the required deadlines. Instead, he did not file his income tax returns and pay his taxes for those years until 2012, long after the Internal Revenue Service informed him that it had commenced a criminal investigation of his conduct. As part of his guilty plea to the misdemeanor information for willfully failing to timely file his tax return for 2008, Carroll has also agreed to pay his corrected tax liabilities ($65,666.00), along with fraud penalties ($44,241.00) and interest ($37,800.65), associated with tax years 2006 and 2007.

"IRS Criminal Investigation directs its efforts at the portion of taxpayers that willfully violate their known legal duty to timely file accurate income tax returns,” said Jarod J. Koopman, Special Agent in Charge, Internal Revenue Service Criminal Investigation. “Identifying and investigating these types of crimes is vital to maintaining public confidence in our tax system.”

The Internal Revenue Service-Criminal Investigation conducted the investigation, and Assistant United States Attorney Ronald M. Stella is the prosecutor.

ALBANY, NEW YORK – JOHN J. TIGHE, age 57, of Milton, New York, pled guilty today in Albany before United States District Judge Thomas J. McAvoy to one count of receipt of child pornography and one count of possession of child pornography, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.

TIGHE faces at least 5 years and up to 20 years of imprisonment, as well as a term of supervised release of at least 5 years and up to life. He also faces a maximum fine of $250,000 and mandatory registration as a sex offender. TIGHE will be sentenced in Albany, New York on June 8, 2015.

As part of his guilty plea, TIGHE admitted that in June 2013 he knowingly received child pornography and that in October 2013 he knowingly 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 is being prosecuted by Special Assistant United States Attorney Amanda W. Cox.

ALBANY, NY –A Ventura, California man has been sentenced to 144 months in federal prison after admitting his participation in an $8 million investment scheme luring investors with false promises relating to the development of an alternative energy technology, announced United States Attorney Richard S. Hartunian, the United States Attorney for the Northern District of New York. This case, based out of the U.S. Attorney’s Office for the Northern District of New York, was resolved in the Central District of California as a result of a change in venue.

William A. Stehl, 70, received the following sentences from Senior United States District Judge Terry J. Hatter, Jr. in Federal Court in Los Angeles on January 21:

144 months for conspiracy to commit mail and wire fraud; 60 months for lying to federal agents; 60 months each for evading federal income taxes in 2003 and 2004; and
36 months for subscribing to a false federal income tax return in 2003.

All sentences were ordered to run concurrently. Stehl was also ordered to pay $8,118,037.18 restitution to more than 300 victims of the fraud, and to serve a term of supervised release for 3 years upon his release from prison.

Stehl and a co-defendant, Richard M. Rossignol, 64, of Los Angeles, California, were arrested in Oxnard, California four years ago in connection with an indictment filed in the Northern District of New York. Both men were charged with conspiracy to commit mail and wire fraud. Additionally, Stehl was charged with several tax charges and lying to federal agents.

The conspiracy count alleged that from 2001, up to the time of the indictment in March 2010, Stehl, Rossignol, and others induced victims to invest money in companies that were purportedly developing or utilizing an alternative energy source Stehl claimed he had developed. Investors were told that one of Stehl’s applications related to the processing of precious metals, allegedly contained in a slag pile in Silver City, New Mexico.

Stehl and Rossignol were charged with fraudulently obtaining money from investors by making false representations about the status of the process, claiming that contracts and licensing agreements had either been signed, or were about to be signed, that would result in significant financial returns for the investors. Stehl, Rossignol, and others obtained more than $8 million from more than 300 victims, and attempted to obtain at least an additional $50 million. None of the investors received the returns promised by Stehl and Rossignol. Most of the money obtained was used for personal expenditures.

Stehl was living near Saranac Lake, New York, when the scheme started, and moved to Southern California in late 2005. Fraud victims lived all across the United States.

Although the indictment was originally filed in Federal Court in Binghamton, New York, in October 2012, the case was transferred to the Central District of California to accommodate Stehl, who received injuries in an explosion that occurred in a building in Sylmar, California, on August 9, 2011.

Judge Hatter ordered Stehl to surrender himself at the facility designated by the Bureau of Prisons on March 20, 2015.

Trial and Sentencing of Co-Defendant Richard Rossignol

Rossignol’s case went to trial in Los Angeles on January 14, 2014. On February 28, the jury convicted Rossignol of the sole count he faced, conspiracy to commit mail and wire fraud. On July 28, the Court sentenced Rossignol to 20 years – the maximum statutory sentence – and immediately remanded him into custody. The Court also ordered Rossignol to pay more than $8.1 million in restitution to the fraud victims, describing the fraud as being among the most egregious it had seen in 20 years.

The investigation in this case was conducted by Special Agents of the Internal Revenue Service - Criminal Investigation, New York Field Office, and the Albany, New York, Field Office of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Kevin P. Dooley of the Binghamton branch office in the Northern District of New York. Additional inquiries can be directed to Marilyn Morey or Assistant United States Attorney Elizabeth Coombe at 518-431-0247.

ALBANY, NY –A Ventura, California man has been sentenced to 144 months in federal prison after admitting his participation in an $8 million investment scheme luring investors with false promises relating to the development of an alternative energy technology, announced United States Attorney Richard S. Hartunian, the United States Attorney for the Northern District of New York. This case, based out of the U.S. Attorney’s Office for the Northern District of New York, was resolved in the Central District of California as a result of a change in venue.

William A. Stehl

, 70, received the following sentences from Senior United States District Judge Terry J. Hatter, Jr. in Federal Court in Los Angeles on January 21:

144 months for conspiracy to commit mail and wire fraud;

60 months for lying to federal agents;

60 months each for evading federal income taxes in 2003 and 2004; and

36 months for subscribing to a false federal income tax return in 2003.

All sentences were ordered to run concurrently. Stehl was also ordered to pay $8,118,037.18 restitution to more than 300 victims of the fraud, and to serve a term of supervised release for 3 years upon his release from prison.

Stehl and a co-defendant, Richard M. Rossignol, 64, of Los Angeles, California, were arrested in Oxnard, California four years ago in connection with an indictment filed in the Northern District of New York. Both men were charged with conspiracy to commit mail and wire fraud. Additionally, Stehl was charged with several tax charges and lying to federal agents.

The conspiracy count alleged that from 2001, up to the time of the indictment in March 2010, Stehl, Rossignol, and others induced victims to invest money in companies that were purportedly developing or utilizing an alternative energy source Stehl claimed he had developed. Investors were told that one of Stehl’s applications related to the processing of precious metals, allegedly contained in a slag pile in Silver City, New Mexico.

Stehl and Rossignol were charged with fraudulently obtaining money from investors by making false representations about the status of the process, claiming that contracts and licensing agreements had either been signed, or were about to be signed, that would result in significant financial returns for the investors. Stehl, Rossignol, and others obtained more than $8 million from more than 300 victims, and attempted to obtain at least an additional $50 million. None of the investors received the returns promised by Stehl and Rossignol. Most of the money obtained was used for personal expenditures.

Stehl was living near Saranac Lake, New York, when the scheme started, and moved to Southern California in late 2005. Fraud victims lived all across the United States.

Although the indictment was originally filed in Federal Court in Binghamton, New York, in October 2012, the case was transferred to the Central District of California to accommodate Stehl, who received injuries in an explosion that occurred in a building in Sylmar, California, on August 9, 2011.

Judge Hatter ordered Stehl to surrender himself at the facility designated by the Bureau of Prisons on March 20, 2015.

Trial and Sentencing of Co-Defendant Richard Rossignol

Rossignol’s case went to trial in Los Angeles on January 14, 2014. On February 28, the jury convicted Rossignol of the sole count he faced, conspiracy to commit mail and wire fraud. On July 28, the Court sentenced Rossignol to 20 years – the maximum statutory sentence – and immediately remanded him into custody. The Court also ordered Rossignol to pay more than $8.1 million in restitution to the fraud victims, describing the fraud as being among the most egregious it had seen in 20 years.

The investigation in this case was conducted by Special Agents of the Internal Revenue Service - Criminal Investigation, New York Field Office, and the Albany, New York, Field Office of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Kevin P. Dooley of the Binghamton branch office in the Northern District of New York. Additional inquiries can be directed to Marilyn Morey or Assistant United States Attorney Elizabeth Coombe at 518-431-0247.

GRAND RAPIDS, MICHIGAN – KTM Industries, Inc. (“KTM”), a Lansing-based company that develops and manufactures biodegradable engineered foam, has agreed to pay $170,923.65 to the federal government to resolve allegations that it fraudulently obtained funding under a National Science Foundation (“NSF”) award in violation of the federal False Claims Act. As part of the settlement, KTM’s CEO agreed to pay an additional $25,000 and submit to a three-year exclusion from participation in federal programs, grants, and contracts. The government previously received $54,076.35 from Michigan State University (“MSU”) in a related investigation into whether, under a subcontract with KTM, MSU spent NSF award funds on unallowable equipment. KTM, KTM’s CEO, and MSU did not admit liability as part of their respective settlements.

In September 2010, NSF awarded KTM Phase II funding under a Small Business Technology Transfer (“STTR”) grant to support the development of chemically-modified plastic starch bio-foams. The United States alleged that to obtain and maintain this funding, KTM and its CEO knowingly made a number of false statements and supplied NSF and NSF contractors with false documents. These false statements and false documents concerned, among other things, KTM’s accounting system and timekeeping records, the actual expenditure of NSF award funds, and the primary employment and payment of the principal investigator on the NSF project. The United States further alleged that during the investigation of this case, KTM produced 24 false and fraudulent employee timesheets in response to an administrative subpoena, the creation of which timesheets was directed by the company’s CEO.

“Those who seek federal funding must be truthful and accurate in their dealings with government agencies,” said U.S. Attorney Patrick Miles. “Companies and individuals that make misrepresentations to obtain such funding undermine the integrity of the grant process and unfairly divert funds from qualified grantees who will play by the rules.”

Allison Lerner, NSF’s Inspector General said, “STTR funding is a valuable tool for small businesses to develop innovative technologies. Unscrupulous individuals and companies who lie to fraudulently obtain these funds will not be tolerated. I commend the U.S. Attorney for his support in this case.”

This case was investigated by NSF’s Office of Inspector General. Assistant U.S. Attorney Adam B. Townshend represented the United States.

WASHINGTON - Attorney General Eric H. Holder, Jr. announced today the appointment of United States Attorney for the District of Colorado John F. Walsh as chair of the Attorney General’s Advisory Committee of United States Attorneys (AGAC). Attorney General Holder also appointed United States Attorney for the Northern District of New York Richard S. Hartunian to serve as vice chair. Both appointments are effective immediately.

“Throughout their respective tenures in Colorado and the Northern District of New York, John Walsh and Richard Hartunian have been thoughtful leaders of the United States Attorney community, fierce advocates for the citizens they serve, and champions of the cause of justice,” said Attorney General Eric Holder. “Each of them has been instrumental in addressing sensitive legal issues, handling difficult cases, and shaping and implementing critical Smart on Crime reforms. I thank John and Richard for agreeing to lead the Attorney General’s Advisory Committee – and for lending their perspectives and deep experience to the pressing policy questions about which I, and Attorney General-designate Loretta Lynch, will surely look to them for guidance and counsel.”

U.S. Attorney Walsh previously served on the AGAC from February 2011 to January 2013, served as the chair of the Medical Marijuana Working Group and co-chair of the White Collar/Fraud Subcommittee. He replaces U.S. Attorney for the Eastern District of New York and Attorney General nominee Loretta E. Lynch.

U.S. Attorney Hartunian was appointed to the AGAC in April 2013 and has served as the chair of the Border and Immigration Subcommittee in addition to serving on several committees. He replaces Acting Deputy Attorney General and former U.S. Attorney for the Northern District of Georgia Sally Quillian Yates.

Attorney General Holder also thanked U.S. Attorneys Lynch and Yates for serving as chair and vice chair of the AGAC for the past two years.

“I want to express my heartfelt personal thanks to both Loretta Lynch and Sally Yates for their outstanding leadership of the Attorney General’s Advisory Committee,” said Attorney General Eric Holder. “It has been a pleasure and a privilege to work closely with them on a range of critical issues over the years. I am both proud and deeply gratified that the American people will continue to benefit from their service in the new roles to which President Obama has nominated them. And I am confident that the Department of Justice will only grow stronger under their leadership as Attorney General and Deputy Attorney General, respectively.”

The AGAC was created in 1973 to serve as the voice of the United States Attorneys and to advise the Attorney General on policy, management and operational issues impacting the offices of the United States Attorneys.

SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced today that a physician who formerly ran offices in Central New York has pled guilty to health care fraud and issuing illegal prescriptions for controlled substances.

MAHESH KUTHURU, M.D., age 44, formerly of Baldwinsville, pled guilty to defrauding Medicare from approximately January 2010 through September 2011 in the course of his practice at Upstate Pain Management, with offices at 59 South First Street, Fulton, New York and 287 Genesee Street, Utica. KUTHURU admitted that he submitted bills to Medicare which falsely reflected that he had personally provided or directly supervised other licensed medical personnel providing treatment or services to patients in the Fulton and Utica offices of Upstate Pain Management. In fact, KUTHURU did not personally provide those services because he was either outside the country or in Las Vegas, Nevada where he operated another medical office known as Dessert Pain Management. As a result of the false claims submitted to Medicare by KUTHURU’s New York practice, Medicare paid and KUTHURU received approximately $82,986 to which he was not entitled. In addition, KUTHURU pled guilty to illegally issuing prescriptions for controlled substances from his New York practice. KUTHURU admitted that when he was not in his New York offices, clerical staff in those offices would partially fill out prescription forms for established patients in advance of the patient’s office visit. Those prescription forms would then be sent to KUTHURU in Las Vegas where he would sign the undated forms and return them to the clerical staff in New York. The clerical staff would then date the prescription form and give it to the patient on the day the patient visited the office. On other occasions, KUTHURU signed blank, undated prescription forms and left them in his New York offices for issuance to patients there when he was in Las Vegas.

KUTHURU faces a maximum term of imprisonment of 10 years and a fine of $250,000 on the health care fraud charge and a 1 year term of imprisonment and a $100,000 fine on the unlawful dispensation of controlled substance prescription charge.

United States District Court Judge David N. Hurd scheduled sentencing for May 22, 2015 at Noon in Utica.

The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, 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.

          GRAND RAPIDS, MICHIGAN – Joshua David Buerman, 27, formerly of Traverse City, Michigan, was sentenced in the U.S. District Court for the Western District of New York on a charge originally brought here in the Western District of Michigan. He received 9 years in prison for his involvement in a conspiracy to import into the State of Michigan more than 5 kilograms of methylone from China. Buerman also received a concurrent 9 year sentence on his plea of guilty to a separate criminal charge stemming from his involvement in a conspiracy to import and distribute more than 15 kilograms of methylone in the State of New York.

Methylone is a synthetic stimulant having a chemical structure which closely resembles 3,4 methyelenedioxymethamphetamine, known commonly as “MDMA” or “ecstasy.” Methylone is often sold generically by the street term “bath salts” or “research chemicals.” Methylone was permanently placed into Schedule I of the Controlled Substances Act in April 2013.

U.S. Attorney Patrick Miles said, “Synthetic drugs such as methylone are extremely dangerous. Users are often misled into believing synthetic drugs are less harmful than more commonly known street drugs, particularly by their innocuous sounding street name, ‘bath salts.’ In truth, synthetic drugs can lead to severe psychological dependence and death. Because synthetic drugs often have obscure origins, are imported from overseas, and contain misleading labeling, users often have no idea what kinds of chemicals they are putting in their bodies. We will vigorously prosecute those who illegally import and distribute these drugs.”

In February 2012, while living in Traverse City, Michigan, Joshua Buerman began purchasing quantities of methylone and several other synthetic drugs from a Chinese source of supply that he discovered over the internet. Over the course of the next several months, Buerman ordered more than 5 kilograms of methylone, all of which was delivered to him through the U.S. mail.

In June 2012, Buerman left the state Michigan and moved back to Rochester, New York where he continued to purchase and receive significant quantities of methylone online from the same Chinese supplier. In connection with the investigation of Buerman and his Chinese source of supply, law enforcement officials were able to determine that Buerman was actively ordering methylone from China and that he had recruited several local associates to assist him.

The investigation further revealed that the China-based supplier was shipping an assortment of controlled substances and controlled substance analogues to numerous customers located throughout the United States and abroad, including, but not limited to Austria, Canada, Finland, Spain, Germany, Italy, Belgium, Ireland, the United Kingdom, Sweden and Lithuania.

The investigation generated more than 450 leads which were disseminated to various police agencies across the United States, resulting in the nationwide seizure of more than 70 kilograms of methylone and numerous controlled substance analogues, all of which had been shipped from China. Investigative leads also resulted in at least 54 arrests nationwide, including Maine, Massachusetts, Connecticut, New Jersey, Maryland, Virginia, North Carolina, South Carolina, Georgia, Florida, Louisiana, Tennessee, Missouri, Ohio, Minnesota, Nevada, Oregon, California and Texas.

The Michigan portion of the investigation was handled by the Michigan State Police and Homeland Security Investigations. It was prosecuted by AUSA Clay Stiffler.

ALBANY, NEW YORK – On January 20, 2015, DOUGLAS E. WATSON, II, 30, of Albany, NY, pled guilty to three felony counts of mail fraud in connection with a lottery fraud scheme that targeted elderly victims, announced United States Attorney Richard S. Hartunian, United States Postal Inspection Service – Boston Division Inspector in Charge Shelly Binkowski, and Homeland Security Investigations Assistant Special Agent in Charge Nicholas DiNicola. Sentencing is scheduled for May 20, 2015, at 10:00 a.m. For each count of conviction, the defendant faces a maximum term of imprisonment of twenty years and a maximum fine of $250,000.

As part of the “advance fee fraud” scheme, victims were informed that they had won the New York State lottery but that they needed to send cash payments for taxes and processing fees to claim their winnings.

The defendant admitted that he received two packages from victims containing tens of thousands of dollars in cash and sent a false receipt to cover up the fraud. The defendant pled guilty immediately before a federal jury trial was set to begin in Albany before United States District Judge Mae A. D’Agostino.

The prosecution resulted from a joint investigation by the United States Postal Inspection Service, Homeland Security Investigations, the Pittsfield (Massachusetts) Police Department, and the Albany Police Department. The case is being prosecuted by Assistant United States Attorney Sean O’Dowd.