Northern District of New York
Press releases recorded for this federal judicial district.
Bronx Man Convicted for Distributing Crack CocaineRead the Press Release
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.
Windsor, Ontario, Canada - Man was Sentenced to Serve 6 Months in Prison for Illegally Reentering the United States Following RemovalRead the Press Release
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.
Utica Man Indicted on Two Counts of Bank RobberyRead the Press Release
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.
Canadian Man Sentenced 27 Months for Illegal Re-EntryRead the Press Release
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.
Customs and Border Protection Officer SentencedRead the Press Release
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.
Watertown Man Indicted for Armed Sunoco RobberyRead the Press Release
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).
Nevada Man Convicted of Producing Child Pornography in KalamazooRead the Press Release
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.
Jenison Woman Pleads Guilty to Wire Fraud SchemeRead the Press Release
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.
Final Two Defendants Plead Guilty to Theft from Federally Licensed Firearms DealerRead the Press Release
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.
Traverse City Man Pleads Guilty to Willfully Failing to Timely File Income Tax ReturnRead the Press Release
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.
Saratoga County Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
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.
Saranac Lake, NY Fraud Scheme Nets Man 144 Month Prison TermRead the Press Release
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.
Saranac Lake Fraud Scheme Nets Man 144 Month Prison TermRead the Press Release
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.
KTM Industries, Inc. Resolves False Claims Act Allegations Involving National Science Foundation AwardRead the Press Release
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.
United States Attorneys John F. Walsh and Richard S. Hartunian to Lead Attorney General’s Advisory CommitteeRead the Press Release
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.
Man Pled Guilty to Health Care Fraud and Issuing Illegal Prescriptions for Controlled SubstancesRead the Press Release
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.
Former Traverse City Man Sentenced to Nine Years in Prison for Importing "Bath Salts" from ChinaRead the Press Release
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 Man Pleads Guilty to Lottery FraudRead the Press Release
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.
Lansing Man Sentenced in Federal Mortgage Fraud ProbeRead the Press Release
Richard Hollern Sentenced for Conspiracy to Commit Bank Fraud
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick Miles announced today that Richard Hollern, 39, of Grand Ledge, Michigan was sentenced for conspiracy to commit bank fraud. Hollern pled guilty before U.S. District Judge Robert Holmes Bell on August 18, 2014.
Hollern admitted that he conspired with others at CDC, a Lansing real estate and investment company, to process multiple fraudulent mortgage transactions involving real estate in the vicinity of Lansing, Michigan. The scheme enabled the perpetrators to use bank funds to enrich themselves as a result of the sham real estate transaction charged, as well as other similar transactions. Others associated with this organization, including Eric Williams, Aaron Teachout, Isaac Modert, Mario Giannandrea, Rick Artibee, Dennis Sare, Nicole Buda have already been sentenced for their roles in the conspiracy. Another conspirator, Craig DeHaven, has pled guilty and is awaiting sentencing.
Judge Bell imposed a prison sentence of 30 months, to be followed by 24 months of supervision following release from prison. Hollern was also ordered to pay restitution of $1,860,377 to the banks defrauded as a result of the scheme.
Hollern’s prosecution is the result of a continuing investigation by the Mortgage Fraud Task Force, comprised of federal investigators from the FBI, U.S. Secret Service, the U. S. Postal Inspection Service and the HUD Office of Inspector General. The task force also includes the Lansing Police Department, investigators employed by the Michigan Attorney General’s Office and other state agencies. To date, fifteen individuals have been convicted of mortgage fraud as part of this effort, resulting in prison sentences for all of the defendants, and restitution orders exceeding $14,000,000.
U.S. Attorney Miles praised the cooperation between federal, state and local investigators participating in the Mortgage Fraud Task Force. He also stated that the work of the group is not done: “Many of the people prosecuted worked with others who committed, and continue to commit, mortgage fraud. The defendants have told investigators who they are, and what they are doing. Those people who have not yet learned that crime does not pay will learn that lesson very soon.”
Albion Man Sentenced to 12 Months in Prison for Defrauding the Social Security Administration of more than $48,000Read the Press Release
Roger Dale Young Lied About His Income and Resources
So That He Would Receive a Larger Disability Check Each MonthGRAND RAPIDS, MICHIGAN – Roger Dale Young, 55, of Albion, Michigan, was sentenced to 12 months in federal prison today for committing Social Security fraud. He was also ordered to pay restitution to the Social Security Administration. U.S. District Judge Janet T. Neff imposed the sentence.
Young, who had been receiving Supplemental Security Income disability benefits, pled guilty in September 2014 to lying about his assets and other financial resources in order to increase the amount of his monthly disability check. Young’s fraud occurred over the course of nearly 11 years and cost taxpayers more than $48,000.U.S. Attorney Patrick A. Miles, Jr., said, “Protecting taxpayers is one of our primary missions. We will continue to vigorously prosecute those who defraud federal agencies like the Social Security Administration.”
The case was investigated by the Social Security Administration’s Office of Inspector General, the Albion, Michigan Police Department, and the Calhoun County Sheriff’s Department. It was prosecuted by Assistant United States Attorney Clay Stiffler.
Wisconsin Man Sentenced in KBIC Child Sexual Abuse CaseRead the Press Release
MARQUETTE, MICHIGAN – Douglas Emil Kugler, Jr., 34, of Eagle River, Wisconsin, was sentenced to 71 months in federal prison for abusive sexual contact with a child under twelve years old, U.S. Attorney Patrick A. Miles, Jr. announced today. In addition to the prison term, U.S. District Judge R. Allan Edgar ordered Kugler to serve 20 years of supervised release following completion of his prison term, and to pay a $100 special assessment.
The sentencing followed Kugler’s plea of guilty to the charge on August 13, 2014. The charge arose from an incident that occurred at a residence on Keweenaw Bay Indian Community reservation land between September 2004 and May 2006 involving Kugler, a non-Indian, and a boy between the ages of four and five. The incident came to light in December 2011, when the victim first disclosed what had happened to him. In sentencing Kugler, Judge Edgar found that Kugler had engaged in a pattern of prohibited sexual conduct with children.
The Keweenaw Bay Indian Community Tribal Police and the FBI investigated the case. Assistant U.S. Attorney Paul D. Lochner prosecuted the case..
Seven People Indicted in Cocaine Conspiracy Including Five Keeseville Residents, One Plattsburgh ResidentRead the Press Release
Investigation Yields Seizure of Over 500 Grams of Cocaine
PLATTSBURGH, NEW YORK –United States Attorney Richard S. Hartunian, Drug Enforcement Administration Special Agent in Charge James J. Hunt, and New York State Police Troop B Headquarters Bureau of Criminal Investigations Captain Robert S. LaFountain announced that a grand jury has indicted seven individuals on drug trafficking charges.
“The plague of addictive drugs like cocaine devastates lives and communities,” stated United States Attorney Richard S. Hartunian. “We will continue to work with our law enforcement partners to get these substances off our streets and prosecute distributers to the fullest extent of the law.”
DEA Special Agent in Charge James J. Hunt stated, “This investigation is the essence of DEA’s mission - to identify and dismantle drug trafficking organizations responsible for threatening our communities with drug abuse and the perils associated. By working with our federal, local and state law enforcement partners, DEA not only dismantled a local cocaine distribution organization based in Plattsburgh, but located and arrested the cocaine source in New York City.”
“These arrests underscore the extraordinary results that are achieved by the dedication and perseverance of the state, local and federal law enforcement officers who worked so diligently on this case,” said New York State Police Captain Robert S. LaFountain. “The New York State Police are committed to working with our law enforcement partners to identify, investigate and arrest those involved in the distribution and sale of narcotic drugs."
The indictment charges the following individuals with conspiracy to possess with intent to distribute and to distribute cocaine:
• Thomas Farlekas, 31, of Bronx, New York
• Earl Mudd, 48, of Keeseville, New York
• Michael Moran, 43, of Keeseville, New York
• Kelly Nusbaum-Allen, 43, of Plattsburgh, New York
• Clayton Barber, Jr. aka “Junior,” 34, of Keeseville, New York
• Suzanne Gill, 30, of Keeseville, New York
• Joseph Hathaway, 38, of Keeseville, New YorkFarlekas and Mudd face at least ten (10) years and up to life imprisonment, and a fine of up to $10,000,000. Moran faces at least five (5) years imprisonment and up to forty (40) years imprisonment, and a fine of up to $5,000,000. The remaining defendants face up to twenty (20) years imprisonment and up to a $1,000,000 fine.
Farlekas, Mudd, and Moran appeared in United States District Court in Plattsburgh, New York on November 30, 2014. Farlekas and Mudd were detained pending trial and Moran was released on pretrial release supervision. Nusbaum-Allen appeared in United States District Court in Plattsburgh, New York on December 18, 2014, and was released on pretrial release supervision. Barber, Jr., Gill, and Hathaway appeared in United States District Court in Plattsburgh, New York on December 23, 2014. Gill was released on pretrial release supervision. Barber, Jr. and Hathaway were detained pending trial. Trial in this matter is currently scheduled for February 17, 2015 before Senior United States District Court Judge Lawrence E. Kahn in Albany, New York.
The charges contained in the indictment are merely accusations and the defendants are presumed innocent until and unless proven guilty.
The case was investigated by the U.S. Drug Enforcement Administration, the New York State Police, U.S. Border Patrol, and Homeland Security Investigations. Local law enforcement agencies involved include the Plattsburgh Police Department, Essex County Sheriff’s Department, and Malone Village Police Department. The United States is represented in this prosecution by Assistant United States Attorney Katherine Kopita.
Hudson Men Convicted of Food Stamp FraudRead the Press Release
Exchanged Hundreds of Thousands of Dollars of Food Stamps for Cash
ALBANY, NEW YORK – A federal jury in Albany returned its verdict following the four-day trial of MOFADDAL M. MURSHED, 37, and AHMED A. ALGAHAIM, 54, 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.
The jury found both defendants guilty of one count of conspiracy to commit Supplemental Nutrition Assistance Program (“SNAP”) fraud and one count of SNAP fraud. They face up to 5 years in prison on each count and are scheduled to be sentenced on April 13, 2015, in Albany.
“The Supplemental Nutrition Assistance Program was established to assist low income citizens and their families in getting enough food to eat consistent, nutritious meals. People who defraud the SNAP program not only are defeating the purpose of the program but are manipulating our tax dollars, which pay for the program, for their own gain, which is intolerable,” said United States Attorney Richard S. Hartunian. “Our office will continue to work closely with partner agencies to intervene upon and end such abuse.”
“I’m very pleased to see this case brought to successful conclusion with today’s guilty verdicts,” said Columbia County Sheriff David Bartlett. “I applaud the work of our Welfare Fraud Unit and the other members of the Columbia County Welfare Fraud Taskforce, working hand-in-hand with our local, state and federal law enforcement partners to protect the financial integrity of our social welfare programs and ultimately safeguarding the taxpayers’ dollars from fraud and abuse. We will continue to aggressively investigate and prosecute these cases.”
Coconspirators FAISAL Q. MORSHED, 35, and IBRAHIM Q. MURSHED, 25, pleaded guilty to conspiracy to commit SNAP fraud and SNAP fraud on December 3, 2014. They, too, are scheduled to be sentenced on April 13, 2015, in Albany.
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.
MOFADDAL M. MURSHED owned D&D Deli & Grocery, in Hudson, New York, where AHMED A. ALGAHAIM, FAISAL Q. MORSHED, AND IBRAHIM Q. MURSHED worked as employees. The defendants generated hundreds of thousands of dollars in fraudulent proceeds by providing cash to SNAP beneficiaries in exchange for SNAP benefits.
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.
Suny Research Foundation to Pay $3.75 Million to Resolve False Claims Act LiabilityRead the Press Release
Grant Recipient Admits that it Submitted False Statements to the Federal Government
Relating to New York State’s Medicaid and Children’s Health Insurance ProgramsALBANY, NEW YORK: The Research Foundation for the State University of New York has agreed to pay the United States $3,750,000 to resolve allegations that its Center for Development of Human Services (CDHS) violated the False Claims Act by manipulating audits it performed of federally funded health care programs in New York State, announced United States Attorney Richard S. Hartunian.
The Research Foundation is a nonprofit educational corporation whose mission includes supporting research for the State University of New York. CDHS is a Research Foundation program headquartered at Buffalo State College, with offices in Albany, Buffalo, Syracuse, Rochester, and New York City. In 2007, Research Foundation entered into a contract with the New York State Department of Health to review and report to the federal government information concerning eligibility for New York State’s Medicaid and Children’s Health Insurance Programs (CHIP). These audits – known as the Payment Error Rate Measurement (PERM) and Medicaid Eligibility Quality Control (MEQC) reviews – were designed to measure, among other things, errors in local determinations as to which New York State residents were eligible to receive Medicaid and CHIP benefits during the period of October 1, 2007 through September 30, 2008.
The settlement resolves allegations that CDHS manipulated both the PERM and MEQC audits by prescreening and altering the cases selected for inclusion in what were supposed to be random sample reviews of New York State’s Medicaid and CHIP eligibility determinations. CDHS, which cooperated during the investigation, acknowledged in the settlement agreement that it submitted false statements to the Centers for Medicare & Medicaid Services pertaining to New York State’s eligibility error rates. Based in part on the findings of the investigation, Research Foundation adopted enhanced compliance measures, including appointing a Chief Compliance Officer to oversee the administration of the activities it sponsors.
United States Attorney Hartunian said: “The effort to provide better health care to more people at a lower cost depends on the faithful application of Medicaid eligibility requirements and the reduction of erroneous payments based upon accurate information provided by independent reviewers. In this case, the Center for Development of Human Services failed to fulfill its contractual obligation, as a federal grant recipient, to deliver the accurate and reliable information necessary to maintain the integrity of the Medicaid program. We will continue to pursue vigorously entities that deliver substandard work on taxpayer-funded projects and violate the public trust by falsifying information to receive federal funds.”
“CDHS skewed its audits of New York health care programs for its own gain. We will not tolerate such schemes, which waste scarce federal taxpayer dollars and undercut the integrity of public health care programs,” said Thomas O’Donnell, Special Agent in Charge, United States Department of Health and Human Services, Office of Inspector General (HHS-OIG), New York region.
The government’s investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, which allows private persons, known as “relators,” to file civil actions on behalf of the United States and share in any recovery. The relators in this case will receive $825,000, which is 22% of the settlement proceeds. The case is docketed with the United States District Court for the Northern District of New York under number 10-cv-385.
The investigation and settlement were the result of a coordinated effort between the United States Attorney’s Office for the Northern District of New York, the Department of Justice’s Civil Division (Fraud Section), and HHS-OIG. Locally, the United States was represented by Assistant United States Attorney Adam J. Katz.
Gloversville Man Sentenced to 18 Months for Growing MarijuanaRead the Press Release
ALBANY, NEW YORK – DAVID M. GAMBUZZA, age 41, of Gloversville, was sentenced on December 12, 2014, by U.S. District Judge Mae A. D’Agostino, to 18 months in prison for manufacturing marijuana, announced United States Attorney Richard S. Hartunian and New York State Police Bureau of Criminal Investigations Captain Scott P. Coburn.
GAMBUZZA, who pleaded guilty in July 2014, admitted to growing marijuana plants inside a two-story building that he owned in Montgomery County. GAMBUZZA had installed grow lights and sophisticated watering and ventilation systems inside the building. In September 2013, investigators searched the building and seized approximately 280 marijuana plants.
This case was investigated by the New York State Police and was prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Former Utica Resident Pleads Guilty to Aggravated Identity Theft and Theft of Fraudulent Tax RefundsRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian announced today that ANAS K. WILSON, 32, a former resident of Utica, New York, has pled guilty to one count of theft of government property, in violation of 18 U.S.C. § 641 and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1). Mr. Wilson faces up to ten years in prison on the theft of government property count and a two-year mandatory minimum sentence on the aggravated identify theft count. Sentencing is scheduled for April 14, 2015, before Senior District Judge Frederick, J. Scullin, Jr.
At a change of plea hearing on December 4, 2014, Mr. Wilson admitted that he electronically filed fraudulent U.S. Individual Income Tax Returns on behalf of victims who were not entitled to tax refunds, and that he directed the tax refunds received to bank accounts that he had established. Mr. Wilson directed other individuals to withdraw the funds from the accounts and provide him the money, in exchange for a fee. To execute the scheme, Mr. Wilson illegally utilized personal identifying information (including Social Security numbers and names) of the victims. Mr. Wilson was responsible for submitting fraudulent tax returns to the IRS that resulted in the release of more than $400,000 in false tax refunds by the IRS.
United States Attorney Richard S. Hartunian said, “Filing fraudulent tax returns with stolen identities is one of the fastest growing crimes in the country. It is estimated our nation is losing hundreds of millions of dollars a year in bogus refunds – money that is meant to be used to make American lives safer and better. Theft of tax refunds is a crime against the American people. Our office continues to work diligently with the IRS to stop this crime.”
Shantelle P. Kitchen, Acting Special Agent in Charge of the New York Field Office of IRS-Criminal Investigation, stated, “The investigation of tax refund schemes that involve the theft of taxpayers’ identities is a top priority for IRS-Criminal Investigation. We are committed to stopping individuals who seek to use our nation’s tax system for personal profit, especially at the expense of law abiding taxpayers.” Craig W. Rupert, Special Agent in Charge, Defense Criminal Investigative Service (“DCIS”) Northeast Field Office stated, “This guilty plea demonstrates the continued commitment of DCIS and fellow agencies in pro-actively identifying individuals and groups intent on perpetrating schemes which defraud the American taxpayer. The exploitation of government programs by way of identity theft or any other scheme will not be tolerated.”
This case was investigated by the IRS Criminal Investigation Division, the U.S. Treasury Inspector General for Tax Administration, and DCIS, and it is being prosecuted by Assistant United States Attorney Michael F. Perry.
For additional information, contact Executive Assistant U.S. Attorney John G. Duncan at 315-448-0672.
Cicero Man Admits Mailing Fake Anthrax/Ricin LettersRead the Press Release
SYRACUSE, NEW YORK - BRIAN DANIEL NORTON, age 59, of Cicero, New York, entered a guilty plea in U.S. District Court in Utica to two federal felony counts of conveying false information and hoaxes in violation of 18 U.S.C. §1038(a) according to United States Attorney Richard S. Hartunian. Norton faces a maximum possible sentence of five years incarceration and a $250,000 fine. He is being detained pending sentencing scheduled in Utica for April 10, 2015 at 11 am.
In court, Norton admitted he mailed more than 20 death threat letters that contained a white powder he claimed to be either anthrax or ricin. The letters were mailed to various addresses in the Syracuse, New York area and elsewhere between 1997 and 2012. Those receiving the letters included LeMoyne College and Bishop Ludden High School in Syracuse, as well as U.S. Senator John McCain, then-Secretary of Defense Robert Gates and former Congresswoman Ann Marie Buerkle. Later analysis of the powder contained in the letters proved that it was harmless.
The case was investigated by the Federal Bureau of Investigation, Syracuse Resident Office and the United States Postal Inspection Service, Syracuse Office, and prosecuted by Assistant United States Attorney Stephen C. Green.
For additional information, contact Executive Assistant U.S. Attorney John G. Duncan at 315- 448-0672.
Cicero Man Admits Mailing Fake Anthrax/Ricin LettersRead the Press Release
Brian Daniel Norton, age 59, of Cicero, New York, entered a guilty plea in U.S. District Court in Utica to two federal felony counts of conveying false information and hoaxes, according to United States Attorney Richard S. Hartunian. Norton faces a maximum possible sentence of five years incarceration and a $250,000 fine. He is being detained pending sentencing scheduled in Utica for April 10, 2015, at 11 am.
In court, Norton admitted he mailed more than 20 death threat letters that contained a white powder he claimed to be either anthrax or ricin. The letters were mailed to various addresses in the Syracuse, New York, area and elsewhere between 1997 and 2012. Those receiving the letters included LeMoyne College and Bishop Ludden High School in Syracuse, as well as U.S. Senator John McCain, then-Secretary of Defense Robert Gates and former Congresswoman Ann Marie Buerkle. Later analysis of the powder contained in the letters proved that it was harmless.
The case was investigated by the Federal Bureau of Investigation, Syracuse Resident Office and the United States Postal Inspection Service, Syracuse Office, and prosecuted by Assistant United States Attorney Stephen C. Green.
For additional information, contact Executive Assistant U.S. Attorney John G. Duncan at 315- 448-0672.
Alien Sentenced for Illegal Re-entry near PlattsburghRead the Press Release
Had Been Previously Removed Three Times
ALBANY, NEW YORK – Esequiel Perez-Lopez, 34 years old of Mexico, was sentenced today to serve 11 months in prison, followed by two years of supervised release by United States District Court Judge Glenn T. Suddaby announced United States Attorney Richard S. Hartunian and Patrol Agent In Charge Norman Lague, Champlain Border Patrol. In August, Perez-Lopez pled guilty to illegally reentering the United States after he had previously been removed, a felony under federal law. Following the completion of the term of his imprisonment, the Department of Homeland Security will process Perez-Lopez for removal from the United States to Mexico.
In August 2014, Perez-Lopez was arrested by Border Patrol Agents in a restaurant parking lot in Plattsburgh, New York. Perez-Lopez had been previously removed to Mexico three times, most recently in November 2012 after his conviction in the District of New Hampshire for illegally entering the United States after removal.
The case was investigated by the United States Border Patrol, Champlain, NY and prosecuted by Assistant United States Attorney Edward P. Grogan.
Alien Sentenced for Illegal Re-entry in HogansbergRead the Press Release
Had Been Removed in June 2014
ALBANY, NEW YORK – Elyn Francisco Figuereo-Minyette, 27 years old and a citizen of Spain, was sentenced today to term of “time served” (45 days), by United States District Court Judge Glenn T. Suddaby announced United States Attorney Richard S. Hartunian and Patrol Agent In Charge Wade A. Laughman, Massena Border Patrol. In November, Figuereo-Minyette pled guilty to illegally reentering the United States following removal, a felony under federal law. Judge Suddaby remanded Figuereo-Minyette, following today’s sentencing, to the custody of the Department of Homeland Security for removal proceedings.
In October 2014, Figuereo-Minyette was arrested by Border Patrol Agents on New York State Route 37 in Fort Covington, New York. Figuereo-Minyette had illegally crossed the border at a remote location on the St. Regis Akwesasne reservation and was picked up by a waiting car shortly before he was stopped and arrested by Border Patrol. Figuereo-Minyette had been previously removed to Spain on June 9, 2014.
The case was investigated by the United States Border Patrol, Massena, NY and prosecuted by Assistant United States Attorney Edward P. Grogan
Alien Sentenced for Illegal Re-Entry near ChamplainRead the Press Release
Had Been Removed in 2005
ALBANY, NEW YORK – Alexis Fuentes, 40 years old of the Dominican Republic, was sentenced today to serve 41 months in prison by United States District Court Judge Glenn T. Suddaby announced United States Attorney Richard S. Hartunian and Patrol Agent In Charge Norman Lague, Champlain Border Patrol. In August, Fuentes pled guilty to illegally reentering the United States after he had previously been removed, a felony under federal law. Following the completion of the term of his imprisonment, the Department of Homeland Security will process Fuentes for removal from the United States to the Dominican Republic.
In June 2014, Fuentes was arrested by Border Patrol Agents on New York State Route 11 in Champlain, New York. Fuentes had illegally crossed the border at a remote location and was picked up by a waiting car shortly before he was stopped and arrested by Border Patrol. Fuentes had been previously removed to the Dominican Republic in May 2005. Fuentes was ordered removed after he was convicted in Berks County, Pennsylvania of an aggravated felony, possession with intent to deliver a controlled substance.
The case was investigated by the United States Border Patrol, Champlain, NY and prosecuted by Assistant United States Attorney Edward P. Grogan.
Endicott Man Sentenced for Writing a False Letter Accusing his Former Boss of Being a Foreign Intelligence OfficerRead the Press Release
BINGHAMTON, NEW YORK –United States Attorney Richard S. Hartunian and Federal Bureau of Investigation (“FBI”) Albany Special Agent in Charge Andrew W. Vale, announced today the sentencing of RYAN LETCHER, age 39, of Endicott, New York. LETCHER was convicted on August 6, 2014, after a jury trial of one count of knowingly and willfully making a false statement in violation of 18 U.S.C. §1001(a)(3). On December 4, 2014, the Honorable Thomas J. McAvoy sentenced LETCHER to a four year term of probation and ordered LETCHER to pay a $5,000 fine and perform 180 hours of community service. Additionally, LETCHER was ordered to have no contact with his former boss and with BAE Systems.
In March 2012, LETCHER wrote an anonymous letter accusing his former supervisor of being a foreign intelligence officer. The testimony during trial established that the term “foreign intelligence officer” means a spy for another country. LETCHER admitted that he sent the letter and stated that he sent the letter because of his disdain for his former supervisor.
The case was investigated by the FBI and was prosecuted by Assistant United States Attorney Tamara Thomson.
Coombe Becomes First Female Federal Criminal Chief for Northern District of New York; Clymer Becomes Appellate ChiefRead the Press Release
Albany, New York – Elizabeth C. Coombe has been named the Chief of the Criminal Division of the United States Attorney’s Office for the Northern District of New York, announced United States Attorney Richard S. Hartunian. Ms. Coombe succeeds Steven D. Clymer, who is becoming the Appellate Chief for the U.S. Attorney’s Office.
United States Attorney Hartunian said: “Beth Coombe is an outstanding leader and accomplished trial lawyer, with the extensive experience, breadth of perspective, unflinching integrity, and sound judgment needed to address today’s significant law enforcement challenges.”
Ms. Coombe is the seventh Chief of the Criminal Division and the first female to hold the post since it was created about twenty-three years ago. Ms. Coombe has served as the Deputy Chief of the Criminal Division since 2012. She became an Assistant U.S. Attorney in the District of Columbia in 1998, serving in the appellate, general felony, and grand jury sections before being assigned to the fraud and public corruption section. She transferred to the Albany Office of the Northern District of New York in 2003, where she has focused on public corruption and white collar crime. She has also served as a team leader and as a member of the Joint Terrorism Task Force.
Ms. Coombe graduated from the University of Michigan Law School cum laude in 1992 and Hamilton College summa cum laude in 1989. Before becoming an Assistant U.S. Attorney, Ms. Coombe worked as a trial attorney in the Court of Claims and Federal Circuit Section of the Department of Justice. She also worked as a staff attorney for the Enforcement Division of the Securities and Exchange Commission and clerked for the Honorable Diana E. Murphy, then Chief United States District Court Judge for the District of Minnesota.
In the Northern District, Ms. Coombe has tried a number of high profile cases, including an honest services fraud case against the former New York State Senate Majority Leader; a $30 million dollar investment fraud case against the owners of a securities broker-dealer in Albany (McGinn Smith), leading to imprisonment sentences of 15 and 10 years; and United States v. Yassin Aref (a local Imam) and Mohammed Hossain, leading to sentences including imprisonment for 15 years for conspiracy to commit money laundering, conspiracy to provide material support to terrorism, and related offenses. She has also tried extortion, tax fraud, structuring, and embezzlement cases. This year, Ms. Coombe received a Director’s Award for Superior Performance.
Regarding Mr. Clymer, United States Attorney Hartunian said: “Steve Clymer has served the District with great distinction as Criminal Chief. His extraordinary legal mind, attention to detail, and demonstrated excellence as a leader, litigator, and educator will make him a superb Appellate Chief.”
Mr. Clymer has served as the Chief of the Criminal Division since 2010. Mr. Clymer first became an Assistant U.S. Attorney in the Central District of California in 1987, where he worked until 1995 and 2003 - 2005, serving as Chief of the Criminal Division, Senior Litigation Counsel, Chief of the Major Crimes Section, Deputy Chief of the Narcotics Section, and Chief of Training. A graduate of Cornell University (magna cum laude, 1980) and Cornell Law School (magna cum laude, 1983), Mr. Clymer served as Associate Professor of Law at Cornell Law School 1995 – 2000, Assistant Professor of Law 2001 - 2005, and Professor of Law 2005-10, and has served as an Adjunct Professor of Law since 2010. Mr. Clymer was an Assistant U.S. Attorney in the Northern District of New York 1998 - 2000, served as a Special Assistant U.S. Attorney 2001 - 2003 and 2005 - 2007, returned to the Office in 2007, and became Deputy Chief of the Criminal Division in 2008. Before becoming an Assistant U.S. Attorney, Mr. Clymer was an Assistant District Attorney for the Commonwealth of Pennsylvania (Philadelphia County) 1983 - 1986.
Mr. Clymer’s notable cases have included prosecutions of: the LAPD police officers responsible for use of unlawful force when arresting Rodney King; two men who killed two DEA agents and wounded a third; a case arising from Operation Polar-Cap, the largest money-laundering investigation in United States history, resulting in the laundering of over $100 million per year of cocaine proceeds; two cases arising from multi-defendant conspiracy to smuggle in excess of 60 tons of Thai marijuana to the United States by use of large ocean-going vessels; a Syracuse area physician who was defrauding Medicare and private insurers by charging over $10,000 for patient physical examinations; a Syracuse heart surgery practice for filing false claims to Medicare about use of second physician in open heart surgeries; executives at two Central New York insurance companies in a scheme to defraud Medicare; and an Albany area pain management physician who submitted false claims to Medicare and private health insurance companies and had nurses illegally dispense prescriptions for schedule II controlled substances without physician involvement.
United States Attorneys serve as the nation's principal litigators, under the direction of the Attorney General and the U.S. Department of Justice. There is one United States Attorney for each judicial district in the United States and its territories. The primary statutory responsibilities of United States Attorneys are the prosecution of federal criminal cases, the prosecution and defense of civil cases in which the United States is a party, and the collection of debts owed the federal government which are administratively uncollectible. The U.S. Attorney’s Office for the Northern District of New York prosecutes about 500 criminal cases each year.
Richard S. Hartunian took office as United States Attorney on January 3, 2010. The other current leadership of the Office is:
First Assistant U.S. Attorney: Grant C. Jaquith
Chief, Criminal Division: Elizabeth C. Coombe
Chief, Appellate Division: Steven D. Clymer
Chief, Civil Division, and Chief, Albany Office: Thomas Spina, Jr.
Executive Assistant U.S. Attorney for Public and Community Affairs: John G. Duncan
Senior Litigation Counsel: Edward R. Broton
Chief, Syracuse Office and Project Safe Childhood Coordinator: Lisa M. Fletcher
Narcotics Chief and Lead Organized Crime Task Force Attorney: Daniel Hanlon
Deputy Chief, Civil Division: William F. LarkinThe Northern District of New York is comprised of thirty-two counties in upstate New York, covering an area of over 30,000 square miles that is home to about 3.4 million people. The United States Attorney has offices in Syracuse, Albany, Binghamton, and Plattsburgh.
Surgeon Pleads Guilty to Illegal Distribution of OxycodoneRead the Press Release
ALBANY, NEW YORK – JEFFREY GUNDEL, age 50, of Gansevoort, New York, pled guilty in Albany yesterday before United States District Judge Mae A. D’Agostino to one count of unlawful distribution of oxycodone, announced United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, Drug Enforcement Administration.
As part of his guilty plea, GUNDEL admitted that, between May 2011 and April 2014, he distributed at least 248 prescriptions for 240 30-milligram oxycodone tablets outside the course of professional practice and for no legitimate medical purpose. GUNDEL also admitted that he received cash kickbacks in exchange for the prescriptions. Sentencing is scheduled for April 2, 2014 in Albany, New York. GUNDEL faces a maximum term of imprisonment of 20 years, a $1,000,000 fine, and a term of supervised release.
This case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Wayne A. Myers.
Jury Convicts Syracuse Man of Drug and Gun OffensesRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian announces that SHAEEM GRADY(A/K/A SHAHEEM GRADY) was found guilty of three felony offenses following a three day jury trial in federal court in Syracuse: Possession with the Intent to Distribute Cocaine Base, in violation of Title 18, United States Code, Section 841(a)(1) and (b)(1)(C); Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, United States Code, Section 924(c)(1)(A); and Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1) and 924(a)(2). GRADY is facing a statutory mandatory minimum sentence of five years for the conviction of Possession of a Firearm in Furtherance of a Drug Trafficking Crime. He is also facing a maximum term of incarceration of twenty years for the Possession with Intent to Distribute Cocaine Base count, and a maximum term of incarceration of ten years for the Felon in Possession of a Firearm count. Grady will be sentenced in April 2015, before the Honorable Judge Frederick J. Scullin, Jr., in Syracuse, New York.
GRADY, 29, of Syracuse, was arrested on March 22, 2013, when police officers observed a baggie of crack cocaine in his lap as he sat in the passenger seat of a car that was illegally parked. Police attempted to place GRADY under arrest when he violently resisted while attempting to gain access to the center console of the vehicle. A Glock, model 19, 9 mm handgun with 7 rounds in the magazine was located in the center console. GRADY continued resisting and reaching for the console while simultaneously yelling to the driver of the vehicle to “pull off” while officers were located halfway inside the passenger doorway. Officers were able to take GRADY into custody and during a search incident to his arrest, recovered an additional baggie with cocaine residue, a steak knife from his front pants pocket, and $90.00. GRADY was prohibited from possessing a firearm due to a 2002 conviction for Criminal Possession of a Weapon in the Second Degree.
This prosecution resulted from an investigation conducted by the Syracuse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Geoffrey Brown. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Binghamton Area Physician Required to Pay Civil Penalty for Violations of the Federal Controlled Substances ActRead the Press Release
Broome County Ophthalmologist settles for $75,000.00
ALBANY, NEW YORK – United States Attorney Richard S. Hartunian announced his office reached a civil settlement with Dr. J. Louis Pecora, an Endicott, New York ophthalmologist, for $75,000.00. As part of the settlement, Dr. Pecora also voluntarily surrendered his Drug Enforcement Administration (DEA) numbers, which enables physicians to prescribe controlled substances. The settlement was in connection with violations of the Controlled Substances Act.
In August of 2012, DEA was notified that Dr. Pecora had made suspicious orders of hydrocodone. Thereafter, DEA and New York State Police investigators conducted an inspection of Dr. Pecora’s office and home and subsequently questioned him about controlled substances he purchased between January 18, 2010 and August 8, 2012. According to the complaint filed in connection with the settlement, Dr. Pecora ordered schedule III controlled substances on eighteen (18) occasions for personal use, between January 18, 2010 and August 8, 2012. More specifically, within this time period, Dr. Pecora ordered 3,800 tablets of Hydrocodone and 500 tablets of Vicodin ES, schedule III controlled substances, for personal use, without a medical purpose and outside the usual course of his professional practice. Pursuant to regulations, a prescription for a controlled substance to be effective must be issued for a legitimate medical purpose by an individual practitioner acting in the usual course of his or her professional practice. When Dr. Pecora ordered these controlled substances for his personal use, he did not meet these requirements. In addition, according to the complaint, Dr. Pecora refused or negligently failed to maintain a biennial inventory of controlled substances from January 18, 2010 to August 8, 2012. A biennial inventory of all controlled substances on hand is required by federal regulations.
The Controlled Substances Act was enacted to ensure that controlled substances are properly regulated and to help prevent drug diversion. Prescription drug abuse is a significant nationwide issue. According to U.S. Attorney Richard S. Hartunian, his office takes drug diversion very seriously and will aggressively pursue those who violate the Controlled Substances Act, especially if they are professionals in the medical field. "It simply is unacceptable for medical professionals to act irresponsibly when handling controlled substances. The potential for these substances to end up in the wrong hands is something we are not willing to risk, and we will take whatever steps are necessary to prevent this from happening."
Felon Convicted of Illegally Possessing Handgun and AmmunitionRead the Press Release
ALBANY, NEW YORK – A federal jury in Albany convicted VINCENT JACKSON, age 34, of Brooklyn and Albany, New York, today of illegally possessing a Diamondback DB-9 ninemillimeter pistol and 47 rounds of nine-millimeter ammunition after a four-day trial, announced United States Attorney Richard S. Hartunian and Acting Special Agent in Charge James S. Higgins of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
JACKSON faces a maximum sentence of imprisonment of ten years, a maximum fine of $250,000, and a three-year term of supervised release. JACKSON, who is held without bond, will be sentenced on April 1, 2015 by United States District Judge Mae A. D’Agostino.
The evidence presented at trial showed that JACKSON, a convicted felon, kept the fullyloaded DB-9 pistol and ammunition in his Albany apartment. JACKSON was on supervised release in connection with a prior federal drug felony when federal probation officers discovered the firearm and ammunition in JACKSON’s bedroom on September 11, 2013. Two cellular phones recovered from JACKSON’s bedroom, both used by JACKSON, contained photographs of the DB-9 pistol found in the bedroom, as well as text messages discussing the DB-9 pistol and other firearms.
This prosecution resulted from an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with the assistance of the Albany Police Department, and the United States Probation Office for the Northern District of New York. The case is being prosecuted by Assistant United States Attorney Wayne A. Myers.
Washington County Man Sentenced to 60 Months in Prison for Receiving Child PornographyRead the Press Release
Defendant Used his Computer and the Internet to Download and Save Dozens of Child Pornography Files
ALBANY, NEW YORK – TIMOTHY TEFFT, age 65, of Greenwich, New York was sentenced on November 25, 2014 to 60 months of imprisonment for receiving child pornography by Chief United States District Court Judge Gary L. Sharpe, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. TEFFT, who had entered a guilty plea on May 2, 2014, was also ordered to serve a fifteen year term of supervised release, to have no unsupervised contact with minors, and to register with the New York State Sex Offender Registry Program.
Between January 1, 2009 and May 3, 2011, TEFFT used a computer to access the Internet to download and save dozens of files that contained child pornography. TEFFT also transferred some of these child pornography files onto portable storage devices for viewing at a later time.
This case was investigated by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Rick Belliss.
Troy Man Sentenced to Five Years for Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – DANIEL J. KEMPROWSKI, age 26, of Troy, New York, was sentenced today to five years in prison for one count of receiving child pornography and three counts of possessing child pornography by Chief United States District Judge Gary L. Sharpe, 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. KEMPROWSKI must also serve a 20 year term of supervised release and register as a sex offender.
As part of his June 9, 2014 guilty plea, KEMPROWSKI admitted that from June 2010 through September 2012, he downloaded still images and videos of child pornography through a file sharing program. On September 6, 2012, an investigator accessed the file sharing network and downloaded four video files depicting child pornography from the defendant’s computer. On January 18, 2013, investigators searched KEMPROWSKI’s residence and recovered approximately 1,300 images and 185 videos depicting child pornography.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Troy Man Sentenced to 33 Months for Conspiring to Distribute Synthetic MarijuanaRead the Press Release
Received Packages of Synthetic Marijuana by Mail
ALBANY, NEW YORK – BAKHT KHAN, age 46, of Troy, New York, was sentenced today to 33 months in prison for conspiring to distribute synthetic marijuana, announced United States Attorney Richard S. Hartunian, Special Agent in Charge James J. Hunt, U.S. Drug Enforcement Administration, New York Field Division, Inspector in Charge Shelly Binkowski, U.S. Postal Inspection Service, Boston Division, and Rensselaer County Sheriff Jack Mahar.
KHAN was arrested in January 2013 after he received two boxes containing synthetic marijuana that were sent to him through the mail. As part of his July 28, 2014 guilty plea, KHAN admitted that he intended to distribute the synthetic marijuana to customers in Troy.
This case was investigated by the U.S. Drug Enforcement Administration, the U.S. Postal Inspection Service, and the Rensselaer County Sheriff’s Office, and was prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
New York City Lawyer Sentenced for Corruptly Obstructing the I. R. S.Read the Press Release
SYRACUSE, NEW YORK - Stanley L. Cohen, an attorney with offices on Avenue D, New York City and Jeffersonville, New York, was sentenced to 18 months imprisonment today by Senior U.S. District Court Judge Norman A. Mordue in United States District Court in Syracuse, according to United States Attorney Richard S. Hartunian. His sentencing followed his earlier guilty pleas to corruptly obstructing and impeding the Internal Revenue Service and failure to file tax returns. The court imposed a12 month term of incarceration for his failure to file federal tax returns, as well, directing that sentence to run concurrently with the 18 month term on his felony plea to corruptly obstructing and impeding the Internal Revenue Service. The court also directed Cohen to serve a one year term of supervised release following completion of his sentence of imprisonment. Cohen was also ordered to pay all federal and state taxes due and owing from the years 2005 through 2010. Cohen was ordered to report to the U.S. Marshal’s Service on January 6, 2015 to begin serving his sentence.
As part of a plea agreement, Cohen previously entered a guilty plea in the Northern District of New York to corruptly obstructing and impeding the Internal Revenue Service. He also pled guilty in the Southern District of New York to charges of failure to file federal tax returns for tax years 2006 and 2007. He has agreed to waive any appeal and collateral attack of his conviction.
This case followed a lengthy investigation by the Internal Revenue Service. It was ascertained that Cohen failed to file federal and state tax returns for the years 2005-2010. He would only file an extension to file his return and make a modest payment toward taxes owed during those years, but never followed through with a final tax return. In court, at the time of his guilty plea, the government revealed that its evidence would show that in the tax year 2004, the last year defendant file a tax return, he had claimed gross receipts of $289,000 when in fact investigators ascertained that he had deposits in excess of $426,000 for that year. In the course of the investigation judicially authorized search warrants were executed at Cohen’s law office on Avenue D in New York City and his home law office at a home he had in Jeffersonville, New York. Investigators found that essentially he kept no financial records regarding receipts of fees from clients. Investigators also found that he failed from 2005 to 2010 to file either a 1099 or W2 for a law office assistant who was paid for performing services for him during those years.
Additionally a search warrant was executed on a safe deposit box that Cohen maintained in a bank in Jeffersonville, New York. A search of that safe deposit box revealed that he had $50,000 in cash within the box. An additional $15,000 in U.S. currency and $1,800 in Canadian currency was recovered from a wall safe in his home. Official bank records revealed that Cohen accessed his safety deposit box 77 times from 2006 through 2008 and had made deposits of cash totaling approximately $504,000 at that bank from 2004 to 2008. Additional investigation revealed that approximately $183,500 of that amount was deposited by Cohen on days when he visited the safety deposit box shortly before or after making the deposit. Bank records also demonstrated that on many occasions, Cohen made multi thousand dollar cash deposits at the small bank in Jeffersonville and exchanged small bills for $100 bills.
Additional evidence developed during the investigation revealed that Cohen made deposits of cash to various financial accounts as follows:
In 2004 he made in excess of $194,000 in cash deposits, in 2005 more than $237,000, in 2006 more than $321,000, in 2007 more than $395,000, in 2008 more than $405,000, in 2009, after the execution of the referenced search warrants, he deposited more than $54,000 and in 2010 more than $147,000 in cash. Many of these deposits were made in amounts under $10,000, thus avoiding the filing of currency transaction reports required under the law.
Investigators also found that Cohen would cause wire transfers of cash to be made from clients, many of whom were on the Akwesasne Reservation to his accounts. These wire transfers made from a Speedway Convenience Store on the reservation through the Money Gram service totaled more than $643,000 between October 2004 and December of 2008.
The case was investigated by the Internal Revenue Service, Syracuse Criminal Investigation Section, Drug Enforcement Administration and the New York State Police. The case was prosecuted by Assistant United States Attorneys Stephen Green and John Duncan.
For further information please contact Assistant U.S. Attorney John Duncan at 315-448-0672.
U.S. Attorney Collects more than $44 Million in Civil and Criminal PenaltiesRead the Press Release
ALBANY, NEW YORK – Albany, NY - U.S. Attorney Richard S. Hartunian announced today that the U.S. Attorney’s Office for the Northern District of New York collected more than $44 million in civil and criminal penalties this past fiscal year. Of this amount, $17,655,763 was collected from criminal prosecutions and $2,319,703 was collected in civil cases in Fiscal Year 20141. Additionally, the U.S. Attorney’s Office, working in conjunction with other U.S. Attorney’s Offices and agencies in the Department of Justice, collected an additional $2,050,000 in civil cases.
On top of this amount, the U.S. Attorney’s Office worked with partner agencies to make substantial recoveries of money and forfeited assets. These typically represent proceeds of criminal conduct which can be forfeited under federal law. $22,034,435 was collected and deposited into the Department of Justice Assets Forfeiture Fund. These moneys are used to make restitution to crime victims and for a variety of other law enforcement purposes.
Nationally, Attorney General Eric Holder announced this morning that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
“This year’s collections far exceed last year’s amounts for our office,” said U.S. Attorney Richard S. Hartunian. “We have doubled our criminal, civil and administrative forfeitures over the past year. Additionally, approximately $15 million more was collected this year in criminal cases. These are ill-gotten funds and profits from criminal activities. We take great satisfaction in knowing we’ve taken them back from the hands of lawbreakers.”
Some notable cases in which funds were recovered by the U.S. Attorney’s Office during fiscal year 2014 include the following:
Forfeited bank accounts in illegal gambling business:
Forfeiture of nearly $10 million was ordered for the government in an illegal gambling business, run by multiple co-defendants2, which used internet websites that allowed bettors to place thousands of wagers from the Capital District, Florida, Indiana, California, Texas, and Nevada. The wager money was transferred to offshore accounts in Panama, Andorra, and the Cayman Islands, all of which were forfeited.
Forfeited property in bath salts case:
In February of this year, an RV and cash, together worth nearly $300,000, were among assets forfeited in the U.S. v John Tebbetts case which focused on the illegal distribution of bath salts.
Small Business Administration loan recovery:
A civil complaint was filed against Clifton Park LLC, and 3 individuals (Chetan Patel, Magan Patel, and Dalpat Patel) who were guarantors on an SBA loan for $ 1,367,000. The purpose of the loan was the purchase/rehab of a Comfort Inn in Clifton Park, NY. The complaint was settled for a total amount of $ 609,208.00 spread out over 8 months. To date, $442,104.00 has been collected.
Forfeited and returned artifacts:
Two Italian artifacts, the Attic Red-Figure Skyphos, valued at $35,000, and the Apulian Red-Figure Bell Krater, valued at $20,000, were subject to forfeiture pursuant to federal law which pertains to stolen, smuggled, and clandestinely imported or introduced merchandise. The two artifacts smuggled into the U.S. were forfeited and will be returned to the Italian Ministry of Cultural Heritage and Tourism.
Marketing of prescription drugs for unapproved uses:
The U.S. Attorney’s Office for the Northern District of New York, in conjunction with its colleagues in the Eastern District of Pennsylvania and at the Department of Justice, resolved criminal and civil investigations arising from Endo Pharmaceuticals’ marketing of the prescription drug Lidoderm for uses not approved as safe and effective by the Food and Drug Administration, including payment by Endo of $192.7 million. In a deferred prosecution agreement to resolve the criminal Information filed in the Northern District of New York, Endo admitted that it intended that Lidoderm be used for unapproved indications and that it promoted Lidoderm to health care providers for those unapproved indications, agreed to pay a total of $20.8 million in monetary penalties and forfeiture, and agreed to implement enhanced compliance measures. Endo also agreed to civil false claims settlements with the United States and the states totaling $171.9 million. This settlement emphasized that public health is protected by compliance with FDA’s drug approval process and requirement that product labeling be based on performance, rather than profitability.
Restitution secured through pension benefit:
On May 16, 2001, Paul Ryan was sentenced by U.S. District Judge Lawrence E. Kahn to pay restitution in the amount of $2,881,662.90 to Albany Savings Bank in connection with his securities fraud conviction covering the period of 1993-1998. During the course of the investigation it was discovered that the defendant was entitled to a 401(k) pension benefit distribution from Integra Networks, Inc. in the amount of $65,000. A Writ of Execution was issued on Integra Networks, Inc. on October 29, 2013. As a result, a check in the amount of $54,473.34 was issued to the United States District Court Clerk on November 5, 2013, which was applied to the court-ordered restitution. Efforts to enforce the remaining restitution continue.
Violations of the Recovery Act’s “Buy American” requirement:
The U.S. Attorney’s Office recently resolved, for $500,000, a case involving allegations that Jett Industries, a Colliersville-based general contractor, had falsely certified compliance with the American Recovery and Reinvestment Act’s “Buy American” provision. Jett purchased key project components in France, and then created and submitted paperwork in an effort to mislead the government into believing that the cheaper, French-made products were produced in the United States.
City acknowledges that it mismanaged federal funds:
Another recent case that involved a seven-figure monetary recovery, an admission of wrongdoing, and other forward-looking (non-monetary) components was a settlement reached last month with the City of New York. This settlement resolved allegations, brought to our attention by a whistleblower, that the New York City Human Resources Administration (HRA) violated the False Claims Act by causing various managed care organizations to provide health care coverage to individuals that HRA knew, or should have known, were ineligible to receive benefits through New York State’s Medicaid program. As part of the settlement, HRA accepted responsibility for failing to timely review and close Medicaid cases after being provided information that the beneficiaries moved outside of New York City, and it admitted that its inaction caused one or more MCOs to receive payments to insure individuals who were ineligible for benefits through New York State’s Medicaid program. HRA also agreed as part of the settlement to establish a process to investigate and close Medicaid cases whenever it learns that a beneficiary no longer resides within its coverage area.
Unlawful physician compensation arrangements:
A settlement was reached in August 2014 with the New York Heart Center. In that case, a group of upstate New York cardiologists agreed to pay $1.34 million to resolve allegations that its physicians’ compensation was determined using a formula that took into account the volume or value of each physician’s ordering of designated health services from other physicians in the practice, in violation of the Stark Law.
Attached is a chart showing how the Northern District of New York’s FY2014 $44,064,710 collections were distributed to the victims, government agencies serving the public and state and local law enforcement agencies.
All U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
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1 The federal fiscal year runs from October 1st to September 30th.
2 U.S. v. Any and All Funds on Deposit in Bank of America, N.A. in the name of Jay Goldman, et al case 1:13-CV-765, U.S. v. $65,000.00 in U.S. Currency case 1:13-CV-776, and U.S. v. Michelle Lasso case 1:13-CR-413
Mechanicville Man Pleads Guilty to Production of Child PornographyRead the Press Release
ALBANY, NEW YORK – ROBERT V. MCLAUGHLIN, age 57, of Mechanicville, New York, pled guilty today in Albany before United States District Judge Mae A. D’Agostino to two counts of production 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.
McLAUGHLIN faces at least15 years and up to 30 years of imprisonment on each count, as well as 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. McLAUGHLIN will be sentenced in Albany, New York on March 12, 2015.
As part of his guilty plea, McLAUGHLIN admitted 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.
This case was investigated by the New York State Police and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Lisa M. Fletcher and Special Assistant United States Attorney Amanda W. Cox.
Newburgh Man Sentenced to 37 Months for Tax FraudRead the Press Release
ALBANY, NEW YORK – On November 10, 2014, TOMAS BURGOS, age 45, of Newburgh, New York, was sentenced by the Honorable Gary L. Sharpe to 37 months in prison followed by three years of supervised release for filing a false claim with the Internal Revenue Service, announced United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Acting Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York Field Office. BURGOS was also ordered to pay restitution of $88,979.71. The sentence follows BURGOS’ July 7, 2014 guilty plea.
In connection with his guilty plea, BURGOS admitted that, on April 21, 2011, he submitted a fraudulent U.S. Income Tax Return for Estates and Trusts to the Internal Revenue Service. The return claimed, falsely, that the Tomas Burgos, Jr. Estate had received $900,000 in income for the 2010 tax year. In the return, BURGOS sought a refund of $300,000 from the Internal Revenue Service, based on the false claim that $300,000 of federal income tax was withheld from the $900,000 income. In fact, $300,000 of federal income tax had not been paid nor had $900,000 been received as income by the Tomas Burgos, Jr. Estate.
Special Agents with the Internal Revenue Service, Criminal Investigation Division investigated the case. The case was prosecuted by Assistant United States Attorneys Geoffrey J.L. Brown and Wayne A. Myers.
Leon and Duell Charged with Perjury in Schenectady Arson Homicide CaseRead the Press Release
ALBANY, NEW YORK – Edward A. Leon and Jennica Duell have been arrested and charged, in separate indictments, with making false declarations before a federal grand jury, announced United States Attorney Richard S. Hartunian and Acting Special Agent in Charge James S. Higgins of the Bureau of Alcohol, Tobacco, Firearms & Explosives. The indictments allege that the false declarations were made in testimony before a grand jury conducting an investigation into the fire on or about May 2, 2013 at 438 Hulett Street in Schenectady, New York that caused the deaths of David Terry and three young children, seriously injured another child, and destroyed the building and the personal property inside.
The indictment charging Duell alleges that she testified under oath before the federal grand jury on or about May 24, 2013 and on or about January 31, 2014 and knowingly made material declarations on each date which were irreconcilably contradictory and inconsistent to the degree that one of them was necessarily false. The indictment alleges that Duell’s testimony in May of 2013 included declarations about how the fire at 438 Hulett Street was started, and by whom, and how: 1) A man said that he could make it so Duell and him could be together forever; 2) She, the man, and others had traveled from Saratoga Springs to Schenectady, talking about how she was tired of being controlled by David Terry, a face to face confrontation was necessary, and she said to do it and get it over with; 3) They stopped to get gas along the way; 4) A man poured gas in the hallway and then lit the stairs by using a lighter and a cloth with gas on it; 5) She spoke about her babies and he said they would get out and not get hurt; 6) Before lighting the fire, he asked Duell if she wanted to be free, and she said she did; 7) She saw the flames and wanted to get in there, but he wouldn’t let her; and 8) He said her story should be that they were in Saratoga the whole night. The indictment further alleges that Duell’s testimony in January of 2014 included declarations that the May 2013 declarations were untrue, and that she and the others had stayed in Saratoga Springs the entire night of the fire, never traveling to Schenectady.
The indictment of Leon charges two counts of making false declarations before the grand jury in sworn testimony on November 22, 2013. Count One alleges that Leon testified falsely regarding his travel on May 2, 2013, alleging that he falsely testified that he had driven straight from the Cumberland Farms in Palatine Bridge to work in Amsterdam, New York, but that he had actually driven first to Schenectady, was there driving on Hamilton Street near its intersection with Hulett Street at about 4:19 a.m, and was in the area of 438 Hulett Street at the time of the fire. Count Two alleges that Leon testified falsely in denying that he had used a particular telephone to send text messages to David Terry, some of which were threatening, from April 25 – 29, 2013.
Leon, 42, of St. Johnsville, New York, and Duell, 26, of Schenectady, New York, both appeared today before U.S. Magistrate Judge Christian F. Hummel in U.S. District Court in Albany, New York. Leon waived a detention hearing and was detained pending trial or a later hearing request. Duell was detained pending a hearing scheduled for Wednesday, November 12, 2014 at 2:00 p.m. The indictments are merely accusations and the defendants are presumed innocent unless and until proven guilty in a court of law. If convicted, Duell faces a maximum sentence of imprisonment for five years, a $250,000 fine, and a term of supervised release of up to three years. Since Leon is charged with two counts, if convicted, he faces an aggregate maximum sentence of imprisonment for ten years, a $500,000 fine, and a term of supervised release up to five years.
United States Attorney Hartunian stated: “The constitutional requirement of indictment by a grand jury depends on the truthful testimony of witnesses. Perjury undermines the integrity of our judicial system and is particularly insidious when the underlying offense is one that resulted in the killing of a father and three young children and horrible injuries to a fourth child. This indictment alleges conduct designed to impede the investigation, but we remain resolute in our commitment to continuing the investigation until justice is done.”
The charges today resulted from an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives of the U.S. Department of Justice, the Schenectady Police Department, and the Schenectady Fire Department. The case is being prosecuted by First Assistant U. S. Attorney Grant C. Jaquith and Assistant United States AttorneyWayne A. Myers.
Further questions or inquiries may be directed to First Assistant U.S. Attorney Jaquith at 518-431-0247.
Troy Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
ALBANY, NEW YORK – On November 4, 2014, JAMES J. McGONIGLE, age 42, of Troy, New York, pled guilty in Albany before United States District Judge Mae A. D’Agostino to 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, who was detained pending his sentencing, faces at least five years of imprisonment and up to 40 years of imprisonment.
As part of his guilty plea, McGONIGLE admitted that he distributed videos of child pornography by e-mail. On March 11, 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. Sentencing is scheduled for March 4, 2015 at 12:30 p.m. in Albany, New York.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, with the assistance of the Colonie Police Department and the Rensselaer County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Georgia Couple Arraigned on Federal Methamphetamine ChargesRead the Press Release
Defendants Allegedly Conspired to Manufacture and Distribute Meth in
Clinton CountyPLATTSBURGH, NEW YORK – Billy Slick and Danielle Trombly Slick appeared in federal court in Plattsburgh, NY this morning and pleaded not guilty to charges related to the manufacture and distribution of methamphetamine, announced United States Attorney Richard S. Hartunian, Drug Enforcement Administration Special Agent in Charge James J. Hunt, and New York State Police Troop B Headquarters Bureau of Criminal Investigations Captain Robert S. LaFountain. The two-count indictment alleges that they conspired to manufacture, to possess with intent to distribute, and to distribute 50 grams or more of methamphetamine in Clinton County and elsewhere from approximately 2011 through June 2013. The indictment also charges Billy Slick with possession of methamphetamine with intent to distribute it. The defendants were detained pending trial, which is currently scheduled for January 5, 2014, in Syracuse, NY.
United States Attorney Richard Hartunian said, “The scourge of drugs like methamphetamine is devastating to individuals, their families and our neighborhoods. We continue to do everything possible to keep these drugs out of our communities. I commend the collaborative law enforcement efforts in this case.”
“Not only did law enforcement locate, arrest and bring back Mr. and Mrs. Slick to New York to face drug charges, they identified how the couple used the one-pot method to produce and distribute methamphetamine throughout the North Country,” stated DEA Special Agent in Charge James J. Hunt. “Simply put- methamphetamine use and production result in explosions, fires, hazardous waste, addiction and associated crimes. I would like to thank our federal, state and local law enforcement partners whose relentless efforts led to their arrest, extradition and arraignment.”
New York State Police Captain Robert LaFountain said, “The New York State Police extends our sincere gratitude to United States Attorney Richard Hartunian and our law enforcement partners for their efforts in this investigation. The Slicks' criminal manufacturing and distribution of methamphetamine in Clinton County resulted in numerous area residents becoming addicted to this devastating drug. This will hopefully send a clear message to drug dealers that law enforcement will work diligently to investigate and apprehend those that engage in this criminal behavior.” If convicted of Count 1, the conspiracy charge, the maximum penalties the Slicks each face include: a mandatory minimum term of imprisonment of 5 years; a maximum term of imprisonment of 20 years; a fine of $5,000,000; and up to lifetime supervised release. If convicted of Count 2, possession with the intent to distribute, the maximum penalties Billy Slick faces include: a term of imprisonment of 20 years; a $1,000,000 fine, and lifetime supervised release.
The case is being investigated by the Drug Enforcement Administration, New York State Police, the High Intensity Drug Trafficking Areas Program of New York and New Jersey, the Plattsburgh Police Department, the Clinton County District Attorney’s Office, and the Essex County District Attorney’s Office. Assistant United States Attorney Katherine Kopita is prosecuting the case.
All charges are merely accusations and all defendants are presumed innocent unless and until proven guilty in a court of law.
Ft. Lauderdale, Florida - Man Sentenced to Five Years Imprisonment, to be Followed by Three Years of Supervised Release. He was Ordered to Pay a Fine of $250,000 and Restitution of $8,204,328.49Read the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced today the sentencing of Walid Osmond Turk.
Turk, 41, formerly of Ft. Lauderdale, Florida, had pled guilty on April 30, 2014 to Conspiracy to Traffic in Counterfeit Goods. From 2003 through 2008, Turk imported millions of dollars worth of counterfeit exercise equipment from China which he sold on the internet representing it as genuine from such manufacturers as Nautilis, BowFlex and Fitness Quest. He had been an international fugitive since his indictment in May 2009. He surrendered to United States authorities in April 2014.
On November 5, 2014, Turk was sentenced to five years imprisonment, to be followed by three years of supervised release. He was ordered to pay a fine of $250,000 and restitution of $8,204,328.49.
The case was investigated by the United States Secret Service, Homeland Security Investigations and the United States Postal Inspection Service.
The case was prosecuted by Assistant United States Attorney Edward R. Broton
Oneida Resident Sentenced on Drug ChargesRead the Press Release
Sentenced on methamphetamine and pseudoephedrine charges
SYRACUSE, NEW YORK –Wanda Kingsley, age 49, of Florence, New York, was sentenced today by U.S. District Court judge Glenn T. Suddaby to 70 months imprisonment on jury on three felony counts, including a methamphetamine conspiracy involving the manufacture of 50 grams or more and a conspiracy to possess or distribute pseudoephedrine knowing it was intended to be used to manufacture a controlled substance - announced United States Attorney Richard S. Hartunian.
Following a three day jury trial in February, 2014, Kingsley and co-defendant Terry Ross, age 53, also of Florence, were convicted of a conspiracy to manufacture 50 grams or more of methamphetamine, in violation of Title 21, United States Code, Section 841(a)(1), (b)(1)(B) and 846, a conspiracy to possess or distribute pseudoephedrine knowing it was intended to be used to manufacture methamphetamine, in violation of Title 21, United States Code, Section 841(c)(1) and 846, and one count each of possessing or distributing pseudoephedrine knowing it was intended to be used to manufacture methamphetamine, in violation of Title 21, United States Code, Section 841(c)(1).
The evidence at trial showed that between 2010 and 2012, defendants Ross and Kingsley, individually and together with each other and with others, purchased pseudoephedrine pills from pharmacies in Oneida County, and knowingly provided the pills to other co-conspirators who used them on numerous occasions in the manufacture of methamphetamine. Between November 2010 and January 2012, Ross purchased pseudoephedrine pills on 21 separate occasions from Oneida county pharmacies, and Kingsley, at the time Ross’ live-in girlfriend, purchased pseudoephedrine pills on 49 separate occasions. Ross and Kingsley also assisted in the methamphetamine manufacturing process in various ways, including procuring and assembling some of the necessary ingredients and apparatus for the meth “cook,” and providing assistance during the cooking process, in exchange for a portion of the finished product methamphetamine.
Following her incarceration, Kingsley will be placed on supervised release for a period of 4 years. Previously, on June 17, 2014, Judge Suddaby sentenced Ross to a term of imprisonment of 108 month, followed by a term of supervised release of 4 years.
The prosecution arose from the investigative efforts of the City of Oneida Police Department, the New York State Police, and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Carl Eurenius. For more information, please contact AUSA Eurenius at (315) 448-0672.
Oneida County Man Charged with Obstructing the MailRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian announces that MICHAEL OLIVER, 34, of Waterville, New York, has been charged with two counts of obstructing the United States mail, in violation of 18 U.S.C. § 1701. The two-count Information filed by the United States Attorney’s Office charges Mr. Oliver, a former letter carrier, with obstructing and retarding the passage of mail by opening mail addressed to others and retaining the contents of that mail. If convicted, Mr. Oliver faces up to six months in prison.
An investigation by the U.S. Postal Inspection Service and the Office of Inspector General of the U.S. Postal Service is ongoing. The case is being prosecuted by Assistant United States Attorney Michael F. Perry.
For additional information, contact Executive Assistant U.S. Attorney John G. Duncan at 315- 448-0672.
The charges and allegations announced today are merely accusations, and the defendant is presumed innocent unless and until proven guilty.