Northern District of New York
Press releases recorded for this federal judicial district.
Terrell Wright Pleads Guilty to Multiple Charges for Pointing A Gun at Two Syracuse Gang Task Force DetectivesRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian, announces that TERRELL WRIGHT, age 29, of Syracuse, pled guilty today in U.S. District Court in Syracuse to the Indictment, which charged him with: (1) assaulting two detectives from the Syracuse Gang Violence Task Force (“GVTF”) (Count One); (2) use and carry of a handgun during the assault (Count Two); and (3) being a convicted felon in possession of a handgun (Count Three).
As part of his plea WRIGHT admitted the following facts:
On Tuesday, December 18, 2012, Syracuse Police detectives Melvin DeBottis and Timothy Galanaugh were both federally deputized members of the Syracuse Gang Violence Task Force ("GVTF"). At approximately 12:50 p.m. that day, while engaged in the performance of their official duties, DeBottis and Galanaugh were driving in a government-issued vehicle when they observed Person A, a suspected East Side gang member, walking westbound in the 1600 block of East Fayette Street in Syracuse, New York with his brother, the defendant. Because Person A was suspected of being involved in a shooting the night before, the detectives decided to stop and talk with him. As they were pulling their vehicle to the curb, they observed the defendant pull a small, black semi-automatic handgun from his waistband and point it at DeBottis and Galanaugh. DeBottis and Gallanaugh both drew their handguns as they got out of the car and advanced towards the defendant and Person A shouting "drop the gun." At that point, Person A was subdued and the defendant ran off. A chase ensued and the defendant was found hiding in a plastic deck box a few minutes later. The gun in question, a Glock model 27, .40 caliber handgun, with a laser sight, was recovered on the ground a few feet from where the defendant had pointed it at DeBottis and Galanaugh.
During his plea allocution, WRIGHT admitted under oath that he has never had a job and he made his money by selling drugs on the streets of Syracuse.
WRIGHT faces the following maximum penalties at sentencing, which is scheduled for March 10, 2014:
Count One: Up to 20 years imprisonment, followed by three years of supervised release, and up to a $250,000 fine;
Count Two: At least seven years imprisonment that must run consecutive to any sentence on Counts One and Three, followed by three years of supervised release, and up to a $250,000 fine;
Count Three: Up to 10 years imprisonment, followed by three years of supervised release, and up to a $250,000 fine;
WRIGHT acknowledged that he has two prior felony drug convictions and was currently on parole from the second conviction. Thus, he qualifies as a Career Offender under the federal sentencing guidelines and he will face greater punishment.
Further questions or inquiries may be directed to Assistant U.S. Attorney John M. Katko, who is prosecuting the case, at (315) 448-0916.
Tenth V-not Gang Member Pleads Guilty to Rico ConspiracyRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York, announces that NATE KING, age 23, of Syracuse, pled guilty this morning in U.S. District Court in Syracuse to an indictment which charged him and ten others with conspiring to exploit their membership in the V-NOT Gang to engage in a pattern of racketeering activity which included acts of murder, attempted murder, drug trafficking, and robbery. KING is the tenth defendant to plead guilty in this case.
The case against Kahari Smith, the sole remaining co-defendant, remains pending. King is presumed innocent until the case against him reaches its conclusion.
At sentencing, KING faces up to life imprisonment, a $250,000 fine, and five years of supervised release following any period of incarceration.
The Indictment to which KING pled alleges that from at least 2003 through May 2012 members of the V-Not Gang: (1) maintained a specific geographic territory within the City of Syracuse in which only gang members can sell crack cocaine and marijuana; (2) protected that exclusive crack distribution territory with violence; (3) obtained drugs from various suppliers; (4) projected a very violent attitude and responded to violence with violence in order to preserve their stature in the gang community; (5) used graffiti, hand signs, and tributes on their clothing to slain gang members to signify their gang membership; (6) used criteria such as a willingness to use violence, ability to sell drugs, and familial connections to determine membership; and (7) routinely carried and used firearms in connection with their gang activity.
There are multiple acts of violence and drug distribution set forth in the Indictment, including 1 murder, 10 other shootings, 8 other acts of gun possession, and 18 acts of crack distribution and/or possession with intent to distribute crack. With respect to the murder, the Indictment includes allegations that on November 26, 2010, gang member Kahari Smith shot and killed Kihary Blue on Interstate 81 in downtown Syracuse as part of an ongoing feud between the V-Not and Bricktown gangs.
The trial for Kahari Smith is set to commence on October 1, 2013, in Syracuse. However, a hearing has been scheduled for this afternoon at 3:30 p.m. in Syracuse before the Hon. Norman Mordue for a possible disposition of the case.
This prosecution resulted from a long-term investigation conducted by the Syracuse Gang Violence Task Force, which is comprised of agents and detectives from the following agencies: United States Department of Justice, Bureau of Alcohol, Tobacco, and Firearms (Syracuse Office), the Syracuse Police Department, the Onondaga County Sheriff's Department, the New York State Police, and the United States Marshals Service. The Onondaga County District Attorney’s Office and the Drug Enforcement Administration - Syracuse office, also assisted in the investigation.
Further questions or inquiries may be directed to Assistant U.S. Attorney John M. Katko, who is prosecuting the case, at (315) 448-0916.
Last V-not Gang Member Pleads Guilty to Rico Conspiracy and Admits to Murder of High School Basketball Star Kihary BlueRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York, announces that KAHARI SMITH, age 28, of Syracuse, pled guilty this morning in U.S. District Court in Syracuse to an indictment which charged him and ten others with conspiring to exploit their membership in the V-NOT Gang to engage in a pattern of racketeering activity which included acts of murder, attempted murder, drug trafficking, and robbery. SMITH is the last defendant to plead guilty in this eleven defendant case.
At sentencing, SMITH faces up to life imprisonment, a $250,000 fine, and five years of supervised release following any period of incarceration.
The Indictment to which SMITH pled alleges that from at least 2003 through May 2012 members of the V-Not Gang: (1) maintained a specific geographic territory within the City of Syracuse in which only gang members can sell crack cocaine and marijuana; (2) protected that exclusive crack distribution territory with violence; (3) obtained drugs from various suppliers; (4) projected a very violent attitude and responded to violence with violence in order to preserve their stature in the gang community; (5) used graffiti, hand signs, and tributes on their clothing to slain gang members to signify their gang membership; (6) used criteria such as a willingness to use violence, ability to sell drugs, and familial connections to determine membership; and (7) routinely carried and used firearms in connection with their gang activity.
There are multiple acts of violence and drug distribution set forth in the Indictment, including 1 murder, 10 other shootings, 8 other acts of gun possession, and 18 acts of crack distribution and/or possession with intent to distribute crack.
As part of his plea, SMITH admitted to multiple acts that he committed in furtherance of the gang’s activities, the most prominent of which was his intentional killing of Henninger High School basketball star Kihary Blue on November 26, 2010. In that incident, Smith shot and killed Kihary Blue on Interstate 81 in downtown Syracuse as part of an ongoing feud between the V-Not and Bricktown gangs. Co-defendant Habakkuk Nickens admitted in court earlier this week that he drove a vehicle into position on the highway so that SMITH could fire the deadly shots into the vehicle in which Blue was a passenger in the middle of the back seat.
Other acts SMITH admitted to included the following: (1) possessing crack cocaine and a starter pistol in the presence of co-defendants Titus Nickens, Dwayne Hester and Donald Johnson, Jr., on October 24, 2007; (2) possessing crack cocaine, marijuana and U.S. currency, along with co-defendants Jermeere McKinnon, Titus Nickens, Jeffrey Powell and others on November 7, 2007; (3) possessing crack cocaine and U.S. currency in the presence of co-defendant Donald Johnson, Jr., on March 23, 2009; (4) present with co-defendants Riadda Travet and Jeffrey Powell when Powell shot a rival gang member in the head on November 1, 2009; (5) participation, along with co-defendants Christopher Mike, Jeffrey Powell, Habakkuk Nickens, Titus Nickens, Kenneth Jackson, Dwayne Hester, and others, in a gang fight against Bricktown Gang members on October 23, 2010; (6) participation in a drive-by shooting of a rival gang member’s house, along with co-defendants Christopher Mike, Jeffrey Powell and Kenneth Jackson; and (7) shooting of Bricktown Gang member Jaycee Floyd on March 19, 2011.
U.S. Attorney Richard Hartunian stated: “This plea signifies the end of a very violent chapter in gang activity that plagued the Valley section of Syracuse for the better part of a decade. We are pleased to have brought to justice all these V-Not Gang defendants and to have solved a particularly brutal, tragic and senseless murder of an innocent young athlete named Kihary Blue who, by all accounts, was a fine, upstanding member of our community. Let this serve as yet another example of our relentless pursuit of gang activity in the City of Syracuse.”
This prosecution resulted from a long-term investigation conducted by the Syracuse Gang Violence Task Force, which is comprised of agents and detectives from the following agencies: United States Department of Justice, Bureau of Alcohol, Tobacco, and Firearms (Syracuse Office), the Syracuse Police Department, the Onondaga County Sheriff's Department, the New York State Police, and the United States Marshals Service. The Onondaga County District Attorney’s Office and the Drug Enforcement Administration - Syracuse office, also assisted in the investigation.
Further questions or inquiries may be directed to Assistant U.S. Attorney John M. Katko, who is prosecuting the case, at (315) 448-0916.
Kimber Sentenced to 14 Years in Prison for Chemical Weapon Attack at Albany Medical CenterRead the Press Release
SYRACUSE, NEW YORK - Richard S. Hartunian, United States Attorney for the Northern District of New York, announced today that Martin S. Kimber, 60, of Ruby, New York, was sentenced today by Senior U.S. District Judge Lawrence E. Kahn to 14 years in prison, 5 years supervised release thereafter, forfeiture of his home and car which were used to store the mercury, and $200,450.48 in restitution to the Albany Medical Center following his guilty plea to using a toxic chemical, mercury, as a weapon (counts one and two), and tampering with consumer products (count three) at the Albany Medical Center, in Albany, NY. Kimber admitted that on four occasions he spread mercury, a potentially fatal neurotoxin, throughout various areas of the Albany Medical Center in ways which could lead to inhalation or absorption of the mercury, to retaliate for what he thought were unfair hospital bills.
When Kimber entered his guilty plea on November 29, 2012 he admitted that:
On December 10, 2010 and December 23, 2010, he received medical treatment at the Albany Medical Center, Albany, New York. On various dates thereafter, including on January 24, 2011, he wrote to express concern about having to pay for his medical care. On February 22, 2011, the Albany Medical Center Associate Medical Director wrote back and explained why the bills were appropriate, and discussed the outcome associated with Kimber having provided inaccurate information about his injury, and his decision not to complete the care prescribed by his treating physician.
On March 28, 2011, April11, 2011, June 23, 2011, and March 2, 2012, patients, visitors, and hospital personnel discovered liquid mercury deposited in sundry locations throughout the Albany Medical Center. On March 28, 2011, mercury was found in the level D basement, the hallway outside the Post-Operative Care Unit, the Triage window in the Emergency Room, and in the tracks to the door of the center elevator for Building D. Hospital; emergency response units identified and collected several pounds of mercury. On April 11, 2011, mercury was found in the men's bathroom on the AI level and in the main hallway in Building E, extending from the M doors to the elevator lobby. Approximately one to two pounds of mercury was collected by emergency response personnel. On June 23, 2011, mercury was found on the pedestrian ramp leading from the main lobby up to the pedestrian parking garage bridge and in the E-1 corridor exiting the Choice Cafe and the center elevator of Building A elevator triplex. Approximately two pounds of mercury was collected. On March 2, 2012, mercury was found in the cafeteria at Albany Medical Center, in the salad bar, in an apple bowl, in a banana basket, in a toaster, on a table by the coffee station, in the cooler for the packaged salad dressing, in the ice cream freezer, and in a container of chicken tenders that were being warmed under heating lamps and were available for purchase and consumption by cafeteria customers.
Kimber admitted he was responsible for each of these mercury disposals, and for tampering with the described products, including the mercury, each item of food, and the restaurant equipment, to include salad, fruit, toaster, table, cooler, freezer, and heating lamps. The food products and food containers into and near which the defendant deposited mercury affected interstate commerce. Kimber further admitted his purpose in disposing of the mercury throughout the Albany Medical Center on multiple occasions was to cause panic at the hospital leading to the closing down of the facility by causing a loss of business when people became fearful of gaining treatment and eating there.
On March 29, 2012, a search by law enforcement officers revealed that Kimber possessed two canisters of mercury, one stored in his car and the other stored in his house. Both canisters of mercury were seized by the officers. An FBI search of his computer showed that he engaged in searches at sites where more mercury could be purchased.
Mercury is a well-documented hazardous substance. Among other things, mercury is a neurotoxin that can kill human nerve cells. Mercury is readily absorbed through unbroken skin. Inhalation and other forms of absorption can lead to death, brain and lung damage, impairment of speech, constriction of the visual field, hearing loss and somatosensory change, and other serious bodily injuries. Having been a licensed pharmacist for 36 years, Kimber well understood these dangers, and that the heating of mercury, including the placing of mercury on or in toasters, and on or around heated food, greatly increased the likelihood that mercury would vaporize into the air and be inhaled by individuals consuming such food or using or near such heating devices. As part of his sentence, Kimber was ordered to abandon his computer in which child pornography was found and further ordered to:
Pay restitution to the Albany Medical Center in the amount of $200,451.48;
Pay restitution in full to the United States for any expenses incurred incident to the seizure, storage, handling, transportation, and destruction of any property seized in connection with an investigation of his use of mercury as a chemical weapon;
Forfeit his residence at 8 Lena Lane, Ruby, New York; and
Forfeit his 2007 Pontiac Solstice.
Kimber was arrested on April 25, 2012, by Special Agents of the United States Environmental Protection Agency. On March 2, 2012, following a hearing, Kimber was detained as a danger to the community. He was ordered to remain in jail following imposition of sentence.
United States Attorney Hartunian said, “Congratulations and thank you to the Environmental Protection Agency, the Federal Bureau of Investigation, and the Food & Drug Administration-Office of Criminal Investigations, whose cooperative investigation quickly brought the defendant to justice for this very dangerous conduct; to the patients, visitors, and hospital personnel who discovered the mercury; and to the emergency response units who collected it. Their alertness and professionalism prevented the dire consequences that could have resulted from the defendant’s use of several pounds of mercury as a chemical weapon and contaminating food and food service items at a hospital.”
“There are honest accidents and there are clear cases of criminal conduct,” said Vernesa Jones-Allen, Special Agent in Charge of EPA’s Criminal Investigation Division in New York. “The defendant’s action threatened public health and safety and sent an innocent victim to the hospital. Today's sentence demonstrates that this kind of behavior will not be tolerated. EPA is encouraged by the level of partnership shown by the local, state and federal law enforcement agencies involved in this joint investigation.”
“The defendant demonstrated a disregard for the potentially life-threatening consequence of his actions and for the potential harm that he could have inflicted” said Special Agent in Charge Mark Dragonetti of the FDA’s Office of Criminal Investigations, New York Field Office. “We will continue to work with our law enforcement counterparts to aggressively pursue those who place the public health at risk and harm others by tampering with food, drugs or other FDA- regulated products.”
This case was investigated by Special Agents of the Environmental Protection Agency, the Federal Bureau of Investigation, and the Food & Drug Administration-Office of Criminal Investigations. Assistance has been provided by the Towns of Albany and Ulster Police Departments. The case was prosecuted by Assistant United States Attorney Craig Benedict, to whom questions may be directed at 315-448-0672 or cell phone 315-391-1110.
Greenwich Man Indicted on Child Pornography ChargesRead the Press Release
Alleged Possession of Three Thumb Drives Containing Child Pornography
ALBANY, NEW YORK — A grand jury returned an indictment charging TIMOTHY TEFFT, age 64, of Greenwich, New York, with three counts of possessing child pornography announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in- Charge, Federal Bureau of Investigation, Albany Division.1 TEFFT faces up to ten years of imprisonment and a maximum fine of $250,000 on each count.
TEFFT had his initial appearance and arraignment on the charges in Albany today before the Honorable Christian F. Hummel, United States Magistrate Judge. TEFFT was detained pending his trial which has been scheduled for November 18, 2013 at 9:30 a.m. before Chief United States District Court Judge Gary L. Sharpe.
According to the indictment, between January 1, 2010 and May 3, 2011, TEFFT possessed three thumb drives, each of which contained images of child pornography.
This case is being investigated by the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Rick Belliss.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources.”
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1The charge is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Maryland Man Convicted of Alien SmugglingRead the Press Release
ALBANY, NEW YORK – A federal jury in Albany returned its verdict following the two-day trial of GUILLERMO ANTONIO SUAREZ, 48, of Gaithersburg, Maryland, announced United States Attorney Richard S. Hartunian and Customs and Border Protection Director of Field Operations James T. Engleman. The jury found SUAREZ guilty of all three felony counts charged in the indictment: (1) alien smuggling, (2) attempting to transport an illegal alien, and (3) inducing an alien to illegally enter the United States. He faces up to 10 years in prison on the first count, up to 5 years in prison on the other two counts, a $250,000 fine on each count, and up to three years of supervised release. SUAREZ is scheduled to be sentenced on January 6, 2014, before the Honorable Thomas J. McAvoy, United States District Judge, in Albany, New York.
SUAREZ, a lawful permanent resident, was arrested on November 19, 2012, in Fort Covington, New York, after he helped his nephew, an alien, enter the United States from Canada outside a designated port of entry. SUAREZ dropped his nephew off on the Canadian side of the border and entered the United States through the Fort Covington port of entry by car while his nephew crossed the border through the woods, on foot, approximately three miles east of the port of entry. During inspection, Customs and Border Protection Officers found maps of the border and luggage belonging to SUAREZ’S nephew inside SUAREZ’S car.
This case was investigated by U.S. Customs and Border Protection and the U.S. Border Patrol. The case was prosecuted by Assistant United States Attorneys Jeffrey C. Coffman and Edward P. Grogan. Further questions may be directed to Assistant U.S. Attorney Elizabeth C. Coombe at (518) 431-0247.
Liverpool Woman Pleads to 11 Counts of Fraud and Identity TheftRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced today that Patricia Harrington, 50, of Liverpool, New York, entered guilty pleas in U.S. District Court, in Syracuse, to multiple counts of filing false federal tax returns, wire fraud and aggravated identity theft. Harrington faces a maximum sentence of 20 years and a fine of $250,000. Sentencing has been scheduled for January 29, 2014 in U.S. District Court. She has been ordered detained in the custody of the U.S. Marshal pending sentencing.
In entering her guilty pleas before the Hon. Glenn T. Suddaby, Harrington admitted that she filed six false federal tax returns under her own name and names of relatives, without their knowledge, for tax years 2010 and 2011. She wrongfully received almost $24,000 in tax refunds from the Internal Revenue Service over a two year period.
She also pled guilty to four counts of federal wire fraud in connection with another scheme she devised to obtain Unemployment Insurance benefits from the New York State Department of Labor. In implementing this scheme, she opened four separate accounts at various local banks, via the internet, using personal identification information taken from other individuals without their knowledge. She thereafter filed false unemployment benefits claims, via the internet, causing unemployment benefits to be deposited into the fraudulent bank accounts. Under this scheme, she netted almost $15,000 in New York State unemployment benefits.
Harrington also pled guilty to a single count of Aggravated Identity Theft admitting that she knowingly and wrongfully used the personal identification information of another person to carry out her wire fraud scheme. The aggravated identity theft conviction carries a mandatory sentence of two years incarceration consecutive to any other sentences imposed in the case.
At the time the current offenses were committed, Harrington was on federal supervised release following her 2008 conviction in Pennsylvania for Identity Theft that resulted from a scheme where she wrongfully obtained more than $100,000 in student loans from the Pennsylvania Higher Education Assistance Program.
This prosecution resulted from an investigation conducted by the Onondaga County Sheriff’s Department, the New York State Department of Labor, the Syracuse U.S. Probation Office, the Internal Revenue Service, Criminal Investigations, Syracuse Office, and the Onondaga County District Attorney’s Office. The case was prosecuted by Executive Assistant U.S. Attorney John G. Duncan. For further information contact Mr. Duncan at 315-448-0672.
Eighth V-not Gang Member Pleads Guilty to Rico ConspiracyRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York, announces that TITUS NICKENS, age 30, of Syracuse, pled guilty this morning in U.S. District Court in Syracuse to an indictment which charged him and ten others with conspiring to exploit their membership in the V-NOT Gang to engage in a pattern of racketeering activity which included acts of murder, attempted murder, drug trafficking, and robbery. NICKENS is the eighth defendant to plead guilty in this case. The case against three co-defendants remains pending.
At sentencing, NICKENS faces up to life imprisonment, a $250,000 fine, and three years of supervised release following any period of incarceration.
The Indictment to which NICKENS pled alleges that from at least 2003 through May 2012 members of the V-Not Gang: (1) maintained a specific geographic territory within the City of Syracuse in which only gang members can sell crack cocaine and marijuana; (2) protected that exclusive crack distribution territory with violence; (3) obtained drugs from various suppliers; (4) projected a very violent attitude and responded to violence with violence in order to preserve their stature in the gang community; (5) used graffiti, hand signs, and tributes on their clothing to slain gang members to signify their gang membership; (6) used criteria such as a willingness to use violence, ability to sell drugs, and familial connections to determine membership; and (7) routinely carried and used firearms in connection with their gang activity.
There are multiple acts of violence and drug distribution set forth in the Indictment, including 1 murder, 10 other shootings, 8 other acts of gun possession, and 18 acts of crack distribution and/or possession with intent to distribute crack. With respect to the murder, the Indictment includes allegations that on November 26, 2010, gang member Kahari Smith shot and killed Kihary Blue on Interstate 81 in downtown Syracuse as part of an ongoing feud between the V-Not and Bricktown gangs.
Trial for the remaining three defendants - Kahari Smith, Habakkuk Nickens and Nathan King - is set to commence on October 1, 2013, in Syracuse.
This prosecution resulted from a long-term investigation conducted by the Syracuse Gang Violence Task Force, which is comprised of agents and detectives from the following agencies: United States Department of Justice, Bureau of Alcohol, Tobacco, and Firearms (Syracuse Office), the Syracuse Police Department, the Onondaga County Sheriff's Department, the New York State Police, and the United States Marshals Service. The Onondaga County District Attorney’s Office and the Drug Enforcement Administration - Syracuse office, also assisted in the investigation.
Further questions or inquiries may be directed to Assistant U.S. Attorney John M. Katko, who is prosecuting the case, at (315) 374-3605.
Camillus Man Sentenced in Pipe Bomb CaseRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced today that a Camillus man has been sentenced for his role in building and possessing a pipe bomb.
MICHAEL LaVALLEE, age 22, was sentenced by Senior United States District Judge Norman A. Mordue in Syracuse. LaVALLEE was sentenced to 24 months imprisonment, and ordered to participate in substance abuse and mental health programs. LaVALLEE will also serve three years of supervised release following his release from incarceration.
MICHAEL LaVALLEE pled guilty on April 1, 2013 to unlawfully possessing an unregistered firearm, specifically, a pipe bomb wrapped with shrapnel. LaVALLEE admitted that on or about August 12, 2012, he possessed and stored in his apartment in Camillus a pipe bomb he had built. The pipe bomb was composed of a length of metal pipe sealed at each end, with one end containing a hole for a fuse and loaded with explosive material. The pipe bomb was surrounded by metal nails acting as shrapnel, which were wrapped around the device with duct tape. LaVALLEE further admitted that the device was not registered to him in the National Firearms Registration and Transfer Record.
The pipe bomb was discovered and rendered safe by law enforcement officers and bomb squad technicians.
The case was investigated by the Camillus Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. The case was prosecuted by Assistant United States Attorney Stephen C. Green.
Former Rennselaer Corrections Officer Pleads Guilty to FelonyRead the Press Release
Instructed Restaurant Employees to Make False Statements to Federal Agents
ALBANY, NEW YORK – Former Rennselaer County Jail Corrections Officer Mark A. Piche, 44, of Poestenkill, New York, pled guilty yesterday before Chief United States District Judge Gary L. Sharpe to corruptly endeavoring to obstruct the due administration of the internal revenue laws announced United States Attorney Richard S. Hartunian; Special Agent-in-Charge Toni M. Weirauch, Internal Revenue Service, Criminal Investigation, New York Field Office; and Lieutenant John D. Durling, Special Investigations Unit Albany, New York State Police. Sentencing is scheduled for January 6, 2014 at 11:00 a.m. Piche faces up to three years in prison, a $5,000 fine, one year of supervised release, and a $100 special assessment.
According to the plea agreement, between 2007 and 2011, Piche caused his restaurant, Red Front LLC in Troy, New York, to file false quarterly returns with the Internal Revenue Service. Those false returns underreported the Federal Insurance Contributions Act taxes owed by Red Front as follows: $4,460.64 in 2007, $4,469.28 in 2008, $5,704.07 in 2009, $7,873.80 in 2010, and $6,777.75 in 2011. In addition, after learning that he was a target of a federal investigation, from December 15, 2011 through June 20, 2012, Piche instructed Red Front employees to make false statements to Internal Revenue Service (“IRS”) Criminal Investigation Division special agents conducting the criminal investigation. Specifically, Piche instructed Red Front employees to state falsely that Red Front had accurately reported and withheld taxes due on its employees’ wages, when as he knew, Red Front had fraudulently underreported employee wages from 2007 through 2011. When Piche instructed Red Front employees to make these false statements, he was trying to prevent the IRS from obtaining evidence that Red Front had fraudulently underreported its employees’ wages on its quarterly returns.
This case was investigated by the Internal Revenue Service, Criminal Investigation and the Albany Special Investigations Unit of the New York State Police. This case is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Thirteen Arrested During Joint Investigation of Massena Cocaine and Heroin RingRead the Press Release
Investigation Yields Seizures of Cocaine, Crack, Heroin, and Weapons
MASSENA, NEW YORK - United States Attorney Richard S. Hartunian announced that law enforcement officers have arrested twelve individuals on federal drug trafficking charges. A superseding indictment charges the following people with conspiracy to distribute over 500 grams of cocaine, over 28 grams of cocaine base (crack), and heroin, in Franklin, St. Lawrence, and Clinton Counties:
Patrick Lloyd, aka “Problem,” 25, of New York City
Jessica Monaghan, 26, of Massena, New York
Codi Burke, 21, of Massena, New York
Michael Spencer, aka “Don,” 25, of New York City
Bernie Russo, 35, of Massena, New York
Kimberly Jandrew, 27, of Massena, New York
Justin Brailsford, 25, of Massena, New York
Jon Garcia, 22, of New York City
Zachary Huto, 21, of Massena, New York
Leslie Moore, 27, of Massena, New York
Paul Williams, aka “Cash,” 30, of Massena, New YorkLloyd, Garcia, and Williams are in custody on state charges. Monaghan, Burke, Spencer, Russo, Jandrew, Brailsford, Huto, and Moore were arrested this morning. A twelfth person is charged in the indictment but has not yet been arrested. Two others were arrested this morning and are being charged by federal criminal complaints with participating in the drug conspiracy. Four search warrants were executed in Massena today, resulting in seizures of handguns, cocaine, and heroin.
Brailsford and Garcia are also charged with possessing with intent to distribute cocaine and heroin on or about July 6, 2013, in Clinton County (Count 2). Williams is also charged with possessing with intent to distribute over 28 grams of cocaine base (crack) on or about August 8, 2013, in Clinton County (Count 3).
The charges contained in the indictment are merely accusations and the defendants are presumed innocent until and unless proven guilty.
If convicted, each defendant except Lloyd could face a mandatory minimum sentence of five (5) years imprisonment and a maximum sentence that includes imprisonment for forty (40) years and a $5,000,000 fine. The superseding indictment alleges that Lloyd has a prior drug felony conviction, so Lloyd faces a mandatory minimum sentence of imprisonment for ten (10) years and a maximum sentence that includes imprisonment for life and a $10,000,000 fine.
U.S. Attorney Hartunian said: “The St. Lawrence River Valley is the intersection of the front line for border security and the outer reach of big city drug suppliers who travel north seeking new and expanded markets. This case illustrates how vigilance and collaboration can combat threats to our communities, as a multitude of federal, state, local, and tribal agencies worked together to dismantle a ring that brought in and distributed cocaine, crack, and heroin, and employed firearms and violence. The success of our effort to preserve public safety and the idyllic charm of the area depends on our shared commitment to robust enforcement, deterrence, and prevention.”
“While the violence and street-level dealing that comes with drug trafficking are local crimes, the criminal networks behind them stretch to other cities, other states and other countries,” said James C. Spero, Special Agent-in-Charge of ICE Homeland Security Investigations (HSI) in Buffalo. “To effectively attack these networks takes a team effort. An outstanding team investigation by our Border Enforcement Security Task Force is what led to today’s arrests and is what will lead to the complete dismantling of these criminal organizations.”
St. Lawrence County District Attorney Nicole Duvé said: “Today is another important step in addressing the increasing presence of urban heroin and cocaine supply networks in northern St. Lawrence and Franklin Counties. The cooperative efforts of federal, state and local law enforcement agencies, together with assistance from local citizens are the key to reclaiming our communities. I encourage the public be vigilant and to continue to help law enforcement keep our neighborhoods and our children safe and drug free.”
Massena Police Chief Timmy J. Currier said: “Enforcement – specifically arresting and holding those responsible for trafficking and conspiring to provide their product – is important, but the truth is, there is a market for that product. There is a reason drug sales occur: we have people buying illegal drugs. We must continue to work hard to find ways to prevent our teenagers and young adults from becoming drug users, from improving parenting skills, increasing the life skills and decision-making of our children, and developing the economy in our area. Tackling this issue from every angle is our best chance at success.”
Franklin County District Attorney Derek Champagne said: “As District Attorney Duve and I discussed two weeks ago in Franklin County, these criminal groups have no boundaries and it is only through local, state and federal cooperation that we can make a difference and keep organized drug distribution networks out of the North Country. I cannot thank the US Attorney’s Office enough for their leadership in dismantling this group today.”
The investigation revealed that this organization obtained large quantities of cocaine, heroin, and crack from suppliers in New York City and used couriers to transport the drugs to Massena, where the organization’s distribution network sold ounce and gram quantities of the drugs to wholesale drug dealers and drug users in the area. Members of the organization engaged in acts of intimidation and violence.
Seizures by law enforcement officers during this investigation total about 380 grams of cocaine, about 377 grams of heroin, nearly 100 grams of crack, 5 handguns, and over $11,000 in cash.
The superseding indictment is the result of a year-long Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by Homeland Security Investigations (HSI), the Massena Police Department (MPD), the Saint Lawrence County Sheriff’s Office, and the New York State Police (NYSP). The District Attorneys of Clinton, Franklin, and St. Lawrence Counties, the Saint Regis Mohawk Tribal Police Department, the United States Customs and Border Protection Office of Air and Marine, the United States Customs and Border Protection Office of Field Operations, the Drug Enforcement Administration, the Potsdam Police Department, the Royal Canadian Mounted Police, the New York Attorney General’s Office, the Oneida Indian Nation Police, and the United States Border Patrol assisted in the investigation.
The United States is represented in this prosecution by Assistant U.S. Attorney Daniel C. Gardner and Assistant U.S. Attorney Katherine Kopita.
Andria March Sentenced in Syracuse to ProbationRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced the imposition of sentence in United States District Court in Syracuse on Andria March for the offense of bankruptcy fraud.
Andria March, 33, of North Tonawanda, NY pled guilty in April, 2013, to a single count of bankruptcy fraud, relating to a bankruptcy petition she had filed in the federal courts in Syracuse in 2009. Today in Syracuse, Senior District Judge Frederick J. Scullin sentenced the defendant to a term of probation of two years, and required her to perform 50 hours of community service as a condition of that probation.
As part of her plea, the defendant acknowledged that, in 2009 when she filed a bankruptcy petition in Syracuse, NY, she had intentionally failed to disclose money that she had used to purchase a pre-paid lease on a 2010 Mercedes Benz 300. Prior to sentencing, the defendant had paid into the bankruptcy court the money that she had previously failed to disclose.
This case is the result of an investigation by the Federal Bureau of Investigation in Syracuse, NY. Further questions or inquiries may be directed to Executive Assistant United States Attorney John Duncan, at (315) 448-0672.
Donna Schneeberger Sentenced in Utica to Probation and FineRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced the imposition of sentence in United States District Court in Utica on Donna Schneeberger for the offense of filing a false tax return.
Donna Schneeberger, 53, of Clayton, NY pled guilty in April, 2013, to a single count of subscribing and filing a false tax return, relating to income earned by her husband’s dental business. On September 4, 2013, District Judge David N. Hurd sentenced the defendant to a term of probation of three years and a fine of $25,000. Ms. Schneeberger admitted that the joint income tax return that she had signed and filed for tax year 2007 had failed to include income earned by the dental practice, for which she maintained the books and records. She admitted that between 2005 and 2007, she had failed to report over $700,000 in income, and the District Court found that she had deprived the United States of taxes in excess of $230,000.
The Court imposed a sentence of a fine and probation, stating its reliance, in part, upon its recognition of the defendant’s extensive civic contributions in Watertown and Clayton. The defendant, who prior to sentencing had paid the unreported taxes, was ordered by Judge Hurd to pay all interest and penalties resulting from the criminal behavior as part of her probation.
This case is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division in Syracuse, NY. Further questions or inquiries may be directed to Executive Assistant United States Attorney John Duncan, at (315) 448-0672.
Media AdvisoryRead the Press Release
PLATTSBURGH, NEW YORK - United States Attorney Richard S. Hartunian, the District Attorneys of Clinton, Franklin and St. Lawrence Counties, the Massena Police Department, the St. Lawrence County Sheriff’s Department, the Department of Homeland Security, the Saint Regis Mohawk Tribal Police Department, the New York State Police, the United States Customs and Border Protection Office of Air and Marine, the United States Customs and Border Protection Office of Field Operations, the Drug Enforcement Administration, the Royal Canadian Mounted Police, the New York Attorney General’s Office, the Oneida Indian Nation Police and the Customs and Border Protection United States Border Patrol will hold a press conference Thursday, September 5, 2013 at 2:00 p.m. at the Massena Town Hall, 60 Main Street, Room #30, Massena, New York to announce a significant north country law enforcement operation.
No further information will be available in advance of the press conference.
Mri Diagnostic Testing Company, Imagimed Llc, and Its Former Owners and Chief Radiologist to Pay $3.57 Million to Resolve False Claims Act AllegationsRead the Press Release
Performed MRI Scans Without Doctor Supervision
ALBANY, NEW YORK - United States Attorney Richard S. Hartunian announced that New York-based Imagimed LLC, the company’s former owners, William B. Wolf III and Dr. Timothy J. Greenan, and the company’s former chief radiologist, Dr. Steven Winter, will pay $3.57 million to resolve allegations that they submitted to federal healthcare programs false claims for magnetic resonance imaging (MRI) services. Imagimed owns and operates fifteen MRI facilities, located primarily in New York State, under the name “Open MRI.”
Allegedly, from July 1, 2001, through April 23, 2008, Imagimed, Greenan, Wolf and Winter submitted claims to Medicare, Medicaid and TRICARE for MRI scans performed with a contrast dye without the direct supervision of a qualified physician. Since a potential adverse side effect of contrast dye is anaphylactic shock, federal regulations require that a physician supervise the administration of contrast dye when it is used for an MRI. Also, allegedly, from July 1, 2005, to April 23, 2008, Imagimed, Greenan, Wolf and Winter submitted claims for services referred to Imagimed by physicians with whom Imagimed had improper financial relationships. In exchange for these referrals, Imagimed entered into sham on-call arrangements, provided pre-authorization services without charge and provided various gifts to certain referring physicians, in violation of the Stark Law and the Anti-Kickback Statute.
“The Department of Justice is committed to guarding against abuse of federal healthcare programs,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “We will help protect patients’ health by ensuring doctors who submit claims to federal healthcare programs follow proper safety precautions at all times.”
U.S. Attorney for the Northern District of New York, Richard S. Hartunian said: “This case is an example of our commitment to using all of the remedies available, including civil actions under the False Claims Act, to ensure patient safety and combat health care fraud. Stripping away the profit motive for circumventing physician supervision requirements has both a remedial and a deterrent effect. The settlement announced today advances our critical interest in both the integrity of our health care system and the safe delivery of medical services.”
The allegations resolved by the settlement were brought in a lawsuit filed under the False Claims Act’s whistleblower provisions, which permit private parties to sue for false claims on behalf of the government and to share in any recovery. The whistleblower in this case, Dr. Patrick Lynch, was a local radiologist and will receive $565,500.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $14.8 billion through False Claims Act cases, with more than $10.8 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York; the Justice Department’s Civil Division, Commercial Litigation Branch and the Department of Health and Human Services’ Office of Inspector General.
The case is United States of America ex rel. Lynch v. Imagimed LLC, et al. (N.D. N.Y.). The claims released by the settlement are allegations only, and there has been no determination of liability.
Hogansburg, New York - Woman pled guilty to participating in a conspiracy in 2009 and 2010 to smuggle over 18,000 endangered and threatened reptiles from the United States into Canada.Read the Press Release
Richard S. Hartunian, United States Attorney for the Northern District of New York, announced today that Olivia Terrance, 28, of Hogansburg, New York, pled guilty to participating in a conspiracy in 2009 and 2010 to smuggle over 18,000 endangered and threatened reptiles from the United States into Canada, in violation of Title 18 United States Code section 371. The Honorable Judge Norman A. Mordue sentenced Terrance to 18 months in jail to be followed by 3 years of supervised release.
Terrance smuggled turtles and reptiles worth hundreds of thousands of dollars into Canada where they were sold to retailers and collectors. She was caught when law enforcement followed her by car and helicopter after she received a shipment of wildlife and transported it by boat into Canada.
This case was investigated by Special Agents of the United States Fish & Wildlife Service, with assistance from the Department of Homeland Security, the Canadian Wildlife Service, the Royal Canadian Mounted Police, the Canada Border Services Agency, and the Mohawk Nation Tribal Police. The case was prosecuted by Assistant United States Attorney Craig A. Benedict. Questions may be directed to AUSA Benedict at 315-448-0726 or cell phone at 315-391-1110.Saratoga Man Pleads Guilty to Failing to Update His Sex Offender Registration InformationRead the Press Release
Defendant Moved from Elk City, Oklahoma to Saratoga Springs, New York without Properly Registering as a Sex Offender
ALBANY, NEW YORK — EUGENE PERIARD, age 34, of Saratoga Springs, New York, pled guilty today in Albany before Chief United States District Court Judge Gary L. Sharpe to one count of failing to update his sex offender registration information, announced United States Attorney Richard S. Hartunian and David McNulty, U.S. Marshal for the Northern District of New York. PERIARD faces a maximum sentence of ten years of imprisonment. PERIARD was detained pending his sentencing.
During the plea proceeding, PERIARD admitted that in 2007 he was convicted of a sex offense in the State of Oklahoma. PERIARD also admitted that in early April 2013 he moved from Elk City, Oklahoma to Saratoga Springs, New York and lived in Saratoga Springs until the time of his arrest on April 30, 2013. Records from the sex offender registries in Oklahoma and New York established that PERIARD did not update his change of address information in Oklahoma and did not register as a sex offender in New York.
Sentencing is scheduled for December 9, 2013, at 11 a.m. in Albany, New York. This case was investigated by the Saratoga Springs Police Department and the U.S. Marshals Service.
Former Lawyer Sentenced to Prison for Obstruction of JusticeRead the Press Release
Albany, New York – David A. Ehrlich, 38, of Cohoes, was sentenced today to be imprisoned for 12 months and 1 day upon his conviction for obstruction of justice, announced United States Attorney Richard S. Hartunian and Special Agent-in-Charge Andrew W. Vale of the Albany Division of the Federal Bureau of Investigation. Ehrlich, a former lawyer, pled guilty in March to obstructing justice in United States v. Joseph P. Brown, a criminal appeal before the United States Court of Appeals for the Second Circuit. Ehrlich admitted that he was paid $7500 to handle the Brown appeal, but prepared and provided to Brown’s wife a brief Ehrlich falsely represented had been filed, and later prepared and provided to Brown’s wife a document, dated May 13, 2008, that Ehrlich falsely represented to be the written decision of the Second Circuit Court of Appeals denying Brown's appeal.
Because no brief was filed, the Court of Appeals dismissed the appeal. When Brown found out he had been denied his right to pursue an appeal by Ehrlich's conduct, Brown prepared and filed motions for relief. There was litigation in both the U.S. District Court for the Northern District of New York and the Court of Appeals, and Brown was permitted to pursue his appeal. On January 12, 2010, the Court of Appeals actually decided Brown’s appeal, ordering a limited remand to the District Court to strike a special condition of Brown's supervised release, but otherwise affirming Brown's sentence. Meanwhile, the Albany Division of the Federal Bureau of Investigation conducted a thorough investigation into what had happened, revealing that Ehrlich had falsified the Court of Appeals decision and resulting in the charges in this case.
Ehrlich was directed to report on October 1st to the facility designated by the Bureau of Prisons to begin serving his term of imprisonment. When that is completed, Ehrlich will be on supervised release for 1 year. The sentence included restitution in the total amount of $8900, which Ehrlich had provided in advance of sentencing (comprised of the $7500 paid by the Browns and $1400 paid by two other clients whose cases were encompassed by Count 2 of the Indictment). In imposing the sentence, Chief U.S. District Judge Gary L. Sharpe cited the need for deterrence and the importance of maintaining public respect for our system of justice.
On April 22, 2010, Ehrlich was disbarred in New York by the Supreme Court, Appellate Division, Third Department, for professional misconduct, including “attempting to mislead and deceive his clients about the status of their cases and falsifying court documents.” Ehrlich also was disbarred by Florida, Massachusetts, and the U.S. Supreme Court.
First Assistant United States Attorney Grant Jaquith prosecuted the federal criminal case, and said: “The proper functioning of the system of laws that is the cornerstone of our democracy depends on the candor and ethics of our lawyers. Every lawyer knows that no case, client, or fee, no advantage in litigation, and no escape from a mistake or predicament justifies compromising your integrity. David Ehrlich’s falsification of a decision of the Court of Appeals victimized his clients and struck at the heart of the process for the fair administration of justice.” United States Attorney Hartunian thanked the Albany Division of the Federal Bureau of Investigation, the Committee on Professional Standards for the Third Judicial Department of the Appellate Division of the Supreme Court for the State of New York, and The Lawyers’ Fund for Client Protection of the State of New York for their vigilance and outstanding work to address Ehrlich’s conduct and restore fairness for his clients.
FBI Albany Special Agent in Charge Andrew W. Vale said "The FBI will continue to work with the United States Attorney's Office and our local partners to bring justice to those who seek to disregard and disrespect the very system to which they are pledged to honor and advance. Today's sentencing demonstrates that such disrespect of the judicial system will not be tolerated."
Utica Area Man Sentenced in Insurance Fraud CaseRead the Press Release
United States Attorney Richard S. Hartunian announced today that a Utica man has been sentenced for his role in an insurance fraud scheme.
DAVID MORGAN, age 55, Utica, NY, was sentenced by United States District Court Judge Norman A. Mordue in Syracuse. MORGAN was sentenced to 21 months imprisonment and ordered to pay restitution in an amount exceeding $1.4 million. MORGAN will also serve three years of supervision following his release from incarceration.
DAVID MORGAN pled guilty on July 31, 2012 to mail fraud. MORGAN admitted that in or about 2005 he agreed to assist other conspirators in an insurance fraud scheme. The scheme involved a staged motor vehicle accident on Harbor Lock Road in Utica on March 20, 2006. On that date, Joseph Dellerba and Cynthia Morgan, David’s wife, claimed to have been injured while passengers in a Ford van which was struck by a Ryder truck driven by Michael Matrulli. In fact, the collision was staged, and Dellerba and Morgan were not passengers at the time of the impact. Dellerba and Morgan claimed to have been injured as a result of the accident and submitted false insurance claims, including claims for personal injuries, no fault benefits and disability benefits. Dellerba and Morgan sought medical treatment for non-existent injuries or injuries that they claimed were the result of the collision. David Morgan and his wife subsequently initiated a civil lawsuit seeking a monetary recovery as a result of injuries suffered by Cynthia in the fictitious accident. That suit was settled with a payment of $30,000 to the Morgans.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division and the New York State Department of Financial Services, Criminal Investigations Unit. The case was prosecuted by Assistant United States Attorney Edward R. Broton.
Oneida, New York - Man sentenced to 217 months imprisonment, to be followed by a three year term of supervised release.Read the Press Release
United States Attorney Richard S. Hartunian announced today the sentencing of an Oneida area man on charges of arson and insurance fraud.
JEFFREY E. TRUMAN, SR., 55, formerly of Oneida, New York, appeared for sentencing today in federal court in Syracuse on charges of aiding and abetting an arson, two counts of mail fraud, and one count of using fire to commit a federal felony. The charges stem from a fire that destroyed the former Oneida Casket Company Factory building in Oneida. In November 2005, TRUMAN, along with two partners purchased the vacant factory buildings for $175,000. On November 12, 2006, five days before an insurance policy was to lapse, the buildings were destroyed by fire. Subsequently, TRUMAN submitted an insurance claim for $4,178,500 in fire related losses. A subsequent investigation determined that the fire had been intentionally set by TRUMAN’s son, Jeffrey Truman, Jr. On November 3, 2010, a jury found that TRUMAN, SR. had aided and abetted his son in committing the arson and subsequently attempted to defraud Erie Insurance Company in submission of his fire claim.
United States District Court Judge Norman A. Mordue sentenced TRUMAN to 217 months imprisonment, to be followed by a three year term of supervised release. TRUMAN was also ordered to make restitution to Erie Insurance Company in the amount of $548,406.55.
Benjamin M. Lawsky, Superintendent of Financial Services, said: “The reckless scheme orchestrated by the defendant placed scores of innocent people in harm’s way and could well have resulted in a horrific tragedy. I commend the Oneida Police Department for their collaboration with DFS on the case and thank the U.S. Attorney’s Office’s efforts to bring the case to a successful conclusion culminating in today’s sentencing.”
The case was investigated by the Oneida City Police Department, the Federal Bureau of Investigation, the Madison County Sheriff’s Department, the New York State Police, the Financial Frauds and Consumer Protection Division of the New York State Department of Financial Services, and, the Oneida Fire Department Cause and Origin Team. The case was prosecuted by Assistant United States Attorney Edward R. Broton and Gwendolyn E. Carroll.
Rochester Man Pleads Guilty to Attempting to Produce Child PornographyRead the Press Release
Defendant Attempted to Produce Sexually Explicit Videos of a Twelve-Year-Old Girl
ALBANY, NEW YORK — JASON FRANK, age 27, of Rochester, New York, pled guilty today in Albany before Chief United States District Court Judge Gary L. Sharpe to one count of attempted production of child pornography, announced United States Attorney Richard S. Hartunian and Joseph D’Amico, Superintendent of the New York State Police. FRANK faces a mandatory minimum sentence of at least fifteen years of imprisonment and up to a maximum sentence of thirty years of imprisonment. FRANK was detained pending his sentencing.
Pursuant to a written plea agreement, FRANK admitted that in February 2013 he began chatting online with what he believed was a twelve-year-old girl located in Albany, New York. The girl was actually an undercover investigator with the New York State Police. The online chat sessions quickly became sexual and over a span of approximately two months FRANK sent the girl still images and videos of child pornography in an effort to convince her to meet with him at a Syracuse hotel in order to film a sexual encounter with FRANK. On April 9, 2013, FRANK arrived at a hotel in Syracuse expecting to meet the twelve-year-old girl and engage in sexual acts with the girl. Instead, FRANK was arrested by the New York State Police. At the time of FRANK’s arrest, he was in possession of a digital camera with video recording capabilities and a thumb drive that contained still images and video of child pornography.
Sentencing is scheduled for November 27, 2013, at 9:00 a.m. in Albany, New York. This case was investigated by the New York State Police.
Mayfield Men Charged with Production of Child PornographyRead the Press Release
Defendants Produced Sexually Explicit Images of Seven-Year-Old Child
ALBANY, NEW YORK — United States Attorney Richard S. Hartunian, Matthew Scarpino, Resident Agent in Charge, Homeland Security Investigations, and Captain Timothy Munro, New York State Police Troop G, Bureau of Criminal Investigation, announce the filing of two criminal complaints charging RICHARD HASTINGS, age 21, and ROBERT HASTINGS, age 18, of Mayfield, New York, with production of child pornography.1 The defendants are brothers who live together. If found guilty of production of child pornography, each of the defendants faces a statutory minimum of at least fifteen years of imprisonment and up to a maximum sentence of thirty years of imprisonment, and a maximum fine of $250,000. The defendants had their initial appearances in Albany on August 8, 2013 before United States Magistrate Judge Randolph F. Treece. Both defendants were detained. They will have detention hearings on August 9, 2013 at 1:30 p.m.
According to the complaints:
Between July 27, 2013 and July 29, 2013, RICHARD HASTINGS produced sexually explicit photographs of a seven-year-old child, posted some of those photographs on a website, and e-mailed some of them to an undercover investigator with Queensland (Australia) Police
Services. In addition, on August 2, 2013, his brother, ROBERT HASTINGS, produced a sexually explicit video of the child.
This case is being investigated by Homeland Security Investigations and the New York State Police. This case is being prosecuted by Assistant United States Attorney Sean O’Dowd.
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1The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
Founders of Mcginn, Smith & Co. Inc. SentencedRead the Press Release
McGinn Will Serve 15 Years in Prison and Smith Will Serve 10 Years
UTICA, NEW YORK - Timothy M. McGinn and David L. Smith, former owners of the Albany broker-dealer McGinn, Smith & Co., Inc. were sentenced today, in United States District Court in Utica, to significant terms of imprisonment, announced United States Attorney Richard S. Hartunian, Toni M. Weirauch, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York Field Office, and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. McGinn was sentenced to serve 15 years in federal prison and to pay a $100,000 fine. Smith was sentenced to serve 10 years in federal prison and to pay a $50,000 fine. The defendants were convicted of conspiracy to commit mail and wire fraud, mail fraud, wire fraud, securities fraud, and filing false tax returns in February 2013, following a five-week jury trial. In addition to the prison terms and fines, U.S. District Judge David N. Hurd ordered $6,336,440 in forfeiture, a total of $5,992,800 in restitution, and 3 years of supervised release.
In sentencing McGinn, Judge Hurd said that what caused McGinn’s downfall was his arrogance in conducting business without regard for the law or the rules as long as he made money for himself and his favorite clients. In sentencing Smith, Judge Hurd said that Smith had led an impressive life and had an impressive family and friends, but what caused Smith’s downfall was going along with McGinn when he knew that what they were doing was wrong. Judge Hurd remanded both McGinn and Smith to custody to begin serving their sentences.
U.S. Attorney Hartunian said:
“As the stories told by the victims during the sentencing hearings today made clear, nothing can ever undo the terrible harm Timothy M. McGinn and David L. Smith inflicted on investors. Through false representations and material omissions, McGinn and Smith obtained investors’ hard-earned money and used it as their own. They covered their tracks by directing the creation of false accounting entries and the movement of money among accounts, and by misleading regulators. Their longstanding personal enrichment plan defrauded 841 victims of $30 million, leaving many investors devastated. The sentences imposed today send a strong message to those entrusted with investor funds that fraudulent business practices and tax cheating will not be tolerated. During the past three years, my office has charged ten people with investor fraud resulting in $64.2 million of loss to 1,676 victims. The eight defendants convicted to date were sentenced to more than 60 years in federal prison. These cases reflect our longstanding commitment to combating the corruption of the financial marketplace that shatters lives and undermines our economy. We will continue to work with all of our law enforcement partners to identify, investigate, and vigorously prosecute investor fraud cases. We are grateful for the dedication and thoroughness of IRS Criminal Investigations and the FBI in McGinn Smith and other investor fraud cases.”
Special Agent-in-Charge Weirauch stated, “In many ways, this investigation was all about trust: the trust investors place in their investment professionals and the trust that taxpayers have that their tax system will ensure that everyone pays their fair share. The defendants have now learned the cost of violating these trusts. Furthermore, today’s sentences and the earlier trial convictions will send strong messages to those who think about doing the same.”
Special Agent-in-Charge Vale stated, “We will continue to work with our partners to investigate investment fraud schemes. The resolution of this case was the direct result of outstanding teamwork between the U.S. Attorney’s Office, the Internal Revenue Service and the FBI.”
Six victims spoke at the sentencing hearings today, telling the Court that their losses represented life savings that they needed for living expenses, the support of their families, and their retirement.
According to the superseding indictment, the purpose of the conspiracy was to mislead investors and the Financial Industry Regulatory Authority, Inc. ("FINRA") regarding the safekeeping and use of investor money raised by 17 trusts, one corporation, and other entities; the risks of the trust offerings; the performance of the underlying income streams; the source of investor payments; and the improper diversion of investor money in order to obtain money from investors and enrich themselves. As a result of the defendant's conduct, the investors were not aware that the defendants had diverted approximately $4.1 million in connection with transactions related to the trusts for their own benefit and the benefit of another person.
The superseding indictment also alleged that, as part of the conspiracy, the defendants improperly diverted nearly $1 million; directed false accounting entries regarding those transactions in response to a document request from the broker-dealer's regulator, FINRA; and caused the false accounting entries to be submitted to FINRA. The alleged improper diversions fell into two categories: (a) the improper diversion of more than $473,000 of investor money from an escrow account to pay preferred clients who had unrelated investments (between May 15, 2008 and July 8, 2009); and (b) the improper diversion of $525,000 from bank accounts for three unrelated investments to pay the broker-dealer's employees (between November 14, 2008 and April 15, 2009). The superseding indictment also alleged that the defendants improperly used a corporation to conceal and disguise the true nature of the payroll diversions by passing the money from the three unrelated investments through that corporation and then to the broker-dealer. Finally, the superseding indictment alleged that the defendants misled FINRA about the preferred client diversions and the payroll diversions by (a) directing the creation of false accounting entries to conceal the true nature of these transactions in response to a document request from FINRA; and (b) causing the submission of these false accounting entries to FINRA.
Both McGinn and Smith were convicted on Counts 21 through 26 (securities fraud), which relate to the failure to disclose improperly diverted fees to investors in violation of federal securities laws. Counts 21 and 22 relate to $100,000 in fees paid in connection with TDM Verifier Trust 08, and Counts 23 through 26 relate to approximately $855,000 in fees paid in connection with Fortress Trust 08. All of these transaction fees were paid with investor money.
McGinn and Smith were also both convicted on the tax charges arising from their failure to declare the improperly diverted money on their personal tax returns for tax years 2006 through 2008 (Counts 27-29 for McGinn and Counts 30-32 for Smith). McGinn and Smith later described the money as "loans," but did not list them as such on personal financial statements. When FINRA discovered the false loan accounting entries for the diverted money, the defendants misled FINRA by directing the creation of backdated promissory notes.
Both McGinn and Smith were convicted on Count 10, and McGinn was convicted of Counts 4 through 6 and 11 through 13. Those mail and wire fraud counts relate to the Firstline Series B Trusts, which raised money from investors in connection with a loan of $2.4 million to Firstline Security, Inc., a company that generated alarm contracts. The superseding indictment alleged that the defendants did not tell investors when Firstline filed for bankruptcy and defaulted on loans. In addition, their firm sold approximately $600,000 of one of the Firstline investments without any disclosure of the bankruptcy or defaults. McGinn directed that investors receive $2 million of lulling payments by transferring money from other entities controlled by McGinn and Smith.
McGinn and Smith were both convicted on Count 14, and McGinn was convicted on Count 7. Those mail and wire fraud counts relate to the Integrated Excellence Trusts, for which the defendants raised about $1.2 million from investors in connection with a loan to benefit Integrated Excellence, Inc., which generated alarm contracts. The superseding indictment alleged that the defendants knew that the payments received from the loan were not sufficient to pay investors, but McGinn directed that investors receive lulling payments by transferring money from other entities controlled by McGinn and Smith.
McGinn and Smith were both convicted of Counts 8 and 9. Those mail fraud counts related to the improper diversion of investor money from an escrow account to pay preferred clients who had unrelated investments.
McGinn was also convicted on Counts 15 and 16. Those counts involved the diversion of approximately $142,000 of investor money from an escrow account to make payments to investors in other trusts.
Both McGinn and Smith were convicted on Count 17, which involved $35,000 Smith took directly from an escrow account holding investor funds for Integrated Excellence Sr. Trust 08. McGinn was convicted on Counts 18, 19, 20 which involved approximately $310,000 that McGinn took directly from escrow accounts holding investor funds.
This case was investigated by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation, and prosecuted by Assistant United States Attorneys Elizabeth C. Coombe, Richard D. Belliss, and Wayne A. Myers.
This case was brought in connection with President Barack Obama’s Financial Fraud Task Force, which was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes and hold accountable those who helped bring about the last financial crisis. With more than 20 federal agencies, 94 U.S. Attorney’s Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
LOCAL CONTACT:
Elizabeth C. Coombe
Assistant U.S. Attorney
Tel: (518) 431-0247Press Conference in Utica to follow the last sentencing in the McGinn Smith caseRead the Press Release
ALBANY, NY- Defendants Timothy M. McGinn and David L. Smith will be sentenced on Wednesday, August 7, 2013. McGinn will be sentenced at 10 am; Smith will be sentenced at 2 pm. Both sentencings will take place before United States District Judge David N. Hurd at the Alexander Pimie Federal Building, 10 Broad Street, Utica, New York.
A press conference will be held following the 2 pm sentencing in the Bankruptcy Hearing Room on the first floor of the Alexander Pirnie Federal Building, 10 Broad Street, Utica, NY 13501.
Pennsylvania Man Convicted of Attempted Enticement of A MinorRead the Press Release
ALBANY, NEW YORK - United States Attorney Richard S. Hartunian announced that, following a jury trial, WILLIAM KEITH JAMIESON, (52, of Lancaster, PA) was found guilty in U.S. District Court in Albany, N.Y. of the felony offense of Attempted Enticement of a Minor, in violation of Title 18, United States Code, Section 2422(b). JAMIESON is facing a statutory mandatory minimum sentence of 10 years and a maximum sentence of up to life imprisonment, a term of supervised release of at least five years and up to lifetime supervision, a maximum fine of $250,000.00 and mandatory registration as a sex offender. JAMIESON is scheduled to be sentenced on November 26, 2013, before Chief Judge Gary L. Sharpe, in Albany, New York.
JAMIESON was arrested on July 2, 2012, at Congress Park in Saratoga Springs, New York, having traveled to the park to meet “Kara,” a teenage girl he met online and had been communicating with for four and a half months via internet chat relay, Yahoo!, and Skype. In reality, “Kara” was a female Saratoga Springs Police Investigator who was working undercover pretending to be a 14 year old girl in chat rooms policing for internet child predators. JAMIESON met “Kara” in the “dad&daughtersex” chat room. In the online communications, JAMIESON was repeatedly told “Kara’s” age was 14, and JAMIESON told “Kara” that he would travel to Saratoga Springs, rent a hotel room, and have sex with her in the hotel room. On July 2, 2012, JAMIESON rented a motel room near Congress Park, walked to a prearranged meeting spot, and instead of finding “Kara,” he met with an arrest team from the Albany Child Exploitation Task Force, including officers from the Saratoga Springs Police Department and the Rensselaer County Sheriff’s Office. A search of JAMIESON’s motel room revealed condoms, computer equipment, a camera, and a bottle of nail polish that he promised to bring as a present for “Kara.”
This prosecution resulted from an investigation conducted by the Federal Bureau of Investigation, Albany, N.Y., the Saratoga Springs Police Department, and the Rensselaer County Sheriff’s Office, as part of the Albany Child Exploitation Task Force. The case was prosecuted by Assistant United States Attorney Tamara B. Thomson. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Court of Appeals Denies Joseph L. Bruno’s Interlocutory AppealRead the Press Release
Former New York State Senate Majority Leader Will Face Retrial
ALBANY, NEW YORK - In an opinion issued today in United States v. Joseph L. Bruno, the United States Court of Appeals for the Second Circuit affirmed Chief U.S. District Judge Gary L. Sharpe’s decision to deny Bruno’s motion to dismiss the superseding indictment on double jeopardy grounds. The opinion clears the path for trial, and Chief Judge Sharpe has scheduled a status hearing on August 13th at 3:00 p.m.
In December of 2009, a jury convicted the former majority leader of the New York State Senate of two counts of honest services fraud. Then, in 2010, the United States Supreme Court decided United States v. Skilling, holding that the honest services statute criminalizes only fraudulent schemes involving bribes or kickbacks. In light of Skilling, Bruno’s conviction was vacated, but (on November 16, 2011) the Court of Appeals held that the Double Jeopardy Clause of the Fifth Amendment did not bar retrial of Bruno on an indictment that charged honest services fraud based a bribery or kickback theory because the evidence presented at trial was sufficient for a reasonable jury to find that Bruno accepted “payments that were intended to and did influence his conduct as a public official,” and that “Bruno’s actions deprived New York citizens of his honest services as a New York senator under the standard announced in Skilling.” After a federal grand jury returned a superseding indictment on May 3, 2013, Bruno filed a motion to dismiss the indictment on double jeopardy grounds. Chief Judge Sharpe denied the motion, and Bruno filed the interlocutory appeal denied today.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Elizabeth C. Coombe and William C. Pericak. United States Attorney Richard S. Hartunian announced that, consistent with the decision by the Court of Appeals, the U.S. Attorney’s Office will seek resolution of this case by trial as soon as possible.
Niskayuna Man Sentenced for Receiving Child PornographyRead the Press Release
Defendant Who Received Thousands of Still Images and Videos of Child Pornography Sentenced to 96 Months in Prison
ALBANY, NEW YORK — RONALD J. LOVETT, age 67, of Niskayuna, New York, was sentenced today by United States District Court Judge Mae A. D’Agostino, in Albany to ninety-six (96) months of imprisonment for receiving child pornography images, announced United States Attorney Richard S. Hartunian and Matthew Scarpino, Resident Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations. LOVETT, who had entered a guilty plea on March 20, 2013, was also ordered to pay a fine of $17,500.00, to pay restitution totaling $5,661.83, to have no unsupervised contact with minors, and to register with the New York State Sex Offender Registry Program.
Between May 2007 and February 10, 2012, LOVETT used the Internet to access various child pornography websites and various file sharing networks. While accessing some of the child pornography websites or file sharing networks, LOVETT downloaded multiple still images and videos of child pornography onto his home computer, thumb drives, and external hard drives.
This case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations.
Three Defendants Charged with Federal Crimes in Sex Trafficking of A Child InvestigationRead the Press Release
Defendants Face Imprisonment terms of 10 years to Life
BINGHAMTON, NEW YORK - United States Attorney Richard S. Hartunian announced that Lynette Tilden, Edward Tilden, and Alexandria Samson Davall, all from Utica, New York, were arrested by the FBI and charged by a federal felony complaint with three federal offenses in connection to a joint federal and state investigation concerning a prostitution ring engaged in the sex trafficking of a minor. Defendants appeared in federal court in Syracuse, New York on July 16, 2013 and were remanded to the custody of the U.S. Marshal’s Service pending further proceedings.
The federal charges stem from an investigation conducted by the FBI-Albany Division, New York State Police, Oneida County District Attorney’s Office, Utica Police Department, and the Oneida County Child Advocacy Center. The investigation concerned a prostitution ring involved in selling a minor to engage in sexual conduct in exchange for money and drugs. The prostitution ring utilized the website backpage.com to advertise the prostitution. The ring also utilized a texting network to advertise their prostitution business. In addition to the three defendants named above and being charged with federal crimes, the Oneida County District Attorney has charged several other defendants with state crimes in connection to this overall joint investigation. The investigation is continuing.
Defendants Lynette Tilden, Edward Tilden, and Alexandria Samson Davall have been charged with the following three federal offenses and face the following possible penalties if convicted:
1)[Sex Trafficking Of A Child]
In and about February of 2012, in the Northern District of New York and elsewhere, defendants Lynette Tilden, Edward Tilden, Alexandria Samson Davall, and others, while aiding and abetting each other, while in and affecting interstate commerce, did knowingly recruit, entice, harbor, transport, provide, obtain and maintain by any means a person, or benefit, financially or by receiving anything of value, from participation in a venture which engaged in any such act, where the person had not attained the age of 18 years at the time, knowing that the person would be caused to engage in a commercial sex act.
In violation of Title 18, United States Code, Sections 1591(a) & (b) and Section 2. Potential Penalties: Statutory Mandatory Minimum 10 years prison and a Maximum of Life. Maximum possible Fine of $250,000.
2)[Persuading And Inducing A Child To Engage In Prostitution]
In and about February of 2012, in the Northern District of New York and elsewhere, defendants Lynette Tilden, Edward Tilden, Alexandria Samson Davall, and others, while aiding and abetting each other, while using any facility or means of interstate commerce, did knowingly persuade, induce, entice, and coerce an individual who had not attained the age of 18 years to engage in prostitution.
In violation of Title 18, United States Code, Section 2422(b) and Section 2.
Potential Penalties: Statutory Mandatory Minimum 10 years prison and a Maximum of Life. Maximum possible Fine of $250,000.
3)(Distribution Of Heroin And Cocaine To A Minor)
In and about February of 2012, in the Northern District of New York and elsewhere, defendants Lynette Tilden, Edward Tilden, and Alexandria Samson Davall, while aiding and abetting each other and who were at least 18 years of age at the time, knowingly and intentionally distributed a controlled substance to a person under 21 years of age, and more specifically a person who was 16 years of age at the time, in violation of Title 21, United States Code, Section 841(a)(1) and Title 18, United States Code, Section 2. That violation involved heroin and cocaine, Schedule I and II controlled substances, respectfully, in violation of Title 21, United States Code, Section 859(a).
Potential Penalties: Statutory Mandatory Minimum 1 year prison and a Maximum of 40 years. Maximum possible Fine of $1,000,000.
Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in court.
Syracuse, New York - Upstate Laboratories, Inc., pled guilty to one count of felony mail fraud related to the falsification of over 3,300 laboratory results from 2008 through 2010.Read the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced today that Upstate Laboratories, Inc., 6034 Corporate Drive, East Syracuse, New York pled guilty before Judge Glenn T. Suddaby to one count of felony mail fraud related to the falsification of over 3,300 laboratory results from 2008 through 2010.
As set forth in the plea agreement and charge, Upstate Laboratories has been a certified laboratory in the business of performing chemical analysis of water and soil samples supplied by public and private clients. Samples for which chemical degradation was an issue required Upstate Laboratories to perform analysis within specified time-frames (“holding times”) after the samples were obtained. Upstate Laboratories further promised to utilize required procedures to ensure that the samples did not degrade.
For samples that required a prompt turnaround time, Upstate Laboratories charged a fee greater than for samples that did not. For all samples, Upstate Laboratories represented to clients that analysis would be and was performed in accordance with required analysis standards. Upstate Laboratories submitted invoices for its analysis and was paid through use of the United States mail.
Notwithstanding representations of proper and timely sample analysis, from 2008 through 2010 Upstate Laboratories engaged in the routine “backdating” of samples results where employees changed the dates when the samples were analyzed to make it appear that analysis had occurred within the required time periods when in fact they had not. Upstate Laboratories thereafter prepared false and fraudulent analysis reports representing that samples were properly analyzed within required time frames and that the results were valid when they were not. During the course of the scheme to defraud, Upstate Laboratories falsified results and mailed fraudulent results to clients including the following:
CLIENT NAME
1. Village of Moravia, NY
1. Two Guys From Italy Pizza Restaurant, West Monroe, NY
2. Town of Camillus, NY
3. Steuben County, NY – Division of Solid Waste
4. Oswego County, NY – Department of Health
5. Oswego County, NY – Department of Solid Waste
6. Cortland County, NY – Soil and Water Conservation District
7. Liquid Products, LLC, Waterloo, NY
8. Hanson Aggregates New York, LLC, Poland, NY
9. Casella Waste Systems via On-Site Technical Services, Wellsville, NY
10. A & P Water Testing, Morrisville, NY
11. Wolcott Landfill, Wolcott, NY
12. New York State Department of Transportation – Region 7
13. Hannibal Hills Trailer Park, Hannibal, NY
14. Ontario County, NY - Recycling and Landfill Management
15. Fulton County, NY - Department of Solid Waste
16. Barton and Loguidice, Liverpool, NY
17. Oswego Heat Treating, Inc – Oswego, NY
18. Town of Oswego, Oswego, NY
19. Agro-Farm, Inc, Norwich, NY
20. Tri-Boro Municipal Authority, Susquehanna, PA
21. Village of Endicott, NY – Waste Water Treatment Plant
22. Sullivan County, NY – Department of Public Works
23. Fagan Engineers via Franklin County, NY
24. Applied Testing and Geosciences, Bridgeport, PA
25. City of Tonawanda, NY
26. Oneida – Herkimer Solid Waste Authority, Utica, NY
27. Town of Lumberland, NY
28. Madison County, NY – Department of Solid Waste
29. Kerry Bio-Science, Rochester, MN
30. Ameresco, Inc, Various locations throughout United StatesUpstate Laboratories has agreed to pay to the United States a criminal fine of $150,000, but that from this total, the amount up to the entire fine shall be suspended on the condition that it be paid at the date of imposition of sentence to victims identified in this plea agreement or identified by the Court as entitled to restitution. Nothing about the possible suspension of the criminal fine sets a maximum amount of restitution that must be paid. Rather, Upstate Laboratories must pay all restitution to victims as determined by the Court, even if the amount exceeds $150,000.
Also pursuant to the plea, Upstate Laboratories will be placed on a term of probation for five years. As part of its probation, Upstate Laboratories will be required to develop, fund and implement a comprehensive Environmental Compliance Plan ("ECP") to prevent future violations. Finally, Upstate Laboratories is not permitted to seek or take a tax deduction for any monies paid as a fine.
Sentencing has been set for December 4, 2013.
This case was investigated by Special Agents of the Environmental Protection Agency, Office of Inspector General and Criminal Investigation Divisions. The case is being prosecuted by Assistant United States Attorney Craig Benedict. Questions may be directed to AUSA Benedict at 315-448-0726 or cell phone 315-391-1110.
Rexford Woman Sentenced to Five Years Probation for Harboring an Illegal AlienRead the Press Release
Albany, New York — Annie George, a/k/a Annie Kolath, a/k/a Sajimol George, age 41, of Rexford, New York, was sentenced today by Chief United States District Court Judge Gary L. Sharpe to five years of probation for harboring an illegal alien, announced United States Attorney Richard S. Hartunian and Matthew Scarpino, Resident Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations. George, who was found guilty on March 8, 2013 of one count of harboring an illegal alien following a five-day jury trial, was also sentenced to eight months of home detention.
Between about November 2005 and May 3, 2011, George harbored an illegal alien from India in her homes in Catskill, Menands, and Rexford, New York. During the course of the harboring, the illegal alien performed household chores for George and cared for George’s children.
This case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations.
LOCAL CONTACT:
Rick Belliss
Assistant U.S. Attorney
Tel: (518) 431-0247Dominican Republic Man Pleads Guilty to Re-entering the United States After Having Been Previously DeportedRead the Press Release
Albany, New York —HERMIS ANTONIO ADAMES, age 35, a citizen of the Dominican Republic, pled guilty today in United States District Court in Albany before Chief United States District Court Judge Gary L. Sharpe to one count of re-entry by a previously removed alien, announced United States Attorney Richard S. Hartunian.
ADAMES, a citizen of the Dominican Republic, was involuntarily removed from the United States to the Dominican Republic on May 6, 2009. On April 3, 2013, ADAMES, who did not have permission to re-enter the United States, was encountered by Immigration and Customs Enforcement officers near the bus station on Central Avenue in Albany.
Sentencing is scheduled for November 6, 2013, at 11:00 a.m. in Albany, New York. ADAMES faces a maximum sentence of imprisonment of up to ten years, supervised release of up to three years, a fine of up to $250,000, and a special assessment of $100. ADAMES was detained pending his sentencing.
This case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement (ICE), Albany, New York.
LOCAL CONTACT:
Rick Belliss
Assistant U.S. Attorney
Tel: (518) 431-0247Last Two Bricktown Gang Members Plead GuiltyRead the Press Release
As Part of these Pleas:
Saquan Evans Admits to Killing 20 Month Old Child, Shooting Four People, Gun Possessions and Possessing Substantial Gang Paraphernalia
Ernest Hester Admits to a Shooting, Gun Possessions and a Gang Assault at a Denny’s Restaurant in SyracuseSYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announces that SAQUAN EVANS, age 23, and ERNEST HESTER, age 24, both residents of Syracuse, pled guilty today in U.S. District Court in Syracuse to an indictment which charged them and 12 others with conspiring to exploit their membership in the Bricktown Gang to engage in a pattern of racketeering activity which included multiple acts of murder, drug trafficking, and robbery. All fourteen defendants have now guilty in this matter.
As part of their pleas, EVANS and HESTER admitted that the Bricktown Gang has operated within the City of Syracuse from at least 2000 through the present and that members of the Bricktown Gang: (1) maintain a specific geographic territory within the City of Syracuse in which only gang members can sell crack cocaine, cocaine and marijuana; (2) protect that exclusive crack distribution territory with violence if necessary; (3) obtain drugs from suppliers in New York City and elsewhere; (4) project a very violent attitude and respond to violence with violence in order to preserve their stature in the gang community; (5) on occasion use hand signs, wear blue colored bandanas and have tattoos, all of which are intended to signify their gang membership; (6) use criteria such as willingness to use violence, ability to sell drugs, and familial connections to determine membership; and (7) routinely carry and use firearms in connection with their gang activity.
EVANS also admitted as part of his plea that he: (1) possessed a handgun in the 200 Block of Oakwood Avenue on March 4, 2006; (2) was involved in a shooting in the vicinity of 1300 South State Street on November 7, 2006; (3) jointly possessed a 9 mm handgun along with several co-defendants, including ERNEST HESTER, in the 200 block of Baker Avenue on November 15, 2006; (4) shot four rival gang members as they sat at a table playing cards at 321 Shirley Drive on November 7, 2012; (5) shot and killed 20 month old Rashad Walker, Jr., while intending to kill a rival gang member, on November 28, 2010; and (6) possessed substantial gang paraphernalia including a detailed gang roster, writings, drawings, photos, rap lyrics and clothing.
HESTER also admitted as part of his plea that he: (1) along with a co-defendant, shot at three people in the 500 block of West Colvin Street on April 2, 2005; (2) possessed ten bags of crack cocaine after being shot in the 100 block of Beard Avenue on October 19, 2006; (3) jointly possessed a 9 mm handgun, as noted above, that occurred on November 15, 2006; (4) jointly possessed a .45 caliber handgun and a 9 mm handgun, along with multiple co-defendants, while together in a vehicle at 1400 Erie Blvd. West on December 13, 2008; and (5) actively participated in the stabbing of four persons inside a Denny’s restaurant on Erie Blvd East on January 30, 2011.
Both EVANS and HESTER are scheduled to be sentenced in December, 2013. Each faces up to life imprisonment, a $250,000 fine, and up to five years of supervised release following any period of incarceration.
This prosecution resulted from a long-term investigation conducted by the Syracuse Gang Violence Task Force, which is comprised of agents and detectives from the following agencies: United States Department of Justice, Bureau of Alcohol, Tobacco, and Firearms (Syracuse Office), the Syracuse Police Department, the Onondaga County Sheriff's Department, the New York State Troopers, and the United States Marshals Service. The Onondaga County District Attorney’s Office also assisted in the investigation.
Further questions or inquiries may be directed to Assistant U.S. Attorney, John M. Katko, who is handling the case, at (315) 448-0672.
Bricktown Gang Member Pleads GuiltyRead the Press Release
As Part of Plea Jarrell Williams Admits to Previously Unsolved Homicide
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announces that JARRELL WILLIAMS, age 22, of Syracuse, pled guilty today in U.S. District Court in Syracuse to an indictment which charged him and 13 others with conspiring to exploit their membership in the Bricktown Gang to engage in a pattern of racketeering activity which included multiple acts of murder, drug trafficking, and robbery. Eleven other defendants have already pled guilty and the charges against two others remain pending.
As part of his plea WILLIAMS admitted that the Bricktown Gang has operated within the City of Syracuse from at least 2000 through the present and that members of the Bricktown Gang: (1) maintain a specific geographic territory within the City of Syracuse in which only gang members can sell crack cocaine, cocaine and marijuana; (2) protect that exclusive crack distribution territory with violence if necessary; (3) obtain drugs from suppliers in New York City and elsewhere; (4) project a very violent attitude and respond to violence with violence in order to preserve their stature in the gang community; (5) on occasion use hand signs, wear blue colored bandanas and have tattoos, all of which are intended to signify their gang membership; (6) use criteria such as willingness to use violence, ability to sell drugs, and familial connections to determine membership; and (7) routinely carry and use firearms in connection with their gang activity.
WILLIAMS also admitted as part of his plea that he possessed handguns on a regular basis during the relevant time period. He also admitted that: (1) on September 4, 2007 he shot a rival gang member in the back in the 1000 block of Cannon Street; and (2) later that same evening he killed Anthony Ford and wounded a female victim in the head by firing several shots from a handgun at them. The Ford homicide was heretofore unsolved.
WILLIAMS is scheduled to be sentenced on October 30, 2013. He faces up to life imprisonment, a $250,000 fine, and up to five years of supervised release following any period of incarceration.
This prosecution resulted from a long-term investigation conducted by the Syracuse Gang Violence Task Force, which is comprised of agents and detectives from the following agencies: United States Department of Justice, Bureau of Alcohol, Tobacco, and Firearms (Syracuse Office), the Syracuse Police Department, the Onondaga County Sheriff's Department, the New York State Troopers, and the United States Marshals Service. The Onondaga County District Attorney’s Office also assisted in the investigation.
Further questions or inquiries may be directed to Assistant U.S. Attorney, John M. Katko, who is handling the case, at (315) 448-0672.
Oswego County Man Sentenced in Listed Chemical CaseRead the Press Release
SYRACUSE, NEW YORK – Cy D. Rayder, age 29, of Williamstown, New York, was sentenced today by the Hon. Frederick J. Scullen to a term of thirty-six months imprisonment for his guilty plea to possessing and distributing a listed chemical, pseudoephedrine, knowing it was intended to be used to manufacture methamphetamine. Between September and December, 2011, Rayder purchased pseudoephedrine pills from pharmacies in Oswego, Oneida, and Jefferson counties, which pills he provided to another individual who, in turn, used the pills to manufacture methamphetamine. In return for the pills, Rayder received finished product methamphetamine, which he ingested. Eventually, Rayder learned how to manufacture methamphetamine himself, and thereafter used the pills he purchased to manufacture methamphetamine. Rayder knew there were restrictions on the sale of pseudoephedrine, and that the sales were documented by the pharmacies, so, to avoid scrutiny, Rayder on occasion purchased pseudoephedrine from different stores on the same day. On fourteen separate occasions between September and December of 2011, Rayder purchased pseudoephedrine pills with an aggregate weight of 33.6 grams of pseudoephedrine from Oswego, Oneida, and Jefferson county pharmacies, knowing at all times the pills he purchased were intended to be used in, and were in fact used in the manufacture of methamphetamine.
After he finishes his sentence of incarceration, Rayder will thereafter be placed on supervised release for a period of three years. Rayder was also ordered to pay a special assessment of $100.
The Rayder case was investigated by the New York State Police and the Syracuse Drug Enforcement Agency.
The case was prosecuted by Assistant U.S. Attorney Carl G. Eurenius, who can be reached at 448-0672.
Clayton, New York - Man indicted for making false statements, possession and use of an altered Merchant Marine License, fraud in connection with identification documents, and aggravated Identity theft.Read the Press Release
Richard S. Hartunian, United States Attorney for the Northern District of New York, announced today that Mark Anselm, 37, of Clayton, N.Y., was indicted by a federal grand jury on twelve counts for making false statements to Coast Guard and Department of Homeland Security officials (counts 1-3), possession and use of an altered Merchant Marine License (counts 4-7), fraud in connection with identification documents (count 8), and aggravated Identity theft (counts 9-12), in violation of 18 U.S.C. §§ 1001, 2197, 1028(a)(6) and 1028A. If convicted, Anselm faces a maximum possible penalty of fifty-three years in prison and a three million dollar fine.
Anselm is charged with having held himself out to federal officials, to various marina owners, and to other potential employers as a licensed commercial ship pilot when in fact he possesses no such license. He is charged with having repeatedly presented a falsified merchant marine license that Anselm altered to substitute his name. On June 19, 2012 Anselm piloted a commercial tug boat on Lake Ontario which he grounded. A follow-up investigation revealed numerous instances of Anselm holding himself out as a licensed commercial merchant marine captain.
An Indictment is a mere allegation of wrongdoing. All individuals are presumed innocent until and unless convicted beyond a reasonable doubt in a court of law.
This case was investigated by Special Agents of the Coast Guard and Department of Homeland Security. Prosecution is being handled by Assistant United States Attorney Craig A. Benedict. Mr. Benedict may be contacted for questions regarding this case at 315-448-0726.
Capital District Men Charged in Conspiracy to Provide Material Support to TerroristsRead the Press Release
Scheme included creation of a remotely operated X-ray radiation emitting device designed to kill humans silently
ALBANY, NEW YORK - United States Attorney Richard S. Hartunian and Special Agent in Charge Andrew Vale of the Federal Bureau of Investigation, Albany Division, today announced that Glendon Scott Crawford, age 49, of Galway, New York and Eric J. Feight, age 54, of Hudson, New York have been arrested and charged with conspiracy to provide material support to terrorists in violation of 18 U.S.C. § 2339A. The arrests followed a lengthy investigation by the Albany FBI Joint Terrorism Task Force that began in April 2012 when authorities received information that Crawford had approached local Jewish organizations seeking out individuals who might offer assistance in helping him with a type of technology that could be used against people he perceived as enemies of Israel. If convicted, each faces a maximum sentence of fifteen years imprisonment, a $250,000 fine and a term of supervised release up to five years following any period of incarceration.
Crawford and Feight are scheduled to appear today at 1:30pm before Magistrate Judge Christian F. Hummel in U.S. District Court in Albany, New York.
As charged in a Complaint1 filed in U.S. District Court in Albany, the essence of the defendants’ scheme was the creation of a mobile, remotely operated, radiation emitting device capable of killing targeted individuals silently with lethal doses of X-ray radiation. The defendants plotted to use this device against unwitting victims who would not immediately be aware that they had absorbed lethal doses of radiation, the harmful effects of which would only appear days after the exposure. This was an undercover investigation and, unbeknownst to the defendants, the device that the defendants designed and intended to use was rendered inoperable at all times and posed no danger to the public.
United States Attorney Richard S. Hartunian stated, “This case demonstrates how we must remain vigilant to detect and stop potential terrorists, who so often harbor hatred toward people they deem undesirable. We give special thanks to those who quickly alerted law enforcement authorities to this devious plan. I also commend the members of the Albany FBI Joint Terrorism Task Force for their unwavering commitment over the past 14 months to uncover the details of this plot, before anyone could be harmed bringing about today’s arrests.”
Special Agent in Charge Andrew Vale stated, “I would like to thank all members of our Joint Terrorism Task Force for their continued commitment in ensuring the safety of our community against all threats. It is the obligation of the FBI and our law enforcement partners to protect the public when individuals create plans to commit violent acts such as those charged today. I would like to stress that operations to thwart violent plots are only successful with the cooperation of members of the public and with collaboration among federal, state and local agencies.”
New York State Police Superintendent Joseph A. D’Amico said, “The interception of this alleged terrorist activity would not have been possible without the determination and cooperation between state police investigators and the FBI Joint Terrorism Task Force. This investigation revealed unthinkable plotting and planning of terrorist activity that targeted unsuspecting innocent citizens. We remain committed to ensuring the safety of all citizens and will work diligently to identify these types of threats and stop those who seek to cause harm.
The charges today resulted from a long-term investigation conducted by the Albany FBI Joint Terrorism Task Force, which includes the Department of Homeland Security, New York State Police, Albany Police Department, Troy Police Department, and New York City Police Department. The United States Attorney’s Office also acknowledged the assistance of the Criminal Division and National Security Division of the United States Department of Justice. The case is being prosecuted by Assistant United States Attorneys Stephen Green and Richard Belliss, and Counterterrorism Section Trial Attorney Joseph Kaster.
Further questions or inquiries may be directed to Executive Assistant United States Attorney John G. Duncan at 518-431-0247.
______________________
1The allegations contained in the Complaint are mere accusations and the defendants are presumed innocent unless and until proven guilty in a court of law.
Internet Scammer Indicted for FraudRead the Press Release
SYRACUSE, NEW YORK —United States Attorney Richard S. Hartunian announced that Wei Yee Cheng, 43, of Ithaca, New York, has been sentenced following his conviction for a violation of 26 U.S.C. § 7206(1), filing a false tax return.
On January 8, 2013, the defendant pled guilty to Count 1 of single-count Information 12-CR-566, charging the defendant with willfully making and subscribing U.S. Corporation Income Tax Return Form 1120-A for taxpayer Green Olive, Inc. for the calendar year 2007, falsely declaring the amount of income of the Kyushu Japanese Restaurant, operated by Green Olive, Inc., to be $774,769.00, omitting the Kyushu’s Restaurant’s cash income of $164,545.00, all in violation of Title 26, United States Code, Section 7206(1).
The defendant was sentenced by J. Thomas McAvoy in Binghamton, NY. The defendant was sentenced to a term of probation for a period of 4 years, and was ordered to pay restitution to the Internal Revenue Service in amount of $223,327.00, an amount that reflected the tax losses from the years 2006-2010. The defendant was also ordered to perform 100 hours of community service and to pay a special assessment of $100.
This case was investigated by the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorney Gwen Carroll. For further information, contact Executive Assistant U.S. Attorney John G. Duncan at 315-448-0672.
Delmar Man Sentenced to 78 Months in Prison for His Involvement in A Heroin Distribution ConspiracyRead the Press Release
Albany, New York — HENRY J. RAUCHE, III, age 28, of Delmar, New York, was sentenced yesterday by Senior United States District Court Judge Lawrence E. Kahn to 78 months of imprisonment for his role in a heroin distribution conspiracy, announced United States Attorney Richard S. Hartunian, Brian R. Crowell, Special Agent-in-Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division, and Joseph Anarumo, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms & Explosives, New York Field Division. RAUCHE, who had entered guilty pleas on July 3, 2012 to one count of conspiracy to possess with intent to distribute 74 grams of heroin, and one count of possessing a firearm in furtherance of a drug trafficking crime, was also sentenced to three years of supervised release following his term of imprisonment. RAUCHE was detained following his sentencing.
In May 2011, RAUCHE was part of a heroin distribution conspiracy that sought to distribute approximately $7,500 worth of heroin in the Capital District. RAUCHE also possessed a handgun and rifle that he used to protect his heroin and drug money from theft by other drug dealers.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Bethlehem Police Department.
Florida Based Seafood Company Settles with the United StatesRead the Press Release
Pescanova, Inc. Failed to Comply with National and International Regulations Governing the Importation and Exportation of Chilean Sea Bass
[Albany, New York] United States Attorney Richard S. Hartunian announced today that his office has settled a civil action it brought against Pescanova, Inc. (d/b/a Pescanova USA), an international seafood company with offices in Coral Gables, Florida, based upon the company’s exportation, and subsequent re-importation, of 9,600 pounds of Patagonian toothfish (also known as Chilean Sea Bass or Dissostichus eleginoides) on October 24 and December 15, 2010. As part of the settlement, Senior United States District Court Judge Lawrence E. Kahn issued a Consent Decree which authorized civil penalties, forfeiture and permanent injunctive relief against Pescanova. As part of the settlement, Pescanova will pay civil penalties totaling $35,000.00, forfeit $96,013.76, (the proceeds from the sale of the toothfish which were exported and re-imported) and the company is enjoined from committing similar violations in the future.
The Patagonian toothfish, an Antarctic Marine Living Resource (“AMLR”), is found in deep waters around Antarctica and the sub-Antarctic islands, as well as off the coast of Patagonia, a region in the southern part of Argentina and Chile. The United States is one of the largest and most lucrative markets for toothfish in the world. This fish is particularly susceptible to the threats of illegal fishing because it is commercially valuable and, as a slow-growing species, reaches marketable size before reaching sexual maturity. There is concern that these characteristics make toothfish particularly vulnerable to serious population declines if its harvest and trade are not monitored and controlled. The United States is a party to the international Convention on the Conservation of Antarctic Marine Living Resources and a member of the Commission for the Conservation of Antarctic Marine Living Resources (“CCAMLR”). CCAMLR has adopted binding conservation measures to address the conservation of Antarctic marine living resources, including the harvest and trade of toothfish. Members of CCAMLR are required to implement these binding measures with respect to their vessels and nationals. CCAMLR has implemented a Catch Documentation Scheme (“CDS”) designed to prevent and discourage the unlawful harvest and trade of toothfish by tracking toothfish from the point of harvest to the point of import for consumption. As part of the CDS, those authorized to harvest, import or export toothfish, must complete a Dissostichus Catch Document (“DCD”), a form which seeks specific information concerning the harvesting, importation and exportation of toothfish. In order to carry out its obligations with CCAMLR, including those related to the conservation of toothfish, the United States enacted the Antarctic Marine Living Resource Convention Act (“AMLRCA”). To implement the AMLRCA, the National Marine Fisheries Service (“NMFS”) promulgated regulations imposing various requirements on those who engage in the harvest and trade of toothfish and which are designed to help prevent illegal, unregulated, and unreported catches of toothfish. The Complaint, which was filed today in U.S. District Court in Albany, alleges that Pescanova did not comply with CCAMLR’s CDS, or with the United States’ implementing laws and regulations, when it failed to complete DCDs prior to exporting and re-importing toothfish in October and December of 2010.
Richard S. Hartunian, United States Attorney for the Northern District of New York, stated that “The United States has entered into a treaty with a number of nations and my office will enforce its provisions in this district. The treaty is designed to protect and preserve an Antarctic Marine Living Resource for which there is a concern that it will become extinct if its harvesting and trade are not monitored and controlled. It is important that we aggressively protect such species so that future generations are able to enjoy them.”
"NOAA continues to work cooperatively with the Department of Homeland Security Investigations, Customs and Border Protection, the Food and Drug Administration, and with other Nations," said Logan Gregory, special agent in charge of NOAA's Office of Law Enforcement's Northeast Division. "We do this to help ensure a level playing field in all sectors of the seafood industry."
The government’s Complaint alleges in part the following: Pescanova is a corporation with its principle place of business in Coral Gables, Florida that engages in the business of, among other things, importing and exporting seafood, including Patagonian toothfish. Sometime in July of 2010, Pescanova employees were trained by an employee of the National Oceanic and Atmospheric Administration (NOAA) concerning the trade requirements pertaining to Patagonian toothfish. Later that year, in October of 2010, Pescanova sold and transported 9,600 pounds of frozen Patagonian toothfish to a Canadian company from the United States through the Champlain, New York Port of Entry. The fish in question had been legally caught, and Pescanova had previously imported it into the United States from Argentina after filing the appropriate DCD with NOAA. Pescanova transported this toothfish to Canada without first completing an application for, and obtaining, the required validated export or re-export document (“Approval Action of Catch Documentation for Toothfish” form) issued by a NMFS designee.
When the toothfish were subsequently tested by officials from the Canadian Food Inspection Agency (“CFIA”), it was determined that they did not comply with CFIA’s standards for mercury. As a result, the fish could not be sold for consumption in Canada. On December 15, 2010, Pescanova arranged to have these fish transported from Canada to the United States through the Champlain Port of Entry. Once again, Pescanova did not first submit an application and obtain the required preapproval from the NMFS prior to importing these fish. The toothfish were seized by United States Customs and Border Protection officers on January 14, 2011, and eventually auctioned for $96,013.76.
Under the terms of the settlement, Pescanova will pay a civil administrative penalty of $22,000.00 to NOAA, a civil penalty of $13,000.00 to the United States Department of Justice, and consents to the administrative forfeiture of the $96,013.76 obtained from the sale of the 9,600 pounds of fish. In addition, Pescanova and its employees are permanently enjoined from importing, re-importing, exporting, or re-exporting Patagonian toothfish, or any other Antarctic marine living resources, unless they comply with the procedures promulgated by the CCAMLR and with the United States’ implementing laws and regulations. Pescanova agreed that in the event it imports, re-imports, exports or re-exports toothfish, or any other Antarctic marine living resources in violation of law or regulation, it will pay to the United States, upon the first violation, a civil contempt penalty of one hundred dollars ($100.00) for each pound, or portion thereof, of toothfish, or any other Antarctic marine living resources it so imports or exports. For each successive violation, Pescanova will pay a contempt penalty of five hundred dollars ($500.00) for each pound, or portion thereof, of toothfish or any other Antarctic marine living resources.
This matter is assigned to Assistant U.S. Attorney Thomas Spina Jr. News inquiries should be directed to Executive Assistant United States Attorney John Duncan [(315) 448-0672]. The investigation was conducted by agents with the United States Department of Commerce, National Oceanic and Atmospheric Administration (“NOAA”), and officers with the United States Department of Homeland Security Investigations, Customs and Border Protection.
Baldwinsville Man Enters Guilty Plea to False Tax ReturnRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that CHRISTOPHER BEVANS, (38 of Baldwinsville, NY) entered a guilty plea to the felony offense of subscribing a false income tax return, in violation of Title 26, United States Code, Section 7206(1). The defendant is facing a statutory maximum sentence of 3 years imprisonment, a maximum fine of $250,000.00 and restitution to the IRS in the amount of $75,725. BEVANS is scheduled to be sentenced on October 9, 2013, before the Honorable Mae D’Agostino, in Albany, New York.
During the plea hearing on June 13, 2013, BEVANS admitted that in 2007 and 2008 he was an employee of Velocitel, Inc., a telecommunications company, and during that employment he earned additional income from another Velocitel employee and Velocitel subcontractor. This income was in addition to the wages disclosed on his W-2 forms. The additional income paid to CHRISTOPHER BEVANS for 2007 was $59,600, and for 2008 was $162,550, for a total of $222,150. BEVANS failed to include the $59,600 as income on his 2007 personal federal tax return and $162,550 as income on his 2008 personal federal tax return. Each of these returns were made and signed by him under penalty of perjury. BEVANS knew these tax returns were false because each substantially under reported his income and tax liability for that year. The foregoing resulted in a tax deficiency to the IRS totaling $75,725.
This prosecution resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigations and the Federal Bureau of Investigation, Syracuse, N.Y. The case was prosecuted by Assistant United States Attorney Tamara B. Thomson. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Defendant Sentenced to Federal Prison After Arrest by Saint Regis Mohawk Tribal Police Officer Using Federal Customs Officer AuthorityRead the Press Release
[Plattsburgh, New York]— ERIC C. WILSON, age 23, of Saint Regis Falls, New York, was sentenced on June 8, 2013 in Utica, New York, by United States District Judge David N. Hurd to 12 months and one day of imprisonment for possessing with intent to distribute 50 kilograms or more of marijuana, announced United States Attorney Richard S. Hartunian and Homeland Security Investigations Special Agent-in-Charge James Spero. WILSON pled guilty to the charge on January 25, 2013. He was released until July 16, 2013 when he must report to prison.
The United States-Canadian border divides the reservation into an American portion – the Saint Regis Mohawk Reservation – and a Canadian portion – the Akwesasne Mohawk Reservation. On January 28, 2010, officers of the Saint Regis Mohawk Tribal Police (United States) and the Akwesasne Mohawk Police Service (Canada) saw a car driven by Wilson cross from the United States into Canada and then back through an unguarded and unmarked border crossing on the Saint Regis Mohawk Reservation in northern New York. A Detective Sergeant of the Saint Regis Mohawk Tribal Police who was cross-designated as a “customs officer” with Immigration and Customs Enforcement (ICE) found the car, followed it with another police officer, and then stopped it. Officers searched the car and found three large hockey bags with a total of 124.544 pounds of marijuana in the trunk.
The District Court (Hon. David N. Hurd, United States District Judge) suppressed the evidence based upon its finding that the sergeant stopped the car beyond the boundaries of the reservation, and that the sergeant failed to comply with the ICE approval procedures for the exercise of his authority as a customs officer. The district court’s decision is reported at United States v. Wilson, 754 F. Supp. 2d 450 (N.D.N.Y. Dec. 8, 2010).
The Court of Appeals reversed, holding that “the stop was justified by probable cause to believe that Wilson had entered the United States in violation of law” and that the sergeant was a validly designated customs officer authorized to effect the stop, so his failure to follow an internal ICE policy did not give rise to a Fourth Amendment violation. The Court of Appeals also held that there was probable cause to search the car for marijuana smuggled over the border.
United States Attorney Hartunian said, “My office is committed to working with tribal authorities and federal law enforcement officers to stop smugglers from using the Mohawk territory to bring drugs into our communities. This case illustrates how tribal authorities, federal law enforcement officers, and Canadian agencies all collaborate to ensure that there are no gaps in law enforcement coverage on and around the Mohawk territory.”
The case was investigated by the Saint Regis Mohawk Police Department, the Akwesasne Mohawk Police Service, the United States Border Patrol, and Immigration and Customs Enforcement - Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Elizabeth Horsman.
Phoenix, New York - Man pled guilty to a felony violation of the Clean Air Act.Read the Press Release
Richard S. Hartunian, United States Attorney for the Northern District of New York, announced today that Edward Palmer, 47, of Phoenix, N.Y., pled guilty in U.S. District Court in Syracuse before the Honorable Frederick J. Scullin, to a felony violation of the Clean Air Act, 42 U.S.C. § 7413(c). Palmer is scheduled to be sentenced on October 30, 2013 at 10:30 a.m. in Syracuse. He faces a maximum penalty of five years in prison and a $250,000 fine.
Palmer is the owner of Carbonsted, LLC, a company that owns the former Nestles Plant, 555 Fourth Street, Fulton, NY. The plant contains pipes with more than two thousand of feet of friable asbestos insulation. Palmer engaged in asbestos renovation activities without filing a notification with the United States Environmental Protection Agency. He directed unlicenced individuals to perform asbestos removal without wetting the asbestos and keeping it wet, and without properly disposing of the asbestos at a state-approved landfill.
Asbestos exposure has been determined to cause various forms of cancer, asbestosis, and mesothelioma, a nearly always fatal disease. The Environmental Protection Agency has determined that there is no safe level of exposure to asbestos. This case was investigated by Special Agents of the Environmental Protection Agency, and N.Y. State Department of Environmental Conservation. Inspectors with the NYS Department of Labor also assisted. Prosecution is being handled by Assistant United States Attorney Craig A. Benedict. Mr. Benedict may be contacted for questions regarding this case at 315-448-0672.
Defendant Pleads Guilty to Smuggling and Transporting Illegal Aliens, and Failure to Appear in Federal CourtRead the Press Release
[Plattsburgh, New York]—United States Attorney Richard S. Hartunian and Homeland Security Investigations Special Agent in Charge James Spero announce that NATHAN SAMSON MARTIN, age 31, Akwesasne, New York, pled guilty on June 4, 2013 to conspiring to bring and bringing illegal aliens into the United States and transporting them within the United States, and failure to appear at federal court proceedings after his pretrial release. United States District Court Judge Glenn T. Suddaby, Syracuse, New York, accepted his guilty pleas.
MARTIN was one of three people indicted in April 2010 for conspiring to smuggle aliens from Canada into the United States for commercial gain in 2009 and 2010. He is the second defendant of the three defendants charged to plead guilty to his role in the conspiracy. Another defendant, Carl THOMPSON, previously pled guilty and was sentenced to three years of imprisonment. A third defendant, Dennis JOCKO of Cornwall Island, Ontario, remains a fugitive after absconding from pre-trial supervision upon release by United States Magistrate Judge Kudrle.
Public court documents show that on February 8, 2010, Akwesasne Mohawk Police Service officers in Canada alerted Saint Regis Mohawk Tribal Police Department officers and U.S. Border Patrol agents to a vehicle that crossed the “ice bridge” from Cornwall Island, Ontario, to St. Regis Village, Quebec, and proceeded into Franklin County, New York. After law enforcement officers in New York observed the vehicle drop off a person in Hogansburg, they attempted to stop the vehicle for an immigration inspection. The driver, later identified as MARTIN, attempted to flee but was apprehended. The person that MARTIN dropped off was an illegal alien who had just been commercially smuggled into the United States from Canada through the Saint Regis Mohawk Reservation. MARTIN received part of the smuggling fee, according to the smuggled alien. A U.S. Magistrate Judge released MARTIN on February 9, 2010, subject to supervision by the U.S. Probation Office. However, MARTIN failed to appear for a hearing as ordered by U.S. District Judge Suddaby on January 4, 2011, and an arrest warrant was issued. On January 7, 2013, the defendant was found and arrested in the United States on the federal warrant by the Saint Regis Mohawk Tribal Police.
MARTIN pled guilty to all charges without a plea agreement. He faces a statutory maximum of ten years and a minimum of three years of imprisonment on the charge of bringing, or aiding and abetting the bringing, of illegal aliens to the United States. The charge of failure to appear has a statutory maximum of five years of imprisonment, as do the other two counts of conspiracy and transporting aliens, but federal law requires that the court run any sentence for failure to appear consecutive to any other sentence. The Court set the case for sentencing on October 10, 2013 and ordered MARTIN to remain in jail pending sentencing.
The case was investigated by Homeland Security Investigations (HSI), Massena, New York, with assistance from the United States Border Patrol, Saint Lawrence County Sheriff’s Department, Saint Regis Mohawk Tribal Police Department, Akwesasne Mohawk Police Service, Royal Canadian Mounted Police, Ontario Provincial Police, Canadian Border Services Agency, and Surete Du Quebec. The case is being prosecuted by the United States Attorney’s Office for the Northern District of New York.
Any questions may be directed to Executive Assistant U.S. Attorney John G. Duncan in Syracuse, New York at (315) 448-0672 or Assistant U.S. Attorney Elizabeth Horsman in Plattsburgh, New York at 518-314-7800.
Jamesville Man Enters Guilty Plea to False Tax ReturnRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that LLOYD F. MARTIN, JR., (68, of Jamesville, NY) entered a guilty plea to the felony offense of subscription of a false income tax return, in violation of Title 26, United States Code, Section 7206(1). The defendant is facing a statutory maximum sentence of 3 years imprisonment, a maximum fine of $250,000.00 and restitution to the IRS in the amount of $184,655.00. MARTIN is scheduled to be sentenced on October 13, 2013, before the Honorable Frederick J. Scullin.
During the plea hearing on June 4, 2013, MARTIN admitted the following. From 2006 through 2008, MARTIN was the president of a commercial construction company named Henderson-Johnson Co., Inc., located in Syracuse, New York. During that time, MARTIN realized income in the approximate amount of $657,640.57 from Henderson-Johnson over and above the income he reported on his personal federal income tax returns. Specifically, MARTIN received income from Henderson-Johnson in the form of payments toward personal expenses, such as the purchase and maintenance of a jet airplane. MARTIN failed to include $255,645.99 as income on his 2006 personal federal tax return, $241,892.78 as income on his 2007 personal federal tax return, and $160,101.80 as income on his 2008 personal federal tax return. Each of these returns were made and signed by him under penalty of perjury. MARTIN knew these tax returns were false because each substantially under reported his income and tax liability for that year. The foregoing resulted in a tax deficiency to the IRS totaling $184,655.00.
This prosecution resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigations, Syracuse, New York. 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.
Ithaca Defense Contractor Settles Whistleblower SuitRead the Press Release
United States Attorney Richard S. Hartunian announced today that his office has settled a civil prosecution under the False Claims Act. This case involves allegations that an Ithaca-based defense contractor, Agave BioSystems, Inc. and its President, Noe Salazar, submitted false claims to the United States Department of Defense, fraudulently seeking payment for labor expenses when in fact those expenses were not incurred, and the claimed labor in fact was not performed. The defendants have paid $300,000.00 to settle this matter.
This case started as a “whistleblower” or qui tam lawsuit filed by a former Agave employee, Rafik Tawadrous. In February 2010, Mr. Tawadrous filed a Complaint which alleged that Agave had committed fraud in its performance of government contracts. This Complaint was then investigated by agents and auditors from several federal agencies: the Defense Criminal Investigative Service (DCIS), U.S. Army Criminal Investigation Division (Army CID), the Defense Contract Audit Agency (DCAA), and the Federal Bureau of Investigation (FBI). The investigation confirmed material parts of Mr. Tawadrous’ allegations. The United States then entered this lawsuit and filed its own Complaint (“Complaint in Intervention”), reflecting those investigative findings, on April 26, 2013.
The government’s Complaint alleges in part the following: Agave is a small company located at 401 East State Street, Ithaca, New York. Agave largely performs scientific research and other work related to government defense contracts. Noe Salazar was the CEO and President of Agave until his death on October 6, 2012. In 2006, the Department of Defense conducted an audit of Agave’s claimed expenses. During that audit, Noe Salazar created two false time cards for one family member, namely his daughter, which claimed that his daughter had performed work on a government contract when in fact she had not. Noe Salazar submitted the false time cards to the Department of Defense. Also, Agave claimed it had incurred salary expenses for other family members, when these family members had not performed work to the extent claimed by Agave. Agave submitted the false and inflated salary expenses to the Department of Defense, which relied upon them in calculating the monies that would be paid to Agave, regarding approximately 44 contracts with the U.S. Army, Navy, Air Force, and Defense Threat Reduction Agency.
The government’s Complaint alleges misconduct only by Noe Salazar and Agave, and does not allege misconduct by any other person, family member or entity.
This action was filed pursuant to the federal qui tam statute, 31 U.S.C. §3730, which allows a private person to file a civil action on behalf of the United States, alleging that false claims have been submitted to the United States. This is part of the False Claims Act, which allows the government to file civil prosecutions, typically for defense procurement fraud and health care fraud. After a qui tam Complaint is filed, the United States commences an investigation and determines whether to join the lawsuit (“intervene”) or to decline intervention. In this case, as discussed above, the United States commenced an investigation and determined that it would join the lawsuit. Pursuant to court order and federal law, the original Complaint in this case remained under seal, while the United States conducted its investigation and determined whether to intervene. The person who initially files the lawsuit (“relator”) is entitled to a share of the proceeds. The relator in this case, Rafik Tawadrous, will receive 18% of the settlement proceeds ($300,000.00), or $54,000.00.
Craig W. Rupert, Special Agent in Charge, U.S. Department of Defense, Defense Criminal Investigative Service, stated that “Schemes to intentionally overbill the United States Department of Defense by any company or individual erode public confidence and undermine the mission of our military services. The DCIS and its law enforcement partners will continue to tirelessly pursue and investigate fraud allegations in order to safeguard the American taxpayer and military members.”
Richard S. Hartunian, United States Attorney for the Northern District of New York, stated that “The United States Attorney’s Office is committed to pursuing those who defraud the government under the False Claims Act, especially those who defraud the Department of Defense. When the military is defrauded, less money is available to support and protect our troops abroad. Such fraud is inexcusable.”
This matter is assigned to Assistant U.S. Attorney Charles E. Roberts. News inquiries should be directed to Executive Assistant United States Attorney John Duncan, tele. (315) 448- 0672.
The relator, Rafik Tawadrous, is represented by David Koenigsberg, Esq., of New York City, tele. (212) 223-2100.
Customer Embezzles $33,072.68 from the United States Postal ServiceRead the Press Release
Richard S. Hartunian, United States Attorney for the Northern District of New York, announced that JOHN GIBSON, III, age 37, of Oswego, N.Y., pled guilty today to the felony offense of Theft of Government Money, before the Hon. Glenn T. Suddaby in the United States District Court in Syracuse, New York. Sentencing for GIBSON is scheduled for October 9, 2013. As a result of the conviction, GIBSON is facing a term of imprisonment of up to ten years, supervised release of up to three years, a fine of up to $250,000, and a special assessment of $100.
GIBSON admitted that he purchased 91 postal money orders with checks drawn on closed checking accounts in the total amount of $33,072.68, in violation of Title 18, United States Code, Section 641.
GIBSON’s prosecution is the result of a joint investigation by U.S. Postal Inspection Service and the United States Postal Service Office of Inspector General. The investigation began in June 2012.
This prosecution was handled in the United States Attorney’s Office by Assistant U.S. Attorney Tamara B. Thomson.
Butler Charged Federally for Schenectady Arson Resulting in Four DeathsRead the Press Release
Albany, New York – United States Attorney Richard S. Hartunian and Special Agent-in- Charge Joseph Anarumo, Jr. of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives announce that a federal criminal complaint filed today charges Robert A. Butler, 27, with arson resulting in personal injury and death, in violation of Title 18, United States Code, Section 844(i). The affidavit in support of the complaint alleges that on or about May 2, 2013, Butler used gasoline to start a fire at 438 Hulett Street, Schenectady, New York, resulting in the destruction of the building and its contents and the deaths of four people: David Terry, age 32, and three children: Michael Terry, age 3; Layah Terry, age 2; and Donovan Duell, who was 11 months old, and put Safyre Terry, age 5, in the hospital with severe injuries. There is federal jurisdiction over the arson because the building at 438 Hulett Street was a rental property not occupied by the owner and the U.S. Supreme Court has determined that such rental of real estate is an activity that affects interstate commerce.
A criminal complaint is merely an accusation and Butler is presumed innocent unless and until proven guilty. Trial on a federal felony charge must be premised upon an indictment by a grand jury. If indicted and then convicted, Butler faces a maximum sentence of a fine of up to the greater of $250,000 or twice the gross pecuniary loss to victims, and up to life imprisonment or the death penalty. No decision has been made by the Department of Justice regarding whether to seek the death penalty in this case; that determination is ultimately made by the Attorney General of the United States.
Butler’s had his initial appearance this afternoon and was remanded to custody until a detention hearing on Monday, June 10, 2013, at 1:30 p.m.
The investigation which led to this indictment was conducted by the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, 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 U.S. Attorney Wayne Myers.
Schenectady County District Attorney Robert M. Carney said: "Shortly after the arrest of Robert Butler on charges of Arson in the First Degree, I asked the United States Attorney to consider the case for federal prosecution. I did so for several reasons. Federal jurisdiction is always a possibility with significant arson cases and the federal Bureau of Alcohol, Tobacco, Firearms and Explosives was already investigating this case along with the Schenectady Police and Fire Departments. Second, there are significant procedural differences between the state and federal systems regarding the type of evidence which must be presented to a Grand Jury that I believed favored consideration of federal prosecution in this case given the ongoing nature of this investigation by law enforcement and the necessity of moving forward expeditiously. Finally, there are sentencing enhancements possible in the federal system that would more appropriately address the harm caused by this criminal act, beyond the maximum sentence of 25-life Mr. Butler would face if he were to be convicted of murder in the second degree and arson in the first degree in state court. I thank Mr. Hartunian for his willingness to go forward with this prosecution and am grateful that I have always been able to count on him for collaboration and assistance in fulfilling our mutual obligations to safeguard our communities."
United States Attorney Richard S. Hartunian said, “The horrible tragedy that occurred at 438 Hulett Street on May 2 nd cried out for the dedication and collaboration of all of law enforcement and fire investigators in the pursuit of justice for the victims of the fire and the person who set it, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Schenectady Police Department, and the Schenectady Fire Department immediately responded with the thorough investigation which led to this federal charge. We thank District Attorney Carney for his leadership and the work of his office in the immediate aftermath of the fire. We are committed to continuing the investigation and the federal prosecution until justice is done.”
ATF Special Agent-in-Charge Joseph Anarumo, Jr. said, “Arson is a reprehensible crime and is even more heinous when small children are killed as a result. I take comfort in knowing that the dogged investigative efforts of the ATF, the Schenectady Police Department and the United States Attorney's Office has resulted in an arrest today. The deaths of those victims will not be in vain and the alleged actions of the defendant will now be addressed in a court of law.”
Schenectady Police Chief Brian Kilcullen said, “The investigation into last month's Hulett Street fatal fire was and remains a collaborative effort between local, state, and federal law enforcement agencies. We will continue to dedicate any necessary resources to the United States Attorney's Office to assist in the prosecution of this matter in federal court.”
Inquiries may be addressed to First Assistant U.S. Attorney Grant C. Jaquith at (518) 431- 0247.
Syracuse, New York - Press Conference regarding arrests in a large-scale Central New York drug organization based in Oneida County.Read the Press Release
United States Attorney Richard S. Hartunian will hold a Press Conference today regarding arrests in a large-scale Central New York drug organization based in Oneida County.
DATE: May 29, 2013
TIME: 2:00 pm
LOCATION:
United States Attorney’s Office
100 S. Clinton Street, Room 900
Syracuse, New York 13261No further information will be released prior to the Press Conference.
Schenectady Woman Indicted on Fraud and Tax ChargesRead the Press Release
Scam Caused the Internal Revenue Service to Send $87,153 to the Woman
Albany, New York — On May 24, 2013, a grand jury returned an indictment charging PATRICIA ALFIERI, age 52, of Schenectady, New York, with (1) five counts of mail fraud; (2) one count of obstructing the Internal Revenue laws; and (3) three counts of filing a false income tax return announced United States Attorney Richard S. Hartunian and Internal Revenue Service Criminal Investigation Special Agent in Charge Toni Weirauch. Trial is set for July 29, 2013 before the Honorable Gary L. Sharpe in Albany, New York.
Counts 1 through 5 charge the defendant with mail fraud. Count 6 charges the defendant with obstructing the Internal Revenue laws. The indictment alleges that the defendant mailed checks to the Internal Revenue Service totaling $3,672,327, drawn on (a) accounts which did not exist; (b) accounts which were closed; and (c) accounts with insufficient funds, causing the Internal Revenue Service to send her six “overpayment” refunds totaling $87,153.99. The maximum potential penalty for each of Counts 1 through 5 is imprisonment for 20 years, supervised release for 3 years, and a fine of $250,000 or twice the gross pecuniary gain or loss. The maximum potential penalty for Counts 6 is imprisonment for 3 years, supervised release for 1 year, and a fine of $3,000 or twice the gross pecuniary gain or loss.
Counts 7 through 9 charge the defendant with filing false personal income tax returns for 2008 through 2010. The indictment alleges that the defendant submitted false returns claiming that she had paid real estate taxes and home mortgage interest when she had not and also that her employer had withheld more income tax than it had. The maximum potential penalty for each of Counts 6 through 9 is imprisonment for 3 years, supervised release for 1 year, and a fine of $100,000 or twice the pecuniary gain or loss.
The Indictment includes allegations for forfeiture of $87,153.99 in proceeds of the mail fraud offenses charged.
ALFIERI was arraigned on May 28, 2013 before the Honorable Christian F. Hummel, United States Magistrate Judge, at the Federal Courthouse in Albany.
This case is being investigated by the Internal Revenue Service, Criminal Investigation Division. This case is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.
LOCAL CONTACT:
Elizabeth C. Coombe
Assistant U.S. Attorney
Tel: (518) 431-024730 Charged in Federal Drug IndictmentsRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York, announces that two indictments unsealed today in United States District Court charge eighteen (18) persons with being members of two drug trafficking conspiracies operating in Utica, New York. The Indictments allege that the groups trafficked cocaine and cocaine base (crack).1 The defendants were charged with conspiring to distribute these drugs from the summer of 2011 through June 26, 2012. The following defendants were arrested or sought today :
US v. SEAN HAGANS, et al. 5:13-CR-137
Sean Hagans, a/k/a “Pretty,” 42, of Utica, NY,
Timothy Rider, 46, of Utica, NY,
Alexis Tarris, 26, Frankfort, NY,
Scott Fyfe, 41, Utica, NY, and
Michael Lynch, 39, of Utica, NY.US v. REID SOOK, et al. 5:13-CR-187
Reid Sook, a/k/a “Country,” 38, of Utica, NY,
Arthur Charles Robinson, 24, of Utica, NY,
John Robinson, a/k/a “Pooh Bear,” 38, of Utica, NY,
Cecil Jeffrey Palmer, a/k/a “Cry Baby,” 42, of Utica, NY,
Alexis Tarris, 26, Frankfort, NY,
Scott Fyfe, 41, Utica, NY,
Brandon Winn, 20, of Niagara Falls, NY,
Dennis Amsdill, 29, of Lewiston, NY,
Kimberly Springer, 31, of Utica, NY,
Raymond Schloop, 41, of Utica, NY,
Jim Caruso, 46, of Utica, NY,
Michael Rossi, a/k/a “Ross,” 50, of Utica, NY,_________________________
1The allegations contained in the Indictments are mere accusations; and the defendants are presumed innocent unless and until proven guilty in a court of law.