Western District of New York
Press releases recorded for this federal judicial district.
Chain Gang Defendant Sentenced to 30 Years in PrisonRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Russell “TJ” Hampton, 23, of Rochester, N.Y., who was convicted following a jury trial of conspiracy to engage in racketeering activity (RICO), which included narcotics trafficking, murder, attempted murder and weapons possession, was sentenced to 30 years in prison and 10 years supervised release by U.S. District Court Judge Charles J. Siragusa.
Assistant U.S. Attorney Douglas E. Gregory, who handled the prosecution of the case, stated that in 2009, state and federal authorities focused their attention on the “Chain Gang” aka “Wolfpack,” a violent street crew that controlled the streets in the area of Chamberlain and Garson Avenues in Rochester. The federal indictment charged 19 gang members with conspiring to use their membership in the Chain Gang to engage in a pattern of racketeering activity that included multiple acts of drug trafficking, the 2007 murder of Carmella Rogers and the attempted murder of several rival gang members.
In July 2011, Hampton was convicted along with Dearick Smith and Michael Jackson after a five week jury trial. In July 2013, Dearick Smith was sentenced to 50 years in prison for his role in the offense. All remaining defendants have been convicted.
“Today’s sentencing is an example of the severe punishment that awaits all gang members who engage in violence and drug trafficking,” said U.S. Attorney Hochul. “The streets of our community are no place for such destructive actions and our Office will continue to prosecute any individual or group of individuals who engage in such illicit behavior.”
The sentencing is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Resident Agent in Charge Scott Heagney, along with officers and investigators with the Rochester Police Department, under the direction of Chief James Sheppard.West Valley Man Sentenced for Attempted Enticement of a MinorRead the Press Release
BUFFALO N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Michael Lee Reed, Jr. 22, of West Valley, N.Y., who was convicted of attempted enticement of a minor to engage in sexual activity, was sentenced to 10 years in prison and five years of supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that the defendant attempted to entice a minor victim to send him provocative pictures through text messages. The victim's mother contacted law enforcement after looking through her child's cellular telephone. As a result, no pictures were ever sent by the victim to the defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The conviction is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Steven L. Lanser, Acting Special Agent in Charge and the Cheektowaga Police Department under the direction of Police Chief David Zack.Mexican Man Sentenced for Being in the Country IllegallyRead the Press Release
BUFFALO N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Abdias Roblero-Mazariegos, 32, an alien from Mexico, who was convicted of unlawful re-entry after being convicted of an aggravated felony, was sentenced to 24 months in prison by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that on October 28, 2012, the defendant was a passenger in a car that was stopped by the Albion Police Department.The defendant admitted during the encounter that he was a citizen of Mexico and illegally in the country. A background check revealed that the defendant had a conviction in 2002, in the state of Florida, for Assault with a Deadly Weapon without the intent to kill and was subsequently deported.
Sentencing is the culmination of an investigation on the part of Special Agents of the United States Border Patrol, under the direction of Chief Border Patrol Agent Kevin W. Oaks.Canadian Man Found Guilty of Importing 147,000 Estasy Pills from Canada into the United StatesRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Osborne Young, 47, of Richmond Hill, Ontario, Canada, was convicted following a jury trial before U.S. District Judge Richard J. Arcara of importing approximately 147,000 pills containing Benzylpiperazine, commonly referred to as Ecstasy, into the United States from Canada. This was one of the largest seizures ever of illegal pills at the border. The charge carries a penalty of up to 20 years in prison, a fine of $1,000,000, or both.
According to Special Assistant U.S. Attorney Fauzia K. Mattingly and Assistant U.S. Mary Catherine Baumgarten, who handled the prosecution of the case at trial, the defendant was driving his tractor trailer and attempted to enter the United States from Canada at the Lewiston Bridge Port of Entry in April 2012. After being pulled over for secondary inspection, Customs and Border Protection Officers discovered approximately 147,000 Ecstasy pills concealed in the refrigeration unit of the tractor trailer. The estimated value of the pills was at least $1,500,000.
The verdict is the result of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero and U.S. Customs and Border Protection, under the direction of
Sentencing is scheduled for January 24, 2014 at 1:00 p.m. before Judge Arcara.
Director of Field Operations James Engleman.Olean Businessman Pleads Guilty to Tax EvasionRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Edmund J. Renaud, 70, of Olean, N.Y., pleaded guilty before U.S. District Judge William M. Skretny, to tax evasion. The charge carries a maximum penalty of five years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Gretchen L. Wylegala, who is handling the case, stated that the defendant failed to pay employment taxes for businesses he ran from 2002 through 2008. Renaud ran Southern Tier Moving and Storage, Inc., in Olean until 2002, when the Internal Revenue Service assessed over $48,000 in unpaid federal payroll taxes. Upon shutting down that entity, Renaud opened Southern Tier Moving and Storage, LLC, where from 2002 until 2006, Renaud similarly failed to pay over $86,000 in federal payroll taxes. When IRS revenue officers tried to collect the money, the defendant provided false information about bank accounts and other assets, including a truck he had gotten as a result of accumulating “comp” credits at the Seneca Allegany Casino.In 2007, Renaud filed an Offer in Compromise, settling about $150,000 in taxes due for payment of only $1500. The information that the defendant provided to the IRS in connection with that Offer in Compromise was false in several respects, including false claims that the defendant was out of business, failure to identify bank accounts, and failure to disclose company assets. In fact, while Renaud was not paying his taxes, his companies were receiving income, and he was gambling heavily. Renaud also was the recipient of a significant Workmen’s Compensation award of approximately $100,000.
Sentencing is scheduled for January 27, 2014, at 9:00 a.m. before Judge Skretny.
Renaud's plea comes on the eve of trial, which was scheduled to begin next week. The trial was to be handled by Assistant U.S. Attorneys Wylegala and Edward White.
The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Toni Weirauch, New York Field Office.Olean Businessman Pleads Guilty to Tax EvasionRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Edmund J. Renaud, 70, of Olean, N.Y., pleaded guilty before U.S. District Judge William M. Skretny, to tax evasion. The charge carries a maximum penalty of five years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Gretchen L. Wylegala, who is handling the case, stated that the defendant failed to pay employment taxes for businesses he ran from 2002 through 2008. Renaud ran Southern Tier Moving and Storage, Inc., in Olean until 2002, when the Internal Revenue Service assessed over $48,000 in unpaid federal payroll taxes. Upon shutting down that entity, Renaud opened Southern Tier Moving and Storage, LLC, where from 2002 until 2006, Renaud similarly failed to pay over $86,000 in federal payroll taxes. When IRS revenue officers tried to collect the money, the defendant provided false information about bank accounts and other assets, including a truck he had gotten as a result of accumulating “comp” credits at the Seneca Allegany Casino.In 2007, Renaud filed an Offer in Compromise, settling about $150,000 in taxes due for payment of only $1500. The information that the defendant provided to the IRS in connection with that Offer in Compromise was false in several respects, including false claims that the defendant was out of business, failure to identify bank accounts, and failure to disclose company assets. In fact, while Renaud was not paying his taxes, his companies were receiving income, and he was gambling heavily. Renaud also was the recipient of a significant Workmen’s Compensation award of approximately $100,000.
Sentencing is scheduled for January 27, 2014, at 9:00 a.m. before Judge Skretny.
Renaud's plea comes on the eve of trial, which was scheduled to begin next week. The trial was to be handled by Assistant U.S. Attorneys Wylegala and Edward White.
The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Toni Weirauch, New York Field Office.Chinese Nationals; Husband and Wife, Sentenced in Counterfeit Sneaker CaseRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Xiao Cheng Lin, 50, and Ling Zen Hu, 51, of Flushing, N.Y., who were convicted of conspiracy to import goods falsely classified, were sentenced by U.S. District Court Judge Richard J. Arcara. Xiao Cheng Lin was sentenced to one year in prison and a $7,500 fine. Lin’s husband, Ling Zen Hu, was sentenced to six months in prison and a $6,000 fine. The defendants will forfeit $750,000 in cash and other monetary instruments that were seized during a search of their residence in 2007.
Assistant U.S. Attorneys John E. Rogowski and Frank Pimentel, who handled the prosecution of this case, stated that Lin and Hu were involved in the importation of counterfeit Nike sneakers from China which were then distributed throughout the United States. The defendants sold the counterfeit products to a co-defendant in New York City, Malik Bazzi. Bazzi then sold the counterfeit sneakers to several individuals, including individuals in Buffalo and Niagara Falls, who resold the counterfeit products to consumers. Some of the shoes were sold out of the back of vans, at flea markets and clothing stores. As a result of wire taps in the case, Hu was recorded taking orders, discussing payments, and directing the delivery of the counterfeit sneakers to defendant Bazzi. Lin was observed loading sneakers into van at warehouses locations and then delivering them to Bazzi.
During the course of the investigation, over 310,000 pairs of counterfeit sneakers Nike were seized by law enforcement. In addition, over $1,000,000 in cash from the sale of counterfeit sneakers was also seized.
The defendants along with 21 others from around the United States were arrested in September 2007. A total of 22 defendants have been convicted.
The sentencing’s are the culmination of an investigation on the part of Special Agents of the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent in Charge.Bronx Man Arrested, Charged with Fraud and Misuse of Immigration DocumentsRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Abdus Samad, 44, of Bronx, N.Y., was arrested and charged by criminal complaint with fraud and misuse of immigration documents. The charges carry a maximum penalty of 10 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Robert C. Moscati, who is handling the case, stated that on August 22, 2013, the defendant attempted to enter the United States at the Lewiston Port of Entry. According to the complaint, Samad presented a fraudulently obtained U.S. Passport as proof of citizenship. Immigration officers determined that the defendant had previously entered the United States under an alias and had obtained the passport by making false statements on his passport application.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder. Samad is being held pending a detention hearing on August 28, 2013 before U.S. Magistrate Judge Hugh B. Scott.
The criminal complaint is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the U.S. Department of State-Diplomatic Security Service, under the direction of Resident Agent Roy B. Stillman.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until proven guilty in a court of law.
Jamaican National Charged Again with Fraudulently Receiving Medicaid BenefitsRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Georgia Bowen, a/k/a Georgia Bennett, 38, of Lackawanna, N.Y., was arrested and charged by criminal complaint with health care fraud, identity theft, and unauthorized use of social security numbers. The charges carry a maximum sentence of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney John E. Rogowski, who is handling this case, stated that according to the complaint, in December 2010, Bowen, a native and citizen of Jamaica, applied for Medicaid benefits through the Erie County Department of Social Services. The defendant claimed to be a United States citizen and utilized a social security number assigned to another person. In January 2011, Erie County terminated Bowen’s Medicaid eligibility after learning the social security number utilized by Bowen was issued to another person. During that time however, Medicaid was billed over $7,000 for medical services rendered to Bowen.
In November 2011, the defendant submitted another application to Erie County Department of Social fraudulently claiming to be citizen of the United States and using a social security number assigned to yet another person. Thereafter, Medicaid was billed $12,300 for medical services rendered to Bowen.
Previously, in August 2010, Bowen was sentenced in federal court to two years in prison for identity theft. The defendant used the name and social security number of another person, causing over $13,000 in Medicaid benefits to be paid through the Erie County Department of Social Services for medical services she had received. As a result of that conviction, removal proceeding against Bowen were initiated by the Department of Homeland Security. The removal proceeding is currently being litigated before the Immigration Court.
The arrest was the result of an investigation on the part of Special Agents of the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Former Postal Service Employee Sentenced for Stealing MailRead the Press Release
ROCHESTER, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Dale Richmond, 59, of Williamson, N.Y., who was convicted of mail theft and mail tampering, was sentenced today to 12 months in prison and ordered to pay a $7,500 fine by U.S. District Judge David G. Larimer. In addition, the defendant was ordered to make restitution to the victims of his crime in the amount of $7,807.25.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Richmond worked as a mechanic for the United States Postal Service in the Rochester Logistics and Distribution Center. While working there, the defendant rifled through mail looking for scrap gold, jewelry, rare coins and other small items of value. Richmond stole and then sold the items at a local pawn shop for more than $30,000.
The plea is the culmination of an investigation on the part of Special Agents of the United States Postal Service, Office of Inspector General, under the direction of Special Agent in Charge Robert Lapina.Amherst Man Arrested, Charged with Drug ChargesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Charles Jones, 40, of Amherst, N.Y., was arrested and charged by criminal complaint with possession with intent to distribute 500 grams or more of cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, a fine of up to $8,000,000 or both.
Assistant U.S. Attorney Eric M. Opanga, who is handling the case, stated that on August 20, 2013, law enforcement officers pulled over a vehicle in the City of Buffalo. According to the complaint, the defendant was lying down in the backseat in an attempt to avoid police detection. Officers searched the car and discovered the suspect. During subsequent searches of a nearby business and residence, officers recovered quantities of cocaine and marijuana and approximately $16,000 in cash.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder. Jones is being held pending a detention hearing on August 28, 2013 at 11:00 a.m.
The criminal complaint is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until proven guilty in a court of law.Waterloo Man Pleads Guilty in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William, J. Hochul, Jr. announced today that Ronald Beaton, 68, of Waterloo, N.Y., pleaded guilty to possession of child pornography before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that Special Agents with Homeland Security Investigations conducted an undercover investigation and discovered that a user of an Internet Protocol address was sharing child pornography files using file-sharing software. The Internet Protocol address was assigned to the defendant and his residence on West Main Street in Waterloo. A search warrant was executed and agents found video files depicting child pornography on the defendant’s computer.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part Special Agents from BeatoImmigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge, James C. Spero.
Sentencing is scheduled for November 26, 2013 before Judge Siragusa.Rochester Woman Under Indictment for Threatening to Kill the President Arrested for Violating Pre-Trial Release ConditionsRead the Press Release
ROCHESTER, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Christine Wright Darrisaw, 37, of Rochester, N.Y., who is currently under indictment for threatening to kill the President and making a false statement to Secret Service Agents, was arrested and charged with violating her conditions of pre-trial release.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that following the defendant’s arraignment in August 2012, Darrisaw was released on conditions pending trial. On August 19, 2013, the Government moved to have the defendant arrested and detained based on several recent police contacts, including arrests, Darrisaw has had while on release awaiting trial.According to the motion filed by the Government, the defendant was arrested by the Rochester Police Department on July 12, 2013 for disorderly conduct. On July 25, 2013, a warrant was issued for the defendant’s arrest after Darrisaw allegedly entered the Rochester Library which she is banned from entering.
On August 12, 2013, during an incident at the Webster Avenue Rec Center, the defendant allegedly told a victim “My husband has guns. I’m gonna shoot you! I’ll shoot every guy here, and I’ll kill anyone that touches my kids!” before making a reference to President Obama. And on August 14, 2013, Darrisaw allegedly called the Social Security Administration’s 800 Number and stated “I am going to the office tomorrow and take that agent to hell with me” before ending the call.
The defendant is being held pending a detention hearing which is scheduled for August 23, 2013 at 9:30 a.m. before U.S. Magistrate Judge Jonathan W. Feldman.The arrest is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge, Tracy Gast.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Seneca Falls Man Pleads Guilty in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Lawrence Higgins, 62, of Seneca Falls, N.Y., pleaded guilty to possession of child pornography and being a felon in possession of a firearm before the U.S. District Court Judge Charles J. Siragusa. As a result of a prior Seneca County conviction for sex abuse in the first degree, possession of child pornography carries a mandatory minimum penalty of 10 years, a maximum penalty of 20 years, and a fine of $250,000. Being a felon in possession of a firearm carries a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that the United States Postal Inspection Service received information that the defendant ordered DVD's depicting child pornography. From November 2008 to March 2011, Higgins made 11 purchases. The DVDs were delivered to an address located on State Street in Seneca Falls, N.Y. where a search warrant was executed on November 14, 2012. Higgins admitted to ordering the DVDs and possessing thousands of images of child pornography and hundreds of hours of videos of child pornography on his computers and digital storage media. The defendant also possessed a rifle and ammunition.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of the United States Postal Inspection Service, under the direction of Inspector in Charge, Kevin Niland, Boston Division.
Sentencing is scheduled for November 25, 2013, before Judge Siragusa.Rochester Man Sentenced for Stealing Interstate Shipment from Rail CarRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Anthony J. Russell, 39, of Rochester, N.Y., who was convicted following a jury trial of conspiracy to steal an interstate shipment and theft of an interstate shipment, was sentenced to 15 months in prison and ordered to pay $4,669.26 in restitution by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that on June 30, 2009, Russell, along with co-conspirators Richard E. Riedman, Anthony Toscano and Timothy Stone, stole more than 17 gross tons of a high-grade scrap steel from a railcar at a CSXT rail yard in Batavia, N.Y. Russell and his co-conspirators used a logging truck to remove the scrap steel from the railcar, wore dark clothing and used lookouts to avoid detection by law enforcement authorities and pedestrians, and used two-way radios to communicate with each other during the theft. The defendant and his co-conspirators were caught by members of the Genesee County Sheriff's Office in the logging truck and a pick-up truck as they left the scene of the theft in the early morning hours of June 30, 2009.
The bales were in the process of being shipped to a steel mill in Pennsylvania when Russell and his co-conspirators stole them. The defendant along with Riedman, Toscano and Stone were convicted after a two-week jury trial before Judge Siragusa in September 2012.
Judge Siragusa previously sentenced Toscano and Stone to 18 months and 12 months in prison respectively. Riedman is scheduled to be sentenced by Judge Siragusa on September 16, 2013.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, and the Genesee County Sheriff's Office, under the direction of Sheriff Gary Maha.Rochester Man Indicted in Tax SchemeRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a 117-count indictment charging Norman Perry, 50, of Rochester, N.Y., with mail fraud, aggravated identity theft and making false claims to the United States. The mail fraud charges carry a maximum penalty of 20 years in prison, making a false claim to the United States carries a maximum of five years in prison and aggravated identity theft carries a mandatory term of two years in prison, to be served consecutive to any other term of imprisonment. All of the charges also carry a fine of $250,000, or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that according to the indictment, the defendant posted advertisements in Rochester claiming that he could find lost or unclaimed funds. Individuals then provided Perry with their name, address and social security number and agreed to pay the defendant a fee, generally in the amount of $300, for each $1,000 check they received. In reality, Perry used the individuals information to prepare and file approximately 1,200 false and fraudulent tax returns with the Internal Revenue Service claiming refunds in excess of $1,000,000. The defendant stated that the individuals had qualified educational expenditures and were entitled to receive the American Opportunity Credit, a refundable tax credit for educational expenses. None of the individuals were students, none had incurred any educational expenditures and none provided such information to Perry.
The Indictment is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service - Criminal Investigation, under the direction of Special Agent In Charge Toni Weirauch.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Former City of Buffalo Employee Sentenced for Stealing Hundreds of Thousands of Dollars from Parking MetersRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that James Bagarozzo, 57, of Buffalo, N.Y., who was convicted of stealing $210,000 from the City of Buffalo, a Governmental agency which receives federal funding, was sentenced to 30 months in prison by U.S. District Judge Richard J. Arcara. The defendant has also been ordered to pay $210,000 in restitution.
Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that the defendant was employed by the City of Buffalo for approximately 30 years. In 2003, Bagarozzo began working as a parking meter mechanic for the City. In that capacity, the defendant was responsible for repairing defective parking meter machines, but was not authorized to collect any money deposited into the machines.
Beginning in July 2003 and continuing through December 2011, instead of making necessary repairs, Bagarozzo intentionally damaged in excess of 75 parking meters. Those efforts made it easier for the defendant to steal quarters inserted into the meters by the public. The defendant stored the stolen quarters in bags in his car or in his pants pockets. Bagarozzo used the money to pay for personal expenses and the expenses of his family members.
The Government's evidence included statements from employees at a local bank where Bagarozzo regularly deposited large quantities of the stolen quarters. Bank tellers stated that the defendant would deposit between $3,000 and $5,000 a week.
In 2011, the City of Buffalo's Department of Parking Enforcement initiated a review of parking meters after suspecting that quarters were being stolen from the meters. Subsequently, video surveillance was conducted which showed that the defendant stole quarters from the meters on a daily basis.
"What may have begun as a theft of nickels and dimes, in the end was the equivalent of a major bank heist,” said U.S. Attorney Hochul. “This defendant admitted stealing almost a quarter million dollars which would have gone to the residents of Buffalo. That the defendant operated day in and day out over eight years, committed his crimes while on City time using City vehicles, and utilized his mechanic skills to alter parking meters and make his thefts easier, rank this as one of the more egregious breaches of honesty, ethics, and the public trust Buffalo has seen.”
U.S. Attorney Hochul further stated, “Let this case serve as yet another reminder that whether white collar, blue collar, or no collar, none is immune from prosecution if they violate their oath to the public or break the laws of this nation.”
Bagarozzo was arrested in December 2011 along with another employee, Lawrence Charles, who was also employed as a parking meter mechanic. Charles pleaded guilty to a similar charge on September 4, 2012 and will be sentenced on August 29, 2013 at 1:00 p.m.
The arrests are the culmination of an investigation on the part Special Agents from the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Father and Son Plead Guilty to Drug ChargesRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Eric De Leon-Navarro Sr., 46, and Eric De Leon, Jr., 27, both of Puerto Rico, pleaded guilty to drug conspiracy charges involving the trafficking of cocaine in Buffalo before U.S. District Court Judge Richard J. Arcara. Eric De Leon, Jr. admitted to distributing more than five kilograms of cocaine. Eric De Leon-Navarro, Sr. admitted to distributing more than 500 grams of cocaine.
When sentenced, Eric De Leon, Jr. faces a mandatory minimum 10 years in prison and a maximum penalty of life. Eric De Leon-Navarro, Sr. faces a mandatory minimum sentence of five years in prison and a maximum penalty of 40 years.
Assistant U.S. Attorney Melissa Marangola, who handled the case, stated this was a long-term investigation involving the use of confidential informants, wiretaps, surveillance and intercepted postal parcels. The defendants mailed kilogram quantities of cocaine via the United States Postal Service from Puerto Rico to family members in Buffalo. The family members, who have pled guilty and are awaiting sentencing, then distributed the cocaine for profit.
Sentencing is scheduled for January 14, 2013 before Judge Arcara.
The pleas are the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, the New York State Police, under the direction of Major Michael Cerretto, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Significant Cocaine Trafficker Responsible for Double Homicide SentencedRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Kevin Lamont Anderson, a/k/a "Cuda," 40, of Rochester, N.Y., who was convicted following a jury trial of conspiracy to distribute and possess with intent to distribute 50 grams or more of cocaine base and five kilograms or more of cocaine, conspiracy to commit money laundering, and maintaining a drug-involved premises, was sentenced to life in prison by U.S. District Judge Charles J. Siragusa. Judge Siragusa also ordered Anderson to forfeit $1,000,000 to the United States, which the jury determined represented the amount of proceeds from the drug trafficking conspiracy.
Assistant U.S. Attorneys Frank H. Sherman and Everardo Rodriguez, who handled the case, stated that the defendant led a group of drug dealers which distributed crack and powder cocaine between 1990 and December 2005. During this time period, the conspirators primarily utilized houses in northeast Rochester controlled by Anderson to distribute their drugs.
Between June 2003 and January 2005, the defendant paid over $467,000 in cash to construct and furnish a house in Holley, N.Y. While the purchase and construction money came from Anderson’s drug trafficking activities, Anderson had his grandmother, Juliet Anderson, purchase the Holley residence in her name in order to conceal where the funds originated. Juliet Anderson, who was previously convicted of participating in this money laundering conspiracy, forfeited the house in Holley to the Government and was sentenced to two years probation.
Also as part of the sentencing proceeding, the Government proved that the defendant was responsible for the double homicide in May 2002 of Clifford Robinson and Allen Tyrone Smith in Rochester. Anderson was found by Judge Siragusa to have shot both Robinson and Smith in a house located at 279 Avenue A in Rochester in furtherance of Anderson’s drug trafficking operation. With the help of several co-conspirators, the defendant placed the victims bodies in Clifford Robinson's vehicle and left the vehicle on Cutler Street in Rochester. The police found the bodies in the parked vehicle on May 15, 2002, two days after the murders.
“This case demonstrates the extreme violence often perpetrated by narcotics trafficking gangs,” said U.S. Attorney Hochul. “While nothing can be done to bring the victims back home to their families, at least the public can be assured that this defendant will never again walk the streets of Rochester or any other peace loving community.”
Eight other defendants in the case have been previously sentenced for their involvement in the case.
The sentencing is the result of an investigation on the part of the Special Investigations Section of the Rochester Police Department, under the direction of Chief James Sheppard, Special Agents of the Internal Revenue Service, under the direction of Special Agent-in-Charge Toni M. Weirauch, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Scott Heagney.Avon Man Sentenced in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Timothy P. Glavin, 32, of Avon, N.Y., who was convicted of production of child pornography, was sentenced to 15 years in prison and 15 years of supervised release by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that the defendant used a minor under the age of 13 to produce images of that minor engaging in sexually explicit conduct. In August 2012, the images were discovered on the defendant's cell phone by his wife who reported the images to the Livingston County Sheriff's Office.
The sentencing is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the Livingston County Sheriff's Office, under the direction of Undersheriff James Szczesniak, and the Livingston County District Attorney's Office under the direction of Greg McCaffrey.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Canadian Nexus Pass Holder Charged with Possessing AR-15 Rifle and False StatementRead the Press Release
BUFFALO, N.Y.---U.S. Attorney William J. Hochul, Jr. announced that David B. Patel, 39, of Niagara Falls, Ontario, was arrested in Niagara Falls, New York, and has been charged with unlawful possession of a firearm by an alien and with making a materially false statement to a U.S. Customs and Border Protection officer. The firearm possession charge carries a maximum sentence of 10 years in prison and a $250,000 fine. The false statement charge carries a maximum sentence of 5 years in prison and a $250,000 fine.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that on July 24, 2013, Patel ordered an AR-15 upper receiver over the Internet from a firearms dealer in the United States. Patel requested that the dealer ship the item to a postal address in Niagara Falls, New York. Then, on August 10, Patel – a NEXUS pass holder – entered the United States at the Whirlpool Bridge Port of Entry in Niagara Falls, New York, and told a Customs and Border Protection officer that he was entering the United States to shop at Wal-Mart and Sam’s Club. Instead, however, Patel went straight to the postal address in Niagara Falls, New York, and retrieved the package containing the AR-15 upper receiver. He was immediately arrested.
Patel made his initial appearance today in U.S. District Court, before the Honorable Hugh B. Scott, and was released on a $5,000 cash bond. His next court date is scheduled for August 30, 2013 also before Magistrate Judge Scott.
The criminal complaint is the result of an investigation on the part of the United States Homeland Security Investigations under the direction of Special Agent in Charge James Spero.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Buffalo Men Indicted for Rash of Bank RobberiesRead the Press Release
BUFFALO, N.Y.- U.S. Attorney William J. Hochul, Jr. announced today that Jason Berg, 22, of Buffalo, N.Y., Jeffery Turner, 23, of Buffalo, NY, and Donovan Devost, 20, of Buffalo, NY, were separately indicted by the Federal Grand Jury for bank robbery. Each defendant faces a maximum penalty of 20 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Melissa Marangola, who is handling the cases, stated that according to the indictments, Jason Berg robbed three banks on April 26, 2013, May 16, 2013, and June 12, 2013. Donovan Devost robbed three banks in Buffalo, New York, on April 30, 2013, June 19, 2013, and June 21, 2013. Jeffery Turner robbed two banks on June 13, 2013, and July 1, 2013.
Although the defendants are currently charged in separate indictments, the 8 bank robberies are similar. In each robbery, the suspect passed the tellers a handwritten note, threatening the use of a firearm and other similar language. The defendants will appear for arraignment before Magistrate Judge McCarthy on August 14, 2013 at 11:30 a.m.
The Indictments are the result of a joint investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Cheektowaga Police Department, under the direction of Chief David J. Zack, the Niagara Frontier Transit Authority Police, under the direction of Chief George Gast, and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Richard M. Frankel.
The fact that a defendants have been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.Buffalo Man Convicted Following Jury Trial of a Drug ChargesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Alexi Caliz, 50, of Buffalo, N.Y., was convicted of possessing, with the intent to distribute. cocaine. The charge carries a mandatory minimum sentence of 5 years and a maximum of 40 years in prison, a $5,000,000, fine or both.
Assistant U.S. Attorneys John M. Alsup and Melissa M. Marangola, who handled the trial, stated that on August 10, 2012, detectives with the Niagara Falls Transit Authority intercepted a suspicious package found to contained approximately 980 grams of cocaine concealed inside a muffler. Agents with the Drug Enforcement Administration, assisted by officers with the Buffalo Police Department and the Town of Cheektowaga Police assisted in the search of the defendant’s residence after he signed for and accepted the package.The verdict is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Niagara Falls Transit Authority Police, under the direction of Chief George Gast, and Town of Cheektowaga Police Department, under the direction of Chief David J. Zack.
Sentencing is scheduled for December 5, 2013 at 9:00 a.m. before Chief U.S. District Judge William M. Skretny who presided over the trial.Rochester Man is Sentenced in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.-- United States Attorney William J. Hochul, Jr. announced today Paul Hearty, 37, of Rochester, New York, was sentenced to 10 years in prison and 15 years of supervised release by United States District Judge Frank P. Geraci, Jr., after pleading guilty to a one count felony information charging him with knowing possession of child pornography.
Assistant U.S. Attorney Tiffany H. Lee, who handled the prosecution for the Government, stated that in December 2010, New York State Police's Internet Crimes Against Children Task Force received information that an AOL user was sending child pornography to an account used by a particular Internet Protocol address. The subscriber of the Internet Protocol address was identified as Hearty, residing at Alexander Street, in the City of Rochester. New York State Police executed a search warrant in April 2011 and images of child pornography were found on Hearty's Samsung smart phone.
In 2005, Hearty was convicted in Monroe County of the Possession of an Obscene Sexual Performance By A Child Less Than 16 Years Old. Following his conviction, Hearty was required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.The sentence was the culmination of an investigation on the part of the United States Homeland Security Investigations under the direction of Special Agent in Charge James Spero, the New York State Police Computer Crimes Unit under the direction of Captain Frank Pace and the Monroe County District Attorney's Office under the direction of Sandra Doorley.
Williamsville Man Pleads Guilty to Bomb MakingRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced that Duncan Badding, 25, of Williamsville, N.Y., pleaded guilty before United States District Chief Judge William M. Skretny, to unlawfully making and unlawfully possessing destructive devices. This offense carries a maximum penalty of 10 years in prison, a $250,000 or both.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that on August 8, 2012, the Amherst Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives executed a search of the defendant’s residence, at 66 Williamsburg Square in Williamsville. During the search, law enforcement officers discovered different volatile and explosive substances, chemicals and mixtures. Upon further inspection, several of the substances were homemade explosives, including, Triacetone Triperoxide (TATP), a mixture of ammonium nitrate and fuel oil (ANFO), and a mixture of Tannerite. In addition, several apparent destructive devices, or combination of parts and devices designed or intended to be used or converted into destructive devices, were also found. The explosive materials were later detonated by law enforcement officials so as to remove the threat of harm to the community.
The guilty plea was the culmination of an investigation on the part of officers from the Amherst Police Department, under the direction of Chief John Askey, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Resident Agent in Charge Frank Christiano.
A Sentencing date will be scheduled, at a later date.
Man sentenced for transporting minor in interstate commerce to engage in illegal sexual activityRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Timothy Logsdon, 29, of Batavia, NY, who was convicted of transporting an individual in interstate commerce for the purpose of engaging in illegal sexual activity on April 18, 2013, was sentenced to 56 months in prison by U.S. District Judge, Richard J. Arcara.
Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that defendant was convicted of this offense as a result of his attempting to transport a minor from Western New York to Tennessee for purposes of engaging in illegal sexual activity with the minor.The investigation began in September, 2012, when the parents of a 16 year old girl female reported her missing to the Genesee County Sheriff’s Department, and later indicated to the FBI that she might be with the defendant. Pursuant to a Court Order, law enforcement officers traced the defendant’s cellular telephone to a specific vicinity. Later that same day, the defendant was discovered by the Kentucky State Police in Bowling Green, Kentucky, along with the victim. The defendant admitted to law enforcement officers that he was in the process of transporting the victim to the state of Tennessee where the two planned to live together and carry on a relationship. The defendant was placed under arrest and remains in custody.
"This is an example of the success that alert parents and hard working police can accomplish," said U.S. Attorney Hochul.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.The arrest is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Richard M. Frankel, Acting Special Agent in Charge and the Genesee County Sheriff's Department, under the direction of Sheriff Gary Maha.
Lockwood Pleads to Drug ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Dale Lockwood, 60, of Buffalo, N.Y., pleaded guilty to conspiracy to possess with intent to distribute cocaine. The plea, entered before United States District Court Judge Richard J. Arcara, carries a mandatory minimum penalty of 5 years in prison, a maximum penalty of 40 years incarceration, and a $1,000,000 fine.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who is handling the case, stated that the Government’s investigation determined that Lockwood supplied cocaine to John Smith, aka Kazoo, a National Vice President of the Afro Dogs motorcycle club. At the time of his arrest, agents recovered from Lockwood $73,255.00 in US Currency, eight firearms, and various ammunition.
A May, 2013 trial involving Lockwood ended in a mistrial when the jury could not arrive at a verdict. In addition to today’s criminal conviction, Lockwood also faces a criminal forfeiture of an additional $50,000 and any interest he may have in the Afro Dogs Club House at 1093-1095 Genesee Street, Buffalo, New York. The Lockwood conviction closes the Government’s investigation which has resulted in 8 other convictions to date.
Sentencing is scheduled for December 9, 2013 at 12:30 p.m.
This plea is the culmination of an investigation by the Drug Enforcement Administration under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division.Lockport man sentenced on drug conspiracy charge and detroit man pleads guilty to money laudering chargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Justin McTigue, aka “Diddy”, 29, of Lockport, NY, was sentenced to 6 years in prison followed by 4 years supervised release after being convicted of conspiracy to possess with intent to distribute, and to distribute, cocaine base, by U.S. District Chief Judge William M. Skretny.
Also today, LeShawn Woodard, 29, of Detroit, Michigan, pleaded guilty before U.S. Magistrate Judge Leslie G. Foschio, to a money laundering charge for engaging in unlawful monetary transactions involving criminally derived property greater than $10,000 in value, which carries a maximum penalty of 10 years in prison, a $250,000 fine, or both.
McTigue and Woodard are two of twenty defendants convicted as a result of an investigation involving narcotics trafficking in Lockport, New York.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled these cases, stated that McTigue sold cocaine base in the Lockport, New York area from 2009 through August, 2010, which was supplied to him by co-defendant Damian Ard. Ard was convicted of conspiracy to possess with intent to distribute cocaine base, and is scheduled to be sentenced by Judge Skretny on October 1, 2013 at 9:00 a.m.
Regarding defendant Woodard, from March, 2009, through June, 2009, Woodard deposited bank checks into bank accounts, and transferred United States currency in excess of $40,000 on behalf of Will Johnson. These funds were proceeds of Johnson’s drug distribution activities. On December 27, 2012, Johnson was convicted of conspiracy to possess with intent to distribute 5 kilograms or more of cocaine and money laundering conspiracy. Johnson is scheduled to be sentenced by Judge Skretny on August 29, 2013 at 9:00 a.m.
These conviction are the culmination of an investigation by the Drug Enforcement Agency under the direction of Resident Agent in Charge Dale Kasprzyk, Federal Bureau of Investigation under the direction of Richard M. Frankel, Acting Special Agent in Charge, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the Niagara County Drug Task Force.Annette Kendrick - Arraigned on Computer Intrusion ChargeRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today ANNETTE KENDRICK, 40, of Marietta, Georgia was arraigned before Magistrate Judge Marian W. Payson, pursuant to her being charged in a Criminal Complaint with intentionally causing damage to a protected computer domain in violation of Title 18, United States code, Section 1030(a)(5)(A). The charges carry a maximum penalty of 10 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Bradley E. Tyler stated that in April 2013, employees of Iberdrola, a company headquartered in Rochester, New York, reported that Iberdrola was the victim of a computer intrusion. In response to that report, law enforcement agents determined that on or about April 4, 2013, the defendant Kendrick, using the log in credentials of another individual, logged into Iberdrola’s computerized job application system, modified a job posting, modified questions on the posting, sent e-mails to agencies about the posting, and sent e-mails to job applicants saying they were no longer being considered for the position.
Magistrate Judge Payson set the next court appearance for the defendant Kendrick on September 12, 2013.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Former Erie County Correctional Facility Deputy Sentenced for Violating Civil Rights of InmateRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Josephine Cutolo, 54, of Buffalo, N.Y., who was convicted of deprivation of rights under color of law, was sentenced to one year probation to include six months home detention with electronic monitoring, by U.S. Magistrate Judge Hugh B. Scott.
Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that on August 18, 2012, the defendant, a deputy with the Erie County Sheriff’s Department, was one of several deputies who was present after an altercation involving two inmates. After the altercation was over, and while one of the inmates was in handcuffs, subdued and being escorted by two other deputies, the defendant approached the subdued inmate and sprayed him with O.C. chemical spray, asking how he liked the spray. Cutolo specifically aimed the painful chemical spray a few inches from the victim’s face, resulting in the chemical released spraying the victims face, chin and shoulder area.
The sentencing is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.US Attorney's Office Exceeds $70,000,000 in Recoveries from Affirmative LitigationRead the Press Release
BUFFALO – U.S. Attorney William J. Hochul, Jr. announced today that the U.S. Attorney's Office collected $71,086,677 in the past twelve months, with all such monies coming solely from affirmative civil litigation. This amount – one of the highest ever obtained by the Office – does not include financial recoveries obtained by the Office using criminal, forfeiture or other enforcement tools, such as the more than $11 million obtained this week from John Gizzi, a defendant convicted of criminal tax fraud.
“While the public well knows of the Office’s ability to prosecute those who hurt others, cases brought by this Office’s ACE Unit are other ways in which we ensure the American public is protected against fraud and abuse,” said U.S. Attorney Hochul.
As part of its statutory responsibilities, the United States Attorney’s Office enforces federal criminal laws, including terrorism, environmental, narcotics, fraud, and more. In addition, the Office defends in court a wide number of federal agencies, such as the Veteran’s Administration and Post Office, when such agencies are sued by others. A sometimes lesser known power of the Office includes the ability to sue in court those who commit fraud against some of the U.S. Government’s programs, such as health care, procurement, and others. This is known as Affirmative Civil Litigation, and is handled by the Office’s Affirmative Civil Enforcement Unit, or ACE Unit.
As examples of cases which were successfully brought by the Office’s ACE Unit over the past twelve months, earlier this month, the Office announced a more than $34,000,000 settlement with 55 hospitals located throughout 21 states. These health care facilities submitted false claims to Medicare for a certain procedure known as kyphoplasty. Instead of billing the U.S. Government for what should have been the minimally-invasive, out-patient Kyphoplasty procedure, the hospitals submitted to and collected from the Government payments from what appeared to be multi-day in-patient stays in the facilities.
In March 2013, the U.S. Attorney's Office used its affirmative litigation power to obtain a settlement of $33,500,000 from ISTA Pharmaceuticals. This case involved ISTA misbranding the drug Xibrom so as to increase sales nationwide.
The ACE Unit’s accounting year ended July 31, which was the reason why the total figure of $71 million was released today. U.S. Attorney Hochul concluded by noting that while the $71 million recovery is itself significant, the Office also participated in a recent recovery of $335,000,000, which was part of the countrywide litigation conducted by the WDNY and other United States Attorney’s Offices.
The ACE Unit, which is supervised by Assistant U.S. Attorney Mary Pat Fleming, includes Assistant U.S. Attorney Gretchen Wylegala, Investigator Margaret McFarland, Auditor Theresa Tetlow, and Paralegal Jessica Rogers.
Florida Man Sentenced to 24 Years in Prison for Conspiring to Kill Federal JudgeRead the Press Release
BROOKLYN, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Dejvid Mirkovic, 38, of Lake Worth, Florida, was sentenced by U.S. District Judge John Keenan to 24 years in prison for conspiring to murder the U.S. District Judge (the “federal judge”) who presided over the boiler room fraud conviction of Mirkovic’s coconspirator, a close business associate. Mirkovic and his coconspirator agreed to pay $40,000 to an undercover police officer, who they thought was a hit-man, to kill the federal judge as well as the Assistant U.S. Attorney (the “federal prosecutor”) who successfully handled the coconspirator’s fraud prosecution. Mirkovic paid the undercover officer $22,000 in cash as a down payment for the murders of the federal judge and the federal prosecutor.
In addition to the term of imprisonment, Judge Keenan sentenced Mirkovic to five years of supervised release and the forfeiture of over $200,000, a car and four firearms.
According to case filings and statements at Mirkovic’s guilty plea proceeding, law enforcement authorities learned of the plot in August 2012, when a confidential informant reported that Mirkovic’s coconspirator stated he wanted to torture and kill the federal judge and the federal prosecutor and asked the informant for assistance in arranging for a hit-man to carry out the murders. During the subsequent investigation, two undercover law enforcement officers, posing as hit-men, met with Mirkovic and the coconspirator numerous times at locations on Long Island, including at the Nassau County Correctional Center (“NCCC”), where the coconspirator was being held. At one of the first meetings, the coconspirator offered to pay one of the undercover officers $3,000 to assault an individual with whom the coconspirator had a financial dispute. Mirkovic then met with one of the undercover officers and paid him $1,500 as a down payment for the assault. After one of the undercover officers showed proof of the purported assault of John Doe – in fact, a staged photograph and an identification card for John Doe – Mirkovic paid the undercover officer the $1,500 balance.
Later that same day, Mirkovic again met with the undercover officer, relayed the coconspirator’s instructions to murder the federal judge and federal prosecutor, and offered $40,000 for commission of the two murders. Mirkovic also gave the undercover officer a $12,000 down payment and paid an additional $10,000 the following week. Mirkovic promised payment of the final $18,000 upon confirmation of the murders. At the time of Mirkovic’s arrest at his home in Lake Worth, Florida, law enforcement officers recovered $18,000 in cash and a loaded 9mm semi-automatic handgun.
In pleading guilty on March 13, 2013, Mirkovic admitted under oath that he agreed to kill the federal judge in retaliation for the performance of the judge’s duties. Mirkovic further admitted under oath that he traveled to the Eastern District of New York in the fall of 2012 and made a down payment for the murder.
The sentence was the latest development in an investigation handled by Special Agents of the Federal Bureau of Investigation, New York Office, under the direction of Assistant Director-in-Charge George Venizelos. The government’s case is being prosecuted by Assistant United States Attorneys Marshall L. Miller, Una A. Dean, and Brian Morris of the Eastern District of New York, under the supervision of U.S. Attorney William J. Hochul of the Western District of New York.Two-Time Felon Sentenced to Federal Prison for Drug Trafficking and Firearms ChargesRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Warren Love, 36, of Rochester, N.Y., who was convicted by a jury of possession of cocaine with the intent to distribute, maintaining a drug involved premises, possession of firearms in furtherance of drug trafficking crimes, and possession of firearms and ammunition while being a convicted felon, was sentenced to 13 years in prison and six years supervised release by U.S. District Court Judge David G. Larimer.
Assistant U.S. Attorneys Craig Gestring and Charles E. Moynihan, who handled the case, stated that Love was arrested following the execution of two search warrants by members of the Greater Rochester Area Narcotics Enforcement Team at 399 Lake Avenue on April 6, 2010. Upon entering the location, officers encountered and arrested the defendant at the threshold of the rear first floor apartment.
In searching the rear first floor apartment, law enforcement officers located and seized over 19 grams of crack cocaine which was in the process of being packaged for street level sale. Officers also located paraphernalia associated with drug trafficking, including digital scales and glassine ziplock bags. In addition to these items, law enforcement officers located and seized two bullet proof vests and two handguns, one of which was loaded with ten rounds of ammunition.
In searching the rear second floor apartment, officers also located a sophisticated surveillance system which showed the area outside of 399 Lake Avenue through the use of strategically mounted surveillance cameras. Officers located, in the same apartment, paraphernalia related to drug trafficking, as well as a loaded 40 caliber rifle which was underneath a sofa. Finally, officers found the defendant's four-year old son playing in the living room in which they found the loaded rifle.
The sentencing is the result of an investigation on the part of the Greater Rochester Area Narcotics Enforcement Team composed of law enforcement personnel from the Bureau of Alcohol, Tobacco, Firearms and Explosives under the direction of Resident Agent in Charge Scott Heagney, the Rochester Police Department, under the direction of Chief James M. Sheppard and Irondequoit Police Department, under the direction of Richard Boyan.
Rochester Woman Pleads Guilty to Bring Marijuana into a Federal PrisonRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Shanna Nix, 24, of Rochester, N.Y., pleaded guilty to providing contraband to an inmate at a federal correctional institution before U.S. District Court Judge Frank P. Geraci. The charge carries a maximum penalty of five years in prison and a fine of up to $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the defendant was visiting a friend who was an inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania. During that visit, Nix was observed on surveillance video placing four balloons filled with marijuana into a bag of food she was sharing with the inmate. Before the inmate could ingest the balloons, corrections officers intercepted them.
The defendant was originally indicted in the Western District of Pennsylvania, but the case was transferred to the Western District of New York for the plea.
Sentencing is scheduled for November 6, 2013 at 3:30 p.m. before Judge Geraci.
Rochester Man Sentenced in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Anthony Davis, 43, of Rochester, N.Y., who was convicted of production of child pornography, was sentenced to 15 years in prison and 15 years of supervised release by the U.S. District Judge Frank P. Geraci, Jr,.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that in July 2012, City of Rochester Police received a report from a cooperating witness who found a sexually explicit video of a seven-year old minor child on a smart phone belonging to the defendant. The cooperating witness was able to identify the minor victim and was able to identify Davis's voice from the video. The defendant used the minor to produce a sexually explicit image with his smart phone.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation Cyber Crime Task Force, under the direction of Acting Special Agent in Charge Richard M. Frankel, the City of Rochester Police Department, under the direction of Chief James Sheppard and the Monroe County District Attorney's Office, under the direction of Sandra Doorley.
Elmira Man Indicted on Gun ChargeRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a single-count indictment charging Marques Cayne, 30, of Elmira, N.Y., with being an armed career criminal in possession of firearms and ammunition. The charge carries a mandatory minimum sentence of 15 years in prison, a maximum of life, a fine of $250,000.00, or both.
Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that according to the indictment, the defendant possessed two loaded semi-automatic handguns on January 4, 2013. Members of the New York State Department of Corrections and Community Supervision went to the defendant’s residence in Elmira to conduct a compliance check on the defendant, who was on parole supervision at the time. While there, officers, assisted by members of the Elmira Police Department, discovered the two handguns in the defendant’s bedroom.
The indictment is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge, Rochester Field Office, Scott Heagney, and Resident Agent in Charge, Buffalo Field Office, Francis J. Christiano, members of the Elmira Police Department, under the direction of Chief Michael Robertson, and members of the New York State Department of Corrections and Community Supervision.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Canadaigua Man Sentenced on Tax ChargesRead the Press Release
Rochester, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Richard Williams, of Canandaigua, N.Y., who was convicted of attempting to evade income tax for the year 2010, was sentenced to three years probation and ordered to pay $123,638 in restitution to the Internal Revenue Service by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Bradley E. Tyler, who handled the case, stated that the defendant was the owner and sole proprietor of Richard’s Paving. For the year 2010, Williams failed to report employee wages to the IRS by providing false Social Security Numbers (SSN’s) to various customers and by directing all of his customers to write checks to him personally. The defendant then cashed the checks at the customer’s bank instead of depositing the checks into a business bank account and provided false SSN’s to the banks.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The sentencing is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of under the direction of Toni M. Weirauch, Special Agent in Charge.Rochester Business Owner Pleads Guilty to Tax Crimes; Will Pay $11.5 Million to the GovernmentRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced that John P. Gizzi, 64, of Rochester, N.Y., pleaded guilty to filing false tax returns in 2008 and 2009 before U.S. District Court Judge Frank P. Geraci. Jr. The charges carry a maximum sentence of six years in prison, a $500,000 fine, or both. In addition, a corporation owned by Gizzi, Rochester Machinery Suppliers, Inc., pleaded guilty to aiding and abetting the preparation of a false tax return.
In addition to paying the $1,901,633 in criminal restitution for taxes that he owes, Gizzi will also forfeit $1,500,000 to the Government in a related proceeding brought by the United States Attorney's Office. Rochester Machinery Suppliers, Inc., Gizzi's corporation, will pay a $500,000 fine for its role in assisting Gizzi's tax crimes. Finally, and as stated in Court today, the defendant will pay $7,623,431 to settle related civil claims with the Internal Revenue Service. This brings the total to be paid by Gizzi to the Government to $11,525,064.
“To hide this amount of money in an effort to avoid paying one’s fair share in taxes is really an insult to all Americans who play by the rules,” said U.S. Attorney Hochul. “Let this case serve as a warning that no one – including the wealthy – is above the law.”
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Gizzi owned and managed several entities, including Rochester Machinery Suppliers, Inc.. The defendant misused his entities to conceal income and artificially inflate expenses in several complex schemes. By misrepresenting the truth on his tax returns, Gizzi evaded paying $1,901,633 in federal income taxes.
One of Gizzi's schemes involved concealing cash compensation that he earned from sales of scrap metal generated by his entities. The defendant obtained at least $1,920,729 in cash from his scrap metal sales, but reported none of it on his tax returns. In another scheme, Gizzi hid and then failed to report, $2,195,084 in income from rent, expense reimbursements and transportation billings generated by his entities. Finally, the defendant used his entities to claim $1,320,638 in bogus expenses that he was not entitled to claim.
U.S. Attorney Hochul noted that today’s convictions represent yet another multi-million dollar judgment impacting the Rochester area, all obtained in the past two months. On May 24, 2013, the Office announced the criminal conviction of ISTA Pharmaceuticals, a company acquired by Bausch + Laumb. The company paid the United States $33.5 million to resolve criminal and civil liability arising from its marketing, distribution and sale of its drug Xibrom.
Last week, the United States Attorney’s Office secured the conviction of Debra Bulter, former Program Administrator for the University of Rochester’s Department of Anesthesiology. Bulter admitted defrauding both the University of Rochester, and a Medical Group, of approximately $3.9 million.
The Gizzi plea is the result of an investigation by Internal Revenue Service, Criminal Investigations, under the direction of Toni M. Weirauch, Special Agent in Charge and the Internal Revenue Service, Large Business and International Division, Financial Services Industry in Upstate New York.
Sentencing is scheduled for November 4, 2013 at 3:00 p.m. before Judge Geraci.Elmira Woman Indicted for Embezzling Workers Pension and Health Care MoneyRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a three count indictment charging Linda Riner, 62, of Elmira, N.Y., with embezzling money from Local Laborer’s 1358 employee pension and welfare benefit funds and lying to federal investigators about this matter. Each charge carries a maximum sentence of five years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Riner was the Funds Administrator of the Local Laborer’s 1358 employee benefit plans, and owed those plans a fiduciary duty. Instead of honoring that duty, the defendant took advantage of her position to pay herself and her staff thousands of dollars in “Christmas bonuses” without authorization. In addition, when interviewed by Special Agents with the Federal Bureau of Investigation and Department of Labor about these bonuses, Riner sought to mislead investigators by claiming that the payments had been approved. In total, the defendant stole approximately $9,000 from the plans.
The indictment is the result of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel and the Department of Labor, under the direction of Special Agent in Charge Robert Lapina.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Texas Man Sentenced for Presentation of False Information to Customs OfficersRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney, William J. Hochul, Jr., announced that Mark Logan, 63, of Southlake, Texas, pleaded guilty to presenting false information to customs officers and sentenced to pay a $5,000 fine by U.S. Magistrate Judge Leslie G. Foschio.
Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that the defendant was President of Nevada Classics, a classic car dealership, in Las Vegas, Nevada. In that role, Logan facilitated the sale and transportation of a 1957 replica Shelby Cobra automobile from a Canadian seller to a buyer in the United States. William Corum, a contractor who had done work for Nevada Classics in the past, was paid by the buyer to transport the vehicle over the U.S. border, using Nevada Classics dealer license plates. In an effort to circumvent importation restrictions, Logan instructed Corum to tell Customs and Border Protection Officers that the vehicle was being transported into the U.S. for one day, for a car show.
Customs and Border Protection Officers suspected that the vehicle was in fact being illegally imported into the U.S. for sale, and initiated further investigation into the matter. The vehicle, which is worth approximately $85,000, was seized by officers.
The plea and sentencing are the result of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and Officers from U.S. Customs and Border Protection, under the direction of James Engleman, Director of Field Operations.Customs and Border Protection Supervisor Pleads Guilty to Possession of Child PornographyRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Steven Metz, 41, of Hamburg, New York, pleaded guilty before U.S. District Court Judge William M. Skretny, to Possession of Child Pornography. The defendant is a former supervisor with U.S. Customs and Border Protection. The charge carries a maximum possible sentence of ten years imprisonment, a fine of $250,000 and a term of supervised release of at least five years to life.
Assistant U.S. Attorney Marie P. Grisanti stated that on or about October 25, 2012, Steven Metz was found to possess images and videos of child pornography on his computer, at his residence in Hamburg, New York. The defendant possessed over 600 images of child pornography. Some of these files contained sadistic or masochistic conduct or other depictions of violence, and some of the children shown in the images and videos were prepubescent and under the age of 12 years. The defendant emailed child pornography to others through the Internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea was the culmination of an investigation on the part of Special Agents of the U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Special Agents of the Department of Homeland Security, Office of Inspector General, under the direction of Special Agent in charge Gregory Null, and officers of the Hamburg Police Department under the direction of Chief Michael K. Williams.
Sentencing is scheduled for November 12, 2013 at 9:00 a.m. before Judge Skretny.Corning Woman Sentenced for Lying to Social Security AdministrationRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Phyllis Stevens, 51, of Corning, N.Y., who was convicted of making and submitting a false document to the Social Security Administration, was sentenced to three years of probation and ordered to pay $17,468 in restitution by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Stevens collected disability benefits from the Social Security Administration while she was gainfully employed and ineligible to receive such benefits. The defendant attempted to conceal her employment from the Social Security Administration by submitting a false document stating that she was not working. As a result, Stevens collected $17,468 in disability benefits that she was not entitled to receive.
The sentencing is the culmination of an investigation on the part of Special Agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Edward J. Ryan.Tonawanda Man Indicted for Selling Deadly Heroin Cocktail that Resulted in the Death of a Local ManRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a grand jury has handed down a 10 count indictment charging Peter N. Militello, 32, of Tonawanda, N.Y., with possession with intent to distribute and distribution of heroin and crack cocaine. The charges carry a mandatory minimum penalty of 20 years in prison, a maximum of life, a fine of $1,000,000 or both.
Assistant U.S. Attorney Eric M. Opanga, who is handling the case, stated that according to the indictment, between January 25 2010 and June 6, 2013, the defendant sold heroin and crack cocaine on several occasions in the City of Buffalo. On May 23, 2013, Militello sold a heroin and fentanyl mixture to an individual residing in Buffalo. Several hours later, the man was found dead in his residence by a family member. An autopsy performed on the man found that he died as a result of acute intoxication from the heroin and fentanyl mixture.
"This is the first prosecution involving this deadly mixture of heroin and fentanyl," said U.S. Attorney Hochul. "Our Office in collaboration with our law enforcement partners at every level, have joined together to warn the public of the deadly consequences of this emerging threat. The community needs to know the dangers of this mixture which can result in death in mere minutes after it enters the body. Let this case serve as a warning to anybody who engages in the trafficking of any illegal narcotics that we will vigorously track you down and bring you to justice."The indictment is the result of an investigation on the part of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, and the Cheektowaga Police Department, under the direction of Chief David Zack.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Buffalo Woman Arrested, Charged with Bank RobberyRead the Press Release
BUFFALO, N.Y.–The United States Attorney’s Office announced today that Adlyn Marie Echevarria Robles, 20, Buffalo, N.Y., was arrested and charged by criminal complaint with committing two bank robberies. The charges carry a maximum penalty of 20 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Melissa Marangola, who is handling the case, stated that according to the complaint, the defendant robbed the M&T Bank, located at 1580 Hertel Avenue in Buffalo, on July 5, 2013, and the M&T Bank, located at 709 Elmwood Avenue in Buffalo, on July 24, 2013. The complaint further alleges that Robles passed notes to the bank tellers indicating she possessed bombs and that she would detonate if she was not provided money.
The defendant made an initial appearance today before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on bond.
The Criminal Complaint is the result of a joint investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda and the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Buffalo Man Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Pascual Giovanny Navarro-Gonzalez, 29, of Buffalo, NY., pleaded guilty before U.S. District Judge Richard J. Arcara, to conspiracy to possess with intent to distribute, and to distribute heroin and cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, a $5,000,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that Navarro-Gonzalez was one of three men arrested on March 6, 2012 after law enforcement officers executed a search warrant at his residence at 39 Montclair Avenue in Buffalo. Officers seized heroin, cocaine, ammunition, and drug paraphernalia. During the investigation, several purchases of heroin were made from Navarro-Gonzalez.
Co-defendants Erick Joel Reyes Barretto and Juan Montanez previously pleaded guilty to conspiracy to possess with intent to distribute heroin and cocaine. Reyes Barretto was sentenced to 60 months in prison, and Montanez is scheduled for sentencing on October 4, 2013.
The plea is the culmination of an investigation on the part of Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, and the Ohio State Highway Patrol, under the direction of Colonel John Born.
Navarro-Gonzalez is scheduled to be sentenced on November 22, 2013 at 12:00 p.m. before Judge Arcara.Williamsville Man Pleads Guilty to Selling Synthetic MarijuanaRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Fawzi Al-Arashi, 34, of Williamsville, N.Y., pleaded guilty to conspiracy to possess with intent to distribute a controlled substance. The charges carry a maximum penalty of 20 years in prison, a $1,000,000 fine, or both.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that the investigation began in early 2012 when the Los Angeles Field Office of the Drug Enforcement Administration (DEA) notified the DEA's Buffalo Field Office of a suspected synthetic marijuana shipment destined for Buffalo. The package was delivered to the defendant at 3407 Delaware Avenue in the Town of Tonawanda, home of "Town Tobacco."
Subsequent investigation revealed that Al-Arashi sold synthetic marijuana, also known as "Spice," under such names as "Strawberry Flavored Potpourri," "Tiger Shack," "Atomic," "G-20," and "California Dreams" out of "Town Tobacco" on Delaware Avenue in Tonawanda, and most recently at "Welcome Welcome" on Main St. in North Tonawanda.
Throughout the investigation, police received numerous complaints regarding the stores. One woman called and stated that her son was in the Erie County Medical Center Psychiatric Ward after using synthetic marijuana that he bought at "Town Tobacco."
On July 25, 2012, authorities executed a search warrant at a warehouse leased to the defendant where he stored the synthetic marijuana, and found some 75 pounds of the products, which were typically sold in small sealed packets.
As part of the plea agreement, Al-Arashi has agreed to forfeit more than $290,000 seized from various of his bank accounts as well as a 2012 Toyota Tundra.“The public needs to be warned anytime a product such as this appears in our community," said U.S. Attorney Hochul. "In the case of synthetic marijuana, not only are the chemicals dangerous, they are illegal. Parents should also be aware that the packages containing these substances may be designed in such a manner as to appeal to children.”
The plea is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Wayne C. Olson, the Tonawanda Police Department, under the direction of Chief Anthony Palombo, the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast, the Amherst Police Department, under the direction of Chief John Askey, and the Cheektowaga Police Department, under the direction of Chief David Zack.Former Tax Preparers Plead Guilty to Tax FraudRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Brenda Jeffries-Silmon, 55, of Cheektowaga, N.Y., and Marcel Richardson-Redden, 58, of Buffalo, N.Y., pleaded guilty before Chief U.S. District Court Judge William M. Skretny to conspiring to defraud the Internal Revenue Service by preparing false tax returns. the charge carries a maximum penalty of five years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that Jeffries-Silmon and Richardson-Redden owned and operated a tax preparation business called R Services. Between January 2005 and January 2009, the defendants filed approximately 58 tax returns on behalf of clients that contained false information, such as improper filing statuses, false dependent exemptions, false claims to the Earned Income Credit, false charitable contributions, false business expenses, and false child care expenses. The false tax returns were filed with the Internal Revenue Service and the New York State Department of Taxation and Finance and resulted in a loss of tax revenue of $195,980.
The pleas are the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, under the direction of Special Agent-In-Charge, Toni M. Weirauch, and with the assistance of the New York State Department of Taxation and Finance, under the direction of Deputy Commissioner Risa Sugarman.Former University of rochester employee pleads guilty to fraudRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Debra Bulter pleaded guilty to conspiracy to commit mail fraud and to money laundering before U.S. District Judge Frank P. Geraci, Jr. Conspiracy carries a maximum sentence of 20 years in prison and a fine of $250,000. Money laundering carries a maximum sentence of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that the defendant worked as the Program Administrator for the Department of Anesthesiology at the University of Rochester in Rochester. The Department of Anesthesiology provides anesthesia services to patients undergoing surgery or other procedures at Strong Memorial Hospital, Highland Hospital and other medical facilities in Rochester. A physician, known as the Chair, oversees the Anesthesiology Department's management and operations. The Program Administrator oversees administrative duties and reports to the Chair.
From 2001 through 2012, an anesthesia medical group, the “Anesthesia Medical Group,” contracted with the Department of Anesthesiology to provide anesthesiologists at medical facilities served by the Department of Anesthesiology. Between 2003 to 2008, two doctors (the “two Group doctors”) from the Anesthesia Medical Group individually contracted with the Department of Anesthesiology purportedly to provide additional administrative services to the Department of Anesthesiology.
From 2007 through 2012, the defendant participated in several schemes to defraud the Department of Anesthesiology and the Anesthesiology Medical Group. One scheme involved deceiving the Department of Anesthesiology from 2007 to 2009 into making fraudulent payments to the two Group doctors and the Anesthesia Medical Group. The Department of Anesthesiology was provided fraudulent documents, including fraudulent requisition forms and invoices, which made it appear that the two Group doctors and the Anesthesia Medical Group had provided adequate services to the Department of Anesthesiology for such payments. As a result of the fraudulent documents, the Department of Anesthesiology was deceived into paying the two Group doctors $930,000 and the Anesthesia Medical Group $530,000 to which they were not entitled. To compensate the defendant for her participation in the scheme, the Anesthesia Medical Group was deceived into paying the fraudulent money it received from the Department of Anesthesiology to a business started by the defendant, DJA Solutions, Inc.
From January 2010 to September 2012, the Department of Anesthesiology and the Anesthesia Medical Group were deceived into causing a large portion of the compensation earned by the Anesthesia Medical Group from the Department of Anesthesiology to be diverted to the two Group doctors. As a part of the scheme, the two Group doctors each executed fraudulent contracts with the Department of Anesthesiology for the fiscal years 2010 through 2013 which stated that they intended to provide additional administrative services to the Department of Anesthesiology worth more than $3,000,000. These contracts were improperly signed by the defendant on behalf of the Department of Anesthesiology and concealed from the Chair of the Department of Anesthesiology and the other anesthesiologists at the Anesthesia Medical Group. The two Group doctors also caused invoices in their own names to be submitted to the Department of Anesthesiology which falsely represented that they had provided the services listed on such invoices. The scheme caused the Department of Anesthesiology to divert compensation actually earned by the Anesthesia Medical Group to the two Group doctors in the total amount of $1,909,156. To compensate the defendant for her role in this scheme, the Anesthesia Medical Group was deceived into to paying the defendant’s business, DJA Solutions, LLC, more than it was entitled. For the years 2010 through 2012, DJA Solutions, LLC received $1,169,606 from the Anesthesia Medical Group.
Another of the defendant's schemes involved causing the Department of Anesthesiology to make a fraudulent and unauthorized loan to a doctor working for the Department of Anesthesiology. The defendant disguised various payments to the doctor as extra compensation earned by the doctor. The defendant did this by preparing fraudulent payroll documents, which were submitted to the Chair of the Department of Anesthesiology for authorization to pay the extra compensation to the doctor. The Chair signed such forms believing that the doctor was entitled to such extra compensation and was unaware that such payments were actually an improper loan to the doctor. The total amount of the fraudulent payments to the doctor was $510,726.
From October 2012 to May 2012, the defendant also caused the Department of Anesthesiology to pay a former employee of the Department of Anesthesiology $7,168 by disguising the payments as compensation earned by the former employee, when in fact, the former employee was no longer working for the Department of Anesthesiology.
Finally, from March 2009 to June 2012, the defendant submitted expense reimbursement forms totaling $13,097.67 to the Department of Anesthesiology for expenses which she either had already been reimbursed for or were not actual business expenses.
"In a scheme such as this, American taxpayers are defrauded twice," said U.S. Attorney Hochul. "They are defrauded a first time when medicare and medicaid funding is misspent and a second time when private insurance companies are impacted which could ultimately lead to higher premiums. This case serves as an example of the need for checks and balances in any organization. All employees, even those considered to be trusted individuals, need to have their work reviewed by another person."
The plea is the culmination of an joint investigation on the part of the United States Postal Inspection Service, under the direction of Kevin Niland, Inspector in Charge, Boston Division, United States Postal Inspection Service, and the Internal Revenue Service, under the direction of Toni M. Weirauch, Special Agent-In-Charge, New York Field Office.
The defendant is scheduled to be sentenced on November 21, 2013 at 9:30 a.m.
physician pleads guilty to health care fraud chargesRead the Press Release
BUFFALO, N.Y.---U.S. Attorney William J. Hochul, Jr. announced that Daniel C. Gillick, 63, a physician residing in Youngstown, N.Y., pleaded guilty to obtaining controlled substances by fraud and health care fraud. The charges carry a maximum sentence of 10 years in prison, a $500,000 fine or both.
Assistant U.S. Attorney Maura K. O’Donnell and Timothy C. Lynch, who are handling the case, stated that between August 2011 and September 7, 2011, the defendant was employed as an emergency room physician at Schuyler Hospital. During that time, Gillick devised a scheme whereby on September 7, 2011, his girlfriend reported to the emergency room at Schuyler Hospital and pretended to suffer from a medical condition known as Trygeminal Neuralgia. The defendant then performed an apparent examination of her, fraudulently diagnosed her as suffering from Trygeminal Neuralgia and issued a prescription to her for Dilauded, a controlled substance.
In reality, Gillick’s girlfriend was not suffering from this condition, and had no medical need for the drug Dilaudid. In participating in this illegal scheme, the defendant defrauded Schuyler Hospital and also aided and abetted his girlfriend in obtaining a controlled substance by fraud.
“With the abuse of prescription drug medications at epidemic levels in our community and across the country, our Office will not stand for a member of the medical community defrauding the health care system by illegally prescribing such medications,” said U.S. Attorney Hochul. “When used appropriately, prescription pain medications can be of great benefit to a patient but when abused, they can lead to a lifetime of addiction resulting in serious, even deadly complications. Our Office, along with our law enforcement partners, will not hesitate to prosecute those in the medical profession who abuse their positions of trust.”
Gillick and his girlfriend Christina Guilfoyle were arrested in November 2012. Charges are pending again Guilfoyle.
The plea is the result of an investigation on the part of Special Agents of the United States Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Rcihard M. Frankel, the New York State Police, under the direction of Major Michael Cerretto, Customs and Border Protection, under the direction of James Engleman, Director of Field Operations, The New York State Attorney General Medicaid Fraud Control Unit, the Amherst Police Department, under the direction of Chief John Askey, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Lancaster Police Department, under the direction of Chief Gerald Gill, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, the Depew Police Department, under the direction of Chief Stan Carwile, and the Niagara County Sheriff’s Drug Task Force, under the direction of Sheriff James Votour.
Owner of el jimador mexican restaurant sentenced for harboring an illegal alienRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that J. Guadalupe Hernandez, 29, of Farmington, N.Y., who was convicted of harboring an illegal alien, was sentenced three years probation, a $5,000 fine and a forfeiture of $20,000 by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that an investigation by the Immigration and Customs Enforcement discovered illegal aliens working at the defendant's business, El Jimador Mexican Restaurant. During the execution of a search warrant, special agents found three Mexican nationals living in the basement of the restaurant. Hernandez hired the aliens knowing that they were not authorized to work in the United States. The defendant paid the individuals in cash "under the table" and allowed them to live in the basement of the restaurant.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.