Western District of New York

BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Wally Reynolds, 36, of Niagara Falls, N.Y., pleaded guilty before U.S. District Judge Richard J. Arcara, to conspiracy to possess with intent to distribute, and to distribute, 100 kilograms of marijuana. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, a $2,000,000 fine, or both.

Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that Reynolds supervised other individuals in a drug conspiracy who imported marijuana from Canada into the United States. The defendant then distributed the marijuana to his customers in the United States.

The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.

Sentencing is scheduled for May 6, 2013 at 12:30 p.m. before Judge Arcara.

ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Juan Marie Delvalle, 25, of Rochester, N.Y., pleaded guilty before U.S. District Court Judge David G. Larimer to conspiracy to commit tax fraud in connection with a large, nationwide tax refund scheme. The charge carries a maximum penalty of 10 years in prison, a $250,000 fine, or both.

Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that from February 1, 2011 to October 31, 2011, the defendant was involved in a scheme to obtain income tax refunds by the filing of fraudulent federal income tax returns with the Internal Revenue Service. Specifically, stolen identities were utilized to file the fraudulent returns. In addition, the wages and related tax withholdings reported on the returns were fabricated in order to obtain refunds. Most of the returns were filed in the names and social security numbers of individuals residing in Puerto Rico without their knowledge. The refund checks issued as a result of the fraudulent returns were sent to various addresses in Rochester and other locations in the country.

A total of 8,336 returns were filed by a company in Bronx, New York claiming refunds totaling $45,768,391. Refunds totaling $3,321,542.00 for 590 of the returns were sent by the IRS to various locations in the Rochester area. Delvalle retrieved the refund checks sent to Rochester and then forwarded the money to individuals in the New York City area who were responsible for filing the false tax returns.

The plea is the culmination of a joint investigation on the part of the Internal Revenue Service, Criminal Investigation Division, under the direction of Toni Weirauch, Special Agent in Charge, New York Field Office, and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota.

BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Abdi Ali Kulmie, 47, of Toronto, Ontario, pleaded guilty to making false statements to a Customs and Border Protection Officer before Chief U.S. District Court Judge William M. Skretny. The charge carries a maximum sentence of five years in prison, a $250,000 fine or both.

Assistant U.S. Attorney Anthony M. Bruce, who is handling the case, stated that on October 27, 2012, the defendant attempted to enter the United States from Canada at the Peace Bridge. When questioned by Customs and Border Protection officers, Kulmie indicated he was a Somalian citizen, not a citizen of Canada. In fact, the defendant became a naturalized Canadian citizen in the early 1990's and is an Ethiopian.

The plea is the culmination of an investigation by Customs and Border Protection, under the direction of James T. Engleman, Director of Field Operations.