Western District of New York
Press releases recorded for this federal judicial district.
Buffalo Woman Pleads Guilty to Selling Cocaine and Crack CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
www.usdoj.gov/usao/nywBUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Danielle Ruger, 27, of Buffalo, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to conspiracy to possess with intent to distribute cocaine and crack cocaine. The charges carry a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorneys Laura A. Higgins and Misha A. Coulson, who are handling the case, stated that in the early morning hours of June 3, 2018, the defendant was a passenger in a vehicle stopped by the Buffalo Police Department after it was observed committing traffic violations for excessive tinted windows and speeding. Co-defendant Brandon Cooley was driving the vehicle.
Officers searched the vehicle after detecting a strong odor of marijuana coming from it. Quantities of suspected cocaine and crack cocaine were recovered, along with marijuana, a scale, gloves, packaging, and seven cellphones.
Charges remain pending against Brandon Cooley. 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.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for February 27, 2020, before Judge Wolford.
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Buffalo Man Pleads Guilty to Selling Heroin and FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jose Velez, of Buffalo, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny to distribution of heroin and fentanyl. The charge carries a maximum penalty of 20 years in prison, and a fine of $1,000,000.
Assistant U.S. Attorney Justin Bish, who is handling the case, stated that between June 1 and July 12, 2017, the Drug Enforcement Administration conducted five undercover purchases of heroin and fentanyl from the defendant in exchange for cash.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for January 8, 2020, before Judge Skretny.
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WDNY Takes Part in Federal Health Care Fraud TakedownRead the Press Release
FEDERAL HEALTH CARE FRAUD TAKEDOWN IN NORTHEASTERN U.S. RESULTS IN CHARGES AGAINST 48 INDIVIDUALS
Three Plead Guilty to One of Largest Health Care Fraud Schemes Prosecuted Involving Fraudulent Telemedicine Networks Targeting Elderly Patients Nationwide
WASHINGTON – The Justice Department today announced a coordinated health care fraud enforcement action across seven federal districts in the Northeastern United States, involving more than $800 million in loss and the distribution of over 3.25 million pills of opioids in “pill mill” clinics. The takedown includes new charges against 48 defendants for their roles in submitting over $160 million in fraudulent claims, including charges against 15 doctors or medical professionals, and 24 who were charged for their roles in diverting opioids.
In addition to the new charges, today’s enforcement action also includes the guilty pleas of three corporate executives, including the Vice President of Marketing of numerous telemedicine companies and two owners of approximately 25 durable medical equipment companies, for their roles in causing the submission of over $600 million in fraudulent claims to Medicare. This is one of the largest health care fraud schemes ever investigated by the FBI and the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and prosecuted by the Department of Justice, which previously resulted in charges against 21 other defendants. The enforcement action also includes three additional recent guilty pleas by other defendants. In addition, the Centers for Medicare & Medicaid Services, Center for Program Integrity (CMS/CPI) announced today that all appropriate administrative actions would be taken based on these charges. As part of the announcement in April, CMS/CPI announced that it took administrative action against 130 DME companies that submitted over $1.7 billion in claims to the Medicare program.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the District of New Jersey, Eastern District of Pennsylvania, Western District of Pennsylvania, Eastern District of New York, Western District of New York, District of Connecticut and District of Columbia. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, IRS-Criminal Investigations (IRS-CI), Department of Defense-Defense Criminal Investigative (DoD-DCIS), Food and Drug Administration-Office of Inspector General (FDA-OIG), U.S. Postal Service-Office of Inspector General (USPS-OIG), the Medicaid Fraud Control Unit and other federal and state law enforcement agencies participated in the operation.
The charges and guilty pleas announced today continue to target corporate health care fraud involving fraudulent telemedicine companies and the solicitation of illegal kickbacks and bribes from health care suppliers in exchange for the referral of Medicare beneficiaries for medically unnecessary durable medical equipment and other testing. The charges also involve individuals contributing to the opioid epidemic, including medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the Centers for Disease Control, approximately 115 Americans die every day of an opioid-related overdose.
Today’s arrests and guilty pleas come one-year after the Department of Justice announced the formation of the Newark/Philadelphia Regional Medicare Fraud Strike Force, a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section, the U.S. Attorney’s Offices for the District of New Jersey and the Eastern District of Pennsylvania, as well as law enforcement partners. The Strike Force focuses its efforts on aggressively investigating and prosecuting complex cases involving patient harm, large financial loss to the public fisc, and the illegal prescribing and distribution of opioids and other dangerous narcotics.
“Physicians and other medical professionals who fraudulently bill our federal health care programs are stealing from taxpayers and robbing vulnerable patients of necessary medical care. The medical professionals and others engaging in criminal behavior by peddling opioids for profit continue to fuel our nation’s drug crisis,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice will continue to use every tool at our disposal, including data analytics and traditional law enforcement techniques, to investigate, prosecute, and punish this reprehensible behavior and protect federal programs from abuse.”
“As today’s takedown demonstrates, this Strike Force has produced precisely what we hoped it would – and by that I mean tangible results,” said U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania. “We have brought together a wealth of resources, knowledge, and subject-matter expertise – that of health care fraud prosecutors, civil enforcement assistant U.S. attorneys, data analysts, and law enforcement agencies – all working to stop fraud, waste, and abuse within our federal health care programs and to stem the tide of illegal opioid distribution. These are top priorities of the Department of Justice and my Office, and our focus in this area continues to pay off.”
“Under the law, healthcare professionals are obligated to exercise appropriate care and judgment in the manner in which opiates are prescribed and distributed in order to ensure that such substances are, in fact, ‘controlled,’” said U.S. Attorney James P. Kennedy Jr. of the Western District of New York. “When such professionals abandon that obligation and instead engage in acts of fraud and deceit, they will be prosecuted.”
“As alleged, defendants charged in the Eastern District of New York used fraud and deceit to steal Medicaid and Medicare funds meant to protect our elderly and most vulnerable residents,” stated U.S. Attorney Donoghue of the Eastern District of New York. “As this initiative demonstrates, we will continue to bring to justice those that defraud our nation’s health care programs.”
“We continue to work closely with our law enforcement partners to identify, investigate and eliminate fraud, waste and abuse in the nation’s federal healthcare programs,” said Deputy Administrator and CPI Center Director Alec Alexander. “In this case, CMS will take swift administrative action against providers responsible for fraudulent billings to federal healthcare programs. CMS is committed to protecting vulnerable beneficiaries from exploitation and safeguarding taxpayer dollars.”“The FBI does not care about your status in life, your professional standing, your level of income, or your personal connections when you break the law," said Assistant Special Agent in Charge Wayne Jacobs of the FBI’s Newark Field Office. “If you try to scam the system, if you exploit your professional license just to pad your pockets, if you mortgage your morals just to inflate your bank account, you will only find yourself in deeper debt. We are committed to protecting the public; we are intent on rooting out fraud and corruption; we are duty-bound to track down and arrest anyone who is breaking our federal laws. Don’t be next.”
“Healthcare fraud is not a victimless crime—with unscrupulous providers preying on Medicare beneficiaries and taxpayers alike. Especially insidious is the fraud committed by healthcare professionals who are trusted to provide needed, quality services to patients,” said Special Agent in Charge Scott J. Lampert of HHS-OIG. “With our law enforcement partners, our agency will continue to thoroughly investigate medical providers and others involved in healthcare fraud.”
“The physicians who chose to violate their oaths to “Do no harm” are nothing more than drug dealers wearing a white lab coat,” said Special Agent in Charge Susan A. Gibson of the Drug Enforcement Administration’s New Jersey Field Division. “They have turned their backs on those most vulnerable. We will continue to vigorously pursue these doctors who violate the faith and trust of those who need help.”
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Among those charged in the District of New Jersey are the following:
Elliot Loewenstern, 56, of Boca Raton, Florida, the vice president of marketing of purported call centers and telemedicine companies, pleaded guilty on Sept. 24, 2019, for his role in one of the largest health care fraud schemes ever investigated by the FBI and HHS-OIG and prosecuted by the Department of Justice, which resulted in charges in April 2019 against 24 defendants. Loewenstern pled guilty to one count of conspiracy to defraud the United States and pay and receive health care kickbacks, and one count of solicitation of health care kickbacks. Loewenstern was the Vice President of Marketing of PCS CC LLC and a marketer for Video Doctor USA (Video Doctor) and Telemed Health Group LLC (AffordADoc) (collectively, the Video Doctor Network). In connection with his plea agreement, Loewenstern admitted causing the submission of over $424 million in fraudulent claims that resulted from the solicitation of illegal kickbacks and bribes in exchange for the referral of brace orders to brace providers. In connection with his guilty plea, Loewenstern admitted that he and others agreed to solicit and receive illegal kickbacks and bribes from patient recruiters, brace suppliers and others in exchange for the arranging for doctors to order medically unnecessary orthotic braces for beneficiaries of Medicare and other insurance carriers. The beneficiaries were contacted through an international telemarketing network that lured hundreds of thousands of elderly and/or disabled patients into a criminal scheme that crossed borders, involving call centers in the Philippines and throughout Latin America, Loewenstern stated. Loewenstern admitted that many of these orders were written after only a short telephone call between the health care provider and the beneficiary, with whom the health care provider had no prior doctor-patient relationship. In addition, Loewenstern admitted that he was aware that the owners and other executives of the Video Doctor Network schemed to defraud investors and others by making false and fraudulent representations that the Video Doctor Network was a legitimate telemedicine enterprise that made revenue of “$10 million per year” and “20 percent profit” from payments by beneficiaries who enrolled in a membership program and paid for the telemedicine consultations. These statements were false because revenue was obtained by the Video Doctor Network through the receipt of illegal kickbacks and bribes, Loewenstern admitted. In connection with his plea agreement, Loewenstern agreed to pay $200 million in restitution to the United States, as well as forfeit assets and property traceable to proceeds of the conspiracy to defraud the United States. Loewenstern’s sentencing is set for Jan. 9, 2020, before U.S. District Judge Madeline Cox Arleo of the District of New Jersey, who accepted his plea. Loewenstern was charged along with Creaghan Harry, 51, of Highland Beach, Florida, and Lester Stockett, 52, of Medellin, Colombia, in an indictment charging one count of conspiracy to defraud the United States and pay and receive health care kickbacks and four counts of health care kickbacks. Stockett and Harry were separately charged with one count of conspiracy to commit money laundering. Stockett, the Chief Executive Officer, previously entered a plea of guilty to one count of conspiracy to defraud the United States and one count of money laundering. The case against Harry is pending. Trial has not been set. The case was investigated by FBI, HHS-OIG, and IRS-CI. The case is being prosecuted by Acting Assistant Chief Jacob Foster and Trial Attorney Darren Halverson of the Criminal Division’s Fraud Section.
Joseph DeCoroso, M.D., 62, of Toms River, New Jersey, pleaded guilty for his role in a $13 million conspiracy to commit health care fraud and separate charges of health care fraud for writing medically unnecessary orders for durable medical equipment (DME), in many instances without ever speaking to the patients, while working for two telemedicine companies. Sentencing is set for Jan. 8, 2020. The case was investigated by FBI Newark and HHS-OIG. The case is being prosecuted by Acting Assistant Chief Jacob Foster and Trial Attorney Darren Halverson.
Nelly Petrosyan, 56, of New York, New York, the owner and operator of orthotic brace suppliers in New York, New York, was indicted on one count of conspiracy to defraud the United States and to pay and receive health care kickbacks and three counts of payment of health care kickbacks. The charges result from a $5.6 million conspiracy in which Petrosyan offered and paid kickbacks and bribes to several purported telemedicine companies in exchange for completed doctors’ orders of medically unnecessary orthotic braces for Medicare beneficiaries. Petrosyan and her coconspirators concealed the fraud by entering into sham contracts and producing false invoices characterizing the kickbacks and bribes as payments for “marketing.” The investigation was conducted by FBI Newark and HHS-OIG. The case is being prosecuted by Trial Attorney Darren Halverson.
Alice Chu, M.D., 62, of Fort Lee, New Jersey, was indicted on one count of conspiracy to commit health care fraud and four counts of health care fraud. The charges stem from Chu’s alleged submission of false and fraudulent claims to Medicare and private insurance companies for services that were medically unnecessary, never provided, not provided as represented or not eligible for reimbursement. Chu was allegedly induced by a financial incentive to order expensive and medically unnecessary lab tests that were paid for by Medicare. The investigation was conducted by FBI Newark, HHS-OIG, DOD-DCIS and FDA-OIC. The case is being prosecuted by Trial Attorney Rebecca Yuan of the Fraud Section.
Aaron Williamsky 59, of Marlboro, New Jersey, and Nadia Levit, 40, of Englishtown, New Jersey, owners of approximately 25 durable medical equipment companies, pleaded guilty on Sept. 18 and Sept. 25, respectively, for their participation in a health care fraud scheme related to their payment of kickbacks in exchange for doctors’ orders for medically unnecessary orthotic braces. Levit’s conduct admittedly caused losses in excess of $120 million and Williamsky’s conduct admittedly caused losses in excess of $170 million. Williamsky also pleaded guilty to a money laundering conspiracy related to his attempt to conceal at least $1.65 million of the proceeds of the fraud. The case was investigated by FBI, HHS-OIG, and IRS-CI. The case is being prosecuted by Assistant U.S. Attorneys Sean Sherman and Stephen Ferketic of the District of New Jersey.
Bernard Ogon, M.D., 46, of Burlington, New Jersey, pleaded guilty on Sept. 25 to one count of health care fraud conspiracy for his participation in a vast compounded medication telemedicine conspiracy. As part of the conspiracy, Ogon admittedly signed prescriptions for compounded medications (that is, medications with ingredients of a drug tailored to the needs of a particular patient) without having established a doctor-patient relationship, spoken to the patient or conducting any medical evaluation. Ogon often signed preprinted prescription forms—with patient information and medication already filled out—where all that was required was his signature. Then, instead of providing the prescription to the patient, Ogon would return the prescriptions to specific compounding pharmacies involved in the conspiracy. Ogon was paid $20 to $30 for each prescription he signed, and his participation in the conspiracy caused losses to health care benefit programs of over $24 million, including losses to government health care programs of over $7 million. The case was investigated by FBI Newark and HHS-OIG. The case is being prosecuted by Assistant U.S. Attorney Jason Gould of the District of New Jersey.
Joseph Santiamo, 64, of Staten Island, New York, a physician specializing in internal medicine and geriatrics was charged for allegedly conspiring to distribute and dispense controlled substances, including oxycodone, in exchange for sexual favors, and outside the usual course of professional practice and not for a legitimate medical purpose. The case is being prosecuted by Assistant U.S. Attorney Brian Urbano of the District of New Jersey.
Yana Shtindler, 44, of Glen Head, New York; Samuel “Sam” Khaimov, 47, of Glen Head, New York; Alex Fleyshmakher, 33, of Morganville, New Jersey; and Ruben Sevumyants 36, of Marlboro, New Jersey were indicted in connection with a scheme at Prime Aid Pharmacies (located in Union City, New Jersey and Bronx, New York) that included: (a) paying illegal bribes and kickbacks to doctors and doctors’ employees in exchange for prescription referrals to Prime Aid; (b) billing health insurance providers for medications that were never actually provided to patients; and (c) opening new pharmacies and concealing the true ownership of those pharmacies to obtain lucrative contracts they otherwise would not have obtained. The scheme of billing for medications that were never dispensed to patients was so egregious that Prime Aid received reimbursement payments of over $65 million for prescription medications that it never even ordered from distributors or had in stock. In total, Prime Aid’s multiple schemes defrauded Medicare, Medicaid, and private insurers out of at least $99 million. The case is being prosecuted by Assistant U.S. Attorney Joshua Haber of the District of New Jersey.
Eduard “Eddy” Shtindler, 36, the owner and operator of Empire Pharmacy in West New York, New Jersey, was charged by criminal complaint for paying bribes to a psychiatrist in Hudson County, New Jersey, to induce the doctor to send prescriptions to Empire. On occasion, Shtindler secreted cash bribes in pill bottles that were delivered to the doctor. In exchange for these bribes, the doctor steered patients to Empire pharmacy. In addition, starting in 2015, Empire – at Shtindler’s direction – perpetrated a fraudulent scheme to induce doctors to send expensive specialty medication prescriptions to Empire. Specialty medications often required “prior authorization” before being approved for reimbursement by Medicare, Medicaid, and some private insurance providers. To receive prior authorization approval more quickly and successfully than any other pharmacies, Empire employees, including two pharmacists, repeatedly falsified prior authorization forms for medications for various conditions, including psoriasis and Hepatitis C. In total, Empire defrauded Medicare and Medicaid out of at least $2 million. The case is being prosecuted by Assistant U.S. Attorney Joshua Haber of the District of New Jersey.
Matthew S. Ellis, 53, of Gainesville, Florida; Edward B. Kostishion, 59, Lakeland, Florida; Kyle D. Mclean, 36, of Arlington Heights, Illinois; Kacey C. Plaisance, 38, of Altamonte Springs, Florida; Jeremy Richey, 39, of Mars, Pennsylvania, and Jeffrey Tamulski, 46, of Tampa, Florida were indicted in connection with a genetic testing health care fraud scheme. Kostishion, Plaisance, and Richey operated Ark Laboratory Network LLC (Ark), a company that purported to operate a network of laboratories that facilitated genetic testing. Ark partnered with Privy Health Inc., a company that McLean operated, and another company to acquire DNA samples and Medicare information from hundreds of patients through various methods, including offering $75 gift cards to patients, all without the involvement of a treating health care professional. Ellis, a physician based in Gainesville, served as the ordering physician who authorized genetic testing for hundreds of patients across the country that he never saw, examined, or treated. These included patients from New Jersey and various other states where Ellis was not licensed to practice medicine. Through this process, Ellis, Kostishion, Plaisance, and McLean submitted and caused to be submitted fraudulent orders for genetic tests to numerous clinical laboratories. These orders falsely certified that Ellis was the patients’ treating physician and, in many cases, contained false information indicating that a patient had a personal or family history of cancer, when, in fact, the patient had no cancer history whatsoever. In 2018 alone, Medicare paid clinical laboratories at least approximately $4.6 million for genetic tests that Ellis ordered in this manner. In addition, Kostishion, Plaisance, Richey and Tamulski entered into kickback agreements with certain clinical laboratories under which the laboratories would pay Ark a bribe in exchange for delivering DNA samples and orders for genetic tests. The bribe payments were based on the percentage of Medicare revenue that the laboratories received in connection with the tests. Among other things, Kostishion, Plaisance, Richey, and Tamulski concealed these kickback arrangements through issuing sham invoices to laboratories that purportedly reflected services provided at an hourly rate even though the parties had already agreed upon the bribe amount, which was based on the revenue the laboratories received. In 2018, the clinical laboratories paid Ark at least approximately $1.8 in bribes. The case is being prosecuted by Assistant U.S. Attorney Bernard Cooney of the District of New Jersey.
Among those charged in the Eastern District of Pennsylvania are the following:
Timothy F. Shawl, 60, of Garnet Valley, Pennsylvania, a medical doctor, was charged with five counts of unlawful distribution of controlled substances. He allegedly wrote prescriptions for controlled substances that were outside the usual course of professional practice and not for a legitimate medical purpose. Shawl allegedly wrote prescriptions for controlled substances for patients without seeing, treating or examining them. Shawl allegedly prescribed hundreds of prescriptions for oxycodone to approximately 16 patients amounting to over 29,000 oxycodone tablets. The FBI conducted the investigation. The case is being prosecuted by Trial Attorney Debra Jaroslawicz of the Fraud Section.
Neil K. Anand, M.D., 42, of Bensalem, Pennsylvania, and Asif Kundi, 31, Atif Mahmood Malik, 34, and Viktoriya Makarova, 33, all of Philadelphia, Pennsylvania, Anand, a medical doctor, Kundi and Malik, unlicensed foreign medical school graduates, and Makarova, a nurse practitioner, were indicted on one count of health care fraud and one count of conspiracy to distribute controlled substances. The charges stem from the defendants’ alleged submission of false and fraudulent claims to Medicare, health plans provided by the U.S. Office of Personnel Management (OPM) and Independence Blue Cross (IBC). The claims allegedly were for “Goody Bags,” bags of medically unnecessary prescription medications that were dispensed by non-pharmacy dispensing sites owned by Anand. In total, Medicare, OPM and IBC allegedly paid over $4 million for the Goody Bags. Patients were allegedly required to take the Goody Bags in order to receive prescriptions for controlled substances. Malik and Kundi allegedly wrote prescriptions for controlled substances using blank prescriptions that were pre-signed by Anand or Makarova. Anand and Makarova allegedly prescribed over 10,000 prescriptions for Schedule II controlled substances, of which over 7,000 were for oxycodone totaling over 634,000 oxycodone tablets. The investigation was conducted by the FBI, HHS-OIG, USPS-OIG and OPM. The case is being prosecuted by Trial Attorney Debra Jaroslawicz.
Twelve indictments were unsealed involving charges against 12 people for allegedly possessing oxycodone with intent to distribute. The indictments charge that, from September 2016 through June 2019, the 12 defendants all presented forged prescriptions for oxycodone to various pharmacies outside of Philadelphia, in order to obtain oxycodone to distribute to others. The defendants, all from Philadelphia, drove many miles to pharmacies in Mt. Laurel, New Jersey, Marcus Hook, Pennsylvania, Drexel Hill, Pennsylvania, and Kennett Square, Pennsylvania. The defendants are charged with at least two, and up to 32, counts of possession with intent to distribute oxycodone. The defendants are charged with having received anywhere from 6,300 milligrams to 135,000 milligrams of oxycodone. According to the indictments, the defendants would often travel together to the pharmacies to fill their forged prescriptions. Charged were: Lamar Dillard, 37; Jermaine Grant, 29; Katrina Tucker, 32; Maurice Bertrand, 31; Courtney Brockenborough, 34; Alan Alexander Harrison, 29; Abdullah Howard, 23; Jonathan Metellus, 32; Clinton Monte Bullock; Crystal Coleman, 31; Marques Russell, 35, and Joseph Michael Simmons, 31. One defendant, Metellus, is also charged with one count of health care fraud, for allegedly using his Medicaid card to purchase prescription drugs with a forged prescription. The case was jointly investigated by the DEA’s Tactical Diversion Squad, HHS-OIG, the Pennsylvania Department of State’s Bureau of Enforcement and Investigations, the Chester County District Attorney’s Office and the Easttown Township Police Department. The cases are being prosecuted by Assistant U.S. Attorneys David E. Troyer, Elizabeth Abrams, Joan Burnes and Mary Kay Costello of the Eastern District of Pennsylvania.
Search and seizure warrants are being executed today at approximately six different locations. The search and seizures are being executed by law-enforcement officers from six federal agencies, including HHS-OIG, the FBI, USPS-OIG, DOL-OIG, DOD and OPM.
Among those charged in the Eastern District of New York are the following:
Anna Steiner, M.D., also known as “Hanna Wasielewska,” 63, of Valatie, New York, a licensed anesthesiologist, was charged in a superseding indictment for an alleged $17.4 million health care fraud scheme related to the payment of kickbacks in return for the ordering of DME, prescription drugs and diagnostic tests that were not medically necessary and not the result of an actual doctor-patient relationship. Steiner was originally indicted on July 9, 2019. The case was investigated by FBI and HHS-OIG. The case is being prosecuted by Fraud Section Trial Attorney Andrew Estes.
Dr. Denny Martin, 46, of New York, New York, a licensed Neurologist, was charged in a complaint for an alleged healthcare fraud scheme related to the billing of doctor home visits where none actually occurred. The case is being prosecuted by Assistant U. S. Attorney William P. Campos.
Andrew Barrett, 60, of New City, New York, and his former wife, pharmacy owner Phyllis Pincus, 58, of New City, New York, were charged by indictment with healthcare fraud and false claims in a scheme where they billed insurers for medications not actually dispensed to patients. In 2016, Barrett was sentenced to 43 months’ incarceration upon his guilty plea to tax fraud and healthcare fraud in which he billed insurers for medications not actually dispensed to patients. He was excluded from participation in the Medicare and Medicaid programs for over 20 years. The case is being prosecuted by Assistant U.S. Attorney William P. Campos.Kevin McMahon, 31, of Seaford, New York, a registered professional nurse, was charged in a misdemeanor information with possession of fentanyl, which he obtained through the course of his employment at Nassau University Medical Center. McMahon will plead guilty to the information pursuant to a plea agreement and has agreed to surrender his nursing license at the time of his plea. The case is being prosecuted by Assistant U.S. Attorney Erin E. Argo.
Among those charged in the Western District of New York are the following:Jillian Marks, 37, of Orchard Park, New York, a licensed nurse practitioner, was charged with obtaining controlled substances through fraud, wrongful use of government seal, and identity theft. With access to the Neighborhood Health Center in the City of Buffalo’s internal computer databases, the defendant allegedly abused her position and illegally accessed the Allscripts prescription prescribing portal. Marks allegedly prescribed approximately 2,000 dosage units of controlled substances such as Adderall and Oxycodone, in the names of health center patients, which she then had filled and picked up at local pharmacies. At one point, Marks allegedly forged a letter from the DEA in order to appear “good” to her employer and allegedly used the DEA seal illegally. The DEA conducted the investigation. The case is being prosecuted by Assistant U.S. Attorneys Michael J. Adler and Misha A. Coulson of the Western District of New York.
Karen Melton, 45, of Cuba, New York, was charged with obtaining controlled substances through fraud. Melton, a medical secretary working for a physician in Olean, New York, was not licensed to prescribe controlled substances. However, Melton allegedly used her access within the office to issue fraudulent prescriptions in her own name in both paper and electronic form. The prescriptions were allegedly issued without a legitimate medical purpose. Between September 2016 and May 2019, Melton allegedly issued 59 fraudulent prescriptions for controlled substances, including hydrocodone. The DEA conducted the investigation. The case is being prosecuted by Assistant U.S. Attorneys Michael J. Adler and Misha A. Coulson.
Among those charged in the District of Connecticut are the following:
Philippe R. Chain, M.D., has entered into a civil settlement agreement with the U.S. Attorney’s Office for the District of Connecticut, in which he will pay $300,000 to resolve allegations that he violated the False Claims Acts. Chain, who currently practices medicine in Florida, previously practiced medicine in Connecticut and performed telehealth services from Connecticut for a telemedicine company located in Las Vegas, Nevada. The telehealth services Chain provided involved prescribing compounded medications to TRICARE beneficiaries. TRICARE is the federal health care program for active duty military personnel, retirees, and their families. The government alleges that Chain caused pharmacies to submit false claims for compounded medications to TRICARE by issuing or approving prescriptions which were invalid, because Chain did not speak with or examine the patients in question and did not have an established physician-patient relationship with them, in exchange for compensation paid to Chain. This matter was investigated by the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot of the District of Connecticut.
Among those charged in the Western District of Pennsylvania are the following:
Emilio Ramon Navarro, M.D., 58, of Coal Center, Pennsylvania, was charged with unlawfully dispensing controlled substances and health care fraud. Counts 1 – 28 of the Indictment allege that from April 2018 until April 2019, Navarro unlawfully distributed Oxymorphone and Oxycodone, Schedule II substances, to a person in return for sexual favors, either physically or by electronic communications, outside the usual course of professional practice and not for a legitimate medical purpose. Navarro is also charged in Count 29 with health care fraud for causing fraudulent claims to be submitted to Medicaid for payments to cover the costs of the unlawfully prescribed controlled substances. This case was investigated by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit which includes: FBI, HHS-OIG, DEA, IRS-CI, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, USPS, Veterans Affairs-OIG, FDA-CI, OPM-OIG, and the Pennsylvania Bureau of Licensing. Assistant U.S. Attorneys Robert S. Cessar and Mark V. Gurzo are prosecuting the case.
Among those charged in the District of Columbia are the following:
Hope Falowo, a personal care aide, was charged by information with one count of healthcare fraud for her role in a $400,000 fraud scheme where she would bill Medicaid in the District of Columbia for services she never provided. The case is being prosecuted by Counsel to the Chief of the Health Care Fruad Unit Amy Markopoulos.
Nkiru Uduji, a personal care aide, pleaded guilty to one count of health care fraud conspiracy charged in an August 2019 Information. The charges stem from Uduji’s role in a $600,000 fraud scheme in which she billed for more than 24 hours in a day, for services that were not rendered, and for services that were procured by kickbacks. The case is being prosecuted by Counsel to the Chief of the Health Care Fruad Unit Amy Markopoulos.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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Federal Jury Convicts Sex Trafficker of Using Crack Cocaine and Heroin to Coerce Victims into ProstitutionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Valentino Shine, Sr., 51, of Buffalo, NY, of five counts of sex trafficking, and one count each of sex trafficking conspiracy, narcotics conspiracy, using and maintaining a drug-involved premises, and possession with intent to distribute crack cocaine. The charges carry a mandatory minimum penalty of 20 years in prison, a maximum penalty of life, and a $20,000,000 fine.
Assistant U.S. Attorneys Elizabeth R. Moellering and Meghan A. Tokash, who prosecuted the case, with support from the Department of Justice’s Civil Rights Division’s Human Trafficking Prosecution Unit, stated that the defendant ran a sex trafficking operation out of his Humboldt Parkway residence in Buffalo. Shine preyed upon and exploited women who were vulnerable and addicted to drugs, coercing them to engage in commercial sex acts. The defendant provided or withheld drugs to coerce the victims to engage in commercial sex acts.
According to evidence presented by the government at trial, Shine was recovering from a cocaine addiction and knew the power that drug addiction could have over someone. The defendant used this as a weapon to target vulnerable women. Shine’s motto was “BABI PAE” – Break a (expletive) Incorporated; Pimping Ain’t Easy.
At the urging of the defendant, victims advertised on backpage.com. After performing sex acts for money, they would give that money to Shine. Money was important to Shine. When signing his name, the defendant wrote CREAM: “Cash Rules Everything Around Me.”
In addition to using drugs to control his victims, Shine also used physical beatings, manipulation, and brainwashing.
Three women who worked for the defendant died of drug overdoses as a result of their addictions.
“Let this verdict serve as a warning to predators like Valentino Shine who think that they can exploit women and girls for profit and sexual servitude,” stated U.S. Attorney Kennedy. “My Office simply will not permit human traffickers—the modern day equivalent of slave owners—to exist in our community. I find it particularly fitting that defendant’s reign of terror, which involved at least nine female victims, was officially ended by two outstanding AUSAs in our Office—both of whom happen to be female—Meghan Tokash and Elizabeth Moellering. Sometimes the results achieved at trial seem particularly just—this was one of those trials.”
“The guilty verdict in this case makes it clear that Mr. Shine preyed on the vulnerable as do most traffickers,” said Kevin Kelly, HSI Buffalo, Special Agent-in-Charge. “So many of our investigations begin with identifying victims, which is why a key component of our work involves HSI's victim-centered approach to these cases. It’s critical that we work closely with survivors, helping them obtain necessary support services so they are able to move on with their lives and potentially participate in the prosecution of their trafficker, which was key in the case against Mr. Shine.”
The verdict is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Human Trafficking Task Force of the Western District of New York.
Sentencing is scheduled for December 12, 2019, at 3:30 p.m. before Chief U.S. District Judge Frank P. Geraci, Jr., who presided over the trial of the case.
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Two Men Arrested on Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jeffrey Wehs and Jordan Dunn, both 25, and both of Rochester, NY, were arrested and charged by criminal complaint with the receipt and possession of child pornography. The charges carry a minimum penalty of five years in prison, a maximum penalty of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that the FBI’s Child Exploitation Task Force received a cyber tip from an online social media company indicating that an account holder had uploaded an image of child pornography using the company’s messaging application. Investigators traced the child pornography to an apartment Wehs and Dunn share in Rochester. On September 18, 2019, investigators executed a search warrant at the residence. Computers belonging to the defendants were seized. A review of the computers revealed multiple images and videos of child pornography.
Subsequent investigation determined that both Wehs and Dunn worked with children, including disabled children, at various organizations in the Rochester area.
Members of the public who have information related to this case are asked to call the FBI’s Rochester Office at 585-546-2220.
The defendants made an initial appearance today before U.S. Magistrate Judge Jonathan W. Feldman and were released under supervision.
The criminal complaint is the result of an investigation by the FBI's Child Exploitation Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Rochester Police Department, under the direction of Chief La’Ron Singletary; the Monroe County Sheriff's Office, under the direction of Sheriff Todd Baxter; the Greece Police Department, under the direction of Chief Patrick Phelan; the Livingston County Sheriff's Office, under the direction of Sheriff Thomas J. Dougherty; and the Ontario County Sheriff's Office, under the direction of Sheriff Kevin M. Henderson.
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.
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Rochester Man Charged with Sex Trafficking of A Minor and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. — U.S. Attorney James P. Kennedy, Jr. announced today that Peter R. Kiwitt, 61, of Rochester, NY, was arrested and charged by criminal complaint with sex trafficking of a minor, sex trafficking of a minor using force, fraud, and coercion, and possession of child pornography. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, in June 2017, the defendant was convicted in Monroe County, NY, of Possession of a Sexual Performance by a Child, and sentenced to serve 10 years’ probation, and designated as a Level 1 Sex Offender.
As alleged in the criminal complaint, on December 10, 2018, a vehicle the defendant was driving was pulled over by the Monroe County Sheriff’s Office. Also in the vehicle were two females, Adult Victim 1 (AV1) and Minor Victim 1 (MV1). The three individuals were questioned about drug related activity but released and later followed to a room at a motel in Penfield, NY. Officers went to the room and knocked on the door. Kiwitt indicated that he was dating AV1 but knew her to be a prostitute who belonged to another pimp known to law enforcement. He denied any involvement in prostitution at that time. Officers did not make any arrests at the time.
On January 23, 2019, Rochester Police Department officers responded to a residence in the City of Rochester for the report of a fatal overdose involving MV1. The owner of the apartment found MV1 deceased on his living room floor and called 911. He told officers he met MV1 through AV1, and that the night before, he brought MV1 back to his residence to engage in commercial sex acts with her.
Subsequent cell phone and Facebook searches uncovered conversations between the defendant, AV1, and MV1 regarding prostitution activities. Investigators also uncovered naked photos, some of which depicted child pornography.
The defendant made an initial appearance before U.S. Magistrate Judge Jonathan W. Feldman and was detained. Kiwitt is due back in court on September 25, 2019, at 9:30 a.m.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter.
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.
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Convicted Felon Arrested on Methamphetamine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jason Yelder, 37, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute five grams or more of methamphetamine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40, and $5,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated in May 2017, Yelder pleaded guilty to a federal charge of possession with intent to distribute, and distribution of, five grams or more of methamphetamine and was sentenced to serve 20 months in prison and five years post-release supervision. The defendant was released from custody and supervision began on May 25, 2018.
On February 12, February 21, and April 23, 2019, Yelder was tested by U.S. Probation for drug screening. On each date, he tested positive for amphetamine. The defendant was instructed to report for further testing on April 29 and May 2, 2019. Yelder failed to report as directed and further broke off all contact with probation personnel. On April 26, 2019, a probation officer contacted the defendant’s mother who advised she did not know the whereabouts of her son. On May 3, 2019, an arrest warrant was issued for Yelder for a violation of supervised release.
On July 15, 2019, the defendant was taken into custody by the U.S. Marshals Serve and Buffalo Police at a hotel in downtown Buffalo. Yelder was found with 21 bags of suspected crystal methamphetamine, as well as numerous additional suspected controlled substances.
The complaint is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the U.S. Marshals Service, under the direction of Marshal Charles Salina.
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.
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Buffalo Man Sentenced for Narcotics ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Rogelio Mueses, 26, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute heroin, butyryl fentanyl, 4-fluoroisobutyryl fentanyl, and fentanyl, was sentenced to serve 60 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Brendan T. Cullinane, who handled the case, stated that between January and May of 2018, the defendant conspired with another individual to distribute controlled substances. In particular, on six different dates, they sold controlled substances to an individual working with the Drug Enforcement Administration. Subsequent testing confirmed the presence of heroin, butyryl fentanyl, and 4-fluoroisobutyryl fentanyl, all of which are Schedule I controlled substances, and fentanyl, a Schedule II controlled substance.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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Buffalo Man Pleads Guilty to Being A Felon in Possession of A GunRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Willie C. Graham 38, of Jamestown, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to being a felon in possession of firearms and ammunition. The charge carries a maximum penalty of 10 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Emmanuel Ulubiyo, who is handling the case, stated that on October 8, 2018, during the execution of a state search warrant at the defendant’s residence on Foote Avenue in Jamestown, law enforcement officers recovered two firearms, ammunition, two magazines, a scope, a Kevlar vest, and a quantity of methamphetamine.
At the time of the search warrant, Graham was a two-time convicted felon, and as a result, he was legally prohibited from possessing firearms and ammunition.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
Sentencing is scheduled for January 29, 2020, at 9:30 a.m. before Judge Arcara.
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Rochester Man Who Led Police on A Chase Pleads Guilty to Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Chucky Ellis, 22, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to possession with intent to distribute cocaine, and possession of a firearm with an altered or obliterated serial number. The charges carry a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that at approximately 9:40 p.m. on February 1, 2019, Rochester Police officers initiated a traffic stop of a vehicle the defendant was driving in the area of Clifford Avenue and Goodman Street in Rochester. During the traffic stop, Ellis drove away from the scene. He and an unidentified front passenger then fled the vehicle on foot in the area of Bay and Iroquois Streets. The defendant was apprehended in the area of 124 Parkside Drive in Rochester.
Officers searched Ellis and recovered a loaded .38 caliber revolver with an obliterated serial number in his front right pocket. Officers also located a fanny pack that the defendant had discarded during the chase, which contained 19 vials of cocaine, 19 vials of marijuana, and $70 in cash.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sentencing is scheduled for December 17, 2019, at 9:15 a.m. before Judge Siragusa.
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Batavia Man Caught with Child Pornography at A Halfway House Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Daryl Sumeriski, 51, of Batavia, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession of child pornography. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that Sumeriski was residing in a halfway house in Bath, NY, when fellow residents expressed concern about certain images they observed on the defendant’s cell phone and alerted authorities. As a result, a search warrant was executed and investigators found more than 3,000 images of child pornography on Sumeriski’s phone. Some of the images depicted violent abuse of infants and toddlers.
The plea is the result of an investigation by the Department of Homeland Security, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for January 10, 2020, before Judge Wolford.
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Rochester Man Sentenced for Heroin Possession and Being A Felon in Possession of A GunRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joseph Delisio, 47, of Rochester, NY, who was convicted of possession of heroin with intent to distribute and possession of a firearm and ammunition by a convicted felon, was sentenced to serve 100 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Cassie Kocher, handled the case, stated that the defendant sold heroin between September 29, 2017, and April 11, 2018 to individuals working with the Drug Enforcement Administration. Delisio was arrested on April 11, 2018, following a vehicle stop. The defendant had approximately $34,650 in cash in his possession and officers found a bottle in the vehicle containing residue of suspected heroin, scales which are commonly used to process narcotics for distribution, and a .22 caliber Ruger handgun.
During a subsequent search of Delisio’s residence, officers recovered three more firearms and ammunition. The defendant was previously convicted in Wayne County Court in 2013 of Criminal Possession of a Controlled Substance in the Fourth Degree; in 2009 of Criminal Sale of a Controlled Substance in the Fifth Degree; and in 2002 of Burglary in the Third Degree. As a result, Delisio is legally prohibited from possessing firearms and ammunition.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the Wayne County Sheriff’s Office, under the direction of Sheriff Barry Virts.# # # #
Citizen of Mexico Sentenced to 10 Years in Prison on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that David Flores-Torres, 26, a citizen of Mexico living in Dunkirk, NY, who was convicted of possession of child pornography involving a prepubescent minor, was sentenced to serve 120 months in prison and 30 years supervised release by U.S. District Judge Lawrence J. Vilardo.
Special Assistant U.S. Attorney Jeremy V. Murray, who handled the case, stated that on June 5, 2018, a search warrant was executed at the defendant’s residence in Dunkirk, NY. Law enforcement officers seized the defendant’s Samsung Galaxy S3 cellular telephone which contained 79 images and 14 videos of child pornography. Some of the images depicted prepubescent minors or minors less than 12 years-old, as well as depictions of violence. Torres also received and distributed images constituting child pornography from and to others with whom he communicated using a cellular telephone and the internet.
The defendant disclosed that, on three occasions during 2017 and 2018, he engaged sexual contact with two minor victims under the age of 18. The government advocated for a sentence of between 14 and 17.5 years in prison, which was the sentencing range recommended under the United States Sentencing Guidelines.
Today’s sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Irondequoit Man Arrested, Charged with Cyberstalking; Investigators Asking for Assistance from the PublicRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Theodore Loria, 53, of Irondequoit, NY, was arrested and charged by criminal complaint with cyberstalking. The charge carries a maximum penalty of five years in prison and $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, the Buffalo FBI Cyber Task Force was notified in June 2018 of a possible cyber stalking campaign being executed by the defendant.
Subsequent investigation determined that the Victim in the case met Loria in May 2015 at her place of employment. Shortly after that meeting, the defendant expressed an interest in dating, which was not reciprocated by the Victim. In September 2015, Loria contacted the Victim and told her that her life was in danger and they needed to talk. During a conversation, the defendant told the Victim that he had overheard her ex-boyfriend in a restaurant say that the Victim was better off dead and that the ex-boyfriend was going to kill her. Loria then offered to keep an eye on the ex-boyfriend and the Victim to ensure her safety.
On October 31, 2015, the defendant told the Victim that he had seen a mysterious car circling her property and that he chased it away. Loria also said that Halloween is an easy night to commit murder because it was the one night when wearing a mask was not questioned. The defendant told the Victim he would stay on her driveway through the night to ensure her safety.
Loria and the Victim became romantically involved for approximately three months from late spring to early summer of 2016. During that time, the defendant became protective of the Victim, jealous of any male clients or employees, and routinely monitored her Facebook page, commenting to her about online conversations she had with males on the Facebook page.
In the summer of 2016, the Victim began to distance herself from Loria. In June 2016, the defendant asked to meet the Victim at a local coffee shop, during which he gave her a diamond ring so that people would know the Victim was spoken for. The Victim refused to take the ring. Loria stated “take the (expletive) ring” and “put the (expletive) ring on your (expletive) finger.” The Victim kept the ring and left the coffee shop. The defendant followed the Victim to another location where he apologized. The two did not speak for several months after. Months later the Victim saw Loria in her driveway. He told her, “give me my (expletive) ring back,” which the Victim did.
In the months to follow, the Victim received threatening phone calls and text messages from the defendant. One text read, “Your DEAD cop calling (expletive) [address of Victim].” And during one phone call, Loria stated he would burn down her place of business. The defendant also told the Victim that he had connections to the mafia and to cold-blooded killers who owed him favors, and who would take care of people who crossed him.
In February 2017, Loria confronted the Victim and her ex-boyfriend at a restaurant. The defendant approached the ex-boyfriend and told him that he would beat him every day for the rest of his life and that if he went to jail that he would beat him again after he got out. Following this incident, the Victim began receiving escalating threats via phone call, text message, or in person at her place of business. Loria stated that the Victim had crossed him and he had no choice but to teach her a lesson.
In a series of text messages, emails, and phone calls, the defendant also accused the Victim of plotting with Charlie Tan to murder him. In 2015, Charlie Tan was accused of murdering his father, but a state court jury failed to reach a verdict. However, in November 2018, Tan was sentenced to serve 20 years in prison on federal gun charges. The Victim confirmed to investigators that she allowed Tan to volunteer at her place of business during his legal proceedings.
The defendant made an initial appearance today before U.S. Magistrate Judge Jonathan W. Feldman and was detained. Loria is schedule to be back in court on September 18, 2019, at 11:00 a.m.
Members of the public who have information related to this case are asked to call the Federal Bureau of Investigation at 585-546-2220.The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Rochester Police Department, under the direction of Chief La’Ron Singletary.
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.
# # # #Puerto Rican Man Going to Prison for Selling FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Xavier Hernandez-Gerena, 29, of Puerto Rico, who was convicted of possession with intent to distribute fentanyl, was sentenced to serve 46 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Katelyn Hartford, who handled the case, stated that on October 16, 2018, law enforcement officers recovered quantities of fentanyl and heroin from the defendant. In addition, on May 23 and June 6, 2018, Hernandez-Gerena sold fentanyl to another individual in exchange for cash.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, and the New York State Police, under the direction of Major Eric Laughton.
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Niagara Falls Woman Pleads Guilty to Selling Crack Cocaine with Her Incarcerated HusbandRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Tasheka Stalling, 30, of Niagara Falls, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiring to possess with the intent to distribute and distributing 28 grams or more of crack cocaine. The charge carries a maximum penalty of 40 years in prison.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that between November 2015 and January 26, 2017, the defendant conspired with her husband, Jermaine Ellison to sell crack cocaine.
Between November 12, 2015, and June 20, 2016, investigators conducted six controlled purchases of crack cocaine from Ellison. On August 30, 2016, Ellison was ordered into state custody by a Niagara County Court Judge to begin serving a state sentence. While Ellison was being held in the Green Correctional Facility, Stalling conspired with him to continue selling crack cocaine to his customers in Niagara County. Stalling utilized Ellison’s cellphone contacts in order to communicate with buyers to distribute the crack cocaine. During their conspiracy, Stalling and Ellison discussed details related to the ongoing sales over recorded telephone calls from the correctional facility. Investigators made a total of 16 controlled purchases of crack cocaine from the defendant.
Jermaine Ellison was previously convicted and is awaiting sentencing.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Niagara County Drug Task Force, under the direction of Sheriff James R. Voutour; the New York State Police, under the direction of Major Edward Kennedy; and the Niagara Frontier Transportation Authority, under the direction of Chief George Gast.
Sentencing is scheduled for December 20, 2019, before Judge Arcara.
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Native of Mexico Pleads Guilty to Re-Entering the United States Illegally and Possessing Counterfeit DocumentsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Everardo Donoteo-Reyes, 27, of Mexico, pleaded guilty before U.S. District Judge Charles J. Siragusa to possession of a counterfeit social security card and alien registration card, and illegal re-entry after deportation. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that in September 2016, Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO), administratively arrested the defendant in Gretna, Louisiana, and in October 2016, he was ordered removed from the United States. Upon his departure, Donoteo-Reyes was advised that he could not re-enter the United States without the permission of the United States Attorney General, or his Successor, the Secretary of Homeland Security.
On March 1, 2017, United States Border Patrol encountered the defendant in the United States and administratively arrested him in Laredo, Texas. Two days later, on March 3, 2017, Donoteo-Reyes pleaded guilty to entering the United States unlawfully and was sentenced to 15 days confinement. On March 15, 2017, the defendant was physically removed from the United States to Mexico. Donoteo-Reyes was once again advised that he could not re-enter the United States without permission.
On May 24, 2018, the defendant was arrested by the Wayne County Sheriff’s Office on New York State criminal charges. The sheriff’s office sent Donoteo-Reyes’s fingerprints to Immigration and Customs Enforcement (ICE). An immigration records check determined that the defendant had no valid immigration status and was again illegally present in the United States. During the course of an investigation into the defendant’s missing girlfriend and her son, the Wayne County Sheriff's Office located fraudulent documents belonging Donoteo-Reyes, including a counterfeit alien registration card bearing defendant’s photograph, as well as a fraudulent social security card.
Donoteo-Reyes was subsequently indicted for the murder of his girlfriend and her toddler son. He pleaded guilty to 1st Degree Manslaughter on September 11, 2019, and he is scheduled to be sentenced on November 7, 2019.
“Although a violent crime, such as that to which this defendant pled guilty in New York State Court, may not be more egregious simply because it was committed by an illegal alien as opposed to a United States citizen or anyone else,” stated U.S. Attorney Kennedy, “what is particularly frustrating is that the defendant should never have had the opportunity to commit such a heinous crime in the first place. Simply put, the defendant should not have been in the United States, and the public needs to recognize that our immigration laws exist not only to punish those, like this defendant, who violate them but to protect those, like his girlfriend and her son, who do not. This Office will work tirelessly to continue to protect our community by faithfully discharging our duty to uphold all of the laws of our great Nation.”
The plea is the result of an investigation by agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Donoteo-Reyes is scheduled to be sentenced on the federal charges on December 16, 2019, before Judge Siragusa.
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Federal Jury Convicts Rochester Man of Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Sofonzia Mack, 37, of Rochester, NY, of possession with intent to distribute marijuana, and being a felon in possession of a handgun and ammunition. The charges carry a maximum penalty of 10 years in prison and a $500,000 fine.
Assistant U.S. Attorneys Matthew T. McGrath and Charles E. Moynihan, who handled the trial of the case, stated that on March 28, 2017, Rochester Police officers stopped a blue Kia Sedona in the 800 block of Exchange Street in Rochester after seeing the driver commit multiple violations of the New York State Vehicle and Traffic Law. As officers approached the vehicle, they smelled what they believed to be marijuana coming from inside. The driver and the defendant, who was in the front passenger seat, were directed to get out of the vehicle so officers could further investigate the smell.
While searching the defendant, officers found a .25 caliber, semiautomatic pistol in Mack’s jacket pocket. Officers could see the serial number on the firearm had been defaced and that it was loaded with four rounds of ammunition. Officers also seized 21 plastic vials containing marijuana in a draw-string bag, which the defendant had secured over his shoulder at the time of the stop, and over $900 in United States currency located in the center console.
On July 30, 2007, in Albany County Court, the defendant was convicted of Attempted Criminal Sale of a Controlled Substance in the Third Degree and sentenced to serve three years in prison. As a result, Mack was legally prohibited from possessing a gun.
The jury found the defendant not guilty of possessing a firearm in furtherance of a drug trafficking crime and knowingly possessing a defaced handgun.
The matter was brought by the United States Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The verdict is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division.
Sentencing is scheduled for December 5, 2019, at 10:00 a.m. before Judge David G. Larimer, who presided over the trial of the case.
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Rochester Man Pleads Guilty in Series of Six Armed RobberiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Lavon Wims, 27, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to six counts of Hobbs Act robbery. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Sean C. Eldridge, who is handling the case, stated that Wims admitted his role in a series of armed robberies at Rochester stores in December 2018 and January 2019, including:
• On December 28, 2018, at McDonalds on East Avenue in Rochester, Wims held a knife to the throat of a McDonald’s employee while co-conspirator Malik Lott displayed what appeared to be a handgun. Wims dragged the employee to a cash register and a safe, and removed approximately $2,534 from McDonald’s;
• On December 31, 2018, at the 24-7 Store on West Henrietta Road in Brighton, Wims jumped over the counter and held what appeared to be a handgun to the side of a store employee while demanding cash. Wims left with approximately $100 from the store;
• On January 19, 2019, at the Express Mart on Chestnut Ridge Road in Chili, Wims displayed what appeared to be a handgun to a store employee and walked the employee over to the register, where Wims removed approximately $600;
• On January 23, 2019 at Jordy’s Spirits on Dewey Avenue in Rochester, Wims pointed what appeared to be a handgun at a store employee and demanded money. Lott assisted Wims in removing cash from the register, and they left with approximately $350 from the store;
• On January 27, 2019, at the Speedway Gas Station on Elmwood Avenue in Brighton, Wims pointed what appeared to be a handgun at an employee and told the employee to open the registers. Wims then removed approximately $220 from the store, and left to commit another robbery; and
• About 8 minutes after the Speedway robbery, on January 27, 2019, at the Valero Gas Station on East Henrietta Road in Rochester, Wims pointed what appeared to be a handgun at an employee and told the employee to given him money. The employee opened the register, and Wims took approximately $60 and fled the store.Co-conspirator Malik Lott previously pleaded guilty to his role in robberies at McDonalds and Jordy’s Spirits. Lott is scheduled to be sentenced on October 28, 2019, at 10:30 am before Judge Wolford.
The plea is the result of an investigation by the Federal Bureau of Investigation’s Rochester Area Major Crimes Task Force, under the direction of Special Agent-in-Charge Gary Loeffert.
Wims is scheduled to be sentenced on November 25, 2019, at 2:00 p.m. before Judge Wolford.
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Former Medical Practice Employee Pleads Guilty to Obtaining Controlled Substances by FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Shannon Lambert, 33, of Canandaigua, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to obtaining controlled substances by fraud and identify theft. The charges carry a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Sean C. Eldridge, who is handling the case, stated that between 2011 and February 2019, the defendant was employed at Cornerstone Eye Associates in Rochester. Through her position, Lambert had access to Cornerstone’s internal computer databases, including an electronic prescription program which doctors at Cornerstone used to write and submit prescriptions to pharmacies on behalf of their patients.
Between approximately January 2018 and February 2019, the defendant accessed Cornerstone’s electronic prescription program and issued 73 fraudulent prescriptions in her name or the names of her family members. Lambert then had those prescriptions filled, and she picked them up from local pharmacies. The defendant used the name and an authentication device of an ophthalmologist who worked at Cornerstone, without their authorization, to issue the prescriptions. The 73 prescriptions totaled approximately 5,048 dosage units of Schedule II controlled substances, including hydrocodone and oxycodone.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for December 16, 2019, at 2:30 p.m. before Judge Wolford.
City Honors Teacher Arrested on Sexual Exploitation and Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney James P. Kennedy, Jr. announced today that Peter Hingston, 59, of Amherst, NY, was arrested and charged by criminal complaint with attempted sexual exploitation of a child, sexual exploitation of a child, and possession of material that contained an image of child pornography. The charges carry a maximum penalty of 40 years in prison.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that in June 2019, the Federal Bureau of Investigation learned the Buffalo Police Department was investigating an incident related to the possible production of child pornography involving Peter Hingston, a City Honors school teacher. The report alleged that Hingston, a middle school technology teacher was observed using a GoPro camera to photograph or record female students in a sexually inappropriate way.
Multiple students came forward regarding Hingston’s use of the GoPro during class. An examination of the defendant’s GoPro camera revealed numerous videos of Hingston exposing himself and using the minor victims in a sexually explicit manner.
“For the second time in two weeks, we are charging a Buffalo school teacher with a very disturbing crime,” stated U.S. Attorney Kennedy. “As parents, we trust that teachers will help to educate and shape our children. Where teachers violate that trust and seek to exploit our children to satisfy their own twisted desires, this Office, together with our partners in law enforcement, will do everything that we can to remove such predators. I want to commend the students at City Honors who had the courage and maturity to say something when they saw something.”
“The Hingston investigation reminds us to continue empowering our children to speak up and share what they see,” said Gary Loeffert, Special Agent-in-Charge of the FBI's Buffalo office. “The criminal complaint describes student witnesses expressing valid concerns about Hingston's unusual behaviors in the classroom. The school in turn reported his actions to the Buffalo Police Department, and Buffalo Police reached out to the FBI Child Exploitation Task Force. The students' voices are the reason Hingston is not teaching middle school students right now in a Buffalo public school classroom.”
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Michael A. Roemer and was detained.
Members of the public who have information related to this case or feel they may have been victimized by Hingston are asked to call the Federal Bureau of Investigation at 716-843-1616 and leave a message and telephone number. A member of the FBI Child Exploitation Task Force will contact them during normal business hours.
The complaint is the result of an investigation by the Federal Bureau of Investigation, Buffalo Office, under the direction of Special Agent-in-Charge Gary Loeffert, the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Town of Tonawanda Police Department, under the direction of Acting Chief James P. Stauffiger.
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.
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Queens Man Pleads Guilty to Assaulting A Border Officer After Being Caught with Marijuana at the Peace BridgeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Adriano Roberto Nunez, 27, of Queens, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to forcibly assaulting, resisting, opposing, impeding, intimidating or interfering with a federal officer and causing bodily injury. The charge carries a maximum penalty of 20 years in prison, and a fine of $250,000.
Assistant U.S. Attorney John D. Fabian, who is handling the case, stated that on June 3, 2019, the defendant was a passenger on a bus traveling from Canada into the United States at the Peace Bridge Pot of Entry. Nunez and other passengers exited the bus at a Customs and Border Patrol checkpoint in the United States for re-entry into the United States.
During a search of the defendant’s belongings, a CBP officer found gummy candies in a bag consistent with drug packaging. While a CBP officer performed a field test on the gummies, another CBP officer asked Nunez to place his phone and passport on the table. The defendant retrieved his passport and placed it on the table. Nunez also retrieved his phone but did not place it on the table, instead manipulated the phone with his hands. The CBP officer attempted to retrieve the phone from the defendant, and Nunez resisted. After the officer successfully gained possession of the phone, the defendant fled into another area of the building, with officers chasing after him. Nunez fled to an area with no exit, and officers caught up with him. The defendant resisted the officers by pushing and kicking at least one officer. The officer sustained bodily injury in the form of scratches and abrasions on his knee and elbow, as well as pain from being kicked.
The plea is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
Sentencing is scheduled for January 31, 2020, at 10:30 a.m. before Judge Vilardo.
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Niagara Falls Man Sentenced for His Role in Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joseph Jones, a/k/a Tio, 56, of Niagara Falls, NY, who was convicted of conspiring to possess with intent to distribute, and to distribute, 500 grams or more of cocaine, was sentenced to serve 90 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that between October 2016 and September 29, 2017, the defendant distributed cocaine with various co-conspirators in the Buffalo/Niagara Falls area. On three occasions in August of 2017, defendant received a combined total of two and one-half kilograms of cocaine from his co-conspirators for the purpose of distributing it. During the course of the conspiracy, Jones regularly distributed at least one kilogram of cocaine per month on behalf of the organization for which he distributed. To date, two of Jones’ co-conspirators have been convicted, while charges remain pending against four others. 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.
The sentencing is the result of an investigation by the Federal Bureau of Investigations, under the direction of Special Agent-in-Charge Gary Loeffert.
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Buffalo Man Pleads Guilty to Ramming FBI Property with His Car Causing Tens of Thousands of Dollars in DamageRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney James P. Kennedy, Jr. announced today that Robert Lowe, 37, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to depredation of government property. The charge carries a maximum of one year in prison and a $100,000 fine.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that on March 30, 2017, at approximately 10:45 p.m., the defendant willfully crashed his motor vehicle into two exterior gates at the Federal Bureau of Investigation office located at One FBI Plaza in Buffalo.
As a result of the crash, $889.50 had to be spent on emergency gate repairs and emergency temporary barriers. Subsequently, an additional $88,040.58 had to be spent to purchase new gates, new gate controllers, and a new guard booth. An additional $20,866.72 was spent on overtime for guards necessitated by the repair work. The total amount spent because of the crash was $109,796.80.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for December 19, 2019, before Judge Arcara.
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Final Three Defendants Plead Guilty for Their Role in Drug Trafficking OrganizationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Devincio K.D. James, 30, of Niagara Falls, NY, Luis Andino, 33, and Jenhsen Rodriguez, 33, both of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo for their roles in a drug trafficking organization that distributed drugs in the Niagara Falls and Buffalo areas.
• Defendants James and Rodriguez pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine, and face a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000;
• Defendant Andino pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 5 kilograms or more of cocaine, and faces a mandatory minimum penalty of 10 years in prison, a maximum of life in prison and a fine of $10,000,000.Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that between July 2017 and September 29, 2017, the defendants conspired with others to distribute cocaine in the Niagara Falls area for a drug trafficking organization led by co-defendant Cesar Rivera-Figueroa.
Defendant James was a mid-level distributor of cocaine for Rivera-Figueroa. James picked up the cocaine from either Rivera-Figueroa or another co-defendant, then sold it in Niagara Falls. On September 29, 2017, James was arrested inside his residence at 1080 99th Street in Niagara Falls. Investigators searched the residence and recovered approximately $29,260 in U.S. currency; a loaded 20 gauge shotgun; 23 live 20 gauge shotgun shells; and five digital scales.
One of defendant Andino’s roles was to assist Rivera-Figueroa by recruiting individuals to provide addresses where packages containing cocaine could be shipped, picking up packages containing cocaine shipped from Puerto Rico, making deliveries of cocaine to customers, and making trips to New York City to transport money and cocaine for the organization. Between June 15 and July 13, 2017, Andino recruited individuals in the Buffalo area to supply at least nine addresses for use by the organization to ship packages of cocaine from Puerto Rico to Buffalo. Andino was paid $100 per address by the Rivera-Figueroa organization. The addressee was then paid $500 per package received by the Rivera-Figueroa organization. When packages were delivered to the recruited recipients, Andino would retrieve the cocaine from the recipient address and transport it back to a stash house where it would then be distributed. During the course of the conspiracy, several packages containing cocaine were intercepted by the United States Postal Inspection Service.
Defendant Rodriguez was also a mid-level distributor of cocaine for Rivera-Figueroa. On September 13, 2017, Rodriguez traveled with a co-defendant to New York City to deliver proceeds of drug trafficking as payment for a quantity of controlled substances. On September 21, 2017, intercepted communications revealed that the Rivera-Figueroa organization expected to receive three postal parcels containing bulk quantities of cocaine that day. Rodriguez agreed to keep watch and take delivery of one of those three parcels destined for a residence on Tonawanda Street in Buffalo. The United States Postal Service intercepted two of the three parcels, including the parcel destined for Tonawanda Street.
On September 29, 2017, investigators executed a federal search warrant at Rodriguez’s residence at 42 Wiley Place. Multiple items were seized including a loaded .22 caliber rifle; approximately 100 rounds of .22 caliber ammunition; $10,115.00 in U.S. currency; a quantity of heroin and cocaine; two 2 scales; and drug packaging materials.
Rodriguez admits that he possessed the firearm in furtherance of his drug trafficking activities.
Following his arrest, defendant Rodriguez was released from custody on October 4, 2017. On December 29, 2018, the defendant was stopped in a vehicle traveling westbound on State Route 17 in Middletown, NY by New York State Police troopers for committing Vehicle and Traffic infractions. When questioned by the trooper, Rodriguez was traveling to New York City to pick up heroin to bring back to Buffalo for distribution.
A total of 12 defendants were charged and convicted in this case.
The pleas are the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the New York State Police, under the direction of Major Edward Kennedy.
Devincio K.D. James is scheduled to be sentenced on January 31, 2020; Luis Andino is scheduled to be sentenced on January 24, 2020; and Jenhsen Rodriguez is scheduled to be sentenced on January 17, 2020, all before Judge Vilardo.
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CBL/BFL Member Pleads Guilty for His Role in Racketeering ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dajon Nettles, a/k/a Gucc, 25, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to racketeering conspiracy. The charge carries a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that between 2010 and August 28, 2018, the defendant was an associate with the CBL/BFL Gang, which stands for, among other things, “Cash Been Long” and “Brothers for Life.” He conspired with several other associates to sell drugs, commit robbery, retaliate against witnesses, and commit assault. CBL/BFL operated within a specifically defined geographic area on the East side of Buffalo. Gang members and associates engaged in drug trafficking to generate income and violent crimes to maintain control over their territory. As part of his plea, defendant Nettles admitted to participating in the following acts:
• On June 4, 2013, in the Towne Gardens neighborhood, the defendant shot approximately three times at a vehicle containing members of a suspected rival gang causing damage to the vehicle;
• On June 8, 2013, Nettles provided a revolver to a co-conspirator and member of the CBL/BFL enterprise. On that date, the co-conspirator was engaged in a dispute with another individual at 418 South Park Avenue in Buffalo, and during the dispute, the co-conspirator pointed the revolver at an individual’s head and pulled the trigger. The firearm did not discharge. The co-conspirator was stopped by Buffalo Police later that day, and the police recovered a .32 caliber revolver loaded with five rounds of ammunition;
• On September 21, 2015, the defendant appeared in a video on social media holding a rifle while a co-defendant held ammunition. Nettles’ possession of firearms as depicted on video, and other firearms he maintained access to as a member of the enterprise, occurred during times when the defendant and others were involved selling crack cocaine and other drugs as members of the enterprise;
• On August 7, 2017, Nettles sold crack cocaine to an individual working with investigators;
• On August 29, 2018, the defendant was on Spring Street and Mary B. Talbert Boulevard when he was stopped by members of the FBI and the Buffalo Police Department who had a federal warrant for his arrest. Nettles had one bag of crack cocaine in his underwear and a scale with cocaine residue in his pants pocket; and
• On two occasions between 2014 and 2017, defendant sold crack cocaine to an individual working with investigators.A total of 13 CBL/BFL members and associates have been charged in this case. Nettles is the fourth to be convicted. The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major Edward Kennedy; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; the Cheektowaga Police Department, under the direction of Chief David Zack; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Lackawanna Police Department, under the direction of Chief James Michel; the U.S. Marshals Service, under the direction of Marshal Charles Salina; and the Erie Crime Analysis Center. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
Sentencing is scheduled for January 24, 2020, before Judge Vilardo.
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Two Rochester Men Plead Guilty for Their Roles in Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Pablo Rentas-Torres, 35, and Jesus Fernandez, 25, both of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to possess with intent to distribute, and to distribute, quantities of fentanyl, cocaine and crack cocaine. The charge carries a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Matthew T. McGrath, who is handling the case, stated that the defendants were members of a drug trafficking organization led by co-defendant Jose Casado. The organization distributed large quantities of fentanyl, cocaine and crack cocaine out of drug houses located on Clifford Avenue and Treyer Street in Rochester between December 2017 and May 15, 2019.
Jose Casado would obtain bulk quantities of fentanyl, heroin and crack cocaine, then he and other members of the conspiracy would “bag-up” or package the various substances to be sold to individual drug users. Drug users would contact Casado directly via cellular phone to order quantities of drugs and Casado would then routinely direct other members of the conspiracy, including the defendants, to obtain a particular quantity of drugs from the Casado organization’s drug stash, and deliver it to the customer at a pre-arranged location. The drug runners then met with the customer and provided the drugs in exchange for cash. Casado or another member of the organization would collect the proceeds of the drugs sales from the drug runners periodically throughout the day. Between December 2017 and April of 2019, investigators conducted 13 undercover purchases from the organization.
On March 14, 2019, a search warrant was executed at the Clifford Avenue drug house. Members of the Drug Enforcement Administration and Rochester Police Department recovered 18 baggies of fentanyl, nine baggies of powder cocaine, nine baggies of crack cocaine, numerous materials used to package controlled substances, 1,800 rounds of .22 caliber ammunition, and 50 shotgun shells. On May 15, 2019, a second search warrant was executed at the Clifford Avenue residence where investigators recovered a .22 caliber pistol.
Rentas-Torres and Fernandez were arrested along with five other defendants, including Jose Casado. A total of three have been convicted. Charges remain pending against Jose Casado, Whitney Casado, Ricardo Casado and Gamalliett Rosario-Martinez. 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.
The pleas are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division and the Rochester Police Department, under the direction of Chief La’Ron Singletary.
Rentas-Torres and Fernandez are scheduled to be sentenced on December 13, 2019, at 11:00 a.m. and 11:30 a.m. respectively, both before Judge Geraci.
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Seventh and Final Defendant Sentenced in Cross Country Methamphetamine RingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Julie Cota, 52, of California, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 50 grams or more of actual methamphetamine, was sentenced to serve 120 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Katelyn M. Hartford, who handled the case, stated that between January 2017 and June 27, 2017, the defendant conspired with others to sell methamphetamine.
In furtherance of the conspiracy, Cota worked together with co-defendant Thomas Williams to ship crystal methamphetamine from California to co-defendant Donald McKinney in Dansville, NY. The defendant, along with Williams, sent approximately four to six pounds of crystal methamphetamine to McKinney in Dansville via Federal Express parcel service, in exchange for money. Cota and Williams sold the crystal methamphetamine for $1,000 an ounce to McKinney, who then distributed the crystal methamphetamine to his own customers in the Dansville area.
Many of the methamphetamine sales took place at The Boneyard, an auto salvage business located in Dansville. Owner Kenneth Hoag was also convicted and forfeited the business as a result of his conviction.
Cota was one of seven defendants convicted and sentenced in this case. Also convicted and sentenced:
• Thomas Williams - sentenced to serve 144 months in prison;
• Donald McKinney - sentenced to serve 120 months in prison;
• Kenneth Hoag - sentenced to serve 12 months and 1 day in prison and forfeiture of The Boneyard;
• Kurt Redance - sentenced to serve 48 months in prison;
• Andrew Culliton - sentenced to serve 36 months in prison; and
• Brandie Schumacher - sentenced to four years probation to include three months home detention.“Like illicit opioids, methamphetamine destroys lives,” stated U.S. Attorney Kennedy. “Whether these drugs are on the streets of a large urban city, or in a small rural area, our Office is committed to working with our law enforcement partners to bring an end to the scourge and hold accountable those who seek to fill our communities with these dangerous and potentially deadly substances.”
“Illegal drug sales have no borders and through our local, state and federal partners, we too are breaking down our jurisdictional borders to follow those distributing these deadly drugs,” stated Sheriff Thomas J. Dougherty. “We will continue to aggressively investigate drug crimes in Livingston County and do our very best to hold drug dealers accountable.”
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Livingston County Sheriff’s Office, under the direction of Sheriff Thomas Dougherty; and the New York State Police, under the direction of Major Eric Laughton.
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Rochester Nail Salon Owner Pleads Guilty to Defrauding the SNAP ProgramRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Hang T. Lam, 46, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to the unauthorized use, transfer, acquisition, and possession of USDA food stamp benefits. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that in April 2018, the Monroe County Department of Social Services (DSS) developed information that Young’s Nails, which is owned and operated by the defendant, was trafficking in Supplemental Nutrition Assistance Program (SNAP)/food stamp benefits for cash, nail services, and other non-food items. Young’s Nails does not sell food and is not authorized to accept SNAP benefits.
Between April 19, 2018, and October 1, 2018, the U.S. Department of Agriculture, Office of Inspector General conducted five undercover transactions at Young’s Nails using a SNAP Electronic Benefits (SNAP EBT) card. Purchases included nail services such as manicures and pedicures, cigarettes, jewelry, and cash. Lam charged double the cost when a SNAP EBT card was used.
When the undercover purchases were made, the defendant used the Tanhong Du Supermarket on N. Clinton Avenue in Rochester, Ocean Garden Oriental Foods Inc. on S. Clinton Avenue in Rochester, and the Asia Food Market on Brighton-Henrietta Town Line Road to process the undercover transactions. All three stores are approved to participate in the SNAP program.
On November 7, 2018, a search warrant was executed at Young’s Nails. Law enforcement officers seized SNAP EBT cards, dozens of handwritten notes containing four digit PIN numbers and various cash amounts, and SNAP EBT receipts from the Asia Food Market and other SNAP authorized stores. As a result, officers identified and interviewed SNAP clients involved in SNAP fraud with Lam at Young’s Nails. Eight of these individuals reported that they exchanged SNAP benefits for cash and nail services.
To date, approximately $26,000 dollars in fraudulent SNAP transactions executed by Lam have been identified.
The plea is the result of an investigation by the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent-in Charge Bethanne M. Dinkins; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Monroe County Department of Social Services, under the direction of Commissioner Corinda Crossdale; and the New York State Office of Inspector General, under the direction of Inspector General Letizia Tagliafierro.
Sentencing is scheduled for December 16, 2019, before Judge Wolford.
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Rochester Man Sentenced for Heroin ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Daiquan Hill, 25, of Rochester, NY, who was convicted of conspiracy to distribute heroin, was sentenced to serve 57 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Cassie Kocher, who handled the case, stated that between January 2018 and June 14, 2018, the defendant conspired with others to distribute heroin. In furtherance of the conspiracy, Hill distributed quantities of heroin to customers and also directed others as to when, where, and how much narcotics to deliver to customers.
On June 14, 2018, law enforcement officers executed a search warrant at the defendant’s residence on Grafton Street in Rochester. They recovered approximately 38 grams of heroin and items used for the packaging and distribution of illegal narcotics for street-level distribution, including scales and baggies.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito; the Rochester Police Department, under the direction of Chief La’Ron Singletary; U.S. Border Patrol, under the direction of Patrol Agent in Charge Jeffrey Wilson; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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Rochester Man Sentenced for Fentanyl ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jonathan Velasquez, 26, of Rochester, NY, who was convicted of conspiracy to distribute over 40 grams of fentanyl, was sentenced to serve 37 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Cassie Kocher, who handled the case, stated that between March and August 2018, the defendant conspired with sell fentanyl. On March 21, 2018, Velasquez distributed fentanyl to an undercover police officer. On June 23, 2018, the defendant was operating a vehicle in the area of 169 Joseph Avenue in Rochester when he was stopped by police. At the time, Velasquez was in possession of approximately 303 bags of fentanyl and approximately $6,820.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito; the New York State Police, under the direction of Major Eric Laughton; United States Border Patrol, under the direction of Patrol Agent-in-Charge Jeffrey Wilson; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Orleans County Sheriff’s Department, under the direction of Sheriff Randy Bower; and the Orleans County District Attorney’s Office, under the direction of District Attorney Joseph V. Cardone.
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Former Rochester Bakery Owner Sentenced on Tax ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that William Cruz, 54, of Rochester, NY, who was convicted of subscribing false tax returns, was sentenced to serve two years of probation and perform 100 hours of community service by Chief U.S. District Judge Frank P. Geraci, Jr. The defendant was also ordered to pay $365,840 in restitution to the Internal Revenue Service, as well as penalties and interest.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that Cruz operated the Borinquen Bakery in Rochester from approximately 2005 through 2018. From at least 2012 through 2017, the defendant hid more than $1,000,000 in income from the IRS by underreporting the bakery’s revenues. This resulted in an aggregate tax loss to the IRS of at least $365,840.00.
The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan Larsen, Special Agent-in-Charge, New York Field Office.
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Cheektowaga Surgeon Pleads Guilty to Drug Charge and Lying to the DEARead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dr. Anthony Leone, 55, of Clarence, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to unlawful possession of a controlled substance and making material false statements. The charges carry a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on September 8, 2016, the defendant, who was a licensed spine and general orthopedic surgeon and Drug Enforcement Administration registrant, completed a controlled substance form for Henry Schein, a commercial distributor of controlled substances. One of the questions on the form asked Leone if he uses “any controlled substances ordered to treat family members,” to which he responded “no.” That statement was false. Leone in fact ordered zolpidem for treatment of an identified family member.
Further, the form asked the defendant whether he uses any of the controlled drug items he orders for his own personal use, to which he responded “no.” That statement was also false. Leone ordered Adderall XR, tramadol, and clonazepam to use himself.
Finally, the form asked the defendant whether his office performs surgery or any other in office procedures that require the use of controlled substances, to which he responded with the following: “Procedures performed on an outpatient basis: Epidural steroid injections and facet injections, outpatient procedure: lumbar and [illegible word] spine reconstructive surgery.” That statement was also false in that Leone did not administer or dispense controlled substances in his office, but instead, wrote patients prescriptions for fulfillment at a pharmacy.
Thereafter, the defendant ordered and received bulk quantities of Adderall XR, hydrocodone, both Schedule II controlled substances, and clonazepam, tramadol, and zolpidem, all Schedule IV controlled substances from Henry Schein.
On April 24, 2018, the Drug Enforcement Administration conducted an administrative search at Leone’s offices located at 934 Cleveland Drive in Cheektowaga, NY. During that search, the defendant told DEA agents that he ordered quantities of hydrocodone, which he dispensed to patients. In truth and fact, Leone was transporting the hydrocodone from his medical office to his residence on Cobblestone Drive in Clarence, where he stored them for his own personal use.
“As with many of those whose judgment is impaired as a result of their need to feed their addiction, the defendant lied to get what he wanted,” stated U.S. Attorney Kennedy. “Sadly, this case serves as another example of the debilitating and destructive power of addiction, whether its prescription pills or other dangerous, illegal opiates. Simply put – addiction knows no boundaries. That is why it is imperative that we in law enforcement continue vigorously to enforce the law while also continuing to work with our partners in treatment and prevention to battle this epidemic.”
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Ray Donovan, Special Agent-in-Charge, New York Field Office.
Sentencing is scheduled for December 16, 2019, before Judge Wolford.
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Buffalo Woman Pleads Guilty to Narcotics ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Nina Rosario, 21, of Buffalo, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to possess with intent to distribute, and to distribute, heroin. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that beginning in April of 2018 and continuing until April 28, 2018, Rosario conspired with others to sell heroin, a Schedule I controlled substance. On April 28, 2018, the defendant spoke with her co-conspirator via telephone regarding their drug distribution conspiracy. In particular, Rosario confirmed that she met with a source of supply and received approximately 20 grams of heroin, all of which the defendant and her co-conspirator intended to distribute in Western New York.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled before Judge Geraci for December 12, 2019, at 11:30 a.m.
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California Man Sentenced for Narcotics and Money Laundering ConspiraciesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that Juan Alfaro, 52, of Hacienda, California, who was convicted of narcotics conspiracy and money laundering conspiracy, was sentenced to serve 120 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Wei Xiang, who handled the trial, stated that the defendant was a member of a transnational drug trafficking organization that utilized contacts and a source of supply whose territory included Mexico, Arizona, California, and elsewhere. The source of supply was the Sinaloa Cartel, led by Joaquín “El Chapo” Guzmán and Ismael “El Mayo” Zambada.
Alfaro was convicted, along with co-defendant Martha Aguirre, following a jury trial in March 2019. Martha Aguirre’s brother Herman E. Aguirre was the leader of the organization.
Alfaro and Martha Aguirre used “front” companies to launder over $12,000,000 in drug proceeds from Buffalo to Los Angeles, including Triton Foods, Inc. and Kamora Investment Enterprises, Inc., which were located in the State of California. Another fictitious company, Corral Seafoods, LLC, registered in the State of New York, was allegedly located in Cheektowaga, NY, but proved to be completely fake.
Using these companies, Alfaro and Martha Aguirre disguised kilogram quantities of heroin, fentanyl, and cocaine on invoices and other documents as “Sea Cucumbers.” The local organization trafficked thousands of kilograms of illegal narcotics throughout the United States, including Lockport, Niagara Falls, and Buffalo.
During the course of the investigation, law enforcement officers seized over $5,000,000 worth of illegal narcotics, including:
• 52.5 kilograms of cocaine;
• 17.5 kilograms of heroin; and
• 8.5 kilograms of fentanylAlfaro is one of 17 defendants convicted in this case. Martha Aguirre is scheduled to be sentenced on September 30, 2019.
The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge, New York Field Office; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; Homeland Security Investigations, under the direction of Special-Agent-in Charge Kevin Kelly; the Niagara County Drug Task Force, under the direction of Sheriff James Voutour; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Lockport Police Department, under the direction of Acting Chief Steven Preisch; the Montebello, California Police Department, the Nebraska State Patrol, and the DEA, Los Angeles.
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Three Men Arrested on Drug and Firearm ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Reno Sayles, Jr., 29, of Cheektowaga, NY, as well as Kevin Brown, 27, and Marlon Worthy, 32, both of Buffalo, NY, were arrested and charged by criminal complaint with possession with intent to distribute and distribution of cocaine and heroin and possession of a firearm in furtherance of a drug trafficking crime. The charges carry a maximum sentence of up to life imprisonment and a $1,000,000 fine.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that on or about August 22, 2019, Sayles, Brown and Worthy were observed leaving a residence on Wanda Avenue in Cheektowaga, NY. Upon leaving that residence, Brown and Worthy walked towards a vehicle. Brown retrieved a backpack from inside the vehicle. Law enforcement seized the backpack and upon searching it, discovered that it contained 2 loaded handguns, approximately 1 ounce of heroin, ammunition, magazines, scales, and a bulletproof vest. Officers recovered over 50 grams of cocaine from inside Worthy’s vehicle and another 10 grams inside his pocket. Pursuant to a search warrant of Sayles’s residence, officers recovered narcotics paraphernalia.
The defendants were arraigned before United States Magistrate Judge Michael J. Roemer, and are being held pending their detention hearings.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Cheektowaga Police Department, under the direction of Chief David J. Zack; and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy B. Howard with the assistance of their narcotics K-9.
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.
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Gates Man Arrested on Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Gary Zeitvogel, 45, of Gates, NY, was arrested and charged by criminal complaint with receipt and possession of child pornography. The charges carry a minimum term of 5 years imprisonment, a maximum term of 20 years imprisonment, a period of supervised release of at least 5 years and up to life, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that the National Center for Missing and Exploited Children (NCMEC) received a cybertip from Facebook.com in June 2019, in which Facebook reported that Zeitvogel appeared to be engaged in sexually explicit conversations with a 15 year-old female. Utilizing information provided by Facebook, NCMEC was able to determine that Zeitvogel and the minor victim were both located in Rochester, NY. NCMEC forwarded the tip to the New York State Police (NYSP), who located the victim and determined that Zeitvogel was already serving a term of probation with the Monroe County Probation Department. Zeitvogel’s probation followed his conviction for Endangering the Welfare of a Child, in which it was alleged that Zeitvogel had allegedly masturbated in front of a child that he was babysitting.
On July 1, 2019, Monroe County Probation Officers, accompanied by Investigators from the NYSP, searched Zeitvogel’s home in Gates. Zeitvogel was found to be in possession of a cell phone, which, in violation of his probation conditions, contained the Facebook application. Zeitvogel was taken into custody at that time. The NYSP later took custody of the phone and executed a search warrant for both the phone and Zeitvogel’s Facebook account. On the phone, the NYSP observed over 1,500 images of child pornography, some of which depicted prepubescent minors, as well as child pornography depicting the minor victim. Zeitvogel’s Facebook account also revealed that he had engaged in sexually explicit conversations with the minor from at least March 2019 through June 2019, and that the two had been in contact at Zeitvogel’s home. The investigation is ongoing and additional charges may be forthcoming.
The defendant made an initial appearance today before United States Magistrate Judge Marian W. Payson, and is being held without bail.The criminal complaint is the result of an investigation by the National Center for Missing and Exploited Children; the New York State Police, under the direction of Major Edward Kennedy; Monroe County Child Protective Services; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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.
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Buffalo Man Arrested on Cocaine and Butyryl Fentanyl ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced that Sterling McMillan, 48, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute and distribution of cocaine and butyryl fentanyl. The charges carry a maximum term of 20 years imprisonment and a $1,000,000 fine.
Assistant U.S. Attorney Misha Coulson, who is handling the case, stated that on August 8, 2019, a search warrant was executed at McMillan’s residence on Erb Street. During the execution of that warrant, cocaine and butyryl fentanyl as well as various narcotics packaging materials were located.
The defendant made an initial appearance before United States Magistrate Judge Michael J. Roemer, and was released on conditions.
The criminal complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, 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 and unless proven guilty.
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Williamsville Man Who Teaches at Buffalo High School Arrested with Drugs, Guns and ExplosivesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael Masecchia, 53, of Williamsville, NY, was arrested and charged by criminal complaint with possession with intent to distribute, and distribution of, marijuana, maintaining a drug-involved premises, and possession of firearms in furtherance of drug trafficking crimes. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that according to the complaint, on August 23, 2019, investigators from Homeland Security Investigations, the Federal Bureau of Investigation, the Erie County Sheriff's Office, and the Niagara County Sheriff's Office, executed a search warrant at the defendant’s residence on Main Street in Williamsville.
During the search of the residence, investigators seized:
• Two rifles, five shotguns, and a pistol;
• Various ammunition for the firearms;
• Seven homemade explosives;
• Three Mason jars containing marijuana;
• Various steroids in liquid and tablet form;
• Hypodermic needles;
• THC edibles;
• Cannabis syrup;
• Two grams of a white powder suspected to be cocaine;
• Tylenol with Codeine tablets;
• Suspected hashish;
• A digital scale;
• A suspected marijuana cigarette;
• Numerous plastic bags and small bottles containing marijuana; and
• Four cell phones.Investigators also recovered $27,950.00 in U.S. currency, which was discovered hidden in clothing and rubber banded in two bundles. A narcotics detection canine later alerted for the odor of a controlled substance on the currency.
According to Erie County Sheriff's records, one of the shotguns was reported stolen on September 23, 2015.
Investigators also discovered marijuana and a marijuana smoking pipe inside a vehicle registered to the defendant.
The complaint further states that, based on information developed during this investigation, Masecchia has been involved in the growing and distribution of significant quantities of marijuana for at least the past 20 years.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Michael J. Roemer and was released on conditions.
The complaint is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Erie County Sheriff's Office, under the direction of Sheriff Timothy Howard; the Niagara County Sheriff's Office, under the direction of Sheriff James Voutour; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of John B. Devito.
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.
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Tonawanda Man Sentenced for Drug Possession Near A High SchoolRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that James Nelson, 63, of Tonawanda, NY, who was convicted of possession with intent to distribute crack cocaine, oxycodone, and hydrocodone within 1,000 feet of a private school, was sentenced to serve 24 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that on December 11, 2017, investigators with the Drug Enforcement Administration and the Town of Tonawanda Police Department executed a state search warrant at the defendant’s residence at 11 Fayette Avenue in Tonawanda. Nelson was found in the living room area of the residence. Investigators recovered suspected crack cocaine, numerous pills containing suspected controlled substances, two compact digital scales, and approximately $1,442 in U.S. currency.
Subsequent testing determined that the substances recovered included crack cocaine, diazepam, oxycodone, butalbital, hydrocodone, and alprazolam.
The defendant’s residence is located within 1,000 feet of St. Joseph’s Collegiate Institute, a private secondary school, located at 845 Kenmore Avenue in Buffalo.
The sentencing is the result of an investigation by the Tonawanda Police Department, under the direction of Acting Chief James P. Stauffiger and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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Buffalo Man Pleads Guilty to Selling Butyryl FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Angel Vazquez, 33, of Buffalo, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to distribution of butyryl fentanyl. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that in July 2017, an individual working with the Drug Enforcement Administration made arrangements with co-defendant Luis Matias to purchase heroin from Matias. On July 26, 2017, Matias agreed to sell heroin to the individual. Matias sent the defendant to deliver the drugs. Angel Vazquez sold five grams of suspected heroin to the individual in exchange for $500.00.
Charges remain pending against Luis Matias. 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.
The plea is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the New York State Police, under the direction of Major Edward Kennedy; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for December 11, 2019, before Judge Wolford.
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Buffalo Man Pleads Guilty for His Role in Drug Trafficking OrganizationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Omar Vazquez-Baez, a/k/a Tutu, 26, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to possess with intent to distribute, and distribution of, five kilograms or more of cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that between July 2017 and September 29, 2017, the defendant conspired with others to distribute cocaine in the Niagara Falls area for a drug trafficking organization led by co-defendant Cesar Rivera-Figueroa. Vazquez-Baez regularly distributed quantities of cocaine to customers on behalf of the Rivera-Figueroa organization.
On September 13, 2017, investigators intercepted a phone call between Rivera-Figueroa and the defendant. After contacting some of his co-defendants, Rivera-Figueroa told Vazquez-Baez, “I have some lockers for you to take a look at. I already gave six, but for you to see them and offer them around. . . .I’m like a display cabinet right now.” The defendant then met with Rivera-Figueroa and collected several packaged quantities of cocaine. Later that day, Vazquez-Baez called Rivera-Figueroa to ask for more cocaine. During the conversation, the defendant asked Rivera-Figueroa for more cocaine, but Rivera-Figueroa indicated he was out of supply. In response, Vazquez-Baez stated “damn, I had half for today and it was already gone over night, bastard!” explaining that he had a half-kilogram of cocaine and sold it quickly. Vazquez-Baez then stated “I have 3 chickens for sure,” indicating that he had customers prepared to purchase 375 grams of cocaine.
The defendant was arrested on September 29, 2017, inside his residence on 7th Street in Buffalo. During the execution of a search warrant, investigators recovered a .22 caliber firearm; ammunition; multiple quantities of suspected cocaine and marijuana; drug paraphernalia including a vacuum sealer and bag, razors, scales, metal press, cut, and packaging material; and numerous cell phones.
Vazquez-Baez is one of 12 defendants charged in this case and the ninth to be convicted.
The plea is the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the New York State Police, under the direction of Major Edward Kennedy.
Sentencing is scheduled for January 22, 2020, before Judge Vilardo.
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Jamestown Man Sentenced for Conspiracy to Distribute Cocaine, Methamphetamine, and MarijuanaRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Juan Pacheco, Jr., 37, of Jamestown, NY, who was convicted of conspiracy to distribute five kilograms or more of cocaine, 500 grams or more of methamphetamine, and marijuana, was sentenced to serve 84 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Joel L. Violanti and Emmanuel O. Ulubiyo, who handled the case, stated that the defendant was receiving kilogram quantities of cocaine and methamphetamine from California that were smuggled into the United States from Mexico. Members of the Drug Enforcement Administration working collaboratively with law enforcement officers from the Jamestown Metro Drug Task Force (JMDTF) identified Pacheco as a significant dealer in the Jamestown area and began investigating his activities.
Pacheco was arrested on August 18, 2016, after authorities executed a search warrant at his stash house located at 477 Main Street in Jamestown. Officers recovered approximately nine kilograms of cocaine, three-and-a-half kilograms of methamphetamine, and three kilograms of marijuana. Approximately $133,000 in cash was also seized as well as approximately $7,000 from the defendant’s pocket upon his arrest.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Ray Donovan, Special Agent-in-Charge, New York Field Division, and the Jamestown Metro Drug Task Force, which includes officers from the Jamestown Police Department, under the direction of Chief Harry Snellings; the Ellicott Police Department, under the direction of William L. Ohnmeiss Jr.; and the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major Mary Clark.
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Tonawanda Woman Going to Prison on Cocaine ConvictionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Iramarie Velez, 37, of Tonawanda, NY, who was convicted of attempted possession with intent to distribute cocaine, was sentenced to serve 12 months and one day in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on December 15, 2017, U.S. Postal inspectors seized a package, shipped from Puerto Rico, containing just over two kilograms of cocaine that was addressed to Iramarie Velez on Crane Place in Tonawanda, NY. The cocaine was replaced with sham cocaine, and then the package was delivered on December 28, 2017. After Velez accepted the package, she left the residence but returned a few minutes later with co-defendant Osvaldo Rivera-Amaro. Velez went back into the residence, came back out with the package, and placed it in the back of the Rivera-Amaro’s vehicle. Rivera-Amaro was subsequently detained, his vehicle was searched, and the package, containing the sham cocaine, was located in the trunk.
The sentencing is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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Three Rochester Area Businesses to Pay Financial Penalties for Defrauding the Rochester Schools Modernization ProgramRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that the United States Attorney’s Office has filed charges against Journee Construction Inc., Bell Mechanical Contractors, and Kaplan Schmidt Electric in connection with the Government’s ongoing investigation into the improper use of “pass through” minority contractors on the Rochester Schools Modernization Program.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the felony information filed against each of the three defendants, between April 2013 and November 2013, the defendants conspired with contractors to defraud the Rochester Schools Modernization Program, a public-works project to renovate and improve school facilities in the City of Rochester. The defendants created and submitted required documentation that falsely and fraudulently represented that contractors hired for program projects had complied with the Diversity Plan established for the program. In truth and fact, the contractors had not complied, and did not intend to comply.
In addition to filing the charges, the government also entered into a deferred prosecution agreement (DPA) with each of the defendants. Pursuant to the DPAs, the government has requested that its prosecution of the charges against each defendant be stayed in order to afford each defendant the opportunity to comply with the terms and conditions of such DPA. Under the terms of their DPAs, each defendant must:
o Fully cooperate with the government’s investigation going forward;
o Conduct its operations with respect to any disadvantaged business programs in compliance with all applicable laws and requirements for such programs; and
o Pay a financial penalty: Journee Construction Inc. will pay $70,000; Bell Mechanical Contractors will pay $50,000; and Kaplan Schmidt Electric will pay $25,000.
Should the defendants successfully fulfill all of the terms and conditions of their DPAs with the government, the charges against them will be dismissed.“Disadvantaged Business Enterprise programs such as this are intended to helps businesses owned by minorities obtain work on federally funded construction projects,” said U.S Attorney Kennedy. “Those who defraud the program in order to obtain federal funds take advantage both of the taxpayers and the businesses that the program is designed to assist. This Office remains committed to exposing and holding accountable who pervert these programs to serve their own self-interests.”
The charges are the result of an investigation by the Federal Bureau of Investigation, Rochester Office, under the direction of Special Agent-in-Charge Gary Loeffert.
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.
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Kingsmen Regional President, Convicted by A Federal Jury of Racketeering, Sentenced to 240 Months in PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY – U.S. Attorney James P. Kennedy, Jr. announced today that Timothy Enix a/k/a Blaze, 60, was sentenced to serve 240 months in prison by U.S. District Judge Elizabeth A. Wolford. The defendant, a Kingsmen Motorcycle Club (KMC) member and Florida/Tennessee Regional President, was sentenced for his conviction following a four-month jury trial of RICO conspiracy, possession of firearms in furtherance of a crime of violence, and using and maintaining premises for drug distribution.
According to court documents and evidence presented by the government at trial, beginning in 2013, certain KMC members wanted to establish the KMC as a “1% Club.” The “1%” refers to a previous statement by a representative of the American Motorcycle Association that 99 percent of motorcyclists were law-abiding citizens with the remaining one percent engaged in certain activities such as drug and firearm trafficking and acts of violence. The defendant, and others, participated in, directly and indirectly, acts of murder, assault, robbery, kidnapping, drug trafficking, obstruction of justice, and witness tampering. The KMC operated clubhouses in New York, Pennsylvania, Tennessee, and Florida, all of which were used for unlawful purposes, including drug distribution and firearms possession.
The KMC also committed numerous acts of violence, including the following:
• The September 6, 2014, murders of KMC members Paul Maue and Daniel “DJ” Szymanski. The two were murdered behind the North Tonawanda KMC Chapter clubhouse;
• On June 7, 2013, the KMC forcibly shut down the Springville KMC Chapter and stripped members of their colors because they were non-compliant members. Brandishing firearms, KMC members struck a victim in the head with a blunt object and stole items from the Springville clubhouse. They then used bleach to clean areas where the victim bled and cut and removed portions of the rug, which contained blood; and,
• On September 12, 2009, a female victim was punched repeatedly in the face by a KMC member and held against her will for three days to conceal her facial injuries from police.
“Following the 2014 murders in North Tonawanda, this Office decided that enough was enough and that it was time to put an end to this criminal organization for good,” stated U.S. Attorney Kennedy. “With today’s sentencing of the final KMC member, I can say—thanks to the prosecutors in my office and our law enforcement partners across the region and across the country—‘mission accomplished.’ With two KMC members, including the National President, receiving multiple life sentences, and 18 other KMC members receiving prison sentences of up to 20 years, other outlaw motorcycle gangs and criminal organizations should take notice. 1%’ers are not welcome in the Western District of New York, and if you come here and commit crimes, then know that you will be 100% dismantled.”
The investigation was led by the FBI’s Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert. Assisting in the investigation were the FBI Knoxville, Tennessee and Jacksonville, Florida Field Offices; Homeland Security Investigations; the North Tonawanda Police Department; the Niagara County Sheriff’s Office; the Erie County Sheriff’s Office; the Buffalo Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the New York State Police; the Olean Police Department; the Lancaster Police Department; the Amherst Police Department; the Town of Tonawanda Police Department; the Niagara Frontier Transportation Authority Police; the Cattaraugus County Sheriff’s Department; and the Hamburg Police Department. Trial Attorney Marianne Shelvey of the DOJ Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Joseph Tripi and Brendan Cullinane for the Western District of New York prosecuted the case.
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Buffalo Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051Buffalo, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Felix M. Velazquez, 43, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute cocaine, and possession of a firearm in furtherance of drug trafficking. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life, and a $1,000,000 fine.
Assistant U.S. Attorney Seth T. Molisani, who is handling the case, stated that in June 2018, the Lackawanna Police Department Narcotics Unit began investigating the narcotics trafficking activities of the defendant, a mid-level street cocaine distributor who had a large customer base in the Buffalo area. Velazquez conducted his distribution activities through his cellular phone, and at his apartment on Weyand Avenue in Buffalo.
On August 14, 2018, the Buffalo Police Department executed a New York State search warrant at the defendant’s Weyand Avenue residence. Officers recovered approximately 130 grams of cocaine; a digital scale; drug packaging materials; a .380 semi-automatic pistol, loaded with seven rounds; and $42,955.00 cash.
The plea is the result of an investigation by the Lackawanna Police Department, under the direction of Chief James Michel; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for January 6, 2020, at 9:30 a.m. before Judge Arcara.
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Buffalo Man Faces at Least 10 Years in Prison After Pleading Guilty for His Role in Drug Trafficking OrganizationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Quinton Jones, 39, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to possess with intent to distribute, and distribution of, five kilograms or more of cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that between November 2016 and September 29, 2017, the defendant conspired with others to distribute cocaine in the South Buffalo area for a drug trafficking organization led by co-defendant Cesar Rivera-Figueroa. On August 3, 2017, co-defendant Daniel Navarro obtained three kilograms of cocaine from co-defendant Luis Andino. At the direction of Rivera-Figueroa, Navarro distributed the cocaine to three others, including Quinton Jones. On August 18, 2018, Jones made payment of approximately $30,000 for this kilogram of cocaine.
On September 13, 2017, the drug trafficking organization received several parcels containing cocaine through the U.S. Postal Service. Rivera-Figueroa contacted Jones immediately upon receipt of the parcels to arrange for the defendant to pick up a kilogram and distribute it in the Buffalo area. On his way to collect the kilogram of cocaine, Jones was stopped by a marked Erie County Sheriff’s vehicle, and law enforcement found him in possession of $19,995 in U.S. currency.
Over the course of the defendant’s involvement in the conspiracy, Jones regularly distributed at least one kilogram of cocaine per month on behalf of the drug trafficking organization.
On September 29, 2017, the defendant was arrested inside his residence at 57 Juniata Street in Buffalo. A search warrant was executed and investigators recovered $4,023 in U.S. currency; a .22 caliber rifle with a defaced serial number; multiple rounds of ammunition; and a quantity of cocaine.
Jones is one of 12 defendants charged in this case and the eighth to be convicted.
The plea is the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the New York State Police, under the direction of Major Edward Kennedy.
Sentencing is scheduled for January 17, 2020, before Judge Vilardo.
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Statement of United States Attorney James P. Kennedy, Jr. Regarding Resolution of Criminal and Civil Forfeiture Cases Against Dr. Sreekrishna M. Cheruvu, M.D.Read the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051United States Attorney James P. Kennedy, Jr. announced today that the United States Attorney’s Office has executed a Non-Prosecution and Compliance Agreement dismissing all criminal charges against Dr. Sreekrishna M. Cheruvu, M.D., and entered into a stipulation resolving a civil disagreement over the correct CPT codes to bill for services rendered by T3 Medical, Dr. Cheruvu’s medical practice.
“Pursuant to the terms of the non-prosecution and compliance agreement, if Dr. Cheruvu’s medical license is restored, then any reimbursement claims he submits will, for a period of time, be monitored by a medical billing compliance expert agreed to by the parties,” Kennedy stated. “Additionally, the civil forfeiture case is being resolved with the government returning a total of $99,378.17, of the $466,158.33 seized from Dr. Cheruvu, to three different insurance companies he billed.”
In explaining his Office’s willingness to enter into a non-criminal disposition, Kennedy stated, “the crux of this litigation involved a dispute over the propriety of the billing codes used by Dr. Cheruvu in his medical practice. It was never a dispute over the quality of care provided by Dr. Cheruvu. Since the criminal and forfeiture cases were filed in 2014, my Office has continued carefully to collect, review, and evaluate evidence directed toward Dr. Cheruvu’s mens rea in billing as he did. Through that process new evidence came to light and at the end of that review, we determined that a non-criminal disposition was the just result. Remember, we are the Department of Justice, not the Department of Convictions.”
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Buffalo Man Going to Prison for Selling FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Miguel Figueroa, 33, of Buffalo, NY, who was convicted of possessing with intent to distribute, and distributing, 10 grams or more of a mixture and substance containing butyryl fentanyl and furanyl fentanyl, was sentenced to serve 37 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Laura A. Higgins and Jeremiah E. Lenihan, who handled the case, stated that on March 7, 2017, and April 11, 2017, the defendant sold drugs to a confidential source working for the DEA in exchange for $1,100 cash. Forensic testing determined that the controlled substance sold by Figueroa contained butyryl fentanyl, U-47700, furanyl fentanyl, and fentanyl.
On April 24, 2017, law enforcement officers executed a New York State search warrant at Figueroa’s residence on 15th Street in Buffalo. Officers recovered a plastic bag and five glassine envelopes containing butyryl fentanyl and other substances. Officers also recovered packaging materials, a digital scale, and approximately $3,137 in cash.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
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