Western District of New York
Press releases recorded for this federal judicial district.
West Seneca Man Previously Convicted of Sexually Abusing A Child Pleads Guilty to 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 Justin Wheeler, 27, of West Seneca, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to possession of child pornography involving a prepubescent minor by a person having a prior conviction for aggravated sexual abuse, sexual abuse, or abusive sexual conduct involving a minor. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of 20 years, and a $250,000 fine.
Special Assistant U.S. Attorney Jeremy Murray, who is handling the case, stated that on October 31, 2017, New York State Parole conducted a search of the defendant’s bedroom pursuant to Wheeler’s New York State court ordered search conditions. The defendant was on parole for a 2013 conviction for attempted rape in the first degree, a conviction which stemmed from his sexual abuse of a 12-year-old girl. During the search, parole officers seized a Samsung cellular telephone from the defendant’s bedroom. A search warrant was executed on the phone, which was found to contain 90 images and 269 videos of child pornography. Some of the images and videos included prepubescent minors and depictions of violence.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for October 1, 2019, before Judge Vilardo.
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Rochester Woman Going to Jail for Beating A Woman Who Testified Against Her Brother in Sex Trafficking TrialRead 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 Shykeila Russell, 30, of Rochester, NY, who was convicted of witness intimidation, was sentenced to serve 12 months and a day in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that in September 2017, an individual identified as L.T., testified in a federal jury trial against the defendant’s brother Stephen Jones. Jones was subsequently convicted of sex trafficking and sentenced to serve 25 years in prison.
On July 27, 2018, Russell physically assaulted L.T. as retaliation for L.T.’s testimony during the federal jury trial. The defendant observed L.T. walking down the street with a small child. Russell approached and stated, “my brother is doing 25 years and you think you can just walk around like nothing happened.” The defendant then punched L.T. repeatedly in the head, causing bruising and pain.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Gary Loeffert.
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Ontario Woman Charged with Smuggling Two Aliens into the United States in LewistonRead 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 Mary Ann Langridge, 63, of Toronto, Ontario, was arrested and charged by criminal complaint with aiding and abetting alien smuggling. The charge carries a minimum penalty of three years in prison, a maximum of 10 years, and a $250,000 fine.
Assistant U.S. Attorney Jonathan P. Cantil, who is handling the case, stated that according to the complaint, on May 21, 2019, a U.S. Border Patrol agent, after receiving a report of a suspicious vehicle operating in the area of Lewiston Landing in Lewiston, NY, located the vehicle, which was unoccupied, and began surveillance of the area. The agent spotted the defendant standing on the upper terrace area of Lewiston Landing waving toward a vessel which was on the Niagara River near the Lewiston Landing docks. There were occupants on board the vessel. As the vessel began to approach the woman on the dock, the agent began to approach the dock area along with other Border Patrol Agents. As the vessel reached the dock, it appeared that the occupants saw the agents approaching them, and pushed back onto the river and began to travel south away from Lewiston Landing.
The agents left the immediate area but continued to observe the vessel from another area where they couldn’t be seen. As the woman remained standing on the dock, the vessel returned, and without docking or tying-off the vessel, two individuals stepped off the vessel and on to the dock. The vessel then left the area, heading toward Canada.
An agent approached the woman, identified as the defendant, and the two individuals, identified as Rosa Guadelupe Lopez-Gomez and Leonardo Jimenez-De La Rosa. Lopez-Gomez and Jimenez-De La Rosa claimed to be citizens of Mexico and the Dominican Republic respectively, but did not have immigration documents which would allow them to be legally present in the United States. Langridge was placed under arrest for aiding and abetting alien smuggling.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Michael J. Roemer and is being held pending a detention hearing on May 24, 2019.
The criminal complaint is the result of plea is the result of an investigation by U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Josh Barrett.
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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New Jersey Man Pleads Guilty to Passport FraudRead 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 Sukha Singh Boyal, 52, of New Jersey, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to making a false statement in a passport application. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that in 1999, the defendant was a citizen of India but an alien in the United States. Boyal wanted to travel to India but did not possess a valid Indian passport. As a result, he purchased a false United Kingdom passport under the name of “Kamal Jeet” and used that false passport to fly from Newark, New Jersey, through Frankfurt, Germany, to New Delhi, India, whereupon he was refused entry into India and returned to the United States.
In May 2007, Boyal filed an N-400 application for naturalization with the U.S. Department of Homeland Security, Citizenship and Immigration Services. During his naturalization interview, the defendant acknowledged his prior use of the “Kamal Jeet” name. The defendant naturalized on April 16, 2009.
On July 15, 2009, in Buffalo, Boyal submitted an application for a U.S. passport with the U.S. Department of State. In response to the question, “have you ever used a different name?” the defendant wrote, “none.” Boyal signed the application, declaring under penalty of perjury that the statements he made on the application were true and correct.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Diplomatic Security Service, U.S. Department of State, under the direction of Special Agent-in-Charge Kenneth M. Haynes.
Sentencing is scheduled for August 15, 2019, at 3pm before Judge Geraci.
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Illegal Alien Sentenced on Gun Possession 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 Gregorio Salinas-Guzman, a native of Mexico living in Lyndonville, NY, who was convicted of being alien in possession of a firearm, was sentenced to serve 30 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Seth T. Molisani, who is handling the case, stated that the defendant is a native and citizen of Mexico with no lawful status in the United States. On March 15, 2018, the defendant was arrested following the execution of a search warrant at his residence on Alps Road in Lyndonville. Inside the residence, the Orleans County Major Felony Crime Task Force, assisted by Immigration and Customs Enforcement, recovered two 20 gauge shotguns; a rifle; a .22 caliber revolver; 207 rounds of ammunition; shotgun slugs; and 15 rounds of shotgun shells. Investigators also recovered a counterfeit Social Security card and a fraudulent Permanent Resident Card in the defendant’s name.
The sentencing is the result of plea is the result of an investigation by the Orleans County Major Felony Crime Task Force, under the direction of Sheriff Randy Bower, and Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction of Thomas E. Feely, Director of Field Operations.
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Felon Pleads Guilty to Firing Shots Outside Greece ResidenceRead 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 Christopher Rivers, 22, pleaded guilty before U.S. District Judge David G. Larimer to being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that during the early morning hours of January 25, 2019, the defendant fired a shotgun multiple times outside an apartment window at 1221 Affinity Lane in Greece, NY.
Rivers was previously convicted of Criminal Possession of a Firearm in Orleans County Court, and is legally prohibited from possessing a firearm.
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.
The plea is the result of an investigation by the Greece Police Department, under the direction of Chief Patrick D. Phelan, and the Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing is scheduled for July 30, 2019, at 10:00 a.m. before Judge Larimer.
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Conewango Man Sentenced for His Role in Debt Restructuring SchemeRead 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 Mark Farnham, 26, of Conewango Valley, NY, who was convicted of conspiracy to commit bank fraud, was sentenced to time served (nine months) and five years supervised release by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Stephanie Lamarque, Wei Xiang, and Mary Clare Kane, who handled the case, stated that between February 2016 and October 2016, the defendant worked with co-defendants Sergiy Bezrukov, Dustin Walker, and Vanessa Cardona at companies with various names such as “Corporate Restructure” and “Salamanca Payroll Services.” Farnham was a manager for Corporate Restructure, Inc., which operated out of office space in Salamanca, NY, and Buffalo, NY.
Farnham, Bezrukov, Walker, and Cardona, along with others, used a number of fraudulent companies to mail solicitations to small business owners (victims) which fraudulently informed the victims that one or more of the fraudulent companies could assist the victims with restructuring debts they had with other lenders.
From the summer of 2016 until October 27, 2016, the defendant: opened multiple bank accounts at a number of banks, including Citizens Bank, Bank of America, Northwest Savings Bank and First Niagara Bank; made daily deposits into the bank accounts opened at the aforementioned banks; made daily withdrawals from the bank accounts at the aforementioned banks; obtained a bulk mailing permit and opened post office boxes which were used to receive victims mail and to use as the return addresses on solicitation letters; and took calls from victims who were upset and had questions about their “loan restructure.”
When talking with victims over the telephone, Farnham used aliases and provided the victims with information that was not true or accurate about the status of the purported loan restructure. Farnham continued to deposit victims’ monies into the account of shell companies that never provided any services, and withdrew the deposited money from those accounts.
Bezrukov, Walker, and Cardona were all previously convicted and are awaiting sentencing.Today’s sentencing is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division; the Internal Revenue Service, Criminal Investigations Division, under the direction of Acting Special Agent-in-Charge Jonathan D. Larsen, New York Field Office; and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Buffalo Man Pleads Guilty to Distributing Child PornographyRead 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 Atif Ullah, 30, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to distribution of child pornography. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Special Assistant U.S. Attorney Jeremy Murray, who is handling the case, stated that on March 6, 2018, the defendant distributed a video using his cellular telephone that he knew constituted child pornography. On August 16, 2018, law enforcement officers executed a federal search warrant at the Ullah’s residence and seized two cellular telephones, each containing images of child pornography. An examination of the telephones revealed a total of 33 images of child pornography. Eight of the images were produced by the defendant between June 22 and August 16, 2018. The minor depicted in the images was seven years old at the time of the production, and was related to the defendant.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for October 4, 2019, before Judge Vilardo.
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Two Congo Citizens Arrested at the Lewiston Queenston 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 Serge Maombi, a/k/a Patrick Mwiseneza, a citizen of the Democratic Republic of Congo, was arrested and charged by criminal complaint with attempting to use an unlawfully obtained alien registration card for entry into the United States and making a false statement to a Customs and Border Protection Officer. The charges carry a maximum penalty of 10 years in prison. In addition, Jean Pierre Imani, also a citizen of the Democratic Republic of Congo, was arrested and charged by criminal complaint with smuggling and making a false statement to a Customs and Border Protection Officer, which carries a maximum penalty of five years in prison.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that according to the complaint, on May 20, 2019, at approximately 3:45 p.m., the defendants attempted to enter the U.S. at the Lewiston Bridge Port of Entry. During primary inspection, Imani, who was driving, and Maombi, who was in the back seat, presented identity documents, including a United States Permanent Resident Alien Card. Maombi’s card listed his identity as Patrick Sirikare. After examining the facial discrepancies of Maombi with the picture listed on the card, the vehicle was referred for secondary inspection.
During secondary inspection, Maombi stated that he was Patrick Sirikare. A fingerprint scan revealed that Maombi’s fingerprints were a mismatch.
Also during secondary inspection, Imani told officers that he and a third vehicle occupant had traveled to Niagara Falls, Ontario, Canada from Michigan alone for sightseeing. Imani later admitted that he, the third passenger, and the real Patrick Sirikare traveled from Michigan to Niagara Falls to pick-up Sirikare’s older brother, Maombi, and bring him to the U.S. with Sirikare’s green card.
The defendants made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and are being held pending a detention hearing on May 24, 2019.The complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
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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Robert Morgan, Three Others Indicted in Multi-Million Dollar Mortgage Fraud SchemeRead 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 grand jury has returned a 114-count superseding indictment charging Robert Morgan, Frank Giacobbe, Todd Morgan, and Michael Tremiti, with conspiracy to commit wire fraud and bank fraud for their roles in a half billion dollar mortgage fraud scheme. The defendants each face various additional charges such as wire and bank fraud, and money laundering. Todd Morgan and Robert Morgan are also charged with wire fraud conspiracy to defraud insurance companies. The charges carry a maximum penalty of 30 years in prison and a fine in the amount of double the loss caused by the crimes, which is currently estimated to exceed $25,000,000.
During the course of the conspiracy:
• Robert Morgan was the managing member and chief executive officer of Morgan Management. In addition to his role with Morgan Management, he controlled and managed owned a substantial portfolio of real estate holdings;
• Frank Giacobbe owned and operated Aurora Capital Advisors, identified himself as the Principal, and employed others to assist him in brokering, and attempting to broker real estate loans;
• Todd Morgan was employed at Morgan Management, and worked as a Project Manager at the company; and
• Michael Tremiti was employed at Morgan Management, and worked as Director of Finance for the company.Assistant U.S. Attorneys John D. Fabian and Douglas A.C. Penrose, who are handling the case, stated that according to the superseding indictment, between 2007 and June 2017, the defendants conspired with Kevin Morgan, Patrick Ogiony, Scott Cresswell, and others to fraudulently obtain moneys, funds, credits, assets, securities, and other property from financial institutions such as Arbor Commercial Mortgage, LLC and Berkadia Commercial Mortgage, LLC, and government sponsored enterprises, including Federal Home Loan Mortgage Corporation (Freddie Mac), and the Federal National Mortgage Association (Fannie Mae).
The defendants provided false information to financial institutions and government sponsored enterprises overstating the incomes of properties owned by Morgan Management or certain principals of Morgan Management. The false information induced financial institutions to issue loans: (1) for greater values than the financial institutions would have authorized had they been provided with truthful information; and (2) that the financial institutions would not have issued at the time of issuance had they been provided with truthful information. These properties included:
• The Preserve at Autumn Ridge, Watertown, NY;
• The Eden Square Apartments, Cranberry Township, Pennsylvania;
• The Rochester Village Apartments at Park Place, Cranberry Township, Pennsylvania;
• The Reserve at Southpointe, Canonsburg, Pennsylvania;
• 7100 South Shore Drive Apartments, Chicago, Illinois;
• The Avon Commons Apartments, Avon, NY;
• The Morgan Bay Apartments, Houston, Texas;
• Brookwood on the Green, Syracuse, NY;
• The Creek Hill Apartments, Rochester, NY;
• Hickory Hollow, Rochester, NY;
• The Knollwood Manor Apartments, Rochester, NY;
• The Links at Centerpointe, Canandaigua, NY;
• The Nineteen North Apartments, Pittsburgh, Pennsylvania;
• The Overlook at Golden Hills, Lexington, South Carolina;
• The Penbrooke Meadows Apartments, Rochester, NY;
• The Trails of North Hills Apartments, Raleigh, North Carolina;
• The Rivers Pointe Apartments, Syracuse, NY;
• The Union Square Apartments, Rochester, NY;
• The View at MacKenzi, York, Pennsylvania; and
• The Villas of Victor, Rochester, NY.To facilitate the conspiracy:
• Morgan Management provided property management, accounting, and financial reporting services for the properties owned by limited liability companies controlled by defendant Robert Morgan.
• The defendants conspired to manipulate income and expenses for properties to meet debt service coverage ratios (“DSCRs”) required by lending institutions. The manipulation included, among other things, removing expenses from information reported to lenders and keeping two sets of books for at least 70 properties, with one set of books containing true and accurate figures and a second set of books containing manipulated figures to be provided to lenders in connection with servicing and re-financing loans.
• The defendants conspired to present lending institutions with false and fraudulent inflated construction contracts and invoices that falsely reported to the lending institution that the contractor constructing a property was being paid more than the contractor was actually being paid.
• The defendants provided false information to financial institutions and government sponsored enterprises that overstated net incomes of properties and thereby induced financial institutions to: (1) issue loans (a) for greater values than financial institutions would have authorized had they been provided with truthful information; and (b) that the financial institutions would not have issued at the time of issuance had they been provided with truthful information; and (2) forgo contractual rights that would have inured to the financial institutions had the defendants and Morgan Management presented accurate financial information to the financial institutions.
• The defendants employed various mechanisms to mislead inspectors, appraisers, financial institutions and government sponsored enterprises with respect to the occupancy of properties.
• The defendants falsely inflated the amounts owed on properties, by among other things, (1) providing false documentation of obligations purportedly associated with the properties, (2) misrepresenting the actual purchase prices of properties by providing false contracts and contract prices, and (3), as set forth above, presenting false construction contracts and invoices.In the wire fraud conspiracy to defraud insurers, Todd Morgan and Robert Morgan are accused of conspiring with Kevin Morgan and Scott Cresswell to present false and inflated contracts and invoices for repairs to insurers after damages to properties in Robert Morgan’s real estate portfolio. These properties include the Summerwood Apartments in Merrillville, Indiana; the Eden Square Apartments in Cranberry Township, Pennsylvania; and at thirty-four properties in the Rochester, New York area after a March 2017 windstorm in that area.
The defendants are also charged with money laundering conspiracy for engaging in monetary transactions in excess of $10,000 using the proceeds of wire fraud and bank fraud.
The total loss sustained by financial institutions and government sponsored enterprises throughout the mortgage fraud scheme is currently estimated to exceed $25,000,000. The loss resulting from the insurance fraud scheme is currently estimated at approximately $3,000,000.
The defendants made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and were released on conditions.
“The charges announced today reflect this Office’s commitment to ensuring that those who do business with the mortgage, banking, and insurance industries act with honesty and integrity,” stated U.S. Attorney Kennedy. “The scope of the dishonesty and deceit alleged here—both in a geographic sense as well as in terms of the dollar value of the mortgages and properties involved—was expansive. This type of fraud strikes at the very heart of those industries, and I commend the FBI and the FHFA-OIG for the significant resources they devoted to this investigation in order to reveal the full scope of the illegal conduct alleged in this superseding indictment.”
“Today's charges allege Robert Morgan-and the men he surrounded himself with in business-worked hard with a desire to creatively subvert the integrity of the financial industry," said FBI Buffalo Special Agent-in-Charge Gary Loeffert. “In response, we worked just as hard and creatively to put a stop to it. We hope the indictment returned in this case helps to educate and protect the tens of thousands of investors who own mortgage-backed securities.”
Richard Parker, Acting Deputy Inspector General for Investigations for the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), said, “the financing of multifamily loans is a significant segment of Fannie Mae’s and Freddie Mac’s portfolio. As these charges demonstrate, FHFA-OIG will work with our partners in law enforcement to investigate and hold accountable those who seek to victimize the entities regulated by FHFA.”
Defendants Kevin Morgan and Patrick Ogiony were previously convicted of conspiracy to commit bank fraud, and defendant Scott Cresswell was previously convicted of conspiracy to commit wire fraud for their roles in the multi-million dollar fraud scheme. All three defendants are awaiting sentencing.
The superseding indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Federal Housing Finance Agency, Office of Inspector
General, under the direction of Special Agent-in-Charge Robert Manchak, Northeast Region.
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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Penn Yan Man Charged with Falsifying Inspection Reports for Space PartsRead 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 Smalley, 41, of Penn Yan, NY, was arrested and charged by criminal complaint with falsifying inspection reports for space parts. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that according to the complaint, the defendant was a Quality Assurance Engineer at PMI Industries, LLC, a Rochester aerospace precision machining service, specializing in high-tolerance machining for flight critical aerospace parts used to build space flight vehicles by SpaceX and other Department of Defense aerospace contractors. Smalley began his employment at PMI on March 6, 2017, working on contracts for SpaceX, which developed the Falcon launch vehicle family and the Dragon spacecraft family. Falcon and Dragon both currently deliver payloads into Earth orbit for NASA, the Air Force, other United States government agencies and private industry. SQA Services, Inc. (SQA) is a subcontractor to SpaceX, and provides multiple quality assurance functions within the aerospace and defense manufacturing industries.The complaint states that in January 2018, an internal audit by SQA Services, Inc. (SQA), at the direction of SpaceX, revealed multiple falsified source inspection reports and non-destructive testing (NDT) certifications from PMI Industries, LLC, for Falcon 9 and Falcon Heavy flight critical parts. SpaceX notified PMI of the anomalies. Source inspections and NDT are key tools used in the aerospace industry to ensure manufactured parts comply with quality and safety standards. Specifically, the signed source inspection report had a forged signature of the SQA inspector. SpaceX and SQA officials believed the signature of the inspector was photocopied and cut and pasted onto the source inspection report with a computer.
On February 16, 2018, the NASA Launch Services Program alerted the NASA Office of Inspector General (OIG), and Kennedy Space Center (KSC) Resident Agency, regarding the falsified source inspection reports and false NDT certifications created by PMI. Some of the false source inspection reports and false NDT certifications were related to space launch vehicle components that, at the time of discovery, were to be used for the upcoming Transiting Exoplanet Survey Satellite (TESS) mission, which launched from a SpaceX Falcon 9 rocket on April 18, 2018.
The investigation has identified that Smalley, while an employee of PMI, falsified at least 38 source inspection reports for space vehicle parts procured by SpaceX for the construction of the Falcon 9 and Falcon Heavy series of space vehicles. The investigation has also identified at least 76 individual piece parts that were rejected during source inspection or were never inspected by SQA, then subsequently shipped to SpaceX.
A records request from SpaceX identified seven NASA space flight missions, two United States Air Force space flight missions, and one National Oceanic and Atmospheric Administration (NOAA) space flight mission that were affected by parts purchased by SpaceX from PMI.
Subsequently, SpaceX terminated its business relationship with PMI averaged approximately $200,000 per month from the business with SpaceX, as a disqualified supplier. PMI subsequently closed its operation.
“The success of America’s reinvigorated space program depends not just on American ingenuity but on American integrity as well,” stated U.S. Attorney Kennedy. “These charges make clear that those who commit fraud against NASA, the Air Force, the National Oceanic and Atmospheric Administration, who are among the government agencies leading our space program, and those private companies, such as SpaceX, with whom the government partners and contracts in its effort, will be held accountable when they seek to cut corners. Such fraudulent conduct jeopardizes no only the success of the program but the lives of the brave men and women who rely on the integrity of not just the space vehicles themselves but all those who help to design and build them.”
“The NASA Office of Inspector General will continue to aggressively investigate those who undermine NASA operations and jeopardize U.S. space launch missions by their fraudulent actions,” said Special Agent-in-Charge John Corbett, Central Field Office.”
“The Air Force Office of Special Investigations (AFOSI), along with its law enforcement partners, has, and always will, aggressively identify, investigate, and neutralize anyone who attempts to commit aircraft and space vehicle part fraud and put our nation's warfighters at risk,” stated Special Agent-in-Charge Wendell W. Palmer, AFOSI, Office of Procurement Fraud.
“According to the criminal complaint, James Smalley took the act of forgery to a new level,” said FBI Buffalo Special Agent-in-Charge Gary Loeffert. “A potentially catastrophic level with the potential to not only cost millions of dollars, but also jeopardize years of irreplicable work.”
The defendant will make an initial appearance before U.S. Magistrate Judge Jonathan W. Feldman on May 23, 2019, at 1:00 p.m.
The complaint is the result of an investigation by the NASA Office of Inspector General, under the direction of Special Agent-in-Charge John Corbett, Central Field Office; the Air Force Office of Special Investigations, under the direction of Special Agent-in-Charge Wendell W. Palmer, Office of Procurement Fraud; and the Federal Bureau of Investigation, 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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Buffalo Man Going to Jail for Nearly 20 Years for Distributing Fentanyl, Final Defendant to Be Sentenced in Fentanyl 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 Calvin Elston, Jr., 41, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 400 grams or more of fentanyl, was sentenced to serve 235 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that between July 2013 and May 2015, the defendant conspired with co-defendants Brandon Coburn, Jennifer L. Courton, Rodney Courton, John Davis, Samuel Nappo, Tashaira Vazquez, Terrance Williams, Johanna Sanchez-Rodriquez, Luis Diaz, and others, to distribute fentanyl, oxymorphone, oxycodone, and amphetamines, Schedule II controlled substances.
Over the course of the conspiracy, Elston obtained prescriptions in his own name, and in the names of others, from co-defendant Brandon Coburn, a former nurse practitioner. Neither he, nor the others, ever saw Coburn for treatment. The defendant and co-defendant, Jennifer L. Courton, would then recruit various individuals who would agree to go to pharmacies to submit prescriptions. These individuals, including Rodney Courton, John Davis, Jessica Howard, Samuel Nappo, Tashaira Vazquez, Terrance Williams, Johanna Sanchez-Rodriquez, Luis Diaz, and others, would be paid money for their services. Coburn would also be paid for writing each prescription.
In total, from July 2013 to May 2015, 253 prescriptions were issued by co-defendant Coburn without any legitimate medical purpose.
A total of 10 defendants have been convicted and sentenced in this case:
• Brandon Coburn-108 months
• Jennifer Courton-180 months
• Rodney Courton-57 months
• John Davis-32 months
• Samuel Nappo-30 months
• Tashaira Vazquez-24 months
• Terrance Williams-20 months
• Johanna Sanchez Rodriquez-18 months
• Luis Diaz-24 monthsThe 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.
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Niagara Falls Man Indicted on Multiple Charges, Including Making and Possessing an Explosive DeviceRead 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 grand jury has returned a 12-count indictment charging Jeffrey Richards, 28, of Niagara Falls, NY, with narcotics conspiracy; possession with intent to distribute acetyl fentanyl, fentanyl, cocaine, marijuana, and alprazolam; maintaining a drug involved-premises; manufacturing controlled substances creating a substantial risk of harm to human life; unlawfully making and possessing a destructive device; possession of firearms in furtherance of drug trafficking; and, possession of a stolen firearm. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of life in prison, and fine of $5,000,000.
Assistant U.S. Attorneys Timothy C. Lynch and Brendan T. Cullinane, who are handling the case, stated that on December 14, 2018, law enforcement officers executed a search warrant at the defendant’s residence on Packard Court in Niagara Falls. At that time, officers recovered, among other items, amounts of acetyl fentanyl, fentanyl, cocaine, marijuana, alprazolam, approximately ten firearms, various rounds of ammunition, drug trafficking paraphernalia, and an improvised destructive device. Officers also recovered various items used in the manufacturing of destructive devices.
The defendant made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and is currently detained pending further proceedings.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, the Niagara Falls Police Department, under the direction of Superintendent Thomas Licata, and the Niagara County Sheriff's Department, under the direction of Sheriff James Voutour.
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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Former Substitute Teacher and Coach Indicted on Multiple Charges of Receipt and Production of Child Pornography, and Enticement of A MinorRead 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 grand jury has returned an 18-count indictment charging Steven Gasiorek, 33, of Cheektowaga, NY, with production and receipt of child pornography, and enticement of a minor. The highest charges carry a mandatory minimum penalty of 15 years, a maximum penalty of life in prison, and a $250,000 fine.
Assistant U.S. Attorney Elizabeth Moellering, who is handling the case, stated that according to the indictment and a previously filed complaint, on April 10, 2019, the Fauquier County, Virginia Sheriff’s Office contacted the Cheektowaga Police Department regarding a 14 year-old-male from Virginia who had been communicating through Instagram with a person utilizing Instagram account LEXIGURL1015. The boy, who was under the impression that LEXIGURL1015 was a teenage girl from California, sent pornographic images of himself to the account at the urging of the user LEXIGURL1015.
Subsequent investigation determined that the account belonged to the defendant, who was a substitute teacher and coach John F. Kennedy Middle and High schools. A search warrant was executed at the defendant’s Lehigh Street residence. Investigators seized a laptop computer and external hard drive that contain numerous images constituting child pornography. Further investigation suggests that Gasiorek has been engaged in the enticement of minors to produce child pornography activity for several years.
The indictment alleges that, in February 2019, the defendant coerced six minor victims to engage in sexual activity for the purpose of producing a visual depiction of such conduct. The defendant is also accused with enticing the minor victims and with receiving the child pornography created at his own urging.
The defendant was arraigned this morning before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on conditions.
Members of the public who have information related to this case are asked to call the Federal Bureau of Investigation at 716-843-1616.
The indictment 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 Zack, and the West Seneca Police Department, under the direction of Chief Daniel Denz.
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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Jamestown Man Going to Prison for Selling HeroinRead 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 Alex Mercado, 40, of Jamestown, NY, who was convicted of conspiracy to distribute one kilogram or more of heroin, was sentenced to serve 120 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that beginning in early 2016, the defendant served as one of the primary mid-level distributors of heroin and cocaine for the Sigfredo Martinez drug organization. Mercado admitted that he was responsible for the “night shift” transactions, and stated that his co-defendant, Bryan Ferrer-Vazquez, distributed during the “day shift.” The defendant admitted that he received a couple hundred bundles of heroin from Martinez every few days and was tasked with distributing it to smaller dealers and users. Mercado said he would then turn over the proceeds to Martinez and take payment for his role in the distribution. The defendant also directed co-defendant Ferrer-Vazquez to distribute heroin to specific customers and would collect the proceeds earned by Ferrer-Vazquez on behalf of Martinez. During this period of time, Mercado occasionally worked with other uncharged co-conspirators to process bulk quantities of heroin and repackage it for retail sale.
Between November 3, 2016, and March 2, 2017, the Drug Enforcement Administration conducted four controlled purchases of heroin with the defendant. On April 6, 2017, federal search warrants were executed at 385 Buffalo Street, the residence of Bryan Ferrer-Vazquez, and 32 Duquesne Street, the residence of Sigfredo Martinez. At each location, law enforcement officers seized numerous ledgers and paper records of drug transactions. A federal search warrant was also executed at Mercado’s residence at 1083 North Main Street in Jamestown where approximately 10 ounces of marijuana and several suboxone strips were recovered.
Bryan Ferrer-Vazquez was previously convicted and is awaiting sentencing. Charges remain pending against Sigfredo 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 sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, the Jamestown Police Department, under the direction of Chief Harry Snellings, and the Southern Tier Regional Drug Task Force.
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Florida Man Pleads Guilty to Sealing Bank Account Information of Dozens of VictimsRead 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 Jorge Alberto Alvarez, 35, a Cuban native living in Miami, Florida, pleaded guilty before U.S. District Judge Richard J. Arcara to bank fraud. The charge carries a maximum penalty of 30 years in prison, and a fine of $1,000,000.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between October 10, 2017, and October 10, 2018, the defendant participated in a scheme to obtain the bank card information of customers utilizing gas pumps by installing skimming devices on the pumps. Alvarez used the information to produce counterfeit access devices and then used the devices to fraudulently obtain money.
The defendant fraudulently obtained bank card information for approximately 131 individual customer accounts with various banks including Bank of America, JP Morgan Chase, and SunTrust Bank. After obtaining the bank card information, Alvarez produced 93 counterfeit access devices to withdraw money from accounts.
On October 10, 2017, as the defendant attempted to enter the United States at the Peace Bridge Port of Entry, he was found to be in possession of the 93 counterfeit access devices, 16 internal gas pump skimming devices, a card reader/encoder with a modified USB cable, and several other items used in furtherance of the scheme. The total loss amount is approximately $57,000.00.
The plea is the result of an investigation by agents of the United States Secret Service at the direction of Special Agent in Charge Lewis Robinson.Sentencing is scheduled for August 28, 2019, at 1:00 p.m. before Judge Arcara.
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Warsaw Man Admits to Possessing Child PornographyRead 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 Kory Doyle, 33, of Warsaw, NY, pleaded guilty to possession of child pornography involving a prepubescent minor before Chief U.S. District Judge Frank P. Geraci The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that in September 2017, the New York State Police executed a search warrant at the defendant’s residence in Warsaw. Several of Doyle’s electronics were seized. A forensic examination determined that the electronics contained over 700 images and 500 video files containing child pornography.
The plea is the result of an investigation by the New York State Police, under the direction of Major Edward Kennedy, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for August 15, 2019, at 11:30 a.m. before Judge Geraci.
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Tonawanda Man Sentenced for Receiving Child Pornography from MinorRead 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 Steven Brzezinski, 35, of Tonawanda, NY, who was convicted of receipt of child pornography, was sentenced to serve 96 months in prison and 20 years supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that the defendant, who was on probation for an unrelated offense, was in possession of a tablet containing child pornography. Additional forensic examination of the tablet revealed that Brzezinski had a romantic relationship with a 15 year old boy over the internet and had received child pornography from the minor via Facebook Messenger. The defendant has a previous conviction for endangering the welfare of a child.
The sentencing is the result of an investigation by Federal Bureau of Investigation, under the direction of Gary Loeffert, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Canadian Man Pleads Guilty to Attempting to Illegally Export Firearms from the U.S. to Dubai and ColumbiaRead 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 Aydan Sin, a/k/a Hon Chak Gordon Sin, a/k/a Andy, a/k/a Bullion, 47, of British Columbia, CA, pleaded guilty before U.S. District Judge Richard J. Arcara to violating the Arms Export Control Act. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between November 2016 and April 2017, the defendant conspired with others, including Guy Deland, a/k/a Mark, a/k/a Security Prime, and Charan Singh, a/k/a Charlie, a/k/a Sunny, to export defense articles on the United States Munitions List (USML) in violation of United States law.
In November 2016, Singh began communicating with an undercover law enforcement agent (UCA), inquiring about whether the UCA could export firearms from the United States to the United Arab Emirates. During the communications, Sin, Deland, and Singh were advised by the UCA that a license was required from the United States Department of State in order to legally export the firearms. The defendants acknowledged the illegality of the attempted exports, provided an encrypted Blackberry device to the UCA for the purpose of secure, covert communications, and wired approximately $70,000 USD from Canada to the United States as a 50% down payment for the export of the goods.
On December 7, 2016, Sin, through telephone and email, requested the gun order include 9mm handguns and Uzi machine guns. On December 9, 2016, Sin told the UCA that rather than get an export license, he wanted the UCA to export the firearms “the wrong way.”
Subsequently, on January 10, 2017, the UCA emailed two revised invoices to Sin and Deland. One invoice was for the export to Dubai of three new Glock 9mm firearms, six magazines, two used Mini Uzi submachine guns, two suppressors, and 1,000 rounds of 9mm ammunition for the firearms, for a total cost of $20,575. The second invoice was for the export to Colombia (thru Panama) of 37 new Glock 9mm firearms, 74 magazines, 13 used Mini Uzi submachine guns, 13 suppressors, and 3,000 rounds of 9mm ammunition for the firearms, for a total cost of $121,175. Both invoices contained language stating that exporting these products was prohibited by law without an export license.
On February 6 and 7, 2017, an undercover bank account, located in the Western District of New York, received two bank wire transfers from a bank account in Canada, each in the amount of $34,990 USD, representing 50% of the total purchase price of the firearms, suppressors, and ammunition.
On March 10, 2017, Sin contacted the UCA and asked if the shipment of guns to Columbia would occur in a few days. On March 20, 2017, the UCA used existing sea freight shipment tracking numbers and told Sin and Deland that the firearms, suppressors, and ammunition were shipped to Jebel Ali, United Arab Emirates, and the shipment of guns to Columbia would occur on March 29, 2017. The UCA also provided them with the tracking information.
The firearms, suppressors, magazines, and ammunitions listed above are defense articles listed on the USML. Prior to the attempted export and export of these defense items from the United States, Sin was aware that an export license was required and at no time did he, or the actual exporter apply for, receive, or possess a license to export the items from the United States.
“The Arms Export Control Act was enacted to keep our country and our citizens safe and secure from the threat of the illicit trafficking of firearms,” said U.S. Attorney Kennedy. “When our safety and security are compromised by individuals such as this defendant, it threatens to destabilize the national security of our country, which in turn puts American citizens at risk. It is our duty to be vigilant in enforcing the laws designed to protect our national security.”
“HSI vigorously investigates criminal organizations that attempt to illegally export firearms, firearm parts, munitions, and sensitive technology to protect American citizens, our warfighters and our allies,” said Special Agent-in-Charge Kevin Kelly. “Counter-proliferation investigations are among HSI's top priorities to ensure that those who put our country at risk are brought to justice.”
Charges remain pending against defendants Guy Deland and Charan Singh. 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. Additional assistance was provided by the Royal Canadian Mounted Police.
Sentencing is scheduled for August 26, 2019, at 12:30 p.m. before Judge Arcara.
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Buffalo Man Sentenced for Cyberstalking the Mother of His ChildrenRead 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 Mark Bieniek, 45, of Buffalo, NY, who was convicted of cyberstalking, was sentenced to serve 41 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that the defendant and Victim 1 were once partners and had children together. On April 25, 2017, Victim 1 received an order of protection against Bieniek, prohibiting the defendant from communication with Victim 1, except as permitted by order of a family or Supreme Court.
Between January 25, 2018, and February 19, 2018, Bieniek resided in North Richland Hills, Texas, while Victim 1 resided in Erie County, NY. In violation of the order of protection during this period, the defendant sent several hundred electronic messages to Victim 1 with the intent to kill, injure, harass, intimidate, or cause substantial emotional distress to Victim 1 or to place Victim 1 in reasonable fear of the death of or serious injury to herself or her partner, Victim 2. Among the messages:
• “I got [Victim 2]..” “I may spend the rest of my life in prison. But it’ll be worth it…I can’t wait to see him…Texas has lots and lots of pawnshops”
• “Hi [Victim 2]! Looking forward to meeting you…My brother killed someone…so can I (expletive)”
• “I like the pictures you posted. I’m coming fir you [Victim 2]. Now I know exactly what you look like. I’ll see you soon.” “(Expletives) I’m going to murder your boyfriend while you watch.”
• Images of the defendant holding an object resembling a black pistol along with the message, “It’s time [Victim 1]. I’m going to let you make the decision.”
• Photos of the outside of Victim 1’s place of employment with the message, “I’m wondering…Are you planning on coming out?”
• “I am here and I will get you. Maybe tonight I’ll just torch the place or ill wait to see the looks on your faces.”
• “see i paid a lot to put this whole plan together and i sawed off the end of my attitude adjuster. i have patience. be sure to look over your shoulder mother fucker because there will be dead bodies when I’m thru. Starting with your face getting a few slugs.”
• “I have nothing left [Victim 1]. You took it all. Idc what i have to do. You will hear my cries.” “I have two things i must do. Get you. No matter what. Then get myself.”
• “I know that you are alone and scared up there.”
• “I can feel the the hate for me. I can smell your fear.” “Fear.”
• “[Victim 2] you and [Victim 1] are going to die”, “Tomorrow”, “I promise you this sir”, “You are both dead”
• I SWEAR ON MY MOTHER CAROLS LAST BREATH IF SHE WERE TO ASK ME HER LAST DYING WISH TO NOT DO ANYTHING TO HURT OR SCARE YOU...LIKE SHE HAS BEFORE BUT YOU DONT CARE. IF SHE ASKED ME FOR THAT ONE LAST WISH BEFORE SHE TOOK HER LAST BREATH I'D LOOK HER IN HER EYES AND TELL HER I CANNOT CAN NOT GIVE YOU THIS WISH.The defendant has a history of domestic violence-related conduct towards Victim 1. On December 17, 2011, he was arrested for assaulting, including choking and kicking, Victim 1 with intent to cause physical injury. As a result, Victim 1 feared death or serious injury to herself and Victim 2 and suffered substantial emotional distress.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, with assistance from the FBI in Fort Worth, Texas.
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Lyndonville 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 Nolan Donald, 20, of Lyndonville, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to being an unlawful drug user in possession of firearms and ammunition, and possessing with intent to distribute, and distributing marijuana. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Seth T. Molisani, who is handling the case, stated that between February 2018 and April 18, 2018, the defendant was addicted to, or was an unlawful user of, marijuana.
On April 18, 2018, Donald was arrested following the execution of a search warrant at his residence on North Lyndonville Road. Inside the residence, investigators recovered a 9mm, semi-automatic pistol, loaded with eight rounds of ammunition; a 12-gauge shotgun; 79 rounds of ammunition; a small quantity of marijuana; edible marijuana cookies; and plastic baggies.
Following his arrest, the defendant admitted that he sold marijuana for approximately two years preceding his arrest and continued to sell marijuana and other marijuana products up until the time of his arrest. Donald also stated that he has used marijuana every day for the past year and a half.
Between February 17, 2018, and April 18, 2018, the defendant posted videos and photos to the social media application "Snapchat" in which he appeared to be in possession of a pistol and large quantities of marijuana, and using what appeared to be marijuana and prescription medicine.
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.
Sentencing is scheduled for August 20, 2019, at 12:30 p.m. before Judge Arcara.
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Indiana Man Pleads Guilty to 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 Dakota Casey, 27, of Indiana, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to transportation of child pornography. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that on June 27, 2018, the defendant attempted to enter Canada from the United States using the Peace Bridge. On Casey’s cell phone were images of child pornography involving three minor victims. The defendant was refused entry into Canada. Casey and his cell phone were turned over to U.S. authorities at the Peace Bridge Port of Entry.
In addition, between 2017, and June 27, 2018, Casey communicated with minors under the age of 18 years of age via the internet. Knowing that each was under the age of 16, the defendant requested that four victims take and send him child pornography images of themselves. Some of the images Casey persuaded two of the victims to produce portrayed sadistic conduct. The defendant also sent a naked photo to two of the victims.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for October 24, 2019, at 11:00 a.m. before Judge Wolford.
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Eight Defendants Arrested in Drug Conspiracy That Stretched from WNY to Puerto RicoRead 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 eight defendants have been arrested and charged with conspiracy to distribute cocaine, heroin and fentanyl which carries a mandatory minimum penalty of 10 years in prison, a maximum of life in prison and a $10,000,000 fine.
Named in the indictment are:
• Felix Calderon-Valcarcel, 28 of Lackawanna, NY;
• Annette Lugo Rodriguez, 39 of San Juan, Puerto Rico;
• Vivian Pintado-Figueroa, 40 of San Juan, Puerto Rico;
• Wilmer Casiano-Perez, 25 of Lackawanna, NY;
• Yarimar Berrios Alvarado, 24 of Lackawanna, NY;
• Lavon Parks, 28 of Niagara Falls, NY;
• James C. Parks, 55 of Niagara Falls, NY; and
• Wayne E. Paye, of Niagara Falls, NY.Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that according to the indictment, the defendants participated in a narcotics conspiracy responsible for distributing cocaine, heroin and fentanyl in the Western New York area. The conspiracy received bulk quantities of cocaine from suppliers in Puerto Rico via the United States Postal Service.
On May 26, 2017, a USPS postal inspector identified a suspicious postal parcel being mailed by Lavon Parks from a post office in San Juan to an address in Niagara Falls, NY. On May 31, 2017, a federal search warrant was executed on the suspicious parcel, which contained a kilogram of cocaine wrapped into a brick and concealed within a toaster oven.
On November 30, 2017, Lavon Parks, James Parks, and Wayne Payne were traveling on Interstate 40 in Hickman County, Tennessee. A law enforcement officer pulled the vehicle over after witnessing it commit several traffic infractions. James Parks, who was driving, was questioned outside the vehicle away from the passengers. He stated that he was heading back to Niagara Falls from Pensacola, Florida where they were visiting for a conference. The officer noted the unlikelihood that this was true given their location at least 50 miles west of Nashville, well off the route they would take if coming from Florida. At a later point during the traffic stop, James Parks stated that he had actually travelled from Florida to Houston to pick up Lavon Parks and Wayne Payne after they had called him for a ride. The rental car agreement was produced from the glove compartment and confirmed that James Parks rented the vehicle on November 17, 2017, in Buffalo.
The officers also spoke with the passengers. Wayne Payne stated that they were heading back to Niagara Falls, NY from Houston, TX after a visit to “setup a landscaping business.” Payne stated they were only in Houston for “a few hours; like a day or two.” Lavon Parks told the officer they were traveling from Houston to Niagara Falls and had stayed at the Hilton hotel.
A search of the vehicle recovered three-and-a-half kilograms of cocaine in four packages wrapped with plastic and duct tape concealed in the spare tire area underneath a cover. All three men disclaimed knowledge and ownership of the cocaine. When the packages were opened, officers located two smaller baggies containing crack cocaine.
Between July 2018 and February 2019, the investigation has seized approximately 10 ½ kilos of cocaine and $52,000 in U.S. currency from parcels shipped in the USPS mail between Puerto Rico and different states in the U.S. (including New York, Florida, Alaska, Georgia, and Pennsylvania). Additionally, the investigation conducted sneak and peek searches of parcels containing U.S. currency and money orders totaling $55,700.
Annette Rodriguez Lugo and Vivian Pintado-Figueroa are Puerto Rico-based co-conspirators responsible for shipping bulk quantities of cocaine in the US mail and receiving payments in the form of money orders or U.S. currency in exchange for the cocaine supplied.
On March 26, 2019, Felix Calderon-Valcarcel was observed travelling from his residence at 179 East Abbott Grove in Orchard Park in a rental vehicle to a suspected drug transaction. After the vehicle pulled over, investigators approached and observed Calderon-Valcarcel seated in the driver seat counting approximately $10,000 of U.S. currency. A search of the trunk of the rental vehicle resulted in the recovery of a plastic-wrapped kilogram of cocaine. Subsequently a search warrant was executed at the residence where Felix Calderon-Valcarcel resides with Yarimar Berrios Alvarado. Investigators located a large shipping box in the basement, which was found to contain four plastic-wrapped kilograms of cocaine identical to that recovered from the trunk of the vehicle. A 9 mm firearm was seized from the master bedroom, loaded with a magazine containing 10 rounds of ammunition.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; The Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Orchard Park Police Department, under the direction of Chief E. Joseph Wehrfritz; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Lackawanna Police Department, under the direction of Chief James Michel; the Hamburg Police Department, under the direction of Chief Gregory Wickett; and the Niagara Falls Police Department, under the direction of Superintendent Thomas Licata. Additional assistance was provided by the DEA in San Juan, Puerto Rico.
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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Clarence Investment Advisor Sentenced for Bilking Clients Out of Hundreds of Thousands of DollarsRead 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 Giokas, 59, of Clarence, NY, who was convicted of wire fraud for defrauding numerous clients of his investment advisory firm out of hundreds of thousands of dollars, was sentenced to serve 52 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay restitution totaling $916,396.
Assistant U.S. Attorney Paul E. Bonanno, who handled the case, stated that the defendant was a financial advisor and president of Giokas Wealth Advisors, located in Clarence. In that role, Giokas provided financial advisory services to more than 40 individual clients.
Between May 2017 and October 2017, the defendant persuaded certain clients to withdraw money from their investment accounts at Nationwide Mutual Insurance Company and invest the money in a company called Trinity Council, LLC. Giokas claimed that Trinity Council was a fund that invested in private corporations; that investments were guaranteed to earn interest between eight and nine percent per year; and that investment principal was guaranteed. The defendant also provided a fraudulent promissory note to one of his clients to convince the client that his investment in Trinity Council was legitimate.
Trinity Council was actually a shell company that engaged in no investment or business activity. Giokas was the sole member and only owner of Trinity Council, and the only person with signature authority on its bank accounts, which the defendant opened for the purpose of executing this scheme to defraud.
In a separate scheme, between 2015 and October 2017, Giokas prompted Nationwide to transfer money from his clients’ Nationwide accounts to the defendant under the guise of “fee requests.” Giokas claimed that he was entitled to the requested money as investment advisory fees, despite the fact that the requested amounts greatly exceeded what the defendant was entitled to pursuant to his fee agreements with his clients.
As a result of the two schemes, Giokas defrauded clients out of $1,473,396.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
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Perry Housing Project Ringleader Sentenced on Drug, Money Laundering, and Firearms 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 Tyshawn Bradley, 33, of Buffalo, NY, who was convicted of conspiracy to distribute 280 grams or more of crack cocaine within 1000 feet of the Perry Housing Projects, conspiracy to commit money laundering, and possession of an unregistered, sawed off rifle, was sentenced by U.S. District Judge Lawrence J. Vilardo to serve 30 years in prison.
Assistant U.S. Attorneys Timothy C. Lynch and Michael J. Adler, who handled the prosecution, stated that the defendant was the head of a narcotics trafficking ring that operated primarily in the Perry Housing Projects in Buffalo. Bradley maintained several apartments on the grounds of those projects, operated by the Buffalo Municipal Housing Authority, where members of his organization sold crack cocaine on a daily basis.
The defendant was arrested along with nine others on April 3, 2013, following the execution of search warrants several locations in the City of Buffalo and Cheektowaga, including at 124 Fulton Street and 305 Perry Street, which are located at the Perry Housing Projects. During the searches at the Perry Housing Projects, officers recovered over 300 grams of crack cocaine and 700 grams of powered cocaine as well as a sawed-off, 9mm semiautomatic rifle that belong to Bradley.
In addition, between October 2011 and April 3, 2013, the defendant conspired with others to purchase multiple houses in the City of Buffalo using the proceeds of his crack cocaine distribution organization. As part of the money laundering conspiracy, the properties were purchased by co-defendant Nannette Brown to conceal Bradley as the true owner of the properties.
Judge Vilardo concluded that, in addition to being a leader of the organization, defendant also used a minor to commit his drug trafficking offense. Additionally, the Court also found that the defendant possessed an arsenal of firearms and ammunition, and that defendant obstructed justice by threatening multiple witnesses. Most significantly, the Court found that defendant was responsible for the murder of Andre James on January 29, 2011. The evidence presented to the Court established that the defendant first shot another individual in the left jaw of his face, twice in the arm, and once in the hip. The defendant then shot James multiple times, killing him.
The murder was investigated by the Buffalo Police Department’s homicide detectives, who obtained the shell casings and evidence necessary to connect Bradley to the murder. Bradley’s involvement in this murder prompted the initial involvement of the FBI into Bradley’s drug trafficking activities.
To date, all 10 charged defendants have been convicted and Bradley is the final defendant to be sentenced.
Today’s sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Gary Loeffert, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
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Olean Man Pleads Guilty to Receipt of Child PornographyRead 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 Jacob Tunison, 30, of Olean, NY, pleaded guilty to receipt of child pornography before U.S. District Judge Richard J. Arcara. The charge carries a minimum penalty of five years in prison, a maximum penalty of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that in November of 2018, Tunison used Facebook to communicate with a minor female who was less than 16 years old. The defendant sent numerous lewd images of himself to the minor and solicited the minor to produce and send various images of herself to him.
The plea is the result of an investigation by the Cuba Police Department, under the direction of Chief Dustin Burch, and the Federal Bureau of Investigation, Jamestown Office, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for August 22, 2019, at 1:00 p.m. before Judge Arcara.
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Long Island Man Going to Prison on Child Pornography ChargeRead 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 Adam Leone 32, of Long Island, NY, who was convicted of possession of child pornography involving prepubescent minors, was sentenced to serve 60 months in prison followed by 10 years of supervised release by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Kyle Rossi, who handled the case, stated that Leone was arrested by members of the FBI on June 27, 2018, after he distributed child pornography to an undercover FBI Agent. Investigators determined the defendant’s location and executed a search warrant at his residence, where they located a computer containing child pornography.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
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Last Member of Deadly Elmira Opioid Trafficking Organization Sentenced to PrisonRead 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 Terrance Washington, 32, of Elmira, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of a fentanyl analogue, and witness retaliation, was sentenced to serve 135 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that Washington was a distributor in a large-scale opioid manufacturing and trafficking organization in the Southern Tier of New York and northern Pennsylvania between 2015 and May 2017. As part of the conspiracy, the leaders of the organization, Robert Ian Thatcher and Maximillian Sams, imported bulk quantities of furanyl fentanyl, acetyl fentanyl, and U-47700 from overseas suppliers China. They ordered the drugs on what is known as “the dark web,” and used different people and addresses in New York and Pennsylvania to receive the shipments. Thatcher and Sams purchased equipment and materials – including pill presses/mechanical tableting machines, microcrystalline cellulose, lactose magnesium stearate, and powdered food coloring – which they used to manufacture tens of thousands blue pills containing furanyl fentanyl, acetyl fentanyl and U-47700. The pills were made to look like legitimate 15 milligram and 30 milligram Percocet pills.
At least two individuals – a 21 year-old female, and a 25 year-old male – died after ingesting the blue pills containing furanyl fentanyl and U-47700. In addition, at least one individual overdosed on more than one occasion after using the blue pills manufactured and distributed by the organization, but survived after being treated by first responders with Narcan.
Thatcher and Sams used residences at 604 South Lehigh Avenue in Sayre, Pennsylvania, and 665 Sawdey Road in Catlin, NY, to manufacture and process the pills for distribution. During the execution of a search warrant at the Sayre location on May 16, 2017, law enforcement agents recovered, among other things, 244 blue pills containing furanyl fentanyl, four long guns and ammunition. In addition, during the execution of a search warrant at the Catlin location on May 18, 2017, law enforcement agents recovered, among other things, materials used by Thatcher and Sams to manufacture the pills for distribution. During the conspiracy, Thatcher also possessed several firearms at the Pennsylvania location and his residence in Elmira.
After manufacturing the pills, Thatcher and Sams would distribute them in large quantities to other co-conspirators – including Washington, Jesus Rivera, Anthony Prettyman, and Dwayne Banks, a/k/a Fizzle, a/k/a Fizz – who would then distribute the pills to various street-level customers in the Elmira area.
Sams also supplied pills to an individual in the Charlotte, North Carolina area. As part of the conspiracy, Sams used co-conspirator Anthony Prettyman to transport 5,330 blue pills containing furanyl fentanyl from Elmira to North Carolina in October 2016. On October 25, 2016, in North Carolina, deputies with the Iredell County (NC) Sheriff’s Office conducted a traffic stop of the vehicle in which Prettyman was traveling. During a subsequent search, the deputies recovered and seized a paint can with a false bottom containing the 5,330 blue pills from inside Prettyman’s vehicle.
In early 2017, Thatcher arranged for a package of furanyl fentanyl, that he ordered over the dark web, to be sent to Carlito Rios, Jr. On March 13, 2017, Customs and Border Protection officers at the John F. Kennedy International Airport Mail Branch in Queens, NY, examined a United States Postal Service package addressed to co-conspirator Rios at 1015 Oak Street in Elmira. The sender was listed as an entity in China. Upon inspection, the package was found to contain approximately 249 grams of furanyl fentanyl. Sams and Thatcher intended to use the seized furanyl fentanyl to manufacture and distribute additional quantities of the blue pills. As part of the conspiracy, Rios agreed to accept the package of furanyl fentanyl for Thatcher.
On August 1, 2017, Washington was arrested in Georgia. While in federal custody in Ohio, Washington assaulted an inmate who had been cooperating with the Drug Enforcement Administration in this investigation. Specifically, Washington struck the inmate in the head with closed fists, threw a cup at the inmate, and struck the inmate in the face with the cup. Washington assaulted the inmate in retaliation for the inmate’s cooperation with the Drug Enforcement Administration in the investigation of Washington and several associates, including Thatcher, Sams, Banks and Rios.
In total, 16 members and associates of the opioid manufacturing and trafficking operation have been convicted of federal narcotics offenses and sentenced. The other members of the organization were sentenced as follows:
• Thatcher was sentenced to serve 23 years in federal prison;
• Sams was sentenced to 210 months in federal prison;
• Prettyman was sentenced to 125 months in federal prison;
• Banks was sentenced to 108 months in federal prison;
• Rivera was sentenced to 108 months in federal prison;
• Thatcher’s girlfriend, Amber Bates, who was convicted of money laundering conspiracy, was sentenced to five years probation to include six months of home detention;
• Robert J. Elford was sentenced to 121 months in federal prison;
• Edward Barrett was sentenced to 90 months in federal prison;
• Scott Fairbanks was sentenced to 90 months in federal prison;
• Dusty Pemberton was sentenced to 70 months in federal prison;
• Deven Hill was sentenced to 37 months in federal prison,
• Chad Smith was sentenced to 22 months in federal prison;
• Jordan Jones was sentenced to 20 months in federal prison;
• Carlito Rios, Jr., was sentenced to time served and three years of supervised release; and
• Isaiah McLaurin, who was convicted of witness tampering after threatening an individual working with the Drug Enforcement Administration on Facebook, was sentenced to serve 57 months in federal prison.The sentencing is the result of an investigation by the Drug Enforcement Administration, Rochester Resident Office and Scranton PA Resident Office, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the New York State Police, Community Narcotics Enforcement Team Southern Tier, under the direction of Major Mary Clark and Lieutenant Kevin P. Sucher; the Elmira Police Department, under the direction of Chief Joseph Kane; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Pennsylvania State Police, under the direction of Acting Commissioner Lieutenant Colonel Robert Evanchick; the Chemung County Sheriff’s Office, under the direction of Christopher J. Moss; the Iredell, NC County Sheriff’s Office, under the direction of Darren E. Campbell, and Customs and Border Protection Air and Marine Unit, under the direction of Director Brian Manaher. Additional assistance was provided by the Northeast Regional Laboratory.
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Greece Man Pleads Guilty to Lying to the FBIRead 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 Thomas Alonzo Bolin, a/k/a Peter Vincent, 22, of Greece, NY, pleaded guilty before U.S. District Judge David G. Larimer to making a false statement to the FBI. The charge carries a maximum penalty of five years in prison, and a $250,000 fine.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that the FBI began investigating the defendant and others in March 2019 for potential violations of federal civil rights and firearms laws. On March 15, 2019, a Facebook user named “Ragnar Odinson” – who was a member of a Facebook group called “Odin’s Warriors” – made statements on Facebook referencing the mosque attacks that occurred in Christchurch, New Zealand, and indicated that he was willing to “do something” the following week. The defendant was a member of and administrator for the “Odin’s Warriors” Facebook group. The defendant used Facebook – under the user name “Peter Vincent” – to post messages consistent with white supremacist ideology, statements threatening violence against Muslims and others, and messages containing derogatory terms for Muslims and other minority groups.
On March 30, 2019, members of the FBI, as part of their investigation, interviewed the defendant. During the interview, Bolin falsely stated that he did not possess any firearms in New York State. At the time of the statement, the defendant knew that he possessed a Mossberg 12-gauge shotgun in his bedroom closet at 34 Third Avenue in Greece. This false statement was material to the FBI’s investigation of possible civil rights and firearms violations by Bolin and others. The FBI recovered the shotgun during a subsequent search of the defendant’s bedroom closet.The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for June 13, 2019, before Judge Larimer.
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California Man Pleads Guilty to Attempting to Have Sex with A 12-Year-Old ChildRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Gabriel Murillo, 44, of San Bernadino County, California, pleaded guilty to attempted online enticement of a minor before U.S. District Judge Elizabeth A. Wolford. The charge carries a minimum prison sentence of 10 years, a maximum of life, a lifetime period of supervised release, and a $250,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that between April 2018 and February 2019, Murillo engaged in sexually explicit online conversations with an individual who he believed was a 12 year old girl living in upstate New York. The defendant attempted to groom the child by sending her pornography, and despite acknowledging her age, requested that she meet with him for sex. On February 16, 2019, Murillo flew from Los Angeles, CA to Rochester, NY in order to have sex with the child. Unbeknownst to the defendant, the child was actually an undercover New York State Police Investigator.
Murillo was apprehended while disembarking a plane at the Greater Rochester International Airport on February 16, 2019, by members of the New York State Police, Homeland Security Investigations, and the Federal Air Marshal Service.
The plea is the result of an investigation by the New York State Police, under the direction of Major Eric Laughton; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the Federal Air Marshal Service, under the direction of Supervisory Air Marshal-in-Charge William Hall.
Sentencing is scheduled for August 6, 2019, before Judge Wolford.
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Buffalo Man Sentenced on Heroin 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 a Rashawn Crule, 43, of Buffalo, NY, who was convicted of possession with intent to distribute 100 grams or more of heroin, was sentenced to serve 108 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Meghan Tokash, who handled the case, stated that between June 2013 and September 2015, the defendant possessed with intent to distribute and distributed various illegal narcotics including kilograms of heroin, as well as fentanyl, crack cocaine and cocaine. Crule volunteered at the Saunders Community Center where DEA agents observed him leaving the center to drive to his stash house, and return to make sales. The defendant also maintained a drug-involved premises at 98 Gillette Avenue in Buffalo for the purpose of manufacturing, distributing and using these illegal narcotics. Crule also possessed a 9mm handgun.
Crule made two sales of heroin to an individual working with the DEA. On November 2, 2015, investigators executed a search warrant and seized $74,878 in U.S. currency and a 14 karat white gold necklace form the defendant’s residence at 22 Homer Avenue in Buffalo, which represented drug trafficking proceeds. After his arrest, the defendant told agents that he previously received three kilograms of heroin from co-defendant Troy Gillon and that he could readily get five more kilograms for distribution. A second search warrant was executed at 98 Gillette Street in Buffalo where investigators seized heroin, fentanyl, crack cocaine, and cocaine. A firearm and 11 rounds of ammunition were also seized.
Troy Gillon was convicted and is awaiting sentencing.
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 New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Detail Commander Mary Clark and Lieutenant Kevin Reyes, CNET West Commander; and the U.S. Customs and Border Protection, Air and Marine Unit, under the direction of Brian Manaher, Director, Marine Operations.
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Pain Doctor Sentenced for Using Patient Names Fraudulently to Obtain Controlled SubstancesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dr. Paul Biddle, 54, of Amherst, NY, who was convicted of identity theft and possession of unlawful hydromorphone HCL, was sentenced to two years probation by U.S. District Judge Elizabeth A. Wolford.Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that Biddle was an anesthesiologist and pain management doctor who also operated a medical marijuana practice. Between February 9, 2015 and October 16, 2017, the defendant was prescribing controlled substances for two deceased patients. Biddle knew the patients were deceased and used their names and dates of birth knowingly and without lawful authority to obtain controlled substances for himself.
After the death of one of the patients, Biddle wrote 10 prescriptions using the deceased patient’s name and date of birth between November 21, 2016 and October 16, 2017. All of these prescriptions were filled by a pharmacy in Tampa, FL, and shipped directly to the defendant’s home or office. After the death of the second patient, the defendant wrote 23 prescriptions using that deceased patient’s name and date of birth between February 9, 2015 and August 7, 2017. All of these prescriptions were also filled by a pharmacy in Tampa, FL, and shipped directly to the defendant’s home or office. Biddle was obtaining these prescriptions and using them himself.
The sentencing is the result of an investigation by Special Agents of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Federal Bureau of Investigation, Western New York Healthcare Fraud Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the New York State Department of Financial Services, under the direction of Linda Lacewell, Superintendent of Financial Services; Department of Health and Human Services, Office of Inspector General, Office of Investigations, under the direction of Special Agent-in-Charge Scott Lampert; and the Amherst Police Department, under the direction of Chief John Askey.
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New Jersey Man Indicted on Child Pornography, Cyberstalking 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 a federal grand jury has returned a 29-count indictment charging Timothy Myers, 34, of Freehold, NJ, with production, receipt, and distribution of child pornography, sexual enticement of minors, and cyberstalking. The charges carry a minimum of five years in prison and a maximum penalty of life in prison, and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that according to the indictment and a previously filed complaint, between December 2016 and August 2017, the defendant pretended to be a younger male, using the names CJ Mikowski and Colin James, and targeted girls as young as 12 years old on Facebook. Myers made the girls believe they were in a romantic relationship with him and persuaded the girls to end him sexually explicit images. When the girls did not send Myers the requested images, or attempted to break off communication, the defendant threatened to expose them by distributing their pictures to other people. In the case of one victim, Myers drove the minor from New York to New Jersey for sex on two occasions. There are at least five victims identified in the Western District of New York.
Myers was arraigned this morning before U.S. Magistrate Judge Michael J. Roemer and is being held pending further proceedings.
The indictment is the result of an investigation by New York State Police, under the direction of Major Edward Kennedy, 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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Another Morgan Management Employee Pleads Guilty for His Role in Multi-Million Dollar Fraud SchemeRead 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 Scott Cresswell, 52, Ionia, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to conspiracy to commit wire fraud. The charge carries a maximum penalty of 20 years in prison and a $5,994,639.86 fine.
Assistant U.S. Attorneys John D. Fabian and Douglas A.C. Penrose, who are handling the case, stated that between March 2017 and April 2018, the defendant was the Chief Operating Officer for Morgan Management, LLC. During that time, Cresswell conspired with others, under the direction of Robert Morgan and others, fraudulently to obtain insurance policy proceeds for repairs on properties managed by Morgan Management, LLC.
On March 27, 2017, Cresswell received an executed copy of a $2,500,000 contract for the cost of repairs at the Summerwood Apartments in Merrillville, Indiana. However, in May 2017, the defendant or other members of the conspiracy caused a false and inflated contract totaling $3,236,519, a false invoice, and a false and inflated lien waiver for repairs at the Summerwood Apartments to be sent to an insurer.
Similarly, from March to May 2017, Cresswell conspired with others to present false and inflated contracts and invoices to insurers in connection with repairs at the Eden Square Apartments in Cranberry Township, Pennsylvania. Despite being aware that repairs at the property were being completed for $174,999, the defendant or others sent inflated documents to insurers reflecting repair costs of $263,013.57.
In addition, from June 2017 to January 2018, Cresswell conspired with others to present false and inflated contracts and invoices to insurers in connection with repairs on 34 properties in and around Rochester after a windstorm that occurred in March 2017. On August 1, 2017, the defendant learned that, as of that date, the anticipated cost of the repairs was approximately $3,650,000. However, Cresswell and other members of the conspiracy planned to bill insurance companies at least $5,860,000. The profit to Morgan Management for this scheme to defraud was approximately $2,210,000. Cresswell admitted that, at Robert Morgan’s direction, he encouraged and instructed others to “grind the best you can” to get the profit for the repair work up to $2,500,000.
As a result of the false and inflated documents presented by the defendant and others, which included repairs at the Summerwood Apartments, Eden Square, and at the 34 properties impacted by the March 2017 windstorm, the total loss was $2,997,319.93.
“With the defendant’s plea today, this Office, with our partners at the FBI and FHA, have peeled back yet another layer in this extensive fraud scheme,” noted U.S. Attorney Kennedy. “Our efforts will not cease until the entirety of the fraudulent scheme is exposed.”
Today’s 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 Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent-in-Charge Robert Manchak, Northeast Region.
Sentencing will be scheduled at a later date before Judge Wolford.
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Three More Defendants Sentenced for Role in Drug Conspiracy Linked to Mexican Drug CartelRead 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 Max Paul Riestra, 42, who was convicted of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine and conspiracy to commit money laundering, was sentenced to serve 216 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated Riestra, a citizen of Mexico who was previously deported, utilized multiple names, including Carlos Alberto Riestra, Jesus Valdonado Castro, Jose Zamora, Jesus Ivan Riestra Delgado, in furtherance of the conspiracy. Between 2012 and March 2016, the defendant opened multiple bank accounts that were utilized by others to structure deposits from places around the United States, including Buffalo to California. Riestra and his co-conspirators, including co-defendants Jose Manuel Lua-Guizar, Gerardo Ballardo, Enrique Munoz, Pethrod Dunnigan, and Bryant Hudson, accounted for over $1,000,000 in structured deposits in Buffalo and over $10,000,000 in structured deposits nationwide during this timeframe. The defendant himself had over $1,500,000 in structured deposits made into accounts he controlled. The defendant also utilized multiple accounts to ship packages containing kilograms of cocaine from California to cities across the country including Buffalo, Denver, Chicago, and New York City
Riestra is one of seven defendants involved in an illegal narcotics operation stretching from Sinaloa, Mexico to Western New York. Law enforcement officers began investigating a sophisticated drug trafficking organization with ties to a Mexican drug cartel operating out of Los Angeles, California area in 2014. All seven defendants have been convicted in this case. Defendants Enrique Munoz and Jose Manuel Lua-Guizar were also recently sentenced to 63 months each. Co-defendants Gerardo Ballardo and Presiliano Garcia are the last defendants awaiting sentencing. Garcia was a Bank of America employee who opened multiple accounts for Riestra, and others.
“This case demonstrates that the activities of the Mexican cartel have a very real impact on the lives of individuals in our Western New York community,” noted U.S. Attorney Kennedy. “I think too often the thought is that their drug trafficking is simply the stuff of television and movies and is somehow removed from the ugliness that we too often see on the streets in our community. That is not the case, and this prosecution should serve as a reminder that this Office, with our law enforcement partners, will remain vigilant in doing all that we can to protect our community from the scourge that the cartel seeks to spread throughout our country.”
The sentencings are the culmination of an investigation on the part of 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; and the Internal Revenue Service, Criminal Investigation Division, under the direction of Acting Special Agent-in-Charge Jonathan D. Larsen, New York Field Office. Additional assistance was provided by ICE-HSI in Los Angeles, California and Bank of America.
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Rochester Man Arrested, Charged with Production 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 Sean R. Sullivan, 48, of Rochester, NY, was arrested and charged by criminal complaint with production and possession of child pornography. The charges carry a mandatory minimum sentence of 15 years in prison, a maximum of 40 years, and a fine of $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, the defendant was identified by the Federal Bureau of Investigation in connection with a child pornography investigation over a peer to peer network. On April 23, 2019, a search warrant was executed at Sullivan’s Twilight Drive residence in Rochester. Investigators seized multiple electronic devices including a Lancool Tower Desktop Computer, which contained 4 hard drives. A forensic examination of those hard drives revealed dozens of images and videos of child pornography.
Several of the images and videos are of a known victim (Minor Victim 1), who resided with the defendant for several years. The images appear to have been created by Sullivan and constitute child pornography. The complaint further indicates that the defendant likely drugged Minor Victim 1 to produce the images.
The defendant made an initial appearance before U.S. Magistrate Judge Jonathan W. Feldman and was detained.
The complaint is the result of an investigation led by the Federal Bureau of Investigation, 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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Jamestown Man Going to Prison for Selling MethamphetamineRead 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 H. Bess, Jr., 63, Jamestown, NY, who was convicted of possession with intent to distribute of five grams or more of methamphetamine, was sentenced to serve 84 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that on October 2, 2016, law enforcement officers conducted a controlled purchase with the defendant. During the buy, which took place inside Bess’s vehicle, the defendant sold a quantity of methamphetamine to another individual in exchange for $800 cash. Bess was arrested at that time.
During a search of the defendant’s vehicle, officers recovered three bags of methamphetamine. Officers also searched a room at the Red Roof Inn in the Town of Ellicott, which Bess had previously rented. During that search, officers recovered two additional bags of methamphetamine.
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 Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb.
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Former Chairman of the Rochester Housing Authority Indicted for Lying to the FBIRead 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 grand jury has returned an indictment charging George H. Moses, 50, of Rochester, NY, with two counts of making false statements to Special Agents of the FBI. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that according to the indictment and a previously filed complaint, the defendant was the Chairman of the Board of Commissioners of the Rochester Housing Authority (RHA), which provides housing opportunities and services for the Rochester community and a board member of the Rochester Housing Charities (RHC). The RHA annually receives millions of dollars from HUD.
On March 25, 2015, defendant Moses, as Chairperson of the Board of RHA, caused that Board: (a) to appoint him as one of the three new board members of the RHC, and (b) to approve a loan by the RHA to the RHC in the amount of $300,000.
Subsequently, the RHC entered into an $87,500 one year contract with Capital Connection Partners LLC (CCP). CCP then contracted with Adam McFadden and his company, Caesar Development LLC, executed a contract with CCP entitled the Pass Through Funding and Services Agreement, which provided that CCP would pass through 75% of the funds it received from the RHC to Caesar Development LLC.
In the course of an investigation into these contracts between RHC and CCP and between CCP and Caesar Development LLC, Special Agents of the FBI had occasion to interview defendant Moses regarding his knowledge of those contracts and payment of funds pursuant to them. As alleged in the indictment, during the course of those interviews Moses made the following materially false statements to the FBI:
• When asked how RHC learned of CCP, defendant Moses falsely stated that he could not recall specifically who brought CCP to the attention of the RHC, when in truth and in fact, defendant Moses knew that McFadden had brought CCP to his attention and to the attention of the RHC.
• When asked whether he knew if CCP had any subcontractors doing work under the RHC and CCP Contract, Moses stated that he was unaware of any sub-contractors that CCP utilized to execute the RHC and CCP Contract, when in truth and in fact, defendant Moses knew that McFadden and his company, Caesar Development LLC were allegedly performing work on behalf of CCP in connection with CCP’s contract with RHC.
• When told that Adam McFadden and his company received money from the RHC and CCP Contract, defendant Moses stated that he was surprised that McFadden and Caesar Development LLC received such money, when in truth and in fact, defendant Moses knew that McFadden and Caesar Development LLC, had received such money.
• When asked about an RHC board meeting held on May 12, 2015, defendant Moses stated he did not know who typed the minutes and the first time he saw the minutes of the meeting was at an RHA board meeting, when in truth and fact, he was aware that Adam McFadden typed and prepared the minutes which he received by e-mail on June 19, 2015, prior to an RHA meeting;
• When discussing a meeting held between CCP and the boards of the RHA and RHC on December 11, 2015, defendant Moses stated that he was surprised that McFadden was also at the meeting, when in truth and in fact, defendant Moses knew McFadden would be in attendance at such meeting.
The defendant was arraigned before U.S. Magistrate Judge Marian W. Payson and released on conditions.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-in-Charge Brad Geary.
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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Forestville Man Pleads Guilty to Possession of Child PornographyRead 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 Harvey, 55, of Forestville, NY, pleaded guilty to possession of child pornography before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Jonathan P. Cantil, who is handling the case, stated that on May 16, 2016, the defendant possessed 37 videos and 51 images of child pornography. Some of the images included prepubescent minors, and depictions of violence.
In addition, between January 16 and May 14, 2016, the defendant exchanged text messages with another man in which they discussed child pornography. During those text exchanges, Harvey distributed and received images of child pornography.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for September 17, 2019, at 9:30 a.m. before Judge Vilardo.
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Clarence Center Man Indicted on Multiple Drug and Gun 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 a federal grand jury has returned an indictment charging Anthony Gerace, 39, of Clarence, NY, with possession with intent to distribute marijuana, maintaining a drug-involved premises, and possession of firearms in furtherance of drug trafficking. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life, and a $500,000 fine.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that according to the indictment and a previously filed complaint, on January 28, 2019, HSI special agents executed a search warrant at the defendant’s current residence at 9070 Michael Douglas Drive, Clarence Center, NY. Agents recovered multiple pounds of marijuana and other suspected marijuana products including gummy edibles and multiple pens of THC oil cartridges used for vaping; five handguns; nine rifles; hundreds of rounds of ammunition in various calibers; three cell phones; $103,360 in cash; and evidence of sports gambling.
The indictment seeks forfeiture of the defendant’s Douglas Drive residence, and the $103,360 in cash, firearms, and ammunition seized from the residence.
The defendant was arraigned today before U.S. District Judge Lawrence J. Vilardo and released on conditions.
The indictment is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the Amherst Police Department, under the direction of Chief John Askey; 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 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 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 Donald Hennings, 33, of Buffalo, NY, who was convicted of possession with intent to distribute, and distribution of butyryl fentanyl and furanyl fentanyl, was sentenced to serve 33 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 three separate occasions in September and October 2016, the Hamburg Police Department conducted three separate controlled purchases of butyryl fentanyl from the defendant. In addition, in October and November 2016, Hamburg Police conducted six controlled purchases of furanyl fentanyl from Hennings.
On December 7, 2016, a search warrant was executed at the defendant’s residence on Southside Parkway in Buffalo. Officers recovered quantities of furanyl fentanyl and crack cocaine, multiple grinders, a digital scale, and blue envelopes and rubber bands commonly used to package controlled substances. Hennings was arrested inside a 2012 Chevy Traverse vehicle, which he used during several of the controlled purchases. In the door panel on the driver’s side, where the defendant was sitting, officers found an additional quantity of furanyl fentanyl.
The sentencing is the result of an investigation by the Hamburg Police Department, under the direction of Chief Gregory Wickett, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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West Seneca Man Fined for Bilking Victims Out of Thousands of Dollars in Scheme Involving Postage Stamps and Lottery TicketsRead 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 Jerry Hayes, 71, of West Seneca, NY, who was convicted of unlawfully mailing lottery tickets and related matter, was fined $1,000 by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Jonathan P. Cantil, who handled the case, stated that between 2006 and November 17, 2017, the defendant participated in a scheme to mislead and defraud others. Hayes sent out circulars and solicitation letters encouraging potential participants (victims) to join a “club” and to mail items of nominal value, namely, cash, U.S. postage stamps, and/or unscratched lottery tickets, to two or more purported other “participants,” whose alleged names and addresses were listed on the circulars and solicitation letters.
The solicitation letters directed the victims, in turn, to provide their names and addresses, allegedly so that the information could be added to the top of the solicitation letters, thereby making the victim an “instant benefactor” of all future mailed letters. The defendant advertised that such participation in the club would result in an exponential number of people sending cash, stamps or lottery tickets back to the victim, hence allowing the victim to “get rich” off an initial minimal investment.
The solicitations letters further indicated that the majority of the current club participants resided in Western New York. However, the addresses listed in the solicitation letters were merely post office boxes rented by the defendant and located in Hamburg, West Falls, East Aurora, Athol Springs, Blasdell, Orchard Park, and West Seneca, New York. All of the participants named on the solicitation letters were aliases used by Hayes, and each of the names were associated with a different post office box rented by the defendant.
Hayes mailed circulars and solicitation letters to individuals throughout the United States with a return address of “THG Funding,” PO Box 872, East Aurora, NY, 14052. Each envelope was addressed by hand, and each contained a notation such as: “Christmas Club;” “Requested Material;” “Stamp Club;” or “Personal Stimulus Plan.” The solicitation letters touted in their narratives that such opportunities were an “endless circle of cash,” “make money all year,” “simple inexpensive program could make you a multi-millionaire,” and “receive monthly benefits of $15,000.00.”
As a result of the scheme, Hayes collected approximately $90,713.00 in cash and postage stamps.
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.
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Tonawanda Man Pleads Guilty to 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, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute crack cocaine, oxycodone, and hydrocodone within 1,000 feet of a private school. The charge carries a mandatory minimum penalty of one year in prison, a maximum penalty of 40 years, and a $2,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling 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 plea is the result of an investigation by the Tonawanda Police Department, under the direction of Chief Jerome Uschold and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for August 16, 2019, before Judge Arcara.
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Ontario Man Pleads Guilty for His Role in International Fraud SchemeRead 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 Sheldon Hurley, 39, of Markham, Ontario, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to conspiracy to commit wire fraud. The charge carries a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Jonathan P. Cantil, who handled the case, stated that between May 2007 and July 2011, the defendant conspired with Afiya Stoddart, Sherece Payne, Ashley Cain, Luna Noncent, and others to defraud loan applicants, and fraudulently to obtain money and property from loan applicants.
The scheme involved a number of individuals in Canada operating websites for fictitious financial services companies which offered to arrange loans to U.S. residents with credit problems. Applicants provided their names, phone numbers, state of residence, requested loan amount, and approximate credit scores. They were then contacted by persons posing as Company “representatives” (using fictitious names), and told that a lender would be contacted for approval. When informed that a loan was arranged, applicants were instructed to sign and return a loan agreement, provide bank account information, and pay an “insurance deposit” for the lender to process the loan. Each applicant was provided wire instructions for the lender’s “insurance deposit,” including the name of the Company representative (payee), the amount, date, and Western Union location. Hurley engaged other individuals in the U.S. and Canada to act as Company “payees.” Some traveled from Canada to the United States, picked up wired funds, and transported them back to Canada. Others, residents of the U.S., picked up funds at Western Union locations in the U.S. and sent the cash to the defendant in Canada, via DHL courier services. Applicants never received the loans, but they were often coerced into making multiple “deposits” under various pretexts.
During the course of this scheme, the defendant recruited Afiya Stoddart and Sherece Payne to travel to Western Union locations in Buffalo, NY and elsewhere to pick up funds from victims of this scheme who sent “insurance deposits” to the fraudulently established companies.
Afiya Stoddart, Sherece Payne, Ashley Cain, and Luna Noncent were previously convicted and sentenced.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for August 27, 2019, at 11:00 a.m. before Judge Wolford.
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Jamestown Man Pleads Guilty to Production and Possession of Child PornographyRead 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 James A. Chapman, a/k/a Fatz Guy, a/k/a Perverted Doe, 37, of Jamestown, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to production and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 40 years, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that on November 24, 2014, Chapman and Victim 1 communicated via Facebook Messenger about engaging in sexual activity. During the communications, the defendant offered to pay Victim 1 and one of her friends $60 each to have sex with him. Victim 1 stated that she was 16-years-old and that her friend was the same age. Later that evening, Victim 1 and Victim 2 went to Chapman’s residence in Jamestown, and the defendant engaged in sexual intercourse with them, after which Chapman paid each victim $60.
Following the sexual activity, the defendant used his cellular telephone to take a picture of Victim 1 and Victim 2 completely nude sitting on his bed. A review of Chapman’s Facebook accounts revealed that he then distributed the photograph, which constitutes child pornography, to four other individuals.
Subsequently, on April 7, 2017, the defendant began communicating with Victim 3, who was 17-years-old, through Facebook. During their communications, Chapman requested and received a sexually explicit image of Victim 3. The defendant then sent the image, which constitutes child pornography, to another individual. In addition, Chapman sent Victim 3 the sexually explicit image he took of Victim 1 and Victim 2.
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 Jamestown Police Department, under the direction of Chief Harry Snellings.
Sentencing is scheduled for September 16, 2019, before Judge Vilardo.
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Cheektowaga Man Sentenced for Buying and Selling Counterfeit AirbagsRead 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 Raymond Whelan, 49, of Cheektowaga, NY, who was convicted of conspiracy to traffic in counterfeit goods, was sentenced to serve 24 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that between June 2015 and March 2016 the defendant operated an online automobile parts business known as Rayscarparts71.com. From this website Whelan sold counterfeit automobile air bags bearing counterfeit trademarks of Honda, Toyota, Nissan, Subaru, Mazda, Hyundai, Acura, and Mitsubishi. The counterfeit air bags Whelan sold were obtained from co-defendant David Nichols whose role was to find Chinese supply sources.
In order to avoid detection during importation, the airbags were mislabeled or arrived unassembled. Whelan would then assemble the air bags before selling them even though he had little to no knowledge on how to do so. The air bags were listed on eBay as genuine used airbags designed to fit Honda, Toyota, Nissan, Subaru, Mazda, Hyundai, Acura, and Mitsubishi.
During the investigation, multiple undercover purchases were made from Rayscarparts71 and airbags were seized from the defendant’s business. All the purchased and seized airbags were determined to be counterfeit and none of the automobile manufacturers authorized the defendant to utilize their trademarks.
Whelan imported and sold more approximately 360 counterfeit automobile airbags with an average manufacturer’s retail price of $650.00. The total infringement amount was $236,600.
Co-defendant David Nichols was previously convicted and is awaiting sentencing.Today’s sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly and Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations.
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Another Kingsmen Motorcycle Club Member Sentenced for RICO 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 Edgar Dekay, 38, of Buffalo, NY, who was convicted of RICO conspiracy and possession of firearms in furtherance of drug trafficking, was sentenced to serve 123 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorneys Joseph M. Tripi and Brendan T. Cullinane, who handled the case, stated that the defendant admitted to being a member of the Kingsmen Motorcycle Club (KMC), a criminal organization which engaged in such crimes as distribution of controlled substances, maintaining premises for use and distribution of controlled substances, possession, use and sale of firearms, sales of untaxed cigarettes, and promoting prostitution. The KMC sought to preserve and protect their power, territory, and reputation through intimidation, violence, threats of violence, assaults, attempted murder and murders, and was involved in placing victims, potential victims, potential witnesses, and others in fear of the enterprise, its members, and associates, through violence and threats of violence.
On September 21, 2012, Dekay participated in a drive-by shooting in order to retaliate against a former KMC member who assaulted a KMC Regional President. On that date, the defendant, along with co-defendants Ryan Myrtle, Thomas Koszuta, and others, used firearms to shoot up the house of a former Kingsmen who beat up a KMC Regional President and who stole from the KMC.
On June 7, 2013, Dekay and other KMC members agreed to “shutdown” the Springville KMC Chapter because members of that chapter were loyal to the former KMC National President, who was forced out of the KMC and replaced as National President by David Pirk. As a result, the “shutdown” included Kingsmen members clubbing the former Springville KMC Chapter President victim in the head with a heavy mag light flashlight, forcibly taking property from members of the KMC Springville Chapter, and destroying evidence of the assault and robbery.
Also, on August 3, 2013, the defendant and other KMC members, decided to conduct a drive-by shooting targeting former members of the KMC Springville Chapter. The defendant and others drove to the former Springville KMC clubhouse where the former members were gathered and fired twice towards the group who were outside. One of the shots from the shotgun struck a vehicle which was parked near where one of the targeted former KMC members was standing.
A total of 16 defendants were charged and convicted in this case, including KMC National President David Pirk and Andrew Jenkins who were each sentenced to serve multiple terms of life in prison.
Today’s sentencing is the culmination of an investigation led by the Federal Bureau of Investigation’s Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert. Assisting in the investigation were the following: the FBI Knoxville, TN, and Jacksonville, FL Field Offices; Homeland Security Investigations; 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 City of North Tonawanda Police Department; the Niagara County’s Sheriff’s Office; the Niagara Frontier Transportation Authority Police; the Cattaraugus County Sheriff’s Department; and the Hamburg Police Department.
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Watkins Glen Man Going to Prison on Methamphetamine ChargeRead 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 Christopher Wiesner, 32, of Watkins Glen, NY, who was convicted of attempted possession with intent to distribute 50 grams or more of methamphetamine was sentenced to 130 months In prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Sean C. Eldridge, who handled the case, stated that On May 16, 2018, a package from California was sent to the defendant at his home in Watkins Glen. Inspectors with the U.S. Postal inspection Service obtained a search warrant for the package, which was found to contain approximately 55 grams of crystal (pure) methamphetamine. Wiesner contacted the Watkins Glen Post Office on several occasions between May 16, 2018, and May 22, 2018, attempting to locate and pick up the package. On May 23, 2018, the defendant went to the Watkins Glen Post Office and retrieved a package that was filled with sham. Shortly after exiting the post office, Wiesner was arrested. The defendant admitted that he purchased the methamphetamine from the dark web, and that he intended to sell it.
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, with assistance from the New York State Police.
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Third and Final Former 5LINX Owner Sentenced for Wire Fraud and Tax Charge for His Role in Multi-Million Dollar Marketing SchemeRead 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 Jason Guck, 43, of Victor, NY, who was convicted of conspiracy to commit wire fraud and filing a false tax return for the year 2012, was sentenced to serve seven months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Richard A. Resnick, who handled the case, stated that in 2001, Guck, Craig Jerabeck, and Jeb Tyler started 5LINX Enterprise, Inc. (5LINX), a multi-level marketing company headquartered in Rochester, NY, which offered utility and telecommunications services, health insurance, nutritional supplements and business services. 5LINX used independent representatives to sell products and services and to recruit additional representatives. Jerabeck was President and Chief Executive Officer, Guck was Vice President and Secretary, and Tyler was Vice President of 5LINX.
In June 2006 and July 2006, Guck, Tyler, and Jerabeck sold 5LINX stock for $5,500,000 to three investment companies, Trillium Lakefront Partners III, L.P.; Trillium Lakefront Partners III, NY L.P.; and Shalam Investment Co., L.L.C. (collectively known as "the Investors"). Guck admitted in the plea agreement that from in or about May 2010 to April 2016, 5LINX sold and distributed products for a Florida vendor. Guck, along with Tyler and Jerabeck, and without the knowledge of the Investors, Board of Directors, or other stockholders, conspired and agreed to cause the Florida vendor to pay them personally or companies they owned approximately $2,310,510, which their Stockholders Agreements prohibited them from receiving. 5LINX, its investors, as owners between 2006 and January 2014, and as creditors thereafter, and stockholders were entitled to and should have received such funds instead of defendant, Guck, and Tyler.
Assistant U.S. Attorney Resnick further stated that Guck solely owned YaYa Holdings Corporation. Guck provided material false information on YaYa Holdings, Inc.’s federal tax returns for the fiscal years ending July 31, 2012, and 2013, and failed to file corporate returns for the fiscal years ending July 31, 2014, and 2015. In addition, for fiscal years ending July 31, 2012, and 2013, Guck failed to report income the corporation received from 5LINX. Also, for the fiscal years ending July 31, 2014, and 2015, the corporation had income that Guck should have reported on corporate tax returns for those years. The false returns and failure to file returns resulted in a tax loss of approximately $778,718.
In addition, Guck will forfeit various assets previously seized by the government, totaling to approximately $53,000.
Craig Jerabeck and Jeb Tyler were previously convicted and also sentenced to serve 14 months in prison.
Today’s sentencing is the culmination of an investigation by Special Agents of the Federal Bureau of Investigations, under the direction of Special Agent-in-Charge Gary Loeffert, and the Internal Revenue Service, Criminal
Investigation Division, under the direction of Acting Special Agent-in-Charge Jonathan D. Larsen, New York Field Office.
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Lockport Man Indicted for Threatening to Kill the President, A Judge, His Wife, and A Secret Service AgentRead 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 grand jury has returned a five-count indictment charging Jared Marc Brown, 23 of Lockport, NY, with one count of making a threat against the president, two counts of retaliating against a United States judge, one count of retaliating against a federal law enforcement officer, and one count of mailing a threatening communication. The charges carry a maximum penalty of 10 years in prison.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the indictment, on March 25, 2019, the defendant made a threat to take the life of, and to inflict bodily harm upon, the President of the United States. Specifically, the defendant sent a letter to a United States Secret Service Special Agent stating, “I’m [ ] gonna kill Donald Trump with Anthrax when I get out.”
In addition, also on March 25, 2019, Brown threatened to assault and murder United States District Judge Lawrence J. Vilardo, his spouse, and a United States Secret Service Special Agent. The defendant intended to retaliate against Judge Vilardo and the Secret Service Special Agent on account of the performance of their official duties.
The indictment is the result of an investigation by the United States Secret Service, under the direction Special Agent-in-Charge Lewis Robinson.
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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