Western District of New York
Press releases recorded for this federal judicial district.
Buffalo Man Pleads Guilty to FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Randy Jarrett, 45 of Buffalo, NY, pleaded guilty to conspiracy to commit access device fraud before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of five years in prison.
Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that between July and December, 2013, the defendant conspired with others, including Ricky Butler, Tamika Favors, and Catherine Jarrett, fraudulently to obtain and use unauthorized access devices, namely credit cards, without the knowledge or authorization of the true account holders. Co-conspirator Ricky Butler used the true account holder’s personal identifying information and account access information to contact financial institutions and have new or replacement credit cards issued to addresses in the Western District of New York. During the course of the fraudulent scheme, 17 unauthorized credit cards were mailed to properties which were owned and/or controlled by Randy Jarrett and his mother, Catherine Jarrett. Those credit cards were used by the defendant and the other conspirators to make, and attempt to make, purchases at Walmart stores and other retail establishments totaling over $330,000.
Tamika Favors and Catherine Jarrett have been convicted and are awaiting sentencing.
The plea is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division; and the United States Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson.
Sentencing is scheduled for November 30, 2017, at 10:00 a.m. before Judge Vilardo.
Postal Employee Pleads Guilty to Stealing from MailRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Percy Jackson, 29, of Buffalo, NY, pleaded guilty to theft of mail by a postal employee before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Maura K. O’Donnell, who is handling the case, stated that in the spring of 2017, while working as a mail processing clerk at the United States Postal Service Buffalo Processing & Distribution Center, the defendant rifled through mail he was entrusted to sort. Jackson opened envelopes intended to be delivered via U.S. mail, and removed gift cards and cash totaling $460.
The plea is the culmination of an investigation on the part of the United States Postal Service, Office of the Inspector General, under the direction of Special Agent-in-Charge Monica Weyler, Eastern Area Field Office, Philadelphia, PA.
Sentencing is scheduled for November 27, 2017, at 9:30 a.m. before Judge Vilardo.
Owner of “Fast Cash Tax” Pleads Guilty to Conspiring to Defraud the IRSRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jason Jimenez, 39, of Rochester, NY, pleaded guilty to conspiring to defraud the Internal Revenue Service, before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Jimenez owned an income tax return preparation business known as Fast Cash Tax. Between January 2012 and February 2015, the defendant conspired with other employees of Fast Cash Tax to prepare false tax returns on behalf of numerous clients. The returns were falsified to increase the amount of the Earned Income Tax Credit claimed, which yielded larger refunds for the clients than they were entitled to receive. In total, the conspiracy netted approximately $105,000 in fraudulently obtained refunds.
The plea is the result of an investigation by Special Agents with the Internal Revenue Service, under the direction of Special Agent-in-Charge James D. Robnett.
Sentencing is scheduled for December 4, 2017, at 2:00 p.m., before Judge Wolford.
Owner of “Fast Cash Tax,” Former Employees Sentenced for Conspiring to Defraud the IRSRead 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 Jimenez, 39, of Rochester, NY, who was convicted of conspiring to defraud the Internal Revenue Service, was sentenced to 12 months in prison by U.S. District Court Judge Elizabeth A. Wolford. In addition, co-defendants Jessica Rosario and Ashley Walker, who were also convicted of conspiracy, were each sentenced to three years probation.
Assistant U.S. Attorneys Melissa Marangola and John J. Field, who handled the case, stated that Jimenez owned an income tax return preparation business known as Fast Cash Tax. Between January 2012 and February 2015, the defendant conspired with other employees, including Jessica Rosario and Ashley Walker, of Fast Cash Tax to prepare false tax returns on behalf of numerous clients. The returns were falsified to increase the amount of the Earned Income Tax Credit claimed, which yielded larger refunds for the clients than they were entitled to receive. In total, the conspiracy netted approximately $105,000 in fraudulently obtained refunds.
The sentencings are the result of an investigation by Special Agents with the Internal Revenue Service, under the direction of Special Agent-in-Charge James D. Robnett.
Mexican National Arrested, Charged with Id Theft and Lying to A Border OfficerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Juan Luis Jimenez Cortez, a/k/a Fernando Castillo, 45, a native of Mexico living in Chicago, Illinois, was arrested and charged by criminal complaint with aggravated identity theft and making materially false and fictitious statements to a federal officer. The charges carry a minimum penalty of two years in prison, a maximum of five years and a $250,000 fine.
Assistant U.S. Attorney Stephanie O. Lamarque, who is handling the case, stated that according to the complaint, on August 13, 2017, a Customs and Border Protection Officer encountered the defendant driving a vehicle with an Illinois registration. During primary inspection, Cortez stated that while attempting to drive to Chicago, Illinois, he accidently drove across the Lewiston Queenston Bridge to Canada, and was sent back to the United States side of the border by Canadian border officials. The defendant presented an Illinois Drivers’ License listing the name Fernando Castillo as his proof of identity. Cortez was then referred for a secondary inspection.
During the secondary inspection, the defendant claimed to be a Puerto Rican born United States citizen, and he presented a Social Security card. Criminal record checks using the name and date-of-birth listed on the Illinois Drivers’ License showed multiple narcotic related arrests, including a 2010 conviction in Puerto Rico for drug trafficking. When asked about the drug arrest, Cortez replied that he has never been arrested for drugs. The defendant subsequently admitted that his true name is Juan Luis Jimenez.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing on August 16, 2017.
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.
Canadian Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Lawrence Hong, 21, of Canada, who was convicted of possession of a firearm by an unlawful user of a controlled substance, was sentenced to time served by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael P. Felicetta, who handled the case, stated that on January 21, 2017, the defendant presented himself for inspection as a non-immigrant visitor to the United States from Canada at the Peace Bridge Port of Entry. Hong was traveling alone in a 2016 Volkswagen that had an Ontario registration. The defendant told the Customs and Border Protection (CBP) officer performing the primary inspection that he was going to Buffalo to shop for a few hours at the mall and that he had nothing to declare. Despite his professed planned shopping trip, defendant had no explanation for the presence of his pet dog in the vehicle with him nor could the defendant provide details of what he intended to do with the dog while he was shopping.
Hong was referred for a secondary inspection during which a CBP officer ran a narcotics detection K-9 dog on the defendant’s vehicle. The officer opened the driver's side door of the vehicle and discovered a 9 mm handgun. During a full inspection the vehicle, $1,122.00 in cash as well as a piece of paper containing Xanax pills, hypodermic needles, and elastic bands were discovered.
Also during the secondary inspection, Hong told an officer that he was going to Ohio to purchase another firearm. The defendant also told the officer that the firearm discovered in his vehicle was previously purchased in the United States and illegally smuggled into Canada. Hong further admitted that he was a heroin addict who was undergoing methadone treatment.
The sentencing is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
Canadian Man Arrested for Attepting to Ship Live Snakes Through the MailRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Chaoyi Le, 28, of Mississauga, Ontario, Canada, was arrested and charged by criminal complaint with attempt to export and send from the United States, seven live ball pythons and three live albino western hog-nosed snakes, contrary to United States laws and regulations. The charges carry a maximum penalty of 10 years in prison.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that on February 28, 2014, the defendant had an encounter with U.S. Fish and Wildlife Service personnel in Chicago, IL while traveling from Toronto, Ontario to Shanghai, China. Le was found to be in possession of 55 live reptiles, many afforded protection under the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES). CITES is a treaty providing protection to fish, wildlife, and plants that may become imperiled due to the demands of international markets. The live reptiles possessed by the defendant included 19 ball pythons, eight surinam horned frogs, two tiger leg tree frogs, four red eye tree frogs, five crested geckos, four giant day geckos, a fisher chameleon, and 10 Jackson’s chameleons. Le was charged at that time by Violation Notice and paid a $5,000 fine.
The defendant was subsequently stopped on April 22, 2014, while entering Canada from the United States. At that time, he had three live albino western hog-nosed snakes hidden within his socks. Le, who indicated that he intended to mail the reptiles to China, failed to report for his appearance in federal court in September of 2014. However, on August 11, 2017, the U.S. Fish and Wildlife Service was notified that Le had boarded a flight from Shanghai, China, bound for Los Angeles, California. The defendant was arrested upon landing in California.
The criminal complaint is the result of an investigation by the U.S. Fish and Wildlife Service, under the direction of Honora Gordon, Special Agent-in-Charge, Northeast Region: and the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division.
Le made an initial appearance today in the Central District of California and will be returned to the Western District of New York at a later date.
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.California Man Pleads Guilty to Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Steven Bennett, 47 of Los Angeles, California, pleaded guilty to conspiracy to possess 50 grams or more of methamphetamine, and conspiracy to commit money laundering before Senior U.S. District William M. Skretny. The charges carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that between July 2012, and January 18, 2013, the defendant conspired with others to distribute over 50 grams of methamphetamine and over 500 grams of cocaine. Bennett had the illegal narcotics shipped from California to Buffalo. The drugs would then be distributed in the Buffalo area. During that time frame, the Drug Enforcement Agency utilized and eavesdropping warrant to intercept phone calls between Bennett and his co-conspirators.
The plea is the result of an investigation by the Drug Enforcement Agency, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent in Charge, New York Field Office.
Sentencing is scheduled for November 29, 2017, at 10:00 a.m., before Judge Skretny.
Arizona Man Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Shane Grafman, 33, of Phoenix, AZ, who pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine and 100 kilograms or more of marijuana, and money laundering conspiracy, was sentenced to 108 months by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that in April 2009, Shane Grafman and co-defendant Jordan Ali began assisting one another in their drug distribution businesses. The defendants obtained the narcotics in the State of Arizona, and then utilized several methods to send the marijuana and cocaine to the Buffalo area, including cars, trucks, shipping crates, and United States Postal Service parcels. Grafman also utilized private jets to travel from Arizona to Buffalo to pick-up his drug proceeds.
During the investigation, law enforcement officers seized approximately $1,000,000 in United States currency, including $671,385 from a hidden compartment within a Honda Ridgeline driven by Grafman.
A total of six defendants were arrested and convicted in this case.
Today’s sentencing is the culmination of investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett; United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam Cohen; Buffalo Police Department, under the direction of Commissioner Daniel Derenda; Erie County Sheriff's Department, under the direction of Sheriff Tim Howard; Niagara Frontier Transit Authority, under the direction of Chief George Gast; Tempe, Arizona Police Department; Apache County, Arizona Sheriff's Department; and the Oklahoma State Police.
Elma Man Pleads Guilty to Possessing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Kevin D. Waczkowski, 32, of Elma, 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 Stephanie Lamarque, who is handling the case, stated that on April 15, 2016, the Federal Bureau of Investigation’s Violent Crimes Against Children Task Force executed a search warrant at the defendant’s residence and seized several electronic devices. Forensic examination determined that Waczkowski was in possession of thousands of images of child pornography, some of which depicted prepubescent children less than 12 years of age, and some of which depicted images of violence.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for November 16, 2017, at 2:00 pm before Judge Vilardo.Buffalo Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Robert Brown a/k/a Pee Wee, 54, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute cocaine, was sentenced to time served and 1 year of supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Wei Xiang, who handled the sentencing, stated that between June 2013 and July 2014, the defendant bought quantities of cocaine from a co-defendant. The defendant then re-distributed the cocaine from his residence in Buffalo as well as from his store “Pee Wee’s Variety Store.”
The sentencing is the result of an investigation by the FBI’s Safe Streets Task Force.
Five Men Charged with Defrauding Xerox of $25,000,000Read the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Robert Lee Fisher; Bryan Day; Jason Haynes; Kyle Haynes; and David Haynes, all of Daytona Beach, Florida, were charged by criminal complaint with mail and wire fraud, conspiracy to commit mail and wire fraud, and money laundering conspiracy in connection with a scheme to defraud Xerox. The charges carry a maximum penalty of 20 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, Fisher owned RBM Imaging, Inc., which was an authorized reseller of the Xerox Corporation’s office equipment. The other defendants own Haynes Brothers Furniture in Volusia County, Florida, and two sham companies, HDH Graphics LLC (“HDH”) and Aldar Securities (“Aldar”), which were used to defraud Xerox Company in Webster, New York.
Under Fisher’s contract with Xerox, purchasers of Xerox printers would order Xerox consumables, consisting primarily of toner, to use in their printers. The purchasers, rather than pay Xerox for the toner, would pay Xerox based on the number of prints made with the toner. At all times, the toner belonged to Xerox until consumed by the purchasers. At no time could the purchasers sell the toner.
Between 2008 through 2013, Fisher, as an authorized reseller of Xerox printers, sold more than 60 printers to the sham companies, HDH Graphics and Aldar Securities. The Haynes and Day, using the sham companies, and with the assistance of Fisher, over ordered approximately $25,000,000 worth of the toner from Xerox, which they never used to make prints or for legitimate business purposes. To justify the large orders of toner, the Haynes’s and Day falsely reported to Xerox that their companies made 61,174,896 prints during the scheme, when in fact, their companies made few, if any, prints with their Xerox printers.The Haynes’s and Day then illegally sold the toner to a Miami, Florida individual for approximately $9,400,000. The defendants split the proceeds from the illegal sale of the toner.
The defendant will make an initial appearance on August 11, 2017, before U.S. Magistrate Judge Jonathan W. Feldman.
Today’s plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly; and the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Buffalo Man Sentenced for Conspiracy to Commit ArsonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today Michael Fijal, 64, of Buffalo, NY, who was convicted of conspiracy to commit arson, was sentenced to 12 months home detention by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay restitution totaling $119,312.05.According to Assistant U.S. Attorney Timothy C. Lynch, who handled the case, in May 2011, Fijal, a local bank employee, conspired with others to burn down a duplex at 179 Mackinaw Street, which is located in Buffalo's Old First Ward neighborhood. The defendant withdrew money from a local bank for the purpose of paying an accomplice to burn the building and paying the accomplice both before and after the fire on May 22, 2011.
The sentencing is the result of investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; and Investigators with the Buffalo Fire Department.
Buffalo Man Pleads Guilty in Heroin Trafficking ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy announced today that Daniel Molina Rios, a/k/a Ponce, 43, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute and distribution of 100 grams or more of heroin before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 40 years in prison, and a $5,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that between March 2014, and June 2015, the defendant conspired with Orlando Rios, Luis Montanez, and Jose Andujar, and others to distribute heroin on the West Side of Buffalo. Rios headed a wide-scale drug trafficking organization and supervised several street-level dealers who used a series of cellular telephones to conduct daily sales with customers seeking to buy heroin.
During the conspiracy, the defendant made at least six trips to the New York City area to purchase large quantities of heroin from a source of supply, purchasing at least 300 grams of heroin on each trip. In addition, during the conspiracy, the Buffalo Police Department and New York State Police conducted 66 undercover heroin purchases from individuals subordinate to the defendant in the organization.
Rios exercised ultimate decision making authority and had complete authority over five or more other participants, including at least 10 drug “runners” who were responsible for coordinating sales for incoming customers who contacted the drug trafficking organization on a “runner” phone each day. The defendant also maintained a premise at 74 Fillmore Avenue in Buffalo for distributing the heroin that was sold. A search of the residence on June 18, 2015, recovered six cell phones, packaging materials for heroin, and $14,293.00, in U.S. currency representing the proceeds from heroin distribution.
A total of 14 defendants have been indicted in connection with this case, and Rios is the eighth to be convicted. Charges are pending against the remaining defendants. 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 the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause and Lieutenant Kevin Reyes, CNET West Commander; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Rios is scheduled to be sentenced on November 2, 2017, at 2:00 p.m. before Judge Geraci.
Rochester Man Sentenced for Cocaine TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Yusef Blocker, 35, of Rochester, NY, who was convicted of possession with intent to distribute crack cocaine, was sentenced to 151 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorneys Richard A. Resnick and Charles E. Moynihan, who handled the case, said that on March 21, 2016, members of the United States Probation and Pre-Trial Services Office, who were supervising Blocker following his 2005 federal drug trafficking conviction, searched an apartment at 505 University Avenue in Rochester. During that search, probation officers found drug paraphernalia, U.S. currency, and a quantity of crack cocaine.
The plea is the result of an investigation by the United States Probation and Pre-Trial Services Office, under the direction of Chief Probation Officer Anthony SanGiacomo; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt.
Buffalo/Jamaican Drug Dealer Sentenced for Bribery of Postal CarrierRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Rudolph Dwight Hanchard, 40, a Jamaican national living in Buffalo, NY, who was convicted of bribery of a public official and attempt to possess with intent to distribute marijuana, was sentenced to 18 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that Hanchard received mail parcels from California and Arizona that contained marijuana intended for sale in Buffalo. Among his associates was then-postal carrier Briana Fugate. The defendant paid Fugate for marijuana worth approximately $30,000 that Fugate stole from mail parcels that had been entrusted to her for delivery. This arrangement spanned August to October 2015. At the time of Fugate’s arrest in October 2015, Hanchard owed her over $3,000.
The defendant was arrested 2016 while on his way to take custody of another marijuana parcel that had been delivered to a house on Stockbridge Avenue in Buffalo. Hanchard intended to break down that parcel for sale. The defendant was carrying $9,960 in drug proceeds, which he forfeited as part of his conviction.
Briana Fugate has been convicted and is scheduled to be sentenced on August 17, 2017.
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division; and the United States Postal Service, Office of the Inspector General, under the direction of Special Agent-in-Charge Monica Weyler, Eastern Area Field Office, Philadelphia, PA.
Fugate is scheduled for sentencing on August 17, 2017, at 12:30 p.m. before Judge Vilardo.
Buffalo Man Charged with Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Darryl M. Greene, 46, of Buffalo, NY, was arrested and charged by criminal complaint with attempt to possess with intent to distribute cocaine. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Patricia Astorga, who is handling the case, stated that according to the complaint, on July 27, 2017, the United States Postal Inspection Service (USPIS) executed a search warrant on a suspicious package mailed from San Diego, California. The package was addressed to a friend of the defendant. Inside, inspectors discovered one kilogram of suspected cocaine.
On July 28, 2017, USPIS and the Drug Enforcement Administration conducted a controlled delivery of the package. A package of sham cocaine was delivered to the friend’s Kensington Avenue residence. Within five minutes of the package’s delivery, Greene arrived at the residence and departed with the package. He was arrested a short time later and released.
On August 3, 2017, the USPIS executed a search warrant on another suspicious package from San Diego, California, which was addressed to a recipient identified as “W. Greene” at 1631 Hertel Avenue in Buffalo. The defendant resided at the residence with his mother. The second package contained a ½ kilogram of suspected cocaine. The defendant was arrested again this morning by law enforcement officers.
Greene made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention on August 9, 2017, at 11:00 a.m.
The complaint is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt.
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.
Miami Man Charged with Bank FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Ernesto Alvarez Santos, 20, of Miami, Florida, pleaded guilty to conspiracy to commit bank fraud before Chief U.S. District Judge Frank P. Geraci, Jr. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that in January 2017, the defendant, along with two co-conspirators traveled from Miami, Florida to Hamburg, New York. In Hamburg, Santos and another co-conspirator were provided with numerous counterfeit access devices, which consisted of gift cards re-encoded with account numbers for actual credit card or debit card accounts.
Between January 23, and January 24, 2017, Santos and the others used 129 different counterfeit access devices to purchase gift cards at various Walmart stores in Erie, Niagara, and Orleans Counties. Upon purchasing the legitimate Walmart gift cards, the defendants transmitted the legitimate gift card numbers by cellular telephone to another co-conspirator. In addition, Santos and the co-conspirators possessed an additional 102 different counterfeit access devices, which consisted of gift cards re-encoded with account numbers for actual credit card or debit card accounts at various financial institutions. The account holders of these credit card or debit card accounts did not authorize use of their credit card or debit card account information. The total estimated loss amount is $120,689.02.
The plea is the result of an investigation by the United States Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson.
Sentencing is scheduled for November 2, 2017 before Judge Geraci.
Georgia Man Pleads Guilty in Connection to A Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Wilfredo Sanio, 52, of Georgia, pleaded guilty to misprision of a felony before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of three years in prison and a $250,000 fine.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that between May 2010 and May 2012, the defendant concealed the fraudulent activities of co-defendants Ann Nichols and Donnie Heilig. Heilig and Nichols, both of whom resided in the state of Oklahoma, utilized a business entity known as CED Computer Services (CED) fraudulently to obtain loans for clients in the form of equipment “leases.” Wilfredo Sanio operated a business in Georgia known as SCF Funding, which acted as a broker and brought clients to CED Computer Services.
Sanio knew that Heilig and Nichols falsely advised lease finance companies that CED was selling new equipment to clients and prepared fraudulent invoices for new equipment when, in fact, no equipment or inferior equipment was actually being provided. Upon receipt of the funding from the finance companies, defendant Nichols gave a commission to Heilig, herself, and Sanio, from the lease proceeds and sent the majority of the remaining proceeds to the client.
Ann Nichols and Donnie Heilig have been convicted of wire fraud and are awaiting sentencing.
Today’s plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for November 13, 2017, at 12:00 p.m. before Judge Arcara.
Two Salamanca Men Indicted on Multiple Fraud ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 54-count superseding indictment charging Sergiy Bezrukov, 33, and Mark Farnham, 24, both of Salamanca, NY, with conspiracy to commit mail fraud, wire fraud, bank fraud, and money laundering. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys Trini Ross and Stephanie Lamarque, who are handling the case, stated that according to the superseding and a previously filed indictment, the defendants opened two offices in the Western New York area to operate fraudulent debt restructuring businesses.
Bezrukov and Farnham sent solicitation letters under various false and fictitious names, offering to assist small businesses with restructuring high interest loans. After the small businesses agreed to work with the defendants and their company, Bezrukov and Farnham would withdrawal sums of money from the small businesses accounts and use those funds for purposes not associated with assisting the small businesses. When the small business owners attempted to contact the defendants or others at the fraudulent company, they would get no response.
The defendants used the fraudulent debt restructuring business to defraud approximately 200 victims out of $1,200,000.00.
Defendant Farnham will be arraigned on August 4, 2017, before U.S. Magistrate Judge H. Kenneth Schroeder. Defendant Bezrukov will be arraigned at a later date.
The superseding indictment is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero; and the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent in Charge, New York Field Office.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.
Guinean National Sentenced for Possessing Fake Passport and Identity TheftRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Abdoulaye Barry, 25, of Jamaica, NY, who was convicted of possessing a fraudulent passport card and aggravated identity theft, was sentenced to 36 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that on February 26, 2017, the defendant, a citizen of Guinea, was found at the Rainbow Bridge with a fraudulent United States Passport card, bearing the name and passport card number of a real person with the defendant’s photograph, as well as a fraudulent Ohio Driver’s License bearing the name of a real person with the defendant’s photograph, and a Florida Driver’s license bearing the name and photograph of another person. The defendant was also in possession of a debit and credit card matching the name on the fraudulent Ohio Driver’s license.
The sentencing is the result of an investigation by the United States Department of State; Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations; and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero.
Husband and Wife Plead Guilty to Sex TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Frederick Evans, 40, and his wife Lashara Evans, 37, both of Rochester, NY, pleaded guilty to sex trafficking offenses before U.S. District Judge Charles J. Siragusa. Frederick Evans pleaded guilty to transporting a minor across state lines for the purpose of engaging in prostitution and faces a mandatory minimum penalty of 10 years in prison and a maximum of life. Lashara Evans pleaded guilty to conspiring with Frederick Evans to have minors engage in sex trafficking and faces a maximum sentenced of five years in prison.
Assistant U.S. Attorney Melissa Marangola, who is prosecuting the case, stated that between 2006 and 2007, Frederick Evans transported a minor victim from Rochester to New Orleans, Louisiana. The minor victim engaged in prostitution activities and gave the proceeds to the defendant.
In 2010, a 15 year-old minor victim was looking for a place to live when she met Frederick Evans who convinced the minor to engage in prostitution activities. Frederick Evans, who advertised the minor victim on Backpage.com., would have the minor victim engage in these activities along with his then-girlfriend Lashara. The minor and Lashara Evans would prostitute at a residence in Rochester, as well as at hotels in Syracuse, Watertown and Buffalo. Lashara Evans paid for the hotel rooms on occasion and the minor victim would give a portion of the money she earned from prostituting to Lashara Evans who would, in turn, give it to Frederick. Frederick used the money to pay rent and the bills for the residence where the prostitution activities took place in Rochester.
On December 17, 2011, Lashara Evans and Frederick Evans transported both the minor victim and another minor victim to a hotel in the Elmira area in order to engage in prostitution.
Frederick Evans will be sentenced on November 2, 2017, at 9:15 a.m. Lashara Evans will be sentenced on November 6, 2017, at 9:15 a.m. Both sentencings will be before Judge Siragusa.
The pleas are the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Buffalo Man Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Luis Diaz, 51, of Buffalo, NY, pleaded guilty to obtaining controlled substances through fraud, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of four years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that between September 2014 and April 2015, co-defendant Brandon Coburn, a licensed nurse practitioner who was legally authorized to prescribe controlled substances, provided prescriptions that were not issued for legitimate medical purposes to Diaz and nine others. Diaz and the others filled the prescriptions, and then sold the drugs, which included fentanyl, oxycodone, oxymorphone, and amphetamine, on the street in the Buffalo area. Vazquez filled a total of 13 prescriptions.
To date, eight defendants charged in this investigation have been convicted. 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 the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division.
Sentencing is scheduled for November 20, 2017, at 12:30 p.m. before Judge Arcara.
Dunkirk Man Sentenced on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Javier Pagan, Jr., 32, of Dunkirk, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, cocaine, was sentenced to time served by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that between 2013 and June 10, 2015, law enforcement officers have been investigating a drug trafficking organization led by defendants David Jesus Pagan and Rafael Burgos, Jr. During the course of the investigation, it was determined that the defendants distributed multiple kilograms of cocaine throughout the Dunkirk area.
Javier Pagan was arrested in June of 2013 along with David Jesus Pagan, Burgos, Samuel Hernandez as well as Alvin Torres, Jr. and Angel Pierluissi. Search warrants were executed at the time of the arrests at six properties which resulted in the recovery of more than seven kilograms of cocaine and approximately $175,000 in cash as well as an AR-15 assault rifle with a 30 round magazine.
All defendants have been convicted in this case.
Today’s 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 Office, the Dunkirk Police Department, under the direction of Chief David C. Ortolano, the Chautauqua County Sheriff’s Office, under the direction of Sheriff Joseph A. Gerace, the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy S. Whitcomb, and the Chautauqua County District Attorney’s Office, under the direction of Patrick Swanson.
Canadian Defendant Returned from Poland to Face Bank Fraud ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Acting Attorney James P. Kennedy, Jr. announced today that Panagiota Loukisas, 56, of North York, Ontario, Canada, was successfully returned from Poland and arraigned this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy. In July 2015, the defendant was named in a five count indictment charging bank fraud. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that according to the indictment, the defendant opened bank accounts at five banks in Niagara Falls, N.Y. in November 2014. Loukisas deposited checks drawn on a Canadian bank account held by her company, PM Global Consulting Services, into these five accounts. The defendant then withdrew significant sums of money from the Niagara Falls bank accounts before the checks were returned to the banks for insufficient funds. Loukisas is accused of fraudulently depositing non-sufficient fund checks valued at more than $83,000 and withdrawing more than $52,000 from the accounts before the scheme was discovered.
The defendant was arraigned and is being held pending a detention hearing on August 7, 2017.
The charges are the culmination of an investigation by Special Agents of the Immigration & Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Buffalo Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Shawn Lebrecht, 35, of Olean, NY, pleaded guilty to possession of child pornography before U.S. District Court Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that in early August 2016, an undercover law enforcement officer began communicating online with the defendant. Lebrecht sent the officer several images of child pornography. On August 25, 2016, a search warrant was executed at the defendant’s East Green Street residence. During the search, officers recovered a laptop computer. A forensic analysis determined the laptop contained over 300 images of child pornography. Some of the images depicted pre-pubescent children and violence.
Today’s plea is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero
Sentencing is scheduled for October 24, 2017, at 1:30 p.m. before Judge Wolford.
Buffalo Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that David Young, 50, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 50 grams or more of methamphetamine, was sentenced to 30 months in prison by U.S. District Court Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Joel L. Violanti, who handled the case, stated that on February 2, 2015, Cheektowaga Police officers conducted a traffic stop of the vehicle the defendant was driving. Young advised the officer that the vehicle was a rental vehicle while producing the rental agreement. However, the defendant was not listed as an authorized driver of the vehicle. As a result, he was asked to exit the vehicle. While doing so, the officer noticed a syringe in the driver’s seat of the vehicle.
Young was arrested and the vehicle was searched. During this search, the officer recovered approximately 325 gross grams of methamphetamine in the trunk as well as a FedEx shipping label address for 79 North Ogden, Young’s residence.
Today’s sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Cheektowaga Police Department, under the direction of Chief David Zack.
Buffalo Man Pleads Guilty to Cross-Country Cocaine Trafficking ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Rashawn Dewer, 37, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine, before U.S. District Judge Elizabeth A. Wolford. The charge carries a minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that the defendant organized a conspiracy that transported kilograms of cocaine from Texas to Buffalo and cash proceeds from Buffalo to Texas. Law enforcement agencies in multiple jurisdictions, including the State of Louisiana, made multiple seizures such as:
• On August 16, 2014, law enforcement officers stopped a vehicle in the vicinity of Covington, Louisiana, that was traveling from Buffalo to Texas. Inside a hidden compartment in the vehicle was approximately $330,020. This money originated from the defendant, was being transported at the defendant’s direction, and was payment for cocaine.
• On January 20, 2016, law enforcement officers stopped a vehicle in the area of Lake Charles, Louisiana that was traveling to Texas. Inside a hidden compartment in the vehicle was over $275,000. This money originated from the defendant and was being transported at the defendant’s direction.
• On February 22, 2016, law enforcement officers stopped a vehicle driven by a co-conspirator in the area of Lake Charles, Louisiana. Seized from inside the vehicle was approximately $798,021. At the time, the co-conspirator resided in Sugarland, Texas. After arrest, the co-conspirator asked an associate to call a telephone number that was subscribed to a second co-conspirator, who resided in Buffalo, to say, “I’m not going to make it.” On the money wrappings, one latent fingerprint was developed and found to match known prints from the defendant.
The plea 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.
Sentencing is scheduled for October 24, 2017, at 9:30am before Judge Wolford.
Buffalo Man Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Hayward Tarver, 38, of Buffalo, NY, pleaded guilty to possession with intent to distribute 28 grams or more of crack cocaine, before U.S. District Judge William M. Skretny. The charges carries a mandatory minimum penalty of five years in prison, a maximum penalty of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that on September 27, 2013, Buffalo Police and the Drug Enforcement Administration executed a search warrant at the defendant’s residence at 66 Connelly Avenue in Buffalo. During the search, officers recovered approximately 166 grams of crack cocaine, $6,000 in U.S. currency, a digital scale, and packaging materials used to distribute the cocaine.
The plea is the result of an investigation by the Drug Enforcement Agency, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for November 15, 2017 at 10:00 a.m. before Judge Skretny.
Webster Man Pleads Guilty to Methamphetamine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. James P. Kennedy, Jr. announced today that Pablo Ulloa, 33, of Webster, NY, pleaded guilty to conspiracy to possess with intent to distribute five grams or more of methamphetamine before U.S. District Court Judge William M. Skretny. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years and a $5,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that the Drug Enforcement Administration received a tip regarding the drug trafficking activities of the defendant and his co-defendant Brian Donaldson. On October 27, 2016, Hamburg Police conducted surveillance at a local motel where the defendants were staying. At approximately 9:15 p.m., Donaldson left the motel and was subsequently pulled over in a traffic stop by Hamburg officers. A search of the vehicle recovered a small quantity of methamphetamine, and a lock box which contained a much larger quantity of methamphetamine.
A search was then conducted of the motel room where Donaldson and Ulloa were staying. During that search, officers recovered more containers of methamphetamine, several cellular telephones, drug packaging materials, a scale and pipes.
Donaldson has been convicted and is awaiting sentencing.
The plea 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 and the Hamburg Police Department, under the direction of Chief Gregory Wickett.Sentencing is scheduled for November 1, 2017, at 11:00 a.m. before Judge Skretny.
Three Defendants Arrested for Attempting to Smuggle Marijuana into the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Curtis Nalls, 38, John Banks, 34, and Cassondra McDougald, 32, all of Niagara Falls, NY, were arrested and charged by criminal complaint with conspiracy to smuggle over 100 kilograms of marijuana into the United States from Canada. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $4,000,000 fine.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that according to the complaint, in November 2016, Homeland Security Investigations Border Enforcement Security Task Force (BEST) Buffalo received information that defendants John Banks and Curtis Nalls were involved in drug trafficking and smuggling activity from Canada to the Niagara Falls, NY area. An investigation was initiated it was determined that between July 28, 2016, and July 25, 2017, Balls, Nalls and Cassondra McDougald, individually and together, participated in the organization and/or transport of marijuana from Canada through the Rainbow Bridge Port of Entry into the United States approximately 39 times, each time carrying approximately 10 to 30 pounds.
On July 25, 2017, law enforcement officers learned that McDougald traveled to Canada and back to the United States. They surveilled McDougald and followed her to her residence on Cudaback Avenue in Niagara Fall. That same day, United States Probation Officers approached Nalls and Banks who were traveling in a vehicle on Packard Road in Niagara Falls. Upon approach, officers observed that the passenger side door panel of the vehicle had been removed, revealing black and blue taped bundles in the natural void of the door. Nalls was on federal probation at the time which resulted in a search of the car and his residence. During the searches, officers seized 30 bundles of suspected marijuana; a quantity of loose, suspected marijuana; two suspected marijuana plants; $22,061 in cash; two pistols with magazines; ammunition; and a Hydraulicpress.
The defendants made an initial appearance before U.S. Magistrate Judge Michael J. Roemer. Defendant Nalls is being detained, defendants Banks and McDoualg were released on conditions.
The complaint is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigation, under the direction of Special Agent-in-Charge James C. Spero, and the United States Probation Department, under the direction of Chief Probation Officer Anthony SanGiacomo.
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.
Steuben County Man Pleads Guilty to Making A False StatementRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Brian Woodhams, 40, of Wayland, NY, pleaded guilty to making false statements to a federal agent, before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Mary C. Baumgarten, who is handling the case, stated that since October, 2015, the defendant has held a student pilot license issued by the Federal Aviation Administration (FAA) and is permitted to fly an airplane with a flight instructor or by himself. If Woodhams flies with a passenger, a flight instructor must also be on board the airplane.
On October 31, 2015, the defendant was involved an accident while landing his Piper Cherokee 140 airplane at the Perry-Warsaw Airport in Perry, NY. The airplane veered to the right, and Woodhams over-corrected and hit the brakes, causing the nose of the plane to go into the ditch off the runway. At the time of the accident, there was a 15-year old boy on board as a passenger, but no flight instructor.
On November 2, 2015, FAA Aviation Safety Inspectors viewed the defendant’s airplane at the Perry-Warsaw Airport. During a telephone conversation, Woodhams told inspectors that he had sustained a bloody nose and hurt his shin during the crash. The defendant also stated that he was the only occupant in the airplane at the time of the accident but that his son approached the aircraft immediately after the crash and slipped and fell as he climbed up the flap, hitting his nose and causing a bloody nose.
Woodhams met with inspectors in person on November 4, 2015, and stated once again that he was the only occupant of the aircraft at the time of the accident and that his son arrived at the crash scene later. The defendant was told that a witness reported seeing his son in the aircraft but Woodhams again denied this fact.
On November 10, 2015, the defendant submitted a Pilot/Operator Aircraft Accident/Incident Report to the National Transportation Safety Board (NTSB) and failed to report that there was a passenger on the plane at the time of the accident who was injured.
On January 10, 2017, Woodhams was interviewed by a Special Agent of the U.S. Department of Transportation, Office of Inspector General, and FAA inspectors and stated once again that he was the only person on the plane at that time. When questioned concerning evidence developed during the FAA investigation that there was a passenger in the plane at the time of the crash, defenant denied that there was a passenger in the plane and he gave an alternative explanation that was untrue.
The plea is the result of an investigation by the Department of Transportation, Office of the Inspector General, and the Federal Aviation Administration.
Sentencing is scheduled for November 3, 2017 at 10:00 a.m. before Judge Vilardo.
Mount Morris Man Pleads Guilty to Methamphetamine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Zackery D. Billings, 27, of Mount Morris, NY, pleaded guilty before U.S. District Court Judge Lawrence J. Vilardo to conspiracy to manufacture, possess with intent to distribute, and distribute, a mixture and substance containing methamphetamine. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that between January of 2011 and October 25, 2011, the defendant conspired to manufacture and distribute methamphetamine. In order to avoid restrictions on the purchase of pseudoephedrine, an important chemical in the methamphetamine manufacturing process, Billings engaged in the practice of “smurfing” (buying small quantities) at local pharmacies.
The plea is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major David Krause; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Region; the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb; the Wellsville Police Department, under the direction of Chief Timothy O’Grady; U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Steven Oldman; and the New York State Department of Environmental Conservation, under the direction of Captain John Burke.
Sentencing is scheduled for November 2, 2017, before Judge Vilardo.
Jamaican National Sentenced for Making False Statements at the BorderRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that LaTanya Notice, 42, of Mount Vernon, NY, who was convicted of making false statements to federal officers, was sentenced to one year probation by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that on January 23, 2013, the defendant, a Jamaican citizen with legal permanent resident status in the United States, attempted to cross into the United States from Canada at the Peace Bridge with a man in possession of a valid United States Passport. Notice claimed that her traveling companion was her brother and they were returning to their home in New York City. Standard database checks revealed that the man was in fact Horace Tajah, an aggravated felon from Jamaica. In 2010, Tajah, who was the defendant’s husband at the time, was convicted in the Southern District of New York of drug, gun, and conspiracy to commit murder charges. Tajah was sentenced to 72 months in prison, deported to Jamaica on December 28, 2012, and banned from the United States for life.
In June 2017, Horace Tajah, who was convicted of reentering the United States after a conviction for an aggravated felony, was sentenced to time served (four years).
The sentencing is the result of an investigation by United States Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
Georgia Man Sentenced on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Eric Hubbard, 34, of Stone Mountain, Georgia, who was convicted of being a felon in possession of a firearm, was sentenced to 18 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on June 19, 2014, the defendant was walking down Genesee Street and was approached by a pair of Buffalo Police Officers. After refusing to show identification, the officers patted Hubbard down and detected a gun. A search revealed a 9mm semi-automatic handgun, and 13 rounds of ammunition. The defendant subsequently stated to the arresting officers that the gun was “his girl’s” and that he was carrying it to protect himself.
As a result of two prior convictions in the State of Michigan, the first in 2002 for breaking and entering, and the second in 2003 for attempting to break and enter and assaulting or resisting a police officer, the defendant is prohibited from legally possessing a firearm.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Ashan Benedict, Special Agent-in-Charge, New York Field Division and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Colorado Man Pleads Guilty to Marijuana and Money Laudering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Dashawn Abrams, 27, of Denver, CO, pleaded guilty to conspiracy to possess with intent to distribute and to distribute marijuana, and money laundering conspiracy before U.S. District Judge Elizabeth A. Wolford. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that between April 2015, and September 2015, the defendant conspired with Damarcus Hennings, Shaquata Hennings, Arthur Clark, Shahana Beaver and Janice Humphrey, to ship, receive, and distribute more than 50 packages containing marijuana from Denver, Colorado to Buffalo, New York. The defendants also conspired to send the cash proceeds from resulting marijuana sales back to their marijuana source of supply in Denver.
Damarcus Hennings, Shaquata Hennings, Shahana Beaver and Janice Humphrey have been convicted. Charges are pending against Arthur Clark. 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 the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division.Sentencing is scheduled for October 24, 2017 before Judge Wolford.
Canadian Man Sentenced on Drug Charges Following Extradition to United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Alvin Randhawa, 36, of Richmond, British Columbia, Canada, who was convicted of conspiracy to export from the United States into Canada five kilograms or more of cocaine, was sentenced to 87 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that between July 2010 and May 2011, Randhawa conspired with others to smuggle cocaine into Canada from the United States via several international bridges including ones in the Buffalo-Niagara region. Investigators believe that this organization trafficked approximately 2,000 kilograms of cocaine (approximately $80,000,000 in value) during the course of the conspiracy.
Randhawa was indicted along with Gursharan Singh and Harinder Dhaliwal, all three have been convicted. Also charged and convicted in the conspiracy were Ravinder Arora, Michael Bagri and Parminder Sidhu.
Today’s sentencing is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Kevin Kelly; Officers from the United States Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations; the Peel Regional Police Department, under the direction of Chief Jennifer Evans; the Canada Border Services Agency, under the direction of Rick Comerford, Regional Director General, Southern Ontario Region; and the Toronto Police, under the direction of Chief William Blair.
New York Return Preparer Sentenced to Prison for Filing Fraudulent Tax ReturnsRead the Press Release
A Nassau County, New York return preparer was sentenced to 24 months in prison for filing fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney James P. Kennedy Jr. for the Western District of New York.
According to documents and information presented to the court, from January 2010 through April 2015, David Menzies, 51, of Floral Park, filed fraudulent tax returns for hundreds of clients that claimed fake business income and expenses and false dependents to seek refunds to which his clients were not entitled. Menzies solicited, and sometimes purchased, the personal identifying information of children from their parents, and claimed them as dependents on other clients’ returns. Menzies charged his clients $250 for the use of the phony dependents and often used the same children’s information in multiple years. He recruited people to assist him in filing these fraudulent returns and directed them to escort his clients to check cashers, in order to cash their refund checks and collect Menzies’ fee, including the money for the false dependents.
In addition, Menzies concealed his identity as the preparer of the fraudulent returns by soliciting other people to apply to the Internal Revenue Service (IRS) for preparer IDs and then filing the returns under those preparer IDs. Menzies admitted that this scheme caused a tax loss of more than $250,000.
Menzies also acknowledged that he failed to timely file his 2009 through 2015 personal tax returns.
In addition to the term of prison imposed, U.S. District Judge Lawrence J. Vilardo ordered Menzies to serve one year of supervised release and to pay $280,930 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Kennedy thanked special agents of the IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Marie P. Grisanti and Trial Attorney Jason M. Scheff of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Floral Park, NY Man Sentenced on Tax Fraud ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced today that David Menzies, 51, of Floral Park, NY, who was convicted of tax fraud, was sentenced to 24 months in prison by U.S. District Judge Lawrence J. Vilardo. The defendant was also ordered to pay $280,930 in restitution to the Internal Revenue Service.
Assistant U.S. Attorney Marie P. Grisanti and Tax Division Attorney Jason M. Scheff, who handled the case, stated that between January 2010 and April 2015, Menzies filed fraudulent tax returns for hundreds of clients that claimed fake business income and expenses and false dependents in order to claim refunds to which his clients were not entitled. Menzies solicited, and sometimes purchased, the personal identifying information of minors from their parents, and claimed them as dependents on other clients’ returns. Menzies charged clients $250 for the use of the phony dependents and often used the same children’s information in multiple years. He recruited people to assist him in filing these fraudulent returns and directed them to escort his clients to check cashers, in order to cash their refund checks and collect Menzies’ fee, including the money he charged for creating false dependents.
In addition, Menzies concealed his identity as the preparer by soliciting other people to apply to the Internal Revenue Service (IRS) for preparer IDs and filing the fraudulent returns using the preparer identification numbers the IRS assigned to these individuals. Menzies admitted that he caused a tax loss of more than $250,000.
Menzies also acknowledged that he failed timely to file his 2009 through 2015 personal tax returns.
The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigations Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office
Arizona Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Elijah Chaffino, 37, of Scottsdale, Arizona, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 50 kilograms or more of marijuana, was sentenced to time served by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that between early 2009 and February 1, 2012, the defendant conspired with co-defendants Jordan Ali, Shane Graffman and others, to distribute marijuana.
In early 2009, after developing a friendship with Jordan Ali, Chaffino began shipping packages, which contained marijuana, from Arizona to addresses located in Buffalo, at Ali’s direction. Some of these packages were shipped to co-defendant Jason Nati’s address on Villa Avenue in Buffalo, while others were sent to individuals residing in the Niagara Falls area. Chaffino sent the last package in January 2012, which contained approximately 30 pounds of marijuana. The package was intercepted by law enforcement officers in Buffalo.
A total of six defendants were arrested and convicted in this case.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Kevin Kelly; Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett; United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski; Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; Buffalo Police Department, under the direction of Commissioner Daniel Derenda; Erie County Sheriff's Department, under the direction of Sheriff Tim Howard; Niagara Frontier Transit Authority, under the direction of Chief George Gast; Tempe, Arizona Police Department; Apache County, Arizona Sheriff's Department; and Oklahoma State Police.
Canadian Couple Pleads Guilty in Case Involving Synthetic Drugs from ChinaRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Karl and Sorina Morrison, both 60, of Kitchener, Ontario, who were convicted of attempt to export pentylone and furanyl fentanyl and misprision of a felony, respectively, were sentenced to time served by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that on August 29, 2016, American law enforcement officers intercepted a package that was mailed from China and addressed to Karl Morrison at a location in Niagara Falls, NY. The package contained four sample-sized packets of powder, two of which were determined to contain 4-methoxy butyryl fentanyl and para-fluoro butyryl fentanyl. If intended for human consumption, these synthetic substances are analogues of the Schedule II controlled substance fentanyl.
On October 15, 2016, Morrison and his wife Sorina entered the United States from Canada at the Lewiston Bridge Port of Entry. The couple retrieved four packages, bought shipping supplies, and repackaged the contents into new envelopes that they paid to ship back to Canada, including one to their home address. Sorina Morrison falsely declared that the contents of one of the repackaged parcels contained cinnamon butter. Other than packaging materials, that parcel contained more than 500 grams of powder containing pentylone. Another of the repackaged parcels contained approximately 6 1/2 grams of powder containing furanyl fentanyl. All three repackaged parcels were intercepted by American law enforcement officials before shipment to Canada.
The couple discarded the Chinese shipping labels of the original packages in various garbage cans around Niagara County to cover their tracks. They also obtained the name and address of an unsuspecting citizen in Niagara Falls to use as the return address on the packages they shipped to Canada, to further disguise the origin of the illegal contents. The Morrison’s were arrested as they drove back across the Lewiston Bridge toward Canada.
Several days later, law enforcement officials recovered yet another Chinese parcel that had been delivered for Karl Morrison, which contained nearly 500 grams of powder containing pentylone.
Pentylone is a synthetic cathinone that is commonly used as a designer drug for its stimulant effect and is comparable to MDMA. Furanyl fentanyl is a synthetic opioid that is far more potent than heroin.
The sentencings are the result of an investigation by Customs and Border protection, under the direction of Director of Field Operations Rose Brophy; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly; and the U.S. Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski.
Canadian Citizen Pleads Guilty to Cash SmugglingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy Jr. announced today Richard Clarke, 48, a Canadian citizen residing in Buffalo, pleaded guilty to bulk cash smuggling out of the United States before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of five years in prison and a fine of $250,000.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on November 16, 2016, Clarke transported more than $10,000 in United States currency from the U.S. into Canada. However, the defendant failed to report the transportation of the currency, which he was legally required to do.
Clarke was charged in this case along with co-defendants Joshua Castro and Barrett Johnson. Castro has been convicted of conspiracy to distribute controlled substances for conspiring with others to possess and distribute “Molly,” a Scheduled I controlled substance. Charges are pending against Johnson. 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 Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero, and the Border Enforcement Security Taskforce which includes the Ontario Provincial Police, Niagara Regional Police, Peel Regional Police and Toronto Police Services.
Sentencing is scheduled for October 19, 2017, at 1:30 p.m. before Judge Geraci.
Jury Convicts Buffalo Man of Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy Jr. announced today that a federal jury has convicted Donte Lee, 44, of Buffalo, N.Y., of being a felon in possession of a firearm and possession of marijuana. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Michael J. Adler and Paul C. Parisi, who handled the prosecution of the case, stated that on November 3, 2015, members of the U.S. Marshals Fugitive Task Force turned onto Sherman Street off Genesee Street to execute an arrest warrant when they observed a large group of people scattering in all directions. Officers observed Lee holding what appeared to be a black firearm in his hand while running in the area of Sherman and Johnson Streets. While on foot, the defendant tripped and fell. He got up, ran back to his vehicle, and headed down Sherman Street. Officers attempted to pull the defendant over, but he did not comply and a chase ensued. Lee attempted to drive through a vacant lot between Sherman Street and Fox Street where his vehicle crashed into a fence. Defendant got out of his vehicle and attempt to escape on foot. He was apprehended in the same area. Subsequently, officers recovered a 9mm pistol loaded with approximately 18 rounds of 9mm ammunition.
Since 1992, the defendant has been convicted of three separate felonies in state and local courts and is prohibited from legally possessing a gun.
The verdict is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict.
Sentencing for October 20, 2017, at 12:30 p.m. before U.S. District Judge Richard J. Arcara who presided over the trial of the case.Third Defendant, Mortgage Broker, Pleads Guilty in Mortgage Fraud ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy Jr. announced today that Gregory Gibbons, 51, of Pleasantville, N.Y., pleaded guilty to conspiracy to commit wire fraud affecting a financial institution, before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys Kathleen A. Lynch and Elizabeth Moellering, who are handling the case, stated that between June 2008 and February 2009, the defendant conspired with others, including Alagi Samba, a realtor, and Daniel Badu, to devise a scheme to obtain eight loans for unqualified borrowers for homes in the Bronx, NY. As part of the scheme, Gibbons acted as the mortgage broker and altered income and asset documents of the borrowers before they were sent to financial institutions.
For instance, Gibbons altered and created documents to make it appear that defendant Badu qualified for a mortgage on a property at 814 Faile Street in the Bronx. The defendant indicated that Badu was a research ophthalmologist and earned a specific income when in fact, Badu was not a research ophthalmologist nor did he receive the income stated on a loan application. Gibbons knew that these false loan documents were submitted to The Funding Source, a mortgage bank, in order to secure a loan insured by the Federal Housing Administration. Based on that false application and supporting documentation, the loan was approved. The Funding Source then sold the loan on the secondary market to M &T Bank, which wired funds from New York through the State of Ohio to purchase the loan.
The defendant and his co-conspirators arranged for additional fraudulent loans to be approved, including another loan for Badu, and caused wire communications to be transmitted in interstate commerce for those loans. These fraudulent transactions caused losses of approximately $4,800,007 affecting M&T Bank and other financial institutions including SunTrust Bank, JPMorgan Chase Bank, and Citibank.
Defendants Badu and Samba have also been convicted and are awaiting sentencing. Charges are pending against co-defendants Julio Rodriguez, Laurence Savedoff, and Tina Brown. 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 the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski, Boston Division, the Department of Housing and Urban Development, under the direction of Special Agent in Charge Brad Geary, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing for defendant Gibbons is scheduled for October 19, 2017, at 2:00 p.m. before Judge Geraci.
Rochester Man Convicted of Drug Trafficking and Gun Possession OffensesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Robert Swinton, 38, of Rochester, NY, of possession of cocaine with intent to distribute, maintaining a drug involved premises, possession of firearms in furtherance of drug trafficking crimes, and possession of firearms and ammunition as a previously convicted felon. The charges carry a maximum penalty of life in prison and a $2,000,000 fine.
Assistant U.S. Attorneys Katelyn Hartford and Charles E. Moynihan, who handled the prosecution of the case, stated that on October 16, 2012, members of the Greater Rochester Area Narcotics Enforcement Team and Violent Crime Task Force, pursuant to a search warrant, searched Swinton’s residence at 562 Maple Street in Rochester. As officers entered the residence, they saw co-defendant David Jones run from the kitchen into the living room. Officers arrested Swinton while he was standing in a doorway to a bedroom adjacent to the living room. A third defendant, Danielle Bowen, was also arrested in the living room.
Officers searched the location and found a rifle, which was loaded with 30 rounds of ammunition, and a revolver, which was loaded with six rounds of ammunition. Both firearms were found under the bedsheets and pillow in the defendant’s bedroom.
Buffalo Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that James Thayer, 32, of Buffalo, NY, who was convicted of possession with intent to distribute and distribution of 28 grams or more of crack cocaine, was sentenced to 87 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Patricia Astorga, who handled the case, stated that in May 2015, the defendant sold one ounce of crack cocaine to an individual for $1,400. On July 22, 2015, Thayer arranged to sell another ounce of crack cocaine to the same individual. While driving to meet the individual to complete the sale, the defendant was pulled over by special agents with the Drug Enforcement Administration. Agents searched Thayer and found an ounce of crack cocaine at which time he was arrested. During a subsequent search of the defendant’s Chadduck Avenue home, agents recovered approximately two ounces of crack cocaine base, a digital scale with white residue, drug packaging material and approximately $7,000 in U.S. currency.
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.
Buffalo Man Sentenced for Theft of Government MoneyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Dwayne Brice, 37, of Buffalo, NY, who was convicted of theft of government money, was sentenced to three years probation, 100 hours of community service at Veterans Affairs, and ordered to pay full restitution by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that the Department of Veterans Affairs appointed Brice as a fiduciary for his elderly father-in-law who received veteran’s benefits for his service in the United States Marine Corps. As fiduciary, it was Brice’s duty to manage these funds and pay for his father-in-law’s living expenses. Between August 2013 and September 2015, the defendant stole approximately $38,904 in veteran’s benefits, gambling much of the money at local casinos.
The sentencing is the result of an investigation by the United States Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, under the direction of Donna L. Neves.
Document Thief Pleads Guilty to Mail FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Daniel Witek, 54, of Buffalo NY, pleaded guilty to mail fraud before U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Michael DiGiacomo and Jonathan P. Cantil, who are handling the case, stated that in the spring of 2013, the defendant was a volunteer at the Buffalo History Museum. While volunteering at the museum, Witek devised a scheme to access and steal certain historical writings addressed to Anson Conger Goodyear that belonged to the museum. The defendant then offered to sell the stolen documents to one autograph dealer in New York City and one in New Jersey.
The plea is the result of an investigation by Special Agents of the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for November 8, 2017, at 11:00 a.m. before Judge Skretny.
Rochester Man Sentenced on Sex Trafficking ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Zaylik Harrison, 21, of Rochester, NY, who was convicted of sex trafficking of a minor, was sentenced to 135 months in prison and eight years supervised by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that between September 30, 2016, and October 6, 2016, Harrison recruited a teenaged girl to engage in commercial sex acts at the Gates Motel, on Buffalo Road in Gates, NY. The defendant then posted advertisements for the minor on Backpage.com. Harrison rented rooms in the motel where the victim was forced to engage in prostitution activities over several days with adult males. The defendant kept the proceeds of those activities.
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero; the Monroe County Sheriff’s Office, under the direction of Patrick O’Flynn; the Erie County Sheriff’s Office, under the direction of Timothy Howard; the Gates Police Department, under the direction of Chief James VanBrederode; the Monroe County District Attorney’s Office, under the direction of Sandra Doorley; and the Erie County District Attorney’s Office, under the direction of John Flynn.
Hamburg Man Who Fled Country Pleads Guilty to Wire FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Michael Wilson, 30, formerly of Hamburg, NY, pleaded guilty to wire fraud before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen Jr., who is handling the criminal case, and Richard D. Kaufman, Chief of the U.S. Attorney’s Office’s Asset Forfeiture and Financial Litigation Unit, stated that Wilson defrauded investors out of more than $10,000,000 between June 2008 and July 2010. The defendant created several fraudulent investment companies known collectively as “New Frontier,” including such names as “Phantom Holdings” and others, all purportedly located at 6553 Boston State Road in Hamburg, adjacent to his residence. Wilson thereafter induced individuals and companies to invest in financial instruments with complex sounding names, such as “leveraging agreements,” that promised high-yield earnings and returns.
Rather than investing clients’ money, the defendant spent it on a variety of personal items, including $2,500,000 for a down payment for Boston State Road properties, automobiles - including a Hummer, a Corvette, two Land Rovers, and a Mercedes ML 500 - artwork, and other items. In addition, in January 2009, Wilson paid $1,800 to hire an actor from a talent agency to portray a person using the name of his alias “George Possiodis,” which name and persona the defendant used during his scheme.
As part of his plea agreement, Wilson will forfeit $5,617,750.00 in proceeds from his fraudulent activities along with any interest he has in several bank accounts in Canada, Singapore, New Zealand and the Grenadines. The defendant will also forfeit his interest in two condominiums in downtown Toronto as well as two villas he had built in Vietnam. Early on in the investigation, the Government seized and forfeited Wilson’s luxury automobiles and expensive artwork. This year, four accounts, which contained approximately $750,000, at the Euro Pacific Bank were forfeited by Judge Skretny. Finally, Wilson will transfer ownership to the Government of several computers and smart phones he used in his fraudulent investment schemes.
Wilson, a dual citizen of Canada, traveled to the Toronto area after learning he was under investigation. After being arrested in Canada in July 2013, Wilson was released on conditions and challenged extradition to the United States in Canadian Courts. Before his final appearance in Canadian Court, in February 2016, Wilson chartered a private jet and flew to Vietnam with his wife, mother, and three dogs. Wilson was arrested in Vietnam in June 2016, and returned to the United States in December 2016.
“This defendant went to great lengths not only to perpetrate his fraud but to avoid responsibility for his crime. However, this case demonstrates how this Office, together with our law enforcement partners, remains committed to going the distance in order to achieve justice,” said Acting U.S. Attorney Kennedy. “Though he defrauded investor victims out of millions of dollars, at this point, no amount of money will enable defendant to avoid the finish line which he set for himself through his actions. That finish will be a sentencing proceeding in federal district court."
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent-in-Charge, the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge, New York Field Office, James D. Robnett, Toronto Police Service, Vietnam Ministry of Public Security, and other law enforcement partners, including LEGAT, Seoul, Korea, and the U.S. State Department.
Sentencing is scheduled for October 25, 2017 at 11:00 a.m. before Judge Skretny.