Northern District of New York

ALBANY, NEW YORK – Derbie Michel, age 33, formerly of Troy, New York, was sentenced today to 63 months in prison for illegally possessing ammunition as a convicted felon. 

United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

In previously pleading guilty, Michel, who has three prior felony convictions, admitted that he possessed five rounds of ammunition on October 15, 2022. According to court documents filed by the Government, Michel threw these rounds of ammunition from a car while fleeing from members of the Troy Police Department on October 15, 2022.  He also threw a privately made firearm, or “ghost gun,” from the car during the same pursuit. 

In imposing the sentence, Senior United States District Judge Frederick J. Scullin, Jr. found that Michel recklessly endangered others by instructing the driver of the car to engage in the car chase and later obstructed justice by making materially false statements about that conduct in connection with his sentencing.  Judge Scullin also ordered Michel to serve a 3-year term of supervised release upon Michel’s release from prison.  

The FBI’s Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of state and local law enforcement agencies, including the Troy Police Department, investigated the case.  The U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) assisted in the investigation.  Assistant U.S. Attorneys Joshua R. Rosenthal and Allen J. Vickey prosecuted the case.   

SYRACUSE, NEW YORK – Mergim Ademi, age 24, of Syracuse, pled guilty today to firearms offenses including Dealing in Firearms Without a License, Sale of Firearms and Ammunition to a Prohibited Person, and Possession of a Firearm in a School Zone.

The announcement was made by United States Attorney Carla B. Freedman and Bryan Miller, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). 

As part of his guilty plea, Ademi admitted that between approximately January 2023 and March 2024, he obtained firearms and firearm parts, advertised them for sale through Facebook and other means, then sold them to customers in exchange for cash, knowing that he did not hold a license as a firearms dealer. Ademi further admitted that in 7 transactions between December 19, 2023 and March 28, 2024, he sold a rifle, 9 handguns (including some that were privately made firearms, and some that had been reported stolen), a forced reset trigger, and multiple rounds of ammunition. Ademi acknowledged that he sold firearms and ammunition to an individual whom he had reasonable cause to believe was a felon. Ademi also admitted that he sold firearms to a customer at a location that was within approximately 260 feet of the grounds of a charter high school in Syracuse, New York.

At sentencing scheduled for November 27, 2024, before United States District Judge David N. Hurd, Ademi faces a combined maximum sentence of 25 years’ imprisonment and a criminal fine of up to $750,000. Additionally, Ademi may be required to serve a post-imprisonment term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines, and other factors.

ATF and the Syracuse Police Department investigated the case, with the assistance of the New York State Police Community Stabilization Unit. Assistant U.S. Attorney Matthew J. McCrobie is prosecuting the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

SYRACUSE, NEW YORK – Henry C. Albrecht, Jr., age 54, of Forestport, New York, was sentenced today to serve 180 months (15 years) in federal prison for presenting, receiving, and possessing child pornography.

United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.

During his previously entered guilty plea, Albrecht admitted that, from at least May 2021 through February 28, 2023, he received child pornography images and videos using social media messaging applications and from another adult who gave him a flash drive with child pornography files saved onto it. Albrecht admitted further that, in December 2022, he had a live video call with another adult and shared his screen with that person and presented multiple videos of children engaged in sexually explicit conduct. Albrecht also possessed more than 2,500 files of child pornography on various devices on the day of his arrest.

In addition to imposing a 15-year term of imprisonment, United States District Judge David N. Hurd also sentenced Albrecht to serve a 15-year term of supervised release upon his release from prison, at which time Albrecht will be required to register as a sex offender. Albrecht also was ordered to forfeit to the United States the electronic devices he used to commit the offenses.

HSI investigated this case. Assistant U.S. Attorney Michael D. Gadarian prosecuted the case as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

SYRACUSE, NEW YORK – Carlos Pena Uceta, age 34, of Utica, New York, was sentenced yesterday to serve 130 months in federal prison for possession of a controlled substance with the intent to distribute and possession of a firearm in furtherance of his drug trafficking crime.  United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.

As part of his plea on February 27, 2024, Pena Uceta admitted that, on June 4, 2023, he possessed a duffel bag in his vehicle containing five kilograms of cocaine, which he had just purchased in New York City and was transporting back to the Northern District of New York. Pena Uceta further admitted that, on the same date, he also possessed two kilograms of cocaine and a Polymer 80 9mm “ghost gun” in a suitcase at his apartment.

Chief United States District Judge Brenda Sannes also imposed a 4-year term of supervised release, which will start when Pena Uceta is released from prison.

The DEA investigated the case with assistance from New York State Police, Utica Police Department, and the Oneida County Sheriff’s Office.  Assistant U.S. Attorney Jessica N. Carbone prosecuted the case.

ALBANY, NEW YORK – Daniel Fuino, age 75, of Slingerlands, New York, pled guilty today to sexual exploitation of a child. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

Fuino admitted that between the summer of 2022 and April 2023, he babysat a young female child at his residence.  During this period, Fuino used the child to engage in sexually explicit conduct for the purpose of producing child pornography.  The victim was 6 years old when the conduct began.

If United States District Judge Mae D’Agostino accepts the parties’ agreed-upon disposition at sentencing on November 26, 2024, Fuino will receive a prison term of 180 months, at least 15 years of supervised release to follow that term of imprisonment, and a fine of up to $250,000.  He will also be ordered to pay restitution to the victim, forfeit the device used in the offense, and will be required to register as a sex offender.  A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines, and other factors.

The FBI’s Child Exploitation Task Force – comprised of FBI Special Agents, and state and local police investigators, including from the New York State Police and Colonie Police Department – investigated this case, which is being prosecuted by Assistant United States Attorney Benjamin S. Clark as part of Project Safe Childhood.

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

SYRACUSE, NEW YORK – Dustin Smith, age 30, of Utica, New York, pled guilty yesterday to a four-count indictment charging him with distributing, receiving, and possessing child pornography.  United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office, and New York State Police (NYSP) Superintendent Steven G. James made the announcement.

In pleading guilty, Smith admitted that he has a 2013 conviction for Sexual Abuse in the First Degree in Oneida County Court, and that in 2022, while under parole supervision for that conviction, he possessed a cell phone which he used to send, receive, and possess thousands of images and videos of child pornography.  Specifically, Smith admitted that he used the cell phone to exchange videos of child pornography with at least two identified minor children.

At sentencing scheduled for November 20, 2024, Smith faces a statutory minimum term of imprisonment of at least 15 years, and a maximum of 40 years on each of the receipt and distribution counts, and a term of at least 10 years, with a maximum of 20 years imprisonment on the possession count. Additionally, Smith will be required to serve a post-imprisonment term of supervised release of between 5 years and life, must register as a sex offender upon release, pay restitution to the victims of his offenses, and forfeit the device he used to commit the crimes. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines, and other factors.

HSI investigated this case with assistance from the New York State Police Computer Crimes Unit, New York State Parole, and Oneida County Sheriff’s Office.  Assistant United States Attorney Jessica N. Carbone is prosecuting this case as part of Project Safe Childhood.

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

SYRACUSE, NEW YORK – Lawrence Boone, age 28, of Syracuse pled guilty today to multiple counts of receipt, distribution, and possession of child pornography, announced United States Attorney Carla B. Freedman, Matthew Scarpino, Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office, and New York State Police (NYSP) Superintendent Steven G. James.

On several occasions from August through November 2023, Boone received images and videos of child pornography from other users on a smartphone messaging application. In exchange, Boone sent those users images and videos of child pornography that he possessed. Law enforcement arrested Boone on November 21, 2023, and seized multiple electronic devices used by Boone. Digital forensic analysis revealed that Boone possessed numerous images and videos of child pornography on each of the devices.

Sentencing is scheduled for November 25, 2024, before United States Chief District Judge Brenda K. Sannes.  Boone faces a mandatory minimum term of 5 years in prison on the receipt and distribution charges, a maximum term of 20 years in prison for each of the indicted charges, a fine of up to $250,000, and a term of supervised release of between 5 years and up to life.  Boone will also be required to register as a sex offender.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

The case is being investigated by HSI, the NYSP Internet Crimes Against Children Task Force, and the NYSP Troop D Computer Crime Unit. Assistant U.S. Attorney Ben Gillis prosecuted the case as a part of Project Safe Childhood.

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

ALBANY, NEW YORK – Kori E. Overton, age 50, of Schenectady, New York, was sentenced today to 72 months in prison for possessing a firearm in furtherance of a drug trafficking offense, possessing cocaine with intent to distribute it, and possessing a firearm as a convicted felon.

United States Attorney Carla B. Freedman; Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division; and New York State Police Superintendent Steven G. James made the announcement.

As part of his plea on November 20, 2023, Overton admitted that on September 15, 2020, he possessed a bag containing cocaine and a loaded Bryco Arms Model 59 9-millimeter handgun when he was pulled over by the New York State Police in Albany, for a violation of the New York State Vehicle and Traffic Law. The cocaine and firearm were found in a hidden after-market compartment built into his vehicle’s front passenger seat. Overton was prohibited from possessing the firearm and ammunition because of a 1991 felony conviction for robbery.

Senior United States District Judge Frederick J. Scullin, Jr. also imposed a 3-year term of supervised release, which will start when Overton is released from prison.

The DEA and New York State Police investigated the case. Assistant U.S. Attorney Douglas Collyer prosecuted the case.

ALBANY, NEW YORK – Christopher Montano, age 40, of Edinburg, New York, was sentenced today to 76 months in prison for unlawfully conspiring to deal, possess, transfer and make unregistered firearms, and for distributing methamphetamine.

The announcement was made by United States Attorney Carla B. Freedman; Bryan Miller, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).

As part of his prior guilty plea, Montano admitted that between August and October 2019, he, along with Michael Castelluccio, conspired to build and sell firearms from component parts ordered online. These firearms are commonly known as “ghost guns” because they do not have serial numbers, which makes them difficult for law enforcement to trace.

Montano admitted to conspiring to possess and transfer short-barreled rifles, which are rifles with barrels less than 16 inches long, and admitted to doing so without having filed an application with nor received approval from the Secretary of the Department of the Treasury, or paying the tax required by federal law.  He also admitted to selling more than 50 grams of methamphetamine.

United States District Judge Glenn T. Suddaby also imposed a 5-year term of supervised release, which will start after Montano is released from prison. Judge Suddaby previously sentenced Castelluccio to 30 months in prison.

This case was investigated by the ATF and HSI, with assistance from the Schenectady County and Montgomery County Sheriff’s Offices. Assistant U.S. Attorney Alexander Wentworth-Ping prosecuted this case.

SYRACUSE, NEW YORK – Austin Tennant, age 29, of Phoenix, New York, was sentenced today to 180 months (15 years) in federal prison for distributing, receiving, and possessing child pornography. Tennant was previously convicted following a four-day trial in February 2024.

The announcement was made by United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).

The evidence at trial established that, between September of 2022 and January of 2023, Tennant obtained from the Internet, and directly from child victims, hundreds of videos and thousands of images of child pornography. The evidence further established that Tennant later redistributed that same child pornography to others, including to other children in an effort to induce them to provide him with sexually explicit images and videos of themselves.

In addition to imposing a 15-year term of imprisonment, Chief United States District Judge Benda K. Sannes also sentenced Tennant to serve a 15-year term of supervised upon his release from prison at which time Tennant will also be required to register as a sex offender.

The case was investigated by HSI Syracuse with assistance from the Oswego County Sheriff’s Office. Assistant U.S. Attorney Adrian LaRochelle and Special Assistant U.S. Attorney Paul Tuck prosecuted the case as part of Project Safe Childhood.

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).  Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

ALBANY, NEW YORK – Nicholas Colon, age 37, of the Bronx, New York, was sentenced today to 46 months in prison for conspiring to possess cocaine with the intent to distribute it.

United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.

Colon previously admitted to driving in tandem with Kenny Gonzalez from Long Island to Queens, where they picked up approximately two kilograms of cocaine from their drug supplier.  Colon and Gonzalez then drove north to Ulster County, where they were stopped with the cocaine.  Colon admitted he and Gonzalez intended to distribute the cocaine in the Northern District of New York. 

United States District Judge Glenn T. Suddaby also imposed a 4-year-term of supervised release.  Judge Suddaby previously sentenced Gonzalez to 60 months in prison and a 4-year-term of supervised release.

The DEA investigated the case, which Assistant U.S. Attorney Jonathan S. Reiner prosecuted.

ALBANY, NEW YORK – Scott Solomon, age 38, of Albany, was sentenced today to 13 months in prison, to be followed by 3 years of supervised release, for defrauding a loan program meant for businesses struggling with the financial effects of the coronavirus pandemic.

United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

In previously pleading guilty to two counts of bank fraud, Solomon admitted that in 2020, he fraudulently applied for and obtained Paycheck Protection Program (PPP) loans for two restaurants in Saratoga Springs, New York, that he had once operated. Solomon submitted false and forged tax documents as part of each loan application, and lied about each restaurant’s number of employees and payroll.

At the time Solomon applied for the loans, neither restaurant was operational, and Solomon used the loaned funds, totaling $163,993, in ways he knew were prohibited by the PPP. Solomon also fraudulently obtained forgiveness of one of the loans, in the amount of $87,500, by falsely telling the lender that he used the loaned funds for payroll.

PPP loans, which were issued by financial institutions in 2020 and 2021 and guaranteed by the U.S. Small Business Administration, needed to be used by the borrowing business only on certain, permissible expenses, such as payroll costs, interest on mortgages, rent, and utilities. 

Senior United States District Judge Frederick J. Scullin, Jr. also ordered Solomon to pay $163,993 in restitution and to forfeit that same amount as proceeds of his crimes.

Solomon has two prior felony convictions for grand larceny, as well as a prior misdemeanor conviction for possession of a forged instrument.

The FBI investigated this case and Assistant U.S. Attorney Michael Barnett prosecuted this case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

SYRACUSE, NEW YORK – William Gladney, age 41, of Manlius, New York, was sentenced today to 120 months of imprisonment, to be followed by 35 years of supervised release, for possessing child pornography. United States Attorney Carla B. Freedman, Matthew Scarpino, Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office, and New York State Police (NYSP) Superintendent Steven G. James made the announcement.

As part of his previous guilty plea, Gladney admitted that he possessed thousands of videos and images of child pornography on several of his personal devices. Gladney has a previous conviction for possession of child pornography in Texas.

In addition to the imprisonment and supervised release terms, Gladney was ordered to pay a total of $44,000 in restitution to child victims depicted in the files he possessed, and will be required to continue to register as a sex offender upon his release from imprisonment.

HSI, the NYSP Internet Crimes Against Children Task Force, the NYSP Troop D Computer Crime Unit, and the Auburn Police Department investigated the case and Special Assistant U.S. Attorney Paul Tuck and Assistant U.S. Attorney Tamara Thomson prosecuted Gladney as part of Project Safe Childhood. 

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).  Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

ALBANY, NEW YORK – Brian Scott, age 44, of Albany, pled guilty today to conspiring to distribute and possess with intent to distribute cocaine and marijuana, and to distributing cocaine.

United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.

Scott admitted that between June 2020 and October 2023, he was involved in a drug trafficking organization that trafficked cocaine and marijuana in the Capital Region and the North Country. Scott admitted that he and a co-conspirator routinely sent drug couriers, whom they referred to as “horses,” between the Capital Region and the North Country to transport cocaine to the North Country and marijuana to the Capital Region. Scott also admitted that he had obtained at least seven kilograms of cocaine from another co-conspirator and sold over 400 grams of cocaine to another person between May and September 2023.

At sentencing on November 26, 2024, Scott faces at least 10 years and up to life in prison. The judge will also be required to impose a term of post-release supervision of at least 5 years and up to life. Scott has also agreed to forfeit $4,865 in seized drug money and to the entry of a forfeiture money judgment in the amount of $17,180. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. 

FBI, HSI, and the New York State Police investigated the case. Assistant U.S. Attorneys Cyrus P.W. Rieck and Joseph Hartunian are prosecuting the case.

ALBANY, NEW YORK – Timothy “Mitch” Duell, age 47, of Schenectady County, New York, pled guilty today to possessing child pornography. United States Attorney Carla B. Freedman and Special Agent in Charge Matthew Scarpino of Homeland Security Investigations (HSI), Buffalo, New York Field Office, made the announcement.

Duell admitted that he possessed sexually explicit images of a child under the age of 12, and engaged in chats where he discussed his interest in engaging in sex acts with that child. 

At sentencing scheduled for November 26, 2024, before United States District Judge Mae D’Agostino, Duell faces a statutory maximum imprisonment term of 20 years. Additionally, Duell will be required to serve a post-imprisonment term of supervised release of between 5 years and life, must register as a sex offender upon release, pay restitution to the victim of his offense, and forfeit the device he used to commit it. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines, and other factors.

HSI and the New York State Police investigated this case, and Assistant United States Attorney Michael D. Gadarian prosecuted this case as part of Project Safe Childhood.

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

SYRACUSE, NEW YORK – Kevin Harrington, age 50, of Oneonta, New York, pled guilty to a federal indictment charging him with two counts of mail fraud, United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI) announced.

At his change of plea, Harrington admitted that he was the former executive director at First Community Care of Bassett, LLC (an affiliate of Bassett Healthcare Network). During his employment, Harrington submitted fraudulent expense reports seeking reimbursement for the purchase of continuous positive airway pressure (CPAP) machines. As part of the scheme, Harrington provided invoices to his employer that falsely claimed he had paid thousands of dollars for medical equipment when no such equipment was ever purchased. Unaware that the invoices were fraudulent, First Community Care of Bassett issued and mailed checks to Harrington for reimbursement.  In total, Harrington admitted to stealing over $150,000 from his former employer.

At sentencing on November 21, 2024, Harrington faces a maximum term of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

FBI is investigating the case and Special Assistant U.S. Attorney Paul Tuck is prosecuting the case.

SYRACUSE, NEW YORK – Henry Estuardo Casteneda-Castro, age 33, who was living in Oneida County, pled guilty to an indictment charging him with illegally possessing a social security card he had purchased unlawfully. United States Attorney Carla B. Freedman and Thomas P. Brophy, Field Office Director, U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations, (ICE-ERO) Buffalo, NY made the announcement.

During the plea, Casteneda-Castro admitted that several years ago he had illegally entered the United States through Texas. After entering, he purchased an identification card and social security card of another individual to illegally obtain work. In May 2023, Casteneda-Castro was arrested by the Oneida County Sherif’s department on an unrelated matter and was found in possession of the fraudulent identification card and the social security card that he had unlawfully purchased.

At sentencing on November 21, 2024, Casteneda-Castro faces a maximum term of 10 years in prison, a fine of up to $250,000, and a term of up to 3 years supervised release. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines, and other factors.

The U.S. Department of Homeland Security, ICE-ERO investigated the case with the help of the Oneida County Sherriff’s Department and Special Assistant U.S. Attorney Paul Tuck prosecuted the case. 

ALBANY, NEW YORK – Evan Cutler, age 25, of Queensbury, New York, pled guilty today to conspiring to commit bank fraud and aggravated identity theft.  United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement. 

In a plea before United States District Judge Anne M. Nardacci, Cutler admitted that between February and October 2022, he organized a conspiracy to defraud SEFCU by, among other things, applying for loans using stolen identities of other people, and withdrawing the loaned money in cash.  Cutler admitted he and other members of the conspiracy applied for loans in other people’s names using fake New York driver licenses with their photographs but bearing the names and dates of birth of other people, and the proceeds were given to co-conspirator Allahson Allah. The conspirators also obtained customer account information from Caeshara Cannon, of Albany, a former Member Service Manager at SEFCU, and used that information to create counterfeit checks, which were presented for negotiation at SEFCU branches in the Northern District of New York. 

Cutler further admitted that the conspiracy netted $113,800 in fraudulent cash withdrawals. 

Cutler was previously charged by an indictment, along with Allahson Allah, Davon Parson, and Dnauticah Taylor-Sterman, all of Albany. Cutler is the last defendant in the conspiracy to plead guilty. Cannon has pled guilty as well.

At sentencing on November 19, 2024, Cutler faces at least 2 years and up to 32 years in prison, a fine of up to $1.25 million, and a supervised release term of up to 5 years.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

HSI investigated the case, with assistance from the Bethlehem Police Department.  Assistant United States Attorney Benjamin S. Clark is prosecuting this case.

ALBANY, NEW YORK – Conifer Park Inc. agreed to pay $300,000 to resolve allegations that it violated the Controlled Substances Act’s (CSA) recordkeeping requirements.

United States Attorney Carla B. Freedman and Special Agent in Charge Frank A. Tarentino III, U.S. Drug Enforcement Administration (DEA), New York Division made the announcement.

Conifer Park is a maintenance and detoxification facility that dispenses controlled substances, including methadone and buprenorphine, to treat individuals for substance use disorder.  The CSA requires entities that dispense controlled substances to maintain certain records and to conduct periodic inventories.  An inspection by the DEA in 2018 revealed that Conifer Park failed to maintain accurate records or perform required inventories, and was co-mingling controlled substances among different registrants.  Conifer Park subsequently agreed to comply with the CSA’s recordkeeping requirements in the future and to institute an electronic recordkeeping system if it was unable to do so.  DEA conducted similar inspections in 2021 and 2023 and determined that Conifer Park’s recordkeeping practices continued to violate the CSA.  Despite the continued non-compliance, Conifer Park did not implement an electronic recordkeeping system.

Contemporaneously with the Settlement Agreement resolving the Controlled Substances Act civil penalties, Conifer Park entered into a Memorandum of Agreement with the DEA, agreeing to implement an electronic recordkeeping system no later than November 1, 2024. 

This case was investigated by DEA Albany District Office’s Diversion Group.  Assistant U.S. Attorney Christopher Moran represented the United States in this matter.

ALBANY, NEW YORK – Kyle Biswell, age 38, of Prairie Grove, Arkansas, pled guilty today to traveling from Arkansas to Albany, with the intent to engage in illicit sexual contact with a child, and to transporting child pornography in interstate commerce.

United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

Biswell admitted that between January and April 2023, he communicated with an individual he believed was the mother of an 11-year-old girl through an internet-based social networking application and using his cellular phone.  Over the course of those communications, Biswell expressed his interest in engaging in sexual contact with the 11-year-old and ultimately purchased airfare to travel from his home in Arkansas to Albany, with the intent to engage in illicit sexual contact with the child on April 8, 2023.  Upon his arrival in the Capital Region on April 8, 2023, Biswell was arrested by FBI agents, and admitted that he had traveled from Arkansas to Albany for the purpose of engaging in sexual acts with a child he believed to be 11 years old.  Biswell further admitted that he brought child pornography with him on his cell phone.  The cell phone was subsequently searched by the FBI and found to contain numerous videos and images depicting child pornography, including several videos depicting the sexual abuse and rape of children under the age of 5.   

At sentencing on November 13, 2024, before United States District Judge Anne M. Nardacci, Biswell faces at least 5 years and up to 30 years in prison.  The judge will also be required to impose a term of post-release supervision of at least 5 years and up to a life term.  The court may also impose a fine of up to $250,000, restitution, and forfeiture of the cell phone Biswell used to commit his offenses.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.  Biswell will also have to register as a sex offender upon his release from prison. 

The FBI investigated the case. Assistant U.S. Attorney Benjamin S. Clark is prosecuting the case as part of Project Safe Childhood.  Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).  Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

ALBANY, NEW YORK – Omar Alaidrus, age 23, of Schenectady, New York, was charged today with distributing controlled substances.

United States Attorney Carla B. Freedman; Special Agent in Charge Charmeka Parker of the U.S. Department of Agriculture – Office of the Inspector General Northeast Region (USDA-OIG); Special Agent in Charge Matthew Scarpino of Homeland Security Investigations (HSI), Buffalo, New York Field Office; and Schenectady County Sheriff Dominic Dagostino made the announcement.

According to a criminal complaint, on March 29, 2023, a police officer, posing as a customer, went into the deli and grocery in Schenectady where Alaidrus was working behind the counter.  Alaidrus used the officer’s electronic benefits card to record a purchase of $201.15 using what are commonly known as “food stamps,” removed $100 from the cash register, kept that cash, and gave the officer fentanyl pills and Xanax. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.

The charge filed against Alaidrus carries a maximum term of 20 years in prison, a fine of up to $1 million, and a term of supervised release of at least 3 years and up to life.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

Alaidrus appeared today in Albany, before United States Magistrate Judge Daniel J. Stewart, and was ordered detained pending a detention hearing scheduled for July 17, 2024.

USDA-OIG, HSI, the Schenectady County Sheriff’s Office, the Schenectady Police Department, and the New York State Police are investigating the case. Assistant U.S. Attorney Jonathan S. Reiner is prosecuting the case.

ALBANY, NEW YORK – Andrew Deleon, age 27, of Schenectady, New York, was sentenced today to 72 months in prison for conspiring to distribute and possess with intent to distribute methamphetamine and fentanyl, and distributing methamphetamine.

The announcement was made by United States Attorney Carla B. Freedman; Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division; and Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS).

As part of his earlier guilty plea, Deleon admitted that he received multiple packages in the U.S. Mail that he knew contained controlled substances and intended to give the controlled substances to the leader of the drug trafficking organization. Deleon also distributed methamphetamine on behalf of the organization. As part of the conspiracy, Deleon distributed and/or possessed with the intent to distribute approximately 1,827.18 grams of pure methamphetamine and 10.68 grams of fentanyl.

United States District Judge Anne M. Nardacci also imposed a term of 3 years of supervised release, which will start after Deleon is released from prison.

Five other defendants have been charged as part of this conspiracy and are currently awaiting trial:

Defendant

Charges

Max./Min. Terms of Imprisonment

Felix Arencibia

Conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl

Distribution of methamphetamine

Minimum: 10 years Maximum: Life

Todd Austin

Conspiracy to distribute and possess with intent to distribute methamphetamine

Distribution of methamphetamine

Maximum: 20 years

Ahmad Burke

Conspiracy to distribute and possess with intent to distribute methamphetamine

Maximum: 20 years

Kevisha DuBoise

Conspiracy to distribute and possess with intent to distribute methamphetamine

Distribution of methamphetamine

Maximum: 20 years

Christian Mur-Santana

Conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl

Distribution of methamphetamine

Minimum:10 years Maximum: Life

 

The charges in the indictment are merely accusations. These defendants are presumed innocent unless and until proven guilty.

Three other defendants charged as part of this conspiracy have pled guilty and are currently pending sentencing:

Melissa Karwan, age 37, of Schenectady, pled guilty to conspiracy to distribute and possess with intent to distribute methamphetamine, and distribution of methamphetamine. Karwan is scheduled to be sentenced on August 30, 2024.

Flor Arencibia, age 39, of Albany, pled guilty to conspiracy to distribute and possess with intent to distribute methamphetamine, and distribution of methamphetamine. Arencibia is scheduled to be sentenced on September 5, 2024.

Stefanie Plass, age 37, of Schenectady, pled guilty to conspiracy to distribute and possess with intent to distribute methamphetamine, and distribution of methamphetamine. Plass is scheduled to be sentenced on September 30, 2024.

These cases are being investigated by DEA and USPIS.  Assistant U.S. Attorneys Ashlyn Miranda and Joshua Rosenthal are prosecuting the cases.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

ALBANY, NEW YORK – Robert Cutter, age 44, of Lake George, New York, pled guilty today to the attempted online enticement of a minor.

United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

Cutter admitted that on June 27, 2023, he exchanged sexually explicit text messages with someone he believed was an adult offering the sexual services of a 12-year-old girl in an attempt to entice the child into engaging in sexual acts with him.  Cutter also admitted that on that same date, he travelled to a pre-determined location in Warren County, New York, with the intent to engage in sexual acts with the 12-year-old girl.  Cutter was arrested by law enforcement shortly after arriving at the location.

At sentencing on November 11, 2024, before United States District Mae A. D’Agostino, Cutter faces at least 10 years and up to life in prison.  The judge will also be required to impose a term of post-release supervision of at least 5 years and up to life.  The court may also impose a fine of up to $250,000, restitution, and forfeiture of the smartphone Cutter used to commit his offense.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.  Cutter will also have to register as a sex offender upon his release from prison.

This case was investigated by the FBI Child Exploitation Task Force, comprised of FBI Special Agents, and state and local police investigators, including from the New York State Police and Warren County Sheriff’s Office.  Assistant U.S. Attorney Allen J. Vickey is prosecuting the case as part of Project Safe Childhood. 

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).  Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

SYRACUSE, NEW YORK – Altagracios De La Cruz-Calderon, 60, who was living in Oneida County, was sentenced to 57 months imprisonment today for illegally reentering the United States after previously being convicted of an aggravated felony. United States Attorney Carla B. Freedman and Thomas P. Brophy, Field Office Director, U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations, (ICE-ERO) Buffalo, NY made the announcement.

De La Cruz-Calderon had previously been deported or removed from the United States to the Dominican Republic five times. As part of his previous guilty plea, De La Cruz-Calderon admitted that he had been convicted of federal drug and gun charges in the 1990s and spent several years in federal prison before one of his deportations to the Dominican Republic. De La Cruz-Calderon was most recently found in the United States in New Hartford, New York. De La Cruz-Calderon will be subject to deportation again at the conclusion of his prison sentence.

The U.S. Department of Homeland Security, ICE-ERO investigated the case with the help of the United States Marshall Service and the New Hartford Police Department. Special Assistant U.S. Attorney Paul Tuck prosecuted the case. 

ALBANY, NEW YORK – Strauss Ventures LLC doing business as The Grand Health Care System and 12 affiliated skilled nursing facilities (collectively, the Grand), have agreed to resolve allegations that they violated the False Claims Act by knowingly billing federal health care programs for therapy services that were unreasonable, unnecessary, unskilled, or that simply did not occur as billed. Many of the settling facilities are located in upstate and central New York, including in Albany, Oneida, Madison, Columbia, and Herkimer counties.

“Today’s settlement protects patients and taxpayers by ensuring that medical treatment is dictated by patient need and not by financial motive,” said United States Attorney Carla B. Freedman.  “Skilled nursing facilities provide important services to a vulnerable population, and we will continue to hold them accountable when they provide patients with unnecessary services and falsify records.”

The settlement resolves allegations that from as early as January 1, 2014 to September 30, 2019, the Grand knowingly submitted false claims for rehabilitation therapy for residents at 12 facilities Strauss Ventures owned and operated. During this period, Medicare Part A (Medicare’s hospital insurance, which also pays for care in a skilled nursing facility in some circumstances) and TRICARE (the federal health care program for the Department of Defense) paid for such services at rates that varied based on the number of minutes of skilled rehabilitation therapy provided. The Grand allegedly submitted bills where the reimbursement claimed was based on providing more therapy than was reasonable and necessary, or in some cases where the therapists did not provide the amount of therapy reported. 

As part of the settlement, the Grand admitted that certain now-former Grand management level employees implemented quotas that each of the 12 facilities was expected to reach, including quotas relating to beneficiaries’ lengths of stay and to the percentage of beneficiaries billed at the highest reimbursement level. To meet these quotas, facilities often scheduled patients to receive therapy without consideration of what was reasonable and necessary based on the individual patients’ clinical condition. In addition, the Grand directed that no more than three patients be discharged from any facility per week and instructed that no Medicare Part A patients should be discharged from rehabilitation therapy unless it had been discussed with corporate officials. The Grand admitted that this resulted in some Medicare beneficiaries “staying on therapy longer than was reasonable and medically necessary.” 

The Grand acknowledged that there were various instances where supervisory officials, who did not personally evaluate or treat patients, set or adjusted the number of minutes of therapy that a Medicare patient would receive. The Grand also acknowledged that there were instances where supervisory personnel falsified the number of therapy minutes in the Grand’s electronic recordkeeping system or instructed subordinates to do so, well after the therapy was allegedly rendered.

“We expect nursing facilities to provide only reasonable and appropriate amounts of skilled rehabilitation therapy service to their residents and to bill government healthcare programs only for the services actually provided,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Department of Justice’s Civil Division. “The department is committed to protecting both vulnerable nursing home patients and taxpayers against fraudulent conduct by unscrupulous actors.” 

The settlement also resolves federal allegations that the Grand submitted false claims to Medicaid for services rendered at its Pawling, New York nursing home between January 1, 2016 and June 30, 2021. These claims were allegedly false because the reimbursement rate was inflated by data inaccurately reflecting the degree of care, including rehabilitation therapy services, needed by Medicaid patients there. 

The Grand has also entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires an independent review organization to annually assess the medical necessity and appropriateness of therapy services billed to Medicare.

“Violations of the False Claims Act are absolutely unacceptable and will not be tolerated by the FBI and its partners,” said Executive Assistant Director Michael Nordwall of the FBI’s Criminal, Cyber, Response and Services Branch. “We will continue our work of protecting the American taxpayer by relentlessly pursuing businesses that do not comply with the rule of law. If you bill federal health care programs in an unnecessary manner, there will be consequences.”

“The Grand admitted to providing unnecessary care to our most vulnerable, to include knowingly keeping patients in their facilities and away from their loved ones when they needed them most,” said Craig Tremaroli, Special Agent in Charge of the FBI’s Albay Field Office. “This settlement illustrates the FBI’s commitment to working with our partners to protect federally funded healthcare programs from abuse by companies looking to line their pockets with taxpayer dollars.”

“As a part of this settlement, the defendants acknowledged that they obtained funds from the Medicare program to which they were not entitled,” stated Special Agent in Charge Naomi Gruchacz of HHS-OIG. “Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”

“Protecting the integrity of the healthcare system for our military members and their families is a top priority of the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General,” stated Acting Special Agent in Charge Brian J. Solecki of DCIS Northeast Field Office. “DCIS will continue to work with its law enforcement partners and the Department of Justice to hold DoD contractors accountable for their fraudulent activity and ensure America’s service members are not subject to unnecessary risk.”

The settlement resolves a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by two former providers of rehabilitation therapy at the Grand. The Act allows private persons to file civil actions on behalf of the government and share in any recovery. Under the settlement, the whistleblowers will receive approximately $4,047,000 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 1:19-cv-1311.

The U.S. Attorney’s Office for the Northern District of New York; the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; HHS-OIG’s New York Region; the FBI, Albany Field Office; DCIS, Syracuse Resident Agency, and the New York State Attorney General’s Office investigated the matter. Assistant U.S. Attorney Adam J. Katz and Senior Trial Counsel Christelle Klovers represented the United States.

grand_-_final_federal_settlement_agreement_fully_executed_1.pdf

 

Strauss Ventures LLC, doing business as The Grand Health Care System, and 12 affiliated skilled nursing facilities (collectively, the Grand) have agreed to resolve allegations that they violated the False Claims Act by knowingly billing federal health care programs for therapy services that were unreasonable, unnecessary, unskilled or that simply did not occur as billed.

“We expect nursing facilities to provide only reasonable and appropriate amounts of skilled rehabilitation therapy service to their residents and to bill government healthcare programs only for the services actually provided,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department's Civil Division. “The department is committed to protecting both vulnerable nursing home patients and taxpayers against fraudulent conduct by unscrupulous actors.”

The settlement resolves allegations that, from as early as Jan. 1, 2014, to Sept. 30, 2019, the Grand knowingly submitted false claims for rehabilitation therapy for residents at 12 facilities Strauss Ventures owned and operated. During this period, Medicare Part A (Medicare’s hospital insurance, which also pays for care in a skilled nursing facility in some circumstances) and TRICARE (the federal health care program for the Department of Defense) paid for such services at rates that varied based on the number of minutes of skilled rehabilitation therapy provided. The Grand allegedly submitted bills where the reimbursement claimed was based on providing more therapy than was reasonable and necessary, or in some cases where the therapists did not provide the amount of therapy reported.

As part of the settlement, the Grand admitted that certain now-former Grand management level employees implemented quotas that each of the 12 facilities was expected to reach, including quotas relating to beneficiaries’ lengths of stay and to the percentage of beneficiaries billed at the highest reimbursement level. To meet these quotas, facilities often scheduled patients to receive therapy without consideration of what was reasonable and necessary based on the individual patients’ clinical condition. In addition, the Grand directed that no more than three patients be discharged from any facility per week and instructed that no Medicare Part A patients should be discharged from rehabilitation therapy unless it had been discussed with corporate officials. The Grand admitted that this resulted in some Medicare beneficiaries “staying on therapy longer than was reasonable and medically necessary.”

The Grand acknowledged that there were various instances where supervisory officials, who did not personally evaluate or treat patients, set or adjusted the number of minutes of therapy that a Medicare patient would receive. The Grand also acknowledged that there were instances where supervisory personnel falsified the number of therapy minutes in the Grand’s electronic recordkeeping system or instructed subordinates to do so, well after the therapy was allegedly rendered.

“Today’s settlement protects patients and taxpayers by ensuring that medical treatment is dictated by patient need and not by financial motive,” said U.S. Attorney Carla B. Freedman for the Northern District of New York. “Skilled nursing facilities provide important services to a vulnerable population, and we will continue to hold them accountable when they provide patients with unnecessary services and falsify records.”

The settlement also resolves federal allegations that the Grand submitted false claims to Medicaid for services rendered at its Pawling, New York, nursing home between Jan. 1, 2016, and June 30, 2021. These claims were allegedly false because the reimbursement rate was inflated by data inaccurately reflecting the degree of care, including rehabilitation therapy services, needed by Medicaid patients there.

The Grand has also entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires an independent review organization to annually assess the medical necessity and appropriateness of therapy services billed to Medicare.

“Violations of the False Claims Act are absolutely unacceptable and will not be tolerated by the FBI and its partners,” said Executive Assistant Director Michael Nordwall of the FBI’s Criminal, Cyber, Response and Services Branch. “We will continue our work of protecting the American taxpayer by relentlessly pursuing businesses that do not comply with the rule of law. If you bill federal health care programs in an unnecessary manner, there will be consequences.”

“As a part of this settlement, the defendants acknowledged that they obtained funds from the Medicare program to which they were not entitled,” said Special Agent in Charge Naomi Gruchacz of HHS-OIG. “Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”

“Protecting the integrity of the healthcare system for our military members and their families is a top priority of the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General,” said Acting Special Agent in Charge Brian J. Solecki of the DCIS Northeast Field Office. “DCIS will continue to work with its law enforcement partners and the Department of Justice to hold Department of Defense contractors accountable for their fraudulent activity and ensure America's service members are not subject to unnecessary risk.”

The settlement resolves a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Stacey Rosenberger and Kelley Retig, former providers of rehabilitation therapy at the Grand. The Act allows private persons to file civil actions on behalf of the government and share in any recovery. Under the settlement, the whistleblowers will receive approximately $4,047,000 of the settlement proceeds. The case is captioned United States ex rel. Rosenberger and Retig v. Strauss Ventures, LLC, et al., No. 1:19-cv-1311 (N.D.N.Y.).

The U.S. Attorney’s Office for the Northern District of New York; the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; HHS-OIG’s New York Region; the FBI Albany Field Office; DCIS, Syracuse Resident Agency and the New York State Attorney General’s Office investigated the matter.

Senior Trial Counsel Christelle Klovers of the Civil Division's Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Adam J. Katz for the Northern District of New York prosecuted the case.

Settlement

ALBANY, NEW YORK – Adam Gomez, age 27, of Brooklyn, New York, was sentenced today to 11 months in prison, to be followed by 3 years of supervised release, for possessing a handgun with an obliterated serial number.

United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.

As part of his prior guilty plea, Gomez admitted that on September 8, 2022, in a parking lot of a shopping mall in Albany County, he unlawfully possessed a Glock 17 handgun with an obliterated serial number. 

HSI investigated the case. Assistant U.S. Attorney Rick Belliss prosecuted the case.

ALBANY, NEW YORK – Ocyris Morgan, age 36, of Schenectady, New York, was sentenced today to 188 months in prison for possessing methamphetamine with the intent to sell it.

United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

Morgan admitted that he intended to sell the 21.4 grams of methamphetamine law enforcement seized from his house on June 1, 2023, and when he overheard agents saying they found between one-half and one ounce of methamphetamine, Morgan corrected them, “21.7, to be exact.”  Morgan also admitted to receiving $10,130 over the course of 12 instances in which he sold a total of 93 grams of methamphetamine and 50 grams of cocaine base to several customers.  He further admitted to possessing a firearm and bullet-proof vest.

Chief United States District Judge Brenda K. Sannes also imposed a 4-year term of supervised release and ordered Morgan to forfeit the $10,130 he made from the drug sales. 

The FBI’s Capital District Safe Streets Task Force—made up of FBI Special Agents as well as members of other federal, state, and local law enforcement agencies, including the Schenectady Police Department—investigated the case, which Assistant U.S. Attorney Jonathan S. Reiner prosecuted.

SYRACUSE, NEW YORK – Johannes Vulto, age 64, a former raw milk cheese manufacturer, and Vulto Creamery LLC, the company Vulto founded and owned, were each sentenced today in federal court in Syracuse after each previously pleading guilty to one misdemeanor count of causing the introduction of adulterated food into interstate commerce, relating to the sale and distribution of cheese that was linked to a 2016-2017 outbreak of listeriosis, the disease caused by the pathogen Listeria monocytogenes. 

Vulto was sentenced to 3 years of probation and ordered to pay a fine of $100,000, and to perform 240 hours of community service. Vulto Creamery LLC, which no longer operates, was sentenced to 1 year of probation. United States Attorney Carla B. Freedman and Special Agent in Charge Fernando McMillan, of the U.S. Food and Drug Administration’s Office of Criminal Investigations New York Field Office, announced the sentences.

In previously pleading guilty, Vulto admitted that he oversaw operations at the Vulto Creamery manufacturing facility in Walton, New York, including those relating to sanitation and environmental monitoring. Vulto and Vulto Creamery both admitted that between December 2014 and March 2017, they caused the shipment in interstate commerce of adulterated cheese. According to the plea agreement, environmental swabs taken at the Vulto Creamery facility between approximately July 2014 and February 2017 repeatedly tested positive for Listeria species. The Listeria family includes both harmless species and L. monocytogenes, which can cause listeriosis in humans.

Listeriosis is a severe, invasive illness that can be life-threatening in some cases. Persons who have the greatest risk of experiencing listeriosis due to consumption of foods contaminated with L. monocytogenes are pregnant women and their newborns, the elderly and persons with weakened immune systems.

In March 2017, after the FDA linked Vulto Creamery’s cheese to an outbreak of listeriosis, Vulto shut down the Vulto Creamery facility and issued a partial recall that was expanded to a full recall within weeks. According to the Centers for Disease Control and Prevention, the listeriosis outbreak resulted in eight hospitalizations and two deaths.

The case was investigated by the FDA’s Office of Criminal Investigations, and it was prosecuted by Senior Trial Attorney James T. Nelson of the Civil Division’s Consumer Protection Branch and Northern District of New York Assistant U.S. Attorney Michael F. Perry.

Further information about the case is posted under “Information for Victims in Large Cases” at the Consumer Protection Branch’s website: www.justice.gov/civil/consumer-protection-branch. For more information about the enforcement efforts of the Consumer Protection Branch visit www.justice.gov/civil/consumer-protection-branch.

ALBANY, NEW YORK – Aaron Griesche, age 41, of Niskayuna, New York, was sentenced today to 135 months of imprisonment, to be followed by 10 years of supervised release, for possessing child pornography. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

As part of his prior guilty plea, Griesche admitted that on July 11, 2021, he possessed child pornography on a USB flash memory stick found in his residence.  Griesche admitted that he had purchased the memory stick from an online retailer and transferred numerous videos of child pornography from the Internet to the device.

In addition to the imprisonment and supervised release terms, Griesche was ordered to pay a total of $18,000 in restitution to child victims depicted in the files he possessed.

The FBI and its Child Exploitation Task Force investigated this case.  The FBI’s Child Exploitation Task Force includes members of federal, state, and local law enforcement agencies. Assistant United States Attorney Dustin C. Segovia prosecuted the case as part of Project Safe Childhood.

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).  Project Safe Childhood marshals federal, state, and local resources to better locates, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

SYRACUSE, NEW YORK – Joseph Thompson, age 37, of Hogansburg, New York, pled guilty yesterday to possession with intent to distribute a controlled substance and possession of firearms in furtherance of a drug trafficking crime.

United States Attorney Carla B. Freedman and Bryan Miller, Special Agent in Charge of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), New York Field Division, made the announcement.

As part of his guilty plea, Thompson admitted that in June 2023, he arranged to meet another individual at a parking lot in Massena, NY, for the purpose of selling marijuana in exchange for firearms. Thompson admitted that he gave the individual approximately 18 pounds of marijuana in exchange for 7 semiautomatic pistols and ammunition magazines. During the transaction, Thompson said that he was a “middle guy,” and that he had a contact in Montreal who would pay him approximately $2,000 to $2,300 for each firearm. Thompson was arrested immediately after the transaction.

At sentencing, Thompson faces at least five years and up to life in federal prison, a total maximum fine of $500,000, and a term of post-imprisonment supervised release of at least 2 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

ATF investigated the case, with assistance from Quebec Provincial Police, St. Regis Tribal Police, New York State Police, U.S. Homeland Security Investigations, U.S. Customs and Border Protection, St. Lawrence County Sheriff’s Office, Massena Police Department, and U.S. Bureau of Industry and Security. Assistant U.S. Attorney Matthew J. McCrobie is prosecuting the case.

ALBANY, NEW YORK – Kamaro Campbell, age 42, of Albany, pled guilty today to possessing cocaine and fentanyl with the intent to distribute them and to possessing a firearm in furtherance of that drug trafficking crime.

United States Attorney Carla B. Freedman and Special Agent in Charge Frank A. Tarentino III of the U.S. Drug Enforcement Administration (DEA) New York Division made the announcement.

The charges to which Campbell pled guilty carry a combined mandatory prison sentence of between 10 years and life; a combined fine of up to $5,250,000; and a term of supervised release of at least 4 years and up to life.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

Agents found 105 grams of fentanyl, 95 grams of cocaine, and a fanny pack containing a loaded pistol and $15,000 all inside of Campbell’s bedroom closet when executing a search warrant.  A separate court-ordered search of Campbell’s storage unit led to the recovery of an additional 105 grams of cocaine.  Over the course of five law enforcement operations leading up to those searches, Campbell collectively sold 155 grams of cocaine and 74 grams of methamphetamine.

The DEA is investigating the case, which Assistant U.S. Attorney Jonathan S. Reiner is prosecuting.

ALBANY, NEW YORK – Elizabeth Lashley, a/k/a “Elizabeth Bonilla,” age 42, of Watervliet, New York, has been indicted on wire fraud charges for fraudulently obtaining pandemic-related unemployment insurance benefits in multiple states.

United States Attorney Carla B. Freedman; Jonathan Mellone, Special Agent in Charge, Northeast Region, United States Department of Labor, Office of Inspector General (USDOL-OIG); Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.

Lashley was arraigned in federal court today on an indictment alleging that from about May 2020 to July 2020, she fraudulently obtained unemployment insurance benefits worth more than $65,000 by submitting applications for benefits in her own name or an alias with the state workforce agencies of California, Arizona, and Massachusetts. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.

The wire fraud charges carry a maximum term of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

The case is being investigated by USDOL-OIG, USPIS, and HSI, with assistance from the Albany Police Department. Assistant U.S. Attorneys Matthew M. Paulbeck, Joseph S. Hartunian, and Joshua R. Rosenthal are prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

ALBANY, NEW YORK –Jason Miller, age 33, of Plattsburgh, New York, was sentenced today to serve 120 months in federal prison for possession of child pornography.

United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

As part of his guilty plea, Miller admitted that on March 17, 2021, he possessed images on his cell phone of minors engaged in sexually explicit conduct. The defendant’s conduct was uncovered during a joint law enforcement investigation into an online group sharing images of child pornography on Kik, a social media messaging application. The defendant admitted to receiving, distributing, and possessing child pornography on Kik.

United States District Judge Mae A. D’Agostino also imposed a term of 15 years of supervised release, which will start after Miller is released from prison. Miller will also be required to register as a sex offender.

Miller was previously convicted on May 16, 2016, in Clinton County Court of disseminating indecent material to minors in the first degree. Following multiple violations of probation, he was sentenced to 16 months to 4 years’ imprisonment.

The FBI investigated this case as part of Project Safe Childhood. Assistant U.S. Attorney Carling Dunham prosecuted the case.

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

SYRACUSE, NEW YORK – William Soto, age 32, of Springfield, Massachusetts, pled guilty today to a federal indictment charging him with twelve counts of theft of government property, United States Attorney Carla B. Freedman and Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS) announced.

During the plea, Soto admitted that, on twelve separate occasions, he used fraudulent checks to purchase more than $30,000 worth of United States Postal Service postage stamps over the course of two days in Oneida County, Oswego County, and Onondaga County in August 2023. In one instance, he bought $9,438.00 in stamps from a post office in Oswego County using a fake check.

Sentencing is scheduled for October 29, 2024. Soto faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

The USPIS is investigating the case with the help of the City of Fulton Police Department and Special Assistant U.S. Attorney Paul Tuck is prosecuting the case.

ALBANY, NEW YORK – Leon “Sam” Ostrander, age 50, of Johnstown, New York, pled guilty today to possessing with intent to distribute methamphetamine and cocaine.

United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.

Ostrander admitted that on January 17, 2024, he possessed over 400 grams of actual methamphetamine and 1.2 kilograms of cocaine seized by law enforcement during a search warrant executed at Ostrander’s home.  Ostrander further admitted that he possessed the substances with the intent to sell them.

Ostrander will be sentenced on October 25, 2024 by United States District Judge Anne M. Nardacci.  Ostrander faces at least 10 years and up to life in prison, a fine of up to $10 million, and a term of post-release supervision of between 5 years and life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

The DEA and the Johnstown Police Department investigated the case. Assistant U.S. Attorney Mikayla Espinosa is prosecuting the case.

ALBANY, NEW YORK –Todd Ward, a/k/a “Fats,” age 45, of Troy, New York, pled guilty earlier this week to conspiring to defraud the New York State Department of Labor (NYSDOL) by obtaining unemployment insurance benefits under the name of another person, including benefits funded by the federal government in response to the COVID-19 pandemic.

The announcement was made by United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Jonathan Mellone, Special Agent in Charge, Northeast Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG).

Ward admitted that he provided Carl J. DiVeglia III with the personal identifying information of another individual, which DiVeglia used to file a false claim via the NYSDOL website.  Ward further admitted that as a result of the fraudulent applications submitted by DiVeglia, the NYSDOL paid out $152,086 in unemployment insurance benefits.  As part of his plea agreement, Ward agreed to pay $152,086 in restitution to the State of New York.  DiVeglia previously pled guilty to fraudulently obtaining $1.6 million in unemployment insurance benefits as part of the scheme.  Ward’s three co-defendants, his brother Christopher Ward, Rocco Resciniti, and Jamaine Myers, have all pled guilty to related offenses.

Ward faces a maximum of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years when he is sentenced on November 14, 2024, by U.S. District Judge Glenn T. Suddaby. 

The FBI and USDOL-OIG are investigating this case, with assistance from the NYSDOL Office of Special Investigations, and Assistant U.S. Attorneys Joseph S. Hartunian and Joshua R. Rosenthal are prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

SYRACUSE, NEW YORK – Following a four-day jury trial in federal court, Steven Valder, age 34, of Syracuse, was convicted of all counts of an indictment charging him with sexual exploitation and child pornography offenses.  United States Attorney Carla B. Freedman, Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Superintendent Steven G. James made the announcement.

Valder was convicted of two counts of Sexual Exploitation of a Child for producing sexually explicit images of a 13-year-old boy in 2023, one count of Committing a Felony Offense Against a Minor as a Registered Sex Offender, and one count of Receipt of Child Pornography.  The jury also found that Valder committed the Sexual Exploitation offenses after a prior conviction for a sex offense against a minor. 

The evidence at trial showed that approximately one year after being released from prison for 2010 convictions in Cayuga County Court for Criminal Sexual Act in the First Degree (forcible anal sexual conduct with a 14-year-old child), and in Federal Court for transportation and possession of child pornography, Valder sexually abused a 13-year old boy multiple times in multiple locations around the City of Syracuse and photographed that abuse, and that he received child pornography over the Internet through Russian applications he had downloaded to his phone. 

Valder’s crimes were discovered after his United States Probation Officer found him in possession of an unauthorized smart phone on which the images of the child victim and internet child pornography were found.

At sentencing, scheduled for October 25, 2023, Valder faces a mandatory life sentence.

This case was investigated by the Federal Bureau of Investigation’s Mid-State Child Exploitation Task Force and the New York State Police.  Assistant U.S. Attorney Lisa M. Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, prosecuted the case.

Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov

ALBANY, NEW YORK – Aly Kaba, age 29, of New Rochelle, New York, has been indicted on conspiracy to commit mail fraud, mail fraud, and aggravated identity theft charges for fraudulently obtaining pandemic-related unemployment insurance benefits using stolen identities.

United States Attorney Carla B. Freedman; Jonathan Mellone, Special Agent in Charge, Northeast Region, United States Department of Labor, Office of Inspector General (USDOL-OIG); Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.

The indictment alleges that from about September 2020 through October 2020, Kaba fraudulently obtained unemployment insurance benefits in the names of other people.  The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.

The conspiracy and mail fraud charges each carry a maximum term of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years.  The aggravated identity theft charge carries a mandatory term of 2 years in prison, to be imposed consecutively to any other term of imprisonment. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

Kaba appeared today before United States Magistrate Judge Christian F. Hummel in Albany and was released with conditions.

This case is being investigated by USDOL-OIG, USPIS, and HSI, with assistance from U.S. Customs and Border Protection’s New York Field Office and the New York State Department of Labor’s Office of Special Investigations.  Assistant U.S. Attorneys Alexander P. Wentworth-Ping and Joshua R. Rosenthal are prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

SYRACUSE, NEW YORK – Carlos Manuel Valdez, 40, of the Dominican Republic, was sentenced yesterday to serve sixty months imprisonment for illegally reentering the United States after having been previously convicted of an aggravated felony.

United States Attorney Carla B. Freedman, Matthew Scarpino, Special Agent in Charge of United States Homeland Security Investigations (HSI), Buffalo Field Office, and Broome County Sheriff Frederick Akshar II made the announcement.

As part of his guilty plea, Valdez admitted that prior to being deported to his home country in 2019, he had been convicted of a number of Massachusetts state felony offenses, including assaulting a police officer and possessing narcotics with the intent to distribute them.

In February 2023, Valdez was discovered in Broome County, New York, in a vehicle that also contained over a kilogram of fentanyl. Valdez was charged for the narcotics by New York State authorities in Broome County and was sentenced to serve 6 years’ imprisonment in state court.

Valdez was ordered to serve 30 months of his federal sentence consecutively, meaning that 30 months of Valdez’s federal sentence will not begin until after he has fully satisfied his New York State sentence of incarceration.

The U.S. Department of Homeland Security, Immigration and Customs Enforcement- Customs and Border Protection Air and Marine Operations, and the Broome County Special Investigations Unit Task Force (which is comprised of personnel from the Broome County Sheriff’s Office, City of Binghamton Police Department, and Johnson City Police Department) investigated the case. Assistant U.S. Attorney Ben Gillis prosecuted the case.

SYRACUSE, NEW YORK –Charles Kennedy, age 26, of Chemung County, pled guilty yesterday in federal court to conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, and carrying a firearm in furtherance of a drug trafficking crime. 

The announcement was made by United States Attorney Carla B. Freedman, Bryan Miller, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), New York State Police Superintendent Steven G. James, and Broome County Sheriff Frederick J. Akshar II.

Kennedy was arrested on September 5, 2021, after a high-speed chase that began as he fled from New York State Police in Tioga County during a DWI investigation. Upon entering Broome County, Deputies from the Broome County Sheriff’s Office joined the pursuit.  Kennedy’s car crashed on Route 17 when he unsuccessfully attempted to jump out of the moving vehicle after tire deflation devices were deployed. Kennedy was pinned between the open passenger-side door and a concrete abutment but suffered only minor injuries. A search of the vehicle located a loaded M and P 9mm semiautomatic pistol, as well as methamphetamine, cocaine base, cocaine powder, fentanyl, marijuana, and a money counting machine. Subsequent investigation established, and Kennedy admitted during his guilty plea, that he conspired with others to distribute and possess with intent to distribute more than 50 grams of methamphetamine, cocaine base, cocaine powder, heroin, and fentanyl.

Sentencing is scheduled for November 13, 2024, at which time Kennedy faces a minimum of ten (10) years and a maximum term of life imprisonment and a fine of up to $10,000,000.00. for his convictions for possession with intent to distribute controlled substances, and conspiracy to distribute and possess with intent to distribute controlled substances. Kennedy also faces a minimum of five (5) years and a maximum term of life in prison, which must run consecutively to any other term of imprisonment imposed, and a fine of up to $250,000.00. for his conviction for carrying a firearm in furtherance of a drug trafficking crime. The Court will also impose a term of supervised release of at least 5 years to follow any term of imprisonment. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

The case is being investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the New York State Police, and the Broome County Sheriff’s Office. Assistant U.S. Attorneys Kristen Grabowski, Richard Southwick, and Geoffrey Brown are prosecuting the case.

ALBANY, NEW YORK – Tiffany Lynn Robillard, age 28, of Schenectady, New York, pled guilty today to possession of fentanyl and cocaine with intent to distribute.  United States Attorney Carla B. Freedman and Frank A. Tarentino, III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.

As part of her plea, Robillard admitted that, on March 25, 2024, she possessed over 3 kilograms of fentanyl and several hundred grams of cocaine, which she intended to distribute, and two firearms. 

Robillard faces a minimum term of 10 years and up to life in prison, a fine of up to $10 million, and a term of post-imprisonment supervised release of at least 5 years and up to life.  She will be sentenced on October 25, 2024, by United States District Judge Anne M. Nardacci.

A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

The DEA is investigating the case with assistance from the Colonie Police Department, Schenectady Police Department, and New York State Police.  Assistant U.S. Attorney Mikayla Espinosa is prosecuting the case.

ALBANY, NEW YORK – Aaron W. Scott, 28, of Poughkeepsie, New York, was sentenced today to 15 years in prison for attempting to entice and coerce an 11-year-old child into sexual activity and for possessing child pornography.

United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

As part of his previously entered guilty plea, Scott admitted that between on or April 1, 2022, and June 14, 2022, he sent sexually explicit text messages to someone he believed was an 11-year-old girl in an attempt to entice the child into engaging in sexual acts with him. Scott admitted that on June 14, 2022, he traveled to Warren County, New York, with the intent to engage in sexual acts with the 11-year-old girl. Scott was arrested by law enforcement shortly after arriving at the location and was found in possession of child pornography at the time of his arrest.

United States District Judge Anne M. Nardacci also imposed a 25-year term of post-imprisonment supervised release, ordered Scott to pay $3,000 in restitution to a victim whose images he possessed, and ordered him to forfeit the devices that he used to attempt to entice the child and that contained the child pornography. Scott will be required to register as a sex offender after his release from prison.

This case was investigated by the FBI Child Exploitation Task Force, comprised of FBI Special Agents, and state and local police investigators, including from the New York State Police, the Colonie Police Department, and the Cary (North Carolina) Police Department. Assistant U.S. Attorney Allen J. Vickey prosecuted this case as part of Project Safe Childhood.

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).  Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

UTICA, NEW YORK – Carol Evans, age 56, of West Winfield, New York, was sentenced yesterday to serve 37 months in federal prison for wire fraud, announced United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of her earlier guilty plea, Evans admitted that, while she was employed at Sullivan Contracting, Inc., she doctored invoices from vendors to reflect inflated charges. Unaware that the invoices were altered, Sullivan Contracting, Inc. then issued checks for the amount due in the doctored invoices and gave the checks to Evans to pay the invoices.  Evans thereafter deposited the checks into her own bank account. Altogether, Evans admitted to depositing approximately $1,800,000 in checks into her personal bank account from Sullivan Contracting, Inc. Though she used some of that money to pay vendors in furtherance of her scheme, she profited nearly $500,000.

United States District Judge David N. Hurd further sentenced Evans to a three-year term of supervised release to begin after Evans serves her term of imprisonment and imposed a restitution order and forfeiture judgment in the amount of $498,690.01.  

FBI investigated the case and Special Assistant U.S. Attorney Paul Tuck prosecuted the case.

PLATTSBURGH, NEW YORK – Randall J. Montour, age 45, a resident of Cornwall, Ontario, was sentenced today to two years of probation for violating the Stolen Valor Act of 2013 and for falsifying his military discharge certificate.  United States Attorney Carla B. Freedman and United States Marshal David L. McNulty made the announcement.

As part of his guilty plea on February 29, 2024, Montour admitted that he falsely altered his Certificate of Release or Discharge from Active Duty, Form DD-214, to reflect he received an honorable discharge from the United States Air Force and that he earned numerous decorations, medals, badges, citations or campaign ribbons, including the Purple Heart. Military records show, however, that Montour received a bad conduct discharge from the Air Force in 2001 and was only awarded the Air Force Training Ribbon during his time in service. He is not a Purple Heart recipient. Montour also admitted that he used his altered Form DD-214 to purchase Purple Heart Recipient license plates from the New York State Department of Motor Vehicles, which he then affixed to his vehicle.

Montour also appeared at veterans’ events wearing an Air Force uniform belonging to a senior non-commissioned officer, a rank the defendant did not achieve in the Air Force, and displaying a ribbon stack depicting many decorations, medals, badges, citations or campaign ribbons that he did not earn, including the Purple Heart.

United States Magistrate Judge Gary L. Favro also sentenced Montour to 200 hours of community service and a $10,000 fine.

The United States Marshals Service investigated the case with assistance from the United States Air Force Office of Special Investigations (OSI), Homeland Security Investigations (HSI), U.S. Customs and Border Protection (CBP) and the New York State Department of Motor Vehicles. Assistant U.S. Attorney Douglas G. Collyer prosecuted the case.

ALBANY, NEW YORK – James Tyrell Daniels, aka “Red” and “Ghost,” 40, of Fresno, California, Consanga Harris, aka “Sondy,” 63, of Troy, New York, and Earnest Flood, aka “Pop,” 66, of Richmond, Virginia, pled guilty yesterday to offenses related to their involvement in nationwide marijuana trafficking and money laundering conspiracies. 

United States Attorney Carla B. Freedman; Bryan Miller, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; Troy Police Chief Daniel DeWolf; and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.

In pleading guilty, Daniels, Harris, and Flood all admitted to being members of a marijuana and tetrahydrocannabinols (THC) trafficking organization that cultivated marijuana on a commercial scale in Fresno, California, and shipped thousands of kilograms of marijuana and THC from Fresno to locations throughout the United States, including the Capital Region of New York.

In pleading guilty, Daniels admitted to working with, among others, Dwight A. Singletary II, aka “Nutt” and “Mike Jones,” to cultivate marijuana in two grow houses behind his home and in a commercial warehouse in Fresno.  The marijuana grow in the warehouse was financed in substantial part by Singletary, and on June 15, 2022, law enforcement executed a search warrant at the warehouse and seized, among other things, 424 marijuana plants at various stages of maturity in five commercial-grow rooms.  Video footage from a DVR for a surveillance system seized from the warehouse depicted, among other things, Daniels tending to the marijuana plants and bringing supplies into the warehouse with Singletary.  In addition to growing marijuana, Daniels purchased and resold large quantities of marijuana and sold THC “edibles.” 

Daniels and other members of the organization shipped the marijuana and THC edibles through UPS and FedEx from a shipping store, Fast Pack & Ship, in Fresno.  Sammy Olague owned and operated Fast Pack & Ship from 2016 through June 2018, when he sold the business to Nehemiah Fane, aka “Neil.”  In April 2020, Fane transferred ownership of Fast Pack & Ship to McKenzie Merrialice Coles, aka “Kenzie,” who operated Fast Pack & Ship through M.M.M.C. Management, Inc.  Daniels managed Fast Pack & Ship when it was owned by Fane and ran the day-to-day operations of the business with Fane.

The packages of marijuana, which reflected the names of fake shippers, were shipped from Fast Pack & Ship to locations throughout the United States, including the Capital Region, New York City, and other parts of New York, New Jersey, Connecticut, Massachusetts, Maryland, Ohio, Delaware, Nevada, Virginia, Alabama, Georgia, Louisiana, Florida, North Carolina, South Carolina, Tennessee, Missouri, Oklahoma, and Texas.  The marijuana in the packages was contained in dog food containers and luggage, and the packages were often sealed with eBay packing tape in an effort to avoid detection by law enforcement.  Between April 2017 and June 2022, approximately 1,292 packages containing approximately 7,068 kilograms, or 15,582 pounds, of marijuana were shipped from Fast Pack & Ship to the Capital Region alone. 

Daniels admitted to working with Fane and others to launder marijuana proceeds for Singletary and other members of the organization, including through bank accounts maintained by Fane in the name of Fast Pack & Ship and Fast Pack & Ship, LLC, which Fane organized in 2019.    Daniels also laundered marijuana proceeds through bank accounts he owned and controlled, including business accounts held by his company BRDL, LLC, and by receiving money transfers in Fresno purchased with cash marijuana proceeds. 

Harris admitted to receiving packages of marijuana shipped by Singletary and Coles from Fast Pack & Ship at her home in Troy.  Harris was notified of the packages of marijuana by Coles and Isiah Ti-Quan Clements, aka “Zay,” and was paid between $300 and $400 in cash per package of marijuana received.  Between March 2018 and May 2022, Harris received 90 packages containing approximately 700 kilograms, or 1,543 pounds, of marijuana. 

Flood admitted to receiving packages of marijuana shipped by Singletary and Coles from Fast Pack & Ship at his home in Richmond and to selling the marijuana.  Flood coordinated the shipments of marijuana with Onisha Smith, who in turn coordinated with Singletary.  After selling the marijuana, Flood deposited cash marijuana proceeds into his bank account and transferred the funds to Smith, who in turn transferred payment for the marijuana to Singletary through Zelle and Cash App. 

Daniels, who has a prior serious violent felony conviction, faces at least 15 years and up to life in prison, a term of post-release supervision of at least ten years and up to life, and a fine of up to $20 million for conspiring to manufacture, distribute, and possess with intent to distribute controlled substances.  He also faces up to 20 years in prison and a fine of up to $500,000 for conspiring to commit money laundering. 

If United States District Judge Glenn T. Suddaby accepts the parties’ agreed-upon disposition at sentencing, Daniels will be sentenced to 180 months in prison to be followed by ten years of supervised release. 

Harris faces up to 20 years in prison, a term of supervised release of between three years and life, and a fine of up to $1 million for conspiring to manufacture, distribute, and possess with intent to distribute controlled substances. 

Flood faces up to up to 20 years in prison and a fine of up to $500,000 for conspiring to commit money laundering and up to five years in prison and a fine of up to $250,000 for conspiring to manufacture, distribute, and possess with intent to distribute controlled substances.  He also faces a term of supervised release of between two years and life. 

A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

Daniels, Harris, and Flood were charged in an indictment with Singletary, Coles, Fane, Olague, Smith, and 16 other people charging marijuana distribution and money laundering conspiracies, firearms offenses, and other crimes.  Singletary, Coles, and Fane have pled not guilty and are presumed innocent unless and until proven guilty.  The charges in the indictment are merely accusations. 

In addition to Daniels, Harris, and Flood, Olague, Smith, and seven other defendants, Rosemary Coles, Latrice Mumphrey, Sammy Olague, Victor Turner, Kristle Walker, Ruby Ledesma, and Jazell Shuler, previously pled guilty and are pending sentencing. 

The ATF, DEA, Troy Police Department and HSI are investigating the case. Assistant U.S. Attorneys Cyrus P.W. Rieck and Dustin C. Segovia are prosecuting the case.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

ALBANY, NEW YORK – Troy Kelly, age 19, of Crown Point, New York, was arrested yesterday and charged via criminal complaint with making threats against the President of the United States.

United States Attorney Carla B. Freedman, Jeffrey Burr, Special Agent in Charge of the Buffalo Field Office of United States Secret Service and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations and Steven James, Superintendent of the New York State Police made the announcement.

Kelly was charged with one count of making threats against the President of the United States. The charge filed against Kelly carries a maximum sentence of 5 years imprisonment, a fine of up to $250,000, and a term of supervised release following any term of incarceration of up to three years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

Kelly appeared yesterday in Albany, New York, before United States Magistrate Judge Christian F. Hummel, and was detained pending a full detention hearing scheduled for Friday, June 28.

The criminal complaint alleges that on May 17, 2024, using an account on the social media platform “X,” Kelly responded to a post of President Joseph R. Biden Jr. with a post which included the sentence: “Gonna put a bullet in your head if I ever catch you.” A Secret Service investigation revealed Kelly was the likely user of the account that posted the threat and proceeded to interview him at his home. During the interview, Kelly confirmed he posted the threat and told the Secret Service agent on scene that he had done so because it was “true.” As alleged in the complaint, when asked if he still wanted to kill President Biden, Kelly told them “If I could, I would.”

The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.

The United States Secret Service, Homeland Security Investigations, and the New York State Police are investigating the case. Assistant U.S. Attorney Joseph S. Hartunian is prosecuting the case.

ALBANY, NEW YORK – Felix Arencibia, age 38, of Amsterdam, New York; Todd Austin, age 64, of Gloversville, New York; Ahmad Burke, age 66, of Albany; Kevisha DuBoise, age 27, of Schenectady, New York; and Christian Mur-Santana, age 28, of Las Vegas, Nevada have been indicted for participating in a drug distribution conspiracy.

United States Attorney Carla B. Freedman; Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division; and Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS), made the announcement.

As alleged in the indictment and other court papers, between November 2022 and July 2023, the defendants participated in a drug conspiracy led by Arencibia, who received packages of methamphetamine and fentanyl from Mur-Santana through the mail and then distributed those drugs in the Capital Region.  The specific charges, and the maximum and mandatory terms of imprisonment, are set forth below:

Defendant

Charges

Max./Min.

Felix Arencibia

Conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl

Distribution of methamphetamine

Minimum:10 years Maximum: Life

Todd Austin

Conspiracy to distribute and possess with intent to distribute methamphetamine

Distribution of methamphetamine

Maximum: 20 years

Ahmad Burke

Conspiracy to distribute and possess with intent to distribute methamphetamine

Maximum: 20 years

Kevisha DuBoise

Conspiracy to distribute and possess with intent to distribute methamphetamine

Distribution of methamphetamine

Maximum: 20 years

Christian Mur-Santana

Conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl

Distribution of methamphetamine

Minimum:10 years Maximum: Life

 

The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.

Each of the defendants previously made initial appearances before United States Magistrate Judge Daniel J. Stewart.  All were released with conditions pending further proceedings, except for Todd Austin, who was ordered detained following a detention hearing.  

Four other defendants charged as part of this conspiracy have pled guilty to conspiracy to distribute and possess with intent to distribute methamphetamine, and to the distribution of methamphetamine, and are currently scheduled to be sentenced as follows:

• Andrew Deleon, age 27, of Schenectady, is scheduled to be sentenced on July 12, 2024.

• Melissa Karwan, age 37, of Schenectady, is scheduled to be sentenced on July 16, 2024.

• Flor Arencibia, age 39, of Albany, is scheduled to be sentenced on September 5, 2024.

• Stefanie Plass, age 37, of Schenectady, is scheduled to be sentenced on July 17, 2024.

The DEA and USPIS are investigating these cases.  Assistant U.S. Attorneys Ashlyn Miranda and Joshua Rosenthal are prosecuting the cases.

These cases are part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

SYRACUSE, NEW YORK – United States Attorney Carla B. Freedman joined national, state, local, and Tribal leaders in recognizing World Elder Abuse Awareness Day (WEAAD) on June 15, 2024. Since 2006, WEAAD has been commemorated to promote awareness and increases understanding of the many forms of elder abuse as well as the resources available to those at risk.

Highlighting the partnership between law enforcement and the public, U.S. Attorney Freedman recorded a message highlighting the need for continued attention to address elder abuse and the work her office has done to address financial fraud that victimizes older Americans, along with enforcement efforts to address grossly substandard care in nursing homes. 

United States Attorney Carla Freedman stated: “Elder abuse is rampant and, unfortunately, it comes in many forms. My office will continue to work with our law enforcement partners to promote awareness of elder abuse and to bring criminal and civil actions against those who prey on older Americans.”

Elder abuse is an act that knowingly, intentionally, or negligently causes or creates a serious risk of harm to an older person by a family member, caregiver, or other person in a trust relationship. Such harm may be financial, physical, sexual, or psychological. The Justice Department maintains a variety of programs and initiatives to combat elder abuse.

The Transnational Elder Fraud Task Force marshals federal and state agencies working collaboratively to investigate and prosecute foreign-based schemes that target older Americans. In addition to aggressively investigating the individuals, organizations, and networks responsible for these crimes, this initiative provides the public with information to guard against both traditional scams, like tech support fraud, as well as trending schemes, such as romance scams.

Using one scam to perpetrate or conceal another, some fraudsters rely on money mules to move the proceeds of their illegal activity. Preying on the good will or financial vulnerability of their targets, scammers recruit people, many times older victims, to participate in schemes to move money in ways that avoid notice. The Money Mule Initiative identifies and addresses money mule activity to disrupt these fraud schemes, and helps people to recognize and avoid participation in perpetuating fraud.

To help older individuals and their families identify and avoid fraudulent activity, the Justice Department provides Senior Scam Alerts with information about the tactics used in specific schemes. For example, in Social Security Administration impostor schemes, scammers impersonate government administrators and falsely report suspicious activity to request that the victims provide their Social Security number for confirmation. In tech support scams, fraudsters contact victims, sometimes through internet pop-up messages, to warn about non-existent computer problems, ask that the victim give them remote access to their computer, and identify a non-existent problem, then demand large sums of money for unnecessary services. In lottery scams, telemarketers falsely notify victims that they have won a sweepstakes and tell them they must first pay fees for shipping, insurance, customs duties, or taxes before they can claim their prizes.

To learn more about the department’s elder justice efforts please visit the Elder Justice Initiative page.

The U.S. Attorney’s Office for the Northern District of New York continues to work with federal, state, local, and Tribal law enforcement partners to investigate and prosecute elder abuse crimes. 

Representative past examples include the following:  

• In May 2024, the Secret Service seized a web domain, used in a “Pig Butchering” Scheme, which used dating applications and social media websites to direct victims to fraudulent cryptocurrency platforms. 
• In May 2024, the United States and the State of New York announced the recovery of $6.3 million in restitution, which will go to the victims of an investment advisor and attorney who defrauded their clients. 
• In October 2023, JoAnne Natalie was sentenced to 3 months in jail for misappropriating the funds of a veteran as his appointed fiduciary.
• In February 2023, four individuals paid $7,168,000, and were excluded from federal healthcare programs, for providing worthless services to nursing home residents
• In January 2023, Kirtankumar Dalwadi was sentenced to 15 months in prison for his role in a law enforcement impersonation scheme. 

To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov. 

ALBANY, NEW YORK – Ahmed AlSaadi, age 19, of Troy, New York, was sentenced today to 24 months in prison for possessing a machinegun.

The announcement was made by United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Bryan Miller, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Troy Police Chief Daniel DeWolf.

During his earlier guilty plea, AlSaadi admitted that on August 2, 2023, he possessed three machinegun conversion devices and a Glock handgun that had been modified with a machinegun conversion device that allowed the Glock to shoot and function as a machinegun. AlSaadi also admitted to advertising machinegun conversion devices for sale from March to July 2023.

United States District Judge Mae A. D’Agostino also sentenced AlSaadi to serve a 3-year term of supervised release to begin after imprisonment.

ATF, FBI and the Troy Police Department investigated the case. Assistant United States Attorney Alexander Wentworth-Ping prosecuted the case.