Northern District of New York

SYRACUSE, NEW YORK – Rian Patterson, age 23, and Devin Diggs, age 20, who were soldiers stationed at Fort Drum, New York, pled guilty yesterday to felony charges in connection with the burglaries of federally licensed firearms dealers in September 2019, announced United States Attorney Grant C. Jaquith and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).

In pleading guilty, Patterson and Diggs admitted to stealing firearms during the burglary of a licensed federal firearms dealer in Gouvernuer, New York, on September 14, 2019, and to the burglary of a second licensed federal firearms dealer in De Kalb Junction, New York, on September 29, 2019. As part of their guilty pleas, both men also admitted to knowingly possessing stolen firearms taken during those burglaries in their barracks at Fort Drum, in Le Ray, N.Y. Patterson also admitted that he knowingly possessed a firearm with an obliterated serial number.

Patterson and Diggs each face up to 10 years in prison, a maximum fine of up to $250,000, and up to 3 years of supervised release, when they are sentenced by Senior United States District Judge Thomas J. McAvoy on June 16, 2020.  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. Patterson and Diggs have already been discharged from the United States Army.

This case was investigated by the ATF, the U.S Army Criminal Investigation Division (ARMY CID), the St. Lawrence County Sheriff’s Department, and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Thomas Sutcliffe.

This case is brought pursuant to Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

SYRACUSE, NEW YORK – John Angwin, age 30, of Holland Patent, New York, was sentenced today to 132 months in prison for distributing and possessing child pornography.  The announcement was made by United States Attorney Grant C. Jaquith; Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and New York State Police Superintendent Keith Corlett.

As part of his guilty plea, Angwin admitted that he used the Kik Messenger application to distribute child pornography to other Kik users.  Agwin also used his iPhone to possess images and videos of child pornography he received via the internet.  On Angwin’s iPhones he possessed over 1,500 images and over 150 video files depicting minors engaged in sexually explicit conduct. The images and videos included depictions of the rape and sodomy of prepubescent children and toddlers.

Chief United States District Judge Glenn T. Suddaby also imposed a 25-year term of supervised release, which will start after Angwin is released from prison, and ordered payment of $12,000 in restitution. As a result of his conviction, Angwin will be required to register as a sex offender upon his release from prison.

Angwin’s case was investigated by HSI Syracuse with assistance from the State Police Computer Crimes Unit, and the Oneida County Sheriff’s Office.  The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.

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 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 – Edwin Rodriguez, a/k/a “Chaka,” age 31, of Amsterdam, New York, pled guilty today to possessing and intending to distribute more than 100 grams of heroin mixed with fentanyl. The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division; and City of Amsterdam Police Chief Gregory J. Culick. On May 15, 2019, Rodriguez was the subject of a traffic stop in Amsterdam. In pleading guilty, he admitted that he was stopped while driving to meet a drug customer to whom he planned to sell 100 grams of heroin, and that he was driving with a suspended license. As Amsterdam Police Officers were arresting Rodriguez for driving with a suspended license, a vacuum-sealed bag of powder fell out of his pant leg. The bag contained 100.3 grams of heroin mixed with fentanyl. Also on May 15, law enforcement executed a search warrant on Rodriguez’s Amsterdam residence. In the apartment’s kitchen, they found an empty bleach bottle, with a hidden compartment containing 1.78 grams of heroin mixed with fentanyl, which Rodriguez intended to sell. Rodriguez faces at least 5 years and up to 40 years in prison, and a term of post-imprisonment supervised release of at least 4 years and up to life, when United States District Judge Mae A. D’Agostino sentences him on June 15, 2020. 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. This case was investigated by the DEA and the Amsterdam Police Department, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.

ALBANY, NEW YORK – Khalid M. Chadder, age 50, of Ticonderoga, New York, pled guilty yesterday to conspiring to defraud Medicaid.

The announcement was made by:

• United States Attorney Grant C. Jaquith;
• New York State Police Superintendent Keith M. Corlett;
• James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and
• New York State Inspector General Letizia Tagliafierro.

 

Chadder operated Chadder Imports, Inc., d/b/a Adirondack Taxi and Limo, Inc. (“Adirondack Taxi”), a Medicaid-funded transportation company based in Ticonderoga. 

Chadder admitted that from 2015 to 2018, he committed several frauds against Medicaid and the New York State Department of Health, including: billing Medicaid and receiving payment for trips where beneficiaries drove themselves to their own medical appointments, and falsifying the identities of the drivers for those trips; and billing Medicaid and receiving payment for roundtrips to and from medical appointments when the beneficiaries took only one-way trips with Adirondack Taxi.

Chadder faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years, when he is sentenced on June 9, 2020 by Senior United States District Judge Thomas J. McAvoy.  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.  Chadder has also agreed to pay $200,000 in restitution.

Chadder is the last of 6 defendants to plead guilty to federal charges in connection with a multi-agency investigation into Medicaid fraud committed by the owners and operators of medical transportation companies based in Essex County.  The following defendants have previously pled guilty:

Name

Residence

Federal charge(s)

Sentence

Arshad Nazir

Ticonderoga

Conspiracy to commit health care fraud; conspiracy to pay bribes and kickbacks to Medicaid beneficiaries

1 year and 1 day in prison, and ordered to pay $450,000 in restitution

Waqas Nauman

Queensbury, New York

Health care fraud

Time served (25 days in jail), and ordered to pay $55,000 in restitution

Khurram Gondal, aka Khurram Choudhary

Ticonderoga

Health care fraud

 

Time served (25 days in jail), and ordered to pay $60,000 in restitution

Qaiser Gondal

Watervliet, New York

Conspiracy to commit health care fraud

Sentencing scheduled for March 11, 2020

Anthony Armstrong

Ticonderoga

Conspiracy to commit health care fraud; conspiracy to pay bribes and kickbacks to Medicaid beneficiaries

Sentencing scheduled for March 11, 2020

These cases were investigated by the FBI, the New York State Police’s Special Investigations Unit, and the Office of the New York State Inspector General, and were prosecuted by Assistant U.S. Attorney Michael Barnett.

Several additional agencies assisted in this investigation, including the Essex County District Attorney’s Office; New York State Police-Troop B; the Office of the New York State Comptroller, Division of Investigations; New York State Attorney General’s Office, Medicaid Fraud Control Unit (MFCU); Essex County Sheriff’s Office; Homeland Security Investigations (HSI); the Office of Inspector General for the U.S. Department of Health and Human Services (HHS-OIG); and the New York State Department of Labor.

ALBANY, NEW YORK – Luke E. Steiner, age 31, of Minnesota, pled guilty yesterday to conspiring with Michael T. Mann to defraud financing companies out of millions of dollars.

The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

Steiner worked at Optum, a division of UnitedHealth Group Incorporated located in Eden Prairie, Minnesota.  In pleading guilty, he admitted that between 2013 and September 2019, he conspired with Mann and others to fraudulently obtain millions of dollars in loans for Mann’s companies.   

Steiner admitted that he worked with Mann to induce financing companies to loan money on the basis of fake invoices purporting to show payments owed by his employer, Optum, to Mann’s companies.  Steiner’s role was to falsely represent to the financing companies that the fake invoices were valid and payable by Optum when, in fact, he knew that they were not.  He admitted that the conspiracy caused a total of $12,968,505.22 in losses to two financing companies, one based in New York and the other in Colorado.

Steiner faces up to 20 years in prison, and up to 3 years of post-imprisonment supervised release, when he is sentenced by Senior United States District Judge Lawrence E. Kahn.  He has agreed to entry of an order requiring him to pay $12,968,505.22 in restitution.  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.

Mann, age 49, of Saratoga County, operated ValueWise Corporation and other companies based in Clifton Park, New York.  He is charged with bank fraud.  The charges in the criminal complaint against Mann are merely accusations. Mann is presumed innocent unless and until proven guilty.

These cases are being investigated by the FBI, and are being prosecuted by Assistant U.S. Attorneys Michael Barnett and Cyrus P.W. Rieck. 

ALBANY, NEW YORK – Julan Morrison, aka “Weez,” age 38, of Hudson, New York, was sentenced today to 120 months in prison for his involvement in a crack cocaine distribution ring that operated in Columbia County.

The announcement was made by United States Attorney Grant C. Jaquith; Keith M. Corlett, Superintendent of the New York State Police; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Chief L. Edward Moore of the Hudson Police Department.

As part of his guilty plea, Morrison admitted that between August and December 2017, he was involved in a conspiracy to distribute crack cocaine in Columbia County.  Morrison admitted that members of the conspiracy made weekly trips to New York City where they purchased hundreds of grams of powder cocaine, returned it to Hudson, converted it to crack cocaine, and then sold it to customers.  Morrison admitted that the organization sold at least 464 grams of crack cocaine between August and December 2017.

Senior United States District Judge Thomas J. McAvoy also imposed a 5-year term of supervised release, to begin after Morrison’s release from prison.

This case was investigated by the New York State Police’s Special Investigations Unit, the FBI, and the Hudson Police Department, and was prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Joshua R. Rosenthal.

ALBANY, NEW YORK – Arshad Nazir, age 55, of Ticonderoga, New York, was sentenced yesterday to 1 year and 1 day in prison, to be followed by 3 years of supervised release, for conspiring to defraud Medicaid, and conspiring to pay bribes and kickbacks to Medicaid beneficiaries who used his medical transportation service. 

The announcement was made by:

• United States Attorney Grant C. Jaquith;
• James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI);
• New York State Police Superintendent Keith M. Corlett; and
• New York State Inspector General Letizia Tagliafierro.

 

Senior United States District Judge Thomas J. McAvoy also ordered Nazir to pay $450,000 in restitution, $50,000 of which Nazir paid immediately following his sentencing. 

The sentencing was the result of a state and federal investigation into Medicaid fraud committed by the owners and operators of medical transportation companies based in Essex County.

Nazir operated Capital Medallion, Inc. d/b/a Avalanche Taxi Service (“Avalanche Taxi”), a Medicaid-funded transportation company based in Ticonderoga.  The New York State Department of Health (“DOH”) paid Nazir’s company at least $2.45 million for Medicaid-funded transportation between 2014 and 2018. 

As part of his plea on February 12, 2019, Nazir admitted that he committed a variety of frauds against Medicaid and DOH, including: billing Medicaid and receiving payment for trips where beneficiaries drove themselves to their own medical appointments, and falsifying the identities of the drivers for those trips; billing Medicaid and receiving payment for roundtrips to and from medical appointments when the beneficiaries took only one-way trips with Avalanche Taxi; and falsifying pick-up and drop-off locations, in order to increase the purported distances traveled and therefore be able to claim and receive higher Medicaid payments.

Nazir also admitted that he agreed to pay kickbacks and bribes to Medicaid beneficiaries in order to get these beneficiaries to schedule and keep scheduling medical transportation appointments with Avalanche Taxi.  Kickbacks included cash, cigarettes and tobacco, and free goods at Nazir’s convenience store in Ticonderoga. 

This case was investigated by the FBI, the New York State Police’s Special Investigations Unit, and the Office of the New York State Inspector General, and was prosecuted by Assistant U.S. Attorney Michael Barnett.

Several additional agencies assisted in this investigation, including the Essex County District Attorney’s Office; New York State Police-Troop B; the Office of the New York State Comptroller, Division of Investigations; New York State Attorney General’s Office, Medicaid Fraud Control Unit (MFCU); Essex County Sheriff’s Office; Homeland Security Investigations (HSI); the Office of Inspector General for the U.S. Department of Health and Human Services (HHS-OIG); and the New York State Department of Labor.

ALBANY, NEW YORK – Shawn Morse, age 52, the former Mayor of Cohoes, New York, was sentenced today to two years of probation, 200 hours of community service, a $3,000 fine, and forfeiture of $12,250, for defrauding his supporters by stealing campaign contributions for his personal benefit. 

The announcement was made by United States Attorney Grant C. Jaquith and Tina Fuerholzer, Supervisory Special Agent of the Federal Bureau of Investigation (FBI).

During his guilty plea on August 20, 2019, Morse admitted that he and his campaign treasurer, Ralph Signoracci, solicited and received contributions to his political committee the “Friends of Shawn Morse” and a political action committee.  Signoracci then provided some of those funds to Morse for his personal use including an August 2015 contribution of $500 Morse used to pay a personal bill.  In total, as part of the scheme, Morse personally obtained $12,250 in political contributions from at least 10 victims to pay personal expenses at hotels, restaurants, and retailers.

As part of the scheme, Signoracci concealed the nature of the fraudulent expenditures by falsely reporting their purpose or by not reporting or disclosing them on campaign disclosure reports, as was required of local candidates for public office.  Signoracci pled guilty to conspiracy to commit wire fraud, and was sentenced to a one-year term of probation and 100 hours of community service.

This case was investigated by the FBI, and was prosecuted by former Assistant U.S. Attorney Megan Kinsella Kistler and Assistant U.S. Attorney Daniel Hanlon.

 

SYRACUSE, NEW YORK – Abner Peralta, age 30, and Luis Colon age 35, both of Utica, New York, were found guilty yesterday of drug trafficking charges following a five-day jury trial in federal court in Utica, announced United States Attorney Grant C. Jaquith and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division.

Peralta and Colon were found guilty of conspiracy to possess with intent to distribute and the distribution of cocaine in the Utica area from October 2016 to October 2017. Additionally, Peralta was found guilty of possession with intent to distribute of 28 grams or more of cocaine base (crack cocaine). The evidence at trial showed that Peralta and Colon conspired with each other and others to distribute cocaine in the Utica area and that Peralta, the head of the conspiracy, had access to kilogram-quantities of cocaine. The evidence also showed that Peralta maintained a drug “stash house” in Utica where he kept drugs and drug packaging materials. A fingerprint analyst testified that he found Peralta’s fingerprints on some of the packaging material seized from the stash location. The cocaine base Peralta possessed with the intent to distribute was found during a search warrant of his stash location in October 2017. Law enforcement officers also searched Peralta’s house and found multiple items in the garage that tested positive for cocaine residue, including a digital scale.

At sentencing, Peralta and Colon each face a maximum term of 40 years in prison for their offenses of conviction, and Peralta additionally faces a mandatory minimum term of imprisonment of 5 years. They each face fines of up to $5 million and supervised release terms of between 4 years and life following their release from 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. A date for sentencing has not yet been set.

This case was investigated by the DEA with assistance from the New York State Police, Oneida County Sheriff’s Office, Rome Police Department, Utica Police Department, Cortland Police Department, Investigators from the Onondaga County District Attorney’s Office; U.S. Border Patrol; and Internal Revenue Service – Criminal Investigation (IRS-CI), and is being prosecuted by Assistant U.S. Attorneys Michael F. Perry and Thomas Sutcliffe.

ALBANY, NEW YORK –John Curley, age 48, of Chester, Vermont, was sentenced today to 57 months in prison for attempting to meet a 12-year-old girl for sex.

The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his previously entered guilty plea, Curley admitted that he used an internet-based social networking service to solicit sex from someone he thought was a 12-year-old girl, but who was actually a police investigator acting in an undercover capacity.  Curley was arrested in a parking lot in Fort Ann, New York, where Curley believed he was going to meet the 12-year-old girl for sex. 

United States District Judge Mae A. D’Agostino also imposed a 20-year term of supervised release, which will start after Curley is released from prison.  As a result of his conviction, Curley will be required to register as a sex offender upon his release from prison.

This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of the New York State Police, and was prosecuted by Assistant U.S. Attorney Ashlyn Miranda.

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 http://www.justice.gov/psc/.

SYRACUSE, NEW YORK – Michael Rushmer, age 48, of Johnson City, New York, was sentenced today to 300 months in prison for sexually exploiting a child, and for distributing and possessing child pornography.

The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI). 

As part of his previously entered guilty plea, Rushmer admitted that he created sexually explicit images and videos of a minor (including secretly recording the victim engaged in sexual acts), and that he distributed some of those images and videos to people over the internet.  Rushmer further admitted that he possessed hundreds of images and videos depicting child pornography on his electronic devices, some of which included children under the age of 12.

Senior United States District Judge Thomas J. McAvoy also imposed a 10-year term of supervised release, which will start after Rushmer is released from prison, and ordered payment of $9,000 in restitution to victims.  As a result of his conviction, Rushmer will be required to register as a sex offender upon his release from prison.

This case was investigated by the FBI, the Johnson City Police Department, the Broome County Sheriff’s Department, and the Broome County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorneys Michael D. Gadarian and Sahar Amandolare.

This case was prosecuted 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), 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

ALBANY, NEW YORK - Mahin Mojtahedzadeh, age 74, and a citizen of Iran, was sentenced today to time served (443 days in jail) for conspiring to unlawfully export gas turbine parts from the United States to Iran.

The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and Jonathan Carson, Special Agent in Charge, the U.S. Department of Commerce, Office of Export Enforcement, New York Field Office.

United States District Judge Mae A. D’Agostino also ordered Mojtahedzadeh to pay a $5,000 fine.  Mojtahedzadeh had been in law enforcement custody since November 14, 2018 and will now be placed into immigration custody for the purposes of removal from the United States.

On July 19, 2019, she pled guilty to one count of conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations.  She admitted that she was the President and Managing Director of ETCO-FZC (“ETCO”), an export company with an office in Dubai in the United Arab Emirates.  ETCO is a supplier of spare and replacement turbine parts for power generation companies in the Middle East, including Iran.

Mojtahedzadeh admitted that from 2013 through 2017, she worked with companies in Canada and Germany to violate and evade U.S. sanctions against Iran, by having these companies first acquire more than $3 million dollars’ worth of turbine parts from two distributors in Saratoga County, New York. 

When the U.S. parts arrived in Canada and Germany, respectively, these companies and Mojtahedzadeh then arranged for the parts to be re-shipped to ETCO’s customers in Iran.  At all times, U.S. law prohibited the export and re-export of U.S.-origin turbine parts to Iran without a license from the U.S. Office of Foreign Assets Control (OFAC), which neither Mojtahedzadeh nor her co-conspirators possessed.

United States Attorney Grant C. Jaquith stated: “This investigation struck a blow to Iranian efforts to obtain U.S. goods needed for Iran’s domestic energy production, and brought to justice three foreign nationals who conspired to circumvent economic sanctions that protect the national security of the United States.”

FBI Special Agent in Charge James N. Hendricks stated: “Anyone looking to evade sanctions and put our nation at risk should be on notice. The FBI, along with our interagency partners, will continue to vigorously investigate these crimes and ensure perpetrators, like Mahin Mojtahedzadeh, are brought to justice.”

Kevin Kelly, HSI Buffalo Special Agent in Charge, stated: “The illegal exportation of sensitive and restricted technology is a detriment to our national security.  HSI is committed to enforcing these laws and ensuring that safeguards are maintained.  The defendant’s admission of guilt and the sentence they received today is a clear example of the consequences awaiting those who engage in such actions.”

Special Agent in Charge Jonathan Carson, of the U.S. Department of Commerce, Office of Export Enforcement, New York Field Office stated: “We will fully and aggressively enforce our nation’s restrictions on exports to Iran.  Controls on exports to Iran help apply maximum pressure on Iran to end its promotion of instability and terrorism worldwide.  The Office of Export Enforcement will continue to leverage our unique authorities to pursue violators wherever they are, worldwide. We will continue to work with our law enforcement partners to achieve this goal.”

Two of Mojtahedzadeh’s co-conspirators have previously pled guilty and been sentenced.

Olaf Tepper, a citizen of Germany, pled guilty to conspiring to violate IEEPA.  On August 3, 2018, Judge D’Agostino sentenced him to 24 months in prison, and to pay a $5,000 fine. Tepper was the founder and Managing Director of Energy Republic GmbH (“Energy Republic”), based in Cologne, Germany, which re-exported U.S.-origin turbine parts to Iran, as part of a conspiracy with Mojtahedzadeh.

Mojtaba Biria, a citizen of Germany, also pled guilty to conspiring to violate IEEPA.  On August 14, 2019, Judge D’Agostino sentenced him to time served (approximately 21 months in jail).  Biria was Energy Republic’s Technical Managing Director. 

These cases are the result of a joint investigation by FBI, HSI and the Department of Commerce Office of Export Enforcement, and were prosecuted by Assistant U.S. Attorneys Rick Belliss and Michael Barnett, with assistance from Trial Attorney Scott A. Claffee of the Department of Justice’s National Security Division, Counterintelligence & Export Control Section.

ALBANY, NEW YORK – Paul Turnbull, age 53, of Cohoes, New York, was arrested on January 27 on charges of transporting child pornography.

The announcement was made by United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).

The charges in the complaint are merely accusations.  The defendant is presumed innocent unless and until proven guilty.  Turnbull appeared in court on January 29 before United States Magistrate Judge Daniel J. Stewart.  Following a detention hearing held yesterday, Turnbull was detained pending trial. 

If convicted, Turnbull faces at least 15 years and up to 40 years in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of $250,000.  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.  Additionally, if convicted, Turnbull would be required to register as a sex offender.

Anyone with information relevant to this investigation may call HSI’s Albany office at (518) 220-2129.

The case is being investigated by HSI with assistance from the New York State Police Computer Crimes Unit and the Cohoes Police Department, and is being prosecuted by Assistant U.S. Attorney Robert A. Sharpe.

This case is being prosecuted 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), 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.

ALBANY, NEW YORK – Peter D. Amato, age 66, of Albany, was sentenced today to 1 year of probation and to pay a $15,000 fine for conspiracy to commit bank fraud.

The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his guilty plea, Amato admitted that from July 2015 through January 2017, he and a co-conspirator submitted inflated project budgets to M&T Bank as part of loan applications for apartment construction projects in the Towns of Brunswick and Stillwater, New York.  They then used the additional funds that the bank loaned to them for purposes not authorized by the loan agreements.  Amato further admitted that, as part of the scheme, he and his co-conspirator submitted false subcontractor agreements to M&T Bank that substantially overstated the amount of money for which subcontractors had agreed to do work on the projects, but that were consistent with the inflated project budgets Amato and his co-conspirator had provided to the bank. 

This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Richard D. Belliss. 

SYRACUSE, NEW YORK – Timothy B. Pease, 30, of Kirkville, New York, was arrested yesterday on charges of transportation of child pornography following the execution of a search warrant at his residence by Special Agents of the Federal Bureau of Investigation ("FBI"), announced United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

The defendant appeared today in Federal Court in Syracuse, New York, before United States Magistrate Judge Miroslav Lovric on a criminal complaint charging him with posting image and video files containing child pornography to an on-line group, and remanded into custody. 

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

If convicted of transporting child pornography, Pease faces a mandatory minimum sentence of 5 years, and a maximum term of 20 years imprisonment, a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration 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.

This case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force. This task force is comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), and is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.

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 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 – Kurtis Walter, age 26, of Troy, New York, pled guilty yesterday to distributing and receiving child pornography.

The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his guilty plea, Walter admitted that, in November 2017, he used a laptop computer equipped with an Internet-based instant messaging and file-sharing application to distribute child pornography.  He also admitted to using the same laptop to search for and download child pornography, which he accessed through sites located on the Internet’s “dark web.”  Walter’s laptop and external devices contained approximately 98 video files and 2,349 image files depicting child pornography.

Sentencing is scheduled for May 26, 2020 before United States Judge Mae A. D’Agostino.

Walter faces a minimum term of imprisonment of 5 years, and a maximum term of imprisonment of 20 years.  The Court is also required to impose a term of supervised release of between 5 years and life, and Baker will 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

This case was investigated by the FBI, with assistance from the New York State Police, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.

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 – Keith E. Hook, age 55, of Oswego, New York, was sentenced yesterday to 80 months in prison for distributing, receiving and possessing child pornography, announced United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).

United States Attorney Grant C. Jaquith said, “It is a sad day when a federal agent violates his duty to protect society in such a profound way. Thanks to the hard work of our law enforcement partners, Border Patrol Agent Hook has been held accountable for trading child pornography while on duty, and his sentence reflects the reprehensible nature of his behavior.”

As part of his guilty plea, Hook admitted that he used the Kik Messenger application to distribute and receive child pornography from other Kik users between January 2018 and July 2018.  Hook, using his iPod Touch, traded images of child pornography using a Wifi connection both at his home and while on duty at the Oswego Port of Entry.  Forensic analysis of Hook’s iPod revealed that at the time of his arrest he possessed on his iPod 138 images and 4 video files depicting minors engaged in sexually explicit conduct.  In addition to those images, Hook also had 10 video files and over 200 image files saved in his iCloud storage account and another 3 images stored on his laptop computer.  The images and videos included depictions of the rape and sodomy of prepubescent children and toddlers.

United States District Judge Hon. David N. Hurd also imposed a 10-year term of supervised release, which will start after Hook is released from prison, ordered a $300 special assessment, and a payment of $9,000 in restitution to the victims. As a result of his conviction, Hook will be required to register as a sex offender upon his release from prison.

Hook’s case was investigated by Homeland Security Investigations (HSI) Syracuse, with assistance from the U.S. Department of Homeland Security-Office of Inspector General, U.S. Customs and Border Protection-Office of Professional Responsibility, The New York State Police Computer Crimes Unit, and NYSP Fulton.  The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.

This case is being prosecuted 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), 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.

ALBANY, NEW YORK – Jacob Ebel, age 32, of Niverville, New York, was sentenced today to 18 years in prison after admitting that he distributed heroin and fentanyl to two people who died in Columbia County in July 2016. 

The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, New York Division, U.S. Drug Enforcement Administration (DEA); New York State Police Superintendent Keith M. Corlett; and Columbia County Sheriff David P. Bartlett.

United States District Judge Mae A. D’Agostino imposed the 18-year term of imprisonment that the Government and Ebel jointly recommended to her when he pled guilty on September 11, 2019.  Ebel will also serve a 3-year term of supervised release.  In imposing sentence, Judge D’Agostino told Ebel, “You are forever intertwined with the senseless, tragic deaths of two people who were loved by their families.”

In pleading guilty, Ebel admitted to selling heroin, fentanyl and other controlled substances, from 2014 through July 26, 2016, in Columbia County. 

Ebel admitted to dealing heroin and fentanyl first to a man identified as S.B., who overdosed on July 3, 2016 and died five days later, and then to a woman identified as S.S., who overdosed and died on July 23, 2016.

S.B., age 29, overdosed and was found unconscious in Niverville on July 3, 2016, less than a mile from Ebel’s house.  A State Police investigation established that prior to the overdose, S.B. had had extensive text message communications with Ebel, and that Ebel had sold heroin and fentanyl to S.B. at about 2:15 p.m. on July 3, 2016, several hours before S.B. was found unresponsive.  Inside S.B.’s vehicle, State Police located a folded, yellow sticky note with heroin and fentanyl, and “4-0” written on the outside – the amount of money that S.B. told the defendant he had in the text message conversations. 

Ebel and S.B. were friends.  Ebel knew that S.B. had died, but he kept dealing heroin and fentanyl.

On the morning of July 23, 2016, the Columbia County Sheriff’s Office (CCSO) responded to a house in Stuyvesant, New York, and found S.S. dead.  Investigators found three folded sticky notes in a small plastic bag on her bed; the notes contained heroin and fentanyl.  The CCSO investigation established that Ebel had sold heroin and fentanyl to S.S.’s husband in the days prior to S.S.’s death, and that S.S., age 19, had taken these drugs and died. 

Law enforcement executed a search warrant on Ebel’s house in the early morning hours of July 26, 2016.  Investigators seized about 16 grams of heroin and fentanyl that Ebel intended to sell.  Ebel was arrested that day and has been in custody ever since.

This case was the result of a joint investigation conducted by the New York State Police-Troop K and Columbia County Sheriff’s Office, with assistance from the U.S. Drug Enforcement Administration (DEA) and the office of Columbia County District Attorney Paul Czajka.  The case was prosecuted by Assistant U.S. Attorney Michael Barnett.

ALBANY, NEW YORK – Fred Hood, a/k/a “Taylor Taylor,” age 57, was sentenced today to time served (about 10.5 months in jail) for threatening to kill employees and residents of a Massachusetts veterans services program.

The announcement was made by United States Attorney Grant C. Jaquith and Chief Thomas Gibbons of the U.S. Department of Veterans Affairs Police in Albany.

As part of his guilty plea on September 20, 2019, Hood admitted that he sent multiple electronic messages from a VA facility in Albany to individuals at a nonprofit veterans services organization, threatening to commit a shooting attack at the organization’s residence on the campus of the Northampton VA Medical Center in Leeds, Massachusetts. 

United States District Judge Mae A. D’Agostino sentenced Hood – who has been in custody since March 2, 2019 – to time-served and to a 3-year term of post-imprisonment supervised release.

This case was investigated by the VA Police with assistance from the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal.

BINGHAMTON, NEW YORK – Francisco Alarcon Badillo, age 28 and a citizen of Mexico, pled guilty on January 17 to selling crystal methamphetamine while employed at the Saratoga Race Course.

The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, New York Division, U.S. Drug Enforcement Administration (DEA); and Saratoga Springs Police Department Chief Shane Crooks.

Badillo admitted that he sold crystal methamphetamine from May 2019 to August 2019, while residing at and working on the grounds of the Saratoga Race Course in Saratoga Springs, New York.  Badillo admitted to hiding the drugs in various locations within the Race Course property, including his dormitory room.  He admitted to selling more than 400 grams of crystal methamphetamine.

Badillo faces at least 10 years and up to life in prison when he is sentenced on May 28, 2020 by Senior United States District Judge Thomas J. McAvoy.  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. 

This case was investigated by the DEA and its Capital District Drug Enforcement Task Force, and the Saratoga Springs Police Department, with assistance from the New York Racing Association.  The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.

ALBANY, NEW YORK – Jessica Pascale, age 34, of Troy, New York, pled guilty today to defrauding the Social Security Administration (SSA) by diverting and stealing the benefit payments of two minor children while she was employed as a Social Security claims representative.

The announcement was made by United States Attorney Grant C. Jaquith and John F. Grasso, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, New York Field Office.

As part of her guilty plea, Pascale admitted that in July and September 2019, she used the SSA computer system in the SSA’s Troy office to divert two Supplemental Security Income (SSI) benefit payments intended for two minor children, totaling $3,309.34, into her personal bank account.  Neither the children, nor their parents, were aware of the thefts, which were discovered through internal controls at SSA.   Pascale pled guilty to four felony charges: two charges of theft of government property and two charges of fraud in connection with identification information.

At sentencing on May 20, 2020, Pascale faces up to 15 years in prison and up to 3 years of supervised release. 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.

This case was investigated by the SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.

BINGHAMTON, NEW YORK – Corey Baker, age 24, of Clintondale, New York, pled guilty today to distributing and receiving child pornography.

The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his guilty plea, Baker admitted that between June 2017 and August 2018, he traded child pornography with others using a phone and laptop computer equipped with various Internet-based instant messaging and file-sharing applications.  He also admitted to using a peer-to-peer file-sharing application on the laptop to search for and download child pornography.  Baker’s phone and laptop computer contained approximately 671 video files and 115 image files depicting child pornography.

Sentencing is scheduled for May 27, 2020 before Senior United States Judge Thomas J. McAvoy.

Baker faces a minimum term of imprisonment of 5 years, and a maximum term of imprisonment of 20 years.  The Court is also required to impose a term of supervised release of between 5 years and life, and Baker will 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

This case was investigated by the FBI, with assistance from the New York State Police, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.

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.

BINGHAMTON, NEW YORK – Jason L. Wentworth, age 35, of Oneonta, New York, was sentenced on January 2 to five years of probation for stealing Social Security survivors benefits and for making false statements to the Social Security Administration that enabled Wentworth to obtain those benefits.

The announcement was made by United States Attorney Grant C. Jaquith and John F. Grasso, Special Agent in Charge of the Social Security Administration (SSA) Office of the Inspector General, New York Field Division.

On August 21, 2019, Wentworth pled guilty to a six-count indictment charging three counts of theft of government property, one count of representative payee fraud, and two counts of making false statements in connection with his theft of Social Security benefits.  Following his wife’s death, Wentworth applied for and received survivors benefits on his son’s and his own behalf, and continued to receive and keep those benefits, even after the son’s maternal grandparents took over as his son’s primary caregivers.  Wentworth was not entitled to collect benefits on his own behalf once he stopped serving as the primary caregiver for his son.

Senior United States District Judge Thomas J. McAvoy also ordered Wentworth to pay restitution to the government in the amount of $27,525 and restitution to his son in the amount of $25,035.  Additionally, Judge McAvoy ordered Wentworth to forfeit $3,822.

This case was investigated by the SSA Office of the Inspector General and was prosecuted by Assistant U.S. Attorney Emily C. Powers.

SYRACUSE, NEW YORK - William “Bill” Saiff III, age 56, of Henderson, New York, was arraigned yesterday in federal court in Syracuse after being charged by indictment with three felony counts for hiring guides to lead paying hunters on illegal waterfowl hunts over baited ponds in October and November 2018 in Jefferson County, New York.  The charges were announced by United States Attorney Grant C. Jaquith; Ryan Noel, Regional Special Agent in Charge, U.S. Fish and Wildlife Service, Office of Law Enforcement; and Bernard Rivers, Director of Law Enforcement, New York State Department of Environmental Conservation.

If convicted, Saiff faces up to 5 years in prison on each count, 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.

At the time of these offenses, Saiff was on probation for a previous misdemeanor conviction in federal court in Syracuse in 2017 for guiding illegal waterfowl hunts over bait. Saiff has been charged separately with violating the terms of his probation based upon this new criminal conduct.

The charges in the indictment and in the probation violation petition are merely accusations. The defendant is presumed innocent unless and until proven guilty.

This case is being investigated by U.S. Fish and Wildlife Service, Office of Law Enforcement, and the New York State Department of Environmental Conservation, Division of Law Enforcement, and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.

ALBANY, NEW YORK – Niles O’Neil, age 28, of Plattsburgh, New York, was sentenced today to 120 months in prison for possessing and intending to distribute crack cocaine.

The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division.

As part of his plea on May 9, 2019, O’Neil admitted that he possessed approximately 40 grams of crack cocaine that he was intending to distribute on April 3, 2018.  Agents also found a digital scale, drug packaging, and cutting agents in his residence.

Chief United States District Judge Glenn T. Suddaby also imposed a 4-year term of supervised release to begin after imprisonment.  O’Neil has been incarcerated since his arrest on April 3, 2018.

This case was investigated by the DEA and prosecuted by Assistant U.S. Attorney Douglas Collyer.

ALBANY, NEW YORK – Yvette Davila, age 34, of Oklahoma City, Oklahoma, was sentenced today to time served (23 days in jail), followed by a one-year period of supervised release, and to pay a fine of $1,000, for transporting two illegal aliens within the United States.

The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.

On December 19, 2018, Davila drove to the international border near Trout River, New York, from Chelsea, Massachusetts, where she met with and picked up two illegal aliens from Mexico.  The aliens, Miguel Morales-Moreno and Cesar Ivan Almada-Velazquez, had avoided immigration inspection when they walked across the border east of the Trout River Port of Entry late on the night of December 19, 2018.   

Morales-Moreno and Almada-Velazquez walked to a spot south of the border where they waited for Davila.  After arriving at the border area the morning of December 20, 2018, Davila stopped and picked up Morales-Moreno and Almada-Velazquez.  Border Patrol Agents encountered Davila’s car parked on the side of Route 11 just east of Chateaugay, New York, where they arrested  Davila and her two passengers.

The passengers, Miguel Morales-Moreno, age 43, and Cesar Ivan Almada-Velazquez, age 38, citizens of Mexico, were convicted of the misdemeanor offense of entry without inspection by an alien on January 3, 2019 and each sentenced to 20 days in jail.    

This case was investigated by Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.

 

ALBANY, NEW YORK – Randy Mandiville, age 31, of Kerhonkson, New York, was sentenced today to 42 months in prison for his involvement in a drug trafficking organization in Ulster County that was dismantled and indicted in March 2019. 

The announcement was made by United States Attorney Grant C. Jaquith; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations (HSI), New York; Ulster County Sheriff Juan Figueroa, whose office leads the Ulster Regional Gang Enforcement Narcotics Team (URGENT); New York State Police Superintendent Keith M. Corlett; and Village of Ellenville Police Chief Philip Mattracion.

As part of his plea, Mandiville admitted that between February and December 2018, in cooperation with co-conspirators, he sold at least 16.8 grams of crack cocaine on behalf of the organization in various locations around Ellenville. 

U.S. District Judge Mae A. D’Agostino also sentenced Mandiville to serve a 6-year term of supervised release upon his release from prison.

The following defendants have also pled guilty in connection with the conspiracy, and face the following penalties:

Name

Age

Minimum

Maximum

Luis Curet

34

5 years

40 years

Iqwan Mandiville

26

5 years

40 years

Edwin Jorge

46

None

20 years

The following defendants still face charges in this case, and face the following penalties:

Name

Age

Minimum

Maximum

Antonio Naveo, aka “Gratto,” aka “Green Eyes”

38

10 years

Life

Margaret Vandyke

56

10 years

Life

Jennifer McCombs, aka
“Jennifer Marks”

49

5 years

40 years

Naveo is also charged with unlawful possession of a Mossberg shotgun as a felon.  The charges against these defendants are merely accusations. The defendants are presumed innocent unless and until proven guilty.

This case is being investigated by HSI, the Ulster County Sheriff’s Office in conjunction with URGENT, an inter-agency taskforce targeting drug dealers and gang members in Ulster County, and the New York State Police, with assistance from the Village of Ellenville Police and the Ulster County District Attorney’s Office.  The case is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.

ALBANY, NEW YORK – James Seeley, age 55, of Albany and Queensbury, New York, was sentenced today to 262 months in prison for attempted coercion and enticement of a minor.

The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Superintendent Keith M. Corlett.

Seeley was a sex offender as a result of a 2002 conviction, deviate sexual intercourse with another person less than 11 years old, for which he was sentenced to 7 years in state prison.  He also has a conviction for possessing child pornography.

As part of his guilty plea in federal court, Seeley admitted that in October 2018, he communicated with two undercover officers, including one posing as an 11-year-old girl.  Seeley admitted that he discussed his interest in engaging in various sex acts with someone he believed to be the 11-year-old girl and then went to a location in Queensbury to engage in sexual intercourse with her. 

United States District Judge Mae A. D’Agostino also ordered Seeley to serve a life term of supervised release following his release from prison.

This case was investigated by the FBI and the New York State Police, and was prosecuted by Assistant U.S. Attorney Katherine Kopita.

ALBANY, NEW YORK – John R. Elbayeh, aka Jean Elbayeh, age 44, of Albany, pled guilty today to stealing Apple iPhones, gold coins, small gold bars and other valuable items from mailed packages while employed as a postal clerk. 

The announcement was made by United States Attorney Grant C. Jaquith and Matthew Modafferi, Special Agent in Charge of the Northeast Area for the United States Postal Service (USPS), Office of the Inspector General (OIG).

Elbayeh worked as a lead mail processing clerk at the USPS Processing and Distribution Center in Albany, from December 2012 through December 2018.  He admitted that for approximately 2 years ending in December 2018, he stole valuable items from the mail, including iPhones and gold coins, which he pawned for a total of $50,362.22. 

Shortly after being interviewed by federal agents in December 2018, Elbayeh took a one-way flight to Beirut, Lebanon, and remained outside the United States until October 17, 2019.  On that date, USPS-OIG Agents arrested him at Dulles International Airport in Virginia, where Elbayeh had just arrived from a flight originating in Cairo, Egypt.  Elbayeh has been in custody since that time.

Elbayeh, who pled guilty to mail theft, faces up to 5 years in prison when United States District Judge Mae A. D’Agostino sentences him on April 17, 2020.  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.

This case was investigated by the USPS, Office of the Inspector General, with assistance from the United States Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.

ALBANY, NEW YORK – Esteban Ressy, aka “The Boss,” age 44, of Puerto Rico and Schenectady, New York, pled guilty today to conspiring to traffic a kilogram or more of heroin.  Ressy was one of nine people indicted in January 2019 as part of law enforcement’s dismantling of a heroin distribution ring in Schenectady.  With Ressy’s plea, all nine defendants have pled guilty. 

The announcement was made by United States Attorney Grant C. Jaquith; Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and New York State Police Superintendent Keith M. Corlett. 

In pleading guilty, Ressy admitted to being a member of a drug-trafficking organization that distributed a kilogram or more of heroin in Schenectady between 2017 and December 20, 2018.  Ressy, who lived in both Puerto Rico and Schenectady, was the leader of the Schenectady faction of the organization and regularly obtained hundreds of grams of heroin from Jean Carlos Rivera-Perez, aka “Tego,” in the Bronx, New York.  Ressy paid thousands of dollars in cash for the heroin, which was packaged for sale by other members of the organization, including Leamzy Soto Calderon, Linette Marie Soto, and Kristen Jansen, and sold in and around Schenectady.  

On December 20, 2018, law enforcement executed search warrants at Linett Soto’s residence in Schenectady, Soto Calderon and Jansen’s residence in Schenectady, and Rivera-Perez’ residence in the Bronx, and seized, among other items, approximately 268 grams of heroin, cutting agent, heroin processing materials, and $11,066 in cash. 

United States Attorney Grant C. Jaquith stated: “Ressy, Rivera-Perez, and their co-conspirators sought to profit from the scourge of heroin, and now face many years in prison.  Dismantling this drug organization demonstrates our commitment to targeting traffickers who are fueling opioid addiction and its tragic consequences.”

“Ressy admitted to bringing deadly drugs into the city of Schenectady as he and his criminal organization preyed on the addictions and vulnerabilities of others,” said Kevin Kelly, Special Agent in Charge for HSI Buffalo.  “HSI continues to work in collaboration with state and local law enforcement to arrest those criminals operating in our communities with no regard for human life.”

New York State Police Superintendent Keith M. Corlett stated: “The success of this investigation is the direct result of the hard work and cooperation among federal, state and local law enforcement, and I applaud our partners for their dedication to closing this case.  The disruption of this distribution ring serves as a reminder that we will not tolerate the trafficking of deadly, illegal drugs, and those who choose to profit from this activity will be held fully accountable.”

Ressy has four prior drug distribution convictions, including a 2002 conviction in the U.S. District Court for the Northern District of New York for conspiring to distribute heroin. 

Ressy faces at least 15 years and up life in prison, and a term of post-imprisonment supervised release of at least 10 years and up to life, when he is sentenced on April 10, 2020 by United States District Judge Mae A. D’Agostino.  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 following defendants have pled guilty and face the following terms of imprisonment:

Name

Age

Minimum

Maximum

Jean Carlos Rivera-Perez, aka “Tego”

37

10 years

Life

Daniel Garcia, aka “Danny”

34

10 years

Life

Linette Marie Soto

25

10 years

Life

Kristen Jansen

28

5 years

40 years

Patrick McNamara

48

None

20 years

The following defendants pled guilty and were sentenced to the following terms of imprisonment:

Name

Age

Term of imprisonment

Gregory Insogna

46

5 years

Leamzy Soto Calderon, aka “Lee,” aka “Gordo”

29

57 months

Jose Cortes-Cruz, aka “Bimbo”

29

1 year and 1 day

This case was investigated by HSI, the New York State Police, the U.S. Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Amsterdam Police Department, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck. 

ALBANY, NEW YORK – John R. Paeglow III, age 63, of Troy, New York, was arraigned today on 10 counts of wire fraud, and one count of embezzling funds from an employee benefit plan. 

The announcement was made by United States Attorney Grant C. Jaquith and Michael C. Mikulka, Special Agent in Charge, New York Region, United States Department of Labor, Office of Inspector General (DOL-OIG).

Paeglow was arraigned today in Albany before United States Magistrate Judge Christian F. Hummel, and released on conditions pending trial before Senior United States District Judge Frederick J. Scullin, Jr.

According to the indictment, Paeglow fraudulently solicited and received over $400,000 on behalf of his now-closed Castleton, New York-based book printing business Integrated Book Technology, Inc./Hamilton Printing (“IBT/Hamilton”), by orchestrating the submission of fraudulent invoices and forged shipping documents to a New Jersey-based commercial finance company.  Paeglow obtained funding based on his false promises that he expected payment for the sales of books that, in fact, had not been sold or shipped.

Paeglow is also charged with embezzling employee contributions to his company’s health plan.

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

The charges filed against Paeglow carry a maximum sentence of 20 years in prison, a fine of up to the greater of $250,000 or twice the pecuniary gain to the defendant or the loss to any victim, 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.

This case is being jointly investigated by the U.S. DOL-OIG and the New York State Police Financial Crimes Unit, and is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.

ALBANY, NEW YORK – Richard J. Sherwood, age 59, of Guilderland, New York, was sentenced today to 54 months in federal prison for conspiring to steal approximately $11.8 million from estates for which he served as an attorney and fiduciary. 

The announcement was made by:

• United States Attorney Grant C. Jaquith;
• New York Attorney General Letitia James;
• James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and
• Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of IRS-Criminal Investigation.

 

Senior United States District Judge Lawrence E. Kahn also ordered Sherwood to serve a 1-year term of supervised release, to pay $5,560,505 in restitution, and to forfeit the following as proceeds of his crimes: 12 bank and brokerage accounts, and a house overlooking Galway Lake in Saratoga County.

In a related case prosecuted by the New York Attorney General’s Office, Sherwood pled guilty, in Albany County Court, to grand larceny in the first degree, and was sentenced this afternoon to a concurrent term of 3 to 9 years in state prison.

Sherwood’s co-conspirator, Thomas K. Lagan of Cooperstown, New York, was sentenced on December 11 to 78 months in federal prison, to run concurrent with a state sentence of 4 to 12 years in prison.

United States Attorney Grant C. Jaquith stated: “Our society depends on attorneys to be honest and ethical.  Richard Sherwood desecrated that trust when he stole millions of dollars from clients who relied on him to transfer their money to churches and other beneficiaries after they died.  His seven-year criminal conspiracy is all the more disturbing because Sherwood was also Guilderland Town Justice at the time.  Today’s sentence punishes Sherwood for his despicable conduct and requires him to repay every last dime that he stole.”

FBI Special Agent in Charge James N. Hendricks stated: “Richard Sherwood stole millions of dollars from estates meant for charities, churches, and civic organizations, while at the same time serving as an elected judge. Today’s sentencing affirms that the FBI has zero tolerance for attorneys who exploit their clients, and we will continue to work with our partners to make sure these criminals are brought to face justice.”

IRS-CI Special Agent in Charge Jonathan D. Larsen stated: “As demonstrated by the sentencing of co-conspirator Thomas Lagan last week and now Mr. Sherwood’s sentence today, IRS-Criminal Investigation continues to make tax law enforcement a key priority. Protecting victims is also one of our most important objectives. The sentences imposed in these cases illustrate the consequences of lying and stealing from the federal government and innocent taxpayers. They also underscore the government’s commitment to prosecuting tax fraud. Today’s sentence should serve as a warning and deterrent to others.”

Sherwood practiced primarily in the area of trusts and estates.  Starting in about 2006, he provided estate planning and related legal services to Capital Region philanthropists Warren and Pauline Bruggeman, and to Pauline’s sister, Anne Urban, all of Niskayuna, New York.  Sherwood was advising the Bruggemans when, in 2006, they signed wills directing that all their assets go to charities, churches and civic organizations, aside from bequests to Anne Urban and Julia Rentz, Pauline’s other sister.

Warren Bruggeman died in April 2009, and Pauline died in August 2011.  At the time of her death, Pauline had personal and trust assets valued at approximately $20 million.

In pleading guilty to charges of money laundering conspiracy and filing a false tax return, Sherwood admitted that after Pauline Bruggeman’s death, he and Lagan conspired to steal millions of dollars from her estate as well as from Anne Urban, who died in 2013.  Their conspiracy came to include the diversion and transfer to themselves of several million dollars belonging to Julia Rentz, a resident of Ohio, who was suffering from dementia at the time of the thefts and died in 2013. 

Sherwood admitted that he and Lagan stole $11,831,563, and that nearly $3.6 million was transferred outright to him, with an additional $1.96 million transferred to an entity, Empire Capital Trust, LLC, that he and Lagan controlled.  Sherwood also admitted that he transferred to himself the Bruggeman family camp located on Galway Lake. 

Sherwood admitted that he and Lagan induced Anne Urban to create a trust whose purpose, unknown to her, was to allow him and Lagan to transfer Bruggeman/Urban assets to themselves.  Sherwood and Lagan also set up more than 10 bank accounts, and created a limited liability company (Empire Capital Trust, LLC), to first conceal the theft of the money and then transfer the money to themselves. 

Sherwood pled guilty to filing false federal tax returns in 2013 and 2015.  These returns were false because he did not report, as other income, about $4.7 million that he received from the fraudulent scheme. 

Sherwood served as Guilderland Town Justice from 2014 until his arrest on February 23, 2018.  He resigned his position on March 5, 2018. He was disbarred on September 13, 2018.

The federal case was investigated by the FBI and IRS-CI, and was prosecuted by Assistant U.S. Attorney Michael Barnett.  Assistant U.S. Attorneys Adam J. Katz and Alicia G. Suarez prosecuted the asset forfeiture aspects of the case.

The state case was prosecuted by Assistant Attorneys General Christopher Baynes and Matthew Peluso of the Attorney General’s Public Integrity Bureau, under the supervision of Bureau Chief Travis Hill.  The Criminal Justice Division is led by Chief Deputy Attorney General Jose Maldonado.  The investigation was led by Investigator Mark Spencer of the Attorney General’s Investigations Bureau, under the supervision of Deputy Chief Investigator Antoine Karam.  The Investigations Bureau is led by Acting Chief John Reidy.  Financial analysis was provided by Principal Auditor Investigator Meaghan Scotellaro of the Forensic Audit Section under the supervision of Deputy Chief Auditor Sandy Bizzarro and Chief Auditor Edward J. Keegan, Jr.  Senior Analyst Sara Pogorzelski assisted in the investigation.

 

ALBANY, NEW YORK – Carlos Rivera, age 43, of Chatham, New York, pled guilty on December 13 to possessing and intending to distribute cocaine and to being a felon in possession of a firearm. 

The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration, New York Field Division.

Rivera admitted that on September 18, 2018, he possessed, at his residence in Chatham, approximately 480 grams of cocaine that he intended to distribute to others. He also admitted to possessing a Mossberg 535 12-gauge shotgun after having been convicted of a felony in New York.

Rivera faces up to 30 years in prison on the drug charge and up to 10 years in prison on the firearm charge, as well as a term of post-imprisonment supervised release of at least 6 years, and a maximum fine of $2 million, when he is sentenced by Senior United States District Judge Thomas J. McAvoy on May 12, 2020.  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.

This case was investigated by the DEA and the Columbia County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorneys Troy R. Anderson and Alicia Giglio Suarez.

ALBANY, NEW YORK – Steven McGill, age 49, of Albany, pled guilty on December 13 to being a felon in possession of firearms and ammunition. 

The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

McGill admitted that on January 9, 2019, in Troy, New York, he possessed a loaded .40 caliber pistol and a loaded .380 caliber pistol, as well as the ammunition contained within each firearm. He also admitted that he provided those firearms to another individual who sold them to a third party and returned the money to McGill.

McGill faces up to 10 years in prison, a term of post-imprisonment supervised release of up to 3 years, and a maximum fine of $250,000, when he is sentenced by Senior United States District Judge Thomas J. McAvoy on May 13, 2020.  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.

This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, and is being prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.

ALBANY, NEW YORK – A grand jury yesterday returned a superseding indictment charging two men with the February 6, 2019 armed robbery of an Albany bank in which approximately $150,000 was stolen.

The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Chief Eric Hawkins of the Albany Police Department (APD).

The superseding indictment adds charges against Christopher J. Cohn a/k/a “Wolf,” age 26, of Albany, and Ulysses Jessie Walls a/k/a “Guwala,” age 26, of Rensselaer, New York, for armed bank robbery. 

According to the superseding indictment and other court filings, Cohn and Walls entered a Trustco Bank branch in Albany on the afternoon of February 6, 2019, each wearing a ski mask and Walls displaying a gun, and threatened to shoot the bank’s employees if they did not comply with the pair’s demands.  Approximately $150,000 was taken during the robbery. 

The initial indictment in this case, returned on July 24, 2019, charged Cohn and Walls with armed bank robbery and use of a firearm during a crime of violence in connection with a February 26, 2019 robbery of an M&T Bank branch located in North Greenbush. 

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

Cohn and Walls have been in custody since February 26, 2019.

If convicted of all charges, Cohn and Walls would each face at least 20 years and up to life in prison.  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.

This case is being investigated by the FBI, the New York State Police, the Town of North Greenbush Police Department, APD, and the Albany County Sheriff’s Office, with the assistance of the Rensselaer County District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorneys Joshua R. Rosenthal and Wayne A. Myers.

ALBANY, NEW YORK – Jacob Delaney, age 22, of Holtsville, New York, and currently residing in New Paltz, was charged and arrested today for possessing child pornography.

The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

A criminal complaint filed against Delaney alleges that he possessed child pornography on his computer and an external hard drive while residing in New Paltz.  The charges in the complaint are merely accusations.  The defendant is presumed innocent unless and until proven guilty. 

If convicted, Delaney faces a maximum term of imprisonment of 20 years, a mandatory term of supervised release of 5 years and up to life, mandatory registration as a sex offender, and a maximum $250,000 fine.  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. 

This case is being investigated by the FBI and its Child Exploitation Task Force, and the New York State Police Troop F Campus Sexual Assault Victim’s Unit and Highland Barracks, and is being prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez. 

This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorneys’ Offices, 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 http://www.justice.gov/psc/.

 

ALBANY, NEW YORK – Robert Kirk, age 36, of Schenectady, New York, pled guilty yesterday to sexually exploiting a child, and to distributing and possessing child pornography.

The announcement was made by United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI). 

Kirk admitted that on two occasions in July 2018, he used a sleeping, minor child to create sexually explicit images and videos on his cellular telephone.  Kirk also admitted to distributing child pornography over a group messaging application and possessing hundreds of images of child pornography.

Kirk is scheduled to be sentenced on April 10, 2020 by Senior United States District Judge Norman A. Mordue.  Kirk faces at least 15 years and up to 30 years in prison on the sexual exploitation counts, at least 5 and up to 20 years in prison on the distribution count, and up to 20 years in prison on each of the child pornography counts.  Sentences of imprisonment may be concurrent or consecutive at the discretion of the Court.  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 Court also will impose a term of post-imprisonment supervised release of between 5 years and life.

This case was investigated by HSI, with assistance from the New York State Police, and is being prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.

This case is being prosecuted 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), 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.

 

ALBANY, NEW YORK - Gheorghe Cirstea, age 33, and a citizen of Romania, was sentenced today to 27 months in prison for conspiring to steal bank customers’ account information and personal identification numbers (PINs) by using skimming devices that he secretly installed on bank ATMs in the Capital Region from August through October 2015.

The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.

On March 30, 2018, Cirstea was arrested on an international arrest warrant while travelling through Bogota, Colombia.  On October 19, 2018, Cirstea was formally extradited by Colombian authorities to the Northern District of New York, and he has remained in custody since then.

As part of his guilty plea on August 8, 2019, Cirstea admitted that from August 30, 2015 through October 24, 2015, he and co-conspirator Ilie Sitariu used skimming devices and pinhole cameras to secretly capture the account numbers and PINs of customers who used ATMs at First Niagara Bank, Trustco Bank, and Berkshire Bank branches in Chatham, New York, Delmar, New York, and Great Barrington, Massachusetts, respectively.  The skimming devices captured the information encoded on the magnetic strips of customers’ bank debit cards, while the pinhole cameras allowed the defendants to record the PINs used by the customers.  The conspirators then used the information to steal approximately $127,000 from the customers’ accounts by making withdrawals at ATMs in New York City.

Sitariu, who was arrested in September 2015, pled guilty on November 22, 2016, and was sentenced to 48 months in prison by Senior United States District Judge Lawrence E. Kahn.

Judge Kahn also ordered that Cirstea pay $127,389 in restitution to the three banks whose customers’ account information was skimmed and used to make unauthorized withdrawals.

This case was investigated by the FBI, U.S. Secret Service, and the New York State Police, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.

 

SYRACUSE, NEW YORK – A jury voted yesterday to convict Alfredo Carballo Nava, age 26, a citizen of Mexico staying in Homer, New York, of one count of immigration fraud for using a counterfeit permanent resident card. The jury acquitted the defendant of one count of social security fraud.  

The announcement was made by United States Attorney Grant C. Jaquith and U.S. Immigration and Customs Enforcement (ICE), Buffalo Field Office Director of Operations Thomas Feeley. 

Evidence presented during the two-day trial established that, in 2008, Carballo Nava unlawfully entered the United States and obtained a counterfeit permanent resident card. This document contained obvious errors including an incorrect date of birth, incorrect date of entry into the U.S., and a fingerprint that did not belong to Carballo Nava. In 2019, after arrest on another matter, an investigation revealed that Carballo Nava used the counterfeit permanent resident card in 2017 to obtain employment in Cortland County. 

Sentencing is scheduled for June 4, 2020, at which time Carballo Nava faces up to 10 years in prison and a fine of up to $250,000. The defendant may also face immigration proceedings that could result in his removal from the United States[1].A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.   

This case was investigated by United States Immigration and Customs Enforcement (ICE), the Social Security Administration-Office of Inspector General, United States Citizenship and Immigrations Services, and the City of Cortland Police Department. 

This case was prosecuted by Assistant United States Attorneys Kristen Grabowski and Tamara Thomson. 

 

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[1] Immigration proceedings are civil in nature and are adjudicated separately in Immigration Court.

ALBANY, NEW YORK – Brian Northup, age 28, of Hudson, New York, pled guilty today to accessing a child pornography web site available only through an anonymous Internet network.

The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his plea, Northup admitted that in 2015, he accessed Playpen, an online forum through which registered users advertised, viewed, and distributed child pornography.  Images and videos shared through the site were highly categorized according to victim age and gender, and type of sexual activity depicted. 

Before the FBI seized the Playpen web site and shut it down, it was available only through an anonymous Internet network, which allowed users to access websites including Playpen without revealing their actual internet protocol address, geographic location, or other identifying information.  Northup admitted that he logged into Playpen in order to access its child pornography content.

Northup faces up to 10 years in prison when he is sentenced by United States District Judge Mae A. D’Agostino on April 6, 2020.  He also faces a term of post-imprisonment supervised release of at least 5 years and up to life, a fine of up to $250,000, and mandatory registration 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.

This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.

This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 http://www.justice.gov/psc/

ALBANY, NEW YORK – Two Georgia men have been sentenced to prison for creating counterfeit checks and then cashing them at banks in Saratoga and Warren Counties.

The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Superintendent Keith M. Corlett.

Alphonso L. Howard, Jr., age 29, of Decatur, Georgia, was sentenced today to 48 months in prison, to be followed by 3 years of supervised release, and to pay $119,077.54 in restitution.  Howard also forfeited $16,660 in cash that he possessed at the time of his arrest by New York State Police.  Howard additionally faces a parole violation proceeding in Wisconsin, where he was previously convicted of participating in a prior, similar check cashing scheme.

Javonte J. Johnson, age 23, of Decatur, Georgia, was sentenced on December 5 to 30 months in prison, to be followed by 5 years of supervised release, and to pay $119,077.54 in restitution.  Johnson also forfeited $2,391 in cash that he possessed at the time of his arrest by New York State Police.  Johnson has additionally agreed to plead guilty to grand larceny charges in Jefferson County Court, New York, arising from a similar check cashing scheme he committed there.

Each man pled guilty in federal court to 1 count of conspiring to commit bank fraud and 1 count of aggravated identity theft. 

They admitted that they defrauded financial institutions by intercepting and stealing checks sent through the U.S. Mail; using information from these legitimate checks to create counterfeit checks drawn on the same financial accounts as the stolen, legitimate checks; and then cashing and attempting to cash the counterfeit checks at financial institutions in Saratoga and Warren Counties. 

This case was investigated by the FBI and the New York State Police-Troop G, and was prosecuted by Assistant U.S. Attorney Michael Barnett.  Other agencies have assisted in the investigation and prosecution, including the District Attorney’s Offices in Jefferson, Saratoga and Warren Counties, the Glens Falls Police Department, the Burlington Police Department (Vt.), Vermont State Police, and the Stowe Police Department (Vt.).

ALBANY, NEW YORK – Thomas K. Lagan, age 61, of Cooperstown, New York, and formerly of Slingerlands, New York, was sentenced today to 78 months in prison, to be followed by 2 years of supervised release, for money laundering and filing a false tax return in connection with the theft of approximately $11.8 million from estates for which he served as a fiduciary. 

The announcement was made by:

• United States Attorney Grant C. Jaquith;
• New York Attorney General Letitia James;
• James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and
• Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of IRS- Criminal Investigation.

 

Senior United States District Judge Lawrence E. Kahn also ordered Lagan to pay $7,707,450 in restitution, and to forfeit the following as proceeds of his crimes: 10 bank and brokerage accounts; an additional $255,000 already paid to the Government; three properties in Otsego County; a 2016 Mercedes Benz S550; a 2015 Jeep Wrangler Sport; a 2015 Lexus RX450; and a 2015 Sea-Doo jet ski and accompanying trailer.

In a related case prosecuted by the New York Attorney General’s Office, Lagan pled guilty, in Albany County Court, to grand larceny in the first degree, and was sentenced to 4 to 12 years in prison.  The federal and state terms of imprisonment will run concurrent to one another.

In pleading guilty, Lagan admitted that between November 2011 and February 2018, he conspired with Richard J. Sherwood to launder the proceeds of a scheme to defraud the estates of three sisters: Pauline Bruggeman, Anne Urban, and Julia Rentz. 

Sherwood pled guilty in June 2018 to federal and state charges.  He is scheduled to be sentenced on December 19, 2019.

United States Attorney Grant C. Jaquith stated: “Fueled by insatiable greed, Thomas Lagan stole millions of dollars earmarked for churches and civic organizations.  Lagan was trusted to carry out his victims’ charitable endeavors, but betrayed them after they died.  Today’s sentence holds him accountable for his despicable behavior and ensures that his crimes won't pay.”

FBI Special Agent in Charge James N. Hendricks stated: “Thomas Lagan chose to steal millions of dollars from estates meant for churches and charitable organizations. The FBI takes our responsibility to investigate and pursue those who commit fraud for personal gain very seriously. We will continue working with our law enforcement partners to hold accountable those who use illegal means and criminal behavior to take advantage of others.”

IRS-CI Special Agent in Charge Jonathan D. Larsen stated: “Mr. Lagan failed to comply with some of the most basic taxpayer responsibilities.  Even worse, his self-seeking actions have deprived charitable organizations of funds intended to serve individuals in need. IRS-CI, along with its law-enforcement partners, is committed to impartially enforcing our country’s tax laws. Today’s sentencing should serve as a deterrent to criminals looking to enrich themselves by stealing charitable contributions donated by well-intended citizens.”

Lagan was an investment advisor and attorney.  Sherwood, an attorney who served as Guilderland Town Justice, practiced primarily in the area of trusts and estates. 

Starting in 2006, they provided estate planning and related legal services to Capital Region philanthropists Warren and Pauline Bruggeman, and to Pauline’s sister, Anne Urban, all of Niskayuna, New York.  They were advising the Bruggemans when, in 2006, the Bruggemans signed wills directing that all their assets go to charities, churches and civic organizations, aside from bequests to Anne Urban and Julia Rentz, Pauline’s sisters.

Warren Bruggeman died in April 2009, and Pauline died in August 2011.  At the time of her death, Pauline had personal and trust assets valued at approximately $20 million.

In pleading guilty, Lagan admitted that after Pauline Bruggeman’s death, he and Sherwood conspired to steal, and did steal, millions of dollars from her estate as well as from Anne Urban, who died in 2013.  Their conspiracy came to include the diversion and transfer to themselves of several million dollars belonging to Julia Rentz, a resident of Ohio, who was suffering from dementia at the time of the thefts and died in 2013.

Lagan admitted that he and Sherwood stole $11,831,563, and that nearly $6.3 million was transferred outright to him. 

Lagan admitted that he and Sherwood induced Anne Urban to create a trust whose purpose, unknown to her, was to allow them to transfer Bruggeman/Urban assets to themselves.  Sherwood and Lagan also set up more than 10 bank accounts, and created a limited liability company (Empire Capital Trust, LLC), to first conceal the theft of the money and then transfer the money to themselves.

Lagan also admitted to filing false federal tax returns in 2013 and 2015.  These returns were false because he did not report, as other income, millions of dollars that he received from the fraudulent scheme.

The federal case was investigated by the FBI and IRS-CI, and was prosecuted by Assistant U.S. Attorney Michael Barnett.  Assistant U.S. Attorneys Adam J. Katz and Alicia G. Suarez prosecuted the asset forfeiture aspects of the case.

The state case was prosecuted by Assistant Attorneys General Christopher Baynes and Matthew Peluso of the Attorney General’s Public Integrity Bureau, under the supervision of Bureau Chief Travis Hill.  The Criminal Justice Division is led by Chief Deputy Attorney General Jose Maldonado.  The investigation was led by Investigator Mark Spencer of the Attorney General’s Investigations Bureau, under the supervision of Deputy Chief Investigator Antoine Karam.  The Investigations Bureau is led by Acting Chief John Reidy.  Financial analysis was provided by Principal Auditor Investigator Meaghan Scotellaro of the Forensic Audit Section under the supervision of Deputy Chief Auditor Sandy Bizzarro and Chief Auditor Edward J. Keegan, Jr.  Senior Analyst Sara Pogorzelski assisted in the investigation.

SYRACUSE, NEW YORK – Donald M. Geiss, Jr., age 44, of Syracuse, was sentenced yesterday to 65 months in prison after previously pleading guilty to four counts of wire fraud and two counts of aggravated identity theft in relation to various schemes to defraud he perpetrated on victims in multiple states, announced United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

In previously pleading guilty, Geiss admitted that between approximately August 2016 through August 2017 he perpetrated various fraud schemes on victims in multiple states, including by collecting money from his victims by (1) posing as an investor and pretending to go through the process of buying a business in the Syracuse area in order to gain access to the business; (2) pretending to negotiate the sale of a non-existent computer algorithm for insurance claims to a well-known multinational finance and insurance corporation in New York; (3) convincing a victim to purchase several online video game profiles from other people on Geiss’s behalf; and (4) selling fake and fraudulent “discount” airline tickets over the internet. In perpetrating these various crimes, Geiss used at least one alias, one false identity, and two stolen identities. Geiss ultimately obtained a total of more than $167,000 from his various victims.

Geiss was on supervised release related to a prior federal fraud conviction when he committed all of the crimes for which he was sentenced yesterday. In addition to the 65-month prison sentence, Geiss was also sentenced to serve an additional 6 months in prison for violating the terms of his supervised release by committing the fraud and aggravated identity theft offenses. In total, Geiss will serve 71 months in prison. The Court also ordered Geiss to pay money judgments totaling over $153,000, and to pay restitution to his victims of more than $167,000. Following his release from prison, Geiss will be on supervised release for 3 years.

This case was investigated by the Federal Bureau of Investigation (FBI), and was prosecuted by Assistant U.S. Attorney Michael F. Perry.

ALBANY, NEW YORK – Jose Fontanez, age 38, of Schenectady, New York, was sentenced today to 135 months in prison for stealing, possessing, concealing, and storing firearms stolen from Target Sports, Inc., a federally licensed firearms dealer in Schenectady County.

The announcement was made by United States Attorney Grant C. Jaquith and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).

United States District Judge Norman A. Mordue also sentenced Fontanez to a 3-year term of supervised release and ordered that he pay restitution of $48,775.47.

Fontanez, who has prior felony convictions for robbery and drugs, pled guilty on April 16, 2018.  As part of his plea, Fontanez admitted that, on October 22, 2017, he and Christian Roman broke a window to gain entry into Target Sports and then removed dozens of firearms from the store, as well as ammunition and other property, making multiple trips to and from the store with the assistance of Dalmary Morales.  Fontanez further admitted that, after making an inventory of the stolen firearms, the two men hid them in a storage unit in Schenectady and, while on the run from law enforcement, enlisted accomplices in Amsterdam, New York, and Rochester, New York, to help retrieve and transport them to various locations in New York.  In exchange for their assistance, Fontanez and Roman provided some of the stolen firearms to their accomplices.

Christian Roman, age 25, of Schenectady, pled guilty in 2018 to stealing the firearms from Target Sports, and other, related charges.  He was sentenced to 150 months in prison.

Omar DeJesus, age 32, and Onic Martinez, age 34, both of Amsterdam, pled guilty in 2018 for their roles in stealing, transporting and possessing the firearms.  Both men were sentenced to 120 months in prison.

Dalmary Morales, age 24, of Schenectady, pled guilty in 2018 to stealing the firearms from Target Sports.  She was sentenced to 57 months in prison.

Juan Saez, age 37, of Rochester, pled guilty in 2018 for his role in stealing, transporting and possessing the firearms.  He is scheduled to be sentenced on March 20, 2020.

This case was investigated by the ATF, New York State Police, and the Glenville Police Department, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.

UTICA, NEW YORK – Derek Damuth, age 25, of Lowville, New York, was sentenced today to 60 months in prison by United States District Judge David N. Hurd based on his conviction for possessing with the intent to distribute in excess of 40 grams of a mixture of fentanyl and heroin, announced United States Attorney Grant C. Jaquith, Lewis County District Attorney Leanne K. Moser, Special Agent in Charge of United States Drug Enforcement Administration, New York Division (DEA) Raymond P. Donovan, and New York State Police Superintendent Keith Corlett.  Damuth was also ordered to serve four years of supervised release following his release from prison.

As part of his guilty plea in this case, Damuth admitted that in November 2018, he possessed more than forty grams of a substance containing fentanyl, 17 ounces of marijuana, additional quantities of cocaine and heroin, and drug-trafficking paraphernalia.  Damuth further admitted that he intended to distribute the drugs.

This case was investigated by the United States Drug Enforcement Administration (DEA) and the New York State Police, with assistance from the Lewis County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Nicolas Commandeur.

ALBANY, NEW YORK – Miguel Sernas, age 41, of Mexico City, Mexico, was sentenced today to time served (approximately 12 months in jail) for conspiring to steal trade secrets from the General Electric Company (GE).  Sernas was also ordered to pay restitution to GE in the amount of $1.4 million.

The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

Sernas, who pled guilty in May, admitted to conspiring with his business partner and co-defendant, Jean Patrice Delia, to compete against GE using trade secrets Delia stole from GE.  Among the stolen trade secrets were advanced computer models created and used by GE to calibrate its turbines.  Sernas and Delia used these trade secrets, as well as stolen marketing data and pricing information, to compete against GE while operating as Thermogen Power Services, a power plant performance evaluation company based in Montreal, Canada.

Sernas has been in custody since he was arrested in Detroit, Michigan, on December 3, 2018, after entering the United States on an international flight from Mexico.

Delia, age 44, and a citizen of Canada, pled guilty today to conspiring to steal trade secrets.  He is scheduled to be sentenced on April 10, 2020.

This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.

ALBANY, NEW YORK – Jean Patrice Delia, age 44, of Montreal, Canada, pled guilty today to conspiring to steal trade secrets from the General Electric Company (GE).

The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his plea, Delia, a former engineer with GE, admitted that he conspired with his business partner and co-defendant, Miguel Sernas, to compete against GE using trade secrets Delia stole from GE while employed by GE in Schenectady, New York.  Delia admitted that he and Sernas, operating as ThermoGen Power Services, used the stolen trade secrets, as well as stolen marketing data, pricing information, and other confidential GE documents, to compete against GE around the world.

Delia faces up to 10 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 April 10, 2020 by Senior United States District Judge Norman A. Mordue.  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.

Sernas, who pled guilty in May 2019, was sentenced today to time served (approximately 12 months in jail) and ordered to pay $1.4 million in restitution.

This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.

ALBANY, NEW YORK – Jovan Robinson, age 38, was sentenced on December 4 to 13 months in prison for failing to update his sex offender registration.

The announcement was made by United States Attorney Grant C. Jaquith and David L. McNulty, United States Marshal for the Northern District of New York.

Robinson was convicted of violating the federal Sex Offender Registration and Notification Act (“SORNA”), which requires a sex offender to register, and keep that registration current, wherever he or she resides. As part of his guilty plea, Robinson admitted that he was convicted of sexual abuse in the third degree in Oregon, which required him to register as a sex offender.  Robinson further admitted that he moved from Massachusetts to Albany, and lived in Albany from March 4, 2018 until his arrest on March 9, 2018 without ever registering in New York or updating his registration in Oregon.

This case was investigated by the United States Marshals Service Sex Offender Investigation Branch, the Albany Police Department, and the Albany County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Alicia G. Suarez.

This case was prosecuted 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), 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.

ALBANY, NEW YORK – Eric Soto, age 37, of Queens County, New York, pled guilty today to distributing and possessing with intent to distribute over 800 grams of heroin, as well as Oxycodone pills, in June 2018 in Albany County.

The announcement was made by United States Attorney Grant C. Jaquith, and Special Agent in Charge Ray Donovan of the U.S. Drug Enforcement Administration (DEA), New York Field Division. 

In pleading guilty, Soto admitted that in June 2018, he travelled from New York City to the Capital Region on three occasions for the purpose of distributing both heroin and Oxycodone at various locations in the Capital Region, including in Colonie, Guilderland and Watervliet.  On June 22, 2018, Soto was arrested in the parking lot of the Crossgates Mall in possession of 583 grams of heroin and 99 Oxycodone pills, which he intended to sell.  He has remained in custody since his arrest.

Soto faces at least 5 years and up to 40 years in prison, a term of supervised release of at least 4 years and up to life, and a maximum fine of $5 million, when he is sentenced on June 11, 2020 by Senior United States District Judge Fredrick J. Scullin, Jr.  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.

This case was investigated by the DEA with assistance from the Albany County Sheriff’s Office, and the Police Departments of Colonie, Guilderland and Watervliet.  The case is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.

ALBANY, NEW YORK – Keith M. Moses, age 31, of Paterson, New Jersey, was sentenced today to 43 months in prison for conspiring to distribute 100 grams or more of heroin.

The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division; Joseph Cronin, Inspector in Charge, United States Postal Inspection Service (USPIS), Boston Division; and Plattsburgh City Police Chief Levi J. Ritter.

As part of his plea, Moses admitted that between December 1, 2017 and September 5, 2018, he supplied approximately 455 grams of heroin for distribution in Plattsburgh.  On approximately 65 occasions, Moses sent heroin through the U.S. Mail from New Jersey to a co-conspirator in Plattsburgh.  Each of these packages contained, on average, 4.6 grams of heroin.  Additionally, Moses and Darcy D. Briggs transported larger supplies of heroin on at least three occasions from New Jersey to the co-conspirator in Ulster County, New York.  Each of these packages contained, on average, 23 grams of heroin.  On approximately 20 occasions, the co-conspirator travelled to New Jersey to meet with Moses and receive heroin.  Each of these packages contained, on average, 4.6 grams of heroin.  The co-conspirator distributed the heroin in the Plattsburgh area and returned a portion of the drug proceeds to Moses.

Senior U.S. District Judge Frederick J. Scullin, Jr. also sentenced Moses to serve a 3-year term of supervised release once out of prison.

Briggs was sentenced on August 30, 2019 to 21 months in prison and 3 years of supervised release for his role in the conspiracy.

This case was investigated by the DEA, United States Postal Inspection Service, and Plattsburgh City Police, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.