Western District of New York

BUFFALO, N.Y. – U.S. Attorney William J. Hochul announced today that Marlon Johnson, Jr., 25, of Kenmore, N.Y., who was convicted of possession of a firearm by a convicted felon, was sentenced to 48 months in prison by Chief U.S. District Judge William M. Skretny.

Assistant U. S. Attorney Anthony M. Bruce, who handled the case, stated that on December 16, 2011, Buffalo Police responded to a call on Emerson Street. As officers approached the area, the defendant ran from the area and a foot chase ensued. Johnson was taken into custody inside a residence on Glenwood Avenue. Officers searched a garbage tote next to the door of the residence and found a loaded .380 caliber semi-automatic pistol with a defaced serial number. The defendant later admitted that he stole the gun from another individual. 
                                               
Today’s development is the latest in a continuing series of actions aimed at the Bailey Boys Gang allegedly operating in the City of Buffalo. A total of 10 alleged members and associates of the Bailey Boys have been indicted on racketeering charges, which include multiple murders, attempted murders, robberies and narcotics trafficking.  Authorities believe that Johnson, the subject of today’s sentencing, in fact was a criminal associate of the Bailey Boys.

The sentencing is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, the Federal Bureau of Investigation’s Safe Streets Task Force.

BUFFALO, N.Y. – U.S. Attorney William J. Hochul announced today that Lycoming Construction Services, LLC, a Pennsylvania Limited Liability Company located in Williamsport, Pennsylvania, pleaded guilty before U.S. District Court Chief William M. Skretny, to violating the Clean Air Act. The charge carries a maximum penalty of a fine of $500,000, a term of probation of five years, or both.

Assistant U. S. Attorney Aaron J. Mango, who is handling the case, stated that from January 2012 to November 2013, the company was involved in the demolition of the Dahlstrom industrial complex, located at 443-499 Buffalo Street in Jamestown, N.Y.  This project involved the demolition of a cluster of condemned buildings on either side of the Chadakoin River. Prior to the start of the demolition, a survey identified that some of the buildings contained asbestos. In February 2012, employees working on behalf of the defendant entered one of the condemned buildings and removed regulated asbestos containing material without adequately wetting it, in violation of the Clean Air Act asbestos work practice standards.

The plea is the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Acting Special Agent-In-Charge, Vernesa Jones-Allen; Special Agents of the U.S. Coast Guard Investigative Service, under the direction of Special Agent-In-Charge Neal R. Marzloff; and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain David Bennett. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau.

Sentencing is scheduled for August 13, 2014, at 2:00 p.m. before Judge Skretny.

       BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Rodney Howard, 45, of Akron, N.Y., was arrested and charged by criminal complaint with importing, conspiracy to import, and smuggling into the United States, alpha-PVP, a synthetic drug also commonly known as “bath salts.” The charges carry a maximum sentence of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that according to the complaint, a quantity of bath salts were ordered over the Internet from China and addressed to a third party at the defendant’s residence in Akron.  On April 15, 2014, Howard arrived at the United States Post Office in Akron and picked up the package, which contained 14 ounces of alpha-PVP. Special Agents from Homeland Security Investigations then arrested the defendant.
The defendant made an initial appearance on April 16, 2014 before U.S. Magistrate Judge Hugh B. Scott. Howard was released on bond and is due back in court for a preliminary hearing on May 7, 2014 at 2:00 p.m.
The criminal complaint is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, and Special Agents of the U.S. Postal Inspection Service, Boston Division, under the direction of Acting Inspector in Charge, Shelly A. Binkowski.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

       ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Christopher Wheeler, 46, of Victor, N.Y., was charged in a three-count information with willfully failing to file tax returns for 2007, 2008 and 2009. The charges carry a maximum sentence of three years in prison and a $75,000 fine.

Assistant U.S. Attorney John J. Field, who is handling the case, stated that Wheeler had gross income of approximately $4,600,000 in 2007, $5,600,000 in 2008, and $1,600,000 in 2009, but failed to file timely tax returns with the Internal Revenue Service to report this income.

The charges are the culmination of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr., announced today that Tyrelis Austin, 22, of Rochester, N.Y., was charged by criminal complaint with the robbery of three Tops Marketplace stores in 2012, 2013 and 2014. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000, or both.
 
Assistant U.S. Attorney Douglas E. Gregory, who is handling the case, stated that Austin is charged with the November 25, 2012 robbery of the Tops store located at 1100 Jefferson Road in Henrietta; the July 29, 2013 robbery of the Tops store located at 3507 Mt. Read Boulevard in Greece; and, the March 28, 2014 robbery of the Tops store located at 270 East Main Street in Avon, New York. According to the complaint, on each occasion, the defendant threatened to shoot store employees if they did not comply with his request to empty the cash registers located at the service desks of each store.

After robbing the Tops store in Avon, Austin led deputies with the Monroe County Sheriff’s Department on a high speed chase on Route 390 northbound.  Ultimately, the defendant’s vehicle crashed into a ditch on Route 390 near the Chili Avenue exit. Deputies arrested Austin at the scene and discovered a large amount of cash, as well as the black hooded sweatshirt, wig and baseball cap that he wore into the store. Deputies also discovered two handwritten notes which stated “put all the money in the bag or I will shoot you.” In a post-arrest statement to police, Austin admitted his involvement in all three robberies.

Austin’s arrest follows the January 4, 2014 apprehension of the defendant’s cousin, Derek Stanin, 21, also of Rochester. Stanin is accused of robbing the Tops Marketplace store located at 3507 Mt. Read Boulevard in Greece. In that case, store clerks were able to introduce marked bills and a GPS tracker into the monies turned over to Stanin. The GPS tracker allowed law enforcement to quickly locate Stanin hiding in a parked vehicle. Police located a large sum of case as well as clothes that Stanin wore during the robbery. The defendant was also found to be in possession of a replica .357 pellet gun in his right pant leg. Similar to Austin, Stanin was also charged with robbery.

The criminal complaint is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, the Monroe County Sheriff’s Department, under the direction of Patrick O’Flynn, the Avon Police Department, under the direction of Chief Gary Benedict, and the Greece Police Department, under the direction of Chief Patrick Phelan.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

       Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Lawrence F. Brose, 62, of Buffalo, N.Y., pleaded guilty before U.S. Judge William M. Skretny, to importation or transportation of obscene matters. The charge carries a maximum penalty of five years in prison, a fine of $250,000 or both.

Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that the investigation against the defendant began after a German police agency contacted United States Immigration and Customs Enforcement and advised them that an IP address in the United States downloaded some images of suspected child pornography.  ICE Special Agents determined that the IP address was registered to Brose.  Agents met with the defendant and during the meeting, Brose admitted to viewing images. An examination of the defendant’s computer resulted in agents finding various  images, including one of a minor male less than 16 years of age engaging in sexually explicit conduct.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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 www.projectsafechildhood.gov.

The plea was the culmination of an investigation on the part of Special Agents of United States Immigration and Custom Enforcement, Homeland Security Investigations, under the direction of James C. Spero.

Sentencing is scheduled for August 13, 2014 at 10:00 a.m. before Judge Skretny .

       BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Daniel Brautlacht, 20, of Cheektowaga, N.Y., pleaded guilty before Chief U.S. District Court Judge William M. Skretny, to delay or destruction of mail. The charge carries a maximum penalty of five years in prison, a fine of $250,000 or both.

Assistant U.S. Attorney, Russell T. Ippolito, Jr., who is handling the case, stated that the defendant started working for the United States Postal Service (“USPS”) as a city carrier assistant on March 9, 2013. In this position, Brautlacht was responsible for delivering letters, postal cards, packages, bags or mail on behalf of the USPS.

On March 21, 2013, while delivering mail on Davey Street in the City of Buffalo, the defendant unlawfully secreted and destroyed 31 pieces of mail, including nine pieces of First Class mail. A neighbor on Brautlacht’s route observed the defendant discard the mail into a garbage receptacle. According to admissions made by Brautlacht, the mail had become jumbled and disorganized. Rather than re-ordering the mail, the defendant discarded it. Brautlacht committed these acts less than two weeks after starting work at the USPS.

The plea is the culmination of an investigation on the part of the U.S. Postal Service Office of Inspector General, Eastern Area Field Office, under the direction of Special Agent in Charge Monica Weyler.

Sentencing is scheduled for July 30, 2014 at 9:00 a.m. before Judge Skretny.

       ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that O’Neal Walker, 33, of Queens, N.Y., pleaded guilty to possession of counterfeit bank notes before U.S. District Court Judge Frank P. Geraci. The charge carries a maximum penalty of twenty years in prison and a fine of up to $250,000.

                Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that on September 22, 2013, New York State Troopers stopped a vehicle driven by the defendant on Interstate 390 in the town of Wayland in Steuben County. Walker was driving 102 mph in a 65 mph zone and had no valid driver’s license. Following the defendant’s arrest, troopers located $8,700 in $100 bank notes inside the car along with a financial ledger book. Inside the ledger were columns which showed dollar amounts and abbreviations for retail locations. The New York State Police contacted the United States Secret Service for investigative assistance.

Secret Service Agents determined that the 87 $100 bills recovered were actually sophisticated counterfeit bills, complete with water marks, color shifting ink, and embedded security strips. They further determined that the ledger notations were references to Home Depot, Lowes, Target, and Wal-Mart stores. As part of the investigation, Secret Service Agents reviewed store surveillance video from the dates and times of the transactions listed in the ledger. The defendant was identified on video at several area stores passing counterfeit $100 bank notes. Subsequent investigation determined that Walker had passed an additional $14,100 in counterfeit $100 bank notes within the Western District of New York. At the time the defendant passed the counterfeit bills here, he was on pre-trial release for similar conduct in the State of Ohio.

As part of the investigation, Secret Service Agents learned that Walker was also identified passing counterfeit $100 bank notes in several other states. Specifically, the defendant was identified passing $2,000 in counterfeit $100 bank notes in Ohio; $600 in counterfeit $100 bank notes in Massachusetts; $13,500 in counterfeit $100 bank notes in Syracuse, within the Northern District of New York; $19,700 in counterfeit $100 bank notes in Michigan; and $6,800 in counterfeit $100 bank notes in Arkansas. The total loss due to Walker’s actions was $65,300.

               The guilty plea is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge, Tracy Gast, and Investigators and Troopers of the New York State Police, under the direction of Superintendent Joseph A. D'Amico.

                The defendant was originally released in January 2014, but was remanded to custody after violating conditions of his pre-trial release. Walker remains in federal custody until his sentencing which is scheduled for July 10, 2014 at 3:30 p.m. before Judge Geraci.

       BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Mashama Hill, 38, of Niagara Falls, N.Y., who was convicted of being a felon in possession of a firearm, was sentenced to 48 months in prison by U.S. District Judge Richard J. Arcara.

Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that on February 13, 2011, the defendant became upset with other patrons at a card table at the Seneca Niagara Casino and threatened to leave and return with a gun. The incident was reported to security and a short time later, Hill was observed on video surveillance returning to the casino in different clothing. Security personnel approached the defendant and ultimately located a loaded firearm.

The sentencing is the culmination of an investigation on the part of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, New York Field Office, the New York State Police - Seneca Niagara Gaming Detail, under the direction of Captain Daniel B. Hart and security personnel from the Seneca Niagara Casino.

BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Emma Mills, 38, of Buffalo, N.Y., who was convicted of conspiracy to file false claims with the Internal Revenue Service, was sentenced to 30 months in prison by U.S. District Court Judge Richard J. Arcara. The defendant was also ordered to pay restitution totaling $35,519.00 to the Internal Revenue Service and $6,976.00 to the NYS Department of Taxation and Finance. 

Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that the defendant conspired with others, including John Tally, to defraud the Internal Revenue Service by creating false and fictitious W-2 forms. The forms were created by obtaining identification information from other persons. The fabricated W-2’s were submitted to the IRS with false tax returns, on which undeserved refunds and tax credits were claimed.

John Tally, 52, of Buffalo, N.Y., who was convicted of fraud and making counterfeit money, was sentenced to 30 months in prison on March 3, 2014.

“On this particular day, Americans everywhere will file their income taxes,” said U.S. Attorney Hochul. “While the vast majority of Americans discharge this obligation honestly, those who would defraud the system should know that our Office will vigorously prosecute any individuals who file false information, in an effort to obtain taxpayer funds to which they are not entitled.”

IRS Criminal Investigation Acting Special Agent-in-Charge Shantelle P. Kitchen said, “Today, as the tax season comes to a close, Americans who file honest and accurate returns can be assured that their government will hold those who do not pay their fair share accountable.  The sentencing of Ms. Mills and last month’s sentencing of her co-conspirator, John Tally, are timely examples of the resolve of IRS Criminal Investigation and the United States Attorney’s Office to investigate and prosecute those who defraud our tax system.”

The conviction is the result of an investigation on the part of Special Agents of the Internal Revenue Service, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.

       BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Patrick S. O'Mara, 52, of Buffalo, N.Y., pleaded guilty to wire fraud before Chief U.S. District Judge William M Skretny. The charge carries a maximum penalty of 20 years in prison, a $250,000 fine or both.

Assistant U.S. Attorneys Trini E. Ross and John E. Rogowski, who are handling the case, stated that on February 16, 2004, the defendant, a Buffalo Police Officer, was placed on Injured on Duty Status (IOD) by the City of Buffalo. O'Mara was placed on IOD status for exacerbation of cervical and lumbar strains previously suffered while on duty. The defendant remained on IOD status until October 18, 2004 when he was ordered to return to light duty. O'Mara again claimed to have injured his right arm on March 21, 2005 while lifting two reams of copy paper. While the defendant did not report the injury to his superiors until 23 days later, the defendant was placed on IOD status once again on September 6, 2005 where he remained until he retired.

While the defendant's primary care physician did not recommend that O'Mara return to work, several independent medical exams concluded that the defendant was not permanently disabled. One doctor noted that the defendant walked into his office using a cane, but later witnessed O’Mara walking in the parking lot without any limp. In addition, the investigation determined that the defendant worked as a paid musical director and church organist during most, if not all, of the time that he has been on IOD status. Such work would have involved the use of his right arm.

The defendant retired from the Buffalo Police Department effective March 31, 2012, following an independent medical exam and administrative hearing. During an interview with Special Agents from the Federal Bureau of Investigation on May 9, 2012, the defendant stated (among other things) that he was capable of performing light duty and had been playing the organ for a church. Nevertheless, the defendant stated there was no incentive to return to work on light duty status because, “it is demeaning to sit at a desk and answer phones and I consider it to be punishment,” and “the pay on IOD status which is without taxes is actually an incentive to stay off duty in IOD status.”

“The IOD program is an important way in which injured officers continue to receive compensation for their difficult and oftentimes heroic work,” said U.S. Attorney Hochul. “When the program is abused, however, more than taxpayers suffer. Those officers who remain faithfully at their post are forced to work longer hours, more often, and in turn have an even greater chance of experiencing injury. While the vast majority of officers are honest and exemplify the highest ideals of their profession, this Office will not hesitate to act when, as here, it finds evidence of fraud.”    

O'Mara's is one of two Buffalo Police Officers charged with defrauding the IOD Program. On May 9, 2012, Robert Quintana, who has been on IOD status since March of 2005, was arrested and also charged with mail and health care fraud. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

The plea is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.

Sentencing is scheduled July 30, 2014 at 10:00 a.m. before Judge Skretny.

BROOKLYN, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that Joseph Romano, 51, of Levittown, N.Y., was sentenced to two terms of life in prison for conspiring to murder the Assistant United States Attorney and the United States District Judge involved in his prior prosecution for fraud. The life terms of imprisonment were ordered to run consecutively to Romano’s 15-year sentence for fraud.

As the evidence proved at trial, the defendant agreed to pay $40,000 to an undercover police officer, who he thought was a hit-man, to kill the federal judge and prosecutor and also to cut off the victims’ heads in exchange for a “bonus.” In connection with the murder conspiracy conviction, the defendant also forfeited over $200,000.  

“In an attempt to subvert the justice system, this defendant attempted to murder a sitting federal judge and a federal prosecutor” said U.S. Attorney Hochul. “Originally sentenced to 15 years for fraud, Joseph Romano will now spend the rest of his natural life behind bars because of his heinous crimes. 

In February 2012, at the federal courthouse in Central Islip, New York, Romano was sentenced by the United States District Judge for the Eastern District of New York to 15 years in prison for engaging in an eight-year, multi-million dollar fraud involving the telemarketing of coins. The Assistant United States Attorney had successfully prosecuted Romano for this fraud. In August 2012, law enforcement authorities learned from another inmate at the Nassau County Correctional Center where Romano was being held that Romano was plotting to murder the United States District Judge and Assistant United States Attorney. The FBI then recorded a meeting between the inmate and Romano during which Romano described in detail his plans to torture, murder, and mutilate the United States District Judge and Assistant United States Attorney. During the subsequent investigation, two undercover law enforcement officers, posing as hit-men, met with Romano and Romano’s co-conspirator, Dejvid Mirkovic, numerous times at locations on Long Island, including the Correctional Center, to receive instructions regarding and down payments for the murders.

At the first meeting, which took place in August 2012, Romano offered to pay one of the undercover officers $3,000 to assault an individual with whom he had a financial dispute. At Romano’s direction, co-conspirator Mirkovic then met with the other undercover officer and paid him $1,500 as a down payment for the assault.  In September 2012, after one of the undercover officers showed proof of the purported assault of the intended victim - in fact, a staged photograph and an identification card - Mirkovic paid the undercover officer the $1,500 balance.

Later that same day, Mirkovic again met with the undercover officer and relayed Romano’s instructions to murder the federal judge and prosecutor. He offered $40,000 for the commission of the two murders. In addition, Romano had Mirkovic instruct the undercover that Romano wanted the federal judge and prosecutor beheaded and the body of the prosecutor mutilated. Mirkovic further relayed that Romano would pay a “bonus” for those services. Over the following weeks, the undercover officer received $22,000 in cash down payments for the murders and was promised payment of the final $18,000 when the murders were completed. At the time of the arrests of Romano and Mirkovic on October 9, 2012, law enforcement officers recovered $18,000 in cash and a loaded 9mm semi-automatic handgun at Mirkovic’s residence in Lake Worth, Florida.

In March 2013, Dejvid Mirkovic pleaded guilty to conspiracy to murder and was sentenced to 24 years in prison in August 2013. 

Today’s sentence, imposed by United States District Judge John F. Keenan, was the latest development in an investigation handled by Special Agents and Task Force Officers of the Federal Bureau of Investigation, New York Office, under the direction of Assistant Director-in-Charge George Venizelos.  The government’s case is being prosecuted by Assistant United States Attorneys Marshall L. Miller, Una A. Dean, and Brian Morris of the Eastern District of New York, under the supervision of U.S. Attorney William J. Hochul of the Western District of New York.

       BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jack Reid, III, 46, of Amherst, N.Y., was convicted following a jury trial before U.S. District Judge Richard J. Arcara, of conspiracy to possess with intent to distribute five kilograms or more of cocaine and possession with intent to distribute cocaine. The charges carry a mandatory minimum sentence of 20 years in prison, a maximum of life, and a fine of $20,000,000.

Assistant U.S. Attorneys Thomas S. Duszkiewicz and John M. Alsup, who handled the prosecution of the case, stated that beginning in 1990 through April 2012, the defendant utilized family members and others as drug couriers and distributors of multiple kilograms of cocaine. The cocaine was obtained from sources in Rochester, N.Y., New York City and Atlanta, Georgia. The cocaine was distributed in various areas throughout Erie and Niagara Counties. Throughout the course of the conspiracy, the defendant acquired and distributed in excess of 70 kilograms of cocaine.

In a forfeiture proceeding, the Government will be seeking $1,000,000 in United States currency including two residences owned by the defendant in Williamsville N.Y. and Amherst N.Y. as well as three properties in the City of Buffalo.

The verdict is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. Hunt, New York Field Division, the Lackawanna Police Department, under the direction of Chief James Michel, and the Lockport Police Department, under the direction of Chief Lawrence Eggert.

Sentencing is scheduled for August 6, 2014, at 1:00 p.m. before Judge Arcara.

       BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Osborne Young, 47, of Richmond Hill, Ontario, Canada, who was convicted following a jury trial of importing approximately 147,000 pills containing Benzylpiperazine, commonly referred to as Ecstasy, into the United States from Canada, was sentenced to 166 months in prison by U.S. District Judge Richard J. Arcara.

According to Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the prosecution of the case at trial, the defendant drove his tractor trailer and attempted to enter the United States from Canada at the Lewiston Bridge Port of Entry in April 2012. After being pulled over for secondary inspection, Customs and Border Protection Officers discovered approximately 147,000 Ecstasy pills concealed in the refrigeration unit of the tractor trailer. The estimated value of the pills was at least $1,500,000.

The sentencing is the result of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero and U.S. Customs and Border Protection, under the direction of Randy Howe, Director of Field Operations.

BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Leo Mellerson, of Buffalo, N.Y., who was convicted of conspiracy to distribute and distribution of crack cocaine, was sentenced to 15 months in prison by U.S. District Court Judge, Richard J. Arcara.
 
Assistant U.S. Attorney Mary Clare Kane, who handled the case, stated that between 2000 and February 2012, Theresa Anderson headed an illegal narcotics drug trafficking organization that controlled drug sales on Swinburne and Deshler Streets in the City of Buffalo. The defendant employed several family members to sell crack cocaine on a daily basis in the neighborhood. Among them, Mellerson, who is the boyfriend of her daughter Toshia Anderson. On October 26, 2011, Mellerson sold crack cocaine to an undercover police officer on two separate occasions.

In order to monopolize narcotics sales in the area, Theresa Anderson threatened and intimidated rival narcotics traffickers and even purchased several homes in the area which were used for selling and storing the illegal narcotics.

“Today’s sentencing brings to a conclusion the successful prosecution of this group of individuals who attempted to destroy a city neighborhood,” said U.S. Attorney Hochul. “Theresa Anderson, a wife, mother and grandmother, destroyed not only her family through her illegal narcotics trafficking but also the streets where the drug trafficking took place.”

As part of this case, the Government seized over $50,000 in U.S. Currency and approximately nine houses used by the drug organization. 

Theresa Anderson was sentenced to 188 months in prison in November 2013. She was arrested in February 2012 along with eight others including Leo Mellerson, Steven Butler, Dion Anderson, Melvin Calhoun, Anquensha Hodge, Wymiko Anderson, Toshia Hodge, and Tajia Anderson. Five of these are either children or grandchildren of Anderson. A sixth defendant is Anderson's husband and the two others are boyfriends of Andersons' daughters. All nine defendants have been convicted and sentenced.

The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the New York State Police, Special Investigations Unit, under the direction of Major Thomas G. Marmion.

BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that three websites that sold illegal and potentially dangerous controlled substances and analogues were seized by federal law enforcement officers. The United States Attorney’s Office obtained seizure warrants from U.S. Magistrate Judge Hugh B. Scott which were then executed by Special Agents from Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI).

The websites seized and shut down are:

o             kerrypharm.com o             kaseeypharm.com o             kx-researchchem.com

According to Assistant U.S. Attorney Richard D. Kaufman, who is handling the case, over the course of the past year, HSI Special Agents in Western New York and across the country have been investigating the proliferation of illegally controlled substances purchased from numerous websites operated by Chinese businesses.

“Websites such as these are nothing more than technologically enhanced, street corner drug dealers,” said U.S. Attorney Hochul. “We have often warned the public about purchasing knock off goods online.  When it comes to substances which are intended for human consumption, such purchases become a life and death situation.”

“Seizing these websites that openly sell illegal narcotics helps to stem the flow of drugs to communities in Western New York,” said James Spero, Special Agent in Charge of HSI Buffalo. “We will continue to aggressively target and dismantle these operations that pump poison onto our streets.”

The HSI investigation included several undercover buys from the websites and arrests of numerous individuals throughout the United States who were purchasing the illegal substances in order to re-sell the drugs on the streets. The websites listed over 20 different synthetic narcotics available for sale, including schedule I and III controlled substances and analogues. Some of the drugs purchased included Fentanyl, Bath Salts, and Methylone.

U.S. Attorney Hochul pointed to the following examples where death or near death situations have occurred, linked to websites similar to the ones seized by HSI: 

In August of 2013, a man and a woman were found dead in a Hamburg, N.Y. residence. Autopsies confirmed that the man and woman died of acute intoxication from MT-45, an opioid analgesic drug, and ethanol. Authorities believe these substances came from China.

In October, 2013, a 17 year old girl from Western New York suffered multiple seizures and wound up in a coma after taking Methylone. She has since recovered. Authorities believe the Methylone came into this area after being purchased from a Chinese website.

The seizures are the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.

       BUFFALO, N.Y.—The United States Attorney’s Office for the Western District of New York is commemorating National Crime Victim’s Rights Week. The week of April 6-12 commemorates our nation’s progress in advancing victims’ rights. This year’s theme—30 Years: Restoring the Balance of Justice—celebrates three decades of defending victims’ rights.

“As the chief law enforcement office in the Western District of New York, it is our job to enforce federal laws and bring criminals to justice,” said U.S. Attorney William J. Hochul, Jr. “While we will continue to focus on solving crime, we need be mindful that victims of crime often continue to suffer long after the jailhouse doors have been closed on the perpetrator. This week serves as an opportunity to commemorate victims nationwide, and to also give thanks for all who work on behalf of the oppressed and mistreated.”

In 1984, Congress passed the bipartisan Victims of Crime Act (VOCA), which created a national fund to ease victims’ suffering.  Financed, not by taxpayers, but by fines and penalties paid by offenders, the Crime Victims Fund supports victim services, such as rape crisis and domestic violence programs and victim compensation programs that pay many of victims’ out-of-pocket expenses from the crime, such as counseling, funeral expenses, and lost wages.

The nation has made dramatic progress in securing rights, protections, and services for victims in other ways as well. Every state has enacted victims’ rights laws and all have victim compensation programs. More than 10,000 victim service agencies now help people throughout the country.

The following are examples of cases prosecuted by the United States Attorney’s Office in the last year which benefit victims of crime:

U.S. v TONAWANDA COKE

The Tonawanda Coke Corporation, which was convicted of 11 counts of violating the Clean Air Act and three counts of violating the Resource Conservation and Recovery Act by a federal jury in March 2013, was sentenced to pay a $12.5 million fine and five years probation. Tonawanda Coke also must pay $12.2 million to fund two environmental studies to help determine the extent of health and environmental impacts Tonawanda Coke has had in the community. In addition, Tonawanda Coke Environmental Control Manager, Mark L. Kamholz, 66, of West Seneca, N.Y., who was convicted of 11 counts of violating the Clean Air Act, one count of obstruction of justice and three counts of violating the Resource Conservation and Recovery Act, was sentenced to 12 months in prison and a $20,000 fine.

U.S. v ZAVERI

Ashvin Zaveri of Honeoye Falls, N.Y. was indicted on 16 counts of mail fraud, wire fraud and money laundering. Zaveri was specifically accused of defrauding investors who had invested approximately $35,000,000 in oil and natural gas exploration partnerships in Tennessee and Kentucky through his company Zaveri Oil & Gas, Ltd. The defendant died on August 27, 2010, a week before his plea was scheduled and the criminal case was abated.  Nevertheless, the government was able to recover $8,938,322.93, most of which was returned to victims.

U.S. v GIZZI

John P. Gizzi was convicted of filing false tax returns in 2008 and 2009. In addition, a corporation owned by Gizzi, Rochester Machinery Suppliers, Inc., was convicted of aiding and abetting the preparation of a false tax return. The defendant paid a total of $11,525,064 to the Government as fines and restitution in this case.

In addition to successful prosecutions in the courtroom, the Western District of New York collected $75,146,101 in criminal and civil actions and provided assistance to over 50,000 victims in Fiscal Year 2013. Criminal actions, which include fines and restitution, totaled $20,142,677.26, $20,004,017 of which was returned to victims of crime. The Office also collected $55,003,424 in civil actions, which include proceedings involving health care fraud, government fraud, foreclosures and more. These collections highlight the daily effort by our Office to ensure that victims are heard by the court and receive the restitution to which they are entitled.

In addition to these significant financial recoveries, the Office also helped numerous victims of crime as a result of multiple successful prosecutions involving violent crime, human trafficking, fraud, identity theft and more.

       BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Adalid Ayala, 39, a Mexican native living in Chicago, Illinois, who was convicted of conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine, was sentenced to 130 months in prison by U.S. District Judge Richard J. Arcara.  

Assistant U.S. Attorney Thomas S. Duszkiewicz, who is handling the case, stated that on February 13, 2012, the Buffalo Office of the Drug Enforcement Administration received a telephone call regarding an alleged drug trafficking conspiracy transporting and distributing 50 kilograms a month from Chicago to Buffalo. That information resulted in the arrest of seven defendants, including Ayala, all of whom have been convicted.

Also during the investigation, agents seized more than $550,000 in cash, approximately two kilos of cocaine, other drug paraphernalia, four weapons, and a Ford Mustang.

The conviction is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division.

ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Brian Campbell, 74, of Rochester, N.Y., who was convicted of conspiring to launder money, was sentenced to one year of home confinement and five years probation by U.S. District Judge Frank P. Geraci.

Assistant U.S. Attorney John J. Field, who handled the case, stated that the defendant worked for Kenneth Griffin, a co-defendant who was convicted in May 2013, at an employment staffing business that was used to commit fraud. The fraud involved creating false invoices and other supporting documents that the defendant then sold to a series of financing companies on a weekly basis for immediate cash. When a financing company realized that it had been sold uncollectible invoices and stopped dealing with Griffin's business, the defendant would change business names and continue the scheme with another financing company.

Griffin and others involved in the conspiracy sought to conceal their ill-gotten gains, which totaled approximately $567,000, by laundering the proceeds of the fraud using anonymous debit cards. These cards were provided to lower-level employees, who were directed to go to ATMs in the Rochester area to withdraw cash and return with the money, which was shared among the co-conspirators. Kenneth Griffin was sentenced to 46 months in prison.

The sentencing is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office, and the Federal Bureau of Investigation.

       ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a three-count indictment charging Brian Leonard, 44, and his wife, Nancy Cedeno, 44, both of Rochester, N.Y., of conspiracy to commit wire fraud and wire fraud. The charges each carry a maximum penalty of 20 years in prison, a fine of $250,000 or both.

Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that according to the indictment, the defendants used online, e-commerce sites, including eBay.com and Amazon.com, to sell stolen merchandise to unwitting buyers. Leonard and Cedeno are accused of using their business, Rochester Consignment Broker, a consignment business in Rochester, to purchase goods and merchandise that they knew to be stolen. The couple then advertised and sold or attempted to sell the items to buyers online, all while falsely representing that they had lawful ownership of the goods.

The indictment is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, and members of the Rochester Police Department, under the direction of Chief Michael Ciminelli.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

       BUFFALO, N.Y.B U.S. Attorney William J. Hochul, Jr. announced today that Kristina Thomas, 42, of Columbus, Georgia, formerly of Buffalo, N.Y., who was convicted of bank fraud and aggravated identity theft following a jury trial, was sentenced to 32 months in prison by U.S. District Court Judge Richard J. Arcara. The defendant was also ordered to pay restitution in the amount of $6,473.
 
Assistant U.S. Attorneys Edward H. White and Maura K. O'Donnell, who handled the trial of the case, stated that in 2005 and 2006, while the defendant was an employee of HSBC Bank, she and others came into possession of checks and a credit card from HSBC Bank. The checks and credit card were obtained using stolen identifying information of a woman from Illinois. Thomas and others then recruited individuals to cash the checks at various banks in Buffalo. The defendant also caused the credit card to be used at various retailers in Buffalo.

The sentencing is the culmination of an investigation on the part of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Shelly Binkowski.

       BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Bernard T. Grucza, 38, of Elma, N.Y., pleaded guilty to possession of a firearm by a person subject to as domestic violence order of protection before Chief U.S. District Court Judge William M. Skretny. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.

Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, the defendant made false written statements to Big Daddy Guns in order to obtain a Ruger .380 caliber pistol. Between July 13, 2013 and October 16, 2013, the defendant possessed the  pistol despite being the subject of a restraining order issued by Elma Town Court. In addition, Grucza made false statements to Special Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives that he had destroyed the pistol and thrown out the parts when in fact he had not.      

As part of his plea, the defendant admitted to stealing over $200,000 worth of merchandise and cash from his employer, Toys R Us. Grucza then sold the merchandise on eBay. The plea agreement require the defendant to pay restitution to Toys R Us in the amount of $223,000.

The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, the Federal Bureau of Investigation, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, and the Hamburg Police Department, under the direction of Michael Williams.

Sentencing is scheduled for July 23, 2014 at 11:00 a.m. before Judge Skretny.

       BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Eric Ross, 24, of Buffalo, N.Y., pleaded guilty to conspiracy to possess with intent to distribute 280 grams or more of cocaine base within the Perry Housing Projects before Chief U.S. District Judge William M. Skretny. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life and a $10,000,000 fine.
 
Assistant U.S. Attorney Timothy C. Lynch, who is handling the Perry Projects case, stated that the investigation focused on the drug trafficking activities of Tyshawn Bradley, Darnell Brown, Dallas McLamore and their associates. According to the indictment, Bradley, Brown, McLamore and Eric Ross operated a cocaine base and cocaine distribution organization on a daily basis out of several apartments within the Perry Housing Projects, including apartments within the high-rise towers located at 124 Fulton Street and 305 Perry Street. Law enforcement utilized court ordered wire interceptions, undercover drug purchases, covert cameras and traditional police investigative techniques to infiltrate and dismantle this organization.

On April 3, 2013, law enforcement officers executed search warrants at 124 Fulton Street and 305 Perry Street during which they recovered over 300 grams of cocaine base and 700 grams of powered cocaine as well as a firearm.

“A year ago, we stated that we would not permit anyone to threaten the safety and security of people living in public housing,” said U.S. Attorney Hochul. “Thanks to this prosecution, children are now safe to play both inside and outside the Perry apartments, while residents can live in peace knowing that Eric Ross and others who sold drugs in these units have been convicted.”

Ross was arrested in April 2013 along with 12 others including Tyshawn Bradley, 28, and Nannette Brown, 45, both of Cheektowaga, N.Y., Darnell Brown, a/k/a D, 29, Dallas McLamore, a/k/a Ice, a/k/a Dal, 29, Brandon Atkins, a/k/a YB, 27, Tashawn Gay, 23, Melvin Tucker, a/k/a Hoff, 24, David Varner, 55, Latifah Donaldson, a/k/a LaLa, 22, Tara Robinson, a/k/a Coek, 24, and Phayon Redmond, a/k/a Booper, 28, all of Buffalo. Ross is the second defendant to be convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation Safe Streets Task Force, the New York State Police, under the direction of Major Matthew Renneman, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.

Sentencing is scheduled for August 13, 2014 at 9:00 a.m.

       Rochester, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that a jury has convicted Michael C. Kaufman and his son, Richard A. Kaufman, both of Pittsford, N.Y., of conspiracy to commit bank fraud, bank fraud and loan fraud. The charges carry a maximum penalty of 30 years in prison, a fine of $1,000,000 or both.

Assistant U.S. Attorneys Bradley E. Tyler and Craig R. Gestring, who handled the trial of the case, stated that between 2002 and November 2007, the defendants directed the Controller of American Industrial Sales, d/b/a RAK Industries, to provide false financial statements to Key Bank, and to the company’s outside accounting firm. The false financial statements significantly overvalued the accounts receivable and inventory, which were the two assets that Key Bank relied upon as collateral for a total loan credit of $2,000,000.

The loan proceeds were used by the defendants to fund their personal lifestyles including expensive homes, generous salaries and country club memberships. After the defendants defaulted on the Key Bank loan in the summer of 2007, they converted to their personal use approximately $53,000 of accounts receivable proceeds that were the property of Key Bank. As a result of the fraud scheme, Key Bank suffered an immediate loss of over $1.5 million.

The conviction is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.

Sentencing is scheduled for July 16, 2014, at 3:00 p.m. before Judge Geraci.

       ROCHESTER, N.Y.—Jodia Campbell, 32, Laree Greggs, 37, and Jennifer Miller, 26, all of Rochester, New York, were charged with various felonies including the transportation of a minor in interstate commerce to engage in prostitution and sex trafficking of a minor, United States Attorney  William J. Hochul, Jr. of the Western District of New York announced today.  Sex trafficking of a minor and the transportation of a minor in interstate commerce to engage in prostitution each carries a mandatory minimum penalty of 10 years imprisonment and a maximum penalty of life imprisonment and a fine of $250,000. The transportation of individuals in interstate commerce to engage in prostitution carries a maximum of penalty of 10 years and a fine of $250,000.

Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the complaints, in April 2013, Rochester Police began investigating the alleged prostitution of a 16 year old female from Rochester, NY, using the name “Cherry Red” on backpage.com in Pennsylvania.  According to the complaint, the 16-year-old alleged that she was recruited by Miller and taken to New Jersey and Pennsylvania to engage in prostitution by Miller, Campbell and Greggs.  Other adult individuals also alleged having been transported by Greggs, Miller and Campbell at various times, out of state, to prostitute.  Investigators reviewed backpage.com ads and found contact information associated with Miller, Campbell and Greggs.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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 www.projectsafechildhood.gov.

The criminal complaint was the culmination of an investigation on the part of the FBI's Cyber Task Force,  which includes the Rochester Police Department under the direction of Chief  , the Monroe County Sheriff’s Office under the direction of Chief Patrick O’Flynn and Special Agents of the Federal Bureau of Investigation, under the direction of Brian Boetig, Special Agent in Charge.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

       ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Anthony Grimes, 29, of Rochester, N.Y., pleaded guilty before U.S. District Judge Charles J. Siragusa to possession with intent to distribute crack cocaine. The charge carries a maximum penalty of 30 years in prison, a fine of $2,000,000 or both. The defendant, a convicted felon on federal supervised release, also pleaded guilty to violating the terms of his supervision. Under the terms of the plea agreement, Grimes will receive a sentence of 204-235 months in prison.

Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that Grimes was arrested October 2, 2013 after U.S. Probation officers searched his residence at 7 Grace Street in Rochester. During the search, officers seized crack cocaine packaged for street sale, a loaded, Beretta .380 Auto caliber semiautomatic pistol, $220 in U.S. currency, and a digital scale all secreted in a women’s purse. Officers also seized additional drug trafficking paraphernalia, including packaging material in the residence.

The conviction is the culmination of an investigation on the part of the United States Probation Office for the Western District of New York, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special  Agent in Charge Thomas J. Cannon, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.

Sentencing is scheduled for July 9, 2014 at 10:15 a.m. before Judge Siragusa.

BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that David Johnson, 41, of North Tonawanda, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to aggravated identity theft. The charge carries a mandatory minimum of two years in prison and a fine of $250,000.

In addition, Calvina Myles, 27, also of North Tonawanda, pleaded guilty before Judge Arcara, to bank fraud. That charge carries a maximum sentence of 30 years in prison and a fine of $1,000,000.

                Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that between September 2012 and March 2013, Johnson and Myles used the names and personal identification information of two individuals to apply for two Capital One credit cards in those names. The defendants, and a third co-conspirator, Avery Gill, purchased merchandise and gift cards from retail stores using the credit cards. Johnson also accompanied Gill who made ATM withdrawals using the credit card. As a result of this conduct, Capital One suffered a loss of $29,429.16.

                Charges are pending again defendant Gill. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

                The pleas are the culmination of an investigation on the part of the U.S. Postal Inspection Service, Boston Division, currently under the direction of Acting Inspector in Charge, Shelly A. Binkowski.

                Myles’ sentencing is scheduled for July 17 at 1:00 p.m. before Judge Arcara. Johnson will be sentenced on August 4, 2014, at 1:00 p.m., also before Judge Arcara.

BUFFALO, N.Y. – U.S. Attorney William J. Hochul announced today that Brian Scott, 33, of North Tonawanda, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to being an accessory after the fact to a false statement under the Clean Air Act. The charge carries a maximum penalty of one year in prison, a fine of $125,000 or both.

Assistant U. S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant was employed by JMD Environmental, Inc. (JMD) as an air sampling technician and a project monitor, and was certified by the New York State Department of Health to conduct asbestos project monitor and air sampling duties. From June 9, 2009 to January 11, 2010, co-defendants Johnson Contracting of WNY, Inc. (Johnson Contracting), Ernest Johnson, and Rai Johnson, conducted asbestos abatement activities at six buildings at the Kensington Towers Apartment Complex in Buffalo. During the abatement process, co-defendant Rai Johnson created daily project logs to document the progress at Kensington Towers. The logs are documents required to be maintained under the Clean Air Act.

During the abatement for building A-1 by Johnson Contracting, Rai Johnson wrote in his daily project log that all floor tiles containing asbestos had been removed from the building, when in truth, all asbestos floor tiles had not been removed. Thereafter, on July 7, 2009, the defendant conducted a visual inspection of building A-1 for floor tile and issued a satisfactory visual inspection, when in truth, the defendant was aware that all asbestos-containing floor tiles had not been removed. In doing so, the defendant acted as an accessory after the fact to the false statement made by the Johnson defendants.

This is the third defendant to plead guilty as part of the Kensington Towers asbestos abatement project. In addition to Ernest and Rai Johnson, other charged defendants include JMD project monitors Chris Coseglia, Henry Hawkins and Evan Harnden, and current and former public officials responsible for certifying the project’s compliance with applicable laws and regulations, including Donald Grzebielucha, William Manuszewski, and Theodore Lehmann. The remaining defendants are scheduled to go on trial May 13, 2014 before U.S. District Court Judge Richard J. Arcara. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

                                                                                               
The plea is the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Acting Special Agent-In-Charge, Vernesa Jones-Allen; Special Agents of the Federal Bureau of Investigation, Special Agents of the U.S. Department of Housing and Urban Development - Office of Inspector General, under the direction of Special Agent-In-Charge Christina Scaringi; and Investigators of the New York State Department of Environmental Conservation Police, Bureau of Environmental Crimes Investigation, under the direction of Captain Frank Lauricella. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau.

Sentencing is scheduled for August 8, 2014, 2014 at 12:30 p.m. before Judge Arcara.

       Rochester, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that William H. Schliebener, Jr., 51, formerly of Sanford, NC, pleaded guilty before U.S. District Judge Frank P. Geraci, Jr., to transporting a minor in interstate commerce for the purpose of illegal sexual activity and production of child pornography. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, a fine of $250,000 or both.

Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that the defendant came to the attention of law enforcement in October 2010 when a young Canandaigua girl was reported missing. Members of the Canandaigua Police Department and the Lee County, North Carolina Sheriff’s Department found the child with the defendant in North Carolina. As part of his plea, Schiebener admitted to transporting the child from Canandaigua to North Carolina with the intent to engage in illegal sexual activity. Following the discovery of the child, a search warrant was executed at the defendant’s residence in North Carolina, and officers seized computers and digital media. Forensic analysis of the media revealed images of the defendant engaged in sexual activity with three children. As part of his plea, Schliebener also pleaded guilty to three counts of producing images of child pornography.

The defendant was scheduled to go to trial on the charges on Monday, April 7, 2014.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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 www.projectsafechildhood.gov.

The plea was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, members of the Canandaigua Police Department, under the direction of Chief Jonathan P. Welch, and members of the Lee County, North Carolina Sheriff’s Department, under the direction of Sheriff Tracy L. Carter.

Sentencing is scheduled for July 10th, at 3:00p.m. before of Judge Geraci.

       ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Annette Kendrick, of Marietta, Georgia, pleaded guilty before U.S. Magistrate Judge Marian W. Payson, to a charge of recklessly causing damage to a protected computer. The charge carries a maximum penalty of one year in prison, a fine of $100,000 or both.

Assistant U.S. Attorney, Bradley E. Tyler, who is handling the case, stated that the defendant intentionally and without authorization logged into the computer domain of a Rochester company. After logging on, Kendrick caused modifications to various job applications, job postings and job posting requirements. As part of the unauthorized intrusion, the defendant caused e-mails with false information to be sent to outside employment agencies about the company’s job postings, and to job applicants, saying that they were no longer being considered for a position. Kendrick’s unauthorized intrusion caused the company to incur costs of $50,034.96 to investigate, repair and re-secure the company’s computer domain.

The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.

Sentencing is scheduled for August 6, 2014, at 11 a.m. before Magistrate Judge Payson.

BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Darnele Nelson, 32, of California, who was convicted of possession of 15 or more unauthorized access devices, was sentenced to 36 months in prison and ordered to pay restitution totaling $1,722.91 by U.S. District Court Judge Richard J. Arcara.

                Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated the defendant was in possession of 109 unauthorized credit, debit and gift cards and a magnetic card reader/writer device when he was refused entry into Canada on May 13, 2013. Nelson traveled from Nevada to Ohio, Maryland, Pennsylvania and New York before he attempted to travel to Canada. 

                The sentencing was the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and Customs and Border Protection, under the direction of Randy Howe, Director of Field Operations.

       BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Besari Torres, 37, of Buffalo, N.Y., who was convicted of possession with intent to distribute cocaine, was sentenced to three years probation including six months home detention by U.S. District Judge Richard J. Arcara.

Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that on September 29, 2011, the defendant, at the direction of her husband and co-defendant Victor Marshall, sold cocaine to a confidential informant on Albany St. in Buffalo. Victor Marshall Was convicted of a controlled substance offense and will be sentenced on May 16, 2014.

The sentencing is the culmination of an investigation by the Safe Streets Task Force, under direction of the Federal Bureau of Investigation.

       BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Willie G. Reid, 46, of Olean, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to possession of child pornography. The charge carries a maximum sentence of 10 years in prison, a fine of $250,000 and a term of supervised release of at least five years to life.

                Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that on May 2, 2013, Reid was in possession of images and videos of child pornography on his computer at his residence in Olean. The defendant possessed over 600 image and video files of child pornography. Some of the files images depicting violence, and some of the children shown in the images and videos were prepubescent and under the age of 12 years. Reid used peer-to-peer software to download child pornography and shared it with others. 

                This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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 www.projectsafechildhood.gov.

                The plea was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.

                Sentencing is scheduled for August 4, 2014 at 1:00 p.m. before Judge Arcara.

BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Jonathan O. Dale, 62, formerly of Clarence, N.Y., who was convicted of failure to pay child support, was sentenced to six months in prison by U.S. Magistrate Judge H. Kenneth Schroeder. The defendant was also ordered to pay restitution totaling $73,250.85.

Assistant U.S. Attorney Marie P. Grisanti and Maura O’Donnell, who handled the case, stated that from May of 1999 and continuing through to the present, Dale has failed to pay court ordered child support obligations and arrears totaling approximately $90,000.

The sentencing is the result of an investigation on the part of Special Agents of the United States Department of Health and Human Services, Office of Inspector General, Office of Investigations, under the direction of Special Agent in Charge Thomas O’Donnell.

       BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Mohamed Taher, 35, of Lackawanna, N.Y., who was convicted following a jury trial of operating a continuing criminal enterprise, conspiracy to import marijuana into the United States, conspiracy to possess with intent to distribute marijuana, false statements and aggravated identity theft, was sentenced to 25 years in prison by Chief U.S. District Judge William M. Skretny.

Assistant U.S. Attorneys Timothy C. Lynch and Joel L. Violanti, who handled the case, stated that between late 2005 and May of 2007, Taher ran a long running, multi-faceted criminal enterprise that employed multiple narcotics traffickers. Taher and the enterprise imported marijuana into the United States from Canada, and then distributed the marijuana to others in Detroit, Chicago and Buffalo. In furtherance of the defendant’s enterprise, Taher utilized fraudulent identifications to enter into Canada to meet with his associates and his marijuana supplier. In doing so, Taher made false statements to Customs and Border Protection Officers when he claimed to be another individual when he was encountered at the U.S.-Canada border.

Defendants Abdulfatah Mosed, Salah Mohamed Ahmed, Basheer Saleh, Yasin Abdulla and Bradley Parry were previously convicted of conspiracy to possess with intent to distribute marijuana.

The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Customs and Border Protection, under the direction Randy Howe, Acting Director of Field Operations, the New York State Police, under the direction of Major Michael Cerretto, the Michigan State Police and the Willoughby Hills, Ohio Police Department.

       BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr., announced today that Angel Gonzalez, 38, of Buffalo, N.Y., pleaded guilty before Chief U.S. District Judge William M. Skretny, to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum 40 years, a fine of $5,000,000.00, or both.

Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between 2006 and December 2010, the defendant conspired with two co-defendants to possess and distribute cocaine in Buffalo. The defendants stored cocaine and the proceeds of drug sales at Gonzalez’s residence on Auburn Avenue in Buffalo. The defendant was paid for allowing the money and drugs to be stored at his residence.

“This case should serve as a reminder to criminals that you don’t have to be the individual selling drugs in our community to be arrested,” said U.S. Attorney Hochul. “If you assist others in filling the streets with dangerous and potentially deadly narcotics, you will be prosecuted as if you committed the crime yourself.”

The defendant was arrested in December 2012 along with Renwick Samuel and Mica Donadelle. Charges are pending against Samuel and Donadelle. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.  

The plea is the culmination of an investigation on the part of the Safe Streets Task Force of the Federal Bureau of Investigation.

Sentencing is scheduled for July 16, 2014 at 10:00 a.m. before Judge Skretny.

       BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Nelson Areizaga-Rosa, 38, and Ricardo Ortiz-Rosa, 42, both of Connecticut, who were convicted of conspiracy to possess with intent to distribute 500 grams or more of cocaine, were each sentenced to 180 months in prison by Chief U.S. District Judge William M. Skretny.

Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that on March 17, 2011, the defendants were stopped for speeding by a Chautauqua County Sheriff’s deputy on I-86 in the Town of Ellicott. The defendants, who are cousins, were later arrested along with two other individuals.

Law enforcement officers subsequently discovered $60,000 in U.S. currency secreted in the spare tire of the vehicle the defendants were riding in, money that represented the proceeds from the sale of two kilograms of cocaine. Officers also seized more than a kilogram of heroin, a quantity of cocaine, and multiple firearms. An additional four defendants were also arrested. During a search warrant later executed at a residence in Campbell, Ohio, officers recovered another $205,000 in U.S. currency. Five vehicles were also seized during the course of the narcotics investigation.   

All eight defendants in this heroin trafficking investigation have been convicted.  

The sentencings are the culmination of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Field Division, the Southern Tier Regional Drug Task Force, under the direction of Chautauqua County Sheriff’s Lieutenant David Bentley, the Chautauqua County Sheriff’s Department, under the direction of Sheriff Joseph Gerace, and the Jamestown Police Department, under the direction of Harry Snellings.

       BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Kevin Zimmerman, 24, of Cheektowaga, N.Y., who was convicted of being an armed career criminal in possession of a firearm, was sentenced to 180 months by Chief U.S. District Judge William M. Skretny.

According to Assistant U.S. Attorney George C. Burgasser, who handled the case, the defendant was previously convicted in State Court in 2010 of four counts of Attempted Burglary. Zimmerman then stole two firearms during the commission of burglaries in 2012 making him a felon in possession of firearms which he then sold to Gander Mountain and the Buffalo Gun Center.

The sentencing is the culmination of an investigation on the part of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the U.S. Marshal’s Violent Felony Fugitive Task Force, under the direction of Marshal Charles Salina and the New York State Parole Division, under the direction of Commissioner Jeffrey Fischer.

       ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr., announced today that Tyrus Harris, 36, of the Bronx, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci, Jr., to conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum 40 years, a fine of $5,000,000.00, or both.

Assistant U.S. Attorney Frank H. Sherman, who handled the case, stated that the defendant participated in a conspiracy to distribute cocaine from 2005 until August 2012. During the time period of the conspiracy, in New York City, Harris arranged for the distribution of quantities of cocaine with others to individuals who were transporting the drugs to Rochester and distributing them. The defendant admitted that at least 3.5 kilograms of cocaine was involved in this conduct.

The plea is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, investigators with the Rochester Police Department, under the direction of Chief Michael Ciminelli, and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.

Sentencing is scheduled for June 30, 2014, at 4:00 p.m. before Judge Geraci.

BUFFALO, N.Y - - U.S. Attorney William J. Hochul, Jr. announced today that Jason Zaifert, 33, of Buffalo, N.Y., was arrested and charged by criminal complaint with possession of child pornography. The charge carries a maximum penalty of 10 years in prison and a fine of $250,000.

Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that law enforcement officers executed a search warrant at defendant’s residence during which they seized various electronic items. Among the items seized, a computer that contained images of child pornography.

The defendant made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and is being detained.

The arrest is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent in Charge.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

       BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that John Rickard, 48, of Buffalo, N.Y., pleaded guilty to possession of a firearm in furtherance of drug trafficking, before U.S. Magistrate Judge Leslie G. Foschio. The charge carries a mandatory minimum penalty of five years in prison, a maximum of life, and a $250,000 fine. 

Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that on November 9, 2009, Buffalo Police officers executed a search warrant at the defendant’s residence, located at 254 Laird Avenue in Buffalo. During the search, officers located approximately 96 grams of cocaine, packaging material, approximately $58,307 in United States currency and three firearms. A Buffalo Police canine gave a positive alert for the presence of narcotics on the currency.

The plea is the culmination of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, New York Field Division and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.

A sentencing date has not been scheduled.

       ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Albert L. Sturgis, 51, of Rochester, N.Y., who was convicted of conspiracy to possess with intent to distribute and distribute five kilograms or more of cocaine, 50 grams or more of cocaine base, and one kilogram or more of heroin and money laundering, was sentenced to 130 months in prison and 10 years of supervised release by U.S. District Judge Charles J. Siragusa.

Assistant U.S. Attorney Jennifer M. Noto, who handled the case, stated that the defendant was a well-known drug dealer operating primarily on the West side of the City of Rochester and was responsible for the distribution of numerous kilograms of cocaine in the Rochester area. Sturgis and 11 others were arrested in February 2010 after a nearly year-long investigation conducted by Federal and State authorities and involving the court-authorized interception of wire communication on cellular telephones utilized by the defendant and others in the drug conspiracy. All 12 defendants have been convicted, Sturgis is the eighth defendant to be sentenced. This is Sturgis’ third felony drug conviction. 

The sentencing is the culmination of a multi-agency investigation under the Organized Crime Drug Enforcement Task Force (OCDETF) initiative. Federal and State law enforcement agencies, including Special Agents of the Bureau of Alcohol Tobacco Firearm and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, Special Agents of the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. Hunt, Special Agents of the Criminal Investigation Division of the Internal Revenue Service, Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office, and officers from the Rochester Police Department, under the direction of chief Michael Ciminelli, worked in concert with the United States Attorney's Office in the year-long investigation.

       Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that 10th Street Gang member Tony Peebles, 27, of Buffalo, N.Y., pleaded guilty to Racketeering Influenced Corrupt Organizations (RICO) and discharging a firearm during a crime of violence before U.S. District Judge Richard J. Arcara. The charges carry a minimum penalty of 10 years in prison, a maximum of life, a $250,000 fine or both. 
 
“For the past several years, this office has been relentless in its pursuit of violent gang members and narcotics traffickers,” said U.S. Attorney Hochul. “The results speak for themselves with more than a hundred fifty predators behind bars, dozens of violent crimes solved and ever declining violent crime rates across the District. Let today's developments and likely sentence be heard loud and clear by any remaining gang members- your days are numbered.”

Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the defendant participated in seven shootings during which eight victims were struck by bullets, some suffering life threatening injuries. Between 2000 and 2010, Peebles was a member of the 10th Street Gang. As a part of their involvement in the gang, the defendants, along with other members and associates of the gang, committed violence, possessed firearms, and sold marijuana, cocaine, crack cocaine, and other controlled substances on the West Side of Buffalo. The violent acts by members of the 10th Street Gang included two murders.  

The defendant is among 44 10th Street Gang members and associates charged in this case. A total of 38 have been convicted. Charges are pending against the six remaining defendants. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano.

Sentencing is scheduled for July 30, 2014 at 1:00 p.m. before Judge Arcara.

CONTACT:       Barbara Burns
PHONE:          (716) 843-5817
FAX:             (716) 551-3051
 

Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that 10th Street Gang member Charles Watkins, 33, of Buffalo, who was convicted of RICO conspiracy, was sentenced to 65 months in prison by U.S. District Judge Richard J. Arcara.      

Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that between 2000 and 2010, the defendant was a member of the 10th Street Gang. As a part of his involvement in the gang, Watkins, along with other members and associates of the gang, sold marijuana, cocaine, crack cocaine, and other controlled substances on the West Side of Buffalo.

The defendant is among 44 10th Street Gang members and associates charged and convicted in this case.

The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.

       Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that 10th Street Gang member Miguel Moscoso, 23, of Buffalo, N.Y., pleaded guilty to Racketeering Influenced Corrupt Organizations (RICO) before U.S. District Judge Richard J. Arcara. The defendant murdered Christian Portes, a member of the rival 7th Street Gang, on June 13, 2009 at the corner of Whitney Place and Maryland Street. Moscoso faces a maximum sentence of life in prison and a $250,000 fine.          

In addition, five other members of the 10th St. Gang pleaded guilty to Racketeering charges. Defendants Matthew Deynes, 32, David Deynes, 32, Charles Watkins, 32, and Nourooz Ali, 30, all of Buffalo, face a maximum sentence of 20 years in prison and a $250,000 fine. Defendants Desmond Ford, 32, also of Buffalo, faces a maximum sentence of life in prison and a $250,000 fine.     

Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that between 2000 and 2010, the defendants were members of the 10th Street Gang. As a part of their involvement in the gang, the defendants, along with other members and associates of the gang, committed violence, possessed firearms, and sold marijuana, cocaine, crack cocaine, and other controlled substances on the West Side of Buffalo.

The defendants are among 44 10th Street Gang members and associates charged in this case. A total of 37 have been convicted.

The pleas are the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano.

Matthew Deynes and David Deynes will be sentenced on July 18, 2014; Desmond Ford will be sentenced on July 24, 2014; Charles Watkins will be sentenced on July 25, 2014; Nourooz Ali, will be sentenced on July 28, 2014, and Miguel Moscoso will be sentenced on July 30, 2014 at 12:30 p.m., all before Judge Arcara.

       ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that John Zdanecis, 79, of Brighton, N.Y., who was convicted of mail fraud, was sentenced to five years probation by U.S. District Judge Charles G. Siragusa. The defendant was also ordered to pay $82,500 in restitution to victims.

Assistant U.S. Attorney John J. Field, who handled the case, stated that the defendant solicited investors to participate in a commodities trading pool, Comtra Limited, that he controlled. Zdanecis then used most of the money for personal and business expenses, and did not invest it in commodities as promised. To conceal his scheme, the defendant sent his investors periodic account statements that were false and misrepresented the true condition of the investments. As a result of the fraud, investors lost more than $160,000.

At sentencing, the defendant was subject to a recommended sentencing guideline range of 33 to 41 months in prison.

The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.

ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that the United States Court of Appeals for the Second Circuit affirmed the November 2010 conviction of asbestos contractor Keith Gordon-Smith, owner of Gordon-Smith Contracting. The defendant was convicted after a jury trial of multiple counts of violating the Clean Air Act and was sentenced in September 2011 to 72 months in prison and ordered to pay $300,000 in restitution by Judge Charles J. Siragusa. The company, also convicted at trial, was ordered to pay $44,000 in fines.

This is the second significant development involving environmental prosecutions and the Clean Air Act in the past several days. On March 19, 2014, the United States Attorney’s Office obtained a $24 million fine and restitution order against Tonawanda Coke for a decades long release of the poisonous gas Benzene from its production facilities which, a jury found after trial, also violated the Federal Clean Air Act.

“These cases show the commitment of this Office to protecting the community and environment, while also ensuring a level playing field for all who conduct business in this area,” U.S. Attorney Hochul said.   

According to Assistant U.S. Attorney Joseph J. Karaszewski, who handled the appeal on behalf of the Government, the Court of Appeals rejected Gordon-Smith’s argument that evidence presented at trial was insufficient and therefore his conviction should be overturned. The Court of Appeals ruled that the evidence presented by the Government was sufficient to support the jury’s verdict.

Specifically, the defendant argued that there was not enough evidence to support the claim that he violated the Clean Air Act by failing to notify the Environmental Protection Agency before beginning asbestos removal at Cobbles Elementary School in Penfield, N.Y. The Court ruled that the failure to notify the EPA was deliberate, and not the result of “carelessness or some other innocent reason,” as Gordon-Smith claimed. 

The jury convicted Gordon-Smith of multiple counts of failure to notify the EPA about asbestos related work done on several sites within the Western District of New York. Federal law requires that a contractor notify the EPA prior to performing any work which would disturb a jurisdictional amount of asbestos so that inspectors can ensure that proper safeguards are in place. Gordon-Smith performed major asbestos abatement or renovation work at several area projects, including schools, colleges, and the Genesee hospital complex, without ever notifying the appropriate federal agency. When EPA Criminal Investigators visited the sites, they found asbestos left behind on pipes, walls, in utility rooms and other places. Several of those locations required additional asbestos abatement to remove the material left behind.

The Gordon Smith case was investigated by Special Agents of the United States Environmental Protection Agency, Criminal Investigation Division, under the direction of William Lometti; the United States Department of Labor, Office of Inspector General, under the direction of Acting Special Agent in Charge Cheryl Garcia; Occupational Safety Health Administration, Buffalo Office, under the direction of Art Dube, and the New York State Department of Labor, Asbestos Control Bureau, under the direction of Maureen Cox.

       ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jewell Wiggins, 46, of Rochester, N.Y., who was convicted of  possession of cocaine with intent to distribute and possessing a firearm while being a convicted felon, was sentenced to 188 months in prison by U.S. District Court Judge David G. Larimer.

Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that the defendant was arrested after members of the Rochester Police Department, while conducting a routine traffic stop of his car, found the defendant in possession of a loaded .45 caliber Colt Combat Commander semiautomatic handgun. During the investigation, Wiggins made several admissions to possessing the firearm.

Once under arrest for possessing the firearm, the defendant was transported to the Rochester Police Department Public Safety Building. During this transport, the Rochester Police Department officer observed Wiggins moving around in the backseat of the police vehicle. As this was happening, the defendant stated, “I just want you to know, I’m only moving around back here because I have a bad leg, not because I’m doing anything funny.” The officer searched the rear of his patrol vehicle after he had turned the defendant over the Monroe County Jail and found that the defendant had discarded thirty small bags of cocaine and five small bags of marijuana. Officers also found that the defendant possessed over $300.00 in United States currency.

The sentence is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, and the Rochester Police Department, under the direction Chief Michael Ciminelli.

       ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Steve Wysocki, 50, of Newark, N.Y., who was convicted of filing false statements with the United States Government, was sentenced to 24 months in prison by U.S. District Court Judge Frank P. Geraci. The defendant was also ordered to pay $299,000 in restitution.

Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that Wysocki was Testing Manager for Flightline Systems, a Victor based defense contractor working on United States Army and Navy projects. The defendant oversaw product testing for the KG-40 military radio system as well as the SH-60 Sonobuoy system.

The KG-40 is a tactical radio encryption system used by the US Army and Navy and sold for export to foreign countries. It consists of several components including the radio, a remote, and a tray. The SH-60 Sonobuoy system is an Anti-Submarine Warfare (ASW) device. The system includes a small sonar unit which is released from both fixed and rotor wing ASW aircraft as well as various other components including external preamps.

Both the KG-40 and Sonobuoy programs have contractual manufacturing and testing requirements imposed by the United States Department of Defense. Among these protocols is something know as vibration testing. This process subjects the various items to prolonged vibration exposure using a vibration table equipped with pressure plates. The items are placed on the vibration table during the manufacturing process for a pre-set period of time to ensure that they will survive real world conditions on ships and aircraft.

The components are hooked up to a computer during testing which monitors their performance and then produces a unique graph upon successful completion. Due to many individual testing variables, no two items will produce the exact same testing graph. The graphs are unique to each item, and are stamped with the time and date of the test as well as the serial number of the item tested. The graphs are signed by the table operator and are then made part of the items “traveler file” which accompanies each item throughout the assembly and testing process. Each item tested must have a copy of a passing vibration table graph in the file in order to be released to the military. The vibration tests were run at Flightline’s Victor facility.

During the investigation, Special Agents from the FBI and Army Criminal Investigation Division learned that Wysocki was both personally falsifying vibration graphs as well as directing other subordinates to do so. Wysocki would then print the false graph, or direct others to do so, and include this false document in the items history, thus proving that it was successfully tested, even though as he knew, the item was not properly tested. He referred to this process as “phantom vibe testing.”

As a result of the defendant’s conduct, individual components had to be re-tested costing the Department of Defense $299,094.00

The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation; Special Agents of the U.S. Army Criminal Investigation Division Command, Major Procurement Fraud Unit (MPFU), under the direction of Special Agent in Charge, L. Scott Moreland; Naval Criminal Investigative Service (NCIS), Northeast Field Office under the direction of Special Agent in Charge, Jeremy Gauthier; and the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS), under the direction of Special Agent in Charge, Craig Rupert.

       BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a five-count indictment charging Daniel Rice, 50, a retired Boston, MA, police officer, with wire fraud and conspiracy to commit wire fraud.  The charges carry a maximum penalty of 20 years in prison and a fine of $250,000.

Assistant U.S. Attorney Paul J. Campana, who is handling the case, stated that Rice is charged with causing a broker from Montana to wire $250,000 in March 2009 to Carnic Services LLC, one of the “New Frontier” companies controlled by Michael Wilson, formerly of Hamburg, N.Y. According to the indictment, by March 2009, Rice the defendant knew that Michael Wilson’s companies failed to pay out on deals promising large returns in short periods of time. Wilson is currently under indictment for deals entered into by his companies in 2008 through 2010.

The indictment against Rice also charges that, in two deals brokered in January and July of 2010, the defendant intentionally failed to tell the same Montana broker that the company offering the investment program, “Zodiak Capital,” was another of Wilson’s companies. As a result, in January 2010, the Montana broker wired $100,000 to Rice, who kept $40,000 before passing the remaining $60,000 on to a Wilson account at HSBC Bank in Buffalo. In July 2010, Rice was involved in a second deal with Zodiak, and again failed to tell the Montana broker about Zodiak’s connection to Wilson’s companies. As a result, on July 15 and 19, 2010, a total of $71,875.00 of a different investor’s money was wired to accounts in the Buffalo area controlled by Zodiak. None of these deals paid out. The only money ever recovered was the $71,875 wired to Zodiak in July 2010, which was recovered because the government quickly applied to have the receiving bank accounts frozen. The funds eventually were returned to the investor, who lives in Utah.

Rice was arrested today in Stoughton, Massachusetts and made an appearance in U.S. District Court in Boston, after which he was released. The defendant will be arraigned in Buffalo before U.S. Magistrate Judge Jeremiah J. McCarthy on March 28, 2014 at 2:30 p.m.

The indictment is the result of an investigation by the Federal Bureau of Investigation, with assistance from the Boston Police Department Anti-Corruption Division.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.