Western District of New York

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

ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Amit Pandey, 41, of Rochester, NY, pleaded guilty to receipt of child pornography before U.S. District Judge Elizabeth A. Wolford. The charge carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years and a $250,000 fine.

Assistant U.S. Attorney John J. Field, who is handling the case, stated that Pandey was arrested in February 2017 by deputies with the Monroe County Sheriff’s Office, after he was discovered having sex in a parked vehicle with a 16-year old minor female. The defendant’s cell phone was seized during the arrest. A forensic analysis uncovered sexually graphic chats and images using the Kik application between Pandey and the minor female. One of the images was that of a person that Pandey knew was a minor.

The plea is the result of an investigation by the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn and Special Agents with the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.

Sentencing is scheduled for January 20. 2018, at 11:00 a.m. before Judge Wolford.   

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051
 
ROCHESTER, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Bryan Matacale, 42, of Nunda, NY, and Ashley Warren, 26, of Elmira, NY, were arrested and charged by criminal complaint with production of child pornography. In addition, Matacale is also charged with receipt of child pornography, while Warren is also charged with distribution of child pornography. Matacale faces a minimum penalty of 25 years in prison and a maximum of 50 years because of prior convictions for sexual offenses. Warren faces at least 15 and up to 30 years in prison.

Assistant U.S. Attorney Melissa M. Marangola, who is handling the prosecution of the case, stated that according to the complaint, in March 2017, Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI) received information from the Belgian Federal Police that a Belgian citizen identified individuals in the United States as being involved the possession and distribution of child pornography. The Belgian citizen told police that an individual he knew as "Bob" paid him money in exchange for images and videos of child pornography on several occasions. Subsequent investigation determined that “Bob” was defendant Maracle.

On August 28, 2017, a federal search warrant was executed at Matacale’s residence during which various computers and electronic media were seized by law enforcement officers. During an examination of the defendant’s cellular telephone, officers observed the contact name "Ashley Warren." In June 2017, defendant Warren reported to law enforcement officers that she believed Matacale might have inappropriately touched two underage female relatives. A review of text messages between Matacale and Warren revealed that Warren, at Matacale’s request, used her cellular telephone to take and send photos containing images of child pornography to Matacale.

The defendants made an initial appearance before U.S. Magistrate Judge Marian W. Payson and are being held. 

The complaint is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.

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

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051
 
ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Angelo Louissaint, 42, and Jennifer Johnson, 42, both of West Babylon, NY, who were convicted of conspiring to commit mail and wire fraud, were sentenced by U.S. District Elizabeth A. Wolford for their role in a mortgage fraud scheme that victimized Flaherty Funding, a mortgage company located in Rochester, NY. Louissaint was sentenced to 30 months in prison. Johnson was sentenced to five years probation to include six months home detention.

Assistant U.S. Attorney John J. Field, who handled the case, stated that the defendants worked together to prepare false mortgage applications in the names of straw buyers and used fraudulent supporting documents. Louissaint and Johnson worked together with another individual, against whom charges remain pending, to concoct the scheme to obtain mortgage loans from Flaherty Funding using fraudulent information. As a result of the scam, the defendants successfully obtained approximately $1,200,000 in loans, and sought an additional $900,000 for loans that ultimately did not close.

The sentencings are the culmination of efforts by the United States Postal Inspection Service, Boston Division, under the direction of Inspector-in-Charge Shelly Binkowski; the United States Postal Inspection Service, New York Division; and the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent-in-Charge.

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051
 
Buffalo, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Theodore Calhoun, 54, of Buffalo, NY, who was convicted of possession with intent to distribute, and distribution of, cocaine, was sentenced to 22 months in prison by U.S. District Judge Richard J. Arcara.

Assistant U.S. Attorney Brendan T. Cullinane, who handed the case, stated that between January and February of 2015 in the Western District of New York, the defendant, on three different occasions, distributed one-ounce quantities of cocaine in exchange for $1,400 on each occasion.

The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051
 
ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Bruce King, 48, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession with intent to distribute marijuana and possession of a short-barrel rifle which was not registered in the National Firearms Registration and Transfer Record. The charges carry a maximum penalty of 10 years in prison and a fine of $250,000 or both.

            Assistant U.S. Attorney Charles Moynihan, who is handling the case, stated that King was arrested on October 19, 2015, following a search by the New York State Department of Corrections and Community Supervision of his residence at 161 Conkey Avenue in Rochester. During the search, officers recovered a brown paper bag with plastic capsules containing marijuana inside a backpack. Officers also found a .22 caliber sawed-off rifle with two boxes of .22 caliber ammunition. The barrel and the stock of the rifle had been shortened so that the barrel was 5 and 10/16 inches and the overall length was 14 and 1/16 inches. Officers also found drug trafficking paraphernalia in the residence as well.

The plea is the result of an investigation by the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci; the Rochester Police Department, under the direction of Chief Michael Ciminelli; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.

Sentencing is scheduled for January 22, 2018, at 12:30 p.m. before Judge Wolford.

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

BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy Jr. announced today that Daniel Rice, 53, of Stoughton, Massachusetts, who was convicted of wire fraud, was sentenced to three months home confinement, followed by two years supervised release, by U.S. Senior District Judge William M. Skretny.
           
Assistant U.S. Attorney Scott S. Allen Jr., who handled the case, stated that Rice, a retired City of Boston Police Detective, aided and abetted Michael Wilson, 30, formerly of Hamburg, NY, in defrauding investors by promising large returns on phantom investments through companies known as New Frontier. 

Rice pleaded guilty for his involvement in a deal brokered in January 2010, in which the defendant induced a Montana broker to wire $100,000 as part of a phony investment with Zodiak Capital, one of Wilson’s fraudulent New Frontier companies. Rice 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 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 of a second investor’s money was wired into accounts in the Buffalo area controlled by Wilson. Such money was recovered after the government applied to have the receiving bank accounts frozen. The funds eventually were returned to the second investor, who lives in Utah.

In July of this year, Wilson was convicted of wire fraud for deals entered into by his fraudulent companies between 2008 and 2010.  In sum, Wilson attempted to defraud investors out of more than $10,000,000 by creating several phantom investment companies known collectively as New Frontier, which included Zodiak, Carnic LLC, Phantom Holdings and others, all purportedly located at 6553 Boston State Road in Hamburg. Wilson thereafter induced individuals and companies to invest in financial instruments with complex sounding names such as leveraging agreements that promised high-yield earnings and returns in short periods of time.

Rather than investing clients’ money, however, Wilson spent it on a variety of personal items, including $2,500,000 as a down payment for Boston State Road properties, automobiles - including a Hummer, a Corvette, two Land Rovers, and a Mercedes ML 500, artwork, and other items.  In January 2009, Wilson paid $1,800 to hire an actor from a talent agency to portray a person using the name of an alias (George Possiodis), which name and persona Wilson used during his scheme. Just prior to his indictment, Wilson fled to Canada and then Vietnam in order to evade law enforcement authorities. He was apprehended there and returned to the Western District of New York to face charges.

Wilson’s sentencing is scheduled for October 25, 2017, at 11 a.m. before Judge Skretny.

Rice’s sentence is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the Internal Revenue Service, Criminal Investigations Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office, and the Boston Police Department Anti-Corruption Division.

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

BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Arthur Clark, 29, of Buffalo, NY, of the sole charge against him, conspiracy to possess with intent to distribute and to distribute marijuana. The charge carries a maximum penalty of five years in prison and a $250,000 fine.

Assistant U.S. Attorneys Laura A. Higgins and Patricia Astorga, who handled the prosecution of the case, stated that between April and September of 2015, the defendant, a courier for a commercial delivery service in Buffalo, conspired with Damarcus Hennings, Shaquata Hennings, Dashawn Abrams, Shahana Beaver and Janice Humphrey, to ship, receive, and distribute more than 50 packages containing marijuana from Denver, Colorado to Buffalo. After the marijuana was sold, the co-defendants would send the cash proceeds from their drug sales back to their marijuana source of supply in Denver. All of defendant’s co-defendants pleaded guilty prior to trial. 

The verdict is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division, and the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast.

Sentencing is scheduled for January 18, 2018 at 3:00 p.m. before U.S. District Judge Elizabeth A. Wolford who presided over the trial of the case.

A federal grand jury sitting in the Western District of New York returned an eight-count indictment against a former Erie County, New York Democratic party chair for bribing a New York State supreme court justice.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney James P. Kennedy Jr. for the Western District of New York made the announcement.  

“Bribery of a judge strikes at the very core of our democracy,” said Acting Assistant Attorney General Blanco.  “The independence of the judiciary is paramount to civilized society.  Our prosecutors and law enforcement partners will pursue any and all attempts to corrupt our fundamental institutions, including the judiciary.”

“The detailed facts set forth in the indictment provide evidence not only of the charges contained therein but of the tremendous investigation conducted by agents from the Buffalo Division of the FBI together with their partners at the New York State Attorney General’s Office and the New York State Police,” said Acting U.S. Attorney Kennedy.  “The indictment speaks for itself.”

G. Steven Pigeon, 56, of Buffalo, New York, was charged with one count of conspiracy to commit bribery and honest services wire fraud, three counts of honest services wire fraud, one count of federal programs bribery and three counts of violation of the Travel Act.

According to the indictment, between February 2012 and April 2013, Pigeon offered and provided things of value to former New York State Supreme Court Judge John A. Michalek, in exchange for official action. Specifically, Pigeon promised employment for a member of Michalek’s immediate family with the 2012 campaign to reelect President Barack Obama; offered to help the same family member obtain employment with the U.S. Department of State; and agreed to support Michalek’s application for appointment to the appellate division of the New York State Supreme Court, all to obtain favorable judicial decisions from Michalek and to control who Michalek would appoint to a paid court receivership. 

Pigeon was arraigned this morning before U.S. Magistrate Judge Michael J. Roemer and released on conditions pending trial of this matter before the Honorable Richard J. Arcara, U.S. District Judge.

The indictment is the result of an investigation by the FBI Buffalo Field Office, under the direction of Special Agent-in-Charge Adam S. Cohen; the New York State Attorney General’s Office, under the direction of Eric T. Schneiderman; and the New York State Police, under the direction of  Major Edward Kennedy.  The case is being prosecuted by Deputy Chief John Keller of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Paul E. Bonanno of the Western District of New York.

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.  

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

BUFFALO, NY - Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney James P. Kennedy Jr. announced today that a federal grand jury sitting in the Western District of New York returned an eight-count indictment against former Erie County, NY Democratic party chair G. Steven Pigeon for bribing a New York State supreme court justice.

“Bribery of a judge strikes at the very core of our democracy,” said Acting Assistant Attorney General Blanco.  “The independence of the judiciary is paramount to civilized society.  Our prosecutors and law enforcement partners will pursue any and all attempts to corrupt our fundamental institutions, including the judiciary.”

“The detailed facts set forth in the indictment provide evidence not only of the charges contained therein but of the tremendous investigation conducted by agents from the Buffalo Division of the FBI together with their partners at the New York State Attorney General’s Office and the New York State Police,” said Acting U.S. Attorney Kennedy.  “The indictment speaks for itself.”

Pigeon, 56, of Buffalo, NY, was charged with one count of conspiracy to commit bribery and honest services wire fraud, three counts of honest services wire fraud, one count of federal programs bribery and three counts of violation of the Travel Act.

According to the indictment, between February 2012 and April 2013, Pigeon offered and provided things of value to former New York State Supreme Court Judge John A. Michalek, in exchange for official action. Specifically, Pigeon promised employment for a member of Michalek’s immediate family with the 2012 campaign to reelect President Barack Obama; offered to help the same family member obtain employment with the U.S. Department of State; and agreed to support Michalek’s application for appointment to the appellate division of the New York State Supreme Court, all to obtain favorable judicial decisions from Michalek and to control who Michalek would appoint to a paid court receivership. 

Pigeon was arraigned this morning before U.S. Magistrate Judge Michael J. Roemer and released on conditions pending trial of this matter before U.S. Distrirt Judge Richard J. Arcara.

The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the New York State Attorney General’s Office, under the direction of Eric T. Schneiderman; and the New York State Police, under the direction of  Major Edward Kennedy. The case is being prosecuted by Deputy Chief John Keller of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Paul E. Bonanno of the Western District of New York.

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.  

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051
 
ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that William Robert Rosica, 51, of Irondequoit NY, pleaded guilty to cyberstalking and computer intrusion before Chief U.S. District Judge Frank P. Geraci, Jr. Each charge carries a maximum penalty of five years in prison and a $250,000 fine.
 
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that February 2016, and March 2017, the defendant, a former Irondequoit Police Officer, subjected the victim to a relentless campaign directed toward threatening and psychologically torturing his victim and injuring, harassing, and intimidating her. Rosica used direct, indirect, and digital surveillance in a focused campaign of online abuse, physical stalking, and harassment aimed at destroying the victim’s life.

The defendant created multiple fictitious email accounts and sent hundreds of harassing emails and text messages to the victim, her family, and her employer. During this time, Rosica also directed and used other people to conduct physical surveillance of the victim and her family, which included people driving by the victim’s home and place of employment and reporting their observations back to Rosica who then used the information to harass the victim. The defendant improperly used his position as a police officer to access law enforcement databases and other restricted online systems in order to obtain information on the victim and her family. Other harassing behaviors included:

• anonymous emails and text messages directing and instructing the victim to commit suicide; • unlawfully accessing and attempting to access the victim’s cellular phone online account and attempting to reset the victim’s password; • unlawfully accessing and attempting to access the victim’s work email and voicemail accounts on several hundred occasions; • unlawfully accessing and attempting to access the victims’s Walgreens Pharmacy and University of Rochester MyChart health care account on multiple occasions; and
• unlawfully accessing and attempting to access the victim’s Time Warner Cable online account on multiple occasions. Rosica also unlawfully accessed the Time Warner Cable account of the victim’s family.

Following his arrest, the defendant made materially false statements to FBI Agents. In addition, the investigation identified several other victims who were subjected to similar physical and digital harassment over several years before he started stalking the victim. As part of the investigation, the FBI conducted extensive electronic and physical surveillance during which they identified Rosica driving by the victim’s home on multiple occasions in various vehicles while attempting to disguise himself from detection. They also obtained footage of the defendant buying some of the items he used to harass the victim, including pay-as-you-go credit cards. Rosica was also captured on audio recordings and digital chats trying to access the victim’s online accounts. The defendant commenced his nearly year-long campaign to harass and torment the victim after she ended their three-year relationship in February 2016.

The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, and New York State Police under the direction of Major Richard Allen.

Sentencing is scheduled for January 9, 2018, at 3:00 p.m. before Judge Geraci.

Alden, New York-based contractors, Zoladz Construction Company Inc. (ZCCI), Arsenal Contracting LLC (Arsenal), and Alliance Contracting LLC (Alliance), along with two owners, John Zoladz of Darien, New York, and David Lyons of Grand Island, New York, have agreed to pay the United States more than $3 million to settle allegations that they violated the False Claims Act by improperly obtaining federal set-aside contracts designated for service-disabled veteran-owned (SDVO) small businesses, the Justice Department announced today.       

“Contracts are set aside for service-disabled veteran-owned small businesses so to afford veterans with service-connected disabilities the opportunity to participate in federal contracting and gain valuable experience to help them compete for future economic opportunities,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.  “Every time an ineligible contractor knowingly pursues and obtains such set-aside contracts, they are cheating American taxpayers at the expense of service-disabled veterans.”

To qualify as a SDVO small business, a service-disabled veteran must own and control the company.  The United States alleged that Zoladz recruited a service-disabled veteran to serve as a figurehead for Arsenal, which purported to be a legitimate SDVO small business but which was, in fact, managed and controlled by Zoladz and Lyons, neither of whom is a service-disabled veteran.  The United States alleged that Arsenal was a sham company that had scant employees of its own and instead relied on Alliance and ZCCI employees to function.  After receiving numerous SDVO small business contracts, Arsenal is alleged to have subcontracted nearly all of the work under the contracts to Alliance, which was owned by Zoladz and Lyons, and ZCCI, which was owned by Zoladz.  Neither Alliance nor ZCCI were eligible to participate in SDVO small business contracting programs.  Zoladz and Lyons are alleged to have carried out their scheme by, among other things, making or causing false statements to be made to the U.S. Department of Veterans’ Affairs (VA) regarding Arsenal’s eligibility to participate in the SDVO small business contracting program and the company’s compliance with SDVO small business requirements.  

“Detecting and discontinuing fraud, waste, and abuse committed by those who do business with the government remains a core function performed in this Office,” said Acting U.S. Attorney James P. Kennedy, Jr. for the Western District of New York. “That function, however, takes on additional significance when the target of the fraud is a program designed for the benefit of the heroes among us—our disabled veterans.  Although this investigation did not uncover sufficient evidence to establish criminal liability by these entities and individuals, the multi-million dollar civil judgment ensures that those involved pay a heavy price for their decision to divert to themselves resources intended for the benefit of those who have made supreme sacrifices on behalf of all.”

“This settlement demonstrates the commitment of the Department of Veterans Affairs, Office of Inspector General, the Department of Justice, and other law enforcement agencies to aggressively pursue individuals and companies that misrepresent themselves as service-disabled veteran-owned small businesses and deny legitimate disabled veterans the opportunity to obtain VA set-aside contracts,” said Inspector General, Michael J. Missal of U.S. Department of Veterans Affairs, Office of Inspector General (OIG).  “The VA OIG will continue to work diligently to protect the integrity of this important program, which is designed to aid disabled veterans.  I also want to thank the U.S. Attorney’s Office and our law enforcement partners in this effort.”

“The contracting companies and principals allowed greed to corrupt a federal process intended to benefit service-disabled, veteran-owned small businesses,” said Special Agent in Charge Adam S. Cohen of FBI Buffalo Field Office. “The FBI and our partners will continue to identify and investigate companies and individuals who target these types of programs for personal gain.”

The settlement resolves a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery.  The civil lawsuit was filed in the Western District of New York and is captioned United States ex rel. Western New York Foundation for Fair Contracting, Inc. v. Arsenal Contracting, LLC, et al., Case No. 11-CV-0821(S) (W.D.N.Y.).  As part of today’s resolution, the whistleblower will receive $450,000.

“This case is yet another example of the tremendous results achieved through the joint efforts of the Small Business Administration (SBA), the Department of Justice, and partner agencies to uncover and forcefully respond to fraud in Federal Government contracting programs, such as the Service Disabled Veteran-Owned Program in this case,” said Christopher M. Pilkerton, General Counsel of the SBA.  “Identifying and aggressively pursuing instances of civil fraud by participants in these procurement programs is one of SBA’s top priorities.”

“Providing false statements to gain access to federal contracts set aside for service-disabled veterans denies the government opportunities to meet its abiding commitment to our nation’s veterans,” said Acting SBA Inspector General Hannibal “Mike” Ware.  “The SBA’s Office of the Inspector General is committed to bringing those that lie to gain access to SBA’s preferential contracting programs to justice.  I want to thank the Department of Justice for its leadership and dedication to serving justice.”

“There is an obvious need and reason for service-disabled, veteran-owned small businesses in the government contracting process,” said Director Frank Robey of the Army Criminal Investigation Command (CID), Major Procurement Fraud Unit.  “Special Agents from Army CID will continue to work closely with our law enforcement partners to make every contribution possible to bring persons to justice who violate that process.”

This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of New York, the FBI, the VA’s Office of Inspector General, the SBA’s Office of Inspector General, and Army CID.

The claims resolved by the settlement are allegations only, and there has been no determination of liability. 

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

BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Chaoyi Le, 28, of Shanghai, China, pleaded guilty to Lacey Act False Labeling before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of five years in prison and a $250,000 fine.

Assistant U.S. Attorneys Aaron J. Mango and Craig R. Gestring, who are handling the case, stated that on April 22, 2014, the defendant sent seven ball pythons from Amherst, NY, to Shanghai, China through the U.S. Mail using the fictitious name “Ben Fan.” Le submitted a form falsely declaring that the package contained “Belts, Candy and Chocolate” with a value of $80. At the time the package was shipped, the ball pythons had an approximate value of $3,300. 

The package was recovered by the United States Fish and Wildlife Service (USFWS), and inspected on May 3, 2014. In addition to the seven live ball pythons, the package also contained cloth bags typically used to hold snakes, hand warmers which are typically used in shipping reptiles, and insulation material. Written on one of the cloth bags were trade names for ball pythons: “Enchi Ghost,” “Pastel Enchi Ghost,” and “Butter Enchi,” all common trade names for ball pythons color morphs. After discovering the pythons, the USFWS contracted with a wildlife expert to temporarily care for the pythons.

Le was stopped by Canadian border officials attempting to enter Canada on April 22, 2014, at which time three live albino western hog-nosed snakes were found hidden in his socks. The total value of the hog-nosed snakes was approximately $500. 

The plea is the result of an investigation by the U.S. Fish and Wildlife Service, under the direction of Honora Gordon, Special Agent-in-Charge, Northeast Region; the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division; and Investigators with Environment and Climate Change Canada, Wildlife Enforcement Division.

Sentencing is scheduled for October 30, 2017 at 10:00 a.m. before Judge Geraci.

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

BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy announced today that Maikel Gonzalez, 20, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and distribution of heroin, was sentenced to 12 months in prison by U.S. District Judge Richard J. Arcara. In addition, Luis Montanez, 37, also of Buffalo, pleaded guilty to conspiracy to distribute 100 grams or more of heroin before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine. 

Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that between January 2015 and September 28, 2015, Maikel Gonzalez conspired with others to distribute heroin on the West Side of Buffalo. The investigation utilized undercover purchases conducted by the New York State Police Community Narcotics Enforcement Team (CNET) and the Buffalo Police Department.

Gonzalez was a street-level distributors or “runner” in a heroin trafficking ring operated by Daniel Molina-Rios. The organization acquired heroin from the New York City area for distribution in Buffalo but also had an alternate heroin source locally.

Luis Montanez supplied the Molina-Rios drug trafficking organization with heroin for approximately three weeks when the original source of heroin supply was not satisfying its illegal drug-using customers. Montanez’s heroin supply was distributed to a wide network of illegal drug-using customers. The defendant also maintained a premise at 221 Gorton Street in Buffalo for distributing the heroin. A search of the residence on June 18, 2015 revealed a box of glassine bags for heroin distribution, two digital scales, and an individual health card in the name of Luis Montanez with heroin residue.

A total of 15 defendants have been indicted in connection with this case, 14 have been convicted. Charges are pending against the remaining defendant. 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.

Luis Montanez is scheduled to be sentenced on January 16, 2018, at 11:00 a.m. before Judge Geraci.

Today’s sentencing and plea are is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause and Lieutenant Kevin Reyes, CNET West Commander; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.   

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

BUFFALO, NY – Acting Assistant Attorney General Chad A. Readler and Acting U.S. Attorney James P. Kennedy, Jr. announced today that Zoladz Construction Company Inc. (ZCCI), Arsenal Contracting LLC (Arsenal), and Alliance Contracting LLC (Alliance), all of Alden, NY, along with two owners, John Zoladz of Darien, NY and David Lyons of Grand Island, NY, have agreed to pay the United States more than $3,000,000 to settle allegations that they violated the False Claims Act by improperly obtaining federal set-aside contracts designated for service-disabled veteran-owned (SDVO) small businesses, the Justice Department announced today.             

“Contracts are set aside for service-disabled veteran-owned small businesses so to afford veterans with service-connected disabilities the opportunity to participate in federal contracting and gain valuable experience to help them compete for future economic opportunities,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.  “Every time an ineligible contractor knowingly pursues and obtains such set-aside contracts, they are cheating American taxpayers at the expense of service-disabled veterans.”

“Detecting and discontinuing fraud, waste, and abuse committed by those who do business with the government remains a core function performed in this Office,” said Acting U.S. Attorney Kennedy. “That function, however, takes on additional significance when the target of the fraud is a program designed for the benefit of the heroes among us—our disabled veterans. Although this investigation did not uncover sufficient evidence to establish criminal liability by these entities and individuals, the multi-million dollar civil judgment ensures that those involved pay a heavy price for their decision to divert to themselves resources intended for the benefit of those who have made supreme sacrifices on behalf of all.”

To qualify as a SDVO small business, a service-disabled veteran must own and control the company. The United States alleged that Zoladz recruited a service-disabled veteran to serve as a figurehead for Arsenal, which purported to be a legitimate SDVO small business but which was, in fact, managed and controlled by Zoladz and Lyons, neither of whom is a service-disabled veteran. The United States alleged that Arsenal was a sham company that had scant employees of its own and instead relied on Alliance and ZCCI employees to function.  After receiving numerous SDVO small business contracts, Arsenal is alleged to have subcontracted nearly all of the work under the contracts to Alliance, which was owned by Zoladz and Lyons, and ZCCI, which was owned by Zoladz.  Neither Alliance nor ZCCI were eligible to participate in SDVO small business contracting programs.  Zoladz and Lyons are alleged to have carried out their scheme by, among other things, making or causing false statements to be made to the U.S. Department of Veterans’ Affairs (VA) regarding Arsenal’s eligibility to participate in the SDVO small business contracting program and the company’s compliance with SDVO small business requirements.  

“This settlement demonstrates the commitment of the Department of Veterans Affairs, Office of Inspector General, the Department of Justice, and other law enforcement agencies to aggressively pursue individuals and companies that misrepresent themselves as service-disabled veteran-owned small businesses and deny legitimate disabled veterans the opportunity to obtain VA set-aside contracts,” said Inspector General, Michael J. Missal of U.S. Department of Veterans Affairs, Office of Inspector General (OIG).  “The VA OIG will continue to work diligently to protect the integrity of this important program, which is designed to aid disabled veterans.  I also want to thank the U.S. Attorney’s Office and our law enforcement partners in this effort.”

“The contracting companies and principals allowed greed to corrupt a federal process intended to benefit service-disabled, veteran-owned small businesses,” said Special Agent in Charge Adam S. Cohen of FBI Buffalo Field Office. “The FBI and our partners will continue to identify and investigate companies and individuals who target these types of programs for personal gain.”

The settlement resolves a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The civil lawsuit was filed in the Western District of New York and is captioned United States ex rel. Western New York Foundation for Fair Contracting, Inc. v. Arsenal Contracting, LLC, et al., Case No. 11-CV-0821(S) (W.D.N.Y.).  As part of today’s resolution, the whistleblower will receive $450,000.
           
“This case is yet another example of the tremendous results achieved through the joint efforts of the Small Business Administration (SBA), the Department of Justice, and partner agencies to uncover and forcefully respond to fraud in Federal Government contracting programs, such as the Service Disabled Veteran-Owned Program in this case,” said Christopher M. Pilkerton, General Counsel of the SBA.  “Identifying and aggressively pursuing instances of civil fraud by participants in these procurement programs is one of SBA’s top priorities.”

“Providing false statements to gain access to federal contracts set aside for service-disabled veterans denies the government opportunities to meet its abiding commitment to our nation’s veterans,” said Acting SBA Inspector General Hannibal “Mike” Ware.  “The SBA’s Office of the Inspector General is committed to bringing those that lie to gain access to SBA’s preferential contracting programs to justice.  I want to thank the Department of Justice for its leadership and dedication to serving justice.”

“There is an obvious need and reason for service-disabled, veteran-owned small businesses in the government contracting process,” said Director Frank Robey of the Army Criminal Investigation Command (CID), Major Procurement Fraud Unit.  “Special Agents from Army CID will continue to work closely with our law enforcement partners to make every contribution possible to bring persons to justice who violate that process.”

This matter was investigated by the Civil Division’s Commercial Litigation Branch, Assistant U.S. Attorney Kathleen A. Lynch of the U.S. Attorney’s Office for the Western District of New York, the FBI, the VA’s Office of Inspector General, the SBA’s Office of Inspector General, and Army CID.

The claims resolved by the settlement are allegations only, and there has been no determination of liability. 

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

ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Daniel J. Sullivan, 39, Webster, NY, pleaded guilty to possession of child pornography before U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 20 years in prison and a fine of $250,000.

Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that the investigation began when an undercover law enforcement officer, using a peer-to-peer network, connected to an internet connected computer that was sharing videos containing child pornography. The investigation led to Sullivan who admitted that he had been involved with looking at images of child pornography.

A search warrant was executed at Sullivan’s residence and a laptop and a portable hard drive were seized. The laptop contained over 800 videos of suspected child pornography and the portable hard drive contained over 600 videos of suspected child pornography.

The plea was the culmination of an investigation on the part of the Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
 
Sentencing is scheduled on January 3, 2018, at 3:30 p.m. before Judge Geraci.

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

BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Julius Hall, Jr., 31, Niagara Falls, NY, pleaded guilty to possession of a firearm in furtherance of drug trafficking before U.S. District Judge Lawrence J. Vilardo. The charge carries a mandatory minimum penalty of five years in prison, a maximum of life, and a fine of $250,000.

Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on November 10, 2016, during the execution of a search warrant at 303 38th Street, Apartment 2, in Niagara Falls, law enforcement officers found the defendant in the living room. A .40 caliber Glock pistol with a loaded 15-round magazine was found inside a zippered bag in the defendant’s bedroom closet. In addition, four plastic bags containing cocaine and crack cocaine were recovered from various locations within the apartment. One plastic bag containing green vegetable matter, two digital scales with white powder residue on the surface, and $578 in U.S. currency were also found within the apartment.

The plea is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Niagara Falls Police Department, under the direction of Superintendent Bryan DalPorto.
 
Sentencing is scheduled on January 11, 2018, at 12:30 p.m. before Judge Geraci.

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

BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has returned an indictment charging 12 defendants with conspiracy to distribute one kilogram or more of cocaine. The charge carries mandatory minimum penalty of 10 years in prison, a maximum of life and a $10,000,000 fine. Charged in an indictment and arrested this morning were:

• Cesar Rivera-Figueroa, aka Fat Boy, 26; • Jenhsen Rodriguez, aka Compa; • Daniel Navarro, Omar, 43; • Virgen Perez-Jurado, 26; • Josue  Cardona-Soto, aka Chris, 36; • Devincio K.D. James, 28; • Omar Vazquez-Baez, Tutu, 24; • Luis Andino, 37; • Joseph Jones; aka Tio, 54; • Quinton  Jones, aka Q, 37; • Sucley Romero, 26; and
• Tori Rockmore, 31

A twelfth individual charged in the indictment, Joseph Jones, a/k/a Tio, is still being sought by law enforcement officials. Assistant U.S. Attorneys Laura Higgins and Wei Xiang, who are handling the case, stated that according to the indictment, between July 2017, and the present, the defendants conspired to possess and distribute five kilograms or more of cocaine. The cocaine, which was trafficked from Puerto Rico, was being sold in the Buffalo area. 

“By removing those who pollute our neighborhoods with drugs and associated violence, arrests such as these reaffirm the commitment that the dedicated agents and prosecutors working for the Department of Justice have to helping our state and local partners, in our all-out effort to clean-up our neighborhoods,” said Acting U.S. Attorney James P. Kennedy, Jr. “Sooner or later, those attracted to drug dealing need to realize that the costs—both to themselves and their communities—of engaging in such behavior outweigh any benefits. Short-term profits from drug-dealing mean long-term sentences in federal prison.”

“Unfortunately, we are reminded daily of the opioid epidemic affecting our families, friends and neighbors,” said FBI Special Agent in Charge Adam S. Cohen. “But we must not forget that cocaine and other illegal narcotics are still a significant health and crime problem in our country.  The FBI Safe Streets Task Force and its partners continue to combat the illegal drug trade and those who seek viable routes to push drugs into Western New York.”

DEA Special Agent in Charge James Hunt stated, "Through collaborative efforts, 11 members of a violent cocaine trafficking network have been arrested. As a result of the investigation, this crew will no longer be an intimidating presence nor a threat to families living in the Buffalo and Niagara area."

The eleven defendants were arraigned this afternoon before U.S Magistrate Judge Jeremiah J. McCarthy are due back in court on October 3, 2017, at 1:30 p.m.     

The indictment is the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Daniel Derenda; and the New York State Police, under the direction of Major Edward Kennedy.

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.

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

BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jose Ramos-Escalera, 29, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute and distribution of heroin.  The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.

Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that according to the complaint, between July 18, 2017, and September 26, 2017, the defendant distributed amounts of heroin and possessed heroin with intent to distribute in the Buffalo area. 

The criminal complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.

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

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

BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that David Hunter, 21, of Buffalo, NY, was charged by criminal complaint with two counts of being a felon in possession of firearms. Each charge carries a maximum penalty of 10 years in prison and a $250,000 fine.

Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that according to the complaint, between March 3, 2017, and March 12, 2017, the defendant posted images to “Snap Chat” depicting himself in possession of a Hi-Point, model JH-45 semi-automatic firearm.

On April 1, 2017, New York State Parole Officers, assisted by members of the Buffalo Police Department, searched Hunter’s residence, recovered a Hi-Point, model CF380, .380 caliber semi-automatic firearm, and arrested the defendant.

The defendant was previously convicted in state court of Criminal Possession of a Weapon in February 2014 and is legally prohibited from possessing a firearm.

The criminal complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan benedict, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Daniel Derenda; New York State Parole, under the direction of Acting Commissioner Anthony J. Annucci; and the Erie County District Attorney’s Office, under the direction of John Flynn.

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.

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

ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Adrian Selever, 27, of Rochester, NY, who was convicted of possession with intent to distribute marijuana and possessing firearms in furtherance of a drug trafficking crime, was sentenced to 53 months in prison by U.S. District Judge Charles J. Siragusa.

Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that on April 6, 2016, members of the Irondequoit Police Department executed a search warrant at the defendant’s residence at 116 Keating Drive in Rochester. During the search, officers seized three handguns, seven shotguns and two rifles. Officers also seized marijuana, which was packaged for distribution inside plastic “gumball” machine containers, prescription pills and approximately $1,100 in US currency. A digital scale, additional empty gumball machine containers, and numerous types and calibers of ammunition were also recovered.   

The sentencing is the result of an investigation by the Irondequoit Police Department, under the direction of Chief Richard Tantalo; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.

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

BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Amani Johnson, 21, of Buffalo, NY, who was convicted of possession with intent to distribute crack cocaine, was sentenced to 30 months in prison by U.S. District Judge Elizabeth A, Wolford.

Assistant U.S. Attorney Patricia Astorga, who handled the prosecution of the case, stated that in the early morning hours of August 5, 2016, Buffalo Police officers received a report of a shooting. A vehicle matching the description of a vehicle that the officers had just observed driving around slowly was reported as being involved in the shooting. A short time later, the officers again saw the same vehicle, a white Ford Fusion, run a stop sign without coming to a complete stop. The officers pulled over the vehicle, which was being driven by the defendant. As officers attempted to communication with Johnson, he drove away from the traffic stop at a high rate of speed. The officers engaged in a high-speed chase of the vehicle for several city blocks. The vehicle then crashed into a large tree and the defendant and three passengers ran from the vehicle. Johnson was taken into custody a short distance from the vehicle.

A loaded revolver was recovered in a garbage can near the car crash and a short distance from where the defendant was apprehended. More than 50 bags of crack cocaine were found in the defendant's pockets.

The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.

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

ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Tyree Williams, 34, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to possession with intent to distribute cocaine and possession of firearms in furtherance of a drug trafficking crime. The firearm charge carries a mandatory minimum penalty of five years in prison, a maximum of life, and a fine of $250,000 or both. The drug charge carries a maximum penalty of 20 years, and a fine of $1,000,000 or both.

            Assistant U.S. Attorney Charles Moynihan, who is handling the case, stated that Williams was arrested following the execution of a search warrant at 56 Rauber Street in Rochester. During the search, officers recovered a Jimenez Arms, model J.A. Nine, 9mm pistol, on the attic stairs. Above the doorway to the attic, officers recovered a stolen Walther model CCP, 9 mm pistol. On the attic floor, officers found a Glock model 19, 9 mm pistol. All three firearms were loaded. In addition, the police found over 107 grams of cocaine and over 5 grams of heroin throughout the residence, together with packaging, scales, grinders, glassine bags, and a money-counting machine.

The plea is the result of an investigation by the Greater Rochester Area Narcotics Enforcement Team (“GRANET”), under the direction of Rochester Police Department Lieutenant David Gebhardt, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.

Sentencing is scheduled for January 9, 2018, at 9:15 a.m. before Judge Siragusa.

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

BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jason Yelder, 35, of Cheektowaga, NY, who was convicted of conspiracy to possess with intent to distribute five grams or more of methamphetamine, was sentenced to 20 months in prison by U.S. District Judge Lawrence J. Vilardo.

Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on March 20, 2016, Yelder was arrested for driving with a suspended license. His vehicle was searched by Hamburg Police and more than 23 grams of methamphetamine, a digital scale, and large amounts of U.S. currency were seized. Yelder was advised of his rights, waived his rights, and admitted to police that he was going to sell the methamphetamine to another co-coonspirator.

The sentencing is the result of an investigation by the Hamburg Police Department, under the direction of Chief Gregory Wickett; the Amherst Police Department, under the direction of Chief John Askey; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051
 
BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jose Cisneros, 31, of Blasdell, NY, who was convicted of possession of child pornography, was sentenced to 108 months in prison by U.S. District Judge Richard J. Arcara.

Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that in August 2015, the Blasdell Police Department alerted the FBI about a 13 year-old female engaging in sexually explicit conversations using the Kik application and text messages with an individual later identified as Cisneros. During their communications, the defendant and the girl exchanged graphic photos.     

During an interview with the FBI, the mother of Cisneros’s two children told agents that she found a phone belonging to the defendant, which contained a sexual text conversation. The woman confronted Cisneros, which resulted in an argument that led to police responding to the residence.   

The sentencing is the culmination of an investigation by Agents of the Federal Bureau of Investigation, under the direction of Adam S. Cohen, and the Blasdell Police Department, under the direction of Lieutenant Joseph Gramaglia.

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

BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced that Norma Gold, 57, of Eldred, PA, pleaded guilty to false entries in federal credit union reports before U.S. District Judge Richard J. Arcara. The 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 Gold was an employee of the Olean Tile Employees Federal Credit Union (OTEFCU) for approximately 26 years between 1986 and December 2012. For the last 20 years, Gold served as office manager and was responsible for keeping accurate financial records on behalf of the Credit Union. 

Between December 2007, and December 2012, Gold embezzled funds and made false entries in OTEFCU’s general ledger and altered financial statements, making it appear that the OTEFCU’s account balances were larger than they actually were. In order to conceal her theft, Gold altered the true balances of the Credit Union accounts maintained by outside banks and financial institutions, which held the vast majority of the Credit Union funds. This conduct caused substantial hardship to the OTEFCU and substantially jeopardized its safety and soundness, in that the OTEFCU was forced to close as a result of the theft. The OTEFCU suffered a total loss of $179,939.21. 

The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the National Credit Union Administration; the U.S. Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson; and the Olean Police Department, under the direction Chief Jeffrey Rowley.  

Sentencing is scheduled for December 21, 2017, at 12:30 p.m. before Judge Arcara.

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

ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced that Michael O’Neill, 47, of Niagara Falls, NY, pleaded guilty to unlawful possession of a destructive device before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 10 years in prison and a $10,000 fine.

Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that in the early hours of July 21, 2015, the Niagara County Sheriff’s Office responded to a 911 call regarding an injury at 6761 Walmore Road in Wheatfield, NY. When emergency personal arrived at the scene, they discovered the defendant with a significant injury to his lower left leg, apparently the result of an explosion. O’Neill was immediately taken by Mercy flight to ECMC, where his left leg was amputated below the knee.

Subsequently, personnel from the Erie County Bomb Squad entered the unattached garage of the residence where the explosion occurred and discovered what appeared to be an area where explosive devices were being manufactured. Explosive powder and BB pellets were in plain view. Upon further inspection, Bomb Squad personnel discovered six destructive devices, five of which were constructed of hard cardboard tubing with sealed ends and a fuse. One of those five devices was labeled, “Powder w/Nails.” The sixth device was made out of a flashlight with sealed ends and a hole with a wick coming from the center. Other items discovered on the property included two pill bottles labeled as flash powder, a bag of potassium perchlorate, 36 shotgun shells reloaded with fragments inside, a plastic bottle of triple seven powder, a plastic box of triple seven pellets, and a plastic bottle labeled as triple seven powder.

Later on July 21, O’Neill told investigators that he had watched a video on YouTube regarding stump removal and had made a couple of M80’s. When the explosion occurred, O’Neill stated he was using extra materials from the M80’s to make “something.” The defendant said he was using a heat gun, which ignited what he was making. O’Neill dropped the item he was making on the floor of the garage and attempted to stomp it out when it exploded.

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 Ashan Benedict, and the Niagara County Sheriff’s Department, under the direction of Sheriff James Voutour.

Sentencing is scheduled for December 11, 2017, at 1:00 p.m. before Judge Wolford.

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

Erie County to receive $300,000; Seneca Nation of Indians to receive $399,000 

BUFFALO, NY–The Department of Justice today announced $58,800,000 to strengthen drug court programs and address the opioid epidemic nationwide.

In 2016, nearly 60,000 Americans lost their lives to drug overdoses, an increase from the 52,000 overdose deaths the year before. The majority of these deaths can be attributed to opioids, including illicit fentanyl and its analogues. The opioid epidemic, a public health crisis, is also a growing public safety crisis.

“Today, we are facing the deadliest drug crisis in American history,” said Attorney General Jeff Sessions. “These trends are shocking and the numbers tell us a lot– but they aren’t just numbers.  They represent moms and dads, brothers and sisters, neighbors and friends. And make no mistake combatting this poison is a top priority for President Trump and his administration, and you can be sure that we are taking action to address it.  Today, we are announcing that we will be awarding millions in federal grants to help law enforcement and public health agencies address prescription drug and opioid abuse.  This is an urgent problem and we are making it a top priority.”

In Erie County, there were 301 confirmed opioid related deaths in 2016. There have been 112 confirmed deaths so far in 2017 with another 132 suspected deaths.

“Hopefully, this significant funding from the Department of Justice will further assist our federal, state, and local partners in our combined and ongoing effort to turn the tide in our battle against opioids. It is a battle we continue to fight on multiple fronts,” said Acting U.S. Attorney James P. Kennedy, Jr. “Our District will be receiving funding which includes: $300,000 to Erie County to support programs designed to connect overdose survivors to services; and $399,344 is being provided to the Seneca Nation of Indians to support county-based approaches to establish effective diversion and/or alternatives to incarceration programs for individuals with opioid use disorders.”

About $24,000,000 in federal grants will be awarded to 50 cities, counties and public health departments to provide financial and technical assistance to state, local, and tribal governments to create comprehensive diversion and alternatives to incarceration programs for those impacted by the opioid epidemic. These funds, awarded under the Office of Justice Programs’ Bureau of Justice Assistance’s Comprehensive Opioid Abuse Program, also included funds from the Harold Rogers Prescription Drug Monitoring Program. This program helps regulatory, law enforcement, and public health agencies address prescription drug and opioid misuse; reduce crime; and save lives.

An additional $3,100,000 million will be awarded by the National Institute of Justice for research and evaluation on drugs and crime. The research priorities are heroin and other opioids and synthetic drugs.

The department is also awarding more than $22,200,000 to 53 jurisdictions to support the implementation and enhancement of adult drug courts and Veterans Treatment Courts, which serve as “one-stop-shops” to link veterans with services, benefits and program providers, including the Department of Veterans Affairs, Veterans Service Organizations and volunteer veteran mentors.

The department is also awarding more than $9,500,000 under several Office of Juvenile Justice and Delinquency Prevention grant programs, including the Juvenile Drug Treatment Court Grant Program and the Family Drug Court Statewide System Reform Implementation Program. These programs help jurisdictions build effective family drug treatment courts and ensure current juvenile drug treatment courts follow established guidelines.

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

BUFFALO, N.Y.-Acting U.S. James P. Kennedy, Jr. announced today that Christopher Whitford, 46, of Jamestown, NY, who was convicted of distribution of child pornography, was sentenced to 120 months in prison and 10 years supervised release by U.S. District Judge Elizabeth A. Wolford.

Assistant U.S. Attorney Mary C. Baumgarten, who handled the case, stated that on May 1, 2016, the defendant, using a peer-to-peer file sharing program, shared files with an undercover law enforcement officer. On June 23, 2016, a federal search warrant was executed at the defendant’s residence at 42 West 13th Street, Jamestown, New York, during which several items of electronic media were seized.  Forensic analysis revealed images and videos constituting child pornography were stored on those items. The images and videos that the defendant previously shared with the undercover officer were among them. Whitford had approximately 2405 images and 1188 videos constituting child pornography. 

The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen. 

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

ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced that Cassie Tillinghast, 32, of Buffalo, NY, pleaded guilty to bank fraud before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 30 years in prison and a $1,000,000 fine.

Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that in May 2015, the defendant was hired as an in-home health care aide to assist with the care of Victim 1’s elderly mother in the home of Victim 1 and her husband. Subsequently, Tillinghast fraudulently applied for a Discover credit card in the name of Victim 1, and between November 25, 2015, and December 21, 2015, the defendant fraudulently used the Discover credit card in Victim 1’s name at retail establishments in the Western District of New York to obtain goods and merchandise. Discover Financial Services suffered a total loss of $6,462.89. 

The plea is the result of an investigation by the United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski, Boston Field Division. 

Sentencing is scheduled for February 8, 2018, at 2:00 p.m. before Judge Geraci.

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

BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jose Rivas, age 40; Jose Luis Santiago Almonte, age 37; and Ryan Espinosa Ogando, age 30, all natives of the Dominican Republic living in New Jersey, were arrested and charged by criminal complaint with conspiracy to distribute cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life and a fine of $10,000,000.

Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the complaint, in July of 2017, the Drug Enforcement Administration in Gulfport, Mississippi obtained information regarding the drug trafficking activities of defendant Santiago. Specifically, Agents learned that Santiago and co-conspirators were arranging to purchase 50 kilograms of cocaine. The co-conspirators agreed to provide two vehicles as down payment for the cocaine. Defendants Santiago and Rivas traveled from New York City to Gulfport in order to make the arrangements, and multiple down payments in the form of vehicles or cash, were made.

            In September of 2017, DEA Agents received information that the defendants planned to travel to the Buffalo area in order to obtain kilograms of cocaine. A sale was arranged in Buffalo during which the defendants provided approximately $20,000 more in order to secure six kilograms of cocaine.  All three defendants showed up for the exchange.  During the exchange, defendant Espinosa took possession of a backpack containing sham cocaine, provided by the DEA.  The defendants were arrested at that time. 

The complaint is the is the culmination of investigation by the Buffalo Office of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division, and the DEA Gulfport, Mississippi Resident Office.

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

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

ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Isaiah L. McLaurin, 28, of Elmira, NY, who was convicted of witness tampering, was sentenced to 57 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.

Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that on May 17, 2017, the defendant made threats against an individual that he believed was cooperating in a drug investigation in the Elmira area.  Such threats were made with the intent to prevent that individual from testifying and providing information to law enforcement authorities about the drug trafficking organization.  

On May 16, 2017, four individuals, Robert Ian Thatcher, Maximillian Sams, Dwayne Banks, and Carlito Rios, Jr., were arrested by the DEA, ATF, Elmira Police Department, and other state law enforcement agencies and charged in a federal criminal complaint with various drug trafficking and firearms offenses including conspiracy to possess with intent to distribute, and to distribute, quantities of furanyl fentanyl, a Schedule I controlled substance, and U-47700, a Schedule I controlled substance.  The charges alleged that such conduct occurred between November 29, 2016, and May 16, 2017.

On May 16, 2017, an article about the arrests and investigation was published on the website for the Star Gazette, the local paper in Elmira. The article was entitled, “Four face federal charges in Elmira drug investigation.” A digital copy of the complaint and supporting affidavit was also published on the website with the article. In the supporting affidavit, the DEA referenced certain confidential sources by anonymous designations (including “CC-1” and “CS-2”).

On or about May 17, 2017, a member of law enforcement observed a series of public Facebook comments related to the investigation described in the article on a Facebook page bearing the user name “Isaiah Mclaurin” and a profile picture of Isaiah L. McLaurin. The posts consisted of the following:

Isaiah Mclaurin
Facts somebody better have this N**** in protective custody cause if he thinks he can just pick his daughter up from school and everything’s gonna be ok.  He got it coming

In those Facebook posts, McLaurin publicly identified the individual – referred to as Individual A – that he believed to be one of the confidential sources referenced in the complaint against Thatcher, Sams, Banks, and Rios, and threatened both Individual A and Individual A’s child.

The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police, under the direction of Major Richard Allen; the Elmira Police Department, under the direction of Chief Joseph Kane; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; and the Pennsylvania State Police, under the direction of Commissioner Colonel Tyree C. Blocker.

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

ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced that Taylor T. Sullivan, 20, of Elmira, NY, was arrested and charged by criminal complaint with possession of child pornography. The charge carries a maximum sentence of 20 years in prison, and a fine of $250,000.

Assistant U.S. Attorney John J. Field, who handled the case, stated that according to the complaint, in March 2017, the National Center for Missing and Exploited Children (NCMEC) received a report from the social networking website Skout.com that child pornography was received by the defendant on its site. The report also indicated that Sullivan uploaded several images of different juvenile females engaging in sexual acts with animals.

A search of the defendant’s phone revealed numerous files containing child pornography and videos, including a video of a young naked female (Victim1) known to defendant. During an interview with New York State Police Investigators, Victim 1 indicated she was unaware that she was being recorded. In total, the phone contained approximately 639 images and 58 videos of child pornography.

The complaint is the result of an investigation by the New York State Police, under the direction of Major Richard Allen, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.  

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

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

BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Carlos Laboy, 45, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute 100 grams or more of heroin, was sentenced to 180 months in prison by U.S. District Judge Elizabeth A, Wolford.

Assistant U.S. Attorney Patricia Astorga, who handled the prosecution of the case, stated that between February 2013 and February 2015, Laboy and co-defendant Amber Crouse participated in a heroin conspiracy. The two defendants sold heroin to confidential sources including one individual who claimed that Laboy and Crouse sold heroin to the individual every day for a year.

On February 5, 2015, a search warrant was executed at a residence on Gorton Street in Buffalo. Laboy and Crouse were both present. Officers recovered numerous baggies that contained heroin residue and three cellular telephones. One of the cellular telephones was a number that the confidential sources would contact to set up drug transactions.    

Amber Crouse was convicted and sentenced to 17 months in prison.

The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.

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

ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Connor Dempsey, 20, of Amherst, NY, who was convicted of conspiring to use and maintain a drug-involved premises, was sentenced to three years’ probation by U.S. District Judge Elizabeth A. Wolford. 

Assistant U.S. Attorney Patricia Astorga, who is handling the case, stated that on August 17, 2016, co-defendant Joel Jacob signed for a parcel during a controlled delivery by the U.S. Postal Inspection Service. The delivery was made to Jacob’s residence on Campus Drive in Buffalo, a residence he shared with Dempsey. The package, which was ordered over the internet using bitcoins, was sent from Munchen, Germany and contained over 180 grams of MDMA, also known as “Molly.”

During a search of the Campus Drive apartment, officers recovered quantities of: marijuana; LSD; cocaine; THC; Xanax; and ketamine. They also found a digital scale, baggies, empty capsules, other drug paraphernalia, and another mail parcel addressed to a third co-defendant.

Joel Jacob has been convicted and is scheduled to be sentenced on October 4, 2017.

The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division.

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

ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced that Kassandra Whylly, 21, of Rochester, NY, who was convicted of financial institution fraud, was sentenced to 15 months in prison by U.S. District Judge Elizabeth A. Wolford. The defendant was also ordered to pay more than $9,000 in restitution to the ESL Federal Credit Union.

Assistant U.S. Attorney Kyle Rossi, who handled the case, stated that between April 2016 and November 2016, the defendant, along with co-defendant Thomas Porter, Jr., executed an ongoing scheme to defraud the ESL Federal Credit Union by making false deposits into ATM machines and fraudulently withdrawing cash based upon the false deposits. Over the course of several months, Whylly and Porter actively recruited ESL members to participate in more than 100 separate fraudulent transactions, through which the defendants stole a combined sum of more than $35,000. 

Porter has been convicted and is awaiting sentencing. 

The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen. 

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

BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jordan Ali, 37, of Arizona, who was convicted of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine and 100 kilograms or more of marijuana, as well as a separate charge of money laundering conspiracy, was sentenced to 108 months in prison by Senior U.S. District Judge William M. Skretny.

Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that between 2004 and February 1, 2012, the defendant conspired with others to distribute large quantities of cocaine and marijuana in the Buffalo area. In April 2009, Ali and co-defendant Shane Grafman began assisting one another in their drug distribution businesses. Together they obtained the narcotics in the State of Arizona and then utilized several methods to send the marijuana and cocaine to the Buffalo area, including cars, trucks, shipping crates and United States Postal Service parcels. Grafman also utilized private jets to travel from Arizona to Buffalo to pick up his drug proceeds.   

During the investigation, law enforcement officers seized approximately $1,000,000 in United States currency, including $671,385 from a hidden compartment within a Honda Ridgeline driven by Grafman.

The defendant distributed between five and 10 kilograms of cocaine and more than 100 kilograms of marijuana during the course of his crimes.

A total of six defendants have been charged and convicted in this case.

The sentencing is the culmination of investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett; United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski; Federal Bureau of Investigation; under the direction of Special Agent-in-Charge Adam S. Cohen; Buffalo Police Department, under the direction of Commissioner Daniel Derenda; Erie County Sheriff's Department, under the direction of Sheriff Tim Howard; Niagara Frontier Transit Authority, under the direction of Chief George Gast; Tempe, Arizona Police Department; Apache County, Arizona Sheriff's Department; and Oklahoma State Police.

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

ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Dr. Clifford Jacobson, M.D., 67, of Rochester, NY, pleaded guilty to illegally distributing a controlled substance, before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of five years in prison and a $250,000 fine.

Assistant U.S. Attorney John J. Field, who is handling the case, stated that Dr. Jacobson was a practicing psychiatrist. From 2014 to 2017, he sold prescriptions for Schedule IV controlled substances, including clonazepam, to undercover agents and patients who had no medical necessity for the drug but who sought to use it recreationally. The defendant charged his patients $120 for each illegal prescription.

The plea is the result of an investigation by Special Agents of the Drug Enforcement Administration, acting under the direction of James J. Hunt, New York Field Division, and investigators of the Medicaid Fraud Control Unit, acting under the direction of New York State Attorney General Eric Schneiderman.

Sentencing is scheduled for January 23, 2018, at 9:15 a.m. before Judge Siragusa.

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

ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Dr. Clifford Jacobson, M.D., 67, of Rochester, NY, pleaded guilty to illegally distributing a controlled substance, before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of five years in prison and a $250,000 fine.

Assistant U.S. Attorney John J. Field, who is handling the case, stated that Dr. Jacobson was a practicing psychiatrist. From 2014 to 2017, he sold prescriptions for Schedule IV controlled substances, including clonazepam (commonly known by its brand name Xanax), to undercover agents and patients who had no medical necessity for the drug but who sought to use it recreationally. The defendant charged his patients $120 for each illegal prescription.

The plea is the result of an investigation by Special Agents of the Drug Enforcement Administration, acting under the direction of James J. Hunt, New York Field Division, and investigators of the Medicaid Fraud Control Unit, acting under the direction of New York State Attorney General Eric Schneiderman.

Sentencing is scheduled for January 23, 2018, at 9:15 a.m. before Judge Siragusa.

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

ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr., announced today that a federal jury convicted Stephen Jones, 30, of Rochester, NY, of conspiring to recruit underage girls to commit commercial sex acts, and sex trafficking of minors and adults by force, fraud or coercion. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum of life.

Assistant U.S. Attorneys Melissa M. Marangola and Craig R. Gestring, who together handled the trial of the case, stated that between 2011 and June 2014, the defendant conspired with others, including Kasandra Weeks and Christian Nartey, to target and manipulate seven minor victims and two adult victims, many of whom were at-risk and vulnerable, to engage in prostitution activities. While some victims were located through social media accounts, Jones went to the Department of Social Services or women shelters and waited until girls appearing young in age came outside.  Victims were promised quick money and drugs, and on other occasions, threatened with violence.

Jones and his co-conspirators posted daily advertisements using fake photos for the victims on backpage.com. One advertisement read: “ITS KRISTEN AND ASHLEY!! Ur 2 favorite young GODDESS up all day READY2play!! :-) CALL NOW!!  Victims were taken from the Rochester area to Buffalo, Syracuse, Albany, Utica, and New Jersey in order to engage in prostitution activities and avoid detection by law enforcement. To keep control over the victims, Jones and the others kept the money victims earned from prostitution activities, as many as 10 clients a day, and limited the victims’ communications with family and friends.    

With his conviction, Jones joins Kasandra Weeks and Christian Nartey, who were previously convicted, as they await sentencing for their involvement in this sex trafficking ring.
                                                                                 
The verdict is the culmination of an investigation on the part of the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen; Immigration and Customs Enforcement, Homeland Security Investigations, of under the direction of Special Agent-in-Charge Kevin Kelly; and the Rochester Police Department, under the direction of Chief Michael Ciminelli.

Sentencing for Jones is scheduled for December 5, 2017, at 3:00 p.m., before U.S. District Judge David G. Larimer who presided over the trial of the case.

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

ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 37-count superseding indictment charging former 5LINX owners Craig Jerabeck, 56, of Rochester, NY; Jeb Tyler, 44, of Penfield, NY; and Jason Guck, 42, of Victor, NY, with 29 counts of wire fraud and one count of conspiracy to commit wire fraud, each count punishable by up to 20 years in prison and a fine of $250,000. The superseding indictment also contains six counts of money laundering and one count of conspiracy to commit money laundering, each count punishable by up to 10 years in prison and a fine of $250,000.

Assistant U.S. Attorneys Craig R. Gestring and Richard A. Resnick, who are handling the prosecution, stated that according to the superseding indictment and a previously filed indictment, the defendants, in 2001, started 5LINX Enterprise, Inc. (5LINX), a multi-level marketing company headquartered in Rochester. 5LINX offered utility and telecommunications services, health insurance, nutritional supplements, and business services using independent representatives to sell products and services, and to recruit additional representatives. Jerabeck was President and Chief Executive Officer, Guck was Vice President and Secretary, and Tyler was Vice President of 5LINX.

In June 2006 and July 2006, the defendants sold 5LINX stock for $5,500,000 to three investment companies, Trillium Lakefront Partners III, L.P.; Trillium Lakefront Partners III, NY L.P.; and Shalam Investment Co., L.L.C. (collectively known as "the Investors"). From 2009 to 2014, during the time that the Investors owned a substantial stake in 5LINX, the defendants caused 5LINX, without the knowledge or approval of the Investors, fraudulently to pay approximately $13,235,582 to the defendants. Specifically, the defendants created fictitious independent representatives and caused them to be paid more than $11,700,000 by making it appear that the representatives had provided services to 5LINX.  The money paid to the fictitious representatives eventually was transferred into the defendants’ bank accounts or onto debit cards for the defendants’ personal use. 

Further, the defendants fraudulently caused a vendor, for whom 5LINX was selling and distributing products, to pay the defendants directly approximately $2,300,000 that 5LINX should have received. 

The approximately $13,235,582 fraudulently paid to the defendants caused false financial statements and reports regarding the financial condition of 5LINX to be prepared. The Investors relied on those statements and reports when making financial decisions affecting the company. One such decision occurred in January 2014. The Investors agreed to sell their ownership stake in 5LINX back to 5LINX. As part of the sale price, the Investors agreed to receive three promissory notes totaling $10,000,000, rather than requiring the full sale price in cash. If the Investors known about the diverted funds, then they would have sold their ownership stake for more money and taken the full sale price in cash rather than accept promissory notes, which turned out to be worthless. 

Prior to receiving the fraudulent obtained funds, the defendants transferred the funds through various fictitious companies and entities in order to conceal their ownership of the funds. The superseding indictment alleges that those transfers constituted money laundering. 

The defendants no longer own the company.

The superseding indictment is the culmination of an investigation by Special Agents of the Federal Bureau of Investigations, under the direction of Special Agent-in-Charge Adam S. Cohen.           

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

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

ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Taj R. Williams, 32, of Rochester, NY, was convicted after a jury trial of arson and unlawful possession of Molotov cocktails. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 20 years, a fine of $250,000, or both.

Assistant U.S. Attorney Douglas E. Gregory, who handled the prosecution of the case, stated that on January 18, 2015, Williams used a tire iron to shatter the front glass door of the Chili Express Mini Mart located at 989 Chili Avenue in Rochester. The defendant then removed three Molotov cocktails from a bag, each of which he lit and threw inside the store. All of the devices exploded, causing extensive fire damage to the interior structure and its merchandise.

The guilty verdict is the result of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli; the Rochester Fire Department, under the direction of Chief John Schieber; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.

Sentencing is scheduled for December 11, 2017, at 11:00 a.m. before U.S. District Judge Elizabeth A. Wolford who presided over the trial of the case.

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

BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Robert Pritchett, 21, of Buffalo, NY, who was convicted of production of child pornography, was sentenced to 30 years in prison and lifetime supervised release by U.S. District Judge Lawrence J. Vilardo.
 
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that in October of 2015, Robert Pritchett, utilizing the name “Jess Allen,” began communicating with Victim 1, a 17-year-old female from New Jersey, via text messages and chat messages over the internet. The defendant convinced her to travel to New York to live with him. Pritchett misrepresented his identity and made fraudulent promises regarding where she would live upon her arrival. On November 6, 2015, after picking up Victim 1 at the bus station, the two engaged in sexual activities, and then traveled to a motel in Tonawanda, NY.  While at the motel, Pritchett had Victim 1 engage in prostitution services and engaged in additional sexual activities with Victim 1. During the sexual activity, the defendant used Victim 1’s Apple iPhone to record some of the activity.  

Pritchett also engaged in online sexual communications and/or sexual contact with three other minor females. In June of 2014, using Kik, the defendant sent sexually explicit photographs by a 14-year-old female (Victim 2) from Buffalo. This then lead to communications with a 15-year-old female friend of Victim 2, also from Buffalo (Victim 3). Victim 3 went with the defendant to the Galleria Mall on July 3, 2014, in an effort to get the defendant to delete the pictures he had of Victim 2. While at the mall, Pritchett engaged in repeated sexual acts with Victim 3 inside a movie theater and near a loading dock of a department store.

Between November 2013 and March 2014, the defendant communicated with a 15-year-old female from East Aurora (Victim 4), using ooVoo, a video and instant messaging chat application. During those communications, Victim 4 engaged in sexually explicit conduct while video chatting with the defendant. During the video chat, Pritchett created two screen shots that depicted Victim 4 engaged in sexually explicit conduct, and saved those screen shots to his cellular telephone.

The sentencing is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent-in-Charge, along with Detectives from the Cheektowaga Police Department, under the direction of Chief David Zack.

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

BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr., announced today that Ari Elias Baum, 32, of Buffalo, N.Y., pleaded guilty to making a false statement to the Social Security Administration (SSA) concerning his eligibility to receive disability benefits before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of five years in prison and a fine of up to $250,000.

Assistant U.S. Attorney Jonathan P. Cantil, who is handling the case, stated that in 2010, the defendant’s Social Security benefits were discontinued after it was determined Baum was outside the United States for a period exceeding 30 consecutive days. In December 2010 and again in March 2013, Baum was advised of his obligation to report to the SSA if he was outside the United States for 30 or more consecutive days.

According to border crossing records, the defendant was outside of the country continuously from March 22, 2013, until August 13, 2013. When contacted by the SSA on December 19, 2013, Baum failed to mention this to the agency. Baum left the United States again on January 1, 2014, and did not return until May 13, 2014.

The defendant traveled to multiple countries including Morocco, Turkey, Egypt, the United Arab Emirates, and France. Baum’s absence from the United States resulted in an overpayment of Social Security benefits exceeding $6,400.

The plea is the result of an investigation on the part of the United States Social Security Administration, Office of the Inspector General, under the direction of Special Agent-in-Charge John Grasso and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.

Sentencing is scheduled for November 15, 2017 at 2:30 p.m. before Judge Skretny.

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

BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy announced today that Mark Ramos, 31, of San Antonio, Texas, pleaded guilty to conspiracy to possess with intent to distribute, and distribution of, more than 500 grams of cocaine before U.S. District Judge Lawrence J. Vilardo. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.

Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that between May 2016 and June 1, 2016, the defendant conspired with co-defendants Jabriel Crews, Charles Gonzalez, and others, to take delivery of cocaine sent through the U.S. mail, and to distribute it in the Buffalo area.

On June 1, 2016, Ramos drove a rented vehicle to the parking lot of a retail store in Cheektowaga, NY, and parked next to a car driven by Charles Gonzalez. After a brief meeting in Gonzalez’s vehicle, Gonzalez removed a package containing cocaine from the trunk and gave it to the defendant, who then placed in the trunk of his vehicle. Upon executing a search warrant on the vehicle, officers recovered two bricks of cocaine inside of a U.S. postal parcel addressed to Charles Gonzalez. 

Charles Gonzalez was charged and convicted in state court. Federal charges are pending against Jabriel Crews. The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.

The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Erie County Sheriff’s Department, under the direction of Timothy Howard.

Sentencing is scheduled for January 5, 2018, before Judge Vilardo. 

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

ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Lisa Benincasa, 54, of Rochester, NY, who was convicted of theft of government monies, was sentenced by U.S. Magistrate Judge Marian W. Payson to 75 days in prison followed by four months at a residential reentry center. The defendant was also ordered to pay restitution of $6,472.

Assistant U.S. Attorney John J. Field, who handled the case, stated that Benincasa stole Veterans Affairs benefits belonging to a deceased individual. The defendant lived with, and provided care to, the VA beneficiary while the beneficiary was still alive. After the beneficiary died, instead of notifying the VA of her death, Benincasa kept and forged the monthly VA benefit checks. In total, the defendant stole approximately $6,472 in benefits over a two-year period.

The sentencing is the result of an investigation by the United States Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, under the direction of Donna L. Neves.

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

BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned and indictment charging Pablo Lugo III, 22, of Lockport, NY, with distribution of fentanyl causing death. The charge carries a mandatory minimum penalty of 20 years in prison and a maximum of life. 

Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the indictment, on March 28, 2015, the defendant provided heroin to a 22-year-old female victim, which resulted in her death.

Acting U.S. Attorney Kennedy noted that, “[e]arlier this week, Attorney General Sessions stated that, ‘The first and most important job of any government is to protect the safety and the rights of its citizens. The first civil right is to be alive.’"  Kennedy continued, “[s]adly, the consumption of opioids is robbing many individuals of that first and most important civil right—the right to live—at an alarming rate. Today’s indictment is a reminder that this Office will continue to do all that it can to protect the lives and rights of all of our citizens, including those that struggle with addiction.”

DEA Special Agent-in-Charge James Hunt stated, “This arrest sends a warning to both the drug dealer and drug users. Drug traffickers are reminded that enhanced charging penalties apply if an overdose death results from their illegal drug sales. And users are forewarned that today’s heroin harbors highly potent opioids that can cause instantaneous death.”

The defendant made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder and is being held pending a detention hearing.

The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Niagara County Drug Enforcement Task Force, under the direction of Sheriff James Voutour; and the Lockport Police Department, under the direction of Chief Michael Niethe.

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.

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

BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy announced today that Gary Hannold, 42, of Bemus Point, NY, was arrested and charged by criminal complaint with possession with intent to distribute 50 grams or more of methamphetamine. The charge carries a mandatory minimum penalty of 10 years in prison and a maximum of life.

Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that in the early morning hours on August 11, 2017, the defendant was pulled over by deputies with the Chautauqua County Sheriff's Office while riding his motorcycle in the Village of Sherman.

According to the complaint, as Hannold got off the motorcycle, he removed his helmet, and then took off a camouflage back pack that he was wearing and threw the pack back into the high weeds adjacent to the motorcycle. As a deputy attempted to retrieve the back pack, the defendant attempted to grab the pack back. Inside the back pack, the deputy found a quantity of suspected crystal methamphetamine packaged in several plastic baggies, was well as marijuana, a clear vile containing cocaine, 10 packets of Suboxone, a digital scale, a bag with unused small plastic bags, U.S. Currency, two cell phones, a New York State motorcycle license plate and numerous other items.

The defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder and is being detained.

The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; and the Chautauqua County Sheriff’s Department, under the direction of Joseph Gerace.

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.

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

ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jeuane Harvey, 30, of Rochester, NY, pleaded guilty to being a felon-in-possession of a firearm and ammunition, before U.S. District Judge David G. Larimer. The charges carry a maximum penalty of 10 years in prison, a fine of $250,000, or both.

Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that on September 9, 2016, Rochester Police Department officers were on patrol in the area of the David F. Gantt Community Center located on North Street in Rochester. Officers saw that the defendant, who was standing with two other people, was holding a rifle with a curved magazine, which appeared to be high capacity. Harvey ran as officers attempted to confront him. After briefly losing sight of the defendant, officers found him and took Harvey into custody. The defendant did not have the rifle in his possession; however, officers searched the surrounding area and found the rifle laying on the ground near the playground. An ammunition magazine with a 30 round capacity, loaded with 17 rounds, was attached to the rifle. In 2008, Harvey was convicted of Criminal Possession of a Weapon in the Second Degree and Criminal Possession of a Weapon in the Third Degree, both felony level offenses.  As a result of those convictions, Harvey is legally prohibited from possessing a firearm or ammunition.  

The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives under the direction of Special Agent-in-Charge Ashan Benedict, new York Field Division.

Sentencing is scheduled for November 28, 2017, at 3:00 p.m. before Judge Larimer.

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

BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy announced today that John Lambert, 65, of Canada, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine before Chief U.S. District Judge Frank P. Geraci, Jr. the charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.

Assistant U.S. Attorney Patricia Astorga, who is handling the case, stated that in 2013, co-defendant Harvey Peake recruited Lambert to assist in the transporting of illegal narcotics for distribution. On October 3, 2016, Peake and Lambert traveled to the Seneca Buffalo Creek Casino in downtown Buffalo to hand off 10 kilograms of cocaine. The two men met briefly with a third individual in the casino and then walked towards the parking garage where Peake’s vehicle was parked. Lambert got into the driver’s seat and tapped the brake lights to signal their location to the third individual. Peake then opened the trunk of and removed a suitcase. The third individual pulled up next to the vehicle and Peake attempted to give the suitcase to the individual. Peake and Lambert were then arrested. Law enforcement officers seized the suitcase, which contained approximately 10 kilograms of cocaine.

Charges are pending against Harvey Peake. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
 
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.

Sentencing is scheduled for December 14, 2017 before Judge Geraci.  

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

BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Ridder, 46, of Albion, NY, pleaded guilty to receipt of child pornography, before U.S. District Judge Lawrence J. Vilardo. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.

Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that in January 2017, the defendant was found in possession of over 600 images of child pornography, some depicting prepubescent minors and some depicting sadistic or masochistic conduct.

The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen and the Medina Police Department, under the direction of Chief Chad Kenward.

Sentencing is scheduled for January 8, 2018, at 2:00 p.m. before Judge Vilardo.