Western District of New York

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

BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Porfirio Rosa, a/k/a Luis Rosa, 74, of Buffalo, NY, pleaded guilty to making false statements in application for a passport before Chief U.S. District Judge Frank P. Geraci. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.

Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that on October 9, 2015, the Western Passport Center in Tucson, Arizona received a United States Passport Renewal Application from an individual identifying himself as Luis Rosa.  The application was mailed from the defendant’s residence in Buffalo. As proof of identity and citizenship, the defendant submitted an expired U.S. passport issued in 2003 in the name of Luis Rosa.

Further investigation revealed that the name, social security number, and date of birth provided on the passport renewal application and original passport belonged to a man who died in 1995. 

At the time of his arrest, the defendant was in possession of several New York State identification cards as well as federal Social Security cards containing several different names, dates of birth, and social security numbers. 

The plea is the result of an investigation by the Diplomatic Security Service, U.S. Department of State, under the direction of William Ferrari and the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Edward J. Ryan.

Sentencing is scheduled for August 18, 2016 at 11:30 a.m. before Judge Geraci.

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

BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that Andre Wise, 37, of Buffalo, NY, who was convicted of conspiracy to distribute marijuana, was sentenced to time served (six months) by U.S. District Judge Richard J. Arcara. In addition, Eric Sears, 49, also of Buffalo, who was convicted of conspiracy to distribute cocaine, was sentenced to 15 months in prison by U.S. District Judge Lawrence J. Vilardo.

Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that between June 2013 and July 2014, Wise conspired with other Schuele Boys associates and gang members to distribute marijuana in the City of Buffalo. During that same time period, Sears conspired with other Schuele Boys associates and gang members including Michael Robertson to distribute cocaine in Buffalo.

The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.

Wise and Sears are two of 28 Schuele Boys Gang members, associates and other individuals arrested in this case. To date, 17 of the defendants have been convicted.

Today’s sentencings are the culmination of an investigation on the part of the FBI's Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes representatives of the Amherst Police Department, the Buffalo Police Department the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Erie County Sheriff’s Department, the Hamburg Police Department, the Niagara Frontier Transportation Authority Police, the New York State Police, the Town of Tonawanda Police Department, U.S. Border Patrol, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and U.S. Immigration and Customs Enforcement, Office of Enforcement & Removal Operations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.  

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

BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Vincent Sawicki, 64, of Buffalo, NY, who was convicted of distribution of oxymorphone, was sentenced to three years probation with six months of home detention by U.S. District Judge Richard J. Arcara.

Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that on April 11, 2011, the defendant sold 40 Opana tablets to an undercover officer at 2175 South Park Avenue in Buffalo. On one occasion the previous month, the defendant sold 70 oxycodone tablets to an individual at the defendant’s residence.

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

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

BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Kenneth White, 39, of Buffalo, NY, who was convicted of sex trafficking of a minor, was sentenced to 156 months in prison by U.S. Senior District Judge William M. Skretny.
Assistant U.S. Attorneys John E. Rogowski and Scott S. Allen Jr., who handled the case, stated that White utilized violent force to cause five victims to engage in commercial sex acts between 2006 and 2012. The sex acts occurred in cities across the country including New York, Philadelphia, Pittsburgh, Law Vegas, Atlantic City, and others. The defendant, who utilized the internet to advertise the victims and solicit customers, received all of the money earned by the victims as a result of these acts.
White knew that one of the victims (Victim1) was under 18 years old. The defendant initially made contact with Victim 1 through a chat line. On the first night the defendant met the Victim in person, White gave the child alcohol and marijuana, and sexually assaulted her. Ultimately, Victim 1 agreed to work for the defendant because (in her later words) she “did not have any money, was hungry, and needed to take a shower.” Victim 1 provided commercial sex acts for at least three customers a day.
The defendant often used force and violence against the victims. For instance, when the victims broke the defendant’s rules, he charged them “debts.” The rules included: victims were not allowed to make direct eye contact with the defendant and they were not allowed to possess their own cellular phones. When victims broke the “rules,” in addition to having to repay the financial “debts” through commercial sex acts, the defendant raped and battered his victims.
Other examples of force and violence used by the defendant: • Victim 2 watched White violently beat his co-defendant with a broom handle, belt, and hair straightener.
• The defendant forced Victim 2 to perform commercial sex acts while severely bruised and sleep deprived and forced her to stay awake by forcing her to consume Red Bull and pills. At times, the defendant forced Victim 2 to have sex with 10 to 20 men per day.
• Victim 4 was also forced to watch the defendant beat his co-defendant. In June 2009, the defendant impregnated Victim 4, forced her to have an abortion, and then forced her to perform commercial sex acts on the same day as the procedure. Victim 4 was raped by a client on this same day.
• The defendant beat Victim 5 while she was seven months pregnant. 
As a result of forcing his victims to perform commercial sex acts through violence and coercion, the defendant received hundreds of thousands of dollars. 
The sentencing is the result of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, and the Internal Revenue Service, Criminal Investigations Division, under the direction of under the direction of Special Agent-in-Charge Shantelle P. Kitchen.

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

BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Esteban Ramos-Cruz, 29, of Buffalo, NY, who was convicted of racketeering conspiracy (RICO), was sentenced to 30 years by U.S. District Judge Richard J. Arcara.  
 
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that between 2000 and 2012, Cruz was a member of the Cheko’s Crew/7th Street Gang which was responsible for drug trafficking and violent crime on Buffalo’s West Side. During this time, as a part of the rivalry with the 10th Street Gang, the defendant shot and killed 10th Street Gang associate Eric Morrow on August 11, 2009. Cruz and co-defendant Jordan Hidalgo both shot at Morrow with Morrow being killed by the .22 caliber rifle discharged by Cruz. The defendant also sold illegal narcotics on Buffalo’s West Side.   

Cruz was one of 18 7th Street Gang members and associates indicted in this case. All 18 defendants have been convicted.
 
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen, the New York State Police, under the direction of Major Steven Nigrelli, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division. The task force includes representatives of the Amherst Police Department, the Buffalo Police Department the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Erie County Sheriff’s Department, the Hamburg Police Department, the Niagara Frontier Transportation Authority Police, the New York State Police, the Town of Tonawanda Police Department, U.S. Border Patrol, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and U.S. Immigration and Customs Enforcement, Office of Enforcement & Removal Operations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.

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

ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Brandon West, 39, of Lyons, NY, pleaded guilty to possession of child pornography involving prepubescent minors before U.S. District Court Judge Elizabeth Wolford. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of 20 years, a $250,000 fine or both.
 
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the investigation began when a child disclosed sexual contact by the defendant. Wayne County Child Protective Services contacted the New York State Police who began a criminal investigation. Upon learning that the defendant had child pornography on a cellphone and an online email account, State Police requested assistance from Homeland Security Investigations Cyber Crimes Unit. Federal investigators conducted field interviews and matched a sexually explicit photo recovered from the defendant’s cell phone to a local five year old child known to the defendant. In addition to several sexually explicit images of the five year old child, West also possessed more than 1,500 images of other children, many of whom were under the age of 12, being raped. 

In 2005, West was convicted in Wayne County of Sexual Abuse, First Degree, related to having sexual contact with an eight year old child. West is a Level II Sex Offender.

The plea is the culmination of an investigation by Investigators from the New York State Police, under the direction of Major Craig Hanesworth, and Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.

West is scheduled to be sentenced on September 8, 2016 at 2:00 p.m. before Judge Wolford.

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

BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Maung No, 27, of Seattle, Washington, who was convicted of filing over 1000 false tax returns, was sentenced to 24 months in prison by U.S. District Court Judge Richard J. Arcara.   The defendant was also ordered to pay restitution to the IRS in the amount of $2,323, 122. 

Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that No was employed as a tax return preparer for VPS Income Tax in 2011 and BTC Income Tax in 2012. The fee charged for an income tax preparation was 10% percent of the tax refund amount plus bank fees. For the 2011 tax year, the defendant prepared returns for approximately 565 clients and claimed an education credit of $1,358, an American Opportunity Credit of $2,000 and a Federal Fuel Tax Credit of $183 on each return without the knowledge of the clients. No knew that the credits were false and that the clients were not entitled to claim such credits. As a result, clients received a larger federal income tax refund than they were entitled to, resulting in a loss of $3,543 to the Internal Revenue Service. The defendant continued to conduct similar actions for approximately 574 additional taxpayers resulting in a loss to the Internal Revenue Service of $1,129,319.

No also prepared tax returns for the 2012 tax year in the same fashion which resulted in a loss to the Internal Revenue Service totaling $1,202,803. The total number of fraudulent tax returns prepared by No was approximately 1,138 for a total loss to the IRS of $2,332,122.

The sentencing is the result of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge.

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

BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Peter Viera, 23, of Tonawanda, NY, who was convicted of conspiracy to import methylone, a Schedule I controlled substance, was sentenced to 70 months in prison by U.S. District Judge Richard J. Arcara.

Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that between December 1, 2011, and May 22, 2013, the defendant ordered approximately $60,000 worth of methylone from China as part of the conspiracy to import and sell methylone in Western New York. On May 31, 2013, Viera was parked in a car across from the LaSalle Post Office in Niagara Falls, N.Y. observing a co-conspirator pick up a package from the Post Office, which had been sent from China. Unbeknownst to Viera and his co-conspirators -- the package was intercepted two days prior by U.S. Postal inspectors and found to contain approximately one kilogram of methylone.

Following his arrest, Viera fled to Tijuana while his case was pending and was gone for about seven months before until he was taken back into custody by Immigration and Customs Enforcement in San Ysidro, CA and transported back to the Western District of New York.

The sentencing is the result of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the United States Postal Inspection Service, under the direction of U.S. Postal Inspection Service, Boston Division, under the direction of Inspector in Charge, Shelly A. Binkowski.

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

ROCHESTER, N.Y. — U.S. Attorney William J. Hochul, Jr., announced today that Brandon McNeal, 24, of Rochester, NY, who was convicted of conspiracy to commit sex trafficking of a minor, was sentenced to 108 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.

Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that McNeal conspired with others to recruit a minor female, knowing she was under the age of 18, to engage in commercial sex acts. Between July and August of 2015, the defendant had the child work for him as a prostitute. McNeal posted ads for the girl on Backpage.com, an internet classified advertising website. The defendant also arranged for the child to meet customers at a Motel 6 and paid for the hotel room.

The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation's Child Exploitation Task Force, which includes the Rochester Police Department, the Monroe County Sheriff’s Office, and Immigration and Customs Enforcement, Homeland Security Investigations.

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

BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Jeannette Knightner, 34, of Buffalo, NY, pleaded guilty before U.S. District Judge William M. Skretny to conspiracy to possess with intent to distribute, and to distribute, heroin within 1,000 feet of public housing authority property. The charge carries a mandatory minimum penalty of one year in prison, a maximum of 40 years, and a fine of $2,000,000.

Assistant U.S. Attorney Edward H. White, who is handling the case, stated that in June of 2014, the defendant agreed with Reginald Royal, Sr. to store heroin at her previous residence at 31 Olcott Lower in Lackawanna. On June 11, 2014, Reginald Royal, Sr. sold $100 worth of heroin to a confidential informant at Royal, Sr.’s residence at 1 Olin Lane which is part of the Baker Homes Public Housing Projects, a public housing facility owned by the Lackawanna Municipal Housing Authority. The heroin sold to the confidential informant was retrieved from the defendant’s residence.

In addition, at the request of co-defendant Royal, Sr., on June 17, 2014, the defendant drove to Columbus, Ohio with another individual and purchased 23.5 grams of heroin for $2,200 that Royal, Sr. had provided to her. On June 18, 2014, as Knightner was driving back to New York, she and the other individual were pulled over by the Erie County Sheriff’s Office near Angola, NY and the heroin was discovered in the defendant’s purse.

The plea is the result of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge, the Lackawanna Police Department, under the direction of James L. Michel, Chief of Police, and the Erie County Sheriff’s Office, under the direction of Timothy B. Howard, Sheriff.  

Sentencing is scheduled for August 31, 2016 at 11:00 a.m. before Judge Skretny.

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

BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr., announced today that Renwick Samuel, 51, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine, was sentenced to time served (41 months) in prison.

Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that between 2006 and December 2012, the defendant conspired with three co-defendants to possess and distribute cocaine in Buffalo. Samuel was arrested in December 2012 along with Angel Gonzalez and Mica Donadelle. Another co-defendant, Kevin Liburd, was arrested in 2014 in the Virgin Islands and extradited to the Western District of New York. Gonzales and Liburd have been convicted and sentenced. Donadelle has been convicted and is awaiting sentencing.    

Today’s sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes representatives of the Amherst Police Department, the Buffalo Police Department the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Erie County Sheriff’s Department, the Hamburg Police Department, the Niagara Frontier Transportation Authority Police, the New York State Police, the Town of Tonawanda Police Department, U.S. Border Patrol, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and U.S. Immigration and Customs Enforcement, Office of Enforcement & Removal Operations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.

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

BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Clarence Adams, 34, of Buffalo, NY, and Michael Knight, 27, of California, were arrested and charged by criminal complaint with conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine. The charges carry a mandatory minimum 10 years in prison, a maximum of life and a $10,000,000 fine.

Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the complaint, on May 13, 2016, law enforcement officers seized three packages containing suspected cocaine that were shipped from Texas to Buffalo. The cocaine was hidden inside air purifiers. Officers seized two of the packages before they were delivered and set up controlled deliveries to addresses on Tyler and Custer Streets in Buffalo.

Before the controlled deliveries occurred, officers observed the defendants in a car parked near Main and Custer Streets. Adams was observed using multiple cellular telephones. Adams was also observed entering 36 Custer Street, leaving shortly after, and departing in the Black Mazda 6 he had been driving. 

Around that time, the first package was delivered to a residence at 49 Tyler Street where the resident of that address accepted and signed for the package. The defendants arrived at 49 Tyler Street shortly after in the black Mazda 6. The recipient of the package exited her residence with the package, walked over to the black Mazda 6 and placed the package in the trunk.  At that time, law enforcement officers arrested Adams and Knight. 

The second package was delivered to the residence at 36 Custer Street.  Ultimately, search warrants were executed and the package that had been delivered was found in the upstairs apartment.  A third package was found in the downstairs apartment.  Like the other packages, it also contained cocaine hidden in an air purifier. 

According to the complaint, the three packages contained a total of five kilograms of cocaine and the recipients indicated they had been paid in crack cocaine to receive the packages.

During a subsequent search of a Mount Vernon Street residence where the defendants were staying, officers recovered a drug ledger that calculated the amount necessary to purchase 5 kilograms of cocaine from Adams’s bedroom.  Also recovered were a digital scale and other drug preparation materials.

The defendants made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and are being held pending a detention hearing on May 19, 2016.

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, the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast, and the Cheektowaga Police Department, under the direction of Chief David Zack. 

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. — U. S. Attorney William J. Hochul, Jr. announced today that the United States Court of Appeals for the Second Circuit affirmed the October 2013 jury conviction of John E. Maye, a licensed physician, for the unlawful distribution and dispensing of a controlled substance. The Court also affirmed the defendant’s 12 month prison sentence imposed by Senior U.S. District Judge William M. Skretny.  

According to the Government’s trial evidence, between 2004 and 2006, Maye authorized nearly 10,000 prescriptions for medications such as Hydrocodone, Xanax, Loritab, Vicodin, Valium, and Ambien. The Government demonstrated that Maye issued the prescriptions using the internet, and without personally seeing an estimated 12,000 patients.  The Government showed that the defendant grossed approximately $1,100,000 through this activity.

In its decision, the Court said that there was sufficient evidence from which the jury could find that Maye did not act in “good faith.” The Court noted that Maye never conducted in-person examinations of patients, authorized prescriptions without obtaining or reviewing medical records, had extremely brief conversations with patients or no conversations at all, and did not make diagnoses prior to prescribing medication. The Court said that this was sufficient to show that Maye was not acting with “a reasonable belief as to proper medical practice.”

“While the vast majority of medical professionals conduct their practice according to legal and ethical standards of reasonable medical care, this case demonstrates that occasionally, a doctor may become nothing other than a drug dealer with a medical license,” said U.S. Attorney Hochul. “This Office will continue to enforce all federal laws regardless of the title or educational achievement of the defendant.”

The conviction and sentencing were 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 Food and Drug Administration, Office of Criminal Investigations, New York Field Office, under the direction of Acting Special Agent in Charge Russell Hermann.

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

BUFFALO, N.Y.—The Department of Justice and the United States Attorney’s Office announced today that M&T Bank Corp. (M&T Bank) has agreed to pay the United States $64 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements. M&T Bank is headquartered in Buffalo.

“In some instances, M&T Bank deviated from its responsibility to originate and underwrite mortgages in accordance with the standards required by the FHA,” said First Assistant U.S. Attorney James P. Kennedy Jr. for the Western District of New York. “This case demonstrates that when a financial institution takes such a detour, we will work to ensure that it does not bypass the consequences of that conduct.”

“Mortgage lenders that fail to follow FHA program rules put taxpayer funds at risk and increase the chances of borrowers losing their homes,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to hold lenders accountable for knowingly submitting ineligible loans for FHA insurance.”

During the time period covered by the settlement, M&T Bank participated as a direct endorsement lender (DEL) in the FHA insurance program. A DEL has the authority to originate, underwrite and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, the FHA does not review a loan for compliance with FHA requirements before it is endorsed for FHA insurance.  DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance, to maintain a quality control program that can prevent and correct deficiencies in their underwriting practices, and to self-report any deficient loans identified by their quality control program.

The settlement announced today resolves allegations that M&T Bank failed to comply with certain FHA origination, underwriting and quality control requirements. As part of the settlement, M&T Bank admitted to the following facts: between January 1, 2006, and December 31, 2011, it certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements and did not adhere to FHA’s quality control requirements. Prior to 2010, M&T Bank failed to review all Early Payment Default (EPD) loans, which are loans that become 60 days past due within the first six months of repayment. Between 2006 and 2011, M&T also failed to review an adequate sample of FHA loans, as required by HUD.   

Additionally, M&T created a quality control process that allowed it to produce preliminary major error rates that were significantly lower (sometimes below one percent) than what the rate would have been if M&T had calculated its preliminary major error rate by dividing the number of loans with preliminary major errors by the number of loans reviewed to determine what percent of loans contained a preliminary major error.

M&T Bank also failed to adhere to HUD’s self-reporting requirements.  While M&T Bank identified numerous FHA insured loans with “major errors” between 2006 and 2011, M&T Bank did not report a single loan to HUD until 2008, and thereafter self-reported only seven loans to HUD.  As a result of M&T’s conduct and omissions, HUD insured hundreds of loans approved by M&T that were not eligible for FHA mortgage insurance under the Direct Endorsement program and that HUD would not otherwise have insured.  HUD subsequently incurred substantial losses when it paid insurance claims on those loans.

“This recovery on behalf of the Federal Housing Administration should serve as a reminder of the potential consequences of not following HUD program rules and the value of private citizen assistance, including whistleblowers, in pursuing lenders that violate the rules,” said Inspector General David A. Montoya of the Department of Housing and Urban Development.

“It is critically important that FHA-approved lenders comply with HUD’s underwriting standards and originate mortgages that borrowers can sustain,” said HUD General Counsel Helen Kanovsky. “We are pleased M&T Bank worked with the Department of Justice and HUD to arrive at an agreeable settlement that protects FHA’s insurance fund.”

The allegations resolved by this settlement arose from a whistleblower lawsuit filed under the False Claims Act by a former employee of M&T Bank, Keisha Kelschenbach. Under the False Claims Act, private citizens can sue on behalf of the government and share in any recovery. The share to be awarded in this case has not yet been determined. 

The settlement is the result of a joint investigation conducted by HUD, HUD’s Office of Inspector General, the Civil Division and Assistant U.S. Attorney Kathleen Lynch, U.S. Attorney’s Office for the Western District of New York.

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

BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Leszek Budzyna, 50, of Mississauga, Ontario, Canada, pleaded guilty to encouraging and inducing an alien to illegally enter the United States for financial gain, before U.S. Magistrate Judge Jeremiah J. McCarthy. The defendant was sentenced to time served. 

Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that on March 1, 2016, the defendant attempted to facilitate the entry of two aliens into the United States via the Peace Bridge. Budzyna was driving a tractor trailer and, when questioned during primary inspection, stated that he was traveling alone. During an x-ray examination of the tractor trailer and subsequent inspection, U.S. Customs and Border Protection Officers identified two aliens concealed in the passenger compartment of the truck. The defendant intended to drive the two aliens into the United States in return for $10,000. Budzyna knew that the two aliens could not lawfully enter the United States. 

The plea and sentencing are the culmination of an investigation by officers of the United States Customs and Border Protection, under the direction of Acting Director of Field Operations Rose Hilmey.

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

BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned an eight count superseding indictment charging Daniel G. Sasiadek, 61, of Buffalo, NY, with production of child pornography and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 30 years and a $250,000 fine.

Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that according to the superseding indictment, during the execution of a search warrant at the defendant’s Wheelock Street residence in Buffalo in July, 2015, numerous computer devices were seized. Further analysis revealed that Sasiadek produced and possessed child pornography.

The defendant has been in custody since his arrest in July 2015. He was arraigned on the superseding indictment today before U.S. Magistrate Judge Hugh B. Scott and continues to be held.

The indictment is the result of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes the Buffalo Police Department, Cheektowaga Police Department, and Niagara County Sheriff’s Office.

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

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

BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a 12-count superseding indictment charging Manuel Freire, a/k/a Barney, 34, and Jose Feliciano-Miranda, a/k/a Palomo, 35, both of Buffalo, NY, with conspiracy to possess with intent to distribute, and to distribute one kilogram or more of heroin and five kilograms or more of cocaine, possession with intent to distribute, and distribution of heroin, possession with intent to distribute, and distribution of cocaine, maintaining a drug-involved premises, and possession of a firearm in furtherance of drug trafficking crimes. The charges carry a minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
 
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that according to the indictment and previously filed complaints, law enforcement officers executed a search warrant at Freire’s bakery at 247 Niagara Street in Buffalo on April 1, 2016.  Hidden inside a mixer were approximately 400 grams heroin and 600 grams of cocaine. 
 
Officers also executed a search warrant at Feliciano-Miranda’s residence and recovered a quantity of heroin and a loaded Glock firearm. A search of Feliciano-Miranda’s vehicle revealed a sophisticated hydraulic “trap” or hidden compartment that had been built into the cargo area.
 
The defendants were arraigned before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and are being detained.

The indictment is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. hunt, New York Field Division, the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard, the Federal Bureau of Investigation’s Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen, and the U.S. Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski. The task force includes representatives of the Amherst Police Department, the Buffalo Police Department the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Erie County Sheriff’s Department, the Hamburg Police Department, the Niagara Frontier Transportation Authority Police, the New York State Police, the Town of Tonawanda Police Department, U.S. Border Patrol, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and U.S. Immigration and Customs Enforcement, Office of Enforcement & Removal Operations.
 
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.-- U.S. Attorney William J. Hochul, Jr. announced today that Thomas Hopkins, 24, of Rochester, NY, was arrested and charged by criminal complaint with production of child pornography. The charge carries a minimum sentence of 15 years in prison, a maximum of 30 years and a fine of up to $250,000. 

Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, Hopkins surreptitiously recorded a 13 year old child naked while she was in the bathroom on multiple occasions. The defendant used his iPod to video record the child through a hole in the bathroom wall, and then emailed the sexually explicit videos to himself.

Hopkins made an initial appearance today before U.S. Magistrate Judge Jonathan Feldman. The defendant is being held pending a detention hearing on May 18, 2016 at 1:00 p.m.

The criminal complaint is the culmination of an investigation by Officers of the Rochester Police Department, under the direction of Chief Michael Ciminelli; and Special Agents of the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Adam S. Cohen. The task force includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.

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.—U.S. Attorney William J. Hochul, Jr. announced today that Frederick Evans, 38, and LaShara Evans, 36, both of Rochester, NY, were charged by criminal complaint with sex trafficking with force, fraud or coercion and sex trafficking of a minor. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of life and a $250,000 fine.

Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the complaint, the investigation began when law enforcement spoke with an individual who indicated that she had been trafficked by Frederick Evans, and his now wife, “Shar”, who she later identified as LaShara Evans, since the age of 15. The witness told law enforcement officers she first met Frederick Evans at the age of 15 and he got her involved in prostitution adding he advertised her on Backpage.com.  The witness further stated that she and “Shar” were engaged in prostitution activities in Rochester, Syracuse, Watertown and Buffalo.  The money would be turned over to Frederick Evans or LaShara Evans. 

The witness also disclosed the name of other individuals who were being prostituted by Frederick Evans. A second witness confirmed that when she was 15 or 16 years old, she was engaged in prostitution with the first witness and her “people” in Binghamton and eventually, the entire group was stopped by a New York State Trooper.  A review of police records revealed that a NYS Trooper had stopped Frederick Evans, LaShara Medina (the maiden name of LaShara Evans), and the first and second witnesses in December 2011. A third witness indicated that she too had been prostituting for Frederick Evans, starting when she was 17 years old. The third witness indicated Frederick Evans took her to Louisiana and was “abusive.” 

The defendants made an initial appearance before U.S. Magistrate Judge Jonathan W. Feldman. LaShara Evans was released on conditions. Frederick Evans is being held pending a detention hearing scheduled for May 16, 2016.

The investigation 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, Special Agent in Charge and the Monroe County Sheriff’s Office under the direction of Sheriff Patrick O’Flynn and the Rochester Police Department, under the direction of Chief Michael Ciminelli.

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

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

BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Dallas McLamore, 30, of Buffalo, NY, who was convicted of conspiracy to distribute 280 grams or more of crack cocaine within 1000 feet of the Perry Housing Projects, was sentenced to 135 months in prison by U.S. District Judge Lawrence J. Vilardo.
 
Assistant U.S. Attorneys Timothy C. Lynch and Michael J. Adler, who handled the prosecution, stated that the defendant was part of a narcotics trafficking ring headed by Tyshawn Bradley that operated primarily in the Perry Housing Projects in Buffalo. Bradley’s organization maintained several apartments on the grounds of the projects, operated by the Buffalo Municipal Housing Authority, where members of Bradley’s organization, including the defendant, sold crack cocaine on a daily basis.
 
The defendant was arrested along with nine others on April 3, 2013 following the execution of search warrants at several locations in the City of Buffalo and Cheektowaga, including at 124 Fulton Street and 305 Perry Street, which are located at the Perry Housing Projects. During the searches at the Perry Housing Projects, officers recovered over 300 grams of crack cocaine and 700 grams of powered cocaine as well as a sawed-off, 9mm semiautomatic rifle.
 
To date, all 10 defendants have been convicted.
 
Today’s sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes representatives of the Amherst Police Department, the Buffalo Police Department the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Erie County Sheriff’s Department, the Hamburg Police Department, the Niagara Frontier Transportation Authority Police, the New York State Police, the Town of Tonawanda Police Department, U.S. Border Patrol, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and U.S. Immigration and Customs Enforcement, Office of Enforcement & Removal Operations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.

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

ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Angelo Ocasio, 41, of Rochester, NY was convicted following a federal jury trial of conspiracy to possess and distribute five or more kilograms of cocaine, 280 or more grams of crack cocaine, one kilogram or more of heroin and a quantity marijuana and of possessing, carrying, using and discharging firearms during, in relation to and in furtherance of the narcotics conspiracy. The firearms charge related to the murder of Jose Troche in January 2010 and a shooting and murder at 137 Cameron Street in July 2009.
 
The charges carry a mandatory minimum sentence of 10 years in prison, a maximum of life and a $4,000,000 fine. 
 
According to Assistant U.S. Attorneys Everardo A. Rodriguez and Melissa M. Marangola, who handled the prosecution of the case, Ocasio was arrested along with seven other defendants related to a long-term and violent narcotics trafficking ring in the City of Rochester headed by James Kendrick and his brother Pablo "Paul" Plaza.
 
Four co-defendants have been convicted. Three other co-defendants, including James Kendrick, his brother Pablo Plaza and their mother, Janine Plaza-Pierce, are scheduled to go to trial on June 6, 2016. Their charges include narcotics and firearms related offenses, two murders and several additional shootings.  Francisco Santos was murdered in October 1998, his body was found in May 1999 buried on the Cattaraugus Indian Reservation in Erie County, NY. The second murder charged was that of their relative Ryan Cooper between May and July 1999.  Cooper’s body has never been found. The murder of Jose Troche on January 14, 2010 in Rochester will also be at issue in the case. 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.   
 
Co-defendant, Angelo Cruz, was sentenced to 25 years in prison today for participating in the drug conspiracy and in the murder of Francisco Santos. 
 
The conviction is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, and the Rochester Police Department, under the direction of Chief Michael Ciminelli. 
 
Sentencing of Angelo Ocasio is scheduled for September 7, 2016 at 2:30 p.m. before Chief U.S. District Judge Frank P. Geraci who presided over the prosecution of the case.

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

BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Jonathan Ortiz, 23, of Buffalo, NY, pleaded guilty to attempted possession with intent to distribute cocaine before U.S. District Judge Elizabeth A. Wolford.  The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.

Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that law enforcement officers intercepted a package mailed from Puerto Rico to a residence on Hudson Street in Buffalo. The package contained a set of audio speakers, inside of which were four packets of cocaine weighing approximately one pound (one-half a kilogram). Ortiz and co-defendant Ivan Hernandez attempted to retrieve the package as it was delivered. The defendants were arrested after a sensor alerted that the package was opened.

Hernandez was convicted and sentenced to 30 months in prison.

Today’s 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 U.S. Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge of the Boston Division.

Sentencing is scheduled for August 24, 2016, at 11:00 a.m. before Judge Wolford.

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

BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that Fred Johnson, aka Macaroni, 23, of Buffalo, NY, who was convicted of conspiracy to distribute cocaine, was sentenced to time served (22 months) by U.S. District Judge Richard J. Arcara.

Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that as a member of the Schuele Boys Gang, the defendant purchased cocaine from co-defendant Michael Robertson. Johnson then repackaged the cocaine into smaller amounts for re-sale in the Buffalo area.

On July 23, 2014, law enforcement officers executed a search warrant at the defendant’s Fisher Street residence and recovered a .22 caliber pistol.

The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.

Johnson was arrested along with 15 other Schuele Boys Gang members and associates in July 2014. Thirteen defendants have been convicted. On March 24, 2015, an additional seven members and associates were indicted.  Four other Schuele Boys members were indicted separately.  

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 sentencing is the culmination of an investigation on the part of the FBI's Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen 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.-U.S. Attorney William J. Hochul Jr. announced today that Ricky Lee Pyzikiewicz, 29, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute cocaine and being a felon in possession of a firearm, was sentenced to 37 months in prison by U.S. District Judge Elizabeth Wolford.
 
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that on November 15, 2010, law enforcement officers searched the defendant’s residence on Maurice Street in Buffalo. Officers seized baggies later determined to contain cocaine and marijuana as well as a rifle and ammunition.
 
  The search was part of an ongoing criminal investigation into narcotics trafficking by Pyzikiewicz and co-defendant Ashley Marie Gnocchini, 29, of Cheektowaga, NY. During the morning hours of November 15, 2010, officers had set up an undercover purchase with the defendants. As Pyzikiewicz and Gnocchini drove to the area of Milestrip Road and McKinley Parkway in Hamburg, NY, Orchard Park, NY police officers pulled over the car the two were riding in. Pyzikiewicz appeared to hide something under his seat. A Hamburg Police Department canine unit responded to the scene, and alerted for the presence of narcotics.  A subsequent search was conducted and quantities of cocaine were recovered.
 
Gnocchini was convicted of conspiracy to possess with intent to distribute cocaine and was sentenced to 15 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, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction Special Agent in Charge Delano A. Reid, the Orchard Park Police Department, under the direction of Chief Mark Pacholec, and the Hamburg Police Department, under the direction of Chief Gregory Wickett.

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

BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Michael Bobbitt, 28, of Buffalo, NY, who was convicted of escape from a halfway house, was sentenced to 12 months in prison by U.S. District Judge Richard J. Arcara.

Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that the defendant was in the custody of the Bureau of Prisons and staying at the Buffalo Halfway House because of a prior racketeering conviction. On August 13, 2015, Bobbitt fled from the halfway house. On August 19, 2015, the United States Marshal Service located and arrested the defendant.

The sentencing is the result of an investigation by the United States Marshal Service, under the direction of Charles Salina.

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051
 
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Sammy Ortiz, 28, of Buffalo, NY, who was convicted of RICO Conspiracy, was sentenced to 57 months in prison by U.S. District Judge Richard J. Arcara.

Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that as a member of the 7th Street Gang, the defendant sold cocaine, heroin and marijuana. In addition, Ortiz possessed and stored firearms at his 7th Street residence on behalf of other gang members.

A total of 18 defendants were charged in the prosecution of the 7th Street gang. All 18 defendants have now been convicted. 

The 7th Street Gang was responsible for narcotics trafficking, numerous shootings and multiple murders in the 7th Street area of the West Side of Buffalo between 2000 and 2012. 

Today’s sentencing is the culmination of an investigation on the part of Special Agents of the FBI Safe Streets Task Force, the New York State Police, under the direction of Major Steven Nigrelli, the Buffalo Police Department under the direction of Commissioner Daniel Derenda and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051
 
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Brent Derouen, 37, of Webster, NY, pleaded guilty to two misdemeanor counts of failing to file federal income tax returns before U.S. Magistrate Judge Jonathan W. Feldman.  The charges carry a maximum penalty of one year in prison and a $100,000 fine.

Assistant U.S. Attorney John J. Field, who is handling the case, stated that Derouen operated a stock promotion business, OTC Advisors LLC. In 2009 and 2010, the defendant earned income of approximately $181,000 and $390,000. Derouen knew he was obligated to report this income to the Internal Revenue Service, and pay taxes on it, but deliberately failed to do so. As a result, the defendant has agreed to pay more than $460,000 to the United States for taxes he owes, plus penalties and interest on the unpaid taxes.

The plea is the result of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge.

Sentencing is scheduled for July 11, 2016 at 9:30 before Judge Feldman.

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

Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that 7th Street Gang associate Joseph Whitely, 26, of Buffalo, NY, pleaded guilty to Racketeering Influenced Corrupt Organizations (RICO) conspiracy before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.

“For more than 10 years, the 7th Street Gang – together with their 10th Street gang rivals– perpetrated violence, trafficked in deadly narcotics, and terrorized residents living on the West Side of Buffalo,” said U.S. Attorney Hochul. “As a result of this prosecution, more than five dozen gang members have been removed from our community. Most importantly, peace and hope for a better future have been restored.”

Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the
7th  Street  Gang  was  responsible  for  narcotics  trafficking,  numerous  shootings  and multiple murders in the 7th Street area of the West Side of Buffalo between 2000 and
2012.  Defendant Whitely, as a 7th Street Gang associate, sold heroin on behalf of the gang.

Regarding violence, Whitely served as the getaway driver for 7th Street Gang member Efrain Hidalgo, who murdered rival 10th Street Gang member Eric Morrow on August 11, 2009. In doing so, Whitely assisted Hidalgo to avoid capture by the Buffalo Police Department.
 
A total of 18 defendants were charged in the prosecution of the 7th Street gang. All 18 defendants have now been convicted.  The prosecution of the 10th Street gang, meanwhile, involved 44 defendants, all of whom were convicted.

“The successful prosecution of the 7th and 10th Street gangs, and the resulting prosperity of the City’s West Side, demonstrates the true value of federal intervention,” U.S. Attorney Hochul further stated. “We will continue such vigorous efforts until every last gang member operating anywhere in this District is brought to justice.”

The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen, the New York State Police, under the direction of Major Steven Nigrelli, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid.

Sentencing  is  scheduled  for  September  15,  2016  at  12:30  p.m.  before  Judge Arcara.

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

BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today Peter Stallworth, 40, and Dwayne Posey, 41, both of Buffalo, NY, have been charged by criminal complaint with conspiracy to possess with intent to distribute, and to distribute, 50 grams or more of methamphetamine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.

Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the complaint, in October 2015, the Drug Enforcement Administration and Cheektowaga Police began an investigation after learning that Stallworth was allegedly distributing cocaine and methamphetamine in the Western New York area. The complaint further states that Stallworth’s source of supply was Posey.

During the course of the investigation, a confidential source (CS) made multiple purchases of methamphetamine from Stallworth which he received from Posey. The investigation also utilized court ordered wiretaps of the defendants’ cellular telephones.

Posey made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder and is being held pending a detention hearing on May 6, 2016. Stallworth was arrested on state charges in Pennsylvania and will be brought to the Western District of New York for his initial appearance on the federal charge at a later date. 

The complaint is the culmination 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 Cheektowaga Police Department, under the direction of Chief David Zack.

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.-U.S. Attorney William J. Hochul Jr. announced today that Ivan Hernandez, 24, of Buffalo, NY, who was convicted of attempted possession with intent to distribute cocaine, was sentenced to 30 months in prison by U.S. District Judge Elizabeth A. Wolford.

Assistant U.S. Attorney Wei Xiang, who handled the case, stated that law enforcement officers intercepted a package mailed from Puerto Rico to a residence on Hudson Street in Buffalo. The package contained a set of audio speakers, secreted inside, four packets of cocaine, each weighing approximately one-eighth of a kilogram. Hernandez attempted to retrieve the package as it was delivered and was arrested after a sensor alerted that the package was opened.

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 and the U.S. Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge of the Boston Division.

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

ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Joseph Lamica, 26, of Brighton, NY, who was convicted of receipt of child pornography, was sentenced to 168 months in prison and 40 supervised release by U.S. District Judge Elizabeth A. Wolford.

Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that Lamica was a babysitter who advertised his services on Care.com and Craigslist.com. A family the defendant was working for discovered that Lamica was engaging in inappropriate behavior with the family’s nine-year-old child and terminated the babysitting contract. Thereafter, the defendant attempted to approach the child at school.

The Monroe County Sheriff’s Office obtained a search warrant and searched Lamica’s residence. Deputies found materials and notebooks with writings expressing the defendant’s interest in young children. Another search warrant was obtained for Lamica’s digital media hardware which contained images of child pornography, and a video of another minor the defendant babysat in 2014. 

The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation's Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.

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

BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Antonio Eldridge, 27, of Buffalo, NY, with being a felon in possession of a firearm. The charge carries a maximum sentence of 10 years in prison and a $250,000 fine.

Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that according to the indictment, on March 11, 2016, the Buffalo Police Department received information that the defendant, a convicted felon, had displayed a firearm to children. During this investigation, officers located Eldridge hiding in a basement crawl space of the children’s residence. Officers recovered a Winchester Model 69A .22 caliber rifle hidden under a mattress in this residence. The defendant had previously been issued an order of protection to keep away from both the children and the residence. As a convicted felon, Eldridge is prohibited from legally possessing a firearm.

The indictment is the culmination of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, 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 

ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Gordon L. Montgomery, 57, of Batavia, NY, who was convicted of conspiracy to distribute, and possess with intent to distribute, 50 grams or more of methamphetamine, was sentenced to 60 months in prison by U.S. District Judge Charles J. Siragusa.

Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that the charges resulted from a joint federal, state and local investigation, which revealed that Montgomery was responsible for traveling to California on two occasions in 2007 and obtaining quantities of methamphetamine from Richard W. Mar, the President of the Hell’s Angels, Monterey (CA) Charter, and transporting the methamphetamine back to the Western District of New York, where it was distributed to others.  The defendant made the trips to California on behalf of two other co-conspirators, James H. McAuley, Jr., then the Vice President of the Hell’s Angels, Rochester Charter, and McAuley’s wife, Donna Boon. McAuley and Boon sent Montgomery on both trips, paying for his airfare and paying him a $1,000 fee for each trip. The defendant obtained and transported between 500 grams and 1.5 kilograms of methamphetamine on the two trips.

This case is part of a larger investigation that resulted in the indictment and arrest of members and associates of the Rochester and Monterey (California) Hell's Angels for drug trafficking and racketeering-related offenses in February 2012. Seven defendants were charged with conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of methamphetamine.  All of the defendants – Mar; McAuley, of Oakfield, NY; Boon, of Oakfield, NY; Jeffrey A. Tyler, of Rochester; Richard E. Riedman, of Webster, NY; and Paul Griffin, of Blasdell, NY – have been convicted of  drug trafficking offenses based on their roles in the methamphetamine conspiracy.  Judge Siragusa sentenced Griffin to probation and Riedman to 37 months in prison, and the remaining defendants are awaiting sentencing.  

Rochester Hell's Angels member Robert W. Moran, Jr. a/k/a Bugsy, of Rochester, was convicted of conspiracy to commit assault with a dangerous weapon in aid of racketeering activity. Gina Tata, of Rochester, was convicted of being an accessory after the fact to the conspiracy to commit assault with a dangerous weapon in aid of racketeering activity. Another defendant, Timothy M. Stone, of Gates, NY, was convicted of being an accessory after the fact to the assault, and was sentenced to 12 months in prison.

The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam Cohen, the Genesee County Sheriff's Office, under the direction of Sheriff Gary T. Maha, 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 Craig Hanesworth, the City of Batavia Police Department, under the direction of Chief Sean Shawn Heubusch, and the Village of LeRoy Police Department.

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

Rochester, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester, NY has returned a two-count indictment charging Jennifer Passeck of embezzling and converting to her own use proceeds and property of the United States Postal Service. The charges carry a maximum penalty of 10 years in prison, a fine of $250,000, or both.

Assistant U.S. Attorney Bradley E. Tyler stated that, according to the indictment, the defendant she was a Relief Postmaster in the Sodus Point, NY post office between March 2013 and March 2015. During that time, Passeck is accused of stealing stamps, money orders and post office box rental payments totaling $19,504.

The indictment is the culmination of an investigation on the part of Inspectors of the United States Postal Service, Office of Inspector General, under the direction of Monica Weyler, Eastern Area Field Office, Philadelphia, PA. 

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.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an eight-count indictment charging Emmanuel Guobadia, 41, formerly of Atlanta, Georgia, with wire fraud and aggravated identity theft. The wire fraud charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both, and the aggravated identity theft charge carries a maximum penalty of two years in prison which would run consecutively to the sentence imposed for the wire fraud violation.

Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, state that according to the indictment, the defendant committed fraud against the Internal Revenue Service by electronically filing false and fraudulent income tax returns and claiming refunds to which he was not entitled. The case came to the IRS’s attention when it was discovered that a bank account in the Western District of New York was being used to facilitate the attempted refund claims for over 600 fraudulent tax returns, claiming over $1,200,000 in fraudulent tax refunds. The IRS refunded and deposited over $178,000 into this bank account. The investigation revealed that between May 2012 and July 2012, for 37 of the over 600 false claims which resulted in refunds to the bank account in the Western District of New York,  most of the money was then wired to the defendant’s bank account in Georgia.
The indictment is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigations, under the direction of Shantelle Kitchen, Special Agent in Charge of the New York Field Office.

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

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

BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Tamara Ward, 39, of Buffalo, NY, pleaded guilty to possession of an unlawful authentication feature of the United States, before U.S. Magistrate Judge Jeremiah J. McCarthy. The charges carry a maximum penalty of two years in prison and a $200,000 fine.

Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that according to the indictment, Ward applied for two separate automobile loans and in each instance provided false information.  The defendant falsely represented on each of the applications that she was employed by the Internal Revenue Service, earning an annual salary of $50,000.  Ward has never been employed by the IRS.

In a related civil forfeiture proceeding, the defendant agreed to forfeit any interest she had in the proceeds of the sale of one of the automobiles Ward fraudulently purchased.  The defendant also agreed to make restitution in the amount of $1,460.15 for the second automobile. 

The plea is the culmination of an investigation by Treasury Inspector General for Tax Administration (TIGTA), Office of Investigations, under the supervision of Special Agent in Charge, Robert E. O’Malley.

Sentencing is scheduled for July 29, 2016 before Judge McCarthy.

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

BUFFALO, N.Y. - U.S. Attorney William J. Hochul Jr. announced today that Derek McQuiller, 42, of Buffalo, NY, who was convicted following a jury trial of possession with intent to distribute cocaine, was sentenced to 60 months in prison by Lawrence J. Vilardo. The defendant faced, and the Government advocated for, a sentence of 262 to 327 months in prison, a sentence which was recommended under federal sentencing guidelines. 

  Assistant U.S. Attorneys Edward H. White and Stephanie O. Lamarque, who handled the prosecution of the case, stated that during a traffic stop on April 22, 2015, the defendant threw a plastic bag out of the passenger window. The bag was recovered and found to contain 10 individually wrapped baggies of cocaine. McQuiller threw another plastic bag out of the driver’s side window. That bag was recovered and found to contain marijuana. During a subsequent search of the vehicle, another baggie of cocaine was discovered under the passenger floor mat. 
  The defendant was transported to the Town of Tonawanda Police Station and three additional baggies of cocaine were found later that night under the bench where McQuiller had been booked. The defendant also was alleged to have given a baggie of cocaine to a female acquaintance earlier that night in a motel room.
  In addition, a witness for the Government testified at trial that the defendant sold her drugs for three years prior.  
  McQuiller has five prior state and federal convictions, all for drug trafficking offenses.
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 Town of Tonawanda Police Department, under the direction of Chief Jerome C. Uschold III, and the Kenmore Police Department, under the direction of Chief Peter Breitnauer.

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

BUFFALO, N.Y. - U.S. Attorney William J. Hochul Jr. announced today that Derek McQuiller, 42, of Buffalo, NY, who was convicted following a jury trial of possession with intent to distribute cocaine, was sentenced to 60 months in prison by Lawrence J. Vilardo. The defendant faced, and the Government advocated for, a sentence of 262 to 327 months in prison, a sentence which was recommended under federal sentencing guidelines. 

  Assistant U.S. Attorneys Edward H. White and Stephanie O. Lamarque, who handled the prosecution of the case, stated that during a traffic stop on April 22, 2015, the defendant threw a plastic bag out of the passenger window. The bag was recovered and found to contain 10 individually wrapped baggies of cocaine. McQuiller threw another plastic bag out of the driver’s side window. That bag was recovered and found to contain marijuana. During a subsequent search of the vehicle, another baggie of cocaine was discovered under the passenger floor mat. 
  The defendant was transported to the Town of Tonawanda Police Station and three additional baggies of cocaine were found later that night under the bench where McQuiller had been booked. The defendant also was alleged to have given a baggie of cocaine to a female acquaintance earlier that night in a motel room.
  In addition, a witness for the Government testified at trial that the defendant sold her drugs for three years prior.  
  McQuiller has five prior state and federal convictions, all for drug trafficking offenses.
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 Town of Tonawanda Police Department, under the direction of Chief Jerome C. Uschold III, and the Kenmore Police Department, under the direction of Chief Peter Breitnauer.

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

BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Yvonne E. Borders, 43, of Cheektowaga, NY, pleaded guilty to theft of government funds before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. The charge carries a maximum penalty of one year in jail and a $100,000 fine.

Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that Borders applied for and collected unemployment benefits from the United States Department of the Treasury that she was not entitled to because she was working at the time for the Internal Revenue Service. Individuals are eligible for unemployment benefits when they become unemployed through no fault of their own and meet certain eligibility requirements. However, the defendant certified claims for benefits while she was employed as a contact representative with the IRS and failed to report this work to the New York State Department of Labor.

In total, Borders collected $18,550 in benefits that she was not entitled to from January 2009 through December 2013.

The plea is the result of an investigation by the Department of the Treasury, Treasury Inspector General for Tax Administration, under the direction of Robert E. O’Malley, the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Jonathan Mellone, New York Region, and the New York State Department of Labor, under the direction of Commissioner Roberta Reardon.
Sentencing is scheduled for July 27, 2016 at 10:30 a.m. before Judge Schroeder.

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

BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Earl Brown, Sr., 54, of Houston, Texas, pleaded guilty to conspiracy to possess with intent to distribute and distribute five kilograms or more of cocaine and money laundering conspiracy, before U.S. District Judge Lawrence J. Vilardo. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life and a $10,000,000 fine.

According to Assistant U.S. Attorney George C. Burgasser, Franklin Richards was a major supplier of cocaine to a drug trafficking organization in Buffalo known as L.R.G.P., a violent street gang named after the East Side streets of Lombard, Rother, Gibson and Playter. Richards obtained multiple kilograms of cocaine on a regular basis from the defendant Earl Brown which was shipped or transported from the Houston area to Buffalo. Richards then distributed cocaine to Dewayne Gray, who was the leader of the L.R.G.P. organization. Gray then processed much of the cocaine into crack cocaine which was later sold by various L.R.G.P. members. The cocaine was sold at various locations in the Broadway/Fillmore area of Buffalo.

Brown was also involved in money laundering activities. On December 14, 2012, Franklin Richards attempted to send $112,000 in drug proceeds to the defendant but the money was seized at the Buffalo Niagara International Airport.

Brown was arrested along with seven other defendants, all have been convicted. 

The plea is the culmination of an investigation on the part of Special Agents of 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 James J. Hunt, Special Agent in Charge, New York Field Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the New York State Police, under the direction of Major Steven Nigrelli, and the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast.

Sentencing is scheduled for August 3, 2016 at 10:00 a.m. before Judge Villardo.

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

ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that 11 individuals were charged in two complaints with conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine and crack cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life and an $8,000,000 fine.
Named in the complaints are: • Dennis Smith, aka “Fish”
• Darren Smith, aka “Fat Boy”
• Kaleaf Ball, aka “Leaf”
• Reginald Streeter, aka “Street”
• Juan Sampel
• Angel Ocasio
• Jose Quintana
• Luz Morales, aka “Leida”
• Jason Gibson
• Kelly Shanks
• Jose Gonzalez

“This represents yet another important success in our continuing efforts to protect the public from the twin dangers of firearms and large scale narcotics trafficking,” said U.S. Attorney Hochul.  “As this case demonstrates, law enforcement stands shoulder to shoulder in our commitment to bring to justice, all who engage in such dangerous criminal conduct.” 
Assistant U.S. Attorney Jennifer M. Noto, who is handling the case, stated that according to the complaints, from 2015 through April 26, 2016, the defendants operated an ongoing drug trafficking conspiracy in the City of Rochester. Members of this conspiracy were responsible for the importation and distribution of large quantities of cocaine and cocaine base in the Rochester area. During the investigation, law enforcement officers conducted controlled purchases of cocaine, utilized federal wire taps to intercept electronic and wire communications over various cellular telephones utilized by members of the conspiracy, and conducted search warrants on multiple U.S. Priority Mail parcels containing cocaine and cash proceeds from the sale of cocaine.
The lengthy investigation culminated in the arrest of the 11 individuals named in the complaints and the execution of multiple search warrants. During the execution of the search warrants, law enforcement officers seized approximately five kilograms of cocaine and over 100 grams of cocaine base; quantities of heroin and marijuana; more than $200,000 in cash; and several firearms.  Five of the individuals named in the complaint have one or more prior drug felony convictions. 
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, the Rochester Police Department, under the direction of Chief Michael Ciminelli, the Greater Rochester Area Narcotic Enforcement Team, under the direction of Lt. Dave Gebhardt, and the U.S. Postal Inspection Service, under the direction of Inspector in Charge Shelly Binkowski, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge.   
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

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

BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a 114 count indictment charging Dr. Eugene Gosy, 55, of Clarence, NY, with conspiracy to distribute controlled substances, unlawful distribution of narcotics, conspiracy to commit health care fraud, and health care fraud. The charges carry a maximum penalty of 20 years, a $1,000,000 fine or both.

“As alleged, this defendant took advantage of his medical license and the trust placed in him by patients, and created a highly sophisticated criminal enterprise responsible  for  the  mass  distribution  of  addictive  prescription  opioids,”  said  U.S. Attorney Hochul. “The defendant ignored the true needs of suffering individuals, falsified his participation in required medical training, directed unqualified staff to authorize prescriptions,  and  supplied  patients  with  dangerous  controlled  substances  contra- indicated by the patient’s condition.   By turning his patients into dependents, this defendant and his practice became a criminal conspiracy to convert real pain into the defendant’s own considerable profit.”

Drug Enforcement Administration Special Agent in Charge James J. Hunt stated, “Dr. Gosy’s medical clinic is the modern day version of 19th Century opium dens responsible for fueling opioid addiction, overdoses and death. Similar to blood money, it is alleged that Dr. Gosy prescribed millions of prescription pills for no legitimate medical purpose in exchange for profit. There is an irrefutable link between the abuse of pain medication and heroin abuse which has devastated families in Buffalo and throughout our nation. This investigation was a collaboration of ongoing law enforcement efforts in
  battling drug traffickers of all kinds – those with stethoscopes and those with loads of glassines.”

“Gosy’s lack of concern for the health and well-being of his patients -- and their affected families and friends -- speaks volumes to his arrogance,” said FBI Special Agent in Charge Adam S. Cohen. “Doctors like Gosy should work to heal the sick, not increase their patients’ pain and suffering for their own greed and personal gain.”

Assistant U.S. Attorneys George C. Burgasser and Elizabeth R. Moellering, who are handling the case, stated that according to the indictment, between 2006 and the present, the defendant, a self-described pain management doctor, distributed controlled substances, such as fentanyl, oxycodone, morphine, and hydrocodone for reasons other than legitimate medical purposes. The defendant is accused specifically of illegally prescribing the controlled substances in return for payments from patients and insurance companies.

The indictment alleges that defendant attracted and thereafter maintained repeat visits by his patients by operating his pain management clinic in a variety of manners contrary to accepted medical practice. These methods included:

• issuing prescriptions for controlled substances to patients despite obvious indications that the patients were abusing and misusing the medications; • falsifying  completion  of  training  requirements,  including  Continuing
Medical Education courses, Worker’s Compensation training and Infectious Disease  Control  training,  by  directing  office  staff  to  complete  online courses for him; • signing blank prescriptions and directing and permitting others who were unqualified to fill out the remaining required information, such as name of patient, drug, and dosage; • creating  and  utilizing  a  telephonic  patient  prescription  renewal  process which allowed persons to obtain controlled substances prescriptions from individuals not medically trained or certified to do so, and without adequate medical review; • prescribing a highly regulated controlled substance (buprenorphine) under the cover of pain management to circumvent federal regulations limiting the number of patients that any given doctor may treat (100 patients).

In addition, between 2010 and December 2015, the defendant is accused of defrauding insurance companies who paid New York State Workers’ Compensation claims,  including  the  New  York  State  Insurance  Fund.  The  allegations  center  upon
  occasions when Gosy traveled outside the Buffalo area but nevertheless submitted and purported to electronically sign claims for the treatment of patients provided by other staff members.

The indictment 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, the Federal Bureau of Investigation’s Western New York Health Care Task Force, under the direction of Special Agent in Charge Adam S. Cohen, the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott Lampert, the Army National Guard - New York National Guard Counterdrug Task Force, under the direction of Lt. Col. Nicholas Dean, the New York State Department of Financial Services, under the direction of Maria T. Vullo, Acting Superintendent, the New York State Office of the Workers’ Compensation Fraud Inspector General, under the direction of Inspector General Cathy Leahy Scott and the New York State Bureau of Narcotics Enforcement.

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.-U.S. Attorney William J. Hochul Jr. announced today that James Parish, 31, of Carlsbad, California, who was convicted of conspiracy to distribute 100 kilograms or more of marijuana and money laundering conspiracy, was sentenced to 120 months in prison by U.S. District Judge Richard J. Arcara.

Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that between January and September 2014 the defendant sent packages of marijuana from the Carlsbad, California area to Western New York. The marijuana was then distributed and more than $800,000 in proceeds shipped back from Western New York to the defendant in California.

The investigation featured numerous successful law enforcement interceptions and discoveries. For example, On August 21, 2014, the Drug Enforcement Administration seized a package that a person was attempting to ship at a local shipping company. The package contained $66,705 in United States currency. On that same date, the DEA seized a second package containing $77,000 in United States currency that was shipped to a shipping company in Carlsbad, California. On September 26, 2014, DEA agents executed a search warrant at co-conspirator Benjamin Golembiewski’s Buffalo residence and seized $224,123 in United States currency.

Regarding seizures of drugs, on September 18, 2014, Parish dropped off two large boxes at the shipping company in Carlsbad to be shipped to the Buffalo area. These boxes were seized by the DEA and found to contain a total of 30 pounds of marijuana.

The investigation concluded on September 30, 2014, when the defendant traveled from California to Buffalo to collect approximately $600,000 in payments for the shipped marijuana. Parish, who was arrested at the Buffalo Niagara International Airport, was planning to stay at a hotel on Genesee St. in Cheektowaga. The investigation determined that Parish shipped a box to the hotel in his name, and upon locating the box, discovered that it contained an AirSoft Gun, a taser, a bullet proof vest, a knife, handcuffs, a flashlight, a tourniquet strap, a bandage kit and a GPS tracking device.

Defendant Golembiewski was sentenced to 37 months in prison.

Today’s sentencing is the result of an investigation on the part of 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 W. Gast.

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

BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Rico Vendetti, 45, of Rochester, NY, who was convicted of racketeering following a home invasion robbery that led to the death of an elderly Medina, NY man, was sentenced to 240 months in federal prison by U.S. District Judge Richard J. Arcara. In addition, Donald Griffin, 28, also of Rochester, who was convicted of committing murder in aid of racketeering, was sentenced to 240 months in prison as well.

“This case - which began with shoplifting and ended with murder – justly earned the defendant a lengthy sentence in federal prison,” said U.S. Attorney Hochul.  “As the case also demonstrates, this Office will utilize all of the tools given by Congress, including the racketeering laws, to bring organized criminals to justice. While unfortunately nothing law enforcement does can restore Mr. Marciniak to his family, certainly today’s sentence brings a measure of closure in that justice has been served.”   
 
Assistant U.S. Attorney Assistant U.S. Attorney Scott S. Allen, Jr., who, along with retired Assistant U.S. Attorney Anthony M. Bruce, handled the case, stated that beginning  in  approximately  2005,  the  defendant  utilized a number of shoplifters who engaged in shoplifting of items from stores such as Walmart,  Sears, Target, JoAnn Fabrics, Home Depot, Tops Markets,  Wegman's, and  various  chain  drug  stores,  most  of which were located in Monroe  and Genesee Counties.

The shoplifters stole merchandise that Vendetti told them he needed which he subsequently sold through eBay accounts he maintained. The defendant paid the shoplifters would buy from the boosters, the defendant told them he would pay them about 25¢ on the dollar of the normal retail price of the merchandise.  Using the defendant's merchandise lists, the shoplifters went into the stores, at times alone and at times in teams, to shoplift.  Among  the items  stolen  in  this fashion  were breast  pumps,  Crest  Whitestrips,  cross  stitch  and  needlepoint  kits, electric toothbrushes  and replacement heads, computer  memory sticks and flash drives, pet supplements and DNA tests for pets, razors, razor blades  and   replacement   razor  heads,   tool  sets,  vacuum   cleaners, binoculars, batteries, plumbing fixtures and KitchenAid mixers. In total, Vendetti obtained and then sold over $700,000 in merchandise.

In July 2010, the defendant, the former owner of Eastside Gold & Car Audio, formerly in Rochester, hired co-defendant Arlene Combs to travel from Rochester to the Medina, NY home of 78 year old Homer Marciniak to steal Marciniak’s valuable comic book collection. Combs recruited co-defendants Griffin, Albert Parsons, and Juan Javier for the home invasion, promising each  $1,000.

In executing their plan, in the early morning hours of July 4, 2010, Combs, along with Griffin, Parson, and Javier, drove from Rochester to Medina and cut Marciniak’s phone line. In the early morning hours of the following day, July 5, 2010, the gang returned to Marciniak’s home. Wearing ski masks and gloves, Griffin, Parsons, and Javier forcibly entered Marciniak’s home through a first story window. During the course of the burglary, Marciniak, who had a serious heart condition, woke and confronted the burglars. Griffin struck Marciniak in the face and then, along with Javier, bound his hands with bed linens. Javier then verbally threatened Marciniak with a BB gun in hand.  Griffin, Parsons, and Javier ultimately located the comic book collection along with several strong boxes containing cash, coins, and other valuables.

After Griffin, Parsons, and Javier fled the scene with Combs, Marciniak freed himself and was taken to Medina Memorial Hospital for treatment of his facial injuries. After Marciniak was treated and released, however, he suffered a heart attack, was re-admitted to the hospital, and died shortly thereafter. Medical experts concluded that the blow Griffin struck, as well as the emotional trauma caused by the burglary, directly contributed to Marciniak’s cardiac arrest and resulting death.

Griffin, Parsons, and Javier gave the comic books to Combs who, along with another codefendant, Terry Stewart, took the comic books to Vendetti later in the day on July 5. When Vendetti learned that the burglary resulted in Marciniak’s death, Vendetti disposed of the comic books.

Law enforcement officials within the Rochester Police Department identified the defendants during the course of a separate investigation in October 2010.  The defendants were arrested soon thereafter.  Soon after the arrest, Vendetti attempted to obstruct justice by agreeing to have a phony witness submit a false affidavit, and by telling codefendant Brandon Meade to “keep his mouth shut” if approached by law enforcement. 

Convicted in connection with this case:

• Rico Vendetti was convicted of racketeering and sentenced to 240 months in federal prison on April 20, 2016.
• Donald Griffin was convicted of committing a violent crime in aid of racketeering: murder, and sentenced to 240 months in federal prison on April 19, 2016.
• Arlene Combs was convicted of racketeering and sentenced to 240 months in federal prison on March 22, 2016.
• Albert Parsons was convicted of a violent crime in aid of racketeering: assault resulting in bodily injury, and is scheduled to be sentenced on June 9, 2016.
• Juan Javier, who was 17 at the time of the burglary, was prosecuted as an adult in Orleans County, and sentenced to seven years in state prison.
• Terry Stewart was convicted of racketeering and was sentenced to 55 months in federal prison.
• Dayon Shaver was convicted of conspiring to traffic in stolen goods across state lines on March 21, 2016, and was sentenced to 46 months in federal prison.
• Brandon Meade was convicted of conspiring to traffic in stolen goods across state lines and was sentenced on January 21, 2016 to time-served after serving nine months in federal prison.

The sentencing is the result of an investigation on the part of Special Agents from the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the New York State Police, under the direction of Major Craig Hanesworth, the Orleans County Sheriff’s Department, under the direction of Sheriff Scott Hess, the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn, the Medina Police Department, under the direction of Chief Jose Avila and Officers from the Rochester Police Department, under the direction of Chief Michael Ciminelli. Special assistance was provided by Orleans County District Attorney Joseph Cardone.

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

BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Norris King, 52, of Buffalo, NY, who was convicted of theft and assault within special maritime and territorial jurisdiction of the United States, was sentenced to five months in prison, followed by five months of community confinement in a community treatment center, by U.S. Magistrate Judge Hugh B. Scott.

Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that on December 9, 2015, at the Veterans’ Affairs Medical Center in Buffalo, the defendant attempted to steal three North Face winter jackets, each valued at $179.00, from the Veteran Canteen Services. King was pursued and ultimately detained by the store manager and a second VA employee. During flight, the defendant assaulted an elderly veteran seeking medical treatment.

The sentence is the result of an investigation by the U.S. Department of Veterans’ Affairs, Criminal Investigations Division, under the direction of Special Agent in Charge Jeffrey Hughes, Northeast Field Office.

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

BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Kevin D. Waczkowski, 31, of Elma, NY, was arrested and charged by criminal complaint with possession and receipt of child pornography. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 20 years and a fine of $250,000.

Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that according to the complaint, on April 15, 2016, following an online undercover investigation, a search warrant was executed at the residence of the defendant who is a maintenance technician with the Iroquois Central School District. Law enforcement officers seized a desktop computer and a laptop computer. An initial forensic analysis recovered images of child pornography.

The complaint is the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen.  The task force includes the Buffalo Police Department, Cheektowaga Police Department, and Niagara County Sheriff’s Office.

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

ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Tyrell Fuqua-Hayes, 38, of Jamestown, NY, who was convicted of making false statements and representations to the FBI, was sentenced to 27 months in prison by Chief U.S. District Judge Frank P. Geraci.

Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that in January 2015, Hayes alleged that he met a man who was arrested in another federal case while they were in custody together at the same jail.  The defendant claimed that the man provided him with contact information and advised Hayes that he would be reaching out to him.

In May 2015, Hayes advised the Federal Bureau of Investigation that he was receiving text messages from the man he met in jail indicating that the man wanted to pay the defendant $5000 to kill witnesses in that man’s case. The defendant later admitted he created the text messages himself and that lied about the recent conversations between the man and himself.   

The sentencing is the result of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force which includes the Rochester Police Department, the Monroe County Sheriff’s office and Immigration and Customs Enforcement, Homeland Security Investigations.

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

BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a 24 count indictment charging Gregory Gibbons, 50, of Thornwood, NY; Julio Rodriguez, 51, of Bronx, NY; Laurence Savedoff, 42, of New City, NY, and Tina Brown, 40, of Bronx, New York with conspiracy to commit wire and mail fraud affecting financial institutions, wire and mail fraud affecting financial institutions, and bank fraud. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.

“Persons who engage in mortgage fraud undermine the American dream of home ownership,” said U.S Attorney Hochul. “Such actions - if successful - hurt potential homeowners, banks and government programs designed to assist homebuyers. 

"In the last number of years, we have seen enormous and damaging developments in the mortgage and housing markets, said U.S. Housing and Urban Development, Office of Inspector General, Special Agent in Charge Brad Geary. “Indictments, such as this, set an important precedent that this type of behavior will not be tolerated and will be aggressively pursued. We are deeply committed to working in partnership with our federal law enforcement counterparts to ensure that corrupt individuals do not use their positions to enrich themselves at the expense of the government.”

Assistant U.S. Attorneys Kathleen A. Lynch and Elizabeth R. Moellering, who are handling the case, stated that according to the indictment, the defendants engaged in scheme to obtain mortgages on behalf of borrowers who would not have otherwise qualified for those loans if their true income, asset and employment information was submitted to the lender for approval and for FHA insurance.
 Specifically, to secure a loan, the defendants would submit among other things, employment documents that falsified the purchaser’s income, assets, and place of employment. In addition, the defendants submitted false settlement statements to the banks indicating where the proceeds of the loan were disbursed. 

As a result, based on the fraudulent information and certifications submitted, loans amounting to more than $4,100,000 were approved for the borrowers. Subsequently, the borrowers defaulted on the loans and the properties are now in various stages of foreclosure.

Defendants Laurence Savedoff, Julio Rodriguez and Tina Brown, were arraigned this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and were released with conditions.

The indictment is the culmination of an investigation by the United States Postal Inspection Service under the direction of Shelly Binkowski, Inspector in Charge, Boston Division, the United States Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Brad Geary; and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.  Additionally, the New York State Department of Financial Services assisted with the investigation.

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.-U.S. Attorney William J. Hochul Jr. announced today that Maurilio Bautista-Feria, 48, most recently of Olean, NY, was convicted of reentry of a removed alien subsequent to a conviction for an aggravated felony and sentenced to 12 months in prison by Senior U.S. District Judge William J. Skretny.

Special Assistant U.S. Attorney Brian J. Counihan, who handled the case, stated that the defendant was convicted in 2009 of harboring illegal aliens. Subsequent to that conviction, Feria was removed from the United States to Mexico for having illegally entered the United States and committing the felony. In 2013, U.S. Immigration and Customs Enforcement found the defendant working at a Mexican restaurant in Olean.     

The sentencing is the result of an investigation by the Violent Criminal Alien Section of Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction of Special Agent in Charge Michael Phillips.

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

BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Luis Hernandez, age 26, of Buffalo, New York, who was convicted of discharging a firearm during a crime of violence, was sentenced to 10 years imprisonment by U.S. District Judge Richard J. Arcara.

Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that on April 17, 2006, the defendant assisted a group of 10th Street Gang members, who were looking to shoot rival 7th Street Gang members, by firing a shotgun at a group of people outside of a residence on Pennsylvania Street on the West Side of Buffalo.  On that date, the defendant was among a group of six (6) 10th Street Gang members and associates who were armed and fired shots at the victims.  During the shooting, the defendant possessed a shotgun and discharged this firearm in the general vicinity of the victims.  In total, dozens of shots were fired at the victims from the various firearms possessed by the defendant and other 10th Street Gang members and associates. Brandon MacDonald and Darinell Young were both shot and killed as a result of injuries sustained during the shooting. 

The defendant is the tenth (10) person convicted for his role in the shooting deaths of Brandon MacDonald and Darinell Young, and is the fifth (5) person to be sentenced.  The sentencing is the culmination of an investigation by the Buffalo Police Department, Federal Bureau of Investigation, New York State Police, and Bureau of Alcohol, Tobacco, Firearms, and Explosives.