Category: Security

Source: US FBI

When Watson Needed to Prove His False Claims To Investors, He Directed Conspirators to Forge Documents and Impersonate Executives from Other Companies

Source: US FBI

BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Dejan Karlovic, 29, of Amherst, NY, was arrested and charged by criminal complaint with theft of government funds, which carries a maximum penalty of 10 years in prison and a $250,000 fine.

Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that according to the complaint, between October 16, 2023, and July 2, 2024, Karlovic was employed by Jericho Road as a Senior Grants Accountant. In this position, he had access to three commercial credit cards issued through M&T Bank. Among the expenses charged to these credit cards were charges purportedly related to UHAUL, with many of the most significant UHAUL related charges supported by invoices from an entity named D and D. Between March 1 and June 26, 2024, there were more than $574,000 in D and D related transactions conducted on the credit cards.

In March 2024, Jericho Road switched its credit card process to an online credit card management system called Ramp. Ramp accounts were issued to a limited number of personnel, which did not include Karlovic. One employee who was to receive a Ramp account with administrative access, did not establish his user profile in a timely manner. However, an unknown individual established the employee’s profile on Ramp. At approximately the same time the profile was established, an invitation for administrative access to Ramp was sent to Karlovic and a credit card through Ramp was issued to Karlovic. Karlovic was questioned about this, and he admitted that he received the invitation. Karlovic’s access to the Ramp credit card was revoked. However, when the Ramp program was rolled out to Jericho Road, Karlovic received access to two credit cards. He was to manage the program expenses related to these cards, and was able to make legitimate program purchases using both these credit cards. Between April 10 and June 17, 2024, there were more than $10,000 in D and D related transactions that were conducted on one of the two credit cards Karlovic had access to through Ramp.

Subsequent investigation determined that some of the funds allegedly stolen by Karlovic in the name of D and D, were transferred to his personal bank account at Northwest Bank. The timing of the transactions coincided with transactions on the M&T credit cards. Jericho Road became aware of the suspicious nature of the transactions involving D and D, conducted an internal investigation, and concluded that the charges were not for legitimate business purposes. Since Karlovic’s access was revoked, no new purchases from D and D have cleared on Ramp.

The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.

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.  

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Source: US FBI

BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Deshema Clark, 46, of Buffalo, NY, who was convicted of making a materially false statement,  was sentenced to serve 30 days in prison and two years’ supervised release by Chief U.S. District Judge Elizabeth A. Wolford.  

Assistant U.S. Attorneys Maeve E. Huggins and Joseph M. Tripi, who handled the case, stated that on October 9, 2019, during the course of a federal criminal investigation, the FBI executed a search warrant at Clark’s Buffalo residence. During the search, Clark spoke with an FBI Special Agent, then went to Buffalo Police Department Headquarters to provide a voluntary statement to law enforcement. Clark knowingly made several false statements regarding the whereabouts of DeAndre Wilson during the evening of September 15, 2019, through the morning of September 16, 2019. Clark falsely stated that she and DeAndre Wilson returned to her residence after attending a concert the evening of September 15, 2019, ate dinner and went to sleep. Clark further falsely stated that a few hours later, she woke up and DeAndre Wilson was still asleep. Clark told investigators that she did not remember DeAndre Wilson leaving her residence on the evening of September 15, 2019, through the morning of September 16, 2019. However, Clark knew that DeAndre Wilson did not remain at her residence, eat dinner, and go to bed.

DeAndre Wilson was convicted by a federal jury and sentenced to serve three consecutive life sentences plus 30 years for the murders of Miguel Anthony Valentin-Colon, Nicole Marie Merced-Plaud, and Dhamyl Roman-Audiffred on or about September 15-16, 2019.

The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia; the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia; the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia; the Erie County Central Police Services Forensic Laboratory.

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Source: US FBI

BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Charles Porterfield, 37, of Springville, NY, who was convicted by a federal jury of production of child pornography and committing the offense as a registered sex offender, was sentenced to serve 420 months in prison by U.S. District Judge Richard J Arcara.

Assistant U.S. Attorney Paul E. Bonanno, who handled the prosecution of the case, stated that in 2011, Porterfield was convicted in Erie County Court of Engaging in a Course of Sexual Conduct in the 2^nd Degree and sentenced to five years in prison and three years post release supervision. Porterfield was also required to register as a sex offender for life. Less than one month after completing his post release supervision, Porterfield paid a 13-year-old girl (Victim) to engage in an online sexual relationship. Porterfield used the Victim to produce images and videos of child pornography.

The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, and the Northern York County Regional Police Department.  

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Source: US FBI

ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Ryan M. Newman, 33, of Corning, NY, was arrested and charged by criminal complaint with production, distribution, receipt, and possession of child pornography. As a convicted sex offender at the time of the alleged crimes, Newman faces an enhanced minimum penalty of 25 years in prison, of maximum penalty of 50 years, and a $250,000 fine.

Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that according to the complaint, Newman was convicted of child pornography crimes by New York State in 2012, sentenced to serve a local jail term and 10 years’ probation, and required to register as a Level 3 Sex Offender, which is someone considered to be at high risk of re-offending and a threat to public safety. 

In January 2021, the National Center for Missing and Exploited Children (NCMEC) received a report from Snapchat that a user had uploaded a video of child pornography. NCMEC sent the tip to the New York State Police, who executed a search warrant on Newman’s person and residence in 2022. The search determined that Newman uploaded the child pornography video to Snapchat and possessed other child pornography on his electronic devices. Newman remained out of custody following the 2022 search warrant by the State Police. 

In April 2024, the FBI Corning received a tip that pornography involving a child in the Corning area, was distributed to an undercover agent in Illinois. Subsequent investigation determined that Newman sexually abused the child and produced the child pornography. Newman was taken into custody by the FBI and Corning Police. In addition, to federal charges, he is also facing charges in Steuben County Court.

Newman made an initial appearance today before U.S. Magistrate Judge Marian W. Payson and is being held without bail.     

The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, Corning Office, under the direction of Special Agent-in-Charge Matthew Miraglia, and the Corning Police Department, under the direction of Chief Kenzie Spaulding.

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.  

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Source: US FBI

BUFFALO, N.Y.- U.S. Attorney Trini E. Ross announced today that a federal jury has convicted Angela Burdorf, 44, of New Port Richey, Florida of wire fraud and conspiracy to commit wire fraud. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.

Assistant U.S. Attorneys Franz M. Wright and Aaron J. Mango, who handled the prosecution of the case, stated that between March 2016 and May 2017, Burdorf conspired with others to operate various illegitimate debt collection businesses in Western New York, from Kenmore, Buffalo, Lackawanna, to the Town of Niagara. The businesses employed fraudulent means to collect on debts, to re-collect on debts already collected, to over-collect on debts actually owed, and to process and transfer payments related to the collection of such debts. Burdorf’s businesses, and the businesses she associated with, used false and threatening statements during collection telephone calls in an effort to induce the payment of debts, including referencing criminal statutes, and threatening to file criminal complaints and/or arrest warrants. Debtors were routinely routed to employees who posed as attorneys during the calls, in order to intimidate debtors and collect payment.

The verdict is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino; the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Thomas Fattorusso; the Federal Matthew Miraglia; and the United States Postal Inspection Service, Boston Division, under the direction of Inspector-in-Charge Ketty Larco-Ward.

Sentencing is scheduled for November 26, 2024, at 12:30 p.m. before U.S. District Judge Richard J. Arcara, who presided over the trial.

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Source: US FBI

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

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

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

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

Source: US FBI

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

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

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

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

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

Source: US FBI

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

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

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

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

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

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

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

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

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

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

Source: US FBI

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

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

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

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

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