The United States Attorney's Office for the Northern District of New York has announced that its Asset Recovery Unit collected over $39 million in fiscal year 2024 from civil, criminal, and forfeiture actions. This includes $14,085,025 from criminal actions, $15,874,944 from civil actions, and $9,302,354 from asset forfeiture actions.
Additionally, the district collaborated with other U.S. Attorney’s Offices and components of the Department of Justice to collect an extra $18,995,733 in jointly pursued cases. Of this sum, $39,092 was recovered through criminal actions and $18,956,641 through civil actions.
U.S. Attorneys’ Offices are tasked with enforcing and collecting debts owed to the United States and federal crime victims. Restitution payments are made to victims who have suffered physical injury or financial loss due to federal crimes. The Crime Victims Fund receives criminal fines and felony assessments for distribution to victim compensation programs.
Forfeited assets contribute to the Department of Justice Assets Forfeiture Fund which aids in compensating crime victims and supporting law enforcement activities. In fiscal year 2024 alone, $8,330,553 was used for victim compensation from previously forfeited funds.
United States Attorney Carla Freedman remarked: “These are great results – every recovery of funds strikes a blow for justice.” She highlighted her creation of the Asset Recovery Unit after taking office in 2021 as part of efforts to ensure criminals face consequences while victims receive compensation.
A notable recovery included a May settlement where $11.3 million was retrieved under a civil agreement related to cybersecurity failures by Guidehouse Inc. and Nan McKay & Associates concerning federal rental assistance during COVID-19.
In February 2024, nearly $5 million was restored from Richard J. Sherwood and Thomas K. Lagan's fraudulent activities against estates they managed; these funds were returned to various organizations including churches and civic groups.
Another significant case involved recovering $1 million from Derek R. Schwartz in September following his conspiracy with former ValueWise CEO Michael T. Mann in defrauding financing companies.
The Asset Recovery Unit focuses on stripping criminals of illicit gains while facilitating restitution for victims alongside enforcing debt collections linked to federal crimes. The team comprises Assistant U.S Attorneys Lisa Fletcher, Elizabeth Conger and Melissa Rothbart among others contributing toward these objectives.
