Middle District of Pennsylvania
Press releases recorded for this federal judicial district.
York County Man Sentenced to Fifteen Years for Producing Child Pornography and Impersonating A Deputy U.S. MarshalRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that John Bryan Snow, age 28, of Manchester, Pennsylvania, was sentenced on November 12, 2020 to 15 years’ imprisonment, to be followed by fifteen years of supervised release, by Chief U.S. District Court Judge John E. Jones III, for producing child pornography and impersonating a Deputy U.S. Marshal.
According to United States Attorney David J. Freed, Snow previously admitted that from January 2017 through February 2018, he impersonated a Deputy U.S. Marshal and claimed he was recruiting and training new employees for the U.S. Marshals Service. Snow further admitted that in connection with those efforts, he enticed a minor to produce a sexually explicit image in February 2018.
The case was investigated by the Federal Bureau of Investigation, the U.S. Marshals Service, and the Northern York County Regional Police Department. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
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Stroudsburg Woman Sentenced to 13 Months’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 10, 2020, Jennifer Annette Bush, age 45, of Stroudsburg, Pennsylvania, was sentenced to 13 months’ imprisonment and a three-year term of supervised release by United States District Judge Malachy E. Mannion, for drug trafficking offenses.
According to United States Attorney David J. Freed, during March 2018 and again during February 2019, Bush possessed with the intent to distribute several different illicit substances, including cocaine, heroin and synthetic opioid and fentanyl. After her initial March 2018 arrest by state authorities, Bush returned to drug trafficking in February 2019, prompting the initiation of the instant federal case.
The matter was investigated by the Federal Bureau of Investigation (FBI), the Pennsylvania State Police, and the Stroud Area Regional Police Department. Assistant U.S. Attorney Jeffery St John prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Delaware County Attorney Convicted of Bank Fraud and Identity Theft OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dory L. Sater, age 46, of Drexel Hill, Pennsylvania, was convicted on November 10, 2020, following a jury trial, of bank fraud and aggravated identity theft offenses. The six-day trial was held before United States District Court Judge Robert D. Mariani in Scranton.
According to United States Attorney David J. Freed, the jury returned the guilty verdict on both counts in the indictment after approximately one hour of deliberation. Sater was convicted of one count of bank fraud and one count of aggravated identity theft.
The evidence presented at trial showed that in August 2017, Sater forged a mortgage satisfaction piece and filed the instrument with the Luzerne County Recorder of Deeds Office. The forged document erased a mortgage held by Fidelity Deposit & Discount Bank on the Mountaintop, Pennsylvania residence of Sater’s parents. The mortgage had served as collateral for a $50,000 line of credit that Sater had withdrawn in its entirety. Evidence at trial established that Sater’s parents were considering selling their residence while the forged satisfaction piece was recorded. In the process of forging the mortgage satisfaction piece, Sater also forged the signatures of a Fidelity bank officer and of a public notary, whose notary stamp he stole to use on the forged document. Sater was a personal injury attorney in Delaware County, who ran The Sater Law Firm LLC.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Phillip J. Caraballo and James Buchanan are prosecuting the case.
The maximum penalty under federal law for the bank fraud offense is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. The aggravated identity theft charge carries a mandatory, consecutive two-year term of imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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York Man Sentenced for Attempted Cocaine DistributionRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 5, 2020, Olvin Manuel Ventura-Rivera, age 21, of York, Pennsylvania, was sentenced to 30 months’ imprisonment followed by three years of supervised release by United States District Court Judge Jennifer P. Wilson for attempted distribution of cocaine.
According to United States Attorney David J. Freed, Ventura-Rivera pled guilty to attempted possession with the intent to distribute more than 500 grams of cocaine hydrochloride on September 23, 2019, in York, Pennsylvania.
The case was investigated by the U.S. Postal Inspection Service and Pennsylvania State Police. Assistant U.S. Attorney James T. Clancy prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Monroe County Man Sentenced to 10 Years’ Imprisonment for Possessing Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jonathan Brownlee, age 42, of Long Pond, Pennsylvania, was sentenced to 10 years’ imprisonment on November 5, 2020, by U.S. District Court Judge Malachy E. Mannion for possessing child pornography.
According to United States Attorney David J. Freed, Brownlee previously pleaded guilty to using cell phones and laptop computers to access images and videos of child pornography. Brownlee committed the offense between August 2017 and April 2018, in Monroe County. Brownlee committed the offense after having previously been convicted of receiving and distributing child pornography in 2012.
Judge Mannion also ordered Brownlee to serve 10 years on supervised release following his prison sentence, undergo sex offender treatment, and to comply with the Sex Offender Registration and Notification Act.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Mechanicsburg Physician to Pay $850,000 to Resolve Potential Liability Under the False Claims ActRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Nava K. Nawaz, M.D. of Mechanicsburg, PA has agreed to pay the United States $850,000 to resolve allegations that she submitted fraudulent travel claims to the Medicare program. As part of the settlement, Dr. Nawaz has also agreed not to seek or be an owner or operator of a laboratory for the next 18-months.
According to U.S. Attorney David J. Freed, Dr. Nawaz used her laboratory company Perll Diagnostics, Inc. to defraud Medicare by submitting over 23,000 false and inflated travel reimbursement claims for specimen collection and testing between 2014 and 2017. In doing so, the government contends that Dr. Nawaz misrepresented the distances traveled by Perll’s lab technicians and wrongly obtained taxpayer dollars for travel that never occurred.
“Our office has zero tolerance for those who invent or inflate Medicare reimbursement claims,” said U.S. Attorney Freed. “We will continue to use all available tools, including the civil remedies of the False Claims Act, to protect our seniors and safeguard the Medicare Trust Fund.”
“Incorrect billing of taxpayer-funded health care programs, such as Medicare, diverts funding from the necessary treatment and care beneficiaries need,” said Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to work with our law enforcement partners to identify fraudulent activities and protect funding for our government health care programs.”
The settlement agreement is neither an admission of liability by Dr. Nawaz nor a concession by the United States that its claims are not well founded.
This matter was investigated and handled by Assistant U.S. Attorneys Samuel S. Dalke and D. Brian Simpson, with assistance from the Office of the Inspector General, U.S. Department of Health and Human Services.
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Marienville Man Sentenced to 48 Months’ Imprisonment for Using the Mail to Threaten Bodily InjuryRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 4, 2020, Quintin Kinchen, age 37, of Marienville, Pennsylvania, was sentenced to 48 months’ imprisonment and a three-year term of supervised release by United States District Court Judge Malachy E. Mannion, for using the United States Mail and Postal Service to send threatening communications.
According to United States Attorney David J. Freed, on or about March 15, 2019, and again on or about April 2, 2019, while serving a prior prison sentence for a 2016 aggravated assault conviction, Kinchen sent two threatening letters to his victim, the former Lackawanna County Assistant District Attorney who prosecuted him for the aforementioned 2016 aggravated assault offense. In these letters, Kinchen threatened serious physical violence against both the victim and her family.
The case was investigated by the United States Postal Inspection Service (USPIS). Assistant United States Attorney Jeffery St John prosecuted the case.
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Federal Prisoner Sentenced to 46 Months in Prison for Assault on Another InmateRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 4, 2020, Jory Rhodes, age 32, formerly of Ashtabula County, Ohio, was sentenced to 46 months’ imprisonment by U.S. District Court Judge Malachy E. Mannion, for assault resulting in serious bodily injury to an inmate.
According to United States Attorney David J. Freed, Rhodes previously admitted that while a prisoner at the United States Penitentiary Canaan, Waymart, Pennsylvania, on November 1, 2017, he and an accomplice attacked a third inmate by punching and kicking the victim about the head and chest. The victim suffered severe injuries, including right orbital deformity, a broken nose, broken left jaw and cheek, and a skull fracture.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Prisons. Assistant U.S. Attorney Todd K. Hinkley prosecuted the case.
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Scranton Man Sentenced for Making False Statements in Public Corruption CaseRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Edward Weidow, Sr., age 67, of Scranton, Pennsylvania was sentenced on October 29, 2020, to serve two years’ probation followed by 100 hours of community service by United States District Judge Malachy E. Mannion, for making false statements to federal law enforcement officers.
According to United States Attorney David J. Freed, Weidow pled guilty to making false statements to federal investigators in a public corruption investigation involving former Mayor of Scranton, William Courtright. Weidow took cash from vendors and then transferred the cash to former Mayor of Scranton William Courtright. When Weidow was interviewed on January 9, 2019 by the FBI, he denied giving cash to Courtright, when in fact on numerous occasions, he had done so.
On October 2, 2020, Courtright was sentenced to seven years’ incarceration after pleading guilty to multiple public corruption crimes. Courtright was ordered to surrender to the Bureau of Prisons to begin his sentence on October 30, 2020.
Courtright’s corrupt activities came to light during a multi-year undercover investigation headed by the FBI. The undercover investigation revealed that the former mayor accepted cash payments from vendors doing business with the city in a pay-to-play scheme.
The case was investigated by the FBI, the Pennsylvania State Police, and the Internal Revenue Service Criminal Investigation. Assistant United States Attorneys Michelle Olshefski and Michael Consiglio prosecuted the case.
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Luzerne County Man Sentenced to 262 Months’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Gimy Rodriguez, a/k/a “Carvo,” age 28, of Hazleton, Pennsylvania, was sentenced on October 29, 2020, to 262 months’ imprisonment followed by five years of supervised release by United States District Judge Robert D. Mariani, for drug trafficking.
According to United States Attorney David J. Freed, Rodriguez pled guilty in September 2019, to engaging in a conspiracy and other charges involving the distribution of heroin, fentanyl, and methamphetamine throughout Luzerne County. Rodriguez was the leader of multiple co-conspirators and maintained hubs of operation in both Hazleton and Wilkes-Barre.
Rodriguez’s co-conspirators were sentenced to:
- Andrew J. Danko was sentenced to 68 months’ imprisonment;
- Angela Haggerty was sentenced to 37 months’ imprisonment; and
- Hector Delacruz was sentenced to 51 months’ imprisonment.
The case was investigated by the DEA and the Pennsylvania State Police. Assistant United States Attorney Michelle Olshefski prosecuted the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Clark Summit Man Sentenced for Violations of Clean Water Act and Tampering with Government WitnessRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that David D. Klepadlo, age 65, of Clark Summit, Pennsylvania, was sentenced on October 28, 2020, by United States District Court Judge Malachy E. Mannion to three years of supervised release, including one year of home detention, for violation of the Clean Water Act and tampering with a government witness.
According to United States Attorney David J. Freed, Klepadlo pled guilty to falsifying required Pennsylvania Department of Environmental Protection (PADEP) and the U.S. Environmental Protections Agency (EPA) documents over a period of several years. Klepadlo also pleaded guilty to tampering with a government witness at the onset of the criminal investigation by encouraging that witness to either not cooperate at all or lie to the FBI.
David D. Klepadlo & Associates, Inc. (Klepadlo’s company) also pled guilty to falsifying PADEP and EPA docs and was sentenced to five years of probation and a $10,000 fine.
Klepadlo was certified by the Commonwealth of Pennsylvania as a waste water treatment plant operator. Klepadlo and his company contracted with local municipalities to operate and manage the municipalities’ waste water treatment plants in accordance with regulations and limitations in permits issued by the Pennsylvania Department of Environmental Protection (PADEP) and the U.S. Environmental Protections Agency (EPA).
The permits required that the permittee at all times maintain in good working order, and properly operate all facilities and systems installed and used to achieve compliance with the terms and conditions of the permits. For approximately two years, beginning in May 2012 and continuing through June 2014, Klepadlo and his company failed to properly operate and maintain the facilities (Greenfield Township Sewer Authority, Lackawanna County, and the Benton/Nicholson Sewer Authority, both Lackawanna and Wyoming Counties) and systems of treatment and control, in accordance with terms and conditions of the permits.
Klepadlo knowingly failed to take daily and weekly samples and measurements required for the purpose of monitoring pollutants discharged into waterways of the United States; knowingly created false test results and falsely reported those results in discharge monitoring reports submitted monthly to the PADEP and the EPA. Klepadlo also admitted to attempting to persuade a government witness to fabricate a false explanation for the Clean Water Act violations for the purpose of influencing testimony of a witness in an official proceeding involving the testing and registering requirements of the permits.
Waste water from the Greenfield publicly-owned treatment plan is discharged into a tributary of Dundaff Creek, which flows into Tunkhannock Creek, which flows into the Susquehanna River. Waste water from the Benton/Nicholson facility flows into a tributary of South Branch Tunkhannock Creek, which also flows into the Susquehanna River.
The charges were the result of a jointly conducted investigation by the Environmental Protection Agency, the Pennsylvania Department of Environmental Protection, and the Federal Bureau of Investigations. Assistant United States Attorney Michelle Olshefski and Special Assistant Martin Harrell prosecuted the case.
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Philadelphia Man Convicted on Drug Trafficking ChargesRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Raymond Howard, age 45, of Philadelphia, Pennsylvania, was convicted on October 26, 2020, after a five-day jury trial before U.S. District Court Judge Matthew W. Brann, on drug trafficking charges.
According to United States Attorney David J. Freed, the jury deliberated approximately one hour and found that from October 2016 to July 2017, in Lycoming County, Howard engaged in a conspiracy to distribute 100 grams or more of heroin and a mixture of heroin and carfentanil.
During a three-day period in June 2017, there was a rash of drug overdoses in Williamsport. At the time, UPMC Susquehanna in Williamsport and Wellsboro reported treating 51 such cases within a 48-hour period.
The trial team offered evidence that Howard and his coconspirators Wayne Davidson, Markeese Askew, and Nathan Crowder used cell phones to arrange for the distribution of heroin and, specifically, a mixture of heroin and carfentanil that resulted in number of overdoses from June 28 through July 7, 2020. According to the Drug Enforcement Administration, carfentanil is 100 times more potent than fentanyl. Howard’s three coconspirators Davidson, Askew, and Crowder all pleaded guilty earlier in October and face minimum sentences of 11 years’ imprisonment. In total, Howard and the three coconspirators were charged with delivering a mixture of heroin and carfentanil that resulted in serious bodily injury to eight individuals.
The case was investigated by the Lycoming County District Attorney’s Office Narcotics Enforcement Unit, Montoursville Police Department, Old Lycoming Township Police Department, South Williamsport Police Department, Williamsport Bureau of Police, Pennsylvania State Police and the Federal Bureau of Investigation. Assistant United States Attorney Alisan V. Martin and Geoffrey W. MacArthur prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime. This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Howard faces 30 years to life imprisonment, a term of supervised release and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Bank Manager Sentenced for Bank FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Karen E. Ramm, age 54, of Wormleysburg, Pennsylvania, was sentenced on October 28, 2020, to one year plus one day imprisonment followed by two years of supervised release by Chief United States District Court Judge John E. Jones III, for her role in a bank fraud scheme. Chief Judge Jones also ordered Ramm to pay $102,500 in restitution ($21,668.31 to Commerce Bank and $80,831.69 paid to an insurance company).
According to U.S. Attorney David J. Freed, Ramm was a Branch Manager and Loan Officer of Commerce Bank (now known as First National Bank of Pennsylvania, successor to Metro Bank) between 2003 and 2010. Ramm pled guilty to defrauding Commerce Bank by falsely causing a business loan to be extended based on the representation that the borrower, with whom Ramm was in a personal relationship, needed an extension for a business project, when Ramm knew that was not the case. The total net loss was $102,500.
The case was investigated by the Federal Bureau of Investigation with the assistance of the financial institution’s security and investigations staff. Assistant U.S. Attorney James T. Clancy prosecuted the case.
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Berks County Woman Sentenced for Bank EmbezzlementRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Morgan Herrera, age 29, of Robesonia, Pennsylvania, was sentenced on October 29, 2020 to six months’ imprisonment followed by two years of supervised release (which includes six months of home detention) by U.S. District Court Judge Sylvia H. Rambo, for embezzling over $80,000 from S&T Bank. Judge Rambo also ordered Herrera to pay $80,011 in restitution.
According to United States Attorney David J. Freed, between February 2016 and June 2017, while Herrera was employed as a personal banker at an S&T Bank location in Harrisburg, she stole over $80,000 while opening multiple accounts for certificates of deposit.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
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Schuylkill County Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Shaquane Scott, age 31, of Frackville, Schuylkill County, pleaded guilty on October 27, 2020, before U.S. Magistrate Court Judge Karoline Mehalchick, for distribution of methamphetamine.
According to United States Attorney David J. Freed, Scott admitted to distributing between 50 and 150 grams of highly-pure crystal methamphetamine in the Schuylkill County area over a several-week period in February and March 2019. Scott’s girlfriend, Samantha Blume, age 28, of Frackville, was also indicted in September 2019 for methamphetamine trafficking. Blume’s charges are still pending.
Magistrate Judge Mehalchick ordered that a presentence report be completed. Sentencing will be scheduled before United States District Court Judge Malachy Mannion at a later date.
This matter was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Schuylkill County Drug Task Force. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The charges carry a mandatory minimum sentence of five years in prison. The maximum sentence under federal law is up to 40 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Owner and General Manager of Pocono Area Hotels Convicted of Sex and Drug Trafficking in Precedent Setting CaseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Faizal Bhimani, age 43, and Nazim Hassam, age 64, both of Bartonsville, Pennsylvania, Om Sri Sai, Inc., a Pennsylvania corporation, and the Pocono Plaza Inn hotel, formerly known as the Quality Inn, located in Stroudsburg, Pennsylvania were convicted on October 23, 2020, of sex trafficking and drug trafficking charges after a two-week jury trial.
This is the first time a hotel, a hotel owner, or a hotel general manager have been convicted of criminal sex trafficking offenses for aiding others to engage in that activity in Pennsylvania.
According to United States Attorney David J. Freed, Om Sri Sai, Inc., a company that owned and operated a Howard Johnson hotel located in Bartonsville, Pennsylvania, and Faizal Bhimani, the general manager of that hotel, were both convicted of aiding and abetting sex trafficking by force, fraud, and coercion, and sex trafficking conspiracy, as well as drug trafficking conspiracy and managing a drug-related premises. The jury also found the Pocono Plaza Inn guilty of Managing a Drug-Related Premises, and Nazim Hassam, part-owner and Vice President of Om Sri Sai and managing shareholder of both hotels, guilty of drug trafficking conspiracy and two counts of managing a drug-related premises.
The jury further found that all property owned by Om Sri Sai, Inc. was property that facilitated the company’s sex trafficking and drug trafficking crimes, and is therefore subject to criminal forfeiture.
These convictions mark the culmination of a six-year, joint investigation into sex trafficking, drug trafficking, and violent crime in Monroe County by the Organized Crime Drug Enforcement Task Force (OCDETF). This case began in 2014 with an FBI investigation into the “Black P Stone” gang, a set of the “Bloods” that was responsible for gun violence and drug trafficking in Monroe County at the time. Local agencies, including the Stroud Area Regional Police Department and the Monroe County District Attorney’s Office, joined the effort early on, and eventually expanded beyond the “P Stones” to uncover more widespread sex and drug trafficking in Monroe County.
The evidence at trial, presented through more than 35 witnesses and over 150 exhibits, established that the Howard Johnson Hotel in Bartonsville was a safe haven for criminal activity between 2011 and 2019. Bhimani, as manager, made rooms available for sex traffickers and drug dealers, and at times took payment for the hotel directly from the proceeds of criminal activity. Bhimani also traded discounted and free rooms for sex, which traffickers would direct their victims to provide. Dozens of women were compelled by multiple traffickers, sometimes called pimps, to conduct prostitution in the hotel either by physical force, threats, false promises, or coercion, including through blackmail and drug addiction. Women who were addicted to heroin, crack, or other controlled substances were provided with just enough drugs to keep them working, and pimps used their addictions and the threat of withdrawal to control them. Several admitted sex traffickers testified at the trial, explaining how they used these various methods to compel women to sell sex and turn over all of the proceeds. Multiple survivors also testified that they were required to follow the traffickers’ rules, were forced to rely entirely on the traffickers for food, clothing, even hygiene products, and they were often punished for violations with violence, including sexual assault.
The evidence showed that Bhimani was closely associated with several of these traffickers, and knew of the methods used to compel the victims to have sex for money. Other employees at the hotel knew as well, and the evidence showed that at least two other employees engaged in sex with victims, including Hassam. Bhimani also warned sex traffickers and drug dealers when law enforcement were present at the hotel, including during the manhunt for Eric Frein in 2014. Several admitted sex traffickers and drug dealers testified to successfully evading detection by police thanks to warnings from Bhimani. The hotel allowed known criminals to check in under assumed names or even street names, and Bhimani and Hassam both took steps to obstruct police efforts to locate suspects.
Evidence at trial also showed that the Pocono Plaza Inn, known as Quality Inn before losing that franchise, was also riddled with drug activity. Police officers testified to multiple overdoses, some resulting in deaths, as well as numerous drug seizures, undercover drug purchases, and arrests at each hotel over a period of several years. The hotels were both known by SARPD officers as high drug crime areas. Evidence showed that a bartender at the Pocono Plaza Inn sold cocaine and heroin right over the bar, and that when the manager was alerted to that fact by another employee and a patron’s online review, she did not fire the bartender or notify police. In 2016, another employee who lived at the hotel was arrested for heroin trafficking the day after a woman died of an overdose in his room.
In all, forty defendants have been convicted federally as a result of this investigation, many of whom trafficked women and drugs in the Bartonsville Howard Johnson and the Pocono Plaza Inn. Other defendants have been charged and convicted in state courts. The investigation has resulted in the dismantling of the “P Stones” as well as a second gang, the “Brick City Brims,” and the disruption of two more, the “Blood Stone Villains” and the “Bloodhound Brims.” Investigators seized multiple kilograms of heroin and cocaine, as well as quantities of fentanyl, cocaine base (“crack”), methamphetamine, marijuana, and MDMA (“molly”), and took at least 10 illegal firearms off the streets.
Notable among the convictions in this investigation are:
- Sirvonn Taylor, a/k/a “Black,” leader of the Black P Stones, sentenced to 20 years in prison for Sex Trafficking Conspiracy and Drug Trafficking;
- Fredrick Brown, a/k/a “G,” sentenced to 33 years in prison for Sex Trafficking by Force, Fraud, and Coercion and Drug Trafficking;
- Jose Velazquez, a/k/a “Sev,” member of the Black P Stones, sentenced to 210 months in prison for Sex Trafficking by Force, Fraud, and Coercion and Drug Trafficking;
- Nicolaus Harman, a/k/a “Clips,” member of the Black P Stones, sentenced to 190 months in prison for Discharge of a Firearm in Furtherance of a Crime of Violence and Hobbs Act Robbery, stemming from the robbery and shooting of a drug dealer on Easter Sunday, 2017;
- Thurman Stanley, a/k/a “Black,” sentenced to 188 months in prison for Drug Trafficking and Interstate Transportation for Purposes of Prostitution;
- Pablo Martinez, a/k/a “Clown,” a leader in the Brick City Brims, sentenced to 150 months in prison for Discharge of a Firearm During and in Relation to a Drug Trafficking Crime, stemming from the robbery and shooting of a drug dealer during a high-speed pursuit in January 2016;
- Deshaun Lipscomb, member of the Brick City Brims, sentenced to 10 years in prison for Drug Trafficking and Possession of a Firearm in Furtherance of Drug Trafficking;
- Evan Watkins, sentenced to 10 years in prison for Drug Trafficking of more than 100 grams of Heroin.
“This investigation is an outstanding example of how the Task Force model works as a force multiplier,” said U.S. Attorney Freed. “When federal agencies like the FBI join with local law enforcement agencies, officers who know their local jurisdictions better than anyone, we can accomplish far more than either can do on their own. My office and the federal agencies who fuel OCDETF are proud to stand side by side with our brothers and sisters in state and local law enforcement, and grateful for their invaluable efforts and insights that have made this six-year investigation a success. This was a novel prosecution, and the first time a hotel or its manager or owner have been charged with and convicted of sex trafficking in Pennsylvania. We hope this will serve as a warning to any other person or company in a position to facilitate or profit from forced prostitution: don’t. Sex trafficking cases are among the most serious we prosecute, and we will bring to bear the full resources of the Department of Justice to investigate and prosecute those who traffic women and girls, along with those who profit from it.”
The case was investigated by the Federal Bureau of Investigation (FBI), the Stroud Area Regional Police Department, the Monroe County District Attorney’s Office, and the Pennsylvania State Police. Assistant U.S. Attorneys Sean A. Camoni and Jenny Roberts prosecuted the recent case against Bhimani and Hassam. Deputy Criminal Chief Fran Sempa prosecuted the earlier cases.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Camp Hill Man Indicted for Evading Tax Payment of $2.7 MillionRead the Press Release
HARRISBURG –The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ivan Rempel, age 76, of Camp Hill, Pennsylvania, was indicted on September 30, 2020, by a federal grand jury on one count of tax evasion and nine counts of failure to pay and account for employment taxes.
According to United States Attorney David J. Freed, the indictment alleges that Rempel was the President and Chief Executive of a warehousing business in Millersburg, Pennsylvania, since the early 1990s and evaded payment of approximately $2.7 million to the IRS. It is alleged that, from 1991 to 2017, Rempel habitually failed to pay to the IRS employment taxes that he withheld from his employees’ paychecks. Rempel also failed to file required forms with the IRS to account for the employment taxes.
The IRS eventually took steps to collect the money from his business and personal bank accounts, when in 2017 they imposed levies on certain accounts. But, when they tried to collect the money from his bank accounts, Rempel began hiding the money. He took payment from his customers and turned it into cashier checks. He deposited the cashier’s checks into other bank accounts and quickly made payroll, then balanced out his bank accounts so that the IRS had no money to collect. He also began moving money overseas to international bank accounts to avoid paying the employment taxes he was withholding from his employees paychecks.
The case was investigated by the Internal Revenue Service. Assistant U.S. Attorney Michael Consiglio is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Reading Woman Pleads Guilty to Drug Trafficking MethamphetamineRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Francheska Quinones, age 28, formerly of Reading, Berks County, Pennsylvania, pleaded guilty on October 20, 2020, before U.S. District Court Judge Robert D. Mariani, to conspiracy to distribute more than 500 grams of methamphetamiAccording to United States Attorney David J. Freed, Quinones admitted to participating in a conspiracy to distribute between 500 grams and 1.5 kilograms of crystal methamphetamine in Luzerne, Lackawanna and Schuylkill Counties between January 2017 and December 2018. Quinones was one of five individuals indicted by a grand jury in December 2018 for methamphetamine trafficking in Northeastern Pennsylvania.
Judge Mariani ordered that a presentence report be completed. Sentencing will be scheduled at a later date.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Pennsylvania State Police, the Kingston Police Department, the Luzerne County Drug Task Force, and the Pennsylvania Office of Attorney General. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines
The charge carries a mandatory minimum penalty of ten years in prison under federal law. The maximum penalty for the charge is up to life in prison, a term of supervised release following imprisonment, and a $10,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two New York Individuals Indicted for Counterfeit CurrencyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 29, 2020, Courtney Murray, age 22, of Slingerlands, New York, and Rashaun Ferguson, age 26, of Flushing, New York, were indicted by a federal grand jury for passing counterfeit U.S. currency. The indictment was unsealed following the arrests of the defendants.
According to United States Attorney David J. Freed, the indictment alleges that Murray and Ferguson conspired to pass counterfeit currency between September 2019 and April 2020. They also are charged with multiple counts of passing approximately $14,000 in counterfeited Federal Reserve Notes in the denomination of $20, in Luzerne and York Counties, New Jersey, New York, and Maryland.
This case was investigated by the United States Secret Service and various state and local police departments. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
Indictments are only allegations. All persons charged by indictment are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the most serious offenses is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Three Men Charged with Drug Trafficking in Connection with Largest Seizure of Methamphetamine in the History of DEA’s Philadelphia DivisionRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 20, 2020, Emmanuel Roman-Figueroa, age 38, of Hazleton, David Jusino Ramirez, age, 64, a New Jersey resident, and Julio Romero-Mancebo, age 28, also a resident of New Jersey, were indicted on October 20, 2020, for drug trafficking.
According to United States Attorney David J. Freed, the indictment charges Roman-Figueroa, Jusino Ramirez, and Romero-Mancebo with conspiracy to distribute and possess with intent to distribute more than 500 grams of methamphetamine and more than 400 grams of fentanyl, and possession with intent to distribute more than 500 grams of methamphetamine and more than 400 grams of fentanyl.
On October 8, 2020, law enforcement agents seized 130 kilograms of methamphetamine, and three kilograms of fentanyl, and $28,000 in cash ($371,000 in cash was seized on a previous occasion during the investigation) during a drug transaction involving the men in Luzerne County. The wholesale value of the drugs seized is approximately $2.5 million and the estimated street value is between $8 million to $10 million.
U.S. Attorney Freed lauded the work of DEA agents and their state and local partners in taking huge quantities of potentially deadly illegal drugs off the streets. “There can be no more clear evidence of the efforts of transnational drug trafficking organizations to establish a market for methamphetamine in the Middle District of Pennsylvania and elsewhere in the United States than the seizure of this massive amount of drugs,” said U.S. Attorney Freed. “Of course, the related seizure of a substantial amount of fentanyl is just as clear a reminder that we cannot let down our guard in the battle against opioids. Time and time again, we have noted that the transportation networks that make the Keystone state a national leader in the logistics industry lend themselves also to the movement of massive amounts of contraband through our Commonwealth. Thankfully our partners at the Pennsylvania State Police and the DEA clearly understand this dynamic and are on the job. It is impossible to calculate the number of lives saved by this outstanding investigation.”
DEA Special Agent in Charge Jonathan A. Wilson stated that the October 8th seizure of drugs is the largest methamphetamine seizure on record for the DEA’s Philadelphia Division.
“This seizure of 300 pounds of methamphetamine clearly shows the prevalence of this highly addictive and extremely dangerous drug in the region” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “This seizure and arrests are the result of DEA’s partnership with the Pennsylvania State Police and the Hazleton Police Department. The coordinated efforts of our law enforcement partners undoubtedly saved countless lives across our region.”
The case was investigated by the Drug Enforcement Administration (DEA), the Pennsylvania State Police, and Hazleton Police Department. Assistant U.S. Attorney Sean Camoni is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Each charge also carries a mandatory minimum sentence of 10 years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Pennsylvania Biofuel Company and Owners Sentenced on Environmental and Tax Crime Convictions Arising Out of Renewable Fuels FraudRead the Press Release
HARRISBURG – Two biofuel company owners were sentenced to prison for conspiracy and making false statements to the U.S. Environmental Protection Agency (EPA) and conspiracy to defraud the IRS and preparing a false tax claim announced U.S. Attorney David J. Freed for the Middle District of Pennsylvania, Principal Deputy Assistant Attorney General Jonathan D. Brightbill of the Justice Department’s Environment and Natural Resources Division, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, Jessica Taylor, Director of the EPA’s Criminal Enforcement Program, Chief Jim Lee, IRS Criminal Investigation, and Special Agent in Charge Michael J. Driscoll of the FBI's Philadelphia Field Office.
On October 20, 2020, U.S. District Judge John E. Jones III sentenced Ben Wootton, 55 of Savannah, Georgia, to 70 months and Race Miner, 51, of Marco Island, Florida, to 66 months, after a jury convicted both defendants and their company, Keystone Biofuels Inc. (Keystone), in April 2019. The company was originally located in Shiremanstown, Pennsylvania, and later in Camp Hill, Pennsylvania. Miner was the founder and chief executive officer of Keystone. Wootton was president of Keystone, and a former member of the National Biodiesel Board. The court ordered both men to pay restitution of $4,149,383.41 to the IRS and restitution of $5,076,376.07 to the Pennsylvania Department of Environmental Protection. Wootton and Miner will also have to serve a three-year term of supervised release after their term of imprisonment. Keystone was sentenced to five years’ probation and ordered to pay restitution of $4,149,383.41 to the IRS and restitution of $5,076,376.07 to the Pennsylvania Department of Environment Protection criminal fine.
“The EPA and IRS renewable fuels incentive programs are important components of the Congressional program to increase the use of biofuels to benefit the environment,” said Principal Deputy Assistant Attorney General Jonathan D. Brightbill of the Justice Department’s Environment and Natural Resources Division. “Today’s sentences are a strong reminder that the federal government will not allow supposed “green” conmen to illegally take advantage of federal and state programs that are meant to offer financial incentives to enhance the environment and energy sustainability.”
“The complex fraud perpetrated by the defendants in this case struck directly at the heart of a government program that was specifically created to benefit the environment, business owners and the community at large,” said U.S. Attorney David J. Freed of the Middle District of Pennsylvania. “Encouraging companies to develop and provide for sale clean renewable fuels is truly a win-win proposition for everyone. Unfortunately, the defendants used this program to benefit only themselves. Today’s sentences send a clear message that my office, our federal partners and the United States Department of Justice will not tolerate renewable fuels fraud and related offenses.”
“The defendants defrauded the IRS and sought to profit from a system intended to protect the environment,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. “The Tax Division will continue to aggressively investigate and prosecute with our partners such tax crimes.”
“Today’s sentencing demonstrates there are real penalties for those defrauding the Renewable Fuel Standard (RFS) program,” said Jessica Taylor, Director of the EPA’s criminal enforcement program. “With this action EPA and its enforcement partners are continuing to protect both the integrity of the RINs program and the American taxpayer.”
“Wootton and Miner actively engaged in a multimillion-dollar scheme designed to rob the government and line their own pockets. Today, they learned there is a steep price to be paid for such greed,” said Jim Lee, Chief, IRS Criminal Investigation (IRS-CI). “It is the partnerships between IRS-CI and other federal agencies like the EPA that allow cases like this to come to fruition, holding accountable those who seek to enrich themselves through fraudulent means.”
“The only green resource these two cared about was money, and they told lie after lie to perpetuate their fraud,” said Special Agent in Charge Michael J. Driscoll of the FBI's Philadelphia Field Office. “Fair warning to anyone else seeking to scam the U.S. government and taxpayers like this: the FBI and our partners stand ready to investigate and hold you accountable as well.”
Wootton, Miner, and Keystone falsely represented that they were able to produce a fuel meeting the requirements set by the American Society for Testing and Materials (ASTM) for biodiesel (a renewable fuel) and adopted by the EPA, and as such were entitled to create renewable fuel credits, known as RINs, based on each gallon of renewable fuel produced. The fuel and the RINs have financial value and could be sold and purchased by participants within the federal renewable fuels commercial system.
Wootton and Miner were also convicted of fraudulently claiming federal tax refunds based on IRS’s Biofuel Mixture Credit. The Biodiesel Mixture Credit is a type of “blender’s credit” for persons or businesses who mix biodiesel with diesel fuel and use or sell the mixture as a fuel. Wootton and Miner caused Keystone to fraudulently claim tax refunds based on non-qualifying fuel and, in at least some instances, non-existent or non-mixed fuel. In an attempt to hide their fraud scheme, the men created false corporate books and records and sham financial transactions to account for the nonexistent and non-qualifying fuel, and to create the appearance of legitimacy.
The prosecution of Wootton, Miner and Keystone is the first prosecution of a case under the federal renewable fuels program based on fuel that did not meet the program renewable fuel quality standards.
The case was prosecuted by Senior Litigation Counsel Howard P. Stewart of the Environment and Natural Resources Division’s Environmental Crimes Section, Assistant U.S. Attorney Geoffrey MacArthur, Special Assistant U.S. Attorney David Lastra, and Trial Attorneys Mark Kotila and Michael C. Vasiliadis of the Tax Division. EPA Region III Criminal Investigation Division, IRS Criminal Investigation and the FBI Philadelphia’s Harrisburg Resident Agency investigated the matter.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Former Schuylkill County Clerk of Courts Sentenced for Mail Fraud and Falsification of RecordsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Steven M. Lukach, Jr., age 70, of Nesquehoning, Pennsylvania, was sentenced on October 20, 2020, to 27 months’ imprisonment by U.S. District Court Judge Robert D. Mariani for mail fraud and falsification of records.
According to United States Attorney David J. Freed, Lukach served as the Clerk of Courts for Schuylkill County for approximately 27 years. In 2013-2014, county auditors with the Controller’s Office began an in depth examination of the Clerk’s Office and discovered misappropriation of funds by Lukach. An FBI investigation ensued and while the audit was going on, Lukach interfered with the audit by stealing mail that was sent to banks, forged records and sent the fake bank records to the Controller’s Office. Lukach did so in an effort to conceal that he was taking funds from various accounts for his own personal purposes, such as paying a family member’s credit card bill, paying for meals, making car payments, and other personal expenses. The total funds misappropriated was $40,000.
Judge Mariani found that Lukach’s criminal conduct was two-fold. One involved theft and the other involved obstruction of justice. Judge Mariani characterized the theft as an abuse of power and trust given to him by the people of Schuylkill County and the Commonwealth of Pennsylvania. The judge noted that his crimes were not a one-off event but pervasive theft over years from many different aspects of the criminal justice system, including stealing from funds due to be paid as restitution to crime victims, fines and cost due to be paid to county and state, and bail funds due to be returned to those properly posted the funds. His obstruction was described by the judge as simply bold. Judge Mariani indicated that the sentence of 27 months in prison was enough to deter yet punish his wrongdoing.
Judge Mariani ordered Lukach to pay $15,927 in restitution and to surrender to the Bureau of Prisons on November 17, 2020.
The case was investigated by the Pennsylvania State Police and the Federal Bureau of Investigation. Assistant U.S. Attorney Michael Consiglio prosecuted the case.
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Department of Labor Agent Charged with Theft of Government Funds and False DocumentsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Special Agent with the U.S. Department of Labor, Office of Inspector General, Thomas Hartley, age 47, of Henryville, Pennsylvania, was indicted on October 20, 2020, by a federal grand jury for theft of government funds, making false claims against the United States, and making false statements.
According to United States Attorney David J. Freed, the indictment alleges that while on leave from his position with the Department of Labor and serving with the New Jersey National Guard, Hartley submitted false documents to the Department of the Army and thereby obtained approximately $23,580 in housing allowance funds to which he was not entitled.
The case was investigated by the U.S. Department of Labor, Office of Inspector General, Office of Special Investigations and the United States Army, Criminal Investigation Command. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under federal law, the charge of Theft of Government Funds carries up to a maximum sentence of ten years in prison, a term of supervised release following imprisonment, and a fine. The charges of False Claims against the United States and False Statements each carry up to a maximum penalty of five years in prison, a term of supervised release following imprisonment and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Pennsylvania Biofuel Company and Owners Sentenced on Environmental and Tax Crime Convictions Arising out of Renewable Fuels FraudRead the Press Release
Two biofuel company owners were sentenced to prison for conspiracy and making false statements to the U.S. Environmental Protection Agency (EPA) and conspiracy to defraud the IRS and preparing a false tax claim.
U.S. District Judge John E. Jones III sentenced Ben Wootton, 55 of Savannah, Georgia, to 70 months and Race Miner, 51, of Marco Island, Florida, to 66 months, after a jury convicted both defendants and their company, Keystone Biofuels Inc. (Keystone), in April 2019. The company was originally located in Shiremanstown, Pennsylvania, and later in Camp Hill, Pennsylvania. Miner was the founder and chief executive officer of Keystone. Wootton was president of Keystone, and a former member of the National Biodiesel Board. The court ordered both men to pay restitution of $4,149,383.41 to the IRS and restitution of $5,076,376.07 to the Pennsylvania Department of Environmental Protection. Wootton and Miner will also have to serve a three-year term of supervised release after their term of imprisonment. Keystone was sentenced to five years’ probation and ordered to pay restitution of $4,149,383.41 to the IRS and restitution of $5,076,376.07 to the Pennsylvania Department of Environment Protection criminal fine.
“The EPA and IRS renewable fuels incentive programs are important components of the Congressional program to increase the use of biofuels to benefit the environment,” said Principal Deputy Assistant Attorney General Jonathan D. Brightbill of the Justice Department’s Environment and Natural Resources Division. “Today’s sentences are a strong reminder that the federal government will not allow supposed “green” conmen to illegally take advantage of federal and state programs that are meant to offer financial incentives to enhance the environment and energy sustainability.”
“The complex fraud perpetrated by the defendants in this case struck directly at the heart of a government program that was specifically created to benefit the environment, business owners and the community at large,” said U.S. Attorney David J. Freed of the Middle District of Pennsylvania. “Encouraging companies to develop and provide for sale clean renewable fuels is truly a win-win proposition for everyone. Unfortunately, the defendants used this program to benefit only themselves. Today’s sentences send a clear message that my office, our federal partners and the United States Department of Justice will not tolerate renewable fuels fraud and related offenses.”
“The defendants defrauded the IRS and sought to profit from a system intended to protect the environment,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. “The Tax Division will continue to aggressively investigate and prosecute with our partners such tax crimes.”
“Today’s sentencing demonstrates there are real penalties for those defrauding the Renewable Fuel Standard (RFS) program,” said Jessica Taylor, Director of the EPA’s criminal enforcement program. “With this action EPA and its enforcement partners are continuing to protect both the integrity of the RINs program and the American taxpayer.”
“Wootton and Miner actively engaged in a multimillion-dollar scheme designed to rob the government and line their own pockets. Today, they learned there is a steep price to be paid for such greed,” said Jim Lee, Chief, IRS Criminal Investigation (IRS-CI). “It is the partnerships between IRS-CI and other federal agencies like the EPA that allow cases like this to come to fruition, holding accountable those who seek to enrich themselves through fraudulent means.”
“The only green resource these two cared about was money, and they told lie after lie to perpetuate their fraud,” said Special Agent in Charge Michael J. Driscoll of the FBI's Philadelphia Field Office. “Fair warning to anyone else seeking to scam the U.S. government and taxpayers like this: the FBI and our partners stand ready to investigate and hold you accountable as well.”
Wootton, Miner, and Keystone falsely represented that they were able to produce a fuel meeting the requirements set by the American Society for Testing and Materials (ASTM) for biodiesel (a renewable fuel) and adopted by the EPA, and as such were entitled to create renewable fuel credits, known as RINs, based on each gallon of renewable fuel produced. The fuel and the RINs have financial value and could be sold and purchased by participants within the federal renewable fuels commercial system.
Wootton and Miner were also convicted of fraudulently claiming federal tax refunds based on IRS’s Biofuel Mixture Credit. The Biodiesel Mixture Credit is a type of “blender’s credit” for persons or businesses who mix biodiesel with diesel fuel and use or sell the mixture as a fuel. Wootton and Miner caused Keystone to fraudulently claim tax refunds based on non-qualifying fuel and, in at least some instances, non-existent or non-mixed fuel. In an attempt to hide their fraud scheme, the men created false corporate books and records and sham financial transactions to account for the nonexistent and non-qualifying fuel, and to create the appearance of legitimacy.
The prosecution of Wootton, Miner and Keystone is the first prosecution of a case under the federal renewable fuels program based on fuel that did not meet the program renewable fuel quality standards.
The case was prosecuted by Senior Litigation Counsel Howard P. Stewart of the Environment and Natural Resources Division’s Environmental Crimes Section, Assistant U.S. Attorney Geoffrey MacArthur, Special Assistant U.S. Attorney David Lastra, and Trial Attorneys Mark Kotila and Michael C. Vasiliadis of the Tax Division. EPA Region III Criminal Investigation Division, IRS Criminal Investigation and the FBI Philadelphia’s Harrisburg Resident Agency investigated the matter.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Chambersburg Man Sentenced to 10 Years’ Imprisonment for Drug TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Daquan Seabrook, age 25, of Chambersburg, Pennsylvania, was sentenced to 10 years’ imprisonment followed by five years of supervised release by Chief United States District Court Judge John E. Jones III, for drug trafficking.
According to United States Attorney David J. Freed, Seabrook pleaded guilty to possession with intent to distribute 100 grams and more of heroin in October 2017, in Chambersburg, Franklin County. One hundred grams of heroin is equivalent to approximately 4,000 individual doses of heroin.
Chief Judge Jones also ordered Seabrook to forfeit $15,000 of cash seized at the time of his arrest.
The case was investigated by the Franklin County Drug Task Force and the Harrisburg Office of the Federal Bureau of Investigation. Assistant U.S. Attorney James T. Clancy prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Three Brazilian Men Sentenced to Federal Prison for Participation in A Debit Card Skimming SchemeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Carlos Di Santi, age 39, Angell Hungaro, age 46, and Benedicto Correia, age 58, all Brazilian nationals, were sentenced on October 15, 2020, by Chief Judge John E. Jones III for their participation in a debit card skimming scheme that caused a total loss of $14,971 to dozens of victims. Di Santi was sentenced to 32 months’ imprisonment. Hungaro was sentenced to 28 months’ imprisonment. Correia was sentenced to 24 months’ imprisonment.
According to United States Attorney David J. Freed, Di Santi and Hungaro previously pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft. Correia previously pleaded guilty to aggravated identity theft. The three men admitted that in April 2019, they placed skimming devices and cameras on multiple ATMs in Cumberland and York Counties. They further admitted that they then used the information obtained from the skimming devices and cameras to withdraw money from the bank accounts of dozens of victims.
The case was investigated by the United States Secret Service, the Silver Spring Township Police Department, the Springettsbury Township Police Department, and the Spring Garden Township Police Department. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
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District Election Officer on Duty for November 2020 ElectionsRead the Press Release
Harrisburg - United States Attorney David J. Freed announced today that Assistant United States Attorney (AUSA) Eric Pfisterer will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election. AUSA Eric Pfisterer has been appointed to serve as the District Election Officer (DEO) for the Middle District of Pennsylvania, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.
United States Attorney Freed said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will always act appropriately to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Freed stated that AUSA/DEO Eric Pfisterer will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: 717-221-4482.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 215-418-4000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
United States Attorney Freed said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available to my Office, the FBI, or the Civil Rights Division.”
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Hazleton Man Sentenced to 21 Months’ Imprisonment for Distributing 1.5 Grams of HeroinRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Gene Hawkins, age 50, of Hazleton, Pennsylvania, was sentenced on October 9, 2020, by U.S. District Court Judge Robert D. Mariani to 21 months’ imprisonment for selling 1.5 grams of heroin in 2015.
According to United States Attorney David J. Freed, Hawkins pleaded guilty to distributing a “brick” (approximately 50 individual doses) of heroin on August 3, 2015 in Hazleton.
The case was investigated by the Drug Enforcement Administration (DEA) and the Hazleton Police Department. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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York Man Sentenced to 57 Months’ Imprisonment for Firearms and Drug Trafficking OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 8, 2020, United States District Court Judge Jennifer P. Wilson sentenced Edward Lee McDowell, III, age 23, to 57 months’ imprisonment for firearms and drug trafficking offenses.
According to United States Attorney David J. Freed, McDowell previously pleaded guilty to firearms and drug trafficking offenses based on conduct that occurred in York County in December 2016 and February 2017. In addition to the 57 months in prison, McDowell was ordered to serve three years of supervised release following his prison term.
The case was investigated by the York County Drug Task Force and the Harrisburg Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney James T. Clancy and former Assistant U.S. Attorney Meredith Taylor.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Gettysburg Man Charged with Theft of Social Security BenefitsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeffrey Dixon, age 53, of Gettysburg, Pennsylvania, was indicted on September 30, 2020, by a federal grand jury for theft of Social Security benefits totaling more than $30,000 over a two-year period.
This case was investigated by the Social Security Administration’s Office of Inspector General. Prosecution is assigned to Assistant U.S. Attorney Christian T. Haugsby.
Indictments are only allegations. All persons charged by indictment are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
If convicted of the charge, Dixon faces a maximum penalty of 10 years’ imprisonment and a fine of $250,000. Under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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DOJ Charges More Than 14,200 Defendants with Firearms-Related Crimes in FY20Read the Press Release
HARRISBURG – U.S. Attorney David J. Freed joined the Department of Justice in announcing the charging of more than 14,200 defendants with firearms-related crimes during Fiscal Year (FY) 2020, despite the challenges of COVID 19 and its impact on the criminal justice process. These cases have been a Department priority since November 2019 when Attorney General William P. Barr announced his commitment to investigating, prosecuting, and combatting gun crimes as a critical part of the Department’s anti-violent crime strategy. These firearms-related charges are the result of the critical law enforcement partnership between United States Attorneys’ Offices and the Bureau of Alcohol, Tobacco, Firearms and Explosives, led by Acting Director Regina Lombardo, who has made firearms-related investigations a priority.
“Working together with our state and local partners, we are laser-focused on reducing violence in our communities,” said U.S. Attorney Freed. “Violent crime in the Middle District of Pennsylvania invariably involves firearms – firearms that are illegally obtained and possessed. Violent crime is about power. When we concentrate on investigating, prosecuting and combatting gun crimes we directly impact the power that violent criminals hold over their victims. Those victims, law abiding citizens, are the reason that we will continue to concentrate our efforts on firearm related violent crime.”
“The number one priority of government is to keep its citizens safe,” said Attorney General Barr. “By preventing firearms from falling into the hands of individuals who are prohibited from having them, we can stop violent crime before it happens. Violating federal firearms laws is a serious crime and offenders face serious consequences. The Department of Justice is committed to investigating and prosecuting individuals who illegally buy, sell, use, or possess firearms. Reducing gun violence requires a coordinated effort, and we could not have charged more than 14,000 individuals with firearms-related crimes without the hard work of the dedicated law enforcement professionals at the ATF, our U.S. Attorneys’ Offices across the country, and especially all of our state and local law enforcement partners.”
“Protecting the public from violent crime involving firearms is at the core of ATF’s mission,” commented ATF Acting Director Regina Lombardo. “Every day the men and women of ATF pursue and investigate those who use firearms to commit violent crimes in our communities, many of whom are prohibited from possessing firearms from previous convictions. ATF, in collaboration with the U.S. Attorneys’ Offices across the nation, is committed to bringing these offenders to justice for their egregious and violent criminal acts.”
Of the more than 14,200 cases charged, 64 cases have been brought by the Middle District of Pennsylvania in 2020, announced U.S. Attorney Freed. Below are four cases recently charged on October 13, 2020:
- Tyrick Friday, age 23, of Scranton, Pennsylvania, was indicted for unlawfully possessing a loaded firearm as a convicted felon.
- Cory O’Connor, age 32, of Scranton, Pennsylvania, was indicted for drug trafficking and possessing a firearm with an obliterated serial number in furtherance of a drug trafficking crime.
- Edwin Smith, age 26, of Scranton, Pennsylvania, was indicted for arranging for straw purchasers to make false statements to several Lackawanna County federally licensed firearms dealers in order to purchase a total of 10 firearms.
- Lakeem Hunter-Knight, age 20, of Tobyhanna, Pennsylvania, was indicted for armed robbery of the Pickerel Inn General Store and possession of a firearm in furtherance of a crime of violence.
Under federal law, it is illegal to possess a firearm if you fall into one of nine prohibited categories including being a felon, illegal alien, or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to illegally purchase - firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, is also a federal offense. The Department is committed to prosecuting these firearms offenses as well as using all modern technologies available to law enforcement such as the National Integrated Ballistic Information Network, known as NIBIN, to promote gun crime intelligence. Keeping illegal firearms out of the hands of violent criminals will continue to be a priority of the Department of Justice and we will use all appropriate, available means to keep the law abiding people of this country safe from gun crime.
For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.
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Franklin County Man Charged with Production of Images Depicting the Sexual Abuse of A ChildRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Paul Robinson, age 31, of Chambersburg, Pennsylvania, was indicted on October 7, 2020, by a federal grand jury on child pornography charges.
According to United States Attorney David J. Freed, the indictment alleges that Robinson produced images depicting the sexual abuse of a minor less than one year old (Counts 1 through 3), then distributed those images over the internet (Count 2). After obtaining a search warrant, federal law enforcement officers searched the defendant’s home and located additional images and videos containing child pornography (Count 3).
Homeland Security Investigations and the Pennsylvania State Police investigated the case. Assistant U.S. Attorney Daryl F. Bloom is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. The maximum penalty under federal law for each of Counts 1 through 3 is 30 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Each offense carries a mandatory term of imprisonment of 15 years. The maximum penalty for Count 2 is 20 years of imprisonment, a term of supervised release following imprisonment, and a $25,000 fine. The offense carries a mandatory term of imprisonment of five years. Due to the age of the victim, the maximum penalty for Count 3 is 20 years of imprisonment, a term of supervised release following imprisonment, and a $25,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Luzerne County Men Charged with Fentanyl Trafficking That Resulted in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that charges were unsealed yesterday for five Luzerne County men, for various fentanyl, cocaine, and tramadol trafficking offenses, including fentanyl dealing that resulted in death. The defendants are:
- Edwin Tejeda, age 30, of Wilkes-Barre, Pennsylvania and the Dominican Republic;
- Jose Raymer Tejeda, age 36, of Wilkes-Barre, Pennsylvania;
- Emilio Tejeda, age 32, of Wilkes-Barre, Pennsylvania;
- James Garris, Jr., age 51, of Wilkes-Barre, Pennsylvania; and
- James Tindol, Jr., age 37, of Nanticoke, Pennsylvania.
Brothers Edwin, Jose Raymer, and Emilio Tejeda were indicted by a federal grand jury on June 30, 2020, with conspiring to traffic cocaine and 400 grams or more of fentanyl, between January 2016 and February 2020. According to United States Attorney David J. Freed, the indictment alleges that Edwin Tejeda and Jose Raymer Tejeda are charged with causing the death of A.V. as a result of that conspiracy. The three also are charged varyingly with 19 counts of trafficking fentanyl and tramadol during the course of the conspiracy, and with maintaining a drug premises. The indictment also seeks forfeiture of two Wilkes-Barre properties, two firearms and ammunition, and over $25,000 seized by law enforcement. The defendants all await trial. The indictment remained under seal until Edwin Tejeda was apprehended while traveling to the United States from the Dominican Republic.
James Garris, Jr., was charged in an information on June 3, 2020, with delivering fentanyl that resulted in death. Garris pleaded guilty to that charge on July 7, 2020, and awaits sentencing. James Tindol, Jr. also was charged in an information on March 4, 2020, with delivering fentanyl that resulted in death.
In a related case, on June 30, 2020, Kearon Brinson, age 40, of West Nanticoke, Pennsylvania, and Lamont Hubbard, age 49, of Plymouth, Pennsylvania, were indicted by a federal grand jury on drug trafficking and ammunition charges. According to United States Attorney Freed, the indictment alleges that Brinson and Hubbard conspired to traffic in excess of 40 grams of fentanyl between January 2019 and February 2020. Brinson was charged with possessing with the intent to distribute crack cocaine on February 24, 2020. Brinson and Hubbard both were charged with possessing with the intent to distribute fentanyl on February 24, 2020. Hubbard also was charged with possessing ammunition as a convicted felon. The indictment also seeks forfeiture of assorted ammunition and over $3,500 seized by law enforcement during the investigation. Both defendants await trial.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Luzerne Country Drug Task Force, and the Kingston Police Department. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
This case further was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the drug delivery resulting in death charges are a minimum 20 years and maximum life term of imprisonment. Other drug charges against the defendants carry five and ten-year mandatory minimums. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wilkes-Barre Individuals Sentenced for Running Methamphetamine LaboratoryRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 1, 2020, Mark Heath, age 41, and Amy Casey, age 42, both of Wilkes-Barre, Pennsylvania, were sentenced by United States District Court Judge Malachy E. Mannion for methamphetamine offenses. Heath was sentenced to 84 months’ imprisonment and four years of supervised release. Casey received a time served sentence of 10 months’ imprisonment, and two years of supervised release.
According to United States Attorney David J. Freed, Heath pleaded guilty to conspiring to manufacture and distribute 50 grams or more of crystal methamphetamine in Pennsylvania between approximately May 2017 and June 2017. The evidence established that Heath manufactured methamphetamine in a Wilkes-Barre, Pennsylvania residence. Casey pleaded guilty to maintaining a drug premises, for permitting and assisting Heath and others in running the methamphetamine laboratory in her residence, in exchange for free methamphetamine. In pronouncing both sentences, Judge Mannion highlighted that the crimes jeopardized the safety of several children living in the residence, for which the defendants received sentencing enhancements.
Two other defendants were convicted in connection with this investigation:
(1) Shawn Melleski, formerly of Wilkes-Barre Pennsylvania, pleaded guilty to a methamphetamine conspiracy and was sentenced to 46 months’ imprisonment and three years of supervised release; and
(2) Michael Laury, formerly of Wilkes-Barre Pennsylvania, was convicted at trial of a methamphetamine conspiracy, managing a drug premises, and for providing false statements to law enforcement. Laury awaits sentencing.
The matter was investigated by the FBI, the Pennsylvania State Police, and the Wilkes-Barre Police Department. Assistant United States Attorneys Phillip J. Caraballo and Jeffrey St John are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Mifflin County Man Charged with Drug TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 30, 2020, Gerald McFadden, age 36, of Lewistown, Pennsylvania, was indicted by a federal grand jury on drug trafficking offenses.
According to United States Attorney David J. Freed, the indictment charges McFadden with conspiracy to distribute and possess with intent to distribute crack cocaine and heroin between August 17, 2019 and October 17, 2019, in Mifflin County. The indictment also charges McFadden with 15 separate instances of possession with intent to distribute crack cocaine and heroin, and one count of possession with the intent to distribute more than 28 grams of crack cocaine.
This case was investigated by the FBI, the Pennsylvania State Police, and the Mifflin County Drug Task Force. Assistant U.S. Attorney Christian T. Haugsby is prosecuting the case.
Indictments are only allegations. All persons charged by indictment are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Based upon the weight of the drugs involved in the alleged conspiracy, the maximum penalties that may be imposed upon conviction are 40 years’ imprisonment and a $5 million fine. A sentence for these drug trafficking offenses also includes a period of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Former Sullivan County Sheriff’s Deputy Sentenced to One Year in Federal Prison for EmbezzlementRead the Press Release
SCRANTON -The United States Attorney’s Office for the Middle District of Pennsylvania announced that Mary Handzus, age 64, of Laporte, Pennsylvania, was sentenced on October 1, 2020 to 12 months and a day followed by two years on supervised release by United States District Court Judge Matthew W. Brann, for theft from the Sullivan County Sheriff’s Office.
According to United States Attorney David J. Freed, between 2012 and 2019, Handzus was employed as the Administrative Deputy by the Sullivan County Sheriff’s Office and stole $198,566 from the Sheriff’s Office account.
Judge Brann also ordered Handzus to pay restitution in the amount of $250,755, for the money she stole and the forensic audit conducted following the discovery of the theft.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Pennsylvania State Police. Assistant U.S. Attorney Jenny P. Roberts prosecuted the case.
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Former Scranton Mayor Sentenced to Seven Years’ Imprisonment on Public Corruption ChargesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that the former mayor for the City of Scranton, William L. Courtright, age 63, of Scranton, Pennsylvania, was sentenced to seven years’ imprisonment by United States District Court Judge Malachy E. Mannion, on public corruption charges.
According to United States Attorney David J. Freed, Courtright previously pleaded guilty on July 2, 2020, to charges involving criminal conspiracy, bribery and extortion in July 2019. Courtright had been the subject of a multi-year year undercover investigation headed by the FBI. The undercover investigation captured the former mayor accepting cash payments from vendors doing business with the city.
In addition to the prison term, Judge Mannion also ordered Courtright to pay a $25,000 fine, and be supervised by a probation officer for three years following his release from prison.
“In this County, in this Commonwealth, in this Country – our elected officials work for us,” said U.S. Attorney Freed. “Not the other way around. Using public office for personal financial gain is a crime, plain and simple. We are pleased with Judge Mannion’s sentence. Elected officials should remain on notice that we will continue to work together with our state and local partners to investigate and prosecute public corruption cases at all levels. There is no such thing as a little bit of corruption. Corruption, not matter the scope is insidious. I want to commend the painstaking work of our partners at the FBI who have never wavered in their commitment to the citizens of this district. We are also grateful for the valuable assistance of IRS-Criminal Investigations and the Pennsylvania State Police. We will not rest in the fight against corruption.”
“Instead of working honestly on behalf of his constituents, William Courtright traded on his office, embracing a corrupt pay-to-play culture,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “With every bribe pocketed and favor accepted, he sold out the city of Scranton a little more. The damage he’s done to the public trust is profound and for that he must be held accountable. Cases like this only fuel the FBI's commitment to tackling public corruption.”
In addition to the prison term, Judge Mannion also ordered Courtright to pay a $25,000 fine, and be supervised by a probation officer for three years following his release from prison.
The FBI was assisted during the investigation by the Pennsylvania State Police and the Internal Revenue Service Criminal Investigation. Assistant United States Attorneys Michael Consiglio and Michelle Olshefski prosecuted the case.
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Monroe County Man Charged with Attempted Online Enticement and Sex Trafficking of A ChildRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 29, 2020, Robert Duus, age 34, of Monroe County, Pennsylvania, was indicted by a federal grand jury for attempted online enticement of a minor and attempted sex trafficking of a child.
According to United States Attorney, David J. Freed, the indictment alleges that Duus attempted to use a facility of interstate commerce to entice a minor to engage in sexual activity. Additionally, the indictment alleges that Duus attempted to cause a child to engage in a commercial sex act.
The charges stem from an investigation by the Federal Bureau of Investigation (FBI) – Philadelphia Division and its state and local law enforcement partners in Monroe County, Pennsylvania. Assistant United States Attorney Jeffery St. John is prosecuting the case.
The maximum penalties under federal law for these offenses is life imprisonment, a mandatory minimum period of imprisonment of 15 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Lehigh County Man Charged with Attempted Online Enticement and Sex Trafficking of A ChildRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 29, 2020, Philip Schmaldinst, age 44, of Lehigh County, Pennsylvania, was indicted by a federal grand jury for attempted online enticement of a minor and attempted sex trafficking of a child.
According to United States Attorney, David J. Freed, the indictment alleges that Schmaldinst attempted to use a facility of interstate commerce to entice a minor to engage in sexual activity. Additionally, the indictment alleges that Schmaldinst attempted to cause a child to engage in a commercial sex act.
The charges stem from an investigation by the Federal Bureau of Investigation (FBI) – Philadelphia Division and its state and local law enforcement partners in Monroe County, Pennsylvania. Assistant United States Attorney Jeffery St. John is prosecuting the case.
The maximum penalties under federal law for these offenses is life imprisonment, a mandatory minimum period of imprisonment of 15 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Franklin County Man Charged with Child Exploitation OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 30, 2020, Damion Phillip Gress, age 24, of Franklin County, was indicted by a federal grand jury for offenses involving the exploitation of minors.
According to United States Attorney David J. Freed, the indictment alleges that Gress persuaded and used a minor to produce images of child pornography between August 2015 and October 2016 with respect to two separate victims. Gress is also alleged to have received images of child pornography during that time period and to have possessed images of child pornography on August 12, 2019. The four-count indictment also includes a notice of the Government’s intent to forfeit all images of child pornography and the electronic devices associated with those images.
This case was investigated by the Federal Bureau of Investigations and the Pennsylvania State Police. Assistant United States Attorney James T. Clancy is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. The maximum penalty for use of a minor to produce child pornography is 30 years’ imprisonment and a $250,000 fine. That charge carries a mandatory minimum term of imprisonment of 15 years and a term of supervised release after imprisonment. Receipt of child pornography carries a maximum term of imprisonment of 20 years, a five-year mandatory minimum prison sentence, a $250,000 fine and a period of supervised release after imprisonment. Possession of child pornography carries a maximum 10-year prison term, a $250,000 fine and a period of supervised release after imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Easton Man Charged with Attempted Online Enticement and Sex Trafficking of A ChildRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 29, 2020, Lorenz Quiambao, age 39, of Easton, Pennsylvania, was indicted by a federal grand jury for attempted online enticement of a minor and attempted sex trafficking of a child.
According to United States Attorney David J. Freed, the indictment alleges that Quiambao attempted to use a facility of interstate commerce to entice a minor to engage in sexual activity. Additionally, the indictment alleges that Quiambao attempted to cause a child to engage in a commercial sex act.
The charges stem from an investigation by the Federal Bureau of Investigation (FBI) – Philadelphia Division and its state and local law enforcement partners in Monroe County, Pennsylvania. Assistant United States Attorney Jeffery St. John is prosecuting the case.
The maximum penalties under federal law for these offenses is life imprisonment, a mandatory minimum period of imprisonment of 15 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Lackawanna County Man Charged with Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jean Quinones, age 25, of Scranton, of Pennsylvania, was indicted on September 29, 2020, by a federal grand jury for drug trafficking.
According to United States Attorney David J. Freed, the indictment charges Quinones with attempt to possess with intent to distribute in excess of 500 grams of cocaine on September 4, 2020.
The investigation was conducted by the Department of Homeland Security, United States Postal Inspectors, United States Customs and Border Patrol and the Scranton Police Department. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under federal law, the drug trafficking offense carries a mandatory minimum sentence of five years in prison, up to a maximum sentence of forty years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
This case is also part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
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Former New York City Money Transfer Agent Sentenced to 36 Months’ Imprisonment on Fraud ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that a native of Nigeria who became a naturalized U.S. Citizen, Cyprian Ngbadi, age 63, of New York City, was sentenced to 36 months’ imprisonment by United States District Court Judge Christopher C. Conner on charges that he conspired to commit mail fraud, wire fraud and money laundering between 2007 and 2009. Ngbadi was also ordered to pay $435,664 restitution to 194 victims.
According to United States Attorney David J. Freed, Ngbadi and six codefendants perpetrated a scheme to defraud dozens of individuals, some of whom were senior citizens residing in the Middle District of Pennsylvania, out of hundreds of thousands of dollars on a variety of mass marketing fraud schemes, including but not limited to bogus sweepstakes scams, loan schemes, employment opportunity scams, person in need schemes, and internet purchase scams.
Between 2007 and 2009 Ngbadi owned and/or operated two MoneyGram and Western Union outlets, “Rockaway Business Center” and “Neighborhood Express Payment,” in the greater Queens, New York area. Mass marketing fraudsters used Ngbadi to convert fraud induced money transfers from victims into cash and to distribute the proceeds to other co-conspirators, some of whom resided in Canada and Nigeria. For his role in the conspiracy Ngbadi kept approximately 10% of the proceeds.
Western Union and MoneyGram determined in 2008 that Ngbadi, who was then doing business as Rockaway Business Center, was complicit in consumer fraud and money laundering activities and, as a result, both companies terminated their money transfer agreements with him. Undeterred, with the unwitting assistance of a straw party, Ngbadi opened new Western Union and MoneyGram outlets under the name of “Neighborhood Express Payment” in New York. Thereafter, Ngbadi continued to cash out and launder additional money transfers sent by consumer fraud victims until Western Union and MoneyGram finally terminated Neighborhood Express Payment’s operations in 2009.
Ngbadi was arrested on February 8, 2019, upon his arrival in New York City on a flight from Nigeria where Ngbadi has been residing for the past five years.
The case was investigated by the Harrisburg Office of the United States Postal Inspection Service. Assistant United States Attorney Kim Douglas Daniel prosecuted the case.
The United States Attorney and United States Postal Inspectors remind all citizens that they should never make an advance payment of any kind on the promise of a sweepstakes prize, loan or grant.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines, and could include a term of supervisory release following imprisonment, and a fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Florida Man Sentenced in Drug Proceeds Money Laundering CaseRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 29, 2020, Michael Sean Riley, age 52, of Ocala, Florida, was sentenced to 72 months’ imprisonment and ordered to forfeit up to $800,000, by United States District Court Judge Christopher C. Conner for his role in a money laundering conspiracy involving $800,000 in drug proceeds.
According to United States Attorney David J. Freed, Michael Riley arranged with John T. Oiler to rent a storage unit in Baltimore and travel to Pennsylvania to take possession of more than $800,000 of cash drug proceeds Michael Riley skimmed from a larger load of cash. Oiler took the vast majority of those proceeds and stored them in the rented unit in Baltimore. Michael Riley then contacted his cousin, Timothy Riley, then a Narcotics Agent of the PA Attorney General’s Office Bureau of Narcotics Investigations Mobile Street Crimes Unit, and turned over the rest of the cash proceeds to him and other agents from the Mobile Street Crimes Unit. Michael Riley paid Timothy Riley three cash payments totaling $48,000 which Timothy Riley subsequently laundered. Oiler and Michael Riley each netted about $400,000 of the proceeds and each conducted numerous financial transactions with the cash drug proceeds.
Coconspirator Timothy B. Riley was sentenced to 36 months’ imprisonment and conspirator John T. Oiler was sentenced to 30 months’ imprisonment.
The case was investigated by the Harrisburg Offices of the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation, with the full assistance of the Pennsylvania Office of Attorney General. Assistant U.S. Attorneys James T. Clancy and Carlo Marchioli prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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California Man Sentenced to 13 Years’ Imprisonment for Role in Interstate Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Crispin Fernandez, age 27, of Pacoima, California, was sentenced on September 30, 2020 to 13 years’ imprisonment and to serve 10 years on supervised release by U.S. District Court Judge Malachy E. Mannion for his participation in a heroin trafficking conspiracy that shipped more than a kilogram of heroin from California to Carbon County, Pennsylvania.
According to United States Attorney David J. Freed, Fernandez previously pleaded guilty to conspiracy to distribute more than a kilogram of heroin, which is equivalent to more than 40,000 retail bags of heroin, between July 2018 and November 2018.
The case was investigated by the Drug Enforcement Administration (DEA) and the Pennsylvania State Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Water Management Companies Enter Resolutions to Pay $4.3 Million in Monetary Penalties for Clean Air Act ViolationsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that two companies have entered resolutions with the government requiring the payment of a combined $4.3 million in monetary penalties, and an enhanced environmental compliance program, for their involvement in Clean Air Act violations.
According to United States Attorney David J. Freed, Rockwater Northeast LLC, a Pennsylvania-based company that provides water management services to companies in the oil and gas industry, was charged in a criminal information on September 24, 2020, with 31 counts of violating the Clean Air Act, for tampering with the emissions systems on 31 heavy-duty diesel trucks owned by the company, and installing “defeat devices” that disabled emissions diagnostic systems on the trucks. Rockwater Northeast LLC also is alleged to have caused the trucks to pass annual vehicle safety inspections by the Department of Transportation (DOT), despite the modified emissions systems.
Separately, Select Energy Services, Inc., a Texas-based company and the successor in interest to Rockwater Energy Solutions, Inc., parent company of Rockwater Northeast LLC, entered a three-year non-prosecution agreement with the United States. The agreement resolves Clean Air Act violations for modified emissions systems on 29 additional heavy-duty diesel trucks that were owned by Rockwater Energy Solutions, Inc. Select Energy Services, Inc. has cooperated with the investigation since its acquisition of Rockwater Energy Solutions, Inc. in 2017.
Rockwater Northeast LLC agreed to pay a monetary resolution of $2 million, and Select Energy Services, Inc. agreed to pay a monetary resolution of $2.3 million. Under the terms of the non-prosecution agreement, Select Energy Services, Inc. agreed to continue cooperating with the government, and to implement an environmental compliance program designed to prevent future Clean Air Act violations. Select Energy Services, Inc. also is required to conduct annual audits during the three-year term of the agreement, to ensure Clean Air Act compliance.
Six individuals have been prosecuted in connection with this investigation; four of whom are current or former employees of Rockwater Northeast LLC, and two of whom are former third-party vendors of Rockwater Northeast LLC. All six individuals pleaded guilty to conspiring to impede the lawful functions of the Environmental Protection Agency (EPA) and DOT, and to violate the Clean Air Act:
- Brian Mellot, of Cumberland, Maryland, was sentenced to six months of imprisonment and one year of supervised release;
- Gavin Rexer of Jersey Shore, Pennsylvania, pleaded guilty and is awaiting sentencing;
- Dennis Paulhamus of Jersey Shore, Pennsylvania, pleaded guilty and is awaiting sentencing;
- Joseph Powell of Hickory, Pennsylvania, pleaded guilty and is awaiting sentencing;
- John Joseph of Canonsburg, Pennsylvania, pleaded guilty and is awaiting sentencing; and
- Timothy Sweitzer of Jersey Shore, Pennsylvania, pleaded guilty and is awaiting sentencing.
“We take seriously our job of protecting the environment in Pennsylvania, and we won’t hesitate to prosecute individuals committing environmental crimes,” said United States Attorney Freed.
“The defendants in this case knowingly and repeatedly installed ‘defeat devices’ to remove emissions controls in dozens of diesel trucks in violation of the Clean Air Act,” said Environmental Protection Agency (EPA) Special Agent in Charge Jennifer Lynn of EPA’s Criminal Investigation Division in Pennsylvania. “Today’s announcement demonstrates that EPA and our law enforcement partners are committed to enforcing our environmental laws.
“Businessmen and companies that intentionally falsify records in order to circumvent federal laws and regulations will be held accountable for their actions,” said Douglas Shoemaker, Regional Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General. “This multi-million dollar settlement demonstrates our continuing effort to combat transportation-related fraud and abuse in the State of Pennsylvania and throughout the country.”
The matter was investigated by the EPA’s Criminal Investigations Division and the DOT’s Office of the Inspector General, with the assistance of the Pennsylvania State Police and other law enforcement agencies. The case was prosecuted by Assistant United States Attorneys Phillip J. Caraballo and Sean Camoni, and by Special Assistant United States Attorney Patricia C. Miller.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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New York Man Sentenced to 87 Months’ Imprisonment for Drug Trafficking ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 25, 2020, Luis Torres-Jiminez, age 31, of New York, was sentenced to 87 months’ imprisonment by U.S. District Court Judge Robert D. Mariani, for his participation in a drug trafficking conspiracy.
According to United States Attorney David J. Freed, Torres-Jimenez conspired with Juan Roman-Polanco and others to distribute and possess with intent to distribute powder cocaine and cocaine base, or “crack.” Specifically, Torres-Jimenez admitted responsibility for over 500 grams of cocaine and 28 grams of crack.
Roman-Polanco was previously sentenced to 151 months’ imprisonment.
The case was investigated by the U.S. Drug Enforcement Administration (DEA), Wilkes-Barre Police Department, and Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni prosecuted the case.
This case is also part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
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Hazleton Man Sentenced to 11 Months’ Imprisonment for Fraud and Naturalization OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 24, 2020, Lucas Hernandez-Torres, age 48, of Hazleton, Pennsylvania, was sentenced to 11 months’ imprisonment by United States District Court Judge Robert D. Mariani, for defrauding the United States, and for the unlawful procurement of naturalization.
According to United States Attorney David J. Freed, Hernandez-Torres was convicted of defrauding the IRS by allowing other conspirators to claim his dependents as their own, thereby incurring federal tax credits and refunds. Hernandez-Torres received kickbacks in return, and also made false claims in his personal tax returns for wages that he had not earned, thus accruing additional tax credits. The offenses occurred for tax years 2010 through 2014.
Hernandez-Torres, a Mexican national, also was convicted of making false statements on a naturalization application. He faces deportation after the conclusion of his sentence of imprisonment. As part of the sentence, Judge Mariani ordered Hernandez-Torres to pay $56,395 in restitution to the IRS.
Hernandez-Torres’s wife, Leticia Salazar, previously was convicted of passport fraud, and deported to Mexico after serving approximately six months in prison. Salazar had submitted a fraudulent application for a United States passport in May 2008. In the ultimately unsuccessful application, Corona-Salazar used a United States citizen’s identity as her own. Corona-Salazar was deported before charges were filed in 2015, but identified and re-arrested in Hazleton, Pennsylvania, in May 2018, having re-entered the United States at an unknown time and place.
The matter was investigated by the Internal Revenue Service and by Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Phillip J. Caraballo.
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Harrisburg Man Sentenced to 40 Years’ Imprisonment for Drug Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that on September 16, 2020, Maurice Lackey, age 40, of Harrisburg, Pennsylvania, was sentenced to 40 years’ imprisonment for drug trafficking and firearms charges. Lackey was also sentenced to 46 months’ imprisonment to be served concurrent to his 40-year sentence, for violating the terms of his supervised release.
According to United States Attorney David J. Freed, Lackey was arrested by the Harrisburg Bureau of Police on June 18, 2017, after two firearms and approximately 167 baggies of crack cocaine were found in his vehicle during a traffic stop. One of the firearms was loaded at the time of his arrest and both firearms had previously been reported as stolen. In 2003, Lackey had been convicted of possession with intent to distribute more than 5 grams of crack cocaine and possession of a firearm in furtherance of drug trafficking. Lackey was sentenced to 15 years’ imprisonment for those offenses, and was released from prison less than eight months prior to his arrest on June 18, 2017. On December 5, 2019, Lackey was convicted by a jury of possession with intent to distribute crack cocaine, possession of a firearm in furtherance of drug trafficking, and possession of a firearm as a felon and armed career criminal.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Harrisburg Police Department. Assistant U.S. Attorney Scott Ford prosecuted the case.
This case is also part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
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Dominican National Sentenced for Twenty-Year Old Felony Drug ChargesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 24, 2020, U.S. District Court Judge Robert D. Mariani sentenced Jose Rafael Hidalgo, age 43, a Dominican national, to 70 months’ imprisonment for drug trafficking.
According to United States Attorney David J. Freed, Hidalgo admitted that between 1994 and 1999, he conspired with Luzerne County resident David Drozdowski and others to distribute and possess with intent to distribute cocaine. Hidalgo supplied Drozdowski with cocaine, which he admitted was between 5 and 15 kilograms, which Drozdowski and others then distributed in and around Luzerne County.
Hidalgo was arrested on August 25, 1999, and, after entering an agreement with the United States to plead guilty, he was granted conditional release. At some point between October 12, 1999, and February 2000, while residing in New Jersey under supervised pre-trial release, Hidalgo removed an electronic monitoring device and absconded.
On February 22, 2000, the United States District Court for the Middle District of Pennsylvania issued an arrest warrant for Hidalgo. The United States Marshals Service took charge of the investigation to locate and apprehend Hidalgo, and, in 2016, confirmed that Hidalgo was living in the Dominican Republic. The United States Attorney’s Office for the Middle District of Pennsylvania initiated extradition procedures in conjunction with the Department of Justice Office of International Affairs and the U.S. State Department, leading to Hidalgo’s arrest by Dominican law enforcement authorities on January 17, 2019. Extradition was granted on March 25, 2019, and the U.S. Marshals returned Hidalgo to the United States where he appeared before a federal Magistrate Judge for an initial appearance on May 20, 2019.
The original drug trafficking case was investigated by the U.S. Drug Enforcement Administration (DEA) and the Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni prosecuted the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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