Middle District of Pennsylvania
Press releases recorded for this federal judicial district.
Former Narcotics Agent and Co-Conspirator 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 Chief United States District Court Judge Christopher C. Conner sentenced Timothy B. Riley and John T. Oiler for their roles in a money laundering conspiracy involving $800,000 in drug proceeds following their separate guilty pleas.
According to United States Attorney David J. Freed, both Riley and Oiler pleaded guilty to a conspiracy to launder proceeds of a nation-wide drug trafficking organization. Riley, age 48 of Philadelphia, was sentenced to 36 months’ imprisonment followed by one year of supervised release, and to forfeit up to $800,000. Riley retired from his position as a Narcotics Agent with the Pennsylvania Office of Attorney General, Bureau of Narcotics Investigations shortly after his criminal conduct in this case began. Oiler, age 49 of Georgia, was sentenced to serve 30 months’ imprisonment followed by one year of supervised release and to forfeit up to $800,000. The third co-conspirator, Michael Sean Riley, pleaded guilty and is awaiting sentencing.
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.
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.
The case was investigated by the Harrisburg Offices of the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation, with the full assistance of the Pennsylvania Office of Attorney General. Assistant U.S. Attorney James T. Clancy is prosecuting the case.
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Luzerne County Man Guilty of “Bath Salts” ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jason Randazzo, age 46, of Mountaintop, Pennsylvania, pleaded guilty on May 23, 2019, before Senior U.S. District Court Judge James M. Munley, to conspiracy to import into the United States from China alpha-pvp, commonly known as “bath salts.”
According to United States Attorney David J. Freed, Randazzo admitted to participating in the conspiracy between March 2014 and January 2016. Randazzo was one of seven people indicted by a grand jury in August 2016. That indictment was the fourth indictment resulting from the lengthy investigation into “bath salts” importation and trafficking. In all, 18 people were charged as a result of the investigation, including a Texas-based couple who shipped “bath salts” to customers throughout the United States, including Pennsylvania.
Todd Morgans, of West Pittston, a major local supplier of “bath salts,” was previously sentenced to 135 months’ imprisonment. David Folweiler, a Luzerne County sub-distributor, was sentenced to 90 months’ imprisonment. One of the Texas-based suppliers, Treiu Thuy Duong, received a 70-month prison sentence. Alan Folweiler received a 63-month sentence. Frank Brennan was sentenced to 60 months’ imprisonment.
The investigation has resulted in the seizure and forfeiture of several firearms, thousands of dollars in cash, hundreds of silver coins, real property and bank accounts valued at more than $750,000.
Judge Munley ordered a pre-sentence investigation to be completed, and scheduled sentencing for August 26, 2019.
The case was investigated by the Department of Homeland Security, the Drug Enforcement Administration, the United States Postal Inspection Service, and the Pennsylvania State Police. Assistant U.S. Attorney Francis P. Sempa 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 maximum penalty under federal law for this offenses is 20 years’ 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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Hazelton Man Charged with Theft of Government Property and Aggravated Identity Theft in Connection with Scheme to Unlawfully Obtain Welfare BenefitsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Andres Santos, age 37, of Hazelton, Pennsylvania, was indicted on May 21, 2019, by a federal grand jury for theft of government property, specifically, theft of welfare benefits to which he was not entitled, as well as for charges of social security fraud, false claim of United States citizenship and aggravated identity theft.
According to United States Attorney David J. Freed, the indictment alleges that 2016, 2017, 2018 and 2019, in Luzerne County, Santos used the social security account number and other identification information of another person and misrepresented his citizenship status in order to obtain Medicaid Medical Assistance benefits and Supplemental Nutrition Assistance Program (SNAP) benefits in an amount over $1000.00 each, to which he was not entitled
The matter was investigated by the United States Department of Homeland Security Investigations Division and the Pennsylvania Office of the State Inspector General. Assistant United States Attorney Jeffery St John 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 under federal law for these offenses is 12 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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Former Lackawanna County Prison Contract Employee Charged with Conspiracy to Provide Drugs and Contraband to InmatesRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal information was filed on May 21, 2019, charging Brenda Cruise, age 48, of Dunmore, Pennsylvania, with conspiring with others to provide contraband, including illegal drugs, to inmates at the Lackawanna County Prison.
According to United States Attorney David J. Freed, the criminal information alleges that Cruise conspired with others to provide marijuana, suboxone, synthetic marijuana (“spice”), and tobacco to inmates at the prison between February 2018 and December 2018.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Cruise is the fourth person to be charged as a result of the investigation. Assistant U.S. Attorney Francis P. Sempa 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.
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 is five years’ 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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Former Employee of Scranton Counseling Center Sentenced to 15 Years’ Imprisonment for Producing Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lawrence Stone, age 64, formerly of East Stroudsburg, Nanticoke, and Scranton, Pennsylvania, a former Master Clinician and Case Manager at Scranton Counseling Center, was sentenced on May 23, 2019, to 15 years’ imprisonment to be followed by five years on supervised release by U.S. District Court Judge Malachy E. Mannion for producing child pornography.
According to United States Attorney David J. Freed, Stone previously admitted to persuading two minor victims (ages 13 and 14) to engage in sexually explicit conduct for the purpose of producing images of the conduct. Stone committed the offense between 2010 and 2014, when he was employed at the Scranton Counseling Center.
Judge Mannion also ordered Stone to receive sex offender treatment and to comply with all provisions of the Sex Offender Registration and Notification Act.
Stone was indicted by a federal grand jury in November 2018, as a result of an investigation by the Federal Bureau of Investigation and Scranton Police. 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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Dauphin County Woman Sentenced to Four Months’ Imprisonment for Bank EmbezzlementRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Maria Lyter, age 60, of Hummelstown, Pennsylvania, was sentenced on May 20, 2019, by Chief United States District Court Judge Christopher C. Conner to four months’ imprisonment to be followed by three years of supervised release for bank embezzlement.
According to United States Attorney David J. Freed, Lyter admitted to embezzling approximately $8,300 from the Hummelstown bank while employed at that bank in March 2016.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Carlo D. Marchioli and Joseph J. Terz prosecuted the case.
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Chester County Man Charged with Fleeing from Federal Park RangersRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Saul Rivkin, age 55, of Chester County, Pennsyvlania, was charged in a criminal information on May 23, 2019, with fleeing from National Park Service Rangers.
According to United States Attorney David J. Freed, Rivkin fled from Rangers in the Delaware Valley Water Gap Recreation Area on October 21, 2018, in an automobile.
Another individual involved in the incident, Jeffrey J. Steigelmann III, pleaded guilty on May 14, 2019 to fleeing from National Park Service Rangers. Steigelmann is awaiting sentencing.
The investigation was conducted by the National Park Service Rangers and other state and local law enforcement officials. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
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 the charge is a two-year term 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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Fugitive Extradited from Dominican Republic to Face Twenty-Year Old Felony Drug ChargesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that that Dominican authorities have extradited Jose Rafael Hidalgo, age 43, formerly of New Jersey, to face a 1999 indictment for drug trafficking.
According to United States Attorney David J. Freed, an indictment returned on August 24, 1999 alleges that Hidalgo conspired with others to distribute and possess with intent to distribute in excess of five kilograms of cocaine. 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 U.S. Marshals are to be commended for their dogged determination in tracking this fugitive down,” said U.S. Attorney Freed. “This extradition is the result of solid police work and a refusal to give up the hunt, even twenty years later, which is exactly what we’ve come to expect from the Marshals Service.”
“The fugitive task force know no boundaries with respect to investigating fugitives who leave the United States,” said U.S. Marshal Martin J. Pane. “After being on the run for over nineteen years the arrest of Hidalgo is a testament to our dedication to ensure all who flee from justice are located and given their day in court.”
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 is prosecuting 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.
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 this offense is a life term 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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York Man Convicted for Robbery and Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Anthony Johnson, age 51, of York, Pennsylvania, was convicted on May 16, 2019, for Hobbs Act robbery and discharging a firearm during a crime of violence after a two-day jury trial before Senior U.S. District Court Judge Sylvia H. Rambo.
According to U.S. Attorney David J. Freed, Johnson and his co-conspirator robbed and shot the victim in the head on Girard Avenue, York, on January 9, 2016. During the investigation, law enforcement officers recovered the gun used to shoot the victim, a stolen Smith and Wesson 9mm caliber semiautomatic pistol, from Johnson’s co-conspirator during her arrest on January 13, 2016.
Testimony established that the victim remained in a comatose state for at least four months following the shooting. The victim required three brain surgeries and other life-saving medical interventions to repair the damage caused by Johnson and his co-conspirator.
Based on Johnson’s conviction for discharging a firearm during a crime of violence, he will be subject to an enhanced penalty requiring a mandatory minimum of 10 years’ imprisonment, which must be served consecutively to any sentence Judge Rambo imposes on the Hobbs Act robbery conviction.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department. Assistant United States Attorneys William A. Behe and Meredith A. Taylor 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.
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 is lifetime 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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Scranton Man Indicted for Methamphetamine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Bomboy, age 59, of Scranton, Pennsylvania, was indicted on May 14, 2019, by a federal grand jury for conspiring to distribute more than 50 grams of methamphetamine.
According to United States Attorney David J. Freed, the indictment alleges that Bomboy participated in a conspiracy to distribute more than 50 grams of methamphetamine in the Scranton area between February and April 2019. The indictment also charges Bomboy with possession with intent to distribute methamphetamine.
The case was investigated by the Scranton Police Department and the Drug Enforcement Administration. 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.
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 for the charge under federal law is up to forty years in prison, a term of supervised release following imprisonment, and a $5,000,000 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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Luzerne County Woman Sentenced to Three Years’ Imprisonment for Trading Firearms for HeroinRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Stephani Taylor, age 27, of Shickshinny, Pennsylvania, was sentenced by U.S. District Court Judge Malachy E. Mannion to three years’ imprisonment to be followed by two years of supervised release for unlawfully possessing firearms in furtherance of a drug trafficking crime.
According to United States Attorney David J. Freed, Taylor previously admitted to trading ten firearms for heroin between December 2016 and September 2017.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Kingston 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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Luzerne County Man Sentenced to 90 Months’ Imprisonment for Heroin Trafficking and Firearms OffensesRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Wilson, age 26, of Hanover Township, Pennsylvania, was sentenced by U.S. District Court Judge Malachy E. Mannion to 90 Months’ imprisonment to be followed by three years of supervised release for distributing heroin and unlawfully possessing firearms in furtherance of a drug trafficking crime.
According to United States Attorney David J. Freed, Wilson previously admitted to distributing heroin between December 2016 and September 14, 2017, and possessing firearms in connection with his heroin trafficking. Wilson distributed between 40 grams and 60 grams of heroin, which is equivalent to between 1,800 and 3,000 retail bags of heroin.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Kingston 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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Wilkes-Barre Man Sentenced to over Two Years’ Imprisonment for Possessing A Firearm in Connection with Drug TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Shakim Varick, age 37, of Wilkes-Barre, Pennsylvania, was sentenced on May 14, 2019, by U.S. District Court Judge Robert D. Mariani, to 30 months’ imprisonment to be followed by three years of supervised release for unlawfully possessing a firearm in furtherance of a drug trafficking crime.
According to United States Attorney David J. Freed, Varick previously admitted to possessing a firearm along with heroin and crack cocaine that he intended to distribute in the city of Wilkes-Barre in March 2015.
The matter was investigated by the Federal Bureau of Investigation and the Wilkes-Barre 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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New York Man Indicted for Conspiracy to Distribute Heroin and Interstate ProstitutionRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Akbar Muhammad, age 42, of New York, was indicted on May 14, 2019, by a federal grand jury for conspiracy to distribute more than a kilogram of heroin, and two counts of interstate prostitution.
According to United States Attorney David J. Freed, the indictment alleges that Muhammad, who used the street name “Biz,” participated in the conspiracy to distribute heroin from 2015 to the present, and transported prostitutes from Pennsylvania to New York and from New York to Pennsylvania between October 2016 and 2017.
The indictment stems from an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and Stroud Area Regional Police. Assistant U.S. Attorney Francis P. Sempa 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.
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 conspiracy charge is life imprisonment, a term of supervised release following imprisonment, and a fine. The drug charge also carries a mandatory minimum sentence of 10 years’ imprisonment. The maximum sentence for the prostitution offenses is 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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Former Harrisburg Businessman Pleads Guilty to Defrauding Pennsylvania College Faculty UnionRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that the former owner/operator of a Harrisburg based dental and vision claims processing business, Michael Timothy Buchanan, age 68, of Fishers, Indiana, pleaded guilty on May 14, 2019, before U.S. District Court Judge Sylvia H. Rambo, to one count of Health Care Fraud.
According to United States Attorney David J. Freed, Buchanan admitted to defrauding a trust fund established by the Association of Pennsylvania State College and University Faculties (APSCUF) out of $1,493,629. Buchanan executed a scheme to defraud the Pennsylvania Faculty Health and Welfare Fund (The Fund) between 2007 and 2017 by his submission of false, inflated invoices for the services his company, Actuaries, Consultants and Administrators, Inc. (ACA), provided The Fund in connection with the processing of dental and vision claims submitted by members of the APSCUF Union.
The Fund paid ACA $5.20 for each vision claim it processed and $8.10 for each dental claim it processed. Buchanan routinely and artificially inflated the number of claims it allegedly processed for The Fund between 2007 and 2017 that resulted in a $1,493,629 overpayment to ACA.
Upon the conclusion of the guilty plea proceeding, Judge Rambo released Buchanan on his own recognizance pending preparation of a presentence report. No date has yet been scheduled for sentencing.
The case was investigated by the Harrisburg Office of the FBI and the U.S. Department of Labor, Office of Inspector General. Assistant United States Attorney Kim Douglas Daniel is prosecuting the case.
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 this offense is 10 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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Additional Charges Filed Against Plains Township Man Indicted for Firebombing the Luzerne County Children and Youth Office BuildingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury returned a second superseding indictment on May 14, 2019, charging Phillip Finn, Jr, age 48, of Plains Township, Pennsylvania, with attempted witness tampering.
According to United States Attorney David J. Freed, the second superseding indictment alleges that on January 31, 2019, Finn instructed a witness to tell law enforcement that he/she does not remember certain events with the intent to cause the witness to withhold testimony during Finn’s trial.
On July 11, 2017, Finn was indicted on charges of stalking, interstate communications and malicious damage to federal property by fire. The indictment alleged that between March 3, 2017 and March 6, 2017, Finn used Facebook, Google and his cell phone to engage in a course of conduct, to harass and intimidate two Luzerne County Children and Youth Services employees. On October 2, 2018, an additional count of Interstate Communications and the charge of use of fire to commit a felony were filed against Finn.
The case was investigated by the U.S. Federal Bureau of Investigation (FBI), the Wilkes-Barre City Police Department and the Luzerne County District Attorney’s Office. Assistant U.S. Attorney Jenny P. Roberts 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 combined maximum penalty under federal law for these offenses is life 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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Harrisburg Man Sentenced to Five Years’ Imprisonment for Firearm OffenseRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that United States District Court Judge Yvette Kane sentenced Jacob Eddie Junior Pena, age 24, of Harrisburg, Pennsylvania, to 60 months’ imprisonment to be followed by five years of supervised release for a firearm offense.
According to United States Attorney David J. Freed, Pena admitted to possessing a firearm in furtherance of drug trafficking on December 1, 2017, in Harrisburg.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of Harrisburg Police. Assistant United States 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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U.S. Attorney Recognizes Police WeekRead the Press Release
HARRISBURG - U.S. Attorney David J. Freed recognizes the service and sacrifice of federal, state, and local police officers on the occasion of National Police Week, which is being observed Sunday, May 12 to Saturday, May 18, 2019.
In October 1962, Congress enacted a joint resolution, which the President signed,
declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
“For more than 20 years as a prosecutor, I have had the daily privilege to witness the sacrifice, dedication, loyalty and commitment of the men and women serving our communities as police,” said U.S. Attorney Freed. “From the most high profile murder case to a lost dog or stolen bicycle, our police are there when we need them. No questions asked. As the United States Attorney for the Middle District of Pennsylvania, I want to acknowledge the work performed by federal, state, local, and tribal law enforcement, who often face uncertain and dangerous situations without expectation of thanks – because it is their sworn duty. We want them to know they have our unwavering support and appreciation.”
According to statistics reported to the FBI, 106 law enforcement officers were killed in line-of-duty incidents in 2018, an increase from 94 officers in 2017.
Comprehensive data tables about these incidents and brief narratives describing the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2018 https://ucr.fbi.gov/leoka/2018/ released this week by the FBI.
The names of all 106 fallen officers nationwide will be formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 31st Annual Candlelight Vigil on the evening of May 13, 2019. No tickets are required and everyone is welcome. For additional information, please call 202-737-3400.
One Middle District of Pennsylvania officer was added this year: Alex I. Sable, York City Police Officer.
The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2019.
For more information about other National Police Week events, please visit www.policeweek.org.
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Two Men Charged with Smuggling Oxycodone Pills into Federal PrisonRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Donald Barlow, age 58, of Bedford, Virginia and his son, Matthew Barlow, age 28, an inmate at Allenwood Low Security Correctional Institution (LSCI), was charged by criminal information on May 9, 2019, with conspiracy to smuggle Oxycodone pills into LSCI in Lycoming County, Pennsylvania.
According to U.S. Attorney David J. Freed, the criminal information alleges that from June 2014 through August 30, 2014, Donald Barlow and Matthew Barlow made coded references during prison electronic mail exchanges while making plans to smuggle 9.6 Oxycodone pills into the prison hidden inside balloons. Donald Barlow traveled from Virginia to LSCI and delivered, and attempted to deliver the Oxycodone pills to Matthew Barlow in the prison visiting room.
The matter was investigated by the Federal Bureau of Investigation, with the assistance of the investigative staff at the LSCI. Assistant U.S. Attorney George J. Rocktashel prosecuted 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 included 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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Schuylkill County Man Guilty of Production of Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Josiah Ferrebee, age 22, of Pine Grove, Pennsylvania, pleaded guilty on May 9, 2019, before Senior U.S. District Court Judge James M. Munley, to production and attempted to production of child pornography.
According to United States Attorney David J. Freed, Ferrebee admitted to persuading a 14-year-old female from the state of Michigan to take sexually explicit images of herself and send them to him via the internet. Ferrebee also admitted that after he persuaded the minor to take and send some initial images to him, he threatened to post those images online unless she sent him more sexually explicit images of herself, which she did. Ferrebee committed the crime—what some have termed “sextortion”—in January 2016.
Judge Munley ordered a pre-sentence investigation to be completed, and scheduled sentencing for August 12, 2019.
The matter was investigated by the Department of Homeland Security and the Pennsylvania State Police. Assistant U.S. Attorneys Francis P. Sempa and Jenny P. Roberts are 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."
The maximum penalty under federal law for this offense is 30 years’ imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of 15 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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Carbon County Man Sentenced to 30 Years’ Imprisonment for Production of Child PornographyRead the Press Release
WILKES-BARRE – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on May 9, 2019, Jared Andrew Novy, age 39, of Jim Thorpe, Pennsylvania, was sentenced to 360 months’ imprisonment by United States District Court Judge A. Richard Caputo for the production of child pornography.
According to United States Attorney David J. Freed, Novy pleaded guilty to production of child pornography in July 2018, and admitted that he produced multiple videos and images of minors engaged in sexually explicit conduct. Novy previously pleaded guilty and was sentenced in Carbon County to state related sexual abuse crimes involving minors.
The charges stem from an investigation conducted by Homeland Security Investigations – Philadelphia Division. Assistant United States Attorney Michelle Olshefski prosecuted the case.
In addition to the prison term, Judge Caputo ordered that Novy by supervised by a probation officer for ten years following his release from prison. Novy will also be required to comply with the registration requirements of the Sexual Offender Registration and Notification Act (Adam Walsh Act) upon release from prison.
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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Luzerne County Woman Guilty of “Bath Salts” ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kerry Wylie, age 27, of Wilkes-Barre, Pennsylvania, pleaded guilty on May 8, 2019, before Senior U.S. District Court Judge James M. Munley, to conspiracy to distribute and possess with intent to distribute alpha-pvp, commonly known as “bath salts.”
According to United States Attorney David J. Freed, Wylie admitted to participating in the conspiracy between March 2014 and January 2016. The conspiracy involved the importation of alpha-pvp from suppliers in China, and the distribution of the drug to sub-distributors and customers in the Luzerne County area. Wylie admitted to being responsible for the possession with intent to distribute and distribution of approximately 1.5 kilograms of alpha-pvp.
Kerry Wylie was one of seven people indicted by a grand jury in August 2016. That indictment was the fourth indictment resulting from the lengthy investigation into “bath salts” trafficking conducted by Agents of the Department of Homeland Security, Agents of the Drug Enforcement Administration, United States Postal Inspectors, and members of the Pennsylvania State Police. In all, 18 people were charged as a result of the investigation, including a Texas-based couple who shipped “bath salts” to customers throughout the United States, including Pennsylvania.
Todd Morgans, of West Pittston, a major local supplier of “bath salts,” was previously sentenced to 135 months’ imprisonment. David Folweiler, a Luzerne County sub-distributor, was sentenced to 90 months’ imprisonment. One of the Texas-based suppliers, Treiu Thuy Duong, received a 70-month prison sentence. Alan Folweiler received a 63-month sentence. Frank Brennan was sentenced to 60 months’ imprisonment.
The investigation has resulted in the seizure and forfeiture of several firearms, thousands of dollars in cash, hundreds of silver coins, real property and bank accounts valued at more than $750,000.
Judge Munley ordered a pre-sentence investigation to be completed, and scheduled sentencing for August 9, 2019.
Assistant U.S. Attorney Francis P. Sempa 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.
The maximum penalty under federal law for this offenses is 20 years’ 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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Luzerne County Man Charged with Illegal Possession of Firearms and Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Bruce Redmond, age 30, of Dallas, Pennsylvania, was indicted by a federal grand jury on May 7, 2019, for illegal possession of firearms and drug trafficking in Luzerne County.
According to United States Attorney David J. Freed, the indictment charges Redmond with unlawful possession of firearms and ammunition, possession of a stolen firearm, possession of an illegal “short-barreled” shotgun, false statements in connection with the purchase of firearms, possession with intent to distribute methamphetamine, and aiding and abetting the distribution of suboxone.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Kingston Police Department, and the Pennsylvania State Police. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
This case was brought as 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.
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 the drug offenses is twenty years’ imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty for the firearms offenses is ten years’ 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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Homeland Security Investigations Shares Nearly $300,000 with Hazleton City Police Department for Assistance in Narcotics InvestigationRead the Press Release
The Hazleton City Police Department received a check in the amount of $295,787.11 today from Homeland Security Investigations Philadelphia office.
HARRISBURG – U.S. Attorney David J. Freed of the United States Attorney’s Office for the Middle District of Pennsylvania joined Special Agent in Charge of Homeland Security Investigations (HSI) Philadelphia, Marlon V. Miller, in presenting a check in the amount of $295,787.11 today to the Chief of Police for the Hazleton City Police Department, Jerry Speziale.
A HSI New York Darknet investigation identified Joshua Sweet, age 26, of Hazleton, Pennsylvania, as a prolific Darknet vendor who manufactured and distributed substantial quantities of narcotics including cocaine, alprazolam, fentanyl, and marijuana, on the Darknet. He laundered his illicit proceeds on the Darknet in an attempt to conceal his illegal activities from law enforcement. Over the course of the yearlong probe, HSI and the Hazelton City Police Department seized evidence including significant quantities of narcotics, equipment to make counterfeit pills, cash, and bitcoin as drug trafficking proceeds.
The U.S. Attorney’s Office for the Middle District of Pennsylvania in conjunction with HSI Philadelphia special agents, charged Sweet in a criminal complaint on May 16, 2018, with possession with intent to distribute controlled substances.
“Homeland Security Investigations is proud to return a significant portion of the money seized in this case to the police department, where it will be put to good use improving the public safety for all citizens in this area," said Marlon V. Miller, special agent in charge of HSI Philadelphia. "We recognize the key role that our local law enforcement partners play in addressing the significant threat that narcotics pose on our communities. Sadly, the perils of narcotics trafficking do not just affect our big cities, they also having a significant impact on our smaller communities."
“While we can and will continue to focus on public safety, effective investigations allow us to also disrupt the business of crime by seizing ill-gotten gains,” said U.S. Attorney David J. Freed. “This presents the opportunity to share these assets with local partners and communities that have been negatively impacted by criminal activity. Because of the great work of HSI and Hazleton Police Department, the law-abiding citizens of Hazleton will benefit for years to come.”
“The collaboration between us has unleashed the power of us all to accomplish what none can do alone,” said Jerry Speziale, Chief of Police for the Hazleton City Police Department. “These funds will support future law enforcement endeavors and equipment so the taxpayer don’t shoulder the burden.”
The funds resulted from an investigation by HSI Philadelphia’s Cyber Crime Investigations Task Force (C2iTF), the Hazleton City Police Department, U.S. Postal Inspection Service, and the Pennsylvania State Police. Assistant United States Attorney Sean Camoni is prosecuting the case.
HSI’s asset forfeiture program exemplifies HSI’s efforts in the area of identification, seizure and forfeiture of assets that represent the proceeds of, and/or were used to facilitate federal violations under the investigative jurisdiction of HSI. The program adheres to the principal belief that the utilization of consistent and strategic application of asset forfeiture laws is necessary and vital in order to disrupt and dismantle the financial infrastructure of criminal enterprises and other national security threats. Asset forfeiture is an essential element of comprehensive and effective law enforcement as it deprives trans-national criminal organizations of their illicitly obtained assets. Accordingly, HSI brings to bear considerable authority, expertise and resources in the area of asset forfeiture. The forfeiture of assets can be and is utilized as a sanction in criminal, civil and administrative investigative activities.
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Schuylkill County Man Sentenced to 105 Months’ Imprisonment for Heroin and Methamphetamine TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Derek Mountz, age 35, of Schuylkill Haven, Pennsylvania, was sentenced on May 6, 2019, to 105 months’ imprisonment followed by four years on supervised release, by Senior U.S. District Court Judge A. Richard Caputo, for participating in a drug trafficking conspiracy that distributed heroin and methamphetamine in the Schuylkill County area in 2016.
According to United States Attorney David J. Freed, Mountz previously pleaded guilty to conspiracy to distribute more than 100 grams of heroin and more than 50 grams of methamphetamine. One hundred grams of heroin is equivalent to approximately 4,000 retail bags of heroin.
The matter was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police in Schuylkill County. 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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Former Penn National Horse Trainer Sentenced to 27 Months in Prison for Misbranding Prescription Drugs on Race DayRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that former Penn National horse trainer Murray Rojas, age 53, of Grantville, Pennsylvania, was sentenced on May 6, 2019, to 27 months’ imprisonment on each of her 14 felony convictions for misbranding prescription drugs on race day and conspiracy. The sentences were ordered to run concurrent to each other. Rojas was also sentenced to serve 2 years of supervised release and to pay a $5,000 fine.
According to United States Attorney David J. Freed, Rojas was convicted by a federal jury on June 30, 2017, of 14 felony counts of misbranding prescription drugs on race day and conspiracy. The crimes involved Rojas directing veterinarians to administer drugs to her horses on race day in violation of track rules and state law. The conspiracy took place between 2002 and 2014, and involved 58 races. Rojas conspired with three veterinarians to have the drugs dispensed and administered to horses on the day they were entered to race.
As part of the conspiracy the veterinarians attempted to conceal this conduct by backdating invoices for the sale and administration of drugs to the horses on race day, as well as the submission of fraudulent veterinarian treatment reports to the Pennsylvania Horse Racing Commission.
The United States Attorney’s Office prosecuted several other individuals as part of this investigation in federal and state court, including:
- Danny Robertson, the official clocker, charged with wire fraud, sentenced to one year probation and ordered to pay a $2,500 fine;
- Craig Lytel, a racing official, charged with wire fraud, sentenced to four months in prison and ordered to pay a $1,000 fine;
- David Wells, owner and trainer, charged with rigging a publicly exhibited contest, sentenced on February 23, 2015, to three months’ imprisonment;
- Patricia Rogers, trainer, charged with rigging a publicly exhibited contest, received an ARD in Dauphin County Court of Common Pleas;
- Samuel Webb, trainer, charged with rigging a publicly exhibited contest, received an ARD in Dauphin County Court of Common Pleas;
- Renée Nodine, veterinarian, charged with misbranding and conspiracy, awaiting sentencing;
- Kevin Brophy, veterinarian, charged with misbranding and conspiracy, awaiting sentencing;
- Fernando Motta, veterinarian, charged with misbranding and conspiracy, awaiting sentencing; and
- Christopher Korte, veterinarian charged with misbranding and conspiracy, awaiting sentencing.
Judge Rambo ordered Rojas to report to a federal prison to be designated by the Bureau of Prisons on June 3, 2019. A decision whether Rojas will be allowed to remain on bail pending an appeal is under advisement by the court.
The case was investigated by the by the Federal Bureau of Investigation, the Pennsylvania Department of Agriculture’s Horse Racing Commission and the Food and Drug Administration, Office of Criminal Investigations. Assistant United States Attorney William A. Behe prosecuted the case.
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York County Man Sentenced to 96 Months’ in Prison for Child Exploitation OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert T. Donelon, age 56, of York County, was sentenced on May 3, 2019, by Chief United States District Court Judge Christopher C. Conner to 96 months’ imprisonment followed by 10 years of supervised release for child exploitation offenses. Chief Judge Conner also ordered Donelon to pay $1,000 to each of the seven identifiable victims.
According to United States Attorney David J. Freed, Donelon pled guilty to the receipt and distribution of images of child pornography between December 2016 and January 2018, in York County.
The case was investigated by the West York Borough Police Department and the Federal Bureau of Investigation. Assistant United States Attorney James T. Clancy 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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Harrisburg Man Sentenced to over Eight Years in Prison for Drug Trafficking and Firearm OffenseRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Caesar A. Torres-Rodriguez, age 23, of Harrisburg, was sentenced on May 2, 2019, by Chief United States District Court Judge Christopher C. Conner to 100 months’ imprisonment followed by three years of supervised release for drug trafficking and firearm charges.
According to United States Attorney David J. Freed, Torres possessed a firearm in furtherance of trafficking heroin on April 30, 2016, in Dauphin County.
The charge stemmed from an investigation conducted by the Harrisburg Police Department, assisted by the Bureau of Alcohol, Tobacco, and Firearms. Assistant United States 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 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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Maryland Man Sentenced to 41 Months in Prison for Bank RobberiesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on April 30, 2019, United States District Court Judge Yvette Kane sentenced Jacob Charles LaFrance, age 29, of Thurmont, Maryland, to 41 months’ imprisonment followed by three years of supervised release. LaFrance was also ordered to pay $6,114 in restitution.
According to United States Attorney David J. Freed, LaFrance committed the armed robberies of the following banks:
- PNC Bank in Fairfield, Adams County, on April 25, 2018, stole $4,266; and
- M&T Bank in Blue Ridge Summit, Franklin County, on May 3, 2018, stole $1,848.
The case was investigated by the Federal Bureau of Investigation with the assistance of the Frederick County (MD) Sheriff’s Office, the Carroll Valley Borough Police, and the Washington Township Police Department. Assistant United States 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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Schuylkill County Man Sentenced to Eight Years’ Imprisonment for Heroin and Methamphetamine TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Marquese Whitted, age 33, of Orwigsburg, Pennsylvania, was sentenced to 96 months’ imprisonment followed by four years on supervised release by Senior U.S. District Court Judge A. Richard Caputo, for participating in a drug trafficking conspiracy that distributed heroin and methamphetamine in the Schuylkill County area in 2016.
According to United States Attorney David J. Freed, Whitted previously pleaded guilty to conspiracy to distribute more than 100 grams of heroin and more than 50 grams of methamphetamine. At today’s sentencing hearing, the Court found that Whitted was responsible for 100 grams of heroin (which is equivalent to 4,000 retail bags), and more than 400 grams of methamphetamine. The Court also found that Whitted had created a substantial risk of death or serious bodily injury when he used his vehicle to ram a police van and attempted to ram another police van while attempting to flee from police in October 2016.
The matter was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police in Schuylkill County. 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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Monroe County Man Sentenced to Forty-Five Months in Prison for Role in Drug Trafficking ConspiracyRead the Press Release
WILKES-BARRE - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Steven Silva-Lugo, age 32, of Henryville, Monroe County, was sentenced on April 26, 2019, by Senior U.S. District Court Judge A. Richard Caputo to forty-five months’ imprisonment and three years on supervised release for his role in a Monroe County-based cocaine trafficking conspiracy.
According to United States Attorney David J. Freed, Silva-Lugo previously pleaded guilty to conspiring with others to distribute between 280 grams and 840 grams of crack cocaine, as well as between 3.5 kilograms and 5 kilograms of powder cocaine, in the Monroe County area between May and July 2015. Silva-Lugo was one of eleven individuals indicted by a grand jury in July 2015 and charged with conspiring to distribute powder cocaine, crack cocaine and/or heroin in the Monroe County area.
The case was investigated by the Drug Enforcement Administration (DEA) and the Pocono Mountain Regional Police Department. Assistant United States Attorney Robert J. O’Hara 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 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.
This prosecution is also 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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Luzerne County Man Guilty of Drug Distribution Resulting in DeathRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Rodney Williams, age 36, of Wilkes-Barre, pleaded guilty on April 26, 2019, before Senior U.S. District Court Judge A. Richard Caputo, to distributing fentanyl to another person that resulted in the death of that person.
According to United States Attorney David J. Freed, Williams admitted to supplying fentanyl to a drug customer on or about December 17, 2017, and the customer subsequently died as a result of ingesting the fentanyl in Kingston, Pennsylvania. Police found the deceased’s body on December 19, 2017.
Judge Caputo ordered a presentence investigation to be completed and scheduled sentencing for July 17, 2019.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Kingston Police. Assistant U.S. Attorney Francis P. Sempa 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.
The maximum penalty under federal law for this offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of 20 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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Hazleton Man Guilty of Methamphetamine and Cocaine TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Juan Elvis Monsanto, age 59, of Hazleton, a citizen of the Dominican Republic, pleaded guilty on April 25, 2019, before U.S. District Court Judge Robert D. Mariani, to possession with intent to distribute cocaine and more than 50 grams of methamphetamine.
According to United States Attorney David J. Freed, Monsanto admitted to committing the crime in February 2016, in Hazleton. Agents of the Drug Enforcement Administration (DEA) and Hazleton Police executed a search warrant at Monsanto’s residence and seized 453 grams of methamphetamine and 150 grams of cocaine.
Judge Mariani ordered a pre-sentence investigation to be completed and sentencing will be scheduled at a later date. Monsanto is detained in prison pending sentencing. Monsanto agreed not to oppose deportation and removal from the United States following his prison sentence.
The case is being investigated by the Drug Enforcement Administration and Hazleton Police. Assistant U.S. Attorney Francis P. Sempa 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.
The maximum penalty under federal law for this offenses is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of five 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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Bellefonte Man Sentenced to 17 Years in Prison for Securities FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that James Hocker, age 49, was sentenced on April 26, 2019, by United States District Court Judge Matthew W. Brann to 204 months’ imprisonment and three years of supervised release for committing securities fraud. Judge Brann also ordered Hocker to pay restitution to the victims in the amount of $1,495,782.62.
According to U.S. Attorney David J. Freed, Hocker, an insurance agent, defrauded approximately thirty-eight investors of more than $1.4 million from 2009 to 2018. Hocker told victims that he would invest their money in funds with guaranteed returns of up to thirty percent, but instead used the money for personal expenses. Many of the victims were elderly and liquidated their retirement accounts and insurance products in order to invest with Hocker.
The matter was investigated by the United States Securities and Exchange Commission’s Enforcement Division and the Federal Bureau of Investigation. Assistant United States Attorney Alisan V. Martin prosecuted the case.
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Bank Robber Sentenced to 63 Months of ImprisonmentRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Douglas Sickler, age 38, of Hanover Township, Pennsylvania, was sentenced on April 25, 2019, by United States District Judge Robert D. Mariani to 63 months of imprisonment and three years of supervised release, for an armed bank robbery.
According to United States Attorney David J. Freed, Sickler and his co-defendant, Shawn Cavanaugh, robbed the PNC Bank in Avoca, Pennsylvania on June 21, 2017, while brandishing pellet guns. Sickler and Cavanaugh were arrested on June 22, 2017, and have remained in custody since. Sickler pleaded guilty to the offense on September 14, 2017. In addition to the sentence of imprisonment, Judge Mariani ordered that Sickler pay $909 to the victim of his crime.
Sickler’s co-defendant, Shawn Cavanaugh, also pleaded guilty and is awaiting sentencing.
The matter was investigated by the Federal Bureau of Investigation and the Kingston Police Department. The case was prosecuted by Assistant United States Attorneys Phillip J. Caraballo and Robert J. O’Hara.
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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Hazleton Man Sentenced to 63 Months’ Imprisonment for Firearms OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on April 24, 2019, United States District Court Judge James M. Munley sentenced Theodore O. Wing, age 52, of Hazleton, Pennsylvania, to 63 months’ imprisonment and a two-year term of supervised release, for aiding and abetting false statements in the purchase of firearms.
According to United States Attorney David J. Freed, Wing’s daughter, Jasmine Wing, purchased five firearms while making false representations that she was the actual buyer, when in fact Theodore Wing and his co-conspirators selected, paid for, and took possession of the firearms. The firearms were purchased from Bob’s Sporting Goods in Hazleton, PA, and from Dave’s Gun Shop in Drums, PA, between September 19, 2014 and March 19, 2015. The firearms were:
- a Glock 19 9mm;
- a Glock 23 .40 caliber;
- a Taurus PT745Pro .45acp;
- an Extar EXP556 5.56; and
- a CAI/Romarm Micro Draco 7.62x39 (a semiautomatic firearm that is capable of accepting a large capacity magazine).
Two of the firearms subsequently were recovered in law enforcement operations, including one that had been used in a shooting in Hazleton, Pennsylvania, in February 2015. In pronouncing the sentence, Judge Munley highlighted Theodore Wing’s lengthy criminal history, willingness to involve his own daughter in this offense, and his attempts to persuade his daughter to lie to investigating law enforcement officials. Theodore Wing has remained in custody pursuant to this matter and an unrelated state sentence for a narcotics trafficking conviction.
The United States previously filed a criminal information and plea agreement with Jasmine Wing, who was charged with making false statements in the course of purchasing six firearms (including the five charged against Theodore Wing). Jasmine Wing pleaded guilty on August 9, 2017, and is awaiting sentencing.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney Phillip J. Caraballo.
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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Benton Man Sentenced to 24 Months’ Imprisonment for Possessing Illegal FirearmsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on April 23, 2019, United States District Court Judge James M. Munley sentenced John Jacob Hasay, age 22, of Benton, Pennsylvania, to 24 months’ imprisonment and a two-year term of supervised release, for the illegal possession of a machinegun.
According to United States Attorney David J. Freed, Hasay came to the attention of federal law enforcement after he posted content in online forums espousing racist and anti-Semitic statements, and threatened to commit a hate crime. Investigators determined that Hasay obtained an auto-sear, which is a device used to convert semi-automatic handguns to fully automatic capabilities, by smuggling it through U.S. Customs from Russia, disguised as a motorcycle part.
During the execution of a search warrant at Hasay’s residence, federal agents recovered several illegal firearms and associated components and ammunition. Those firearms and items were forfeited at Hasay’s sentencing, and included:
- Glock 19 9mm bearing an auto sear;
- CAA Model G3, Micro Roni pistol carbine conversion bearing a scope;
- IWI Model MP Uzi bearing a shortened barrel (a semiautomatic firearm that is capable of accepting a large capacity magazine);
- GSG Model 522 bearing a shortened barrel and a Black and Brown optic (a semiautomatic firearm that is capable of accepting a large capacity magazine);
- Charter Arms Model AR-7 Explorer bearing a shortened barrel (a semiautomatic firearm that is capable of accepting a large capacity magazine);
- Mossberg Model 500A bearing a shortened barrel;
- I.O. Inc. Sporter bearing a suppressor (a semiautomatic firearm that is capable of accepting a large capacity magazine); and
- Two suppressors.
Hasay has remained in detention since his arrest on August 23, 2018.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney Phillip J. Caraballo.
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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Jury Finds Pennsylvania Biofuel Company Owners Guilty of Tax and False Statements ConspiracyRead the Press Release
HARRISBURG – Following a 14-day jury trial in Harrisburg, Pennsylvania, Ben T. Wootton, of Enola, Pennsylvania, and Race A. Miner, of Buena Vista, Colorado, were found guilty of one count of conspiracy to make false statements to the Environmental Protection Agency (EPA), six counts of making false statements to the EPA, one count of conspiracy to defraud the Internal Revenue Service (IRS), and one count of aiding and assisting in the filing of a false claim with the IRS, announced U.S. Attorney David J. Freed for the Middle District of Pennsylvania, Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environmental and Natural Resources Division (ENRD), Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, EPA Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine, and IRS-CI Special Agent in Charge Kelly Jackson. The jury also found the corporation, Keystone Biofuels Inc. (Keystone), guilty of conspiring to make false statements to the EPA and six counts of making false statements to the EPA.
According to the evidence presented at trial, Wootton and Miner co-owned and operated Keystone, originally in Shiremanstown, Pennsylvania, and later in Camp Hill, Pennsylvania. Keystone purported to be a producer and seller of biodiesel, a type of renewable fuel. From August 2009 through September 2013, Wootton and Miner participated in a conspiracy to fraudulently generate renewable fuel credits, identified by renewable identification numbers (RINs) on Keystone fuel and, through January 2012, to fraudulently claim tax refunds based on the Biodiesel Mixture Tax Credit, a federal excise tax credit for persons or businesses who mix biodiesel with petroleum and use or sell the mixture as a fuel.
“The defendants in this case participated in a criminal scheme that struck directly at the heart of a government program that was created to benefit both honest business owners and the community at large by encouraging the development and use of clean bio-diesel fuel,” said U.S. Attorney David J. Freed. “Instead, the defendants defrauded their fellow citizens to the tune of more than $4 million. Working with our partners, we will not rest in pursuing cases that target our shared financial resources.”
“These defendants are guilty of premeditated fraud, pure and simple,” said Assistant Attorney General Clark. “They directly stole money from the federal fisc and they masqueraded as benefactors of the environment. We are grateful for the cooperation of our partners in the Tax Division and U.S. Attorney’s Office in putting an end to this scheme.”
“Abuse of biodiesel fuel credits harms law abiding renewable fuel producers and the United States government,” said Principal Deputy Assistant Attorney General Zuckerman. “The Tax Division along with its partners at United States Attorney’s Offices, ENRD, IRS-CI, and EPA will vigorously prosecute those who fraudulently claim biodiesel fuel credits and violate the criminal law.”
“Today’s guilty verdict is a victory for the American taxpayer,” said IRS-CI Special Agent in Charge Kelly Jackson. “IRS Criminal Investigation will pursue anyone who burns the biodiesel industry by enriching themselves through tax credits they are not entitled to.”
“Today’s guilty verdict demonstrates the severe consequences for anyone who tries to make a profit by defrauding the RINS market,” said EPA Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “EPA and its federal partners worked together to protect the integrity of the Renewable Fuels Standard program by uncovering and prosecuting the defendants’ criminal activities.”
As part of the conspiracy, Wootton and Miner caused inflated fuel amounts to be reported to the IRS. The inflated fuel numbers supported their fraudulent claims for tax refunds on fuel Keystone was not producing. To account for the inflated fuel amounts, Wootton and Miner created false books and records and engaged in a series of sham financial transactions intended to mirror the false books and records. In addition, Miner doctored fuel samples and test results to fraudulently claim tax refunds and RINs on fuel that did not meet the requisite quality standards to qualify for the tax refunds and RINs. It is estimated that over $10 million was generated from the fraudulent RIN sales, and the total tax loss to the government resulting from the defendants’ conduct is approximately $4,149,983.41.
Wootton and Miner face a statutory maximum sentence of five years in prison on each conspiracy count, each false statement to the EPA count, and three years in prison on the count of filing a false tax claim with the IRS, as well as periods of supervised release, restitution, and monetary penalties.
U.S. Attorney Freed, Assistant Attorney General Clark, and Principal Deputy Assistant Attorney General Zuckerman thanked agents of IRS-Criminal Investigation and EPA Criminal Investigation Division, who conducted the investigation, and Senior Litigation Counsel Howard P. Stewart of the Justice Department’s Environmental and Natural Resources Division, Trial Attorneys Mark Kotila, Kimberly Ang, and Michael Vasiliadis of the Justice Department’s Tax Division, Assistant U.S. Attorney Geoffrey MacArthur, and Special Assistant U.S. Attorney David Lastra, who prosecuted the case.
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Jury Finds Pennsylvania Biofuel Company Owners Guilty of Tax and False Statements ConspiracyRead the Press Release
Following a 14-day jury trial in Harrisburg, Pennsylvania, Ben T. Wootton, of Enola, Pennsylvania, and Race A. Miner, of Buena Vista, Colorado, were found guilty of one count of conspiracy to make false statements to the Environmental Protection Agency (EPA), six counts of making false statements to the EPA, one count of conspiracy to defraud the Internal Revenue Service (IRS), and one count of aiding and assisting in the filing of a false claim with the IRS, announced Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environmental and Natural Resources Division (ENRD), Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney David J. Freed for the Middle District of Pennsylvania, EPA Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine, and IRS-CI Special Agent in Charge Kelly Jackson. The jury also found the corporation, Keystone Biofuels Inc. (Keystone), guilty of conspiring to make false statements to the EPA and six counts of making false statements to the EPA.
According to the evidence presented at trial, Wootton and Miner co-owned and operated Keystone, originally in Shiremanstown, Pennsylvania, and later in Camp Hill, Pennsylvania. Keystone purported to be a producer and seller of biodiesel, a type of renewable fuel. From August 2009 through September 2013, Wootton and Miner participated in a conspiracy to fraudulently generate renewable fuel credits, identified by renewable identification numbers (RINs) on Keystone fuel and, through January 2012, to fraudulently claim tax refunds based on the Biodiesel Mixture Tax Credit, a federal excise tax credit for persons or businesses who mix biodiesel with petroleum and use or sell the mixture as a fuel.
“These defendants are guilty of premeditated fraud, pure and simple,” said Assistant Attorney General Clark. “They directly stole money from the federal fisc and they masqueraded as benefactors of the environment. We are grateful for the cooperation of our partners in the Tax Division and U.S. Attorney’s Office in putting an end to this scheme.”
“Abuse of biodiesel fuel credits harms law abiding renewable fuel producers and the United States government,” said Principal Deputy Assistant Attorney General Zuckerman. “The Tax Division along with its partners at United States Attorney’s Offices, ENRD, IRS-CI, and EPA will vigorously prosecute those who fraudulently claim biodiesel fuel credits and violate the criminal law.”
“The defendants in this case participated in a criminal scheme that struck directly at the heart of a government program that was created to benefit both honest business owners and the community at large by encouraging the development and use of clean bio-diesel fuel,” said U.S. Attorney David J. Freed. “Instead, the defendants defrauded their fellow citizens to the tune of more than 4 million dollars. Working with our partners, we will not rest in pursuing cases that target our shared financial resources.”
“Today’s guilty verdict is a victory for the American taxpayer,” said IRS-CI Special Agent in Charge Kelly Jackson. “IRS Criminal Investigation will pursue anyone who burns the biodiesel industry by enriching themselves through tax credits they are not entitled to.”
“Today’s guilty verdict demonstrates the severe consequences for anyone who tries to make a profit by defrauding the RINS market,” said EPA Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “EPA and its federal partners worked together to protect the integrity of the Renewable Fuels Standard program by uncovering and prosecuting the defendants’ criminal activities.”
According to evidence presented at trial, as part of the conspiracy, Wootton and Miner caused inflated fuel amounts to be reported to the IRS. The inflated fuel numbers supported their fraudulent claims for tax refunds on fuel Keystone was not producing. To account for the inflated fuel amounts, Wootton and Miner created false books and records and engaged in a series of sham financial transactions intended to mirror the false books and records. In addition, Miner doctored fuel samples and test results to fraudulently claim tax refunds and RINs on fuel that did not meet the requisite quality standards to qualify for the tax refunds and RINs. It is estimated that over $10 million was generated from the fraudulent RIN sales, and the total tax loss to the government resulting from the defendants’ conduct is approximately $4,149,983.41.
Wootton and Miner face a statutory maximum sentence of five years in prison on each conspiracy count, each false statement to the EPA count, and three years in prison on the count of filing a false tax claim with the IRS, as well as periods of supervised release, restitution, and monetary penalties.
Assistant Attorney General Clark, Principal Deputy Assistant Attorney General Zuckerman, and U.S. Attorney Freed thanked agents of IRS-Criminal Investigation and EPA Criminal Investigation Division, who conducted the investigation, and Senior Litigation Counsel Howard P. Stewart of the Justice Department’s Environmental and Natural Resources Division, Trial Attorneys Mark Kotila, Kimberly Ang, and Michael Vasiliadis of the Justice Department’s Tax Division, Assistant U.S. Attorney Geoffrey MacArthur, and Special Assistant U.S. Attorney David Lastra, who prosecuted the case.
York Man Charged with Child Exploitation OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Steven R. Iseman, age 46, of York, Pennsylvania, was indicted on April 17, 2019, by a federal grand jury for the exploitation of minors.
According to United States Attorney David J. Freed, the indictment alleges that between 2015 and September 2018, in York County, Iseman used a minor to produce child pornography, received and distributed child pornography, and possessed child pornography involving minors under the age of 12. The three-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 U.S. Department of Homeland Security Investigations with assistance from the Pennsylvania State Police and other members of the Inter-agency Child Exploitation Task Force in Central Pennsylvania. Assistant United States Attorney James T. Clancy 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.
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 production of child pornography offense is 30 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. That charge carries a mandatory minimum term of imprisonment of 15 years. The maximum penalty for receipt and distribution of child pornography is 20 years’ imprisonment and a $250,000 fine. That charge carries a mandatory minimum term of imprisonment of 5 years. The maximum penalty for possession of child pornography involving minors under 12 years old is 20 years’ imprisonment and a $250,000 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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Nine Previously Deported Aliens Charged with Illegal ReentryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that nine previously deported aliens were indicted separately on April 17, 2019, by a federal grand jury for illegal reentry into the United States. These matters arose in counties throughout the District including Dauphin, Franklin, Lackawanna, and York.
According to United States Attorney David J. Freed, Victor Espanol-Ahuacatitan, age 35, of Mexico, was previously deported from the United States to Mexico in April 2013. He is alleged to have illegally reentered the United States sometime after April 2013, and was found in the United States in Harrisburg, Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Diego Us-Tum, age 29, of Guatemala, was previously deported from the United States to Guatemala in October 2006. He is alleged to have illegally reentered the United States sometime after October 2006 and was found in the United States in Greencastle, Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.
Marvin Marroquin Garcia-Gomez, age 22, of Guatemala, was previously deported from the United States to Guatemala in February 2015. He is alleged to have illegally reentered the United States sometime after February 2015 and was found in the United States in Greencastle, Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.
Victor Alfonso Morales-Sanchez, age 28, of Guatemala, was previously deported from the United States to Guatemala in March 2017. He is alleged to have illegally reentered the United States sometime after March 2017 and was found in the United States in Greencastle, Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.
Manuel Alejandro Velasco-Rosales, age 32, of Mexico, was previously deported from the United States to Mexico in September 2011. He is alleged to have illegally reentered the United States sometime after September 2011 and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.
Virgilio Orellana-Rivas, age 40, of Honduras, was previously deported from the United States to Honduras in November 2000. He is alleged to have illegally reentered the United States again sometime after November 2000 and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.
Serafin Mendoza-Torres, age 27, of Mexico, was previously deported from the United States to Mexico in July 2016. He is alleged to have illegally reentered the United States sometime after July 2016 and was found in the United States in Dallastown, York County, Pennsylvania after eluding examination or inspection by immigration officers.
Javier Hernandez-Zuniga, age 42, of Mexico, was previously deported from the United States to Mexico in December 2009. He is alleged to have illegally reentered the United States sometime after December 2009 and was found in the United States in Dallastown, York County, Pennsylvania after eluding examination or inspection by immigration officers.
Mauro Camacho-Lopez, age 41, of Mexico, was previously deported from the United States to Mexico in April 2007. He is alleged to have illegally reentered the United States sometime after April 2007 and was found in the United States in Scranton, Lackawanna County, Pennsylvania after eluding examination or inspection by immigration officers.
These cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Joanne Hoffman is prosecuting the cases.
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.
Defendants face a maximum penalty of two 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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Harrisburg Man Charged with Possession of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert L. Hayes, Sr., age 74, of Harrisburg, Pennsylvania, was indicted on April 17, 2019, by a federal grand jury on child pornography charges.
According to United States Attorney David J. Freed, the indictment alleges that Hayes possessed images of prepubescent minors under the age of 12 years old on October 16, 2018 and November 20, 2018, in Harrisburg, Pennsylvania. Hayes was on federal Supervised Release after pleading guilty to a similar federal child exploitation case in 2007.
The case was investigated by the U.S. Postal Inspection Service and the U.S. Probation Office. Assistant U.S. Attorney Meredith Taylor 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.
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 this second offense, Hayes faces a mandatory minimum 10 years imprisonment. The maximum penalty under federal law for this offense 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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Director of Perry County Family Center Charged with EmbezzlementRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Shelly A. Dreyer-Aurila, age 53, of New Bloomfield, Pennsylvania, was indicted on April 17, 2019, by a federal grand jury for embezzlement of funds involving federal programs.
According to United States Attorney David J. Freed, the indictment alleges that between 2010 and 2017, Dreyer-Aurila, Executive Director of the Perry County Family Center, a 501(c)(3) charitable organization in New Bloomfield, Pennsylvania, knowingly embezzled and converted to her own personal use more than $220,000 under the care and control of the Center. The Center annually receives more than $10,000 in federal grants from the U.S. Department of Health and Human Services through the Pennsylvania Department of Health and Human Services to fund programs such as its Maternal, Infant & Early Childhood Home Visiting program and its Child Abuse Prevention program.
The case was investigated by the Pennsylvania Department of State, Bureau of Enforcement and Investigation, Charitable Investigation Unit. Assistant U.S. Attorney James T. Clancy 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 this offense is 10 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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Former Lackawanna County Prison Employee Sentenced to 14 Months’ Imprisonment for Providing Drugs to InmatesRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jerry Defazio, age 40, of Archbald, Pennsylvania, a former contract employee with the Lackawanna County Prison, was sentenced to 14 months’ imprisonment followed by two years’ supervised release by Senior U.S. District Court Judge A. Richard Caputo, for providing and attempting to provide prohibited objects, including illegal drugs, to inmates at the Lackawanna County Prison.
According to United States Attorney David J. Freed, Defazio previously pleaded guilty to providing and attempting to provide contraband in prison. Defazio admitted that between November 2015 and April 2016, while working at the prison, he provided and attempted to provide Oxycontin pills (oxycodone), suboxone, and tobacco to inmates on several occasions and received payments ranging from $50 to $600 for smuggling the drugs and tobacco into the prison.
To date, three people have been charged in connection with the investigation. Deanna Tallo previously pleaded guilty to providing contraband in prison, and Thomas Coss pleaded guilty to obtaining and possessing contraband in prison. Both are awaiting sentencing.
The investigation was conducted by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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Chester County Man Charged with Fleeing from Federal Park RangersRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeffrey J. Steigelman III, age 26, of Chester County, Pennsyvlania, was charged on April 16, 2019, in a criminal information with fleeing from National Park Service Rangers.
According to United States Attorney David J. Freed, Steigelman fled from Rangers in the Delaware Valley Water Gap Recreation Area on October 21, 2018, in an automobile. After a lengthy high-speed chase, he was ultimately apprehended in Port Jervis, New York.
The investigation was conducted by the National Park Service Rangers and other state and local law enforcement officials. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
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 the charge is a two-year term 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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Thompsontown Man Sentenced to 19 Months in Prison for Defrauding Disabled Veteran of $316,360Read the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jason Ehrhart, age 48, of Thompsontown, Pennsylvania, was sentenced to 19 months’ imprisonment on April 15, 2019, by Chief United States District Court Judge Christopher C. Conner for defrauding a disabled Veteran, the Veteran’s Administration, and the Social Security Administration. Chief Judge Conner also ordered Jason Ehrhart to pay $316,360 in restitution to his nephew, Aaron Ehrhart.
According to United States Attorney David J. Freed, Jason Ehrhart pleaded guilty on November 20, 2018, to a criminal information charging him with one count of health care fraud. Jason’s former wife, Laurie Ehrhart, age 48, of Newport, Pennsylvania, pleaded guilty on December 7, 2018, to one count of health care fraud and is scheduled to be sentenced on June 6, 2019.
In 1985 while serving in the U.S. Army, a veteran who was a former resident of Perry County, Pennsylvania, was diagnosed with multiple sclerosis. In 1998, the veteran began receiving disability benefits from the Department of Veterans Affairs (VA) and in 2006 began receiving disability benefits from the Social Security Administration (SSA). The veteran was eventually hospitalized on a permanent basis at the VA hospital in Lebanon, Pennsylvania in November of 2004.
In August 2006, the veteran was deemed by the VA to be incompetent to handle his own financial affairs. As a result, on October 2, 2006, Jason Ehrhart applied to serve as the veteran’s VA Fiduciary and Legal Custodian. Under the terms of a Fiduciary Agreement, Jason Ehrhart agreed to use all of the veteran’s VA disability benefits exclusively for the veteran’s benefit. The agreement warned him that the funds were not for his personal use. The Fiduciary Agreement also required Jason Ehrhart to submit an annual accounting to the VA with respect to the amount of money spent on the veteran’s behalf.
While Jason Ehrhart served as the veteran’s VA Fiduciary and Legal Custodian, all of the veteran’s VA benefits, plus most of his Social Security disability checks, were deposited into a checking account Jason opened at The Orrstown Bank. Altogether, $476,260 in federal benefits ($422,828 in VA disability, $48,187 in Social Security disability, and $5,244 in VA clothing allowance) were deposited into the account between January 2009 and August 2016.
At least $316,360 of the $476,260 was misappropriated by Jason and Laurie Ehrhart and converted to their own use between October 2006 and August 2016. Checks totaling $218,832 ($96,202 payable to Jason Ehrhart and $122,630 payable to Laurie Ehrhart), were drawn against the account. Of the $218,832, $157,742 was deposited into Jason and Laurie Ehrhart’s joint checking account at the Juniata Valley Bank (JVB) and at least $23,496 was converted to cash. Thereafter, the funds in the joint JVB account were employed by Jason and Laurie Ehrhart to pay their personal expenses.
Another $7,174 in checks were made payable to Jason and Laurie Ehrhart’s two minor children. Jason Ehrhart instructed the children to take the checks to the bank, cash them, and to surrender the cash to him.
Another $19,890 in checks were made payable to another couple who were Jason and Laurie Ehrhart’s best friends. Jason Ehrhart regularly treated the couple and their children to dinners out and at least two, all-expense paid vacations to Disney World in Florida, purchased two automobiles for the family, and paid for the wife’s dental work.
To conceal his embezzlements, Jason Ehrhart submitted eight false annual accountings to the VA in which he falsely claimed he spent $402,408 on the veteran’s behalf between October 2006 and October 2015. The itemized expenditures in the accountings were grossly inflated. For example, Jason Ehrhart claimed he paid the mortgage on the veteran’s residence ($1,631 per month) plus the veteran’s share of the mortgage on his mother’s residence ($881) after she died in May 2011. However, the lenders against both properties obtained judgments and they were eventually foreclosed and sold.
Jason Ehrhart also falsely claimed in the annual accountings that he spent thousands on miscellaneous expenditures for the veteran, including storage unit rentals, vehicle maintenance bills, state and local taxes, life and auto insurance, and credit card bills. However, in 2016 the veteran’s specially equipped wheelchair van, for which Jason Ehrhart claimed he spent approximately $32,395 for vehicle maintenance, was found broken down and abandoned along a Perry County roadside.
The veteran died at the Lebanon VA Hospital on July 30, 2018.
The Department of Veteran Affairs, the Office of Inspector General, the Pennsylvania State Police, and the Social Security Administration’s Office of Inspector General investigated the case. Assistant United States Attorney Kim Douglas Daniel prosecuted the case.
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Marysville Woman Guilty of Distribution of A Controlled Substance and False Statements in Health Care MattersRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Belinda Dietrich, age 62, of Marysville, Pennsylvania, pleaded guilty on April 15, 2019, before U.S. District Court Judge Sylvia H. Rambo to one count of unlawful distribution of a controlled substance and one count of false statements in health care matters.
According to United States Attorney David J. Freed, Dietrich, a former receptionist for a solo dental practitioner in Harrisburg, admitted to forging the signature of her employer on a blank prescription form on February 13, 2017, for oxycodone pills for her mother, a Medicare beneficiary, who was not a patient of the dentist. Dietrich then had the prescription filled at a Harrisburg area pharmacy and received 24 oxycodone pills, who then converted the drugs to her own use. The pharmacy billed the cost of the oxycodone pills to Medicare, which paid the claim.
The guilty plea proceeding revealed that Dietrich’s forgeries were not limited to just one prescription. The government informed the court that between February 17, 2016 and August 2017, Dietrich forged 164 prescriptions for oxycodone and hydrocodone for herself, her family and her friends, who then filled the prescriptions at local pharmacies and shared the controlled substances among themselves. All together, more than 5,022 oxycodone and hydrocodone pill were obtained in this manner.
Judge Rambo ordered a presentence report to be prepared pending sentencing, which will be scheduled at a later date.
The case was investigated by the Harrisburg Offices of the Drug Enforcement Administration, Diversion Division and the Office of Inspector General (OIG) for the U.S. Department of Health and Human Services. Assistant U.S. Attorney Kim Douglas Daniel is prosecuting the case.
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 distribution of a controlled substance is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $1 million fine. The maximum penalty for false statements in health care matters is five years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 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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U.S. Attorney and IRS Warn Potential Tax Cheats to Timely File Accurate and Complete Tax ReturnsRead the Press Release
HARRISBURG - With the deadline for filing income tax returns rapidly approaching, the U.S. Attorney’s Office for the Middle District of Pennsylvania, and the Philadelphia Field Office, IRS Criminal Investigation Division, jointly announced a warning to those who are thinking about breaking the law by committing tax crimes including listing recent tax fraud prosecutions and sentences.
“Individuals who fail to file tax returns in a timely manner are taking advantage of the honest taxpayers who finance the government’s operations, and subject themselves to criminal prosecution,” said U.S. Attorney David J. Freed. “We will continue to pursue those who fail to meet the obligations of paying their fair share.”
"As we approach the end of filing season, taxpayers are reminded that preparing and filing false tax returns will result in extremely negative consequences,” said Guy Ficco, Special Agent in Charge of the Philadelphia Field Office. “Whether you prepare your own tax return or utilize the services of a tax return preparer, remember, you the taxpayer are ultimately responsible for the accuracy of your tax return.”
Over the last year, the U.S. Attorney’s Office has prosecuted and convicted numerous individuals for filing false federal tax returns and committing tax evasion. Defendants have received substantial sentences for tax fraud, ranging from several years in prison to home confinement. Restitution is mandatory and often includes substantial interest and penalties. For example, the following individuals were charged and/or sentenced for tax fraud recently:
FILING FALSE TAX RETURNS AND TAX EVASION
- Jeremy Baney, age 48, an inmate at SCI Smithfield, Huntingdon, Pennsylvania, pleaded guilty on May 2, 2018, to aiding and assisting in making false statements to the IRS. Baney admitted to being involved in a prison tax scheme from November 17, 2009 through February 25, 2012. Baney obtained names and social security numbers of inmates to file false tax returns or would send that information to a former inmate who would then prepare and file the fraudulent 1040EZ tax returns with fictitious wages and holdings in order to get a tax refund. The government is alleging that Baney attempted to receive tax refunds totaling $236,407, to which he was not entitled to receive. Baney is awaiting sentencing.
- Atef Hussein, age 48, of Hagerstown, Maryland, former owner/operator of the Fairground Diner in Carlisle, Pennsylvania, was sentenced on May 30, 2018, to one year and one day imprisonment and ordered to pay restitution in the amount of $139,293, for income tax evasion. Hussein understated income and taxes due, resulting in false income tax returns for tax years 2011 through 2015, causing a tax loss of approximately $139,293.
- Hiteshkumar Patel, age 52, of South Abington Township, Pennsylvania, was sentenced on August 9, 2018, to serve 234 months’ imprisonment and ordered to pay restitution in the amount of $896,112, for conspiracy to commit wire and mail fraud, as well as aggravated identity theft in November 2017. The investigation revealed that beginning in or about August 2015 through May 2016, Patel was involved in a multi-faceted international conspiracy and devised a scheme to defraud that included individuals who falsely represented themselves as Internal Revenue Service (IRS) agents, as well as individuals associated with an illegitimate online loan business. Individuals who falsely claimed to represent the Internal Revenue Service (IRS) contacted unsuspecting victims throughout the United States. The victims were told that they had to immediately make a monetary payment in order to satisfy outstanding IRS tax debt and/or IRS penalty fees. Victims were told that there would be severe consequences if they did not immediately comply, such as federal agents knocking on their door, notification to employers, garnishment of wages, and even arrest. Victims of the online loan fraud scheme were instructed that in order to receive the proceeds of their online loan application, they had to first make monetary payments associated with the processing of the application, such as fees for expediting the loan and insurance. Some victims of the loan fraud scheme were also told that outstanding IRS debt had to be satisfied before their loan application could be processed. All of the victims were instructed to remit monetary payments to a number of different individuals via the U.S. Mail, Western Union, MoneyGram, and/or RIA (Walmart to Walmart). The monetary payments were received by Patel, or by members of the unlawful telemarketing organization and unindicted co-conspirators. The investigation identified 634 individuals directly tied to Patel’s criminal conduct from across the country. The victims collectively sustained a loss of nearly $900,000.
- Diane M. Fabian, age 67, of Middletown, Pennsylvania, pleaded guilty to tax evasion charges on August 14, 2018. Fabian admitted that from 2011 through 2015, she filed tax returns that understated her income resulting in a total tax due and owing to the United States of $45,100. Fabian is awaiting sentencing.
- James W. Pilsner, age 60, of Harrisburg, Pennsylvania, the former Vice President of Rite Aid, pleaded guilty on October 1, 2018, to vendor kick-back and tax evasion charges. In March 2014, Pilsner filed an income tax return with the IRS that did not report his receipt of $411,500 in kick-back money during 2013, thereby avoiding approximately $157,648, in federal income taxes. Pilsner paid $300,000 towards his tax restitution obligation for the period 2013-2017 of approximately $592,000, and agreed to pay the balance at sentencing.
- Al T. Hughes, age 60, of Scranton, Pennsylvania, was charged in a superseding indictment on January 30, 2018, and pleaded guilty on February 7, 2019, to tax evasion. Hughes admitted to diverting approximately $892,000 in corporate receipts to his personal benefit, and failed to report the diverted receipts as income on his federal tax returns. The resulting tax loss to the United States is approximately $231,000. Hughes also admitted that he began diverting corporate receipts in 2009 and continued through 2014, and that he cashed hundreds of customer checks, intended for payment of funeral home services, at various financial institutions, including a check cashing service in Scranton. Hughes diverted corporate receipts from four area funeral homes, including the Thomas J. Hughes Funeral Home, the Eagan-Hughes Funeral Home, the McGoff-Hughes Funeral Home, and the Davies & Jones Funeral Chapel. Sentencing is currently scheduled for June 7, 2019.
- James Famularo, age 61, of Swiftwater, Pennsylvania, Famularo was sentenced on April 2, 2019, to six months’ imprisonment to be followed by six months home detention and ordered to pay restitution to the IRS of $196,119, for income tax evasion spanning tax years 2012 through 2015. Famularo failed to report a total of $646,663.40 in income between tax years 2012 and 2015, and filed false Form 1040 Individual Income Tax Returns for each of tax years 2012, 2013, 2014 and 2015 resulting in a loss of $196,119 to the IRS.
STOLEN IDENTITY REFUND FRAUD
In addition to prosecuting tax evaders and fraudulent tax return preparers, the IRS and the U.S. Attorney’s Office are continuing to investigate and prosecute individuals who steal the identities of taxpayers and file fraudulent tax returns.
- Julio Polanco Suarez, age 41, of Allentown, Pennsylvania, was charged on April 10, 2018, with conspiring to defraud the government between March 1, 2009 – September 20, 2016; theft of government money; and aggravated identity theft on September 20, 2016, in Luzerne County. The indictment alleged that Suarez’s coconspirators stole individuals’ identities, used them to prepare and file false tax returns, and obtained the refund checks issued by the U.S. Treasury pursuant to those false tax returns. Suarez took possession of the refund checks, forged names and social security numbers on them, and cashed them at check cashing businesses in the Middle District of Pennsylvania. Suarez and his coconspirators are charged with cashing $522,613.80 in fraudulently obtained Treasury checks, and attempting to cash an additional $41,401.57 worth of checks. Suarez has signed a plea agreement and is awaiting his plea hearing.
Federal penalties for each count of conviction of tax crimes range from a maximum of one year in prison and a $100,000 fine for failure to file a tax return, false withholding exemptions, and delivering or disclosing false tax documents, to a maximum of 10 years in prison and a $250,000 fine for conspiracy to defraud with respect to false refund claims. Other penalties include a mandatory term of two years in prison and a $250,000 fine for aggravated identity theft charges, three years in prison and a $250,000 fine for obstructing or impeding an investigation and filing or preparing a false tax return, and a maximum of five years in prison and a $250,000 fine for tax evasion, failure to pay taxes, conspiracy to commit a tax offense or conspiracy to defraud.
TAX SCAM WARNING
The U.S. Attorney’s Office and the IRS remind tax payers to exercise caution during tax season to protect themselves against tax schemes ranging from identity theft to return preparer fraud. Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice to shutdown scams and to prosecute the criminals behind them. The IRS would like to warn taxpayers of a quickly growing scam involving a phone scam whereby criminals fake calls from the Taxpayer Advocate Service (TAS), an independent organization within the IRS.
Similar to other IRS impersonation scams, thieves make unsolicited phone calls to their intended victims fraudulently claiming to be from the IRS. In this most recent scam variation, callers “spoof” the telephone number of the IRS Taxpayer Advocate Service office in Houston or Brooklyn. Calls may be ‘robo-calls’ that request a call back. Once the taxpayer returns the call, the con artist requests personal information, including Social Security number or individual taxpayer identification number (ITIN).
TAS can help protect your taxpayer rights. TAS can help if you need assistance resolving an IRS problem, if your problem is causing financial difficulty, or if you believe an IRS system or procedure isn’t working as it should. TAS does not initiate calls to taxpayers “out of the blue.” Typically, a taxpayer would contact TAS for help first, and only then would TAS reach out to the taxpayer.
In other variations of the IRS impersonation phone scam, fraudsters demand immediate payment of taxes by a prepaid debit card or wire transfer. The callers are often hostile and abusive. Alternately, scammers may tell would-be victims that they are entitled to a large refund but must first provide personal information. Other characteristics of these scams include:
- Scammers use fake names and IRS badge numbers to identify themselves.
- Scammers may know the last four digits of the taxpayer’s Social Security number.
- Scammers spoof caller ID to make the phone number appear as if the IRS or another local law enforcement agency is calling.
- Scammers may send bogus IRS emails to victims to support their bogus calls.
- Victims hear background noise of other calls to mimic a call site.
- After threatening victims with jail time or with, driver’s license or other professional license revocation, scammers hang up. Others soon call back pretending to be from local law enforcement agencies or the Department of Motor Vehicles, and caller ID again supports their claim.
Here are some things the scammers often do, but the IRS will not do. Taxpayers should remember that any one of these is a tell-tale sign of a scam.
The IRS will never:
- Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes.
- Threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for not paying.
- Demand that taxes be paid without giving taxpayers the opportunity to question or appeal the amount owed.
- Ask for credit or debit card numbers over the phone.
- Call about an unexpected refund.
For taxpayers who don’t owe taxes or don’t think they do:
- Please report IRS or Treasury-related fraudulent calls to [email protected] (Subject: IRS Phone Scam).
- Do not give out any information. Hang up immediately. The longer the con artist is engaged; the more opportunity he/she believes exists, potentially prompting more calls.
- Contact TIGTA to report the call. Use their IRS Impersonation Scam Reporting web page. Alternatively, call 800-366-4484.
- Report it to the Federal Trade Commission. Use the “FTC Complaint Assistant” on FTC.gov. Please add "IRS Telephone Scam" in the notes.
For those who owe taxes or think they do:
- Call the IRS at 800-829-1040. IRS workers can help.
- View tax account online. Taxpayers can see their past 24 months of payment history, payoff amount and balance of each tax year owed.
Stay alert to scams that use the IRS or other legitimate companies and agencies as a lure. Tax scams can happen any time of year, not just at tax time. For more information visit Tax Scams and Consumer Alerts on IRS.gov.
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East Stroudsburg Man Sentenced to 46 Months’ in Prison for Drug TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on April 11, 2019, United States District Court Judge A. Richard Caputo sentenced Warren Williams, age 25, of East Stroudsburg, Pennsylvania, to 46 months’ imprisonment for drug trafficking.
According to United States Attorney David J. Freed, Williams distributed over 100 grams of heroin (100 grams of heroin equates to approximately 4,000 individual doses) over a five-month period starting in January 2016, in Monroe County, Pennsylvania.
The case was investigated by the Federal Bureau of Investigation, the Stroud Area Regional Police Department, and the Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni.
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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Delaware County Attorney Indicted for Bank Fraud and Aggravated Identity TheftRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dory L. Sater, age 44, of Drexel Hill, Pennsylvania, was indicted on April 2, 2019, by a federal grand jury for attempted bank fraud and aggravated identity theft charges. The indictment was unsealed today following Sater’s arrest and initial appearance.
According to United States Attorney David J. Freed, the indictment alleges that from August 3, 2017 and continuing to on or about March 21, 2018, in Luzerne County, Sater executed a scheme to defraud Fidelity Bank by filing a fraudulent satisfaction piece for a $50,000 mortgage. The indictment also alleges that in doing so, Sater used another person’s means of identification.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Phillip J. Caraballo 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 under federal law for the most serious 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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