Middle District of Pennsylvania
Press releases recorded for this federal judicial district.
Plymouth Man Sentenced to 45 Months’ Imprisonment for Illegally Possessing A Firearm as A Convicted FelonRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on April 18, 2018, United States District Court Judge Robert D. Mariani sentenced Donald Korus, age 40, of Plymouth, Pennsylvania, to 45 months’ imprisonment for illegally possessing a firearm as a convicted felon.
According to United States Attorney David J. Freed, Korus unlawfully possessed a stolen handgun during an altercation outside his Plymouth home on October 2, 2015. Korus pointed the gun at two victims, who were outside Korus’s home to repossess a vehicle, and threatened them. In the ensuing struggle, the gun discharged, firing a single shot into the floor of the vehicle. Korus intentionally gave false testimony during an evidentiary hearing, resulting in additional jail time.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Plymouth Borough Police Department. Assistant United States Attorney Sean A. Camoni 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. Attorney General Jeff Sessions 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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Luzerne County Woman Sentenced to Prison for Participating in Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that Brianna Rattigan, age 25, of Wilkes-Barre, Pennsylvania, was sentenced on April 18, 2018, to serve one year in prison by Senior U.S. District Court Judge James M. Munley, for her role in a heroin trafficking conspiracy that operated in Luzerne County during February through November 2014.
According to United States Attorney David J. Freed, Rattigan previously pleaded guilty to conspiracy to possess with intent to distribute more than 100 grams of heroin. Rattigan admitted to allowing her sister, Megan Fox, to store between 100 and 400 grams of heroin in Rattigan’s residence. That quantity of heroin is approximately equivalent to between 4,000 and 16,000 retail bags of heroin.
Megan Fox previously pleaded guilty to running the heroin trafficking operation while the leader of the drug ring, Desmond Mercer, was in prison. Fox was sentenced to 30 months in prison. Mercer was sentenced to 14 years in prison.
Shaliek Stroman and Shaquan Murphy, two key associates of Mercer, were each sentenced to more than 12 years in prison for their roles in the conspiracy. Another member of the drug ring, Antuan Jamison, was sentenced to five years in prison.
Rattigan was indicted by a federal grand jury in February 2016, as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Luzerne County District Attorney’s Office, and Kingston Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
Judge Munley also ordered Rattigan to serve three years on supervised release following her prison sentence.
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. Attorney General Jeff Sessions 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 Pleads Guilty to Heroin TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Patrick Hynes, age 21, of Tobyhanna, Pennsylvania, pleaded guilty on April 17, 2018, before U.S. District Court Judge A. Richard Caputo to conspiracy to distribute heroin and cocaine.
According to United States Attorney David J. Freed, Hynes admitted to participating in a conspiracy to distribute between 40 and 60 grams of heroin (which is equivalent to 1,600 to 2,400 individual doses of heroin), as well as additional quantities of cocaine, in the Monroe County area between May and July 2015. Davis was one of eleven individuals indicted by a grand jury in July 2015, and charged with conspiring to distribute heroin and cocaine in the Monroe County area.
Judge Caputo ordered a presentence report to be completed. Sentencing will be scheduled at a later date.
The investigation was conducted by the Drug Enforcement Administration (DEA) and the Pocono Mountain Regional Police Department. 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. Attorney General Jeff Sessions 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.
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 up to twenty years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wilkes-Barre Man Sentenced to 6 Months’ Imprisonment for Stealing and Depositing Checks from Mail ReceptaclesRead the Press Release
WILKES-BARRE – The United States Attorney’s Office for the Middle District of Pennsylvania announced that today United States District Court Judge A. Richard Caputo sentenced Michael Mejia, age 21, who resided in Wilkes-Barre, Pennsylvania, to a time-served sentence of approximately six months of imprisonment and two years of supervised release.
According to United States Attorney David J. Freed, from approximately May 11, 2017 through August 23, 2017, Mejia conspired with others to steal checks from mail receptacles throughout Luzerne County, deposit the checks into accounts under their control, and withdraw the funds in cash. As part of the sentence, Judge Caputo also ordered Mejia to pay $16,310.91 to the victims of his crimes.
The investigation was conducted by United States Postal Investigators. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Memphis Securities Broker-Dealer Indicted for Embezzling $5.7 Million from Employee Pension Benefit PlanRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that John Sherman Jumper, age 52, of Memphis, Tennessee was indicted on April 12, 2018, by a federal grand jury for embezzling $5.7 million from the pension benefit plan for employees of Snowshoe Refractories, a fire brick manufacturer located in Clarence, Centre County, Pennsylvania.
According to United States Attorney David J. Freed, the indictment alleges that Jumper, a securities broker based in Memphis, Tennessee, forged signatures on fraudulent documents that purportedly authorized him to transfer funds from the pension plan on three separate occasions between March 2015 through April 2016. The indictment also alleges that Jumper used the embezzled funds to make unauthorized loans and investments for the purchase of a tubing plant in Arkansas and three other business, to pay off $1.2 million of his personal loans, and to cover his personal legal fees. The indictment further alleges that Jumper received a personal interest in the businesses purchased with the embezzled pension funds, and his securities company, Alluvion Securities in Memphis, received over $1 million in fees from the sale of the Arkansas tubing plant.
The indictment alleges that the Snow Shoe Refractories Employee Pension Plan for Hourly Employees included about 129 active and retired employees. At the time the alleged $5.7 million embezzlement began, the pension plan assets were worth approximately $9.8 million.
The indictment charges Jumper with four counts of wire fraud, three counts of embezzlement from an employee pension benefit plan, and five counts of false statements and concealment of facts in pension benefit plan records.
The case was investigated by the Federal Bureau of Investigation, with the assistance of the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), the Financial Industry Regulatory Authority (FINRA), and the United States Securities and Exchange Commission. Assistant U.S. Attorney George J. Rocktashel 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 65 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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Local Cemetery Owners Indicted for Defrauding 200 Customers of $500,000 in Pre-Paid FeesRead the Press Release
HARRISBURG - The United States Attorney's Office for the Middle District of Pennsylvania announced that Theodore Martin, age 54, and his wife, Arminda Martin, age 47, formerly of York County, Pennsylvania, were indicted by a federal grand jury for mail fraud and conspiracy to commit mail fraud.
According to U.S. Attorney David J. Freed, between 2003 and 2016, the Martins owned and operated Suburban Memorial Gardens Cemetery in Dover, Pennsylvania. As owners and operators of the cemetery business, the Martins sold burial services, including burial plots, vaults, caskets, and grave markers. The indictment alleges that from 2010 to on or about 2016, the Martins defrauded at least 200 of their customers of Suburban Memorial Gardens Cemetery out of approximately $500,000. Instead of applying the customers’ monies to the prepaid cemetery services and products contracted for, the Martins embezzled the money for their own personal gain including for gambling.
The investigation was conducted by the United States Department of Veterans Affairs Office of Inspector General, Northern York County Police Department and the Federal Bureau of Investigation, and is assigned to Assistant U.S. Attorney Joseph J. Terz.
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 is 20 years’ of imprisonment on each count, 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.
“Millions of individuals file their federal income tax returns in a timely and accurate manner but unfortunately, there are some who choose not to pay their fair share,” said United States Attorney David J. Freed. “These individuals are taking advantage of the honest taxpayers who finance the government’s operations and subject themselves to criminal prosecution.”
“As the 2018 tax season draws to a close, everyone is reminded of their obligation to file tax returns that accurately reflect all of their income and expenses” said Guy Ficco, Special Agent in Charge of the Philadelphia Field Office. "The Special Agents of IRS Criminal Investigation will continue to pursue the prosecution of those who willfully and intentionally violate their known legal duty of filing and paying their fair share of taxes."
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
- Donna Marie Wozniak, age 57, of New Freedom, Pennsylvania, pled guilty on August 14, 2017, to a two-count criminal information charging her with embezzlement in connection with healthcare and tax evasion. Wozniak was the business manager for Susquehanna Valley Surgery Center (SVSC), Harrisburg, Pennsylvania from 2000 through 2014. As part of Wozniak’s job duties, she received invoices form vendors of SVSC that needed to be paid from SVSC’s general operating account. Upon receipt of these invoices, Wozniak would then review the invoices to decide when and how much each vendor would be paid. Wozniak obtained blank checks ostensibly for payment to vendors. During a forensic audit of SVSC's financial records, it was discovered that Wozniak made a portion of the signed blank SVSC checks payable to herself and that these checks were cleared through SVSC's M&T Bank account. Wozniak cashed or deposited a total of $4.3 million utilizing multiple bank accounts she maintained. In order to conceal her theft, Wozniak created false invoices from legitimate SVSC vendors. Wozniak would then falsify entries into the QuickBooks accounting software maintained by SVSC, showing the checks and payments were being made to the vendors. Wozniak admitted to the theft of SVSC funds and was terminated from SVSC in November of 2014. Wozniak failed to report the embezzled income on her Federal Income Tax Returns for a total tax loss of $1,312,000. Wozniak was sentenced to 71 months’ imprisonment and ordered to pay $5,587,026.13 in restitution.
- Richard J. Morgan, age 54, of Shavertown, Pennsylvania, pled guilty on July 7, 2017, for committing bank fraud and interfering with the administration of the Internal Revenue laws. Morgan owned and operated Wilkes-Barre Bookkeeping LLC, a Shavertown, Pennsylvania-based business that provided payroll services to its clients. Local businesses contracted Morgan to pay employee payroll and salary expenses, to file IRS Form 941 Employer Quarterly Federal Tax Returns, and to remit employment tax liabilities to federal, state and local taxation authorities. For three of his clients, Morgan failed to file the IRS Forms 941 and remit the employment taxes to the appropriate authorities, instead embezzling the funds for his own personal use. Between March 2010 and October 2016, Morgan embezzled $376,224.85 from those clients, all while lying to them about his activities. Morgan also served as a Treasurer for a non-profit corporation and was tasked with selling its assets and winding up its operations when it closed in February 2010. Instead, after paying the non-profit corporation’s outstanding liabilities, Morgan embezzled the remaining residual sales proceeds of $68,172. Morgan was sentenced on February 13, 2018, to 38 months’ imprisonment and was ordered to pay $494,618.85 in restitution to his victims and the IRS.
- Nicholas A. Long, age 30, of Mechanicsburg, Pennsylvania, pled guilty on October 4, 2017, to an information charging him with the willful failure to pay federal payroll taxes owed by his business, Harrisburg Commercial Interiors, LLC during 2013. An Internal Revenue Service (IRS) investigation revealed that Long, through his solely owned commercial drywall business, Harrisburg Commercial Interior, LLC (HCI), willfully did not pay $216,304 in payroll taxes during 2013 and 2014. The IRS investigation began when several HCI employees contacted the IRS because they did not receive their 2013 income tax refunds. As the owner of HCI, Long exercised primary control over the financial affairs of the business, was solely responsible for issuance of all paychecks, and had sole signature authority on HCI's business bank account. Although he issued payroll checks totaling $730,788 in gross wages during 2013 and 2014, Long did not file the requisite Employer's Quarterly and Annual Federal Tax Returns, Forms and 940, with the IRS, nor pay over the $160,399 he withheld from his employees’ pay checks to the government. Long was sentenced on March 9, 2018, to one year and one day imprisonment and ordered to make full restitution in the amount of $216,304.
- Michael Powers, age 53, of New Cumberland, Pennsylvania, who owns and operates Powers Auto Repair in New Cumberland, pled guilty on September 11, 2017, to understating his true income by $238,381 on his 2010 income tax return. The tax owed on that unreported income amounted to $42,774. Under the terms of his plea agreement, Powers will make restitution to the Internal Revenue Service (IRS) in that amount plus another $26,198 for unpaid taxes owed on unreported income of $208,979 for tax year 2012. Thus, the total loss to the IRS as a result of Powers’ underreporting of income was $68,972. Powers was sentenced on March 12, 2018, to one year probation and home confinement and ordered to pay $68,972 in restitution.
- Sopheak Kim, age 68, of Harrisburg, Pennsylvania, pled guilty on March 28, 2018, to willful failure to collect or pay employment tax and corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue Service. Kim owned and operated Trojan Services, Inc., a Harrisburg-based company which contracted to provide labor to local companies. From 2010 through 2013, Kim failed to maintain business records relating to the operation of Trojan Services, Inc., to include records relating to employees, payroll and tax withholdings. The total tax loss alleged is approximately $250,110. Kim is awaiting sentencing.
- Atef Hussein, age 48, of Hagerstown, Maryland, pled guilty on October 30, 2017, to income tax evasion. Hussein, former owner/operator of the Fairground Diner in Carlisle, Pennsylvania, understated income and taxes due, resulting in false income tax returns for tax years 2012 through 2015. The tax loss for that period totaled $122,003. Hussein is scheduled to be sentenced on May 30, 2018.
- Geraldo Ramos, age 44, of Harrisburg, Pennsylvania, pled guilty on November 13, 2017, to conspiracy to submit false claims and submitting false claims against the United States regarding income tax refunds. Between 2010 and 2014, Ramos acted as a tax return preparer and filed numerous false and fraudulent tax returns for family and friends claiming $58,659 in refunds they were not entitled to receive. As a result, the IRS paid the conspirators $52,711, which was shared with Ramos. The fraudulent tax returns included misrepresenting Schedule C income, listing fictitious dependents and manipulating filing status. Ramos is scheduled to be sentenced on April 24, 2018.
- Donald Royce, age 41, of Scranton, Pennsylvania, was indicted on May 16, 2017, for tax preparation fraud charges. Royce was a tax preparer in Scranton who defrauded a number of local residents in 2014. The indictment alleges that Royce prepared fraudulent tax returns for multiple taxpayers causing more than $250,000 in losses. Royce gave the taxpayers a client copy of their tax return, then made material fraudulent changes to the client copy, and submitted the false return to the Internal Revenue Service (IRS) for his financial benefit. The indictment further alleges that Royce took clients’ IRS payment checks and deposited them directly in to his own account without ever remitting the amount to the IRS, all without the taxpayers’ knowledge. Royce is awaiting trial.
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 a major effort to investigate and prosecute individuals who steal the identities of taxpayers and file fraudulent tax returns.
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 erroneous tax refunds being deposited into their bank accounts. Criminals steal client data from tax professionals and filing fraudulent tax returns, these criminals use the taxpayers' real bank accounts for the deposit. Thieves are then using various tactics to reclaim the refund from the taxpayers, and their versions of the scam may continue to evolve. In one version of the scam, criminals posing as debt collection agency officials acting on behalf of the IRS contacted the taxpayers to say a refund was deposited in error, and they asked the taxpayers to forward the money to their collection agency. In another version, the taxpayer who received the erroneous refund gets an automated call with a recorded voice saying he is from the IRS and threatens the taxpayer with criminal fraud charges, an arrest warrant and a “blacklisting” of their Social Security Number. The recorded voice gives the taxpayer a case number and a telephone number to call to return the refund.
The IRS urges taxpayers to follow established procedures for returning an erroneous refund to the agency. The IRS also encourages taxpayers to discuss the issue with their financial institutions because there may be a need to close bank accounts. Taxpayers receiving erroneous refunds also should contact their tax preparers immediately. Here are the official ways to return an erroneous refund to the IRS. If the erroneous refund was a direct deposit:
- Contact the Automated Clearing House (ACH) department of the bank/financial institution where the direct deposit was received and have them return the refund to the IRS.
- Call the IRS toll-free at 800-829-1040 (individual) or 800-829-4933 (business) to explain why the direct deposit is being returned.
If the erroneous refund was a paper check and hasn't been cashed:
- Write "Void" in the endorsement section on the back of the check.
- Submit the check immediately to the appropriate IRS location listed below.The location is based on the city (possibly abbreviated) on the bottom text line in front of the words TAX REFUND on your refund check.
- Don't staple, bend, or paper clip the check.
- Include a note stating, "Return of erroneous refund check because (and give a brief explanation of the reason for returning the refund check)."
The erroneous refund was a paper check and you have cashed it:
- Submit a personal check, money order, etc., immediately to the appropriate IRS location listed below.
- If you no longer have access to a copy of the check, call the IRS toll-free at 800-829-1040 (individual) or 800-829-4933 (business) (see telephone and local assistance for hours of operation) and explain to the IRS assistor that you need information to repay a cashed refund check.
- Write on the check/money order: Payment of Erroneous Refund, the tax period for which the refund was issued, and your taxpayer identification number (social security number, employer identification number, or individual taxpayer identification number).
- Include a brief explanation of the reason for returning the refund.
- Repaying an erroneous refund in this manner may result in interest due the IRS.
For your paper refund check, here are the IRS mailing addresses to use based on the city (possibly abbreviated). These cities are located on the check’s bottom text line in front of the words TAX REFUND:
- ANDOVER – IRS, 310 Lowell Street, Andover, MA 01810
- ATLANTA – IRS, 4800 Buford Highway, Chamblee, GA 30341
- AUSTIN – IRS, 3651 South Interregional Highway 35, Austin, TX 78741
- BRKHAVN – IRS, 5000 Corporate Ct., Holtsville, NY 11742
- CNCNATI – IRS, 201 West Rivercenter Blvd., Covington, KY 41011
- FRESNO – IRS, 5045 East Butler Avenue, Fresno, CA 93727
- KANS CY – IRS, 333 W. Pershing Road, Kansas City, MO 64108-4302
- MEMPHIS – IRS, 5333 Getwell Road, Memphis, TN 38118
- OGDEN – IRS, 1973 Rulon White Blvd., Ogden, UT 84201
- PHILA – IRS, 2970 Market St., Philadelphia, PA 19104
Education is the best way to avoid these common schemes. To learn more about other scams and for help with recognizing and avoiding abusive tax schemes, the IRS offers educational material at www.irs.gov.
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Lycoming County Company Fined $250,000 for Committing an OSHA Violation That Resulted in A Worker’s DeathRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Susquehanna Supply Company, Inc., of Williamsport, Pennsylvania, was sentenced on April 10, 2018, by U.S. Magistrate Judge William I. Arbuckle to pay a fine of $250,000 for willfully committing an OSHA violation that resulted in an employee’s death.
According to United States Attorney David J. Freed, the sentence was part of a plea agreement in which Susquehanna Supply Company acknowledged that it was guilty of willfully violating an OSHA regulation during its work on a bridge rehabilitation project near Eyers Grove in Columbia County in the summer of 2015. The rehabilitation project involved digging large trenches at each end of the bridge. OSHA regulations require that an employee working in a trench must be protected from cave-ins by an adequate protective system, such as sloped walls. Cave-ins represent the greatest danger during a trenching operation and are more likely than other trenching-related accidents to result in worker fatalities.
On July 7, 2015, a Susquehanna Supply Company employee entered a trench at one end of the bridge to remove additional soil. The trench was approximately twelve feet deep. Although Susquehanna Supply Company was aware of the applicable OSHA regulations, the company had not implemented a protective system in the trench. While the employee was working, one of the trench’s vertical dirt walls collapsed, burying the employee up to his chest and crushing him against the bridge’s concrete abutment. The collapse caused massive trauma to the employee’s upper body and killed him almost instantly.
The case was investigated by the Occupational Safety and Health Administration, Wilkes-Barre, and was prosecuted by Assistant U.S. Attorney Carlo D. Marchioli.
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Justice Department Announces Nationwide Initiative to Combat Sexual Harassment in HousingRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the Department of Justice recognized the 50th Anniversary of the Fair Housing Act as Attorney General Jeff Sessions announced the nationwide rollout of an initiative aimed at increasing awareness and reporting of sexual harassment in housing. The initiative includes an interagency task force between the Department of Housing and Urban Development (HUD) and the Justice Department to combat sexual harassment in housing, an outreach toolkit, and a public awareness campaign. This three-pronged approach will strengthen the Department’s efforts to combat sexual harassment in housing.
“Sexual harassment in housing is illegal, immoral, and unacceptable," said Attorney General Sessions. “It is all too common today, as too many landlords, managers, and their employees attempt to prey on vulnerable women. We will not hesitate to pursue these predators and enforce the law. In October, I ordered a new initiative to bring more of these cases, and we have already won relief for 15 victims. Today we announce three new steps to make the initiative more effective and to win more cases. I want to thank the dedicated and committed professionals in our Civil Rights Division and our partners in the Department of Housing and Urban Development for their hard work in this effort. We will continue to aggressively pursue harassers, because everyone has a right to be safe in their home.”
“All discrimination stains the very fabric of our nation, but HUD is especially focused on protecting the right of everyone to feel safe and secure in their homes, free from unwanted sexual harassment,” said Secretary Ben Carson. “No person should have to tolerate unwanted sexual advances in order to keep a roof over his or her head. Part of our mission at HUD is to provide safe housing and we will remain diligent in this mission to protect those we serve. I look forward to working with Attorney General Sessions and the Department of Justice as part of this task force to bring an end to this type of discrimination.”
“The United States Attorney’s Office for the Middle District of Pennsylvania stands ready to ensure that violations of the Fair Housing Act in the form of sexual harassment in public housing are addressed quickly and aggressively,” said United States Attorney David J. Freed. “The right to be secure in our homes is fundamental, and no less so for our friends and neighbors in public housing. We look forward to working with our partners at the federal, state and local level to increase public awareness of this issue, streamline the complaint process and, most important, hold violators to account.”
In October 2017, the Justice Department announced an initiative to combat sexual harassment in housing and launched pilot programs in D.C. and the Western District of Virginia. The initiative sought to increase the Department’s efforts to protect women from harassment by landlords, property managers, maintenance workers, security guards, and other employees and representatives of rental property owners. During the pilots, the Department developed and tested ways to better connect both with victims of sexual harassment in housing and with those organizations that victims may turn to first for help – including law enforcement, legal services providers, public housing authorities, sexual assault services providers, and shelters. The Department also tested certain aspects of the initiative in other jurisdictions, including New Jersey, the Central District of California, Massachusetts, Vermont, and Michigan.
The two pilot programs generated an upswing in harassment reporting to the Department from both D.C. and the Western District of Virginia. In D.C., the Department generated six leads since the October 2017 launch. In Virginia, the Department generated three leads. While the Justice Department recognizes that leads and investigations do not always lead to enforcement actions, the pilot program’s results—when extrapolated across all the U.S. Attorney’s Offices across the country—could lead to hundreds of new reports of sexual harassment in housing across the country.
Because of these promising results, the Department is rolling out three major components to the Initiative.
First, the new HUD-DOJ Task Force to Combat Sexual Harassment in Housing will drive a shared strategy between the Department and HUD for combatting sexual harassment in housing across the country. It will focus on five key areas: continued data sharing and analysis, joint development of training, evaluation of public housing complaint mechanisms, coordination of public outreach and press strategy, and review of federal policies.
Second, the outreach toolkit is designed to leverage the Justice Department’s nationwide network of U.S. Attorney’s Offices. The toolkit provides templates, guidance, and checklists based on pilot program feedback. It ultimately will amplify available enforcement resources and help victims of sexual harassment connect with the Department.
Third, the public awareness campaign has three major components: a partnership package with relevant stakeholders, launch of a social media campaign, and Public Service Announcements (PSAs) run by individual U.S. Attorney’s offices. The campaign is specifically designed to raise awareness, and make it easier for victims all over the country to find resources and report harassment.
More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of sexual harassment in housing should call the Department at 1-844-380-6178, send an e-mail to [email protected], or contact HUD at 1-800-669-9777. If you have information or questions about any other housing discrimination, you can contact the Department at 1-800-896-7743.
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Harrisburg Man Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Khiri Arter, age 25, of Harrisburg, Pennsylvania, was indicted on April 11, 2018, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the indictment alleges that Arter possessed with intent to distribute heroin, fentanyl, and crack cocaine on September 13, 2017, in Harrisburg. The indictment also alleges that Arter possessed a loaded Smith & Wesson 9mm handgun in furtherance of drug trafficking and unlawfully possessed that handgun as a previously convicted felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Police Department. Assistant U.S. Attorney Carlo D. Marchioli 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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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 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 imprisonment for life, 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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Federal Inmates at USP Canaan Charged with Assaulting Fellow InmateRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jesus Chavez, age 27 and Rudy Mendoza age 33, both federal inmates at the United States Penitentiary Canaan (“USP Canaan”), located in Waymart, Pennsylvania, were indicted on April 10, 2018, by a federal grand jury with assaulting another inmate with a dangerous weapon.
According to United States Attorney David J. Freed, the indictment alleges that Chavez and Mendoza assaulted a fellow inmate at USP Canaan on June 17, 2017. Both inmates were also charged with possessing a homemade weapon fashioned from a sharpened piece of metal, commonly known as a “shank.”
The investigation was conducted by the Federal Bureau of Investigation and officers from USP Canaan. The case is being prosecuted by Assistant United States Attorney Evan Gotlob.
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 is 15 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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Florida Man Charged with Sex TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on April 10, 2018, John Golom, age 52, of Florida, was indicted by a federal grand jury on sex trafficking charges.
According to United States Attorney David J. Freed, the indictment alleges that between 2014 and February 1, 2018, Golom trafficked two women as prostitutes through force, threat, and coercion in Florida and Monroe County, Pennsylvania.
The case was investigated by the Federal Bureau of Investigation, the Monroe County Detectives Office, Stroud Regional Police Department, and the Monroe County District Attorney’s Office. Assistant U.S. Attorney Sean A. Camoni 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 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.
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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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Wilkes-Barre Man Sentenced to Eight Years’ Imprisonment for Conspiring to Distribute Crack CocaineRead the Press Release
WILKES-BARRE – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on April 6, 2018, United States District Court Judge A. Richard Caputo sentenced Jaquan Henderson, age 28, of Wilkes-Barre, Pennsylvania, to eight years’ imprisonment and three years of supervised release, for conspiring to distribute crack cocaine.
According to United States Attorney David J. Freed, Henderson pleaded guilty to conspiring to distribute and possess with intent to distribute crack cocaine in February 2016. Henderson was charged with five other individuals in May 2016. Henderson’s sentence was impacted, in part, by his significant criminal history, which qualified him as a career offender under the advisory United States Sentencing Commission Guidelines.
The matter was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives, and by the Luzerne County Drug Task Force. Assistant United States Attorney Phillip J. Caraballo prosecuted 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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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Scranton Men Plead Guilty to Armed Robberies of Two Gas StationsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Durrell Davenport, age 27, and Amod Phillips, age 28, both of Scranton, Pennsylvania, pleaded guilty on April 9, 2018, before United States District Court Judge Malachy E. Mannion, to federal robbery charges filed in connection with the armed robbery of the EFuel gas station and food mart located on Pittston Avenue in Scranton.
According to United States Attorney David J. Freed, Davenport and Phillips admitted to the charge of brandishing firearms in furtherance of a crime of violence, filed in connection with the robbery of the EFuel gas station on June 8, 2017. Approximately $266 and several packs of cigarettes were taken in the robbery. Davenport also pleaded guilty to the charge of interference with commerce by robbery, stemming from a separate armed robbery of the Sunoco gas station and convenience store on South Main Avenue in Scranton, which occurred on June 20, 2017. Davenport stole $386 and several packs of cigarettes in that robbery. Davenport and Phillips were indicted by a grand jury in November 2017.
Judge Mannion ordered a presentence investigation be completed. Sentencing will be scheduled at a later date.
The investigation was conducted by the Scranton Police Department, the Bureau of Alcohol, Tobacco and Firearms, and the Federal Bureau of Investigation. Assistant United States 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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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 robbery charges under federal law is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. The charge of brandishing a firearm in furtherance of a crime of violence carries a mandatory minimum sentence of seven years’ imprisonment, consecutive to any other sentence. 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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New Freedom Woman Sentenced to 71 Months’ Imprisonment for Embezzling $4.3 Million from Her EmployerRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Donna Marie Wozniak, age 57, of New Freedom, Pennsylvania, was sentenced today to 71 months’ imprisonment and three years’ supervised release by United States District Court Judge John E. Jones, III, for embezzlement in connection with healthcare and tax evasion.
According to United States Attorney David J. Freed, on August 14, 2017, Wozniak pled guilty to a two-count criminal information charging her with embezzlement in connection with healthcare and tax evasion. Wozniak was the business manager for Susquehanna Valley Surgery Center (SVSC), Harrisburg, Pennsylvania from 2000 through 2014. As part of Wozniak’s job duties, she received invoices form vendors of SVSC that needed to be paid from SVSC’s general operating account. Upon receipt of these invoices, Wozniak would then review the invoices to decide when and how much each vendor would be paid. Wozniak obtained blank checks ostensibly for payment to vendors. During a forensic audit of SVSC's financial records, it was discovered that Wozniak made a portion of the signed blank SVSC checks payable to herself and that these checks were cleared through SVSC's M&T Bank account. The evidence shows that Wozniak cashed or deposited a total of $4.3 million utilizing multiple bank accounts she maintained. In order to conceal her theft, Wozniak created false invoices from legitimate SVSC vendors. Wozniak would then falsify entries into the QuickBooks accounting software maintained by SVSC, showing the checks and payments were being made to the vendors. Wozniak admitted to the theft of SVSC funds and was terminated from SVSC in November of 2014. During sentencing, Wozniak represented to the Court that her gambling addiction caused her to embezzle the funds.
“We appreciate the outstanding effort of our partners at IRS Criminal Investigation in this substantial embezzlement case,” said United States Attorney Freed. “As evidenced by Judge Jones’ sentence, there are stiff consequences for individuals who choose to commit such high dollar thefts.”
“All income is taxable, no matter what the source of the income,” said Guy Ficco, Special Agent in Charge of IRS Criminal Investigation. “Today’s sentencing should serve as a deterrent to others who might consider attempting a similar scheme in the future.”
The case was investigated by the Internal Revenue Service Criminal Investigation. Assistant United States Attorney Joseph J. Terz prosecuted the case.
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East Stroudsburg Man Sentenced to 9 Months’ Imprisonment for Stealing Deceased Mother’s Social Security BenefitsRead the Press Release
WILKES-BARRE – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on April 6, 2018, United States District Court Judge A. Richard Caputo sentenced Steven M. Caravella, age 28, who formerly resided in East Stroudsburg, Pennsylvania, to a time-served sentence of approximately nine months’ imprisonment and two years of supervised release for stealing social security benefits paid to his mother by the Social Security Administration.
According to United States Attorney David J. Freed, Caravella used a government-issued debit card to obtain the social security benefits for approximately one year after his mother’s death, and before the Social Security Administration was advised of her death. Caravella obtained approximately $7,762 in benefits between August 2012 and July 2013, as a result of the theft.
The case was investigated by the Social Security Administration’s Office of the Inspector General. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Washington D.C. Woman Pleads Guilty to Providing Contraband to InmateRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tianna Thompson, age 26, of Washington D.C., pleaded guilty on April 4, 2018, before U.S. District Court Judge James M. Munley to the charge of providing contraband to an inmate at the United States Penitentiary at Canaan.
According to United States Attorney David J. Freed, Thompson admitted to providing several small packages of marijuana to inmate Charles Elegalam, age 30, formerly of Washington D.C., on July 1, 2017, during a social visit at the United States Penitentiary at Canaan. The marijuana packages were subsequently seized from Elegalam by prison staff members. Thompson and Elegalam were indicted by a grand jury in September 2017. The charges against Elegalam are currently pending.
Judge Munley ordered a presentence report to be completed. Sentencing will be scheduled at a later date.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara 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 is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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The Estate of A Scranton Physician Agrees to Pay $625,000 to Settle False Claims Act ViolationsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the Estate of Dr. Leroy Pelicci has agreed to pay the United States $625,000 to settle False Claims Act allegations.
According to United States Attorney David J. Freed, Leroy J. Pelicci was a physician and owner of the Pelicci Pain Relief Center in Scranton, Pennsylvania until his death in March 2014. The United States alleged that Dr. Pelicci submitted numerous improper claims for payment to the Department of Labor Office of Workers’ Compensation Programs under the Federal Employees Compensation Act and the Federal Employees Health Benefits Program for trigger point injections, which were upcoded to receive a higher reimbursement amount than permitted, between June 11, 2003 and March 4, 2014. The settlement reflects the amount of loss to the Government as a result of these allegations, as well as the costs of the investigation.
The United States Postal Service Office of Inspector General (USPS OIG) Special Agent in Charge Kenneth G. Cleevely, Pittsburgh, stated, “The U.S. Postal Service pays about $3 billion per year in workers compensation costs. USPS OIG special agents, along with our law enforcement partners, conduct investigations of those individuals who choose to take advantage of the system. I want to thank the U.S. Attorney’s Office for their diligence in pursuit of this civil settlement, and for recovering what the government is due.”
Scott Rezendes, Special Agent in Charge, Office of Personnel Management Office of Inspector General (OPM OIG) said, “Today’s settlement should serve as a warning to those who would attempt to defraud the Government. The OPM OIG is committed to protecting the integrity of the Federal Employees Health Benefits Program, and we will continue to investigate and prosecute illegal billing practices that waste taxpayer dollars and increase the cost of medical care.”
This case was investigated by the Office of Personnel Management Office of Inspector General, the United States Postal Service Office of Inspector General and the United States Department of Labor Office of Inspector General. The civil settlement was handled by Assistant United States Attorney Melissa Swauger.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Lebanon Man Sentenced to 20 Years’ Imprisonment for Operating A Heroin Mill in Lebanon CountyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Leandro Nazario, age 39, currently in Adams County Correctional Complex, Gettysburg, Pennsylvania, was sentenced on April 2, 2018, to 20 years’ imprisonment and five-years supervised release by U.S. District Court Judge John E. Jones, III, for conspiring to distribute heroin and cocaine in Lebanon County.
According to United States Attorney David J. Freed, the two-year investigation by the Drug Enforcement Administration and the Lebanon County Drug Task Force culminated with the execution of search warrants at 513 Arnold Street and 443 North 6th Street, in Lebanon, Pennsylvania, on May 14, 2015. During the search at 513 Arnold Street, law enforcement agents discovered a “heroin mill” where kilograms of heroin were being processed on a weekly basis.
The investigation revealed that Julio Aviles, Sr., a previously convicted drug dealer, owned and operated the heroin mill and employed a network of sellers, packagers, brokers and testers to conduct this illegal enterprise. Nazario, formerly of Puerto Rico, was the second-in-command of the drug trafficking organization and was the foreman of the processing mill. All together 13 individuals were charged. Packagers were paid approximately $500 a week like factory workers to process and package the heroin for later distribution. The testers operated as quality assurance inspectors to ensure the heroin was of sufficient quality. At the time of the searches, law enforcement agents found over 400 grams of heroin, over 85 grams of cocaine powder, and over 71 grams of crack cocaine. A kilogram of heroin, which weighs approximately 2.2 pounds is equivalent to approximately 40,000 to 50,000 individual doses of heroin, any one of which can be fatal depending on its purity and the nature of its other ingredients. In this case the evidence established that the drug trafficking organization was mixing the heroin with Fentanyl, morphine, oxycodone and Lidocaine. Law enforcement agents estimated that this drug operation was distributing heroin, crack cocaine, and cocaine for a two-year period and during the last few months was distributing kilogram quantities of heroin, crack cocaine and cocaine powder. The value of the drugs distributed has a conservative street value of between $3 million and $5 million.
Law enforcement also located three handguns, ten rifles, six shotguns and paraphernalia consistent with a large-scale drug trafficking operation. During the search at 443 North 6th Street, law enforcement officers located additional quantities of heroin, cocaine powder, and crack cocaine along with drug packaging materials.
The individual defendants previously convicted:
- Israel Nazario was sentenced to 180 months’ imprisonment;
- Julio Aviles, Sr. is awaiting sentencing;
- Michael Millan-Miranda is awaiting sentencing.
The individual defendants who previously pleaded guilty:
- Eliezer Soto-Concepcion was sentenced to 144 months’ imprisonment;
- Suheidy Soto-Concepcion was sentenced to 120 months’ imprisonment;
- Julio Aviles, Jr. was sentenced to 28 months’ imprisonment;
- Brenda Soto was sentenced to 12 months and 1 day imprisonment;
- Geidy Arroyo was sentenced to time served and three years’ supervised release;
- Brittany Rivera is awaiting sentencing;
- Brent Moyer is awaiting sentencing;
- Carlos Nazario is awaiting sentencing.
Kengie Millan-Miranda remains a fugitive. If anyone knows the whereabouts of Kengie Millan-Miranda please contact law enforcement.
The investigation was conducted by the Drug Enforcement Administration, Lebanon County Drug Task Force, Lebanon County Detective Bureau, Lebanon City Police Department, Cornwall Borough Police Department, and assisted by the Lebanon County Probation Department. Assistant United States Attorney Daryl F. Bloom and Special Assistant United States Attorney Nichole Eisenhart, who also serves as the First Assistant District Attorney in Lebanon County, Pennsylvania, prosecuted the case.
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 was also 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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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Monroe County Man Pleads Guilty to Heroin TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Myles Davis, age 29, of Tobyhanna, Pennsylvania, pleaded guilty on April 2, 2018, before U.S. District Court Judge A. Richard Caputo to the charge of conspiracy to distribute more than 100 grams of heroin.
According to United States Attorney David J. Freed, Davis admitted to participating in a conspiracy to distribute between 100 and 400 grams of heroin (which is equivalent to 4,000 to 16,000 individual doses of heroin) in the Monroe County area between May and July 2015. Davis was one of eleven individuals indicted by a grand jury in July 2015 and charged with conspiring to distribute heroin and cocaine in the Monroe County area.
Judge Caputo ordered a presentence report to be completed. Sentencing will be scheduled at a later date.
The investigation was conducted by the Drug Enforcement Administration (DEA) and the Pocono Mountain Regional Police Department. Assistant United States 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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is up to 40 years in prison, a term of supervised release following imprisonment, and a fine. The charge also carries 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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Kutztown Man Charged with Sex Trafficking A Minor and Drug TraffickingRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Willie James Johnson, age 57, of Kutztown, Pennsylvania, was indicted on March 28, 2018, by a federal grand jury for sex trafficking of a minor and drug trafficking.
According to United States Attorney David J. Freed, the indictment alleges that from September 2014 to October 2015, Johnson trafficked a minor in York County for commercial sex acts. The indictment also alleges that between January 2013 and October 2017, Johnson distributed and possessed with the intent to distribute heroin in York County.
This matter was investigated by the Federal Bureau of Investigation and the Northern York Regional Police Department. Assistant U.S. Attorney Chelsea Schinnour 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.
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."
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law 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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United States Reaches Settlement with Cumberland County on ADA ProceduresRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced a settlement with Cumberland County under Title II of the Americans with Disabilities Act (ADA) for the County to identify an ADA Coordinator; to provide notice to those with disabilities on how to contact the ADA Coordinator; to establish an ADA grievance procedure; and to make its website more accessible to those with disabilities.
According to United States Attorney David J. Freed, the United States Attorney’s Office received a complaint from an individual with a disability that Cumberland County did not have a process by which the disabled could request accommodations or file complaints of inaccessibility, and the County did not have an ADA coordinator. After an investigation, with the County’s complete cooperation, the United States Attorney’s Office found that the complaint had merit.
Under the terms of the agreement, the County has named Holly Sherman as ADA Coordinator. The County will post on its Internet Home Page and in conspicuous locations in its public buildings notices that individuals who request accommodations and have complaints of inaccessibility should direct those issues to the ADA Coordinator. The notice must post an address, phone number, and email of the coordinator. The agreement also requires that the County establish an ADA Grievance Procedure and develop procedures to make the County’s webpages more accessible to those with disabilities.
“This agreement demonstrates Cumberland County’s commitment to ensuring that individuals with disabilities will have an equal opportunity to access and participate in the County’s government programs,” said U.S. Attorney David J. Freed. “With an ADA Coordinator, individuals with disabilities will now have a person in the County who can answer their questions, accept accommodations requests, and receive their complaints.”
This investigation was handled by Assistant United States Attorney Michael J. Butler. Those interested in finding out more about the ADA can access the ADA website at www.ada.gov.
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East Stroudsburg Man Sentenced to 27 Months’ Imprisonment for Assaulting and Fleeing from Federal Park RangersRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Judge James Munley sentenced Damari Roulhac, age 26, of East Stroudsburg, Pennsylvania, to 27 months’ imprisonment and two years of supervised release, for one count assaulting a United States Park Ranger, and one count for fleeing from United States Park Rangers. Roulhac was convicted on September 26, 2017, following a two-day jury trial before United States District Court Judge James M. Munley.
According to United States Attorney David J. Freed, the evidence presented during the trial showed that on the evening of July 1, 2016, United States Park Rangers patrolling the Delaware Water Gap National Recreation Area encountered Roulhac and ordered him to stop his vehicle. Roulhac refused to obey the Rangers’ instructions and accelerated his vehicle towards one of the Rangers, causing him to jump out of the way. When the Ranger then attempted to detain Roulhac, he accelerated again, striking the Ranger with the vehicle while fleeing the scene of the incident.
Roulhac was able to evade apprehension on July 1, 2016. However, Rangers tracked him down days later, at the Pike County Courthouse, when Roulhac was sentenced for an unrelated DUI conviction.
The case was investigated by Rangers from the National Park Service. Assistant United States Attorneys Phillip Caraballo and Evan Gotlob prosecuted the case.
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Williamsport Man Sentenced to Nine Year’s in Prison for Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Morris Smith, age 35, of Williamsport, Pennsylvania, was sentenced to nine years’ imprisonment on March 21, 2018, by United States District Court Judge Matthew W. Brann for possession with intent to distribute cocaine.
According to United States Attorney David J. Freed, Smith pled guilty to possessing more than 28 grams of cocaine base, or “crack,” along with a quantity of cocaine with the intent to distribute the narcotics in the Williamsport area. Smith was arrested in March 2016 in Williamsport following a vehicle and foot pursuit that began when Smith fled a routine traffic stop. Williamsport police recovered over 150 grams of powder cocaine and 74 grams of crack, along with a loaded 9mm handgun, from the trunk of the car Smith drove while attempting to elude police. Those quantities amount to more than 400 individual doses of crack and 900 doses of powder cocaine.
Judge Brann considered Smith’s lengthy criminal history when imposing the sentence, specifically noting two prior federal convictions for drug trafficking and escape.
The investigation was conducted the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Williamsport Bureau of Police. Assistant United States Attorney Sean A. Camoni prosecuted 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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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Williamsport Man Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Kenneth Sharif Johnson, age 27, of Williamsport, Pennsylvania, was indicted on March 22, 2018, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the indictment alleges that Johnson, a convicted felon, illegally possessed three stolen handguns on June 18, 2016 and that from January 2015 through June 2016, Johnson possessed with the intent to distribute over 28 grams of crack cocaine and a detectable amount of heroin.
The three-count indictment charges Johnson with one count each of possession of a firearm by a convicted felon and receiving stolen firearms and a separate count of possession with intent to distribute crack cocaine and heroin.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the South Williamsport Police Department. Assistant U.S. Attorney George J. Rocktashel 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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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 this offense is 40 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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Luzerne County Man Sentenced to 27 Months in Prison for Role in Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that Cleveland Linder, age 33, of Plymouth, was sentenced on March 23, 2018, by Senior U.S. District Court Judge James M. Munley to serve 27 months in prison for his role in a heroin trafficking conspiracy that operated in Luzerne County during 2014.
According to United States Attorney David J. Freed, Linder previously pleaded guilty to conspiring with others to distribute heroin. Linder admitted to being involved in the distribution of more than 60 grams and less than 80 grams of heroin, which is equivalent to between 2,500 and 3,300 retail bags of heroin.
Judge Munley also ordered Linder to serve three years on supervised release following his prison sentence.
The investigation resulted in the arrest of ten people connected to the drug ring, all of whom pleaded guilty. Desmond Mercer, the leader of the conspiracy, was sentenced to 14 years in prison. Two key associates, Shaquan Murphy and Shaliek Stroman, were each sentenced to 12 ½ years in prison. Another member of the drug ring, Antoine Jamison, received a five-year prison sentence. Omar Bell, another member of the drug ring, was recently sentenced to 52 months in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Pennsylvania State Police, and Kingston Police. Assistant U.S. Attorney Francis P. Sempa prosecuted 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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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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Hazleton Men Indicted for Trafficking Heroin and Crystal MethamphetamineRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daniel Silvestre-Ubri a/k/a Joel DeJesus-Marquez, a/k/a Mayor, age 38, and Willis De La Rosa, a/k/a Joey Reyes Arroyo, a/k/a Willie, age 32, both of Hazleton, Pennsylvania, were indicted by a federal grand jury on May 17, 2016, for drug trafficking offenses. The indictment remained under seal until both defendants were apprehended, De La Rosa in June 2016 and Silvrestre-Ubri in March 2018. Both men were detained following their initial appearances before the court.
According to United States Attorney David J. Freed, the indictment charges Silvestre-Ubri and De La Rosa with conspiring to distribute heroin and in excess of 500 grams of crystal methamphetamine from February through April 2016. The indictment also charges Silvestre-Ubri with distributing heroin and crystal methamphetamine on March 24, 2016.
The case was investigated by Homeland Security Investigations, the Pennsylvania Office of the Attorney General and the Pennsylvania State Police. Assistant United States Attorney Phillip J. Caraballo 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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The penalties under federal law for the most serious offenses are a minimum of 10 years and a maximum of 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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Pennsylvania Man Charged with Illegally Exporting Firearm Parts to IraqRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today the unsealing of an indictment charging Ross Roggio, age 49, of Stroudsburg, Monroe County, Pennsylvania, and Roggio Consulting Company, LLC, a firm with which Ross Roggio was associated, for alleged involvement in a conspiracy to illegally export firearm parts, firearm manufacturing tools, and “defense services,” including items used to manufacture M4 rifles, from the United States to Iraq, in violation of the Arms Export Control Act and the International Emergency Economic Powers Act.
According to U.S. Attorney David J. Freed, the indictment charges Ross Roggio and Roggio Consulting Company, LLC with criminal conspiracy, illegal export of goods, wire fraud, and money laundering. Pursuant to regulations of the U.S. Department of Commerce, a license is required to export certain goods and services from the United States to Iraq for reasons of regional stability and national security. Similarly, defense services and defense articles may not be exported to Iraq without a license from the U.S. Department of State.
The indictment alleges that, beginning in January of 2013 until the date of the indictment, Ross Roggio conspired to export both items and services from the United States to Iraq, without the required U.S. Commerce Department and U.S. State Department licenses. The conspirators allegedly purchased firearms parts and manufacturing tools from the United States, illegally exported the items to Iraq where the items were utilized and incorporated in the manufacture and assembly of complete firearms in a firearms manufacturing plant constructed and operated in part by Ross Roggio. It is alleged that the items illegally exported included: M4 Bolt Gas Rings MIL; Firing Pin Retainers; Rifling Combo Buttons, and “defense services.” The defense services allegedly provided by Ross Roggio and his firm include the furnishing of assistance to foreign persons in the manufacture of firearms.
In addition to the charges relating to export controls violations, the indictment also alleges that Ross Roggio and his firm committed wire fraud on at least three occasions by purchasing items from a United States company and providing said company with false information about the end-user of the items. Finally, the indictment charges Ross Roggio and his firm with 27 counts of money laundering in the form of bank transfers from Iraq to two accounts within the Middle District of Pennsylvania, in furtherance of their unlawful export conspiracy.
“The conduct alleged in this indictment directly violates laws enacted to keep our nation secure,” said United States Attorney Freed. “We commend the FBI, HSI and Department of Commerce for their outstanding efforts in this complicated international case. We will not allow anyone to put profits above our security, at home or abroad.”
“The Office of Export Enforcement vigorously pursues violators of our nation’s export control laws, which are in place to further and protect our national security and foreign policy. As in this instance, we work closely with our colleagues at the FBI and HSI and other agencies in prosecuting this case,” said Jonathan Carson, Special Agent in Charge, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office.
"U.S. export controls are in place to keep our nation's most sensitive military and defense technologies from falling into the wrong hands," said Marlon V. Miller, special agent in charge of HSI Philadelphia. "One of HSI's highest priorities is to prevent the illicit procurement and proliferation of export-controlled military and defense commodities in violation of United States law."
"As alleged, this defendant brazenly flouted U.S. arms export controls enacted in the interests of our national security, and international stability," said Michael Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "It suggests an all too familiar attitude: in the face of an illegal, but very lucrative, plan -- laws be damned."
The case is being prosecuted by Assistant U.S. Attorney Todd K. Hinkley for the Middle District of Pennsylvania, and Trial Attorneys Scott Claffee and Heather Alpino, of the National Security Division, Counterintelligence and Export Control Section.
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 705 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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Pennsylvania Man Charged with Illegally Exporting Firearm Parts to IraqRead the Press Release
An indictment was unsealed today charging Ross Roggio, 49, of Stroudsburg, Pennsylvania, and Roggio Consulting Company, LLC, a firm with which Ross Roggio was associated, for alleged involvement in a conspiracy to illegally export firearm parts, firearm manufacturing tools, and “defense services,” including items used to manufacture M4 rifles, from the United States to Iraq, in violation of the Arms Export Control Act and the International Emergency Economic Powers Act.
Assistant Attorney General for National Security John C. Demers; U.S. Attorney David J. Freed of the Middle District of Pennsylvania; Special Agent in Charge Jonathan Carson of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office; and said Special Agent in Charge Marlon V. Miller of Homeland Security Investigations Philadelphia Office made the announcement.
The indictment charges Ross Roggio and Roggio Consulting Company, LLC with criminal conspiracy, illegal export of goods, wire fraud and money laundering. Pursuant to regulations of the U.S. Department of Commerce, a license is required to export certain goods and services from the United States to Iraq for reasons of regional stability and national security. Similarly, defense services and defense articles may not be exported to Iraq without a license from the U.S. Department of State.
The indictment alleges that, beginning in January of 2013 until the date of the indictment, Ross Roggio conspired to export both items and services from the United States to Iraq, without the required U.S. Commerce Department and U.S. State Department licenses. The conspirators allegedly purchased firearms parts and manufacturing tools from the United States, illegally exported the items to Iraq where the items were utilized and incorporated in the manufacture and assembly of complete firearms in a firearms manufacturing plant constructed and operated in part by Ross Roggio. It is alleged that the items illegally exported included: M4 Bolt Gas Rings MIL; Firing Pin Retainers; Rifling Combo Buttons, and “defense services.” The defense services allegedly provided by Ross Roggio and his firm include the furnishing of assistance to foreign persons in the manufacture of firearms.
In addition to the charges relating to export controls violations, the indictment also alleges that Ross Roggio and his firm committed wire fraud on at least three occasions by purchasing items from a United States company and providing said company with false information about the end-user of the items. Finally, the indictment charges Ross Roggio and his firm with 27 counts of money laundering in the form of bank transfers from Iraq to two accounts within the Middle District of Pennsylvania, in furtherance of their unlawful export conspiracy.
The combined maximum penalty under federal law for these offenses is 705 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. Any sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
This case is being prosecuted by Assistant U.S. Attorney Todd K. Hinkley for the Middle District of Pennsylvania, and Trial Attorneys Scott Claffee and Heather Alpino of the National Security Division’s Counterintelligence and Export Control Section.
Brooklyn Man Sentenced to 52 Months in Prison for Role in Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Omar Bell, age 34, of Brooklyn, New York, was sentenced on March 22, 2018, by Senior U.S. District Court Judge James M. Munley to serve 52 months in prison for his role in a heroin trafficking conspiracy that operated in Luzerne County during 2014.
According to United States Attorney David J. Freed, Bell previously pleaded guilty to conspiring with others to distribute more than 100 grams of heroin, which is equivalent to more than 4,000 retail bags of heroin.
Judge Munley also ordered Bell to serve four years on supervised release following his prison sentence.
The investigation resulted in the arrest of ten people connected to the drug ring, all of whom pleaded guilty. Desmond Mercer, the leader of the conspiracy, was sentenced to 14 years in prison. Two key associates, Shaquan Murphy and Shaliek Stroman, were each sentenced to 12 ½ years in prison. Another member of the drug ring, Antoine Jamison, received a five-year prison sentence.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Pennsylvania State Police, and Kingston Police. Assistant U.S. Attorney Francis P. Sempa prosecuted 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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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 Charged with Drug Distribution Resulting in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Brian Brew, age 38, of Wilkes-Barre, Pennsylvania, was indicted on March 20, 2018, by a federal grand jury with drug distribution resulting in death. The indictment was unsealed yesterday following Brew’s initial appearance before United States Magistrate Judge Karoline Mehalchick.
According to United States Attorney David J. Freed, the indictment alleges that on January 13, 2018, Brew distributed a mixture of heroin and fentanyl which caused the death of an individual who used the substance.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Wilkes-Barre City Police Department. Assistant U.S. Attorney Jenny P. Roberts 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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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 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 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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Philadelphia Woman Sentenced to 10 Years in Prison for Conspiring to Distribute Heroin and CocaineRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Suheidy Soto-Concepcion, age 33, of Philadelphia, Pennsylvania, was sentenced on March 20, 2018, to 10 years’ imprisonment by U.S. District Court Judge John E. Jones, III, for conspiring to distribute heroin in Lebanon County.
According to United States Attorney David J. Freed, the two-year investigation by the Drug Enforcement Administration and the Lebanon County Drug Task Force culminated with the execution of search warrants at 513 Arnold Street and 443 North 6th Street, in Lebanon, Pennsylvania, on May 14, 2015. During the search at 513 Arnold Street, law enforcement agents discovered a “heroin mill” where kilogram amounts of heroin were being processed on a weekly basis. The investigation revealed that Julio Aviles, Sr., a previously convicted drug dealer, owned and operated the heroin mill and employed a network of sellers, packagers, brokers and testers to conduct this illegal enterprise. All together 13 individuals were charged. Soto-Concepcion’s role was to supervise the packaging operation. Packagers were paid approximately $500 a week like factory workers to process and package the heroin for later distribution. The testers operated as quality assurance inspectors to ensure the heroin was of sufficient quality. At the time of the searches, law enforcement agents found over 400 grams of heroin, over 85 grams of cocaine powder, and over 71 grams of crack cocaine. A kilogram of heroin, which weighs approximately 2.2 pounds is equivalent to approximately 40,000 to 50,000 individual doses of heroin, any one of which can be fatal depending on its purity and the nature of its other ingredients. In this case the evidence established that the drug trafficking organization was mixing the heroin with Fentanyl, morphine, oxycodone and Lidocaine. Law enforcement agents estimated that this drug operation was distributing heroin, crack cocaine, and cocaine for a two-year period and during the last few months was distributing kilogram quantities of heroin, crack cocaine and cocaine powder. The value of the drugs distributed has a conservative street value of between $3 million and $5 million.
Located in the processing room were over 52,000 small Ziploc style bags, 37,000 small glassine bags and over 28,000 rubber bands that are used to package controlled substances. Each rubber band was used to package ten individual bags of heroin, called a bundle.
Law enforcement also located three handguns, ten rifles, six shotguns and paraphernalia consistent with a large-scale drug trafficking operation. During the search at 443 North 6th Street, law enforcement officers located additional quantities of heroin, cocaine powder, and crack cocaine along with drug packaging materials.
The investigation was conducted by the Drug Enforcement Administration, Lebanon County Drug Task Force, Lebanon County Detective Bureau, Lebanon City Police Department, Cornwall Borough Police Department, and assisted by the Lebanon County Probation Department. Assistant United States Attorney Daryl F. Bloom and Special Assistant United States Attorney Nichole Eisenhart, who also serves as the First Assistant District Attorney in Lebanon County, Pennsylvania, prosecuted the case.
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 was also 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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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Newfoundland Woman Indicted for Bankruptcy FraudRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Linda Ferris, age 55, of Newfoundland, Pennsylvania, was indicted on March 20, 2018, by a federal grand jury for knowingly filing false bankruptcy documents and hiding assets during her bankruptcy case.
According to United States Attorney David J. Freed, the indictment alleges that Ferris filed for bankruptcy in July 2013 and did not disclose all of her assets to the bankruptcy court. The indictment further alleges that prior to a Chapter 7 Bankruptcy hearing in September 2013, Ferris lied on her schedule of assets by hiding some of those assets in a sham mortgage in Florida that was set up less than two weeks before filing for bankruptcy.
The charges stem from an investigation by the Federal Bureau of Investigation and the United States Trustee’s Office. Assistant United States Attorney Evan Gotlob is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
The maximum penalty under federal law is 5 years of imprisonment, a term of supervised release following imprisonment, and a maximum fine of $250,000. 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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Monroe County Man Guilty of Heroin Trafficking and Firearms ChargeRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daryl Trent, age 43, of East Stroudsburg, Pennsylvania, pleaded guilty on March 20, 2018, before Senior U.S. District Court Judge James M. Munley to possession with intent to distribute heroin and possessing a firearm in furtherance of a drug trafficking crime.
According to United States Attorney David J. Freed, Trent admitted to committing the drug offense on March 16, 2015, and committing the gun offense on July 25, 2014. Both crimes occurred in Monroe County. Trent admitted to possessing with intent to distribute between 10 and 20 grams of heroin, which is approximately equivalent to between 400 and 800 retail bags of heroin.
Judge Munley ordered a presentence report to be completed, and scheduled sentencing for June 18, 2018.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police from Monroe County. Assistant U.S. Attorney Francis P. Sempa 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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life in prison, a term of supervised release following imprisonment, and a fine. The firearms charge also carries a mandatory minimum penalty of five years’ imprisonment, and the sentence imposed for that offense must run consecutive to any other sentence. 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 County Man Charged with Child Exploitation OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Robert T. Donelon, age 55, of Etters, Pennsylvania, was indicted yesterday by a federal grand jury for offenses involving the exploitation of minors.
According to United States Attorney David J. Freed, the indictment alleges that on January 10, 2018, Donelon possessed images of child pornography depicting a minor engaged in sexually explicit conduct, and received child pornography over the internet. The indictment also seeks forfeiture of all electronic equipment connected with the images of child pornography.
This case was investigated by the West York Borough Police Department with the assistance of the Federal Bureau of Investigation. 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 receipt of child pornography offenses is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. That charges carries a mandatory minimum term of imprisonment of 5 years. The possession of child pornography charge is punishable by a maximum of 10 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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Two Additional Individuals Charged with Smuggling Drugs and Contraband to InmatesRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Deanna Tallo, age 29, of Throop, Pennsylvania, and Thomas Coss, age 36, currently an inmate in state prison, were indicted on March 13, 2018, by a federal grand jury for smuggling suboxone and tobacco into the Lackawanna County Prison during July 2015 and April 2016. The case was unsealed today following the arrest of Tallo.
According to United States Attorney David J. Freed, the indictment alleges that Tallo provided and attempted to provide suboxone and tobacco to inmates at the prison between July 2015 and April 2016, and that during that same time period Coss, then an inmate at the prison, obtained and possessed suboxone and tobacco.
In December 2017, Jerry Defazio, a former contract employee at the prison, pleaded guilty to providing and attempting to provide drugs and tobacco to inmates at the prison. He is awaiting sentencing.
The charges against Tallo and Coss stem from an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant U.S. Attorney Francis P. Sempa 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 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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Scranton Man Charged with Importing Synthetic Canaboids from ChinaRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that John Verkitus, age 53, of Scranton, Pennsylvania, was indicted on March 13, 2018, by a federal grand jury for importing into the United States synthetic canaboids, which are controlled substance analogues. The case was unsealed on March 14, 2018, following Verkitus’ plea of not guilty entered before United States Magistrate Judge Karoline Mehalchick.
According to United States Attorney David J. Freed, the indictment alleges that Verkitus obtained the drugs from China during 2015 and 2016. The indictment identifies the synthetic canaboid as “Naphthalen-1-yl 1-(5-fluoropentyl)-1H-indole-3carboxylate,” also known as NM-2201.
Under federal law, controlled substance analogues, which are chemically similar to controlled substances in Schedules I or II, to the extent they are intended for human consumption, are treated as controlled substances
The charge against Verkitus stems from an investigation by special agents of the Drug Enforcement Administration, the U.S. Postal Inspection Service, and the Scranton Police. Assistant U.S. Attorney Francis P. Sempa 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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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 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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Mechanicsburg Man Charged with Possession of A Firearm as A Convicted FelonRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that John Fishel Jr., age 44, of Mechanicsburg, Pennsylvania, was indicted yesterday by a federal grand jury on firearms charges.
According to United States Attorney David J. Freed, the indictment alleges that on February 5, 2018, Fishel Jr., unlawfully possessed a Bauer, 25 caliber firearm, in Newberry Township, York County, after previously being convicted of a felony.
The case was investigated by the Newberry Township Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Chelsea Schinnour 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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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 minimum mandatory penalty is 15 years imprisonment and the maximum penalty under federal law for this offense 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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Four Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that four previously deported aliens were indicted separately on March 14, 2018, by a federal grand jury for illegal re-entry into the United States by a previously deported alien.
According to United States Attorney David J. Freed, Carmelino Verdugo-Torres, age 30, of Mexico, was previously deported from the United States to Mexico in February 2011. He is alleged to have illegally re-entered the United States sometime after February 2011, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Juan Carlos Munguia, age 29, of Honduras, was previously deported from the United States to Honduras in October 2009. He is alleged to have illegally re-entered the United States sometime after October 2009, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Oscar Cash-Cash, age 29, of Mexico, was previously deported from the United States to Mexico in September 2013. He is alleged to have illegally re-entered the United States sometime after September 2013, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
Evaristo Feregrino-Fortanell, age 27, of Mexico, was previously deported from the United States to Mexico in July 2015. He is alleged to have illegally re-entered the United States sometime after July 2015, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
Under federal law, Verdugo-Torres, Munguia, Cash-Cash and Feregrino-Fortanell all face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
These cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell 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.
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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Monroe County Man Guilty of Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Charles McRae, age 37, of East Stroudsburg, Pennsylvania, pleaded guilty on March 13, 2018, before U.S. District Court Judge Malachy E. Mannion to distribution of heroin.
According to United States Attorney David J. Freed, McRae admitted to selling heroin in Stroudsburg on January 20, 2016.
McRae was indicted by a grand jury in December 2016.
Judge Mannion ordered a presentence report to be completed. Sentencing will be scheduled at a later date.
The case was investigated by the Drug Enforcement Administration and local police from Monroe County. Assistant U.S. Attorney Francis P. Sempa 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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law 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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Additional Charges Filed Against Former Monroe County Financial Advisor for Investment FraudRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on March 13, 2018, Anthony Diaz, age 48, of East Stroudsburg, Pennsylvania, was charged in a superseding indictment with additional charges of mail and wire fraud.
According to United States Attorney David J. Freed, Diaz, who was a financial advisor, was originally indicted on May 12, 2016, and charged with six counts of wire fraud by using false and misleading statements and misrepresentations to induce his clients to purchase high risk and/or otherwise unsuitable investment products, through which Diaz received substantial fees and commissions to which he was not entitled. Today’s superseding indictment added five counts of mail and wire fraud and additional victims.
Diaz allegedly operated the scheme between approximately 2006 and 2015, while he was a registered representative and/or a certified financial planner associated with financial investment firms. Diaz had his own office, under the name of Financial Planners Group of America, with employees reporting to him during the periods when he was associated with other firms. From December 2006 through May 2015, Diaz allegedly sold what were called “alternative investment products” to his clients. Such products are generally high risk, speculative and illiquid (i.e., they cannot readily be converted to cash); may require long holding periods of up to nine years, and have “suitability requirements” related to the net worth and/or income of investors.
As part of the scheme, Diaz allegedly instructed clients to sign blank or partially completed documents, and provided false information on documents concerning the clients’ net worth, income, risk tolerance and/or investment experience to falsely make it appear that the clients met the applicable requirements to invest in the products.
Diaz also allegedly failed to explain to clients that alternative investment products lacked liquidity and had no public market for resale. He allegedly falsely assured clients they would have access to their funds and falsely told some of them the investments were “guaranteed” to earn a certain rate of return, when, in fact, he knew there was no guaranteed rate of return.
Diaz allegedly told his clients that he voluntarily left the broker dealers he was associated with at various times and for the clients’ benefit, when, in fact, he was terminated or asked to leave. As a result, some clients incurred additional fees and expenses.
The indictment charges Diaz with seven counts of wire fraud and four counts of mail fraud. Each count relates to an interstate wire transmission or interstate mailing concerning investments made in connection with the fraud scheme, totaling approximately $611,000 investments, between December 2012 and May 2014.
In May 2015, the Financial Industry Regulating Authority (FINRA), part of the U.S. Treasury Department, permanently banned Diaz from acting as a broker or otherwise associating with firms that sold securities to the public. Shortly thereafter, the Pennsylvania Department of Banking and Securities banned Diaz from representing an issuer or seller of securities in Pennsylvania and from being registered as a broker-dealer, agent or investment advisor in Pennsylvania.
Anyone with information concerning financial services rendered by Diaz and/or Financial Planners Group of America, should contact the U.S. Attorney’s Office at 570-348-2800.
The investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorneys Evan Gotlob, Robert O’Hara and Phillip Caraballo are 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 is 30 years of imprisonment for each mail and wire fraud count, 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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New Cumberland Businessman Sentenced to One Year Probation and Home Confinement for Filing False Tax ReturnRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Powers, age 53, of New Cumberland, Pennsylvania, was sentenced today by United States District Court Judge John E. Jones, III, to one year probation with the condition that he spend four months on monitored home detention for filing a false Federal Income Tax Return pertaining to tax year 2010.
According to United States Attorney David J. Freed, Powers who owns and operates Powers Auto Repair in New Cumberland, pleaded guilty on September 11, 2017, to understating his true income by $238,381 on his 2010 income tax return. The tax owed on that unreported income amounted to $42,774. Under the terms of his plea agreement, Powers will make restitution to the Internal Revenue Service (IRS) in that amount plus another $26,198 for unpaid taxes owed on unreported income of $208,979 for tax year 2012. Thus, the total loss to the IRS as a result of Powers’ underreporting of income was $68,972.
Judge Jones also ordered Power’s restitution in the amount of $68,972 to be paid in no less than monthly payments of $500.
The IRS investigation of Powers began after the IRS received a Form 1099-K indicating Powers Auto Repair had significantly more gross receipts than what Powers reported on his 2011 income tax return. A Form 1099-K is a reporting document filed by entities that process credit card payments on behalf of businesses.
As a result, the IRS obtained Powers’ bank records, which showed that Powers established two accounts - a business account and a personal account at the same bank. Powers deposited all of the cash and all of the checks he received from his customers into the business bank account, and all of his credit card income into his personal account. However, Powers only reported the income in his business account as income on his 2010 and 2012 tax returns.
The case was investigated by the Harrisburg Office of the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Kim Douglas Daniel prosecuted the case.
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Lycoming County Company Charged with Committing an OSHA Violation That Resulted in A Worker’s DeathRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Susquehanna Supply Company, Inc., of Williamsport, Pennsylvania, was charged in a criminal information of willfully committing an OSHA violation that resulted in an employee’s death.
According to United States Attorney David J. Freed, the information alleges that Susquehanna Supply Company’s primary business is bridge rehabilitation, and that in December 2014, the company contracted with the Pennsylvania Department of Transportation to rehabilitate a bridge near Eyers Grove in Columbia County.
The rehabilitation project began in June 2015, and it involved digging large trenches at each end of the bridge. Under regulations issued by the Occupational Safety and Health Administration (“OSHA”), an employee working in a trench must be protected from cave-ins by an adequate protective system, such as sloped walls. Cave-ins represent the greatest danger during a trenching operation and are more likely than other trenching-related accidents to result in worker fatalities.
On July 7, 2015, a Susquehanna Supply Company employee entered a trench at one end of the bridge to remove additional soil. The trench was approximately twelve feet deep. Although Susquehanna Supply Company was aware of the applicable OSHA regulations, the company had not implemented a protective system in the trench. While the employee was working, one of the trench’s vertical dirt walls collapsed, burying the employee up to his chest and crushing him against the bridge’s concrete abutment. The collapse caused massive trauma to the employee’s upper body and killed him almost instantly.
The case was investigated by the Occupational Safety and Health Administration and is being prosecuted by Assistant U.S. Attorney Carlo D. Marchioli.
Criminal informations are only allegations. A charged entity is 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 a $500,000 fine and a term of probation. Under federal law, 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 and protect the public. 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 Possession of A Firearm as A Convicted FelonRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Steven Gray, age 45, of York, Pennsylvania, was convicted for being a felon in possession of a firearm after a three-day jury trial held before United States District Court Judge John E. Jones, III.
According to United States Attorney David J. Freed, Gray was arrested on January 1, 2017, by officers of the York Police Department and found to be in possession of a 9MM Taurus handgun, loaded with seven rounds of ammunition. As a previously convicted felon, he was prohibited from possessing a firearm.
The matter was investigated by the York Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorneys Scott R. Ford and Kim Douglas Daniel prosecuted 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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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 this offense 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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Former Fairview Township Police Officer Sentenced to 42 Months’ Imprisonment on Theft ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tyson Baker, age 43, of Etters, Pennsylvania, was sentenced today by United States District Court Judge Sylvia H. Rambo to 42 months’ imprisonment and two years’ supervised release for theft of seized money that was evidence in two separate drug cases.
Judge Rambo also ordered Baker to pay $1,000 restitution to Fairview Township Police Department and $330 restitution to the FBI. Baker is to report to the Bureau of Prisons on April 2, 2018.
According to United States Attorney David J. Freed, Baker, a former 17 year veteran police officer with the Fairview Township Police Department, was convicted on September 14, 2017, after a four-day trial before Judge Rambo. Baker was convicted of two counts of theft of drug money that was subject to seizure and forfeiture, one count of falsifying or altering records to impede, obstruct or influence a federal drug investigation regarding the first incident, one count of theft of federal property, and one count of presenting a false police report to the FBI.
The Federal Bureau of Investigation (FBI) in Harrisburg received information that Baker stole money from drug traffickers who were arrested, the subject of traffic stops, or both. On November 21, 2015, Baker orchestrated the theft of $2,000 in drug proceeds seized by the Fairview Township Police Department during a search of a residence that resulted in the seizure of several pounds of marijuana and approximately $15,000. On December 16, 2015, the FBI arranged for an undercover vehicle operated by an undercover FBI agent to be stopped by Fairview Township. Baker had the vehicle towed from the scene and, without a warrant and in spite of directions from an FBI agent not to search the vehicle, Baker searched the vehicle and stole $3,000 out of $15,000 concealed in a gym bag in the back of the vehicle. The undercover vehicle was equipped with video recording equipment that recorded Baker going through the vehicle without a warrant. On December 18, 2015, Baker was arrested by the FBI and confessed to both incidents.
“Because of his status as a law enforcement officer, Baker’s actions not only violated state and federal laws, but also had a direct negative impact on state and federal cases where he served as an investigator or witness,” said United States Attorney Freed. “The excellent cooperative investigation followed by Judge Rambo’s sentence send a strong message that this type of conduct will be vigorously prosecuted and punished.”
“When an officer shrugs off his sworn oath, breaking the law to pad his paycheck, he betrays the people of his community – and all of us who wear a badge,” said Michael Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Removing rogue officers from the ranks is vital. The FBI will continue to investigate police corruption and bring those responsible to justice. No one is above the law.”
The case was investigated by the Harrisburg Resident Office of the Federal Bureau of Investigation, the Pennsylvania State Police, the Pennsylvania Office of Attorney General, and the Fairview Township Police Department. Assistant United States Attorneys William A. Behe and Michael Consiglio prosecuted the case.
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York Man Convicted on Drug Trafficking ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Raul Cotto-Rivera, age 40, of York, Pennsylvania, was convicted yesterday of various drug trafficking offenses after a three-day jury trial held before U.S. District Court Judge Yvette Kane.
According to United States Attorney David J. Freed, Cotto-Rivera was convicted of conspiracy to distribute 100 grams and more of heroin and 500 grams and more of cocaine hydrochloride, distribution of heroin (3 counts), possession with intent to distribute heroin and cocaine hydrochloride, distribution of marijuana and possession with intent to distribute cocaine base, cocaine hydrochloride and marijuana.
The charges stemmed from a number of controlled buys of heroin that were made by and through Cotto-Rivera in September and October of 2015. In October 2015, law enforcement obtained and executed a search warrant and located approximately $20,000 in United States currency, a drug ledger, drug packaging material and distribution quantities of cocaine and heroin all in the defendant’s home. While on release, Cotto-Rivera continued to sell drugs and was engaged in the distribution of marijuana from his store. A second search warrant executed in February of 2017, located distribution quantities of marijuana and cocaine, drug packaging materials and a loaded stolen firearm.
A sentencing date has not yet been scheduled.
The investigation was conducted by the FBI Safe Streets Task Force, the York County Drug Task Force, the Pennsylvania State Police, the York Area Regional Police Department, the West Manchester Township Police Department, the York County Sheriff’s Office, the Springettsbury Township Police Department, and the York County District Attorney’s Office. The case was prosecuted by Assistant United States Attorneys Daryl F. Bloom and Carl Marchioli.
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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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.
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 defendant faces a mandatory term of imprisonment of five years and a maximum term of imprisonment of 160 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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United States Attorney’s Office Reaches Settlement with Dauphin County, Pa, over Polling Place Access for VotersRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today a settlement with Dauphin County under Title II of the Americans with Disabilities Act to improve physical accessibility at the county’s polling places for individuals who use wheel chairs and other mobility aids, and for individuals who are blind or have vision impairments.
According to United States Attorney David J. Freed, in the May 19, 2015 primary election, the United States Attorney’s Office, along with an architect from the Department of Justice, surveyed a portion of the county’s polling place locations. The survey resulted in a finding that many of the county’s polling places contain barriers to access for persons with disabilities. Title II of the ADA prohibits discrimination on the basis of disability by a state or local government in any of its programs or services, including its voting program.
Dauphin County is working collaboratively with the United States Attorney’s Office to make all polling places accessible. Under the terms of the agreement, the county will use an evaluation form for each current and prospective polling place based on ADA architectural standards. The settlement requires the county to either relocate inaccessible polling places to new, accessible facilities, or to use temporary measures such as portable ramps, signs, traffic cones and doorbells, where appropriate to ensure accessibility on Election Day. Dauphin County has indeed taken steps since the May 19, 2015 election to ensure polling place accessibility.
“The right of individuals to participate in our democratic system of government includes full and equal access to polling sites,” said U.S. Attorney Freed. “Under this agreement, voters with disabilities will now be able to cast their ballots in person at their polling places alongside their neighbors.”
This investigation was handled by Assistant United States Attorney Michael J. Butler with the assistance of the United States Department of Justice, Civil Rights Division (Disability Rights Section). Those interested in finding out more about the ADA can access the ADA website at www.ada.gov.
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Schuylkill County Man Guilty of Methamphetamine Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Castro, age 28, of Pottsville, Pennsylvania, pleaded guilty yesterday to conspiracy to distribute more than 500 grams of methamphetamine, before U.S. District Court Judge Robert D. Mariani.
According to United States Attorney David J. Freed, Castro, admitted to committing the offense between July 2016 and May 24, 2017, in Schuylkill County and elsewhere.
Castro was indicted by a grand jury along with three other persons in August 2017.
Judge Mariani ordered a presentence report to be completed. Sentencing will be scheduled at a later date.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police from Schuylkill County. Assistant U.S. Attorney Francis P. Sempa 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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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 life in prison, a term of supervised release following imprisonment, and a fine. The charge also carries a mandatory minimum penalty of ten 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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New York Investment Adviser Convicted of Defrauding InvestorsRead the Press Release
HARRISBURG – Louis F. Petrossi, age 77, the founder and president of the Wealth Research Institute, a purported investment research firm, was convicted yesterday by a federal jury in the Middle District of Pennsylvania, on three counts of securities fraud, investment adviser fraud, and wire fraud for his role in a scheme to defraud investors. The four-day trial was held before Chief United States District Court Judge Christopher C. Conner in Harrisburg.
David J. Freed, United States Attorney for the Middle District of Pennsylvania and Richard P. Donoghue, United States Attorney for the Eastern District of New York, jointly announced the verdict.
The evidence at trial established that Petrossi falsely claimed to investors that money they had invested in purported investment funds, Chadwicke Partners LLC (“Chadwicke Partners”) and Chadwicke Ventures LLC (“Chadwicke Ventures”), would be used to invest in startup companies. Instead, the defendant used the investors’ money to pay for personal expenses and issued fraudulent statements that overstated both the cost and value of the securities held by Chadwicke.
The evidence also showed that between January 2015 and January 2017, Petrossi solicited more than $1.8 million in investments in Chadwicke Partners from more than 25 investors nationwide including an investor residing in the Middle District of Pennsylvania. Petrossi promoted Chadwicke as providing the opportunity to invest in high-profile startups companies such as Lyft, Inc., Maplebear Inc., Pinterest Inc., Spotify Technology SA, and Palantir Technologies, Inc. among others. Petrossi invested approximately $665,400 in privately held startup companies but used more than $1.1 million in investor funds to pay for personal expenses, including payments to BMW, renovations to his home and to pay his personal legal fees. In or around August 2016, Petrossi sent emails to Chadwicke investors attaching a spreadsheet that contained false and misleading statements about the purchase price and value of the securities held by the Chadwicke funds in order to conceal his misappropriation of investor money.
On May 3, 2016, Petrossi was arrested in Nevada pursuant to an indictment returned by a federal grand jury in the Eastern District of New York for his role in a securities fraud scheme involving the securities of ForceField Energy Inc. Under the terms of Petrossi’s pre-trial release, the defendant was prohibited from employment “directly involving the handling of investors.” Between May 3, 2016 and approximately January 2017, Petrossi continued to engage in the Chadwicke scheme by emailing the August 2016 spreadsheet and soliciting $210,000 in investor funds.
Petrossi faces a maximum of 20 years’ imprisonment on each count of conviction when he is sentenced by Chief Judge Conner of the Middle District of Pennsylvania.
Petrossi was convicted in May 2017 by a federal jury in Brooklyn for his role in the ForceField Energy Inc. market manipulation scheme. He faces a maximum sentence of 20 years’ imprisonment when he is sentenced by United States District Judge Brian M. Cogan of the Eastern District of New York.
Assistant United States Attorney Mark E. Bini of the Eastern District of New York and Special Assistant United States Attorney John O. Enright of the United States Securities and Exchange Commission’s Enforcement Division prosecuted the case.
The matter was investigated by the United States Securities and Exchange Commission’s Enforcement Division.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under 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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Mechanicsburg Businessman Sentenced to One Year and One Day in Prison for Failure to Pay Federal Payroll TaxesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Nicholas A. Long, age 30, of Mechanicsburg, Pennsylvania, was sentenced on March 8, 2018, to one year and one day and three years’ supervised release by United States District Court Judge Sylvia H. Rambo for willful failure to pay federal payroll taxes.
According to United States Attorney David J. Freed, Long pleaded guilty in October 2017, to an information charging him with the willful failure to pay federal payroll taxes owed by his business, Harrisburg Commercial Interiors, LLC during 2013.
An Internal Revenue Service (IRS) investigation revealed that Long, through his solely owned commercial drywall business, Harrisburg Commercial Interior, LLC (HCI), willfully did not pay $216,304 in payroll taxes during 2013 and 2014. The IRS investigation began when several HCI employees contacted the IRS because they did not receive their 2013 income tax refunds.
As the owner of HCI, Long exercised primary control over the financial affairs of the business, was solely responsible for issuance of all paychecks, and had sole signature authority on HCI's business bank account. Although he issued payroll checks totaling $730,788 in gross wages during 2013 and 2014, Long did not file the requisite Employer's Quarterly and Annual Federal Tax Returns, Forms and 940, with the IRS, nor pay over the $160,399 he withheld from his employees’ pay checks to the government.
Judge Rambo also ordered Long to make full restitution in the amount of $216,304. Long made $140,000 in payments prior to his sentencing leaving $76,304 owed.
“Business owners like Mr. Long have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS,” stated Ed Wirth, Acting Special Agent in Charge. “The failure to do so is a crime, and the Special Agents of IRS Criminal Investigation will continue to vigorously pursue action against those who commit these types of offenses.”
The case was investigated by the Harrisburg Office of the IRS Criminal Investigation and was prosecuted by Assistant United States Attorney Kim Douglas Daniel.
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