Middle District of Pennsylvania
Press releases recorded for this federal judicial district.
Former Canadian MoneyGram and Western Union Agent Sentenced on Fraud and Money Laundering Conspiracy ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Western Union and MoneyGram agent,
Chima Nneji, age 55, of Toronto, Canada, was sentenced by Chief United States District Court Judge Christopher C. Conner in Harrisburg, to 45 months in prison for conspiring to defraud hundreds of American residents out of more than $900,000 via mass marketing consumer fraud schemes.
Chief Judge Conner also ordered Nneji to pay restitution in the amount of $381,729. The lower restitution amount is due in part to monies compensated to victims as part of the U.S. v. MoneyGram deferred prosecution agreement which established a $100 million restitution fund for MoneyGram customers that were victims of consumer fraud.
According to United States Attorney Bruce D. Brandler, in September 2012, Chima Nneji conspired with his codefendant brother, William Nneji, codefendant Alex Mgbolu, and other unnamed individuals between July 2002 and May 2010 to commit the crimes. Chima Nneji was extradited to the United States from Canada and was arraigned on his charges in Harrisburg in July 2015.
Chima Nneji was the owner/operator of a Western Union agency called Advanced Computer and a MoneyGram agency known as Hallmark Services, in Toronto, Canada. Between November 2004 and April of 2007, international mass marketing fraudsters instructed hundreds of consumer fraud victims across the United States to send Western Union and MoneyGram money transfers to Advanced Computer Service and Hallmark Services. The transfers were then paid out by Chima Nneji, and his brother. Nneji and his brother cashed out the money transfers in a manner that maintained the anonymity of the fraudsters, by entering false names and identification data into the Western Union and MoneyGram computer data bases. Analysts from the Toronto Police Service and U.S. Postal Inspection Service determined that over 90% of the payee addresses and identification numbers entered at Advanced Computer Service and Hallmark Services were invalid. For his role in the scheme, Chima Nneji retained a portion of the money transfers before sending the balance of the funds on to the fraudsters.
Law enforcement personnel sent questionnaires to hundreds of MoneyGram customers in the United States whose $1,000 plus money transfers were paid out at Hallmark Services. Not a single sender reported that their transfer was sent for a legitimate purpose. One hundred ninety-eight customers reported that their money transfers, which totaled $579,436, were fraud-induced. The known total dollar loss associated with all consumer fraud induced money transfers paid out at Advanced Computer Service and Hallmark Services is $915,978.
Codefendant William Nneji is a fugitive from justice. Codefendant Alex Mgbolu pled guilty to the charges before Judge Conner in August 2016, and is awaiting sentencing.
The case is part of an ongoing investigation by the Harrisburg Office of the U.S. Postal Inspection Service and is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.
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Federal Inmate Indicted for Assaulting Corrections OfficerRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daryl Johnson, age 32, an inmate at United States Penitentiary Canaan (USP Canaan), was indicted on December 6, 2016, by a federal grand jury on a charge of assaulting a federal employee.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Johnson kicked a corrections officer in the face during an altercation at the prison in September. The officer suffered minor injuries.
The case was investigated by the Federal Bureau of Investigation and officers at USP Canaan, and is being prosecuted by Assistant U.S. Attorney Sean A. Camoni.
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 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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York Man Guilty of Allowing His Home to Be Used as Drug Distribution SiteRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Frederick Gladfelter, age 46, of York, Pennsylvania, pleaded guilty today before United States District Court Judge John E. Jones, III, to allowing his home to be used as a site for the distribution of heroin and crack cocaine.
According to United States Attorney Bruce D. Brandler, in January 2015, a York City man died after buying and using heroin sold at Gladfelter’s residence.
Co-defendant Dameon Lattimore of New York pled guilty before Judge Jones in May 2016 to a charge of distributing heroin that resulted in death. Sentencing has not yet been scheduled. Co-defendant Yushonda Durant, also of New York, remains a fugitive.
The investigation was conducted by the Drug Enforcement Administration, the York City Police Department and the York County District Attorney’s Office. Prosecution is assigned to Assistant U.S. Attorney William A. Behe.
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 maximum penalty under federal law for this offense 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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Two Indicted for Heroin Introduction at USP CanaanRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton indicted Sable Daniel, age 27, of Philadelphia, Pennsylvania, for distribution of heroin and providing an inmate with contraband and Russell Whitmore, age 33, an inmate at United States Penitentiary, Canaan (USP Canaan), for possession of contraband by an inmate.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Daniel delivered heroin to Whitmore during a visit at USP Canaan.
The investigation was conducted by the Federal Bureau of Investigation and officers at USP Canaan. The case is being prosecuted by Assistant United States Attorney Sean A. Camoni.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harrisburg Man Convicted of Possession of Crack and of A Firearm in Furtherance of Drug TraffickingRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jwane Johnson, age 28, of Harrisburg, was convicted by a federal jury of possession with intent to distribute crack, possession of a handgun by a convicted felon, and possession of a firearm in furtherance of drug trafficking. The two-day trial was held before United States District Court Judge William W. Caldwell in Harrisburg.
According to United States Attorney Bruce D. Brandler, the jury returned the verdict after approximately two hours of deliberation. The jury found that Johnson attempted to distribute crack near the Allison Hill section of Harrisburg on December 8, 2015 and when the sale was interrupted by Harrisburg Police, he fled leaving behind a 9mm semi-automatic handgun. He was later arrested near the same area on January 2, 2016, while in possession of crack cocaine that the jury found he intended to distribute.
The matter was investigated by the Harrisburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorneys Scott R. Ford and Joseph J. Terz.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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 up to life 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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Florida Woman Guilty of Interstate Stolen Credit Card SchemeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Carol Watts, age 44, of Ft. Lauderdale, Florida, pleaded guilty today before United States District Court Judge John E. Jones, III, to conspiring to use stolen credit cards.
According to United States Attorney Bruce D. Brandler, Watts conspired with others to use stolen credit cards to purchase electronic merchandise and gift cards from stores in central Pennsylvania, such as Target and Best Buy. The co-conspirators engaged in this conduct for approximately eight months from 2014 to 2015. Miller and her co-conspirators travelled from Florida to Pennsylvania breaking into cars to steal credit cards and identification documents in order to buy iPads, iPods, MacBooks and other electronic merchandise and gift cards. The total loss as a result of the scheme is estimated to be $179,500.
The case was investigated by the Harrisburg Resident Office of the United States Secret Service, the Lower Paxton Township Police Department, and numerous other law enforcement agencies. Assistant United States Attorney William A. Behe is prosecuting the case.
The maximum penalty under federal law for this offense is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Carbondale Man Sentenced for Tax EvasionRead the Press Release
SCRANTON-The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Thomas Rice, age 65, of Carbondale, Pennsylvania was sentenced by United States District Court Judge Malachy Mannion on December 2, 2016, to 10 months’ home confinement and three years’ probation for evading his mother’s income taxes.
Pursuant to a plea agreement, Rice paid $56,424 in restitution prior to sentencing.
According to United States Attorney Bruce D. Brandler, Rice had power of attorney for his mother and evaded paying approximately $65,000 in taxes from 2004-2008.
The case was investigated by the Internal Revenue Service. Assistant United States Attorney Evan Gotlob prosecuted the case.
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U.S. Attorney’s Office Issues Opioid Strategy to Combat Heroin Epidemic in the Middle DistrictRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that it issued a district specific opioid strategy to address the prescription opioid and heroin epidemic plaguing our nation and the Middle District of Pennsylvania. United States Attorney Bruce D. Brandler stated, “more Americans now die every year from drug overdoses than they do in motor vehicle crashes or homicides and Pennsylvania has the eighth highest rate of overdose deaths in the United States. Our office is committed to doing everything we can to address this growing problem.”
On September 21, 2016, the Department of Justice issued its national strategy to combat the rising public health challenges caused by the abuse of prescription opioids and the concomitant heroin epidemic engulfing our nation. Although prescription opioid and heroin abuse is a national problem that requires a national strategy, the Department of Justice recognizes that its efforts must be tailored to the needs of each region and implemented by those who know their communities best. Accordingly, the opioid strategy memorandum issued today is the Middle District’s strategy to combat this epidemic.
According to United States Attorney Bruce D. Brandler, the Middle District’s strategy rests on three interrelated pillars: prevention, enforcement and treatment. In the area of prevention, the U.S. Attorney’s Office will continue its efforts to raise public awareness by developing a community education plan which will not only incorporate some of the office’s prior community outreach activities (such as the heroin and prescription drug symposium held on September 19, 2016) but will also add new features such as creating a formal multi-media presentation highlighting the dangers and warning signs of opioid abuse and offer tangible solutions. The presentations will be made throughout the Middle District by experienced prosecutors, law enforcement officers, medical professionals and other appropriate individuals to schools, businesses, civic organizations, and prisoners soon to be released into the community
In the area of enforcement, United States Attorney Brandler stated, “opioid cases, particularly opioid cases resulting in death, will take the highest priority and such cases will be prosecuted aggressively to ensure maximum deterrence. This not only includes prosecuting the members of drug trafficking organizations but also includes rogue health care providers, pharmacists and pharmaceutical employees who contribute to the available supply and overuse of prescription opioid painkillers.”
In the area of treatment, United States Attorney Brandler stated, “we will coordinate with our federal, state and local law enforcement partners to identify individuals most in need of treatment and direct those individuals to appropriate treatment providers and facilities at the earliest time.”
Gary Tuggle, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division stated, “in addition to our investigations and enforcement actions against drug traffickers responsible for the illegal diversion of prescription opioids and distribution of heroin, awareness, prevention, and ready access to treatment are equally as important in addressing this public health crisis. 3,383 people died across Pennsylvania last year from drug overdoses, the majority of which were attributable to heroin and opioids. The DEA looks forward to working closely with U.S. Attorney Brandler and his office on this strategy to address this epidemic.”
Michael Harpster, Special Agent in Charge of the FBI’s Philadelphia Division stated, “every day, the FBI and our law enforcement partners are working to disrupt the supply chain that feeds this heroin and opioid epidemic. Despite significant success, the demand for these drugs continues unabated. Only through a strong, concerted effort will we gain any ground in this fight, by both targeting traffickers and raising public awareness about addiction, treatment, and prevention.”
Details concerning the Middle District’s opioid strategy can be found in the memorandum itself which is attached to this news release.
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Third Circuit Court of Appeals Affirms Lengthy Prison Sentences for Two Men Who Executed the Largest Disadvantaged Business Enterprise Fraud in the Nation’s HistoryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Joseph W. Nagle, age 55, of Deerfield Beach, Florida and Ernest G. Fink, Jr., 71, of Orwigsburg, Pennsylvania, the former owners of Schuylkill Products Inc., (SPI) had their sentences affirmed by the Third Circuit Court of Appeals on November 30, 2016. Nagle was sentenced to 84 months’ imprisonment on November 30, 2015 and Fink was sentenced to 41 months’ imprisonment on February 24, 2016, for their roles in a massive conspiracy to defraud the Disadvantage Enterprise (DBE) program, announced Bruce D. Brandler, U.S. Attorney for the Middle District of Pennsylvania.
According to the U.S. Department of Transportation (USDOT), this scheme, which lasted for over 15 years and involved over $136 million in government contracts in Pennsylvania alone, is the largest reported DBE fraud in the nation’s history.
In April 2012, after a four-week jury trial, a jury convicted Nagle on 26 charges relating to the scheme, including conspiracy to defraud USDOT, mail fraud, wire fraud, and money laundering. Fink previously pleaded guilty to conspiracy to defraud the USDOT in August 2010.
In June 2014, Nagle was sentenced to 84 months’ imprisonment and Fink was sentenced to 51 months’ imprisonment but those sentences were vacated by the U.S. Court of Appeals for the Third Circuit in September 2015 due to an incorrect calculation of the loss amount under the Sentencing Guidelines. Upon remand to the district court for resentencing, United States District Court Judge Sylvia H. Rambo recalculated the loss amount and sentenced Nagle to the same sentence and reduced Fink’s sentence to 41 months’ imprisonment. Both men appealed the new sentences and the Appellate Court affirmed those sentences yesterday in a ten-page opinion, which is attached. The Appellate Court ruled that Judge Rambo correctly measured the loss by determining the profits the defendants received as a result of the fraud and diverted from legitimate DBE’s. The Appellate Court also rejected Fink’s claim that his sentence was substantively unreasonable based on his age and the non-violent nature of the offense stating that, “a 41-month sentence for a 70-year old first-time offender who, for at least fifteen years presided over the largest reported DBE fraud in the history of the U.S. Department of Transportation is not unreasonable.”
In 2014, three other former executives associated with SPI were sentenced for their roles in the scheme.
Romeo P. Cruz, of Westhaven, Connecticut, the former owner of Marikina Construction Corp., which operated as a front for SPI, was sentenced to 33 months’ imprisonment.
Timothy G. Hubler, of Ashland, Pennsylvania, SPI’s former Vice-President in charge of field operations, was sentenced to 33 months’ imprisonment.
Dennis F. Campbell, of Orwigsburg, Pennsylvania, SPI’s former Vice-President in charge of sales and marketing, was sentenced to 24 months’ imprisonment.
The investigation was conducted by the FBI, the U.S. Department of Transportation Inspector General’s Office, the U.S. Department of Labor Inspector General’s Office, and the Criminal Investigation Division of the IRS. U.S. Attorney Bruce Brandler and Assistant U.S. Attorney Kim Douglas Daniel handled the prosecution.
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Third Circuit Court of Appeals Affirms 12 ½-Year Prison Sentence for Heroin CourierRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that the Third Circuit Court of Appeals today affirmed the 12 ½-year prison sentence imposed by Senior U.S. District Court Judge Richard P. Conaboy on a California resident who transported 23 kilograms of heroin (approximately 760,000 retail bags of heroin) from California to Pennsylvania.
According to United States Attorney Bruce D. Brandler, the defendant, Francisco Martinez-Rubio, age 36, a citizen of Mexico, claimed on appeal that his 151-month prison sentence was unreasonable.
Martinez-Rubio pleaded guilty on September 8, 2015, to possession with intent to distribute more than one kilogram of heroin. Judge Conaboy sentenced him on December 15, 2015. Martinez-Rubio admitted that he and three others transported the heroin across the country during late June to early July 2014.
In upholding the sentence, the appeals court ruled that Judge Conaboy was correct in categorizing the defendant as an organizer of criminal activity because he recruited other drug couriers and directed them in their efforts in transporting the heroin across the country. The Court further held that the 12 ½ -year prison sentence was reasonable given the seriousness of the offense and the need to deter others from engaging in similar conduct.
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.
The case was investigated by the Drug Enforcement Administration and the Pennsylvania State Police. Assistant United States Attorney Francis P. Sempa prosecuted the case and handled the appeal.
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New York Man Admits Role in Attempted Sex Trafficking of A MinorRead the Press Release
WILKES-BARRE- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Adrian Smith, age 21, of New York, pleaded guilty on November 29, 2016, before United States Magistrate Judge Joseph F. Saporito, Jr., in Wilkes-Barre, to attempted sex trafficking of a minor.
According to United States Attorney Bruce D. Brandler, Smith admitted to assisting others in maintaining a minor for the purpose of having the minor engage in prostitution during August 2016, at a hotel in Scranton. Smith also admitted that he provided prostitutes with a place to stay and provided protection for the minors in connection with the attempted sex trafficking activities.
Judge Saporito ordered a pre-sentence investigation to be completed. Sentencing in the case will be scheduled by Senior United States District Court Judge Richard P. Conaboy.
The case was investigated by the Federal Bureau of Investigation and the Scranton Police Department. Assistant United States Attorney Francis P. Sempa 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."
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. There is also a mandatory minimum sentence of 10 years in prison. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harrisburg Woman Sentenced to 20 Months in Prison for Filing Numerous Fraudulent Income Tax ReturnsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Aida Crespo, age 44, of Harrisburg, Pennsylvania, was sentenced today by Chief United States District Court Judge Christopher C. Conner, to 20 months’ imprisonment for submitting approximately 27 fraudulent tax returns to the Internal Revenue Service.
According to United States Attorney Bruce D. Brandler, between the years 2007 and 2011, Crespo made numerous false representations in the preparation of income tax returns for herself and for others in order to maximize refund amounts. The fraudulent tax returns included misrepresenting Schedule C income, listing fictitious dependents and manipulating filing status. As a result, the United States Treasury issued approximately $75,000 in refunds to individuals which exceeded the amount that they were entitled to receive.
The case was investigated by the Internal Revenue Service Criminal Investigation Division. Assistant United States Attorney Chelsea Schinnour prosecuted the case.
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Harrisburg Man Sentenced to Two Years in Prison for Illegally Selling Prescription DrugsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Gerard Grant, age 60, of Harrisburg, was sentenced by United States District Court Judge Yvette Kane in Harrisburg, to two years in federal prison for unlawfully distributing prescription drugs.
According to United States Attorney Bruce D. Brandler, Grant admitted to selling approximately 500 Vicodin tablets, a controlled substance which contained hydrocodone, to an individual cooperating with the Drug Enforcement Administration. Grant also admitted to selling the Vicodin tablets on five different occasions in Harrisburg to others.
The case was investigated by the Harrisburg Resident Office of the Drug Enforcement Administration, the Pennsylvania State Police, the Dauphin County Drug Task Force, and the Harrisburg Police Department. Assistant United States Attorney William A. Behe prosecuted the case.
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Wilkes-Barre Man Guilty of Straw Purchase of FirearmRead the Press Release
WILKES-BARRE - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ruben Rosario, age 19, of Wilkes-Barre, pleaded guilty today before United States Magistrate Judge Joseph F. Saporito, Jr., in Wilkes-Barre, to the charge of making false statements to a federally licensed firearm dealer.
According to United States Attorney Bruce D. Brandler, Rosario admitted that he and another individual provided false information regarding the purchase of a semi-automatic .22 caliber pistol from Piestrak’s Gun Shop, LLC, in Nanticoke, Pennsylvania, on April 5, 2016. Rosario paid another individual to purchase the firearm for him and to falsify the paperwork in connection with the sale.
Rosario will appear for sentencing before United States Senior District Judge Richard P. Conaboy in Scranton on a date which has not yet been scheduled.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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 offense is ten 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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New York Man Sentenced for Computer Hacking That Shut Down Internet Service ProviderRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dariusz J. Prugar, age 32, of Syracuse, New York, was sentenced today by United States District Court Judge Sylvia H. Rambo in Harrisburg, to 24 months in prison for computer hacking and wire fraud. In March 2016, a jury convicted Prugar of these offenses after a one-week jury trial.
Judge Rambo ordered Prugar to pay $26,000 in restitution. Judge Rambo also ordered Prugar to report to the Bureau of Prisons on December 27, 2016, to begin service of his prison sentence.
According to United States Attorney Bruce D. Brandler, Prugar was the network administrator for Pa Online, an internet service provider formerly located in Enola, Pennsylvania. Prugar was fired by Pa Online in June 2010. Days later, Prugar retaliated against his former employer by secretly hacking into the business’s computer network.
Prugar installed computer programs throughout the internet service provider’s network, which caused files and directories to be erased and ultimately caused the network to crash. For approximately a week, Pa Online was unable to provide sustained service to over 5,000 residential customers and over 500 business customers. He also installed numerous “backdoor” entry points into the network so that he could access the network again.
Over a dozen former employees, outside consultants, and former clients of Pa Online testified about the impact the outage had on them. Former employees and outside consultants hired by Pa Online testified that the crash caused them to work for days attempting to return service. Former customers described their inability to access tools essential to their businesses, which resulted in the customers terminating their relationship with Pa Online. Out of fear that Prugar would re-sabotage the business, the owner of Pa Online testified he had the entire network rebuilt.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorneys Michael A. Consiglio and Carl D. Marchioli prosecuted the case.
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Former Utz Quality Foods Employee Sentenced in $1.4 Million False Invoice Kickback SchemeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kevin Myers, age 38, a former resident of Abbottstown, Pennsylvania, was sentenced today by United States District Court Judge Yvette Kane in Harrisburg, to 51 months in federal prison for his participation in a false invoice, kickback scheme that defrauded Utz Quality Foods, Inc. (Utz) out of approximately $1.4 million.
Judge Kane ordered Myers to pay Utz $1.4 million in restitution and to forfeit the same amount to the government. Judge Kane also ordered Myers to report to the Bureau of Prisons on January 16, 2017.
According to United States Attorney Bruce D. Brandler, Myers, the former Director of Purchasing for Utz and Jonathan Haas, age 46, of Easton, Pennsylvania, the owner of Haas Packaging and Design, Inc. in Bethlehem, Pennsylvania, pleaded guilty in July 2016 to an information charging them with wire fraud. Haas is scheduled to be sentenced on the charges by Judge Kane on January 12, 2017.
Haas Packaging & Design supplied Utz with shelving and packaging products. The defendants defrauded Utz between January 2010 and August 2014 by Myers’s preparation of approximately 43 bogus purchase orders and Haas’ submission of approximately 83 false invoices for products Utz never received. After Myers approved Haas’s false invoices for payment, Haas would kickback a portion of the proceeds to Myers. According to a forensic audit commissioned by Utz, Haas received approximately $1,474,765 from Utz and from that amount Haas paid Myers approximately $651,000.
Myers and Haas attempted to conceal some of the kickbacks to Myers as payments for fictional consulting services. The payments were made in the form of checks payable to “Myers Packaging Consulting,” a non-existent, paper company created by Myers.
The case was investigated by the Harrisburg Office of the Federal Bureau of Investigation and Utz Quality Foods, Inc. cooperated with the investigation. Assistant United States Attorney Kim Douglas Daniel prosecuted the case.
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Cumberland County Man Guilty of Possession of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Gary Stinson Smith, age 60, of Mechanicsburg, Pennsylvania, pled guilty today before United States District Court Judge John E. Jones, III, to possession of child pornography.
According to United States Attorney Bruce D. Brandler, Smith admitted to possessing images depicting child pornography. After obtaining a search warrant, law enforcement officers searched the defendant’s computer in November 2015 and located images and movies containing child pornography.
This case was investigated by the United States Postal Inspection Service and the Pennsylvania Office of the Attorney General. The case is being prosecuted by Assistant United States Attorney Daryl Bloom.
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."
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 10 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Florida Woman Guilty of Interstate Stolen Credit Card SchemeRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Chelsea Miller, age 19, of Stuart, Florida, pleaded guilty on November 22, 2016, before United States District Court Judge John E. Jones, III, to conspiring to use stolen credit cards.
According to United States Attorney Bruce D. Brandler, Miller conspired with others to use stolen credit cards to purchase electronic merchandise and gift cards from stores in central Pennsylvania, such as Target and Best Buy. The defendants engaged in this conduct for approximately eight months from 2014 to 2015. Miller and her co-defendants travelled from Florida to Pennsylvania breaking into cars to steal credit cards and identification documents in order to buy iPads, iPods, MacBooks and other electronic merchandise and gift cards.
The case was investigated by the United States Secret Service, the Lower Paxton Township Police Department, and numerous other law enforcement agencies. The case was prosecuted by Assistant United States Attorney William A. Behe.
The maximum penalty under federal law is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Virginia Man Pleads Guilty to Robbery and Firearms Charges in Connection with Armed Robbery of Econo Lodge in ScrantonRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Virginia man pleaded guilty today before United States District Court Judge Malachy E. Mannion in Scranton, to federal robbery and firearms charges filed in connection with the armed robbery of the Econo Lodge located on Kane Street in Scranton, which occurred on February 13, 2016.
According to United States Attorney Bruce D. Brandler, Kwa’shon Roane, age 24, of Gloucester, Virginia, admitted to the charges of interference with commerce by robbery and brandishing a firearm in furtherance of a crime of violence. Roane, along with Rodney Whiting, age 23, of Scranton, Tracy Whiting, age 24, of Newport News, Virginia, and Kelvin Robinson, age 24, also of Newport News, Virginia, were indicted by a grand jury in March 2016 for the armed robbery of the Econo Lodge.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Scranton Police Department, the Pennsylvania State Police, the Lackawanna County District Attorney’s Office and numerous local law enforcement agencies, including the Taylor Borough and Moosic Borough Police Departments. The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
Rodney Whiting, Tracy Whiting and Kelvin Robinson previously pleaded guilty to the charge of brandishing a firearm in furtherance of a crime of violence and are awaiting sentencing.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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.
Roane faces a mandatory penalty of at least seven years in prison for the charge of brandishing a firearm in furtherance of a crime of violence, which must be served in addition to the sentence he receives for the charge of interference with commerce by robbery.
The maximum penalty under federal law for the offenses is up to life in prison, a term of supervised release following imprisonment and a fine. According to 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 Man Sentenced for Unemployment Compensation FraudRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jamal High, age 37, of Philadelphia, was sentenced today to 24 months of probation by United States Middle District Chief Judge Christopher C. Conner in Harrisburg, for knowingly making false statements in order to obtain unemployment compensation.
According to United States Attorney Bruce D. Brandler, High was employed by the United States Postal Service as a mail handler in the Philadelphia Main Office. From July 2012 through September 2014, High submitted forms to the Pennsylvania Department of Labor and Industry in order to receive unemployment compensation, even when fully employed by the United States Postal Service.
Chief Judge Conner also ordered High to pay $12,856 in restitution to the Pennsylvania Department of Labor and Industry.
The case was investigated by the Pennsylvania Department of Labor and Industry and the United States Postal Service, Office of Inspector General. The case was prosecuted by Assistant United States Attorney Chelsea Schinnour.
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Northampton Man Guilty of Multiple Thefts at Delaware Water GapRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Lewis Davenport, age 39, of Northampton County, Pennsylvania, pleaded guilty on November 18, 2016, to charges of conspiring to commit theft on federal land, and to aggravated identity theft.
According to United States Attorney Bruce D. Brandler, Davenport and other individuals broke into unoccupied automobiles located in the Delaware Water Gap National Recreation Area. Davenport admitted that he and his conspirators stole electronics, cellular phones, credit cards and other items from the automobiles, and used the stolen credit cards at various retail businesses in Bartonsville and in Easton, Pennsylvania.
The investigation was conducted by the National Park Service Rangers. The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo.
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 combined penalties under federal law for Davenport’s charges are up to seven years of imprisonment, including a two-year consecutive mandatory term of imprisonment for the aggravated identity theft charge, 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 Pike County Man Sentenced for False Bankruptcy DeclarationsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Daniel Wise, age 55, formerly of Tafton, Pennsylvania, currently residing in New York, NY, was sentenced today by United States District Court Judge James M. Munley in Scranton, to 2 years’ probation and 100 hours’ community service, for making false declarations in bankruptcy proceedings. Judge Munley also ordered Wise to pay a $30,000 fine.
According to United States Attorney Bruce D. Brandler, Wise filed three Chapter 13 bankruptcy petitions in the Middle District of Pennsylvania between August 14 and November 21, 2012. An indictment returned on October 14, 2015, alleged that Wise intentionally failed to reveal his ownership of a $2.4 million promissory note and that he was actively engaged in litigation over the note in New York. Under bankruptcy law, he was required to make those disclosures in his bankruptcy petitions.
On July 13, 2016, Wise pleaded guilty in a proceeding before Judge Munley. He admitted that he made false declarations in connection with the bankruptcy petition filed on November 21, 2012. He further admitted to making false sworn declarations during a January 14, 2013, creditors’ meeting. Wise’s bankruptcy petitions were eventually dismissed on March 13, 2013.
The case was investigated by the Scranton Office of the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Kim Douglas Daniel.
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Two New York Men Indicted for Transporting Cocaine and HeroinRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jerry Fruit, age 36, and Tykei Garner, age 33, both of New York City, were indicted on November 16, 2016, by a federal grand jury for conspiracy to distribute and possession with the intent to distribute cocaine and over 100 grams of heroin.
According to United States Attorney Bruce D. Brandler, the Pennsylvania State Police conducted a traffic stop on a car traveling on I-81 near Harrisburg on July 5, 2016. During the stop, the Pennsylvania State Police found over 100 grams of heroin, which is the equivalent of approximately 4,000 individual doses, and an unspecified amount of cocaine.
The case was investigated by the Pennsylvania State Police, the Dauphin County District Attorney’s Office and the U.S. Drug Enforcement Administration (DEA). The case is being prosecuted by Assistant United States Attorney Scott Ford.
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.
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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Previously Deported Alien Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on November 16, 2016, a federal grand jury in Harrisburg charged Victor Avalos-Trinidad, age 34, with illegal re-entry into the United States by a previously deported alien.
According to United States Attorney Bruce D. Brandler, Avalos-Trinidad was previously deported from the United States in 2009. He is alleged to have illegally reentered the United States sometime after 2009.
This matter was investigated by Homeland Security Investigations. Prosecution has been assigned to Assistant United States Attorney Carlo D. Marchioli.
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 two years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Monroe County Man Guilty of Selling ExplosivesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ronald J. Scheu, age 48, of Kunkletown, Pennsylvania, pleaded guilty before Magistrate Judge Karoline Mehalchick in Scranton on November 16, 2016, to distributing explosives.
According to United States Attorney Bruce D. Brandler, Scheu distributed 119 M-class devices, 26 class 1.3 mortars, and one aerial shell on or about April 28, 2016, without the appropriate license or permit. During the hearing, Scheu admitted to maintaining a storage locker filled with hundreds of pounds of explosives, and to selling professional grade explosives without an appropriate license. He also admitted to manufacturing flash powder and explosives at his residence.
The plea remains subject to approval by United States District Court Judge Richard P. Conaboy. As a condition of his pre-sentencing release, Judge Mehalchick ordered Scheu to dispose of all firearms in his possession.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Carbon County District Attorney’s Office. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the charge is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Lebanon County Man Indicted for Coercing A Minor to Perform Sex ActsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Kerry Edward Tropasso, age 35, of Lebanon County, was indicted on November 16, 2016, by a federal grand jury on charges relating to the sexual abuse of children.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Tropasso used a minor victim to transmit live visual depictions of the minor engaged in sexual activity; coercing and enticing the minor to engage in sexual activity; distributing images depicting the sexual abuse of a minor; and receiving obscene visual depictions of the sexual abuse of children.
This case was investigated by the United States Postal Inspection Service, the Pennsylvania State Police, with assistance from the Lancaster County Detectives Office and the Northern Lebanon Township Police Department. The case is being prosecuted by Assistant United States Attorney Daryl Bloom.
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 these offenses 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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Inmate Charged with Possession of Contraband in PrisonRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Criminal Information was filed on November 16, 2016, charging Marcus Young, age 32, a federal inmate at the United States Penitentiary at Schuylkill with possession of contraband in prison.
According to United States Attorney Bruce D. Brandler, the information charges Young with possession of a cell phone in prison on October 14, 2016.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Prosecution has been assigned to Assistant United States Attorney Robert J. O’Hara.
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 one year of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harrisburg Man Who Posed as Student Sentenced on Federal Passport and Social Security Fraud ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Artur Samarin, age 24, also known as Asher Potts, was sentenced today by United States District Court Judge Sylvia H. Rambo in Harrisburg, to two months in federal prison on a two count indictment, which charged Samarin with passport and social security frauds.
Judge Rambo ordered Sarmarin’s sentence to run consecutive to any local sentence he may receive. Samarin currently is waiting to be sentenced in Dauphin County for theft by deception; conspiracy involving theft by deception; tampering with public records; conspiracy involving tampering with public records; statutory sexual assault; and unsworn falsification to authorities.
According to United States Attorney Bruce D. Brandler, Samarin, a Ukrainian man, posed as a high school student in Harrisburg, and used a fictitious identity, Asher Potts, to apply for a United States passport and a social security card.
This case was investigated by the Department of State Diplomatic Security Service, the City of Harrisburg Bureau of Police and the Social Security Administration Office of Inspector General. The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.
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Former Rite Aid Vice President and New Jersey Businessman Sentenced to Prison in $12.9 Million Fraud and Kickback SchemeRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Rite Aid Vice President and a New Jersey business man were sentenced on November 16, 2016, by United States District Court Judge John E. Jones, III, in Harrisburg, for their participation in a $12.9 million dollar fraud and kickback scheme.
According to United States Attorney Bruce D. Brandler, Jay Findling, age 55, of Manalapan, New Jersey, was sentenced to 48 months’ incarceration for his role in the scheme. In February 2015, Findling pleaded guilty to an information charging him with conspiracy to commit wire fraud.
In a separate proceeding, Judge Jones sentenced former Rite Aid Vice President Timothy P. Foster, age 66, of Portland Oregon, to 60 months’ incarceration. Foster pleaded guilty in February 2015, to an information charging him with false statements to authorities.
Judge Jones also ordered Findling and Foster to jointly pay $8,034,183 in restitution. Findling was ordered to pay $6,257,997 within 15 days of sentencing and Foster was ordered to pay $1,776,186 by the end of yesterday.
Under the terms of his plea agreement, Findling also forfeited and turned over an additional $11.6 million to the government at the time he entered his guilty plea.
Both Findling and Foster are to voluntarily surrender to the Bureau of Prisons on January 17, 2017.
The charges are based upon Foster’s and Findling’s 9-year conspiracy to defraud Rite Aid via a surplus inventory sales scheme between 2001 and 2010. As the Vice President for Quality Assurance, Foster’s primary responsibilities at Rite Aid involved the liquidation of surplus Rite Aid inventory across the United States. During the time period in question Foster worked for Rite Aid in Oregon. The scheme succeeded by making Rite Aid believe its surplus inventory had been sold to Findling’s company, J. Finn Industries, LLC, for amounts reported by Foster when, in fact, the inventory had been sold to third parties for greater amounts. Findling would then kick back a portion of his profits to Foster.
The scheme started in 2001 and continued until February of 2010 when Foster ended his employment with Rite Aid. Findling admitted he established a bank account in New Jersey under the name of “Rite Aid Salvage Liquidation.” The account was used by the conspirators to collect the payments submitted by the real buyers of the surplus Rite Aid inventory. After the payments were received, Findling would send lesser amounts dictated by Foster to Rite Aid for the goods, thus inducing Rite Aid to believe the inventory had been purchased by J. Finn Industries, not the real buyers.
During a loss hearing in June 2015, the government introduced proof that Findling received at least $127.7 million from the real buyers of the surplus Rite Aid inventory but, with Foster’s help, only tendered $98.6 million of that amount to Rite Aid, leaving Findling with a profit of approximately $29.1 million from the scheme. The government also introduced proof that Findling kicked back $5.9 million of the $29.1 million to Foster, primarily in the form of cash. Upon the conclusion of the loss hearing, Judge Jones concluded the net loss to Rite Aid, after giving Findling some credit for his services, was $11.2 million. Judge Jones also found that Rite Aid sustained an additional $1.7 million loss as a result of a similar kick-back scheme with another West Coast businessman who was not charged in the scheme, bringing the total loss to Rite Aid to $12.9 million.
Foster admitted he knowingly and willfully lied when he was interviewed by the Federal Bureau of Investigation (FBI) in January 2014 and denied he conspired with Findling to defraud Rite Aid. Foster subsequently recanted his false statements when he was re-interviewed on May 1, 2014. During that interview Foster not only admitted to conspiring to defraud Rite Aid with Findling, Foster voluntarily surrendered $2,941,940 in cash kickbacks he had received from Findling over the life of the conspiracy. Foster stored the cash in three, 5-gallon paint containers in his Phoenix, Arizona garage. Foster later surrendered to the FBI an additional $454,020 in cash and approximately $541,342 in gold and silver coins.
The case was investigated by the Harrisburg Office of the Federal Bureau of Investigation. The cases were prosecuted by Assistant United States Attorney Kim Douglas Daniel.
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Carbon County Man Pleads Guilty to Producing Child PornographyRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Grant Harris, age 36, of Carbon County, pleaded guilty today before Senior U.S. District Court Judge James M. Munley in Scranton, to producing child pornography.
According to United States Attorney Bruce D. Brandler, Harris, who resided in Albrightsville at the time of the offense, admitted to persuading and enticing a minor to engage in sexually explicit conduct for the purpose of producing a visual image of that conduct.
The crime occurred sometime between 2008 and 2009, when the victim was eight-years-old. Harris was indicted by a federal grand jury in November 2015, shortly after agents and police discovered the child pornography on a computer used by the defendant.
Judge Munley ordered a pre-sentence investigation to be completed and scheduled sentencing in the case for February 17, 2017. Harris remains detained in prison pending sentencing.
The investigation was conducted by Homeland Security Investigations, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office. Assistant United States Attorney Francis P. Sempa 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."
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.
Harris faces a mandatory minimum sentence of 15 years in prison and a potential maximum sentence of 30 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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York Man Guilty of Federal Child Sexual Exploitation OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Michael Charles Clarke, age 43, of York, Pennsylvania pleaded guilty on November 15, 2016, before Senior Judge Sylvia Rambo in Harrisburg to production, possession and transportation of child pornography.
According to United States Attorney Bruce D. Brandler, between 2010 and 2015, Clarke sexually assaulted a minor child on multiple occasions and videoed that abuse. Clarke was arrested by the Southwestern Regional Police Department on September 26, 2015 and charged with rape of a child and associated offenses. When Clarke’s home was searched, multiple computers, hard drives, thumb drives and CDs were seized. The Federal Bureau of Investigation forensically examined this evidence and discovered that Clarke had downloaded and saved child pornography images on a number of the devices. Further investigation revealed that in 2010, Clarke transported images of child pornography across state lines, from Iowa to Pennsylvania.
The case is being investigated by the Federal Bureau of Investigation and the Southwestern Regional Police Department. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
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."
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 production of child pornography charge carries a mandatory minimum sentence of 15 years in prison and the maximum penalty under federal law is 70 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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Schuylkill County Man Charged with Attempted Enticement of A Minor for Sex and Transporting Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Brian Tate, age 34, of Gordon, Pennsylvania, was indicted on November 15, 2016, for attempting to entice a minor to engage in illegal sexual activity and transporting child pornography.
According to United States Attorney Bruce D. Brandler, the indictment alleges that between October 17, 2016 and November 9, 2016, Tate used the internet to attempt to persuade and entice a minor to engage in illegal sexual activity, and during that same time period transported child pornography by any means, including by computer.
If convicted, Tate faces a mandatory minimum sentence of 10 years in prison and a potential maximum sentence of life in prison for the attempted enticement of a minor charge, and a mandatory minimum sentence of five years in prison and a potential maximum sentence of 20 years in prison for transporting child pornography.
The case was investigated by Homeland Security Investigations, United States Postal Inspectors, and the Pennsylvania State Police. Assistant United States Attorney Francis P. Sempa 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 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 these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Monroe County Man Faces Additional Charges of Sex Trafficking and Drug TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton returned a superseding indictment on November 15, 2016, charging Thurman Stanley, age 39, of East Stroudsburg, with four new counts of sex trafficking by force and coercion, two new counts of attempted sex trafficking, and a new drug trafficking charge, conspiracy to commit sex trafficking by force and coercion, and three counts of interstate transportation of others for purposes of prostitution.
According to United States Attorney Bruce D. Brandler, the superseding indictment alleges that Stanley forced and coerced several females to engage in prostitution in Monroe County and elsewhere, transported females from Pennsylvania to New York, Iowa, and North Dakota to engage in prostitution, and trafficked in illegal drugs.
The superseding indictment alleges that Stanley and/or his co-conspirators used social network sites to recruit females for prostitution; used cell phones to post ads on adult escort websites to solicit customers; rented hotel and motel rooms in Monroe County and elsewhere for purposes of prostitution; provided heroin and other illegal drugs to the prostitutes; and used force, threats, and coercion to carry out prostitution activities. The indictment alleges that the conduct occurred between December 2013 and December 2015.
If convicted of the charges, Stanley faces a mandatory minimum sentence of 15 years in prison and a potential maximum sentence of life in prison for each of the sex trafficking charges, up to 10 years in prison on each of the interstate prostitution charges, and up to 20 years in prison on the drug trafficking charge
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and Bismarck, North Dakota detectives. 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 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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Inmate Charged with Assault and Possession of ContrabandRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Johnny Biggs, age 37, inmate at United States Penitentiary, Canaan, was indicted on November 15, 2016, by a federal grand jury for possession of a dangerous weapon and possession of contraband.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Biggs attacked another inmate with a weapon fashioned from a padlock tied to a sock. The victim suffered multiple lacerations to his head, face, and back.
The case was investigated by the Federal Bureau of Investigation and officers at USP Canaan. The case is being prosecuted by Assistant United States Attorney Sean A. Camoni.
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 assault offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harrisburg Man Sentenced for Firearm ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Christopher Fleisher, age 36, of Harrisburg, Pennsylvania, was sentenced today by United States District Court Judge William W. Caldwell in Harrisburg to 46 months’ imprisonment for firearm charges.
According to United States Attorney Bruce D. Brandler, Fleisher pled guilty to being a felon in possession of a firearm. The charge stems from an incident that occurred on June 4, 2015 in Harrisburg and involved a stolen .38 caliber Smith and Wesson handgun.
The case was investigated by the Harrisburg Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Harrisburg Police Department and the Commonwealth of Pennsylvania’s Office of Probation and Parole. Prosecution of the case was assigned to Assistant United States Attorney William A. Behe.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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Hazleton Man Sentenced to 15 Months’ Imprisonment for Passing Counterfeit MoneyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Senior United States District Judge Richard P. Conaboy sentenced a Hazleton man to 15 months’ imprisonment for passing counterfeit $100 bills between December 2012 and February 2013.
According to United States Attorney Bruce D. Brandler, Edwin Batista, age 36, of Hazleton, Pennsylvania, received the sentence following his guilty plea to a one-count information charging him with passing counterfeit $100 bills at various businesses in Luzerne County. In addition to the term of imprisonment, Judge Conaboy ordered Batista to pay $6,510 in restitution, and to serve a three-year term of supervised release following his imprisonment.
The case was investigated by the Scranton office of the United States Secret Service, and the Hazleton Police Department. Assistant United States Attorney John Gurganus prosecuted the case.
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Luzerne County Man Pleads Guilty to Large Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Omar Bell, age 33, of Wilkes-Barre, pleaded guilty on November 10, 2016, before Senior U.S. District Court Judge James M. Munley in Scranton to conspiring with others to distribute large amounts of heroin during February through November 2014.
According to United States Attorney Bruce D. Brandler, Bell admitted to regularly obtaining multiple bricks of heroin from Desmond Mercer and his associates and distributing that heroin to customers in Luzerne County. Bell admitted to distributing between 100 and 400 grams of heroin, which is equivalent to between 4,000 and 16,000 retail bags of heroin.
Mercer, the leader of the drug operation, previously pleaded guilty and 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 conspiracy, Antuan Jamison, was sentenced to five years in prison.
Judge Munley scheduled Bell’s sentencing for February 9, 2017. Bell faces a mandatory minimum sentence of five years in prison and a potential maximum sentence of 40 years in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Luzerne County District Attorney’s Office, and Kingston Police Department. Assistant U.S. Attorney Francis P. Sempa is prosecuting 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.
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 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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York Man Indicted for Distributing Large QuantitiesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jeff Smith, age 29, of York, Pennsylvania, was indicted on November 9, 2016, by a federal grand jury on drug trafficking charges.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Smith possessed with the intent to distribute over 280 grams of crack cocaine from 2014 through his arrest on October 5, 2016. The distribution of 280 grams or more of crack cocaine carries a mandatory minimum sentence of 10 years in prison.
The case was investigated by the U.S. Drug Enforcement Administration (DEA) and the York City Police Department and is being prosecuted by Assistant U.S. Attorney Meredith A. Taylor.
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 lifetime imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Tennessee Couple Indicted for Veteran’s Unemployment Compensation Fraud and Money LaunderingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Tennessee couple were indicted by a federal grand jury on November 9, 2016, for fraudulently obtaining $98,165 in veterans’ unemployment compensation benefits.
According to United States Attorney Bruce D. Brandler, Earl Lafayete Hall, III, age 35, and his wife, Renita Blunt, age 31, both of Arlington, Tennessee, are charged in a second superseding indictment with mail fraud, money laundering, aggravated identity theft, and conspiracy to commit mail fraud.
According to the second superseding indictment, with Blunt’s assistance, Hall allegedly applied for veteran’s unemployment compensation benefits in three states under the false name and identity of 11 individuals (ten men and one women) between January 2013 and March 2015. One claim was submitted to the Hawaii Department of Labor and Industrial Relations, three claims were submitted to the Utah Department of Workforce Services, and seven claims were submitted to the Pennsylvania Department of Labor and Industry.
Hall and Blunt allegedly received the benefits under the Unemployment Compensation for Ex-Service Members Program, commonly known as “The UCX Program,” a federally-funded U.S. Department of Labor program administered by the individual states. Under this federal-state partnership, the states pay out unemployment insurance benefits to the veterans and are subsequently reimbursed by the various branches of the military. Benefits are based upon the military wages and pay grade of the serviceman at the time of his or her separation from military service.
Hall and Blunt were previously indicted by a Middle District of Pennsylvania grand jury on June 22, 2016. Today’s second superseding indictment adds Blunt as a defendant on the ten money laundering counts, adds a count of conspiracy to commit money laundering against both defendants, and alleges the three false Utah claims for UCX benefits, which paid out approximately $10,000 in benefits, were also part of the mail fraud scheme. No date has yet been scheduled for the defendants’ arraignment on the new charges.
The investigation is being conducted by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, U.S. Defense Criminal Investigative Service, U.S. Postal Inspection Service with assistance from Pennsylvania Department of Labor and Industry, Internal Audits Division, Pennsylvania Department of Labor and Industry, Office of Unemployment Compensation Benefits and Policy, and the Pennsylvania Department of the Treasury, Office of Unemployment Compensation Disbursements. The case is being prosecuted by Assistant U.S. Attorney Kim Douglas Daniel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each count is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Monroe County Man Pleads Guilty to Heroin and Sex Trafficking Charges; Co-Defendant Admits to Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man pleaded guilty today before U.S. District Court Judge Malachy E. Mannion in Scranton, to participating in a heroin trafficking conspiracy that stretched from Stroudsburg to New York to the state of Maine, and to a forcing or coercing women into engaging in prostitution in northeastern Pennsylvania.
According to United States Attorney Bruce D. Brandler, the defendant, Jose Velazquez, age 26, who used the street name “Sev,” admitted to conspiring with others to distribute more than 100 grams of heroin (which is approximately equivalent to 4,000 retail bags of heroin) and to sex trafficking an adult female between 2012 and 2014.
Velazquez was indicted along with six other people by a federal grand jury in Scranton in September 2015, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, Maine State Police, the Monroe County District Attorney’s Office, and local police in Monroe County. In October 2016, Velazquez was charged in a superseding indictment with drug trafficking and sex trafficking crimes.
The superseding indictment alleges that Velazquez participated in a street gang known as the Black P-Stones; that male gang members were “beaten-in” to the gang and female members were “sexed-in” to the gang. The superseding indictment further alleged that members of the Black P-Stones obtained heroin in New York and distributed the heroin in Stroudsburg and locations in the state of Maine. According to the superseding indictment, couriers were used to transport heroin from New York to Maine.
The superseding indictment alleges that females were “sexed-in” to the gang by being forced to engage in sex with male gang members; recruited and coerced to engage in prostitution; advertised as adult escorts on a website; provided with heroin and other drugs; and placed in various area hotels/motels to work as prostitutes. It is alleged that the sex trafficking defendants used threats, force, and intimidation to coerce females to engage in prostitution.
In today’s proceeding, Velazquez pleaded guilty to conspiracy to distribute in excess of 100 grams of heroin, and one count of sex trafficking by force or coercion. He faces a mandatory minimum five-year prison sentence and a potential 40-year prison sentence for the drug conspiracy charge; and a mandatory minimum 15-year prison sentence and a potential life sentence for the sex trafficking charge
One of Velazquez’s co-defendants, Sean Griffin, age 22, who used the street name “Kritical,” also pleaded guilty today before Judge Mannion to participating in the same drug trafficking conspiracy. He admitted to being a sub-distributor of between 100 grams and 400 grams of heroin for the Black P-Stones. He faces a potential maximum sentence of 20 years in prison.
Judge Mannion ordered pre-sentence investigations to be completed. Sentencing for both defendants will be scheduled at a later date.
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 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."
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Scranton Man Guilty of Sex Trafficking of A MinorRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 28-year-old Scranton man pleaded guilty today before Senior U.S. District Court Judge James M. Munley in Scranton, to sex trafficking of a minor.
According to United States Attorney Bruce D. Brandler, the defendant, Mark Matis, admitted to assisting others in transporting and maintaining a minor for the purpose of having the minor engage in prostitution during February through May 2014.
The sex trafficking activity involved placing photographs of the minor along with ads in the adult “escort” section of a website; renting motel rooms in Lackawanna and Luzerne Counties where the prostitution activities occurred; providing drugs to the minor; purchasing and providing condoms for the minor to use during commercial sex acts; and serving as security or “bodyguards” at the motels where the commercial sex acts took place.
Matis was indicted by a federal grand jury in April 2015, as a result of an investigation by Homeland Security Investigations and the Pennsylvania State Police. Four persons were charged in connection with the investigation. Sean Cantelmo previously pleaded guilty and was sentenced to 151 months in prison. Jimmy Cantelmo also pleaded guilty and was sentenced to 10 years in prison. Justin Strait pleaded guilty and is awaiting sentencing.
Judge Munley scheduled sentencing in the case for February 8, 2017. Matis faces a mandatory minimum sentence of 10 years in prison and a potential maximum sentence of life in prison. Matis remains detained in prison pending sentencing.
“HSI is pleased that our joint investigation with PSP resulted in the defendant pleading guilty to conspiracy to commit sex trafficking of a minor,” said Marlon Miller, special agent in charge of HSI Philadelphia. “HSI is devoted to protecting children from predators.”
Assistant United States Attorney Francis P. Sempa 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."
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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Lancaster Man Charged with Obstruction of Justice and PerjuryRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Angel Luis Carrasco-Rivera a/k/a Manuel Calcagno, age 54, of Lancaster, Pennsylvania, was indicted on November 2, 2016, for obstructing justice and committing perjury.
According to United States Attorney Bruce D. Brandler, Carrasco-Rivera was charged with obstruction of proceedings and perjury in connection with his recent prosecution and conviction for mail fraud. The fraud prosecution involved Carrasco-Rivera obtaining more than $102,000 by filing false claims for unemployment compensation benefits from 2008 through late 2012. He was sentenced in June 2016 to serve 18 months in prison for that offense.
Today’s indictment alleges that during the official proceedings in federal court, Carrasco-Rivera lied about his identity to influence the court’s decision about the appropriate sentence for his mail fraud conviction.
The case was investigated by the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations. Prosecution has been assigned to Assistant United States Attorney James T. Clancy.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for the perjury offense under federal law is five years of imprisonment, a term of supervised release following imprisonment, and a fine; the maximum penalty for the obstruction offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harrisburg Man Indicted on Federal Drug Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg indicted Kevin Dwight Holland, age 23, Harrisburg, Pennsylvania, on November 2, 2016, on drug trafficking and firearms charges.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Holland possessed with the intent to distribute more than 28 grams of crack cocaine and possessed a firearm in furtherance of or in relation to drug trafficking. Additionally, Holland was charged as a felon in possession of a firearm.
The investigation was conducted by the Susquehanna Township Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Joseph J. Terz.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
Indictments are only allegations. All persons charged are presumed innocent unless and until found guilty in court.
The maximum penalties under federal law include 40 years for possession with intent to distribute 28 grams and more of crack cocaine, 10 years' imprisonment for a felon in possession of a firearm, and life for possession of a firearm in furtherance of drug trafficking.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harrisburg Man Indicted for Possession of A Short-Barreled ShotgunRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg indicted Jerome King on November 2, 2016, for possession of a short-barreled shotgun.
According to United States Attorney Bruce D. Brandler, King, a 29-year-old resident of Harrisburg, was arrested after he was seen possessing a short-barreled shotgun that did not have an identifiable serial number. Possession of a short-barreled shotgun violates federal law if the firearm is not properly registered or if the firearm does not have an identifiable serial number, and as a convicted felon, King is prohibited from possessing any firearm.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the Harrisburg Police Department. The case is being prosecuted by Assistant U.S. Attorney Carlo D. Marchioli
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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 life 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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Berwick Man Charged with Heroin TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a grand jury in Scranton charged Edwin Vaquiz, age 27, a resident of Berwick, Pennsylvania, on October 25, 2016, with distribution and possession with intent to distribute heroin.
The indictment was unsealed yesterday following the arrest of Vaquiz in Berwick. Vaquiz was arraigned before United States Magistrate Judge Karoline Mehalchick and was ordered detained.
According to United States Attorney Bruce D. Brandler, the indictment charges Vaquiz with distributing heroin on January 22, 2016 and possession with intent to distribute over sixty grams (equivalent of approximately 1,800 retail bags) of heroin on January 29, 2016, in the Berwick area.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Berwick Police Department. The case is being prosecuted by Assistant United States Attorney Sean A. Camoni.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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 each offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wilkes-Barre Man Charged in Straw Purchase of FirearmRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Wilkes-Barre man was charged with making false statements to a federally licensed firearm dealer.
According to United States Attorney Bruce D. Brandler, Ruben Rosario, age 19, of Wilkes-Barre, was charged in a Criminal Information, filed October 31, 2016, in United States District Court in Scranton, with providing false information to Piestrak’s Gun Shop, in Nanticoke, Pennsylvania, on April 5, 2016, in connection with the purchase of a firearm.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
Together with the Criminal Information, the government also filed a plea agreement with Rosario, which is subject to the approval of the court. No date has yet been scheduled for the entry of Rosario’s guilty plea.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
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 ten 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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Two Federal Inmates Sentenced to 70 Months in Prison for Assaulting Another InmateRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Judge Malachy Mannion sentenced Reuben Blajos, age 42, and Manuel Vasquez-Perez, age 40, for assaulting another inmate while incarcerated at the United States Penitentiary Canaan (USP Canaan) in Waymart, Pennsylvania. Both inmates received a 70 month term of imprisonment.
According to United States Attorney Bruce D. Brandler, Blajos and Vasquez-Perez previously pleaded guilty to the assault, and admitted they beat another inmate with modified flails fashioned from padlocks affixed to socks, and repeatedly kicked their victim while he was on the ground. The victim suffered serious, but not life-threatening brain injuries, and numerous cuts and abrasions throughout his body.
At the time of the assault, Blajos was serving a sentence at USP Canaan pursuant to a 2010 federal conviction for racketeering and narcotics trafficking conspiracies. Judge Mannion ordered that his new sentence run consecutive to his undischarged term of imprisonment.
Vasquez-Perez, a citizen of Mexico, was serving a sentence at USP Canaan pursuant to a 2012 federal conviction for entering the United States illegally after having previously been deported. That sentence for entering the United States illegally expired during the course of the prosecution for the assault offense.
The case was investigated by the Federal Bureau of Investigation and officers from USP Canaan. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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State Prisoner Sentenced to 14 Months in Prison for Mailing Threatening Communications to Lancaster County JudgeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Joshua Keziah, age 28, an inmate incarcerated at the State Correctional Institution in Frackville, Pennsylvania was sentenced today by United States District Court Judge Malachy E. Mannion in federal court, in Scranton, to 14 months’ imprisonment. Additionally, Keziah receieved two years of post-release supervision that requires the defendant to spend 90 days in a halfway house.
According to United States Attorney Bruce D. Brandler, in August 2016, the defendant pleaded guilty to sending a threathening letter to President Judge Joseph Mandespacher of Lancaster County, Pennsylvania.
The case was investigated by the United States Postal Inspection Service and the Lancaster County Police Department. Assistant United States Attorney Evan Gotlob prosecuted the case.
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Scranton Business Owners Charged in Unemployment Benefits SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Criminal Information was filed in U.S. District Court in Scranton charging a Scranton man and a Dunmore man with conspiracy to commit wire fraud in connection with the fraudulent receipt of unemployment benefits.
According to United States Attorney Bruce D. Brandler, Samuel Borgia, age 52, and Steven Borgia, age 46, owned and operated Home Resource Corporation, a home improvement company in Scranton. From 2009 to 2012, the defendants allegedly filed fraudulent claims for unemployment compensation and received unemployment benefits to which they were not entitled.
The defendants also allegedly instructed a number of their employees to falsely report to the Pennsylvania Department of Labor that the employees were not employed in order for the employees to also fraudulently receive unemployment benefits. The Information charges that the defendants and their co-conspirators received more than $150,000 as a result of the scheme.
The government also filed plea agreements which are subject to the approval of the court, where the defendants indicate that they intend to plead guilty to the charge when they appear in federal court for their arraignment.
The charges stem from an investigation by the United States Department of Labor, Office of the Inspector General, and the Commonwealth of Pennsylvania’s Department of Labor. The case is being prosecuted by Assistant United States Attorney Evan Gotlob.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the offense charged in this case is five years’ 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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Harrisburg Police Officer Charged with Theft of Money That Was Evidence in A Criminal CaseRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Harrisburg Police Officer was charged by way of a criminal complaint with theft of money that belonged to a federal agency and removing property to prevent its seizure.
According to United States Attorney Bruce D. Brandler, the criminal complaint alleges that Sean Cornick, age 44, of Harrisburg, a Corporal with the Harrisburg Bureau of Police, stole money from an evidence locker which he believed was property seized in a drug investigation. Cornick was allegedly videotaped taking money out of the locker. An inventory later confirmed money was missing from the locker.
The charges against Cornick resulted from an internal investigation by the Harrisburg Bureau of Police that was referred to the Federal Bureau of Investigation, and the Pennsylvania State Police. Assistant United States Attorney Eric Pfisterer, Deputy Chief of the Criminal Division, is prosecuting the case.
Cornick appeared before United States Magistrate Judge Susan E. Schwab yesterday and was released under conditions that he post a $10,000 signature bond, restrict his travel to the Middle District of Pennsylvania, surrender his passport, have no contact with potential witnesses, and not possess a firearm.
United States Attorney Bruce D. Brandler stated, “It is always a sad day when fellow law enforcement officers are alleged to have broken the laws they have sworn to uphold. Our office takes these matters very seriously and we greatly appreciate the assistance and cooperation of the Harrisburg Police Department and Pennsylvania State Police in conducting this investigation.”
Special Agent in Charge of the FBI's Philadelphia Division, Michael T. Harpster, said "When an officer who took an oath to protect and serve crosses the line, as alleged here, it's an affront to all those in law enforcement who carry out their sworn duties with integrity. Public corruption is insidious, corroding people's faith in the system. For that reason, it continues to be a top FBI priority."
Major David E. Relph, Director, Bureau of Criminal Investigation, Pennsylvania State Police, said, “It is a sad day for law enforcement when an officer crosses the line into criminal conduct. It is crucial that a complete and thorough investigation is conducted to maintain the public confidence in law enforcement. Cooperation between agencies is critical in cases like this. We appreciate the hard work of our federal, state and local law enforcement partners in this investigation.”
Criminal complaints 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 removal of property to prevent seizure is five years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Theft of Federal Funds under $1,000 is punishable by up to one-year 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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