Middle District of Pennsylvania
Press releases recorded for this federal judicial district.
Three California Men Indicted for Nationwide Conspiracy to Commit Identity, Bank, and Wire FraudRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Williamsport indicted three California men on November 12, 2015, charging them with conspiracy to commit wire fraud, bank fraud, and fraud in connection with identification documents in an alleged nationwide scheme to defraud five banks and over 40 jewelry stores, including stores in State College and Camp Hill, Pennsylvania.
According to U.S. Attorney Peter Smith, the new Indictment is the result of a continuing investigation. The indictment alleges that Thung Van Huynh, age 46, Tung Thanh Doan, age 48, and John Quangchoang Nguyen, age 55, used counterfeit California driver’s licenses to purchase and attempt to purchase Rolex, Omega, and Breitling watches from the victim jewelry stores throughout the United States. The watches are allegedly valued at approximately $528,614.
The indictment charges that the conspirators submitted fraudulent applications for loans and credit, totaling approximately $463,400, using the counterfeit driver’s licenses. The victims include a jewelry store in State College and another one in State College, in addition to 25 individual identity theft victims and five financial institutions. At the time of the alleged offenses, Thung Van Huynh and John Quangchoang Nguyen were residents of Garden Grove, California, and Tung Thanh Doan was a resident of Stanton, California.
The indictment was unsealed yesterday following the arrests and initial appearances of Huynh and Doan before U.S. District Court Judge Malachy E. Mannion. Nguyen’s initial appearance was held February 9, 2016.
Another alleged participant in the conspiracy and scheme to defraud, Phil Nguyen, was previously indicted and entered a guilty plea to wire fraud. Nguyen is awaiting sentencing before United States District Judge Malachy E. Mannion in Scranton.
The federal investigation was conducted by the Federal Bureau of Investigation with the assistance of the Police Departments of Patton Township and Hampden Township, and the Jeweler’s Security Alliance. Assistant United States Attorney George J. Rocktashel has been assigned to the prosecution of the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the sentencing judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the sentencing 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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California Deputy Sheriff and Three Others Charged in York County Drug Trafficking ConspiracyRead 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 has indicted four individuals, including a former deputy sheriff, in a drug conspiracy that trafficked between Northern California and York County, Pennsylvania.
According to United States Attorney Peter Smith, Yuba County, California Deputy Sheriff Christopher Mark Heath, 37; Tyler Neil Long, 32; Ryan Jay Falsone, 27; and Ramona Marcel Long, 56, all of whom reside in the Oroville, California area, were charged in a 19-count indictment with conspiracy to manufacture and distribute marijuana, and conspiracy to launder drug proceeds. The indictment alleges that the conspiracy involved 100 kilograms and more of marijuana. The indictment also charges one or more defendants with delivering marijuana on specific days. Heath is charged with possessing a firearm in furtherance of drug trafficking.
The indictment alleges that the four defendants participated in a conspiracy that began in approximately September 2014 and continued to January 7, 2016. During this time, Heath was a deputy sheriff in Yuba County, California, assigned as a narcotics investigator. Heath has since resigned. Ramona Long was a Lead Service and Sales Associate working in the U.S. Post Office in Oroville. The defendants allegedly grew marijuana on property in Oroville, and shipped it mainly through the United States Postal Service to several locations, including post office boxes in York New Salem and Mountville, Pennsylvania, as well as to a home address in the Hanover area. Money to purchase additional marijuana was mailed from locations in and around York County to a post office box in Bangor, California.
Ramona Long, the mother of Tyler Neil Long and the mother-in-law of Christopher Mark Heath, is alleged to have used her position as a supervisor in the post office to allow packages of marijuana and drug proceeds to be shipped to and from the post office. Approximately 200 pounds of marijuana and $500,000 in drug proceeds were shipped between California and Pennsylvania in this fashion.
According to the Indictment, the conspirators also allegedly transported marijuana by motor vehicle from California to several locations, including York County. Beginning on approximately December 27, 2015, Heath, Long, and Falsone traveled from California to York County in two vehicles. Heath’s vehicle contained a quantity of marijuana. Heath also traveled with a loaded Glock firearm that he was authorized to carry in connection with his position as a deputy sheriff and a deputy sheriff’s badge. Heath, Long, and Falsone were arrested by the York County Drug Task Force and Penn Township, York County, Police.
Akeia Conner, Internal Revenue Service, Special Agent in Charge, said “Today’s indictment of four individuals operating an interstate drug organization is only achieved through the tireless efforts of all the agencies involved. The Internal Revenue Service, Criminal Investigation proudly provides the financial expertise that dismantles the laundering of the drug proceeds which fuel these conspiracies.”
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement on this investigation and will continue to vigorously protect the U.S. Mail against all forms of criminal misuse.”
This case was investigated by the Drug Enforcement Administration, Internal Revenue Service Criminal Investigations, the York County Drug Task Force, Penn Township Police, the Butte County, California Sheriff’s Department, the United States Postal Inspection Service and United States Postal Service Office of Inspector General. The United States Attorney’s Office for the Eastern District of California also provided assistance and cooperated with the investigation. Assistant U.S. Attorney Christy H. Fawcett has been assigned to prosecute the case.
Indictments are only allegations. All persons charged are presumed 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 conspiracy to manufacture, distribute, and possess with intent to manufacture and distribute 100 kilograms and more of marijuana is 40 years’ imprisonment, lifetime supervised release, and a $2,000,000 fine. The offense carries a mandatory minimum sentence of five years’ imprisonment. The maximum penalty upon conviction of conspiracy to commit money laundering is 20years’ imprisonment, a fine of $500,000 or twice the value of the laundered funds, whichever is greater, and three years’ supervised release. Each count of manufacture, distribution and possession with intent to manufacture and distribute carries a maximum term of imprisonment of 20 years, a $1,000,000 fine, and lifetime supervised release. The maximum penalty for the offense of possessing a firearm in furtherance of drug trafficking is life, a three-year term of supervised release, and a $250,000 fine. The mandatory minimum sentence for possessing a firearm in furtherance of drug trafficking is five years’ imprisonment to be served consecutively to any other sentence imposed.
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 indicate of the potential sentence for a specific defendant.
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Allentown Man Sentenced to 14 Years in Prison for 2012 White Jewelers RobberyRead the Press Release
HARRISBURG - The United States Attorney=s Office for the Middle District of Pennsylvania announced that Timothy Forbes, 34, of Allentown, Pennsylvania was sentenced today to 14 years by the Honorable William W. Caldwell for Forbes’ robbery conviction following a September 2015 plea.
According to United States Attorney Peter Smith, Forbes, along with Jamell Smallwood and Jesse Brewer, robbed the White Jewelers in York, Pennsylvania of more than fifty Rolex watches valued at over $500,000 on July 12, 2012. In the course of the robbery, Brewer shot the owner of the store, permanently disabling him. Brewer went to trial in September 2015 and a jury convicted him of robbery and firearms offenses. On February 24, 2016, he was sentenced to life imprisonment plus 20 years. Co-defendant Jamell Smallwood of Allentown, Pennsylvania pleaded guilty previously and was sentenced to 17 years for his role in this robbery.
This case was investigated by the Federal Bureau of Investigation and the York Area Regional Police Department, with assistance from the Allentown and New York City Police Departments. This case was prosecuted by Assistant United States Attorney Meredith A. Taylor.
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Monroe County Man Sentenced to 34 Months in Prison for Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 24-year-old Tobyhanna man was sentenced to 34 months in prison today by U.S. District Court Judge Malachy E. Mannion in Scranton, for trafficking in heroin in July-August 2014.
According to United States Attorney Peter Smith, the defendant, Ronald Walker, previously pleaded guilty to possession with intent to distribute heroin. Agents seized nine bricks of heroin from the defendant’s residence on August 14, 2014, and Walker admitted during his guilty plea to distributing between 40 and 60 grams of heroin in July-August 2014, which is equivalent to approximately 1300 to 2000 bags of heroin.
Walker was indicted by a federal grand jury in Scranton in March 2015, as a result of an investigation by special agents of the Drug Enforcement Administration (DEA), investigators from the Pennsylvania State Police, and Pocono Mountain Regional Police.
Judge Mannion also ordered Walker to be placed on three years of supervised release following his prison sentence.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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Luzerne County Man Sentenced to 151 Months in Prison for Federal Heroin Trafficking OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Luzerne County man was sentenced today by United States District Court Judge Malachy E. Mannion in Scranton, to serve 151 months (12 years and 7 months) in prison for heroin trafficking.
According to United States Attorney Peter Smith, the defendant, Pedro Noriega, age 42, of Plymouth, Luzerne County, previously pleaded guilty to possession with intent to distribute heroin. He was indicted by a grand jury in August 2015.
Investigators had arranged to make a purchase of heroin from Noriega, obtained a search warrant for his residence, on West Main Street in Plymouth, and seized approximately 495 bags of suspected heroin, a quantity of raw heroin, packaging materials and drug paraphernalia from a bedroom in the residence.
In imposing the sentence, Judge Mannion noted the defendant’s previous criminal history which included multiple drug trafficking convictions.
The investigation was conducted by the Luzerne County Drug Task Force, the Bureau of Narcotics Investigations (BNI) of the Pennsylvania Office of Attorney General, and the Bureau of Alcohol, Tobacco and Firearms (ATF).
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
Judge Mannion also ordered that Noriega be supervised by a probation officer for a period of three years following his release from prison.
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.
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Harrisburg Man Sentenced to 30 Months in Prison for Firearm OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tyler Brookin-Jones, age 24, Harrisburg, Pennsylvania, was sentenced yesterday to 30 months in federal prison by United States District Court Judge John E. Jones, III, in Harrisburg, for possession of a firearm by a convicted felon.
According to United States Attorney Peter Smith, Brookin-Jones pleaded guilty to possessing a stolen firearm in November 2015.
Brookin-Jones was indicted by a grand jury in Harrisburg in July 2015, as a result of an investigation by ATF and the Harrisburg Bureau of Police. Assistant United States Attorney Meredith A. Taylor prosecuted the case.
This case was 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.
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Harrisburg Man Indicted for Using His Tax Preparation Service to File False Tax ReturnsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that yesterday a federal grand jury in Harrisburg returned an indictment of Felix Ramon Diaz, on forty-five counts of aiding and assisting the preparation of false tax documents.
According to United States Attorney Peter Smith, Diaz, age 56, Harrisburg, was a tax preparer who owned Felix Tax Service. From 2010 through 2013, Diaz filed forty five tax returns with false and fraudulent income, deductions, and addresses in an effort to maximize income tax refunds. Diaz’s conduct resulted in approximately $100,000 in taxes due and owed the Internal Revenue Service.
The case was investigated by the Criminal Investigation Division of the Internal Revenue Service. The prosecution is assigned to Assistant United States Attorney Michael A. Consiglio.
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 three 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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Franklin County Man Federally Charged with Production of Child Pornography Using an InfantRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Waynesboro man who was previously charged by Indictment filed on March 2, 2016 for the offenses of Sexual Exploitation of a Minor was charged with additional child pornography offenses yesterday.
According to United States Attorney Peter Smith, Evan Matthew Lawbaugh, age 32, is alleged to have sexually assaulted an infant boy and recorded and distributed the video depicting such assault. He was charged with this offense in an indictment dated March 2, 2016 (Count 1). The new charges add two additional counts of sexually assaulting a four year old girl and recording the assault (Counts 2 and 3). The new indictment also charges Lawbaugh with distributing images depicting the sexual abuse of a child (Count 4) and possession of images depicting the sexual abuse of minors (Count 5) for distributing the images in Count 1 and possessing thousands of images and hundreds of videos of suspected or previously identified child pornography.
This case was investigated by the United States Postal Inspection Service, the Pennsylvania State Police and the Pennsylvania Office of the Attorney General. The case is being prosecuted by Assistant United States Attorney Daryl Bloom.
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 50 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Count I carries a mandatory term of imprisonment of 25 years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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El Salvadoran National Indicted for Assault and Hindering RemovalRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that yesterday a federal grand jury in Harrisburg indicted Jose Luis Benitez-Hernandez of hindering removal from the United States and impeding, resisting and assaulting U.S. Immigration and Customs Enforcement (ICE) Officers engaged in the performance of their duties.
According to U.S. Attorney Peter Smith, Benitez-Hernandez, a 30 year old El Salvadoran national, failed to leave the United States after being granted voluntary departure by an Immigration Judge. When he was taken into custody by ICE officers in Mechanicsburg on February 8, 2016, Benitez-Hernandez became combative, biting one of the officers on his hand and scratching another officer’s face.
The matter was investigated by U.S. Immigration and Customs Enforcement and the case is being prosecuted by Assistant U.S. Attorney Scott R. Ford.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for these offenses under federal law is 8 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Three Virginia Men and One Scranton Man Charged 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 yesterday a grand jury indicted three Virginia residents and a Scranton man for the armed robbery of the Econo Lodge, located on Kane Street in Scranton, which occurred on February 13, 2016.
According to United States Attorney Peter Smith, the indictment charges Tracy Whiting, age 24, of Newport News, Virginia; Kwa’shon Roane, age 24, of Gloucester, Virginia; Kelvin Robinson, age 24, of Newport News, Virginia, and Rodney Whiting, age 23, of Scranton; with one count of interference with commerce by robbery and aiding and abetting, one count of conspiracy to commit interference with commerce by robbery, and one count of brandishing a firearm in furtherance of a crime of violence.
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, Taylor Borough and Moosic Borough Police Departments.
Prosecution has been assigned to Assistant United States Attorney Robert J. O’Hara
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 for the robbery charges under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. The charge of brandishing a firearm carries a mandatory minimum sentence of seven years, consecutive to any other sentence.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Scranton Man Sentenced to 59 Months for Robbing PNC BankRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Scranton man was sentenced to 59 months’ imprisonment by United States District Court Judge James Munley for committing a bank robbery on July 14, 2015.
According to United States Attorney Peter Smith, Chester Williams, age 32, previously pleaded guilty to robbing the West Scranton branch of PNC bank on South Main Avenue, during which he stole $540. In the course of the bank robbery, Williams passed a threatening note to a bank teller, and used cocoa butter to conceal his face. Judge Munley ordered Williams to make restitution to PNC bank in the amount of $540.
The case was investigated by the Federal Bureau of Investigation and the Scranton Police Department. Assistant United States Attorney Phillip J. Caraballo and former Assistant United States Attorney Peter Hobart prosecuted 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.
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Inmate at United States Penitentiary at Canaan Charged with Assaulting Fellow InmateRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that yesterday a grand jury in Scranton indicted a federal inmate at the United States Penitentiary at Canaan for assaulting another inmate.
According to United States Attorney Peter Smith, the indictment charges Brandon Shields, age 33, formerly of Philadelphia, with assaulting another inmate with a homemade weapon on January 7, 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.
In this case, the maximum penalty which can be imposed under federal law is 10 years 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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Illegal Alien Indicted for Failure to DepartRead 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 an indictment yesterday charging an illegal alien with failure to depart the United States.
According to United States Attorney Peter Smith, Euphrem Kios Dohou, age 48, a native and citizen of Benin, West Africa, was charged with allegedly failing to comply with facilitating his departure from the United States after a final order of removal had been issued in September 2015.
The case was investigated by the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI). Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
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. In this case, Dohou faces up to ten years’ imprisonment and a $250,000 fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature 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.
An Indictment or Information is not evidence of guilt but simply a description of the charge made by the Grand Jury and/or United States Attorney against a defendant. A charged Defendant is presumed innocent until a jury returns a unanimous finding that the United States has proven the defendant’s guilt beyond a reasonable doubt or until the defendant has pleaded guilty to the charges.
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Federal Inmate Sentenced to 80 Months for Assaulting Fellow InmateRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Judge Robert Mariani sentenced Efrain Rodriguez, age 43, to 80 months’ imprisonment for assaulting a fellow inmate while incarcerated at the United States Penitentiary Canaan (USP Canaan) in Waymart, Pennsylvania.
According to United States Attorney Peter Smith, Rodriguez previously pleaded guilty to the assault, during which he slashed another inmate in the face with a razor blade fastened to a toothbrush. Following the attack, Rodriguez flushed the makeshift weapon down the toilet. The victim suffered gruesome slash wounds on both cheeks that required extensive suturing and resulted in permanent scars and disfigurement. Rodriguez had been serving a sentence at USP Canaan pursuant to a 2014 federal conviction for being a felon in possession of a firearm.
Judge Mariani found Rodriguez to be a career offender, in consideration of his extensive criminal history. His 80 months sentence is to run consecutive to his current sentence.
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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Fourteen Individuals Charged in Multistate ConspiracyRead 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 returned a ten-count indictment on February 24, 2016 against fourteen individuals, charging them with a multistate conspiracy to fraudulently obtain cheaper insurance for commercial bus carriers in Pennsylvania and fraudulently impeding and obstructing the proper administration and enforcement of bus safety regulations by the U.S Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA). The indictment was unsealed today following the arrests of eight of the defendants.
According to U.S. Attorney Peter Smith, the individuals charged in the indictment are:
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Pao Hua Yu, age 52, New York, NY, in custody;
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Wen (aka “When”) Zhou, age 41, Syracuse, NY, in custody;
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Ming Di (aka “De”) Yu, age 59, Wind Gap, PA, in custody;
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Shiao Wen Hsieh (aka “Cicely”), age 58, State College, PA, in custody;
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Bing Lin Pan (aka “Pan Bing Lin”), age 55, Flushing, NY, in custody;
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Ming Zhong Yu, age 35, Brooklyn, NY, in custody;
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Yalin Liu (aka “Alan”), age 50, Philadelphia, PA, in custody;
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You Guo Yang (aka “Jackie Wong”), age 43, Flushing, NY, in custody;
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To Lee (aka “Leo”), age 40, Brooklyn, NY, fugitive;
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Tom Chen (aka “Xiao Long Chen and “Xing Lu Chen”), age 53, Brooklyn, NY, fugitive;
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Tian Jian Pan (aka “Dong Sheng Zheng”), age 55, Flushing, NY, fugitive;
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Xiu Cheng Zheng (aka “Ah Sen”), age 55, Court Norcross, GA, fugitive;
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Samantha Mei (aka “Yu Hua Mei”), age 45, Brooklyn, NY, fugitive; and
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Wei Ming He (aka “Wei Ho,” “Weiming He,” “Ming Wei,” “Xue Dong”), age 47, Clemson, South Carolina, fugitive.
The indictment continues an ongoing investigation by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Bureau of Criminal Investigations of the Pennsylvania Attorney General’s Office, and the U.S. Department of Transportation, Office of Inspector General which previously resulted in July 2015 charges against eight restaurant owners and managers in the State College, Pennsylvania area who were engaged in recruiting, placing, harboring, concealing and transporting unauthorized aliens by commercial buses, vans and other vehicles to and from restaurants in the State College area, where they would work and be housed during their employment.
The indictment charges that the defendants owned bus carriers that operated out of New York City. The defendants are alleged to have conspired with each other to defraud state and federal authorities by filing to incorporate their bus carriers in Pennsylvania, falsely representing that the bus carriers were headquartered in Pennsylvania, and that their buses were located and garaged in Pennsylvania when in fact they were operating the bus carriers out of New York City. Using these fraudulent representations, the defendants obtained operating authority along with licenses, stickers and other authority indicating that the buses met federal and state safety standards.
However, in many cases, the buses used by the defendants had not been properly maintained and did not meet the safety requirements to transport travelers in interstate commerce. Inspections of buses routinely revealed unsafe and hazardous conditions on the buses, which caused them to be routinely shut down and their licenses and operating authority terminated by U.S. Department of Transportation. The defendants did not have proper maintenance programs to monitor the safety of buses. Moreover, the defendants knowingly employed drivers who had not undergone pre-employment drug tests, as required by law, and in many cases were not qualified or properly trained to drive commercial buses in interstate commerce. These unsafe and hazardous conditions were knowingly concealed from Pennsylvania and Federal authorities.
Drivers employed by the defendants would routinely operate buses for more than one company and would maintain more than one log in order to conceal their excessive hours of driving time.
When the defendants’ buses and corporations were shut down by state and federal authorities for repeated safety violations, the defendants would immediately create another shell corporation and would fraudulently use the same defective and dangerous buses to transport passengers in interstate commerce. These violations led to safety violations and accidents where passengers were injured and, in some cases, killed.
The indictment also seeks the forfeiture of all assets of the criminal organization.
“Today's operation sends a strong message that HSI and our law enforcement partners are ever vigilant against those seeking to manipulate the system to gain an unfair advantage over their competitors," said Jack Staton, acting special agent in charge of HSI Philadelphia. "The combined resources of a joint federal, state and local law enforcement operation present a formidable obstacle to any alleged criminal group attempting to undercut the many legitimate businesses that play by the rules.”
“The criminal indictments are an important step in addressing those who willfully disregard laws designed to protect all travelers on our nation’s roadways,” said FMCSA Acting Administrator T.F. Scott Darling, III. “We are proud of the rigorous enforcement of federal safety regulations by FMCSA special agents that helped lead to a multi-Agency investigation culminating in today’s action by the U.S. Attorney’s Office. We will continue to vigorously enforce safety regulations with the goal of removing unsafe commercial vehicles, drivers and carriers from our highways and roads.”
In May 2012, FMCSA announced that it had declared 26 bus operations to be imminent hazards to public safety and order to immediately shut down; evidence of criminal activity discovered by FMCSA special agents during the unprecedented year-long investigation was turned over to the U.S. Department of Transportation Office of Inspector General and to the U.S. Department of Justice leading to the criminal indictment by the U.S. Attorney’s Office.
https://www.fmcsa.dot.gov/newsroom/us-department-transportation-shuts-down-26-bus-operations-unprecedented-sweep
The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Bureau of Criminal Investigation of the Pennsylvania Attorney General’s Office, the U.S. Department of Transportation, Office of Inspector General and assisting the investigation was State College, Philadelphia and New York Police Departments, New York Department of Motor Vehicle and New York Department of Transportation. Assistant U.S. Attorneys William Behe and William Houser, along with Special Assistant U.S. Attorney Robert LaBar of the Pennsylvania Attorney General’s Office coordinated the investigation and the grand jury presentation and have been assigned to prosecute 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.
One count of conspiracy to commit mail and wire fraud carrying a maximum penalty under federal law of up to 20 years and $250,000 fine, eight counts of mail fraud carrying a maximum penalty under federal law of up to 20 years and $250,000 fine for each count and conspiracy to defraud carrying a maximum penalty of up to 5 years and a fine of up to $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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Former Harris Township Supervisor Convicted of Producing Child Pornography and Obstruction of JusticeRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Christopher G. Lee, age 66, a resident of Boalsburg, Pennsylvania, was convicted Friday of production, receipt and possession of child pornography as well as obstruction of justice. The four-day trial was held before U.S. District Court Judge Matthew W. Brann in Williamsport.
Lee is a former Harris Township Supervisor and the ex-director of the Boal Mansion Museum in Boalsburg, PA. It was because of his affiliation with the Boal Mansion Museum that Lee had access to teenage boys, who volunteered or worked at the museum as docents or tour guides. Some of these boys later became victims of his production of child pornography.
According to U.S. Attorney Peter Smith, the jury returned with the verdict of guilty of producing and receiving child pornography after approximately two hours of deliberation. The jury of six men and six women also convicted Lee of possessing images of child pornography, including images of prepubescent children under the age of 12 years old. Finally, after hearing Lee attempt to have his cousin assist him in having his cellular telephone that was in the custody of the FBI “wiped remotely” in multiple recorded phone calls, the jury convicted Lee of obstruction of justice. These counts carry enhanced penalties requiring a mandatory minimum of 20 years’ imprisonment.
Judge Brann has not scheduled a sentencing date for Lee, but Lee will remain detained pending a sentencing hearing.
This investigation was conducted by the Federal Bureau of Investigation and the State College Police Department and was prosecuted by Assistant United States Attorneys Meredith A. Taylor and Francis P. Sempa.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 30 years’ 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 Sentenced to 120 Months in Prison for Coercion and Enticement of A Minor to Engage in Sexual ActivityRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Gabriel Palmer, age 22, York, Pennsylvania, was sentenced to 120 months in prison by United States District Court Judge John E. Jones, III, in Harrisburg, for coercion and enticement of a minor to engage in sexual activity.
According to United States Attorney Peter Smith, Palmer sexually assaulted a teenage boy and received and distributed child pornography to coerce the minor to engage in sexual activity between 2013 and 2015.
Palmer was indicted by a federal grand jury in Harrisburg in May 2015, as a result of an investigation by the United States Postal Inspection Service, the Silver Spring Township Police Department, Homeland Security Investigations and the Cumberland County Forensics Team. The case was prosecuted by Assistant United States Attorney Daryl Bloom.
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Philadelphia Man Sentenced to 33 Months for Passing $17,900 in Counterfeit MoneyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Harvey Blake, age 57, of Philadelphia, Pennsylvania, was sentenced today to 33 months in prison by United States District Court Judge John E. Jones, III, in Harrisburg, for passing $17,400 in counterfeit $100 bills in four central Pennsylvania counties between October 2014 and March 2015.
Judge Jones also ordered that Blake make restitution to the victims as follows: Lowe’s - $7,600; Home Depot - $9,000; Staples - $300; Wal-Mart - $300; and Giant - $300.
According to United States Attorney Peter Smith, Blake was charged in a one count indictment in July 2015 with passing $17,400 in counterfeit $100 bills in Dauphin, Franklin, York and Cumberland Counties. The bills were used to purchase merchandise at Home Depot, Lowes and Walmart stores in the four counties. Blake pled guilty to the indictment in October 2015.
The case was investigated by the Harrisburg office of the United States Secret Service, and the police departments of Lower Paxton Township, Swatara Township, and Hampden Township, as well as the loss prevention personnel for the affected stores. Assistant United States Attorney William A. Behe prosecuted the case.
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New York Man Convicted of Computer Hacking Internet Service ProviderRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dariusz J. Prugar, age 32, of Syracuse, New York, was convicted on Friday, after a week-long trial before a federal jury in Harrisburg, Pennsylvania, of computer fraud and wire fraud. Prugar was continued on bail and no date is set for sentencing. Senior U.S. District Court Judge Sylvia H. Rambo presided over the trial.
According to United States Attorney Peter Smith, 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 secretly hacked into the business’s computer 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 to the impact the outage had. 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. The business owner testified he had the entire network rebuilt to prevent Prugar from sabotaging the business again.
The computer fraud charge related to Prugar’s unlawful intrusion to the computer network, which caused thousands of dollars in damage. The wire fraud charge related to Prugar’s attempt to cause financial loss to his former employer through the use of interstate wires.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Michael A. Consiglio and Carl D. Marchioli.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harrisburg Man Sentenced to Six Months in Prison for Defrauding the IRS of $337,000Read the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Hung Danh, age 55, Harrisburg, Pennsylvania, was sentenced to six months in prison by U.S. District Court Judge John E. Jones, III, in Harrisburg for a conspiracy to evade $337,000 in employment taxes in connection with his operation of an employee leasing business known as HD Staffing.
In addition, Danh was ordered to pay restitution to the IRS in the amount of $337,302 and serve three years supervised release. Danh was ordered to surrender to the Bureau of Prisons on March 28, 2016 to commence service of his sentence.
According to U.S. Attorney Peter Smith, Danh helped operate an employee leasing business between 2009 and 2010, known as HD Staffing. HD Staffing provided laborers to various businesses throughout the Harrisburg area and failed to withhold payroll taxes from the laborers’ wages.
Employers are required to withhold income taxes from employee wages based on the number of allowances on the employees’ W-4 Form. Employers are also required to withhold FICA taxes from their employees’ wages at the FICA tax rate and remit those payments, along with the employee’s matching FICA tax, when they file their Employer’s Quarterly Federal Income Tax Return-Form 941.
Danh admitted he conspired with two other previously convicted individuals to evade these employment taxes for HD Staffing. Danh was indicted in July 2014 along with two other individuals and remained a fugitive until he was detained by U.S. Customs authorities entering the country on July 12, 2015 at JFK airport.
On March 23, 2015, Vanny Son, age 34, of Harrisburg, was sentenced to 37 months’ imprisonment and ordered to pay $682,897 in restitution to the IRS for his role in the conspiracy. On March 24, 2015, Son Thach, age 56, of Harrisburg, was sentenced to one month imprisonment and ordered to pay $682,897 in restitution to the IRS for his role in the conspiracy.
The case was investigated by the Criminal Investigation Division of the IRS and was prosecuted by Assistant United States Attorney Bruce Brandler, Chief of the Criminal Division.
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California Man Federally Charged with Travel with Intent to Engage in Criminal Sexual ConductRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Stephen Chang, age 27, from Los Angeles, California was arrested at the Harrisburg International Airport on Saturday, March 5, 2016 and charged with three counts of travel with intent to engage in criminal sexual conduct.
According to United States Attorney Peter Smith, Chang allegedly began communicating with a minor female when she was only 13 years old. The communications began in August 2014 and continued until the day of his arrest. During these conversations, Chang enticed the juvenile to produce and send sexual exploitative images. Chang also traveled from Los Angeles, California to Elizabethtown, Pennsylvania on December 12, 2014, October 1, 2015 and March 4, 2016, to engage in sexual conduct with the minor. On January 29, 2016, police were notified by the National Center for Missing and Exploited Children in a CyberTipline report about Facebook communications between the minor residing in Elizabethtown, Pennsylvania and an adult male in California, later identified as Stephen Chang.
Chang appeared before U.S. Magistrate Judge Susan E. Schwab today for his initial appearance and preliminary hearing. Judge Schwab found probable cause to conclude that Chang traveled to Pennsylvania to engage in sexual conduct with a minor. Chang was ordered temporarily detained pending a detention hearing which is scheduled for March 10, 2016.
This case was investigated by the Federal Bureau of Investigation, the Lancaster County District Attorney’s Office, the Elizabethtown Police Department, the Northwest Regional Police Department, the Dauphin County District Attorney’s Office and the Harrisburg International Airport Police and demonstrates an excellent collaborative investigative effort to remove dangerous sexual predators from the street and protect the communities’ children. The federal charges are being prosecuted by Assistant United States Attorney Daryl Bloom.
If you have any information related to this case or believe you or someone you know may be a victim, you are encouraged to contact the Federal Bureau of Investigation at 717-232-8686.
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."
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 30 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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Wilkes-Barre Township Man Charged with Theft of MailRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Joseph Stefanski, age 35, Wilkes-Barre, was indicted by a federal grand jury on March 1, 2016 in Scranton for theft of mail. The indictment was unsealed today following his arrest.
According to United States Attorney Peter Smith, the indictment charges Stefanski with theft of mail between December 2014 and February 2015. The alleged thefts were discovered after postal customers in the areas of Dallas, Shavertown, Plains, Trucksville and Luzerne Township, Luzerne County, complained about mail that was not received and/or mail that was received with contents missing. Some of the missing contents included cash, gift cards, and lottery tickets.
Further investigation revealed that Stefanski, who was employed by a trucking company hired to transport mail from one post office to another, had allegedly removed mail and its contents from mail containers in his truck.
The case is being investigated by the United States Postal Service, Office of Postal Inspection Services, and is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
Anyone who believes they may be a victim or have further information should contact Postal Inspector David Heinke, United States Postal Service, at 877-876-2455
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 5 years 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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Tennessee Man Indicted for Veterans Unemployment Compensation Benefit FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Tennessee man was indicted and arrested for fraudulently obtaining $7,319 in Veterans’ unemployment compensation benefits from the Pennsylvania Department of Labor & Industry.
According to U.S. Attorney Peter Smith, Earl Lafayete Hall, III, age 35 of Arlington, Tennessee, is charged with 12 Counts of Mail Fraud and 10 Counts of Money Laundering. According to the Indictment filed on March 2, 2016, Hall applied for Veteran’s unemployment compensation benefits under the false name and identity of another individual. The bogus application was submitted to the Pennsylvania Department of Labor & Industry in Harrisburg. As a result, the Department mailed Hall unemployment compensation benefit checks totaling $7,319 between July and November of 2014.
The Indictment also alleges the benefit checks were deposited into a bank account Hall controlled in Illinois. Thereafter, $4,900 in cash was removed from the account. The cash withdrawals form the basis of the Money Laundering counts in the Indictment.
The Indictment also charges Hall with one count of Aggravated Identity Theft.
The indictment was unsealed yesterday following Hall’s arrest by federal agents in Arlington. Hall appeared before a U.S. Magistrate Judge in Memphis, Tennessee for a bail hearing and was released on a $5,000 unsecured bail.
Hall received the benefits under the Unemployment Compensation for Ex-Service Members Program, which is commonly known as “The UCX Program.” The UCX Program is a federally funded U.S. Department of Labor program administered by the 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. There is no payroll deduction for UCX unemployment insurance protection.
The investigation is being conducted by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering & 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 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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Scranton Man Sentenced to 10 Years in Prison for Sex Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jimmy Cantelmo, age 27, Scranton, was sentenced today to 10 years in prison by Senior U.S. District Court Judge James M. Munley.
According to United States Attorney Peter Smith, Cantelmo previously pleaded guilty to conspiracy to commit sex trafficking of a minor. Cantelmo admitted to conspiring with others to commit the crime during February through August 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; and serving as security or “bodyguards” at the motels where the commercial sex acts took place.
Cantelmo was indicted by a federal grand jury in April 2015, as a result of an investigation by Homeland Security Investigations, the Pennsylvania State Police, and the Lackawanna County District Attorneys Office. Four persons have been charged in connection with the investigation. Sean Cantelmo, Jimmy Cantelmo’s brother, previously pleaded guilty and was sentenced to 151 months in prison. Justin Strait pleaded guilty and is awaiting sentencing. A fourth defendant is awaiting trial.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
Judge Munley also ordered that Cantelmo serve five years on supervised release following his prison sentence. Cantelmo will also have to comply with the registration requirements of the Sex Offender Registration and Notification Act when released from prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Chambersburg Woman Sentenced to 36 Months in Prison for Extortionate Attempt to Shut Down A Rival Tax Preparation BusinessRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Maria Colvard, age 50, of Chambersburg, was sentenced today to 36 months in prison by United States District Court Chief Judge Christopher C. Conner in Harrisburg, for extortion in connection with an attempt to shut down a rival tax preparation business.
Colvard was convicted in June 2015 after a four-day jury trial on two counts of extortion and one count of aiding the impersonation of an employee of the United States.
According to U.S. Attorney Peter Smith, between February and May 2013, Colvard convinced an employee at Tax Max LLC, a tax preparation service owned by Colvard in Chambersburg and Hanover, Pennsylvania, to claim to be a criminal investigator with the Internal Revenue Service to shut down the rival business, known as Christina’s Tax Service, also located in Chambersburg. The employee, Merarys Paulino, then claimed to be an IRS agent and demanded money from Christina’s Tax Service as well as its client list. Paulino previously entered a guilty plea to impersonating an IRS agent.
Colvard also faces deportation as a non-citizen.
This case was investigated by the United States Treasury Inspector General for Tax Administration (TIGTA) and was prosecuted by Assistant United States Attorney Daryl F. Bloom.
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19 Members of Heroin Trafficking Conspiracy IndictedRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Williamsport returned a 13-count superseding indictment on February 11, 2016 charging 19 individuals with conspiracy to distribute heroin, crack cocaine, and the opiate buprenorphine, known as Suboxone. The indictment was unsealed today following the arrests of the defendants.
According to U.S. Attorney Peter Smith, the indictment alleges that the following men and women conspired to distribute heroin, crack cocaine, and buprenorphine to a network of drug users and sellers along the Interstate 80 corridor between Bloomsburg and Williamsport from August 14, 2014 through the date of the indictment:
Names Age Town/State
Kalif English 27 Philadelphia, PA
Corey Hughes 26 Williamsport, PA
Sharonda Walker 24 Upper Darby, PA
Troy Brown 39 Yeadon, PA
Shawn Hayman 18 Williamsport, PA
Donald Avery 21 Philadelphia, PA
Paris Watkins, Jr. 24 Philadelphia, PA
Tayza Brown 18 Williamsport, PA
Naquann Lee 19 Williamsport, PA
Taiquan Falana 20 Philadelphia, PA
Keith Harding 35 Philadelphia, PA
Shawn Gambrell 27 Philadelphia, PA
Omar Brown 32 Philadelphia, PA
Timothy Moses 34 Philadelphia, PA
Marissa Copen 25 Linden, PA
Alkeisha Edwards 20 Philadelphia, PA
Chantel McFarlin 32 Philadelphia, PA
Lamont Johnson 23 Philadelphia, PA
Randy Thompson 34 Philadelphia, PA
In addition to the conspiracy charge, the indictment also charges that the defendants distributed and possessed with intent to distribute multiple bags of heroin and crack cocaine and Suboxone, or buprenorphine, on various dates during the period of the conspiracy. The indictment also charges Troy Brown with possession of a firearm by a convicted felon.
According to the indictment, during the period from August 2014 to the present, the conspirators obtained heroin and other controlled substances in Philadelphia and transported the drugs to the Bloomsburg and Williamsport areas for distribution and sale. The indictment alleges that they utilized rental vehicles and motel rooms to facilitate the distribution of heroin and that they conducted drug trafficking activities using cell phones. In addition, according to the indictment, the conspirators bought and exchanged firearms for heroin and other controlled substances. In the forfeiture allegation, the indictment identifies cash, firearms, and a property at 810 Rhodes Alley in Williamsport that are subject to forfeiture as criminal proceeds and means of facilitating the drug distribution and conspiracy charges.
The investigation was conducted by the Federal Bureau of Investigation with the assistance of the Pennsylvania State Police, the Old Lycoming Police Department, the Williamsport Bureau of Police, the Lycoming, Northumberland-Montour and Columbia County Drug Task Forces, and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney George J. Rocktashel has been assigned to the prosecution of this matter.
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 sentencing judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is imprisonment for life, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the sentencing judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two New York Men Charged with Heroin Trafficking in Monroe CountyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Federal Grand Jury in Scranton returned an indictment yesterday charging Jose Mendoza, age 38, and Edwin Aguilar, age 25, with conspiracy to distribute heroin and the possession of heroin with the intent to distribute.
According to U.S. Attorney Peter Smith, the indictment alleges that the crimes occurred on August 31, 2015, in Monroe County, Pennsylvania. Both individuals are New York residents
The investigation was conducted by the Pennsylvania State Police and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Prosecution is assigned to Assistant U.S. Attorneys John C. Gurganus, Jr. and Phillip Caraballo.
This case is 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 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 each offense under federal law is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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State Prisoner Charged with Mailing A Threatening Letter to A Lancaster County JudgeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an inmate at a state prison was charged yesterday by a federal grand jury in Scranton with mailing a threatenting letter to a Lancaster County Judge.
According to United States Attorney Peter Smith, the defendant, Joshua Keziah, age 27, an inmate at the State Correctional Institution in Frackville, Schuylkill County, allegedly mailed the letter in October of 2015 from the prison to the Lancaster County Courthouse threatening to kill the President Judge.
The charge stems from an investigation by the United States Postal Inspection Service and the Lancaster County Police Department. Assistant United States Attorney Evan Gotlob 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 five years 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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Luzerne County Man Sentenced to 14 Years in Prison for Role in Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Luzerne County man was sentenced today by Senior U.S. District Court Judge James M. Munley in Scranton, to 14 years in prison for participating in a heroin trafficking conspiracy that operated in Luzerne County during February through October 2014.
According to United States Attorney Peter Smith, the defendant, Desmond Mercer, age 28, previously pleaded guilty to conspiring with others from Luzerne County, New Jersey, and Alabama, to distribute heroin to customers in the Luzerne County area. Mercer in his plea acknowledged distributing more than 700 grams of heroin and playing a leadership role in the conspiracy. During part of the conspiracy, Mercer ran the drug operation while an inmate at the Luzerne County Prison.
Mercer was indicted by a federal grand jury in Scranton in October 2014, as a result of an investigation by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Kingston Police, Plymouth Police and the Luzerne County District Attorney’s Office. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
All six defendants charged in the conspiracy have pleaded guilty. Co-defendant Shaliek Stroman, another Luzerne County resident, was sentenced by Judge Munley to more than 12 years in prison for his role in the conspiracy. New Jersey resident Antuan Jamison was sentenced to five years in prison. Corey Wortham, from Alabama, who played a minor role in the conspiracy, was sentenced to 18 months in prison. Co-defendants Shaquan Murphy and Megan Fox are awaiting sentencing in the case.
Judge Munley also ordered Mercer to serve three years on supervised release following his prison sentence. Mercer was also ordered to forfeit more than $7000 in cash and a vehicle seized by agents during the investigation.
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.
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Harrisburg Man Pleads Guilty to Firearm OffenseRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Harrisburg man indicted by a federal grand jury in Harrisburg on firearm charges has pleaded guilty today to being a felon illegally in possession of a firearm.
According to United States Attorney Peter Smith, Christopher Fleisher, age 35, was previously charged in an indictment with being a felon in possession of a firearm and with possessing a stolen firearm. The indictment alleged the offenses occurred on June 4, 2015 in Harrisburg and involved a stolen .38 caliber Smith and Wesson handgun. Fleisher agreed to plead guilty to the felon in possession charge pursuant to a plea agreement with the government.
The case was investigated by the 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 is 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.
A sentence following a finding of guilt or plea of guilty 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 crime of being a felon in possession of a firearm is 10 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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Franklin County Man Federally Charged with Production of Child Pornography Using an InfantRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Waynesboro man has been indicted by a federal grand jury in Harrisburg for the offenses of Sexual Exploitation of a Minor.
According to United States Attorney Peter Smith, Evan Matthew Lawbaugh, age 32, is alleged to have sexually assaulted an infant in December 2015 and recorded and distributed the video depicting such assault.
This case was investigated by the United States Postal Inspection Service, the Pennsylvania State Police and the Pennsylvania Office of Attorney General. The case is being prosecuted by Assistant United States Attorney Daryl Bloom.
If you have any information related to this case or believe you or someone you know may be a victim, you are encouraged to contact Postal Inspector Michael Corricelli of the U.S. Postal Inspection Service at 717-257-5581.
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 this offense is 50 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Count I carries a mandatory term of imprisonment of 25 years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Woman Pleads Guilty to Monroe County-Based Sex Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a South Carolina woman who resided in the Stroudsburg area at the time of the offense, pleaded guilty today before U.S. District Court Judge Malachy E. Mannion in Scranton, to participating in a sex trafficking conspiracy in which young women were threatened, forced and coerced into engaging in prostitution in northeastern Pennsylvania.
According to United States Attorney Peter Smith, the defendant, Selena Bayer-Davis, age 21, admitted to conspiring with others to commit sex trafficking crimes between 2012 and 2014.
Bayer-Davis 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.
The indictment alleges that Bayer-Davis and her co-defendants joined and 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 indictment further alleges that some 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 are hotels/motels to work as prostitutes. Bayer-Davis admitted that she and others used threats, force, and intimidation to coerce females to engage in prostitution.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Bayer-Davis faces a mandatory minimum sentence of 15-years in prison and a possible life sentence for her participation in the sex trafficking of others.
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 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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Hazelton Man Indicted for Stealing Firearms from Local Sporting Goods StoreRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Hazelton man has been indicted by a federal grand jury in Scranton on conspiracy and firearm offenses.
According to United States Attorney Peter Smith, the indictment charges Stefan Rease, age 19, with stealing firearms from Bob’s Sporting Goods, a federally licensed firearms dealer in Hazleton, in December 2015.
The charges stem from a joint investigation between the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Hazelton Police Department which alleges that the defendant and co-conspirators broke into the establishment and stole four firearms.
The investigation was conducted by the ATF, working in conjunction with the Hazelton Police Department. Prosecution is assigned to Assistant United States Attorney Evan Gotlob.
This case was brought as part of the Violent Crime Reduction Partnership (“VRCP”), 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 VRCP 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 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 all charges under federal law is up to 25 years imprisonment, a term of supervised release following imprisonment, and $750,000 in fines. Under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Owner of Internet Sports Memorabilia Businesses Pleads Guilty to $2.5 Million Fraud SchemeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former owner of a group of internet sports memorabilia businesses pleaded guilty before United States District Court Judge John E. Jones, III, in Harrisburg, to a $2.5 million dollar fraud scheme.
The Criminal Information was filed in January 2016 pursuant to a plea agreement entered into between the United States and Shores. The agreement, which is subject to the approval by the court, includes joint recommendations relating to loss amounts, forfeiture allegations, and an agreement to pay restitution as determined by the court. Judge Jones ordered a presentence investigation to be completed, and no sentencing date has been scheduled.
According to United States Attorney Peter Smith, Joshua Aaron Shores, age 41, of Bel Air, Maryland and also of Ocean City, Maryland, pleaded guilty to Wire Fraud based upon Shores’ five-year scheme, between 2008 and 2013, to obtain money and property by dealing in counterfeit and fraudulent sports memorabilia. Shores created, owned, and operated internet businesses under the names of Dealakhan, LLC, Stadium Authentics, Autograph Showcase, Sunset Beach, End Game Sports, Authenticgraph, and others with facilities in York County, Pennsylvania and in Maryland, and used the businesses to traffic in counterfeit and fraudulent sports memorabilia.
Shores represented addresses of mailbox receiving services to customers as his business address, created and registered PayPal and Amazon.com accounts in his name and in the names of others to receive payments from customers, purchased counterfeit sports jerseys in bulk from China and affixed fraudulent autographs to them representing them to be authentic autographs of well-known athletes and sports figures, and also using fake certificates of authenticity. According to the Criminal Information, Shores unlawfully obtained approximately $2.5 million dollars from buyers of the fraudulent items.
The Criminal Information also seeks forfeiture of real property located in Ocean City, Maryland, U.S. currency in the approximate amount of $140,000, and an additional amount of $26,000 in proceeds related to a Harley-Davidson motorcycle and a sports utility vehicle. The government will also seek restitution for victims of the fraud scheme.
The investigation was conducted by the Federal Bureau of Investigation and Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Michelle Olshefski.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The charge of Wire Fraud is punishable by up to 20 years 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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New Cumberland Defense Depot Worker Indicted on Indecent Sexual Contact ChargesRead the Press Release
HARRISBURG - The U.S. Attorney’s Office for the Middle District of Pennsylvania announced today that a former worker at the DLA Distribution Center Susquehanna in New Cumberland was indicted yesterday by a federal grand jury in Harrisburg on charges he had illegal and unwanted sexual contact with three co-workers.
According to United States Attorney Peter Smith, Ricardo Reyes, age 35, of Harrisburg, Pennsylvania was an employee at the Defense Distribution Center Susquehanna in New Cumberland and in June of 2015, Reyes allegedly had indecent, unwanted sexual contact with three women, identified by the grand jury only by their initials.
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 a 2 year term of imprisonment on each count, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
The case was investigated by the DLA Office of Inspector General. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.
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New York Man Sentenced to Life Plus 20 Years for 2012 White Jewelers RobberyRead the Press Release
HARRISBURG-The United States Attorney's Office for the Middle District of Pennsylvania announced that Jesse Brewer, 41, of Jamaica, New York was sentenced today to life imprisonment plus 20 years by the Honorable William W. Caldwell for Brewer’s convictions of robbery and firearms offenses following a September 2015 jury trial.
According to United States Attorney Peter Smith, the jury convicted Brewer of robbing White Jewelers in York, PA with a firearm on July 12, 2012. Brewer, along with Jamell Smallwood and Timothy Forbes, robbed the store of more than fifty Rolex watches valued at over $500,000. In the course of the robbery, Brewer shot the owner of the store, permanently disabling him. Co-defendant Jamell Smallwood of Allentown, Pennsylvania pleaded guilty previously and was sentenced to 17 years for his role in this robbery. Timothy Forbes of Allentown, Pennsylvania pleaded guilty and is awaiting sentencing.
This case was investigated by the Federal Bureau of Investigation and the York Area Regional Police Department, with assistance from the Allentown Police Department and the New York City Police Department. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
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Former Chief Operating Officer and Co-Owner of Schuylkill Products Resentenced in Largest Disadvantaged Business Enterprise Fraud in Nation’s HistoryRead the Press Release
HARRISBURG-Ernest G. Fink, Jr., 70, of Orwigsburg, Pennsylvania, the former Chief Operating Officer and co-owner of Schuylkill Products Inc., was sentenced in federal court in Harrisburg, Pennsylvania, today to 41 months’ imprisonment and ordered to pay fines totaling $25,100 for his role in a massive conspiracy to defraud the Disadvantage Enterprise (DBE) program, announced Peter Smith, 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 Disadvantaged Business Enterprise (DBE) fraud in the nation’s history.
On July 14, 2014, Fink was sentenced to 51 months’ imprisonment and ordered to pay fines totaling $25,100 for his role in the offense.
That sentence was vacated by the U.S. Court of Appeals for the Third Circuit on September 30, 2015 based on the findings of an incorrect calculation of the loss amount under the Sentencing Guidelines. Today’s sentence was based on a revised loss amount of $1,037, 828.61, which represents the amount of profit diverted from legitimate DBE’s as a result of the scheme. Previously, the loss was calculated based on the total amount of DBE contracts SPI received as a result of the scheme.
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. Assistant U.S. Attorney Bruce Brandler handled the prosecution.
Fink was Vice-President, Chief Operating Officer and co- owner of Schuylkill Products Inc. (SPI) and its wholly-owned subsidiary CDS Engineers Inc. (CDS), until April 2009 when SPI was sold. SPI, based in Cressona, Pennsylvania, manufactured concrete bridge beams used on highway construction projects in Pennsylvania and surrounding states. CDS was SPI’s erection division and installed SPI’s bridge beams as well as other suppliers’ products on highways in Pennsylvania and surrounding states. The conspiracy defrauded USDOT, the Pennsylvania Department of Transportation (PennDOT) and the Southeastern Pennsylvania Transportation Authority (SEPTA) in connection with the federal government’s DBE program.
USDOT provides billions of dollars a year to states and municipalities for the construction and maintenance of highways and mass transit systems on the condition that small businesses, owned and operated by disadvantaged individuals, receive a fair share of these federal funds. In Pennsylvania, PennDOT and SEPTA receive these funds and requires contractors to award a percentage of their subcontracts to eligible DBE’s.
Fink and his co- conspirators executed the scheme by using a small Connecticut highway construction firm known as Marikina Construction Corporation as a front company to obtain these lucrative government contracts.
Marikina was owned by Romeo P. Cruz of West Haven, Connecticut, a naturalized American citizen born in the Philippines. Marikina was certified by PennDOT and SEPTA as a DBE. Although Marikina received the DBE contracts on paper, all the work was performed by SPI and CDS personnel, and SPI and CDS received all the profits. In exchange for letting SPI and CDS use its name, Marikina was paid a small fixed-fee, set by SPI.
SPI and CDS personnel pretended to be Marikina employees by using Marikina business cards, email addresses, stationery, and signature stamps, as well as using magnetic placards and decals bearing the Marikina logo to cover up SPI and CDS logos on SPI and CDS vehicles.
In 2014, four other former executives associated with SPI, CDS and Marikina were sentenced for their roles in the scheme.
Joseph W. Nagle, the former President and co-owner of SPI, was found guilty after a four week trial of 26 charges and was sentenced to 84 months imprisonment and ordered to pay fines totaling $27,600. Nagle’s conviction was affirmed by the U.S. Court of Appeals for the Third Circuit on September 30, 2015, but his sentence was vacated along with Fink’s for the same reasons. Nagle has not been resentenced yet. He has a petition for writ of certiorari pending with the U.S. Supreme Court regarding the Third Circuit’s decision to affirm his conviction.
Romeo P. Cruz, the former owner of Marikina, was sentenced to 33 months’ imprisonment, must pay $119 million in restitution and serve two years’ supervised release.
Timothy G. Hubler, of Ashland, Pennsylvania, CDS’ former Vice-President in charge of field operations, was sentenced to 33 months’ imprisonment, pay $119 million in restitution and serve two years’ supervised release.
Dennis F. Campbell, of Orwigsburg, Pennsylvania, SPI’s former Vice-President in charge of sales and marketing was sentenced to 24 months’ imprisonment, $119 million in restitution and serve two years’ supervised release.
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York City Man Sentenced to 10 Years in Prison on Drug Trafficking ChargesRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announces that a York man was sentenced to 10 years in prison today by Chief U.S. District Court Judge Christopher C. Conner in Harrisburg, for drug trafficking.
According to United States Attorney Peter Smith, the defendant, Charlie Rivera, age 26, previously pleaded guilty to possessing cocaine, crack cocaine, heroin, and oxycodone when arrested by the Pennsylvania State Police and York City Police on December 12, 2012. When arrested, he was also found in possession of a firearm. Rivera was wanted at the time of his arrest for failing to report to prison to serve a seven year sentence in another drug trafficking case.
Rivera was indicted by a federal grand jury in Harrisburg in January 2013, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and the York City Police Department.
Chief Judge Conner also ordered Rivera to be placed on three years of supervised release following his prison sentence. The court also directed that his sentence be served consecutively to the 7-14 years sentence he is currently serving.
Assistant United States Attorney Michael A. Consiglio prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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Northeast Pennsylvania Check Casher Charged in Stolen Identity Refund Fraud SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Diego Rojas, age 42, of Dunmore, Pennsylvania, was indicted on January 19, 2016 by a federal grand jury in Scranton for conspiracy to make false claims against the government. The case was unsealed on February 19, 2016 following Rojas’ initial appearance before U.S. Magistrate Judge Joseph F. Saporito, Jr.
Rojas owned and operated Dunmore Cash Checking, a check-cashing, tax preparation and money transfer business in Dunmore. In 2013 Rojas deposited more than 350 United States treasury checks, at least 250 of which were identified as Stolen Identitiy Refund Fraud (SIRF) checks. The approximate value of these checks was $1,600,000. Each of these checks was deposited into a bank account that Rojas owned under the name of Dunmore Cash Checking between January and November 2013.
According to United States Attorney Smith, the prosecution of fraudulent tax refund schemes that rob tax payers as well as the government is a high priority in this district.
The Department of Justice views the prosecution of Stolen Identity Refund Fraud, or “SIRF,” as vital. These schemes disrupt the orderly administration of the income tax system for hundreds of thousands of law abiding taxpayers nationwide and have cost the United States Treasury billions of dollars. SIRF crimes are often perpetrated by criminal enterprises with key individuals at all stages of the scheme: those who steal Social Security Numbers and other personal identifying information, those who file false returns with the Internal Revenue Service, those, including check cashers, who facilitate obtaining the refunds, and those who promote the schemes. These criminal enterprises exploit the highly automated systems for storing personal information, preparing and filing tax returns electronically, and generating income tax refunds quickly—often in the form of electronic payments. Everyone with a Social Security Number is potentially vulnerable to having his or her identity stolen. The IRS estimates that during the 2013 filing season alone, over 5 million tax returns were filed using stolen identities, claiming approximately $30 billion in refunds.
The charges in the present case are the result of ongoing investigations by the Scranton Office of the Internal Revenue Service, Criminal Investigation, with assistance from the Pennsylvania State Police, the Hazelton, Taylor, Dickson City, Dunmore and Olyphant Police Departments, and the Lackawanna and Luzerne County District Attorneys’ Offices. The case is assigned to Assistant United States Attorney Evan Gotlob for prosecution.
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 20 years imprisonment, a term of supervised release following imprisonment, and a $500,000 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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Former U.S. Navy Contractor Pleads Guilty to False Statement ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Navy Contractor has pleaded guilty to submitting a False Statement to the government in connection with $4.4 million contract to renovate warehouses at the Naval Support Facility in Mechanicsburg, PA .
According to United States Attorney Peter Smith, Andrew Persuad, age 43, of Mt Holly Springs, Pennsylvania, was indicted in October 2015. Persuad pleaded guilty to one count of false statements before Senior U.S. District Court Judge Sylvia Rambo.
The Indictment alleged that Persaud was the President and Corporate Director of Persuad Companies, Inc., a Virginia and Maryland based construction company that entered into a $4.4 million contract in 2011 to renovate warehouses at the Naval Support Activity (NSA) facility in Mechanicsburg.
Persuad hired approximately 17 sub-contractors to work on the project which began in May of 2012. In June and July of 2012 Persuad submitted invoices to the Navy for progress payments. In the documents Persuad attached signed Certifications stating that all of his subcontractors had been paid for their work. Relying on Persuad’s representations, the Navy paid Persaud $1,206,470 between June and August of 2012.
However, by September of 2012 most of the subcontractors had walked off the job site and the Navy terminated Persaud’s contract after it learned, contrary to Persuad’s Certifications, that none of the subcontractors had received any payment for their work on the project.
The Navy had required Persuad to purchase a materials/labor bond prior to his first contract draw, the premium for which cost Persuad $53,539. As a result, the subcontractors filed claims and eventually received payments from the bond carrier for their work totaling $1,281,753.
Under the terms of a plea agreement with the government Persaud has agreed that the loss suffered by the victims in the case is $1,206,470. Persaud has also agreed to make restitution in this amount and has agreed to forfeit the sum of $1,206,470.
The offense is punishable by a maximum of 5 years imprisonment and a $250,000 fine. No date has been set as yet for sentencing.
The case was investigated by the Inspector General’s Offices of the U.S. Navy and Department of Defense, and 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.
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 Convicted Harrisburg Man Charged with Possession of A FirearmRead 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 returned an indictment on February 3, 2016 charging Dane Burnell Merritt, age 52, with possession of a firearm after having been previously convicted of a felony offense.
According to United States Attorney Peter Smith, the indictment was unsealed February 19, 2016 following Merritt’s initial appearance before U.S. Chief Magistrate Judge Martin C. Carlson. The case arose as a result of an arrest of Merritt by Harrisburg Police in October of 2015.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Police Department. Prosecution has been assigned to Assistant U.S. Attorney Chelsea Schinnour.
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 10 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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Wilkes-Barre Resident Pleads Guilty to Federal Charge of Failing to Comply with Sex Offender Registration RequirementsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Wilkes-Barre resident pleaded guilty yesterday in Scranton, before United States District Judge James M. Munley, to failing to comply with sex offender registration requirements.
According to United States Attorney Peter Smith, Joseph Brant, age 56, pleaded guilty to being a person required to comply with the Sex Offender Registration and Notification Act by reason of a sexual abuse conviction under the laws of the State of New York, but who failed to do so upon establishing a residence in Pennsylvania.
Brant was indicted by a federal grand jury in July 2015. The government filed a plea agreement in the case. The indictment charged that Brant established a residence in Wilkes-Barre, but failed to register or update his sex offender registration information in Pennsylvania as required by the law.
The charges are the result of an investigation by the Scranton and New York offices of the United States Marshals Service. The case is being prosecuted by Assistant United States Attorney Michelle Olshefski.
The maximum possible penalties for the violation include 10 years’ incarceration, 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 Women Sentenced for Role in Bath Salts ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Treiu Thuy Duong, age 37, of Sarasota, Florida, and Maura Kathio, age 27, of Yatesville, Pennsylvania, were sentenced today by U.S. District Court Judge Malachy E. Mannion in Scranton, for drug related offenses.
According to United States Attorney Peter Smith, Duong, who resided in Texas at the time of her arrest, was sentenced today to serve 70 months in prison and ordered to forfeit her interest in more than $750,000 in assets for her role in a conspiracy to distribute and possess with intent to distribute alpha-pvp, commonly known as “bath salts.”
Duong admitted to conspiring with others to distribute alpha-pvp to customers in at least 32 states, including Pennsylvania, over various web sites during 2011 through March 2014.
Treiu Thuy Duong was indicted by a federal grand jury in March 2014.
Judge Mannion ordered the defendant to forfeit to the government her interest in a residence in Texas valued at approximately $300,000, coins valued at more than $260,000, four bank accounts containing over $200,000, two vehicles, over $7000 in cash and more than $17,000 in uncashed money orders, and two firearms. Duong must also spend three years on supervised release following her prison sentence.
Kathio was sentenced to 18 months in prison for her role in a drug conspiracy that distributed alpha-pvp in 2012-2013 in the Luzerne County area. Kathio, previously pleaded guilty to conspiracy to distribute alpha-pvp. Kathio admitted to participating in the West Pittston-based drug conspiracy and to distributing 150 grams of alpha-pvp, a controlled substance analogue.
Kathio was indicted by a federal grand jury in Scranton in August 2014.
Judge Mannion also ordered Kathio to be placed on three years of supervised release following her prison sentence.
Eleven persons have been charged as participants in the conspiracy which involved wholesale suppliers of alpha-pvp based in Texas, and retail distributors of the drug in Luzerne County. All eleven suspects have entered guilty pleas in the case.
The investigation was conducted by agents of the Department of Homeland Security, the Drug Enforcement Administration, United States Postal Inspectors, the Pennsylvania State Police, and West Pittston Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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Shippensburg Woman Sentenced to 120 Months in Federal Prison for Heroin Trafficking Resulting in DeathRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ashley Gries, age 21, of Shippensburg, Pennsylvania, was sentenced yesterday by U.S. District Court Chief Judge Christopher C. Conner to 120 months incarceration for heroin trafficking that resulted in the death of a local young man.
Gries pleaded guilty on August 10, 2015 to conspiring with co-defendants Danny Forrester, Gabriel Stouffer, and Eugene Stallings, Jr. to distribute heroin that resulted in the death of Kyle Golter, a 21 year old resident of Newburg, Pennsylvania. Gries has been detained since her arrest on March 5, 2014. Forrester, and Stouffer have pleaded guilty for their roles in this drug trafficking organization. Stallings was convicted on February 5, 2016 after a jury trial. Chief Judge Conner previously sentenced Forrester to 180 months incarceration. Stouffer and Stallings have not yet been sentenced.
According to United States Attorney Peter Smith, Gries, Forrester and Stouffer traveled from the Shippensburg area to purchase heroin from Stallings in Baltimore, Maryland, and then engaged in heroin trafficking in Franklin and Cumberland County. Heroin obtained from Stallings led to the death of 21 year old Kyle Golter in Newburg on February 7, 2014. Franklin County Coroner Jeffrey R. Conner determined that the cause of Golter’s death was the result of heroin toxicity.
This case was investigated by the Drug Enforcement Administration, the Pennsylvania State Police, the Shippensburg Police Department, and the Cumberland County Drug Task Force. The case was prosecuted by Assistant United States Attorney Meredith A. Taylor.
This case is 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.
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Perry County Man Sentenced to 77 Months in Prison for Federal Firearms ViolationsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that David Auman, age 37, of Liverpool, was sentenced yesterday to 77 months in prison by U.S. District Court Judge John E. Jones, III, after pleading guilty to being a convicted felon in possession of a firearm.
According to U.S. Attorney Peter Smith, Auman was indicted by a federal grand jury in Harrisburg in May 2015, as a result of an investigation by the Harrisburg Police Department, the Pennsylvania State Police and the Harrisburg Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney William A. Behe prosecuted the case.
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Penn National Racing Official Sentenced to 4 Months in Prison for Fraud in Race Rigging SchemeRead the Press Release
HARRISBURG - The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that a racing official at Penn National Race track in Grantville, was sentenced to 4 months in prison today by Chief U.S. District Court Judge Christopher C. Conner.
According to United States Attorney Peter Smith, Craig Lytel, age 61, of Hershey, Pennsylvania was an employee of the Hollywood Casino at Penn National Race Track (Penn National) who served as a racing official at the track. Lytel pled guilty in September 2015 to wire fraud for accepting money and other gratuities in exchange for providing inside information to trainers on which races to enter their horses in order to have a better chance at winning. On one occasion Lytel was the recipient of an interstate wire transfer of $1,000 from a bank in Kentucky to Lytel’s bank in Pennsylvania in exchange for providing inside information on the makeup of horse races at Penn National. Lytel admitted to accepting cash, dinners, gift cards and golf outings in exchange for the information thereby depriving his employer of his honest service and defrauding other horsemen and the betting public. The identities of the trainers who paid Lytel for the information was not disclosed by the government as the investigation is ongoing.
Lytel was sentenced to serve 4 months in a federal prison and was ordered to surrender at the institution selected by the Bureau of Prisons by 10:00 a.m. on March 23, 2016.
The case was investigated by the Harrisburg Resident Office of the Federal Bureau of Investigation and the Pennsylvania Horse Racing Commission as part of an ongoing investigation of racing at Penn National.
Prosecution of the case was handled by Assistant United States Attorney William A. Behe.
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Two Men Sentenced for Involvement in Scheme to Distribute Misbranded DrugsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Almuntasser “Alex” Hbaiu, age 34, and Michael Kang, age 46, both of Los Angeles, California, were sentenced on February 11, 2016 by U.S. District Court for the Central District of California Judge John A. Kronstadt
Judge Kronstadt sentenced Hbaiu to 24 months in prison for distribution of misbranded drugs, and structuring financial transactions with proceeds from criminal activity of more than $10,000. Hbaiu was ordered to pay a $60,000 fine and to forfeit his interest in the house at 1806 Meadow Ridge Drive, Hummelstown, Pennsylvania, $20,000 cash and the contents of two bank accounts. Hbaiu also agreed to the destruction of all seized sexual enhancement supplements.
Kang was sentenced to one month in prison, five months home confinement and a $5,000 fine for distribution of misbranded drugs.
Criminal charges were originally brought against Hbaiu in the Middle District of Pennsylvania in March 2013 before U.S. District Court Judge Sylvia H. Rambo and were later transferred to California.
According to the United States Attorney’ Office, Hbaiu was involved in companies that sold drugs including “Mojo Nights,” “Libigrow” and “Blue Diamond” marketed as “all natural” versions of drugs such as Viagra. In fact, the drugs contained sildenafil citrate, the active ingredient in Viagra, and Tadalafil, the active ingredient in Cialis. The misbranded “performance enhancers” products were sold on internet web sites as well as physical locations, including one in York County.
Kang headed companies in the Los Angeles area that supplied companies owned by Hbaiu with the misbranded dietary supplements and their ingredients.
Also charged with criminal conspiracy were Ahed Hbaiu, age 32, of Etters in York County, Pennsylvania, Gil Conrad Dizon, age 28, of Los Angeles, and Christopher Mouzon, age 27, of Los Angeles. In July 2015, Mouzon was sentenced by Judge Rambo in Harrisburg to six months in prison and four months home confinement for testifying falsely before the grand jury. Ahed Hbaiu reportedly left the country and Dizon is purportedly in the Philippines. Warrants have been issued for their arrest.
Hbaiu was charged with conspiring to avoid the requirement that banks report cash transactions of $10,000 or more by “structuring” deposits made into various bank accounts. Hbaiu made cash deposits of less than $10,000 in accounts of family members and associates and then transferred the money to accounts controlled by him. Some of the funds “structured” in this fashion were used to pay off the mortgage on a residence at 1806 Meadow Ridge Drive, Hummelstown, which was eventually titled to Alex Hbaiu. Other structured funds were used to fund the business operations of Caliber Investments, 1 Stop Sunoco Gas Station and Eclipse Builders, all located in Etters, York County.
“U.S. consumers rely on FDA oversight to ensure that dietary supplements contain only those ingredients that are disclosed on the label, and certainly to not contain the active ingredients in prescription drugs. When individuals manufacture and distribute supplements with undeclared and potentially dangerous ingredients, they place the health of consumers at serious risk,” said Glen A. McElravy, Acting Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office. “We will continue to direct our resources to bringing to justice those who threaten the public health.”
“The structuring and concealment of monies derived from illegal activities is what enables criminal conduct such as the distribution of misbranded drugs to flourish,” said Internal Revenue Service, Special Agent in Charge Akeia Conner. “The Internal Revenue Service, Criminal Investigation is committed to enforcing the laws that insure individuals do not use our financial institutions to conceal the proceeds of their crimes.”
This case was investigated by the Internal Revenue Service, Criminal Investigation, The Food and Drug Administration Office of Criminal Investigations, and the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Christy H. Fawcett.
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Jamaican National Indicted for Passport FraudRead 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 has indicted Melton Minto of making a false statement in a passport application, falsely claiming United States citizenship, and aggravated identity theft.
According to U.S. Attorney Peter Smith, Minto, a 46 year old Jamaican national, presented a fraudulent driver’s license and birth certificate in applying for a U.S. Passport in Harrisburg in 2011.
The matter was investigated by the U.S. Department of State Diplomatic Security Service and the case is being prosecuted by Assistant U.S. Attorney Scott R. Ford.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for these offenses under federal law is 45 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 Pleads Guilty to Illegal Possession of A FirearmRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Harrisburg man has pleaded guilty to being a felon in possession of a firearm. Shaun L. Graves, age 33, entered a guilty plea today to the charge before Senior U.S. District Court Judge William Caldwell in Harrisburg. The plea was conditional so that Graves can appeal Judge Caldwell’s December 2, 2015 denial of his motion to suppress the firearm to the U.S. Court of Appeals.
The Indictment stems from an October 16, 2014, incident in South Harrisburg in which Graves was arrested by Harrisburg police officers and was found to be in possession of a loaded Bersa .380 caliber semi-automatic pistol with an obliterated serial number.
The case was investigated by the Harrisburg Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant US Attorney Kim Douglas Daniel.
This case is part of the Violent Crime Reduction Partnership (“VCRP”), a districtwide 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.
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 felon in possession charge is life imprisonment. The maximum term of imprisonment for the obliterated serial number charge is five years imprisonment.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Schuylkill County Employee Sentenced to 12 Months in Prison for Embezzling $452,186Read the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Schuylkill County employee, Virginia G. Kunigonis, age 54, of Pottsville, Pennsylvania, was sentenced to 12 months imprisonment by U.S. District Judge William W. Caldwell to embezzling $452,186 from the Schuylkill County Conservation District between 2007 and 2014.
Kunigonis pled guilty in October 2015 before Judge Caldwell to an Information charging her with Theft From Programs Receiving Federal Funds pursuant to a plea agreement with the government. The Schuylkill County Conservation District receives in excess of $10,000 in federal grant monies each year.
According to United States Attorney Peter Smith, the Information alleged Kunigonis forged 437 Conservation District checks totaling $410,435 payable to herself between October of 2007 and May of 2014. The Information also alleged Kunigonis charged $41,751 in personal expenses against a Conservation District credit card during that same time period. Evidence elicited during the sentencing hearing was that the embezzlement scheme was undetected for so long because of the District’s failure to implement adequate internal controls and that Kunigonis used the stolen money, in part, to pay down more than $135,000 in credit card debt.
In addition to her 12 month sentence, Judge Caldwell ordered Kunigonis to pay $452,186 restitution consisting of $3,122 to Schuylkill County and $449,064 to Pennsylvania Counties Risk Pool (PCoRP), Schuylkill County’s bonding company. Judge Caldwell also directed the forfeiture of Kunigonis’ interest in her Pottsville residence, and her interest in her Schuylkill County retirement account.
Kunigonis began working as an administrative assistant for the Schuylkill County Conservation District in approximately 2002. Prior to that she worked in various capacities for Schuylkill County since 1986.
The case was investigated by the Scranton Office of the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Kim Douglas Daniel.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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