Middle District of Pennsylvania
Press releases recorded for this federal judicial district.
Two Illegal Aliens Charged with Immigration ViolationsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO), announced today that separate criminal charges were filed today against two illegal aliens.
Juan Torres-Garcia, age 33, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg today. The indictment alleges that Torres-Garcia, previously arrested and deported from the United States in October 2008, knowingly and unlawfully reentered the United States and was apprehended in York County, Pennsylvania.
If convicted, Torres-Garcia faces a maximum sentence of up to two years’ imprisonment and a $250,000 fine.
Marcelo Barranco-Ramirez, age 25, was charged in a one-count indictment by a federal grand jury in Harrisburg today. The indictment alleges that Barranco-Ramirez, an alien who has previously been arrested and deported from the United States in April 2007, reentered the United States illegally and was apprehended in Adams County, Pennsylvania.
If convicted, Barranco-Ramirez faces a maximum sentence of up to two years’ imprisonment and a $250,000 fine.
The investigations were conducted by the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) and is being prosecuted by Special Assistant United States Attorney Alice Song Hartye.
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 guilty 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.
Former Pediatric Oncology Resident Sentenced for Child Pornography DistributionRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that David H. Scanlan III, formerly of Harrisburg and currently of Bentonville, Virginia, and a former pediatric oncology resident at Penn State Hershey Medical Center, was sentenced to five years in federal prison for distribution of child pornography. The sentence was imposed by U.S. District Judge John E. Jones III in Harrisburg. Following his prison term, Scanlan will be on supervised release, for 20 years. He was also ordered to pay restitution in the amount of $20,000.
According to U.S. Attorney Peter Smith, due to concern about Scanlan’s access to minor children through his job, the Government agreed that it would recommend the statutory mandatory minimum five-year prison sentence if Scanlan would submit to a polygraph examination on the issue of contact with minors, and was found by the examiner to be not deceptive. Scanlan underwent that polygraph examination and was found to be not deceptive. The Government emphasized that the recommendation was based on the facts and circumstances of this particular case.
Based on the plea agreement and information submitted by Scanlan’s attorney at the sentencing hearing, Judge Jones found that the sentence called for under the advisory guideline range was not necessary in this case, adopted the recommendation of the Government and remanded Scanlan to the custody of the United States Marshals Service to begin serving his sentence immediately. The investigation was conducted by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI). The case was prosecuted by Assistant U.S. Attorney James Clancy.
Former Owner of Penn Hills Lodge Sentenced for Filing False Pension DocumentsRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced today Charles A. Poalillo, Jr., age 81, of Monroe County, Pennsylvania, was sentenced in U.S. District Court in Scranton to 3 years’ probation for filing false documents related to Penn Hills Lodge pension funds.
According to United States Attorney Peter Smith, Poalillo was the former owner of Penn Hills Lodge, Inc., a Pocono honeymoon resort located in Analomink, Pennsylvania. While he operated Penn Hills Lodge and related businesses, Poalillo borrowed approximately $1 million from two pension funds. In September 2013, he entered a guilty plea before U.S. District Court Judge Edwin J. Kosik to falsely reporting the security of these assets to the United States Department of Labor. Pursuant to a guilty plea agreement filed with the information, Poalillo agreed to attempt to make full restitution by the time of sentencing.
At today’s sentencing, attorneys for Poalillo reported to the court that his personal and business assets had been liquidated and the assets are being transferred to the United States Clerk of Court’s office for restitution to the victims. Judge Kosik cited the full restitution as well as the defendant’s health conditions as factors warranting a probationary sentence.
The United States Department of Labor’s Employee Benefits Security Administration and the Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, conducted the investigation. The Monroe County District Attorney’s Office initiated the investigation and assisted the federal authorities. Prosecution is assigned to Assistant United States Attorney Michael A. Consiglio.
Wilkes-Barre Township Volunteer Fire Department Chief Charged Federally with Stealing Department FundsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a criminal Information has been filed in U.S. District Court in Scranton charging the Chief of the Wilkes-Barre Township Volunteer Fire Department, John Yuknavich, age 51, of Wilkes-Barre Township, Pennsylvania, with stealing in excess of $5,000 from the fire department and Wilkes-Barre Township in the course of his duties as Chief of that fire department between 2008 and 2011.
According to United States Attorney Peter Smith, Yuknavich was responsible for ensuring the deposit of monthly funds received from Wilkes-Barre Township, as well as all other funds received either through charitable contributions or annual state aid received from the Commonwealth of Pennsylvania. Yuknavich allegedly deposited only part of the monthly $3500 check received from Wilkes-Barre Township intended to pay fire department bills, and took the remainder of the check in cash, most of which he used for his personal benefit.
Federal law prohibits theft or intentional misapplication of $5,000 or more from local government programs that receive more than $10,000 in federal funds annually.
The Government also filed a plea agreement with Yuknavich which must be approved by the U.S. District Court. The agreed upon restitution included in the plea agreement is $45,000. An additional term of the plea agreement requires Yuknavich to resign his position as an officer or any other official title he holds with the Wilkes-Barre Township Volunteer Fire Department within ten days of the entry of the plea.
The prosecution is the result of a joint investigation by the Federal Bureau of Investigation (FBI), the Luzerne County District Attorney’s Office, and the Pennsylvania State Police with the assistance of the Pennsylvania Department of the Auditor General. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
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 guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute 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.
Scranton Man Sentenced to 35 Years in Prison for Murder-For-Hire Conspiracy and Related CrimesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 46-year-old Scranton man, who was convicted last August of participating in a murder-for-hire conspiracy and related crimes, was sentenced yesterday to 35 years in federal prison by Senior U.S. District Court Judge A. Richard Caputo.
According to United States Attorney Peter Smith, the defendant, Gary Williams, was convicted by a jury after a three-day trial in August 2013. Williams was convicted of conspiracy to commit a murder-for-hire, carrying and possessing a firearm in relation to and in furtherance of a crime of violence, receiving a firearm and ammunition in interstate commerce with the intent to commit a felony offense, unlawfully possessing a firearm as a convicted felon, and attempting to tamper with a witness.
In imposing sentence, Judge Caputo remarked that Williams’ crime was one of the most serious offenses he has encountered in his courtroom, and noted that the 35-year sentence was necessary to protect the public and to deter others from committing similar crimes.
Williams was originally indicted by a federal grand jury in August 2012, as a result of an investigation by the Federal Bureau of Investigation and the Scranton Police Department. Williams was charged in a superseding indictment in April 2013. The indictment alleged that Williams agreed to kill the ex-wife of a co-conspirator, and that the co-conspirator shipped a rifle and bullets from Cape Coral, Florida to Scranton for Williams to use to commit the murder. The indictment further alleged that the co-conspirator promised Williams money and a job for committing the murder.
Williams’ co-defendant, Edward McLaughlin, pleaded guilty to conspiracy to commit a murder-for-hire, shipping a firearm in interstate commerce as a convicted felon, and possessing a firearm in furtherance of a crime of violence. He is awaiting sentencing.
Judge Caputo also ordered Williams to serve three years on supervised release following his prison sentence, and to pay a special assessment of $500.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
Scranton Man Charged with Sex Trafficking of A MinorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Scranton resident was indicted by a federal grand jury yesterday for sex trafficking of a minor and conspiracy to commit sex trafficking of a minor.
According to United States Attorney Peter Smith, Sean Cantelmo, age 28, allegedly conspired with others to coerce a minor female to engage in prostitution and illegal sexual activity during February through May 2014.
The indictment alleges that the defendant used a cell phone to post advertisements for “escort services” involving the minor female on a website and rented motel rooms in Lackawanna and Luzerne Counties to facilitate the prostitution activities.
Cantelmo is charged with Conspiracy to Commit Sex Trafficking of Children by Force and Coercion and Sex Trafficking of Children by Force and Coercion.
Cantelmo was taken into custody yesterday and is scheduled to appear before U.S. Magistrate Judge Karoline Mehalchick at the Federal Courthouse in Wilkes-Barre later today.
The charges stem from an investigation by U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) and the Pennsylvania State Police.
The sex trafficking of children by force and coercion and conspiracy charges are each punishable by a mandatory minimum sentence of 15 years in prison and a possible maximum sentence of life in 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."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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 guilty 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.
Resident of Harrisburg and New York Sentenced to 25 Years Imprisonment for Conspiracy to Distribute CocaineRead the Press Release
Maurice Henderson, 33, of New York and Harrisburg, was sentenced in federal court in Harrisburg, Pennsylvania, today to 25 years’ imprisonment following his conviction for criminal conspiracy and distribution of crack cocaine and powder cocaine. U.S. District Court Judge John E. Jones, III directed that Henderson remain on supervised release for 10 years following his jail sentence.
On February 10, 2014, a federal jury in Harrisburg returned a verdict finding Henderson guilty of conspiracy to traffic drugs and trafficking drugs.
According to United States Attorney Peter Smith, Henderson was convicted of criminal conspiracy to distribute and possess with intent to distribute five kilograms and more of cocaine hydrochloride and 280 grams or more of crack cocaine and distribution and possession with intent to distribute the same drugs. The jury found him not guilty of possessing a firearm in furtherance of drug trafficking. The verdict was returned following a week-long jury trial before U.S. District Court Judge John E. Jones, III.
Evidence presented during trial established that Henderson sold crack cocaine to an individual working with the Dauphin County Drug Task Force twice and also sold crack cocaine to an undercover police officer on two occasions. Witnesses testified that over a two-year period, Henderson and his co-conspirators made frequent trips from Harrisburg to a neighborhood in New York to purchase multiple kilogram quantities of cocaine hydrochloride, using rental cars and drivers to make the trips. Upon their return to Harrisburg, members of the conspiracy cooked the bulk of the cocaine hydrochloride into “crack” cocaine, weighed it, packaged it into smaller quantities and distributed to drug dealers in the Harrisburg area.
Co-conspirators Juval Green, 34, Robert Reynoso, 35, Derrice Sassaman, 39, and Annalyn Black, 26, all previously pleaded guilty to a drug trafficking conspiracy. Prior to jury selection in Henderson’s case, the government filed a notice stating that because Henderson has at least two prior felony drug convictions, he is subject a mandatory 20 years’ imprisonment.
The investigation that led to Henderson’s arrest and conviction was part of a larger investigation targeting crack cocaine dealing in the 14th and Swatara Street area in Harrisburg.
The case was investigated by the Drug Enforcement Administration, the Dauphin County Criminal Investigative Division, the Dauphin County Drug Task Force, Lower Paxton Township Police, Susquehanna Township Police, the U.S. Marshal’s Service, Pennsylvania State Police, and Harrisburg Police. It was prosecuted by Assistant U.S. Attorney Christy H. Fawcett.
Williamsport Resident Charged with Health Care FraudRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that a criminal charge of health care fraud has have been filed against Ronald McAdams of Williamsport, Pennsylvania.
According to United States Attorney, Peter Smith, McAdams, age 57, is charged in a one-count felony Information with health care fraud based on submitting false claims to the Pennsylvania Attendant Care Medicaid Waiver Program. The Information alleges McAdams billed for and received reimbursement for attendant care services which were never performed.
The investigation is being conducted by the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation, and the Pennsylvania Attorney General’s Medicaid Fraud Control Section. Assistant United States Attorney Wayne P. Samuelson is 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 guilty is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is ten years imprisonment, and a fine of $250,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
United States Files Lawsuit Against York County Man for Health Care FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a civil health care fraud lawsuit has been filed today against Kurt Bauer age 61, York, PA. The lawsuit alleges that Bauer, despite being excluded from participation in Medicare, was a manager and administrator of Leader Heights Healthcare, P.C., which caused the submission of thousands of false claims to Medicare.
According to U.S. Attorney Peter Smith, Leader Heights Healthcare, formerly ChiroCare Center, is a York County-based chiropractic and primary care provider that accepted Medicare patients. The complaint alleges that Bauer owned Leader Heights under its former name, but his chiropractic license was revoked by the Pennsylvania Department of State in 2008 for an inappropriate relationship with a patient, resulting in Bauer’s exclusion from Medicare. According to the complaint, the U.S. Department of Health and Human Services warned Bauer that he generally could no longer be employed and could not provide administrative and management services for a Medicare provider because of the exclusion.
Despite the warning and after falsely informing Medicare that he had “[r]etired,” Bauer allegedly retained ownership of Leader Heights Healthcare until 2009 and continued to be involved in the management and administration of Leader Heights until he learned of the government’s investigation in 2013. During this period of time, Leader Heights Healthcare allegedly submitted thousands of claims to Medicare for reimbursement for several million dollars. Between 2008 and 2013, Leader Heights received approximately $3 million from Medicare.
The government contends that, because of Bauer’s involvement in the management and administration of Leader Heights during his exclusion, Bauer knowingly caused the submission of false claims to Medicare that improperly sought reimbursement for the services he provided.
The government’s lawsuit is brought pursuant to the False Claims Act. Under the False Claims Act, a person that causes the submission of false or fraudulent claims to the government is liable for three times the government’s damages, plus civil penalties for each false claim. The claims asserted against Bauer are allegations only, and there has been no determination of liability.
This matter was investigated by the U.S. Department of Health and Human Services’ Office of Inspector General and the Health Care Fraud Unit of the U.S. Attorney’s Office. The case is assigned to Assistant U.S. Attorney Anthony Scicchitano of the U.S. Attorney’s Office’s Civil Division.
The lawsuit is captioned United States v. Kurt Bauer (M.D. Pa.).
Sayre, Pennsylvania Couple Sentenced for Tax Evasion SchemeRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania, announced that Randy Talada, age 58, and Sandy Talada, age 59, both of Sayre, Pennsylvania, were sentenced by U.S. District Court Judge Matthew W. Brann today in Williamsport.
Randy Talada was sentenced to 21 months’ incarceration to be followed by a three-year term of supervised release for conspiracy to commit mail fraud and tax evasion. Sandy Talada was sentenced to 6 months’ incarceration and 6 months’ home confinement to be followed by a two-year term of supervised release for tax evasion.
The tax evasion was the result of the Taladas’ failure to report income derived from their theft of small game of chance winnings from the Fort Sullivan Post 246 American Legion located in Athens, Pennsylvania. Randy Talada, the Bar Club manager at the time of thefts, also failed to report his wages. He was also convicted for conspiracy to commit mail fraud for supplying false statements via mail to the State Worker’s Insurance Fund (SWIF). At the sentencing hearing today, he was ordered to pay $171,000 in restitution to SWIF. The Taladas also owe IRS approximately $54,000.
The investigation was conducted by the IRS, Criminal Investigations Division, the FBI and the Athens Borough Police Department. The case was prosecuted by Assistant United States Attorney Todd K. Hinkley.
Tioga County Physician and Three Others Indicted for Unlawful Distribution of Controlled Substances and Health Care FraudRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that a Tioga County physician has been charged with unlawful distribution of controlled substances and health care fraud. Three other individuals are also charged in an indictment returned Tuesday by a federal grand jury in Scranton, Pennsylvania.
According to United States Attorney Peter Smith, the indictment charges Dr. John Terry, age 63, and Thomas Ray, age 51, both of Wellsboro, Pennsylvania, with Possession with Intent to Distribute a Controlled Substance and Health Care Fraud. It also charges David Hatch, age 27, Addison, New York, and Stephen Heffner, Jr., age 46, Elkland, Pennsylvania, with health care fraud. The defendants allegedly aided and abetted each other in a scheme to obtain benefits from a health care program by false and fraudulent pretenses.
Terry, Hatch and Heffner, Jr. were released after a hearing yesterday in Williamsport before Magistrate Judge William I. Arbuckle, III. Ray is in state custody on other charges.
Beginning January 2010 through July 2013, Terry allegedly provided prescriptions for excessive quantities of Oxycodone and other narcotics to individuals who he knew were not seeking the drugs for a legitimate medical purpose. Terry also allegedly wrote prescriptions for narcotics for individuals who were not his patients, knowing that the federal Medicare program was going to be billed for the unlawful prescriptions.
During the execution of a federal search warrant at his office on July 8, 2013, Terry voluntarily agreed to surrender his medical license and his DEA registration.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
The charges stem from an investigation by Drug Enforcement Administration, the Department of Health and Human Services, Office of Inspector General, and the Pennsylvania State Police.
“We rely on doctors to be part of the prescription drug abuse solution – not part of the problem,” said Nick DiGiulio, Special Agent in Charge for the Inspector General’s Philadelphia Office. “Abuse of prescription drugs now kills more people than illegal drug abuse and costs taxpayers many millions of dollars.”
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 guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty for the controlled substance violation is 20 years’ imprisonment and 10 years’ imprisonment for the health care fraud violation, under the federal statutes, 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.
Illinois Woman Pleads Guilty to Travelling Interstate to Promote Heroin TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Mexican national who was residing in Illinois at the time of her arrest, pleaded guilty yesterday before U.S. District Court Judge Robert D. Mariani to interstate travel in aid of a drug trafficking conspiracy.
According to United States Attorney Peter Smith, the defendant, Maria Pina, age 44, admitted to transporting heroin from Illinois to Pennsylvania on February 12, 2014.
Pina was charged in an Information filed on June 22, 2014. The charge against Pina resulted from an investigation by the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), the Pennsylvania State Police, and Berks County Detectives.
Pina faces a potential maximum sentence of five years in prison and a $250,000 fine.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
A sentence following a finding of guilty 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.
Owner of Connecticut Financial Services Company Pleads Guilty to Making False Statements Regarding Military Pension BenefitsRead the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced today that Richard A. Ullmann, age 50, of Westport, Connecticut, pleaded guilty to making false statements to the Defense Finance Accounting Service (DFAS) in federal court in Harrisburg before Chief United States District Court Judge Christopher C. Conner. Ullmann faces up to five years' imprisonment and/or $250,000 in fines as a result of the guilty plea. Ullmann was released pending sentencing, which is scheduled for November 28, 2014.
According to U.S. Attorney Peter Smith, Ullmann owned and operated a financial services company based in Westport, Connecticut, called Donnell Financial Group (Donnell), that made short-term loans to members of the U.S. Armed Forces, military retirees and their survivors, and others. In exchange for the loans, Donnell's customers assigned their future pension payments to Mr. Ullmann as collateral. Federal law prohibits the assignment of pension benefits as collateral for members of the armed forces and military retirees. DFAS also prohibits anyone but the account holder to make changes to their account, including where the payments shall be deposited and who should receive the funds.
In March 2009, DFAS warned Mr. Ullmann that his practice of impersonating the account holder in order to direct payments into bank accounts he controlled could subject him to prosecution. Ullmann admitted today that despite that warning, he continued to impersonate numerous individuals and direct their pension payments into bank accounts he controlled until February 2014, when federal agents executed a search warrant at Donnell.
The case was investigated by the Department of Defense, Office of Inspector General, and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.
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 guilty 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.
****Five Charged with Fraud in Wilkes-Barre City Employees Federal Credit Union InvestigationRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that a Grand Jury in Scranton returned indictments Tuesday charging five members of the Wilkes-Barre City Employees Federal Credit Union with conspiracy and bank fraud. The indictments were sealed pending the arrests and/or voluntary surrender of the defendants today.
According to United States Attorney Peter Smith, Tino Ninotti, age 35, Jason Anthony, age 34, Leo Glodzik, age 43, Amanda Magda, age 30, and Jeffrey Serafin, age 35, were charged in three separate indictments related to activities of the credit union. Glodzik is also charged with tampering with a witness. Magda was the assistant manager at the Credit Union; Jason Anthony is a Wilkes-Barre City Police Officer; Ninotti is a former Wilkes-Barre City Police officer; Glodzik is a contractor whose company had a towing contract with the City of Wilkes-Barre.
Four of the defendants appeared today before Magistrate Judge Karoline Mehalchick in federal court in Wilkes-Barre. Ninotti, Anthony and Glodzik were released from custody and ordered to report to pretrial services. Glodzik was ordered to surrender his passport. Serafin was released on his own recognizance. The hearing for Magda is expected to take place later today.
The indictments, unsealed today, allege that the defendants, during 2014, individually or by aiding and abetting one another, secured loans from the Credit Union by means of false and fraudulent pretenses, including the use of false collateral, the stolen identities of others who were not aware of loans in their names, and forgery. Magda and Anthony are charged in one indictment; Ninotti, Glodzik and Magda in a second indictment; and Serafin alone in the third indictment.
If convicted, the defendants face up to 30 years in prison and fines in the amount of $1,000,000.
According to the U.S. Attorney the charges are a significant step in an ongoing corruption investigation by the FBI. The case represents the pursuit of allegations against individuals; the FBI and the U.S. Attorney’s Office value the close working relationships they have with local police departments, including Wilkes-Barre’s, and with honest police officers. These relationships will continue.
The prosecution is the result of a joint investigation by the Federal Bureau of Investigation (FBI), and the Pennsylvania State Police (PSP) which plays an integral role in investigations of fraud and public corruption. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Luzerne County citizens, as well as employees and officials of local government are urged to come forward and provide relevant information about this case and others involving corruption in local government by contacting the Scranton FBI Office at 570-344-2404.
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 guilty 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.
Three Illegal Aliens Charged with Immigration ViolationsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO), announced today that separate criminal charges were filed this week against three illegal aliens.
Baltazar Lua-Garcia, also known as Ruben Garcia-Rodriguez, age 52, a native and citizen of Mexico, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg.
The indictment alleges that Lua-Garcia, an alien who was convicted before the Superior Court for King County, Washington on April 1, 1994, of Delivery of Cocaine, and had been previously arrested and deported from the United States on October 10, 2003, did knowingly and unlawfully reenter the United States. He was apprehended by federal immigration agents in York County, Pennsylvania.
If convicted, Lua-Garcia faces a maximum sentence of up to 20 years of imprisonment and a $250,000 fine.
Oscar Perez-Chavez, age 46, a native and citizen of Guatemala, in the United States illegally was charged in a one-count information filed with the Court in Harrisburg. The information alleges that Perez-Chavez, an illegal alien, entered the United States and was found in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Oscar-Perez faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
Agustin Hernandez-Rojas, age 40, a native and citizen of Mexico, in the United States illegally, was charged in a one-count information filed with the Court in Harrisburg. The information alleges that Hernandez-Rojas, an illegal alien, entered the United States and was found in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Hernandez-Rojas a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
The investigations were conducted by the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) and is being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.
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 guilty 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.
Man Indicted for Assault, Threats and Starting A Fire at Gettysburg National ParkRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Gary L. DuRocher, 41, formerly a resident of Maryland, was charged in an Indictment by a federal grand jury in Harrisburg. On August 11, 2014, DuRocher was charged in a Criminal Complaint, arraigned, and detained pending a preliminary hearing. The charges stem from an incident at the Gettysburg National Military Park on Friday night, August 8, 2014. According to United States Attorney Peter Smith, the Indictment charges the same three offenses as the Complaint: DuRocher allegedly committed an assault within the jurisdiction of the United States; he also is charged with malicious mischief for allegedly starting a fire that damaged property in the Park; and allegedly made a threat of harm to another person in interstate commerce. If convicted of all offenses, DuRocher faces 11 years in prison and fines of more than $500,000.
At his first appearance in federal court, DuRocher was ordered detained pending a preliminary hearing. With the filing of the Indictment, there will no longer be a preliminary hearing because the grand jury’s finding of probable cause to believe the crimes alleged were committed takes the place of the probable cause finding made at a preliminary hearing. U.S. Magistrate Judge Susan E. Schwab is expected to arraign DuRocher on the Indictment tomorrow, Thursday, August 21, at 9:30 a.m.
The case was investigated by the National Park Service with the assistance of Cumberland Township, Gettysburg Borough, McSherrystown Borough, Pennsylvania State Police and Maryland State Police, as well as fire and emergency response personnel from around the Gettysburg area. The case is being prosecuted by Assistant United States Attorney James T. Clancy.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty 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.
U.S. Postal Inspection Service Delivers $14 Million to Victims of Mass Marketing ScamRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that today the U.S. Postal Inspection Service is delivering over 3400 checks to victims of marketing schemes by MoneyGram agents and others.
The distribution payments were made from a $100 million fund paid by MoneyGram as part of a settlement with the U.S. Department of Justice and the U.S. Attorney’s Office for the Middle District of Pennsylvania in 2012. The settlement was approved by Chief U.S. District Court Judge Christopher C. Conner.
The U.S. Postal Inspection Service’s announcement, with additional information about the fund, can be found at postalinspectors.uspis.gov.
Federal Inmate Charged with Possession of A Prison WeaponRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Margarito Morales-Oliva, age 35, formerly of Mexico, an inmate at the United States Penitentiary at Canaan, Pennsylvania, was charged on August 15, 2014 in a criminal Information with allegedly possessing a sharpened weapon commonly referred to as a “shank.”
The case was investigated by the FBI and the Special Investigation Section at USP-Canaan. Prosecution is assigned to Assistant United States Attorney John Gurganus.
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 guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Operator of Financial Consulting Firm Sentenced to 46 Months’ Imprisonment for Investment FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 15, 2014, United States District Court Judge Malachy E. Mannion sentenced August John Stile, Jr., age 50, of Hughestown, Pennsylvania, to 46 months’ imprisonment. In October 2013, Stile pleaded guilty to defrauding investors of approximately $310,000. This was Stile’s second federal conviction for fraud since 2001.
Stile was the purported Vice President of JFC Group and the President of Stile Consulting. JFC Group had an office in Dickson City, Pennsylvania, and Stile Consulting had office in Exeter, Pennsylvania. Stile was indicted on the fraud charges in April 2013.
According to United States Attorney Peter Smith, between 2007 and 2009, Stile schemed to defraud private investors by fraudulently offering short-term investment opportunities based upon a promise of a return of the investment with substantial interest in less than 90 days. In one instance, Stile promised an investor a payout of $265,000 in return for a short-term investment of $25,000-—the payout to occur in roughly 40 days.
Rather than investing the money he received as promised, Stile used the funds for his own purposes which included the purchase of vehicles, and improvements to his other property.
Judge Mannion sentenced Stile to the top of the applicable Sentencing Guidelines range. In addition to the imprisonment term, Judge Mannion ordered Stile to pay restitution to the victims in the amount of $327,500. Judge Mannion denied Stile’s request for a delay to begin his sentence and ordered him immediately into custody.
Stile was previously prosecuted in federal court for fraud in 2001 and was sentenced to a prison term. In 2011, he was sentenced to an additional 14 months in federal prison for violating the terms of his supervised release in that case as a result of the fraudulent investment scam activity that led to his indictment in the present case.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney John Gurganus prosecuted the case.
Monroe County Woman Charged with Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal Information was filed today charging a Monroe County resident with participating in a conspiracy to distribute heroin during November 2013 through April 2014.
According to United States Attorney Peter Smith, the Information alleges that Tamika Davis, age 33, of Effort, Pennsylvania, conspired with others to distribute and possess with intent to distribute heroin in Monroe County and elsewhere.
The charge stems from an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police.
Davis faces a potential maximum sentence of 20 years in prison and a $1 million fine if he is convicted of the charge.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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 guilty 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.
Wilkes-Barre Man Sentenced to 65 Months’ Imprisonment for Conspiracy to Distribute CocaineRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that yesterday Senior United States District Court Judge A. Richard Caputo has sentenced Richard Hall, age 38, of Wilkes-Barre, Pennsylvania, to 65 months’ imprisonment for his involvement in a conspiracy to distribute cocaine hydrochloride and cocaine base (crack) between 2009 and April 2013; and for distributing marijuana to a person under the age of 21.
According to United States Attorney Peter Smith, Hall was a cocaine and marijuana dealer in the Wilkes-Barre area. Hall obtained cocaine from New York City and marijuana from the Philadelphia for distribution in the Luzerne County area. On April 2, 2013, FBI Agents arrested Hall in Atlantic City, New Jersey. On February 24, 2014, Hall appeared in federal court and pleaded guilty to the conspiracy charge and a charge that he distributed marijuana to a person under 21.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, and the Luzerne County District Attorney’s Office. Assistant United States Attorney John Gurganus prosecuted the case.
USP-Canaan Inmate Sentenced to 37 Months of Imprisonment for Assaulting Two Correctional OfficersRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that yesterday in Scranton United States District Court Judge Malachy E. Mannion sentenced Tarmaine Colbert, age 36, formerly of Phoenix, Arizona, to 37 months’ imprisonment for assaulting two correctional officers. On May 29, 2014, Colbert pleaded guilty to the assault which occurred on January 12, 2014, at the U.S. prison facility in Canaan.
According to United States Attorney Peter Smith, Colbert assaulted the officers when they attempted to do a pat down search of him for weapons. Colbert punched the two officers in the face resulting in minor injuries to the officers. Colbert was found to be in possession of a sharpened weapon commonly referred to as a shank.
The case was investigated by special agents of the Federal Bureau of Investigation and the Bureau of Prisons. Assistant United States Attorney John Gurganus prosecuted the case.
Philadelphia Man Pleads Guilty to Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 34-year-old Philadelphia man pleaded guilty today before U.S. District Court Judge Malachy E. Mannion to participating in a conspiracy to distribute heroin in the Hazleton area of Pennsylvania.
According to United States Attorney Peter Smith, the defendant, Edwin Laureano-Suarez, admitted to conspiring with others to distribute heroin between May 2014 and June 18, 2014.
Laureano-Suarez was charged in a criminal Information filed on August 12, 2014, as a result of an investigation by the Federal Bureau of Investigation and Scranton Police.
Judge Mannion ordered a pre-sentence investigation to be completed. Sentencing will be scheduled after the completion of the pre-sentence report.
Laureano-Suarez faces up to 20 years in prison and a $1 million fine.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
****New Jersey Man Sentenced to Prison for Heroin TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 37-year-old New Jersey man was sentenced to 14 months in federal prison yesterday by U.S. District Court Judge Malachy E. Mannion for possession with intent to distribute heroin in Kingston, Pennsylvania, on January 3, 2014.
According to United States Attorney Peter Smith, the defendant, George Wormley, on May 1, 2014, pleaded guilty to committing the offense.
Wormley was indicted by a grand jury on March 25, 2014, as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Kingston Police.
Judge Mannion also ordered Wormley to be placed on supervised release for three years after serving his prison sentence, and to pay a $100 special assessment.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Government Files Motion to Quash State Court Subpoena in Commonwealth of Pennsylvania V. Robert J. MellowRead the Press Release
The Unites States Attorney's Office for the Middle District of Pennsylvania announced today that it filed a Motion and Brief in Support of Motion to Quash State Court Subpoena in Commonwealth of Pennsylvania v. Robert J. Mellow.
Dover Teacher Charged in Federal Child Exploitation CaseRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that Matthew B. Puterbaugh, 47, of Dover, Pennsylvania was indicted today by a federal grand jury in Harrisburg charging him with production of receiving, and possession of, child pornography.
If convicted, Puterbaugh faces a mandatory minimum of 15 years imprisonment on the production charge, a mandatory minimum five years imprisonment on the receipt charge and a statutory maximum of 70 years imprisonment.
According to U.S. Attorney Peter Smith, Puterbaugh was a music teacher and band director at Dover Intermediate School in York County. He allegedly secretly recorded images of female students at the school that constitute child pornography. In February 2014, school officials reported a complaint to the Northern York County Regional Police Department. Police conducted searches and allegedly found thousands of images depicting minors engaged in sexually explicit conduct on computers in Puterbaugh=s home. Puterbaugh was suspended by the school district and charged by the York County District Attorney’s Office. Earlier this week, he was terminated from his position by the school district.
Puterbaugh appeared before Magistrate Judge Susan E. Schwab this afternoon. He was detained pending a detention hearing.
This case was brought as part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is part of a continuing investigation by the Federal Bureau of Investigation and the Northern York County Regional Police Department in cooperation with the York County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Meredith A. Taylor. Anyone with information concerning the subject matter of the investigation should contact the FBI at 717-232-8686 and reference the Puterbaugh 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 guilty 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.
Philadelphia Man Charged with Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal Information was filed today charging a Philadelphia resident with participating in a conspiracy to distribute heroin in the Hazleton area of Luzerne County during May through June of this year.
According to United States Attorney Peter Smith, the Information alleges that Edwin Laureano-Suarez, age 34, conspired with others to distribute and possess with intent to distribute heroin in Luzerne County and elsewhere.
The charge stems from an investigation by special agents of the Federal Bureau of Investigation and Scranton Police.
Laureano-Suarez faces a potential maximum sentence of 20 years in prison and a $1 million fine if he is convicted of the charge.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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 guilty 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.
Stroudsburg Man Charged with Passing Counterfeit MoneyRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that a felony information has been filed against Calmen Stewart, Jr., age 23, of Stroudsburg, Pennsylvania. The information charges Stewart with conspiracy to pass counterfeit federal reserve notes at locations throughout the Middle District of Pennsylvania and elsewhere.
Ketsy Devis, age 24, Dominick Andino, age 24, and Ralph Randolph, age 36 were charged in related cases. Devis and Andino await sentencing. Randolph was sentenced on July 24, 2014 by U.S. District Court Judge Malachy E. Mannion to ten months incarceration followed by two years of supervised release.
Stewart could be imprisoned for a statutory maximum term of imprisonment of five years and fines in the amount of $250,000.
The case was jointly investigated by the United States Secret Service and the Dickson City Police Department.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
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 guilty 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.
Man Charged with Assault, Malicious Mischief, and Threats at Gettysburg National ParkRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Gary L. DuRocher, 41, no fixed address, was charged in a Criminal Complaint following a series of incident at the Gettysburg National Military Park on Friday night, August 8, 2014.
According to United States Attorney Peter Smith, DuRocher is charged with assault and malicious mischief within the special jurisdiction of the United States for allegedly starting a fire that damaged property in the Park and making a threat of harm to another person. The Complaint was filed by a Gettysburg Park Ranger. If convicted of all offenses, DuRocher faces 11 years in prison and fines of more than $500,000.
DuRocher was taken into custody after the incidents and made an initial appearance before U.S. Magistrate Judge Susan E. Schwab in Harrisburg today. A preliminary hearing on the complaint is scheduled for August 21, 2014. Magistrate Judge Schwab granted the Government’s motion to detain DuRocher pending that hearing because of his risk of flight and danger to the community.
Law enforcement officers of the National Park Service, Cumberland Township, Gettysburg Borough, McSherrystown Borough, Pennsylvania State Police and Maryland State Police, as well as fire and emergency response personnel from around the Gettysburg area participated in the investigation. The case is being prosecuted by Assistant United States Attorney James T. Clancy.
Statement of the United States Attorney Concerning United States V. Anthony J. Lupas, Jr., 3:CR-12-114Read the Press Release
In 2012 Lupas, a long time prominent Wilkes-Barre attorney and school district solicitor, was taken into custody by federal agents and then indicted for mail fraud and conspiracy by a federal grand jury. The initial indictment, and a superceding one, alleged that Lupas, since at least 2006, carried out a scheme to defraud clients by soliciting them to enter into trust agreements with him for investment purposes. Lupas promised to hold the money in an account with a minimum of 7% interest tax-free for the benefit of the clients and their heirs.
The charges alleged that the agreements were a massive fraud and that Lupas knowingly and intentionally betrayed the trust placed in him by taking and using the money for his own purposes and benefit. Lupas pleaded not guilty and, on his behalf, a claim of incompetency was raised with the court.
After examinations of Lupas by doctors and a competency hearing in 2013, U.S. District Court Judge Robert D. Mariani ordered that Lupas be committed to the custody of the Attorney General to receive further treatment pursuant to the governing statute. In June 2014, physicians at the U.S. Bureau Of Prisons facility at Butner, North Carolina, issued a report stating that Lupas was suffering from a mental disease or defect rendering him incompetent to stand trial and there was a strong probably that his competency will not be restored in the foreseeable future. The details of the report are included in a Motion to Dismiss the Superceding Indictment Without Prejudice filed by the Government on August 4, 2014.
In its motion, the government stated:
No additional facts can be provided at this time in support of maintaining the criminal charges against the defendant. The defendant is 80 years old. Multiple mental health experts and this Court have determined that the defendant is not competent to stand trial, and that there is no substantial probability that his competency will be restored in the foreseeable future. As such, the Government is left with no other alternative but to move this Court to dismiss the pending criminal matter against the defendant, Anthony J. Lupas, Jr., without prejudice.
WHEREFORE, for the foregoing reasons, the Government respectfully requests that the pending charges against the defendant be dismissed without prejudice.
Yesterday, Judge Mariani filed an Order granting the government’s motion to dismiss without prejudice and directed that Lupas be release from the Butner facility.
The government regrets that the prosecution of the case will not be able to go forward. However, under the law, no defendant can be put on trial after he has been found incompetent.
The allegations were extremely serious and many trusting people were deceived and grievously hurt through a pattern of deceit and dishonesty. During the investigation, agents obtained, by search warrant and/or with consent, client records from Lupas’ former law firm and seized, or discovered, funds that maybe subject to further legal action by the government or the victims to obtain at least partial restitution.
Within the next few days, our Victim-Witness Unit will soon provide information, by mail and through our website, to the victims concerning what they can do and what steps they should follow to obtain their particular client files and to seek any funds, accounts and assets that may be subject to restitution.
We appreciate the efforts of lawyers for the victims in this case to expose this long-running fraud and to help their clients recover their money. We also note the action taken by the Pennsylvania Supreme Court and the Pennsylvania Crime Victims Fund to help recover at least a portion of the losses.
This is not the only time in the past year that massive fraud against clients by trusted lawyers has been uncovered in this federal district. Most lawyers act honestly and responsibly in the handling of their clients’ funds. Obviously there was a major failure here. I urge the legal community and, in view of this case, especially the legal community in Northeastern Pennsylvania, to do everything in its power to prevent a repetition of this conduct.
Such efforts could include more education and outreach, fostering greater awareness of investment fraud schemes and establishing reasonable and appropriate limits, oversight and disclosure requirements concerning investment activities on the part of lawyers using client funds.
Philadelphia Man Pleads Guilty to Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 31-year-old Philadelphia man pleaded guilty today in Scranton before U.S. District Court Judge Malachy E. Mannion to participating in a conspiracy that distributed heroin during November 2013 to January 2014.
According to United States Attorney Peter J. Smith, the defendant, Luis Morales, admitted that he conspired with others, including Eudy Gonzalez, then an inmate at the Pennsylvania State Correctional Institution at SCI Waymart, to distribute and possess the heroin in Northeastern Pennsylvania.
Morales was indicted by a federal grand jury in March 2014, as a result of an investigation by special agents and task force officers of the Federal Bureau of Investigation and Scranton Police.
Morales faces a possible maximum sentence of 20 years in prison and a fine up to $1 million. Judge Mannion ordered a pre-sentence investigation to be completed prior to sentencing.
Two of Morales’ co-defendants, Linda Reyes and Eudy Gonzalez, previously pleaded guilty and are awaiting sentencing.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
A sentence following a finding of guilty 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.
Criminal Immigration Charges Brought Against Nine Illegal AliensRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, announced that charges were brought yesterday against the following:
Anicteo Baltazar-Uribe, age 20, a native and citizen of Mexico, was charged in a one-count indictment by a federal grand jury in Harrisburg. The indictment alleges that Baltazar-Uribe, previously arrested and deported from the United States in September 2012, knowingly and unlawfully reentered the United States and was apprehended in Cumberland County, Pennsylvania.
If convicted, Baltazar-Uribe faces a maximum sentence of up to two years’ imprisonment and a $250,000 fine.
Luis Seba-Polito, age 27, a native and citizen of Mexico, was charged in a one-count indictment by a federal grand jury in Harrisburg. The indictment alleges that on or before July 25, 2014, Seba-Polito used or attempted to use a fraudulent lawful permanent resident card during an encounter with immigration officials in Adams County, Pennsylvania.
If convicted, Seba-Polito faces a maximum sentence of up to ten years’ imprisonment and a $250,000 fine.
Jose Aguilar-Cruz, age 43, a native and citizen of Honduras, was charged in a one-count indictment by a federal grand jury in Harrisburg today. The indictment alleges that Aguilar-Cruz, previously arrested and deported from the United States in June 2013, did knowingly and unlawfully reenter the United States and was apprehended in Cumberland County, Pennsylvania.
If convicted, Aguilar-Cruz faces a maximum sentence of up to two years’ imprisonment and a $250,000 fine.
Oscar Gonzalez-Herrera, age 26, a native and citizen of Mexico, was charged in a one-count indictment by a federal grand jury in Harrisburg. The indictment alleges that on or before July 15, 2014, Gonzalez-Herrera knowingly possessed, used, or attempted to use a fraudulent lawful permanent resident card during an encounter with immigration officials in York, York County, Pennsylvania.
If convicted, Gonzalez-Herrera faces a maximum sentence of up to ten years’ imprisonment and a $250,000 fine.
Jose Baltazar-Uribe, age 29, a native and citizen of Mexico, was charged in a one-count information filed with the Court in Harrisburg. The information alleges that Baltazar-Uribe, entered the United States at any time or place other than as designated by immigration officers and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Baltazar-Uribe faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
Manuel Angel Acevedo-Sola, age 47, a native and citizen of Guatemala, was charged in a one-count information filed with the Court in Harrisburg. The information alleges that Acevedo-Sola, entered the United States at a time or place other than as designated by immigration officers and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Acevedo-Sola faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
Pedro Reyes-Soto, age 46, a native and citizen of Honduras, was charged in a one-count information filed with the Court in Harrisburg. The information alleges that Reyes-Soto, entered the United States at a time or place other than as designated by immigration officers and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Reyes-Soto faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
Armando Hernandez-Montiel, age 36, a native and citizen of Mexico, was charged in a one-count information filed with the Court in Harrisburg. The information alleges that Hernandez-Montiel, entered the United States at a time or place other than as designated by immigration officers and was found in the United States in Adams County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Hernandez-Montiel faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
Jacinto Gabriel-Lopez, age 27, a native and citizen of Mexico, was charged in a one-count information filed with the Court in Harrisburg. The information alleges that Gabriel-Lopez, entered the United States at a time or place other than as designated by immigration officers and was found in the United States in Adams County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Gabriel-Lopez faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
These cases were investigated by the U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO) and are being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.
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 guilty 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 offenses are not an accurate indicator of the potential sentence for a specific defendant.
Brodheadsville Man Charged with Trafficking Crack CocaineRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal Information was filed in U.S. District in Scranton yesterday charging a Monroe County resident with distributing crack cocaine during 2013.
According to United States Attorney Peter Smith, the Information alleges that Jose Hernandez-Tirado, age 34, of Brodheadsville, distributed and possessed with intent to distribute cocaine base (“crack”).
The charge stems from an investigation by special agents of the Drug Enforcement Administration, Department of Homeland Security (DHS), Homeland Security Investigations (HSI), the Pennsylvania State Police, the Bureau of Narcotics Investigations, and Berks County Detectives.
Hernandez-Tirado faces a potential maximum sentence of 20 years in prison and a $1 million fine if he is convicted of the charge.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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 guilty 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.
Monroe County Man Pleads Guilty to Participating in A Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 40-year-old Effort man pleaded guilty yesterday before U.S. Magistrate Judge Karoline Mehalchick to conspiring with others to distribute heroin in the Monroe County area during a six-month time period.
According to United States Attorney Peter Smith, the defendant, Kerion Johnson, admitted to committing the crime between November 2013 and April 22, 2014.
Johnson was charged in a criminal Information filed by the United States Attorney on June 4, 2014, following an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police.
Johnson faces a potential maximum sentence of 20 years in prison and a $1 million fine. Johnson will be sentenced by Senior U.S. District Court Judge Richard P. Conaboy at a future date. Johnson was ordered to be detained in prison pending sentencing in the case.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
A sentence following a finding of guilty 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.
Insurance Firm Operator Charged with Fraud and Tax EvasionRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced a two-Count criminal Information was filed yesterday in U.S. District Court in Scranton charging Joseph S. Hyduk, age 54, Hazleton, Pennsylvania, with wire fraud and income tax evasion.
The Information alleges that Hyduk did business as BNA Financial Services, an insurance company which he operated from his home. Allegedly, during 2010 through 2012, Hyduk fraudulently diverted approximately $1 million dollars from his clients’ accounts to himself for his own personal use. The Government also filed a plea agreement in the case which is subject to the approval of the Court.
If convicted, Hyduk faces a maximum of 25 years’ incarceration, $500,000 in fines and a term of supervised release.
The investigation was conducted by the FBI Allentown office and the Internal Revenue Service, Criminal Investigation, Scranton office. Prosecution is assigned to Assistant U.S. Attorney Michelle Olshefski.
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 guilty 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.
York Springs Man Charged with Workers' Compensation FraudRead the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced that a criminal information was filed in U.S. District Court in Harrisburg yesterday charging Robert M. Fowler, 60, of York Springs, Pennsylvania, with workers' compensation fraud involving $24,934.68 of benefits he was not entitled to receive. If convicted, Fowler faces up to five years' imprisonment, $250,000 in fines and restitution. A plea agreement was also filed indicating that Fowler intends to plead guilty when he appears for his arraignment in federal court. The plea agreement is subject to approval by the Court
According to U.S. Attorney Peter Smith, Fowler allegedly sustained an on-the-job injury in 1999 while working at the Defense Industrial Plant Equipment Center in Mechanicsburg, Pennsylvania, and began receiving federal workers' compensation benefits from the Office of Workers' Compensation Programs (OWCP) shortly thereafter. Recipients of these benefits are required to submit forms to OWCP on a periodic basis to insure they are still eligible to receive the benefits.
The criminal charge filed today allegedly indicates that Fowler lied on several forms he submitted to OWCP because he falsely claimed he was not incarcerated during the prior 15 months for a felony and was residing with his wife. In fact, Fowler was in the Adams County Jail between September 2012 and July 2013 and had not resided with his wife between October 2010 and March 2014. As a result of the false statements, OWCP paid Fowler $24,934.18 which he was not entitled to receive.
The case was investigated by the U.S. Department of Labor, Office of Inspector General, and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.
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 guilty 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.
Federal Inmate Charged with Mailing Threatening CommunicationsRead the Press Release
The United States Attorney for the Middle District of Pennsylvania, announced that charges have been filed against Sinclair L. Atkins who is currently confined at United States Penitentiary Terre Haute, Indiana.
According to United States Attorney, Peter Smith, Atkins, age 63, is charged in a one-count felony information with mailing threatening letters to various federal officials. The offense is alleged to have occurred in November 2011, while Atkins was confined at the United States Penitentiary, Lewisburg, Pennsylvania.
The investigation was conducted by the Federal Bureau of Investigation, and the United States Marshal’s Service. Assistant United States Attorney Wayne P. Samuelson is 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.
The government also filed a plea agreement in the case which is subject to the approval of the assigned judge.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is ten years imprisonment, and a fine of $250,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Fulton County Investment Advisor Sentenced to 262 Months' ImprisonmentRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Robert G. Bard, age 47, of Warfordsburg, Pennsylvania, was sentenced by Senior U.S. District Court Judge Sylvia H. Rambo to 262 months’ imprisonment, ordered to pay $4.2 million in restitution to 66 victims, and was placed on two years supervised release after release from prison.
In handing down her sentence, Judge Rambo stated “Bard’s actions had a devastating impact on his victims and the lengthy sentence was appropriate under the circumstances.” Judge Rambo ordered that Bard be immediately taken into custody to commence serving his sentence. A number of victims were present in the courtroom and applauded as Bard was taken into custody.
Bard was convicted of 21 counts of securities fraud, mail fraud, wire fraud, bank fraud, and making false statements after a seven-day jury trial in August 2013. The evidence at trial proved that Bard was a registered investment advisor and was the owner and operator of Vision Specialist Group (VSG) between December 2004 and August 2009. The jury convicted Bard of defrauding numerous investors by, among other things, misrepresenting the value and make-up of their investment portfolios.
Bard executed the scheme by creating phony account statements which significantly inflated the value of the investors’ accounts and included securities that were not owned by the investor. Bard created the phony account statements to conceal over $5.8 million in losses his clients sustained between 2006 and 2009 as a result of risky and speculative stocks he purchased on their behalf.
Bard also failed to inform his clients that he was terminated from his prior employment as a stock broker for forging customer signatures on financial documents, had received a lifetime ban from the National Association of Securities Dealers and had declared personal bankruptcy in 2005.
The case was investigated by the FBI with assistance from the U.S. Securities and Exchange Commission. Senior Litigation Counsel Bruce Brandler handled the prosecution.
Pittston Man Sentenced to Nearly Two Months in Prison for Bringing Gun into Federal BuildingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 58-year-old Pittston resident pleaded guilty and was sentenced yesterday by U.S. Magistrate Judge Karoline Mehalchick to nearly two months in prison for unlawfully possessing and causing to be present a loaded firearm inside the William J. Nealon Federal Building in Scranton on June 5, 2014.
According to United States Attorney Peter Smith, the defendant, Jerome Vantaggi, was sentenced to time already served in prison, which totaled 55 days.
The charge against Vantaggi resulted from an investigation by the United States Marshals Service.
Vantaggi must also pay a $25 special assessment, and serve a year on supervised release. Judge Mehalchick ordered that Vantaggi may not possess a firearm while on supervised release and must undergo a mental health evaluation.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
****Harrisburg Woman Sentenced to Prison for Making False Claims to the IRSRead the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced that Stephanie A. Metz, age 25, of Harrisburg, Pennsylvania, was sentenced to serve a year in prison and pay $57,216.22 to the IRS for her role in a conspiracy to submit 33 fraudulent income tax returns to the IRS requesting $242,095 in fraudulent tax refunds for the years 2010 and 2011. U.S. District Court Judge Yvette Kane ordered that Metz surrender to the Bureau of Prisons on August 25, 2014 to commence serving her sentence.
According to U.S. Attorney Peter Smith, Metz provided a co-conspirator with addresses where the fraudulent income tax refund checks could be delivered by mail and was paid a fee for each refund check she delivered to her co-conspirator. For the tax years 2010 and 2011, Metz provided addresses for 33 fraudulent income tax returns requesting $242,095 in fraudulent tax refunds. The IRS paid out $57,216 to the co-conspirator before the scheme was detected in early 2012.
The investigation is part of a project known as Operation Mass Mail involving the filing of hundreds of thousands of false returns using stolen identity information of residents of Puerto Rico. The investigation was conducted by the Criminal Investigation Division of the IRS and is assigned to Senior Litigation Counsel Bruce Brandler.
****Avoca Woman Charged with Health Care FraudRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Sandra Jalowiec, age 43, Avoca, Pennsylvania was charged with health care fraud in a criminal information filed in U.S. District Court in Scranton yesterday.
According to United States Attorney Peter Smith, Jalowiec, allegedly engaged in a scheme and artifice to defraud Blue Cross of Northeastern Pennsylvania for the period beginning January 2008 through May 2014.
The charges stem from an investigation initiated in June 2014 by the Federal Bureau of Investigation and the Department of Health and Human Services.
The information alleges that Jalowiec defrauded Blue Cross of Northeastern Pennsylvania by forging prescriptions in the name of a licensed medical doctor. The prescriptions were fraudulently written by Jalowiec for pain medications. Blue Cross was then billed for the forged and fraudulent claims. The government also filed a plea agreement in the case. The agreement is subject to the approval of the Court. Jalowiec will be required to pay restitution for the loss amount.
In this particular case, the maximum penalty under the federal statute 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.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Two Mexican Citizens Sentenced to Prison for Illegal ReentryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that two Mexican citizens, who were in the United States illegally, were sentenced to prison on charges of illegal reentry into the United States.
German Espinosa-Hernandez, also known as Ferdinand Gonzalez-Velez, age 36, a native and citizen of Mexico in the United States illegally, was sentenced today by United States District Judge Yvette Kane to 36 months imprisonment and three years of supervised release following his release from imprisonment after pleading guilty to illegal reentry into the United States on March 11, 2014.
According to U.S. Attorney Peter Smith and documents filed in federal court, Espinosa-Hernandez was ordered removed by an Immigration Judge in York, Pennsylvania in May, 2008 and was previously removed from the United States on two prior occasions, in May and June, 2008.
Additionally, Espinosa-Hernandez was granted voluntary returns to Mexico on two other occasions, in December, 1999 and August, 2008. Since 2003 Espinosa-Hernandez has accumulated seven prior criminal convictions as an adult, including resisting arrest and three driving under the influence of alcohol offenses. On September 24, 2013, after having reentered the United States illegally Espinosa-Hernandez was again apprehended in Franklin County by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations.
On Wednesday, July 23, 2014, Alberto Bautista-Sanchez, age 30, a native and citizen of Mexico in the United States illegally, was sentenced by United States District Judge Yvette Kane to 41 months imprisonment and three years of supervised release following his release from imprisonment after pleading guilty to illegal reentry into the United States on March 19, 2014.
According to U.S. Attorney Peter Smith and documents filed in federal court, Bautista-Sanchez was ordered removed from the United States by an Immigration Judge in Arizona in November, 2002. Between November 2002 and January 2013, Bautista-Sanchez was previously removed from the United States eight times. Additionally, since 2001, Bautista-Sanchez has accumulated thirteen prior criminal convictions as an adult, including two aggravated felony sex offenses involving a minor.
On December 3, 2013, after reentering the United States illegally, Bautista-Sanchez was apprehended in Franklin County by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations.
These cases were investigated by the U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO) and were prosecuted by Special Assistant United States Attorney Brian G. McDonnell.
****Carbon County Man Charged with Producing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Todd Kowar, age 46, Kidder Township, Carbon County, was indicted today by a federal grand jury in Scranton on charges of producing child pornography and possessing child pornography.
According to United States Attorney Peter Smith, the grand jury alleges that Kowar persuaded and induced a minor to engage in sexually explicit conduct for the purpose of producing images of such conduct. The indictment alleges that Kowar committed the crimes between 2008 and December 2012.
The charges stem from an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and Kidder Township Police.
Kowar faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison if he is convicted of the production of child pornography charge; and faces a maximum sentence of 10 years in prison if he is convicted of the possession of child pornography charge.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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 guilty 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.
Former High School Teacher Sentenced to 108 Months Imprisonment for Possession and Receipt of Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeffrey Schmutzler, age 43, of Fayetteville, Pennsylvania was sentenced yesterday by Senior United States District Judge William Caldwell to 108 months’ imprisonment, a $15,000 fine and ten years of supervised release following his release from imprisonment after pleading guilty to possession and receipt of child pornography on July 29, 2013.
According to U.S. Attorney Peter Smith, in March of 2013, federal and state law enforcement officers executed a search warrant at the defendant’s home in Fayetteville, Pennsylvania and found several thousand videos and images of material containing child pornography, including 1425 images Schmutzler created using existing child pornographic images and Photo-shopping the cropped images of heads from 136 students at the school where he was employed. Schmutzler was employed as a teacher at Chambersburg High School.
This case was investigated by the United States Postal Inspection Service, the Pennsylvania State Police and the U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI). The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.
York Man Sentenced to 35 Years in Federal Child Exploitation CaseRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that Thomas A. O'Connor, 46, of York, Pennsylvania was sentenced to 420 months’ imprisonment by Chief Judge Christopher C. Conner in U.S. District Court in Harrisburg. O'Connor had previously pleaded guilty to production and receipt of child pornography for enticing a young boy to produce sexually explicit videos of himself online. Agents also found thousands of images and videos depicting minors engaged in sexually explicit conduct on computers in O'Connor's home. In addition, O’Connor confessed to sexually abusing a young child with special needs for several years.
This case was brought as part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative designed to protect children from online exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Meredith A. Taylor.
Hazleton Man Sentenced to Federal Prison on Drug ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Hazleton man was sentenced yesterday, in federal court in Scranton, by United States District Judge Robert Mariani, to serve 46 months in prison on a charge of conspiracy to distribute cocaine.
According to United States Attorney Peter Smith, Juan Carlos Alvarez, age 28, a resident of Hazleton, pleaded guilty to the charge in March of this year. Alvarez was ordered to serve an additional 3 years’ under court supervision upon his release from prison.
Alvarez was charged after an investigation conducted by the United States Drug Enforcement Administration, the Hazleton Police Department and the Butler Township Police Department.
The case was prosecuted by Assistant United States Attorney William S. Houser.
Monroe County Man Pleads Guilty to Distributing Crack CocaineRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 31-year-old Stroudsburg man pleaded guilty today before Senior U.S. District Court Judge James M. Munley to distributing crack cocaine in the Monroe County area during a seven-month time period.
According to United States Attorney Peter Smith, the defendant, Dominic Darby, admitted to distributing and possessing with intent to distribute crack cocaine from October 2013 to April 30, 2014.
Darby was charged in a criminal Information filed by the United States Attorney on July 17, 2014, following an investigation by special agents of the Federal Bureau of Investigation and the Pennsylvania State Police.
Darby faces a potential maximum sentence of 20 years in prison and a $1 million fine. Judge Munley scheduled sentencing for October 23, 2014.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Penn National Racetrack Employee Pleads Guilty to Fraud ChargeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Danny Robertson, 63, Hershey, Pennsylvania pled guilty in United States District Court in Harrisburg to wire fraud relating to providing false information to racing officials and the public.
According to United States Attorney Peter Smith, Robertson was an employee at the Penn National racetrack and worked as a clocker. His duties included being present at the racetrack when horses had their official workout. Robertson was responsible for verifying that the horse was the actual horse the trainer represented it to be, accurately recording the distance and the time the horse ran in and providing the information to racing officials for the official daily racing program. Robertson also provided the workout time information by interstate wire via computer to Equibase, a Kentucky-based company that distributes information on a racehorse’s performance and workout times to organizations, media outlets and publications such as the Daily Racing Form, as well as on its own website.
Robertson was charged in an indictment presented on November 20, 2013. The count of the Indictment to which Robertson pled guilty alleged that the workout time information is relied upon by the betting public in deciding which horse to wager on in any given race. Robertson admitted that, in exchange for cash, he provided false workout times to racing officials and to Equibase. The times provided by Robertson as part of the fraud were inaccurate, or were completely fabricated for a horse that did not work out at all at the track. Robertson profited personally from the scheme, the betting public was defrauded and Robertson’s’ employer, Hollywood Casino and Racetrack, was denied its right to Robertson’s honest services.
Robertson pled guilty today before Senior U.S. District Court Judge William W. Caldwell pursuant to a plea agreement with the government. The investigation was conducted by the Federal Bureau of Investigation’s Harrisburg Resident Agency, the Pennsylvania State Police and the Pennsylvania State Horse Racing Commission. Prosecution was assigned to Assistant United States Attorney William A. Behe.
Robertson faces up to 20 years imprisonment and a $250,000 fine.
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 guilty 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.
Owner of Forty Fort GM Foodmart Store Sentenced to Prison for Money Laundering ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 47-year-old Forty Fort businessman was sentenced to 31 months in federal prison today by Senior U.S. District Court Judge Edwin M. Kosik for participating in a conspiracy to launder drug proceeds related to the distribution of synthetic marijuana.
According to United States Attorney Peter Smith, the defendant, Mastan Mathan, of Forty Fort, previously admitted to conducting financial transactions with drug proceeds that were designed to conceal the nature of the proceeds and carry on the illegal distribution of synthetic marijuana. The money laundering activity occurred between October 2011 and July 2012, and involved approximately $310,000.
Mathan was charged in a criminal Information filed by the United States Attorney. The Information states that Mathan and his co-conspirators obtained synthetic marijuana from out-of-state suppliers; sold synthetic marijuana to customers from the GM Foodmart Store in Forty Fort; and deposited the proceeds of drug sales into at least two bank accounts in order to conceal the illegal nature of the proceeds and to promote the carrying on of the illegal drug business.
The prosecution of Mathan resulted from an investigation by the IRS Criminal Investigative Division, the Drug Enforcement Administration, and the Pennsylvania State Police.
Judge Kosik also ordered Mathan to be placed on supervised release for two years after serving his prison sentence. Mathan has forfeited approximately $174,000 to the United States that was seized by agents during the investigation.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Forex Trader Sentenced for Defrauding Investors of over $400,000Read the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced today that Christopher A. Engel, 34, formerly of Glen Rock, Pennsylvania, and currently residing in Washington, Utah, was sentenced in connection with his operation of Pinnacle Forex Group ("PFG"), LLC, a currency trading firm that he operated from his home in Glen Rock.
United States District Court Judge Yvette Kane sentenced Engel to 38 months’ imprisonment, $405,500 in restitution and two years’ supervised release. Engel was ordered to surrender to the Bureau of Prisons on August 18, 2014.
According to U.S. Attorney Peter Smith, Engel created PFG in 2010 and advertised it on the internet as "a full scale currency investment firm" that was "in the top 1% of currency traders." Between June 2011 and October 2012, Engel allegedly received $411,500 from 21 investors throughout the United States that was supposed to be invested in the Foreign Exchange Market ("Forex"). Engel admitted he only invested $137,000 of the money into the Forex market and later withdrew those funds for personal expenses. The remaining funds were never invested and also used by Engel for personal expenses.
The case was investigated by the FBI and was prosecuted by Senior Litigation Counsel Bruce Brandler.