Middle District of Pennsylvania
Press releases recorded for this federal judicial district.
Chicago Resident Charged with Interstate Travel to Facilitate Drug TraffickingRead 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 Chicago resident with traveling in interstate commerce to promote and facilitate drug trafficking.
According to United States Attorney Peter Smith, the Information alleges that Maria Pina, age 44, a Mexican national who resided in Chicago, Illinois, at the time of her arrest, traveled from Illinois to Pennsylvania on February 11 and 12 of this year to further the efforts of a drug trafficking conspiracy operating in the Middle District of Pennsylvania and elsewhere.
The charge stems from an investigation by special agents of 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 if she 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.
Bloomsburg Resident Charged with Bank LarcenyRead the Press Release
The United States Attorney for the Middle District of Pennsylvania announced that charges have been filed in U.S. District Court in Williamsport against Mary Ann Gillespie of Bloomsburg, Pennsylvania.
According to United States Attorney, Peter Smith, Gillespie, age 59, is charged in a one-count felony information with bank larceny during the period of November 2008 to September 2013. The offense is alleged to have occurred as a check kiting scheme carried out by the defendant involving accounts at the First Columbia Bank and Trust Company and Fulton National Bank in Bloomsburg.
The investigation was conducted by the Federal Bureau of Investigation, Williamsport Resident Agency. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.
The government also filed a plea agreement in the case which is subject to the approval of the assigned judge.
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.
Three Harrisburg Men Indicted for Evading over $1 Million in Employment TaxesRead the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced today that Vanny Son (33), Son Thach (55), and Hung Danh (54), all of Harrisburg, Pennsylvania, were indicted by the federal grand jury on charges they participated in a tax scheme that resulted in over $1 million in losses to the IRS. Vanny Son and Son Thach were arrested and brought before U.S. Chief Magistrate Judge Martin C. Carlson for an initial appearance and released on bail pending trial, which is scheduled for September 3, 2014. An arrest warrant is pending for Hung Danh, who remains a fugitive.
According to U.S. Attorney Peter Smith, Son and Thach allegedly operated five employee leasing businesses in Harrisburg between 2006 and 2012 and paid their employees over $7 million in cash without withholding income taxes or Federal Insurance Contribution Act (FICA) taxes resulting in a tax loss of over $1 million to the IRS. Danh helped operate one of the employee leasing businesses during that time, known as HD Staffing. The names of the employee leasing companies operated by the defendants and the years of operation are as follow:
Vanny and Son Services (V&S), (2006-2007)
Industrial Labor Services (ILS), (2007)
Advance Labor Services (ALS), (2008)
HD Staffing (HD), (2009-2010)
TD Staffing (TD), 2011-2012)Employers are required to withhold income taxes from employee wages based on the number of allowances on the employees' W-4 Form. Employers are also required to withhold FICA taxes from their employees' wages at the FICA tax rate and remit those payments, along with the employee's matching FICA tax, when they file their Employer's Quarterly Federal Income Tax Return-Form 941. The 37-count Indictment charges the defendants with conspiring to evade these employment taxes, tax evasion, and causing multiple false Forms 941 and Forms 1120 to be filed with the IRS which failed to report any of the cash wages paid to their employees.
The defendants face up to five years' imprisonment and $250,000 in fines for the conspiracy count and tax evasion charges, and up to three years' imprisonment and $250,000 in fines for filing false tax returns, along with full restitution to the IRS.
The case was investigated by the Criminal Investigation Division of the IRS 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.
In this case, the maximum penalty under the federal statute is 5 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.
Three New York Men Charged Federally with Fraudulent Possession of Credit CardsRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania and the United States Secret Service, announced today that three New York men have been charged with Possession of Fifteen or More Counterfeit or Unauthorized Access Devices today by a federal grand jury in Harrisburg.
According to United States Attorney Peter Smith, Danilo Vargas, age 25, Dawill Miguel Almonte, age 22, and Jeriel Delosangeles, age 25, allegedly possessed approximately 62 counterfeit credit cards. The charges arose out of a car stop by the Pennsylvania State Police in York County in November 2013.
If convicted, Vargas, Almonte, and Delosangeles face a term of imprisonment of up to ten years and fines up to $250,000.
This investigation was conducted by the United States Secret Service and Pennsylvania State Police. It 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.
*****Philadelphia Man Charged with Drug Trafficking and Firearms Violation in HarrisburgRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that Jose Juan Albertorio-Garcia, 45, of Philadelphia, Pennsylvania, was indicted by a federal grand jury in Harrisburg. The indictment charges Garcia with Possession of a Firearm in furtherance of Drug Trafficking and five counts of Possession With Intent to Distribute a Controlled Substance.
According to United States Attorney Peter Smith, the charges against Garcia are a result of allegations that Garcia was supplying heroin for distribution in Harrisburg from June 2013 through March 2014. In addition, Garcia is charged with possessing a firearm in furtherance of drug trafficking at the time of his arrest.
If convicted, Garcia faces a statutory maximum of life imprisonment and a mandatory minimum of five years’ imprisonment.
This case is being investigated by the Drug Enforcement Administration and the Pennsylvania State Police as part of a continuing initiative to combat violent crime in Harrisburg. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of 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 Charged with Distributing Crack CocaineRead 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 distributing crack cocaine during a seven-month time period.
According to United States Attorney Peter Smith, the Information alleges that Dominic Darby, age 31, of Stroudsburg, Pennsylvania, distributed and possessed with intent to distribute cocaine base (“crack”) in Monroe County from October 2013 to April 30, 2014.
The charge stems from an investigation by 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 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.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Hummelstown Man Charged Federally with Illegal Possession of FirearmRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that Devonte Betts, 20, of Hummelstown, Pennsylvania was indicted by a federal grand jury in Harrisburg. The indictment charges Betts with Possession of a Firearm by a Convicted Felon, Possession of a Firearm in furtherance of Drug Trafficking, and two counts of Possession With Intent to Distribute a Controlled Substance.
According to United States Attorney Peter Smith, the charges against Betts are a result of allegations that Betts was in the vicinity of 13th and Market Streets, Harrisburg, on June 6, 2014, in possession of two firearms, as well as heroin and crack cocaine.
If convicted, Betts faces a statutory maximum of life imprisonment and a mandatory minimum of five years’ imprisonment.
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.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Harrisburg Bureau of Police as part of the ongoing cooperative effort to combat violent crime in the City. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Harrisburg Man Charged with Drug Trafficking OffensesRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that Nicholas Rivera, 40, of Harrisburg, Pennsylvania, was indicted by a federal grand jury in Harrisburg, Pennsylvania. The indictment charges Rivera with five counts of Distribution or Possession with Intent to Distribute a Controlled Substance.
According to United States Attorney Peter Smith, the charges against Rivera are a result of allegations that Rivera was selling cocaine and heroin in Harrisburg from March 2014 through May 2014.
If convicted, Rivera faces a statutory maximum 20 years’ imprisonment.
This case is being investigated by the Drug Enforcement Administration, the Pennsylvania State Police and the Dauphin County Drug Task Force. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of 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.
USP-Canaan Inmate Sentenced to 15years’imprisonment for Attempted MurderRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Senior United States District Court Judge James M. Munley sentenced an inmate at the United States Penitentiary at Canaan, Pennsylvania, to 15 years’ imprisonment for stabbing another inmate multiple times with a sharpened weapon and with the intent to commit murder. Eddie Joe Sutton, age 60, formerly of Texas, was charged with the offense and pleaded guilty on April 15, 2014.
According to United States Attorney Peter Smith the attack on the victim inmate occurred on November 7, 2013; the victim inmate survived the attack but suffered numerous stab wounds which required treatment at a local hospital. At the time of the attack, Eddie Joe Sutton was serving a 20-year sentence for bank robbery. Judge Munley ordered the 15-year imprisonment term to be served after completion of his bank robbery sentence.
The case was investigated by the FBI and the Special Investigation Section at USP-Canaan.
Assistant United States Attorney John Gurganus prosecuted the case.
Lackawanna County Woman Charged with Defrauding Credit UnionRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an indictment was returned by a grand jury charging Farah Laurent, age 30, of Scranton, Pennsylvania, with obtaining approximately $26,000 by fraud from the Tobyhanna Federal Credit Union in May through July of 2010.
According to United States Attorney Peter Smith, Laurent allegedly made fictitious credit card payments to the Tobyhanna Federal Credit Union by using either closed or invalid at other banks.
Laurent faces a maximum sentence up to 30 years in prison and fines in the amount of $500,000.
The prosecution is the result of an investigation by the United States Secret Service. 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 30 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Hughestown Borough Police Officer Pleads Guilty to Drug Trafficking OffenseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Robert F. Evans, Jr., age 38, of Moosic, Pennsylvania, pleaded guilty to a one-count Criminal Information charging that he distributed oxycodone on numerous occasions between August 2012 and July 29, 2013. At the time of the offense, Evans was employed as a police officer with the Hughestown Borough Police Department.
At the guilty plea hearing, United States District Court Judge Malachy E. Mannion accepted Evans’ guilty plea after Evans acknowledged distributing approximately 750 oxycodone pills during the scheme; possessing a firearm in connection with the activity; and abusing his position of trust as a police officer which significantly facilitated and concealed the offense. Judge Mannion ordered that a presentence investigation report be compiled in advance of the sentencing.
United States Attorney Peter J. Smith stated that the charge is the result of an investigation conducted by the Federal Bureau of Investigation and the Pennsylvania State Police. Prosecution is assigned to Assistant United States Attorney John Gurganus.
A sentence following a guilty plea 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 twenty 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.
Erie Man Charged with Illegally Possessing A Firearm and AmmunitionRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that James Presley, a 43-year-old Erie, Pennsylvania resident was indicted by a federal grand jury today for unlawfully possessing a firearm and ammunition as a convicted felon in Luzerne County on May 15, 2014.
According to United States Attorney Peter Smith, the grand jury alleges that James Presley unlawful possessed a Hi Point 9mm firearm. The indictment alleges that at the time he possessed the firearm and ammunition Presley was a convicted felon.
The charge stems from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pennsylvania State Police.
If the defendant is convicted of the charge, he faces up to 10 years in prison and a $250,000 fine.
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.
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.
Former Chief Operating Officer and Co-owner of Schuylkill Products Sentenced in Largest Disadvantaged Business Enterprise Fraud in Nation's HistoryRead the Press Release
Ernest G. Fink, Jr., 68, of Orwigsburg, Pennsylvania, the former Chief Operating Officer and co-owner of Schuylkill Products Inc., was sentenced in federal court in Harrisburg, Pennsylvania, today to 51 months’ imprisonment and ordered to pay fines totaling $25,100 for his role in a massive conspiracy to defraud the Disadvantage Enterprise (DBE) program, announced Peter Smith, U.S. Attorney for the Middle District of Pennsylvania. Senior U.S. District Court Judge Sylvia H. Rambo directed that Fink report to prison no later than September 8, 2014.
In handing down the sentence, Judge Rambo stated “DBE fraud is pervasive in the construction industry and persons so inclined to commit the same kind of fraud need to be aware that they face serious consequences from DBE fraud.”
According to the U.S. Department of Transportation (USDOT), this scheme, which lasted for over 15 years and involved over $136 million in government contracts in Pennsylvania alone, is the largest reported Disadvantaged Business Enterprise (DBE) fraud in the nation’s history.
On August 16, 2010, Fink pleaded guilty to conspiracy. Sentencing was deferred pending the resolution of the case against Joseph W. Nagle, SPI’s former president and co-owner.
In April 2012, after a four-week jury trial, a federal jury found Nagle guilty on 26 charges in the indictment, including conspiracy to defraud the USDOT and to commit wire and mail fraud, seven counts of wire fraud, six counts of mail fraud, conspiracy to commit money laundering and 11 counts of money laundering.
On June 30, 2014, Nagle was sentenced to 84 months imprisonment and ordered to pay fines totaling $27,600.
Fink was Vice-President, Chief Operating Officer and co- owner of Schuylkill Products Inc. (SPI) and its wholly-owned subsidiary CDS Engineers Inc. (CDS), until April 2009 when SPI was sold. SPI, based in Cressona, Pennsylvania, manufactured concrete bridge beams used on highway construction projects in Pennsylvania and surrounding states. CDS was SPI’s erection division and installed SPI’s bridge beams as well as other suppliers’ products on highways in Pennsylvania and surrounding states. The conspiracy defrauded USDOT, the Pennsylvania Department of Transportation (PennDOT) and the Southeastern Pennsylvania Transportation Authority (SEPTA) in connection with the federal government’s DBE program.
USDOT provides billions of dollars a year to states and municipalities for the construction and maintenance of highways and mass transit systems on the condition that small businesses, owned and operated by disadvantaged individuals, receive a fair share of these federal funds. In Pennsylvania, PennDOT and SEPTA receive these funds and requires contractors to award a percentage of their subcontracts to eligible DBE’s.
The USDOT Office of Inspector General has cautioned prime contractors and subcontractors not to engage in fraudulent DBE activity and encouraged them to report any suspected DBE fraud by contacting www.oig.dot.gov/hotline.
Fink and his co- conspirators executed the scheme by using a small Connecticut highway construction firm known as Marikina Construction Corporation as a front company to obtain these lucrative government contracts.
Marikina was owned by Romeo P. Cruz of West Haven, Connecticut, a naturalized American citizen born in the Philippines. Marikina was certified by PennDOT and SEPTA as a DBE. Although Marikina received the DBE contracts on paper, all the work was performed by SPI and CDS personnel, and SPI and CDS received all the profits. In exchange for letting SPI and CDS use its name, Marikina was paid a small fixed-fee, set by SPI.
SPI and CDS personnel pretended to be Marikina employees by using Marikina business cards, email addresses, stationery, and signature stamps, as well as using magnetic placards and decals bearing the Marikina logo to cover up SPI and CDS logos on SPI and CDS vehicles.
Earlier this year, three other former executives associated with SPI, CDS and Marikina were sentenced for their roles in the scheme.
Romeo P. Cruz, the former owner of Marikina, was sentenced to 33 months’ imprisonment, must pay $119 million in restitution and serve two years’ supervised release.
Timothy G. Hubler, of Ashland, Pennsylvania, CDS’ former Vice-President in charge of field operations, was sentenced to 33 months’ imprisonment, pay $119 million in restitution and serve two years’ supervised release.
Dennis F. Campbell, of Orwigsburg, Pennsylvania, SPI’s former Vice-President in charge of sales and marketing was sentenced to 24 months’ imprisonment, $119 million in restitution and serve two years’ supervised release.
The investigation was conducted by the FBI, the U.S. Department of Transportation Inspector General’s Office, the U.S. Department of Labor Inspector General’s Office, and the Criminal Investigation Division of the IRS. Senior Litigation Counsel Bruce Brandler handled the prosecution.
Wilkes-Barre Man Sentenced to Prison on Drug ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Wilkes-Barre man was sentenced yesterday, in federal court in Wilkes-Barre, by United States District Judge A. Richard Caputo, to serve 41 months in prison on a charge of conspiracy to distribute heroin.
According to United States Attorney Peter Smith, Dwayne Webb, age 33, a resident of Wilkes-Barre pleaded guilty to the charge in March of this year.
Webb was charged after an investigation conducted by the United States Drug Enforcement Administration, the Pennsylvania State Police and the Wilkes-Barre Police Department. An Indictment was filed against Webb and twelve other persons on June 4, 2014. Webb was classified as a career offender under the United States Sentencing Commission advisory sentencing guidelines.
The case was prosecuted by Assistant United States Attorney William S. Houser.
State Prison Inmate Pleads Guilty to Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that an inmate at SCI Waymart pleaded guilty today 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 Smith, the defendant, Eudy Gonzalez, age 24, admitted that he conspired with others to distribute and possess with intent to distribute heroin during a three-month period, while he was in prison.
Gonzalez was indicted by a federal grand jury on March 11, 2014, as a result of an investigation by special agents and task force officers of the Federal Bureau of Investigation and Scranton Police.
Gonzalez 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.
One of Gonzalez’s co-defendants, Linda Reyes, previously pleaded guilty and is awaiting sentencing.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Philadelphia Man Charged with Possession of Stolen PistolRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania today announced the return of a three-count indictment against Steven Oliver Singletary, age 27, of Philadelphia, Pennsylvania. The indictment charges Singletary with possession of a firearm by a convicted felon, possession of a stolen firearm, and possession of a firearm with an obliterated serial number.
According to United States Attorney Peter Smith, the indictment alleges that on July 2, 2014, in Williamsport, Pennsylvania, Singletary, a convicted felon, possessed a stolen Glock Model 17 9mm pistol which had an obliterated serial number.
If convicted of all the charges alleged in the indictment, Singletary faces a 25-year prison term, a three-year term of supervised release, and a $750,000 fine.The case was investigated by the Pennsylvania State Police, the Williamsport Bureau of Police, and the Federal Bureau of Investigation, Philadelphia Division. Prosecution of this matter has been assigned to Assistant United States Attorney George J. Rocktashel.
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 Sentenced to Prison on Fraud and Tax ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man was sentenced today, in federal court in Scranton, by United States District Judge Malachy Mannion, to serve 70 months in prison on charges of bank fraud and assisting in the preparation of a false federal income tax return.
According to United States Attorney Peter Smith, Brian Hewson, age 39, a resident of Canadensis, pleaded guilty to the charges in September, 2013. The 70 month sentence results from a 70 month sentence on the bank fraud charge and a 36 month sentence on the tax charge, to be served concurrently.
Hewson, who formerly operated a business known as Hewson Constracting, was charged after an investigation conducted by the United States Secret Service and the Internal Revenue Service, Criminal Investigation. An Indictment was filed against Hewson in December, 2012, charging him with bank fraud. In August, 2013, an Information was filed charging Hewson with bank fraud and aiding the filing of a false federal income tax return. The charges against Hewson arose from his involvement in a scheme to defraud customers of his contracting company by misappropriating checks and other banking information belonging to the customers and fraudulently causing money transfers to be made to Hewson and others. Hewson was also held accountable at sentencing for three counterfeit checks, totaling $150,000, that he attempted to cash while on pretrial release. Hewson did not declare the income from his crimes on his federal income tax return. In addition to the prison sentence, Hewson was ordered to make restitution in the amount of $379,000.
The case was prosecuted by Assistant United States Attorney William S. Houser.
Former Employee of Forty Fort GM Foodmart Store Sentenced to Two Years' Probation for Role in Synthetic Marijuana ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 26-year-old Indian national who worked at a GM Foodmart store in Kingston, Pennsylvania, was sentenced today to two years’ probation for his role in a conspiracy to distribute synthetic marijuana by Senior U.S. District Court Judge Edwin M. Kosik.
According to United States Attorney Peter Smith, the defendant, Manjinder Singh, also known as “Mintu,” who currently resides in New Jersey, previously admitted that he conspired with others to distribute synthetic marijuana from the store during January 2012 through July 2012.
The charge against Singh resulted from an investigation by the IRS Criminal Investigative Division, the Drug Enforcement Administration, and the Pennsylvania State Police.
Judge Kosik ordered Singh to spend the first four months of his sentence on home confinement with electronic monitoring.
The owner of the GM Foodmart store, Mastan Mathan, previously pleaded guilty to participating in a money laundering conspiracy connected to the sale of synthetic marijuana. He is awaiting sentencing.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Mexican Citizen Apprehended in Cumberland County Indicted for Illegal ReentryRead 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, Enforcement and Removal Operations (ERO) announced today that a 22-year-old native and citizen of Mexico has been charged with illegal reentry into the United States.
According to United States Attorney Peter Smith, David Aguilar-Araiza, age 22, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg today.
The indictment alleges that Aguilar-Araiza, previously arrested and deported in April 2012, reentered the United States and was apprehended in Cumberland County, Pennsylvania.
If convicted, Aguilar-Araiza faces a maximum sentence of up to two years’ imprisonment and a $250,000 fine.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO). It 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.
Former Hughestown Borough Police Officer Charged with Drug Trafficking OffenseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today the filing of a criminal information charging Robert F. Evans, Jr., age 38, Moosic, Pennsylvania, with distributing oxycodone on numerous occasions between August 2012 to July 29, 2013. At the time of the offense, Evans was employed as a police officer with the Hughestown Borough Police Department.
United States Attorney Peter Smith stated that the charge is the result of an investigation conducted by the Federal Bureau of Investigation and the Pennsylvania State Police. 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 twenty 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.
Wilkes-barre Man Charged with Drug Trafficking OffenseRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that Senior United States District Court Judge A. Richard Caputo has sentenced Alfred Oglesby, age 42, of Wilkes-Barre, Pennsylvania, to three years’ imprisonment for distributing cocaine on numerous occasions between 2010 and April 2, 2013.
According to United States Attorney Peter Smith, Oglesby obtained cocaine from another cocaine distributor in Wilkes-Barre for distribution to others in the Luzerne County area. On February 24, 2014, Oglesby appeared in federal court and pleaded guilty to cocaine distribution. In doing so, he admitted to distributing more than 500 grams of cocaine during the scheme.
In addition to the three-year term of imprisonment, Judge Caputo ordered that Oglesby be placed under the supervision of the United States Probation Office for a period of three years following the service of his prison sentence.
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.
Wilkes-Barre Man Sentenced to Prison on Drug ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Wilkes-Barre man was sentenced today, in federal court in Wilkes-Barre, by United States District Judge A. Richard Caputo, to serve 18 months in prison on a charge of using a communication device to facilitate heroin trafficking.
According to United States Attorney Peter Smith, Corey Arnott, age 22, a resident of Wilkes-Barre pleaded guilty to the charge in Marchof this year.
Arnott was charged after an investigation conducted by the United States Drug Enforcement Administration, the Pennsylvania State Police and the Wilkes-Barre Police Department. An Indictment was filed against Arnott and twelve other persons on June 4, 2014. The charges against Arnott arose from his involvement in heroin trafficking.
The case was prosecuted by Assistant United States Attorney William S. Houser.
Former Harrisburg Resident Sentenced to 60 Months Imprisonment for Possession of FirearmRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Anthony Knight, 45, formerly of Harrisburg, was sentenced to 60 months imprisonment by the Senior United States District Court Judge William Caldwell.
Knight was indicted in 2008 as the result of an investigation by Drug Enforcement Administration and the Dauphin County Drug Task Force. He plead guilty in May 2013, after admitting that he had possessed a .38 caliber firearm at the time of his arrest.
The case as part of a continuing cooperative effort to prosecute drug trafficking and firearms offenses in Dauphin County. The prosecutor assigned is Assistant Unites States Attorney Michael A. Consiglio.
****New York State Man Sentenced to Prison and Must Forfeit $275,000 for Money Laundering ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 29-year-old Vestal, New York, resident was sentenced to serve 20 months in prison and to forfeit $275,000 today by Senior U.S. District Court Judge A. Richard Caputo for his role in a money laundering conspiracy involving proceeds from the unlawful sale of synthetic marijuana.
According to United States Attorney Peter Smith, the defendant, Jaswinder Singh, previously admitted to conspiring with others to commit money laundering related to synthetic marijuana distribution in northeastern Pennsylvania and New York State.
Singh was charged in January 2014, as a result of an investigation by the Drug Enforcement Administration, Internal Revenue Service criminal investigators, and the Pennsylvania State Police. He pleaded guilty on January 30, 2014.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
****VA Hospital Nurse’s Aide Charged with Theft from PatientRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Warren T. Wells, of Moscow, Pennsylvania, was charged today with theft in connection with an incident at the Veterans Administration Hospital in Wilkes-Barre, on December 13, 2013.
According to United States Attorney Peter Smith, a criminal information was filed in U.S. District Court in Scranton charging Wells, a nurse’s aide employed by the VA, with theft of a golden crucifix necklace from a patient/veteran being treated at the VA Hospital. Wells was originally charged by local authorities. That prosecution will be withdrawn in favor of the federal charge. Wells has been placed on administrative leave by the VA pending the outcome of the criminal case.
The VA Hospital is a federal facility and alleged crimes on the premise are subject to prosecution in federal court.
If convicted, Wells could be sentenced to a statutory maximum of up to five years’ imprisonment and a fine of $250,000.
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.
The investigation was conducted by the U.S. Department of Veterans Affairs Police. The case is assigned to Assistant United States Attorney Todd K. Hinkley for prosecution.
Hazleton Man Charged with Drug Trafficking OffenseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced the filing of a criminal information in U.S. District Court in Scranton on June 27, 2014 charging Kelvin Martinez of Hazleton, Pennsylvania, with distributing heroin in Hazelton in 2012 and 2013.
United States Attorney Peter Smith stated that the charge is the result of an investigation conducted by the Federal Bureau of Investigation and the Pennsylvania State Police. Prosecution is assigned to Assistant United States Attorney John Gurganus.
The government also filed a plea agreement which is subject to approval by the Court.
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 twenty 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.
Former President and Owner of Schuylkill Products Sentenced in Largest Disadvantaged Business Enterprise Fraud in Nation’s HistoryRead the Press Release
Joseph W. Nagle, 53, of Deerfield Beach, Florida and the former president of Schuylkill Products Inc., was sentenced in federal court in Harrisburg, Pennsylvania, today to 84 months imprisonment and ordered to pay fines totaling $27,600 for his role in a massive conspiracy to defraud the Disadvantage Enterprise (DBE) program, announced Peter J. Smith, the U.S. Attorney for the Middle District of Pennsylvania. Senior U.S. District Court Judge Sylvia H. Rambo directed that Nagle report to prison no later than September 29, 2014.
According to the U.S. Department of Transportation (USDOT), this scheme which lasted for over 15 years and involved over $136 million in government contracts in Pennsylvania, alone, is the largest reported Disadvantaged Business Enterprise (DBE) fraud in the nation’s history.
In April 2012, after a four-week jury trial, a federal jury found Nagle guilty on 26 charges in the indictment, including conspiracy to defraud the USDOT and commit wire and mail fraud, seven counts of wire fraud, six counts of mail fraud, conspiracy to commit money laundering and 11 counts of money laundering.
“Preventing and detecting DBE fraud are priorities for the Secretary of Transportation and the USDOT Office of Inspector General,” said Doug Shoemaker, OIG Regional Special Agent in Charge. “This sentencing of Joseph Nagle, in what is the largest reported DBE fraud case in USDOT history, sends the clear signal that severe penalties await those who would attempt to subvert USDOT laws and regulations. We will continue to work with the Secretary of Transportation, the Administrators of the Federal Highway and Transit Administrations, and our law enforcement and prosecutorial colleagues to expose and shut down DBE fraud schemes throughout Pennsylvania and the United States.”
"This case represents our continued commitment to protecting the American workplace by identifying and prosecuting criminals who violate the laws relating to public contracts. We will continue to work with our law enforcement partners to combat these types of crimes" stated John T. Spratley, Special Agent in Charge of the Philadelphia Office of Labor Racketeering and Fraud Investigations, Office of Inspector General, U.S. Department of Labor.
"The audacious, long-term scheme perpetrated by Mr. Nagle and his cohorts stole money from taxpayers, and opportunity from legitimate small-business owners," said FBI Special Agent in Charge Edward J. Hanko. "This case highlights the FBI's commitment to fighting DBE fraud, and seeing those responsible brought to justice."
Nagle was President, Chief Executive Officer and part- owner of Schuylkill Products Inc. (SPI) and its wholly-owned subsidiary CDS Engineers Inc. (CDS) until April 2009 when SPI was sold. SPI was based in Cressona, Pennsylvania, and manufactured concrete bridge beams used on highway construction projects in Pennsylvania and surrounding states. CDS was SPI’s erection division and installed SPI’s bridge beams as well as other suppliers products, on highways in Pennsylvania and surrounding states. Nagle was convicted of joining an on-going 15-year conspiracy to defraud USDOT, the Pennsylvania Department of Transportation (PennDOT) and the Southeastern Pennsylvania Transportation Authority (SEPTA) in connection with the federal government’s DBE program when he became President in April 2004.
USDOT provides billions of dollars a year to states and municipalities for the construction and maintenance of highways and mass transit systems on the condition that small businesses, owned and operated by disadvantaged individuals, receive a fair share of these federal funds. In Pennsylvania, PennDOT and SEPTA receive these funds and they require contractors to award a percentage of their subcontracts to eligible DBE’s.
The OIG Regional Special Agent in Charge Shoemaker cautioned prime contractors and subcontractors not to engage in fraudulent DBE activity and encouraged them to report any suspected DBE fraud to us at www.oig.dot.gov/hotline.
Nagle was convicted of participating in the scheme which ran from 1993 to 2008, in which he and other executives at SPI diverted over 300 PennDOT and SEPTA construction contracts worth $136 million to SPI and CDS that were reserved for DBE’s. Nagle and his co- conspirators executed the scheme by using a small Connecticut highway construction firm known as Marikina Construction Corporation as a front company to obtain these lucrative government contracts.
Marikina was owned by Romeo P. Cruz of West Haven, Connecticut, a naturalized American citizen born in the Philippines. Marikina was certified by PennDOT and SEPTA as a DBE. Although Marikina received the DBE contracts on paper, all the work was performed by SPI and CDS personnel, and SPI and CDS received all the profits. In exchange for letting SPI and CDS use its name, Marikina was paid a small fixed-fee, set by SPI.
The scheme was carried out for over 15 years because of the numerous fraudulent steps the co-conspirators took to conceal the scheme. SPI and CDS personnel routinely pretended to be Marikina employees by using Marikina business cards, email addresses, stationery, and signature stamps, as well as using magnetic placards and decals bearing the Marikina logo to cover up SPI and CDS logos on SPI and CDS vehicles.
Earlier this year, three former executives associated with SPI, CDS and Marikina were sentenced for their roles in the scheme and one executive is awaiting sentencing.
Romeo P. Cruz, the former owner of Marikina, was sentenced to 33 months’ imprisonment, must pay $119 million in restitution and serve two years’ supervised release.
Timothy G. Hubler, of Ashland, Pennsylvania, CDS’ former Vice-President in charge of field operations, was sentenced to 33 months’ imprisonment, pay $119 million in restitution and serve two years’ supervised release.
Dennis F. Campbell, of Orwigsburg, Pennsylvania, SPI’s former Vice-President in charge of sales and marketing was sentenced to 24 months’ imprisonment, $119 million in restitution and serve two years’ supervised release.
Ernest G. Fink, of Orwigsburg, Pennsylvania, SPI’s former Vice-President, Chief Operating Officer and part-owner is scheduled to be sentenced on July 14, 2014.
The investigation was conducted by the FBI, the U.S. Department of Transportation Inspector General’s Office, the U.S. Department of Labor Inspector General’s Office, and the Criminal Investigation Division of the IRS. Senior Litigation Counsel Bruce Brandler and Assistant United States Attorney Kim Douglas Daniel handled the prosecution.
Former MoneyGram and Western Union Outlet Operator Sentenced to Federal Prison for Consumer Fraud and Money LaunderingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that today in Harrisburg a Texas man was sentenced by Chief U.S. District Court Judge Christopher C. Conner to 168 months’ (14 years) incarceration plus 3 years of supervised release and ordered to pay restitution for his role in defrauding over 1,200 consumer fraud victims out of $3.9 million and for laundering the proceeds.
According to U.S. Attorney Peter Smith, following a week-long trial in Harrisburg in July 2013, Olufemi Adigun, age 28, of Houston, Texas, was convicted by a jury on 14 counts, including conspiracy to commit mail and wire fraud, conspiracy to commit money laundering, unlawful monetary transactions, and money laundering.
Evidence at trial revealed that in 2008, Adigun operated MoneyGram and Western Union outlets out of an empty Houston storefront known as FAB Tax Services, a phony tax service provider. The location was used by Adigun and two conspirators, Benjamin Chikwe and Stanley Ohiri, to intercept $3,919,721 sent by approximately 1,240 victims from across the United States, including victims in Central Pennsylvania who were induced to send the transfers through mass marketing consumer fraud schemes.
The schemes relied on MoneyGram and Western Union money transfer systems for success. Commonly known as Secret Shopper, Grandma Scams, Advance Fee, or Canadian Lottery scams, these schemes have defrauded more than 500,000 Americans out of an estimated $1 billion since 2004. Typical victims are the elderly.
Many fraudsters contact victims via the U.S. mail, interstate courier, or the Internet promising cash prizes, lottery winnings, fictitious loans, or other payments. Counterfeit checks are then sent to the victims who are induced into cashing them and returning a portion of the funds to the fraudsters via the MoneyGram and Western Union money transfer systems. Victims eventually suffer a financial loss after the counterfeit checks bounce. Other Internet-based schemes induce the victims to purchase non-existent merchandise, such as automobiles and motorcycles, via “too good to be true” pricing.
The fraudsters exploit the way MoneyGram and Western Union operate their money transfer systems to conceal their identities and enlist corrupt MoneyGram and Western Union agents like Adigun to help launder the proceeds. Adigun entered false payee addresses, telephone numbers, and identification information into the MoneyGram and Western Union data-bases, thereby maintaining the anonymity of the fraudsters and creating the illusion that a bona-fide payee had physically entered the receiving outlet.
The victims were instructed to provide the Money Transfer Reference Number (MTRN) immediately after the money is sent. Armed with the MTRN, corrupt MoneyGram or Western agents in the United States could intercept and remove the funds from the systems, even though Adigun was physically located in Texas, thousands of miles away from the intended destination.
After Adigun and his co-conspirators intercepted the $3.9 million, they laundered the funds by converting, approximately $3.1 million into cash. Adigun, who controlled three FAB bank accounts, personally withdrew $1,453,146 cash from the accounts by making 203 withdrawals from 17 different bank branches. On many days, Adigun’s cash withdrawals totaled $40,000 to $70,000.
Other funds were laundered by transferring a portion of the proceeds, approximately $746,000, to other bank accounts before removing the money via cash withdrawals. Other proceeds, approximately $690,000, were sent via the Western Union and MoneyGram money transfer systems to destinations around the world, including in Canada, Nigeria, and Romania.
Adigun’s Indictment identified five mid-state residents from Chambersburg, Hanover, State College, and Mechanicsburg who each lost approximately $3,000 as a result of a mass marketing, consumer fraud scam during the summer of 2008. Their money was intercepted and removed from the MoneyGram transfer system by Adigun and his co-conspirators.
One of Adigun’s conspirators was Benjamin Chikwe, age 33, also of Houston, Texas, who was indicted with Adigun and pleaded guilty to conspiracy to commit money laundering charges pursuant to a cooperation-based plea agreement last year. In December 2013 Judge Conner sentenced Chikwe to 33 months in prison. The third conspirator, Stanley Ohiri, is a fugitive who may be in Nigeria.
Adigun began operating FAB as a Western Union outlet in December 2007 and as a MoneyGram outlet in May 2008. Shortly after, dozens of customers filed Consumer Fraud Reports with MoneyGram and Western Union. MoneyGram did not close FAB until August 18, 2008; Western Union did not suspend FAB until September 2, 2008.
In November 2012, charges of aiding and abetting wire fraud and willful failure to implement an effective anti-money laundering program were filed against MoneyGram in Harrisburg by the U.S. Department of Justice and the U.S. Attorney’s Office for the Middle District of Pennsylvania.
The charges were, in part, based on the company’s failure to terminate dozens of corrupt, agents in the United States and Canada, like FAB Tax Services, between 2004 and 2009. MoneyGram entered into a Deferred Prosecution Agreement with the government. That required MoneyGram to forfeit the sum of $100 million, implement improvements in the way it conducts its anti-money laundering program, undergo a five-year period of evaluation and oversight by a Corporate Compliance Monitor selected by the Department of Justice, and cooperate with the government. If MoneyGram successfully completes the five-year program, the government has agreed to dismiss the charges. The government is utilizing the forfeiture to establish a consumer fraud victim restitution fund. The U.S. Postal Service has distributed $46,371,155 of the $100 million to 18,784 victims across the country.
The case is part of a long term continuing investigation by the Harrisburg Office of the U.S. Postal Inspection Service. The Adigun, Chikwe, Ohiri, and MoneyGram prosecutions are being handled by Assistant United States Attorney Kim Douglas Daniel.
Clarks Summit Man Pleads Guilty to Producing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Clarks Summit man pleaded guilty today before Senior U.S. District Court Judge James M. Munley to producing child pornography.
According to United States Attorney Peter Smith, the defendant, Taylor Bzdyr, age 20, admitted to using a computer and a cell phone to persuade a 13-year-old female from Canada to engage in sexual acts which were transmitted live via Skype. Bzdry committed the offense between October 2012 and October 2013.
Bzdyr was indicted by a federal grand jury sitting in Scranton on March 11, 2014, as a result of an investigation by the Federal Bureau of Investigation, Border Patrol Agents in California, and the New Westminster Police Department in British Columbia, Canada.
Bzdyr faces a mandatory minimum sentence of 15 years in prison and a possible maximum sentence of 30 years in prison. Judge Munley ordered a pre-sentence report to be completed, and scheduled sentencing for October 2, 2014.
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.
Berks County Man Pleads Guilty to Participating in Multi-County Drug ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Reading man pleaded guilty today before U.S. District Court Judge Robert D. Mariani to participating in a drug conspiracy that was responsible for distributing large quantities of heroin, cocaine, crack cocaine and other drugs during a four-year time period in Monroe, Carbon, Montgomery and Berks Counties in Pennsylvania.
According to United States Attorney Peter Smith, the defendant, Juan Mendez-Lazaro, age 34, admitted to participating in the conspiracy from 2011 through 2013. The conspiracy was responsible for distributing more than one kilogram of heroin, more than five kilograms of cocaine, and various quantities of crack cocaine, methamphetamine, fentanyl, and Oxycontin (Oxycodone). Mendez-Lazaro is the fifth defendant in the case to plead guilty in federal court.
The charge against Mendez-Lazaro resulted from an investigation by the Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Pennsylvania State Police, Berks County Detectives and Montgomery County Detectives.
Mendez-Lazaro faces a mandatory minimum 10-year prison sentence and a potential maximum sentence of life in prison. Judge Mariani ordered a pre-sentence report to be completed. Sentencing is scheduled to take place in September 2014.
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.
Luzerne County Man Pleads Guilty to Sex Trafficking of A MinorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Wilkes-Barre man pleaded guilty yesterday before U.S. District Court Judge Robert D. Mariani in Scranton to sex trafficking of a minor.
According to United States Attorney Peter Smith, the defendant, Travis Humphrey, age 26, admitted that he helped others commit the crime by recruiting and transporting a 16-year-old female to engage in commercial sex acts in motels in Pennsylvania and New Jersey. Humphrey and others rented motel rooms and posted “escort” advertisements and photographs on the backpage.com website during May 2013.
Humphrey was indicted by a federal grand jury in January 2014, as a result of an investigation by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Pennsylvania State Police, and the Luzerne County District Attorney’s Office.
Humphrey faces a mandatory minimum sentence of 10 years in prison and a possible maximum sentence of life in prison. Judge Mariani ordered a pre-sentence investigation to be completed and scheduled sentencing for the week of September 22, 2014.
Humphrey’s wife and co-defendant, Kyoni Humphrey, previously pleaded guilty to transporting a female from Pennsylvania to New Jersey to engage in prostitution.
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.
Lancaster Man Sentenced to 33 Months in Federal Prison for Sales of Bath Salts and Synthetic MarijuanaRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Lancaster man was sentenced on Thursday in United States District Court in Harrisburg to 33 months in federal prison for his role in selling and distributing bath salts and synthetic marijuana.
United States Attorney Peter Smith stated that Amerjit Singh Grewal, 34, Lancaster, was sentenced by U.S. District Court Judge Yvette Kane to 33 months imprisonment after pleading guilty to the unlawful distribution of MDPV, a Schedule I controlled substance more commonly referred to as “bath salts,” “plant food” and “research chemicals” falsely marketed for sale in convenience stores and mini-marts.
MDPV is a central nervous system stimulant which can cause hallucinogenic effects in the user. Users have reported bouts of psychosis and numerous deaths around the country have been linked to the use of MDPV.
Grewal obtained large quantities of MDPV in bulk or pre-packed for sale, as well as synthetic marijuana, also falsely marketed for sale as “spice” or “potpourri.” Grewal then distributed the drugs to convenience stores and gas station mini-marts where the drugs would be sold. In March 2012, Grewal sold almost ½ kilogram of bulk bath salts to an undercover officer in the parking lot of a gas station near Grantville.
Judge Kane also ordered Grewal to forfeit to the United States approximately $500,000 seized by investigators from bank accounts held by Grewal and his co-defendant, Kulwinder Singh Grewal, who has yet to be sentenced.
The case was jointly investigated by the Drug Enforcement Administration’s Harrisburg Resident Office, the Food and Drug Administration’s Office of Criminal Investigations, the Pennsylvania State Police, the Dauphin County Drug Task Force and other county and local law enforcement agencies. The case was prosecuted by Assistant United States Attorney William A. Behe.
York County Man Sentenced to Twenty Years for Receipt of Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a York County man was sentenced today to twenty years in prison for receipt of child pornography.
In November, a federal jury convicted Lawrence B. Blevins, Jr., age 44, West Manchester, Pennsylvania, of downloading child pornography from the internet. At sentencing today in Harrisburg Chief United States District Court Judge Christopher C. Conner noted Blevins’ previous conviction for indecent assault and his false testimony at trial as factors at sentencing.
According to United States Attorney Peter Smith, the case arose from an investigation by West Manchester Township Police into a network of individuals who shared child pornography over the internet. In December 2011, a search warrant was executed at Blevins’ residence and recovered multiple computers and external storage devices from his room. Police found over a half million images of child pornography and hundreds of videos. Blevins was arrested and charged by local officials. On September 26, 2012, a federal grand jury returned a two-count indictment charging Blevins with possession of child pornography.
“Blevins’ 20-year sentence again underscores HSI’s determination to track down child predators and bring them to justice ,” said Philadelphia acting Special Agent in Charge William S. Walker. “The immense amount of images and videos recovered by law enforcement during this investigation underscores the fact that possession and distribution of despicable images of child pornography is not a victimless crime. Our children are re-victimized every time a child predator views and shares these images.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by West Manchester Township Police Department, the Northern York Regional Police Department, and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI). The prosecutor assigned to the case is Assistant Unites States Attorney Michael A. Consiglio.
Wilkes-Barre Man Sentenced to Prison on Drug ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Wilkes-Barre man was sentenced yesterday, in federal court in Scranton, by United States District Judge Malachy Mannion, to serve 151 months in prison on a charge of conspiracy to distribute heroin.
According to United States Attorney Peter Smith, Zacharae Lowe, age 31, a resident of Wilkes-Barre pleaded guilty to the conspiracy charge in Octoberof 2013.
Lowe was charged after an investigation conducted by the United States Drug Enforcement Administration, the Pennsylvania State Police and the Wilkes-Barre Police Department. An Indictment was filed against Lowe and nine other persons on May 21, 2013. The charges against Lowe arose from his involvement in heroin trafficking and possession of firearms. Lowe was sentenced as a career offender under the United States Sentencing Commission Sentencing Guidelines.
In addition to the prison term, Judge Mannion ordered that Lowe be supervised by a probation officer for 4 years following his release from prison.
The case was prosecuted by Assistant United States Attorney William S. Houser.
Wilkes-Barre Man Sentenced to Prison on Drug ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Wilkes-Barre man was sentenced yesterday, in federal court in Wilkes-Barre, by United States District Judge A. Richard Caputo, to serve 151 months in prison on a charge of possession with intent to distribute cocaine and crack cocaine.
According to United States Attorney Peter Smith, Robert Tolbert, age 40, a resident of the Wilkes-Barre area, pleaded guilty to the drug charge in February of this year.
Tolbert was charged after an investigation conducted by the Federal Bureau of Investigation, the Pennsylvania Office of Attorney General Bureau of Narcotics Investigation, the Plains Township Police Department, and the Luzerne County District Attorney’s Office. The investigation resulted in charges against Tolbert and ten others. An Information was filed against Tolbert on January 21, 2014. The charge against Tolbert arose from his involvement in cocaine and crack cocaine trafficking. Tolbert was sentenced as a career offender under the United States Sentencing Commission Sentencing Guidelines.
In addition to the prison term, Judge Caputo ordered that Tolbert be supervised by a probation officer for 3 years following his release from prison.
The case was prosecuted by Assistant United States Attorney John C. Gurganus.
Maryland Man Sentenced to Prison on Drug ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Maryland man was sentenced yesterday, in federal court in Scranton, by United States District Judge Malachy Mannion, to serve 160 months in prison on a charge of conspiracy to distribute heroin.
According to United States Attorney Peter Smith, Michael Murray, age 36, a resident of Maryland pleaded guilty to the conspiracy charge in Novemberof 2013.
Murray was charged after an investigation conducted by the United States Drug Enforcement Administration, the Pennsylvania State Police and the Wilkes-Barre Police Department. An Indictment was filed against Murray and nine other persons on May 21, 2013. The charges against Murray arose from his involvement in heroin trafficking. Murray was sentenced as a career offender under the United States Sentencing Commission Sentencing Guidelines.
In addition to the prison term, Judge Mannion ordered that Murray be supervised by a probation officer for 4 years following his release from prison.
The case was prosecuted by Assistant United States Attorney William S. Houser.
Man Charged with Robbing Sovereign BankRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today the filing a bank robbery charge against Tashan Lantiqua Layton, age 24, of Harrisburg, Pennsylvania.
According to U.S. Attorney Peter Smith, on March 30, 2013, Layton entered the Sovereign Bank branch located at 519 South 29th Street, Harrisburg, Pennsylvania, and brandishing a gun robbed the bank of approximately $18,682.00.
If convicted, Layton faces a term of imprisonment of up to twenty years and a fine of up to $250,000.
The investigation was conducted by the Harrisburg Police Department and the FBI. It is being prosecuted by Assistant United States Attorney Joseph J. Terz.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of 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.
Four York Men Indicted for Distributing Crack Cocaine, Cociane and HeroinRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced the indictment by a federal grand jury in Harrisburg of four men for distribution of crack and powder cocaine and heroin in York, Pennsylvania.
According to United States Attorney Peter Smith, the indictment charges a drug trafficking scheme centered in York County between August 2013 and March 2014. Those indicted Rolando Cruz, Jr., age 29, Marc Hernandez, age 28, Douglas Kelly, age 35, and Roscoe Villega, age 39, all from York.
Hernandez, Kelly and Villega were previously charged in a indictment in March 2014. Today’s indictment adds Cruz as a defendant.
The continuing investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is assigned to Assistant United States Attorney Michael A. Consiglio.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In these particular cases, the maximum penalty under the federal statute is life imprisonment for the defendants and 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.
* * * *Former Postmaster Charged with EmbezzlementRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that it has filed a criminal charge of misappropriation of postal funds against a Clinton County woman in federal court in Williamsport.
According to United States Attorney Peter Smith, a criminal Information was filed charging Macey Geyer, age 41, of Castanea, with allegedly taking over $9,000 in postal funds from the Castanea Post Office. Geyer, who began her employment with the United States Post Service on June 23, 2007, served as Officer-in-Charge at the Castanea Post Office.
At the same time the criminal Information was filed, the U.S. Attorney’s Office filed a plea agreement which is subject to the approval of the court.
The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Eric Pfisterer.
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.
Criminal Immigration Charges Brought Against Two 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, Enforcement and Removal Operations (ERO) announced today announced today that charges in two unrelated cases were brought against the following persons in Harrisburg.
Jose Parada-Rodriguez, age 27, a native and citizen of El Salvador, in the United States illegally was charged in a one-count indictment alleging that Parada-Rodriguez, an alien who has previously been arrested and deported from the United States in May 2011, did knowingly and unlawfully reenter the United States and was apprehended in Franklin County, Pennsylvania.
If convicted, Parada-Rodriguez faces a maximum sentence of up to two years’ imprisonment and a $250,000 fine.
Omar Hernandez-Garfias, age 29, a native and citizen of Mexico, in the United States illegally was charged in a one-count indictment alleging that Hernandez-Garfias, an alien who has previously been arrested and deported from the United States in July 2007, did knowingly and unlawfully reenter the United States and was apprehended in Adams, Pennsylvania.
If convicted, Hernandez-Garfias faces a maximum sentence of up to two years’ imprisonment and a $250,000 fine.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO). It 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.
Waynesboro Chiropractor Sentenced to Prison for False Personal Injury ClaimRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a Waynesboro, PA chiropractor was sentenced today to 5 months in prison followed by 5 months of home detention for submitting a bogus personal injury claim to an insurance carrier.
In December 2013 Lawrence S. Herman, age 47, a resident of Frederick, Maryland and the owner/operator of “Herman Chiropractic” in Waynesboro, PA, pleaded guilty to a one-count Information charging him with False Statements in Health Care Matters. The plea was entered by Herman pursuant to an agreement with the government.
Herman was sentenced to the 5 months in prison followed by 5 months of home detention term by Senior United States District Court Judge Sylvia H. Rambo in Harrisburg. Judge Rambo also ordered Herman to serve 1 year on supervised release following his prison term and to pay a $600 fine and $100 special assessment.
The charges stemmed from a claim Herman submitted to the USAA insurance company in May of 2012 for injuries allegedly suffered in an August 16, 2011 automobile accident in Maryland. In May of 2012 Herman supported his claim with records that represented he had been treated by a chiropractor for neck and back injuries between August of 2011 and January of 2012. When USAA did not honor the claim, Herman hired a Baltimore area law firm and demanded $60,000 from USAA - $17,527 for reimbursement of his chiropractic treatment expenses and the remainder for pain and suffering.
During his guilty plea hearing Herman admitted the chiropractic treatment records were phony and were created, at his direction, by a chiropractor who worked for him in his Waynesboro office. To conceal the fact the chiropractor was his employee, Herman submitted the phony treatment records to USAA under a fictitious business letterhead he created. Herman was not seriously injured in the minor, fender-bender type accident; he participated in several 5K, 10K, Half-Marathon and Marathon foot races during the time period when he was supposedly being treated for his back and neck injuries between September and November of 2011.
The case was investigated by the Harrisburg Office of the FBI and was prosecuted by Assistant United States Attorney Kim Douglas Daniel.
Owner of Welding Supply Business Charged with Illegal Transportation of Hazardous MaterialsRead the Press Release
The United States Attorney’s Office announced the filing yesterday of a one-count information charging Raymond George, age 65, with illegal transportation of hazardous materials in connection with his operation of George Welding & Supply in Montoursville, Pennsylvania.
According to United States Attorney Peter Smith, the information alleges that from January 2001 through January 2012, George fraudulently certified that cylinders containing compressed gases used in the welding industry were properly tested and found to be safe. The information alleges that George’s business was not authorized to test cylinders, but that George applied false markings to the cylinders which certified that they had in fact been tested. He then leased the fraudulently marked cylinders to his customers.
The government also filed a plea agreement with the defendant which must be approved by the Court.
If convicted of the offense charged in the information, George faces a maximum penalty of 5 years in prison, a maximum fine of $250,000, and a supervised release term of three years.
The case was investigated by the United States Department of Transportation, Office of Inspector General, Office of Investigations. Prosecution has been assigned to Assistant United States Attorney George J. Rocktashel.
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.
New York Woman Charged with Distributing Cocaine at Area MotelsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced the filing yesterday of a criminal charge against Jalani Kornegay, age 33, of New York, New York. A Criminal Information filed in the United States District Court alleges that Kornegay distributed cocaine in Luzerne County on May 18, 2013.
United States Attorney Peter Smith stated that the charge is the result of an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police into the sale of cocaine at motels in Luzerne and Lackawanna Counties.
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 forty 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.
Inmate at USP Canaan Charged with Assault with Intent to Murder Another InmateRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury sitting in Scranton today indicted Joseph Wing, age 27, an inmate at the United States Penitentiary Canaan in Waymart, Pennsylvania, for assaulting another inmate with intent to commit murder.
According to United States Attorney Peter Smith, the grand jury alleges that Wing committed the assault on May 16, 2014, in the prison.
Wing is also charged with assault resulting in serious bodily injury.
The charges against Wing resulted from an investigation by the Federal Bureau of Investigation and Bureau of Prisons staff.
If convicted, Wing faces up to 20 years in prison and a $250,000 fine.
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.
USP-Canaan Inmate Sentenced to 15-Years of Imprisonment for Stabbing A Correctional Officer in the FaceRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that United States District Court Judge Malachy E. Mannion has sentenced Jose Montalban, age 42, to 15 years’ imprisonment for assaulting a correctional officer and inflicting bodily injury. On February 12, 2014, following a three-day trial, a jury found Montalban guilty of the assault, and the illegal possession of a weapon by an inmate of the United States Penitentiary at Canaan, Pennsylvania.
According to United States Attorney Peter Smith, the evidence at trial established that on December 28, 2012, inmate Jose Montalban, who was serving a federal prison sentence for bank robbery, walked into an office at the USP-Canaan and took a six-inch sharpened plastic knife and began stabbing a correctional officer who was seated alone in that office. The correctional officer was stabbed three times in the face before he, and other correctional officers who responded to the unprovoked attack, were able to subdue Montalban. The correctional officer sustained three puncture wounds to the face which required nine sutures at a local hospital.
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.
Harrisburg Health Care Provider Charged Federally with Medicaid FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Harrisburg-area health care services provider was charged on June 18th by a federal grand jury with making false statements relating to health care matters, money laundering, and identity theft.
According to U.S. Attorney Peter Smith, on Wednesday, a federal grand jury in Harrisburg returned a 34-count indictment charging that between 2010 and 2014 Rose Umana, 47, Mechanicsburg, the owner and operator of Vision Healthcare Services, Inc., 4113 Linglestown Road, Harrisburg, created false identification documents and fictitious occupational licenses for workers not licensed at the level represented on the license. Umana then allegedly submitted bills to Medicaid for medical services supposedly provided by the workers, billed Medicaid for services provided by someone other than the person claimed to be the provider, and billed Medicaid for services not provided or provided by someone not qualified to provide the service.
In addition, the Grand Jury charged that Umana conducted at least 32 monetary transactions totaling $673,733 with proceeds derived from the criminal activity. The indictment also alleges that funds totaling approximately $307,000 in three bank accounts held by Umana are forfeitable to the government.
Umana appeared today before U.S. Magistrate Judge Susan E. Schwab. She was ordered released and to be under electronic monitoring. Trial is scheduled for August 4, 2014 before Senior U.S. District Court Judge Sylvia H. Rambo.
Medicaid is the joint federal–state program that provides health care and nursing home coverage to low asset/income individuals. Medicaid in Pennsylvania is administered by the Department of Public Welfare. Vision Healthcare Services, Inc., is a medical staffing company and home care services provider servicing Dauphin, Cumberland, Perry and York Counties and has been enrolled under Medicaid since 2006.
“Those who steal from government programs such as Medicaid are stealing from all of us,” said Attorney General Kathleen G. Kane. “They will be held accountable.”
“We trust that Medicaid Home Care companies will do the right things; bill for services that they actually provide and use properly trained professionals to deliver needed care” said Nick DiGiulio, Special Agent in Charge for the Inspector General’s Office of the United States Department of Health and Human Services in Philadelphia. “We will continue to work energetically with our partners to investigate those that are accused of stealing health care dollars and mistreating Medicaid recipients.”
This case is the result of a cooperative investigation by the Office of Inspector General, U.S. Department of Health and Human Services; Internal Revenue Service Criminal Investigations; and the Medicaid Fraud Control Section of the Pennsylvania Office of Attorney General. Special Assistant U.S. Attorney Heather Albright of the Pennsylvania Attorney General’s Office, and Assistant U.S. Attorney Christy H. Fawcett are assigned to the case.
False statements relating to health care matters carries a maximum term of imprisonment of five years, the money laundering offense is punishable by up to 10 years’ imprisonment, and identity theft carries a two-year mandatory minimum sentence that must be served consecutively to any other sentence.
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 County Man Pleads Not Guilty to Federal Firearms Offenses and Drug TraffickingRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced today that Brandon Dawson, age 29 of York pleaded not guilty today before United States Magistrate Judge Susan E. Schwab in federal court in Harrisburg. A federal grand jury indicted Dawson for distributing heroin and marijuana and possession of firearms on June 11, 2014.
According to United States Attorney Peter Smith, on October 23, 2013, the York County Quick Response Team executed a search warrant at Dawson’s apartment on Cottage Place, York, and allegedly found reinforced doors, surveillance cameras, heroin, marijuana, drug trafficking materials, ammunition, and a stolen firearm. Dawson has a prior federal conviction for drug trafficking and a firearms offense, which makes it unlawful for him to possess a firearm.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and York City Police Department and assigned to Special Assistant United States Attorney David Sunday, of the York County District Attorney’s Office.
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 these particular cases, the maximum penalty under the federal statute is life imprisonment and 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 Hazelton Business Indicted in Stolen Identity Tax Refund Fraud CaseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Rafael Sanchez, 50, formerly of Hazleton, was charged yesterday by a federal grand jury in Scranton in a 43-count Indictment with conspiracy in respect to claims, false claims, theft of public money, aggravated identity theft, conspiracy to commit wire fraud, and conspiracy to commit an offense against the United States. The charges are felonies with each charge carrying a maximum possible prison sentence of between 5 and 20 years.
According to U.S. Attorney Peter Smith, the Indictment alleges that Sanchez operated a business under the name of Sanchez Multi Service in Hazleton and that, from 2011 to 2014, Sanchez and others not named in the indictment used the identities of unknowing third parties to prepare and file fraudulent federal income tax returns. The Indictment alleges that Sanchez deposited and cashed fraudulently obtained tax refund checks totaling hundreds of thousands of dollars. Sanchez is also alleged to have conspired to make false statements to a federal firearms dealer in connection with the purchase of a firearm.
Sanchez was arrested in January 2014 and is currently on pre-trial release.
The charges are the result of an on-going investigation by the Scranton Office of the Internal Revenue Service, Criminal Investigation. The IRS received assistance in the investigation from the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and the Hazleton City Police Department.
The case is assigned to Assistant United States Attorney William Houser 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.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Luzerne County Man Charged Federally with Nine Armed RobberiesRead 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 against Jeffrey Townsley, age 42, of Luzerne County, charging him with two counts of bank robbery and seven counts of robbery of businesses engaged in interstate commerce (Hobbs Act robbery).
According to United States Attorney Peter Smith, Townsley allegedly engaged in an 18-day crime spree in December 2013, and January 2014. The charges included two robberies of the First National Community Bank (branches in Kingston and Hanover Township), and seven robberies of local businesses. Townsley allegedly used a black pellet gun that mirrored the look of a 9mm handgun to threaten his victims. Townsley was arrested on January 13, 2014, and remains in custody in the Lackawanna County Prison.
The charges are the result of an investigation by the Federal Bureau of Investigation with the assistance of local police departments including Kingston, Kingston Township, Larksville, Hanover Township, Wilkes-Barre, Plains, and Ashley, and Luzerne County detectives. The maximum penalties in this case include 25 years’ incarceration for bank robbery and 20 years’ incarceration for Hobbs Act robbery, and fines totaling $2.25 million. The government also filed a plea agreement in the case which is subject to approval by the Court.
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.
Lebanon County Landlord Charged with Housing Assistance FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that it has filed a criminal information in U.S. District Court in Harrisburg charging Israel Acevedo, 52, of Lebanon with defrauding the Lebanon County Housing Authority out of more than $23,000 in federal funds provided by the US Department of Housing and Urban Development (HUD).
According to U.S. Attorney Peter Smith, Acevedo allegedly was a landlord who participated in HUD’s Housing Choice Voucher Program (HCVP) that was administered by the Housing Authority. Acevedo’s spouse received federal funds in the form of rental subsidies under HUD’s housing assistance program.
Allegedly, Acevedo concealed from the Housing Authority that he lived with his wife and children in a house he owned and received the federal rental subsidies that were provided to his spouse to pay rent. Acevedo was allegedly prohibited from renting to a spouse or other family members who were receiving rent subsidies. By concealing the relationship Acevedo’s income from his employment was not factored into how much his spouse was entitled to in rent subsidies, allegedly resulting in Acevedo receiving $23,362 in federal funds that Acevedo was not entitled to.
The United States Attorney’s Office also filed a plea agreement in which Acevedo agreed to plead guilty to the charge. Acevedo has already made restitution.
Acevedo faces a maximum term of imprisonment of one year, a $100,000 fine and a period of supervised release, plus restitution.
The case was investigated by HUD’s Office of Inspector General with the assistance of the Lebanon County Housing Authority. Prosecution of the case is assigned to Assistant U.S. Attorney William A. Behe.
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 one year 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.