Middle District of Pennsylvania
Press releases recorded for this federal judicial district.
Two Persons Charged with Sex Trafficking of Children and Related Illegal Firearms CrimesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that two former Edwardsville residents were arrested today by federal and state law enforcement officers on charges involving the sex trafficking and prostitution of a minor and weapons offenses.
According to United States Attorney Peter J. Smith, on January 21, 2014, a federal grand jury in Scranton indicted Travis Humphrey, a/k/a “GT,” age 26, and Kyoni Humphrey a/k/a “Kyoni Nieves,” age 24, for conspiring to force a minor female to engage in prostitution and illegal sexual activity during May 15, 2013, to June 3, 2013.
The indictment alleges that the defendants used a cell phone to post advertisements for “escort services” involving the minor female on the backpage.com website in Pennsylvania and New Jersey, and transported the minor in interstate commerce from Pennsylvania to New Jersey and New York to engage in illegal sexual activity and prostitution.
Both defendants are charged, allegedly, as principal or aiders and abettors, with Conspiracy to Commit Sex Trafficking of Children by Force and Coercion; Sex Trafficking of Children by Force and Coercion; Conspiracy to Transport a Minor in Interstate Commerce with Intent to Engage in Criminal Sexual Activity; Transporting a Minor in Interstate Commerce with Intent to Engage in Criminal Sexual Activity; Persuading, Enticing and Coercing a Minor to Travel in Interstate Commerce to Engage in Prostitution; and Transporting a Person in Interstate Commerce to Engage in Prostitution.
Both defendants are charged with Carrying and Possessing a Firearm in Furtherance of a Crime of Violence. Travis Humphrey is charged with Possessing a Firearm as a Convicted Felon. Kyoni Humphrey is charged with Making False Statements During the Purchase of a Firearm.
The charges stem from an investigation by the Department of Homeland Security, the Pennsylvania State Police and the Luzerne County District Attorney’s Office.
Sex trafficking of children by force and coercion is punishable by a mandatory minimum sentence of 15 years in prison and a possible maximum sentence of life in prison. The carrying and possessing a firearm in connection with a crime of violence charge is punishable by a mandatory minimum sentence of five years in prison and a possible maximum sentence of life in prison, and that sentence must run consecutive to any other sentence imposed. The other charges contain maximum sentences of from 10 to 20 years imprisonment.
Both defendants are scheduled to appear before U.S. Magistrate Judge Karoline Mehalchick this afternoon at the federal courthouse in Wilkes-Barre.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
****Herndon Man Charged with Theft of Insurance FundsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that criminal charges have been filed in U.S. District Court in Williamsport against Derl Knarr of Herndon, Pennsylvania.
According to United States Attorney Peter J. Smith, Knarr, age 55, is charged in a one-count felony Information with stealing insurance funds while he worked for Allstate Financial Services. The thefts are alleged to have occurred between 2006 and 2012, and total over $630,000.
The investigation was conducted by the Federal Bureau of Investigation, State College Resident Office. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing 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 of over $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.
Harrisburg Man Sentenced to 108 Months in Federal Firearms CaseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Carl E. Murphy, Jr., a 33 year old resident of Harrisburg, PA, was sentenced yesterday by Senior U.S. District Court Judge Sylvia H. Rambo, following Murphy’s guilty plea to Possession of a Firearm by a Convicted Felon.
On August 29, 2013, Murphy pled guilty to possessing a loaded firearm in Harrisburg on March 7, 2012 and on October 13, 2012. Murphy has multiple prior felony convictions making him ineligible to possess a firearm.
According to United States Attorney Peter J. Smith, Judge Rambo sentenced Murphy to 108 months (9 years) incarceration to be followed by three years of supervised release and a fine of $500 for the firearms conviction.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Harrisburg Police Bureau and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
****Harrisburg Doctor Charged with Distribution of Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that child pornography distribution charges were filed against David H. Scanlan III. Scanlan, 38, of Harrisburg, was charged with one count of distribution of child pornography in a criminal Information filed today in U.S. District Court in Harrisburg.
According to U.S. Attorney Peter Smith, Scanlan is charged with distributing child pornography over the internet between May and June 2011. The charges stem from an investigation by the Internet Crimes Against Children Task Force, Pennsylvania State Police, and U.S. Department of Homeland Security, Homeland Security Investigations. At the time of the offense, Scanlan was a physician specializing in pediatric oncology. He has surrendered his medical license.
Along with the Information, a plea agreement was filed in which Scanlan agrees to plead guilty to the child pornography distribution charge. The plea agreement must be approved by the court. Scanlan faces a minimum of five and a maximum of 20 years in prison and a $250,000 fine, Smith said.
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 was investigation by the Internet Crimes Against Children Task Force, the Pennsylvania State Police, and Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney James T. Clancy.
Luzerne County Man Sentenced to 15 Years in Prison for Receiving and Distributing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 39-year-old former Luzerne Borough resident who admitted to receiving and distributing child pornography during 2012 through June 2013, was sentenced today to serve 15 years in prison by U.S. District Court Judge Malachy E. Mannion.
According to United States Attorney Peter J. Smith, the defendant, Michael Shaw, pleaded guilty to the crime on October 23, 2013.
Shaw was indicted by a federal grand jury in September 2013, for using a computer to receive and distribute child pornography.
The charge against Shaw resulted from an investigation by the Federal Bureau of Investigation, Lackawanna County Detectives and the Luzerne County District Attorney’s Office.
Judge Mannion also ordered that Shaw be placed on supervised release for 10 years following his prison sentence. Shaw must also receive sex offender treatment and abide by sex offender registration requirements after his release from prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Luzerne County Woman Pleads Guilty to Tampering with Consumer ProductRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that a 35-year-old Wilkes-Barre resident pleaded guilty today in Wilkes-Barre before U.S. Magistrate Judge Karoline Mehalchick to a criminal information charging her with tampering with a consumer product that affected interstate commerce.
According to United States Attorney Peter J. Smith, the defendant, Yolanda Holman, of Wilkes-Barre, admitted that she knowingly and intentionally tainted a bottle of non-prescription children’s pain reliever with prescription pills and other medication and caused it to be taken to a retail store in Wilkes-Barre as a returned item on or about August 23, 2013.
U.S. Attorney Smith stated that suspected tainted containers related to this incident were recovered and were in the possession of law enforcement officers or otherwise destroyed. The tainted containers present no danger to the public.
The criminal information and a plea agreement were filed on December 19, 2013.
The investigation was conducted by agents of the Federal Bureau of Investigation – Scranton Resident Office. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
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.
****Hazleton Man Charged in Heroin and Cocaine Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Hazleton resident was indicted by a federal grand jury in Scranton on January 28, 2014 for participating in a drug trafficking conspiracy that distributed heroin and cocaine during July through October of 2013.
According to United States Attorney Peter J. Smith, the grand jury alleges that Willy Perez, age 36, conspired with others to distribute and possess with intent to distribute heroin and cocaine in the Hazleton and Scranton areas during a four-month time period.
The Indictment alleges that Perez and his co-conspirators arranged to obtain heroin and cocaine in New York City and distributed the drugs in the Hazleton and Scranton areas of northeastern Pennsylvania. The indictment alleges that Perez and his associates communicated with each other and drug customers by cell phones. Perez is also charged with possessing heroin with the intent to distribute it on October 24, 2013.
The charges stem from an investigation by special agents and task force officers of the Federal Bureau of Investigation, Scranton Police, and detectives from the Lackawanna County District Attorney’s Office.
If the defendant is convicted of the charges, he faces up to 20 years in prison and a $1 million fine for each 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.
Former Employee of Forty Fort GM Foodmart Store Charged with Distributing Synthetic MarijuanaRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that it has charged a 26-year-old New Jersey resident who worked at a GM Foodmart store in Kingston, Pennsylvania, with conspiracy to distribute synthetic marijuana.
According to United States Attorney Peter J. Smith, his office filed a criminal Information in U.S. District Court in Scranton today against Manjinder Singh, charging him with participating in a conspiracy to sell synthetic marijuana from the store during January 2012 and July 2012.
The Information alleges that Singh and/or his co-conspirators obtained synthetic marijuana from out-of-state suppliers and sold synthetic marijuana to customers from the GM Foodmart Store in Forty Fort. It further alleges that Singh distributed synthetic marijuana to others on six occasions.
The charge against Singh resulted from an investigation by the IRS Criminal Investigative Division, the Drug Enforcement Administration, and the Pennsylvania State Police. Mastan Mathan, the owner and operator of the store, recently pleaded guilty to a money laundering conspiracy involving proceeds from the sale of synthetic marijuana.
If convicted of the charge, Singh faces up to 20 years in prison and a $1 million fine.
A plea agreement was also filed in the case.
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.
Appeals Court Affirms Life Sentence for Drug TraffickerRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that the Third Circuit Court of Appeals today affirmed the sentence of life imprisonment imposed by Senior U.S. District Court Judge James M. Munley on Krishna Mote for his participation in a drug trafficking conspiracy that was responsible for distributing large amounts of crack cocaine in the Lehighton area of Northeastern Pennsylvania between 2005 and 2007.
According to United States Attorney Peter J. Smith, Mote, age 44 who resided in the Allentown-Bethlehem area during the time of the conspiracy, was convicted by a jury after a three-day trial in December 2012. The jury returned guilty verdicts on both drug-related charges in the indictment.
Mote was indicted by a federal grand jury in June 2011, as a result of an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police.
In upholding the jury’s verdict, the Court rejected Mote’s claims that the indictment was duplicitous and the evidence proved two conspiracies instead of a single conspiracy. The Court noted that Mote engaged in the drug trafficking enterprise “with the same individuals during most of the period in question, and worked with a number of people who had an overlapping involvement over the entire time span” of the drug conspiracy. The Court concluded that there was “overwhelming evidence at trial” that Mote conspired with others to distribute more than 280 grams of crack cocaine.
In affirming the sentence, the Court explained that “with three prior felony drug convictions, the District Court properly sentenced [Mote] to a mandated life imprisonment.”
Assistant United States Attorney Francis P. Sempa prosecuted the case and handled the appeal for the government.
****United States Files Motion in Connection with the Robert Mericle CaseRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that on January 29, 2014 it filed a motion in United States District Court in Scranton seeking a hearing regarding the modification of the plea agreement between the government and Mericle and to determine whether the defendant has breached the plea agreement.
Senior United States District Court Judge Edwin M. Kosik has scheduled Mericle’s sentencing for February 26, 2014.
Luzerne County Man Sentenced to 18 Years’ Imprisonment for Jewelry Store Robberies, Bank Robbery, and FraudRead 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 Kirk Robinson, age 45, of Wilkes-Barre, Pennsylvania, to 18 years’ imprisonment for his involvement in two Luzerne County jewelry store robberies, a bank robbery, as well as an insurance fraud scheme.
According to United States Attorney Peter J. Smith, Robinson pleaded guilty in federal court on October 24, 2013, to conspiring with others to carry firearms in relation to the robbery of Steve Hydock Diamonds Jewelry store, Kingston, Pennsylvania, on May 5, 2008, and Dunay Jewelry store, Wilkes-Barre, Pennsylvania, on May 14, 2008. He also pleaded guilty to the armed bank robbery of the M&T Bank, Hanover Township, occurring on October 30, 2010. At his guilty plea, Robinson admitted that he planned and acted as a getaway driver in those three robberies. Additionally, Robinson pleaded guilty to using the mail in a scheme to defraud an insurance company of $43,000. Robinson admitted that the scheme involved staging a robbery with a confederate and filing a police report wherein he falsely claimed an armed robber stole jewelry from him.
Judge Munley ordered that Robinson be placed on supervised release for three years following the service of his 18-year prison sentence. In addition, Judge Munley ordered that Robinson pay restitution in the amount of $150,728 representing the value of money and jewelry stolen during the robberies and fraud scheme.
The case was investigated by the Federal Bureau of Investigation, the Kingston Police Department, the Hanover Township Police, and the Wilkes-Barre Police Department. Assistant United States Attorney John C. Gurganus, Jr. prosecuted the case.
Luzerne County Man Charged with Trafficking Heroin and CocaineRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal Information was filed today in U.S. District Court in Scranton charging a Kingston resident with distributing heroin and cocaine during a four-year time period.
According to United States Attorney Peter J. Smith, the Information alleges that James Featherstone, age 33, distributed cocaine and heroin in Luzerne County from January 2009 through September 2013.
A plea agreement was filed along with the Information.
The charge stems from an investigation by The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Pennsylvania State Police, Kingston Police, and the Luzerne County District Attorney’s Office.
Featherstone faces a potential maximum sentence of 20 years in prison and a $1 million fine.
According to the terms of the plea agreement filed in the case, Featherstone has agreed to plead guilty to the charge, and the government and the defendant will recommend that Featherstone be sentenced to between 163 months and 188 months in prison.
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.
****Leader of Corrupt Canadian Moneygram Agents Re-Sentenced on Conspiracy & Money Laundering ChargesRead the Press Release
Peter J. Smith, United States Attorney for the Middle District of Pennsylvania, announced that the former leader of a large group of corrupt, Canadian based MoneyGram Agents has been resentenced to a lengthy term of incarceration for helping to defraud thousands of American citizens out of $4 million between January 2004 and April 2009.
JAMES E. UGOH, age 51, of Toronto, Ontario, was re-sentenced by U.S. District Court Judge Sylvia Rambo in Harrisburg yesterday afternoon to 151 months (12.6 years) incarceration. UGOH had been previously sentenced by Judge Rambo to 118 months incarceration in 2012.
In October of 2009 UGOH and three other Toronto area MoneyGram agents, KAYODE KASSIM, age 45, ABEL ONGUNFUNWA, age 51, and FELIX MORDI, age 45 , were indicted on multiple charges by a Middle District of PA grand jury. After an 18-month process, the four defendants were eventually extradited to Harrisburg where they pleaded guilty to Conspiracy to commit Mail Fraud, Wire Fraud, and Money Laundering. In 2012 the 4 were sentenced by Judge Rambo to the following terms of incarceration:
Mordi – 53 months
Ogunfunwa – 63 months
Kassim – 80 months
Ugoh – 118 monthsAfter the sentences were imposed, the government appealed to the U.S. Court of Appeals for the Third Circuit, arguing the district court erred in calculating their advisory sentencing guideline ranges. Last year the Third Circuit agreed with the government and remanded the 4 cases back to Judge Rambo for resentencing.
Thus far, only UGOH and KASSIM have been resentenced. KASSIM was resentenced in December of last year to 109 months incarceration. MORDI is scheduled to be resentenced on February 13, 2014. No date has yet been scheduled for OGUNFUNWA’s resentencing.
Between 2004 and 2009 Canadian based, mass-marketing fraudsters distributed thousands of letters and counterfeit checks to American citizens via the mail and the Internet. The communications falsely promised the recipients cash prizes, fictitious loans, commissions and other payments. The recipients were typically tricked into depositing worthless counterfeit checks into their bank accounts before sending money to the fraudsters for “taxes” and other bogus fees via the MoneyGram money transfer system.
UGOH, an expatriated Nigerian Tribal Chief living in Toronto, was the leader of a corrupt group of Canadian MoneyGram agents who conspired with the mass marketing fraudsters to intercept, launder and distribute the MoneyGram transfers sent by the victims of the mass-marketing schemes. UGOH obtained his first MoneyGram outlet in 2001. By 2008 UGOH had 12 MoneyGram outlets in the greater Toronto area, 1l operating under the name of Money Spot and 1 under the name of N & E Associates. Between January 2005 and February 2009 UGOH’s outlets paid out more Consumer Fraud Reported money transfers than any other MoneyGram agent in the world - 1,754 transfers totaling $3.4 million.
But UGOH’s money laundering activities went far beyond just his 12 MoneyGram outlets. UGOH recruited MORDI, KASSIM, and ONGUNFUNWA to launder MoneyGram transfers checks issued by approximately 28 other corrupt MoneyGram agents in the greater Toronto area. Instead of making the MoneyGram checks payable to the intended payees, UGOH and his co-conspirators would make the checks payable to third party companies controlled by MORDI, KASSIM and OGUNFUNWA. MORDI, KASSIM and UNGUNFUNWA would then deposit the checks into their bank accounts, keep an approximate 3 to 4% cut for themselves, and distribute the balance to UGOH. UGOH would then share the bulk of the funds with the mass marketing fraudsters, typically via off-shore money MoneyGram transfers to Nigeria, Jamaica or Romania, thereby effectively laundering the proceeds. The $4 million loss stipulation in UGOH’s plea agreement represented the approximate dollar value of 2,309 transfers paid out at the 18 MoneyGram outlets controlled by UGOH, MORDI, KASSIM and UNGUNFUNWA that were reported by MoneyGram customers as being fraudulently induced between 2004 and March of 2009.
The UGOH case was one of several on-going investigations of fraudulent international telemarketing schemes involving corrupt MoneyGram and Western Union agents by the U.S. Postal Inspection Service in Harrisburg and the U.S. Attorney=s Office for the Middle District of Pennsylvania. In November of 2012 the U.S. Attorney’s Office for the Middle District of PA and the U.S. Justice Department entered into a Deferred Prosecution Agreement with MoneyGram that required the company to pay $100 million into a victim restitution fund. Thus far, the Postal Inspection Service has returned approximately half of the $100 million to thousands of victims of the mass marketing schemes.
The MoneyGram agent and corporate prosecutions are being handled by Assistant U.S. Attorneys Kim Douglas Daniel and Christy Fawcett, with assistance from the Justice Department’s Asset Forfeiture and Money Laundering Section in Washington, D.C.. The Third Circuit appeal in the UGOH cases was handled by Assistant U.S. Attorney Steven Cerutti.
Criminal Immigration Charges Brought Against Four Illegal AliensRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, announced today that charges have been brought this week against the following:
Domingo Cervante-Dominguez, at 34, a native and citizen of Mexico, in the United States illegally, was charged in a one-count information filed with the Court in Harrisburg today. The information alleges that Cervante-Dominguez, an illegal alien, did enter the United States at any time or place other than as designated by immigration officers and was found in the United States in York, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Cervante-Dominguez, faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
Jorge De Leon-Estrada, age 34, a native and citizen of Guatemala, in the United States illegally, was charged in a one-count information filed with the Court in Harrisburg. The information alleges that De Leon-Estrada, an illegal alien, did enter the United States at any time or place other than as designated by immigration officers and was found in the United States in Franklin, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, De Leon-Estrada faces a maximum sentence of up to 6 months’ of imprisonment and a $5,000 fine.
Elvin Sanchez-Herrera, age 33, a native and citizen of El Salvador, in the United States illegally, was charged in a one-count information filed with the Court in Harrisburg. The information alleges that Sanchez-Herrera, an illegal alien, did enter the United States at any time or place other than as designated by immigration officers and was found in the United States in York, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Sanchez-Herrera faces a maximum sentence of up to 6 months’ of imprisonment and a $5,000 fine.
Fidel Bautista-Salazar, age 35, a native and citizen of Mexico, in the United States illegally, was charged in a one-count information filed with the Court in Harrisburg. The information alleges that Bautista-Salazar, an illegal alien, did enter the United States at any time or place other than as designated by immigration officers and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Bautista-Salazar faces a maximum sentence of up to 6 months’ of imprisonment and a $5,000 fine.
The investigations were conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement and are being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In these cases, the maximum penalty under the federal statute is 6 months’ 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 offenses are not an accurate indicator of the potential sentence for a specific defendant.
****Old Forge Pharmacist Charged with Health Care 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 Scranton charging an Old Forge pharmacist with submitting false insurance claims for non-existent prescriptions.
According to United States Attorney Peter J. Smith stated that, according to the criminal information, Peter Capitano, owner of Capitano’s Pharmacy engaged in a scheme to defraud Blue Cross of Northeastern Pennsylvania and the Pennsylvania Medicaid Program between January 2007 through August 2013.
The charges stem from an investigation initiated in February of 2011 by the Federal Bureau of Investigation and the Department of Health and Human Services’ Office of Inspector General.
Capitano allegedly submitted claims or caused claims to be submitted for drugs allegedly prescribed when the prescriptions did not exist and drugs were not actually dispensed.
A plea agreement was also filed together with the criminal information. The agreement is subject to approval by the Court. According to the plea agreement, the estimated financial loss resulting from the fraudulent claims was between $120,000 and $200,000. Capitano will be required to pay restitution for the loss amount.
In this particular case, the maximum penalty under the federal statute is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
An Indictment or Information is not evidence of guilt but simply a description of the charge made by the Grand Jury and/or United States Attorney against a defendant. A charged Defendant is presumed innocent until a jury returns a unanimous finding that the United States has proven the defendant=s guilt beyond a reasonable doubt or until the defendant has pled guilty to the charges.
****Illegal Alien Indicted for Failure to Depart the United StatesRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton Tuesday returned an indictment against Carlos Mendez, a citizen of Guatemala, charging failure to depart the United States.
According to United States Attorney Peter J. Smith, Carlos Mendez, age 44, a native and citizen of Guatemala, was charged with allegedly failing to comply with facilitating his departure from the United States after a final order of removal had been issued. In June 2013, an Immigration Judge in Philadelphia sustained a ruling that Mendez, who had entered the U.S. on a VISA in 1988, was not here legally and ordered him to be removed. Mendez then allegedly refused to comply with established removal procedures.
If convicted, Carlos Mendez faces up to four years imprisonment.
The case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. 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 4 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.
Carbon County Man Pleads Guilty to Federal Cocaine Trafficking ChargeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Lansford, Carbon County, resident pleaded guilty today in U.S. District Court in Scranton, before Senior United States District Judge Edwin M. Kosik, to the charge of distributing cocaine.
According to United States Attorney Peter J. Smith, Joseph Revell, age 21, admitted to distributing cocaine in the Carbon County area between January 2011 and September 2012.
Revell is the fifth defendant to enter a guilty plea in connection with the joint federal-local investigation. Previously, Bonnie Vosburgh, age 22, of Nesquehoning, Victoria Argott, age 34, of Lansford, Ceres Lozada, age 27, of Nesquehoning, and Alexander “Butch” Sommers, age 47, of Summit Hill, entered guilty pleas and admitted to participating in the same cocaine trafficking conspiracy.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nesquehoning and Lansford Police Departments.
The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
In this particular case, the maximum penalty under the federal statute is 40 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.
Bradford County Husband and Wife Plead Guilty to Tax Fraud SchemeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that Tandy and Sandy Talada of Sayre, Pennsylvania pleaded guilty to a felony criminal information charging tax fraud on January 22, 2014 in Williamsport.
According to United States Attorney Peter J. Smith, Randy Talada and his wife Sandy Talada appeared before U.S. District Court Judge Matthew W. Brann. Randy Talada pleaded guilty to one count of conspiracy to commit mail fraud and tax evasion and Sandy Talada pleaded guilty to one count of tax evasion. The criminal information and plea agreements were filed on January 2, 2014.
Randy Talada faces a total potential sentence of 5 years’ incarceration and a fine of $250,000. Sandy Talada is facing a total potential sentence of 5 years’ incarceration and a fine of $100,000. Judge Brann ordered a pre-sentence report to be prepared by the Probation Department.
The criminal charges stem from an investigation conducted by the IRS, FBI, and the Athens Borough Police Department. Randy Talada was employed by the Athens, Pennsylvania American Legion Post 246, being paid under-the-table while at the same time collecting workers’ compensation and SSI, being allegedly totally disabled and physically unable to work. Talada was employed as the Bar Club manager, and during the time that he was so employed his wife, Sandy Talada “won” more than $100,000 in small games of chance at the American Legion over a four year period.
None of the income from Randy Talada’s cash salary nor Sandy Talada’s lottery/small game of chance “winnings” were reported on the couple’s joint federal tax returns. Randy Talada collected workers’ compensation while fraudulently claiming to be physically unable to work.
This case was investigated by the IRS, FBI and Athens Borough Police Department, and is being prosecuted by Assistant United States Attorney Todd K. Hinkley.
Owner of Harrisburg Labor Supply Businesses Charged with Withholding Tax FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that a federal grand jury in Harrisburg returned a 17-count indictment against Howard Ginting, age 29, of Harrisburg, PA, on January 22, 2014. The Indictment charges Ginting with tax evasion and with failing to pay withholding taxes totaling $216,846.70 on income of approximately $1 million. Howard Ginting was the sole owner of Ginting Enterprises, Inc., a Pennsylvania corporation located in Harrisburg, Pennsylvania
According to U.S. Attorney Peter Smith, Ginting Enterprises allegedly supplied day laborers to businesses in central and northeastern Pennsylvania on an as-needed basis. As the owner and operator of the corporation, Ginting was required to withhold from the wages of the GEI employees the Federal Insurance Contributions Act (FICA) taxes on a quarterly basis. From October, 2006 through on or about February, 2008, Ginting Enterprises allegedly paid wages totaling approximately $851,553. Ginting falsely reported to the IRS that he had only paid wages in the amount of approximately $68,549, underpaying the Social Security tax and Medicare taxes owed by GEI by approximately $119,799.
On or about February, 2008, Ginting shut down Ginting Enterprises and operated his same labor supply business under the name Trojan Services, Inc. Between February, 2008 and May, 2011, while being operated by Ginting, Trojan paid wages of approximately $638,477, but Ginting allegedly failed to report to the Internal Revenue Service (IRS) all wages paid to his employees, underpaying Social Security tax and Medicare taxes owed by Trojan by approximately $97,047. This resulted in underreporting the employee and employer share of the Social Security and Medicare taxes in the total amount of approximately $216,846.
The case was investigated by the Harrisburg office of the Internal Revenue Service. Assistant U.S. Attorney Gordon Zubrod coordinated the grand jury investigation and has been assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of 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 75 years’ imprisonment, a term of supervised release following imprisonment, and a fine of over $300,000 as well as significant tax penalties. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Owner of Forty Fort GM Foodmart Store Pleads Guilty to Money Laundering ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 47-year-old Forty Fort businessman pleaded guilty yesterday in Scranton before Senior U.S. District Court Judge Edwin M. Kosik to participating in a conspiracy to launder drug proceeds related to the distribution of synthetic marijuana.
According to United States Attorney Peter Smith, the defendant, Mastan Mathan, of Forty Fort, admitted to conducting financial transactions with drug proceeds that were designed to conceal the nature of the proceeds and carry on the illegal distribution of synthetic marijuana. The money laundering activity occurred between October 2011 and July 2012, and involved approximately $310,000.
Mathan was charged in a criminal Information filed by the United States Attorney last week. Mathan and his co-conspirators obtained synthetic marijuana from out-of-state suppliers, sold synthetic marijuana to customers from the GM Foodmart Store in Forty Fort, and deposited the proceeds of drug sales into at least two bank accounts to conceal the illegal nature of the proceeds and to promote the carrying on of the illegal drug business.
The prosecution of Mathan resulted from an investigation by the IRS-Criminal Investigations, the Drug Enforcement Administration, and the Pennsylvania State Police.
Mathan faces up to 20 years in prison and a $500,000 fine. Mathan forfeited approximately $174,000 to the United States that was seized by agents during the investigation.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Former President of Wyoming Area Education Association Sentenced to Prison for Embezzlement of Union FundsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lisa Barrett, age 48, of Shavertown, Luzerne County, was sentenced today in Scranton by Senior United States District Court Judge James M. Munley to serve 12 months in prison for embezzlement of funds from a labor organization.
Barrett, the past president of the Wyoming Area Education Association (WAEA), was charged with, previously, and admitted to, converting labor union funds to her own use from 2006 to 2012. Barrett resigned as president of WAEA in March 2013. Barrett has made restitution to the WAEA in the amount of $59,273.
In addition to the prison term, Senior Judge Munley also ordered that Barrett be supervised by a probation officer for two years following her prison sentence.
The investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
Camp Hill Marijuana Trafficker Sentenced to Federal PrisonRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced that Andrew Angle, age 26, Camp Hill, was sentenced on January 23, 2014 to 27 months in prison for conspiracy to distribute marijuana.
According to United States Attorney Peter J. Smith, yesterday in Harrisburg, Chief U.S. District Court Judge Christopher C. Conner held a sentencing hearing in which he heard testimony by a DEA agent regarding Angle’s marijuana trafficking activities between December 2011 and March 2012. Following the testimony, Chief Judge Conner found Angle responsible for distributing between 5 kilograms and 10 kilograms of marijuana. The court also imposed fines of $500, two years of supervised release, and forfeiture of an additional $6,600 in funds.
Angle previously entered a guilty plea to conspiracy to distribute marijuana. Pursuant to the plea agreement, Angle forfeited over $50,000 in cash and drug proceeds seized from a bank account, safe deposit box, and locations affiliated with Angle.
The case was investigated by the DEA, Dauphin County Drug Task Force, and the Cumberland County Drug Task Force and prosecuted by Assistant United States Attorney Michael A. Consiglio.
York Woman Charged Federally with Wire FraudRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that the federal grand jury in Harrisburg returned an Indictment on January 22, 2014 charging Nancy Sipe, age 47, York, with Wire Fraud.
According to United States Attorney Peter J. Smith, from August 2008 to February 2012, Nancy Sipe allegedly took money totally approximately $80,000 from her brother-in-law’s bank and retirement accounts, without authorization, while acting as his power-of-attorney. Sipe then allegedly used the money to pay for vacations and for personal and private financial gain.
If convicted, Sipe faces a term of imprisonment of up to 20 years and a $250,000 fine.
This case was investigated by the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
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.
****New Jersey Man Pleads Guilty to Making False Statements to HUDRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 65-year-old New Jersey resident pleaded guilty today in Wilkes-Barre before U.S. Magistrate Judge Karoline Mehalchick to making false statements and representations in connection with a Federal Housing Administration (FHA) insured mortgage with intent to defraud the Department of Housing and Urban Development.
According to United States Attorney Peter J. Smith, the defendant, Martin Sacci, of South Plainfield, New Jersey, admitted that he knowingly failed to disclose the existence of a second loan made to a borrower in an FHA-insured mortgage for a property located in Long Pond, Pennsylvania. Sacci admitted that he received and cashed payments on the undisclosed loan after the property was sold, and urged the borrower to refrain from disclosing the loan to investigators.
Sacci was charged as a result of an investigation by the Office of Inspector General of the Department of Housing and Urban Development (HUD).
Sacci faces up to one year in prison and a $100,000 fine. Sentencing will be scheduled after a pre-sentence report is completed.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
****Hazleton Man Sentenced to 100 Months in Prison for Robbing Three BanksRead 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 sentenced Shawn Luther Kelley, age 35, of Hazleton, Pennsylvania, to 100 months’ imprisonment for his robbery of three financial institutions.
According to United States Attorney Peter Smith, Kelley appeared in Federal Court in Wilkes-Barre on October 21, 2013, and admitted to committing the following bank robberies: (1) the PNC BANK, located at 499 Susquehanna Boulevard, Hazle Township, Pennsylvania, on April 16, 2012; (2) the CHOICE ONE COMMUNITY FEDERAL CREDIT UNION, located at 983 North Sherman Court, Hazleton, Pennsylvania, on April 20, 2012; and (3) the CITIZENS BANK located at 40 West Broad Street, West Hazleton, Pennsylvania, on April 24, 2012.
Kelley was arrested shortly after the Citizens Bank robbery on April 24, 2012.
At the sentencing today in Wilkes-Barre, the defense attributed Kelley’s robberies to his need to obtain money to sustain a heroin addiction.
The case was investigated by special agents of the Federal Bureau of Investigation, Pennsylvania State Police, Hazleton Police Department and West Hazleton Police Department. Assistant United States Attorney John Gurganus prosecuted the case.
****Wilkes-Barre Men Charged with Drug Trafficking OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today the filing of criminal informations yesterday charging three men from Luzerne County separately with drug trafficking offenses.
Richard Hall, age 38, of Wilkes-Barre, was charged with conspiracy to distribute cocaine hydrochloride and cocaine base (crack) between 2009 and April 2013. Hall is also charged with distributing marijuana to a seventeen year old.
Alfred Oglesby, age 45, of Wilkes-Barre, was charged with distributing cocaine on numerous occasions between 2010 and April 2, 2013.
Robert Tolbert, age 39, of Wilkes-Barre, was charged with possession with the intent to distribute cocaine hydrochloride and cocaine base (crack) on April 2, 2013.
United States Attorney Peter J. Smith stated that the charges are the result of an investigation conducted by the Federal Bureau of Investigation; the Pennsylvania Attorney General’s Office; and the Luzerne County District Attorney’s Office. 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 thirty years’ imprisonment for Richard Hall, and twenty years’ imprisonment for Alfred Oglesby and Robert Tolbert. Each also faces 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.
****Two Charged with Drug Trafficking OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the Grand Jury in Scranton returned Indictments on January 21, 2014 charging Rasheen Smith, age 25, of Endicott, New York, and Tasmiyah Sharif, age 23, of Wilkes-Barre, Pennsylvania, separately with conspiring to distribution of cocaine, cocaine base and marijuana. The Indictments also charged the each defendant with distributing controlled substances in Luzerne County during 2012 and 2013.
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.
Three People Charged in Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that two Philadelphia residents and a state prison inmate were indicted by a federal grand jury yesterday for participating in a drug trafficking conspiracy that distributed heroin during November 2013 to the present.
According to United States Attorney Peter J. Smith, the grand jury alleges that Eudy Gonzalez, age 24, an inmate at State Correctional Institution Waymart, Linda Reyes, age 23, and Luis Morales, age 31, conspired to distribute and possess with intent to distribute more than 100 grams of heroin during a two-month time period.
The Indictment alleges that the defendants arranged to obtain heroin in Philadelphia and had the heroin transported to the Allentown area for further distribution into the Hazleton area. The indictment alleges that the suspects communicated with each other and drug customers by phone and text messages.
The charges stem from an investigation by special agents and task force officers of the Federal Bureau of Investigation and Scranton Police.
If the defendants are convicted of the charges, they each face a mandatory minimum sentence of five years in prison and a possible maximum sentence of 40 years in prison.
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 40 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 Bank Supervisor Charged with Embezzling $316,324.00Read the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced that today in U.S. District Court in Harrisburg, a criminal information has been filed against Shelly Ann Kocher, 42, Lehighton, Pennsylvania, for embezzling approximately $316,324 from customer accounts while she worked as a customer service supervisor at Jim Thorpe National Bank in Jim Thorpe, Pennsylvania. A plea agreement was also filed indicating that Kocher intends to plead guilty to the charge when she appears in federal court for her arraignment.
According to U.S. Attorney Peter J. Smith, Kocher was employed by Jim Thorpe National Bank from 1999 until May 2013. Kocher allegedly embezzled the funds by making unauthorized withdrawals from customers' CD and savings accounts between April 2010 and April 2013. Upon discovery of the activity, the bank reimbursed the victims for their losses.
If convicted, Kocher faces up to 30 years' imprisonment, $1 million in fines, and mandatory restitution.
The case was investigated by the Scranton office of the FBI and is assigned to Senior Litigation Counsel Bruce Brandler.
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.
Etters Couple Sentenced on Federal Tax Evasion and Bribery ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Mayra Garces, age 47 and Ivan Garces, age 45, Etters, Pennsylvania, were sentenced yesterday in U.S. District Court in Harrisburg on charges involving tax evasion and bribery.
U.S. District Court Judge John E. Jones, III sentenced Ivan Garces to 18 months’ imprisonment, a $7,700 fine and a term of supervised release of one year. The Court sentenced Mayra Garces to 12 months plus one day of imprisonment, a $7,700 fine and a term of supervised release of one year.
According to United States Attorney Peter J. Smith, on September 27, 2011, the Garces offered to pay a Revenue Agent, who was conducting an audit, $50,000 if the agent would reduce their tax liability and not expand the audit to include the years before and after the current audit. On November 10, 2011, during an undercover operation, the couple paid the Revenue Agent $50,000 in cash.
A review of the couples’ business records established that the couple intentionally failed to report $1,091,267 in income for the years 2008, 2009 and 2010.
The Garces pleaded guilty to tax evasion and bribery of a public official in May 2013. The couple has paid the IRS a total of $843,866.47 in penalties, back taxes and interest. The $50,000 used for the bribe was relinquished to the United States Treasury.
“Tax evasion is not a victimless crime,” said IRS Special Agent in Charge Akeia Conner. “We all pay when others swindle the government. This sentence should send a clear message: schemes to evade the payment of taxes are a violation of the Federal Tax laws and the consequences of such schemes can and will result in jail time. Honest taxpayers have been reassured today that no one is above the law--especially when the integrity of tax administration is at stake.”
Robert Geary, TIGTA Special Agent in Charge, stated “today’s sentence also sends a clear and convincing message that those individuals who use bribery as a criminal vehicle to escape their just federal tax obligation face substantial criminal and financial penalties. TIGTA stands in close partnership with the U.S Attorney's Office to identify, thoroughly investigate, and prosecute such criminal conduct.”
This case was investigated by the Treasury Inspector General for Tax Administration (TIGTA) and the Internal Revenue Service-Criminal Investigations. Prosecution was handled by Assistant United States Attorney Daryl F. Bloom.
****Millcreek Township School District Agrees to Pay Government $350,000 to Resolve Allegation of Improper Medicaid ReimbursementRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Millcreek Township School District has agreed to pay the United States $350,000 to resolve allegations that it submitted improper claims to the Medicaid-funded School Based Access Program. Millcreek Township School District is the public school system for students residing in Millcreek Township, Pennsylvania, a suburb of Erie.
According to United States Attorney Peter J. Smith, Millcreek Township School District has agreed to pay $350,000 to resolve allegations that from August 11, 2005, through June 28, 2007, the School District improperly submitted claims to the Pennsylvania School Based Access Program for payment when those claims did not satisfy the necessary program requirements. Payment is due within 60 days from the date of the Settlement Agreement (January 14, 2014).
The Pennsylvania School Based Access Program provides federal Medicaid reimbursement to schools for health related services provided by those schools to special needs students as part of an Individualized Education Plan. Schools submitting claims to Access for payment must satisfy a number of requirements, and the amount of reimbursement depends on the type of service performed.
The U.S. Attorney’s Office in Harrisburg had jurisdiction because Access is managed by the Pennsylvania Department of Public Welfare and the Pennsylvania Department of Education, both of which are based in Harrisburg.
In regard to Millcreek, the government determined that the School District submitted Access claims and received federal reimbursement for claims that were improper due, generally, to discrepancies including the absence of recipients on dates billed for services, claims for non-compensable services, improper grouping of services for billing purposes, lack of adequate documentation, and claims for unlisted services. The specific types of violations are set out in the Settlement Agreement. (A copy of the Settlement Agreement is available from the U.S. Attorney’s Office on request.)
The U.S. Attorney’s Office credited the assistance provided by the Pennsylvania Department of Public Welfare, which conducted the audit of Millcreek Township School District’s Access claims. The U.S. Attorney’s Office also acknowledged Millcreek Township School District’s cooperation with the investigation. The Settlement Agreement is not an admission of liability by the School District.
The case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and the U.S. Department of Education, Office of Inspector General. The case was handled by Assistant United States Attorneys D. Brian Simpson and Anthony Scicchitano, Civil Division, United States Attorney’s Office.
****Previously Indicted Chambersburg Woman Charged with Two Counts of Tampering with A WitnessRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg handed up a second-superseding indictment charging Maria Colvard, age 48, of Chambersburg, on January 15, 2014, charging her with two counts of tampering with a witness in addition to previous charges of extortion, aiding and abetting false personation of an employee of the United States, and interference with commerce by threats.
According to U.S. Attorney Peter J. Smith, between February and May 2013, Colvard convinced an employee to claim to be a criminal investigator with the Internal Revenue Service in order to collect alleged taxes owed, gain a client list from a rival tax preparation business and to ultimately shut down the business, Cristina’s Tax Service, LLC. Maria Colvard is the owner of Tax Max LLC, a tax preparation service.
Colvard was first indicted in June 2013, arrested and ordered released pending trial. A superseding indictment was filed in November 2013. Colvard allegedly offered her employee $50,000 if she would take responsibility for the underlying crimes without cooperating with law enforcement or involving Colvard. On January 6, 2014, Colvard allegedly went to the business of her co-defendant’s husband and confronted her co-defendant in an attempt to get her co-defendant not to testify against Colvard. Part of the conditions of Colvard’s pre-trial release required Colvard not to have any contact, direct or indirect, with her co-defendant.
U.S. Attorney Smith stated the government will investigate promptly and prosecute to the fullest extent of the law allegations of witness tampering in federal cases.
If convicted of all five charges, Colvard faces up to 66 years’ imprisonment and fines of up to $1,250,000.
This case is being investigated by the United States Treasury Inspector General for Tax Administration (TIGTA) and is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
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 66 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.
****Drug Trafficking Indictment Unsealed -- Members of Williamsport Heroin and Crack Distribution Network in Federal CustodyRead the Press Release
The United States Attorney’s Office today announced the unsealing of an 11-count indictment by the federal grand jury in Harrisburg charging the following Williamsport and Philadelphia men with conspiracy to distribute heroin, crack cocaine, and cocaine and other drug distribution charges:
Defendant Age Recent Address
MALIK S. HANNIBAL, 29 Williamsport
aka “Snow”ARNELL A. MONROE, 32 Williamsport
aka “Jigga”
aka “Andre Duckett”LAMONT CHYANNE BLOUNT, 21 Philadelphia
aka “Mont”JOEY LEHIGH ELMORE, 24 Philadelphia
aka “Yolo”DERRICK MALIK SAVAGE, 20 Philadelphia
aka “Maybach”ZURIEL AHKI LOVE, 18 Philadelphia
aka “Poppy”The indictment was returned in Harrisburg on November 20, 2013, but had been sealed pending the arrest of all the co-defendants. According to United States Attorney Peter J. Smith, the indictment alleges that from November 2012 through the date of the indictment the co-conspirators distributed heroin, crack cocaine, and cocaine to drug users and sellers in Williamsport and Lycoming and Tioga Counties.
The indictment alleges that the co-defendants were known as the “Tat-Gang” and used mobile phones, social media, two addresses in Williamsport, and multiple motor vehicles to facilitate drug distribution activities. The indictment also alleges that the co-conspirators bought, sold, traded, and possessed firearms in exchange for cash and controlled substances and to facilitate the distribution of controlled substances.
Codefendants Savage and Blount were arrested this week: Philadelphia Police officers arrested Blount in Philadelphia during the evening of January 15, 2014. The Pennsylvania State Police arrested Savage in the early morning hours of January 16, 2014 on Interstate 80, near the Interstate 81 exit. Members of the FBI and Williamsport Bureau of Police arrested Hannibal, Monroe and Elmore shortly after the indictment on November 20, 2013, and they arrested Zuriel Love on December 20, 2014. All six codefendants have been detained pending trial or pending detention hearings.
If convicted of the conspiracy and drug distribution offenses charged in the indictment, the defendants face a maximum penalty of 40 years in prison, a mandatory minimum sentence of five years’ imprisonment, a maximum fine of $5 million, and a supervised release term of at least four years.
The case was investigated by the Williamsport Bureau of Police, the Pennsylvania State Police, and the Federal Bureau of Investigation. Prosecution is assigned to Assistant United States Attorney George J. Rocktashel. Mr. Smith expressed thanks to the Philadelphia Police Department and United States Marshals Service for their assistance in apprehending the co-defendants.
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 40 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.
Pike County Man Sentenced to 15 Years in Prison for Receiving and Distributing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 49-year-old Dingmans Ferry resident who admitted to receiving and distributing child pornography during January through May of 2013, was sentenced today to serve 15 years in prison by U.S. District Court Judge Malachy E. Mannion.
According to United States Attorney Peter J. Smith, the defendant, Richard A. Lewis, pleaded guilty to the crime on September 5, 2013.
Lewis was indicted by a federal grand jury in May 2013 for using a computer to receive child pornography from a resident of Ontario, Canada, and distribute the child pornography to others.
The charge against Lewis resulted from an investigation by the Department of Homeland Security and the Ontario Provincial Police.
Judge Mannion also ordered that Lewis be placed on supervised release for life following his prison sentence. Lewis must also receive sex offender treatment and abide by sex offender registration requirements after his release from prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Owner of Forty Fort GM Foodmart Store Charged with Money LaunderingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that it has charged a 47-year-old Forty Fort businessman with conspiracy to commit money laundering related to the distribution of synthetic marijuana.
According to United States Attorney Peter J. Smith, his office filed a criminal Information yesterday against Mastan Mathan, charging him with conspiring to launder the proceeds of synthetic marijuana sales between October 2011 and July 2012.
The Information alleges that Mathan and/or his co-conspirators obtained synthetic marijuana from out-of-state suppliers; sold synthetic marijuana to customers from the GM Foodmart Store in Forty Fort; and deposited the proceeds of drug sales into at least two bank accounts in order to conceal the illegal nature of the proceeds and to promote the carrying on of the illegal drug business.
The charge against Mathan resulted from an investigation by the IRS Criminal Investigative Division, the Drug Enforcement Administration, and the Pennsylvania State Police.
If convicted of the charge, Mathan faces up to 20 years in prison and a $500,000 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 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.
Man Sentenced in Identification Fraud CaseRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Alberto Hernandez-Torres, formerly of Hazleton, Pennsylvania, was sentenced today by United States District Court Judge Malachy Mannion in Scranton to 27 months’ imprisonment after having pleaded guilty to conspiracy to commit identification fraud and conspiracy to commit alien smuggling for financial gain. Hernandez-Torres was also ordered to forfeit $40,000 to the United States. At the conclusion of the proceeding, Judge Mannion entered an order of removal requiring that Hernandez-Torres be removed from the United States to his home country of Mexico.
According to United States Attorney Peter Smith, the multi-jurisdictional, transnational investigation in this case was conducted by investigators of the Department of Homeland Security-Immigration and Customs Enforcement, the United States Postal Inspection Service, the Internal Revenue Service and the United States Department of State. The investigation included 18 court-authorized wiretaps and a nationwide coordinated case take-down that included 260 search warrants, including a search warrant in Hazleton. Fifty-three persons were charged in the case of whom forty-nine were arrested. All 49 persons arrested so far have entered guilty pleas.
The investigation and prosecutions in this case were coordinated by James Yoon, Hope Olds, Courtney Schaefer and Christina Giffin, attorneys in the United States Department of Justice, Criminal Division, Human Rights and Special Prosecutions Section. The case was handled locally in the Middle District of Pennsylvania by Assistant U.S. Attorney William Houser.
Two Men Charged Federally with Access Device FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a federal grand jury in Scranton returned an Indictment yesterday against Kalvin Rasheem Lopez, 34, Rockaway Park, New York, and Chaka Burgess-Frazier, 36, Tannersville, Pennsylvania, charging both men with conspiracy and access device fraud.
According to U.S. Attorney Peter Smith, Lopez was also charged individually with multiple counts of aggravated identity theft and fraud in connection with identification documents. The Indictment alleges that beginning in June 2013 and continuing through November 2013, the defendants possessed and used counterfeit access devices to purchased merchandise throughout the Middle District of Pennsylvania.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Burgess-Frazier faces 20 years imprisonment and fines in the amount of $500,000. A warrant has been issued for his arrest.
Lopez faces 45 years imprisonment and fines in excess of $1,000,000. He is in custody at the Lackawanna County Prison.
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.
****Three Harrisburg Men Charged Federally with Hobbs Act Robbery and Use of A Firearm During A Crime of ViolenceRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Tory Dobbin, age 41, George Stoney, age 40, and Nathaniel Mosely, age 43, all from Harrisburg, Pennsylvania, were indicted today by a federal grand jury in Harrisburg on charges of robbery of a business engaged in interstate commerce (Hobbs Act robbery), and Use of a Firearm During a Crime of Violence.
According to United States Attorney Peter J. Smith, allegedly, on December 3, 2013, the trio, each armed with firearms robbed the Cracker Barrel restaurant located on Brindle Road in Harrisburg, Pennsylvania. They allegedly exited the restaurant with just over $8,000, where they were met by Susquehanna Township Police and fled on foot. After a brief foot chase, all three were apprehended nearby. The trio allegedly stole a car from a Ford dealership in Sunbury, Pennsylvania the night before to be used as a getaway car.
This case was investigated by the Federal Bureau of Investigation, the Capital City Safe Streets Task Force and the Susquehanna Township Police Department. The case is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
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 $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
****Former Owner of Connecticut Construction Company Sentenced in Largest Disadvantaged Business Enterprise Fraud in Nation’s HistoryRead the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced today that Romeo P. Cruz, of West Haven, Connecticut was sentenced by Senior U.S. District Judge Sylvia H. Rambo in Harrisburg in connection with his role in what the U.S. Department of Transportation (USDOT) has called the largest Disadvantaged Business Enterprise (DBE) fraud in the nation's history. Cruz was sentenced to 33 months’ imprisonment, $119 million in restitution to the USDOT and $79,450 in restitution to the IRS, and 2 years supervised release. He was ordered to surrender to the Bureau of Prisons on February 17, 2014 to begin service of his sentence.
On Monday January 13, 2014, Dennis F. Campbell, Schuylkill Products, Inc.'s (SPI) former Vice-President in charge of Sales and Marketing, was sentenced to 24 months’ imprisonment, $119 million in restitution to the USDOT and 2 years supervised release. Timothy G. Hubler, SPI's former Vice-President in charge of Field Operations, was sentenced to 33 months’ imprisonment, $119 million in restitution to the USDOT, $82,370 in restitution to the Internal Revenue Service, and 2 years supervised release.
Cruz was the owner of Marikina Construction Corporation, the DBE firm which operated as a front for SPI to gain lucrative DBE contracts, pleaded guilty to DBE fraud and tax fraud in 2008 and 2009. Cruz, Campbell and Hubler cooperated with the government's investigation which led to the conviction of the two former owners of SPI, Ernest G. Fink, of Orwigsburg, Pennsylvania, SPI's former Vice-President and Chief Operating Officer, and Joseph W. Nagle, of Deerfield Beach, Florida, SPI's former President and Chief Executive Officer.
Fink pleaded guilty to DBE fraud in 2010. Nagle was convicted after a four-week jury trial in 2012 of 26 charges relating to the DBE fraud scheme. No sentencing date has been scheduled for Fink and Nagle.
"The sentence handed down today, in what is the largest reported DBE fraud case in USDOT history, serves as a clear signal that severe penalties await those who would attempt to subvert USDOT laws and regulations,” said Doug Shoemaker, OIG Regional Special Agent in Charge. “Preventing and detecting DBE fraud are priorities for the Secretary of Transportation and the USDOT Office of Inspector General. Prime contractors and subcontractors are cautioned not to engage in fraudulent DBE activity and are encouraged to report any suspected DBE fraud to the USDOT-OIG. Our agents will continue to work with the Secretary of Transportation, the Administrators of the Federal Highway, Transit and Aviation Administrations, and our law enforcement and prosecutorial colleagues to expose and shut down DBE fraud schemes throughout Pennsylvania and the United States.”
According to U.S. Attorney Peter J. Smith, the DBE fraud lasted for over 15 years and involved over $136 million in government contracts in Pennsylvania alone. SPI, using Marikina as a front, operated in several other states in the Mid-Atlantic and New England regions. Although Marikina received the contracts on paper, all the work was really performed by SPI personnel, and SPI received all the profits. In exchange for letting SPI use its name and DBE status, Marikina was paid a small fixed-fee set by SPI.
The scheme lasted as long as it did because of the numerous fraudulent steps the co-conspirators took to conceal the scheme. SPI personnel routinely pretended to be Marikina personnel 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's logo on SPI vehicles.
SPI and its wholly-owned subsidiary, CDS Engineers, was sold in 2009 and was based in Cressona, Pennsylvania. SPI manufactured concrete bridge beams. CDS was SPI’s erection division and installed SPI’s bridge beams as well as other suppliers’ products. 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. The DBE fraud here involved SPI's use of Marikina's name and status to obtain DBE contracts that it was not entitled to receive.
The investigation was conducted by the FBI, the USDOT Inspector General's Office, U.S. Department of Labor Inspector General’s Office, and the Criminal Investigation Division of the Internal Revenue Service. Senior Litigation Counsel Bruce Brandler handled the prosecution.
****Federal Inmate Charged with Possession of Hand-made WeaponRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton returned an Indictment yesterday against Ronnie Perkins, age 23, an inmate incarcerated at the Federal Correctional Institute at Schuylkill yesterday.
According to United States Attorney Peter J. Smith, Inmate Ronnie Perkins is charged with being in possession of a hand-made stabbing weapon on prison grounds.
If convicted, Ronnie Perkins could be imprisoned for a total statutory maximum of up to five years’ imprisonment and a fine of $250,000.
The investigation was conducted by the FBI and the Bureau of Prisons and is assigned to Assistant United States Attorney Todd K. Hinkley 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.
Alleged Illegal Alien Indicted for Failure to DepartRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton returned an Indictment yesterday against Sergey Ryzhenkov charging failure to depart the United States.
According to United States Attorney Peter J. Smith, Sergey Ryzhenkov, age 30, a native and citizen of Russia, was charged with allegedly failing to comply with facilitating his departure from the United States after a final order of removal had been issued.
If convicted, Sergey Ryzhenkov faces up to four years imprisonment.
The case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. 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
New Jersey Man Charged with False Statements to HUDRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 65-year-old New Jersey resident was charged yesterday with making false statements and representations in connection with a Federal Housing Administration (FHA) insured mortgage with intent to defraud the Department of Housing and Urban Development.
According to United States Attorney Peter J. Smith, his office filed a criminal information against Martin Sacci of South Plainfield, New Jersey, for his role in failing to disclose the existence of a second loan made to a borrower in an FHA-insured mortgage for a property located in Monroe County, Pennsylvania.
The charge against Sacci stems from an investigation by the Office of Inspector General of the Department of Housing and Urban Development (HUD).
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 one year imprisonment, a term of supervised release following imprisonment, and a fine of up to $100,000. 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.
****Luzerne County Woman Sentenced to Probation with Home Confinement for Misprision of A FelonyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 31-year-old Wilkes-Barre resident was sentenced to probation with home confinement by U.S. District Court Judge Malachy E. Mannion yesterday in Scranton.
According to United States Attorney Peter J. Smith, Christine Hanahan admitted to failing to report the nature and extent of her paramour’s cocaine trafficking in and around Kingston.
Hanahan was indicted by a federal grand jury in March of 2013, as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kingston Police Department into cocaine distribution and firearms straw purchasing. She pleaded guilty to a superceding criminal information, charging misprision of a felony filed on October 9, 2013, after Judge Mannion rejected the proposed plea to straw purchase of a firearm due to the defendant’s insistence that it was a purchase made jointly with her partner, and co-defendant, Jovon Martin, also charged in the case.
Judge Mannion placed Hanahan on supervised release for two years, including six months on home confinement with electronic monitoring.
Two of Hanahan’s co-defendants previously entered guilty pleas in the case. John Teslicko was sentenced to 6 months in prison. Jovon Martin is awaiting sentencing.
The case was prosecuted by Assistant U.S. Attorney Amy C. Phillips
Two Former Vice-Presidents of Schuylkill Products, Inc.Read the Press Release
Sentenced In Largest Disadvantaged Business
Enterprise Fraud In Nation's HistoryThe U.S. Attorney's Office for the Middle District of Pennsylvania announced today that Dennis F. Campbell, of Orwigsburg, Pennsylvania, and Timothy G. Hubler, of Ashland, Pennsylvania, were sentenced by the Senior U.S. District Judge Sylvia H. Rambo in Harrisburg in connection with their roles in what the U.S. Department of Transportation (USDOT) has called the largest Disadvantaged Business Enterprise (DBE) fraud in the nation's history.
Campbell, Schuylkill Products, Inc.'s (SPI) former Vice-President in charge of Sales and Marketing, was sentenced to 24 months’ imprisonment, $119 million in restitution to the USDOT and 2 years supervised release. Hubler, SPI's former Vice-President in charge of Field Operations, was sentenced to 33 months’ imprisonment, $119 million in restitution to the USDOT, $82,370 in restitution to the Internal Revenue Service, and 2 years supervised release. Both men were ordered to surrender to the Bureau of Prisons by February 17, 2014 to commence service of their sentences.
Campbell pleaded guilty to DBE fraud in 2008, and Hubler pleaded guilty to DBE fraud and tax fraud in 2008. Romeo P. Cruz, of West Haven, Connecticut, the former owner of Marikina Construction Corporation, the DBE firm which operated as a front for SPI to gain lucrative DBE contracts, pleaded guilty to DBE fraud and tax fraud in 2008 and 2009, and is scheduled to be sentenced on Wednesday, January 15, 2014. All three men cooperated with the government's investigation which led to the conviction of the two former owners of SPI, Ernest G. Fink, of Orwigsburg, Pennsylvania, SPI's former Vice-President and Chief Operating Officer, and Joseph W. Nagle, of Deerfield Beach, Florida, SPI's former President and Chief Executive Officer.
Fink pleaded guilty to DBE fraud in 2010. Nagle was convicted after a four-week jury trial in 2012 of 26 charges relating to the DBE fraud scheme. No sentencing date has been scheduled for Fink and Nagle.
"The sentences handed down today, in what is the largest reported DBE fraud case in USDOT history, serve as clear signals that severe penalties await those who would attempt to subvert USDOT laws and regulations,” said Doug Shoemaker, OIG Regional Special Agent in Charge. “Preventing and detecting DBE fraud are priorities for the Secretary of Transportation and the USDOT Office of Inspector General. Prime contractors and subcontractors are cautioned not to engage in fraudulent DBE activity and are encouraged to report any suspected DBE fraud to the USDOT-OIG. Our agents will continue to work with the Secretary of Transportation, the Administrators of the Federal Highway, Transit and Aviation Administrations, and our law enforcement and prosecutorial colleagues to expose and shut down DBE fraud schemes throughout Pennsylvania and the United States.”
According to U.S. Attorney Peter J. Smith, the DBE fraud lasted for over 15 years and involved over $136 million in government contracts in Pennsylvania alone. SPI, using Marikina as a front, operated in several other states in the Mid-Atlantic and New England regions. Although Marikina received the contracts on paper, all the work was really performed by SPI personnel, and SPI received all the profits. In exchange for letting SPI use its name and DBE status, Marikina was paid a small fixed-fee set by SPI.
The scheme lasted as long as it did because of the numerous fraudulent steps the co-conspirators took to conceal the scheme. SPI personnel routinely pretended to be Marikina personnel 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's logo on SPI vehicles.
SPI and its wholly-owned subsidiary, CDS Engineers, was sold in 2009 and was based in Cressona, Pennsylvania. SPI manufactured concrete bridge beams, as well as other suppliers' products. CDS was SPI’s erection division and installed SPI’s bridge beams as well as other suppliers’ products. 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. The DBE fraud here involved SPI's use of Marikina's name and status to obtain DBE contracts that it was not entitled to receive.
The investigation was conducted by the FBI, the USDOT Inspector General's Office, U.S. Department of Labor Inspector General’s Office, and the Criminal Investigation Division of the Internal Revenue Service. Senior Litigation Counsel Bruce Brandler handled the prosecution.
Texas Firm and Field Operations Supervisor Sentenced for Harboring and Transporting Illegal Aliens Used in North Central Pennsylvania Oil and Gas Survey WorkRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania today announced the sentencing on January 9, 2014 of GPX/GPX, USA, a seismic surveying company based in Sealy, Texas, and its field operations supervisor, Douglas C. Wiggill. On March 11, 2013, GPX entered a guilty plea to Count One of the indictment charging conspiracy to transport and harbor illegal aliens, and Wiggill entered a guilty plea to a one-count information, charging aiding and abetting the improper entry of illegal aliens. GPX is engaged in the business of providing seismic and surface mapping surveys for the oil and gas industry. Wiggill, a 44-year old Canadian national, worked for GPX for 22 years.
On January 9, 2014, United States District Judge Yvette Kane sentenced GPX to a period of 36 months’ probation and ordered the criminal forfeiture of $250,000, a $25,000 firm and a special assessment of $400 payable over the term of probation. Judge Kane also ordered GPX to implement a compliance program for confirming the employment eligibility and identity of all its current and prospective employees using the E-Verify System and the Form I-9 Employment Eligibility Verification process provided by the Department of Homeland Security. Judge Kane imposed a $5,000 fine and a special assessment on Wiggill.
According to United States Attorney Peter J. Smith, the indictment returned on May 10, 2012 alleged that in May 2011 GPX and Wiggill hired 19 illegal aliens to work on a seismic surveying project in Lycoming County. The indictment alleged that GPX and Wiggill failed to verify the immigration status of the aliens and did not prepare the required Form I-9 and supporting documentation concerning the aliens’ authorization to be in the United States.
According to the indictment, GPX executed a contractor compliance agreement certifying that all personnel were authorized to work legally in the United States when, in fact, they were not. On June 23 and 24, 2011, officers of the Williamsport Bureau of Police and agents of Homeland Security Investigations arrested the 19 aliens employed by GPX at, or in the vicinity of, apartments rented for them in Williamsport by Wiggill and GPX. The arrests were a result of an investigation of one of the aliens by Williamsport Police.
"Homeland Security Investigations is committed to holding businesses and their managers accountable when they knowingly hire an illegal workforce," said John Kelleghan, Special Agent in Charge of HSI Philadelphia. "HSI and our law enforcement partners will continue to ensure that employers follow our nation's hiring laws, which ultimately protects job opportunities for the nation's legal workers, and levels the playing field for those businesses that play by the rules."
The case was investigated by Homeland Security Investigations and the Federal Bureau of Investigation, with assistance from the Williamsport Bureau of Police. The case was prosecuted by Assistant United States Attorney George J. Rocktashel.
U.S. Attorney's Office Collects over $6 Million on Behalf of U.S. Taxpayers in Fiscal Year 2013Read the Press Release
The U.S. Attorney’s Office for the Middle District of Pennsylvania announced today that it collected approximately $6.4 million in criminal and civil matters in Fiscal Year 2013 (October 1, 2013 to September 30, 2013).
Of the total amount, $2.9 million was collected in criminal cases; $3.5 million was collected in civil actions
Additionally, the staff of the U.S. Attorney’s Office Middle District offices in Scranton, Harrisburg and Williamsport worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect jointly an additional $1.2 million.
The U.S. Attorney’s Office’s Victim Rights and Asset Forfeiture Unit obtained approximately $5.8 million in forfeitures in criminal and civil cases, plus an additional $1.9 million in money judgments not yet collected.
Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for law enforcement purposes.
The office shared approximately $7.3 million in forfeited assets with 26 state and local law enforcement agencies in Fiscal Year 2013. Shared funds, which include forfeited assets deposited in previous years, are used by the state and local agencies to pay for services and needed equipment and supplies.
U.S. Attorney Peter Smith stated that, as an example of the success of the sharing program, in October 2013, nine local and state law enforcement agencies received a total of $2.3 million as their shares of funds forfeited in connection with the investigation and prosecution of an untaxed tobacco case by those agencies, the IRS and the U.S. Attorney’s Office for the Middle District of Pennsylvania during 2012-13.
The agencies included the Scranton, Wilkes-Barre, Hazelton, Dunmore, and Pocono Mountain Police Departments, the Lackawanna County District Attorney’s Office and the Pennsylvania State Police.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of other federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Criminal Immigration Charges Brought Against Seven Illegal AliensRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, announced today that charges have been brought this week against the following:
Erik Samuel Coyoc, age 22, a native and citizen of Guatemala, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg yesterday. The indictment alleges that Coyoc, an alien previously arrested and deported, did knowingly and unlawfully reenter the United States and was apprehended in Franklin County, Pennsylvania.
If convicted, Coyoc, faces a maximum sentence of up to 2 years imprisonment and a $250,000 fine.
Alberto Bautista-Sanchez, age 30, a native and citizen of Mexico, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg yesterday. The indictment alleges that Bautista-Sanchez, an alien with previous criminal convictions in California, and who had been previously arrested and deported, did knowingly and unlawfully reenter the United States. He was located by federal immigration agents in Franklin County, Pennsylvania.
If convicted, Bautista-Sanchez faces a maximum sentence of up to 20 years of imprisonment and a $250,000 fine.
Victor Bautista-Marquez, age 25, a native and citizen of Mexico, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg yesterday. The indictment alleges that Bautista-Marquez, an alien with prior criminal convictions, and previously arrested and deported, did knowingly and unlawfully reenter the United States. He was located by federal immigration agents in Adams County, Pennsylvania.
If convicted, Bautista-Marquez faces a maximum sentence of up to 10 years of imprisonment and a $250,000 fine.
Rigoberto Osornio-Gomez, age 29, a native and citizen of Mexico, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg yesterday. The indictment alleges that Osornio-Gomez, an alien who had been previously arrested and deported, did knowingly and unlawfully reenter the United States. He was located by federal immigration agents in New Oxford, Adams County, Pennsylvania.
If convicted, Osornio-Gomez faces a maximum sentence of up to 10 years of imprisonment and a $250,000 fine.
Maria Gutierrez-Contreras, age 34, a native and citizen of Mexico, in the United States illegally was charged in a one-count information filed with the Court in Harrisburg today. The information alleges that Gutierrez-Contreras, an illegal alien, was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Gutierrez-Contreras faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
Norberto Castillo-Lopez, age 24, a native and citizen of Mexico, in the United States illegally was charged in a one-count information filed with the Court in Harrisburg today. The information alleges that Castillo-Lopez, an illegal alien, was found in the United States in Adams County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Castillo-Lopez faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
Juan Antonio Perez-Agion, age 35, a native and citizen of El Salvador, in the United States illegally was charged in a one-count information filed with the Court in Harrisburg today. The information alleges that Perez-Agion, an illegal alien, was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Perez-Agion faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
The investigations were conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement and are being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.
Court Upholds Sentence of Former Police Officer in Child Pornography CaseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that the U.S. Court of Appeals for the Third Circuit has upheld the sentence imposed on a former police chief for possession of child pornography.
In October 2012, Blaine R. Handerhan, a former Mount Carmel Borough police officer, was sentenced to serve 96 months in prison after pleading guilty to possession of child pornography. The charges against Handerhan stemmed from an investigation into the distribution of child pornography by the Internet Crimes Against Children Task Force, the Pennsylvania State Police, and the Federal Bureau of Investigation. Handerhan was identified by investigators and a search warrant was executed at his residence. His computer was seized and an analysis of it conducted by the Pennsylvania State Police identified 147,070 images and 1,252 video files of child pornography.
Handerhan appealed his sentence, handed down by Senior U.S. District Judge William W. Caldwell in Harrisburg, to the U.S. Court of Appeals for the Third Circuit in Philadelphia. Handerhan argued on appeal that he should be re-sentenced because the sentencing judge did not properly rule on all of the arguments he made at sentencing. After briefing and oral argument, the Court of Appeals upheld the sentence imposed by Judge Caldwell, finding it to be correct both in procedure and substance.
Assistant U.S. Attorney James T. Clancy handled both the prosecution and appeal of this case.
Court of Appeals Dismisses Federal Appeal of Convicted Former Penn State ProfessorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that on January 7, 2014, the U.S. Court of Appeals for the Third Circuit dismissed the appeal of Craig A. Grimes, former professor of materials science and engineering at Penn State.
In 2012, Grimes pled guilty to federal charges of wire fraud, false statements and money laundering stemming from Grimes’ misuse of federal grant funds totaling approximately $3 million obtained from the U.S. Department of Energy and the National Institutes of Health.
Grimes pleaded guilty in February 2012 before U.S. Chief Magistrate Judge Martin C. Carlson pursuant to a plea agreement. As part of the agreement, Grimes waived his right to appeal. In November 2012, U.S. District Court Judge Yvette Kane sentenced Grimes to 41 months imprisonment, a sentence at the lower end of the guideline range.
Despite the appeal waiver Grimes appealed, claiming that the waiver was not knowing and voluntary and was a miscarriage of justice based on the argument that a valid waiver could not include potential waiver claims based on ineffective assistance of counsel. Grimes did not challenge the sentence, only the validity of the waiver.
The Court of Appeals held that under the facts of the case, Grimes’ waiver was made knowingly and voluntarily and that the waiver did not constitute a miscarriage of justice, noting that there were no unusual circumstances here, or failure to prove an essential element of the offenses charged, that might require a different result.
The Government’s appeal was argued by Assistant U.S. Attorney Stephen R. Cerutti, II.
Court Finds Musto Not Mentally Competent to Stand TrialRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that after a hearing on January 6, 2014 in Wilkes-Barre, U.S. Senior District Court Judge A. Richard Caputo, issued an 11 page Memorandum and an Order on January 7 finding that former Pennsylvania Senator Raphael Musto is not mentally competent to stand trial, by a fair preponderance of the evidence.
Judge Caputo found that Musto was physically competent to stand trial. The finding of mental incompetency was based on the medical testimony and reports. Under the applicable statute, 18 United States Code Section 4241 (d), the Court noted that it is mandatory that Musto be committed to the custody of the Attorney General and that the question of the permanency of Musto’s condition was not before the Court at this time.
U.S. Attorney Peter Smith stated that given the reports and testimony of experts engaged by the Court, the Government and the defense, the Government does not intend to appeal the Judge’s Order.
Section 4241 (d) requires that the defendant be hospitalized “for treatment in a suitable facility” for a “reasonable time, not to exceed four months, as is necessary to determine whether there is a substantial probability that in the foreseeable future,” the defendant will “attain the capacity” to permit further proceedings.
According to U.S. Attorney Smith, the process of selecting a suitable facility and designating a time for the defendant to go there, is conducted by the U.S. Marshals Service and the Bureau of Prisons and may take approximately four to six weeks.