Middle District of Pennsylvania
Press releases recorded for this federal judicial district.
Former North Carolina Resident Charged with Fraud in Connection with Purchase of York County Property SentencedRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Caitlin Lucille Walls Smith, age 37, formerly of Wilmington, NC, was sentenced on March 28 by U.S. District Court Judge Sylvia H. Rambo to a 30-month term of imprisonment and three years of supervised release. Judge Rambo further ordered that Smith pay $437,000 in restitution.
Caitlin Smith was indicted in February 2012 with violations of the federal wire fraud statute. She pleaded guilty in November 2012.
According to United States Attorney Peter J. Smith, Caitlin Smith was a high school graduate who never completed her college education. In July 2008, she applied for a position as an officer in the nuclear program of the United States Navy.
In her application and in subsequent interviews, questionnaires and other documents, Smith falsely represented that she had a Bachelor of Science degree from the University of North Carolina, a Masters of Science in Chemistry from Duke University, a Doctor of Philosophy in Chemical Engineering and a Doctor of Philosophy in Environmental Engineering from the University of Delaware. She had never been awarded any of these degrees by any of the institutions.
Smith was accepted into the Navy nuclear program with the rank of Ensign. Using her fraudulently-acquired military status, she applied for a U.S. Department of Veterans Affairs-backed loan in September 2010 by calling PNC Bank in Newark, Delaware, for the purpose of purchasing a property in York County, Pennsylvania.As part of the loan application process, Smith submitted forged and fraudulent bank statements and documents purporting to be from the United States Navy confirming her actual and anticipated income and assets. Smith also submitted a forged and fraudulent lease agreement purporting to have been signed by herself and a third party to demonstrate that her property in Delaware had been leased and was therefore not a liability to the defendant or to PNC Bank. The loan was backed by the Department of Veterans Affairs under its Loan Guarantee Program.
In November 2010, PNC Bank approved Smith’s loan based on the forged and fraudulent bank statements and documents purporting to be from the United States Navy confirming her actual and anticipated income and assets and wire transferred the loan amount of $437,423.92 from Kentucky to the defendant’s title company account at Metro Bank in Lemoyne, Pennsylvania. The fraudulently-acquired funds were used by the defendant to acquire the York County property.
In 2010, Smith was court-martialed by the Navy for false representations relating to her enlistment.
The case was investigated by the Office of the Inspector General for the U.S. Department of Veterans Affairs and the Naval Criminal Investigative Service. The case was prosecuted by Assistant U.S. Attorney Gordon Zubrod.
Milton Man Federally Charged with Sexual ExploitationRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Brian Edward Kelson, Jr., age 21, of Milton, Pennsylvania was indicted Wednesday by a federal grand jury in Harrisburg charging him with two counts of producing materials involving the sexual exploitation of children and one count of possession of child pornography.
This case is being jointly investigated by the Federal Bureau of Investigation, the Milton Police Department and the Pennsylvania State Police. The case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the mandatory minimum penalty under the federal statute is 15 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.
Harrisburg Man Federally Charged with Firearms Offenses as Part of On-Going Partnership to Respond to Violent Crime in HarrisburgRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Carl Murphy, Jr., age 32, of Harrisburg, Pennsylvania was indicted Wednesday by a federal grand jury in Harrisburg charging him with two counts of possession of a firearm by a convicted felon.
According to United States Attorney Peter J. Smith, the charges are the result of an on-going partnership with the Dauphin County District Attorney’s Office that was announced in August 2012 to help respond to a surge of violent crime within the city. The charges against Murphy are a result of allegations that on both March 7, 2012, and October 13, 2012 Murphy possessed a firearm in Harrisburg, Pennsylvania after having previously been convicted of a felony crime. The firearms were both recovered by the Harrisburg Police Bureau.
This case is being jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Police Bureau. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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.
Shiremanstown Mother of Three Charged with Passport FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Susan Walmer, age 46, of Shiremanstown, Pennsylvania, was indicted Wednesday and charged with three counts of passport fraud.
According to United States Attorney Peter J. Smith, in December 2007, Walmer submitted three applications for U.S. passports for her children’s behalf. With the applications, Walmer allegedly submitted a forged affidavit from her ex-husband claiming she had his permission to obtain the passports for travel to Canada. While Susan Walmer and the children’s father shared physical custody, legal custody was provided to the father. The father did not provide permission for the children to obtain passports or leave the United States.
This case is being investigated by the United States Department of State, Diplomatic Security Service 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 particular 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.
Millions Forfeited from Online Prostitution Enterprise Distributed to State and Local Law EnforcementRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that more than $3 million has been presented to the Pennsylvania State Police and the Lycoming County District Attorney’s Office as their share of a forfeiture of $4.9 million in a federal criminal case.
According to United States Attorney Peter J. Smith, during the past week the U.S. Department of Justice has begun distributing $3.2 million to the Pennsylvania State Police and $49,000 to the Lycoming County District Attorney’s Office for their contributions to the investigation and prosecution of R.S. Duffy, Inc. and National A-1 Advertising, Inc.
In November 2011, the U.S. Attorney’s Office in Harrisburg charged Philadelphia-based corporations, R.S. Duffy, Inc. and National A-1 Advertising, Inc. with operating an internet enterprise called Escorts.com which facilitated interstate prostitution activities in violation of federal law. The corporate defendants received subscription fees and payments in the form of money orders, checks, and credit card credits, and wire transfers from users of Escorts.com throughout the nation.
Pursuant to a plea agreement reached with the Government, National A-1 Advertising and R.S. Duffy pleaded guilty to a money laundering conspiracy charge. Under the terms of the plea agreement, the defendants agreed to the criminal forfeiture of $4.9 million in cash derived from the unlawful activity, as well as forfeiture of the domain name, Escorts.com, all of which represented property used to facilitate the commission of the offenses. A major part of the investigation was conducted with the Pennsylvania State Police.
The case was before U.S. District Court Judge Christopher C. Conner.
The $4.9 million forfeited in the R.S. Duffy, Inc. and National A-1 Advertising, Inc. case was distributed as part of the Department of Justice Asset Forfeiture Program. The Program is a nationwide law enforcement program administered by the Department of Justice, the primary goals of which are (1) to punish and deter criminal activity by depriving criminals of property used or acquired through illegal activities and (2) to enhance cooperation among federal, state and local law enforcement agencies through the equitable sharing of the assets recovered. Any law enforcement agency that directly participates in an investigation that results in a federal forfeiture may request an equitable share of the net proceeds. Sharing requests are reviewed and approved by the Department of Justice in Washington based on a consideration of the extent of participation of the requesting agency in the particular case.
U.S. Attorney Smith noted that the Pennsylvania State Police are the frontline as well as the backbone of law enforcement throughout the state and particularly in the 33 counties that comprise the federal middle district. “The state police are true partners with federal law enforcement. We appreciate their help and diligent efforts on behalf of the citizens of Pennsylvania.”
The case against R. S Duffy, Inc. and National A-1 Advertising, Inc. that led to the forfeiture to the United States of these assets was handled by Assistant U.S. Attorney George J. Rocktashel. Assistant U.S. Attorney and Chief of the Office’s Victim Rights and Asset Recovery Unit James T. Clancy and Assistant U.S. Attorney Amy C. Phillips handled the forfeiture.
Mexican Citizen Residing in Dauphin County IndictedRead the Press Release
For Document Fraud
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 a citizen of Mexico has been charged with Fraud and Misuse of Documents.
According to United States Attorney Peter J. Smith, Marcos Martinez-Munoz, age 37, 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 Wednesday.
The indictment alleges that on November 25, 2012, Martinez-Munoz did knowingly possess, use, or attempt to use a fraudulent permanent resident card in Dauphin County, Pennsylvania.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement and Homeland Security Investigations. It is being prosecuted by Special Assistant United States Attorney Alice Song Hartye.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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.
Mexican Citizen Indicted for Illegal ReentryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigration and Customs Enforcement, announced today that a 26- year-old native and citizen of Mexico has been charged with Illegal Reentry into the United States.
According to United States Attorney Peter J. Smith, Jose Alfredo Garcia-Zamudio, age 26, 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 Wednesday.
The indictment alleges that Garcia-Zamudio, an alien who was convicted on July 16, 2010, of Endangering the Welfare of a Child, was previously arrested and deported from the United States on May 27, 2011, did knowingly and unlawfully reenter the United States. He was located by federal immigration agents in Dauphin County, Pennsylvania.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. It is being prosecuted by Special Assistant United States Attorney Alice Song Hartye.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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.
Monroeton Woman Sentenced for Embezzling Money from Martha Lloyd Community ServicesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Joanne Beers, age 58, of Monroeton, Pennsylvania, was sentenced Monday by U.S. District Court Judge Christopher C. Conner to a two-year term of imprisonment and three years of supervised release. Beers was also ordered to pay $96,185.68 in restitution.
According to United States Attorney Peter J. Smith, Beers worked as a program specialist supervisor for the Martha Lloyd Community Services Facility, a non-profit health care provider in Troy, Pennsylvania. Martha Lloyd provides facilities, programs and services in Bradford and Tioga Counties for persons with intellectual and developmental disabilities.
The facility receives funding from the U.S. Department of Health and Human Services and the Commonwealth of Pennsylvania through the Medicaid program. Beers was responsible for overseeing a program which housed 18 female residents.
Without the knowledge, authorization, and approval of her employer, Beers used four Martha Lloyd credit card accounts to purchase merchandise and services for her personal use and benefit, including hair care services at a salon, video game equipment, clothing, gift cards, food, and household goods for herself and her family, and furniture, a television, and DVD player for her residence.
Beers stole cash from Martha Lloyd accounts and submitted false purchase orders and receipts to support other petty cash and credit card account expenditures used for her personal expenses.
Beers also transacted paychecks for developmentally and intellectually disabled residents of the facility under her supervision and used the cash to purchase gasoline, cigarettes, and other items for her own personal use and benefit.
Beers was charged and pleaded guilty in August 2012.
The case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney George J. Rocktashel.
Ukranian National Sentenced to Prison for Access Device FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a 29-year-old Ukranian national who resided in the Poconos at the time of his arrest was sentenced Monday to serve 27 months in prison for access device fraud by Senior U.S. District Court Judge James M. Munley.
According to United States Attorney Peter J. Smith, Igor Shaposhnikov, age 29, who resided in Stroudsburg, Pennsylvania, at the time of the offense, previously pleaded guilty to possessing approximately 140 counterfeit credit cards with the intent to defraud. Shaposhnikov committed the offense in June 2008.
Shaposhnikov was indicted by a federal grand jury on June 17, 2008, as a result of an investigation by the Federal Bureau of Investigation.
Judge Munley ordered that the 27-month prison sentence in this case run consecutive to a 102-month prison sentence imposed on Shaposhnikov in the Southern District of Florida for similar conduct committed by the defendant after he fled the Middle District of Pennsylvania while awaiting sentencing in this case.
Judge Munley also ordered that Shaposhnikov be placed on three years of supervised release after serving his prison sentence, pay restitution of $33,814.09, pay a $100 special assessment, and forfeit to the United States $8,297 in cash, a Samsung Plasma Television, two Sony Handycams, and a 2006 Chrysler vehicle. Shaposhnikov also faces possible deportation as a result of his conviction.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Schuykill County Man Indicted for Producing and Possessing Child PornographyRead 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 today charging a Schuykill County man with the production and possession of child pornography.
According to United States Attorney Peter J. Smith, Robert Lee Raeder, Jr., age 45, of Tamaqua, Schuykill County, was charged by the grand jury for allegedly committing the offenses at various times between January 2001 through December 2012. It is alleged that Raeder produced videos and other images and then maintained them on his computer.
The charges against Raeder stem from an investigation by the Pennsylvania State Police Computer Crimes Unit and United States Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Raeder is currently in custody on related state charges.
U.S. Attorney Smith requests that anyone with information related to this matter please contact the U.S. Department of Homeland Security Tipline at 1-866-347-2423.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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 particular case, the mandatory minimum penalty under the federal statute is 15 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Luzerne County Man Indicted on Federal Child Pornography ChargesRead 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 today charging a Luzerne County man with the receipt, distribution and possession of child pornography.
According to United States Attorney Peter J. Smith, Jeremy Joseph Box, age 29, of Hazleton City, Luzerne County, was charged by the grand jury for allegedly committing the offenses between 2011 and 2013.
The charges against Box stem from an investigation by the Pennsylvania State Police Computer Crimes Unit and U.S. Immigration and Customs Enforcements (ICE) Homeland Security Investigations (HSI).U.S. Attorney Smith requests that anyone with information related to this matter please contact the U.S. Department of Homeland Security Tipline at 1-866-347-2423.
Box was taken into custody on December 6, 2012 on related state charges.
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.
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 particular case, the maximum penalty under the federal statute is 30 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Pennsylvania Charter School Operator Charged with Federal Income Tax FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton has handed up a two count Indictment today charging Dennis Bloom, age 58, of Mount Pocono, Pennsylvania, with tax fraud. Specifically, Bloom is charged with one count of tax evasion and one count of filing a false tax return as a result of his alleged failure to include a substantial amount of income in his 2006 federal income tax return. Bloom is the former chief executive officer of the Pocono Mountain Charter School and Pastor of Shawnee Tabernacle Church, both in Mount Pocono.
According to United States Attorney Peter J. Smith, the charges stem from an investigation initiated by the Internal Revenue Service-Criminal Investigations and the U.S. Department of Education, Office of Inspector General. Prosecution is assigned to Assistant United States Attorney Lorna N. Graham.
“The Role of IRS-Criminal Investigation becomes more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel,” said Akeia Conner, Special Agent in Charge of the IRS-Criminal Investigation, Philadelphia Field Office. “As we often see, the victims are not only taxpayers but also the individuals and entities who suffer the financial harm. Be assured that we are serious about investigating these crimes and we will vigorously pursue criminals who steal from the American taxpayer."
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 eight 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.
Chambersburg Area School District Teacher Arrested on Alleged Sexual Exploitation of Minors ChargeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jeffrey Schmutzler, of Fayettesville, Pennsylvania, was arrested today on charges of distribution and receipt of material involving the sexual exploitation of minors alleged in a Criminal Complaint filed in federal court today.
Chambersburg school officials were notified of the arrest.
Schmutzler is scheduled to appear before Chief Magistrate Judge Martin C. Carlson at 4:00pm today in the federal courthouse in Harrisburg.
U.S. Attorney Smith requests that anyone with information related to this matter please contact United States Postal Inspector Michael Corricelli at 717-257-5581.
The case is being investigated by the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s(ICE) Homeland Security Investigations(HSI) and the Pennsylvania State Police. The prosecutor assigned to the case is Assistant United States Attorney Daryl F. Bloom.
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Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.Lancaster Man Sentenced to 121 Months’ Imprisonment for Distribution and Receipt of Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lloyd Hershey Wenger, Jr., age 46, of Lancaster, Pennsylvania was sentenced Tuesday by U.S. District Court Judge Sylvia H. Rambo to a 121-month term of imprisonment, followed by 20 years’ of supervised release. Judge Rambo further ordered that Wenger pay $5,000 in restitution. Wenger must also register as a sex offender.
According to United States Attorney Peter J. Smith, Wenger had contact with an undercover FBI agent and shared numerous image files that depicted children, some as young as infants, engaged in sexually explicit conduct that he possessed. A forensic examination of Wenger’s computer revealed over 1,800 image files and over 500 video files containing child pornography.
Wenger was indicted in February 2012 and pleaded guilty in August 2012.
This case is being brought as part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Daryl F. Bloom.
Indictment Charging Three Luzerne County Residents for Firearms Straw Purchases, Unlawful Possession of Firearms and Cocaine Distribution UnsealedRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that an indictment returned on March 12, 2013 charging three Luzerne County residents with their alleged roles in a conspiracy to make straw purchases of firearms and other firearms charges, including possession of a machine gun and distribution of cocaine was unsealed Monday following their arrest.
According to United States Attorney Peter J. Smith, Jovon Martin, age 31, of Kingston, was charged with conspiracy to make false statements in connection with the purchase of a firearm, prohibited possession of a firearm, possession of a machine gun in furtherance of drug distribution, possession of an illegal weapon (machine gun), possession of an unregistered weapon (machine gun) and possession with intent to deliver cocaine.
Christine Hanahan, age 30, also of Kingston, was charged with unlawful transfer of a firearm to a prohibited possessor. John Teslicko, age 50, of Larksville, was charged with conspiracy to make false statements in connection with the purchase of a firearm, false statements in connection with the purchase of a firearm, unlawful transfer of a firearm to a prohibited possessor and prohibited possession of a firearm. The offenses allegedly occurred between March 2012 and March 2013 in Luzerne County.
The straw purchase of a firearm is the unlawful use by individuals who are unable to purchase a firearm to utilize others who do not have a criminal record to make the purchase in their own name and then transfer the firearm to the prohibited possessor. The investigation also allegedly uncovered cocaine distribution closely related to the straw purchases.Martin, Hanahan and Teslicko were arraigned before Magistrate Judge Thomas Blewitt and Martin was ordered detained pending trial on May 20, 2013.
This case was the result of a joint investigation between the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kingston Police Department.
Prosecution is assigned to Assistant United States Attorney Amy C. Phillips.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, Martin faces a mandatory minimum of 30 years’ imprisonment.
The maximum penalty under the federal statute for Hanahan and Teslicko is 10 years’ imprisonment.
All three face 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.
Mechanicsburg Man Charged with Tax EvasionRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Thomas C. Holloway, age 46, of Mechanicsburg, Pennsylvania, was charged today with attempted income tax evasion for 2008.
A plea agreement was filed at the same time as the Information. In it, Holloway agreed to plead guilty to the offense and pay $80,000 in restitution to the IRS.
According to United States Attorney Peter J. Smith, Holloway previously was employed by Spherion (an IT firm based in Mechanicsburg and formerly known as Intellimark and Technisource) between 2001 and 2009 and embezzled company funds which were not reported on his income tax returns. Holloway previously was charged by local authorities with theft by deception in connection with the embezzlements and was sentenced in 2010 in state court to probation and ordered to pay $125,000 in restitution to Spherion. The current tax charges allege that the tax loss to the IRS was $80,000 for the years 2003-2009.
The case was investigated by the Criminal Investigation Division of the IRS and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentencing following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is five years' imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Indictment Unsealed Following Arrest of Individuals Allegedly Involved in Scam to Distribute Misbranded DrugsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an indictment charging four individuals with allegedly being involved in a scam to distribute misbranded drugs through businesses located in York County and conceal the unlawful profits has been unsealed.
The indictment returned by a Harrisburg grand jury on March 8 was sealed pending the arrest of the defendants.
According to United States Attorney Peter J. Smith, Almuntasser “Alex” Hbaiu, age 34, of Los Angeles, California, was previously charged with criminal conspiracy, delivery of misbranded drugs, receipt of misbranded drugs, and two counts of wire fraud. On March 8, the Grand Jury returned a second superseding indictment that charged Alex Hbaiu with additional offenses of structuring financial transactions and bank fraud.
The new indictment also charged three additional defendants. Ahed Hbaiu, age 32, of Etters, Pennsylvania, is charged with criminal conspiracy, delivery of misbranded drugs in interstate commerce, receipt of misbranded drugs in interstate commerce, structuring financial transactions, bank fraud, and engaging in monetary transactions with criminally derived property worth more than $10,000.Gil Conrad Dizon, age 28, of Los Angeles, California, is charged with criminal conspiracy, delivery of misbranded drugs in interstate commerce, receipt of misbranded drugs in interstate commerce, two counts of wire fraud, and structuring financial transactions. Christopher Mouzon, age 27, of Los Angeles, California, is charged criminal conspiracy, structuring financial transactions and perjury.
The second superseding indictment charges that the four men were involved with various companies that sold drugs including “Mojo Nights,” “Libigrow” and “Blue Diamond” that were marketed as “all-natural” versions of sexual enhancement drugs such as Viagra. In fact, the drugs contained sildenafil citrate, the active ingredient in Viagra, and Tadalafil, the active ingredient in Cialis. Both are prescription drugs approved by the U.S. Food and Drug Administration for the treatment of erectile dysfunction. The misbranded “performance enhancers” products were sold on internet web sites as well as physical locations, including a location in York County.
In addition, according to the second superseding indictment, the four defendants conspired to avoid the requirement that banks report cash transactions of $10,000 or more by “structuring” deposits made into various bank accounts. The conspirators made cash deposits of less than $10,000 in their accounts as well as accounts of family members and associates and then transferred the money to accounts controlled by them, their family members, or associates. Some of the funds “structured” in this fashion were used to pay off the mortgage on a residence at 1806 Meadow Ridge Drive, Hummelstown, Pennsylvania, which was eventually titled to Alex Hbaiu. Other structured funds were used to fund the business operations of Caliber Investments; 1 Stop Sunoco Gas Station and Eclipse Builders, both located in located in Etters, York County.
The second superseding indictment further charges that Ahed Hbaiu committed bank fraud by obtaining a credit card in his mother’s name and using the card to purchase construction equipment for his business, Eclipse Builders. Ahed Hbaiu’s mother filed for bankruptcy after only a few payments were made and the credit card debt was discharged. Ahed Hbaiu and Alex Hbaiu are also charged with obtaining credit cards in the name of an individual who is serving a sentence of life imprisonment in Florida and making false representations on credit card applications.
The charge of engaging in monetary transactions of over $10,000 with money obtained through criminal activity stems from Ahed Hbaiu’s purchase of construction equipment with the money obtained from the bank fraud.
According to the allegations in the second superseding indictment, Christopher Mouzon committed perjury when he testified before the Grand Jury on October 3, 2012.The second superseding indictment also seeks forfeiture of a number of bank accounts and the property at 1806 Meadow Ridge Drive, Hummelstown.
Ahed Hbaiu reportedly left the country last week and Dizon is purportedly in the Philippines. Warrants have been issued for their arrest. Mouzon was arrested Wednesday in California.
The case was investigated by the Internal Revenue Service-Criminal Investigation, the Food and Drug Administration Office of Criminal Investigations, and the Drug Enforcement Administration. It is assigned to Assistant U.S. Attorney Christy H. Fawcett.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Harrisburg Man Convicted on Federal Charges Related to Gun Violence Investigations in CityRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that following a two-day jury trial before U.S. District Court Judge Sylvia H. Rambo, Carlos C. Hill, age 41, was convicted of possession of a firearm by a previously convicted felon. The jury returned a verdict after three hours.
According to United States Attorney Peter J. Smith, Hill and co-defendant Elijah U. Brown, Jr., were indicted in September 2012 following stepped-up federal efforts to partner with Harrisburg police and the Dauphin County District Attorney’s Office to fight violent crime in Harrisburg. Hill and Brown were charged with possession of a firearm by a convicted felon and possession of a stolen firearm.
The charges resulted from Hill brandishing a stolen firearm at a female victim in the 1600 Block of Park Street in Harrisburg on July 13, 2012.
The firearm was subsequently recovered by the Harrisburg Police Bureau.
Hill faces a statutory minimum of 15 years imprisonment. A sentencing date for Hill has not yet been scheduled. Brown is scheduled for trial on April 1, 2013.
The case was investigated by ATF in coordination with the Harrisburg Police Department. Assistant U.S. Attorney Meredith A. Taylor is handled the prosecution.
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 life imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Lebanon City Man Charged Federally with Enticement and Child PornographyRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced the indictment today by a federal grand jury in Harrisburg of Lebanon City man for child pornography offenses.
According to United States Attorney Peter J. Smith, Howard D. Davis, age 57, is charged with allegedly enticing a fourteen-year-old to engage in sexually explicit activity and requesting that these sexual images be sent through the internet. The fourteen-year-old was, in reality, an undercover officer with the Nebraska State Police. A subsequent search warrant executed at Davis’s address uncovered a computer with alleged child pornography which Davis distributed to others over the internet.
The case was investigated by the United States Postal Inspectors in conjunction with the Nebraska State Police and the Pennsylvania Office of Attorney General. Prosecution is assigned to Assistant United States Attorney Michael A. Consiglio.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of 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 life imprisonment for Davis and a term of supervised release following imprisonment and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.Hazleton Woman Charged with Passing Counterfeit MoneyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a criminal Information was filed in U.S. District Court in Scranton today against Cindy Batista, age 23, of Hazleton, Pennsylvania, charging her with passing counterfeit $100 bills.
According to United States Attorney Peter J. Smith, Batista passed $100 bills at various businesses in Luzerne County between February 5, 2013 and February 12, 2013.
The case was investigated by the U.S. Secret Service and is assigned to Assistant U.S. Attorney Lorna N. Graham 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 particular 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.
Pennsylvania Men Wanted in Canada for Alleged Violent Acts Committed at the 2010 G-20 Economic Summit in Toronto ExtraditedRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that two Pennsylvania men wanted in Canada for their alleged violent acts committed at the 2010 G-20 Economic Summit held in Toronto have been extradited to face charges in Canada.
According to United States Attorney Peter J. Smith, pursuant to an extradition treaty between the United States and Canada, Richard Dean Morano, and Kevin Chianella, both of Lackawaxen, Pennsylvania, were arrested.
Morano was arrested, without incident, by the United States Marshals Service for the Middle District of Pennsylvania on February 21, 2013. Chianella surrendered to the United States Marshals Service on February 28.According to Canadian court documents, Morano, a United States citizen, is alleged to have committed riotous acts at the G-20 Economic Summit on June 26, 2010. Canadian authorities have charged Morano with Mischief over $5,000(6 counts); Intimidation of Justice System participant; Obstructing a peace officer; Assaulting a peace officer with a weapon; Mischief endangering life(3 counts); Disguise with intent to commit an indictable offense and Theft. A warrant for his arrest was issued by the City of Toronto, Province of Ontario on March 4, 2011.
According to Canadian court documents, Chianella, a United States citizen, is alleged to have committed riotous acts at the G-20 Economic Summit on June 26, 2010. Canadian authorities have charged Chianella with Mischief over $5,000(21 counts); Attempted mischief(3 counts); Intimidation of Justice System participant(2 counts); Obstructing a peace officer; Assaulting a peace officer with a weapon; Assault with a weapon; Assault; Mischief endangering life(12 counts); Attempt mischief endangering life(2 counts); Arson; Break and enter with intent to commit an indictable offence; Disguise with intent to commit an indictable offence; and Theft(3 counts). A warrant for his arrest was issued by the City of Toronto, Province of Ontario on March 4, 2011.
Both men waived their extradition rights and were turned over to Canadian authorities Tuesday.
Assistant U.S. Attorney William A. Behe in the Harrisburg office of the U.S. Attorney handled the filing of the extradition complaints and compliance with the extradition treaty. Assistant U.S. Attorney Francis P. Sempa in the Scranton office of the U.S. Attorney handled the court proceedings before Chief U.S. Magistrate Judge Martin C. Carlson and U.S. Magistrate Judge Thomas M. Blewitt.
Operator of Temporary Employment Agencies with Contracted Services in Scranton and Wilkes-Barre SentencedRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ethan Nguyen, age 34, of Phoenixville, Pennsylvania was sentenced today by U.S. District Court Judge Edwin M. Kosik to a 12 month plus one-day term of imprisonment, two years of supervised release and a $300 fine. Judge Kosik further ordered that Nguyen pay $45,128 in restitution to the Pennsylvania Department of Unemployment Insurance.
According to United States Attorney Peter J. Smith, beginning in 2007 Ethan Nguyen operated Four Seasons Services, a temporary employment agency with offices in Philadelphia, Pennsylvania, and contracted with businesses in the Scranton and Wilkes-Barre area to provide day labor employees.
Together with co-defendants, Andri Gunawan and Eleni Nguyen, the employment agency contracted with various third party businesses to provide temporary, day labor employees. The co-defendants would fulfill these contracts by hiring illegal aliens and paying the illegal aliens cash “under the table,” failing to pay various federal, state and local taxes, fees or compensation insurance. In this way, the temporary employment agency was able to greatly increase its profits for providing such temporary labor.
Four Seasons Services was later changed to business names Direct Staffing Services(DSS), Express Staffing Services(ESS) and First Choice Staffing(FCS).
Ethan Nguyen, Andri Gunawan and Eleni Nguyen were charged in separate criminal Informations. All three pleaded guilty. Eleni Nguyen is scheduled for sentencing on March 19, 2013. Gunawan is scheduled for sentencing on April 4, 2013.
The joint investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), United States Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, the Pennsylvania State Police, and United States Department of Health and Human Services. The case is assigned to Assistant United States Attorney Todd K. Hinkley.
Luzerne County Resident Charged with Possession OfRead the Press Release
Ammunition By A Convicted Felon And With Being A Fugitive From Justice
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a criminal Information has been filed against Stanley Backus, age 33, of Wilkes-Barre, Pennsylvania charging him with possession of a ammunition by a prohibited person.
According to United States Attorney Peter J. Smith, Backus was previously convicted of four prior felonies and was wanted by Philadelphia County for a probation violation and a Meghan’s law registry violation. The offenses included the criminal Information filed Wednesday allegedly occurred in July 2011 in Wilkes-Barre, Luzerne County.
This case was the result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Wilkes-Barre and Kingston Police Departments.
Prosecution is assigned to Assistant United States Attorney Amy C. Phillips.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 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Intermediate Unit Executive Director Fred R. Rosetti Sentenced to 33 Months’ ImprisonmentRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that the former Executive Director of the Northeastern Intermediate Unit #19 was sentenced today by U.S. District Court Judge Robert D. Mariani to 33 months’ imprisonment and a $30,000 fine for fraud and theft.
Judge Mariani ordered Rosetti to make restitution to the NEIU in the amount of $137,944.13 immediately.
During the three-hour sentencing hearing today, the court heard testimony concerning three individuals who told the FBI and investigators from the U.S. Department of Education - Office of Inspector General that Rosetti had attempted to influence the investigation in conversations that he had with them while the investigation was underway.
The court also heard testimony from two officials from the NEIU, Dr. Clarence Lamanna, the current Executive Director and Tom Rink, the Fiscal Director. Both men testified about the fiscal loss to the Unit caused by Rosetti’s activities and the loss of the Unit’s reputation.
U.S. Attorney Smith stated that, “The cooperation and support of the investigation provided by the NEIU staff members and the current officials, and especially the statements made today, showed that the vast majority of the staff of the NEIU are dedicated professionals and that Rosetti’s admitted abuse of the public trust was something that most of the staff of the NEIU had never approved or accepted.”
The indictment returned in February 2012 alleged that between July 1, 1998 through June 30, 2010, Rosetti, age 64, Archbald, engaged in a scheme to defraud the Northeastern Intermediate Unit #19 (NEIU). The indictment charged that during his tenure as Executive Director, Rosetti fraudulently, improperly, and unlawfully converted funds and property of the NEIU for his personal benefit and for the personal benefit of his family.
According to the summary of the evidence presented in court and in filings by Assistant U.S. Attorney Michelle Olshefski, Rosetti directed and ordered NEIU employees to perform home maintenance services at his personal residence, personal secretarial services, personal shopping for Rosetti and his family, and to assist in the planning and preparation of Rosetti family events.
Rosetti created false travel vouchers and directed and ordered NEIU employees to create false travel vouchers for the benefit of Rosetti.
Rosetti also intentionally failed to document his time-off in the form of used vacation, sick and personal days which enabled him to include all of the undocumented time-off in an accumulation of days for which he received a cash payout at the time of his retirement.
Intermediate Units provide services and support for special education in school districts throughout the State. The NEIU supports 20 school districts in northeastern Pennsylvania.
Rosetti pled guilty on February 7, 2013, after entering into a plea agreement with the U.S. Attorney’s Office.
In February 2013, Judge Mariani rejected Rosetti’s binding plea agreement in which Rosetti would be sentenced to a 12-18 month range prison term. At that point, Rosetti was entitled to withdraw the plea. However, he chose not to do so.
As a result of his activities, Rosetti has lost a substantial portion of his pension benefits as a result of an action taken last fall by the Pennsylvania School Employee Retirement System after Rosetti’s guilty plea.U.S. Attorney Smith noted that the discovery and exposure of Rosetti’s scheme was the result of a prompt and thorough investigation by the Pennsylvania Department of the Auditor General’s Office of Special Investigations.
“This case is an example of how the investigating and auditing process works well when there is cooperation among government agencies,” said PA Auditor General Eugene DePasquale. “I commend the professional investigators and auditors on our staff for their diligence and hard work.”
A joint investigation by the Federal Bureau of Investigation (FBI), and the United States Department of Education - Office of Inspector General then followed. Prosecution of the case was assigned to Assistant United States Attorney Michelle Olshefski.Judge Mariani ordered Rosetti to report to the Bureau of Prisons on April 4, 2013.
Podiatrist Sentenced to Prison for Health Care FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that podiatrist who practiced in Harrisburg and Elizabethtown was sentenced today to 16 months in federal prison for committing health care fraud.
United States Attorney Peter J. Smith said that Dr. Michael C. Karason, 44, who now resides in Lincoln, California, previously pleaded guilty to engaging in a scheme to defraud health care benefits programs. At today’s hearing Senior District Court Judge Sylvia H. Rambo also directed that Karason pay a total of $118,072.29 in restitution to Medicare, Capital Blue Cross and Highmark and that he serve a three-year term of supervised release following his prison sentence.
According to the charges and a summary of facts presented by Assistant U.S. Attorney Christy Fawcett, Karason maintained two offices in the Harrisburg area and an office in Elizabethtown as well as two offices in the Los Angeles, California, area. He engaged in a pattern of billing health insurers for services in both Pennsylvania and California that were supposedly provided in both locations at the same time. Investigators obtained travel and financial documents that established Karason was in California during time periods when he billed for services in his central Pennsylvania offices. Some of the services billed in this manner were not provided at all; others were provided by an unlicensed office manager not authorized to perform such services.
This case was investigated by the Office of Inspector General, U.S. Department of Health and Human Services.
Kennel Operators Plead Guilty to Conspiracy and Mail Fraud in Dog SalesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Floyd and Susan Martin, of Shippensburg, Pennsylvania, d/b/a Chestnut Grove Kennel, entered guilty pleas today before U.S. District Court Judge John E. Jones, III, in Harrisburg.
Pursuant to the terms of written plea agreements, Floyd Martin entered a plea of guilty to one count of mail fraud. Susan Martin entered a plea of guilty to one count of conspiracy. The plea agreements also specify that Floyd and Susan Martin are jointly and severally liable for restitution in the amount of $300,000.
The charges stem from an investigation initiated in February 2009 by the Internal Revenue Service, U.S. Department of Agriculture-Office of Inspector General, Animal & Plant Health Inspection Service, and Animal Care. According to United States Attorney Peter J. Smith, the Martins were charged with the unlawful procurement of hundreds of random sourced dogs by unnamed co-conspirators, and the subsequent resale of those dogs to medical research facilities by Floyd and Susan Martin, d/b/a Chestnut Grove Kennel.
The indictment alleged that the defendants conspired to circumvent federal regulations, which place limitations on the number of allowable sales of dogs, by stealing the identities of multiple individuals and falsifying federal documents.
U.S. Attorney Smith said that activities such as those alleged in the indictment will be investigated and prosecuted by his office: “This kind of alleged conduct constitutes a cruel fraud on dog owners and mistreatment of animals as well as showing a flagrant disregard for the U. S. Department of Agriculture’s program to ensure that such animals are treated properly and safely.”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. A sentencing date has not yet been scheduled.
In this particular case, the maximum penalty under the federal statute is 20 years imprisonment for mail fraud and 5 years imprisonment for conspiracy, 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.
Court Upholds Revocation of Federal Firearms License of Owner of Taylor’s Trading Post, Biglerville, PennsylvaniaRead the Press Release
Peter J. Smith, United States Attorney for the Middle District of Pennsylvania and Donald Robinson, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Philadelphia Field Division jointly announced today that U.S. Middle District Court Judge John E. Jones, III, has adopted the revocation of the Federal Firearms License (FFL) of Scott W. Taylor, d/b/a Taylor’s Trading Post, located in Biglerville, Pennsylvania.
In early 2010, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted a compliance inspection of Taylor’s business, which was operated out of his home in Biglerville, Adams County. ATF discovered that over a three-year period of time, Taylor had committed more than 10,000 violations of the Gun Control Act, which requires firearm dealers to keep detailed and timely records of the purchase and sale of firearms. Law enforcement relies on these records to apprehend criminals who use firearms to commit crimes and to ensure that firearms are not being sold to persons not authorized to possess them.
Despite buying and selling thousands of guns over that three-year period, Taylor failed to record the purchase of 5,715 firearms, the sale of 2,856 firearms, and keep records of the disposition of 1,618 additional firearms. About 160 of the firearms remain unaccounted for. Taylor also admitted to possessing a firearm with an obliterated serial number, which he knew was illegal and failing to report it to law enforcement.
As a result, in November 2011, ATF revoked Taylor’s Federal Firearms License. Taylor challenged this administrative action claiming his three-year failure to comply with the record requirements had not been willful for a variety of reasons, including that he had been ill for a period of time, the loss of a co-worker, and the crash of a computer system.
Judge Jones adopted findings resulting from a hearing before Chief Magistrate Judge Martin C. Carlson in which the violations were determined to be willful because Taylor admitted he knew the law required him to keep the records, he had kept the records in the past, and then failed to keep the records for three years while he continued to buy and sell thousands of guns each year.
As a result of Judge Jones’ ruling, Taylor will be no longer be able to engage in the business of dealing in firearms. ATF will establish terms to facilitate Taylor’s liquidation of his firearms inventory in a specified time period.
This case was handled by Assistant United States Attorney Kate L. Mershimer of the Civil Division of the U.S. Attorney’s Office and ATF Associate Chief Counsel Jeffrey A. Cohen and ATF Division Counsel J. Kevin White.
Luzerne County Man 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 charges against Frank Suriano, age 44, of Pittston, Pennsylvania, with conspiring to distribution of more than 500 grams of cocaine hydrochloride, and with distributing cocaine on numerous occasions.
According to United States Attorney Peter J. Smith, the Indictment marks a continuation of an investigated into a Pittston area drug ring by special agents of the Federal Bureau of Investigation, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office. Prosecution has been 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 60 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 Middle Smithfield Township Supervisor Robert SpanoRead the Press Release
Enters Guilty Plea To Charge Of Making False Statements In Connection With A Health Care Matter
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a former Supervisor in Middle Smithfield Township, Monroe County, pleaded guilty today before United States Magistrate Judge Thomas M. Blewitt to the charge of making false statements in connection with health care benefits.
According to United States Attorney Peter J, Smith, Robert Spano, age 63, admitted to violating a federal statute prohibiting the making of false statements in connection with a health care matter.
Spano was previously indicted by a grand jury in November 2011. The indictment alleged that Spano, while he was a Supervisor and employee of Middle Smithfield Township, participated in the township’s group health benefit plan administered by Blue Cross of Northeastern Pennsylvania and in the township’s dental care benefits plan administered by United Concordia.
The indictment charged that Spano completed health insurance and dental insurance enrollment forms in November of 2007 in which he listed his girlfriend, referred to in the indictment as “C.B.,” as his spouse, and as having the last name “Spano,” when in fact her last name was not “Spano,” and she was not his spouse. The indictment stated that Robert Spano was still legally married to another person and had filed for divorce from his wife in January 2011.
As a result of Spano’s misrepresentations, Middle Smithfield Township, Blue Cross of Northeastern Pennsylvania, and United Concordia incurred expenses totaling approximately
$24,488 for medical and dental services provided to C.B. and for higher health insurance premiums between 2007 and 2010.The case was investigated by the Federal Bureau of Investigation and the Northeastern Pennsylvania Insurance Fraud Task Force.
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 five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the federal sentencing guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
A sentencing date has not been scheduled.
Texas Firm and Field Operations Supervisor Agree to Plead Guilty to Involvement in the Harboring and Transporting of 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 announced that GPX/GPX, USA, a seismic surveying company based in Sealy, Texas, and its field operations supervisor, Douglas C. Wiggill, have agreed to plead guilty to federal charges involving harboring and transporting 19 illegal aliens for a project in the Williamsport, PA area.
GPX has agreed to plead guilty to conspiracy to harbor illegal aliens. The company has agreed to forfeit $250,000 and pay a $25,000 fine. Wiggill, age 43, a Canadian citizen residing in Ft. Worth, Texas, has agreed to plead guilty to a misdemeanor violation of aiding and abetting the improper entry of aliens to the United States.
As part of the plea agreement, GPX agreed to implement a corporate compliance program for confirming the employment eligibility and identity of all current and prospective employees.
Both plea agreements are subject to the approval of the Court. A court date has not yet been scheduled. The case is assigned to U.S. District Court Chief Judge Yvette Kane.
According to United States Attorney Peter J. Smith, in May 2012, a 20-count indictment was filed charging GPX/GPX, USA and Wiggill with harboring and transporting illegal aliens, and conspiracy to commit those offenses. GPX is engaged in the business of providing seismic and surface mapping surveys for the oil and gas industry.
The indictment 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 U.S. Department 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.
The case was investigated by Homeland Security Investigations and the Federal Bureau of Investigation, with assistance from the Williamsport Bureau of Police. Prosecution of this matter is assigned to Assistant United States Attorney George J. Rocktashel.
Statement Concerning Death of Correctional Officer Eric WilliamsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania issued the following statement concerning the death of Correctional Officer Eric Williams at the United States Penitentiary, Canaan, Pennsylvania:
The staff at the United States Attorney’s Office for the Middle District of Pennsylvania extends its condolences to the family of Officer Williams, his coworkers and staff of the U.S. Bureau of Prisons facility at Canaan, Pennsylvania. This matter is under investigation by the FBI, with the cooperation and assistance of the Bureau of Prisons. Attorneys from the U.S. Attorney’s Office have been assigned to the matter.
We have no further comment at this time.
Harrisburg Ambulance Company Owner Pleads Guilty to Submitting False Statement to MedicareRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the owner of a Harrisburg-based ambulance company has pleaded guilty to a False Statement charge related to Medicare fraud.
Serge Sivchuk, age 27, the owner of Advantage Medical Transport, Inc, headquartered at 733 Fire House Lane, Harrisburg, pleaded guilty before U.S. District Court Judge Christopher C. Conner today to one count of False Statements in Health Care Matters. The charge is punishable by up to five years imprisonment and a $1,000,000 fine.
According to U.S. Attorney Peter J. Smith, Sivchuk was indicted in January 2011 on multiple False Statement and Medicare Fraud charges. The Indictment alleged that between January 2009 and June 2011 Sivchuk perpetrated a scheme to defraud Medicare by submitting hundreds of claims for the nonemergency transport of Medicare beneficiaries to and from dialysis treatment centers. The Indictment alleged the claims were fraudulent because the patients were ambulatory and the ambulance transports were not medically necessary.
The Indictment focused on an August 2010 audit conducted by Medicare and a June 2, 2011 search of Advantage’s business premises by federal law enforcement officers. In response to the audit Sivchuk provided Medicare with dozens of ambulance Trip Sheets, which are prepared by Emergency Medical Technicians (EMTs) at the time of each ambulance transport. The Trip Sheets contain a narrative section that describes the patient’s physical condition and ability to ambulate. The Trip Sheets serve as the primary support document for each ambulance transport claim for which Medicare was billed.
The June 2, 2011 search by the FBI and investigators from the Health and Human Services (HHS) Inspector General’s Office revealed that Sivchuk did not submit the original trip sheets to the auditors but instead submitted copies of other trip sheets that had been re-written and forged to conceal the fact the beneficiaries were able to walk and stand. During his court appearance before Judge Conner today, Sivchuk admitted he directed a subordinate to re-write and forge the signatures of two EMTs on a Trip Sheet pertaining to the ambulance transport of a dialysis treatment beneficiary on August 19, 2010.
Medicare paid Advantage approximately $166 for each leg of a transport to and from a dialysis treatment center, plus $5.49 per mile. Many dialysis patients underwent 3 treatments per week. Thus, one week’s transport of just one dialysis patient would result in Advantage being paid by Medicare more than $1,000.Under the terms of the plea agreement, Judge Conner will determine the overall loss to Medicare. During the guilty plea proceeding Assistant U.S. Attorney Kim Douglas Daniel told the Court that the government intends to show during the loss hearing that the total loss to Medicare as the result of the fraud scheme was approximately $740,000. Daniel also noted that at the time the investigators executed the June 2, 2011 search warrant, the U.S. Attorney’s Office filed a civil action in federal court that froze more than $936,000 in bank accounts controlled by Advantage and Sivchuk.
The case is part of a priority program within the U.S. Department of Justice and the U.S. Attorney’s Office focusing on Health Care Fraud. Anyone with information concerning suspected health care fraud should contact the FBI at 717-232-8686.
Two Williamsport Residents Charged with Conspiracy to Submit False Income Tax ReturnsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that charges have been filed against Cheryl Cobia and Sharieff Wilkins, both of Williamsport, Pennsylvania.
According to United States Attorney Peter J. Smith, Cobia, age 27, is charged with conspiracy to file false income tax returns claiming false refunds between 2009 and 2011. It is alleged she attempted to receive refunds totaling more than $1,000,000. She is also charged with making false statements in applications for food stamp and medical assistance benefits.
Wilkins, age 35, is charged with conspiracy to submit false claims to the United States government. The charge alleges he submitted multiple false income tax returns for himself and others for tax years 2009-2011 and claimed refunds to which he was not entitled.
The investigations were conducted by the Internal Revenue Service, Criminal Investigation Division and the Office of Inspector General Department of Health and Human Services. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the cases.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In these particular cases, the maximum penalty under the federal statute for both defendants is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
* * * *Former U.S. Corrections Officer Pleads Guilty to Theft of Government PropertyRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that a former correctional officer at the United States Penitentiary-Lewisburg pleaded guilty today to a charge of theft of government property in federal court in Williamsport before U.S. District Court Judge Christopher C. Conner.
According to United States Attorney Peter J. Smith, a criminal Information was filed in January 2013 charging Fred Hagenbuch, age 52, of Danville, Pennsylvania, with theft of government property. The property stolen was from the Federal Correctional Complex at Allenwood and included electrical conduit, fence post, and mesh fencing valued at approximately $1,545. At the time of the theft in December 2010, Hagenbuch was employed as a Senior Officer Specialist at the Lewisburg Penitentiary.
This case was investigated by the U.S. Department of Justice's Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorney William Simmers.
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 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.
New York Man Indicted on Federal Charges Related to 10 Central Pennsylvania Fast Food Restaurant RobberiesRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Maurice Lebron Davis, age 39, of Brooklyn, New York, was indicted today by a federal grand jury in Harrisburg. The indictment charges Davis with 10 counts of Interference with Commerce by Robbery.
According to United States Attorney Peter J. Smith, the charges against Davis are a result of allegations that Davis, and others, broke into and robbed or attempted to rob 10 fast food restaurants in Cumberland, Dauphin and York counties between December 2011 and February 2012. The restaurants include:
-Chick-fil-A, 6416 Carlisle Pike, Mechanicsburg, PA;
-Wendy’s, 3465 Simpson Ferry Road, Camp Hill, PA;
-Wendy’s, 427 N. 21st Street, Camp Hill, PA;
-Burger King, 3253 Paxton Street, Harrisburg, PA;
-Wendy’s, 2 Old Mill Road, Dillsburg, PA;
-Wendy’s, 71 S. Conestoga Drive, Shippensburg, PA;
-Burger King, 2000 N. Cameron Street, Harrisburg, PA;
-Wendy’s, 331 S. Hanover Street, Carlisle, PA;
-McDonald’s, 1176 Harrisburg Pike, Carlisle, PA; and
-Arby’s, 240 Cumberland Parkway, Mechanicsburg, PADavis was arrested by Upper Allen Township Police on February 24, 2012.
These cases were investigated by the Federal Bureau of Investigation, the Pennsylvania State Police and the police departments of Upper Allen Township, Middlesex Township, Harrisburg, Carroll Township, Swatara Township, Lower Allen Township and Silver Spring Township. The case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular 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 York City Man Pleads Guilty to Federal Counterfeiting ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a New York City man pleaded guilty Tuesday before Senior United States District Judge A. Richard Caputo to the charge of conspiracy to pass counterfeit United States currency.
According to United States Attorney Peter J. Smith, John Roldan, age 48, of Queens, New York, admitted to participating in a conspiracy to pass counterfeit United States currency in the Monroe County area. Roldan and another individual, Maribel Vasquez, age 46, also of Queens, New York, were arrested after an incident in April 2011 in which Roldan and Vasquez each used a counterfeit $100 bill to purchase merchandise at the Target store located in Stroudsburg, Monroe County. Officers from the Stroud Regional Police Department later conducted a traffic stop of the vehicle in which Roldan and Vazquez were traveling and seized approximately $7,000 in counterfeit United States currency.
The case was investigated by the Stroud Regional Police Department, the United States Secret Service, and Target store security personnel.
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 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.
Camp Hill Marijuana Trafficker ChargedRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced that a federal grand jury in Harrisburg returned an indictment today charging a Camp Hill marijuana trafficker.
According to United States Attorney Peter J. Smith, Andrew Angle, age 25, is charged with conspiracy to distribute marijuana and money laundering. The Government is also seeking the forfeiture of approximately $85,000 in drug proceeds seized from a bank account, safe deposit box, and locations affiliated with Angle.
The case was investigated by the Drug Enforcement Administration, Dauphin County Drug Task Force, and the Cumberland County Drug Task Force. Prosecution is assigned to Assistant United States Attorney Michael A. Consiglio.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.In these particular cases, the maximum penalty under the federal statute is five years’ imprisonment for Angle and a term of supervised release following imprisonment and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Nicholson Man Charged with ProducingRead the Press Release
Child Pornography
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 33-year-old Nicholson resident has been charged with producing and attempting to produce child pornography.
According to United States Attorney Peter J. Smith, an Information was filed Wednesday alleging that Alfred Kenvyn persuaded a nine-year-old girl to engage in sexually explicit conduct on a web cam between July and September 2012.
The charge against Kenvyn resulted from an investigation by the Federal Bureau of Investigation and the Blooming Grove, New York Police Department.
In a plea agreement that was also filed in the case, Kenvyn has agreed to plead guilty to the charge and prosecutors have agreed to recommend that Kenvyn be sentenced to 13 years in prison to be followed by supervised release for life.
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 internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
New York Man Sentenced to 14 Years in Prison for Etters Bank RobberyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Willie Elmore, age 43, of Brooklyn, New York was sentenced Wednesday by U.S. District Court Judge Christopher C. Conner to a 168-month (14 years) term of imprisonment for the armed robbery of the Fulton Bank in Etters, Pennsylvania. Judge Conner included an enhancement to the prison sentence for obstruction of justice.
Elmore was further ordered to pay $13,781 in restitution.
According to United States Attorney Peter J. Smith, on September 16, 2011, the Fulton Bank located at 2220 Old Trail Road, Etters, Pennsylvania, Pennsylvania, was robbed at gunpoint and over $13,000 was stolen from the bank.
Elmore, and co-defendant, Tristan Green, of York, Pennsylvania, were both indicted in December 2011 on charges of armed bank robbery and possession of a firearm in furtherance of a crime of violence.
In August 2012, following a four-day trial, Elmore and Green were convicted for the armed robbery of the Fulton Bank.
Green is scheduled to be sentenced on April 1, 2013.
This case was investigated by the Federal Bureau of Investigation, Capital City Safe Streets Task Force; Pennsylvania State Police; York City Police Department; Newberry Township Police Department; Springettsbury Township Police Department; Hellam Township Police Department; Northern York County Regional Police Department and the York County District Attorney’s Office Criminal Investigation Division. The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.Second Carbon County Woman Pleads GuiltyRead the Press Release
To Federal Cocaine Trafficking Charges
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a second woman from Carbon County pleaded guilty today before Senior United States District Judge Edwin M. Kosik to the charge of conspiracy to distribute cocaine.
According to United States Attorney Peter J. Smith, Victoria Ann Argott, age 34, of Lansford, Carbon County, admitted to participating in a conspiracy to distribute crack cocaine and powder cocaine in the Carbon County area between January 2011 and December 2012.
Previously, Bonnie Vosburgh, age 22, of Nesquehoning, Carbon County, entered a guilty plea 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 in Carbon County.
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.
Lackawanna County Attorney Charged with Federal Income Tax FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that today a Grand Jury in Scranton has returned an indictment charging Lackawanna County Attorney Danielle Ross Pietralczyk, age 37, of Jermyn, Pennsylvania with two counts of tax evasion and two counts of filing a false federal income tax return.
According to United States Attorney Peter J. Smith, the indictment alleges that tax returns verified by Ross under penalty of perjury failed to report any amounts of income she received from private paying clients while acting as the sole guardian ad litem for the Lackawanna County Family Court. It is alleged that the only income Ross reported for 2009 and 2010 was her County compensation reported on 1099 Forms which she received as an independent contractor hired by Lackawanna County.
The indictment charges that as the sole guardian ad litem for the Lackawanna County Family Court, Ross was provided with an annual compensation of $38,000. However, pursuant to a contract between Ross and Lackawanna County, Ross was permitted to bill private paying parties above her County compensation at a rate of $50 per hour. Ross allegedly managed and exercised complete control over her private billings and income. That income was allegedly known only to Ross and not Lackawanna County, nor was Lackawanna County required to approve Ross’s private billings.The prosecution is the result of a continuing joint investigation by the United States Internal Revenue Service (IRS), the Federal Bureau of Investigation (FBI), and the Lackawanna County District Attorney’s Office. 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 particular case, the maximum penalty under the federal statute is 16 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 Woman Pleads Guilty to Federal Cocaine Trafficking ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Carbon County woman pleaded guilty today before Senior United States District Judge Edwin M. Kosik to the charge of conspiracy to distribute cocaine.
According to United States Attorney Peter J. Smith, Bonnie Vosburgh, age 22, of Nesquehoning, Carbon County, admitted to participating in a conspiracy to distribute crack cocaine and powder cocaine in the Carbon County area between January 2011 and December 2012.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nesquehoning and Lansford Police Departments in Carbon County.
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.
Harrisburg Man Charged for Failing to Properly Register as A Sex OffenderRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced charges filed Thursday against Calvin L. Green, age 59, of Harrisburg, for failing to properly register in Pennsylvania as a Sex Offender.
According to United States Attorney Peter J. Smith, Green is charged with knowing failure to register under the Sex Offender Registration and Notification Act. Green has a conviction that requires his registration and updates under that law.
The charge stems from an investigation conducted by the United States Marshals Service. The case is being prosecuted by Assistant United States Attorney James T. Clancy.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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.
Luzerne County Man Sentenced to Prison for Federal Heroin Trafficking ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Luzerne County man was sentenced today by Senior United States District Judge Richard P. Conaboy to serve 84 months in prison on the charge of conspiracy to distribute heroin.
According to United States Attorney Peter J. Smith, Alik Jerome Harrington, age 35, of Kingston, previously admitted to participating in a conspiracy to distribute heroin in the Luzerne County area. On April 14, 2011, after making a traffic stop, members of the Kingston Police Department seized over 200 bags of heroin from Harrington’s vehicle. Investigators then obtained a search warrant and obtained an additional quantity of heroin from a residence on Divison Street in Kingston where Harrington was residing.
In addition to the prison term, Senior Judge Conaboy also ordered that Harrington be supervised by a probation officer for three years following his prison sentence.
The investigation was conducted by the Kingston Police Department and the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
Luzerne County Man Sentenced to 12 Years in Prison for AttemptingRead the Press Release
To Produce Child Pornography
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 29-year-old Forty Fort resident was sentenced today to serve 12 years in federal prison by Senior U.S. District Court Judge Edwin M. Kosik for to attempting to produce child pornography.
According to United States Attorney Peter J. Smith, Joshua Campbell, was previously indicted by a federal grand jury in Kansas in June 2012 for persuading a 12-year-old female to take sexually explicit photographs of herself and transmit them to the defendant via computer. This activity occurred during 2008 and 2009.
The charge against Campbell resulted from an investigation by special agents and task force officers of the Federal Bureau of Investigation in Kansas and Scranton, and detectives from the Lackawanna County District Attorney’s Office. The indictment against Campbell originated in Kansas and was later transferred to the Middle District of Pennsylvania for prosecution. Campbell subsequently pleaded guilty to attempting to produce child pornography.
Judge Kosik also ordered that Campbell be placed on supervised release for life following his prison sentence and pay a fine of $500. Campbell must also receive sex offender treatment and comply with sex offender registration and notification requirements.
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 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.
Jury Finds for United States Postal Service in Employment Discrimination CaseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that late on January 30, 2013, a federal jury in Scranton returned a unanimous verdict in favor of the United States Postal Service.
The matter captioned as Gary A. Savidge v. Patrick R. Donahoe, Postmaster General, was tried before the Honorable Robert D. Mariani. The jury deliberated for approximately one hour.
According to United States Attorney Peter J. Smith, Gary Savidge, of Shickshinny, PA, a retired mail processing clerk, brought this employment discrimination suit against the Postal Service, claiming that the Postal Service failed to select him for two custodial positions located in Wilkes-Barre, PA, because of his service-related disabilities. The Postal Service maintained that Mr. Savidge was not selected for the first custodial position because the employee selected for the position had an earlier request to transfer than Mr. Savidge. Additionally, the Postal Service maintained that Mr. Savidge was not selected for the second custodial position because he had unacceptable attendance.
After a three day trial, the jury returned a verdict that the Postal Service did not discriminate against Mr. Savidge.
The Postal Service was represented by Assistant United States Attorney Melissa A. Swauger.
****Scranton Man Pleads Guilty to Online Enticement of MinorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 46-year-old Scranton resident pleaded guilty today before Senior U.S. District Court Judge A. Richard Caputo to attempting to entice a minor to engage in illegal sexual conduct.
According to United States Attorney Peter J. Smith, Lewis John Davies admitted to using a computer to attempt to persuade a minor to engage in sexual acts with him during April-June 2008.
Davies was indicted by a federal grand jury in June 2008, as a result of an investigation by the Federal Bureau of Investigation and the Scranton Police Department.
Under the terms of the plea agreement, if it is accepted by the court, Davies will be sentenced to between 66 months and 78 months in prison, to be followed by five years of supervised release. The agreement also requires Davies to comply with sex offender registration and treatment requirements. Davies also agreed to forfeit to the United States computers and related material used in the commission of the crime.
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 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.
Harrisburg Man Sentenced to 36 Months’ in PrisonRead the Press Release
For Bank Fraud
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Humphrey Holmes was sentenced today by United States District Court Judge Sylvia H. Rambo to a 36-month term of imprisonment and four years of supervised release for bank fraud.
According to United States Attorney Peter J. Smith, from 2010 through September 2011, Holmes, age 28, used fraudulent social security numbers, employment records, and other materials in an effort to obtain loans and cash checks from several Central Pennsylvania banks and credit unions, including, the Pennsylvania State Employees Credit Union, Belco Credit Union, American General Financial Services, Susquehanna Valley Credit Union, Hershey Federal Credit Union, New Cumberland Federal Credit Union and the Patriot Federal Credit Union. Holmes also engaged in a check kiting scheme while attempting to cash a $20,000 check that he fraudulently obtained.
Holmes was indicted in October 2011 and pleaded guilty in August 2012.
The investigation was conducted by the United States Secret Service. The case was prosecuted by Assistant U.S. Attorney Michael A. Consiglio.
Former Employee of Bon-Ton Stores FoundationRead the Press Release
Charged With $1.2 Million Mail Fraud And Money LaunderingThe United States Attorney’s Office for the Middle District of Pennsylvania, announced the indictment of a former employee of the Bon-Ton Stores Foundation for mail fraud and money laundering that robbed the Foundation of more than $1.2 million. Christine S. DeJuliis, age 51, of Felton, PA, was charged in a six-count indictment handed up by the Grand Jury sitting in Harrisburg Wednesday.
According to United States Attorney Peter J. Smith, DeJuliis is charged with five counts of mail fraud and one count of money laundering covering a period from as early as January 2003 until July 2009. The charges stem from an investigation conducted by the U.S. Secret Service and Internal Revenue Service–Criminal Investigation based on information received from the Bon-Ton Stores, Inc.
The investigation revealed that DeJuliis, hired by the Bon-Ton Stores, Inc., in 1999, worked in an administrative capacity for the head of the Bon-Ton Stores Foundation, a charitable organization established by the Bon-Ton Stores, Inc.
DeJuliis’s duties involved much of the day-to-day operation of the Foundation. DeJuliis allegedly created fictitious businesses with bank accounts and then devised a scheme to have the Foundation appear to award grants to the businesses. The grant money was put into the fictitious accounts controlled by DeJuliis and she allegedly caused the money to be taken out of those accounts and placed into her personal accounts. Over the period charged in the Indictment, DeJuliis allegedly defrauded the Foundation of more than $1.2 million.
The Indictment also contains a forfeiture allegation stating the Government’s intent to forfeit at least $1,282,885 traceable to the crime.
Officials at the Bon-Ton Stores, Inc., and the Bon-Ton Stores Foundation were cooperative with the investigation. DeJuliis was fired from the Foundation as soon as her conduct was discovered by the company in July 2009.
The case is being prosecuted by Assistant United States Attorney James T. Clancy.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 20 years’ imprisonment on each mail fraud charge, a term of supervised release following imprisonment, and a fine. The money laundering charge also subjects DeJuliis to a term of imprisonment of up to 20 years and a fine of the greater of $500,000 or twice the value of the property involved in the money laundering transactions. 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.
Bethlehem Man Sentenced to 70 Months’ Imprisonment for Committing Six Bank RobberiesRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Senior United States District Court Judge James M. Munley today sentenced Fawzi Atra, age 43, of Bethlehem, Pennsylvania, to 70 months’ imprisonment for the robbery of six financial institutions in Pennsylvania and New Jersey.
Atra had previously pleaded guilty to all six counts that were contained in a Criminal Information charging the following robberies:
- KNBT BANK, located at 2170 Union Boulevard, Bethlehem,
Pennsylvania, on April 3, 2012;
- PNC BANK, located at 307 West Route 70, Marlton, New Jersey, on April 4, 2012;
- PNC BANK, located at 942 West Street Road, Warminster, Pennsylvania, on April 11, 2012;
- PNC BANK, located at 800 Denow Road, Unit F, Pennington, New Jersey, on April 14, 2012;
- QNB BANK, located at 901 South West End Boulevard, Quakertown, Pennsylvania, on April 17, 2012; and
- ESSA BANK & TRUST, located at 601 Route 940, Mount Pocono, Pennsylvania, on April 19, 2012.A police officer with the Pocono Mountain Regional Police Department arrested Atra shortly after the ESSA BANK & TRUST robbery on April 19, 2012. A search incident to the arrest revealed the presence of the money stolen from the Essa Bank and a pellet gun. Atra has been detained in federal custody since his arrest.
In additional to the 70-month term of imprisonment, Judge Munley also ordered that Atra be placed on supervised release for a period of three years following the service of his sentence. Judge Munley further specified that the supervised release term would be on a non-reporting basis in the event that Atra is deported to Jordan, his country of citizenship, following service of his sentence. In addition, Judge Munley ordered that Atra make restitution of $9,688, representing the total amount of money netted as a result of the six robberies.
The case was investigated by special agents of the Federal Bureau of Investigation, the Pocono Mountain Regional Police Department, the Richland Township, Pennsylvania Police Department, the Bethlehem, Pennsylvania Police Department, the Evesham Township, New Jersey Police Department, the Hopewell, New Jersey Police Department, and the Warminster, Pennsylvania Police Department. The case was prosecuted by Assistant United States Attorney John Gurganus.