Western District of Pennsylvania
Press releases recorded for this federal judicial district.
Pittsburgh Tax Attorney and Owner of Iceoplex Sentenced to Prison for Employment Tax FraudRead the Press Release
WASHINGTON – A Pittsburgh, Pennsylvania man was sentenced to 48 months in prison today in the U.S. District Court for the Western District of Pennsylvania after being convicted of failing to collect, account for and pay over employment taxes following a jury trial in September 2016, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to court documents and the evidence presented at trial, between 2004 and 2015, Steven Lynch, 61, a tax attorney, co-owned and operated the Iceoplex at Southpointe, a recreational sports facility located in Washington County, Pennsylvania. Iceoplex included a fitness center, ice rink, soccer court, restaurant and bar. Lynch controlled the finances for these businesses and was responsible for collecting, accounting for, and paying over tax withheld from employee wages, and timely filing quarterly employment tax returns. The jury found that between 2012 through 2015, Lynch failed to timely pay over to the Internal Revenue Service (IRS) more than $790,000 in taxes withheld from the wages of the employees for these businesses.
“Companies deserve to compete on a level playing field,” said Principal Deputy Assistant Attorney General Ciraolo. “Business owners and operators who choose not to pay over to the United States the taxes that they withheld from their employees’ wages are stealing from the U.S. Treasury and should plan on facing prosecution and incarceration.”
“As the person who controlled the finances on behalf of the different Iceoplex businesses, Steven Lynch, a tax attorney, was entrusted with the significant responsibility to collect and turn over all IRS withholding taxes,” said Special Agent in Charge Akeia Conner of IRS Criminal Investigation (CI). “His failure to pay over the withheld taxes is a violation that IRS Criminal Investigation takes very seriously. Today, justice is served and Mr. Lynch is being held accountable for his criminal actions.”
In addition to the prison term imposed by U.S. District Judge Arthur Schwab, Lynch was ordered to serve three years of supervised release and to pay $793,145 in restitution to the IRS and a $75,000 fine.
Principal Deputy Assistant Attorney General Ciraolo commended the special agents of IRS-CI, who conducted the investigation, and Trial Attorneys Jeffrey Bender and Brittney Campbell of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office in the Western District of Pennsylvania for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Physician Sentenced for Illegally Distributing OxycodoneRead the Press Release
PITTSBURGH - A resident of Pittsburgh, has been sentenced in federal court to 5 years of probation, to include eightmonths of home detention, 250 hours community service and fined $50,000 on his conviction of possession with intent to distribute and distribution of Oxycodone, a Schedule II controlled substance, Acting United States Attorney Soo C. Song announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence yesterday on Dr. Alan Barnett, 69, of Pittsburgh.
According to information presented to the court, Dr. Barnett, a medical doctor, illegally distributed Oxycodone, a controlled substance. On December 1, 2015, Dr. Barnett was interviewed by agents of the Drug Enforcement Administration and Federal Bureau of Investigation and surrendered his Drug Enforcement Administration License.
Assistant United States AttorneyRobert S. Cessar prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Federal Bureau of Investigation and Drug Enforcement Administration for the investigation leading to the successful prosecution of Barnett.
Franklin County Man Admits Guilt in $2M Fraud SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Chambersburg, Pa., pleaded guilty in federal court to charges of wire fraud, Acting United States Attorney Soo C. Song announced today.
Douglas A. Stahl, age 54, of Chambersburg, Pa., pleaded guilty to seven counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the United States presented information to the Court which established that between January 2008 and December 2013, Stahl devised and executed a scheme to fraudulently obtain more than $2 million dollars from various investors.
Judge Gibson scheduled sentencing for April 27, 2017, at 10 a.m. The law provides for a maximum total sentence of 140 years in prison, a fine of $1,750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, and the Pennsylvania State Police conducted the investigation that led to the prosecution of Stahl.
Texas Man Sentenced to 10 Years in Prison for Attempting to Entice a Minor for SexRead the Press Release
PITTSBURGH - A former resident of Arlington, Texas, has been sentenced in federal court to 120 months imprisonment, followed by 10 years of supervised release, on a charge of attempted coercion and enticement of a minor to engage in illegal sexual activity, Acting United States Attorney Soo C. Song announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Ray Wickliffe Howland, 57, of Arlington, Texas.
According to information presented to the court, the court was advised that on or about June 25, 2015, Howland used facilities and means of interstate and foreign commerce, specifically a computer, an iPad, the internet and the telephone, to knowingly attempt to persuade, induce, entice, and coerce a minor to engage in sexual activity.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Song commended the Office of the Pennsylvania Attorney General and the Federal Bureau of Investigation for conducting the investigation leading to the successful prosecution of Howland.
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.
Somerset County Man Charged with Possessing Child PornographyRead the Press Release
JOHNSTOWN, Pa. – A resident of Stoystown, Pa. was indicted today by a federal grand jury in Johnstown on a charge of possession of child pornography, Acting United States Attorney Soo C. Song announced today.
The indictment named Robert G. Landsbach, 35, of Stoystown, Pa., as the sole defendant.
According to the indictment presented to the court, on October 5, 2016, he knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Department of Homeland Security, Child Exploitation, the Pennsylvania Attorney General’s Office, and the Pennsylvania State Police, Somerset, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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 better 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.justice.gov/psc.
Pittsburgh Man Charged with Dealing Heroin and Fentanyl Resulting in Injury or DeathRead the Press Release
PITTSBURGH – Larry Malloy has been indicted by a federal grand jury in Pittsburgh for distributing Schedule I and Schedule II controlled substances, including heroin and fentanyl, resulting in serious bodily injury and death, Acting United States Attorney Soo C. Song announced today.
The indictment charges Malloy, 23, of Pittsburgh, Pa., with committing the following four crimes in Allegheny County between April 27, 2016, and June 2, 2016: (1) possession with intent to distribute and distribution of a Schedule I controlled substance and/or a Schedule II controlled substance on April 27, 2016, resulting in serious bodily injury or death, and (2) possession with intent to distribute and distribution of heroin and/or fentanyl on May 11, 2016, May 18, 2016, and June 2, 2016.
The law provides for a maximum total sentence of at least 20 years and up to life in prison and a fine of up to $4,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Allegheny County Police Department, the Verona Police Department, the Pennsylvania Attorney General’s Office, and the Allegheny County Medical Examiner’s Office conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Judges Sentences South Park Man to 3 Years in Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH - A former resident of Allegheny County, Pennsylvania, was sentenced in federal court to 39 months imprisonment, followed by 10 years of supervised release for the charge of Possession of Material Depicting the Sexual Exploitation of a Minor, Acting United States Attorney Soo C. Song announced today.
United States District Judge Donetta Ambrose imposed the sentence on Kevin O’Connor, 51, of South Park, Pennsylvania.
According to information presented to the court, the court was advised that on or about April 27, 2016, O’Connor knowingly possessed images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of O’Connor.
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.justice.gov/psc.
Johnstown Man Charged with Distributing HeroinRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The indictment named Daniel Culmer, 49, of Johnstown, Pa.
According to the indictment presented to the court, on June 7 and June 8, 2016, Culmer distributed less than 100 grams of heroin.
The law provides for a maximum sentence of 40 years in prison and a fine of $2,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Culmer.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Deported Alien Charged with Illegally Re-entering United StatesRead the Press Release
JOHNSTOWN, Pa. - A citizen of Mexico has been indicted by a federal grand jury in Johnstown on a charge of re-entry of an illegal alien, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Jorge Ceballos-Ponce, 54, of Blair County, Pa.
According to the indictment presented to the court, on Nov. 16, 2016 Ceballos-Ponce, an alien who had been deported from the United States on Apr. 24, 2007, was found in Blair County, Pa. He had unlawfully reentered this Country without receiving permission to do so from the Secretary of the Department of Homeland Security.
The law provides for a maximum total sentence of twenty years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Stephanie L. Haines, is prosecuting this case on behalf of the government.
The Department of Homeland Security/Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Beaver County Residents Charged in Heroin and Fentanyl Trafficking SchemeRead the Press Release
PITTSBURGH – Six Beaver County residents have been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named:
- Samuel McCracken, 28, of New Brighton, Pennsylvania;
- Wayne McCracken, 31, of Ambridge, Pennsylvania;
- Jeffrey Rogers, 34, of Ambridge, Pennsylvania;
- Dorothy McCracken, 58, of Ambridge, Pennsylvania;
- Breanna Perdue, 23, of New Brighton, Pennsylvania; and
- Jazmine Sellers, 27, of Ambridge, Pennsylvania, as defendants.
According to the indictment, from in and around July 2016, and continuing thereafter to in and around December 2016, the defendants conspired with each other, and others both known and unknown, to distribute and possess with intent to distribute heroin and fentanyl.
For Samuel and Wayne McCracken, the law provides for a minimum sentence of a term of imprisonment of ten (10) years, and a maximum total sentence of a term of imprisonment for life and a fine not to exceed $10,000,000, or both. For Jeffrey Rogers, the law provides for a minimum sentence of a term of imprisonment of five (5) years, and a maximum total sentence of a term of imprisonment of not more than forty (40) years and a fine not to exceed $5,000,000, or both. For the remaining defendants, the law provides for a maximum total sentence of a term of imprisonment of not more than twenty (20) years, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Conor Lamb and Katherine A. King are prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the indictment in this case. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Pennsylvania Office of the Attorney General, Ambridge Police Department, New Brighton Police Department, Beaver Police Department, Aliquippa Police Department, Moon Township Police Department, Wilkinsburg Police Department, West Mifflin Police Department, Allegheny County Police Department, Duquesne Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Doctor Sentenced to Probation, Community Service for Illegally Distributing Controlled Substance and Health Care FraudRead the Press Release
PITTSBURGH - A resident of Hermitage, Pennsylvania has been sentenced in federal court to three years’ probation, ordered to pay restitution in the amount of $15,695, a $6,000 fine and to serve 150 hours of community service focused on the amelioration of the opioid epidemic, on his conviction of possession with intent to distribute and distribution of Tramadol, a Schedule IV controlled substance, and health care fraud, Acting United States Attorney Soo C. Song announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Dr. Anthony Rossi, 66, of Hermitage, Pennsylvania.
According to information presented to the court, Rossi, a medical doctor, illegally distributed a controlled substance, Tramadol, for cash. Further, Dr. Rossi submitted false claims to Medicaid for health care services, including injections, which were never provided.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Federal Bureau of Investigation, the Drug Enforcement Administration and the U.S. Department of Health and Human Services – Office of Inspector General for the investigation leading to the successful prosecution of Rossi.
Squirrel Hill Restaurant, Owner Plead Guilty to Unfair Labor PracticesRead the Press Release
PITTSBURGH – The owner of Sun Penang, Inc., a Pittsburgh restaurant, pleaded guilty Tuesday in federal court to charges of falsifying, concealing, or covering up by trick, scheme, or device a material fact, and on behalf of the business ofwillfully violating the Fair Labor Standard Act, Acting United States Attorney Soo C. Song announced today.
Hsiao Yen Wu, a/k/a Sophia Wu, age 40, of Pittsburgh, Pa and Sun Penang, Inc., located at 5829 Forbes Avenue, Pittsburgh, PA 15217 pleaded guilty to three counts before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that after Sun Penang had agreed to pay back wage payments, Wu represented that Sun Penang had issued all back wage payments checks and provided faxed copies of these checks to the Department of Labor. However, Wu knew that the employees were not paid back wage payments because these employees were required either to deposit the checks into Wu's personal bank account or to work without pay until Sun Penang recouped the wages. Sun Penang failed to pay minimum wages and overtime pay to their employees from January 1, 2013 to December 31, 2013.
Judge Ambrose scheduled sentencing for April 25, 2017 at 10 a.m.
With respect to Wu, the law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. With respect to Sun Penang, the law provides for a maximum fine of $20,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Department of Labor, Office of Inspector General conducted the investigation that led to the prosecution of Wu and Sun Penang, Inc.
Two New Castle Men Charged with Sex Trafficking a Minor, Producing Child PornographyRead the Press Release
PITTSBURGH - Two residents of Lawrence County, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of production of material depicting the sexual exploitation of a minor, interstate transportation of a minor for purpose of engaging in unlawful sexual activity, conspiracy to commit sex trafficking, and sex trafficking of a child, Acting United States Attorney Soo C. Song announced today.
The four-count Indictment named Ronald Kyle Hartman, 27, of New Castle, Pennsylvania, and David Michael Monrean, 24, of New Castle, Pennsylvania, as the defendants.
According to the Indictment, on August 15, 2016, Hartman produced image files of the sexual exploitation of a minor. From August 14, 2016 to August 16, 2016, for the purpose of private financial gain, Hartman and Monrean did knowingly and willfully transport or arrange, induce, procure, or facilitate the travel of Minor A, who had not attained the age of 18 years, in interstate commerce, from Pennsylvania to Ohio, with the intent that Minor A would engage in prostitution and other sexual activity for which a person could be charged with a criminal offense, and aided and abetted such conduct. Also, from August 14, 2016 to August 16, 2016, Hartman and Monrean knowingly entered into a conspiracy to recruit for sex trafficking a female minor who had not attained the age of 18 years. The Indictment further alleges that from August 14, 2016, to August 16, 2016, Hartman and Monrean knowingly recruited, enticed, harbored, transported, provided, obtained and maintained by any means, in and affecting interstate commerce, a female minor under the age of 18 years, and did benefit financially or by receiving anything of value from participation in a venture engaged in commercial sexual acts, knowing and in reckless disregard of the fact, and having had a reasonable opportunity to observe Minor A, that Minor A had not attained the age of 18 years and that Minor A would be caused to engage in a commercial sex act.
For Hartman, the law provides for a maximum total sentence of life imprisonment, a fine of $1,000,000.00, and a term of supervised release for any term of years not less than five, and up to life, or any or all. For Monrean, the law provides for a maximum total sentence of life imprisonment, a fine of $750,000.00, and a term of supervised release for any term of years not less than five, and up to life, or any or all. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Grove City Police conducted the investigation leading to the indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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.justice.gov/psc.
Ohio Man Charged in July 2016 Gate-Crashing Incident at FBI-Pittsburgh HeadquartersRead the Press Release
PITTSBURGH - One resident of New Waterford, Ohio, has been indicted by a federal grand jury in Pittsburgh on a charge of willfully injuring or committing depredation against any property of the United States, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Thomas Ross, as the sole defendant.
According to Indictment, on July 26, 2016, Thomas Ross drove his vehicle through the gate of the FBI Pittsburgh Field Office, located at 3311 East Carson Street, Pittsburgh, Pennsylvania. Ross proceeded to ram through the security barriers at a high rate of speed, causing his vehicle to become airborne while inflicting extensive damage to the security barrier. Upon hitting the ground, the vehicle struck a nearby light post in the interior parking lot of the FBI Pittsburgh, causing the light post to fall.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses, the extent of the property damage, and the prior criminal history, if any, of the defendant.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Pittsburgh FBI and Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
North Side Man Charged with Disposing of Car Used in Killing of Federal WitnessRead the Press Release
PITTSBURGH - A resident of Pittsburgh has been indicted by a federal grand jury in Pittsburgh on charges of being an accessory after the fact, Acting United States Attorney Soo C. Song announced today.
The two-count superseding indictment named Glenn Lee Thomas, 27, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the superseding indictment, Thomas was an accessory after the fact in relation to offenses committed by Price Montgomery in August of 2014. The superseding indictment specifically alleges that Thomas assisted Montgomery, after Montgomery and another person killed Tina Crawford on August 22, 2014. The nature of that assistance, as alleged in the superseding indictment, was that Thomas caused the getaway vehicle used in that homicide to be transported, after the homicide, outside of Pennsylvania to Virginia.
The law provides for a maximum total sentence of 30 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Thomas has been detained pending trial.
Assistant United States Attorneys Gregory J. Nescott and Shaun E. Sweeney are prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service – Criminal Investigation, Drug Enforcement Administration, Office of the Pennsylvania Attorney General and the Pittsburgh Police conducted the investigation leading to the superseding indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Jamaican Charged with Immigration ViolationRead the Press Release
PITTSBURGH - A citizen of Jamaica, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal immigration laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Victor Palmer, a/k/a Patrick Brown, age 33, of Jamaica, as the sole defendant.
According to the indictment, on or about December 2, 2016, Palmer was found in Monroeville, Allegheny County, Pennsylvania, after having unlawfully re-entered the United States following removal on four previous occasions.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
United States Immigration and Customs Enforcement (ICE) conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Inmate with Marijuana Gets Two More Months in Federal PrisonRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., pleaded guilty in federal court to a charge of possession of contraband in prison, and immediately was sentenced to two months in prison, consecutive to the current prison term he is serving, followed by three years’ supervised release, to run concurrent with his present sentence, Acting United States Attorney Soo C. Song announced today.
Charles Jones, 30, pleaded guilty before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on November 21, 2015, Jones was in possession of marijuana.
Assistant United States Attorney Stephanie L. Haines, prosecuted this case on behalf of the government.
Ms. Song commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Federal Correctional Institution, Special Investigative Staff, for the investigation leading to the successful prosecution of Jones.
Federal Inmate Admits Possessing ContrabandRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., pleaded guilty in federal court to a charge of attempting to obtain contraband in prison, Acting United States Attorney Soo C. Song announced today.
Douglas Vines, 45, pleaded guilty before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on July 20, 2015, Vines attempted to obtain a quantity of suboxone.
Judge Gibson scheduled sentencing for April 18, 2017, at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Stephanie L. Haines, is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the prosecution of Vines.
North Hills Man Produced Child PornographyRead the Press Release
PITTSBURGH - A former resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of production of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
Travis Glies, age 38, of Allison Park, Pennsylvania, pleaded guilty before United States District Judge Mark R. Hornak .
In connection with the guilty plea, from January of 2016 to February of 2016, Glies produced visual depictions of the sexual exploitation of a minor. Judge Hornak scheduled sentencing for April 25, 2017.
The law provides for a mandatory minimum sentence of 15 years and a maximum sentence of 30 years for the production of child pornography. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Allegheny County District Attorney’s Office, and the Allegheny County Police Department conducted the investigation leading to the prosecution of Glies.
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.justice.gov/psc.
North Hills Woman Sentenced to Prison for Bank FraudRead the Press Release
PITTSBURGH - A resident of Allegheny County has been sentenced in federal court to 13 months imprisonment, restitution in the amount of $148,341.59 and five years supervised release on her conviction of bank fraud, Acting United States Attorney Soo C. Song announced today.
United States District Judge Cathy Bissoon imposed the sentence on Tara Lynn Petrucci, 36, of Gibsonia, PA.
According to the information presented to the court, Petrucci, a former branch manager at the Citizens Bank in Bellevue, Pa., unlawfully obtained Citizens Bank debit cards which were inadvertently left by customers who used the ATM, and then used the customer debit cards to make unauthorized purchases of merchandise at retailers such as the Walmart store in Cranberry Township, Pennsylvania, and at other retailers. Petrucci also forged withdrawal slips of account holders to obtain cash.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
The Acting United States Attorney commended the United States Postal Inspection Service for the successful investigation leading to the prosecution of Tara Lynn Petrucci.
Pittsburgh Man Gets Prison Sentence for Stealing Packages Delivered to Shadyside ResidentsRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 12 months and one day in prison, three years supervised release and $2,350.27 in restitution on his conviction of theft of mail, Acting United States Attorney Soo C. Song announced today.
United States District Judge Donetta W. Ambrose imposed the sentence on Tyrone Mobley, 49, of Pittsburgh, Pa.
According to the information presented to the court, Mobley stole packages delivered from the United States Postal Service to residents in Shadyside between October and November, 2015.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
Acting United States Attorney Soo C. Song commended the U.S. Postal Inspection Service and Department of Homeland Security for the investigation that led to the successful prosecution of Tyrone Mobley.
Pittsburgh Felon Sentenced to Prison for Illegally Possessing PistolRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 15 months’ imprisonment on his conviction of being a felon in possession of a firearm, Acting United States Attorney Soo C. Song announced today.
United States District Judge Cathy Bissoon imposed the sentence on Tyron Harrison, 23, of Pittsburgh, Pa.
According to information presented to the court, on or about May 7, 2012, Harrison was convicted in the Court of Common Pleas of Allegheny County of the offenses of receiving stolen property and firearms not to be carried without a license, which are both crimes punishable by imprisonment for terms exceeding one year. Following that conviction, on or about Jan. 21, 2016, Pittsburgh Police officers patrolling Zone 6 conducted a traffic stop of a car in which the defendant was a passenger. During the stop, officers recovered a loaded, .9 mm Ruger pistol from the defendant’s hoodie pocket.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Harrison.
Pittsburgh Man Admits Role in Cross-Country Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH - A Pittsburgh resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute a quantity of cocaine, Acting United States Attorney Soo C. Song announced today.
Sidney Pinnix, 50, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Sidney Pinnix was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Judge Hornak scheduled sentencing for April 4, 2017. The law provides for a maximum sentence of 20 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Sidney Pinnix.
Oakdale Man Sentenced to Probation for Defrauding Prospective Homebuilders and InvestorsRead the Press Release
PITTSBURGH - A resident of Oakdale, Pennsylvania, has been sentenced in federal court to five years of probation, a $1,000 fine and ordered to pay $27,500 in restitution on his conviction of wire fraud, Acting United States Attorney Soo C. Song announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Thomas Slack, 67, of Oakdale, Pennsylvania.
According to information presented to the court, Slack engaged in a scheme to fraudulently obtain money from prospective home builders seeking financing through loan programs administered through the United States Department of Agriculture ("USDA") Rural Development offices. Slack was a member and director of the Great Falls Development Group, a company which falsely purported to be an established residential real estate developer and builder. Slack falsely represented to prospective home builders and investors that he was associated with the USDA's Rural Development loan programs and that he could underwrite and pre-qualify applicants for the loan programs. Slack's false representations induced prospective home builders and investors to send money to him, believing that he was actively engaged in building homes and securing financing for the homes through the USDA, when, in fact, he was not.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the U.S. Department of Agriculture Office of the Inspector General for the investigation leading to the successful prosecution of Slack.
Mercer County Man Sentenced for Social Security Benefits FraudRead the Press Release
Erie, Pa. - A resident of Carlton, Pennsylvania, has been sentenced in federal court to 5 years probation, 6 months home detention and ordered to make restitution in the amount of $92,928.00 on his conviction of theft of government property and social security fraud, Acting United States Attorney Soo C. Song announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on David James Dean, 40, of Carlton, Pennsylvania.
According to information presented to the court, from on or about August 9, 2006 to on or about May 18, 2015, Dean knowingly stole approximately $28,097 in Social Security Survivor’s Benefits payments which he knew he was not entitled. In addition, from on or about August 9, 2006 to on or about July 8, 2015, after applying to receive SSA Child’s Insurance Benefits on behalf of a minor child, Dean knowingly and willfully converted those benefits to his own use. By doing so, Dean received payments, valuing approximately $65,175, to which he knew he was not entitled.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Social Security Administration, Office of Inspector General for the investigation leading to the successful prosecution of Dean.
McKees Rocks Man Sentenced for Fraud SchemeRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to imprisoned for a total term of one day, three years supervised release and restitution in the amount of $63,752.73 on his conviction of access device fraud, Acting United States Attorney Soo C. Song announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Joseph E. Placzek, 25 of McKees Rocks, PA.
According to the information presented to the court, Placzek opened credit cards in the name of another person at Capital One bank, which he used to purchase cruise vacations at Carnival Cruise, as well as merchandise at Amazon.com and Home Depot, among other retailers.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of this defendant. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Clearfield County Man Sentenced to Prison for Defrauding Social SecurityRead the Press Release
JOHNSTOWN, Pa. - A resident of Morrisdale, Pa., has been sentenced in federal court to six months in prison, followed by six months’ home detention with electronic monitoring, and three years’ supervised release, on his conviction of conversion of government funds, Acting United States Attorney Soo C. Song announced today.
United States District Judge Kim R. Gibson imposed the sentence on Glenn Allen English, 58, of Morrisdale, Pa.
According to information presented to the court, from Jan. 1, 2008, to Oct. 31, 2015, English did receive and convert falsely to his own use a total of $210,802.30, which represents approximately 210 separate Social Security Administration benefit payments made to him to which he was not entitled.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Ms. Song commended the Social Security Administration, Office of Inspector General, for the investigation leading to the successful prosecution of English.
Bank Employee Charged with Embezzling from EmployerRead the Press Release
PITTSBURGH – A resident of Indiana, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of embezzling from a federally insured bank, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on Dec. 13, named Madeline Isenberg, 36, of Indiana, Pennsylvania, as the sole defendant.
According to the indictment, from in or around February 2012 until in or around August 2015, Isenberg, while employed as an Assistant Manager for First Commonwealth Bank, embezzled approximately $88,000.
The law provides for a maximum total sentence of thirty years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Washington County Man Sentenced to Prison for Selling Heroin/Fentanyl that Caused OverdosesRead the Press Release
PITTSBURGH - A resident of Washington, Pa., has been sentenced in federal court to 84 months of imprisonment, followed by three years of supervision, on his conviction of federal heroin and fentanyl offenses, Acting United States Attorney Soo C. Song announced today.
United States District Judge Arthur J. Schwab imposed the seven-year federal sentence on 24-year-old Ronald Douglas McMillian, Jr.
According to information presented to the court, McMillian sold fentanyl-laced heroin on August 16, 2015 and a woman overdosed on it. The next day, McMillian sold more of the drug to two males who also overdosed. Quick work by civilians, medics and police kept all three alive until they were revived by Narcan, a drug that specifically counteracts the effects of heroin and its much more potent and lethal synthetic cousin fentanyl.
Prior to imposing sentence, Judge Schwab indicated that seven years in prison was sufficient, but not greater than necessary, to help deter others from similar crimes and to punish McMillian.
Assistant United States Attorney Ross E. Lenhardt and Assistant United States Attorney Katie A. King are the federal prosecutors with the Violent Crimes Section who prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Drug Enforcement Administration (DEA) for leading the investigation that has resulted in the successful prosecution of McMillian and many other Washington County drug dealers.
The DEA has joined forces with many other federal, state and local law enforcement agencies to investigate and prosecute the alarming number of recent overdoses in Washington County and the rest of the Western District of Pennsylvania. These agencies include the Canonsburg Police Department, the Monessen Police Department, the Washington County District Attorney’s Office, the Washington County Sheriff’s Office, the Washington County District Attorney Drug Task Force, the Washington County Coroner’s Office, the Allegheny County Department of Laboratories, and the Pennsylvania State Police. Federal authorities have helped to create a “Fusion Center” where heroin and fentanyl seizures from law enforcement agencies, along with overdose information, can be gathered and disseminated. This permits law enforcement to share information obtained during individual incidents to obtain investigative leads and visualize the overall picture of heroin use, sales, overdoses and deaths.
Postal Worker Charged with Stealing Money from MailRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa. was indicted today by a federal grand jury in Johnstown on a charge of theft of mail matter by a postal employee, Acting United States Attorney Soo C. Song announced today.
The indictment named Ashlee R. Lodolinski, 28, of Johnstown, Pa., as the sole defendant.
According to the indictment presented to the court, on June 24, 2015, while an employee of the United States Postal Service, she unlawfully removed $147 from 53 pieces of mail, which were intended to be conveyed by the United States mail.
The law provides for a maximum total sentence of 5 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines, is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Inmate Charged with Attempting to Obtain Suboxone in PrisonRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., was indicted by a federal grand jury in Johnstown on a charge of attempt to obtain contraband in prison, Acting United States Attorney Soo C. Song announced today.
The indictment named Michael Jackson, 27.
According to the indictment presented to the court, on October 12, 2016, Jackson attempted to obtain a quantity of Suboxone.
The law provides for a maximum sentence of 20 years in prison and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the prosecution of Jackson.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Somerset County Men Sentenced for Conspiring to Obstruct the IRSRead the Press Release
JOHNSTOWN, Pa. - Three residents of Rockwood, Pa., were sentenced in federal court in Pittsburgh to a charge of conspiracy, Acting United States Attorney Soo C. Song announced. George R. Beener; Kerry Beener and Kevin Beener each were sentenced to five years’ probation, the first three months of which must be served as home confinement. After completing home confinement, each was ordered to serve a term of nine months’ home detention. George R. Beener was ordered to pay a fine of $50,000, and Kerry and Kevin Beener were ordered to pay fines of $10,000 each.
United States District Judge Arthur J. Schwab imposed the sentences on George R. Beener, Kerry Beener, and Kevin Beener.
According to information presented to the court, between March 2010 and February 2016, George R. Beener, Kerry Beener and Kevin Beener engaged in a conspiracy to impair, impede, and obstruct the functions of the Internal Revenue Service in the computation, assessment, and collection of income tax.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
Acting United States Attorney Soo C. Song commended the Internal Revenue Service/Criminal Investigation for the investigation leading to the successful prosecution of the Beeners.
Pittsburgh Man Sentenced to Time-Served for Defrauding BanksRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to time served on his conviction of bank fraud, Acting United States Attorney Soo C. Song announced today.
United States District Judge Donetta W. Ambrose imposed the sentence on Alvin R. Simmons, 56.
According to the information presented to the court, Simmons used fraudulent personal checks to buy postage stamps at Post Offices in western Pennsylvania, and committed bank fraud upon Citizens and First Niagara banks.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
Acting United States Attorney Soo C. Song commended the U.S. Postal Inspection Service for the investigation leading to the successful prosecution of Alvin R. Simmons.
Owner of Saga Restaurants Charged with Harboring and Transporting Illegal AliensRead the Press Release
PITTSBURGH – A local restaurateur has been indicted by a federal grand jury in Pittsburgh on charges of harboring and transporting illegal aliens, Acting United States Attorney Soo C. Song announced today.
The two-count indictment, returned on Dec. 6, and unsealed today, named Xing Zheng Lin, aka Steve Lin, age 44, of McKees Rocks, Pa., as the sole defendant.
According to the indictment presented to the Court, from in and around 2009, until on or about Jan. 10, 2014, Lin harbored and transported illegal aliens who were employed at Saga Restaurant in Monroeville, Robinson, and Bethel Park, all of which were owned by Lin.
The law provides for a maximum total sentence at each count of not more than 10 years in prison for each alien, a fine of $250,000 for each alien or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
Homeland Security Investigations and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bulgarian Charged with GozNym Malware Attacks in the U.S.Read the Press Release
PITTSBURGH – A Bulgarian man has been indicted by a federal grand jury in Pittsburgh in connection with a sophisticated malware package known as GozNym, designed to steal banking credentials and other confidential personal information from infected computers, Acting United States Attorney Soo C. Song announced today.
The six-count indictment, returned on Oct. 4, 2016, and unsealed today, named Krasimir Nikolov, age 44, of Varna, Bulgaria, as the sole defendant. Count One charges Nikolov with criminal conspiracy; Count Two charges unauthorized access of a computer to obtain financial information; and Counts Three through Six charge bank fraud. The indictment alleges that Nikolov acquired victims’ stolen banking credentials through GozNym malware infections of victims’ computers to gain unauthorized access to victims’ online bank accounts from which electronic funds transfers were issued or attempted to be issued.
According to Acting U.S. Attorney Song, GozNym malware has been used to target private businesses and their respective financial institutions in the United States since late 2015. Victims receive phishing emails containing a hyperlink or an attachment designed to look like a legitimate business invoice. By clicking on the hyperlink or attachment, the victim’s computer becomes infected with GozNym malware. The malware steals the victim’s online banking login credentials which the criminals then use to access the victim’s bank account and issue unauthorized wire transfers.
Last week Acting U.S. Attorney Song and other members of the Justice Department announced a multi-national operation to dismantle a complex and sophisticated criminal network known as Avalanche which hosted more than two dozen of the world’s most pernicious types of malware, to include GozNym, and several money laundering campaigns. The prosecution of Krasimir Nikolov stems from the criminal investigation into the Avalanche network and the malware campaigns it hosted.
Among the numerous GozNym attacks that occurred throughout the United States, the indictment names the following:
- Nord-Lock, Inc., a bolt-manufacturing company headquartered in Carnegie, Pa., was the victim of an attempted unauthorized wire transfer of $387,500 from its online account at PNC Bank to an account in Sofia, Bulgaria.
- Protech Asphalt Maintenance, Inc., an asphalt and paving business located in New Castle, Pa., was the victim of several attempted unauthorized wire transfers totaling more than $243,000 from its online account at First National Bank.
- Foresight Sports, Inc., a company that provided technology-based golf products and was located in San Diego, California, was the victim of attempted unauthorized wire transfers totaling more than $118,000 from its online account at American Express Foreign Exchange Service Payments.
- California Furniture Collection, Inc., (DBA Artifacts International) a furniture business located in Chula Vista, California, was the victim of several attempted unauthorized wire transfers totaling more than $737,000 from its online account at CommerceWest Bank.
Acting U.S. Attorney Song praised the diligence and quick action of the victims and their respective banks in discovering the fraudulent wire transfers and recalling the funds before they were lost.
Nikolov was arrested at his residence in Varna, Bulgaria, on September 8, 2016. He was extradited to the United States over the past weekend, and made his initial appearance in federal court in Western Pennsylvania today at 3:30 p.m.
The law provides for a maximum total sentence of up to 100 years in prison and a fine of $3,500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Charles Eberle of the Western District of Pennsylvania and Senior Trial Attorney Richard D. Green of the Justice Department’s Computer Crimes and Intellectual Property Section are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case. The FBI was assisted by Bulgaria’s General Directorate for Combating Organized Crime. In addition to the Justice Department’s Computer Crimes and Intellectual Property Section’s involvement in the investigation, the Department’s Office of International Affairs provided significant assistance with the extradition process.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Gun Thief Daniel Johnson Goes Back to Federal Prison for Violating SupervisionRead the Press Release
PITTSBURGH - A resident of New Kensington, Pa, has been sentenced in federal court for the third time, Acting United States Attorney Soo C. Song announced today.
According to information presented to the court, Daniel Johnson and several accomplices smashed the front window of the Jolar gun dealership in New Kensington on Dec. 14, 2009. and stole three AR-15 type assault rifles and 11 pistols. Agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives led the investigation which resulted in the charges.
In 2011, Senior United States District Court Judge Alan Bloch originally sentenced Johnson to 24 months in federal prison and three years of supervision by the United States Probation Office.
Johnson later violated that period of supervision and was sentenced in 2014 by Judge Bloch to an additional ninemonths of imprisonment and 27 months of supervision.
While in a halfway house after serving the 2014 sentence, Johnson was arrested for selling heroin. At a hearing held on Dec. 8, 2016, Judge Bloch determined that the defendant’s heroin sale was a serious violation his supervision and sentenced the defendant to another 24 months of imprisonment, followed by 19 months of supervision.
Assistant United States Attorney Ross E. Lenhardt of the Violent Crime Section of the Office of the United States Attorney prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Pennsylvania Office of the Attorney General Task Force for the investigation leading to the third successful prosecution of Johnson. This task force is comprised of local police officers who work together to investigate drug crimes.
18 Facing Charges Related to Health Care Fraud and Prescription Pill Distribution RingRead the Press Release
PITTSBURGH – Eighteen individuals have been charged in 13 indictments for their role in a large-scale health care fraud and prescription pill distribution scheme, Acting United States Attorney Soo C. Song announced today. The separate, but related, indictments, returned Tuesday and unsealed today, charge the defendants with drug distribution, health care fraud and conspiracy to commit health care fraud. The indictments allege that the defendants obtained prescription painkillers paid for by government-funded health care programs and then sold their pills for cash. The buyers then redistributed the pills to addicts.
The grand jury returned an 11-count superseding indictment charging the following six defendants:
Mark Coleman, 37, of Pittsburgh, Pa.;
Jeremiah Davidson, 60, of Pittsburgh, Pa.;
Kavon Dawkins, 23, of Clinton Twp., Michigan;
Tevina Harris, 22, of Pittsburgh, Pa.;
Nicole Miller, 29, of formerly Pittsburgh, Pa. and currently incarcerated; and
William Richardson, formerly Pittsburgh, Pa., 15212 and currently incarcerated.According to the superseding indictment, Coleman, Davidson, Dawkins, Harris, Miller and Richardson conspired to distribute oxycodone and oxymorphone from August 2014 to June 2016. Harris and Richardson are charged with possession with intent to distribute oxymorphone on August 6, 2014 and August 14, 2014; and with possession with intent to distribute oxycodone on August 12, 2014. Davidson is charged with conspiracy to defraud UPMC Health Plan by selling prescription medications he obtained for himself. Richardson is charged with conspiracy to defraud health care benefit programs from March 2016 to May 2016 by obtaining, through false pretenses, prescription medication prescribed for others and paid for by their health care plans. The indictment also charges Richardson with defrauding UPMC Health Plan, Envision Rx Plus, and Gateway Health by receiving prescription medications for himself and selling them, and for paying individuals for prescription medications issued in their names and selling their medications. Richardson is also charged with possession with intent to distribute oxycodone and oxymorphone on August 15, 2014. The indictment further alleges that on August 15, 2014, Richardson was in possession of six firearms in furtherance of a drug trafficking crime. Finally, the indictment alleges Richardson, a convicted felon who has 11 prior convictions for crimes punishable by more than a year in prison, illegally possessed five firearms on August 15, 2014. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm.
A five-count indictment charges Angela Vernon, 65, of Pittsburgh, Pa., with defrauding UPMC Health Plan and conspiracy to possess with intent to distribute and distribution of oxycodone.
A four-count indictment charges Antoinette Adair, 48, of Pittsburgh, Pa., with defrauding Envision Insurance Company and conspiracy to distribute oxycodone and oxymorphone.
A four-count indictment charges James Roberson, 61, of Pittsburgh, Pa., with defrauding UPMC Health Plan and conspiracy to possess with intent to distribute and distribution of oxycodone and oxymorphone.
A three-count indictment charges Jacqueline Bauer, 33, of Gibsonia, Pa., with defrauding UPMC Health Plan and conspiracy to distribute oxycodone and oxymorphone.
A three-count indictment charges Mildred Rainey, 60, of Pittsburgh, Pa., with conspiracy to defraud health care insurance companies and possession with intent to distribute oxycodone.
A three-count indictment charges Marion Randolph, 62, of Pittsburgh, Pa., with defrauding Aetna, Inc. and possession with intent to distribute oxycodone.
A two-count indictment charges Teresa Bernardi, 54, of Pittsburgh, Pa., with conspiracy to defraud health care insurance companies and possession with intent to distribute oxycodone.
A two-count indictment charges Donna Swigart, 53, of Ford City, Pa., with defrauding Gateway Health and conspiracy to possess with intent to distribute oxycodone.
A two-count indictment charges Jeannette Smith, 53, of Ford City, with defrauding Gateway Health and conspiracy to possess with intent to distribute oxycodone.
A two-count indictment charges John Zurich, 40, of North Versailles, Pa., with conspiracy to possess with intent to distribute oxycodone and possession of a firearm by an unlawful user of controlled substances.
A one-count indictment charges Jennifer Troy, 40, of Gibsonia, Pa., with conspiracy to possess with intent to distribute oxycodone and oxymorphone.
A one-count indictment charges Chani Watkins, 25, of Coraopolis, Pa., with conspiracy with intent to distribute oxycodone and oxymorphone.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation and the Drug Enforcement Administration conducted the investigation that led to the prosecution of these defendants.
Jury Finds Pittsburgh Man Guilty of Producing and Possessing Sexually Explicit Videos of ChildrenRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been convicted by a jury of four men and eight women in Pittsburgh, Pennsylvania, of production, attempted production, and possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
The seven-count Superseding Indictment named George Orbin, 61, as the sole defendant.
According to the Superseding Indictment, on or about December 10, 2011, April 8, 2013, June 10, 2013, and June 11, 2013, Orbin employed, used, persuaded, induced, enticed, and coerced minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of the sexual exploitation of the minors. The Superseding Indictment further alleges that on or about August 11, 2012, and June 3, 2013, Orbin attempted to employ, use, persuade, induce, entice, and coerce minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of the sexual exploitation of the minors. Also, on or about September 10, 2013, Orbin knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum total sentence of 190 years in prison, a fine of $1,750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar and Heidi Grogan prosecuted this case on behalf of the government.
The Federal Bureau of Investigation and the Allegheny County District Attorney’s Office conducted the investigation leading to the conviction in this case.
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.justice.gov/psc.
Beaver County Man Charged with Escaping from Renewal CenterRead the Press Release
PITTSBURGH - A former resident of Beaver, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of escape from federal custody, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Jaemere Scott, age 21, currently detained in the Allegheny County Jail, as the sole defendant.
According to the indictment presented to the Court, the defendant was serving part of his federal sentence for theft of firearms from a Federally Licensed Firearms Dealer at the Renewal Center, which is a half-way house. The defendant left the Renewal Center on Aug. 15, 2016, and failed to return.
The law provides for a maximum total sentence of up to five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The United States Marshal Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Chinese National Sentenced for Lead Role in Test Taking ConspiracyRead the Press Release
PITTSBURGH - A Chinese national has been sentenced in federal court to 3 years’ probation on his conviction of conspiracy, manufacturing of fraudulent passports, and mail and wire fraud in relation to a scheme involving the fraudulent taking of college entrance exams, Acting United States Attorney Soo C. Song announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Han Tong.
According to information presented to the court, Han Tong acted as a facilitator for Chinese nationals to have the SAT and TOEFL examinations taken on their behalf by himself and others. Using counterfeit passports that contained identifying information of the Chinese nationals and the impostors’ photographs, Tong and his associates earned scores on college entrance examinations which were then used to earn admission to universities within the United States. Those who had the tests taken for them were also able to obtain F-1 Visas to enter the United States as students on the basis of that fraudulent admission.
“Conspiracy and fraud schemes like the one perpetrated by Mr. Tong for monetary gain undermine the integrity of the educational system in this country. The defendant’s actions also pose a very real threat to national security,” said Marlon V. Miller, special agent in charge of HSI in Pennsylvania.
Prior to imposing sentence, Judge Conti stated that her sentence reflected the seriousness of the offense in that it allowed people who otherwise would not have been eligible to enter the U.S. to enter and also brought unfairness to the American education system. Tong has been turned over to Immigration authorities for processing.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the Department of Homeland Security, Homeland Security Investigations and the Department of State for the investigation leading to the successful prosecution of Tong.
Avalanche Network Dismantled in International Cyber OperationRead the Press Release
WASHINGTON – The Justice Department today announced a multinational operation involving arrests and searches in four countries to dismantle a complex and sophisticated network of computer servers known as “Avalanche.” The Avalanche network allegedly hosted more than two dozen of the world’s most pernicious types of malicious software and several money laundering campaigns.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Soo C. Song of the Western District of Pennsylvania and Special Agent in Charge Robert Johnson of the FBI’s Pittsburgh Division made the announcement.
“For years, sophisticated cyber criminals have used our own technology against us—but as their networks have grown more complex and widespread, criminals increasingly rely on an international infrastructure as well,” said Assistant Attorney General Caldwell. “Avalanche is just one example of a criminal infrastructure dedicated to facilitating privacy invasions and financial crimes on a global scale. And now a multinational law enforcement coalition has turned the tables on the criminals, by targeting not just individual actors, but the entire Avalanche infrastructure. Successful operations like this one can disrupt an entire criminal ecosystem in one strike.”
“The takedown of Avalanche was unprecedented in its scope, scale, reach and cooperation among 40 countries,” said Acting U.S. Attorney Song. “This is the first time that we have aimed to and achieved the destruction of a criminal cyber infrastructure while disrupting all of the malware systems that relied upon it to do harm.”
“Cyber criminals operate without regard for national borders, and they pose a serious and growing threat to all of us,” said Special Agent in Charge Johnson. “This investigation highlights, once again, that the only way to effectively combat cyber crime is with a coordinated international law enforcement approach. Together with our law enforcement partners across the globe, the FBI is as comfortable chasing criminals in cyberspace as we are on the streets of our communtites here at home.”
The Avalanche network offered cybercriminals a secure infrastructure, designed to thwart detection by law enforcement and cyber security experts, over which the criminals conducted malware campaigns as well as money laundering schemes known as “money mule” schemes. Online banking passwords and other sensitive information stolen from victims’ malware-infected computers was redirected through the intricate network of Avalanche servers and ultimately to backend servers controlled by the cybercriminals. Access to the Avalanche network was offered to the cybercriminals through postings on exclusive, underground online criminal forums.
The operation also involved an unprecedented effort to seize, block and sinkhole – meaning, redirect traffic from infected victim computers to servers controlled by law enforcement instead of the servers controlled by cybercriminals – more than 800,000 malicious domains associated with the Avalanche network. Such domains are needed to funnel information, such as sensitive banking credentials, from the victims’ malware-infected computers, through the layers of Avalanche servers and ultimately back to the cybercriminals. This was accomplished, in part, through a temporary restraining order obtained by the United States in the Western District of Pennsylvania.
The types of malware and money mule schemes operating over the Avalanche network varied. Ransomware such as Nymain, for example, encrypted victims’ computer files until the victim paid a ransom (typically in a form of electronic currency) to the cybercriminal. Other malware, such as GozNym, was designed to steal victims’ sensitive banking credentials and use those credentials to intiate fraudulent wire transfers. The money mule schemes operating over Avalanche involved highly organized networks of “mules” who purchased goods with stolen funds, enabling cybercriminals to launder the money they acquired through the malware attacks or other illegal means.
The Avalanche network, which has been operating since at least 2010, was estimated to serve clients operating as many as 500,000 infected computers worldwide on a daily basis. The monetary losses associated with malware attacks conducted over the Avalanche network are estimated to be in the hundreds of millions of dollars worldwide, although exact calculations are difficult due to the high number of malware families present on the network.
Several victims of Avalanche-based malware attacks are located in the Western District of Pennsylvania. A local governmental office was the victim of a Nymain malware attack in which computer files were encrypted until the victims paid a Bitcoin ransom in exchange for decrypting the files. Two companies, based in New Castle and Carnegie, Pennsylvania, and their respective banks were victims of GozNym malware attacks. In both attacks, employees received phishing emails containing attachments designed to look like legitimate business invoices. After clicking on the links, GozNym malware was installed on the victims’ computers. The malware stole the employees’ banking credentials which were used to initiate unauthorized wire transfers from the victims’ online bank accounts.
The U.S. Attorney’s Office of the Western District of Pennsylvania, the FBI and the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) conducted the operation in close cooperation with the Public Prosecutor’s Office Verden; the Luneburg Police of Germany; Europol; and Eurojust, located in The Hague, Netherlands; and investigators and prosecutors from more than 40 jurisdictions, including India, Singapore, Taiwan and Ukraine.
Other agencies and organizations partnering in this effort include the Department of Homeland Security’s U.S.-Computer Emergency Readiness Team (US-CERT), the Shadowserver Foundation, Fraunhofer Institute for Communication, Registry of Last Resort, ICANN and domain registries from around the world. The Criminal Division’s Office of International Affairs also provided significant assistance.
Assistant U.S. Attorney Charles Eberle of the Western District of Pennsylvania and CCIPS Senior Trial Attorney Richard D. Green are prosecuting the case. Assistant U.S. Attorney Michael A. Comber of the Western District of Pennsylvania and CCIPS Senior Trial Attorney Green are handling the civil action to disrupt the malware operating over the Avalanche network.
Individuals who believe that they may have been victims of malware operating over the Avalanche network may use the following webpage created by US-CERT for assistance in removing the malware: www.us-cert.gov/avalanche.
Anyone claiming an interest in any of the property seized or actions enjoined pursuant to the court orders described in this release is advised to visit the following website for notice of the full contents of the orders: https://www.justice.gov/opa/documents-and-resources-december-5-2016-announcement-takedown-international-cybercriminal.
Avalanche Network Dismantled in International Cyber OperationRead the Press Release
The Justice Department today announced a multinational operation involving arrests and searches in four countries to dismantle a complex and sophisticated network of computer servers known as “Avalanche.” The Avalanche network allegedly hosted more than two dozen of the world’s most pernicious types of malicious software and several money laundering campaigns.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Soo C. Song of the Western District of Pennsylvania and Assistant Director Scott S. Smith of the FBI’s Cyber Division made the announcement.
“For years, sophisticated cyber criminals have used our own technology against us—but as their networks have grown more complex and widespread, criminals increasingly rely on an international infrastructure as well,” said Assistant Attorney General Caldwell. “Avalanche is just one example of a criminal infrastructure dedicated to facilitating privacy invasions and financial crimes on a global scale. And now a multinational law enforcement coalition has turned the tables on the criminals, by targeting not just individual actors, but the entire Avalanche infrastructure. Successful operations like this one can disrupt an entire criminal ecosystem in one strike.”
“The takedown of Avalanche was unprecedented in its scope, scale, reach and cooperation among 40 countries,” said Acting U.S. Attorney Song. “This is the first time that we have aimed to and achieved the destruction of a criminal cyber infrastructure while disrupting all of the malware systems that relied upon it to do harm.”
“We are committed to halting cybercriminal activity against the United States,” said Assistant Director Smith. “Cybercriminals can victimize millions of users in a moment from anywhere in the world. This takedown highlights the importance of collaborating with our international law enforcement partners against this evolution of organized crime in the virtual.”
The Avalanche network offered cybercriminals a secure infrastructure, designed to thwart detection by law enforcement and cyber security experts, over which the criminals conducted malware campaigns as well as money laundering schemes known as “money mule” schemes. Online banking passwords and other sensitive information stolen from victims’ malware-infected computers was redirected through the intricate network of Avalanche servers and ultimately to backend servers controlled by the cybercriminals. Access to the Avalanche network was offered to the cybercriminals through postings on exclusive, underground online criminal forums.
The operation also involved an unprecedented effort to seize, block and sinkhole – meaning, redirect traffic from infected victim computers to servers controlled by law enforcement instead of the servers controlled by cybercriminals – more than 800,000 malicious domains associated with the Avalanche network. Such domains are needed to funnel information, such as sensitive banking credentials, from the victims’ malware-infected computers, through the layers of Avalanche servers and ultimately back to the cybercriminals. This was accomplished, in part, through a temporary restraining order obtained by the United States in the Western District of Pennsylvania.
The types of malware and money mule schemes operating over the Avalanche network varied. Ransomware such as Nymain, for example, encrypted victims’ computer files until the victim paid a ransom (typically in a form of electronic currency) to the cybercriminal. Other malware, such as GozNym, was designed to steal victims’ sensitive banking credentials and use those credentials to initiate fraudulent wire transfers. The money mule schemes operating over Avalanche involved highly organized networks of “mules” who purchased goods with stolen funds, enabling cybercriminals to launder the money they acquired through the malware attacks or other illegal means.
The Avalanche network, which has been operating since at least 2010, was estimated to serve clients operating as many as 500,000 infected computers worldwide on a daily basis. The monetary losses associated with malware attacks conducted over the Avalanche network are estimated to be in the hundreds of millions of dollars worldwide, although exact calculations are difficult due to the high number of malware families present on the network.
Several victims of Avalanche-based malware attacks are located in the Western District of Pennsylvania. A local governmental office was the victim of a Nymain malware attack in which computer files were encrypted until the victims paid a Bitcoin ransom in exchange for decrypting the files. Two companies, based in New Castle and Carnegie, Pennsylvania, and their respective banks were victims of GozNym malware attacks. In both attacks, employees received phishing emails containing attachments designed to look like legitimate business invoices. After clicking on the links, GozNym malware was installed on the victims’ computers. The malware stole the employees’ banking credentials which were used to initiate unauthorized wire transfers from the victims’ online bank accounts.
The U.S. Attorney’s Office of the Western District of Pennsylvania, the FBI and the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) conducted the operation in close cooperation with the Public Prosecutor’s Office Verden; the Luneburg Police of Germany; Europol; and Eurojust, located in The Hague, Netherlands; and investigators and prosecutors from more than 40 jurisdictions, including India, Singapore, Taiwan and Ukraine.
Other agencies and organizations partnering in this effort include the Department of Homeland Security’s U.S.-Computer Emergency Readiness Team (US-CERT), the Shadowserver Foundation, Fraunhofer Institute for Communication, Registry of Last Resort, ICANN and domain registries from around the world. The Criminal Division’s Office of International Affairs also provided significant assistance.
Assistant U.S. Attorney Charles Eberle of the Western District of Pennsylvania and CCIPS Senior Trial Attorney Richard D. Green are prosecuting the case. Assistant U.S. Attorney Michael A. Comber of the Western District of Pennsylvania and CCIPS Senior Trial Attorney Green are handling the civil action to disrupt the malware operating over the Avalanche network.
Individuals who believe that they may have been victims of malware operating over the Avalanche network may use the following webpage created by US-CERT for assistance in removing the malware: www.us-cert.gov/avalanche.
Anyone claiming an interest in any of the property seized or actions enjoined pursuant to the court orders described in this release is advised to visit the following website for notice of the full contents of the orders: https://www.justice.gov/opa/documents-and-resources-december-5-2016-announcement-takedown-international-cybercriminal.
North Hills Man Pleads Guilty to Bank FraudRead the Press Release
PITTSBURGH – A resident of Allison Park, Pa., pleaded guilty in federal court to a charge of bank fraud, United States Attorney David J. Hickton announced today.
Bortolo DalDosso, a/k/a Bart DalDosso, 53, of Allison Park, Pa., pleaded guilty to one count of bank fraud before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that from April 2012, to December 2014, DalDosso used his position as the Manager of the Credit and Collections Department to embezzle $92,455.27 from Black Box Network Services’ corporate accounts at Bank of New York Mellon by having customer refunds credited to his or his wife’s credit card accounts or by depositing customer refund checks into his personal bank account after forging the endorsement signatures.
Judge Schwab scheduled sentencing for April 5, 2017 at 12:30 p.m. The law provides for a total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The U.S. Postal Inspection Service and Homeland Security Investigations conducted the investigation that led to the prosecution of DalDosso.
Joint Statement on Dismantling of International Cyber Criminal Infrastructure Known as AvalancheRead the Press Release
WASHINGTON – Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Soo C. Song of the Western District of Pennsylvania and Special Agent in Charge of the Federal Bureau of Investigation’s Pittsburgh Division Robert Johnson issued the following statement today:
“November 30 began the start of a multi-national operation to dismantle a complex, criminal network of worldwide computer servers known as Avalanche. This network hosted more than two dozen of the world’s most pernicious types of malware and several money laundering campaigns.
“The operation is being conducted by the United States Attorney’s Office for the Western District of Pennsylvania, the FBI – Pittsburgh Division, and the Computer Crime and Intellectual Property Section of the United States Department of Justice, in close cooperation with the Public Prosecutor’s Office Verden and the Luneburg Police of Germany, Europol and Eurojust, located in The Hague, Netherlands, and investigators and prosecutors from more than 40 countries.
“The operation involves an unprecedented and ongoing effort to seize, block and sinkhole more than 800,000 malicious domains associated with the Avalanche network.
“The operation involves arrests and searches in five countries. More than 50 Avalanche servers worldwide were taken offline.
“The Avalanche network, which has been operating since at least 2010, is estimated to involve hundreds of thousands of infected computers worldwide. The monetary losses associated with malware attacks conducted over the Avalanche network are estimated to be in the hundreds of millions of dollars worldwide, although exact calculations are difficult due to the high number of malware families present on the network.
“Additional information on the dismantling of Avalanche and several Western Pennsylvania victims of Avalanche-based malware attacks will be provided early next week.”
Joint Statement on Dismantling of International Cyber Criminal Infrastructure Known as AvalancheRead the Press Release
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Soo C. Song of the Western District of Pennsylvania and Special Agent in Charge of the Federal Bureau of Investigation’s Pittsburgh Division Robert Johnson issued the following statement today:
“November 30 began the start of a multi-national operation to dismantle a complex, criminal network of worldwide computer servers known as Avalanche. This network hosted more than two dozen of the world’s most pernicious types of malware and several money laundering campaigns.
“The operation is being conducted by the United States Attorney’s Office for the Western District of Pennsylvania, the FBI – Pittsburgh Division, and the Computer Crime and Intellectual Property Section of the United States Department of Justice, in close cooperation with the Public Prosecutor’s Office Verden and the Luneburg Police of Germany, Europol and Eurojust, located in The Hague, Netherlands, and investigators and prosecutors from more than 40 countries.
“The operation involves an unprecedented and ongoing effort to seize, block and sinkhole more than 800,000 malicious domains associated with the Avalanche network.
“The operation involves arrests and searches in five countries. More than 50 Avalanche servers worldwide were taken offline.
“The Avalanche network, which has been operating since at least 2010, is estimated to involve hundreds of thousands of infected computers worldwide. The monetary losses associated with malware attacks conducted over the Avalanche network are estimated to be in the hundreds of millions of dollars worldwide, although exact calculations are difficult due to the high number of malware families present on the network.
“Additional information on the dismantling of Avalanche and several Western Pennsylvania victims of Avalanche-based malware attacks will be provided early next week.”
Federal Judge Sentenced Altoona Heroin Dealer to 8 Years in PrisonRead the Press Release
JOHNSTOWN, Pa. - A resident of Altoona, Pa., has been sentenced in federal court to 96 months in prison, and four years’ supervised release on his conviction of conspiracy to distribute and possess with the intent to distribute a quantity of heroin, Acting United States Attorney Soo C. Song announced today.
United States District Judge Kim R. Gibson imposed the sentence on Darrin Canaan, 37, of Altoona, Pa.
According to information presented to the court, from Jan. 22, 2015, to April 17, 2015, Canaan conspired to distribute and possess with the intent to distribute a quantity of heroin.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Ms. Song commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania Attorney General's Office, the Cambria County Drug Task Force, the Altoona Police Department, and the Cambria County District Attorney's Office, for the investigation leading to the successful prosecution of Canaan.
Ryan Kyle Charged with Federal Hate Crime for Subway Platform AssaultRead the Press Release
PITTSBURGH - United States Attorney David J. Hickton announced today that a criminal Information has been filed in federal court in Pittsburgh charging Ryan Kyle with a hate crime based on the victim’s race. This is the first federal hate crime filed in Western Pennsylvania since the enactment of the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act of 2009.
The one-count Information named Ryan Kyle, 22, formerly of Baldwin Borough, Pennsylvania, and presently incarcerated.
According to the Information filed with the court, on or about May 30, 2015, in the Western District of Pennsylvania, Ryan Kyle did willfully cause bodily injury to K.L. because of the actual and perceived race and color of K. L.
Evidence previously introduced in state court established that Kyle, who is white, assaulted Kevin Lockett, a then-53-year-old African-American man, at the Wood Street T Station in downtown Pittsburgh on May 30, 2015. The assault was captured on Port Authority video and occurred following a Kenny Chesney concert at Heinz Field.
U.S. Attorney Hickton stated, “The anticipated plea in this case ensures that Ryan Kyle is held fully accountable for a federal hate crime that carries a significant sentence, highlights the racial motivation for the offense, and demonstrates the federal government’s commitment to prosecuting racially-motivated crimes.”
United States Attorney General Loretta Lynch certified the filing of the charge in the public interest and necessary to secure substantial justice. By law, federal prosecutors must obtain a written certification by the Attorney General or his designee before a hate crime prosecution may be undertaken.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Port Authority Police Department conducted the investigation leading to the filing of charges in this case.
A criminal Information is an accusation.
A defendant is presumed innocent unless and until proven guilty. The filing of an Information generally indicates that the defendant intends to enter a guilty plea.
Erie Man Pleads Guilty to Robbing BankRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of bank robbery, United States Attorney David J. Hickton announced today.
Eric S. Chadwick, 31, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on February 19, 2015, Chadwick and a co-defendant were involved in the robbery of $1,565 from the First National Bank, located at 3310 West 26th Street, Erie, Pennsylvania.
Judge Cercone scheduled sentencing for March 13, 2017. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Chadwick on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Millcreek Township Police Department conducted the investigation that led to the prosecution of Chadwick.
Butler County Man Charged with Transporting Minors for SexRead the Press Release
PITTSBURGH -A Butler County resident has been indicted by a federal grand jury in Pittsburgh on charges of sexual misconduct and ordered detained, United States Attorney David J. Hickton announced today.
The four-count indictment, returned on November 9 and unsealed yesterday, named James Mark Leroy, 54, of Renfrew, PA. According to the indictment presented to the court, Leroy, on two separate occasions, traveled out of state and transported minors with the intent to engage in illicit sexual conduct.
Following a detention hearing, Magistrate Judge Lisa Pupo Lenihan ordered that Leroy remain in the custody of the United States Marshals pending trial. According to evidence presented to the court, Leroy sexually exploited four minor children between 2009 and 2016 at his home and on interstate trips. Testimony presented by Detective John Hertzog of Butler County also detailed direct and indirect efforts by Leroy to obstruct the investigation.
Anyone with information that may help identify additional victims of James Mark Leroy is asked to contact the Federal Bureau of Investigation – Pittsburgh Division at 412-432-4000.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Soo C. Song and Heidi M. Grogan are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Penn Township Police, and Butler County conducted the investigation leading to the indictment in this case.
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 Depart 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Greensburg Man Admits Impersonating a Secret Service AgentRead the Press Release
PITTSBURGH – A Westmoreland County resident pleaded guilty in federal court jury in Pittsburgh on a charge of fraudulent official seals, United States Attorney David J. Hickton announced today.
Christopher Diiorio, 53, of Greensburg, PA, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, Christopher Diiorio conspired with others to produce false United States Secret Service identification cards. He also misrepresented that he was an agent of the United States Secret Service, possessed, and displayed an imitation United States Secret Service badge to a hotel manager in order to obtain the government rate for a hotel stay. Finally, he misrepresented that he was an agent of the United States Secret Service and displayed the false United States Secret Service identification card during an encounter with a local police officer.
Judge Fischer scheduled the sentencing for March 9, 2017. The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Christopher Diiorio.