Western District of Pennsylvania
Press releases recorded for this federal judicial district.
Senior VP of Blair County Bank Admits Submitting False Expense ReportsRead the Press Release
JOHNSTOWN, Pa. - A resident of Hollidaysburg, Pa., pleaded guilty in federal court to a charge of misapplication of funds by a bank employee, United States Attorney David J. Hickton announced today.
Timothy C. Nagle, 53, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from Oct. 3, 2010, to Jan. 2014, Nagle, a Senior Vice President at First National Bank, in Hollidaysburg, Pa., submitted approximately 24 false expense reports, thereby receiving money he was not entitled to.
Judge Gibson scheduled sentencing for April 28, 2016, at 10:00 a.m. The law provides for a maximum total sentence of 30 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 John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Nagle.
Four Columbus Men Charged with Conspiring to Burglarize a PharmacyRead the Press Release
PITTSBURGH - Four residents of Columbus, Ohio, have been indicted by a federal grand jury in Pittsburgh on charges of burglary of a pharmacy, conspiracy to burglarize a pharmacy, and conspiring to possess with the intent to distribute a Schedule IV controlled substance, United States Attorney David J. Hickton announced today.
The four-count indictment named:
- Travis Russell Maynard, age 36, formerly of Columbus, Ohio;
- Billy David Mayhone, age 25, of Grove City, Ohio;
- Michael Anthony Hanson, age 26, formerly of Columbus, Ohio; and
- Mark A. Hicks, age 26, of Columbus, Ohio.
According to the indictment presented to the court, the defendants are all charged with conspiracy to burglarize a pharmacy and conspiracy to possess with intent to distribute a Schedule IV controlled substance. Travis Maynard, Billy Mayhone, and Michael Hanson are all charged with the burglary of a pharmacy on or about Dec. 7, 2015. Michael Hanson is also charged with possession with intent to distribute Alprazolam, a Schedule IV controlled substance.
For Maynard, Mayhone, and Hanson, the law provides for a maximum total sentence of 20 years in prison, a fine of up to $250,000, or both. For Hicks, the law provides for a maximum total sentence of 10 years in prison, a fine of up to $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 Barbara K. Doolittle is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Bethel Park Police Department 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.
Armstrong County Truck Driver Sentenced to Probation for Ripping Off Social SecurityRead the Press Release
PITTSBURGH – An Armstrong County truck driver has been sentenced in federal court to five years of probation with six months home detention (and ordered to pay $55,012 restitution) on his conviction of theft of government property, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Billy Joe Toy, 45, of Worthington, Pennsylvania.
According to information presented to the court, Toy received Social Security disability insurance benefit payments based on his alleged inability to engage in any substantial gainful activity, and thereby caused $55,012 in disability payments to be paid to him and on behalf of his minor child, while he was employed as a truck driver and concealed his compensation for the payment of his wages to his wife’s business.
Prior to imposing sentence, Judge McVerry stated that this serious crime typically warrants imprisonment but Toy’s history and characteristics merited a sentence of probation with home confinement.
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Social Security Administration, Office of Inspector General, for the investigation leading to the successful prosecution of Toy.
Youngwood Man Pleads Guilty to Possessing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Youngsville, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
Tyler Mitchell Engle, 23, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Engle possessed computer images depicting minors engaging in sexually explicit conduct.
Judge Cercone scheduled sentencing for May 16, 2016 at 10:45 a.m. The law provides for a total sentence of 10 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 Engle on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation that led to the prosecution of Engle.
Pittsburgh Man Conspired to Distribute Drugs in ErieRead the Press Release
ERIE, Pa. – A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Vincent Jamal Carter, 38, pleaded guilty to one count before United States District Judge David S. Cercone. In addition, Carter admitted that this conviction is a violation of his conditions of supervised release.
In connection with the guilty plea, the court was advised that from in and around September 2013 to in and around January 2015, Carter conspired with three co-defendants to possess with intent to distribute and distribute kilograms of marijuana that had been shipped to Erie from California.
Judge Cercone scheduled sentencing for May 16, 2016 at 11:30 a.m. 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 Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Homeland Security Investigations, the Drug Enforcement Administration, the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service, and the Bureau of Alcohol Tobacco Firearms and Explosives conducted the investigation that led to the prosecution of Carter.
Ohio Woman Admits Providing Drugs to Federal Inmate at PA PrisonRead the Press Release
ERIE, Pa. - A resident of Ashtabula, Ohio, pleaded guilty in federal court to a charge of providing contraband in prison, United States Attorney David J. Hickton announced today.
Patricia Peak, 37, 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 or about June 7, 2015, Peak provided marijuana and suboxone to Angel Gonzales while visiting him at the McKean Federal Correctional Institution in Bradford, Pennsylvania.
Judge Cercone scheduled sentencing for May 16, 2016 at 3:30 p.m. The law provides for a total sentence of 5 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 Peak on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
Officers of the McKean Federal Correctional Institution conducted the investigation that led to the prosecution of Peak.
Pleasant Hills Man Pleads Guilty in Wiretap Investigation into Cocaine TraffickingRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.
Andre Collington, 44, Pleasant Hills, Pa., 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, Andre Collington 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 May 3, 2016. The law provides for a minimum sentence of five years in prison, a maximum sentence of 40 years in prison, a fine of not more than $5,000,000, 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 Collington’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 Street 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 Andre Collington.
Business Owner Admits Using False Income Amounts to Understate Personal Tax LiabilitiesRead the Press Release
PITTSBURGH - A resident of New Kensington, Pa., pleaded guilty in federal court to a charge of income tax evasion, United States Attorney David J. Hickton announced today.
William H. Julius pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that, as the owner of Materials Design Evaluation, Inc., Julius falsified company records by understating receipts and inflating business expenses, and then conveyed these false numbers to the person who prepared his corporate tax returns. Julius then used the false business income amounts in preparing his own fraudulent personal tax return Forms 1040, for 2008-2010, wherein he understated his tax liability by a total of $121,046.
Judge Ambrose scheduled sentencing for April 14, 2016 at 10 a.m. The law provides for a total sentence of 5 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 released the defendant on an unsecured $25,000 bond.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation, conducted the investigation that led to the prosecution of Julius.
Waterford Resident Pleads Guilty to Participating in Two Drug Trafficking RingsRead the Press Release
ERIE, Pa. – A former resident of Waterford, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Dana Scott Ball, 38, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from in and around September 2013 to in and around January 2015, Ball conspired with three co-defendants to possess with intent to distribute and distribute approximately 700 kilograms or more of a mixture and substance containing a detectable amount of marijuana. In a separate case, from June 2013 through February 2015, Ball engaged in a conspiracy with eighteen co-defendants to distribute and possess with intent to distribute in excess of 150 kilograms of cocaine.
Judge Cercone scheduled sentencing for May 16, 2016 at 12:45 p.m. The law provides for a maximum total sentence of life in prison, a fine of $15,000,000, or both. Ball faces a mandatory minimum sentence of ten years on the cocaine case and five years on the marijuana case. 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 Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Homeland Security Investigations, the Drug Enforcement Administration, the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service, and the Bureau of Alcohol Tobacco Firearms and Explosives conducted the investigation that led to the prosecution of Ball.
Mexican Pleads Guilty to Illegally Re-Entering United States after RemovalRead the Press Release
PITTSBURGH - A citizen of Mexico has pleaded guilty in federal court to a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
Juan Rivera-Santos, 39, pleaded guilty to one count before Nora Barry Fischer.
In connection with the guilty plea, on or about Sept. 17, 2015, Rivera-Santos was found in North Versailles, Pa., after having unlawfully re-entered the United States following removal on several occasions.
Judge Fischer scheduled the sentencing for April 21, 2016, at 1 p.m. 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 Paul E. Hull 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.
Mexican Pleads Guilty to Illegally Re-Entering United States after RemovalRead the Press Release
PITTSBURGH - A citizen of Mexico has pleaded guilty in federal court to a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.Juan Rivera-Santos, 39, pleaded guilty to one count before Nora Barry Fischer.
In connection with the guilty plea, on or about Sept. 17, 2015, Rivera-Santos was found in North Versailles, Pa., after having unlawfully re-entered the United States following removal on several occasions.
Judge Fischer scheduled the sentencing for April 21, 2016, at 1 p.m. 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 Paul E. Hull 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.
Erie Woman Sentenced to Prison for Identity Theft SchemeRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 24 months in jail and ordered to make restitution in the amount of $62,653.00 on her conviction of aggravated identity theft, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Katrina A. House, 45.
According to information presented to the court, House conspired with another individual to defraud the United States by submitting false claims for income tax refunds using individuals’ identification information which was unlawfully obtained. House stole the identities of 71 individuals who were clients of the Community of Caring, a non-profit social service agency in Erie, Pennsylvania where House is employed. House and her co-defendant sought refunds from the IRS of more than $100,000.00 and used the stolen identities and falsified W-2 forms to perpetrate the fraudulent tax refund scheme. House and her co-defendant successfully obtained more than $60,000.00 in tax refunds from the fraudulent scheme and converted that money to their own use.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of House.
Erie Man Pleads Guilty to Violating Federal Drug LawsRead the Press Release
ERIE, Pa. – A former resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Robert Jovaun Harris, 37, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from June 2013 through February 2015, Harris engaged in a conspiracy to distribute and possess with intent to distribute cocaine. The court was also advised that on or about October 28, 2014, Harris distributed and possessed with intent to distribute 6 ounces of cocaine.
Judge Cercone scheduled sentencing for May 16, 2016 at 1:30 p.m. The law provides for a maximum total sentence of 40 years in prison, a fine of $5,000,000, 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 Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Homeland Security Investigations, the Drug Enforcement Administration, the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service, and the Bureau of Alcohol Tobacco Firearms and Explosives conducted the investigation that led to the prosecution of Harris.
Edinboro Woman Allowed Her House to be Used for Drug TraffickingRead the Press Release
ERIE, Pa. – A resident of Edinboro, Pennsylvania, pleaded guilty in federal court to a charge of making her home available for drug activities, United States Attorney David J. Hickton announced today.
Christian Urrutia Rojas, 30, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from June 2013 through February 2015, Rojas engaged in a conspiracy with eighteen co-defendants to distribute and possess with intent to distribute cocaine, ounces of high purity methamphetamine, and ounces of heroin. Rojas facilitated the conspiracy by having her home in Edinboro used as the drop off point for drugs and money.
Judge Cercone scheduled sentencing for May 16, 2016 at 3:00 p.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $500,000, 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 Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Homeland Security Investigations, the Drug Enforcement Administration, the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service, and the Bureau of Alcohol Tobacco Firearms and Explosives, conducted the investigation that led to the prosecution of Rojas.
Sex Offender Sentenced to Prison for Failing to RegisterRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 22 months in jail on his conviction of failure to register under SORNA, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on James Foster Wilcox, 28.
According to information presented to the court, Wilcox knowingly failed to update his registration as required by the Sex Offender Registration and Notification Act.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Marshal’s Service for the investigation leading to the successful prosecution of Wilcox.
Brooklyn Man Sentenced for Role in Stolen Identity Refund Fraud SchemeRead the Press Release
Erie, Pa. -A former resident of Brooklyn, New York, has been sentenced in federal court to 10 months in jail and ordered to make restitution in the amount of $89,007.42 on his conviction of conspiracy to commit wire fraud, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on William Sarfo, 42.
According to information presented to the court, Sarfo allowed bank accounts in his name and under his control to be used as repositories for fraudulently obtained federal tax refunds. Sarfo would then withdraw the fraudulently obtained refunds, keep a portion for himself and give the remainder of the money to another co-defendant.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Sarfo.
Oakdale Man Indicted on Fraud ChargesRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of mail and wire fraud, United States Attorney David J. Hickton announced today.
The five-count indictment named Thomas Slack, 66, of Oakdale, Pa., as the sole defendant.
According to the indictment 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.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both for each count. 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 Robert S. Cessar is prosecuting this case on behalf of the government.
The United States Department of Agriculture Office of the 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.
Verona Man Sentenced to 46 Months in Prison for Conspiring to Deal CocaineRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 46 months’ imprisonment on his conviction of conspiracy to distribute cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Damian Petty, 52, of Verona, Pa.
According to information presented to the Court, 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, Damian Petty 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.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to fulfill the purposes of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended 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 Police Department for the investigation leading to the successful prosecution of Petty.
Jury Finds Storeowner and Felon Dealer Guilty of Conspiring to Distribute HeroinRead the Press Release
PITTSBURGH - After deliberating for three hours, a federal jury of four men and eight women found two Pittsburgh-area men guilty of five counts of drug and firearms related offenses, United States Attorney David J. Hickton announced today.
Richard Bush, 52, and Mayank Mishra, 35, were tried before United States District Judge Cathy Bissoon in Pittsburgh over the course of three weeks.
According to Assistant United States Attorney Brendan T. Conway and Donovan Cocas, who prosecuted the case, the evidence presented at trial established that Richard Bush supplied heroin to members of a violent street gang called the East Hills Bloods, who operated out of the East Hills section of Pittsburgh. A search warrant executed at his home on March 14, 2012, led to the seizure of more than 9,000 stamp bags of heroin and a cache of firearms, including a sawed-off shotgun, secreted throughout his home. Mishra participated in the heroin distribution conspiracy by supplying stamp bags and material used to dilute heroin to Bush and numerous other Pittsburgh area heroin dealers for more than a decade at his Rock America store, which was operated out of the Northway Mall. Search warrants executed at Rock America and at Mishra’s home on Feb. 26, 2013, led to the seizure of more than two million stamp bags, which, if filled with heroin, would have amounted to more than 75 kilograms of heroin. Federal agents also seized a vast inventory of materials used to dilute heroin and more than $900,000 in cash, which the jury forfeited to the United States as proceeds of his crimes.
Judge Bissoon scheduled sentencing hearings for both defendants on April 6, 2016. The law provides for a total sentence of life in prison for both defendants. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Greater Pittsburgh Safe Streets Task Force conducted the investigation that led to the prosecution of Bush and Mishra. The Greater Pittsburgh Safe Streets Task Force consists of Pittsburgh Bureau of Police, Allegheny County Sheriff's Office, Wilkinsburg Police Department, Allegheny County Police Department, Oakdale Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Federal Bureau of Investigation. The Greater Pittsburgh Safe Streets Task Force also received assistance in this case from the Pennsylvania State Police.
Eighty Four, Pa., Man Charged with Receipt and Possession of Child PornographyRead the Press Release
PITTSBURGH - A Washington County resident has been indicted by a federal grand jury in Pittsburgh on a charge of receipt of material depicting the sexual exploitation of a minor, and a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on Dec. 16, named Michael G. Williams, 47, of Eighty Four, Pennsylvania, as the sole defendant.
According to the indictment, from on or about June 18, 2015, and continuing thereafter to on or about June 25, 2015, Williams knowingly received visual depictions, namely, videos and images in computer graphics and digital files, the production of which involved the use of a minor engaging in sexually explicit conduct. The indictment further charges that Williams, on July 15, 2015, unlawfully possessed in computer graphics files photographs and videos depicting minors engaged in sexually explicit conduct.
The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000.00, 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 Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Office of the Pennsylvania Attorney General 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.
Four-time Convicted Drug Dealer Caught by Feds Bribing Gun Case WitnessRead the Press Release
PITTSBURGH - A former Pittsburgh resident pleaded guilty in federal court to charges involving bribery and illegal firearm possession, United States Attorney David J. Hickton announced today.
Monroe Blanks, III, 29, currently incarcerated on a parole violation, pleaded guilty before United States District Judge Donetta W. Ambrose to all of the charges he faced at two different cases.
In connection with the guilty plea, the court was advised that Blanks had previous convictions that include three felony drug trafficking convictions in 2006 and another in 2012. On March 3, 2015, Pittsburgh Police stopped Blanks’ vehicle and found that he possessed a loaded 9mm caliber Glock handgun. Federal law prohibits individuals with any previous conviction for a crime punishable by more than one year in prison from possessing a firearm or ammunition. Over the next four months, Blanks contacted numerous persons in an effort to bribe witnesses. Federal investigators learned of the bribery scheme and arrested Blanks after determining that he had paid an individual thousands of dollars to come to Court and lie.
By signing a written plea agreement and pleading guilty to all of his crimes, Blanks has agreed to serve 188 months (over 15 ½ years) in federal prison and he will be supervised by the United States Probation Office for another five years following his release from prison. Judge Ambrose scheduled the formal imposition of sentence for April 6, 2016 at 10 a.m.
Blanks’ co-defendants have each been charged and are currently awaiting their February 29, 2016 trial date before Allegheny County Court of Common Pleas Judge Anthony Mariani.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pittsburgh Bureau of Police for conducting the investigation that led to the prosecution of Monroe Blanks, III.
Assistant United States Attorney Ross E. Lenhardt, a federal prosecutor with the Violent Crime Section of the Office of the United States Attorney, represented the federal government.
Federal Jury Convicts Pittsburgh Man on Drug ChargeRead the Press Release
PITTSBURGH - After deliberating for two hours, a federal jury of nine women and three men found Rodney Howard guilty of one count of Possession with Intent to Distribute 100 Grams or More of Heroin, United States Attorney David J. Hickton announced today.
Rodney Howard, 31, was tried before United States District Judge Mark R. Hornak in Pittsburgh, Pennsylvania..
According to Assistant United States Attorneys Cindy K. Chung and Stephen Gilson, the evidence presented at trial established that on or about Sept. 18, 2014, Howard possessed with the intent to distribute 100 grams or more of a mixture and substance which contained heroin, a Schedule I controlled substance.
Judge Hornak scheduled sentencing for April 18, 2016 at 2 p.m. The law provides for a maximum total sentence of not less than five years and up to forty years in prison, a fine of $5,000,000, 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.
The Federal Bureau of Investigation and the Allegheny County Sheriff’s Office conducted the investigation that led to the prosecution of Howard.
Ellwood City Man Charged with Possessing and Distributing Child PornographyRead the Press Release
PITTSBURGH - A Beaver County resident was indicted on Dec. 16, 2015, by a federal grand jury in Pittsburgh, Pennsylvania, on charges of distribution and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The two-count indictment named Lucas Avery Klobetanz, 39, formerly of Ellwood City, Pa., as the sole defendant.
According to the indictment, on or about Oct. 8, 2015, Klobetanz distributed videos and images containing material depicting the sexual exploitation of minors. The indictment further alleges that on or about Dec. 4, 2015, Klobetanz 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 60 years in prison, a fine of $500.000 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 is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State 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 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.
Secret Service Investigation Leads to Prison Sentence for Illinois ManRead the Press Release
PITTSBURGH -- A resident of Chicago, Illinois, has been sentenced in federal court to 52 months imprisonment, to be followed by 3 years supervised release on his conviction of conspiracy, using unauthorized access devise in aggregate of $1,000, possessing device-making equipment, and possessing 15 or more access devices, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Joel M. Cosey, age 27.
According to information presented to the court, on or about August 9, 2013, Cosey conspired, possessed device-making equipment, possessed 15 or more access devices, and used unauthorized access devices in aggregate of $1,000.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Cosey.
Pittsburgh Felon Charged with Illegally Possessing a FirearmRead the Press Release
PITTSBURGH- A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on a charge of possession of a firearm by a convicted felon, United States Attorney David J. Hickton announced today.
The one-count indictment named Tiawan Harper, 31, as the sole defendant.
According to the indictment, Harper was found in possession of a firearm on or about Sept. 18, 2015, following a felony conviction in 2010. Federal law prohibits a person convicted of a crime punishable by in excess of one year imprisonment from possessing a firearm or ammunition.
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 of the defendant.
Assistant United States Attorney Ryan K. Hart is prosecuting this case on behalf of the government.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crimes. The Bureau of Alcohol, Tobacco, Fire, and Explosives, the United States Marshals Service, and the Pittsburgh Police Department 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.
Nevada Man Pleads Guilty in International Counterfeiting SchemeRead the Press Release
PITTSBURGH - A resident of Las Vegas, Nevada pleaded guilty in federal court to charges of transferring counterfeit currency, United States Attorney David J. Hickton announced today.
Zackary L. Ruiz, a/k/a Mr. Mouse, 19, of Las Vegas, Nevada, pleaded guilty to two counts before United States District Judge Mark Hornak.
In connection with the guilty plea, Ruiz also pled guilty to conspiracy to make, deal, possess, pass, buy, sell, and transfer counterfeit currency both overseas and in the United States.
Judge Hornak scheduled sentencing for April 18, 2016, at 9:30 a.m. The law provides for a total sentence of 45 years in prison, a fine of $750,000, or both. 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.
Pending sentencing, the court continued bond.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Ruiz.
Verona Man Pleads Guilty to Producing Sexually Explicit Videos of MinorsRead the Press Release
PITTSBURGH - A former Allegheny County resident pleaded guilty in federal court to a charge of production of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
David Hudak, 46, of Verona, Pennsylvania, pleaded guilty to one count before United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on Feb. 3, 2013, Hudak employed, used, and coerced a minor, approximately five years of age, to engage in sexually explicit conduct for the purpose of producing a video depicting her sexual exploitation. The court was further informed that the video was taken in Hudak’s Verona residence, while the child victim was in his custody and care. The video was discovered on a computer seized from Hudak’s residence during the execution of search warrant. The search warrant was issued following an undercover investigation during which Hudak distributed videos depicting the sexual exploitation of minors to an undercover officer.
Judge Conti scheduled sentencing for March 24, 2016, at 3 p.m. The law provides for a total sentence of not less than 15 years nor more than 30 years in prison, a fine of $250,000.00, supervised release for any term of years not less than five, and up to life, or any and all. 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 ordered that Hudak remain detained.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and other members of the Western Pennsylvania Violent Crimes Against Children Task Force conducted the investigation leading to the prosecution of Hudak.
17 Charged in Cocaine Trafficking RingRead the Press Release
PITTSBURGH – Seventeen people have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
The seven-count indictment named:
- William J. Chaffin Jr., 48, of Adah, Pa.;
- Semori Wilson, 45, formerly of Uniontown, Pa.;
- Domin Guerrero-Guerrero, 32, of Lebanon, Pa.;
- Dexter Allen, 27, of Uniontown, Pa.;
- George Daube, 59, of Donora, Pa.;
- Chalfonte Demery, 34, of McKeesport, Pa.;
- Damien Gibson, 41, of Duquesne, Pa.;
- Peter Hawkins, 44, of McKeesport, Pa.;
- Richard Lassic, 41, of Washington, Pa.;
- Marquis Bailey, 24, of Uniontown, Pa.;
- Tomarrio Blackburn, 33, McClellandtown, Pa.;
- Anitra Dues, 38, of Adah, Pa.;
- Brandon Harrison, 29, of McClellandtown, Pa.;
- Mark Johnson, 28, of Uniontown, Pa.;
- Keith Thomas, 30, of Uniontown, Pa.;
- Herbert Ballard, 50, of Pittsburgh, Pa.; and
- Nygel Saunders, 26, of Uniontown, Pa..
According to the indictment presented to the court, the defendants named above (except for Herbert Ballard and Nygel Saunders) engaged in a conspiracy to possess with intent to distribute and distribute cocaine from June 2015 to November 2015. Individually, William J. Chaffin Jr., Richard Lassic, Herbert Ballard, and Keith Thomas are charged with possession with intent to distribute and distribution of a quantity of cocaine, while Semori Wilson and Nygel Saunders are charged with possession with intent to distribute and distribution of 500 grams or more of cocaine. William J. Chaffin Jr. is also charged with possessing a firearm after a prior felony conviction.
The law provides for a maximum total sentences ranging of not less than 5 years in prison and up to life in prison, and fines ranging from $250,000 to up to $8,000,000. 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 Barbara K. Doolittle is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Drug Enforcement Administration, the Allegheny County Sheriff’s Department, and the Allegheny County Police Department conducted the investigation leading to the indictment in this case. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). 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.
Former Executive Director of Johnstown Redevelopment Authority Sentenced to Prison for Public CorruptionRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., has been sentenced in federal court to 42 months in prison and three years’ supervised release on his conviction of federal extortion and bribery laws.
United States District Judge Kim R. Gibson imposed the sentence on Ronald W. Repak, age 64.
According to information presented to the court, Repak, while serving as Executive Director of the Johnstown Redevelopment Authority (JRA), engaged in conduct in violation of the Hobbs Act for extortion under color of official right, and engaged in acts of federal program bribery. Specifically, in exchange for Repak’s official actions and influence as the Executive Director of the JRA to facilitate the award of JRA contracting work, Repak solicited and obtained from local contracting firms a new roof for his personal residence and building demolition and grading services at Evolution Gym, his son’s privately-owned business. He was convicted at trial of two counts for extortion under color of official right and two counts of federal program bribery relative to the roof and the Evolution Gym. Mr. Repak was found not guilty of a charge of extortion under color of official right and federal program bribery in relation to multiple Pittsburgh Steelers football game tickets.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Repak.
U.S. Citizen Deported from Uganda to Face Counterfeiting Charges in Western PARead the Press Release
PITTSBURGH - A United States citizen has been deported from the Republic of Uganda and brought to the Western District of Pennsylvania to face charges of leading an international counterfeit currency operation headquartered in that African nation. The announcement was made today by David Hickton, U.S. Attorney for the Western District of Pennsylvania and Eric Zahren, Special Agent in Charge of the U.S. Secret Service – Pittsburgh Field Office.
Ryan Andrew Gustafson, aka Jack Farrel, aka Willy Clock, 28, is charged with conspiracy, conspiracy to launder money, and the passing and receiving of counterfeit money from December 2013 until December 2014. The indictment alleges more than $1.4 million in counterfeit Federal Reserve Notes have been seized and passed worldwide, both overseas and in the U.S. as part of this scheme.
Gustafson had been on trial in Uganda on a number of charges, including possessing counterfeit money. He was deported Dec. 3 and arrived in Pittsburgh on Friday evening. He will be presented before Chief U.S. District Magistrate Maureen Kelly today at 2:30 p.m. for an Initial Appearance. The case is assigned to United States District Judge Mark R. Hornak.
“Identifying, charging and returning Ryan Gustafson to the United States from Uganda required extensive cooperation among diverse international law enforcement partners and expert coordination among the Secret Service, Federal Bureau of Investigation, Homeland Security Investigations and the U.S. Postal Inspection Service,” stated U.S. Attorney Hickton. “As a result, a multimillion dollar international cyber counterfeiting scheme has been disrupted and its principal will face justice on American soil. This investigation demonstrates our relentless resolve to identify cyber criminals overseas and bring them back to the United States to be tried for their crimes.”
“This international counterfeit currency investigation and subsequent arrests illustrate Secret Service expertise in safeguarding the Nation’s financial infrastructure since inception,” said Special Agent in Charge Zahren. “We will continue to work closely with our network of law enforcement partners to dismantle criminal enterprises seeking to victimize innocent victims, regardless of geographic distance or borders. Special thanks to Ugandan law enforcement officials and the United States Embassy Uganda for their assistance.”
“This investigation was an excellent example of a partnership between multiple federal law enforcement agencies across the country and overseas, working together to identify and bring down those responsible for a worldwide conspiracy. The U.S. Postal Inspection Service remains vigilant, pursuing criminals like Gustafson to ensure the public’s trust in a safe and secure mail system.” added Inspector in Charge, Tommy Coke, Pittsburgh Division of the U.S. Postal Inspection Service.
Gustafson, a U.S. citizen residing in Kampala, Uganda, was originally charged by criminal complaint in December 2014. The April 1, 2015, indictment naming Gustafson also charged three additional defendants with conspiracy and conspiracy to launder money from December 2013 until December 2014. Those defendants are:
- Zackary L. Ruiz, aka Mr. Mouse, 19, of Las Vegas, Nevada, who is pending trial;
- Jeremy J. Miller, aka Sinner, 31, of Seattle, Washington, who is pending trial; and
- Michael Q. Lin, aka Mlin, aka Mr. Casino, 21, of Bethlehem, Penn., who pleaded guilty on Nov. 9, and is scheduled to be sentenced on March 16, 2016.
Assistant U.S. Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
U.S. Attorney Hickton commended numerous agencies and organizations for conducting the investigation leading to charges in this case, including the Directorate of Public Prosecution, the Criminal Investigations and Intelligence Department, the Special Investigations and Intelligence Unit, and Stanbic Bank in Uganda; the U.S. Secret Service; the Federal Bureau of Investigation; the U.S. Postal Inspection Service; Homeland Security Investigations; U.S. Customs and Border Protection; and the National Cyber-Forensics & Training Alliance.
8 Indicted for Violating Federal Drug and Money Laundering LawsRead the Press Release
PITTSBURGH - Four residents of Western Pennsylvania, three of Texas, and one of Florida, have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and money laundering laws, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on Oct. 21 and unsealed yesterday, named:
- Dante Ivan Lozano, 40, of Olmito, Texas;
- Jeffrey Turner, 35, of McKeesport, Pennsylvania;
- April Racan, 37, of McKeesport, Pennsylvania;
- Joseph Borrelli, 49, of Glassport, Pennsylvania;
- Daniel Cosme, 35, of San Benito, Texas;
- Hugo Balboa, 48, of Texas;
- Brian Kettering, 29, of Charleroi, Pennsylvania; and
- William Coulson, 50, of St. Augustine, Florida.
According to the indictment, between 2011 and 2015, in the Western District of Pennsylvania and elsewhere, Lozano, Turner, Racan, Borrelli, and Kettering conspired to distribute five kilograms or more of cocaine. Lozano, Turner, Racan, Cosme, Balboa, Kettering and Coulson are charged with conspiracy to commit money laundering.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000 or both on the drug conspiracy count, and a sentence of not more than 20 years in prison, a fine of $500,000, or both on the money laundering conspiracy count.
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 Gregory J. Nescott is prosecuting this case on behalf of the government.
The United States Postal Service in Pittsburgh and the Drug Enforcement Administration in Brownsville, Texas, 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.
8 Charged with Making False Statements in Connection with the Acquisition of FirearmsRead the Press Release
PITTSBURGH – Six men and two women have been indicted by a federal grand jury in Pittsburgh on charges of making false statements in connection with the acquisition of firearms, United States Attorney David J. Hickton announced today.
The 22-count superseding indictment, returned on Dec. 1, named eight defendants:
- Michael Bassier, 31, formerly of Brooklyn, NY;
- Robyn Brown, 29, of Pittsburgh, Pa;
- Christopher Buchanon, 23, of Pittsburgh, Pa;
- Brandon Goode, 25, of Pittsburgh, Pa.;
- Nathan Lawrence, 33, formerly of Brooklyn, NY;
- Mychael Scott, 31, of Pittsburgh, Pa;
- Talen Simmons, of Pittsburgh, Pa; and
- Brandon Williams, formerly of Pittsburgh, Pa.
According to the superseding indictment, between Sept. 7, 2014, and Aug. 12, 2015, Bassier caused another to make false statements in connection with the acquisition of 44 firearms from licensed dealers in the Western District of Pennsylvania. Bassier is the only defendant charged in each of the 22 counts of the indictment. The remaining defendants are charged in counts alleging that they made or caused the making of false statements with respect to particular firearms.
“This investigation highlights ATF’s commitment to interdict firearms trafficking throughout our region. ATF will continue to pursue criminal networks who funnel illegally obtained firearms into the pipeline that fuels black markets throughout our region, including New York City,” said ATF Special Agent in Charge Sam Rabadi. “ATF and our law enforcement partners will continue to work shoulder to shoulder to identify and arrest sources of illegal guns to prevent gun violence and make our neighborhoods a safe and peaceful place to live.”
At 21 of the 22 counts, the law provides for a maximum sentence of not more than ten years in prison, a fine of not more than $250,000, or both. At the remaining count, which charges only Bassier and Lawrence, the law provides for a maximum sentence of not more than five years in prison. 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.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with detectives from the City of Pittsburgh Bureau of Police and the Allegheny County Sheriff’s Office, conducted the investigation leading to the superseding indictment in this case. Assistant United States Attorney Conor Lamb is prosecuting this case on behalf of the government.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh-area Man Sentenced to 90 Months in Prison for Violating Federal Firearms LawsRead the Press Release
PITTSBURGH – A resident of Baldwin Borough, Pa., has been sentenced in federal court to 90 months imprisonment and three years supervised release on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Eric Charles Smith, 38.
According to information presented to the court, on or about July 27, 2014, officers of the Baldwin Borough Police Department arrested Eric Smith at his residence in Baldwin for domestic violence assault against his girlfriend and their five-year-old child. Two days later, while Smith was still in jail on that charge, officers were called out to Smith’s residence by Smith’s girlfriend who indicated that she had obtained a Protection from Abuse Order against Smith and wanted his items removed from the residence, thereby giving officers consent to enter and seize items. Upon their entry, officers observed approximately 20 improvised explosive devices, explosive precursor chemicals, written calculations and recipes for explosives, bombmaking literature (such as the Anarchist Cookbook), remote detonating devices and various white supremacist and Nazi paraphernalia, including a podium and business cards which seemed to indicate that his residence was the meeting location for a group known as the “White Church Supremacists.” Among the devices was a six-inch-long fused cylinder device, which has been determined by the ATF to contain a perchlorate-based powder explosive containing aluminum and potassium perchlorate, as well as nails and other fragmentation taped to the outside of the cylinder. This device has been determined to be in operable condition and to fall within the legal definition of a “destructive device” by the ATF. In addition to being a convicted felon who is prohibited from possessing such a weapon, Smith has no items registered to him in the National Firearms Registration and Transfer Record.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Smith.
Secretary Pleads Guilty to Tax FraudRead the Press Release
PITTSBURGH - A resident of Washington County, Pennsylvania pleaded guilty in federal court to a charge of conspiracy to defraud the Internal Revenue Service, United States Attorney David J. Hickton announced today.
Ann E. Harris, 53, pleaded guilty to one felony count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that during the period from January 2006 through April 15, 2013, Harris knowingly and willfully conspired with another individual to defraud the IRS by impairing the IRS in its assessment and collection of income taxes. As a result of the conspiracy, the tax loss to the IRS was $4,044,946.
Harris was the personal assistant, bookkeeper and secretary to the co-conspirator and performed numerous duties as an employee of the co-conspirator and the co-conspirator’s businesses, including bookkeeping, payroll, accounts receivable and accounts payable. During the period from 2006 through 2013, Harris received wages and bonuses totaling over$1,000,000 and a vehicle for her personal use.
Harris and the co-conspirator used companies owned and controlled by the co-conspirator to fraudulently pay for and unlawfully deduct as business expenses, millions of dollars in personal expenses of the co-conspirator. Harris fraudulently classified personal bills of the co-conspirator as business expenses in the accounting software of the businesses and issued checks drawn on business bank accounts for payment of purely personal expenses of the co-conspirator. Harris entered fabricated account categories for her false entries in the accounting software of the businesses so that they appeared as legitimate business expenses.
The businesses involved in the scheme included Automated Health Systems, Inc.; Automated Health Systems Delaware; Nocito Enterprises, Inc.; Automated Health Services, LLC.; Management Financial Services, Inc.; Golden Triangle Leasing Co., Inc.; Donotti Properties, Inc.; Palace Development Company, Inc.; Northland Properties; and Jonolley Properties. These business entities had offices and addresses in the Western District of Pennsylvania and were effectively controlled or owned by the co-conspirator.
Harris fraudulently classified as business expenses over $27,000,000 in personal expenditures for the co-conspirator’s residential mansion and other personal expenses. The expenditures related to the construction, furnishing and landscaping of the co-conspirator’s multi-million dollar residential mansion, as well as salaries for the co-conspirator’s butler and personal cook. Harris also falsely characterized as business expenses expenditures for the co-conspirator’s exotic automobile collection which included a Mercedes, a Maserati and a Bentley; expenses for the co-conspirator’s country club membership; expenses related to the co-conspirator’s wife’s Jaguar; expenses for private school tuition; and expenses for personal residences for the co-conspirator’s family members.
Judge Hornak scheduled sentencing for April 19, 2016 at 9:30 a.m. 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 offense and the prior criminal history, if any, of the defendant.Pending sentence, the court released Harris on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Internal Revenue Service - Criminal Investigation, conducted the investigation leading to the Information in this case.
Indiana, Pa., Investment Advisor Indicted on Criminal Fraud ChargesRead the Press Release
PITTSBURGH - A resident of Indiana, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on charges of securities fraud and mail fraud, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on Nov. 19 and unsealed Friday, named Bernard M. Parker, 55, as the sole defendant.
According to the indictment, Parker was an investment advisor in Indiana, Pennsylvania. He was the principal in Parker Financial Services. He solicited investments from his clients to purchase Investor Contracts which purportedly were vehicles to purchase tax lien certificates. The vast majority of the funds received were used for personal expenses and not the purchase of tax lien certificates.The law provides for a maximum total sentence of 30 years in prison, a fine of $1,250,000 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 Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, and the United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
Federal Inmate Gets Two More Months in Prison for Possessing ContrabandRead the Press Release
Erie, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania, pleaded guilty and was sentenced in federal court to 2 months in jail on his conviction of possession of contraband in prison, United States Attorney David J. Hickton announced today.
United States District Court Judge David S. Cercone imposed the sentence on Ranard Lamar Mitchell, 23. The sentence was imposed to run consecutively to the sentence Mitchell is currently serving.
According to the information presented to the court, on or about November 4, 2014, Mitchell was in possession of contraband, namely a quantity of marijuana and a cell phone.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.U.S. Attorney Hickton commended Officers of the McKean Federal Correctional Institution for the investigation leading to the successful prosecution of Mitchell.
Deported Alien Admits Re-entering U.S. IllegallyRead the Press Release
ERIE, Pa. - A former resident of Atlantida, Honduras, pleaded guilty in federal court to a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
Andres Carranza-Ferrera, 48, 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 or about July 8, 2015, Carranza-Ferrera was found to be unlawfully present within the United States. Carranza-Ferrera had been previously deported and removed from the United States on Aug. 6, 2004. The defendant subsequently reentered the United States, and was found to be present in this country without the permission of the Secretary of the Department of Homeland Security.
Sentencing will be scheduled at a later date. The law provides for a total sentence of 10 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.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Bureau of Customs and Border Protection conducted the investigation that led to the prosecution of Carranza-Ferrera.
Connecticut Man Sentenced to Prison for Fraud SchemeRead the Press Release
Erie, Pa. - A resident of Danbury, Connecticut, has been sentenced in federal court to 12 months and one day in jail on his conviction of conspiracy to commit wire fraud, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Daniel Freeman, 50.
According to information presented to the court, Freeman allowed three bank accounts in his name and under his control to be used as repositories for fraudulently obtained federal tax refunds. Freeman would then withdraw the fraudulently obtained refunds, keep a portion for himself and give the remainder of the money to another co-defendant.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Freeman.
Four Charged with Violating Federal Drug LawsRead the Press Release
PITTSBURGH – Two Pennsylvania residents and two New Yorkers have been charged in an Indictment by a federal grand jury in Pittsburgh with violations of federal narcotics laws, United States Attorney David J. Hickton announced today.
The indictment, returned on Nov.19, named the following people:
- Forrest Gilmore, 20, of New Castle, PA;
- Rondell Evans, 22, of Buffalo, NY;
- Melvin Dorsey-Pace, 23, of New Castle, PA; and
- Jada Davis, 21, of Buffalo, NY.
According to the Indictment, from in and around January, 2015, and continuing thereafter to in and around November, 2015, in the Western District of Pennsylvania and elsewhere, Gilmore, Evans, and Dorsey-Pace conspired with one another and others to possess with intent to distribute and distribute 28 grams or more of cocaine base. Additionally, on or about November 2, 2015, in the Western District of Pennsylvania, Evans and Davis possessed with intent to distribute a sum of cocaine base.
The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, or both for defendants Gilmore, Evans, and Dorsey-Pace. The provides for a maximum total sentence of not more than twenty (20) years, a fine of $1,000,000.00, or both for defendant Davis. 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 Jonathan B. Ortiz is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the New Castle Police Department, and the Lawrence County Drug Task Force conducted the investigation leading to the Indictment in this case. These defendants were prosecuted through a multi-agency federal effort within the Organized Crime Drug Enforcement
Task Force (OCDETF) program. 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. The defendants are presumed innocent unless and until proven guilty.
Former Beaver County Woman Embezzled from Employer to Pay for Personal ExpensesRead the Press Release
PITTSBURGH - A former resident of Beaver County, Pennsylvania, pleaded guilty in federal court to a charge of mail fraud, United States Attorney David J. Hickton announced today.
Maria P. Makozy, 47, of Port St. Lucie, FL, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, Maria Makozy embezzled from her former employer, Keymax Settlement Services, to pay for personal credit card expenses using company checks.
Judge Schwab scheduled the sentencing for March 16, 2016, at 9 a.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Internal Revenue Service-Criminal 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.
Utah Man Admits Responsibility for Interfering with Flight CrewRead the Press Release
PITTSBURGH - A Utah resident pleaded guilty in federal court to a charge of interference with flight crew members and attendants, United States Attorney David J. Hickton announced today.
Steven Douglas Pectol, 40, of Mapleton, Utah, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that, on Oct. 11, 2015, Pectol interfered with the flight crew of US Airways Flight 632 by assaulting and intimidating the flight attendants and crew by disregarding instructions to remain in his seat, making threatening statements, attempting to physically force his way to the front galley of the airplane while pushing one of the attendants, and needing to be physically restrained by attendants and passengers as the plane landed while the defendant attempted to kick and head-butt attendants as he was being restrained. As a result of the defendant’s actions, US Airways Flight 632, flying from Phoenix, Arizona, to New York City, New York, had to be diverted to Pittsburgh International Airport.
Judge Hornak scheduled sentencing for March 16, 2016. 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.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Pectol.
Pittsburgh Man Pleads Guilty to 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 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.
Anthony Donald, 48, 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, Anthony Donald 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 8, 2016. The law provides for a minimum sentence of five years in prison, a maximum sentence of 40 years in prison, a fine of not more than $5,000,000, 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 bond.
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 Anthony Donald.
Former Government Contract Employee Sentenced to Probation for Misusing VA Credit CardRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to a period of three years of probation on his conviction of theft of government property, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Brian R. Kaminski, 31, of Allison Park, PA.
According to information presented to the court, Kaminski was a Contract Specialist employed by the Department of Veteran’s Affairs who was given a Government Purchase Card (a credit card) for use in his duties for those occasions when he needed to make incidental purchases. During the period September through November 2012, Kaminski made a series of 29 unauthorized purchases (in person and online) at four different merchants totaling just over $28,000. Kaminski then took steps to hide what he had done relative to the internal accounting procedures of the VA.
U.S. Attorney Hickton commended the Department of Veteran Affairs - Veterans Affairs Police and the Office of Inspector General for the investigation leading to the successful prosecution of Kaminski.
Former Citizens Bank Branch Manager Facing Federal Fraud ChargesRead the Press Release
PITTSBURGH - A resident of Allegheny County has been indicted by a federal grand jury in Pittsburgh on charges of bank fraud, access device fraud and bank officer embezzlement, United States Attorney David J. Hickton announced today.
The six-count indictment, returned on Nov. 18, named Tara Lynn Petrucci, 36, of Gibsonia, PA, as the sole defendant.
According to the indictment, Petrucci, a former branch manager at the Citizens Bank in Bellevue, Pa., unlawfully obtained Citizens Bank debit cards inadvertently left by customers who used the Bellevue Citizens Bank ATM, used the customer debit cards to make unauthorized purchases of merchandise at retailers such as the Walmart store in Cranberry Township, Pa. and at other retailers. Petrucci also identified Citizens Bank customers who did not regularly manage their accounts, mainly older-aged account holders, and stole funds from their accounts with forged withdrawal slips.
The law provides for a total sentence of 100 years in prison, and a fine of $3,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection 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.
Construction Company Owner Charged with Illegally Obtaining Contracts by Using Minority Business’ Name and RegistrationRead the Press Release
PITTSBURGH - A Washington County resident has been indicted by federal grand jury in Pittsburgh on charges of conspiracy to defraud the United States, wire fraud, mail fraud and money laundering, United States Attorney David J. Hickton announced today.
The 14–count indictment, returned on Nov. 17, named Donald R. Taylor, 76, of Eighty Four, Pa., as the sole defendant.
The indictment charges that from in and around January 2012 and continuing thereafter to in and around February 2014, Taylor and persons and entities known and unknown to the United States Attorney, conspired to defraud the United States, engaged in wire and mail fraud, and engaged in money laundering. The indictment alleges that Taylor was the owner and operator of Century Steel Erectors (CSE) a construction company based in the Western District of Pennsylvania. According to the indictment, CSE used the name and registering information of another company, West Mifflin Construction Company (WMCC), to obtain contracts for services. WMCC is a certified Disadvantaged Business Enterprise (DBE) and as such CSE (a non-DBE) was not permitted to use WMCC's DBE status in order to obtain contracts for work.
The law provides for a total sentence of not more than 215 years in prison, a fine of $300,000, 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 Attorneys Robert S. Cessar and Jonathan B. Ortiz are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the United States Department of Transportation, Office of Inspector General and the Pennsylvania Turnpike Commission conducted the investigation that led to the prosecution of Donald R. Taylor.
Pittsburgh Man Sentenced for Possessing Videos and Images of Child PornographyRead the Press Release
PITTSBURGH – An Allegheny County resident pled guilty and has been sentenced in federal court to one year and one day imprisonment, followed by 10 years supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Matthew Jankowski, 24, formerly of Pittsburgh, Pennsylvania.
According to information presented to the court, on or about June 24, 2014, Jankowski 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.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, Allegheny County District Attorney’s Office, and Indiana County District Attorney’s Office for conducting the investigation leading to the successful prosecution of Jankowski.
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.
Former PA National Guard Commander Sentenced to Probation for Job SchemeRead the Press Release
PITTSBURGH – A former Guardsmen officer at the 171st Air Refueling Wing in Coraopolis, Pa., has been sentenced in federal court to three years’ probation on his conviction of defrauding the United States Air Force and the Air National Guard of tens of thousands of dollars in military pay and benefits, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Gerard J. Mangis, 61, Glenshaw, Pa.
According to information presented to the court, Mangis, a Colonel and former Mission Support Group Commander at the 171st Air Refueling Wing, conspired with Robert St. Clair, a contract employee at the National Guard Bureau and former tech sergeant at the 171st, to defraud the United States Air Force in false claims for military pay between 2002 and 2011. In 2002, Mangis appointed St. Clair to a position at the 171st where Mangis arranged for St. Clair to be enlisted at the 171st in a “no show” position, and enable him to avoid performing required guardsman duties - such as drill weekends and physical tests - while earning valuable military pay and benefits. In exchange, using his authority at National Guard Bureau at Andrews AFB, St. Clair issued streams of military “workdays” to Mangis, which he used to accumulate excessive active and inactive duty military pay between 2006 and 2011.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Air Force Office of Special Investigations and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Gerard J. Mangis.
For-Profit College Company to Pay $95.5 Million to Settle Claims of Illegal Recruiting, Consumer Fraud and Other ViolationsRead the Press Release
WASHINGTON – The United States has reached a landmark global settlement with Education Management Corp. (EDMC), the second-largest for-profit education company in the country, the Department of Justice announced today. The $95.5 million settlement resolves allegations that EDMC violated federal and state False Claims Act (FCA) provisions by falsely certifying that it was in compliance with Title IV of the Higher Education Act (HEA) and parallel state statutes.
“This historic resolution exemplifies the Justice Department’s deep commitment to protecting precious public resources; to defending American consumers; and to standing up for those who are vulnerable to mistreatment, abuse, and exploitation,” said Attorney General Loretta E. Lynch. “Operating essentially as a recruitment mill, EDMC’s actions were not only a violation of federal law but also a violation of the trust placed in them by their students - including veterans and working parents - all at taxpayer expense. In the days ahead, we will continue working with our invaluable partners at the U.S. Department of Education, through initiatives like the inter-agency task force on for-profit education, to ensure that our nation’s aspiring learners are finding and gaining access to educational opportunities that are right for them.”
The primary allegation was that EDMC unlawfully recruited students, in contravention of the HEA’s Incentive Compensation Ban (ICB), by running a high pressure boiler room where admissions personnel were paid based purely on the number of students they enrolled. In addition to resolving these and other FCA claims, the global settlement also encompasses an investigation by a consortium of state Attorneys General, of consumer-fraud allegations involving deceptive and misleading recruiting practices.
“Now more than ever, a college degree is the best path to the middle class, but that path has to be safe for students,” said U.S. Education Secretary Arne Duncan. “This settlement should be a warning to other career colleges out there: We will not stand by while you profit illegally off of students and taxpayers. The federal government will continue to work tirelessly with state attorneys general to ensure that all colleges follow the law.”
EDMC, which is headquartered in Pittsburgh, Pennsylvania, operates nationwide under four post-secondary school brands: the Art Institutes, South University, Argosy University and Brown-Mackie College. Student enrollment across EDMC’s school brands exceeds 100,000 students.
“Companies cannot enrich their corporate coffers at the expense of students seeking a quality education, or on the backs of taxpayers who are funding our critical financial aid programs,” said U.S. Attorney David J. Hickton of the Western District of Pennsylvania. “Today’s global settlement sends an unmistakable message to all for-profit education companies: the United States will aggressively ferret out fraud and protect innocent students and taxpayer dollars from this kind of egregious abuse.”
The settlement resolves four separate FCA lawsuits filed in federal court in Pittsburgh, Pennsylvania, and Nashville, Tennessee, under the qui tam, or whistleblower, provisions of the act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery.
The United States and five states intervened and actively litigated one of those four whistleblower lawsuits, United States ex rel. Washington, in the Western District of Pennsylvania. The United States’ complaint in intervention alleged systemic violations of Title IV of the HEA’s ICB and parallel state provisions, which prohibit schools from paying recruiters based on their success in securing enrollments. Specifically, the United States and the plaintiff states claimed that from 2003 to the present, EDMC falsely certified to the U.S. Department of Education and various state offices of higher education that it was complying with the ICB, in order to be eligible to receive the federal grant and loan dollars that compose the majority of EDMC’s revenue. In reality, according to the United States’ complaint in intervention, EDMC was running a high pressure sales business and paid its recruiters based only on the number of students they enrolled. As a result of these allegedly false certifications, EDMC improperly enriched itself for more than 10 years with federal and state grant and loan dollars. More broadly, EDMC’s alleged conduct resulted in exactly the problems that Congress sought to curtail when it enacted the ICB: the enrollment of students in programs for which they lacked the necessary skills and qualifications, unsustainable student debt and default rates and schools’ pursuit of profits ahead of a legitimate educational mission.
“Improper incentives to admissions recruiters result in harm to students and financial losses to the taxpayers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “This settlement shows that by partnering productively, the federal government and the states’ Attorneys General can put a stop to this type of behavior.”
The global settlement with EDMC also resolves three additional federal FCA lawsuits in which the government did not intervene, all involving various violations of Title IV of the HEA by EDMC.
Finally, the global settlement resolves a consumer fraud investigation by a consortium of 40 state Attorneys General, into EDMC’s deceptive and misleading recruiting practices. The consumer fraud settlement requires EDMC to undertake various compliance obligations, including detailed disclosure obligations to students; prohibitions on deceptive or misleading recruiting practices and oversight by an administrator to ensure compliance.
“This civil enforcement action holds EDMC accountable for what we allege were unfair and deceptive recruitment and enrollment practices,” said Iowa Attorney General Tom Miller. “EDMC’s practices were unfair to our state’s students, and they were also unfair to our nation’s taxpayers who backed many of these federal student loans that were destined to fail. This is a rigorous agreement that not only provides some relief to a large number of former students through loan forgiveness, but helps ensure that the company will make substantial changes to its business practices for future students.”
The global settlement amount of $95.5 million reflects EDMC’s financial condition and current ability to pay. The settlement proceeds will be shared among the United States, the co-plaintiff states and the whistleblowers and their counsel in the four FCA cases, and includes funds allocated for the compliance expenses of the state consumer fraud settlement, including the costs of the administrator and the acquisition and use of a sophisticated voice analytics system to record and analyze recruiters’ calls with students. The United States will receive $52.62 million from the settlement, and will pay $11.3 million collectively to the relators in the four qui tam cases.
The FCA lawsuits were handled by Assistant U.S. Attorneys Michael A. Comber, Christy C. Wiegand, Paul E. Skirtich and Colin J. Callahan of the U.S. Attorney’s Office of the Western District of Pennsylvania, Assistant U.S. Attorney Christopher Sabis of the U.S. Attorney’s Office of the Middle District of Tennessee, and Trial Attorney Jay D. Majors of the Commercial Litigation Branch of the Civil Division of the Department of Justice, with assistance from the U.S. Department of Education’s Office of General Counsel and Office of Inspector General.
The cases are captioned United States ex rel. Washington et al. v. Education Management Corp., et al., Civ. No. 07-461 (WDPA); United States ex rel. Sobek v. Education Management Corp., et al., Civ. No. 10-0131 (WDPA); United States ex rel. Laukaitis et al. v. Education Management Corp., et al., Civ. No. 11-601 (WDPA); and United States ex rel. Rainwater v. Education Management Corp., et al., Case No. 3:12-CV-01008 (MDTN). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Two Charged with Hiding a FugitiveRead the Press Release
ERIE, Pa. - Two former residents of Erie, Pennsylvania have been indicted by a federal grand jury in Erie on charges of concealing a person from arrest and accessory after the fact, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on Nov. 10 and unsealed today, named Damonique Shakara Henderson, 23, and Sasia V. Jones, 28, as defendants.
According to the indictment presented to the court, between Feb. 26, 2015 and May 20, 2015, Henderson and Jones harbored and concealed Ricky Rashad Pullium, a person who had an outstanding arrest warrant for a charge of possession of a firearm by a convicted felon, in order to prevent the discovery and arrest of Pullium. Henderson and Jones are also charged with being accessories after the fact by receiving, relieving, comforting and assisting Pullium in order to hinder and prevent Pullium’s apprehension, trial and punishment. According to information presented to the Court, the defendants are alleged to have harbored Pullium fully knowing that he was wanted on the federal charges, in part, by renting a vehicle for him, transporting him out of the Erie area to prevent his discovery and arrest, and by providing further assistance to Pullium in order to hinder his apprehension.
The law provides for a maximum total sentence of 10 years in prison, a fine of $375,000, 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 defendants.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The United States Marshals Service, the Federal Bureau of Investigation, and the Pennsylvania State 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.
Felon Pleads Guilty to Drug and Gun ChargesRead the Press Release
PITTSBURGH - A Pittsburgh resident pleaded guilty in federal court to charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
Jeremiah Pashuta, 36, pled guilty to two counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on Aug. 6, 2013, Pashuta possessed a sawed-off shotgun and two semi-automatic pistols on the day Pittsburgh Police Officers executed a search warrant at his residence. Police also located approximately 649 stamp bags containing a total of approximately 13 grams of heroin, thousands of dollars in cash, a drug scale and records of drug debts.
Pashuta has had multiple state court convictions for drug dealing, illegal gun possession and threats in the past. Federal law makes it illegal for a person to possess a firearm or ammunition after a state court conviction for an offense carrying a maximum penalty of more than 2 years in prison.
Judge Hornak scheduled sentencing for June 15, 2016, at 9:30 a.m. The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of $2,250,000 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 of the defendant.
Assistant United States Attorneys Cindy K. Chung and Ross E. Lenhardt are prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation leading to the prosecution of Pashuta. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.