Western District of Pennsylvania
Press releases recorded for this federal judicial district.
Washington, Pa., Man Pleads Guilty to Selling Prescription DrugsRead the Press Release
PITTSBURGH - A resident of Washington, Pennsylvania pleaded guilty in federal court to charges of possession with intent to distribute and distribution of Oxycodone, Opana and Morphine, all Schedule II controlled substances, and obtaining prescriptions by fraud, United States Attorney David J. Hickton announced today.
Dennis DeVenney, Sr. pleaded guilty to the two felony counts before United States District Judge Cathy Bissoon.
According to information presented to the Court at the guilty plea, Devenney sold controlled substances, Oxycodone, Opana and Morphine, for cash.
Judge Bissoon scheduled sentencing for March 21, 2016. The law provides for a maximum total sentence of 24 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.
Pending sentence, the court released DeVenney, Sr. on bond.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Drug Enforcement Adminstration conducted the investigation leading to the charges in this case.
Pittsburgh Man Admits Role in Detroit to Pittsburgh Oxycodone Distribution SchemeRead the Press Release
PITTSBURGH - A Pittsburgh resident pleaded guilty in federal court to a charge of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
Max Matthew Guardalabene, 31, pleaded guilty to one count of conspiracy to distribute oxycodone before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Guardalabene was a lower-level distributor for a Detroit-to-Pittsburgh oxycodone ring operated by Telano White and Brandy Bara.
Judge Fischer scheduled sentencing for 9 a.m. on March 23, 2016. The law provides for a maximum total sentence of 20 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 Stephen R. Kaufman is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Federal Bureau of Investigation, Pennsylvania Attorney General’s Office, Pennsylvania State Police, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Guardalabene.
Cranberry Twp. Woman Charged with Defrauding Allegheny Valley BankRead the Press Release
PITTSBURGH – A Butler County resident has been indicted by a federal grand jury in Pittsburgh on a charge of bank fraud, United States Attorney David J. Hickton announced today.
The one-count indictment named Jennifer Colamarino, 33, of Cranberry Township, Pa., as the sole defendant.
According to the indictment, from October 2014 through March 2015, Colamarino defrauded Allegheny Valley Bank by using a closed PNC Bank account to make approximately 94 online payments towards her husband’s Allegheny Valley Bank credit card account. Colamarino then used the Allegheny Valley Bank credit card at various locations to make numerous purchases. During the relevant time period, Colamarino made no legitimate payments towards the Allegheny Valley Bank credit card account, and Allegheny Valley Bank suffered a loss of approximately $62,842.57 as a result of the fraud.
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 Lee J. Karl is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Rankin Woman Pleads Guilty in Sex Trafficking SchemeRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy to commit sex trafficking, United States Attorney David J. Hickton announced today.
Kiari Nicole Day, 26, of Rankin, Pennsylvania, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, in February 2015, Day knowingly entered into an agreement to conspire to recruit for sex trafficking four female minors who had not attained the age of 18 years.
Judge Arthur J. Schwab scheduled sentencing for Dec. 1, 2015, at 9 a.m. The law provides for a sentence of up to life, a fine of $250,000.00, and a term of supervised release of no more than five years, or any or all. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorneys Jessica Lieber Smolar and Katherine A. King are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Day.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc/.
Sharpsville Man Named in Six-Count Indictment Charging Sexual Exploitation of a MinorRead the Press Release
PITTSBURGH - A resident of Mercer County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of production, distribution and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The six-count indictment, returned on Nov. 4, named Jason D. Lambert, 40, of Sharpsville, Pennsylvania, as the sole defendant.
According to the indictment, Lambert, on or about May 11, 2015, employed, used, persuaded, induced, enticed, and coerced a child victim to engage in sexually explicit conduct for the purpose of producing a video of such conduct, and then, on or about June 1, 2015, used a second child victim to engage in sexually explicit conduct to produce still photographs of the conduct. The indictment further charges that Lambert, in the morning, the late afternoon, and the evening of June 2, 2015, distributed by computer still images depicting minors engaged in sexually explicit conduct to an individual in Washington, D.C. Lastly, the indictment charges that on June 3, 2015, Lambert unlawfully possessed, in computer graphics files, videos and photographs depicting minors engaged in sexually explicit conduct.
The law provides for a maximum total sentence of 45 years in prison, a fine of $1,500,000.00, 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 Carolyn J. Bloch 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.
Pittsburgh Man Sentenced to 4 Years in Prison, Ordered to Pay Restitution for Possessing Child PornographyRead the Press Release
PITTSBURGH, Pa. - A former resident of Allegheny County, Pennsylvania, was sentenced in federal court to 48 months imprisonment, followed by eight years supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor. The defendant was also ordered to pay $ 11,881.28 in restitution to five victims, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Christopher J. Bailey, 50, of Pittsburgh, Pennsylvania.
According to information presented to the court, Bailey, on or about Dec. 23, 2013, 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 and the Pennsylvania Office of Attorney General for conducting the investigation that led to the successful prosecution of Bailey.
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.
New Castle Man Pleads Guilty to Robbing Two Neighborhood BanksRead the Press Release
PITTSBURGH, Pa. - A resident of New Castle, Pennsylvania, pled guilty in federal court to charges of bank robbery, United States Attorney David J. Hickton announced today.
Calvin Douglas Smith, 43, formerly of New Castle, Pennsylvania, pleaded guilty to two counts before United States District Mark R. Hornak.
In connection with the guilty plea, the court was advised that on Nov. 5, 2014, Smith robbed Huntington Bank located at 101 E. Washington St., in New Castle, and on Dec. 2, 2014, Smith robbed First Commonwealth Bank located at 27 E. Washington St., in New Castle. The banks are both insured by the Federal Deposit Insurance Corporation.
Judge Hornak scheduled sentencing for March 11, 2016, at 1:30 p.m. For each count, the law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the New Castle City Police Department conducted the investigation leading to the prosecution of Smith.
Grove City Man Admits He Took His Dead Mother’s Social Security BenefitsRead the Press Release
PITTSBURGH -- A Mercer County resident pleaded guilty in federal court to a charge of theft of government property, United States Attorney David J. Hickton announced today.
Alexander Viskovatoff, 57, of Grove City, PA, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that in and around January 2011, through in and around September 2012, Viskovatoff converted to his own use approximately $38,000 in funds of the Social Security Administration that had been intended to be benefits for his deceased mother.
Judge Bissoon scheduled sentencing for March 17, 2016, at 2:15 p.m. The law provides for a total sentence of ten 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 Shardul S. Desai is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General conducted the investigation that led to the prosecution of Viskovatoff.
Federal Detainee Charged with Solicitation to Commit Crimes of ViolenceRead the Press Release
CLEVELAND – A Pittsburgh man currently being detained in federal custody in Ohio has been indicted by a federal grand jury in Cleveland, Ohio, on charges of solicitation to commit crimes of violence, United States Attorney David J. Hickton of the Western District of Pennsylvania and United States Attorney Steven M. Dettelbach of the Northern District of Ohio announced today.
The two-count indictment, returned on Nov. 4, named Price Montgomery, 35, formerly of Pittsburgh, Pa., as the sole defendant.
According to the indictment, from April 2015 until August 2015, in the Northern District of Ohio, Montgomery solicited or endeavored to persuade two persons known to the grand jury as “P1” and “B” to kill a person known to the grand jury as IV-1 (Intended Victim 1). Additionally, from April 2015 until August 2015, in the Northern District of Ohio, Montgomery solicited or endeavored to persuade “P1” to kill a person known to the grand jury as IV-2 (Intended Victim 2).
According to a criminal complaint filed on Oct. 30 in the Northern District of Ohio, Montgomery solicited the murder of IV-1 because Montgomery believed that IV-1 was cooperating with law enforcement in a money laundering investigation against him. In addition, the complaint states that Montgomery solicited the murder of IV-2 in retaliation for her suspected cooperation or testimony against him.
The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $250,000 or both at each of the two counts. 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.
Montgomery is currently incarcerated at the Northeast Ohio Correctional Center in Youngstown, Ohio, on federal drug trafficking and firearms charges out of the Western District of Pennsylvania.
Assistant U.S. Attorney Shaun E. Sweeney from the Western District of Pennsylvania has been specially designated to handle this case for the government.
The Western Pennsylvania offices of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation and the U.S. Marshals Service, along with the Pennsylvania Office of the Attorney General and the Pittsburgh Bureau of Police, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Sharon, Pa., Tobacco Businesses, Owner and Manager Plead Guilty to Fraud, Filing False ReportsRead the Press Release
PITTSBURGH – Residents of Ohio and New York, along with two tobacco wholesale businesses in Sharon, Pennsylvania, pleaded guilty in federal court to charges of mail fraud and failure to file required reports with state revenue authorities, United States Attorney David J. Hickton announced today.
Raid Zaghari, 43, of Brooklyn, New York, USA Trading Corporation-I and USA Trading Corporation-V, both located in Sharon, Pennsylvania, pleaded guilty to mail fraud before United States District Judge Cathy Bissoon.
Tareq Alasadi, a/k/a Tareq Alasade, 41, of Youngstown, Ohio, pleaded guilty before United States District Judge Cathy Bissoon to failure to file a report setting forth the amount of tobacco product sold to a North Carolina distributor.
According to information presented to the Court at the guilty pleas by Assistant U.S. Attorney Stephen R. Kaufman, Zaghari, USA Trading Corporation-I and USA Trading Corporation-V used commercial interstate carriers for the purpose of executing a scheme to defraud. Non-cigarette tobacco, known in the industry as “other tobacco products” or “OTP,” was sold by the defendants from their warehouse in Sharon, Pennsylvania, to distributors in New York and North Carolina, states that impose an excise tax on OTP. Pennsylvania is the only state in the nation which does not tax the wholesale distribution of OTP. In the mail fraud schemes, the defendants agreed not to report the sales to the taxing authorities in those other states, as required by law, which caused significant loss of tax revenue to the those states. USATC-I and USATC-V admitted that the loss was $3 million in taxes.
Alasadi failed to file, with the North Carolina Department of Revenue, the required notifications pertaining to the interstate distribution of taxable tobacco products to a customer in North Carolina by USATC-I.
Judge Bissoon scheduled sentencing for March 2, 2016 for Alasadi, March 9, 2016 for Zaghari, and April 7, 2016 for USA Trading Corporation-I and USA Trading Corporation-V. The law provides for a maximum total sentence of three years in prison, a fine of $250,000 or both for Alasadi and Zaghari. The law provides for a maximum total sentence of a term of probation, an order of criminal forfeiture, and restitution for USA Trading Corporation-I and USA Trading Corporation-V. 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 Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the charges in this case.
West Homestead Felon Charged with Illegally Possessing FirearmRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, 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, returned on Oct. 27, named Latel Tyrone Smith, 37, of West Homestead, Pennsylvania, as the sole defendant.
According to the indictment, on or about June 13, 2015, Smith possessed a firearm as a convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm.
The law provides for a maximum total sentence of not less than 15 years imprisonment and up to life, a fine of $250,000.00, 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 of the defendant.
Assistant United States Attorney Cindy K. Chung 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 West Mifflin Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the State Security and Investigative Services (SSIS) 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.
Postal Employee Pleads Guilty to Stealing from MailRead the Press Release
JOHNSTOWN, Pa. - A resident of Summerhill, Pa., pleaded guilty in federal court in Johnstown to charges of theft of mail by a postal employee, United States Attorney David J. Hickton announced today.
Kelly Gruss, 36, of Summerhill, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Sept. 22, 2014, Gruss stole $10, and on Sept. 25, 2014, she stole $20 from greeting cards sent via U.S. mail.
Judge Gibson scheduled sentencing for April 7, 2016, at 10 a.m. The law provides for a maximum total sentence of 10 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 John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Office of Inspector General of the United States Postal Service conducted the investigation that led to the prosecution of Gruss.
Clearfield County Man Admits Possessing Controlled SubstanceRead the Press Release
JOHNSTOWN, Pa. - A resident of Luthersburg, Pa., pleaded guilty in federal court in Johnstown to a charge of possession of a controlled substance, United States Attorney David J. Hickton announced today.
Thomas J. Desmond, 24, of Luthersburg, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on March 13, 2014, Desmond possessed a quantity of 3,4 methylenedioxymethcathinone (methylone) hydrochloride with the intent to distribute it.
Judge Gibson scheduled sentencing for April 6, 2016, at 1:30 p. m. The law provides for a maximum total sentence of 20 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 Drug Enforcement Administration, United States Postal Inspection Service, Pennsylvania State Police (Dubois Barracks), and Homeland Security Investigations (Pittsburgh Office) conducted the investigation that led to the prosecution of Desmond.
Inmate Sentenced to 30 Days in Prison for Possessing PhoneRead the Press Release
JOHNSTOWN, Pa. – Ivan Hernandez pleaded guilty and was sentenced in federal court to 30 days in prison with no supervised release to follow, on his conviction of possession of contraband in prison while an inmate at the Moshannon Valley Correctional Center, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Ivan Hernandez, 33.
According to information presented to the Court, on July 30, 2013, Hernandez possessed a phone, which is a prohibited object under prison regulations.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
Mr. Hickton commended the Office of the Inspector General of the United States Department of Justice for the investigation leading to the successful prosecution of Hernandez.
Pittsburgh Man Pleads Guilty to Counterfeit Currency ChargesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of conspiracy, making counterfeit currency and passing counterfeit money, United States Attorney David J. Hickton announced today.
Robert W. Jackson, Jr., a/k/a Flace Rob, a/k/a Black Rob, 26 of Pittsburgh, PA pleaded guilty to six counts before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that in and around May 2013, Jackson and others conspired to make and pass counterfeit currency, and from on or about January 14, 2014, January 23, 2014, and January 26, 2014, Jackson passed counterfeit money.
Judge Conti scheduled sentencing for Feb.5, 2016 at 3:30 p.m. The law provides for a total sentence of 105 years in prison, a fine of $1,500,000, 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.
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 Jackson.
Philadelphia Man Sentenced to Prison for Drug Law ViolationsRead the Press Release
JOHNSTOWN, Pa. - A resident of Philadelphia, Pa., has been sentenced in federal court to 30 months in prison and three years’ supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Paul A. Robinson, Jr., 33, of Philadelphia, Pa.
According to information presented to the court, from Jan. 31, 2013, to April 23, 2013, Robinson conspired to distribute less than 28 grams of cocaine base, in the form commonly known as “crack.” Robinson also distributed less than 28 grams of cocaine base on Jan. 31, 2013, and Feb. 12. 2013.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Robinson.
Man Pleads Guilty to Selling Home-Slaughtered PoultryRead the Press Release
PITTSBURGH - A Pittsburgh resident pleaded guilty in federal court to a charge of transporting poultry without inspection, United States Attorney David J. Hickton announced today.
Xia Vue, 84, of Pittsburgh, PA, pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill.
In connection with the guilty plea, the court was advised that Vue had been slaughtering poultry at a dilapidated residential home and was selling the poultry in commerce to retail markets and individual customers. The poultry products sold by the defendant had not been inspected by the United States Department of Agriculture, as required by law.
Judge Cohill scheduled sentencing for Feb. 18, 2016. The law provides for a total sentence of one year in prison, a fine of $1000, 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 on bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The United States Department of Agriculture, Office of the Inspector General conducted the investigation that led to the prosecution of Xia Vue.
Leader of Rx Pill Ring Sentenced to 10 Years in Federal PrisonRead the Press Release
PITTSBURGH – A man imprisoned in Michigan has been sentenced in federal court to 10 years imprisonment and three years supervised release, on his conviction of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Telano White, 33, of Jackson, Michigan.
According to information presented to the court, Telano White was the leader of the Detroit to Pittsburgh oxycodone distribution network, even though he was incarcerated for nearly the entire period of the conspiracy. White’s wife, Brandy Bara White, received deliveries of oxycodone 30 mg. pills delivered by Tarrance Mays, Jr. and LaMont Whitfield, two Detroit residents who previously pleaded guilty for their roles in the conspiracy.
Prior to imposing sentence, Judge Fischer stated that White has admitted to being the leader of the oxycodone ring that brought large quantities of pills from Detroit to Pittsburgh. She said that it was an “affront to the justice system” that he orchestrated the criminal activity from jail.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration, Federal Bureau of Investigation, Pennsylvania Attorney General’s Office, Pennsylvania State Police and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of White.
Payroll Company Consultant Charged in $350K Fraud SchemeRead the Press Release
PITTSBURGH – A resident of Harrisburg, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on charges of wire fraud, damaging a computer and engaging in an unlawful monetary transaction, United States Attorney David J. Hickton announced today.
The thirteen-count indictment, returned on Oct. 27, named William Simon Sullivan, Jr., 42, of Harrisburg, Pennsylvania, as the sole defendant.
According to the indictment, Sullivan worked as a consultant for a payroll services company located in Pittsburgh, Pennsylvania that provides clients with various financial services including payroll and tax escrow processing services. From January 12, 2013, and continuing to January 24, 2014, Sullivan executed a scheme to defraud the payroll company and its clients. Using his position as a consultant to the payroll company and his remote access to the payroll company’s computer network, Sullivan fraudulently altered the payroll company’s daily computer files and caused over $350,000 to be transferred via ACH transfers from bank accounts of the payroll company and its clients to Sullivan’s personal bank accounts, without the knowledge, approval or authorization of the payroll company or its clients. Sullivan also engaged in an unlawful monetary transaction when he withdrew funds in the amount of $21,615.53 from his bank account and purchased a 2014 Jeep Grand Cherokee.
Sullivan faces a maximum sentence of 20 years imprisonment and a fine of $250,000 for each of the seven counts charging him with wire fraud; a maximum sentence of ten years imprisonment and a fine of $250,000 for each of the five counts charging him with damaging a computer; and a maximum sentence of ten years imprisonment and a fine of $250,000 for the one count charging him with engaging in a monetary transaction. 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 Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Charged with June Robbery of North Hills BankRead the Press Release
PITTSBURGH - A Pittsburgh resident of has been indicted by a federal grand jury in Pittsburgh on a charge of bank robbery, United States Attorney David J. Hickton announced today.
The one-count indictment named Boe Keenan, 33, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment presented to court, on or about June 30, 2015, Keenan stole $1,725 from the First National Bank located at 202 Devine Drive, Wexford, Pennsylvania.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Ryan K. Hart is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Northern Regional 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.
Philadelphia Man Pleads Guilty to Federal Drug Charges in ErieRead the Press Release
ERIE, Pa. - A former resident of Philadelphia, Pennsylvania, pleaded guilty in federal court to a charge of violating federal drug laws, United States Attorney David J. Hickton announced today.
Reinaldo Rosario Febus, 51, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Febus conspired with two co-defendants to distribute and possess with intent to distribute five hundred grams or more of cocaine. According to information presented in court, in March 2014, investigators seized packaging material from a kilogram of cocaine in the vicinity of a location on Huron Street, Erie, Pennsylvania. On March 20, 2014, investigators seized two ounces of cocaine after it had been sold by one of Febus’ co-conspirators.
Judge Cercone scheduled sentencing for March 7, 2016 at 12:45 p.m. The law provides for a total sentence of 40 years in prison, a fine of $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, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The EAGLE Task Force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, Bureau of Narcotics Investigation and the Erie Police Department conducted the investigation that led to the prosecution of Febus.
ATF Investigation Leads to Charges Against Man from Elizabeth, Pa.Read the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of malicious destruction of property by fire, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Oct. 20 and unsealed today, named Jeffrey Tedesco, 36, of, Elizabeth, Pennsylvania, as the sole defendant.
According to the Indictment, on or about Feb. 13, 2015, Tedesco set fire to a residential rental home located in Forward Township, Pennsylvania.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, along with the Allegheny County Fire Marshal’s Office and Allegheny County 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.
Wilkins Twp. Woman Sentenced to 7 Years in Prison for Distributing Prescription Pain PillsRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to seven years in prison to be followed by three years of supervised release, on her conviction of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Brandy Marie Bara, a/k/a Brandy Marie White, 34, of Turtle Creek, PA.
According to information presented to the court, Telano White was the leader of the Detroit to Pittsburgh oxycodone distribution network, even though he was incarcerated for nearly the entire period of the conspiracy. White’s wife, Brandy Bara White, received deliveries of oxycodone 30 mg. pills delivered by Tarrance Mays, Jr. and LaMont Whitfield, two Detroit residents who previously pleaded guilty for their roles in the conspiracy. Bara was the primary distributor of the pills. Bara agreed that she was responsible for illegally distributing between approximately 15,000 and 50,000 oxycodone 30 mg. pills in the Pittsburgh area.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration, Federal Bureau of Investigation, Pennsylvania Attorney General’s Office, Pennsylvania State Police, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Bara.
Felon Charged with Illegally Possessing Firearm and AmmunitionRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on a charge of Possession of a Firearm and Ammunition by a Convicted Felon, United States Attorney David J. Hickton announced today.
The one-count indictment, returned in Oct. 13, named Larry Christopher Roberts, 47, of Verona, Pennsylvania, as the sole defendant.
According to the indictment, on or about June 4, 2015, Roberts possessed a firearm and ammunition as a convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm.
The law provides for a maximum total sentence of not less than 15 years imprisonment and up to life, a fine of $250,000.00, 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 of the defendant.
Assistant United States Attorney Cindy K. Chung 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 Federal Bureau of Investigation and the Allegheny County Sheriff’s Office conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Woman Sentenced to 5 Years in Prison for Transporting Proceeds of Cocaine TraffickingRead the Press Release
PITTSBURGH - A California woman has been sentenced in federal court to five years in prison on her 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 Misha Cannon, 49, of San Bernardino, Calif.
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, Misha Cannon was intercepted over the wire conspiring with others, including her brother, Lionel Cannon, 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. During the conspiracy, Misha Cannon was responsible for transporting proceeds of the cocaine trafficking from the Western District of Pennsylvania to California. In August 2014, Misha Cannon also helped Lionel Cannon obtain a new supply of cocaine and conducted a deal for the purchase of one kilogram of cocaine, which was later seized by law enforcement.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to achieve the goals 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 Bureau of Police for the investigation leading to the successful prosecution of Cannon.
Pittsburgh Man Pleads Guilty in Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has pleaded guilty in federal court to a charge of fraud conspiracy, United States Attorney David J. Hickton announced today.
Duane Jackson, 30, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Jackson and his conspirators agreed to defraud account holders at Pittsburgh area banks by a remote deposit, mobile-banking scheme in which Jackson and conspirators deposited fictitious checks into victim accounts, and later withdrew cash at the Rivers Casino and ATMs.
Judge Cercone scheduled the sentencing for Feb. 17, 2016, at 1 p.m. The law provides for a maximum total sentence of not more than 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 offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of Jackson. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partners in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the Department of Homeland Security, the United States Secret Service, the United States Postal Inspection Service, and the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Penn Hills Man Sentenced to 3 Years in Federal Prison for Cocaine Trafficking SchemeRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 37 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 Abdul Boyd, 39, of Penn Hills, Pa.
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, Abdul Boyd 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 Bureau of Police for the investigation leading to the successful prosecution of Boyd.
Deported Jamaican Re-entered United States without Homeland Security PermissionRead the Press Release
JOHNSTOWN, Pa. - A citizen of Jamaica pleaded guilty in federal court to a charge of re-entry of an illegal alien, United States Attorney David J. Hickton announced today.
Hubert E. Minott, 31, of North Miami Beach, Fla., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Feb. 6, 2014, Minott, an alien who had been deported from the United States on June 12, 2008, was found in Somerset County, Pa. He had unlawfully re-entered this country without receiving permission from the Secretary of the Department of Homeland Security to do so.
Judge Gibson scheduled sentencing for Feb. 19, 2016, at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Department of Homeland Security/Immigration and Customs Enforcement conducted the investigation that led to the prosecution of Minott.
Reality TV Performer Charged with Defrauding Bankruptcy Court by Hiding Assets and Lying about IncomeRead the Press Release
PITTSBURGH - A reality television performer has been indicted by a federal grand jury in Pittsburgh on charges of bankruptcy fraud, concealment of bankruptcy assets, and false bankruptcy declarations, United States Attorney David J. Hickton announced today.
The 20-count indictment, returned on Oct. 13, named Abigale Lee Miller, 50, as the sole defendant.
“Criminal prosecution is appropriate when debtors corrupt the bankruptcy process through deceit and lies before the court,” said U.S. Attorney Hickton.
“Federal bankruptcy proceedings can be a lifesaver for honest individuals overwhelmed by debt resulting from any number of legitimate reasons, but allegations of fraud and abuse threaten the integrity of the bankruptcy process and the public’s trust in it. We take our responsibility to pursue allegations of bankruptcy fraud seriously,” said Special Agent in Charge Scott S. Smith of the Federal Bureau of Investigation’s Pittsburgh Division.
“Fraud and dishonesty in bankruptcy proceedings undermines the integrity of these important proceedings and especially hurts the creditors and American Taxpayers,” added Internal Revenue Service Criminal Investigation Special Agent in Charge Akeia Conner. “Concealing assets from the Court and not paying taxes is a gross violation of civic duty and IRS Criminal Investigation will work diligently with our law enforcement partners to pursue those who do so.”
“The investigation of Abigale Lee Miller demonstrates our commitment to identify and prosecute those who commit bankruptcy fraud,” stated Acting Inspector in Charge, David McGinnis, of the U.S. Postal Inspection Service - Pittsburgh Division.
According to the indictment, after filing a Petition to Reorganize her dance studio in December, 2010, Miller then schemed to defraud the bankruptcy court by concealing income she earned between 2012 and 2013 from her performances on the reality TV show “Dance Moms” and related spinoff TV shows, as well as from Masterclass dance sessions and merchandise and apparel sales. The indictment alleges that Miller created bank accounts to hide the income, and instructed others to conceal certain income from the bankruptcy court and Trustee. It is also alleged that Miller made numerous false declarations in monthly operating reports which did not report certain income or underreported certain other business income. The indictment further alleges Miller concealed income totaling approximately $755,492.85 from the Trustee and creditors, and gained favorable terms to restructure debt from her fraudulent acts.
The law provides for a total sentence of five years in prison, and a fine of $250,000 or both for each count of the indictment. 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 Trustee, the Federal Bureau of Investigation, 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.
AttachmentsIndictment
Monongahela Man Unlawfully Received Social Security BenefitsRead the Press Release
PITTSBURGH - A resident of Washington County, Pennsylvania, pleaded guilty in federal court to one count of theft of government property, United States Attorney David J. Hickton announced today.
Gregory Kavalec, 69, of Monongahela, Pa., pleaded guilty to one count before United States District Judge David Cercone.
In connection with the guilty plea, the court was advised that from on or about Oct. 3, 2013, to on or about Sept. 3, 2014, Kavalec unlawfully received property of the United States, that is, OASDI Social Security benefits in the amount of approximately $17,985.
Judge Cercone scheduled sentencing for Feb. 17, 2016, at 10 a.m. The law provides for a maximum total sentence of not more than 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.
Pending sentencing, the Judge continued the defendant on bond.
Assistant United States Attorney Margaret E. Picking is prosecuting this case on behalf of the government.
The Social Security Administration-Office of Inspector General conducted the investigation leading to the indictment in this case.
Judge Sentences Bedford Man to 12 Years in Prison for Possessing, Distributing Child PornographyRead the Press Release
JOHNSTOWN, Pa. – A resident of Bedford, Pa., has been sentenced in federal court to 144 months in prison, 10 years’ supervised release and must register as a convicted sex offender under the Sex Offender Registration and Notification Act (SORNA) on his conviction of distribution and possession of child pornography, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Wade C. Baer, 32.
According to information presented to the court, on Feb. 19, 2013, Baer distributed a picture via the Internet which depicted a minor engaging in sexually explicit conduct, and on March 7, 2013, he knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
Mr. Hickton commended the Southwest Computer Crime Task Force of the Pennsylvania State Police for the investigation leading to the successful prosecution of Baer.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Bugat Botnet Administrator Arrested and Malware DisabledRead the Press Release
WASHINGTON – A sophisticated malware package designed to steal banking and other credentials from infected computers has been disrupted, and charges have been filed in the Western District of Pennsylvania against a Moldovan administrator of the botnet known as “Bugat,” “Cridex” or “Dridex.” Actions taken by the U.K. and the U.S. substantially disrupted the botnet.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney David J. Hickton of the Western District of Pennsylvania and Special Agent in Charge Scott S. Smith of the FBI’s Pittsburgh Division made the announcement today.
Andrey Ghinkul, aka Andrei Ghincul and Smilex, 30, of Moldova, was charged in a nine-count indictment unsealed today in the Western District of Pennsylvania with criminal conspiracy, unauthorized computer access with intent to defraud, damaging a computer, wire fraud and bank fraud. Ghinkul was arrested on Aug. 28, 2015 in Cyprus. The United States is seeking his extradition.
“The steps announced today are another example of our global and innovative approach to combatting cybercrime,” said Assistant Attorney General Caldwell. “Our relationships with counterparts all around the world are helping us go after both malicious hackers and their malware. The Bugat/Dridex botnet, run by criminals in Moldova and elsewhere, harmed American citizens and entities. With our partners here and overseas, we will shut down these cross-border criminal schemes.”
“Through a technical disruption and criminal indictment we have struck a blow to one of the most pernicious malware threats in the world,” said U.S. Attorney Hickton.
“Cyber criminals often reach across international borders, but this operation demonstrates our determination to shut them down no matter where they are,” said Executive Assistant Director Robert Anderson Jr. of the FBI’s Criminal, Cyber, Response and Services Branch. “The criminal charges announced today would not have been possible without the cooperation of our partners in international law enforcement and private sector. We continue to strengthen those relationships and find innovative ways to counter cyber criminals.”
According to the indictment, Ghinkul was part of a criminal conspiracy that disseminated Bugat, which is a multifunction malware package that automates the theft of confidential personal and financial information, such as online banking credentials, from infected computers through the use of keystroke logging and web injects. It is generally distributed through “phishing,” an email fraud method where legitimate-looking emails are distributed to victims in an attempt to obtain personal or financial information. Bugat is specifically designed to defeat antivirus and other protective measures employed by victims. The FBI estimates at least $10 million in direct loss domestically can be attributed to Bugat.
The indictment alleges that Ghinkul and his co-conspirators used the malware to steal banking credentials and then, using the stolen credentials, to initiate fraudulent electronic funds transfers of millions of dollars from the victims’ bank accounts into the accounts of money mules, who further transferred the stolen funds to other members of the conspiracy. Specifically, according to the indictment, on Dec. 16, 2011, Ghinkul and others allegedly attempted to cause the electronic transfer of $999,000 from the Sharon, Pennsylvania, City School District’s account at First National Bank to an account in Kiev, Ukraine, using account information obtained through a phishing email. In addition, Ghinkul and others allegedly caused the international transfer on Aug. 31, 2012, of $2,158,600 from a Penneco Oil account at First Commonwealth Bank to an account in Krasnodar, Russia, and the international transfer on Sept. 4, 2012, of $1,350,000 from a Penneco Oil account at First Commonwealth Bank to an account in Minsk, Belarus. Finally, the indictment alleges that on Sept. 4, 2012, Ghinkul attempted to cause the electronic transfer of $76,520 from a Penneco Oil account at First Commonwealth Bank to an account in Philadelphia. In all three instances, the company’s account information was allegedly obtained through a phishing email sent to a Penneco Oil employee.
In addition to the criminal charges announced today, the United States obtained a civil injunction in the Western District of Pennsylvania authorizing the FBI to take measures to redirect automated requests by victim computers for additional instructions to substitute servers.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until and unless proven guilty.
The investigation is being conducted by the FBI. Other agencies and organizations partnering in this effort include: the Department of Homeland Security’s U.S.-Computer Emergency Readiness Team (US-CERT), the United Kingdom’s National Crime Agency, Europol’s EC3, German Bundeskriminalamt (BKA), Dell SecureWorks, Fox-IT, S21sec, Abuse.ch, the Shadowserver Foundation, Spamhaus and the Moldovan General Inspectorate of Police Centre for Combating Cyber Crime, the Prosecutor General’s Office Cyber Crimes Unit and the Ministry of Interior Forensics Unit.
The case is being prosecuted by Assistant U.S. Attorneys Mary McKeen Houghton and Margaret E. Picking of the Western District of Pennsylvania. The civil action to disrupt the Bugat malware is led by Senior Trial Attorney Richard D. Green of the Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Michael A. Comber of the Western District of Pennsylvania. The Criminal Division’s Office of International Affairs provided significant assistance throughout the criminal and civil investigations.
Victims of Bugat/Dridex may use the following webpage created by US-CERT for assistance in removing the malware: https://www.us-cert.gov/dridex.
AttachmentsIndictment
Bugat Botnet Administrator Arrested and Malware DisabledRead the Press Release
A sophisticated malware package designed to steal banking and other credentials from infected computers has been disrupted, and charges have been filed in the Western District of Pennsylvania against a Moldovan administrator of the botnet known as “Bugat,” “Cridex” or “Dridex.” Actions taken by the U.K. and the U.S. substantially disrupted the botnet.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney David J. Hickton of the Western District of Pennsylvania and Special Agent in Charge Scott S. Smith of the FBI’s Pittsburgh Division made the announcement today.
Andrey Ghinkul, aka Andrei Ghincul and Smilex, 30, of Moldova, was charged in a nine-count indictment unsealed today in the Western District of Pennsylvania with criminal conspiracy, unauthorized computer access with intent to defraud, damaging a computer, wire fraud and bank fraud. Ghinkul was arrested on Aug. 28, 2015 in Cyprus. The United States is seeking his extradition.
“The steps announced today are another example of our global and innovative approach to combatting cybercrime,” said Assistant Attorney General Caldwell. “Our relationships with counterparts all around the world are helping us go after both malicious hackers and their malware. The Bugat/Dridex botnet, run by criminals in Moldova and elsewhere, harmed American citizens and entities. With our partners here and overseas, we will shut down these cross-border criminal schemes.”
“Through a technical disruption and criminal indictment we have struck a blow to one of the most pernicious malware threats in the world,” said U.S. Attorney Hickton.
“Cyber criminals often reach across international borders, but this operation demonstrates our determination to shut them down no matter where they are,” said Executive Assistant Director Robert Anderson Jr. of the FBI’s Criminal, Cyber, Response and Services Branch. “The criminal charges announced today would not have been possible without the cooperation of our partners in international law enforcement and private sector. We continue to strengthen those relationships and find innovative ways to counter cyber criminals.”
According to the indictment, Ghinkul was part of a criminal conspiracy that disseminated Bugat, which is a multifunction malware package that automates the theft of confidential personal and financial information, such as online banking credentials, from infected computers through the use of keystroke logging and web injects. It is generally distributed through “phishing,” an email fraud method where legitimate-looking emails are distributed to victims in an attempt to obtain personal or financial information. Bugat is specifically designed to defeat antivirus and other protective measures employed by victims. The FBI estimates at least $10 million in direct loss domestically can be attributed to Bugat.
The indictment alleges that Ghinkul and his co-conspirators used the malware to steal banking credentials and then, using the stolen credentials, to initiate fraudulent electronic funds transfers of millions of dollars from the victims’ bank accounts into the accounts of money mules, who further transferred the stolen funds to other members of the conspiracy. Specifically, according to the indictment, on Dec. 16, 2011, Ghinkul and others allegedly attempted to cause the electronic transfer of $999,000 from the Sharon, Pennsylvania, City School District’s account at First National Bank to an account in Kiev, Ukraine, using account information obtained through a phishing email. In addition, Ghinkul and others allegedly caused the international transfer on Aug. 31, 2012, of $2,158,600 from a Penneco Oil account at First Commonwealth Bank to an account in Krasnodar, Russia, and the international transfer on Sept. 4, 2012, of $1,350,000 from a Penneco Oil account at First Commonwealth Bank to an account in Minsk, Belarus. Finally, the indictment alleges that on Sept. 4, 2012, Ghinkul attempted to cause the electronic transfer of $76,520 from a Penneco Oil account at First Commonwealth Bank to an account in Philadelphia. In all three instances, the company’s account information was allegedly obtained through a phishing email sent to a Penneco Oil employee.
In addition to the criminal charges announced today, the United States obtained a civil injunction in the Western District of Pennsylvania authorizing the FBI to take measures to redirect automated requests by victim computers for additional instructions to substitute servers.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until and unless proven guilty.
The investigation is being conducted by the FBI. Other agencies and organizations partnering in this effort include: the Department of Homeland Security’s U.S.-Computer Emergency Readiness Team (US-CERT), the United Kingdom’s National Crime Agency, Europol’s EC3, German Bundeskriminalamt (BKA), Dell SecureWorks, Fox-IT, S21sec, Abuse.ch, the Shadowserver Foundation, Spamhaus and the Moldovan General Inspectorate of Police Centre for Combating Cyber Crime, the Prosecutor General’s Office Cyber Crimes Unit and the Ministry of Interior Forensics Unit.
The case is being prosecuted by Assistant U.S. Attorneys Mary McKeen Houghton and Margaret E. Picking of the Western District of Pennsylvania. The civil action to disrupt the Bugat malware is led by Senior Trial Attorney Richard D. Green of the Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Michael A. Comber of the Western District of Pennsylvania. The Criminal Division’s Office of International Affairs provided significant assistance throughout the criminal and civil investigations.
Victims of Bugat/Dridex may use the following webpage created by US-CERT for assistance in removing the malware: https://www.us-cert.gov/dridex.
Ghinkul Indictment
Anyone claiming an interest in any of the property seized or actions enjoined pursuant to the court orders described in this release is advised to review the court documents below for notice of the full contents of the orders.
Ghinkul Complaint
Government's Motion for Leave to File Under Seal
Memorandum of Law in Support of Motion For Temporary Restraining Order
Motion for Temporary Restraining Order
Order to File Under Seal
Temporary Restraining Order
Special Agent Stevens Affidavit in Support of Temporary Restraining Order
Motion to Modify Preliminary Injunction
Amended Preliminary Injunction
Former Police Officer Pleads Guilty to Civil Rights ChargeRead the Press Release
PITTSBURGH - A resident of Fayette County, Pennsylvania, pleaded guilty today on a charge of deprivation of civil rights, United States Attorney David J. Hickton announced today.
Norman L. Howard, 42, of Grindstone, Pennsylvania, pleaded guilty to one count before Chief U.S. District Judge Joy Flowers Conti.
On or about May 26, 2013, Howard, the former Officer in Charge of the Redstone Township Police Department, willfully deprived an individual identified as D.N. by punching D.N. in the face, without justification.
Judge Conti scheduled sentencing for Jan. 22, 2016. The law provides for a maximum sentence of one year in prison, a fine of $100,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Cindy K. Chung and Shaun E. Sweeney are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
Johnstown Man Sentenced to 5 Years in Prison for Conspiring to Distribute HeroinRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to sixty months in prison and four years’ supervised release on his conviction of conspiracy to distribute heroin, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Terrance Sitton, 42.
According to information presented to the court, from Jan. 22, 2015, to April 17, 2015, Sitton conspired to distribute and possess with the intent to distribute 100 grams or more of heroin.
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, the Pennsylvania Attorney General's Office, the Cambria County Drug Task Force, the Altoona Police Department, and the Cambria County District Attorney's Office, for the investigation leading to the successful prosecution of Sitton.
Purported Landlord Defrauded HUD's Section 8 Housing Choice Voucher ProgramRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania pleaded guilty in federal court to a charge of theft of government property, United States Attorney David J. Hickton announced today.
Julio Raf Antomachi, III, 27, of Pittsburgh, PA, pleaded guilty to one felony count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that under the Department of Housing and Urban Development’s Section 8 Housing Choice Voucher Program, Antomachi fraudulently received federal housing subsidy monies as a purported landlord of a property located in Pittsburgh, PA. From February 2010 through February 2015, Antomachi wrongfully converted $43,054.00 in federal housing subsidy monies.
Judge Conti scheduled sentencing for Jan. 22, 2016, at 10 a.m. The law provides for a maximum total sentence of ten (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.
Pending sentence, the court released Antomachi bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Department of Housing and Urban Development, Office of the Inspector General, conducted the investigation leading to the Information in this case.
Erie Man Sentenced to 18 Months in Jail for Defrauding Mexican Construction CompanyRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 18 months in jail on his conviction of wire fraud, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on John Paul Donico, 66.
According to information presented to the court, from in and around May 2011, to in and around July 2012, Donico fraudulently obtained $350,000 from a Mexican construction company by promising to obtain financing, which Donico never obtained, for the construction of a rock crushing plant. Donico then refused to return the money and instead used it for personal living expenses.
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 for the investigation leading to the successful prosecution of Donico.
Erie Felon Admits Illegally Possessing PistolRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Vincent Andrew Feliciano, 45, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Feliciano was found in possession of a Springfield Armory .40 caliber pistol in his residence at 918 West 35th Street, Erie, at the time a federal search warrant was being executed. Feliciano is prohibited from possessing firearms because he is a convicted felon.
Judge Cercone scheduled sentencing for February 8, 2016 at 3:00 p.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.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Organized Crime Drug Enforcement Task Force (OCDETF) conducted the investigation that led to the prosecution of Feliciano. The OCDETF task force includes The Department of Homeland Security, Immigration and Customs Enforcement, the Drug Enforcement Administration, the Internal Revenue Service, Criminal Investigation and the Pennsylvania State Police. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Brooklyn Man Admits Role in Refund Fraud SchemeRead the Press Release
ERIE, Pa. – A former resident of Brooklyn, New York pleaded guilty in federal court to a charge of conspiracy to commit wire fraud, United States Attorney David J. Hickton announced today.
Robert Wireko, 47, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Wireko allowed bank accounts in his name and under his control to be used as repositories for fraudulently obtained federal tax refunds. Wireko would then withdraw the fraudulently obtained refunds, keep a portion for himself and give the remainder of the money to another co-defendant.
Judge Cercone scheduled sentencing for February 8, 2016. The law provides for a maximum total sentence of 20 years in prison, a maximum fine of $250,000 or twice the amount of loss to the victims, 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 Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation conducted the investigation that led to the prosecution of Wireko.
Bronx Man Pleads Guilty in Refund Fraud CaseRead the Press Release
ERIE, Pa. – A resident of Bronx, New York pleaded guilty in federal court to a charge of conspiracy to commit wire fraud, United States Attorney David J. Hickton announced today.
Nana Baffour, 39, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Baffour allowed bank accounts in his name and under his control to be used as repositories for fraudulently obtained federal tax refunds. Baffour would then withdraw the fraudulently obtained refunds, keep a portion for himself and give the remainder of the money to another co-defendant.
Judge Cercone scheduled sentencing for February 8, 2016. The law provides for a maximum total sentence of 20 years in prison, a maximum fine of $250,000 or twice the amount of loss to the victims, 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 Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation conducted the investigation that led to the prosecution of Baffour.
MedFast Pharmacy Manager Pleads Guilty in Misbranded Drug SchemeRead the Press Release
PITTSBURGH - A resident of Beaver County, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy, United States Attorney David J. Hickton announced today.
Correna Pfeiffer, 37, of Monaca, PA, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was told that Pfeiffer is a pharmacist who was the manager of the MedFast Institutional Pharmacy located at 2003 Sheffield Road, Aliquippa, in Beaver County. As manager she prepared and oversaw employees who prepared prescription medications for residents of nursing homes. MedFast had its delivery drivers pick up unused medications from the nursing homes and return them to the institutional pharmacy where employees unpackaged them and returned them to stock to be re-used in other prescriptions in violation of state law and federal law. As a result, drugs from different manufacturers with different lot numbers and different expiration dates were commingled in stock bottles. When it was necessary for employees to place lot numbers and expiration dates on prescriptions, the employees were instructed to use inaccurate and false information rendering the drugs “misbranded.” In addition, Medicare, Medicaid and other insurers were not reimbursed for the unused drugs, but they were billed for illegal, “misbranded” drugs.
Judge Schwab scheduled sentencing for Feb. 2, 2016. The law provides for a maximum sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The U.S. Food and Drug Administration-OCI, the Drug Enforcement Administration-Diversion Investigators, the Health and Human Service-OIG and the Office of Personnel Management-OIG conducted the investigation leading to the information in this case.
Beaver Falls Man Sentenced to Prison for Taking Teen Out of State for SexRead the Press Release
PITTSBURGH - A former Beaver County resident has been sentenced in federal court to 70 months imprisonment, followed by five years supervised release, on his conviction of travelling with intent to engage in illicit sexual conduct, United States Attorney David J. Hickton announced today.
United States District Judge Maurice B. Cohill, Jr., imposed the sentence on Donald L. Starkey, age 58, of Beaver Falls, Pa.
According to information presented to the court at the time of Starkey’s guilty plea, on June 4, 2012, Starkey, then aged 54 years, transported a 15-year old female from Pennsylvania to North Carolina with whom he engaged in sexual intercourse en route and while in North Carolina. A bystander observed Starkey and the minor female playing pool at a truck stop in Guilford County, North Carolina, and reported them to local authorities.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Beaver County District Attorney’s Office for conducting the investigation leading to the successful prosecution of Donald L. Starkey.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pittsburgh Man Pleads Guilty to Violating Federal Drug LawsRead the Press Release
PITTSBURGH -A Pittsburgh resident pleaded guilty in federal court to charges of conspiracy to possess with intent to distribute and distribute five kilograms grams or more of cocaine and 100 grams or more of heroin, United States Attorney David J. Hickton announced today.
Cecil Pinnix, 46, pleaded guilty to two counts 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. The government had wiretaps on two of Cecil Pinnix’s phones, and Pinnix was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier, and to possess with intent to distribute and distribute heroin, which he obtained in Ohio and transported to the Western District of Pennsylvania for further distribution.
Judge Hornak scheduled sentencing for Feb. 10, 2016. The law provides for a minimum sentence of 10 years in prison up to a maximum sentence of life imprisonment, a fine of not more than $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Cecil Pinnix.
Health Care Plan Supervisor Submitted False Statements, Netted $184K in PaymentsRead the Press Release
PITTSBURGH – An Armstrong County resident pleaded guilty in federal court to charges of mail fraud and health care fraud, United States Attorney David J. Hickton announced today.
Francine Ann Priestas, 48, of Rural Valley, Pennsylvania, pleaded guilty to 11 counts before Senior United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that Priestas was employed as a supervisor in the UPMC Health Plan Claims Department. Priestas generated billing statements which falsely represented that she and others received medical services. She submitted 156 false statements on the UPMC system and received payments totaling $184,835.
Judge McVerry scheduled sentencing for Jan. 8, 2016 at 9:30 a.m. The law provides for a total sentence of 210 years in prison, a fine of $2,750,000, 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 Priestas on bond.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Priestas.
Former Air National Guard Contract Employee Sentenced to Probation for FraudRead the Press Release
PITTSBURGH - A resident of Maryland has been sentenced in federal court to two years of probation, six months of home detention and community service on his conviction of conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Robert St. Clair, 51, of Bel Air, Maryland.
According to the information presented to the court, between 2002 and 2011, St. Clair, a contract employee at the National Guard Bureau at Andrews Air Force Base, conspired with another person at the 171st Air Refueling Wing in Coraopolis, Pennsylvania, to defraud the United States by accepting a “no show” enlistment position as a “contracting specialist’ at the 171st, in exchange for St Clair providing military work days to the conspirator, a former commander at the 171st ARW.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Air Force Office of Special Investigations and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Robert St. Clair.
Butler County Couple Pleads Guilty in Identity Theft Scheme Perpetrated at Walmart StoresRead the Press Release
PITTSBURGH – A Butler County couple has pleaded guilty in federal court to charges of conspiracy, and aggravated identity theft, United States Attorney David J. Hickton announced today.
Robert W. MacVittie, 35, and Jennifer MacVittie, aka Jennifer Dinwiddie, 32, formerly of Cranberry, Twp., each pleaded guilty to two counts before Senior United States District Judge Joy Flowers Conti.
In connection with the guilty plea, beginning around October 2013, through May, 2014, the MacVitties’ used cell phone cameras to “shoulder surf” Social Security numbers from Walmart customers nationwide by taking cell phone video images of the customers who were cashing checks at the customer service counters. The stolen information was later used by the MacVittie’s to negotiate counterfeit checks at Walmart stores throughout the U.S., including Pennsylvania, West Virginia, Florida, Texas, Mississippi, Alabama, Kansas and other states. The MacVittie’s were arrested at a casino by law enforcement in Nevada on Nov. 29, 2014.
Judge Conti scheduled the sentencing for Jennifer MacVittie on Jan. 8, 2016, at 11 a.m. and Robert MacVittie on Jan. 15, 2016, at 10 a.m. The law provides for a maximum total sentence of not more than seven 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 Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF) conducted the investigation that led to the indictment of the MacVitties. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Glassport Man Charged with Fraud for Purchasing Game Tickets without PayingRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury on charges of wire fraud, United States Attorney David J. Hickton announced today.
The 12-count indictment, returned on Sept. 22, named William B. Rusnock, 35, Glassport, PA, as the sole defendant.
According to the indictment, Rusnock made fraudulent purchases of sporting event tickets on StubHub! without paying for them, defrauding StubHub!, PayPal and Huntington Bank.
The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both for each count of conviction. 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 Secret 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.
Pittsburgh Woman Pleads Guilty to Misusing Section 8 Housing VouchersRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania pleaded guilty in federal court to a charge of theft of government property, United States Attorney David J. Hickton announced today.
Michelle L. Michalek, 35, of Pittsburgh, PA, pleaded guilty to one felony count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that under the Department of Housing and Urban Development’s Section 8 Housing Choice Voucher Program, Michalek fraudulently received federal housing subsidy monies as a purported tenant of the property located at 241 Friday Road, Pittsburgh, PA 15209. From February 2010 through February 2015, Michalek wrongfully converted $43,054.00 in federal housing subsidy monies.
Judge Conti scheduled sentencing for Jan. 8, 2016, at 11:00 a.m. The law provides for a maximum total sentence of ten (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.
Pending sentence, the court released Michalek on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Department of Housing and Urban Development, Office of the Inspector General, conducted the investigation leading to the Information in this case.
Pennsylvania Priest Convicted of Sexually Abusing MinorsRead the Press Release
JOHNSTOWN, Pa. – A priest of the Diocese of Altoona-Johnstown, Pennsylvania, was found guilty after an eight-day jury trial of offenses related to his sexual abuse of three minor boys during trips to Honduras over a five-year period, U.S. Attorney David J. Hickton announced today.
Joseph D. Maurizio Jr., 70, of Central City, Pennsylvania, was convicted of engaging in illicit sexual conduct in foreign places, possession of child pornography and international money laundering. He is scheduled to be sentenced on February 2, 2016, at 10 a.m.
U.S. Attorney Hickton stated, “The jury’s conviction affirms the courage of these victims, the tenacity of the investigators and the resolve of our prosecutors to ensure justice. We remain steadfast in our commitment to protect children from predators here and pursue those who travel beyond our borders to offend. We are especially vigilant where a person uses a position of trust to victimize the most vulnerable among us.”
"What Maurizio did to the children in Honduras while swindling unsuspecting Americans for money to support his pedophilia is atrocious," said John Kelleghan, HSI Philadelphia Special Agent in Charge. "The jury's verdict is testament that society will not tolerate this behavior, and HSI will continue to use its transnational investigative capabilities to bring American child predators to justice -- no matter where they commit their crimes."
“Investigations of this importance are only possible when each individual agency lends their manpower and expertise to the goal of achieving justice,” added Edward M. Wirth, Assistant Special Agent in Charge, IRS - Criminal Investigation. “The Internal Revenue Service, Criminal Investigation will continue to provide the financial expertise in these investigations and will readily assist in the analysis of the financial activities of those who violate the laws of our country.”
According to the evidence introduced at trial, the defendant created a charitable organization, known at the time as Honduras Interfaith Ministries (HIM), which was funded by donations from members of the community, including parishioners of Our Lady Queen of Angels Church in Central City. The evidence showed that HIM became the largest donor to Pro Nino, a non-profit organization that provided shelter and rehabilitative services to poor, abandoned and at risk children residing in a rural town outside of San Pedro Sula, Honduras. The trial evidence further demonstrated that Maurizio often used his position as Pro Nino’s largest donor to gain unfettered access to the boys that lived there.
In addition, the evidence showed that Maurizio used HIM funds to pay for 13 separate trips between the United States and Honduras between 2004 and 2009, during which he sexually abused three minor boys between the ages of 12 and 17. The government presented evidence that, prior to three of these trips, Maurizio transferred $8,000 from accounts located in the Western District of Pennsylvania to accounts and individuals located in Honduras, and that he used these funds to purchase gifts including clothes, shoes and jewelry that he gave to the minor boys in order to gain their trust and to ensure their compliance during the sexual acts he perpetrated against them. The evidence presented at trial also showed that, during his final trip to Honduras, Maurizio paid two minor boys, ages 14 and 15, to engage in sexual acts with him.
In addition, trial evidence showed that, during a search of the rectory of Our Lady Queen of Angels Church, federal investigators recovered digital media depicting the young boys Maurizio sexually abused, and images of minors engaging in sexually explicit conduct.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Internal Revenue Service’s Criminal Investigation in Pittsburgh. The case is being prosecuted by Trial Attorney Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Stephanie Haines of the Western District of Pennsylvania.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Butler County Woman Charged with ExtortionRead the Press Release
PITTSBURGH - A Butler County resident has been indicted by a federal grand jury in Pittsburgh on charges of interference with commerce by extortion, United States Attorney David J. Hickton announced today.
The two-count superseding indictment named Pamela A. Vivirito, 45, of Valencia, PA as the sole defendant.
According to the superseding indictment Vivirito extorted property from persons known to the grand jury.
The law provides for a maximum total sentence of 40 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 Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.