Western District of Pennsylvania
Press releases recorded for this federal judicial district.
Mexican Citizen Sentenced to Time-Served for Re-entering U.S. After RemovalRead the Press Release
PITTSBURGH - A citizen of Mexico, has been sentenced in federal court to time served (four months) on his conviction of violating federal immigration laws, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Adan Fiscal-Fino, 29, of Mexico.
According to information presented to the court, on or about Sept. 12, 2014, Fiscal-Fino was found in Pittsburgh after having unlawfully re-entered the United States following removal on or about Jan. 19, 2008.
Assistant United States Attorney Margaret E. Picking prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Immigration and Customs Enforcement (ICE) for the investigation leading to the successful prosecution of Fiscal-Fino.
Federal Prosecutors Announce Additional Indictments in Stolen Identity Refund Fraud SchemeRead the Press Release
ERIE, Pa. - Sixteen individuals from around the United States have been indicted by a federal grand jury in Erie on charges of conspiracy to commit wire fraud and aggravated identity theft, United States Attorney David J. Hickton announced today.
The thirteen-count superseding indictment named Doherty Kushimo, 53, of Providence, Rhode Island; Saburi Adeyemi, 56, of Memphis, Tennessee; Abiodun Bakre, 50, of Ozone Park, New York; Adetunji Gbadegeshi, 57, of Queens, New York; Xerxes Shevar, 47, of Brooklyn, New York; Gcobisa Kehle, 37, of Brooklyn, New York; Loyiso Kula, 43, of New York City; Abiodun Tijani, 44, of Staten Island, New York; Funmilayo Aliyu, 53, of Laurelton, New York; Bola Peters, 43, of New York City; Samuel Sobaloju, 52, of Far Rockaway, New York; Daniel Freeman, 49, of Danbury, Connecticut; Nana Baffour, 38, of Bronx, New York; and Kwame Asamoah, 35, of Brooklyn, New York, as defendants.
According to the indictment presented to the court, the sixteen defendants conspired to commit wire fraud by submitting fraudulent federal tax returns in the names of individuals whose identities the conspirators stole. The conspirators then opened bank accounts using stolen identities and used those accounts as repositories for their fraudulently obtained federal tax refunds. The conspirators obtained stolen identity information on the Internet and then traded that information among themselves using email accounts and other means of communication. All told, the indictment alleges that, for the tax years 2010 to 2013, approximately $38 million in fraudulent tax refunds was sought from the IRS by the conspirators, causing the IRS to pay at least $10 million in fraudulent refunds. The indictment also alleges that approximately 3,493 bank accounts were opened using stolen identities, affecting approximately 443 financial institutions, and that approximately 4,563 credit cards were obtained using stolen identities. Approximately 11,468 individuals are alleged in the indictment to have been victimized.
The law provides for a maximum total sentence of 20 years in prison for Saburi Adeyemi, Adetunji Gbadegeshi, Adebola Mejule, Michael Idowu Olugbade, Xerxes Shevar, Gcobisa Kehle, Loyiso Kula, Abiodun Tijani, Funmilayo Aliyu, Bola Peters, Samuel Sobaloju, Daniel Freeman, Nana Baffour and Kwame Asamoah. Doherty Kushimo faces 38 years in prison and Abiodun Bakre faces 36 years in prison. All sixteen defendants are subject to a maximum fine of $250,000 or twice the amount of loss to the victims. 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 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 leading to the indictment in this case.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Jefferson Hills Man Charged with Selling Adulterated Poultry ProductsRead the Press Release
PITTSBURGH - A Jefferson Hills resident has been indicted by a federal grand jury in Pittsburgh on charges of selling and transporting adulterated and misbranded poultry and selling and transporting poultry without inspection, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on January 27, named Xia Vue, 83, of Finleyville, PA.
According to the Indictment presented to the court, the defendant sold in commerce adulterated poultry products which had not been inspected pursuant to regulations of the United States Department of Agriculture.
The law provides for a maximum total sentence of six years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney 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 leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Storeowner Sentenced to Time-served for Stolen Identity SchemeRead the Press Release
PITTSBURGH, PA - A resident of Allegheny County has been sentenced in federal court to time served on his conviction of mail fraud, United States Attorney David J. Hickton announced today.
United States District Judge Mark Hornak imposed the sentence on Bhavikkumar H. Koladiya, aka “Bob Patel”, of Monroeville, PA. Koladiya has been incarcerated in federal custody since his arrest in October 2013.
According to the information presented to the court, Koladiya, the operator of the “Atwood Xpress” in Oakland, stole identities from other persons which he used to open credit card accounts at U.S. Bank, Chase Bank, Discover card and others, and then bought merchandise, including diamonds, with the stolen credit cards.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Western Pennsylvania Financial Crimes Task Force (WPFCTF) for conducting this investigation. 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.
Pittsburgh Heroin Dealer Sentenced to 5 Years in Federal PrisonRead the Press Release
PITTSBURGH – Frank Currington, formerly of Pittsburgh, Pa. was sentenced to 60 months in prison for conspiring to distribute over 100 grams of heroin, United States Attorney David J. Hickton announced today.
Currington, 41, was sentenced in Pittsburgh by United States District Judge Nora Barry Fischer. Judge Fischer also imposed a four-year term of supervised release to follow the federal prison sentence.
Between 2011 and 2013, Currington invested thousands of dollars into the interstate heroin re-supply ventures of a large-scale heroin trafficking organization with several members from or associated with Pittsburgh’s Larimer neighborhood. Currington would thereafter receive his share of the heroin. In this manner, Currington received and re-distributed hundreds of bricks of heroin.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration in Pittsburgh and New York, the Pennsylvania State Police, the Pittsburgh Bureau of Police, the Allegheny County Police Department, the Pennsylvania Attorney General's Office, the Wilkins Township Police Department, the East Pittsburgh Police Department, the New York Police Department, the Blair County District Attorney's Office, and the Allegheny County District Attorney's Office conducted the investigation leading to the conviction and sentence in this case.
Co-Owner of Italian Village Pizza Stores Sentenced for Skimming Cash from Businesses and Evading TaxesRead the Press Release
PITTSBURGH – An Allegheny County business owner has been sentenced in federal court to four years probation, which will include one year of home confinement, and ordered to pay a $45,000 fine, on his conviction of conspiracy and tax evasion, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on John R. Miller of South Park, Pennsylvania.
According to information presented to the court, Miller and his partner, Frank Veltri, owned certain Italian Village pizza stores, and licensed the Italian Village name to owners of other stores. Miller and Veltri skimmed cash from the businesses which was not reported as income, and also did not report license fees paid in cash by some of the 15 to 20 licensees. Some expenses were also paid in cash, and not reported on the tax returns, in order to maintain an appropriate balance between sales and expenses.
The stipulated tax loss for Miller was $92,916. The criminal tax loss includes both the amounts owed to the IRS for personal tax due (Form 1040) and employment tax due for the businesses (Form 941). At the time of sentencing, Miller had paid this amount to the government, as well as interest and penalties.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service for the investigation leading to the successful prosecution of Miller.
Indiana Drilling Company COO Sentenced to 8 Years in Prison for Embezzling $9MRead the Press Release
PITTSBURGH – A resident of Indiana, Pa., was sentenced in federal court on Jan. 23, 2015, to 96 months imprisonment, three years supervised release and $10,206,425 in restitution on his conviction of conspiracy to commit mail fraud, forged checks and tax fraud, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Larry Dean Winckler, 53, of Indiana, Pa.
According to information presented to the court, the court was advised that between 2007 and 2012, Winckler, the Chief Operating Officer at Falcon Drilling Company in Indiana, Pa., conspired to embezzle nearly $9,020,687 from his employer by creating forged checks and fake company invoices. Winckler conspired to defraud Falcon through embezzlement of company funds by using forged checks, fake invoices to fictitious or real vendors, and false statements to auditors. In imposing sentence, Judge McVerry noted the seriousness of the crime, and enormity of the embezzlement over several years.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service and Internal Revenue Service-Criminal Investigation for the investigation leading to the successful prosecution of Winckler.
Postal Service Employee Sentenced to Probation with Home Detention for Stealing from MailRead the Press Release
PITTSBURGH - A resident of Parker, Pa., has been sentenced in federal court to two years probation, which includes three months home detention, and a $500 fine on her conviction of theft of mail by a Postal employee, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Pamela D. Vogt, 44.
According to information presented to the court, on or about Feb. 6, 2014, Vogt, while working as a U.S. Postal Service employee, removed a $20 bill from a greeting card contained in an envelope which was addressed and intended for delivery by the U.S. Postal Service.
Assistant United States Attorney Margaret E. Picking prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Postal Service-Office of Inspector General (USPIS) for the investigation leading to the successful prosecution of Vogt.
Judge Sentences Former PA Turnpike Worker to 15 Years in Prison for Producing Child PornRead the Press Release
PITTSBURGH - A resident of Jeannette, Pennsylvania, has been sentenced in federal court to 15 years imprisonment, followed by 15 years supervised release, on his conviction of production of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Nora B. Fischer imposed the sentence on John S. Longo, 58.
According to information presented to the court, Longo, a retired employee of the Pennsylvania Turnpike Commission, from June 2009 through November 2010, requested another adult produce and send him digital images depicting the sexual exploitation of a child victim who was 12 years of age. The images included those produced on Jan. 30, 2010, of the minor victim by the other adult. In addition to retaining the images for his own benefit, Longo distributed the images to others over the internet, as well as posted some of the digital photographs on a Russian website that catered to child pornography.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Homeland Security Investigations - Immigration and Customs Enforcement and the Pennsylvania State Police for the investigation leading to the successful prosecution of Longo.
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.
Indiana County Woman Pleads Guilty to Defrauding Social Security of $154K in BenefitsRead the Press Release
PITTSBURGH – An Indiana County resident pleaded guilty in federal court to a charge of theft of government property, United States Attorney David J. Hickton announced today.
Joyce Anne Gromley, 71, of Commodore, Pa., pleaded guilty to one count before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that from in and around April 1986 and continuing until in around March 2014, Gromley converted to her own use $154,293.00 in Social Security Income Benefits from the Social Security Administration.
Judge McVerry scheduled sentencing for May 15, 2015. 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 Robert S. Cessar 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 Joyce Anne Gromely.
West Mifflin Man Pleads Guilty to Child Pornography ChargeRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Ryan Henry Miller, 30, of West Mifflin, Pa., pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that on or about July 17, 2014, Miller 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.
Judge Schwab scheduled sentencing for June 2, 2015, at 10 a.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Indiana County District Attorney’s Office, the Allegheny County District Attorney’s Office, the Allegheny County Police Department and the West Mifflin Police Department conducted the investigation that led to the prosecution of Miller.
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.
Judge Sentences Felon to 20 Years in Prison for Violating Federal Gun and Drug LawsRead the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to 240 months in prison on his conviction of violating federal firearms and narcotics laws, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence yesterday on Thomas Clay Wade, 36.
According to information presented to the court, Wade was a felon who knowingly possessed a firearm and ammunition and knowingly possessed crack cocaine with the intent to distribute.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crimes.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the City of Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Wade.
Trinidad Citizen Pleads Guilty to Drugs and Money LaunderingRead the Press Release
PITTSBURGH - A resident of Arnold and Lower Burrell, Pa., pleaded guilty in federal court yesterday to charges of violating federal narcotics, firearms and money laundering laws, United States Attorney David J. Hickton announced today.
Omali McKay, 29, a citizen of Trinidad with residences in Lower Burrell, Pa., and Arnold, Pa., pleaded guilty to five counts before United States District Judge David S. Cercone.
As part of his guilty plea, McKay acknowledged that he conspired with others from 2006 to August 25, 2012, to distribute 5 to 15 kilograms of cocaine and 280 to 840 grams of crack cocaine. McKay obtained kilogram quantities of cocaine from out-of-state sources of supply and then cooked much of that cocaine into crack. He then sold cocaine and crack in small quantities to street-level distributors and drug users in order to maximize his profits.
Also, McKay admitted possessing with intent to distribute one kilogram of cocaine seized from his Lower Burrell residence on August 25, 2012, while simultaneously possessing an assault rifle in furtherance of the drug crime. Specifically, on August 25, 2012, search warrants were conducted at McKay's residences. In the master bedroom closet of the Lower Burrell residence, officers discovered more than one kilogram of cocaine, an assault rifle, approximately 3,000 rounds of ammunition, two ballistic vests, and $272,000 in cash hidden in a bag containing McKay's identification cards. Seized from the garage were a 2004 Mercedes Benz and a 2004 Lexus.
Finally, McKay admitted to conspiring with three others to launder his drug trafficking proceeds. He used those laundered funds to purchase the Lower Burrell residence for $243,000 in cash in August 2011. Specifically, between May and July 2011, McKay repeatedly provided sums of cash to three individuals who then deposited the cash into their respective bank accounts and wrote checks back to McKay. Some of checks were written to make them appear to be payments for services rendered from McKay's non-existent lawn care business. In total, $243,500 was laundered in this manner in a little more than a month and a half.
The Mercedes Benz, the Lexus, the $272,000 in cash, and the residence in Lower Burrell will be forfeited since they were proceeds of McKay’s drug trafficking.
Judge Cercone scheduled sentencing for May 20, 2015 at 10:30 a.m. The law provides for a total sentence of not less than 15 years and up to life in prison, a fine of $10,000,000, 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 Charles A. Eberle is prosecuting this case on behalf of the government.
The Pennsylvania State Police, the Internal Revenue Service - Criminal Investigation Division, Homeland Security Investigations, the Drug Enforcement Administration, and the Lower Burrell Police Department conducted the investigation that led to the prosecution of Omali McKay.
Pittsburgh Woman Charged with Defrauding Federal Employees' Compensation FundRead the Press Release
PITTSBURGH – A Pittsburgh woman has been indicted by a federal grand jury in Pittsburgh on charges of Federal Employees’ Compensation Fraud, United States Attorney David J. Hickton announced today.
The four-count indictment named Laureen Priore, 55, as the sole defendant.
According to the indictment, Priore, in connection with the application and receipt of federal employees’ compensation moneys and benefits, concealed and covered up material facts, that is, that she was self-employed and involved in a business enterprise. Priore’s fraudulent conduct resulted in compensation payments totaling approximately $74,762.35 being issued to her during the period from July 1, 2012, to Sept. 12, 2014, payments Priore knew she was not entitled to receive. Priore also submitted false and fraudulent statements to the federal government concerning her employment status. Among the false statements submitted by Priore to the federal government, Priore submitted a statement on July 23, 2013, in which she falsely represented that she was not self-employed, knowing that she was self-employed and engaged in a business enterprise.
The law provides for a maximum total sentence on each count 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 Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, and the Department of Labor, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Wheeling Woman Sentenced to Probation for Counterfeit Currency ConspiracyRead the Press Release
PITTSBURGH – A resident of Wheeling, West Virginia, has been sentenced in federal court to two years probation and restitution on her conviction of conspiracy to pass counterfeit United States currency, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Senteria Nightengale, 42.
According to information presented to the court, Nightengale engaged in a conspiracy to pass counterfeit U.S. currency on Jan. 12, 2013.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Nightengale.
Somerset County Man Sentenced to Prison for Possessing Pornographic Videos of ChildrenRead the Press Release
JOHNSTOWN, Pa. - A resident of Windber, Pa., has been sentenced in federal court to five years in prison, 10 years supervised release—the first 18 months of which must be served by conditions of home confinement, required to register as a convicted sex offender, and ordered to pay $5,000 restitution on his conviction of possession of child pornography, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Donald T. Reese, 69.
According to information presented to the court, on April 28, 2011, Reese knowingly possessed videos in individual computer graphic files which were produced using 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.
U.S. Attorney Hickton commended the Southwest Computer Crime Task Force of the Pennsylvania State Police for the investigation leading to the successful prosecution of Reese.
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 Attorney's 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.
Pennsylvania Physician Pleads Guilty to Tax Charges, Health Care FraudRead the Press Release
JOHNSTOWN, Pa. - A resident of the Dominican Republic, pleaded guilty in federal court to charges of filing false individual and corporate tax returns and health care fraud, United States Attorney David J. Hickton announced today.
Dr. William R. Acosta pleaded guilty to seven counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that Acosta, a physician licensed to practice in Pennsylvania, filed three false individual income tax returns and three false corporate income tax returns for calendar years 2001, 2002, and 2003, whereby he failed to report $561,129 in taxable income, resulting in an underpayment of $181,460 in income tax owed to the United States.
In addition, from Aug. 28, 2002, to Jan. 24, 2003, Acosta submitted false and fraudulent claims to Highmark Blue Cross/Blue Shield for levels of services higher than what he actually provided, and he unjustly received payment at the higher level from Highmark.
Judge Gibson scheduled sentencing for May 14, 2015, at 10 a.m. The law provides for a total sentence of 28 years in prison, a fine of $1.750,000, 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.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Internal Revenue Service/Criminal Investigation and the Department of Health and Human Services/Office of Inspector General conducted the investigation that led to the prosecution of Acosta.
State Inmate Sentenced on Conviction of Forging A Federal Judge’s SignatureRead the Press Release
PITTSBURGH – An inmate at SCI-Houtzdale, located in Houtzdale, Pennsylvania, pleaded guilty and was sentenced in federal court in Pittsburgh on a charge of forging a judge’s signature, United States Attorney David J. Hickton announced today.
Michael J. Kramer, 31, formerly of New Kensington, Pa., and currently serving a sentence for a state parole violation at SCI Houtzdale, pleaded guilty and was sentenced to six months’ incarceration, followed by three years of supervised release, on one count before United States District Judge Arthur J. Schwab.
According to information provided to the Court, on April 4, 2014, a Records Specialist at SCI Houtzdale contacted the United States Marshals’ Office with concerns that the institution may have received a falsified “Order of Court” in which it was written that “Michael J. Kramer’s guilty plea be and as the same is VACATED.” The document was present in Kramer’s transport file. Kramer had recently been returned to Houtzdale from SCI Pittsburgh, and this folder would have returned to Houtzdale with him.
At the time, Kramer was in state custody serving a parole violation and was due to be released from state custody in August 2014. A federal detainer followed him, however, because he also had pleaded guilty and was awaiting sentencing in federal court in Pittsburgh on charges of armed bank robbery, possession of a firearm by a convicted felon, and using a firearm in relation to a crime of violence. The Records Specialist at Houtzdale believed the Court Order purportedly vacating Kramer’s conviction was a fraudulent document because she did not observe a court seal, the order contained two different fonts, the order did not contain an original signature, and the order was folded six ways, as though someone had placed it in his pocket.
The Marshals reviewed Kramer’s bank robbery court docket online and confirmed that no such order was actually filed dismissing his conviction. The Marshals also traveled to Houtzdale to interview Kramer, and Kramer confessed to the Marshals that he created this fake Court Order in the law library at the prison.
Last month, Kramer was sentenced by the Honorable David S. Cercone to 20 years (240 months) in prison, followed by five years of supervised release, on his armed bank robbery and firearms conviction. Judge Schwab ordered that the six-month sentence for the forgery conviction should run concurrently with the robbery and firearms conviction
Assistant United States Attorneys Barbara K. Doolittle, Troy Rivetti, and Conor Lamb prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Borough of Coraopolis Police Department, and the United States Marshals’ Service for the investigation leading to the successful prosecution of Michael J. Kramer.
Pittsburgh Man Pleads Guilty to Child Pornography ChargeRead the Press Release
PITTSBURGH – An Allegheny County man pleaded guilty in federal court to a charge of receipt of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
James Kerkan, 49, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that from on or about Aug. 13, 2014, and continuing until on or about Sept. 3, 2014, Kerkan received images and videos containing material depicting the sexual exploitation of minors.
Judge Bissoon scheduled sentencing for April 30, 2015, at 2:00 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police, Federal Bureau of Investigation, and the Allegheny County District Attorney’s Office conducted the investigation that led to the prosecution of Kerkan.
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.
Cambria County Man Sentenced to Probation with Home Detention for Possessing Weapon with Removed Serial NumberRead the Press Release
JOHNSTOWN, Pa. - A resident of Blandburg, Pa., has been sentenced in federal court to five years probation, the first 12 months of which must be served by conditions of home confinement, on his conviction of unlawful possession of a firearm which had the serial number removed, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Aaron C. Spanik, 35.
According to information presented to the court, on Nov. 3, 2011, Spanik unlawfully possessed a Kahr Arms pistol which had the manufacturer's serial number removed and which had been shipped in interstate or foreign commerce.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police and the Allegheny Township Police Department for the investigation leading to the successful prosecution of Spanik.
According to Mr. Hickton, Spanik was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Oakdale Man Pleads Guilty to Armed Robberies of Three Western Pennsylvania BanksRead the Press Release
PITTSBURGH - On Jan. 13, 2015, a resident of Oakdale, Pa., pleaded guilty in federal court to charges of armed bank robbery and using a firearm during a crime of violence, United States Attorney David J. Hickton announced.
John J. Gibson, 35, pleaded guilty to four counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that on Nov. 12, 2013, at approximately 12:25 p.m., Gibson and his co-defendant, Daniel Bose, robbed the Community Bank located at 3241 West Roy Furman Highway, in Rogersville, Pa. Both men displayed firearms during the robbery, and $4,335 was taken. On Nov. 27, 2013, at approximately 12:35 p.m., both men robbed the S&T Bank located at 100 South Fourth Street, in Youngwood, Pa., taking $2,750. Finally, on Feb. 10, 2014, at approximately 1:35 p.m., both defendants robbed the First Federal Savings and Loan Association of Greene County located at 101 Locust Avenue Ext., Mount Morris, Pa. On that occasion, the defendants stole $23,667.
Last year, Daniel Bose pleaded guilty to these crimes as well, and he currently is awaiting sentencing.
Judge Schwab scheduled sentencing for Gibson for May 12, 2015, at 9:30 a.m. The law provides for a total sentence of not less than seven years and up to life 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 offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Barbara K. Doolittle and Troy Rivetti are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Gibson and Bose.
Indiana, Pa., Woman Conspired to Distribute HeroinRead the Press Release
JOHNSTOWN, Pa. - A resident of Indiana, Pa., pleaded guilty in federal court to a charge of conspiracy to distribute heroin, United States Attorney David J. Hickton announced today.
Tiffany N. White, 26, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from April 2012 to March 8, 2013, White conspired with her co-defendants to possess and distribute 100 grams or more of heroin.
Judge Gibson scheduled sentencing for May 12, 2015, at 11 a.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 John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of White.
Four Indicted on Charges of Violating Federal Drug, Fraud and Money Laundering LawsRead the Press Release
PITTSBURGH - Three residents of India and one resident of Morocco have been charged in a second superseding indictment by a federal grand jury in Pittsburgh on charges of violating federal prescription drug, narcotic, fraud and money laundering laws, United States Attorney David J. Hickton announced today.
The 24-count second superseding indictment named Javed Sunesra, 37, Zuned Sunesra, 35, and Bismilla Sunesra, 60, all of Mumbai, India, and Samir Taslimant, 37, of Casablanca, Morocco.
According to the second superseding indictment, from November 2005 to April 2014, defendants Javed Sunesra, Zuned Sunesra, Bismilla Sunesra and Samir Taslimant, operated pharmacy websites based out of India called emedoutlet.com, shopeastwest.com, and superdrugsaver.com, amongst others. From these websites, the Sunesras, aided and abetted by others, including Taslimant, who ran an affiliate website called iwantmeds.com, conspired to distribute unapproved and misbranded prescription drugs into the United States without a prescription. These prescription drugs included “standard” prescription drugs such as Viagra and Accutane, as well as Schedule IV and V controlled substances such as Soma and Darvocet.
In addition, the Sunesras, acting together with co-defendant Taimur Khan, who has already pled guilty and is due to be sentenced, deceived customers of emedoutlet.com by claiming that the drugs sold were FDA approved and were similar to drugs sold in the United States when in fact that was not true. Further, Khan and the Sunesras set up a fake “gift card” company called “mygiftcard.biz” to process credit cards for customers. The purpose of this fake company was to convince credit card processors that emedoutlet.com and its affiliate websites were selling gift cards instead of illegal medications. Defendants Samir Taslimant, Javed Sunesra, and Zuned Sunesra are alleged to have laundered the money by funneling the proceeds of these drug sales from the United States to Canada, and then on to bank accounts in the Republic of Mauritius, Dubai, and Morocco.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or twice the pecuniary gain of the defendants, 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. Defendant Zuned Sunesra is currently being held without bond, while the government is commencing extradition proceedings against the remaining defendants.
Assistant United States Attorneys Eric S. Rosen and Conor Lamb are prosecuting this case on behalf of the government.
The Food and Drug Administration and the Internal Revenue Service – Criminal Investigation conducted the investigation leading to the second superseding indictment in this case. A second superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Washington County Police Chief Resentenced to 7 Years and 3 MonthsRead the Press Release
PITTSBURGH- A former resident of Washington, Pa., has been sentenced in federal court to 87 months imprisonment, 3 years supervised release and no fine or restitution on his conviction of Hobbs Act violations, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Donald Abraham Solomon, 59.
According to information presented to the court, Solomon was the Chief of Police of East Washington Borough, Pa. He received payments from a purported drug dealer, who was an undercover FBI agent, to protect drug shipments and to purchase law enforcement restricted police equipment.
Assistant United States Attorneys Robert S. Cessar and Lee J. Karl 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 Solomon.
Costa Rican Charged with Facilitating the Illegal Shipping of Pills from India to the U.S.Read the Press Release
PITTSBURGH - A resident of Costa Rica has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud, misbranded drugs, conspiracy to import controlled substances and smuggling, United States Attorney David J. Hickton announced today.
The 14-count indictment, which was returned on Jan. 13, named Daniel Fernando Sanchez, 39, of Costa Rica, as the sole defendant.
According to the indictment, Sanchez facilitated the Internet sale of misbranded drugs through reshippers in Pittsburgh, Pa., and Houston, Texas, who took delivery of Schedule IV nonnarcotics and non-controlled pain relief and erectile dysfunction drugs manufactured in India and, after repackaging, mailed them to thousands of customers throughout the United States. The customers were falsely led to believe that the drugs were “FDA approved,” that the erectile dysfunction drugs were genuine Viagra and Cialis, and that it was legitimate to distribute such drugs without prescriptions.
The law provides for a maximum total sentence of 20 years in prison on each of the mail fraud counts, three years in prison on each of the misbranded drug counts, five years in prison on the importation conspiracy count, and 20 years in prison on the smuggling count; as well as a $250,000 fine on each of the 14 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.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The Food and Drug Administration, Office of Criminal Investigations, the Postal Inspection Service, Homeland Security Investigations, the Pennsylvania State Police 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.
Aliquippa Man Sentenced for Fraud SchemeRead the Press Release
PITTSBURGH - A Beaver County resident has been sentenced in federal court to 33 months imprisonment, and ordered to pay $415,389.32 in restitution on his conviction of mail fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Peter A. Kalemon, 46, of Aliquippa, Pa.
According to information presented to the court, Kalemon defrauded his former employer of $359,389.32 over approximately three years by submitting 126 fraudulent invoices which were paid to Kalemon’s fictitious transportation company via 81 checks mailed to his P.O. Box in Wheeling, West Virginia. In addition, Kalemon admitted negotiating another 176 fraudulent checks drawn against his former employer between March of 2012 and July of 2014, all of which he cashed in Wheeling for another $56,000.
Prior to imposing sentence, Judge Diamond stated that this well-planned crime was a violation of trust; and, although the defendant’s family responsibilities were a mitigating factor, the crime was aggravated because the defendant continued it after being detected.
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Kalemon.
Pittsburgh Man Facing 10 Years in Prison After Admitting to Possession of Child PornographyRead the Press Release
PITTSBURGH, Pa. – An Allegheny County resident pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
James Stover, 28, formerly of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Gustave Diamond.
In connection with the guilty plea, the court was advised that on or about Aug. 15, 2013, Stover 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.
Judge Diamond scheduled sentencing for May 12, 2015, at 10 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Stover.
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.
Mortgage Broker Sentenced to 5 Years in Prison for Defrauding LendersRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 60 months of imprisonment, to be followed by five years of supervised release, on his conviction of conspiracy to commit wire fraud and bank fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta Ambrose imposed the sentence on Richard Stromberg, 50, of Bethel Park, Pa.
According to information presented to the court, Stromberg has been in the mortgage broker business since the 1990s. He worked first at a company called Century Three Home Equity and then opened his own business, which was called Great American Equity Mortgage. From in and around August of 2002, and continuing until in and around June of 2008, Stromberg knowingly conspired with various other individuals associated with Great American Equity Mortgage, many of whom were former employees of Century Three Home Equity, to defraud lenders. The conspiracy involved the submission to lenders of loan applications that contained material misrepresentations about the borrower’s financial condition, such as inflating the borrower’s income and assets, and appraisals that overstated the values of the properties serving as collateral for the loans. Stromberg and others also submitted false supporting documentation for the misrepresentations contained in the applications.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Mortgage Fraud Task Force for the investigation leading to the successful prosecution of Stromberg. The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Task Force include the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigations; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff's Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.
Bedford County Man Pleads Guilty to Trafficking in Counterfeit Pro Sports Team ApparelRead the Press Release
JOHNSTOWN, Pa. - A resident of Everett, Pa., pleaded guilty in federal court to a charge of trafficking in counterfeit goods, United States Attorney David J. Hickton announced today.
John F. Crawford, IV, 48, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Oct. 25, 2012, Crawford trafficked in various counterfeit National Football League, National Hockey League and Major League Baseball logo apparel.
Judge Gibson scheduled sentencing for May 12, 2015, at 10 a.m. The law provides for a total sentence of 10 years in prison, a fine of $2,000,000, 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.
Pending sentencing, the court released Crawford on $5,000 bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Department of Homeland Security-Homeland Security Investigations conducted the investigation that led to the prosecution of Crawford.
Woman's Sentence for Refusing to Testify to Run Concurrent with Drug Conviction Prison TimeRead the Press Release
PITTSBURGH -A Pittsburgh resident has been sentenced in federal court to 21 months imprisonment to run concurrently with the 120 months imprisonment on a prior federal drug conviction and three years supervised release on her conviction of criminal contempt of court, United States Attorney David J. Hickton announced today.
Senior United States District Judge Allen N. Bloch imposed the sentence on Marquetta Lavelle Mitchell, 41.
According to information presented to the court, Mitchell disobeyed and resisted the lawful process, order and command of a Court of the United States, that is, she refused to testify at the October 16-22, 2012, trial of her boyfriend, Andre Williams, for charges that included conspiracy to possess with intent to distribute five kilograms or more of cocaine, at Case Number 11-116, despite: the subpoena that required her to do so; an instruction from Senior United States District Court Judge Alan N. Bloch that her Fifth Amendment rights had been extinguished; and a written order compelling her to testify pursuant to a grant of immunity from Senior United States District Court Judge Alan N. Bloch.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration, Homeland Security Investigations and the 21st Judicial District Drug Task Force in Tennessee for the investigation leading to the successful prosecution of Marquetta LavelleMitchell.
Deported Illegal Alien Sentenced to Time Served for Re-entering U.S.Read the Press Release
PITTSBURGH - An alien found in Pittsburgh, Pennsylvania, has been sentenced in federal court to time served and one year supervised release on his charge of illegal re-entry after deportation, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on German Cardenas-Leon, 42, of Mexico.
According to the information presented to the court, German Cardenas-Leon, a/k/a Eduardo Hurieta, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on July 1, 2003. German Cardenas-Leon was found by agents of United States Immigration and Customs Enforcement to be illegally present in Pittsburgh, Pa., on June 26, 2014.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pittsburgh Police Department and the U.S. Department of Homeland Security, Immigration and Customs Enforcement for the investigation leading to the successful prosecution of German Cardenas-Leon, a/k/a Eduardo Hurieta.
Coatesville, Pa., Man Sentenced to 10 Years in Prison for Sex Trafficking A MinorRead the Press Release
PITTSBURGH - A Chester County resident has been sentenced in federal court to 10 years imprisonment, to be followed by five years of supervised release, on his conviction of sex trafficking of a child, United States Attorney David J. Hickton announced today.
Senior United States District Judge Mark R. Hornak imposed the sentence on Rasul Abernathy, 33, formerly of Coatesville, Pa.
According to information presented to the court, in and around December of 2012, to in and around March 2013, Abernathy knowingly recruited, enticed, harbored, transported, provided and obtained a minor, John Doe, to engage in a commercial sex acts.
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, the Allegheny County Police Department and the City of Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Abernathy.
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.
Arkansas Man Gets 20-Year Prison Term for Role in Multi-Million Dollar Cocaine Trafficking SchemeRead the Press Release
PITTSBURGH – An Arkansas man has been sentenced in federal court to 20 years imprisonment followed by 10 years supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Anthony London, of El Dorado, Arkansas, and formerly of Los Angeles and Oakland, Calif.
The IRS Criminal Investigations section joined the DEA as major partners in the investigation of the current case with the valuable assistance of multiple other federal, state and local law enforcement agencies. In part, the investigation relied upon search warrants, court orders, consensually recorded conversations, surveillance and information supplied by confidential sources, as well as records and documents obtained by Grand Jury and Administrative subpoenas. The investigation revealed a major cocaine distribution conspiracy which resulted in cocaine being transported to Pittsburgh and other areas from 2000 through 2010. Defendant Robert Russell Spence, Jr. was a local fulcrum of the conspiracy, which was supplied by various cocaine sources over time. In brief, the investigation revealed that the conspiracy involved over 2000 kilograms of cocaine and millions in laundered drug money. Over time, the conspiracy involved enough cocaine for every current man, woman and child resident of Pennsylvania to have their own $20 rock of crack cocaine. Conspiracies commonly change both members and mechanisms to adapt to changes, and this conspiracy is no different. Aside from changing cocaine sources over time, the conspiracy also changed its common manner of doing business over time as well. For example, prior to the summer of 2007, the conspiracy utilized packages of cocaine being shipped by the US mail or various common carriers from California to recipients such as Spence in Pittsburgh. Documents and evidence reveal the large number of packages of cocaine shipped to the conspirators, as well as the packages of drug money being shipped back. Multiple seizures of both money and cocaine packages occurred. For example, on June 7, 2007 Postal Inspectors intercepted six kilograms of cocaine from the mail that was earmarked for the conspiracy. On Aug. 5, 2007, Postal Inspectors also seized a package containing $99,850.00 intended for a co-defendant.
The conspiracy began using couriers to transport cocaine to Pittsburgh and money back to California. The investigation has revealed that between 2007 and 2010 at least 11 different couriers took approximately 100 flights for the conspiracy. These involved the transportation of cocaine to the Pittsburgh end of the conspiracy and the transportation of drug money back to California. Again, multiple packages of both money and cocaine were intercepted. For example, in February of 2008 co-defendant Ruben Mitchell boarded a plane in Oakland bound for Pittsburgh with cocaine in his luggage. Since the flight attendant had trouble getting the carry-on bag into the overhead bin, an airline employee called a “ramper” put a tag on the bag mistakenly causing it to be removed from the plane during a layover in Las Vegas. There, airline employees opened the bag and discovered it to contain 19 kilograms of cocaine. Mitchell was observed, along with others, looking for the bag in Pittsburgh and he also filed a claim for the bag. On Aug. 8, 2009, over $335,000 in cash, just one part of approximately $700,000 that was sent on this occasion, was seized from the luggage of a conspirator.
During other times, the conspiracy arranged transportation of cocaine or money by means such as chartered private flights and vehicles including tractor trailers. Individuals indicted thus far involve many different roles within the conspiracy. Some conspirators are suppliers, couriers or recipient drug dealer/distributors. Other conspirators played a variety of roles such as: shipping or receiving packages; arranging for couriers, flights and flight payments; money launderers; and those who circumvented security procedures at airports.
The evidence revealed that London took at least six roundtrip airline flights between California and Pittsburgh for this massive drug conspiracy between Nov. 3, 2007 and March 7, 2008. On that later date, federal agents stopped defendant London and co-defendant Anthony Walker in the Oakland airport after they flew from Pittsburgh. Police located a total of $234,000 in heat-sealed drug money in their luggage. London continued to deny knowing Walker during his sentencing hearing, although the evidence revealed that they: took the same flight from the same starting location; walked together from the plane; waited as the other was using the restroom; had receipts from the same Harley Davidson shop in Pennsylvania; and London’s telephone number was used as the contact number when Walker’s flight was booked. During his sentencing, London agreed that he had taken multiple flights, for an agreed upon payment of $4000 each trip, using tickets paid for by others, as a result of the money problems caused by losing his job as a funeral attendant/driver. District Judge Cercone noted the connections between London and other defendants and held that London’s actions make him responsible for 123 kilograms of cocaine. Testimony from a narcotics expert has revealed that this much cocaine would be worth over $12 million on the street and results in over a million doses of cocaine or crack. Judge Cercone held that London’s 20-year jail sentence and 10-year period of supervision was sufficient, but not greater than necessary, considering London’s prior felony cocaine conviction.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the IRS-CI, DEA, Pennsylvania Attorney General and many other federal, state and local law enforcement agencies for the investigation leading to the successful prosecution of Anthony London.
U.S. Attorney Hickton to Address Fordham/FBI International Conference on Cyber SecurityRead the Press Release
PITTSBURGH - United States Attorney David J. Hickton will address the Fifth International Conference on Cyber Security (ICCS) today at 5:45 p.m. in New York City. During his presentation, Unprecedented: The Real Life Experience of Economic Espionage, U.S. Attorney Hickton will discuss theMay 2014 indictment of five members of the Chinese People’s Liberation Army on charges of hacking into computers and stealing valuable trade secrets from Westinghouse, United States Steel Corporation, several other companies and a trade union. He will also discuss how prosecutors worked with the victim entities.
ICCS is the premier global cybersecurity event spanning three days with more than 70 distinguished speakers from government, the private sector, and academia. Each brings unique insights from their expertise in the disciplines of emerging technologies, operations and enforcement, academic and pragmatic experience. The sold out conference is sponsored by the Federal Bureau of Investigation – New York Division and Fordham University.
WHAT: U.S. Attorney Hickton Presentation
Unprecedented: The Real Life Experience of Economic Espionage WHEN: Wednesday, January 7, 2015
5:45 p.m. – 6:15 p.m. WHERE: International Conference on Cyber Security
Costantino Room
Fordham University at Lincoln Center
150 West 62nd Street
New York, NY 10023Duquesne Heights Man Sentenced to Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 32 months of imprisonment, to be followed by 10 years of supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Michael Powers, 66, of Pittsburgh, Pa.
According to information presented to the court, on or about June 21, 2013, Powers knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct.
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 City of Pittsburgh Police Department for the investigation leading to the successful prosecution of Powers.
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 York Man Sentenced to Prison for Counterfeit Cash SchemeRead the Press Release
ERIE, Pa. - A former resident of Binghamton, New York, has been sentenced in federal court to 24 months in jail on his conviction of violating federal counterfeiting laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Larry Patterson, 60.
According to information presented to the court, Patterson manufactured counterfeit federal reserve notes by converting one and five dollar notes into $100 notes. Patterson then mailed the notes to a location in Pennsylvania where they were seized by law enforcement.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service and the Pennsylvania State Police for the investigation leading to the successful prosecution of Patterson.
Judge Sentences Felon to 41 Months in Prison for Illegal Gun PossessionRead the Press Release
ERIE, Pa. - A former resident of Lancaster, Pennsylvania pleaded guilty and was sentenced in federal court to 41 months in jail on his conviction of violating federal guns laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Nicholas Alexander Reynolds, 23.
According to information presented to the court, on or about December 19, 2013, Reynolds possessed a firearm while being a convicted felon.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Marshal’s Service and the Titusville Police Department for the investigation leading to the successful prosecution of Reynolds.
Erie Man Pleads Guilty to Federal Gun ChargesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal gun laws, United States Attorney David J. Hickton announced today.
Gerald Szymanowski, 66, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on or about June 19, 2014, Szymanowski possessed approximately 38 unregistered firearms, including machineguns, silencers and destructive devices not registered to him in the National Firearms Registration and Transfer record and manufactured approximately 372 devices of varying sizes containing explosive materials.
Judge Cercone scheduled sentencing for May 11, 2015 at 2:15 p.m. The law provides for a total sentence of 20 years in prison, a fine of $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.
Pending sentencing, the court continued Szymanowski on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Szymanowski.
Warren, Ohio, Man Sentenced to Prison for Role in Ohio to Western PA Cocaine Trafficking PipelineRead the Press Release
PITTSBURGH - A resident of Warren, Ohio, has been sentenced in federal court to 21 months imprisonment followed by 3 years supervised release on his conviction of violating federal drug trafficking laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Terence F. McVerry imposed the sentence on Allan Williams, 40.
According to information presented to the court, from in and around January 2011 and continuing thereafter to in and around June 2012, Williams conspired with others to distribute and possess with intent to distribute cocaine.
The prosecution of Williams was the result of a long-term investigation that involved wiretaps on cell phones utilized by several members of the conspiracy. At the conclusion of the investigation, twenty defendants (including Williams) were charged in a large-scale cocaine conspiracy that operated between Warren, Ohio, and Washington, Pennsylvania. All twenty defendants have since pleaded guilty. The same investigation also resulted in the prosecution of ten defendants charged in a large-scale heroin conspiracy that operated between Detroit, Michigan, and Washington, Pennsylvania. All ten defendants have likewise pleaded guilty.
Assistant United States Attorneys Charles A. Eberle and Barbara K. Doolittle prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Williams.
Federal Arson and Fraud Charges Lodged Against Oakdale WomanRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of malicious destruction of property by fire and wire fraud, United States Attorney David J. Hickton announced today.
The four-count Indictment named Andrea Forsythe, 26, of Oakdale, Pa., as the sole defendant.
According to the Indictment, on or about June 23, 2014, Forsythe set fire to a residential structure located in Sturgeon, Pa., a rental home where she had been residing, so that she could obtain money from the insurance company which provided coverage on that structure. The fraud charges in the Indictment allege that from in and around June of 2014, and continuing thereafter until on or about Dec. 1, 2014, Forsythe engaged in a scheme to defraud Nationwide insurance company in connection with the claim she made for the fire loss.
The law provides for a maximum total sentence of 80 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 Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Allegheny County Fire Marshal’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.
Pittsburgh Woman Sentenced to Probation for Defrauding Social SecurityRead the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to two years of probation and ordered to pay $78,719.00 in restitution on her conviction of theft of government property, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Laverne Russell, 74.
According to information presented to the court, Russell converted to her own use over $78,000 in Social Security Income Benefits from the Social Security Administration.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Social Security Administration, Office of Inspector General, for the investigation leading to the successful prosecution of Russell.
Utility Company CFO Pleads Guilty to Defrauding Bank, IRSRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of bank fraud and tax evasion, United States Attorney David J. Hickton announced today.
Brian M. Quimby, 48, pleaded guilty to two counts before Senior United States District Judge Maurice B. Cohill, Jr.
In connection with the guilty plea, the court was advised that while Quimby was employed as CFO of Thayer Power and Communications, he defrauded Key Bank. In addition, Quimby failed to file his income tax return for calendar year 2007.
Judge Cohill scheduled sentencing for May 4, 2015 at 11:00 a.m. The law provides for a total sentence of 35 years in prison, a fine of $1,250,000, 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 Quimby on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Quimby.
Uniontown Man Charged with Child Pornography PossessionRead the Press Release
PITTSBURGH - A resident of Fayette County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The one-count indictment named Jeremy S. Burnworth, 35, of Uniontown, Pa., as the sole defendant.
According to the indictment, on or about June 2, 2014, Burnworth knowingly possessed images in digital files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum total sentence of 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 Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Reserve Township Police Department, and the Pennsylvania Office of Attorney General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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.
Venango County Man Sentenced for Safe Drinking Water Act ViolationsRead the Press Release
ERIE, Pa. - A resident of Pleasantville, Pennsylvania, has been sentenced in federal court to 6 months in jail, 12 months home detention, 3 years supervised release and ordered to make restitution in the amount of $236,524.73 on his conviction of making false statements in matters relevant to permits issued under the Safe Drinking Water Act, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Ronald A. Wright, 45.
According to information presented to the court, between in and around September 2009, to in and around April 2011, Wright falsified certificates of well plugging, falsely claiming that he had properly plugged abandoned oil wells, when he had not properly done so. These forms were relied upon by the EPA in regard to permits issued for Class II injection wells. These injection wells were to be used for the injection of oil production brine fluid and for the enhanced recovery process of oil extraction. The approval process for these injection wells required all abandoned wells within a quarter mile of the injection well site to have first been properly plugged. On January 12, 2012, inspectors with the Environmental Protection Agency (EPA), were on site to conduct a mechanical integrity test of the injection well when it was discovered that injected fluid had entered the bottom of an abandoned well because it had not been properly plugged to the bottom. According to the information presented in court, further investigation revealed that many of the wells that were plugged by Wright were not plugged as he claimed in the certificates of well plugging. In some instances, the certificates of well plugging falsely claimed that wells were properly plugged at depths greater than 2,000 feet when, in fact, the wells were only plugged at depths of less than 1,000 feet. According to the information presented in court, the discovery of Wright’s falsification of the plugging reports has required the re-inspection, and likely re-drilling and re-plugging, of 95 wells.
“EPA’s mission of protecting human health and the environment is dependent, in large part, on the veracity of the information it receives,” said David G. McLeod, Jr., Special Agent in Charge of EPA’s criminal enforcement program in the Middle Atlantic States. “Today’s sentencing should send a strong message that EPA and its partners will hold those accountable, who knowingly submit false reports and undermine our efforts to protect human health and the environment.”
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Environmental Protection Agency – Criminal Investigation Division, the Pennsylvania Office of Attorney General – Environmental Crimes Section, and the U.S. Forest Service – Law Enforcement and Investigations for the investigation leading to the successful prosecution of Wright.
Federal Inmate Gets 20-Month Sentenced for Possessing Suboxone in PrisonRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania pleaded guilty and was sentenced in federal court to 20 months in jail on his conviction of possession of contraband in prison, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Ricardo Ramos, 34. The sentence was imposed to run consecutively to the sentence Ramos is currently serving.
According to information presented to the court, on or about April 29, 2014, Ramos was in possession of contraband, namely, a quantity of buprenorphine (suboxone).
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Officers of the McKean Federal Correctional Institution for the investigation leading to the successful prosecution of Ramos.
Corry Physician Pleads Guilty to Possessing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Corry, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
William Jay Blazes, 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 Blazes possessed approximately 7,000 computer images and movies depicting minors engaging in sexually explicit conduct.
Judge Cercone scheduled sentencing for April 6, 2015 at 12:45 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Blazes on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Corry Police Department, the Erie County District Attorney’s Office, and the Pennsylvania State Police conducted the investigation that led to the prosecution of Blazes.
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.
Federal Jury Convicts Michigan Man on All Charges for Armed Robbery at AT&T StoreRead the Press Release
PITTSBURGH – Brandon Kennedy, a resident of Inkster, Michigan, was convicted at the conclusion of a federal jury trial of committing an interstate armed robbery, of using and carrying a firearm during and in relation to a crime of violence, and of being a convicted felon in possession of a firearm, United States Attorney David J. Hickton announced today.
The jury convicted Kennedy after a three-day trial that concluded on December 18, 2014, and that was presided over by United States District Judge Nora Barry Fischer. The jury was presented with evidence that Kennedy, on November 26, 2012, traveled from the Detroit, Michigan, area to the AT&T retail store located at 970 Greentree Road, Pittsburgh, Pennsylvania, and robbed the store at gunpoint. Kennedy brandished a loaded .45 caliber Ruger pistol at the store employees during the robbery and after he had already been convicted of a felony crime in a prior case. The robbery resulted in the forcible theft of 12 iPads and 14 iPhones as well as other electronic devices and cash.
Kennedy was previously prosecuted in state court in Michigan for committing an armed robbery at an AT&T retail store in Oakland County, Michigan, in September 2011. Kennedy was acquitted at the conclusion of a state jury trial in March 2012. Kennedy committed the armed robbery at the Pittsburgh AT&T store following the acquittal.
The law provides for a maximum total sentence of at least seven years and up to life in prison, a fine of up to $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Green Tree Police Department, the South Rockwood (Michigan) Police Department, and the Inkster (Michigan) Police Department investigated this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Criminal Charges Filed Against U.S. Citizen in Connection with a Multi-Million Dollar International Cyber Counterfeiting Scheme Based in UgandaRead the Press Release
U.S. Attorney David J. Hickton for the Western District of Pennsylvania and U.S. Secret Service Special Agent in Charge Eric P. Zahren of the Pittsburgh Field Office today announced the filing of a criminal complaint in Pittsburgh charging a U.S. citizen with leading an international counterfeit currency operation headquartered in the Republic of Uganda.
Ryan Andrew Gustafson, aka Jack Farrel, aka Willy Clock, 27, a U.S. citizen currently residing in Kampala, Uganda, was charged with conspiracy and counterfeiting acts committed outside of the U.S. When he lived in the United States, he mainly resided in Texas and Colorado.
“This complicated, international cyber counterfeiting conspiracy was broken as a result of expert investigation by the Secret Service and a total commitment of all cooperating law enforcement to reject the premise that criminals committing cybercrimes in the U.S. – but who reside outside our borders – cannot be reached,” stated U.S. Attorney Hickton. “We will hold cyber criminals accountable and bring them to justice no matter where they reside.”
“This investigation involves the manufacture of counterfeit U.S. currency, which has been the Secret Service’s core mission since 1865,” said Special Agent in Charge Zahren. “Add to that the modern elements of an international counterfeiting conspiracy utilizing new-age, cyber technology, and it represents the full evolution and unique investigative capabilities of today’s Secret Service.”
As detailed in the affidavit in support of the criminal complaint, in December 2013, the Secret Service began investigating the passing of counterfeit Federal Reserve Notes (FRNs), believed to be manufactured in Uganda, at Pittsburgh-area retail stores and businesses. Agents determined that an individual identified as J.G. had passed these notes and was renting a postal box at The UPS Store on Pittsburgh’s South Side. On Feb 19, 2014, law enforcement learned that J.G. received three packages addressed from Beyond Computers, located in Kampala, Uganda. Agents executing a search warrant on the packages found $7,000 in counterfeit $100, $50 and $20 FRNs located in two hidden compartments within the packaging envelopes. A fingerprint on a document inside one of the packages was identified as belonging to Ryan Andrew Gustafson.
The Secret Service subsequently worked with Ugandan authorities to identify the source of the counterfeit FRNs. Their efforts led to A.B., who admitted to sending the packages, explaining that an American named “Jack Farrel,” and another person, provided him the counterfeit notes to ship. Based on information provided by A.B., the Secret Service used facial recognition to identify Jack Farrel as Ryan Andrew Gustafson.
According to the affidavit, J.G. met “Willy Clock” on an online criminal forum called Tor Carding Forum. Through private messaging, J.G. and Clock discussed counterfeit currency and J.G. agreed to purchase counterfeit FRNs.
In January 2014, Clock told J.G. that he had established his own online forum called Community-X, a website dedicated to the selling of counterfeit reserve notes. The forum requires a username and password to access the site, and individuals must be invited and approved by Clock to become members. Secret Service used an undercover operative to communicate with Clock through the website, to purchase additional counterfeit $100 FRNs, and to become a re-shipper of counterfeit notes.
In November 2014, the Secret Service executed a search warrant at the residence of another re-shipper, who had been an active member of Community-X. This person cooperated and provided information that a forum member had traveled to Uganda and brought back more than $300,000 in counterfeit notes.
The Secret Service, working with Ugandan authorities, engaged yet another confidential informant, in Uganda, who had knowledge of Jack Farrel and his counterfeiting operations. On Dec. 11 2014, this confidential informant called Farrel to arrange to purchase counterfeit FRNs. The informant met Farrel’s associate and made the buy. Two trusted sources followed the associate back to Farrel’s home and reported the location to the Secret Service who turned it over to the Uganda Special Investigations Unit. Their search of Farrel’s residence netted two million Ugandan shillings from the buy; $180,420 in counterfeit FRNs; counterfeit Euros, Indian Rupees, Ugandan Shillings, Congo Francs, and Ghana Cedis; computers and printers; inks and ink jet cartridges; paper cutters; glue sticks; “Give a Child Hope Today” pamphlets with counterfeit FRNs in between glued together pages; and a pair of “Anon Hands.” Anon Hands are life-like rubber molds that fit like gloves over the user’s hands and are meant to conceal the wearer’s fingerprints. As noted above Farrel has been identified as Gustafson. Evidence collected at the scene also allowed investigators to identify Gustafson as Willy Clock.
Gustafson was charged by Ugandan authorities on Dec. 16 with conspiracy, possession of counterfeit, selling/dealing in counterfeit, and unlawful possession of ammunition. He was brought before the court that day to be informed about the charges; he also is being represented by counsel in Uganda.
U.S. Secret Service estimates $1.8 million in counterfeit FRNs have been seized and passed in Uganda. The total amount of Ugandan-made counterfeit FRNs seized or passed domestically was approximately $270,000. This amount was limited due to early detection by the Secret Service.
U.S. law provides for a maximum total sentence of 25 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
U.S. Attorney Hickton commended numerous agencies and organizations for conducting the investigation leading to charges in this case, including the Directorate of Public Prosecution, the Criminal Investigations and Intelligence Department, the Special Investigations and Intelligence Unit, and Stanbic Bank in Uganda; various domestic and foreign Secret Service Field Offices, including the Rome, Italy, Field Office and the Criminal Investigative Division in Washington, D.C.; the U.S. State Department; the U.S. Postal Inspection Service; the Federal Bureau of Investigation; Homeland Security Investigations; U.S. Customs and Border Protection and the National Cyber-Forensics & Training Alliance.
Assistant U.S. Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
A criminal complaint contains charges and is not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Criminal Charges Filed Against U.S. Citizen in Connection with A Multi-Million Dollar International Cyber Counterfeiting Scheme Based in UgandaRead the Press Release
PITTSBURGH – U.S. Attorney for the Western District of Pennsylvania David J. Hickton and U.S. Secret Service Special Agent in Charge Eric P. Zahren today announced the filing of a criminal complaint in Pittsburgh charging a U.S. citizen with leading an international counterfeit currency operation headquartered in the Republic of Uganda.
Ryan Andrew Gustafson, aka Jack Farrel, aka Willy Clock, 27, a U.S. citizen currently residing in Kampala, Uganda, was charged with conspiracy and counterfeiting acts committed outside of the U.S. When he lived in the United States, he mainly resided in Texas and Colorado.
“This complicated, international cyber counterfeiting conspiracy was broken as a result of expert investigation by the Secret Service and a total commitment of all cooperating law enforcement to reject the premise that criminals committing cybercrimes in the U.S. – but who reside outside our borders – cannot be reached,” stated U.S. Attorney Hickton. “We will hold cyber criminals accountable and bring them to justice no matter where they reside.”
“This investigation involves the manufacture of counterfeit U.S. currency, which has been the Secret Service’s core mission since 1865,” said Special Agent in Charge Zahren of the Pittsburgh Field Office. “Add to that the modern elements of an international counterfeiting conspiracy utilizing new-age, cyber technology, and it represents the full evolution and unique investigative capabilities of today’s Secret Service.”
As detailed in the affidavit in support of the criminal complaint, in December 2013, the Secret Service began investigating the passing of counterfeit Federal Reserve Notes (FRNs), believed to be manufactured in Uganda, at Pittsburgh-area retail stores and businesses. Agents determined that an individual identified as J.G. had passed these notes and was renting a postal box at The UPS Store on Pittsburgh’s South Side. On Feb 19, 2014, law enforcement learned that J.G. received three packages addressed from Beyond Computers, located in Kampala, Uganda. Agents executing a search warrant on the packages found $7,000 in counterfeit $100, $50 and $20 FRNs located in two hidden compartments within the packaging envelopes. A fingerprint on a document inside one of the packages was identified as belonging to Ryan Andrew Gustafson.
The Secret Service subsequently worked with Ugandan authorities to identify the source of the counterfeit FRNs. Their efforts led to A.B., who admitted to sending the packages, explaining that an American named “Jack Farrel”, and another person, provided him the counterfeit notes to ship. Based on information provided by A.B., the Secret Service used facial recognition to identify Jack Farrel as Ryan Andrew Gustafson.
According to the affidavit, J.G. met “Willy Clock” on an online criminal forum called Tor Carding Forum. Through private messaging, J.G. and Clock discussed counterfeit currency and J.G. agreed to purchase counterfeit FRNs.
In January 2014, Clock told J.G. that he had established his own online forum called Community-X, a website dedicated to the selling of counterfeit reserve notes. The forum requires a username and password to access the site, and individuals must be invited and approved by Clock to become members. Secret Service used an undercover operative to communicate with Clock through the website, to purchase additional counterfeit $100 FRNs, and to become a re-shipper of counterfeit notes.
In November 2014, the Secret Service executed a search warrant at the residence of another re-shipper, who had been an active member of Community-X. This person cooperated and provided information that a forum member had traveled to Uganda and brought back more than $300,000 in counterfeit notes.
The Secret Service, working with Ugandan authorities, engaged yet another confidential informant, in Uganda, who had knowledge of Jack Farrel and his counterfeiting operations. On Dec. 11 2014, this confidential informant called Farrel to arrange to purchase counterfeit FRNs. The informant met Farrel’s associate and made the buy. Two trusted sources followed the associate back to Farrel’s home and reported the location to the Secret Service who turned it over to the Uganda Special Investigations Unit. Their search of Farrel’s residence netted two million Ugandan shillings from the buy; $180,420 in counterfeit FRNs; counterfeit Euros, Indian Rupees, Ugandan Shillings, Congo Francs, and Ghana Cedis; computers and printers; inks and ink jet cartridges; paper cutters; glue sticks; “Give a Child Hope Today” pamphlets with counterfeit FRNs in between glued together pages; and a pair of “Anon Hands”. Anon Hands are life-like rubber molds that fit like gloves over the user’s hands and are meant to conceal the wearer’s fingerprints. As noted above Farrel has been identified as Gustafson. Evidence collected at the scene also allowed investigators to identify Gustafson as Willy Clock.
Gustafson was charged by Ugandan authorities on Dec. 16 with conspiracy, possession of counterfeit, selling/dealing in counterfeit, and unlawful possession of ammunition. He was brought before the court that day to be informed about the charges; he also is being represented by counsel in Uganda.
U.S. Secret Service estimates $1.8 million in counterfeit FRNs have been seized and passed in Uganda. The total amount of Ugandan-made counterfeit FRNs seized or passed domestically was approximately $270,000. This amount was limited due to early detection by the Secret Service.
U.S. law provides for a maximum total sentence of 25 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
U.S. Attorney Hickton commended numerous agencies and organizations for conducting the investigation leading to charges in this case, including the Directorate of Public Prosecution, the Criminal Investigations and Intelligence Department, the Special Investigations and Intelligence Unit, and Stanbic Bank in Uganda; various domestic and foreign Secret Service Field Offices, including the Rome, Italy, Field Office and the Criminal Investigative Division in Washington, D.C.; the U.S. State Department; the U.S. Postal Inspection Service; the Federal Bureau of Investigation; Homeland Security Investigations; U.S. Customs and Border Protection and the National Cyber-Forensics & Training Alliance.
Assistant U.S. Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
A criminal complaint contains charges and is not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Oregon Man Sentenced to Prison Term for Role in Lowmaster Drug Distribution RingRead the Press Release
JOHNSTOWN, Pa. – An Oregon man has been sentenced in federal court to nine months in prison and four years supervised release on his conviction of conspiracy to distribute and possess with the intent to distribute marijuana, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Brian V. Knee, 43, of Eugene, Oregon.
According to information presented to the court, from March 2009 to May 9, 2011, Knee conspired to distribute and possess with the intent to distribute 100 kilograms or more of marijuana in order to facilitate and promote George M. Lowmaster's drug distribution organization.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Knee. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, Pennsylvania Attorney General's Office, Cambria County District Attorney's Office, Carrolltown Police Department, Patton Police Department, Ebensburg Police Department, Portage Police Department and Paint Township Police Department.