Western District of Pennsylvania
Press releases recorded for this federal judicial district.
Johnstown Woman Conspired to Distribute Crack CocaineRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, pleaded guilty in federal court to a charge of conspiracy to distribute and possess cocaine base, in the form commonly known as "crack," United States Attorney David J. Hickton announced today.
Donna M. Hawk, 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 from Jan. 31, to April 23, 2013, Hawk conspired with co-defendants to distribute more than 28 grams of cocaine base.
Judge Gibson scheduled sentencing for Dec. 4, 2014, at 10 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.
Pending sentencing, the court continued Hawk on bond.
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 Hawk.
Deported Alien Charged with Illegally Returning to U.S.Read the Press Release
PITTSBURGH - An alien found in Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of illegal re-entry after deportation, United States Attorney David J. Hickton announced today.
The one-count indictment named Jose Hernandez-Segura, 35, of El Salvador, as the sole defendant.
According to the indictment presented to the court, Jose Hernandez-Segura, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on Jan. 25, 2012. Jose Hernandez-Segura was found to be illegally present in Allegheny County, Pennsylvania, on April 19, 2014.
The law provides for a maximum total sentence of 2 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 Gregory C. Melucci is prosecuting this case on behalf of the government.
The U.S. Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Schuylkill County Woman Sentenced for Role in False Income Tax Return SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Mahanoy City, Pa., has been sentenced in federal court to five years probation, the first 14 months of which must be served by conditions of home confinement, and pay restitution to the Internal Revenue Service in the amount of $128,105 on her conviction of conspiracy to defraud the government, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Kimberly Lynn Snyder, 38.
According to information presented to the court, from April 2008 to Oct. 2010 Snyder conspired to file 72 false and fictitious income tax returns claiming tax refunds totaling $210,581.
Assistant United States Attorney John J. Valkovci, Jr. prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service-Criminal Investigation for the investigation leading to the successful prosecution of Snyder.
McCandless Man Received Child Pornography, Faces at Least 5 Years in PrisonRead 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.
Mark Janosko, 48, of Pittsburgh, Pennsylvania pleaded guilty to one count before United States District Judge Mark R. Hornak.
According to information presented to the court, on or about July 3, 2013, Janosko received images containing material depicting the sexual exploitation of minors.
Judge Hornak scheduled sentencing for Oct. 9, 2014 at 9:30 a.m. The law provides for a mandatory minimum sentence of 5 years in prison and a maximum of 20 years imprisonment, a fine of $250,000.00, 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 Pennsylvania State Police, and the Indiana County and Allegheny County District Attorney’s Office and the McCandless Police Department conducted the investigation that led to the prosecution of Janosko.
This case was brought as part of the 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 marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For information about Project Safe Childhood, please visit www.justice.gov/psc .
Johnstown Man Pleads Guilty to Distributing HeroinRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Matthew John Claycomb, 22, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Jan. 25, 2013, Matthew John Claycomb along with co-defendants, distributed less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Matthew John Claycomb on Dec. 2, 2014, at 10 a.m.
The law provides for a maximum total sentence for Matthew John Claycomb of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Matthew John Claycomb.
Latrobe Post Office Employee Stole $55K in Money Orders and CashRead the Press Release
PITTSBURGH – A Westmoreland County woman pleaded guilty in federal court to a charge of misappropriation of postal funds, United States Attorney David J. Hickton announced today.
Jessica L. Croyle, 32, of Greensburg, Pa., pleaded guilty to one count before Senior United States District Court Judge Maurice B. Cohill, Jr.
In connection with the guilty plea, the court was advised that from Nov. 1, 2012, to July 19, 2013, Croyle, while employed with the United States Postal Service at the Latrobe, Pennsylvania post office, wrongfully converted to her own use, postal money orders and cash having a total value of $55,362.90.
Judge Cohill scheduled sentencing for Sept. 22, 2014 at 3:30 p.m. The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Croyle on a $25,000 unsecured bond.
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, conducted the investigation that led to the prosecution of Croyle.
Jury Finds Appraiser Guilty of Bank FraudRead the Press Release
PITTSBURGH - After deliberating for approximately five hours, a federal jury of five men and seven women found James Lignelli guilty of three counts of bank fraud, United States Attorney David J. Hickton announced today.
Lignelli, 59, of Presto, Pa., was tried before United States District Judge Terrence F. McVerry in Pittsburgh.
According to Assistant United States Attorney Brendan T. Conway, who prosecuted the case, the evidence presented at trial established that Lignelli was an appraiser who provided fraudulently elevated appraisals in support of fraudulent loan applications in connection with two different mortgage fraud schemes. The first scheme involved Michael Pope, who operated Pope Financial Services and Tiffany Sprouts, who operated Sprouts Mortgage. Lignelli participated in a bank fraud scheme by preparing fraudulently elevated appraisals for the property located in McMurray, Pa., which was sold through the conspiracy for approximately $1.2 million. The second scheme involved a mortgage broker named Michael Staaf, who operated Beaver Financial Services, a mortgage broker company. Lignelli participated in a bank fraud scheme by preparing a fraudulent appraisal for a property located on Perry Highway in the North Hills of Pittsburgh.
Judge McVerry scheduled sentencing for Sept. 26, 2014, at 1:30 p.m. The law provides for a total sentence of 90 years in prison, a fine of $3,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Mortgage Fraud Task Force conducted the investigation that led to the prosecution of Lignelli. 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 Investigation; 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 Man Charged with Distribution and Possession of Child PornographyRead the Press Release
JOHNSTOWN, Pa. – A resident of Bedford, Pa., was indicted on June 3, 2014, by a federal grand jury in Johnstown on charges of distribution and possession of child pornography, United States Attorney David J. Hickton announced today.
The two-count indictment named Wade C. Baer, 30, as the sole defendant.
According to the indictment presented to the court, on Feb. 19, 2013, Baer distributed a picture via the Internet which depicted a minor engaging in sexually explicit conduct, and on March 7, 2013, he knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Southwest Computer Crime Task Force of the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
ICE Investigation Leads to Indictment of Crescent Man on Child Porn ChargesRead the Press Release
PITTSBURGH - An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of receipt and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The four-count indictment named Mark A. Chasey, 49, of Crescent, Pa., as the sole defendant.
According to the indictment, on or about Nov. 2, 2012, Nov. 4, 2012, and Nov. 5, 2012, Chasey knowingly received visual depictions of minors engaged in sexually explicit conduct by computer. The indictment further alleges that from in and around November of 2012, and continuing until in and around October of 2013, Chasey knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum total sentence of 70 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 United States Department of Homeland Security Investigations, Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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.
Farrell Man Pleads Guilty to Gun Charge, Sentence Will Be Served Consecutive to State Jail TimeRead the Press Release
PITTSBURGH - A resident of Farrell, Pa., pleaded guilty in federal court to a charge of brandishing a firearm during and in relation to drug trafficking, United States Attorney David J. Hickton announced today.
Jashaad Coleman, 20, pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill. The plea agreement entered into in this case calls for a stipulated sentence of seven years, to be served consecutively to the 4-year to 11-year sentence Coleman is currently serving in Pennsylvania state custody for a firearm and robbery conviction.
In connection with the guilty plea, the Court was advised that in the early morning hours of July 31, 2012, a vehicle carrying two individuals known to be associated with drug trafficking was stopped by officers employed by the Southwest Mercer County Regional Police Department. Coleman knew that this vehicle was carrying a quantity of crack cocaine for distribution, and upon learning that this vehicle had been subject to a traffic stop, he rode to the scene of the stop. There, Coleman pulled out a 9mm firearm, which he discharged towards the officers, with the goal of distracting the officers from the vehicle that they had stopped. Law enforcement took cover, and both the occupants of the vehicle and the crack cocaine were not recovered by the police.
In February, 2013, Coleman was tried before a Mercer County jury for unauthorized possession of a firearm as it related to the abovementioned shooting. Coleman was acquitted of this crime. Federal charges were then brought resulting in the guilty plea to the federal firearms charge.
Judge Cohill scheduled sentencing for Sept. 16, 2014, at 2:30 p.m.
Pending sentencing, the court detained Coleman pursuant to the 4-year to 11-year sentence Coleman is currently is serving in the State of Pennsylvania.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the United States.
The Pennsylvania State Police, the Southwest Mercer County Regional Police, the Mercer County District Attorney's Office, and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Jashaad Coleman.
Citizen of India Sentenced to Prison for Emailing Rape ThreatRead the Press Release
PITTSBURGH - A citizen of India, has been sentenced in federal court to 18 months incarceration on his conviction of violating federal law, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Karthikeyan Natarajan, 27, of La Jolla, Calif.
According to information presented to the court, on April 5, 2013, Natarajan willfully transmitted a threat via interstate commerce to injure the person of another, that is, he sent a threat via computer electronic communications to an individual threatening to rape her.
Assistant United States Attorney Amy L. Johnston prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and Carnegie Mellon Police Department for the investigation leading to the successful prosecution of Natarajan.
Local Woman Admits Stealing $78K in Social Security Income BenefitsRead the Press Release
PITTSBURGH - A Pittsburgh resident pleaded guilty in federal court to a charge of theft of government property, United States Attorney David J. Hickton announced today.
Laverne Russell, 73, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Russell converted to her own use over $78,000 in Social Security Income Benefits from the Social Security Administration.
Judge Fischer scheduled sentencing for Oct. 15, 2014 at 9 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued bond pending sentencing.
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 Laverne Russell.
Brookline Man Sentenced to 3 Years in Prison for Conspiring to Traffic Controlled ChemicalRead the Press Release
PITTSBURGH - A Pittsburgh man has been sentenced in federal court to 37 months imprisonment followed by five years supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Patrick Taylor, 34.
According to information presented to the court, on or about Nov. 12, 2011, and continuing thereafter to on or about March 6, 2013, in the Western District of Pennsylvania and elsewhere, Taylor conspired with others to distribute and possess with intent to distribute a quantity of a mixture and substance containing a detectable amount of methylone, a Schedule I controlled substance. Specifically, Taylor contacted a source of supply in China via the Internet, and arranged for the importation of kilogram quantities of methylone into the United States for further distribution.
Methylone is a psychoactive chemical that is structurally and pharmacologically similar to the Schedule I substance MDMA. On April 12, 2013, the Administrator of the DEA issued a Final Rule, which scheduled methylone as a Schedule I controlled substance. Schedule I status is reserved for those substances with a high potential for abuse, no currently accepted use for treatment in the United States, and a lack of accepted safety for use of the drug under medical supervision.
Assistant United States Attorney Katherine A. King prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security - Homeland Security Investigations, the United States Postal Service, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Patrick Taylor.
Storeowner Sentenced for Defrauding Food Stamp ProgramRead the Press Release
PITTSBURGH - A Whitehall resident has been sentenced in federal court to three years’ probation with eight months’ home detention and ordered to pay $101,333 in restitution on his conviction of wire fraud and food stamp fraud, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Samson Dweh, 32 of Pittsburgh, Pa.
According to information presented to the court, Dweh was the owner and operator of Mariama African Store, a retail specialty food store on Brownsville Road in Pittsburgh. Mariama participated in the United States Department of Agriculture's Supplemental Nutrition Assistance Program, commonly known as the Food Stamp Program. Food stamp recipients could purchase eligible food items at Mariama using food stamp benefit cards. The defendant was aware that Food Stamp Program rules prohibited the exchange of food stamp benefits for cash and/or ineligible items. Despite this knowledge, on multiple occasions, the defendant exchanged food stamp benefits for cash on a discounted basis, usually giving his customers only 50 cents on the dollar for food stamp benefits. The defendant also permitted food stamp customers to purchase ineligible items with food stamp benefits and accepted food stamp benefits as payment on credit accounts and loans.
Prior to imposing sentence, Judge Cercone stated that the sentence, which was within the advisory range established by the United States Sentencing Guidelines, was a necessary and appropriate sentence.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government. Assistant United States Attorney Colin Callahan litigated the case on behalf of the Affirmative Civil Enforcement Section of the United States Attorney's Office.
U.S. Attorney Hickton commended the Office of the Inspector General for the United States Department of Agriculture and the Department of Homeland Security, Homeland Security Investigations for the investigation leading to the successful prosecution of Dweh.
California Man Sentenced to 10 Years in Prison for Conspiring to Distribute MethamphetamineRead the Press Release
PITTSBURGH - A resident of Elk Grove, Calif., has been sentenced in federal court to 10 years imprisonment, to be followed by five years of supervised release, on his conviction of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Joseph Rojas, 28.
According to information presented to the court, Rojas conspired to distribute in excess of 50 grams of methamphetamine. Rojas acknowledged that he was responsible for distributing one pound of “ice,” a pure form of methamphetamine. The “ice” seized in this case was over 90% pure.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration and the Pennsylvania State Police for the investigation leading to the successful prosecution of Rojas.
Millvale Police Officer Charged with Unlawfully Using A Taser on A Handcuffed PersonRead the Press Release
PITTSBURGH - A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on a charge of deprivation of rights under color of law, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on June 3, named Nicole Murphy, 30, as the sole defendant.
According to the indictment, on Sept. 21, 2012, Nicole Murphy, while acting under color of law as a police officer with the Millvale Police Department, deprived an individual identified as T.S. of the constitutional right to be free from unreasonable seizure, by deploying a Taser in both drive and probe-stun modes on T.S.’s person while he was handcuffed.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Periodontist Pleads Guilty to Filing A False Tax ReturnRead the Press Release
PITTSBURGH - A Pittsburgh man pleaded guilty in federal court to a charge of filing a false income tax return, United States Attorney David J. Hickton announced today.
Periodontist Charles W. Schwimer, pleaded guilty to a one-count information before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that in March of 2010 Schwimer filed a false income tax return for the year 2009. The return was false in that Schwimer had included approximately $29,000 in deductions for business expenses in connection with his dental practice on his tax return, which were in fact purely personal expenditures that were not business related, such as condo fees, personal auto insurance, landscaping, utility and home cleaning expenses. The return was also false in that he failed to report cash that he had received directly from his employees who in turn had received cash payments from the patients of his dental practice.
Judge Schwab scheduled sentencing for Sept. 24 at 8:30 am. The law provides for a total sentence of no more than three 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 criminal history, if any, of the defendant.
Pending sentencing, the court released Mr. Schwimer on $10,000 bail.
The Internal Revenue Service/Criminal Investigations conducted the investigation that led to the prosecution of Schwimer.
Johnstown Man Charged with Distributing Crack CocaineRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been indicted by a federal grand jury in Johnstown on a charge of distribution of cocaine base, in the form commonly known as "crack", United States Attorney David J. Hickton announced today.
The one-count indictment named John D. Malden, 39, as the sole defendant.
According to the indictment presented to the court, on April 25, 2013, Malden distributed less than 28 grams of cocaine base.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Cambria County Drug Task Force 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.
U.S. Leads Multi-National Action Against “Gameover Zeus” Botnet and “Cryptolocker” Ransomware, Charges Botnet AdministratorRead the Press Release
WASHINGTON, D.C. – The Justice Department today announced a multi-national effort to disrupt the Gameover Zeus Botnet – a global network of infected victim computers used by cyber criminals to steal millions of dollars from businesses and consumers – and unsealed criminal charges in Pittsburgh, Pennsylvania, and Omaha, Nebraska, against an administrator of the botnet. In a separate action, U.S. and foreign law enforcement officials worked together to seize computer servers central to the malicious software or “malware” known as Cryptolocker, a form of “ransomware” that encrypts the files on victims’ computers until they pay a ransom.
Deputy Attorney General James M. Cole, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, FBI Executive Assistant Director Robert Anderson Jr., U.S. Attorney David J. Hickton of the Western District of Pennsylvania, U.S. Attorney Deborah R. Gilg of the District of Nebraska, and Department of Homeland Security’s (DHS) Deputy Under Secretary Dr. Phyllis Schneck made the announcement.
Victims of Gameover Zeus may use the following website created by DHS’s Computer Emergency Readiness Team (US-CERT) for assistance in removing the malware: https://www.us-cert.gov/gameoverzeus.
“This operation disrupted a global botnet that had stolen millions from businesses and consumers as well as a complex ransomware scheme that secretly encrypted hard drives and then demanded payments for giving users access to their own files and data,” said Deputy Attorney General Cole. “We succeeded in disabling Gameover Zeus and Cryptolocker only because we blended innovative legal and technical tactics with traditional law enforcement tools and developed strong working relationships with private industry experts and law enforcement counterparts in more than 10 countries around the world.”
“These schemes were highly sophisticated and immensely lucrative, and the cyber criminals did not make them easy to reach or disrupt,” said Assistant Attorney General Caldwell. “But under the leadership of the Justice Department, U.S. law enforcement, foreign partners in more than 10 different countries and numerous private sector partners joined together to disrupt both these schemes. Through these court-authorized operations, we have started to repair the damage the cyber criminals have caused over the past few years, we are helping victims regain control of their own computers, and we are protecting future potential victims from attack.”
“Gameover Zeus is the most sophisticated botnet the FBI and our allies have ever attempted to disrupt,” said FBI Executive Assistant Director Anderson. “The efforts announced today are a direct result of the effective relationships we have with our partners in the private sector, international law enforcement, and within the U.S. government.”
“The borderless, insidious nature of computer hacking and cybertheft requires us to be bold and imaginative,” said U.S. Attorney Hickton. “We take this action on behalf of hundreds of thousands of computer users who were unwittingly infected and victimized.”
“The sophisticated computer malware targeting of U.S. victims by a global criminal enterprise demonstrates the grave threat of cybercrime to our citizens,” said U.S. Attorney Gilg. “We are grateful for the outstanding collaboration of our international and U.S. law enforcement partners in this successful investigation.”
“The FBI has demonstrated great leadership in continuing to help combat cyber crime, and our international and private sector partners have made enormous contributions as well,” said Deputy Under Secretary Schneck. “This collective effort reflects our ‘whole-of-government’ approach to cybersecurity. DHS is proud to support our partners in helping to identify compromised computers, sharing that information rapidly, and developing useful information and mitigation strategies to help the owners of hacked systems.”
Gameover Zeus Administrator Charged
A federal grand jury in Pittsburgh unsealed a 14-count indictment against Evgeniy Mikhailovich Bogachev, 30, of Anapa, Russian Federation, charging him with conspiracy, computer hacking, wire fraud, bank fraud and money laundering in connection with his alleged role as an administrator of the Gameover Zeus botnet. Bogachev was also charged by criminal complaint in Omaha with conspiracy to commit bank fraud related to his alleged involvement in the operation of a prior variant of Zeus malware known as “Jabber Zeus.”
In a separate civil injunction application filed by the United States in federal court in Pittsburgh, Bogachev is identified as a leader of a tightly knit gang of cyber criminals based in Russia and Ukraine that is responsible for the development and operation of both the Gameover Zeus and Cryptolocker schemes. An investigation led in Washington, D.C., identified the Gameover Zeus network as a common distribution mechanism for Cryptolocker. Unsolicited emails containing an infected file purporting to be a voicemail or shipping confirmation are also widely used to distribute Cryptolocker. When opened, those attachments infect victims’ computers. Bogachev is alleged in the civil filing to be an administrator of both Gameover Zeus and Cryptolocker. The injunction filing further alleges that Bogachev is linked to the well-known online nicknames “Slavik” and “Pollingsoon,” among others. The criminal complaint filed in Omaha alleges that Bogachev also used “Lucky12345,” a well-known online moniker previously the subject of criminal charges in September 2012 that were unsealed in Omaha on April 11, 2014.
Disruption of Gameover Zeus Botnet
Gameover Zeus, also known as “Peer-to-Peer Zeus,” is an extremely sophisticated type of malware designed to steal banking and other credentials from the computers it infects. Unknown to their rightful owners, the infected computers also secretly become part of a global network of compromised computers known as a “botnet,” a powerful online tool that cyber criminals can use for numerous criminal purposes besides stealing confidential information from the infected machines themselves. Gameover Zeus, which first emerged around September 2011, is the latest version of Zeus malware that began appearing at least as early as 2007. Gameover Zeus’s decentralized, peer-to-peer structure differentiates it from earlier Zeus variants. Security researchers estimate that between 500,000 and 1 million computers worldwide are infected with Gameover Zeus, and that approximately 25 percent of the infected computers are located in the United States. The principal purpose of the botnet is to capture banking credentials from infected computers. Those credentials are then used to initiate or re-direct wire transfers to accounts overseas that are controlled by cyber criminals. The FBI estimates that Gameover Zeus is responsible for more than $100 million in losses.
The Gameover Zeus botnet operates silently on victim computers by directing those computers to reach out to receive commands from other computers in the botnet and to funnel stolen banking credentials back to the criminals who control the botnet. For this reason, in addition to the criminal charges announced today, the United States obtained civil and criminal court orders in federal court in Pittsburgh authorizing measures to redirect the automated requests by victim computers for additional instructions away from the criminal operators to substitute servers established pursuant to court order. The order authorizes the FBI to obtain the Internet Protocol addresses of the victim computers reaching out to the substitute servers and to provide that information to US-CERT to distribute to other countries’ CERTS and private industry to assist victims in removing the Gameover Zeus malware from their computers. At no point during the operation did the FBI or law enforcement access the content of any of the victims' computers or electronic communications.
Besides the United States, law enforcement from the Australian Federal Police; the National Police of the Netherlands National High Tech Crime Unit; European Cybercrime Centre (EC3); Germany’s Bundeskriminalamt; France’s Police Judiciare; Italy’s Polizia Postale e delle Comunicazioni; Japan’s National Police Agency; Luxembourg’s Police Grand Ducale; New Zealand Police; the Royal Canadian Mounted Police; Ukraine’s Ministry of Internal Affairs – Division for Combating Cyber Crime; and the United Kingdom’s National Crime Agency participated in the operation. The Defense Criminal Investigative Service of the U.S. Department of Defense also participated in the investigation.
Invaluable technical assistance was provided by Dell SecureWorks and CrowdStrike. Numerous other companies also provided assistance, including facilitating efforts by victims to remediate the damage to their computers inflicted by Gameover Zeus. These companies include Microsoft Corporation, Abuse.ch, Afilias, F-Secure, Level 3 Communications, McAfee, Neustar, Shadowserver, Anubis Networks and Symantec.
The DHS National Cybersecurity and Communications Integration Center (NCCIC), which houses the US-CERT, plays a key role in triaging and collaboratively responding to the threat by providing technical assistance to information system operators, disseminating timely mitigation strategies to known victims, and sharing actionable information to the broader community to help prevent further infections.
Disruption of Cryptolocker
In addition to the disruption operation against Gameover Zeus, the Justice Department led a separate multi-national action to disrupt the malware known as Cryptolocker (sometimes written as “CryptoLocker”), which began appearing about September 2013 and is also a highly sophisticated malware that uses cryptographic key pairs to encrypt the computer files of its victims. Victims are forced to pay hundreds of dollars and often as much as $700 or more to receive the key necessary to unlock their files. If the victim does not pay the ransom, it is impossible to recover their files.
Security researchers estimate that, as of April 2014, Cryptolocker had infected more than 234,000 computers, with approximately half of those in the United States. One estimate indicates that more than $27 million in ransom payments were made in just the first two months since Cryptolocker emerged.
The law enforcement actions against Cryptolocker are the result of an ongoing criminal investigation by the FBI’s Washington Field Office, in coordination with law enforcement counterparts from Canada, Germany, Luxembourg, the Netherlands, United Kingdom and Ukraine.
Companies such as Dell SecureWorks and Deloitte Cyber Risk Services also assisted in the operation against Cryptolocker, as did Carnegie Mellon University and the Georgia Institute of Technology (Georgia Tech). The joint effort aided the FBI in identifying and seizing computer servers acting as command and control hubs for the Cryptolocker malware.
The FBI’s Omaha and Pittsburgh Field Offices led both malware disruptions and conducted the investigation of Bogachev. The prosecution in Pittsburgh is being handled by Assistant U.S. Attorney Shardul Desai of the Western District of Pennsylvania, and the prosecution in Omaha by Trial Attorney William A. Hall of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Steven Russell of the District of Nebraska. The civil action to disrupt the Gameover Zeus botnet and Cryptolocker malware is led by Trial Attorneys Ethan Arenson and David Aaron of CCIPS and Assistant U.S. Attorney Michael A. Comber of the Western District of Pennsylvania.
The Criminal Division’s Office of International Affairs provided significant assistance throughout the criminal and civil investigations.
The details contained in the indictment, criminal complaint and related pleadings are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Anyone claiming an interest in any of the property seized or actions enjoined pursuant to the court orders described in this release is advised to visit the following website for notice of the full contents of the orders: http://www.justice.gov/opa/gameover-zeus.html.
Mercer Man Convicted on Child Pornography Offenses Sentenced to 40 Years in PrisonRead the Press Release
PITTSBURGH - A former resident of Mercer, Pa., has been sentenced in federal court to 40 years imprisonment, followed by supervised release for the remainder of his life, on his conviction of production of material depicting the sexual exploitation of a minor and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Earl Warner, 56.
According to Assistant United States Attorney Carolyn J. Bloch, who prosecuted the case, the evidence presented at trial established that on or about June 4, 2011, June 8, 2011, June 12, 2011, June 13, 2011, July 13, 2011, and July 23, 2011, in the Western District of Pennsylvania, Warner employed, used, persuaded, induced, enticed, and coerced one of three child victims to engage in sexually explicit conduct for the purpose of producing digital photographs and videos of such conduct. Also, on or about April 9, 2012, Warner possessed visual images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct, on two memory cards seized during the execution of a search warrant at his home.
Prior to imposing sentence, Judge Schwab stated that Warner’s crimes were depraved and violent and that the production and storing of the photographs and videos of the sexual assault and abuse of minor children permanently recorded that abuse. The judge further described the defendant’s conduct as having created a horrific nightmare for the children to live.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Pennsylvania State Police, and the Mercer County District Attorney’s Office for the investigation leading to the successful prosecution of Warner.
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.
Downtown Pittsburgh Jeweler Admits Failing to File Required IRS FormRead the Press Release
PITTSBURGH - A Pittsburgh jeweler pleaded guilty in federal court to a charge of failing to file a report of currency received by a non-financial business, United States Attorney David J. Hickton announced today.
Efraim Tuti, 42, of Pittsburgh, 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 July 7, 2011, Tuti, who was engaged in the jewelry business known as 2T Jewelers on Fifth Avenue in Pittsburgh, for the purpose of evading federal reporting requirements, failed to file an Internal Revenue Service Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, following the receipt of approximately $11,000 in currency as partial payment for a diamond ring purchased by an undercover IRS agent for a total of $22,000. Tuti acknowledged during the plea hearing that he also sold a $13,000 pair of earrings to the undercover agent, after which he failed to file the IRS Form 8300, as required. On Feb. 22, 2013, $125,070 was seized by the IRS during the execution of a search warrant at 2T Jewelers. Tuti agreed to forfeit the money to the United States as part of his entry of a guilty plea.
Judge Schwab scheduled sentencing for Sept. 29, 2014, at 9 a.m. The law provides for a total sentence of five 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 criminal history, if any, of the defendant.
Pending sentencing, the court released Tuti on a $25,000, unsecured bond.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Internal Revenue Service - Criminal Investigation conducted the investigation that led to the prosecution of Efraim Tuti.
Cheswick Man Sentenced to 12+ Years in Prison for Receiving, Possessing Child PornographyRead the Press Release
PITTSBURGH - A Cheswick resident has been sentenced in federal court to 151 months imprisonment to be followed by lifetime supervised release on his conviction of receipt and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States Chief District Judge Joy Flowers Conti imposed the sentence on Mark Philip Campbell, 49.
According to information presented to the Court, from on or about Feb. 27, 2013, to on or about Sept. 15, 2013, Campbell received images and a video containing material depicting the sexual exploitation of minors. In addition, from on or about Feb. 27, 2013, to on or about Oct. 24, 2013, Campbell knowingly possessed 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. Campbell also admitted to sexual contact with a female minor over a five-year period.
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 Pennsylvania State Police and the Allegheny County District Attorney’s Office for the investigation leading to the successful prosecution of Campbell.
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.
Munhall Man Sentenced to Probation for Defrauding Federal Employees' Compensation FundRead the Press Release
PITTSBURGH – A resident of Munhall, Pa., was sentenced today in federal court to four years probation on his conviction of federal employees’ compensation fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr., imposed sentence upon William J. Miller, Jr., 52.
According to information presented to the court, Miller, in connection with the application and receipt of federal employees’ compensation moneys and benefits, concealed and covered up the fact that he was self-employed and involved in a business enterprise. Miller’s fraudulent conduct resulted in compensation checks totaling approximately $18,104.57 being issued to him during the period from March 13, 2011, to Nov. 19, 2011, checks Miller knew he was not entitled to.
Prior to imposing sentence, Judge Cohill took into consideration the defendant’s lack of criminal history and his acceptance of responsibility.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Labor, Office of Inspector General, and the United States Postal Service, Office of Inspector General, for the investigation that led to the successful prosecution of Miller.
Dozens Indicted on Federal Drug ChargesRead the Press Release
PITTSBURGH- After a lengthy investigation into drug trafficking in Wilkinsburg, Pennsylvania, forty-four (44) people - 43 residents of Pennsylvania, and one resident of New Jersey - were indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws. On May 21, 2014, a federal grand jury issued one superseding indictment and five indictments, all related to one another, United States Attorney David J. Hickton announced today.
“Heroin is a huge problem in Western Pennsylvania,” stated U.S. Attorney Hickton. “The prosecution of this gun-toting, drug trafficking conspiracy will disrupt a major heroin pipeline from Newark to our area. These conspirators brazenly sold their illegal drugs openly on the streets of our communities. Today they are out of business.”
According to Patrick Fallon, Asst. Special Agent in Charge of the Federal Bureau of Investigation – Pittsburgh Office, “Today’s arrests are the result of a long-term, multi-agency investigation conducted by the Greater Pittsburgh Safe Streets Gang Task Force. As a result of the hard work and dedication exhibited by members of the Task Force, today we made dozens of arrests that will have a positive impact on the safety and quality of life in our local communities. We recognize, however, law enforcement is but one part of the multi-pronged effort to address the growing heroin epidemic impacting our community. We are keenly aware that in order to succeed in our efforts, the law enforcement community must continue to work together with the support and trust of the citizens we serve.”
THE INDICTMENTS
The first indictment (superseding), containing six counts, named:
- Keith Eutsey, 38, formerly of Nazareth, Pa., currently incarcerated;
- Che Hawkins, 35, formerly of Duquesne, Pa., currently incarcerated;
- Isaiah Cross, 24, formerly of Newark, NJ, currently incarcerated;
- Shaneeca Johnson, 31, of Duquesne, Pa.;
- Rahde Williamson, 18, of Duquesne, Pa.;
- Maurice Demery, 38, of West Mifflin, Pa.;
- Shelby Jeffries, 31, of Munhall, Pa.; and
- Rashawn Coward, 34, of McKees Rocks, Pa.
According to the indictment, from in and around January, 2014, and continuing thereafter to in and around April 3, 2014, the defendants conspired with one another to possess with intent to distribute and distribute one kilogram or more of heroin; Keith Eutsey and Isaiah Cross are each charged with one count of possession with intent to distribute and distribution of 100 grams or more of heroin; Che Hawkins is charged with possession with intent to distribute 100 grams or more of heroin; and Isaiah Cross and Rahde Williamson are each charged with one count of possession with intent to distribute less than 100 grams of heroin.
The law provides for a mandatory minimum of ten years and up to a maximum total sentence of life in prison, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The second indictment, containing nine counts, named:
- Terrell Evans, 21, of Monroeville, Pa.;
- Jamont Neal, 23, of McKeesport, Pa.;
- Jordan Smith, 24, of Export, Pa.;
- Brian Shunk, 28, of Claridge, Pa.;
- Edward Lutz, 23, of Indiana, Pa.;
- Courtney Sullivan, 31, of Indiana, Pa.;
- Thomas Marks, Jr., 28, of Greensburg, Pa.;
- Michael Lyons, 18, of Turtle Creek, Pa.; and
- Edwin Williams, 24, of Verona, Pa.
According to the indictment, from in and around October, 2013, and continuing thereafter to in and around May, 2014, the defendants conspired with one another to possess with intent to distribute and distribute one kilogram or more of heroin; Terell Evans is charged with one count of employing or using a person under 18 years of age in drug operations and three counts of distribution and possession with intent to distribute 100 grams of heroin; Brian Shunk, Edward Lutz, Courtney Sullivan, and Thomas Marks, Jr., are each charged with one count of possession with intent to distribute less than 100 grams of heroin.
The law provides for a mandatory minimum of ten years and up to a maximum total sentence of life in prison, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The third indictment, containing four counts, named:
- Anthony Berry, Jr., 21, formerly of Duquesne, Pa., currently incarcerated;
- Shawn Whitley, Jr., 23, of Wilmerding, Pa.;
- Donald Freeman, 24, of Pittsburgh, Pa.;
- Darrell Heaps, 23, of Duquesne, Pa.; and
- Melvin Calloway, 21, of Munhall, Pa.
According to the indictment, from in and around December, 2013, and continuing thereafter to in and around March, 2014, the defendants conspired with one another to possess with intent to distribute and distribute one kilogram or more of heroin; Anthony Berry, Jr., is charged with one count of possession with intent to distribute less than 100 grams of heroin and one count of possession of a firearm by a convicted felon; and Melvin Calloway is charged with one count of possession with intent to distribute less than 100 grams of heroin.
The law provides for a mandatory minimum of ten years and up to a maximum total sentence of life in prison, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The fourth indictment, containing five counts, named:
- Homer McClung, 27, of Wilkins Township, Pa.;
- Brandon McWright, 26, of Wilkins Township, Pa.;
- Lewis Van Burt III, 29, of Pittsburgh, Pa.;
- Robert Dorsey, 20, of Pittsburgh, Pa.;
- Samuel Brooks, 27, of Pittsburgh, Pa.; and
- Robert Smiley, 23, of Pittsburgh, Pa.
According to the indictment, from in and around June, 2013, and continuing thereafter to in and around May, 2014, the defendants conspired with one another to possess with intent to distribute and distribute 100 grams or more of heroin; Robert Smiley is charged with one count of possession with intent to distribute less than 100 grams of heroin, and Lewis Van Burt III is charged with one count of possession with intent to distribute 100 grams of heroin, one count of possession of a firearm and ammunition by a convicted felon, and one count of carrying a firearm during a drug trafficking crime and possession in furtherance thereof.
The law provides for a mandatory minimum of five years and up to a maximum total sentence of forty years in prison, a fine of $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The fifth indictment, containing seven counts, named:
- Paris Wilson, 22, of Monroeville, Pa.;
- Quamar Linton, 28, of Pittsburgh, Pa.;
- Miranda Rosenberger, 28, of Kittanning, Pa.;
- Michael Cox, 38, of Kittanning, Pa.;
- Shawn Ellis, Jr., 24, of Pittsburgh, Pa.;
- William Smith, 32, of Ford City, Pa.;
- Breya Bowles, 22, of Turtle Creek, Pa.;
- Melvin Moore, 24, of Pittsburgh, Pa.;
- Charles Blystone, 43, of Rural Valley, Pa.;
- Salah Tinsley-Ewell, 21, of Pittsburgh, Pa.;
- Travis Anthony, 27, of Kittanning, Pa.; and
- Benton Nixon, 26, of Pittsburgh, Pa.
According to the indictment, from in and around October, 2013, and continuing thereafter to in and around May, 2014, Wilson, Linton, Rosenberger, Cox, Ellis, Jr., Smith, Bowles, Moore, Blystone, and Tinsley-Ewell conspired with one another to possess with intent to distribute and distribute one kilogram or more of heroin; Paris Wilson is charged with one count of employing or using a person under 18 years of age in drug operations; Travis Anthony is charged with one count of possession of a firearm by a drug user or addict; Melvin Moore, Charles Blystone, and Benton Nixon are each charged with one count of possession with intent to distribute less than 100 grams of heroin; and William Smith is charged with one count of carrying a firearm during a drug trafficking crime and possession in furtherance thereof.
The law provides for a mandatory minimum of ten years and up to a maximum total sentence of life in prison, a fine of $10,000,000 or both for Wilson, Linton, Rosenberger, Cox, Ellis, Jr., Smith, Bowles, Moore, Blystone, and Tinsley-Ewell; the law provides for a term of up to ten years in prison and a fine of $250,000 for Anthony; and the law provides for a term of up to twenty years in prison and $1,000,000 or both for Nixon. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The sixth indictment, containing four counts, names:
- Dominique Harvey, 22, of Plum, Pa.;
- Robert Hyatt, 28, of Pittsburgh, Pa.;
- Kenneth Mitchell, 18, of Penn Hills, Pa.; and
- Darrell Barham, 30, of Wilkinsburg, Pa.
According to the indictment, from in and around June, 2013, and continuing thereafter to in and around May, 2014, the defendants conspired with one another to possess with intent to distribute and distribute one kilogram or more of heroin; Dominique Harvey is charged with one count of employing or using a person under 18 years of age in drug operations; Robert Hyatt is charged with one count of possession with intent to distribute less than 100 grams of heroin; and one count of possession of a firearm and ammunition by a convicted felon.
The law provides for a mandatory minimum of ten years and up to a maximum total sentence of life in prison, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the FBI Greater Pittsburgh Safe Street Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, and the Pittsburgh Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Jury Finds New Jersey Man Conspired to Distribute 1,500+ Bricks of Heroin in Pittsburgh AreaRead the Press Release
PITTSBURGH - After deliberating for three hours on May 23, a federal jury of six men and six women found Rafael A. Cabrera, a/k/a Rubio, guilty of one count of conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin, United States Attorney David J. Hickton announced today.
Rafael Cabrera, 35, of Passaic, New Jersey was tried before United States District Judge Mark R. Hornak in Pittsburgh, Pa.
According to Assistant United States Attorney Eric S. Rosen, who prosecuted the case along with Special Assistant United States Attorney Jake Pugh, the evidence presented at trial established that from August 2012 to Jan. 10, 2013, Cabrera, who lives in New Jersey, brought large shipments of heroin to a co-conspirator at highway rest stops in Carlisle, Pa. Upon receipt of the heroin, the co-conspirator brought the heroin back to Pittsburgh, where it was sold to local drug dealers. The proceeds from these drug sales were then funneled back to Cabrera in New Jersey after the heroin was distributed. In total, the Government presented evidence that Cabrera delivered more than 1,500 bricks of heroin to his co- conspirator in Carlisle. These heroin bricks, each containing between one and two grams of heroin, have a street value of more than $300,000.
Judge Hornak has not yet set a date for sentencing. As Cabrera has a prior felony drug distribution conviction, the law provides for a total sentence of up to life in prison, a fine of $8,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Cabrera’s detention.
The Federal Bureau of Investigation, as assisted by the City of Pittsburgh Police and the Pennsylvania State Police, conducted the investigation that led to the prosecution of Rafael Cabrera.
Erie Felon Pleads Guilty to Drug and Gun ChargesRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal firearms laws and drug laws, United States Attorney David J. Hickton announced today.
Shawn I. McCrorey, 45, pleaded guilty to three counts before Senior United States District Judge Maurice B. Cohill, Jr.
In connection with the guilty plea, the court was advised that on January 5, 2013 McCrorey was found in possession of cocaine and a handgun, and a second handgun was found in his residence in Erie, Pennsylvania. Also, McCrorey obtained one of the handguns in December 2012, after lying to a local gun store about his identity and lying that he had no prior felony conviction. McCrorey, known by several aliases, was convicted in 1994 for the crime of delivery of cocaine under the name William Dean, and is therefore prohibited from firearm possession.
Judge Cohill scheduled sentencing for August 26, 2014 at 11:00 a.m. The law provides for a total sentence of life in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office Bureau of Narcotics Investigation, and the Erie Bureau of Police conducted the investigation that led to the prosecution of McCrorey.
Pittsburgh Man Sentenced to 12 Years in Prison for Sex Trafficking of A ChildRead the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to 144 months 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 Donetta W. Ambrose imposed the sentence on William Miller, 37.
The superseding indictment in the case charged that from in and around December of 2011, to on or about Feb. 10, 2012, Miller knowingly recruited, enticed, harbored, transported, provided and obtained a homeless, 15-year-old minor, Jane Doe, to engage in a commercial sex acts and produced visual depictions of the minor engaged in sexually explicit conduct. Miller was arrested when he drove and accompanied the minor to a date with an undercover City of Pittsburgh Police Detective at the Quality Inn Hotel in Oakland. At sentencing, Judge Ambrose stated that the 12-year sentence should be a “general deterrent but also a personal deterrent to Mr. Miller.”
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 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.
Georgia Man Admits Cashing Fraudulently Obtained IRS Refund ChecksRead the Press Release
PITTSBURGH - A resident of the state of Georgia pleaded guilty in federal court to a charge of wire fraud conspiracy, United States Attorney David J. Hickton announced today.
Edward Claude Hammitt, 67, of Summerville, Ga., pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, Hammitt agreed to accept and negotiate for cash fraudulently obtained IRS refund checks for tax years 2010 and 2011 from conspirators, which were obtained from a larger stolen identity refund fraud scheme.
Judge Fischer scheduled sentencing for Sept. 29, 2014, at 9 a.m. The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of Hammitt.
U.S. Charges Five Chinese Military Hackers for Cyber Espionage Against U.S. Corporations and A Labor Organization for Commercial AdvantageRead the Press Release
First Time Criminal Charges are Filed Against Known State Actors for Hacking
WASHINGTON—A grand jury in the Western District of Pennsylvania (WDPA) indicted five Chinese military hackers for computer hacking, economic espionage and other offenses directed at six American victims in the U.S. nuclear power, metals and solar products industries.
The indictment alleges that the defendants conspired to hack into American entities, to maintain unauthorized access to their computers and to steal information from those entities that would be useful to their competitors in China, including state-owned enterprises (SOEs). In some cases, it alleges, the conspirators stole trade secrets that would have been particularly beneficial to Chinese companies at the time they were stolen. In other cases, it alleges, the conspirators also stole sensitive, internal communications that would provide a competitor, or an adversary in litigation, with insight into the strategy and vulnerabilities of the American entity.
“This is a case alleging economic espionage by members of the Chinese military and represents the first ever charges against a state actor for this type of hacking,” U.S. Attorney General Eric Holder said. “The range of trade secrets and other sensitive business information stolen in this case is significant and demands an aggressive response. Success in the global market place should be based solely on a company’s ability to innovate and compete, not on a sponsor government’s ability to spy and steal business secrets. This Administration will not tolerate actions by any nation that seeks to illegally sabotage American companies and undermine the integrity of fair competition in the operation of the free market.”
“For too long, the Chinese government has blatantly sought to use cyber espionage to obtain economic advantage for its state-owned industries,” said FBI Director James B. Comey. “The indictment announced today is an important step. But there are many more victims, and there is much more to be done. With our unique criminal and national security authorities, we will continue to use all legal tools at our disposal to counter cyber espionage from all sources.”
“State actors engaged in cyber espionage for economic advantage are not immune from the law just because they hack under the shadow of their country’s flag,” said John Carlin, Assistant Attorney General for National Security. “Cyber theft is real theft and we will hold state sponsored cyber thieves accountable as we would any other transnational criminal organization that steals our goods and breaks our laws.”
“This 21st century burglary has to stop,” said David Hickton, U.S. Attorney for the Western District of Pennsylvania. “This prosecution vindicates hard working men and women in Western Pennsylvania and around the world who play by the rules and deserve a fair shot and a level playing field.”
Summary of the Indictment
Defendants: Wang Dong, Sun Kailiang, Wen Xinyu, Huang Zhenyu, and Gu Chunhui, who were officers in Unit 61398 of the Third Department of the Chinese People’s Liberation Army (PLA). The indictment alleges that Wang, Sun, and Wen, among others known and unknown to the grand jury, hacked or attempted to hack into U.S. entities named in the indictment, while Huang and Gu supported their conspiracy by, among other things, managing infrastructure (e.g., domain accounts) used for hacking.
Victims: Westinghouse Electric Co. (Westinghouse), U.S. subsidiaries of SolarWorld AG (SolarWorld), United States Steel Corp. (U.S. Steel), Allegheny Technologies Inc. (ATI), the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW) and Alcoa Inc.
Time period: 2006-2014.
Crimes: Thirty-one counts as follows (all defendants are charged in all counts).
Count(s) Charge Statute Maximum Penalty1
Conspiring to commit computer fraud and abuse
18 U.S.C. § 1030(b).
10 years.
2-9
Accessing (or attempting to access) a protected computer without authorization to obtain information for the purpose of commercial advantage and private financial gain.
18 U.S.C. §§ 1030(a)(2)(C), 1030(c)(2)(B)(i)-(iii), and 2.
5 years (each count).
10-23
Transmitting a program, information, code, or command with the intent to cause damage to protected computers.
18 U.S.C. §§ 1030(a)(5)(A), 1030(c)(4)(B), and 2.
10 years (each count).
24-29
Aggravated identity theft.
18 U.S.C. §§ 1028A(a)(1), (b), (c)(4), and 2
2 years (mandatory consecutive).
30
Economic espionage.
18 U.S.C. §§ 1831(a)(2), (a)(4), and 2.
15 years.
31
Trade secret theft.
18 U.S.C. §§ 1832(a)(2), (a)(4), and 2.
10 years.
Summary of Defendants’ Conduct Alleged in the Indictment
Defendant Victim Criminal ConductSun
Westinghouse
In 2010, while Westinghouse was building four AP1000 power plants in China and negotiating other terms of the construction with a Chinese SOE (SOE-1), including technology transfers, Sun stole confidential and proprietary technical and design specifications for pipes, pipe supports, and pipe routing within the AP1000 plant buildings.
Additionally, in 2010 and 2011, while Westinghouse was exploring other business ventures with SOE-1, Sun stole sensitive, non-public, and deliberative e-mails belonging to senior decision-makers responsible for Westinghouse’s business relationship with SOE-1.
Wen
SolarWorld
In 2012, at about the same time the Commerce Department found that Chinese solar product manufacturers had “dumped” products into U.S. markets at prices below fair value, Wen and at least one other, unidentified co-conspirator stole thousands of files including information about SolarWorld’s cash flow, manufacturing metrics, production line information, costs, and privileged attorney-client communications relating to ongoing trade litigation, among other things. Such information would have enabled a Chinese competitor to target SolarWorld’s business operations aggressively from a variety of angles.
Wang and Sun
U.S. Steel
In 2010, U.S. Steel was participating in trade cases with Chinese steel companies, including one particular state-owned enterprise (SOE-2). Shortly before the scheduled release of a preliminary determination in one such litigation, Sun sent spearphishing e-mails to U.S. Steel employees, some of whom were in a division associated with the litigation. Some of these e-mails resulted in the installation of malware on U.S. Steel computers. Three days later, Wang stole hostnames and descriptions of U.S. Steel computers (including those that controlled physical access to company facilities and mobile device access to company networks). Wang thereafter took steps to identify and exploit vulnerable servers on that list.
Wen
ATI
In 2012, ATI was engaged in a joint venture with SOE-2, competed with SOE-2, and was involved in a trade dispute with SOE-2. In April of that year, Wen gained access to ATI’s network and stole network credentials for virtually every ATI employee.
Wen
USW
In 2012, USW was involved in public disputes over Chinese trade practices in at least two industries. At or about the time USW issued public statements regarding those trade disputes and related legislative proposals, Wen stole e-mails from senior USW employees containing sensitive, non-public, and deliberative information about USW strategies, including strategies related to pending trade disputes. USW’s computers continued to beacon to the conspiracy’s infrastructure until at least early 2013.
Sun
Alcoa
About three weeks after Alcoa announced a partnership with a Chinese state-owned enterprise (SOE-3) in February 2008, Sun sent a spearphishing e-mail to Alcoa. Thereafter, in or about June 2008, unidentified individuals stole thousands of e-mail messages and attachments from Alcoa’s computers, including internal discussions concerning that transaction.
Huang
Huang facilitated hacking activities by registering and managing domain accounts that his co-conspirators used to hack into U.S. entities. Additionally, between 2006 and at least 2009, Unit 61398 assigned Huang to perform programming work for SOE-2, including the creation of a “secret” database designed to hold corporate “intelligence” about the iron and steel industries, including information about American companies.
Gu
Gu managed domain accounts used to facilitate hacking activities against American entities and also tested spearphishing e-mails in furtherance of the conspiracy.
An indictment is merely an accusation and a defendant is presumed innocent unless proven guilty in a court of law.
The FBI conducted the investigation that led to the charges in the indictment. This case is being prosecuted by the U.S. Department of Justice’s National Security Division Counterespionage Section and the U.S. Attorney’s Office for the Western District of Pennsylvania.
Humane Society Financial Advisor Sentenced to Prison for Embezzling and Money LaunderingRead the Press Release
ERIE, Pa. - A former resident of St. Marys, Pennsylvania, has been sentenced in federal court to 46 months in jail and ordered to make restitution in the amount of $414,649.39 on his conviction of wire fraud and money laundering, United States Attorney David J. Hickton announced today.
United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Richard Danz, 49. According to information presented to the court, Danz was the financial advisor/accountant for the Elk County Humane Society. From in and around September 2008 to in and around June 2012, Danz embezzled $422,017.81 from the Elk County Humane Society and another individual. Danz spent the embezzled funds on luxury items including a Mercedes-Benz and a kitchen remodeling.
Prior to imposing sentence, Judge Cohill noted the significant harm caused by Danz, which included the loss of seven jobs at the Elk County Humane Society and the reduced ability to provide critical services to abandoned animals.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the City of St. Marys, Police Department for the investigation leading to the successful prosecution of Danz.
Murrysville Woman Gets 8 Years in Prison for Years-Long Oxycodone Distribution SchemeRead the Press Release
PITTSBURGH - A Murrysville woman has been sentenced in federal court to 96 months imprisonment, to be followed by five years of supervised release, on her conviction of conspiracy to distribute oxycodone and health care fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence yesterday on Paula Jackson, 40.
According to information presented to the court, Jackson conspired with others to engage in a multi-year long oxycodone pill distribution conspiracy, during which Jackson obtained more than 17,000 pills. Jackson both sold the pills she obtained and consumed them. As part of the conspiracy, Jackson stole the DEA numbers of various area doctors and also used stolen health care insurance information to pay for the pills that she fraudulently obtained.
Prior to imposing sentence, Judge Cohill noted the seriousness of the offenses as well as the damage done to the doctors who had their identities stolen by Jackson.
Assistant United States Attorney Eric S. Rosen 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 Jackson.
Georgia Women Used Stolen Identities to File for $2M in False Tax Return RefundsRead the Press Release
PITTSBURGH - Three Georgia women pleaded guilty in federal court to a charge of wire fraud conspiracy, United States Attorney David J. Hickton announced today.
Heather A. Smith, 26, of Summerville, Ga.; Astrid P. Perry, 37, of Summerville, Ga.; and Beverly J. McHenry, 57, of Rome, Ga., pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, these defendants conspired with other persons to use stolen identities to file false federal 2010 and 2011 federal income tax returns requesting refunds totaling nearly $2,000.000 into banks and credit unions in Pittsburgh and Georgia.
Judge Fischer scheduled sentencing for Sept. 26, 2014, at 9 a.m. for McHenry and 11:30 a.m. for Perry. Smith’s sentencing is scheduled for Sept. 30, 2014, at 9 a.m. The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation, conducted the investigation that led to the prosecution of these defendants.
Deported Brazilian Sentenced to Time-Served for Illegally Re-Entering U.S.Read the Press Release
PITTSBURGH - An alien found in Pittsburgh has been sentenced in federal court to time served on his conviction of illegal re-entry after deportation, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Valber Silva-Brito, 26, of Brazil.
According to the information presented to the court, Valber Silva-Brito, an alien, was formally removed from the United States by U.S. Immigration and Customs Enforcement on Oct. 16, 2007, Jan. 10, 2008 and Sept. 16, 2010. Valber Silva-Brito was found to be illegally present in Pittsburgh on June 9, 2013.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended ICE’s Enforcement and Removal Operations for the successful investigation leading to the successful prosecution of Valber Silva-Brito.
Brooklyn Man Sentenced to 3 Years in Prison for Identity Theft SchemeRead the Press Release
PITTSBURGH - A resident of Brooklyn, New York, has been sentenced in federal court to 36 months incarceration, which included a mandatory sentence of 24 months incarceration, on his trial convictions for conspiracy and aggravated identity theft, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr., imposed the sentence on Brent Kevin Hercules Antoine, of Brooklyn, New York.
According to information presented to the court, Antoine, the final member of a credit card fraud conspiracy to be sentenced, obtained and used counterfeit credit cards which he used to purchase merchandise and gift cards at Giant Eagle and Walmart stores in Western Pennsylvania in March 2010. He and his co-defendant, Jean Seraphin, also of Brooklyn, were convicted at trial in September 2012.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service, Homeland Security Investigations, and the Scott Township Police Department for the investigation leading to the successful prosecution of Antoine.
Pittsburgh Jeweler Sentenced to Probation for Failing to File IRS FormsRead the Press Release
PITTSBURGH - A Pittsburgh jeweler has been sentenced in federal court to three years of probation, a $12,000 fine, and 100 hours of community service on his conviction of failing to file Internal Revenue Service forms for the purpose of evading federal reporting requirements, United States Attorney David J. Hickton announced today. The first six months of probation will be served in home detention with electronic monitoring.
Senior United States District Judge Gustave Diamond imposed the sentence on Alan Kashi, 32.
According to information presented to the court during the earlier guilty plea proceeding, on March 13, 2012, Kashi, who was engaged in the jewelry business known as Kashi Jewelers located on Fifth Avenue in downtown Pittsburgh, for the purpose of evading federal reporting requirements, failed to file an Internal Revenue Service Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, following his receipt of approximately $12,500 in currency as a payment for a Breitling watch.
The charges against Kashi arose as a result of an undercover IRS investigation of Kashi's sale of high-end jewelry to known drug traffickers for cash. The investigation established that transactions exceeding $10,000 were not, as required by law, reported to the IRS on Forms 8300.
During the execution of a federal search warrant at Kashi Jewelers, $933,025 was discovered in two safes and seized by federal agents. Prior to the sentencing proceeding, Kashi agreed to the Court entering an order forfeiting the money to the United States.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation, for the investigation leading to the successful prosecution of Kashi.
Two Charged in Fraud SchemeRead the Press Release
PITTSBURGH – Two Pittsburgh men have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and bank fraud, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on May 6 and unsealed today, named Eric Tyrone Bates, Jr., 27, and Herbert Butler, Jr., 27, as defendants.
According to the indictment, beginning in 2013, Bates and Butler conspired together to steal bank account information belonging to an account holder at Citizens Bank in Pittsburgh, information they used to create accounts at other banks which they controlled to make multiple withdrawals of cash. Bates is also charged separately for bank fraud in connection with another unauthorized access of a Citizens Bank account and subsequent withdrawals from the account. Some of the funds were used to buy automobiles.
The law provides for a maximum total sentence of not more than 35 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF) conducted the investigation that led to the indictment of Bates and Butler. 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.
An indictment is an accusation. The defendants are presumed innocent unless and until proven guilty.
Brookline Man Possessed Child PornographyRead 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.
Eric Roller, 49, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on or about Feb. 22, 2013, Roller possessed visual depictions, namely, videos and images in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Judge Hornak scheduled sentencing for Sept. 15, 2014, 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, the Pennsylvania State Police, and the City of Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Roller.
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.
McKeesport Fish Store Manager Defrauded Food Stamp ProgramRead the Press Release
PITTSBURGH - A McKeesport store manager pleaded guilty in federal court to a charge of theft of government property, United States Attorney David J. Hickton announced today.
Nichole Bires, 36, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Bires was the manager at H&H Fish Market, a small retail food store in McKeesport. In October 2009, H&H began participating in the USDA's food stamp program. As a condition of participation in the food stamp program, the owners and employees of H&H were required to comply with all rules and regulations of the program and were aware that program rules prohibited the exchange of food stamp benefits for cash and/or ineligible items. Despite this knowledge, on multiple occasions, Bires exchanged customers’ food stamp benefits for cash on a discounted basis, usually giving the customers only 50 cents on the dollar for food stamp benefits.
Judge Bissoon scheduled sentencing for Aug. 26, 2014, 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.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Office of the Inspector General for the United States Department of Agriculture, the Department of Homeland Security, Homeland Security Investigations and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Bires.
Illinois Man Sentenced to Prison for Selling Peptides, HGH from China over the InternetRead the Press Release
PITTSBURGH - A resident of Norridge, Ill., has been sentenced in federal court to 27 months imprisonment on his conviction of mail fraud, distribution of human growth hormone and money laundering, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Ronald J. DeFranco, 54.
According to information presented to the court, DeFranco maintained a website for the illegal distribution of peptides - chemical compounds which require a prescription for dispensation, but which are illegitimately sought by body builders for muscle enhancement. DeFranco deceived the Internet service provider and the FDA by falsely representing on the website that he was selling these substances "for research purposes only . . . not for human consumption." In addition to sales of peptides, DeFranco also allegedly sold human growth hormone (HGH) without the required physician's prescriptions. During the period from May 2010, until January 2011, DeFranco allegedly paid $94,777.40 in Western Union and bank wire transfers to acquire these substances from suppliers in the Peoples Republic of China.
Prior to imposing sentence, Judge Ambrose stated that she was denying the defendant’s downward variance request due to the serious nature of the offense and because his prior sentence of imprisonment “speaks volumes about [his] ability to conform [his] behavior to the law.”
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the FDA Office of Criminal Investigations, IRS - Criminal Investigation and the DEA for the investigation leading to the successful prosecution of DeFranco.
Pittsburgh Woman Pleads Guilty in Fraud SchemeRead the Press Release
PITTSBURGH – A Pittsburgh woman pleaded guilty in federal court to a charge of Federal Employees’ Compensation Fraud, United States Attorney David J. Hickton announced today.
Cindy A. Elsesser, 45, pleaded guilty to one felony count before United States District Judge David S. Cercone.
According to information presented to the Court at the guilty plea, Elsesser, in connection with the application and receipt of federal employees’ compensation moneys and benefits, concealed and covered up the fact that she was employed. Elsesser’s fraudulent conduct resulted in compensation payments totaling approximately $4,771.41 being issued to her during the period from April 1, 2011, to March 11, 2013, payments Elsesser knew she was not entitled to receive.
Judge Cercone scheduled sentencing for Sept. 15, 2014 at 10 am. The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Elsesser on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Department of Labor, Office of Inspector General, and the United States Postal Service, Office of Inspector General, conducted the investigation leading to the plea of guilty in this case.
Johnstown Doctor Charged with Illegally Distributing NarcoticsRead the Press Release
JOHNSTOWN, Pa. – A Johnstown physician has been indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The 136-count indictment, returned on May 6 and unsealed today, named Dr. Glenn Davis, 61.
According to the indictment presented to the court, from August of 2011 to February 2013, Dr. Davis prescribed and distributed thousands of Schedule II controlled substances (i.e., Oxycodone, Morphine, Oxycontin, Methadone, Fentanyl patches, Dilaudids, Opanas) outside the usual course of professional practice.
The law provides for a maximum sentence, at each of the 136 counts, of 20 years in prison and 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 Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Office of the Pennsylvania Attorney General, the Cambria County Drug Task Force, and the Internal Revenue Service Criminal Investigation Division conducted the investigation that led to the prosecution of Davis.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Felon Charged with Violating Federal Gun and Drug LawsRead the Press Release
PITTSBURGH – A Pittsburgh resident has been indicted by a federal grand jury on charges of violating federal firearms and narcotics laws, United States Attorney David J. Hickton announced today.
The three-count indictment named Omar Smith, 25, as the sole defendant.
According to the indictment, Smith was previously convicted of felony drug charges in Allegheny County on four separate dates between 2008 and 2011, and he again violated drug laws on June 21, 2012. Although federal law precludes a person convicted of a crime punishable by in excess of one year from possessing a firearm or ammunition, Smith allegedly possessed a .357 Taurus pistol and ammunition at the time of the new drug crimes.
The law provides for a minimum sentence of 15 years and a maximum of life in prison, a fine of up to $4,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Coraopolis Police Department and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case with the valuable assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Johnstown Heroin Dealer Pleads GuiltyRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of distributing heroin, United States Attorney David J. Hickton announced today.
Damian C. Jeffers, Sr., 44, 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 Jan. 7, 2013, Jeffers distributed less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Aug. 28, 2014, at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Jeffers.
Teen Heroin Dealer Gets 7-Year Federal Prison SentenceRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 87 months imprisonment and eight years supervised release on his conviction of violating federal narcotic laws, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Brady Hall, 19.
According to information presented to the court, Hall had previously pled guilty to conspiracy to distribute and possess with the intent to distribute 100 grams or more heroin, possession with the intent to distribute a quantity of heroin, and employment of juveniles to distribute heroin. In total, Hall agreed to accept responsibility for between 700 and 1,000 grams of heroin.
In connection with the guilty plea and sentencing, the Court was advised that from May 2012 to February 2013, Hall conspired together with his charged co-defendants, Jay Germany, Jaquan Washington, and others, to possess with the intent to distribute and distribute, heroin. In addition, Hall conspired with uncharged co-conspirator Andre Corbett, Sterling Marshall, and their associates to distribute heroin. Germany and Washington have both pled not guilty, while Corbett and Marshall have pled guilty. Corbett was sentenced to 10 years in prison, and Marshall was sentenced to 12 years in prison.
The Court learned that during the timeframe of the heroin trafficking conspiracy, Germany was the leader of the conspiracy, in that he operated the “customer phone,” whereby retail heroin customers would call Germany to arrange a heroin transaction. Once the transaction had been finalized, Germany, in turn, called either Washington or Hall to deliver the heroin to the customer. Hall operated a heroin “stash house,” in Homestead. From that stash house, Hall used runners, including juvenile runners as young as 15 years old, to deliver heroin to customers.
Finally, Count Five of the Superseding Indictment related to a heroin transaction that took place at the Giant Eagle on the Waterfront in Homestead. On Oct. 30, 2012, a heroin customer arranged to purchase 100 stamp bags of heroin from Germany at the Giant Eagle. Germany drove Hall to complete the deal at Giant Eagle. Hall met the customer in the Giant Eagle bathroom. In the bathroom, Hall provided the customer with the 100 stamp bags of heroin. Law enforcement, who had been intercepting the telephone conversations of Germany, monitored this transaction, and later conducted a traffic stop of the customer as he drove away. Law enforcement recovered the purchased heroin from the customer.
Assistant United States Attorney Eric S. Rosen prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Pennsylvania Office of the Attorney General, City of Pittsburgh Bureau of Police, Pennsylvania State Police, Allegheny County Sheriff's Office, McKeesport Police Department, Munhall Police Department, and the West Homestead Police Department conducted the investigation that led to the prosecution, conviction and sentencing of Brady Hall.
Income Tax Evader Sentenced to 15 Months in PrisonRead the Press Release
PITTSBURGH - A resident of Clarksburg, West Virginia, has been sentenced in federal court to 15 months in prison, to be followed by three years of supervised release, on his conviction of income tax evasion, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on James R. Corbitt.
According to information presented to the court, during the tax years 2005 through 2009, Corbitt, an employee of Nexus Medical Services located in Westmoreland County, evaded income tax by diverting cash and checks payable to Nexus to himself, and by having Nexus pay for his personal expenses, including $77,000 for an apartment in Greensburg, $101,000 for personal cars and a motorcycle, and such items as his utilities, cable bill, and lawn and maid service. For the year 2008, the year to which he pleaded guilty, Corbitt reported income of $11,000 and tax due of $1,103, while his actual income was $167,079, upon which tax was due and owing of $29,564. The total amount of tax loss is $102,102, which does not include interest or penalties.
Corbitt was convicted in federal court in Ohio in 1993 of theft of government funds and filing a false tax return. He was sentenced to an 18-month term of incarceration on that occasion.
Prior to imposing sentence, Judge Cercone stated that the sentence “is important to deter others from cheating on their taxes.”
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation, for the investigation leading to the successful prosecution of Corbitt.
Cocaine Source’s Mother Laundered Drug Funds for Her SonRead the Press Release
PITTSBURGH - A resident of Antioch, Calif., pleaded guilty in federal court to a charge of violating federal money laundering laws, United States Attorney David J. Hickton announced today.
Coquese Alcorn, 65, pleaded guilty to one count before United States District Judge David S. Cercone.
IRS-Criminal Investigation 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. 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 intended for another 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 200 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, more than $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 drug activities of supplier Damon Collins generated millions of dollars in cash. A conspiracy existed to launder those funds and resulted in several of the co-defendants structuring drug funds supplied by Collins by involving individual amounts under $10,000 to avoid the transaction reporting requirements under federal and state law, as well as concealing and disguising Collins’ drug money by actions that make it appear that they belong to others. These disguised amounts were used to pay for vehicles, home improvements, mortgage payments, apartment rentals, hotel payments, airline tickets, credit card payment, child support payments and tax payments for Collins.
Ms. Alcorn is the mother of Damon Collins, one of the cocaine sources for this large-scale cocaine distribution network. Collins was a fugitive for a period of 20 months after he was indicted in this district. During his association with the cocaine conspiracy, Collins was able to launder in excess of two million dollars in drug proceeds. The defendant assisted Mr. Collins with this laundering activity by structuring currency deposits, permitting herself to be used as a nominee in financial transactions, paying for his mortgage personally in cash and making payments for him on matters such as: his pool, credit card, and vehicles (Land Rover, Jaguar, Lexus, Mercedes Benz and others). The other alleged launderers of Collins’ money include Jared Weinberg, Howard Weinberg, Bridgette Morgan, Cindy Haughton, Alexandria Brown and Tosha Asker. Each of the co-defendants has pleaded guilty, except Howard Weinberg who is scheduled to plead guilty on May 20, 2014 at 1:15pm. The parties agree that Ms. Alcorn personally laundered $400,000 in drug funds for her son.
Judge Cercone scheduled sentencing for Sept. 11, 2014 at 10:30 a.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 offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Ross E. Lenhardt, Michael L. Ivory and Gregory J. Nescott are prosecuting this case on behalf of the government.
State Prison Inmate Charged with Forging A Federal Judge’s SignatureRead the Press Release
PITTSBURGH - An inmate at SCI-Houtzdale, located in Houtzdale, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal law, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on April 29, named Michael Kramer, 30, currently incarcerated in SCI-Houtzdale.
According to the indictment, Kramer forged a federal Judge’s signature on a court order.
The law provides for a maximum total sentence of not more than five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, of the defendant.
Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government.
The United States Marshal’s Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Squatter Pleads Guilty to Illegally Possessing AmmunitionRead the Press Release
PITTSBURGH – Elanda Bell has pled guilty in federal court to a charge of violating federal firearm laws, United States Attorney David J. Hickton announced today.
Bell, 55, with no known permanent address, pleaded guilty on Monday to one count before Senior United States District Judge Gustave Diamond.
In connection with the guilty plea, the court was advised that between Jan. 3, 2008, and June 29, 2013, Bell possessed ten .41 Caliber cartridges. Bell had previously been convicted of manslaughter and aggravated assault in the Court of Common Pleas of Philadelphia. Federal law prohibits anyone who has been convicted of a crime punishable by more than one year from possessing ammunition or a firearm.
Judge Diamond scheduled sentencing for Aug. 20, 2014, at 11 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clairton Police Department conducted the investigation that led to the prosecution of Bell.
Monroeville Man Sentenced to 14 Years in Prison for Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH - A Monroeville man has been sentenced in federal court to 108 months in prison at Count One of the Superseding Indictment, and 60 months in prison at Count Four of the Superseding Indictment to run consecutively, for a total 168 months imprisonment, followed by four years of supervised release on his conviction of violating federal firearms and drug trafficking laws, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Antonio Hardin, 32.
According to information presented to the court, and as reflected in Count One of the Superseding Indictment, from April, 2012 to February 2013, Hardin conspired together with his charged co-defendants Brandon Thompson, James Walker, Richard Wood, Gregory Harris, Jr., Luther Harper and others to possess with the intent to distribute and distribute, 100 grams or more of heroin. In total, Hardin agreed to accept responsibility for between 900 and 990 grams of heroin. All of the abovementioned co- conspirators, except for Richard Wood, have pleaded not guilty to the charges against them.
Specifically, the Court learned that in April, 2012, Hardin received heroin from co- conspirator Brandon Thompson. Hardin then supplied this heroin to an uncharged co-conspirator who was later shot by Thompson and Edward Cook at Club Pink in Munhall on or about Aug. 12, 2012. Cook has pleaded guilty to this shooting, and he was sentenced to 12 years in prison. The Court also learned that Hardin, acting together with Brandon Thompson, James Walker, and Joseph Thompson, shared a heroin “stash house” in Pitcairn at which these persons packaged raw heroin into stamp bags that would later be sold on to other dealers, and eventually, to individual users. In addition, the Court learned that Hardin, over the course of the conspiracy, sold heroin to other charged distributors, including Richard Wood, Gregory Harris, Jr., and Luther Harper. The Court heard intercepts of a call in which Luther Harper and Bryce Harper discussed purchasing 25 brick quantities (40 gram quantities) of heroin from Hardin that the Harpers then planned to distribute to individual users. Last, Hardin acknowledged that during his drug trafficking crimes he possessed a firearm, including a 9mm Glock, to protect himself and to protect his drugs. As a result, Hardin possessed a firearm in furtherance of the abovementioned drug trafficking crimes.
Assistant United States Attorney Eric S. Rosen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Pennsylvania Office of the Attorney General, Pittsburgh Bureau of Police, Pennsylvania State Police, Allegheny County Sheriff's Office, McKeesport Police Department, Munhall Police Department, and the West Homestead Police Department for the investigation leading to the successful prosecution of Antonio Hardin.
Illinois Residents Charged in Identity Theft SchemeRead the Press Release
PITTSBURGH - Two Illinois residents have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy, using unauthorized access device in aggregate of $1,000, possessing device- making equipment, possessing 15 or more access devices, and aggravated identity theft, United States Attorney David J. Hickton announced today.
The six-count superseding indictment, returned on April 29, named Joel M. Cosey, 25, of Chicago, Illinois, and Monique S. Morris, 33, of Bolingbrook, Illinois.
According to the indictment, Cosey was charged with conspiracy, possessing device- making equipment, possessing 15 or more access devices, aggravated identity theft, and two counts of using unauthorized access device in aggregate of $1,000 on or about Aug. 9, 2013.
According to the indictment, Morris was charged with conspiracy and two counts of using unauthorized access device in aggregate of $1,000 on or about Aug. 9, 2013.
The law provides for a maximum total sentence of 52 years in prison, a fine of $1,500,000 or both for Cosey. The law provides for a maximum total sentence of 25 years in prison, a fine of $750,000 or both for Morris. 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 Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.