Western District of Pennsylvania
Press releases recorded for this federal judicial district.
Pittsburgh Man Possessed Child PornographyRead the Press Release
PITTSBURGH - 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.
Michael Powers, 65, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that, on or about June 21, 2013, Powers knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct.
Judge McVerry scheduled sentencing for June 13, 2014, at 1:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Powers.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Leader of Interstate Methamphetamine and Oxycodone Ring SentencedRead the Press Release
PITTSBURGH - The leader of a drug ring that brought kilograms of methamphetamine and 10,000 narcotic pills into the Western District of Pennsylvania for sale has been sentenced in federal court to 10 years’ incarceration.
United States District Judge Davis S. Cercone imposed the sentence on Joshua Shaffer, 36, of Hiawatha, Iowa.
Judge Cercone also imposed a two-year period of incarceration on co-conspirator Joe Cesa, 26, of Kersey, Pa., and accepted a guilty plea from a third conspirator, Keith Alfred Hayes, 48, of Sykesville, Pa.
According to evidence presented to the Court, between February 2010 and September 2011, a conspiracy to distribute oxycodone tablets and methamphetamine existed in Jefferson County in Northwestern Pennsylvania and surrounding counties. Shaffer was the source-of-supply for the conspiracy, sending methamphetamine and oxycodone to Pennsylvania from his Florida home, utilizing couriers traveling by car and mailed packages.
Shaffer generally sold the oxycodone tablets for up to $25 each, and the methamphetamine wholesaled for $5,600 an ounce. The pills would then be sold to drug addicts for $35 or $40 apiece, and the methamphetamine would be packaged for individual use and sold. Oxycodone is a highly-addictive narcotic drug that is frequently abused in Western Pennsylvania.
Cesa was a street seller of oxycodone provided to him by Shaffer or one of the other seven co-defendants. Hayes drove shipments of drugs from Florida to Pennsylvania at Shaffer’s direction. All nine defendants charged in the indictment have now pleaded guilty.
Judge Cercone scheduled sentencing for July 11, 2014 at 10:00 am for Hayes. The law provides for a total sentence of up to 20 years in prison and a fine not to exceed $1,000,000 for Hayes. 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.
Assistant United States Attorney Gregory J. Nescott is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Pennsylvania State Police conducted the investigation that led to the prosecution of Joshua Shaffer, Joe Cesa, and Keith Hayes. The Jefferson County District Attorney's Office also assisted in a related investigation targeting other oxycodone distributors.
Churchill Man Sentenced for Unlawfully Selling Drug SamplesRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to six months imprisonment, six months of home confinement, three years of supervised release, and forfeiture of $56,000, on his conviction of unlawfully selling drug samples, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Lawrence A. Swanson, 54.
According to the information presented to the court, from in and around January 2005, to in and around May 2011, Swanson sold prescription drug samples such as samples of Allegra, Avalide, Avapro, Avelox, Benicar, Celebrex, Crestor, Cymbalta, Diovan, Diovan HCT, Evista, Janumet, Januvia, Lexapro, Lovaza, Lyrica, Micardis HCT, Namenda, Nexium, Plavix, Prevacid, Prilosec, Seroquel XR, Singular, TriCor, Vytorin, Zetia, Zyprexa, Benicar, Lipitor, and Pristi Q, to two local pharmacists. Those pharmacists were separately charged. Swanson met his supplier in various grocery store parking lots late at night to receive garbage bags filled with the samples. The samples had the lot numbers and expiration dates removed from the pill packaging making it impossible to know if the drugs had expired or had been recalled. There was a possibility of harm to patients, but no harm or injury to any patient was ever reported. Over the time period charged, Swanson collected a total of $181,108.07.
Judge Bissoon stated that engaging in the black market sale of sample drugs is a serious crime that threatens the integrity of our medicine distribution system, and in order to deter others and to properly punish this defendant a jail sentence is necessary.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Food and Drug Administration-Office of Criminal Investigations, and the Internal Revenue Service-Criminal Investigation, for the investigation leading to the successful prosecution of Lawrence A. Swanson.
Accountant Sentenced to 2 Years in Prison for Conspiracy, Violating Tax LawsRead the Press Release
PITTSBURGH - A Hampton Township resident was sentenced yesterday in federal court to 24 months imprisonment and a fine of $30,000 on his conviction of conspiracy to harbor illegal aliens and violating federal tax laws, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Martin R. Bujaky, 65, of Gibsonia, Pa.
According to information presented to the court, between approximately 2000 and 2007, Bujaky, an accountant, conspired with others to harbor out-of-status aliens employed in the hotel housekeeping industry in the Pittsburgh area, as well as Cleveland, Columbus, and Cincinnati, Ohio, by knowingly preparing false tax returns on behalf of their employers, which failed to report their wages as income. Bujaky assisted in the preparation and presentation of false quarterly tax returns for portions of 2005 and 2006 for B&M Best Consulting Co. by understating the size of the payroll and the employment taxes due to the Internal Revenue Service. These false returns accounted for approximately $9 million in unreported wages. United States Attorney Hickton stated that the entire scheme, over the course of seven years, resulted in a tax loss of approximately $3.7 million.
Prior to imposing sentence, Judge McVerry stated that Bujaky’s role in the conspiracy enabled his co-conspirators to conceal their true earnings and continue to victimize the workers.
Assistant United States Attorney Margaret E. Picking prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service-Criminal Investigation, Department of Homeland Security-Homeland Security Investigations (HSI), and U.S. Department of Labor for the investigation leading to the successful prosecution of Bujaky.
Woman Serving Drug Sentence Charged with Contempt for Refusing to Testify at Co-Defendant's TrialRead the Press Release
PITTSBURGH - A Pittsburgh woman has been indicted by a federal grand jury in Pittsburgh on a charge of criminal contempt of court, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Feb. 18, named Marquetta Lavelle Mitchell, 41, as the sole defendant.
According to the indictment, Mitchell disobeyed and resisted the lawful process, order and command of a Court of the United States, that is, she refused to testify at the Oct. 16-22, 2012, trial of Andre Williams, for charges that included conspiracy to possess with intent to distribute five kilograms or more of cocaine, at Case Number 11-116, despite: the subpoena that required her to do so; an instruction from Senior United States District Court Judge Alan N. Bloch that her Fifth Amendment rights had been extinguished; and a written order compelling her to testify pursuant to a grant of immunity from Senior United States District Court Judge Alan N. Bloch.
The law provides for an unlimited period of incarceration and/or a fine, at the discretion of the Court. 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. Court records reveal that before Mitchell refused to testify at the trial of her co-defendant Andre Williams, Mitchell herself was prosecuted for federal drug charges and is serving a 10-year sentence.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Homeland Security Investigations and the 21st Judicial District Drug Task Force in Tennessee 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.
Uniontown Man Sentenced to Prison for Illegally Possessing RevolverRead the Press Release
PITTSBURGH - A convicted felon was sentenced yesterday afternoon in federal court to 18 months imprisonment followed by three years supervised release on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on William Kent Bricker, 56, of Uniontown, Pa.
According to information presented to the court, on Sept. 2, 2012, Bricker, being a convicted felon, illegally possessed a .32 caliber revolver. Bricker was convicted of armed bank robbery in 1993 and illegal firearms possession in 2004. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm.
Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Bricker. This case was prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Self-employed Munhall Man Took $18K in Compensation Benefits Through FraudRead the Press Release
PITTSBURGH – A suburban Pittsburgh man pleaded guilty in federal court to a charge of Federal Employees’ Compensation Fraud, United States Attorney David J. Hickton announced today.
William J. Miller, Jr., 52, of Munhall, Pa., pleaded guilty to one felony count before Senior United States District Judge Maurice B. Cohill, Jr.
According to information presented to the Court at the guilty plea, 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 November 19, 2011, checks he knew he was not entitled to.
Judge Cohill scheduled sentencing for May 29, 2014, at 1:30 p.m. The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Miller 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 Information in this case.
Pittsburgh Man Facing Federal Drug and Gun ChargesRead the Press Release
PITTSBURGH – A Pittsburgh resident has been indicted by a federal grand jury on charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
The three-count indictment, returned on Feb.18, named Eugene Allen Morgan, 44, as the sole defendant.
According to the indictment, on or about Sept. 12, 2013 and Sept. 19, 2013, Morgan distributed and possessed with the intent to distribute a quantity of heroin, a Schedule I controlled substance. Additionally, on or about Jan. 30, 2014, Morgan, being a convicted felon, illegally possessed a Smith & Wesson .40 caliber semi-automatic pistol. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
The law provides for a maximum total sentence of 30 years in prison, a fine of $1,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.
A task force led by the Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation leading to the indictment in this case. The task force also included several other federal, state, and local agencies from multiple states, including the Internal Revenue Service - Criminal Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, the Allegheny County District Attorney’s Office, the Pittsburgh Bureau of Police, the Allegheny County Police Department, the Penn Hills Police Department, the Monroeville Police Department, and the McKees Rocks Police Department.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Charged with Trying to Send A Pistol from U.S. to LebanonRead the Press Release
PITTSBURGH – A Stanton Heights man has been indicted by a federal grand jury in Pittsburgh on a charge of smuggling goods from the United States, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Feb. 18, named Tarek Mohamed Chok, 49, as the sole defendant.
According to the indictment presented to the Court, on or about Sept. 18, 2012, Chok knowingly and fraudulently attempted to export and send a Springfield, Model 1911, .45 caliber pistol from the United States to Lebanon.
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 James T. Kitchen is prosecuting this case on behalf of the government.
The Department of Homeland Secuirty 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.
Career Offender Charged with Illegally Possessing Weapons and DrugsRead the Press Release
PITTSBURGH – A Pittsburgh man with multiple state court convictions has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on Feb. 18, named Jeremiah Pashuta, 35, as the sole defendant.
According to court filings, on Aug. 6, 2013, Pashuta possessed a sawed-off shotgun and two semi-automatic pistols on the day Pittsburgh Police Officers executed a search warrant at his residence. Police also located approximately 649 stamp bags containing a total of 49.84 grams of heroin, thousands of dollars in cash, a drug scale and records of drug debts. Pashuta has had multiple state court convictions for drug dealing, illegal gun possession and threats in the past. Federal law makes it illegal for a person to possess a firearm or ammunition after a state court conviction for an offense carrying a maximum penalty of more than one year in prison.
The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of $2,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
ATF and Pittsburgh Police Team up to Put Illegal Gun Possessor Back in Federal PrisonRead the Press Release
PITTSBURGH – A convicted felon from Penn Hills, Pa., has been indicted by a federal grand jury in Pittsburgh for a second time on a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Feb. 18, named Michael Tyrone Waller, a/k/a Maurice Murray, a/k/a Donald Maurice Murray, a/k/a James Woods, a/k/a Stickman, 28, as the sole defendant.
According to the indictment, on or about Feb. 4, 2013, Waller, being a convicted felon, illegally possessed a .40 S&W caliber semi-automatic Springfield Armory pistol and ammunition after his release from federal prison on a prior conviction for being a felon in possession of a firearm and possession of heroin with the intent to distribute it. Waller also has been convicted of felony crimes in Allegheny County for providing weapons to inmates and being a fugitive in possession of a firearm. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
The law provides for a maximum sentence of up to 10 years in prison, a fine of $250,000 or both, as well as an additional period of incarceration for committing the crime while under the supervision of the United States Probation Office after his release from jail. 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 Ross E. Lenhardt of the Violent Crimes Section of the United States Attorney's Office is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Police Department conducted the investigation leading to the indictment of Waller. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Gets 5 Years in Prison for Dealing Heroin While on Supervised ReleaseRead the Press Release
PITTSBURGH – Ricco Sears of Pittsburgh, Pa., was sentenced for heroin trafficking while he was on federal supervised release following a prior conviction and sentence for heroin trafficking, United States Attorney David J. Hickton announced today.
Sears, 28, was sentenced by United States District Judge Nora Barry Fischer to serve 60 months in federal prison, consecutive to the 18-month prison sentence Sears recently received for violating his supervised release for his prior federal heroin trafficking conviction. Judge Fischer also ordered Sears to serve six years of supervised release following his release from prison and to forfeit the $20,910 in United States currency that was seized from Sears in August 2012.
In October 2013, Sears pled guilty to possessing heroin with intent to distribute it in August 2012 and to distributing heroin in April 2012. Sears was on federal supervised release during that time period.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration in Pittsburgh and New York, the Pennsylvania State Police, the Pittsburgh Bureau of Police, the Allegheny County Police Department, the Pennsylvania Attorney General's Office, the Wilkins Township Police Department, the East Pittsburgh Police Department, the New York City Police Department, the Blair County District Attorney's Office, and the Allegheny County District Attorney's Office conducted the investigation leading to the convictions and sentence in this case.
Jersey Man Gets Probation for Using Fake AmEx to Buy Goods at Pittsburgh-area StoresRead the Press Release
PITTSBURGH - A resident of Oaklyn, New Jersey, has been sentenced in federal court to 18 months of probation on his conviction of access device fraud, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Raymond Hasaan Matthews, 37.
According to the information presented to the court, Matthews used a counterfeit American Express credit card in November 2011 at Casa D'Oro Jewelers to purchase two watches totaling approximately $15,605.00, as well as at other stores including Dicks Sporting Goods and Home Depot where he purchased additional merchandise.
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 for the investigation leading to the successful prosecution of Raymond Hasaan Matthews.
Former Exec Sentenced to 10 Years in Prison for Brokering $30M in Fraudulent Mortgage LoansRead the Press Release
PITTSBURGH - A resident of Finleyville, Pa., has been sentenced in federal court to ten years of imprisonment on his conviction of wire fraud conspiracy, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence yesterday on David McCloskey, 49.
According to information presented to the court, McCloskey operated a mortgage broker company called First Atlantic Financial that brokered more than $30 million worth of fraudulent loans. The loans were fraudulent because the loan applications contained false representations related to the borrowers’ income and assets, which were supported by bogus documents prepared by McCloskey and his co-conspirators. Fraudulent appraisals were also part of McCloskey's conspiracy. Most of the fraudulent appraisals were prepared by co-conspirator Kenneth Cowden, who was not licensed to prepared appraisals. His appraisals also drastically overstated the values of the properties serving as collateral for the loans.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Mortgage Fraud Task Force for the investigation leading to the successful prosecution of McCloskey.
The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Task Force include the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigations; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff's Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.
Somerset County Woman Sentenced to Probation for Role in Cocaine Distribution SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Tire Hill, Pa, has been sentenced in federal court to five years probation, the first three months of which must be served by conditions of home confinement, on her conviction of conspiracy to distribute cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Nichole L. Rankin, 26.
According to information presented to the court, from Nov. 2011 to July 18, 2012, Rankin conspired to distribute 500 grams or more of cocaine.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Safe Streets Task Force initiative comprised of the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania Attorney General's Office, the Blair County Drug Task Force, the Cambria County Drug Task Force, the Somerset County Drug Task Force, the Roaring Spring Borough Police Dept. and the Paint Township Police Dept. for the investigation leading to the successful prosecution of Rankin.
Falcon Drilling CEO Conspired to Embezzle $9M from CompanyRead the Press Release
PITTSBURGH – An Indiana, Pa., resident pleaded guilty in federal court to charges of conspiracy to commit mail fraud and forge checks, as well as charges of mail fraud and tax fraud, United States Attorney David J. Hickton announced today.
Larry Dean Winckler, 53, pleaded guilty to seven counts before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that between 2007 and 2012, Winckler, the Chief Operating Officer at Falcon Drilling Company in Indiana, Pa., conspired to embezzle nearly $9,020,687 from his employer by creating forged checks and fake company invoices. The government represented to the court that Winckler conspired to defraud Falcon through embezzlement of company funds by using forged checks, fake invoices to fictitious or real vendors, and false statements to auditors.
Judge McVerry scheduled sentencing for May 30, 2013, at 9:30 a.m. The law provides for a total sentence of 74 years in prison, a fine of $1,300,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of Winckler.
Erie Man Indicted on Child Pornography ChargesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
The two-count indictment named Graham K. Yahn, 26, as the sole defendant.
According to the indictment presented to the court, Yahn received and possessed computer images depicting minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 30 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 Christian A. Trabold 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 or information 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.
Windber, Pa., Man Sentenced to Probation with Home Detention for Conspiring to Distribute CocaineRead the Press Release
JOHNSTOWN, Pa. - A resident of Windber, Pa., has been sentenced in federal court to five years of probation, the first six months of which must be served by conditions of home confinement, on his conviction of conspiracy to distribute cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Peter Donato, 31.
According to information presented to the court, from November 2011 to July 18, 2012, Donato conspired to possess and distribute 500 grams or more of cocaine.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Safe Streets Task Force initiative comprised of the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pa. Attorney General's Office, the Blair County Drug Task Force, the Cambria County Drug Task Force, the Somerset County Drug Task Force, the Roaring Spring Borough Police Dept. and the Paint Township Police Dept. for the investigation leading to the successful prosecution of Donato.
Sharon Man Sentenced to 10 Years in Prison for Possessing, Selling Crack CocaineRead the Press Release
PITTSBURGH, PA - A resident of Western Pennsylvania, has been sentenced in federal court to 120 months in prison on his conviction of violating federal narcotic laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Maurice Davis, Jr., 28, of Sharon, PA.
According to information presented to the court, on April 12, 2012, Davis, a career offender, possessed with the intent to distribute 180 grams of crack cocaine. In addition, Davis, together with others, sold crack cocaine out a “stash house” located in Sharon, Pennsylvania.
Assistant United States Attorney Eric S. Rosen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police and the Southwest Mercer County Regional Police for the investigation leading to the successful prosecution of Maurice Davis, Jr.
Former Erie Man Sentenced to 7+ Years in Prison for Illegally Possessing GunRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 80 months in prison on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Michael Jerod Manning, 23.
According to information presented to the court, Manning possessed a firearm while being a convicted felon.
Assistant United States Attorney Christine A. Sanner prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Erie Police Department for the investigation leading to the successful prosecution of Manning.
According to Mr. Hickton, this case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Appraisal Company Owner Sentenced to 8 Years in Prison for Participating in Two Mortgage Fraud SchemesRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 96 months imprisonment, to be followed by three years of supervised release, on his conviction of wire fraud and wire fraud conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Jason Moreno, 30, of Pittsburgh, Pa.
According to information presented to the court, Moreno committed and conspired to commit wire fraud from November 2005 to November 2007. Moreno owned and operated a company called Platinum Appraisal Services that regularly prepared fraudulent appraisals that overstated the values of the properties serving as collateral for the loans. He was convicted in connection with two complex mortgage fraud schemes. The primary actor in the first scheme was Robert Arakelian, who operated Pittsburgh Home Loans. The primary action in the second scheme was James Platts, who operated Easy Realty Solutions. Both schemes involved overstating the sales prices of the properties, falsely representing that the borrowers had the financial wherewithal to make a significant down payment associated with the purchase of the properties and to make the mortgage payments. In fact, the borrowers, many of whom were unsophisticated and had poor financial conditions, did not make down payments associated with the purchase of the properties and could not make the mortgage payments.
Moreno’s role was to provide fraudulent appraisals that overstated the values of the properties serving as collateral for the loans. The appraisals often reported that the conditions of the properties were vastly superior to their actual conditions. Many of the properties were, in fact, in deplorable condition. Moreno, who was not even licensed to prepare appraisals, also falsely represented that a licensed appraiser prepared the appraisals.
Moreno also participated in the schemes as an investor in some of the properties. In that role, not only did Moreno prepare fraudulent appraisals, but he also misled the borrowers and the lenders on numerous other aspects related to the transactions. Some of those transactions involved his own family members, including his mother, his aunt, and his uncle.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Mortgage Fraud Task Force for the investigation leading to the successful prosecution of Moreno.
The Mortgage Fraud Task Force conducted the investigation leading to the indictment in this case. The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Task Force include the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigations; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff's Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.
Waterford Man Possessed Sexually Explicit Pictures and Movies of ChildrenRead the Press Release
ERIE, Pa. - A resident of Waterford, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
Joshua Michael Falk, 22, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Falk possessed computer images and movies depicting minors engaging in sexually explicit conduct.
Judge Cercone scheduled sentencing for June 9, 2014 at 1:45 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Falk on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Falk.
Launched in February 2006, Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys' Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Venango County Man Charged with Falsifying Documents on Well PluggingRead the Press Release
ERIE, Pa. - A resident of Pleasantville, Pennsylvania has been indicted by a federal grand jury in Erie on charges of making false statements in matters relevant to permits issued under the Safe Drinking Water Act, United States Attorney David J. Hickton announced today.
The three-count indictment named Ronald A. Wright, 44, as the sole defendant.
According to the indictment presented to the court, between in and around September 2009, to in and around April 2011, Wright falsified Certificates of Well Plugging, falsely claiming that he had properly plugged abandoned oil wells, when he had not properly done so. These forms were relied upon by the EPA in regard to permits issued for Class II injection wells. The approval process for these injection wells required all abandoned wells within a quarter mile of the injection well site to have first been properly plugged.
The law provides for a maximum total sentence of 15 years in prison, a fine of $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
“When individuals knowingly submit false reports or data to the government as alleged in this case, our ability to protect public health and the environment is undermined,” said David G. McLeod, Jr., Special Agent in Charge of EPA’s criminal enforcement program for the Mid Atlantic States. “Anyone thinking about submitting false information should seriously consider today’s indictment. EPA and its partner agencies will not hesitate to seek prosecution of those who violate our nation’s environmental laws.”
The Environmental Protection Agency - Criminal Investigation Division, the Pennsylvania Office of Attorney General – Environmental Crimes Section, and the U.S. Forest Service – Law Enforcement and Investigations, 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.
Three Johnstown Men Indicted on Gun and Drug ChargesRead the Press Release
JOHNSTOWN, Pa. – Three residents of Johnstown, Pa., were indicted by a federal grand jury in Johnstown on charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
The seven-count indictment named as defendants the following individuals: James Andre Hendricks, 38; Logan Tyrell Harris, 32; and Dian Shanell Lassiter, 31.
According to the indictment presented to the court, from Aug. 8, 2013, through Aug. 22, 2013, James Andre Hendricks, Logan Tyrell Harris and Dian Shanell Lassiter conspired to distribute and possess with intent to distribute 100 grams or more of heroin.
In addition, on Aug. 8, Aug. 20 and Aug. 22, 2013, Hendricks distributed less than 100 grams of heroin on each of those occasions, and on Aug. 22, 2013, Hendricks, Harris and Lassiter possessed with the intent to distribute 100 grams or more of heroin.
On Aug. 22, 2013, James Andre Hendricks was found in possession of a Sturm & Ruger, Model P95, 9mm pistol. On Dec. 3, 2007, Hendricks was convicted in Bedford County, Pa., of drug trafficking, which is a crime punishable by imprisonment for a term exceeding one year. On Aug. 22, 2013, Logan Tyrell Harris was found in possession of a Sturm & Ruger, Model P345, .45 caliber pistol. On May 20, 2004, Harris was convicted in Union County Superior Court of New Jersey of resisting arrest, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
The law provides for a maximum total sentence for James Andre Hendricks of 150 years in prison, a fine of $13,250,000, or both; for Logan Tyrell Harris, 90 years in prison, a fine of $10,250,000, or both; and for Dian Shanell Lassiter, 80 years 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 offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation leading to the indictment in this case.
According to Mr. Hickton, this case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Indiana, Pa., Man Sentenced to 5 Years in Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH – An Indiana, Pa., resident has been sentenced in federal court to 60 months in prison, to be followed by 12 years of supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Christopher Murdock, 27.
According to information presented to the court, on or about Nov. 17, 2012, Murdock 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.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Murdock.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Franklin Man Sentenced to Prison for Failing to Register as A Sex OffenderRead the Press Release
ERIE, Pa. - A former resident of Franklin, Pennsylvania, has been sentenced in federal court to ten months in jail on his conviction of failure to register under the Sex Offender Registration and Notification Act, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Thomas K. Baker, 56.
According to information presented to the court, Baker knowingly failed to update his registration as required by the Sex Offender Registration and Notification Act.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Marshal’s Service for the investigation leading to the successful prosecution of Baker.
Former City Worker Sentenced to Probation with Home Detention for Bid-rigging SchemeRead the Press Release
PITTSBURGH - A former City of Pittsburgh employee has been sentenced in federal court to three years supervised release which consists of six months home detention and a $6,000 fine on her conviction of conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Christine Kebr, 57, of Pittsburgh, Pa.
According to information presented to the court, Kebr was an employee of the City of Pittsburgh with responsibility for installing radios and mobile data terminals (MDTs) in City Police cars. She conspired with others to create a company, Alpha Outfitters, in order to steer a city contract to Alpha Outfitters, for the installation of MDTs in police cars. Alpha received the contract in part by fraudulently representing that the company was a Women's Business Enterprise (WBE).
Assistant United States Attorneys Robert S. Cessar and Lee J. Karl prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations for the investigation leading to the successful prosecution of Kebr.
Erie Man Indicted on Drug ChargesRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania has been indicted by a federal grand jury in Erie on charges of violating federal drug laws, United States Attorney David J. Hickton announced today.
The three-count indictment named Jamie Darnell Pacely, 35, as the sole defendant.
According to the indictment presented to the court, on three occasions, Pacely possessed with intent to distribute and distributed less than 28 grams of crack cocaine.
The law provides for a maximum total sentence of 60 years in prison, a fine of $3,000,000 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 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 State Police, the Erie Police Department, and the Pennsylvania Office of Attorney General Bureau of Narcotics 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.
Woman Traveled to Pittsburgh to Sell Counterfeit Money Orders and Bank ChecksRead the Press Release
PITTSBURGH, PA - A New Jersey woman pleaded guilty in federal court to charges of fraudulently transmitting postal money orders, and making, uttering and passing counterfeit security, United States Attorney David J. Hickton announced today.
Shawn S. Foote, 46, of Atlantic City, New Jersey, pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, Foote traveled to Pittsburgh, Pennsylvania, from Atlanta Georgia, to sell counterfeit U.S. Postal Money Orders and counterfeit bank checks to another for the purpose of being fraudulently negotiated.
Judge Bissoon scheduled the sentencing for May 28, 2014, at 10 a.m. The law provides for a maximum total sentence of 15 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and Homeland Security Investigations conducted the investigation that led to the prosecution of Shawn S. Foote.
New York Man Sentenced to Probation with Monitoring for Passing Counterfeit CurrencyRead the Press Release
PITTSBURGH - A Brooklyn, NY, resident has been sentenced in federal court to 54 months of probation, which includes six months of home detention with electronic or GPS monitoring, on his conviction of conspiracy and passing counterfeit currency, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Edwin Phillip, 29.
According to information presented to the court, Phillip conspired and passed counterfeit currency during the period of Nov. 9, 2012, through Nov. 30, 2012.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Phillip.
Federal Inmate Sentenced to 10 More Months in Prison for Possessing HeroinRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania pleaded guilty and was sentenced in federal court to 10 months in jail on his conviction for possession of contraband in prison, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Bernardo Granado- Velasquez, 42. The sentence was imposed to run consecutively to the sentence Granado-Velasquez is currently serving.
According to information presented to the court, on or about March 22, 2013, Granado- Velasquez was in possession of contraband, namely, a quantity of heroin.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Officers of the McKean Federal Correctional Institution for the investigation leading to the successful prosecution of Granado-Velasquez.
Erie Residents Admit Robbing Postal StationRead the Press Release
ERIE, Pa - Two residents of Erie, Pennsylvania, pleaded guilty in federal court to a charge of robbery of a United States postal station, United States Attorney David J. Hickton announced today.
Elijah Devon Sherrod, 19 and Latisha Marie Palochak, 23, each pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on or about July 16, 2013, the defendants robbed an individual of money and property that was under the control of the United States.
Judge Cercone scheduled sentencing for June 9, 2014. The law provides for a total sentence of ten years in prison, a fine of $250,000, or both for each defendant. 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 defendants.
Pending sentencing, the court continued Palochak on bond.
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 State Police, the Erie Police Department, and the Pennsylvania Office of Attorney General Bureau of Narcotics Investigation conducted the investigation that led to the prosecution of Sherrod and Palochak.
Pension Administrator Sentenced to Prison for Embezzling FundsRead the Press Release
PITTSBURGH – An Allegheny County man has been sentenced in federal court to 25 months in prison and $1,190,957.86 in restitution on his conviction of false statements and concealing information on pension plan documents, U.S. Attorney David J. Hickton announced today.
United States District Judge Mark Hornak imposed the sentence yesterday on Merrill J. Druggs, 67, of Gibsonia, Pa.
According to the information presented to the court, Druggs was a Tax Manager for Oerlikon USA Holding, Inc., and a Plan Administrator and Trustee of an Oerlikon employee pension plan covering 1,400 persons. In 2011, after 34 years of employment with Oerlikon, Druggs was fired when the embezzlements were discovered. Druggs embezzled monies in several ways: by diverting Oerlikon monies to bank accounts using addresses of post office boxes that he created and controlled and his personal residence; by setting up an unauthorized 401(k) plan for his benefit and the benefit of two employess who he directly supervised, and used Oerlikon's money to fund it; and by using Oerlikon checks and a company American Express card to pay for his personal expenses. Druggs was able to embezzle $718,518 over a period of several years. The restitution ordered by the court included an additional amount of $472,439.86 to reimburse Orelikon and the pension plan for lost earnings on the embezzled monies.
Before imposing sentence the court said that this was a “carefully calculated plan” and that Druggs used his “education, experience and learning” to steal from Oerlikon and the pension plan. The court noted that Druggs was a trusted fiduciary of Oerlikon and the pension plan, and further explained that in order to function, our “system of commerce relies upon the trust we place in fiduciaries” such as Druggs. By abusing that trust Druggs conduct was “by any measure a very serious offense”.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the U.S. Department of Labor, Pension Benefit Welfare Administration, for the investigation leading to the successful prosecution of Merrill J. Druggs.
Elderly California Man Sentenced for Conspiring to Distribute MethamphetamineRead the Press Release
PITTSBURGH - A California man has been sentenced in federal court to time served (2 ½ months imprisonment), 12 months home detention, and 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 Dominick Spickle, 80, of Sacramento, Calif.
According to information presented to the court, Spickle was involved in a conspiracy to distribute more than 50 grams of methamphetamine.
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 Spickle.
Eighty-Four, Pa., Man Sentenced to 5 Years in Prison for Structuring Financial TransactionsRead the Press Release
PITTSBURGH – Daniel Young has been sentenced in federal court to 63 months imprisonment, to be followed by three years of supervised release on his conviction of conspiracy and structuring financial transactions, United States Attorney David J. Hickton announced today. Young was also ordered to forfeit $440,000 in money and equipment.
United States District Judge David S. Cercone imposed the sentence on Young, 42, of Eighty- Four, Pa.
According to information presented to the court, Daniel Young and his co-defendants, Kimberly Ostrander and Dennis Young, participated in a conspiracy in which they structured financial transactions with financial institutions and businesses to avoid the filing of Currency Transaction Reports. Currency Transactions Reports are required to be filed when financial institutions and businesses receive in excess of $10,000 in cash. Young, who is serving a 12- to 24-year sentence for drug trafficking, structured approximately $260,000 in cash from his drug trafficking proceeds to purchase his home, heavy equipment, and a vehicle. Young and his co-conspirators used a variety of bank accounts and individuals to structure the cash payments.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service-Criminal Investigations and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the investigation leading to the successful prosecution of Daniel Young.
Plum Attorney Sentenced to 11 Years in Prison for Million Dollar Mortgage Fraud SchemeRead the Press Release
PITTSBURGH - A Plum Borough resident has been sentenced in federal court to 135 months in prison on her convictions of filing false tax returns, failing to file tax returns, and mail fraud, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Lisa Gerideau-Williams, 47, of Kensington, Pa.
According to information presented to the court, Gerideau-Williams was an attorney who operated a mortgage broker business called Genesis Home Solutions, and two companies specializing in closing real estate transactions - Millennium Settlement Services and Professional Settlement Solutions. Through these companies Gerideau-Williams operated a complex and multi-faceted fraud scheme.
One aspect of the scheme involved the submission of loan applications to lenders. The loan applications were fraudulent because Gerideau-Williams submitted them without the authority of the borrowers and they contained false information related to the borrowers' financial condition. For example, Gerideau-Williams submitted loan applications on behalf of her brother and her elderly aunt that were not authorized by either. In addition, Gerideau-Williams represented to lenders that her elderly aunt owned and operated a lucrative cleaning business when, in fact, her aunt was a retired state worker. Gerideau-Williams also furthered the fraud by submitted fake documents supporting the misrepresentations in the loan applications and by forging the signature of her brother and her aunt.
Gerideau-Williams' fraud also related to her operation of businesses that closed real estate transactions. Gerideau-Williams received money from lenders into her trust account that was required to be disbursed to pay liabilities associated with the collateral. In that way the lender would stand in the first lien position related to the collateral. Gerideau-Williams, rather than paying those liabilities, would simply take the money and use it to support her lavish lifestyle.
Gerideau-Williams also defrauded borrowers. Borrowers paid for title insurance and for other services such as recording deeds and mortgages. Rather than providing these services, however, Gerideau-Williams simply took the fees for those services, but failed to actually provide those services.
Title insurance companies were also victimized by Gerideau-Williams' fraud. At closings, Gerideau-Williams collected fees from borrowers for title insurance. Gerideau-Williams, however, failed to remit those payments to the title insurance companies. In addition, some of the title insurance companies terminated Gerideau-Williams authority to issue title insurance under their names. Despite the termination, however, Gerideau-Williams continued to issue title insurance on fraudulent transactions as if she was authorized to do so.
Gerideau-Williams' fraud was particularly egregious related to property located in Pittsburgh, Pa. Prior to 2005, Gerideau-Williams rented that property and it was her residence. On Sept. 6, 2005, through her fraudulent businesses, she sold the property from the rightful owner to her elderly aunt without the knowledge of either the owner or her aunt. A lender financed the purchase, and Gerideau-Williams simply took all of the proceeds from the transaction for her personal benefit. Gerideau-Williams, however, did not record the deed or the mortgage related to the property and therefore the property still appeared on the public record to be owned by the rightful owner of the property free of any mortgages.
On March 13, 2006, Gerideau-Williams arranged to purchase the property in her own name financed through a fraudulently obtained loan. While she recorded the deed transferring ownership of the property to her own name, she did not record the mortgage and therefore, according to the public record, it appeared that she owned the property free of any liens.
On Aug. 7, 2006, Gerideau-Williams sold the property to her brother, and her brother financed the purchase through a fraudulently obtained loan secured by Gerideau-Williams. Gerideau-Williams received the proceeds from the sale, but she did not record the deed or the mortgage and therefore the public record still showed that she owned the property free of any liens.
On Jan. 19, 2007, Gerideau-Williams sold the property to her brother again, and her brother again financed the purchase through a fraudulently obtained loan secured by Gerideau-Williams. Gerideau- Williams again received the proceeds from the sale, but she again did not record the deed or the mortgage and therefore the public record still showed that she owned the property free of any liens.
Finally, on Feb. 20, 2007, Gerideau-Williams sold the property to her brother again, and her brother again financed the purchase through a fraudulently obtained loan secured by Gerideau-Williams. Gerideau-Williams again received the proceeds from the sale, but she again did not record the deed or the mortgage and therefore the public record still showed that she owned the property free of any liens.
Equally egregious are the various loans Gerideau-Williams secured in the name of her elderly aunt. As mentioned above, Gerideau-Williams arranged for her aunt to purchase property from the rightful owner. That purchase was financed through a loan fraudulently obtained by Gerideau-Williams.
Gerideau-Williams' aunt owned a home in Harrisburg, Pa. On Nov. 2, 2005, Gerideau-Williams arranged for a fraudulent refinance loan collateralized by her aunt's Harrisburg property. On Jan. 30, 2007, Gerideau-Williams arranged for a second fraudulent refinance transaction collateralized by that same property.
On March 12, 2007 and March 21, 2007, Gerideau-Williams, without the authority of her elderly aunt, secured two other refinance transactions collateralized by that same property. For each transaction, Gerideau-Williams took the proceeds from the loans and used those proceeds to support her lavish lifestyle. In neither of those transactions, however, did she record the mortgages. In connection with those transactions she issued title insurance without the authority of the title insurance companies, forged her aunt's signature on various documents, and failed to pay the liabilities associated with the collateral as required by the lenders.
For the 2004, tax year Gerideau-Williams, who took taxation classes at Georgetown University School of Law toward an advanced degree in tax law, filed tax returns that drastically understated her income because she failed to include the more than a million dollars earned in the course of her fraud schemes. For that 2005 and 2006 tax years, she did not file her income tax returns.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Mortgage Fraud Task Force for the investigation leading to the successful prosecution of Gerideau-Williams.
Federal Criminal Complaint Charges PSU-Altoona Student from Russia with Making Unregistered Destructive DevicesRead the Press Release
JOHNSTOWN, Pa. – A college student from Russia has been charged in the Western District Pennsylvania for allegedly making two destructive devices that were found in a suitcase in his rented apartment on the Penn State Altoona campus.
U.S. Attorney David J. Hickton of the Western District of Pennsylvania made the announcement.
Vladislav Miftakhov, 18, a legal permanent resident of the United States, was charged in federal court in Johnstown, Pa., with possessing and making an unregistered destructive device.
According to accusations contained in the criminal complaint, Miftakhov constructed the devices using Magnesium, Potassium perchlorate and an aluminum container, which he purchased and had shipped to his residence. The two devices found in Miftakhov’s apartment on Jan. 24, 2014, qualify as destructive devices as defined by federal law and therefore are required to be registered in the National Firearms Registration and Transfer Record (NFRTR). The defendant does not have any firearms registered to him in the NFRTR.
The investigation is continuing.
The law provides for a maximum penalty of 10 years in prison, a $10,000 fine or both.
The Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Pennsylvania State Police, the Blair County District Attorney’s Office and the Altoona Police Department, conducted the investigation leading to the federal charges against Miftakhov. Assistant U.S. Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Judge Sentences Carrolltown Woman to Probation for Conspiring to Launder MoneyRead the Press Release
JOHNSTOWN, Pa. - A resident of Carrolltown, Pa., has been sentenced in federal court to two years probation on her conviction of conspiracy to commit money laundering, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Theresa A. Deckard, 60.
According to information presented to the court, from March 2008 to May 9, 2011, Deckard conspired to commit money laundering.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
A joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, conducted the investigation that led to the prosecution of Deckard. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, Pennsylvania Attorney General's Office, Cambria County District Attorney's Office, Carrolltown Police Department, Patton Police Department, Ebensburg Police Department, Portage Police Department and Paint Township Police Department.
Johnstown Woman Sentenced to 3 Years in Prison for Possessing Crack CocaineRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to 37 months in prison and three years supervised release on her conviction of possession with the intent to distribute cocaine base, commonly known as "crack," United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Ebony R. Thorne, 31.
According to information presented to the court, on Oct. 31, 2012, Thorne possessed less than 28 grams of cocaine base with the intent to distribute it.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Thorne.
Cambria County Man Sentenced to Probation, Community Service for Conspiring to Distribute MarijuanaRead the Press Release
JOHNSTOWN, Pa. - A resident of Elmora, Pa., has been sentenced in federal court to five years probation, the first six months of which must be served by condition of home confinement, and 100 hours of community service on his conviction of conspiracy to possess and distribute marijuana, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Joshua V. Bradley, 36.
According to information presented to the court, from March 2009 to May 9, 2011, Bradley conspired to possess and distribute 100 kilograms or more of marijuana. Evidence presented to the court at sentencing reflected that Bradley conspired with George M. Lowmaster and others to facilitate and promote Lowmaster's drug distribution organization.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
A joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, conducted the investigation that led to the prosecution of Bradley. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, Pennsylvania Attorney General's Office, Cambria County District Attorney's Office, Carrolltown Police Department, Patton Police Department, Ebensburg Police Department, Portage Police Department and Paint Township Police Department.
Local Men Sentenced to Prison for Selling Fraudulent Gas Drilling RightsRead the Press Release
PITTSBURGH - Two Western Pennsylvania residents have been sentenced in federal court on their convictions of mail fraud, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed a sentence of 40 months in prison and three years supervised release on Derek A. Candelore, aka Dan Kun and Kevin Kelly, 34, of Jeannette, PA 15644, and a sentence of 20 months in prison and two years supervised release on William J. Ray, 30, of Verona, PA 15147. The court ordered restitution for both defendants totaling $2.4 million.
According to the information presented to the court, Candelore and Ray were employed by Penn-Star Energy, LLC of Butler County (hereinafter Penn-Star), as landmen. A landman contacts mineral rights owners on behalf of natural gas production companies to arrange for leases of mineral interests for oil and gas production. Penn-Star acquired mineral rights on behalf of Range Resources Corporation. The mineral rights for four separate blocks of land in Washington County consisting of one hundred or more acres were stolen by Candelore and Ray using forged signatures, fake companies and forged notary signatures and stamps. These frauds began in February 2011 and ended in June 2012. During the scheme Candelore and Ray set up several post office boxes and bank accounts in the names of companies they created. They arranged for deeds and other documents to be filed at the Washington County Recorder of Deeds Offices to make it appear that the true mineral rights owners had transferred their mineral rights to the fake companies they had created. These deeds had forged signatures of several true owners and forged notary signatures and stamps. After they acquired what appeared to be ownership of the mineral rights, the fake companies owned by Candelore and Ray leased and/or sold the mineral rights to innocent and unsuspecting purchasers including local investors, out-of-state investment groups and Range Resources. Candelore exclusively ran two of the schemes and participated in the other two while Ray’s participation was limited to two of the four schemes. In the two schemes that Candelore and Ray did together, they split the money. The total loss to investors of investors was $2,400,144.77. Candelore pocketed $1,856,998.27, and Ray pocketed $543,146.50. The scheme began to unravel when one of the mineral rights owners hired an attorney to sell the mineral rights. The attorney discovered that one of the fake companies, Clark Lumber Company, owned the mineral rights by reason of a deed that bore the forged signature of the true owner.
Assistant United States Attorney Nelson P. Cohen prosecuted these cases on behalf of the government.
U.S. Attorney Hickton commended the U.S. Postal Inspection Service for the investigation leading to the successful prosecution of Candelore and Ray.
Jury Finds Felon Illegally Possessed GunRead the Press Release
PITTSBURGH – On Jan. 30, 2014, after deliberating for three hours, a federal jury of six men and six women found Curtis Delay Brown guilty of one count of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Brown, 42, of Pittsburgh, Pa., was tried before United States District Judge Terrence F. McVerry in Pittsburgh, Pa.
According to Assistant United States Attorney Michael Comber, who prosecuted the case, the evidence presented at trial established that on or about July 7, 2012, Brown, being a convicted felon, illegally possessed a Taurus, Model 85 Ultra Lite, .38 Special caliber revolver. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm.
Judge McVerry scheduled sentencing for May 6, 2014, at 9:30 a.m. The law provides for a total sentence of not less than 15 years and up to life in prison, a fine of $250,000, 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 revoked the defendant’s bond pending sentencing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the City of Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Curtis Delay Brown.
Utah Man Charged in Marijuana Trafficking SchemeRead the Press Release
PITTSBURGH - A Utah resident has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and possession with intent to distribute a controlled substance, United States Attorney David J. Hickton announced today.
The two-count indictment, returned yesterday, named Ken Barton Burrow, 53, currently incarcerated in the Lawrence County Jail, as the sole defendant.
According to the indictment, Burrows conspired with others to distribute 100 kilograms or more of marijuana.
The law provides for a maximum total sentence of not more than 80 years 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 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.
Homeland Security Investigations, Customs and Border Protections Air and Marine, along with the Union and Mahoning Township Police Departments, and the Pennsylvania State Police, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. The defendant is presumed innocent unless and until proven guilty.
Jury Finds Erie Man Guilty of Violating Federal Firearms LawsRead the Press Release
ERIE, Pa. – After deliberating approximately one hour, a federal jury of four men and eight women found Joseph Lee Ollie guilty of three counts of federal firearms violations, United States Attorney David J. Hickton announced today.
Joseph Lee Ollie, 55, was tried before Senior United States District Judge Maurice B. Cohill Jr. in Erie, Pennsylvania.
According to Assistant United States Attorney Marshall J. Piccinini, who prosecuted the case, the evidence presented at trial established that on November 25, 2011, Ollie engaged in a scheme to burglarize homes on Shadduck Road in North East, Pennsylvania, and in the matter on trial, stole a Mossberg Model 500 shotgun. Ollie’s possession of the firearm was unlawful because he was prohibited from firearm possession as a result of his prior felony convictions and as a result of a domestic abuse restraining order against him. According to information presented in court, Ollie was already convicted, and is currently awaiting sentencing, for attempting to obtain a 9mm handgun from Bob’s Gun Shop in Edinboro, Pennsylvania in April 2011, when he lied on the federal firearm transaction form by failing to disclose his prior felony convictions.
According to United States Attorney Hickton, many of the firearms unlawfully used and possessed in Northwestern Pennsylvania have come from residential burglaries. Targeting those criminals who are burglarizing homes and stealing firearms, and vigorous enforcement of those individuals who are violating federal firearms laws, are important pieces of our anti-violence strategy in the region.
Sentencing on both cases will be scheduled at a later time by Judge Cohill. The law provides for a total sentence of 30 years in prison, a fine of $750,000, 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 Pennsylvania State Police conducted the investigation that led to the prosecution of Ollie.
DEA Receiving Tips on Recent Heroin Overdoses via TextRead the Press Release
PITTSBURGH - The Pittsburgh Office of the Drug Enforcement Administration (DEA) has implemented the Tip411 system to receive information related to the recent heroin and fentanyl overdoses in the Pittsburgh area.
Information can be sent via text message by entering Tip411 (847411) in the “To” field, and the keyword “PGHOD” followed by the tip information in the text field. All information provided is 100% anonymous.
U.S. Attorney Statement on Heroin Overdose DeathsRead the Press Release
PITTSBURGH - David J. Hickton, United States Attorney for the Western District of Pennsylvania, issued the following statement today regarding multiple heroin overdose deaths occurring in Western Pennsylvania over the past ten days:
“The recent dramatic increase in the number of heroin overdoses in our region has quickly become the most pressing crime problem for law enforcement. The United States Attorney’s Office is working closely with our federal, state and local partners to uncover the source of this highly dangerous drug, and to prosecute those responsible for causing these tragic deaths. We will devote all necessary resources to stop the distribution in our area of this most lethal combination, a mix of heroin and fentanyl.
“We urge persons who are addicted, and those of you with loved ones who are addicted, to use this outbreak as a reason to seek treatment. Ingesting this form of heroin obviously carries a far greater risk than is typical, although overdoses are common with any form of heroin. We also ask for cooperation from the community in rooting out the source of these distributions. Anyone with information should contact the DEA at 412-287-3829, or send a text to Tip411 (847411) and the keyword “PGHOD” followed by the tip information, or call their local police department.”
Sewickley Woman Sentenced to 10 Years in Federal Prison for Mortgage Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Sewickley, Pa., has been sentenced in federal court to 10 years imprisonment on her conviction of wire fraud and money laundering conspiracy in connection with a mortgage fraud scheme, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Denise Bonfilio, 56.
According to information presented to the court, Bonfilio participated in a mortgage fraud scheme that included presenting to lending institutions fraudulent loan applications that overstated the borrowers’ financial condition in connection with loans collateralized by properties located in the Sewickley and Fox Chapel sections of Allegheny County, Pa.
Prior to imposing sentence, Judge Conti stated that it was a serious offense. She said that Bonfilio harmed friends for greed and yet she showed no remorse for what she had done. The sentence was imposed to promote respect for the law.
Assistant United States Attorney James Y. Garrett prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Mortgage Fraud Task Force for the investigation leading to the successful prosecution of Bonfilio. 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 Fraud Task Force include the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigations, the United States Department of Housing and Urban Development, Office of Inspector General, the United States Postal Inspection Service and the United States Secret Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff’s Office, the Pennsylvania Attorney General’s Office, the Bureau of Consumer Protection, the Pennsylvania Department of Banking, the Pennsylvania Department of State, Bureau of Enforcement and Investigations and the United States Trustee’s Office.
Judge Sentences Heroin Trafficker to 5 Years in PrisonRead the Press Release
PITTSBURGH- A Pittsburgh man has been sentenced in federal court to 60 months in prison after pleading guilty to violating federal drug laws, United States Attorney David J. Hickton announced today. This term of imprisonment is to be followed by three years of federal supervised release. United States District Judge Cathy Bissoon imposed the sentence on Dorianne Harris, 20.
According to information presented to the court, from in and around May 2012, and continuing thereafter to in and around March 2013, in the Western District of Pennsylvania and elsewhere, Harris conspired with others to distribute and possess with the intent to distribute 100 gram or more of heroin, a Schedule I controlled substance. The Court learned that Harris received multi-brick quantities of heroin from co-defendant Troy Anderson on a regular and continual basis, and that Harris then sold this heroin to others. Each brick of heroin contains 50 stamp bags of heroin, which retail for between $6 and $10 each. Troy Anderson has pled not guilty to the charges against him.
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, City of Pittsburgh Police Department, 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 and sentencing of Dorianne Harris.
Ross Man Sentenced to Prison for Cashing Dead Mother’s Social Security Benefit for 39 YearsRead the Press Release
PITTSBURGH – A Ross Township man was sentenced today in federal court to 18 months in prison, two years supervised release and restitution of $302,803.16 on his conviction of theft of government property, United States Attorney David J. Hickton announced today.
United States District Court Judge Mark R. Hornak imposed sentence upon Chauncey Clinton, 65.
According to information presented to the court, Clinton received and used the Social Security Title II benefits that continued to be issued to his mother, Clara Clinton, after her death on May 7, 1973. From June 1, 1973 to April 3, 2012, Clinton received $304,853.00 in Social Security Administration funds to which benefits he knew he was not entitled.
Prior to imposing sentence, Judge Hornak took into consideration the serious nature of the defendant’s crime, including the fact that the defendant wrongfully took benefit monies totaling over $300,000 for almost 39 years.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Special Agents of the Social Security Administration, Office of Inspector General, who conducted the investigation that led to the successful prosecution of Clinton.
New York Man Pleads Guilty in Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH - A New York City man pleaded guilty in federal court to violating federal narcotic laws, United States Attorney David J. Hickton announced today.
Tyrone Parker, 53, of New York, NY, pleaded guilty yesterday to one count of conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine before Senior United States District Judge Gustave Diamond. The Court learned that Parker, in the fall of 2012, agreed to provide a Pittsburgh-based confidential source with cocaine and heroin. On Dec. 6, 2012, Parker, acting together with co-defendant James Gray, drove two kilograms of cocaine towards Pittsburgh. The cocaine had been placed in Gray’s van. Both Parker and Gray were subject to traffic stops by Pennsylvania State Troopers, and found inside of Gray’s van was the agreed upon two kilograms of cocaine. James Gray has pleaded not guilty to the conspiracy charge against him.
The law provides for a maximum total sentence for Parker of not less than 10 years and up to life in prison, a fine of $8,000,000, 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. Judge Diamond scheduled sentencing for May 21, 2014.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Tyrone Parker.