Western District of Pennsylvania
Press releases recorded for this federal judicial district.
Former CEO of PA Cyber Nick Trombetta and CPA Neal Prence Charged in Elaborate Fraud SchemeRead the Press Release
PITTSBURGH, Pa. - The former CEO of the Pennsylvania Cyber Charter School and his accountant have been indicted by a federal grand jury in Pittsburgh on charges of mail fraud, theft or bribery concerning a program receiving federal funds, tax conspiracy and filing a false tax return. The announcement was made today at a news conference by United States Attorney David J. Hickton; FBI Special Agent in Charge Gary Douglas Perdue; Akeia Conner, Special Agent in Charge of the IRS-Criminal Investigation - Philadelphia Field Office; and Steven Anderson, Special Agent in Charge, Department of Education Office of Inspector General - Mid Atlantic Region.
The 11-count indictment, returned on Aug. 21, and unsealed today, named Nicholas Trombetta, 58, of East Liverpool, Ohio, and Neal Prence, 58, of Koppel, Pa.
According to the indictment, Trombetta was the founder and Superintendent of the PA Cyber Charter School. Trombetta created a series of connected for-profit and not-for-profit entities to siphon taxpayer funds out of PA Cyber and to avoid federal income tax liabilities. The indictment alleges that Prence, an accountant, assisted Trombetta in the tax fraud scheme.
“As the founder and CEO of PA Cyber, Trombetta was a custodian of the public trust, receiving public funds,” said U.S. Attorney Hickton. “These charges reflect our obligation to protect the education of children, who are our future, and to protect the compact with hardworking taxpayers.”
“Charter schools are funded with public money that is intended to help educate children in our communities,” stated FBI SAC Perdue. “When individuals enrich themselves with this money rather than act as stewards of the education funds entrusted to them, our communities and the children we are obligated to educate are the true victims.”
“During a six-year period that began in 2006, Mr. Trombetta with the assistance of CPA Prence, concealed his position as the direct beneficiary and recipient of funds generated by PA Cyber,” said IRS-CI SAC Conner. “Mr. Trombetta exerted his influence to control the flow of funds and falsify corporate books and records, ultimately shifting more than $8 million in income attributable to him, to the federal income tax returns of other persons so as to conceal his true income from the IRS. The government must hold corporations and their executives accountable for their actions. It is for this reason that IRS Criminal Investigation continues to vigorously pursue corporate fraud and those individuals who employ illegal accounting practices for personal financial gain.”
"Mr. Trombetta and Mr Prence knowingly and willfully abused their positions of trust for personal gain and did so at the expense of the educational development of children. That is unacceptable," said Steven Anderson, Special Agent in Charge of the U.S. Department of Education Office of Inspector General's Mid-Atlantic Regional Office. "Deservedly, Mr. Trombetta and Mr. Prence will now be held accountable for cheating Pennsylvania’s students."
The law provides for a maximum total sentence of 100 years in prison, a fine of $3,250,000, or both for Trombetta and five years imprisonment, $250,000, or both for Prence. 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 Attorneys James R. Wilson, Robert S. Cessar and Stephen R. Kaufman are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigations and the U.S. Department of Education Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Somerset County Man Pleads Guilty to Kidnapping ChargeRead the Press Release
JOHNSTOWN, Pa. – A resident of Windber, Pa., pleaded guilty in federal court to a charge of kidnapping, United States Attorney David J. Hickton announced today.
Lawrence R. Horner, III, 37, 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 July 9, 2011, Horner kidnaped a person whose identity is known and referred to as "L.N.," and did willfully travel and transport L.N. in interstate commerce in commission of the kidnaping offense.
Judge Gibson scheduled sentencing for Jan. 7, 2014, at 11 a.m. The law provides for a total sentence of life in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the 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 Richland Township Police Department and the Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Horner.
Fox Chapel Woman Illicitly Imported Anti-Cancer Drugs into U.S. for Sale at Stanton-Negley PharmacyRead the Press Release
PITTSBURGH, Pa. - A Fox Chapel resident pleaded guilty in federal court to charges of unlawful importation of prescription drugs, United States Attorney David J. Hickton announced today.
Robin W. Simon, 45, pleaded guilty to two counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that in July of 2007 Simon unlawfully imported the anti-cancer prescription drug known as "Xeloda" from Lisbon, Portugal. Simon had purchased the Xeloda from United Drug Wholesalers, which is based in Ireland, and directed United Drug to send those drugs to her in Portugal. In September of 2008, Simon unlawfully imported Xeloda from Heathrow Healthcare, Limited, which is based in Hounslow, Great Britain. The Xeloda tablets which Simon unlawfully imported from Portugal and Great Britain had been manufactured by Roche Laboratories in New Jersey. Simon then caused those medications to be dispensed to persons who presented prescriptions for Xeloda to the Stanton-Negley Pharmacy, which is located on North Negley Avenue in Pittsburgh.
Judge Schwab scheduled sentencing for Dec. 20, 2013, at 9:30 a.m. The law provides for a total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the 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 FDA-Office of Criminal Investigations, the United States Department of Health and Human Services Office of Inspector General, the Department of Homeland Security, the Federal Bureau of Investigation and the United States Postal Inspection Service conducted the investigation that led to the prosecution of Simon.
Former Erie Man Sentenced to 12 Years in Prison for Possessing, Distributing Child PornographyRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania has been sentenced in federal court to 145 months in jail, 15 years supervised release and ordered to make $5,000 in restitution on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Michael Vay Daratany, 36.
According to information presented to the court, Daratany distributed and possessed computer images and movies depicting minors engaging in sexually explicit conduct. Many of the images and movies found on Daratany's computer equipment depicted the sexual abuse of infants and toddlers.
Prior to imposing sentence, Judge Cercone stated that this was a very serious offense deserving of a significant sentence.
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, the Pennsylvania State Police and the Charlottesville, Virginia Police Department for the investigation leading to the successful prosecution of Daratany.
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.
Federal Inmate with Cell Phone Will Spend an Extra Month in PrisonRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania pleaded guilty and was sentenced in federal court to 1 month incarceration 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 Franklin Rodriguez, 43. The sentence was imposed to run consecutively to the sentence Rodriguez is currently serving.
According to information presented to the court on December 24 ,2012, Rodriguez was in possession of contraband, namely a cell phone.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Officers of the McKean Federal Correctional Institution for the investigation leading to the successful prosecution of Rodriguez.
Federal Inmate Sentenced to 18 More Months in Prison for Possessing WeaponRead 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 18 months incarceration 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 Antonio Lattin, 28. The sentence was imposed to run consecutively to the sentence Lattin is currently serving.
According to information presented to the court on December 1, 2012, Lattin was in possession of a weapon.
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 Lattin.
Wilkinsburg Convenience Store Owners Conspired to Defraud Food Stamp ProgramRead the Press Release
PITTSBURGH, Pa. - The owners of a Wilkinsburg convenience store have pleaded guilty to charges of conspiracy to commit wire fraud and food stamp fraud, United States Attorney David J. Hickton announced today.
Nicole Gordon, 34, and Stanley Saxton, 44, siblings and co-owners and operators of Nicky's Corner, located on Montier Street in Wilkinsburg, Pa., each pled guilty to one count of conspiracy before Senior District Judge Maurice B. Cohill, Jr. Gordon and Saxton also executed civil settlement agreements for violations of the False Claims Act, and agreed to pay to the United States the sum of $119,871.
According to information presented to the court, Nicky's Corner 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 using food stamp benefit cards at the store. As a condition of participation in the food stamp program, the defendants certified that they would comply with all rules and regulations of the program and were aware that program rules strictly prohibited the exchange of food stamp benefits for cash and/or for ineligible items, such as cigarettes. Despite this knowledge, on multiple occasions, the defendants exchanged food stamp benefits with customers in exchange for cash on a discounted basis, usually giving the customers only 50 cents on the dollar for their food stamp benefits. Gordon and Saxton also permitted customers to use food stamp benefits to pay for ineligible items, such as cigarettes.Judge Cohill scheduled sentencing for Dec. 4, 2013 at 10 a.m. for Saxton and 11 a.m. for Gordon. 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 histories, if any, of the defendants.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the Criminal Division of the U.S. Attorney's Office and Assistant United States Attorney Colin Callahan is litigating the case on behalf of the Affirmative Civil Enforcement Section of the United States Attorney's Office.
The Office of the Inspector General for the United States Department of Agriculture and the Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation leading to the guilty pleas in this case.
Mortgage Broker Sentenced to 7½ Years in Prison for Fraud Scheme, Money LaunderingRead the Press Release
PITTSBURGH, Pa - A Beaver County resident has been sentenced in federal court to 78 months of imprisonment, to be followed by five years of supervised release, on his conviction of conspiracy and money laundering, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Jeffrey Garbinski, 45. Judge Bissoon also ordered Garbinski to pay approximately $3 million in restitution, including $350,000 he defrauded from his own parents.
According to information presented to the court, Garbinski owned and operated the Closing Company of PA ("Closing Company"), which closed residential real estate transactions. Sabrina Spetz was an attorney who closed many of the transactions at issue. Garbinski also operated a mortgage broker business called Main Street Mortgage Services, which did business as Asset Mortgage and Financial Services, Inc., and he was a title insurance agent.
Closing companies have trust accounts. What is supposed to happen is that the money from the lenders funding the loans goes into the trust account. At or shortly after the closing, those funds are disbursed consistent with the lender's instructions and the settlement statements. Most significantly with regard to this case, is that liabilities associated with the collateral are supposed to be paid immediately. Thus, the liens related to the property are paid and the lender stands in first lien position.
Rather than immediately paying the liabilities, Garbinski, with Spetz's knowledge and assistance, siphoned money from the company for years to support his lifestyle and for other business ventures. He would then use the money from the next transactions to pay the liabilities from the previous transactions. He paid the monthly mortgage payments on the outstanding mortgages that should have already been paid to avoid discovery of his fraud. Eventually, the liabilities grew so large that Garbinski was no longer able to pay the liabilities and he filed for bankruptcy.
Although Garbinski committed this scheme regarding customers of the Closing Company, he also committed this scheme with his own personal residence. Dollar Bank funded a $600,000 loan to Garbinski arranged through his mortgage broker business and closed by the Closing Company, and funded by Dollar Bank. Basically, the loan through Dollar Bank was a typical refinance transaction in which all of the liabilities associated with the collateral, which was Garbinski's personal residence, were supposed to be paid off. Garbinski submitted a loan application that failed to report two significant mortgages on the property, and he also arranged to submit fraudulent title search records that did not reveal the two mortgages. Long after the loan closed, Dollar Bank discovered that they were in third lien position rather than first lien position.
Ultimately, the title insurance companies paid substantial claims because of this fraud. The Closing Company was a representative of Stewart Title Guaranty Company and Fidelity National Title Insurance Company ("Fidelity"). Fidelity conducted an audit of the Closing Company of PA pursuant to the title insurance contract between Fidelity and the Closing Company. As part of that audit, Fidelity requested and obtained from Spetz bank statements that did not show the fraudulent withdrawals because the statements had been altered by Spetz at Garbinski's direction.
In terms of the money laundering, an owner of a home sought to refinance a loan through Northwest Savings Bank. Because of concerns that Northwest had with Garbinski, Northwest refused to let the Closing Company close the transaction, and demanded that Fidelity close the transaction. Fidelity, however, was unaware of the transaction and did not close the loan. In order to make it appear that Fidelity was involved in closing the loan, the settlement statement was fabricated and provided to Northwest. The settlement statement falsely represented that Fidelity closed the transaction. In addition, Garbinski created a letter with wiring information for what was represented to be the trust account for Fidelity. In fact, the account number is for the Closing Company. The loan closed on Feb. 24, 2010, and the loan was funded through a wire transfer from Northwest Savings Bank to the Citizens Bank account of the Closing Company. That money was supposed to have been used to pay off a liability associated with the collateral.
On Feb. 25, 2010, Garbinski withdrew $38,316 in cash from that account. Bank surveillance pictures showed Garbinski making the withdraw. On that same day, Garbinski deposited $37,500 of that cash into the Clearview Federal Credit Union account of JAG Management LP, which was basically a shell company that Garbinski owned.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
The Mortgage Fraud Task Force conducted the investigation that led to the prosecution of Garbinski. 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.
Judge Sentences Pittsburgh Man to Prison for Possessing Counterfeit CashRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh man has been sentenced in federal court to one month imprisonment with three years supervised release on his conviction of violating federal counterfeit laws, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Dustin Mathis, 30.
According to information presented to the court, Mathis did possess and conceal falsely made, forged, counterfeited and altered obligations of the United States, that is, approximately $1,840 in counterfeited Federal Reserves Notes, with the intent to defraud.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Secret Service for the investigation leading to the successful prosecution of Mathis.
Two Donora Women Plead Guilty in Stolen Credit Card ConspiracyRead the Press Release
PITTSBURGH, Pa. - Two Donora residents pleaded guilty in federal court to a charge of conspiracy, United States Attorney David J. Hickton announced today.
Kayla Doree Willis, 22, and Takeisha Lynn Martin, 22, pleaded guilty to one count before Senior United States District Judge Gustave Diamond.
In connection with the guilty plea, the defendants admitted accepting UPS packages containing stolen credit cards, which were later used to purchase merchandise.
Judge Diamond scheduled Willis' sentencing for Dec. 10, 2013 at 10 a.m., and Martin's sentencing for Dec. 10, 2013 at 11 a.m. The law provides for a maximum total sentence of not more than 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of Willis and Martin. 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. A defendant is presumed innocent unless and until proven guilty.
Energy Company Employee Charged with Stealing Mineral Rights, Profiting from Fraudulent Lease or Sale to OthersRead the Press Release
PITTSBURGH, Pa. - A Jeannette man has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud and wire fraud, United States Attorney David J. Hickton announced today.
The six-count indictment named Derek A. Candelore, aka Dan Kun, aka Kevin Kelly, 33, as the sole defendant.
According to indictment, Candelore was employed by Penn-Star Energy, LLC of Butler County ( Penn-Star), as a landman. Candelore worked at Penn-Star with another landman identified in the indictment as WJR. 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 100 or more acres, were stolen by Candelore using forged signatures, fake companies and forged notary signatures and stamps. These frauds began in February 2010 and ended in June 2012. During the scheme Candelore set up several post office boxes and bank accounts in the names of companies he created. He filed deeds and other documents at the Washington County Recorder of Deeds Offices to make it appear that the true mineral rights owners had transferred their mineral rights to Candelore's fake companies. These deeds had forged signatures of several true owners and forged notary signatures and stamps. Candelore's companies thereafter leased and/or sold the mineral rights to others. The indictment seeks the forfeiture of $1,177,735.27 of proceeds from the scheme. Candelore received the proceeds from each of the four blocks of mineral rights, while WJR received proceeds from two of the four. The victims include Range Resources Corporation, several mineral rights owners, Pecos Bend Royalties, LP, of Midland Texas, and Buffalo Royalties business entities in Texas.
The law provides for a maximum total sentence of 120 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The U.S. Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
North Huntingdon Man Sentenced for Mail Fraud, Witness Tampering & False StatementsRead the Press Release
PITTSBURGH, Pa. - A resident of North Huntingdon, Pa. has been sentenced in federal court to three years of probation; eight months of home detention with electronic monitoring; restitution of $14,639.86, and he has been ordered to pay a fine of $10,000 on his conviction of mail fraud, witness tampering and false statements to the government, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerr y imposed the sentence on Danny A. Patel, 46.
According to information presented to the court, Patel managed a BP gas station in McKeesport, Pa. Patel submitted false insurance claims to Harleysville Insurance Company arising from a December 25, 2011 accident at the BP. Patel also admitted that he lied to FBI agents and obstructed justice by asking witnesses to lie to FBI agents.
Assistant United States Attorney Robert S. Cessar 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 Patel.
Westmoreland County Man Sentenced to 5 Years in Prison for Meth Distribution SchemeRead the Press Release
PITTSBURGH, Pa. - A resident of Harrison City, Pa., has been sentenced in federal court to five years imprisonment and four years supervised release, and ordered to pay a $17,500 fine, on his conviction of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Kevin Nicol, 58.
According to information presented to the court, Nicol was involved in a conspiracy to distribute more than 50 grams of methamphetamine. The parties stipulated that 279.2 grams of "ice," also known as pure methamphetamine, were attributable to Nicol for purposes of the Sentencing Guidelines.
Prior to imposing sentence, Judge Conti stated that this was a very serious offense, and noted that the methamphetamine was over 94% 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 Nicol.
Maryland Man Sentenced to Prison for Selling Stolen Motorcycles and TractorsRead the Press Release
PITTSBURGH, Pa. - A Maryland resident has been sentenced in federal court to 27 months imprisonment, to be followed by three years of supervised release, on his conviction of conspiracy to transport stolen motor vehicles across state lines, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Rodney D. Deminds, Jr., 24, of Belcamp, Md.
According to information presented to the court, on at least 14 occasions between July of 2011 and April of 2012, Deminds, along with Harvey Leemore, Collin D. Powell and Trea C. Powell, and at least one other individual, traveled from Baltimore to various retail dealerships in Pennsylvania and Virginia for the purpose of stealing motorcycles and tractors from those retail dealerships. After stealing these items, the thieves took the items back to Baltimore and sold them. The items were stolen from retail dealerships located in Gibsonia, Ebensburg, Gaines and Altoona, Pa., and in Purcellville, Va. The value of the stolen items exceeded $200,000.
Assistant United States Attorney Shaun E. Sweeney prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police, Western Pennsylvania Auto Theft Task Force, the Federal Bureau of Investigation, and detectives from Harford County, Maryland, for the investigation leading to the successful prosecution of Deminds.
Judge Sentences Bucketlist Bandit to 135 Months in PrisonRead the Press Release
ERIE, Pa. - A former resident of Pensacola, Florida, has been sentenced in federal court to 135 months in prison and ordered to make restitution to the banks involved on his conviction of bank robbery, United States Attorney David J. Hickton announced today.
Chief United States District Judge Sean M. McLaughlin imposed the sentence on Michael Eugene Brewster, 54.
According to information presented to the court, between June 21, 2012 and September 10, 2012, Brewster robbed eleven banks across the nation. In the course of the bank robbery spree Brewster used a similar method of operation and entered each bank, without being disguised, wore similar clothes, carried a dark leather notebook, presented demand notes containing similar threatening language to each of the victim tellers, and left the scene driving a 2009 black SUV, which Brewster had stolen in Pensacola, Florida. In his last bank robbery in Erie, Pennsylvania, on September 10, 2012, Brewster entered the Huntington National Bank, located at 2185 West 12th Street and presented a demand note, claiming that he had a gun and that the teller had one minute to comply. Brewster then claimed to the teller that he had cancer and did not care what happened. Brewster obtained bank proceeds and fled the area in a black SUV. Bank surveillance images and images from area surveillance cameras clearly depicted Brewster and the vehicle he used. Comparing the Erie Huntington Bank surveillance photographs with those from the ten other bank robberies that had occurred throughout the United States confirmed that each robbery had been committed by the same person. On September 12, 2012, the FBI received a tip that the bank robber depicted in the surveillance photographs was Brewster. A review of Brewster's Florida driver's license confirmed Brewster's identity as the bank robber. In addition, evidence disclosed that an arrest warrant had been issued for Brewster alleging that he had stolen a black Chevy Captiva SUV in Pensacola, Florida on June 11, 2012. Once Brewster's identity had been established in the Erie, Pennsylvania robbery, the FBI and law enforcement partners in the jurisdictions of the other ten bank robberies confirmed his identity in those cases as well.
Brewster entered the Chase Bank at 5250 Wadsworth Boulevard in Arvada, Colorado on June 21, 2012, the Chase Bank at 1484 South Milton Road in Flagstaff, Arizona on June 27, 2012; and the Ireland Bank at 486 Yellowstone Avenue in Pocatello, Idaho on July 6, 2012, and obtained federally insured funds after presented a threatening note demanding money. In Roy, Utah on July 6, 2012, Brewster entered the Wells Fargo Bank located at 5603 South 1900 West, and obtained money after presenting a threatening demand note claiming that he had only four months to live. In Winston-Salem, North Carolina on July 20, 1012, Brewster entered a Bank of America at 1209
Silas Creek Parkway and presented a threatening demand note indicating that he had nothing to lose and threatening to come back after the teller if any silent alarm was activated. Brewster obtained no money from the Wells Fargo Bank. Then, at the Regions Bank at 360 West State Road 436 in Altamonte Springs, Florida on July 27, 2012, the BB&T bank at 2120 Gunbarrel Road in Chattanooga, Tennessee on August 3, 2012; the PNC bank at 2217 West Market Street in Bloomington, Illinois on August 17, 2012; the Lamdmark bank at 202 North Stadium Boulevard in Colombia, Missouri on August 29, 2012; and the Lindell bank at 4521 Highway K in O'Fallon, Missouri on August 30, 2012, Brewster obtained money after presenting threatening demand notes, including a claim that he was armed with a gun.On September 13, 2012, a police officer with the Roland Police Department in Roland, Oklahoma conducted a traffic stop of a black, 2009, Chevy Captiva vehicle and identified Brewster as the driver and sole occupant. A fake Utah license plate had been affixed to the vehicle. A computer check of Brewster's name revealed Brewster's outstanding arrest warrant in Pensacola, Florida for allegedly stealing the Chevy Captiva vehicle. Brewster was then taken into custody and was found to be in possession of money from the Erie, Pennsylvania Huntington bank robbery. Among other items located in the Captiva vehicle was a handgun, money from the Erie, Pennsylvania Huntington Bank robbery, the clothing worn by Brewster in the bank robberies as depicted in the surveillance photographs, and the leather notebook carried by Brewster into the banks he robbed. Brewster was then arrested on the Erie, Pennsylvania arrest warrant and he was returned to the Western District of Pennsylvania to face federal prosecution.
Prior to imposing sentence, Judge McLaughlin commented on the fact that Brewster's claim of a terminal disease was untrue and stated that, "The impetus for the crimes was simply greed, not grief."
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation in each of the jurisdictions, the Erie Bureau of Police, the Arvada Police Department, the Flagstaff Police Department, the Pocatello Police Department, the Roy City Police Department, the Winston-Salem Police Department, the Altamonte Springs Police Department, the Chattanooga Police Department, the Bloomington Police Department, the Columbia Police Department, the O'Fallon Police Department and the Roland Police Department for the investigations leading to the successful prosecution of Brewster.
Four Charged in Heroin Trafficking ConspiracyRead the Press Release
JOHNSTOWN, Pa. - On Aug. 13, 2013, four 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:
Fred Claycomb, Jr., 50;
Matthew John Claycomb, 21;
Ronald Paul Copeland, 44; and
Nichelle Seeley, 27.According to the indictment presented to the court, from Jan.1, 2013, through Jan. 25, 2013, Fred Claycomb, Jr., Matthew John Claycomb, Copeland and Seeley conspired to distribute and possess with intent to distribute less than 100 grams of heroin.
In addition, on Jan. 17, Jan. 18 and Jan. 25, 2013, Fred Claycomb, Jr., Matthew John Claycomb, Copeland and Seeley distributed less than 100 grams of heroin on each of these occasions, and on Jan. 25, 2013, Seeley possessed with the intent to distribute less than 100 grams of heroin.
On Jan.25 2013, Matthew John Claycomb was found in possession of a Harrington and Richardson, Model 158, 410 gauge shotgun. On Mar. 1, 2011, Claycomb was convicted in Cambria County, Pa., of firearms not to be carried without a license, 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 imprisonment exceeding one year from possessing firearms.
The law provides for a maximum total sentence for Fred Claycomb, Jr. of 60 years in prison, a fine of $3,000,000, or both; for Matthew John Claycomb, 70 years in prison, a fine of $3,250,000, or both; for Copeland, 40 years in prison, a fine of $2,000,000, or both; and for Seeley, 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 defendants.
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 leading to the indictment in this case.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
According to Mr. Hickton, the 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.
Pittsburgh Man Charged with Possession Sexual Images of MinorsRead the Press Release
PITTSBURGH, Pa. - An Allegheny County man has been indicted by a federal grand jury in Pittsburgh on a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The one-count indictment named Kelly Eugene Jones, 39, as the sole defendant.
According to the indictment, on Feb. 15, 2013, Jones possessed visual depictions, namely, images in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Allegheny County District Attorney Investigations Unit 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.
Former CFO of Communications and Power Co. Facing Fraud and Tax ChargesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of mail fraud and tax evasion, United States Attorney David J. Hickton announced today.
The two-count indictment named Brian M. Quimby, 46, as the sole defendant.
According to the indictment presented to the court, while Quimby was employed as CFO of Thayer Power and Communications, he defrauded Key Bank. In addition, Quimby failed to file his income tax return for calendar year 2007.
The law provides for a maximum total sentence of 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 Christian A. Trabold is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation, and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Detroit Man Used Counterfeit Credit Cards to Buy Retail Store Gift CardsRead the Press Release
PITTSBURGH, Pa. - A Detroit man pleaded guilty in federal court to conspiracy to access device fraud, United States Attorney David J. Hickton announced today.
Jamon Paul Judson, 32, of Detroit, Mich., pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that Judson along with other defendants, left Michigan in early 2009 to use counterfeited, re-encoded credit cards to make purchases of retail store gift cards at numerous Giant Eagle stores in Ohio and Pennsylvania in 2009. The group was apprehended in Cranberry Township in August 2009, and found in possession of counterfeited credit cards and a device used to make counterfeit cards, as well. Losses total near $120,000.
Judge Ambrose scheduled sentencing for Dec, 4, 2013, at 11 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 defendant was released on bond conditions.
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 in this case. The WPFCTF was established in February 1995 as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partners in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the 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.
McKean County Man Admits Receiving Child PornographyRead the Press Release
ERIE, Pa. - A resident of Smethport, 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.
Peter Nollen Hergenrother, 63, pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill, Jr.
In connection with the guilty plea, the court was advised that Hergenrother received computer images depicting minors engaging in sexually explicit conduct.
Judge Cohill scheduled sentencing for November 12, 2013 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 criminal history, if any, of the defendant.
Pending sentencing, the court continued Hergenrother on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation that led to the prosecution of Hergenrother.
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.
Felon Sentenced to Prison for Illegally Possessing GunRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 21 months in jail on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today. The sentence was ordered to be served consecutively to any sentence imposed after his revocation of probation in the Court of Common Pleas of Erie County.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Damon Duane Amison, 21.
According to information presented to the court, Amison possessed a loaded Ruger P89 9mm handgun while being a convicted felon. The firearm was located by the Erie Police when they executed a search warrant of a residence on June 13, 2012. The evidence disclosed that the weapon had been stolen from a residence in Harborcreek Township, Pennsylvania.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Erie Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Amison.
Erie Man Sentenced to Thiry Years in Jail for Child Exploitation OffensesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 30 years in prison and lifetime supervised release on his conviction of violating federal firearms laws and laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Douglas E. Melter, 32.
According to information presented to the court, Melter attempted to induce a woman to procure an eleven year old female for Melter to sexually abuse and photograph naked. Melter offered to pay $1 ,200 for one hour alone with the girl at his home. Melter also possessed computer images depicting minors engaging in sexually explicit conduct and possessed a firearm after having been convicted of multiple felonies.
Prior to imposing sentence, Judge Cohill noted Melter's extensive criminal history and the very troubling aspects of Melter's conduct in the case.
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, the Pennsylvania State Police and the Erie Police Department for the investigation leading to the successful prosecution of Melter.
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.
Operator of Sports Merchandise Company Sentenced to 3 Years in Prison for Running Fraud SchemeRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County, Pa., has been sentenced in federal court to serve 37 months imprisonment, to be followed by three years supervised release, and ordered to pay restitution in the amount of $601,470.31, on his conviction of mail fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Andrew A. Demasi, 63, of Natrona Heights, Pa.
According to information presented to the court, Demasi and his partner, Ronald Halpern, operated a business known as A & R Services, Inc., from an apartment at Washington Place, Pittsburgh, Pa. On behalf of A & R Services, Demasi and Halpern negotiated the purchase, sale, and delivery of sports-related merchandise and novelty items. During the period April 2007 through September 2007, Demasi and Halpern devised and executed a scheme to defraud manufacturers, wholesale distributors, and interstate shipping companies of money and property, valued at more than $600,000. The fraud scheme included obtaining merchandise for resale by applying for extensions of credit from the various manufacturers, wholesalers, and shipping companies based on false, financial information provided by Demasi.
On Aug. 3, 2007, Demasi and Halpern, in executing the scheme, obtained merchandise, delivered by interstate carrier FedEx, from Pro Specialities Group, Inc., in San Diego, California, based upon credit extended upon materially false financial information about the financial health and history of A & R Services, Inc. Demasi and Halpern had no intention of paying for the merchandise or its shipment after receipt.
Ronald Halpern entered a guilty plea before Judge Arthur Schwab and was sentenced in May 2013 to serve a 24-month term of imprisonment.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Office of the United States Trustee for the investigation leading to the successful prosecution of Demasi.
Grand Jury Returns Superseding Indictments in Homestead-Area Drug & Gun CasesRead the Press Release
PITTSBURGH, Pa. - On Aug. 6, 2013, a federal grand jury issued superseding indictments in six related cases involving drug trafficking and violence in Homestead, Pa., United States Attorney David J. Hickton announced today. The superseding indictments added new firearms and drug trafficking counts and one additional defendant, to drug and gun charges filed against 34 people on March 14, 2013. The original indictments followed a year-long federal, state, and local law enforcement investigation.
THE SUPERSEDING INDICTMENTS
The first superseding indictment, containing seven counts, named:
Brandon Thompson, 30, of Homestead, Pa.;
Antonio Hardin, 32, of Monroeville, Pa.;
James Walker, 44, of Homestead, Pa.;
Joseph Thompson, II, 25, of Homestead, Pa.;
Richard Wood, 34, of Homestead, Pa.;
Gregory Harris, Jr., 24, of Homestead, Pa.; and
Luther Harper, 27, of Homestead, Pa.According to the indictment, from in and around April 2012, to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Brandon Thompson, Hardin, Walker, Joseph Thompson, II, Wood, Harris, and Harper, conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment also charges that on or about Aug. 12, 2012, Brandon Thompson used, carried, possessed in furtherance of, brandished, and discharged firearms during and in relation to that heroin trafficking conspiracy. The indictment further charges Antonio Hardin with, on or about Feb. 11, 2013, possessing with the intent to distribute a quantity of heroin, possessing a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. Last, on or about Jan. 26, 2013, the indictment charges Richard Wood with possession with intent to distribute a quantity of heroin, and charges Walker and Hardin with distribution and possession with intent to distribute a quantity of heroin. There were no new charges added. However, Brandon Thompson and Antonio Hardin were both named in additional forfeiture allegations. Ed Cook was charged in the initial indictment for discharging a firearm during and in relation to a drug trafficking crime, and he has since pled guilty to that charge.
The second superseding indictment, containing two counts, named:
Troy Anderson, 24, of Braddock, Pa.;
Mark Felder, 25, of Duquesne, Pa.; and
Dorianne Harris, 20, of Wilkinsburg, Pa.According to the indictment, from in and around May 2012, and continuing thereafter to in and around March 2013, in the Western District of Pennsylvania and elsewhere, Anderson, Felder, and Harris, conspired with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. In terms of new charges, Anderson was charged with possession of a firearm in furtherance of a drug trafficking crime on or about March 14, 2013.
The third superseding indictment, containing three counts, named:
Sterling Marshall, 18, of Munhall, Pa.;
Tireal Wheeler, 19, of Homestead, Pa.; and
Jordan Murphy, 21, of Homestead, Pa.According to the indictment, from in and around May 2012, and continuing thereafter to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Marshall, Wheeler and Murphy conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. Additionally, the indictment charges that, during that same time period, those same defendants knowingly conspired to employ and hire persons under 18 years of age to distribute heroin. In terms of new charges, Marshall was charged with possession with the intent to distribute a quantity of heroin on or about March 14, 2013. Andre Corbett was charged in the initial indictment, and he has since pled guilty to both counts contained within that indictment.
The fourth superseding indictment, containing six counts, named:
Jay Germany, 22, of Pittsburgh, Pa.;
Brady Hall, 19, of Pittsburgh, Pa.;
Jaquan Washington, 23, of Homestead, Pa.;
Hector Guadalupe, Jr., 36, of Brooklyn, NY;
Santino Drew, 34, of New Brunswick, NJ;
Thomas Martinez, 34, of Edison, NJ; and
Louis Spinnenweber, Jr., 34, of Canonsburg, Pa.According to the indictment, from in and around May 2012, and continuing thereafter to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Germany, Hall, Washington, Guadalupe, Jr., Drew, and Martinez, conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment further charges that, during that same time period, Germany, Hall, and Washington knowingly conspired to employ and hire persons under 18 years of age to distribute heroin. Additionally, on or about Jan. 30, 2013 and Jan. 31, 2013, Drew and Martinez possessed with the intent to distribute 100 grams or more of heroin. Also, on or about Nov. 21, 2012, Spinnenweber, Jr., possessed with the intent to distribute a quantity of a heroin. Last, on or about Oct. 30, 2013, Germany and Hall possessed with the intent to distribute and did distribute a quantity of heroin, and, in a new charge, Washington engaged in that same conduct on or about March 11, 2013.
The fifth superseding indictment, containing 11 counts, named:
Bryce Harper, 26, of Homestead, Pa.;
Diamantia Serrano, 19, of McKeesport, Pa.;
Lacie Harper, 24, of Homestead, Pa.;
Ryan Harper, 36, of Munhall, Pa.;
Jamar Harper, 32, of Homestead, Pa.;
Ronnell Robinson, 19, of Duquesne, Pa.;
Seth Lindsey, 18, of Duquesne, Pa.; and
Diassandai Serrano, 18, of McKeesport, Pa.According to the indictment, from in and around July, 2012, and continuing thereafter to in and around February, 2013, in the Western District of Pennsylvania and elsewhere, Bryce Harper, Diamantia Serrano, Lacie Harper, Ryan Harper, Jamar Harper, Ronnell Robinson, and Seth Lindsey conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment further charges that, during that same time period, those same defendants knowingly conspired to employ and hire persons under 18 years of age to distribute heroin. Also, the indictment charges that on or about Sept. 19, 2012, Bryce, Ryan, and Jamar Harper, together with Diamantia Serrano, possessed with the intent to distribute a quantity of heroin.
The indictment added the following eight new counts. On or about Feb. 27, 2013, Diamantia Serrano possessed with the intent to distribute a quantity of heroin, and on that same day, his brother, Diassandai Serrano, a new defendant, possessed a firearm in furtherance of a drug trafficking crime. On March 13, 2013, Ryan Harper distributed a quantity of heroin, and on Feb.
13 and 19, 2013, Ronnell Robinson distributed a quantity of heroin. On Sept. 17, 2012, Ronnell Robinson possessed a firearm in furtherance of a drug trafficking crime, and Bryce Harper was charged with that same crime on March 14, 2013. Also on March 14, 2013, Bryce Harper was charged with being a felon in possession of a firearm.The sixth superseding indictment, containing five counts, named:
Thomas Hopes, 21, of Pittsburgh, Pa.;
Keith Harris, 22, of Homestead, Pa.;
Anthony Smith, 21, of Homestead, Pa.;
Hakeem Kirby, 19, of Homestead, Pa.;
William McDonald, 68, of Homestead, Pa.;
Ronnell Robinson, 19, of Duquesne, Pa.;
Gregory Harris, Jr., 24, of Homestead, Pa.;
Sterling Marshall, 18, of Munhall, Pa.; and
Diamantia Serrano, 19, of McKeesport, Pa.According to the indictment, from in and around May, 2012, and continuing thereafter to in and around February, 2013, in the Western District of Pennsylvania and elsewhere, Hopes, Harris, Smith, Kirby, and McDonald conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment further charges that, during that same time period, those same defendants knowingly conspired to employ and hire persons under 18 years of age to distribute heroin. The indictment also charges that on or about Dec. 18, 2012, Hopes and Kirby possessed with the intent to distribute and did distribute a quantity of heroin. Also, on March 14, 2013, Kirby possessed with the intent to distribute a quantity of heroin. Last, the indictment charges that on or about Jan. 3, 2013, Robinson, Keith and Gregory Harris, Marshall, Serrano and Hopes used, carried, possessed in furtherance of, brandished and discharged firearms during and in relation to a drug trafficking crime and a crime of violence.
PENALTIES
On the conspiracy to distribute one kilogram or more of heroin count, the law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both, for a first-time drug trafficking conviction. For those with one prior felony drug trafficking conviction, the law provides for a maximum total sentence of not less than 20 years and up to life in prison, a fine of $20,000,000 or both, and for those with two prior felony drug trafficking convictions, the law provides for a mandatory minimum sentence of life in prison.
On the firearms' counts charging possession, use, brandishing or discharge of a firearm in furtherance of a crime of violence or a drug trafficking crime, the law provides for a mandatory minimum sentence of five years if the gun is possessed in furtherance of the crime, seven years if the gun is brandished in furtherance of the crime, and 10 years if the gun is discharged in furtherance of the crime. These sentences, by law, must run consecutively to any sentence imposed for the narcotics counts. In addition, the law imposes a fine of up to $250,000. For second or consecutive counts of this nature, the law provides for a mandatory minimum consecutive sentence of 25 years.
For the firearms count charging possession of a firearm by a felon, the law provides for a maximum total sentence of up to ten years in prison, a fine of $250,000, or both. However, if the Court determines that the defendant has three previous convictions for either crimes of violence or serious drug offenses, the law provides for a maximum 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 upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting these cases 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 of the abovementioned individuals.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Hospital Facilities Director Sentenced to 14 Months in Prison for Improper Use of Purchasing CardRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 14 months incarceration and 3 years supervised release on his conviction of wire fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Timothy L. Mangis, 49, of Imperial, PA.
According to the information presented to the court, Mangis, the former Facilities Director at Magee-Womens Hospital of UPMC, unlawfully used a UPMC P-card to obtain merchandise, including auto repair services for his cars, and electronic equipment and building materials at retailers such as Pep Boys, Home Depot and Best Buy for personal use. Unauthorized use of the P- card exceeded $70,000 as determined by the Government.
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 Timothy L. Mangis.
Judge Sentences Johnstown Felon to 7½ Years in Prison for Possessing WeaponRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., has been sentenced in federal court to 92 months incarceration and three years of supervised release on his conviction of unlawful possession of a firearm by a convicted felon, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Rogelin M. Lopez, 26, of Johnstown, Pa.
According to information presented to the court, on Dec. 24, 2009, Lopez, who had been convicted in 2006 in Cambria County, Pa., of delivery of a controlled substance, unlawfully possessed a Smith & Wesson pistol. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms. Delivery of a controlled substance is such a crime.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Johnstown Police Department and the Laurel Highlands Resident Agency of the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Lopez.
According to Mr. Hickton, Lopez was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Businessman Pleads Guilty in Fraud SchemeRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh-area businessman has pleaded guilty in federal court to charges of conspiracy, bribery of agent of an organization receiving federal funds and mail fraud, United States Attorney David J. Hickton announced today.
Arthur J. Bedway, Jr., 63, pleaded guilty to three counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Bedway owned Victory Security. In order to obtain a contract with the City of Pittsburgh to install radios and mobile data terminals (MDTs) in City Police cars, Bedway created Alpha Outfitters, which he falsely represented to the City as a Women's Business Enterprise (WBE). He conspired with a city employee, Christine Ann Kebr and others, to obtain the MDT contract for Alpha Outfitters. Bedway paid Kebr for her assistance in obtaining the MDT contract.
Judge Bissoon scheduled sentencing for Nov. 20, 2013 at 10:00 a.m. The law provides for a total sentence of 35 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Pending sentencing, the court continued bond.
Assistant United States Attorneys Robert S. Cessar and Lee J. Karl are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Internal Revenue Service - Criminal Investigation conducted the investigation that led to the prosecution of Bedway.
Pittsburgh Man Admits Role in Fraud SchemeRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh man pleaded guilty in federal court to a charge of conspiracy to produce and utter forged securities, United States Attorney David J. Hickton announced today.
Raymond Davis, a/k/a Mark White, 41, pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, Davis conspired with other persons to use other identities to produce counterfeit checks, and to open charge store accounts.
Judge Ambrose scheduled the sentencing for Dec. 3, 2013, at 11 a.m. The law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
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 in this case. The WPFCTF was established in February 1995 as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud. Partners in this effort include 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.
Point Marion Man Charged with Enticing A Minor to Engage in Sexual ActivityRead the Press Release
FBI Seeking Information about Defendant
PITTSBURGH, Pa. - A Fayette County man has been indicted by a federal grand jury in Pittsburgh on a charge of attempting to induce a minor to engage in sexual activity, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on July 30, named Timothy E. Fowler, 46, of Point Marion, Pa., as the sole defendant.
According to the indictment presented to the court, Fowler attempted to knowingly persuade, induce, entice, or coerce a person under the age of 18 years to engage in sexual activity.
The law provides for a mandatory minimum sentence of 10 years in prison. 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 Fayette County District Attorney's Office and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Anyone with information regarding Fowler is encouraged to contact the Federal Bureau of Investigation at 412.432.4000.
McCandless Man Indicted on Child Exploitation ChargesRead the Press Release
PITTSBURGH, Pa. - An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of distribution, receipt, and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The three-count indictment, returned on July 30, named Mark Janosko, 47, of Pittsburgh, Pa., as the sole defendant.
According to the indictment, on or about July 3, 2013, Janosko distributed images containing material depicting the sexual exploitation of minors. The indictment further alleges that on or about July 3, 2013, Janosko received images containing material depicting the sexual exploitation of minors. Finally, the indictment alleges that on or about July 19, 2013, Janosko possessed visual depictions, namely, images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 50 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 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 Offices and the McCandless 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.
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.
Pittsburgh Man Sentenced to 2 Years in Prison for Hoax Bomb ThreatsRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh man has been sentenced in federal court to 24 months in prison followed by three years supervised release on his conviction of violating federal bomb threat hoax laws, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Termaine Washington, 23.
According to information presented to the court, Washington conveyed several false bomb threats by telephone to the Allegheny County 911 Center, by stating that a bomb would go off at the Allegheny County Jail, PNC Park, and the T-station.
Assistant United States Attorney Shardul S. Desai 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 Washington.
Philadelphia Felon Charged with Illegally Possessing AmmunitionRead the Press Release
PITTSBURGH, Pa. - A Philadelphia man has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearm laws, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on July 30, named Elanda Bell, 55, as the sole defendant.
According to the indictment presented to the court, 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.
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 offenses and the prior criminal history of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clairton 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.
Deported Alien Charged with Illegally Re-entering U.S.Read the Press Release
PITTSBURGH, Pa. - An illegal alien found in Pittsburgh has been indicted by a federal grand jury in Pittsburgh on a charge of re-entry into the United States after deportation, United States Attorney David J. Hickton announced today.
The one-count indictment named Luis Alberto Alvarez-Arguello, a/k/a Rosalio Martinez-Alvarez, a/k/a Rosalio Alvarez-Martinez, a/k/a Mario Martinez-Contreras, 28, a native of Mexico, as the sole defendant.
According to indictment, Luis Alberto Alvarez-Arguello, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on Jan. 14, 2011 and June 13, 2011. Luis Alberto Alvarez-Arguello was found to be illegally present in Pittsburgh on July 19, 2013, by the Port Authority Police.
The law provides for a maximum total sentence of two 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. Defendant has been placed on detention.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The U.S. Immigration and Customs Enforcement and the Port Authority 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.
$956,590 Settlement with UPMC Resolves False Claims Act AllegationsRead the Press Release
PITTSBURGH, Pa. - The University of Pittsburgh Medical Center (“UPMC”) and a related joint venture, UPMC VNA Home Health (“UPMC Home Health”), have agreed to pay the United States $956,590 to settle False Claims Act allegations, United States Attorney David J. Hickton announced today.
The settlement results from a self disclosure by UPMC to the United States Attorney’s Office concerning referrals for home health services made from UPMC hospitals to UPMC Home Health. Based on information provided by UPMC, the United States alleged that it had civil claims against UPMC and UPMC Home Health resulting from Medicare billings for home health services that were not supported by a documented face-to-face encounter with a physician or authorized non-physician practitioner, as required by Medicare rules and regulations. The settlement resolves the matter without the filing of litigation.
This matter was investigated by the Office of Inspector General of the Department of Health and Human Services and the United States Attorney’s Office for the Western District of Pennsylvania. Assistant United States Attorney David Lew handled this matter on behalf of the United States.
USW Political Director Sentenced and Fined for Embezzling Union FundsRead the Press Release
PITTSBURGH, Pa. - A resident of Cranberry Township, Pa., has been sentenced in federal court to 24 months probation and a $2,000 fine on his conviction of union embezzlement, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Charles Rocha, 44.
According to information presented to the court, Rocha, the former Director of the Political Department of the United Steelworkers International Union (USW), engaged in misuse of a USW credit card and falsification of semi-monthly USW voucher entries during the period from January of 2008 until June of 2009.
Prior to imposing sentence, Judge Hornak stated that Mr. Rocha had a "steep, sharp and successful climb from the floor of a tire plant in Texas to the top" of the USW; that the defendant has recognized the harm that he brought on himself and his family; and that this prosecution against a senior member of one of the largest labor organizations in the world would help ensure that union dues are used only for proper purposes.
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Labor, Office of Labor Management Standards for the investigation leading to the successful prosecution of Rocha.
North Braddock Man Sentenced to Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH, Pa. - An Allegheny County man has been sentenced in federal court to 30 months imprisonment, to be followed by 15 years supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Charles R. Gladish, 41, of North Braddock, Pa.
According to information presented to the court at the guilty plea proceeding, Gladish possessed, on Oct. 26, 2011, in excess of 50 photographs and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not attained the age of 12 years.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Gladish.
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.
Butler County Woman Sentenced to Prison, Ordered to Pay Restitution for Embezzling from Health Care ProviderRead the Press Release
PITTSBURGH, Pa. - A Butler County resident has been sentenced to 15 months incarceration, and ordered to pay restitution in the amount of $66,443.50, in federal court on her conviction of embezzlement in connection with health care, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Jennine M. Prince, 42, of Valencia, Pa.
According to the information presented to the court, Prince committed this offense while she was on pretrial release in another embezzlement case against her. That case involved her embezzling approximately $500,000 from Ironworkers Local 3. She was hired by Office Based Anesthesia Solutions, Inc. (OBAS) in Cranberry, Pa., in May 2010 and worked there until Sept. 29, 2011, when her thefts were discovered. During her employment at OBAS, she was responsible for making bank deposits of cash of co-payments received from patients. She pocketed some of the cash every day that she worked.
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 for the investigation leading to the successful prosecution of Jennine M. Prince.
Brentwood Woman Sentenced to 5 Years Probation for Minor Role in Oxycodone RingRead the Press Release
PITTSBURGH, Pa. - A resident of Brentwood, Pa., has been sentenced in federal court to five years probation, which will include one year of home detention and 150 hours of community service, on her conviction of conspiracy to distribute controlled substances and to acquire controlled substances by fraud, forgery, deception and subterfuge, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Brittany Lee Preston, 23.
According to information presented to the court, Preston conspired to obtain oxycodone by fraud and forgery and to then distribute the oxycodone. She had a minor role in the offense compared to the role of her then boyfriend, Jeffrey Mackewich, who was the leader of the oxycodone ring.
Prior to imposing sentence, Judge Hornak stated that the support of her current employer and the fact that she has overcome her addiction to oxycodone were important facts in his decision.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration for the investigation leading to the successful prosecution of Preston.
Pittsburgh Man Admits Robbing Bloomfield Post OfficeRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh resident has pleaded guilty in federal court to a charge of robbery of a U.S. Post Office, United States Attorney David J. Hickton announced today.
Joseph R. Filbert, 50, 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 Dec. 14, 2011, Filbert robbed a U.S. Postal clerk at the Bloomfield Post Office of $569.00 in U.S. Currency, by flashing what appeared to be a gun and demanding money. Still photos from the Post Office surveillance camera, together with video from a surveillance camera at a nearby business, enabled Postal Inspectors to obtain positive identification of both the car Filbert was operating and of Filbert. Execution of a search warrant resulted in the recovery of the shoes Filbert is believed to have worn in the Post Office robbery.
Judge Hornak scheduled sentencing for Nov. 13, 2013. 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 criminal history, if any, of the defendant.
Assistant United States Attorney Margaret E. Picking is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the prosecution of Joseph R. Filbert.
Two Plead Guilty in Interstate Drug Ring Operating Jefferson CountyRead the Press Release
PITTSBURGH, Pa. - A resident of Hiawatha, Iowa and a resident of Kersey, Pa., pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Joshua Shaffer, 35, of Hiawatha, Iowa, and Joe Cesa, 26, of Kersey, Pa., pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that between February 2010 and September 2011, a conspiracy to distribute 10,000 oxycodone tablets and two pounds of 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 $5600 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. The retail, or "street" value for the drugs Shaffer brought to Pennsylvania exceeded $500,000. 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. Seven of the nine defendants charged in the indictment have now pleaded guilty, with the two remaining defendants scheduled to go to trial in November.
Judge Cercone scheduled sentencing for Dec. 13, 2013 at 10:30 a.m for Cesa, and at 11 a.m. for Shaffer. The law provides for a total sentence of up to 20 years in. prison and a fine not to exceed $1,000,000 for Cesa, and not less than 10 years and up to life in prison and a fine not to exceed $10,000,000 for Shaffer. 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 and Joe Cesa. The Jefferson County District Attorney's Office also assisted in a related investigation targeting other oxycodone distributors.
Police Officer Pleads Guilty to Laundering Drug MoneyRead the Press Release
PITTSBURGH, Pa. - A former police officer with the District of Columbia, pleaded guilty in federal court to a charge of violating federal money laundering laws, United States Attorney David J. Hickton announced today.
Jared K. Weinberg, 28, formerly from Maryland, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Weinberg participated in an 11-year-long conspiracy to launder drug money for California native Damon Collins.
Judge Cercone scheduled sentencing for Dec. 13, 2013 at 11:30 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Weinberg on bond.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of Jared Weinberg.
Business Owner Sentenced for Failing to Pay Employee Withholding Taxes to IRSRead the Press Release
PITTSBURGH, Pa. - A resident of Monroeville, Pa., has been sentenced in federal court to 18 months in prison and three years supervised release on his conviction of failure to pay taxes associated with his businesses, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Richard D. Edwards, 55, of Monroeville, Pa.
According to information presented to the court, Edwards failed to account for and pay over withholding taxes for various employees in his business Custom Patio Rooms .
Prior to imposing sentence, Judge Diamond stated that Edwards had deliberately continued to fail to pay withholding taxes for a period of more than two years despite having been warned by both an accountant and an attorney that he had to file proper returns and pay the taxes reported on those returns. Judge Diamond also noted that Edwards and/or his businesses had more than 300 contacts of various kinds with the IRS urging him to properly report and pay his taxes during the time period in question.
In addition to the time in prison and the period of supervised release Edwards was also ordered to pay all back taxes, penalties and interest that were due and owing.
U.S. Attorney Hickton commended the Internal Revenue Service Criminal Investigation Special Agents who for the investigation leading to the successful prosecution of Edwards.
Jioio’s Restaurants Owner Pleads Guilty to Income Tax EvasionRead the Press Release
PITTSBURGH, Pa. - A resident of Greensburg, Pa., pleaded guilty in federal court to a charge of federal income tax evasion, United States Attorney David J. Hickton announced today.
Jeanean C. Smith pleaded guilty to one count before Senior United States District Judge Gustave Diamond.
In connection with the guilty plea, the court was advised that, as owner of Jioio's Restaurants in Latrobe and North Huntingdon, defendant engaged in the practice of "skimming" cash from restaurant sales, resulting in a total tax loss of $438,661 from the filing of false personal, corporate and payroll tax returns during the years 2006-2009.
Judge Diamond scheduled sentencing for Nov. 12, 2013 at 10:00 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 the defendant on bond.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation conducted the investigation that led to the prosecution of Jeanean C. Smith.
1,500 Cases of Adulterated Dietary Supplements Destroyed in Seizure ActionRead the Press Release
PITTSBURGH, Pa. - United States Attorney David Hickton announced today the destruction of approximately 1,500 cases of adulterated dietary supplements in connection with a civil seizure action filed by the U.S. Attorney’s Office for the Western District of Pennsylvania.
On June 20, the U.S. Attorney’s Office filed a complaint in U.S. District Court requesting the seizure and condemnation of dietary supplements containing the additive 1,3- dimethylamylamine, commonly known as DMAA, located in the Leetsdale, Pa., warehouse of General Nutrition Centers, Inc. (GNC).
According to the complaint, supplements containing DMAA are adulterated and subject to seizure under the Federal Food, Drug, and Cosmetic Act because DMAA is an unsafe food additive. The Government’s complaint followed reports to the Food and Drug Administration (FDA) of at least 86 adverse events involving DMAA-containing supplements. The FDA considers the sale of such supplements in interstate commerce to be illegal and has advised consumers not to buy or use them.
After the seizure action was filed, GNC agreed to voluntarily destroy, at its expense, all DMAA-containing products in its Leetsdale warehouse. The destruction of those products, totaling approximately 1,500 cases, was subsequently witnessed by FDA personnel. On reaching this favorable resolution, the Government dismissed the seizure action as moot.
“We are pleased to have removed from distribution channels a significant quantity of adulterated dietary supplements that may present significant health risks,” said U.S. Attorney Hickton.
In a related matter, the FDA recently announced that USPlabs LLC, manufacturer of the products destroyed in the Leetsdale warehouse, recently destroyed all DMAA-containing products in its Dallas, Texas, facility. Additionally, USPlabs, along with at least 10 other manufacturers of DMAA-containing products, has agreed to stop producing supplements containing DMAA.
This matter was investigated by the United States Attorney’s Office for the Western District of Pennsylvania and the Consumer Protection Branch of the Department of Justice, in collaboration with the FDA. Assistant United States Attorney David Lew handled the matter on behalf of the Government.
Multiple Defendants Charged in Allegheny County-Beaver County Prescription Drug RingRead the Press Release
PITTSBURGH, Pa. - Twelve western Pennsylvania residents have been indicted by a federal grand jury alleging their participation in a prescription drug ring operating in Allegheny and Beaver Counties, United States Attorney David J. Hickton announced today. The indictments were returned on July 16, 2013, and unsealed this week.
“These indictments charge participants at all levels of a western Pennsylvania oxycodone and Opana distribution ring - from the leader, to the prescription thief, to the pharmacy burglars, to the runners who presented the fake prescriptions to be filled,” said U.S. Attorney Hickton. “Dismantling these operations continues to be a priority of this office as we endeavor to address the prescription drug abuse epidemic. As this case illustrates, abuse of prescription pills can result in grave harm and death.”
“Prescription drug abuse encompasses far more than the act of selling drugs; it often involves property crimes and crimes of violence. It is a serious threat to our communities and children. In 2011 for example, there were 2.3 million persons age 12 and older who used prescription drugs for the first time for non-medical reasons,” said Drug Enforcement Administration (DEA) Special Agent in Charge David G. Dongilli. “DEA is committed to confronting this threat to public health and will continue to target those who would profit from the illegal sales of prescription drugs without regard to the damage it causes to people and communities. DEA wishes to thank the U.S. Attorney’s Office for their support in this prosecution.”
A 12-count indictment charging violations of federal narcotics, firearms and burglary laws named:
- David Best, 27, of Coraopolis, Pa.;
- Matthew Moody, 24, of Baden, Pa.;
- Jade Gagianas, 28, of Freedom, Pa.;
- Katie Adams, 27, of Ambridge, Pa.;
- Andrew Brown, 23, of Eighty Four, Pa.;
- Ryan Raithel, 33, of Wexford, Pa.; and,
- Carlos Martinez, 26, of Ambridge, Pa.
Count 1 charges Best, Moody, Gagianas, Adams, Brown, and Raithel with conspiring together and with others, from around December 2011 until May 2013, to distribute and possess with intent to distribute the Schedule II controlled substances oxycodone and oxymorphone, in the form known as Opana.
Counts 2 through 4 charge Best with distributing oxycodone and oxymorphone, in the form known as Opana, on May 8, 2012, April 18, 2013, and April 30, 2013. Count 4 alleges that when Best distributed both oxycodone and Opana on May 8, 2012, a person known to the grand jury died as a result of his use of the drugs.
Count 5 charges that Best, on or about June 20, 2012, used, carried, and brandished a firearm during and in relation to a drug trafficking crime (the conspiracy).
Counts 6 through 11 reflect charges that on three occasions, Dec. 1, 2011, Sept. 26-27, 2012, and Feb. 15, 2013, Best burglarized the MedFast pharmacy in Baden, Pa., and from that pharmacy stole a number of Schedule II controlled substances, including: fentanyl, oxymorphone, including in the form known as Opana, Ritalin, oxycodone, including in the form known as Oxycontin, methylphenidate, Vyvanse, morphine sulfate, Roxicet, Focalin, methylphenidate, hydromorphone, methadone, and meperidine. Adams and Martinez are also charged with the Sept. 26-27, 2012, burglary of that pharmacy.
Finally, Count 12 charges Raithel with distributing a quantity of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance, on or about Aug. 10, 2012.
On the drug conspiracy charge, the possession with the intent to distribute and distribution charges, and pharmacy burglary charges, the law provides for a maximum total sentence as to each count of 20 years in prison, a fine of up to $1,000,000 ($250,000 for the pharmacy burglaries), or both. When death results from the use of illegally distributed Schedule I or II drugs, the penalty increases to a mandatory minimum of 20 years and a maximum of life imprisonment. Finally, for the firearms charge, there is a mandatory minimum of seven years, a maximum of life imprisonment, and a fine of up to $250,000. Any penalty imposed on the firearms charge must run consecutively to any other penalty. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
In a separate but related indictment, two residents of Western Pennsylvania have been indicted on a charge of witness intimidation. The one-count indictment named:
- Natalie Moskorisin, 23, of Ambridge, Pa.; and
- Wesley Weaver, 23, of Coraopolis, Pa.
According to the indictment, on or about June 6, 2013, in the Western District of Pennsylvania, Moskorisin and Weaver knowingly intimidated and attempted to intimidate witnesses in a federal proceeding, that being the federal investigation and prosecution of David Best.
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 defendants.
Three additional Pittsburgh-area residents were indicted separately on charges of violating federal narcotic laws.
A one-count indictment charges that on Sept. 19, 2012, Janna Gahagan, 29, of Pittsburgh, Pa., conspired with others to obtain oxycodone by fraud, in that she passed a fraudulent oxycodone prescription at a pharmacy, thereby obtaining oxycodone pursuant to that fraudulent prescription.
Another one-count indictment charges that from March 23, 2012, and continuing until July 17, 2012, Breanne McKee, 29, of Saxonburg, Pa., conspired with others to obtain oxycodone and oxymorphone, in the form known as Opana, by fraud, in that she passed fraudulent prescriptions at area pharmacies, thereby obtaining oxycodone and oxymorphone pursuant to those fraudulent prescriptions.
Finally, a one-count indictment charges that on or about April 26, 2013, Christopher Nugent, 34, of Pittsburgh, Pa., conspired with others to obtain oxycodone by fraud, in that he passed a fraudulent oxycodone prescription at a pharmacy, thereby obtaining oxycodone pursuant to that fraudulent prescription.
For Gahagan, McKee and Nugent, the law provides for a maximum total sentence of not more than four 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 Eric S. Rosen is prosecuting these cases on behalf of the government.
The Drug Enforcement Administration and the Economy Borough and Cranberry Township Police Departments conducted the investigation leading to the indictment in these cases.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Physician Pleads Guilty to Filing A False Income Tax ReturnRead the Press Release
PITTSBURGH - A resident of Allegheny County pleaded guilty in federal court to a charge of filing a false tax return, United States Attorney David J. Hickton announced today.
Neil M. Niren, M.D. pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Niren, who operated his medical practice as a sole proprietorship, knowingly filed a false income tax return for 2005. Niren also accepted responsibility for filing false tax returns for years 2006 through 2008. Niren maintained two sets of accounting books and knowingly concealed payments received directly from patients. The total amount of tax loss to the federal government as a result of Niren’s false returns is $356,998.00.
Judge Schwab scheduled sentencing for Nov. 8, 2013 at 10:00 a.m. The law provides for a maximum total sentence of not more than 3 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 Niren on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Internal Revenue Service, Criminal Investigation conducted the investigation that lead to the prosecution of Niren.
Federal Jury Finds Washington County Man Guilty of Illegal Financial TransactionsRead the Press Release
PITTSBURGH - After deliberating two hours, a federal jury of seven men and five women found Daniel Young guilty of four counts of conspiracy and structuring financial transactions, United States Attorney David J. Hickton announced today.
Daniel Young, 42, of Eighty-Four, Pa., was tried before United States District Judge David S. Cercone in Pittsburgh, Pa.
According to Assistant United States Attorney Brendan T. Conway, who prosecuted the case, the evidence presented at trial established that Young participated with two other individuals in a conspiracy in which they structured financial transactions with financial institutions and business to avoid the filing of Currency Transaction Reports. Currency Transactions Reports are required to be filed when financial institutions and business received in excess of $10,000 in cash.
The jury also concluded that one vehicle, two pieces of equipment, two real estate properties, and $234,859 was forfeitable to the United States.
Judge Cercone scheduled sentencing for Dec. 4, 2013, at 1 p.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the criminal history, if any, of the defendant.
The Internal Revenue Service-Criminal Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Young.
Ohio Man Sentenced to 21 Months in Prison for Failing to Register as A Sex OffenderRead the Press Release
PITTSBURGH - A resident of Steubenville, Ohio, has pled guilty to a charge of failure to register as a sex offender, and has been sentenced in federal court to 21 months imprisonment, to be followed by 20 years of supervised release, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Boyd Dale Stacey, 54.
According to information presented to the court, between on or about Nov. 4, 2011, and in or around January, 2012, Stacey failed to register as a Sex Offender, as required by the Sex Offender Registration and Notification Act.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Marshals Service for the investigation leading to the successful prosecution of Stacey.
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.
Youngwood Child Porn Possessor Sentenced to 6 Years, 8 Months in PrisonRead the Press Release
PITTSBURGH - A Westmoreland County resident has been sentenced in federal court to 80 months imprisonment, to be followed by 10 years of supervised release, on his conviction of Possession of Material Depicting the Sexual Exploitation of a Minor, United States Attorney David J. Hickton announced today.
United States District Judge Gustave Diamond imposed the sentence on Joshua J. Gildea, 26, formerly of Youngwood, Pa.
According to information presented to the court, on July 30, 2012, Gildea possessed visual depictions, namely, images and videos 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 Federal Bureau of Investigation, the Pennsylvania State Police, and the Greensburg Police Department for the investigation leading to the successful prosecution of Gildea.
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.
Pittsburgh Man Sentenced for Transporting Stolen Goods from Pennsylvania to TexasRead the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to 24 months imprisonment, a $15,000 fine, and two years supervised release on his conviction of interstate transportation of stolen goods, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on David Michael Spaid, 56.
According to the information presented to the court, Spaid unlawfully transported, transmitted and transferred and caused to be transported, transmitted and transferred in interstate commerce goods that were stolen, with a value of $5,000 or more, knowing the same to have been taken by fraud.
On or about Oct. 14, 2011, two employees of the Allegheny Ludlum plant in Harrison Township, Kenneth Hill and Timothy Angely, stole four "super sacks" of nickel that had been shipped to Allegheny Ludlum from Russia via Baltimore, Md. The nickel weighed in excess of 17,000 lbs. and had a value of approximately $151,000. Hill and Angely transported the stolen nickel to a nearby open field where it was picked up by a driver working for David Michael Spaid at AAA Scrap Metal, located in Pittsburgh. Spaid negotiated the purchase of the stolen nickel from PJ Eberhardt, who worked in conjunction with Hill and Angely. Spaid would "front" Eberhardt with $30,000, and then pay an additional amount according to a prearranged formula for the value of the nickel after Spaid was able to sell the stolen nickel to a buyer. In this case, Spaid sold the nickel briquettes to ECS Refining in Terrell, Texas, and the nickel was shipped out by Spaid's company in western Pennsylvania to Texas at his direction on or around Oct. 21, 2011. Spaid indicated to the Pennsylvania State Police, who interviewed him, that this shipment of stolen nickel was the last of at least ninethat he received from Eberhardt.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Immigration and Customs Enforcement for the investigation leading to the successful prosecution of Spaid.