Western District of Pennsylvania

PITTSBURGH, PA – A former resident of the Western District of Pennsylvania has been sentenced to 108 months of imprisonment, followed by ten years of supervised release on his federal felony conviction pertaining to his receipt of material involving the sexual exploitation of a minor, United States Attorney Eric G. Olshan announced today.

United States District Judge W. Scott Hardy imposed the sentence on Shawn Michael Hoffman, age 41, following his guilty plea to this violation of federal law. In imposing the sentence, Judge Hardy emphasized the extremely serious nature of this federal offense and the harm the defendant caused to the minor victim.

The one-count Information named Shawn Michael Hoffman, age 41, formerly of Pittsburgh, Pennsylvania, as the sole defendant.

According to the information presented to the court, in September 2019, Hoffman initiated online communications and solicited sexually explicit visual depictions of the minor. Hoffman also received visual depictions of the minor engaged in sexually explicit conduct using the internet and cellular phone.

Assistant United States Attorney Nicole A. Stockey is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.

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.

JOHNSTOWN, Pa. – A federal grand jury in Johnstown has returned a Superseding Indictment that charges two residents of Clearfield County, Pennsylvania, with conspiracy, federal program fraud, and money laundering, United States Attorney Eric G. Olshan announced today.

The 10-count Superseding Indictment named John “Herm” Suplizio, 64, and Roberta Shaffer, 59, both of DuBois, as the defendants. The pair was initially indicted and arrested in November 2023 on conspiracy and federal program fraud charges (read the earlier news release here). The Superseding Indictment expands the time frame of the federal program theft conspiracy in the original indictment, with allegations of an additional approximately $700,000 in theft, and also adds money laundering charges.

According to the Superseding Indictment, from in and around May 2008 to in and around March 2022, Suplizio, the City Manager for DuBois, and Shaffer, the Secretary to the City of DuBois, knowingly conspired to embezzle, steal, convert, and misapply over $1.5 million owned by the city. To accomplish this theft, Suplizio and Shaffer opened bank accounts without the knowledge of the DuBois City Council or auditors, and then funneled fees intended for the city from a waste management company and two oil and gas companies into those secret accounts. Suplizio and Shaffer used the stolen money to, among other things, make large cash withdrawals, write checks to themselves and others, obtain cashier’s checks with themselves listed as payees, and make payments to Suplizio’s personal credit card. The purchases on Suplizio’s credit card included Suplizio’s vacation expenses, utility expenses for Suplizio’s residence, department store purchases, jewelry store purchases, political dinners, and other personal expenses. The Superseding Indictment alleges that many of the transactions in which Suplizio and Shaffer engaged with the proceeds of their theft were over $10,000, which constitutes money laundering under federal law.

The law provides for a maximum sentence of up to either five or 10 years in prison, a fine of up to either $250,000 or $500,000, or both, on each count. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.

Assistant United States Attorney Nicole Vasquez Schmitt and Special Assistant United States Attorney Summer F. Carroll are prosecuting this case on behalf of the government.

The Federal Bureau of Investigation, Pennsylvania Office of Attorney General, Pennsylvania State Police, and Internal Revenue Service – Criminal Investigation conducted the investigation leading to the Superseding Indictment.

A Superseding Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

PITTSBURGH, Pa. - On September 23, 2024, a federal jury found Leon C. Ford guilty on two counts of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.

Ford, 58, of Pittsburgh, Pennsylvania, was tried before Senior United States District Judge Arthur J. Schwab in Pittsburgh.

According to evidence presented at trial, Ford, who has a prior federal conviction for drug trafficking, conspired to distribute five kilograms or more of cocaine and 400 grams or more of fentanyl between March 2021 and September 2021. Ford also possessed with the intent to distribute a kilogram of fentanyl on September 16, 2021. Ford was the subject of a long-term Organized Crime Drug Enforcement Task Forces (OCDETF) investigation, which included, among other evidence, the seizure of a kilogram of fentanyl from a co-defendant’s residence that Ford was using as a stash house. The markings on the seized fentanyl were consistent with coded references Ford used in conversations intercepted pursuant to Title III wiretaps. Investigators also seized approximately $240,000 in drug proceeds from Ford’s own residence and vehicle.

Judge Schwab scheduled sentencing for January 29, 2025. The law provides for a total sentence of not less than 15 years and up to life in prison, a fine of up to $20 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history of the defendant.

Pending sentencing, the court remanded Ford to the custody of the United States Marshals Service.

Assistant United States Attorneys Katherine C. Jordan and Jonathan D. Lusty are prosecuting the case on behalf of the government.

The Drug Enforcement Administration, Allegheny County Sheriff’s Office, McKeesport Police Department, Pittsburgh Bureau of Police, Fort Worth Police Department, and Dallas Police Department conducted the investigation that led to the prosecution of Ford.

OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

PITTSBURGH, Pa. - A resident of New Castle, Pennsylvania, has been sentenced in federal court to 110 months in prison for trafficking fentanyl and cocaine and possessing a firearm after a felony conviction, United States Attorney Eric G. Olshan announced today.

Senior United States District Judge Arthur J. Schwab imposed the sentence on Donald Jeter, 34. Judge Schwab also ordered Jeter to serve six years of supervised release following his prison sentence.

Jeter previously pleaded guilty in this case to conspiring to distribute fentanyl and cocaine between May 2021 and October 2022, and to possessing a firearm on August 10, 2022, after a felony conviction. Federal law prohibits possession of a firearm or ammunition by a convicted felon.

Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.

United States Attorney Olshan commended the Federal Bureau of Investigation, Pennsylvania Office of Attorney General, United States Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Lawrence County Drug Task Force, Mercer County Drug Task Force, New Castle Police Department, Sharon Police Department, and Pennsylvania State Police for the investigation leading to the successful prosecution of Jeter.

PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of possession of a firearm and ammunition by a convicted felon, use of an unauthorized access device, and aggravated identity theft, United States Attorney Eric G. Olshan announced today.

Cheron Tucker, 28, pleaded guilty to three counts before Senior United States District Judge Nora Barry Fischer.

In connection with the guilty plea, the Court was advised that Tucker participated in a scheme in which, through the dark web, he obtained the names, credit card numbers, and other identification information of numerous individuals that he then used to rent vehicles from a car rental company with the assistance of a co-conspirator who managed the company’s Monroeville office. Once Tucker obtained the vehicles, he rented them to other individuals. Tucker agreed that he caused more than $550,000 of losses to the car rental company through the scheme.

While investigating one of the vehicles fraudulently obtained from the company, the Brentwood Police Department conducted a search of a home associated with Tucker. The search revealed numerous documents and other evidence associated with the identity theft scheme, as well as two loaded firearms, including one with an obliterated serial number. Tucker has prior felony convictions, including a previous federal conviction for use of unauthorized access devices for which Tucker was on federal supervised release when he committed these new offenses. Federal law prohibits a convicted felon from possessing a firearm or ammunition.

Judge Fischer scheduled sentencing for January 13, 2025. The law provides for a total sentence of not less than two years in prison and up to 32 years in prison, a fine of up to $750,000, or both. He also faces up to three additional years of imprisonment for violating the conditions of his supervised release. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.

Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.

The United States Secret Service, with assistance from the Monroeville Police Department and Brentwood Police Department, conducted the investigation that led to the prosecution of Tucker.

PITTSBURGH, Pa. - A resident of Fayette County, Pennsylvania, pleaded guilty in federal court to a charge of willfully filing a false tax return, United States Attorney Eric G. Olshan announced today.

James E. Frey Jr., 54, of Uniontown pleaded guilty to one count before United States District Judge Marilyn J. Horan.

In connection with the guilty plea, the Court was advised that Frey deposited checks from his businesses’ customers into his personal bank accounts instead of his businesses’ accounts, and kept for himself the proceeds of checks made payable from his companies to other individuals that were never actually sent. Frey’s personal income tax returns for years including 2019 were false in that, as Frey knew, they failed to report the income from those checks.

Judge Horan scheduled sentencing for January 14, 2025. The law provides for a total sentence of up to three years in prison, a fine of up to $250,000 or twice the gain or loss from the offense, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney William B. Guappone is prosecuting this case on behalf of the government.

The Internal Revenue Service – Criminal Investigation conducted the investigation that led to the prosecution of Frey.

JOHNSTOWN, Pa. – A resident of Allport, Pennsylvania, was sentenced in federal court to 204 months in prison, to be followed by five years of supervised release, on his convictions of conspiracy to distribute methamphetamine, unlawful possession of a firearm, and conspiracy to commit money laundering, United States Attorney Eric G. Olshan announced today.

Senior United States District Judge Kim R. Gibson imposed the sentence on Alexis Brolin Jr., 55, on September 20, 2024.

According to information presented to the Court, from in and around July 2019 to in and around April 2020 in the Western District of Pennsylvania, Brolin conspired with others to distribute and possess with intent to distribute 50 grams or more of methamphetamine and 500 grams or more of a mixture and substance containing methamphetamine. Brolin, who directed the drug trafficking organization’s activity in Clearfield and surrounding areas, was intercepted on a federal wiretap obtaining kilogram quantities of methamphetamine that he distributed to others, and was arrested in possession of more than 650 grams of methamphetamine destined for Clearfield during an April 2020 interdiction stop.

Executing a search warrant at Brolin’s residence on the day of his arrest, law enforcement agents seized additional quantities of methamphetamine, as well as 11 firearms and ammunition, including five shotguns, two rifles, an AK-style rifle, and three pistols, with numerous of the firearms not having serial numbers. Under federal law, Brolin was prohibited from possessing any firearm or ammunition based on his earlier felony conviction for robbery. Brolin also pleaded guilty to possessing a firearm in furtherance of his drug trafficking crime.

Additionally, from in and around July 2019 to June 2020, Brolin conspired to commit money laundering by having various distributors pre-pay him for the drugs he was to provide them through money wires to and from various locations within Western Pennsylvania.

Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.

United States Attorney Olshan commended the Drug Enforcement Administration and Pennsylvania State Police for the investigation that led to the successful prosecution of Brolin. Additional agencies participating in this investigation included the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
 

ERIE, Pa. - An Organized Crime Drug Enforcement Task Force (OCDETF) investigation has led to charges against a total of 26 defendants across nine separate but related Indictments for violations of federal narcotics and firearms laws, United States Attorney Eric G. Olshan announced today.

The Indictments charge a network of overlapping regional drug dealers based out of Erie, Pennsylvania, with trafficking multi-kilogram quantities of fentanyl powder and pills, substantial quantities of methamphetamine, and cocaine. During this long-term wiretap investigation, several firearms were seized from drug distributors who were prohibited from possessing firearms or possessed the firearms in furtherance of their drug trafficking. Investigators also seized multiple Glock conversion devices—commonly referred to as “Glock switches”—which are designed to convert a semiautomatic Glock pistol into an automatic machinegun.

The Indictments, all unsealed September 18, 2024, include: - an 11-count Indictment returned on September 10, 2024, charging 14 defendants with obtaining and redistributing fentanyl and methamphetamine in and around Erie County and other areas of the Western District of Pennsylvania; - a two-count Indictment returned on September 10, 2024, charging four defendants with conspiring to distribute and possess with intent to distribute varying quantities of fentanyl and methamphetamine; - a one-count Indictment returned on September 10, 2024, charging two defendants with conspiring to distribute and possess with intent to distribute a quantity of a mixture and substance containing cocaine, and
- six additional one-defendant Indictments charging one to three offenses involving drugs, firearms, or both. These Indictments were returned between July 30, 2024, and September 10, 2024.

A list of the defendants, charges, and maximum penalties is included at the bottom of this release. 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.

“The combination of guns and illicit drugs—like fentanyl and methamphetamine—leads to tragic consequences for communities in the Erie area and across our district,” said U.S. Attorney Olshan. “Today’s charges against 26 defendants reinforce a core message: if you peddle deadly drugs in the Western District of Pennsylvania, you should expect a visit from law enforcement. Our office and our law enforcement partners will not sit idly by and allow drug traffickers and those who carry devices capable of turning semiautomatic firearms into fully automatic weapons to operate with impunity. Simply put, we are unrelenting in our resolve to keep ordinary citizens safe and secure in their own homes and neighborhoods.”

“The message to those who think they can continue trafficking cartel poison in our communities at will is the FBI and our partners with the EAGLE Safe Streets Task Force will not stop until we break the cycle of drug violence,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “Your operations will be dismantled, your drug-fueled profits will be seized, and you will be brought to justice. This marks the third large-scale operation in the Erie area in the last three years. The FBI’s resolve, and that of our partners, in combatting drugs on our streets will not change.”

“Operation Hot Block is the epitome of a joint investigation,” said Acting Special Agent in Charge of HSI Philadelphia Sara Bay. “Working hand in hand, HSI and FBI, along with multiple federal agencies, state, county, and city police, all contributed to the significant enforcement action today. Through these collective efforts, a dangerous criminal organization that dealt in violent crime and supplied deadly drugs like fentanyl to victims in northwestern Pennsylvania has been dismantled. Residents of northwestern Pennsylvania are safer due to the efforts of all law enforcement professionals that helped bring this investigation to fruition.”

“The Erie Police Department is proud to participate on the FBI EAGLE Task Force,” said Erie Police Department Chief Daniel Spizarny. “Working together with other law enforcement agencies in the region, we strive to prevent these deadly drugs from reaching our city. The damage these drugs do to our community, our friends, our neighbors, and our families must be stopped. A safer city for all is our goal.”

Assistant United States Attorneys Molly Anglin and Paul Sellers are prosecuting these cases on behalf of the government.

This prosecution is a part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

The Federal Bureau of Investigation (FBI) Erie Resident Agency Erie Area Gang Law Enforcement (EAGLE) Safe Streets Task Force—which is comprised of investigators from the FBI, United States Customs and Border Protection, Erie Police Department, Pennsylvania State Police, Pennsylvania Office of Attorney General, Millcreek Police Department, Oil City Police Department, Franklin Police Department, and Erie School District Police Department—conducted the investigation leading to the indictments, in coordination with Homeland Security Investigations; the Internal Revenue Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; Pennsylvania State Police Vice and Drug Law Units; Erie County Detectives; and Erie County District Attorney’s Office.

The investigation was also conducted in association with the Northwest Pennsylvania Drug Initiative, which was formed following Erie County’s designation as a High Intensity Drug Trafficking Area (HIDTA) in 2021. The HIDTA program was created by Congress in 1988 to coordinate and assist federal, state, and local law enforcement agencies in addressing regional drug threats with the purpose of reducing drug trafficking and drug production in the United States. The Northwest Pennsylvania Drug Initiative coordinates personnel and resources between multiple agencies including the Pennsylvania State Police, Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, Erie Police Department, Erie County District Attorney’s Office, Erie County Detectives, United States Postal Inspection Service, EAGLE Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, and other participating agencies.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

List of Defendants

PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a federal drug trafficking charge, United States Attorney Eric G. Olshan announced today.

Dirk Barfield Jr., 38, pleaded guilty before United States District Judge Robert J. Colville to one count of possession with intent to distribute cocaine.

In connection with the guilty plea, the Court was advised that, in September 2022, Barfield was the subject of a joint investigation by the Federal Bureau of Investigation and Pennsylvania State Police. The investigation revealed that Barfield would travel from a Pittsburgh residence in his Maserati to distribute cocaine. On September 13, 2022, law enforcement executed search warrants upon Barfield and the Pittsburgh residence. When law enforcement announced their presence from outside the residence, Barfield threw bags of suspected controlled substances from a second floor window onto the yard. Law enforcement recovered the bags and made entry into the residence, where, following a waiver of his rights, Barfield admitted to throwing about two ounces of cocaine and one ounce of crack from the window. At the time Barfield committed this crime, he was serving a term of federal supervised release related to his last drug trafficking conviction in the Western District of Pennsylvania.

Judge Colville scheduled sentencing for January 21, 2025. The law provides for a total maximum sentence of up to 30 years in prison, a fine of up to $2 million, or both on the drug charge, and a term of imprisonment of up to five years on the federal supervised release violation. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.

Pending sentencing, Judge Colville ordered Barfield remanded to the custody of the U.S. Marshals Service.

Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation and Pennsylvania State Police conducted the investigation that led to the prosecution of Barfield.
 

Actors Unsuccessfully Sought to Prevent FBI’s Disruption of Botnet

WASHINGTON – The Department of Justice today announced a court-authorized law enforcement operation that disrupted a botnet consisting of more than 200,000 consumer devices in the United States and worldwide. As described in court documents unsealed in the Western District of Pennsylvania, the botnet devices were infected by People’s Republic of China (PRC) state-sponsored hackers working for Integrity Technology Group, a company based in Beijing, China, and known to the private sector as “Flax Typhoon.”

The botnet malware infected numerous types of consumer devices, including small-office/home-office (SOHO) routers, internet protocol (IP) cameras, digital video recorders (DVRs), and network-attached storage (NAS) devices. The malware connected these thousands of infected devices into a botnet, controlled by Integrity Technology Group, which was used to conduct malicious cyber activity disguised as routine internet traffic from the infected consumer devices. The court-authorized operation took control of the hackers’ computer infrastructure and, among other steps, sent disabling commands through that infrastructure to the malware on the infected devices. During the course of the operation, there was an attempt to interfere with the FBI’s remediation efforts through a distributed denial-of-service (DDoS) attack targeting the operational infrastructure that the FBI was utilizing to effectuate the court’s orders. That attack was ultimately unsuccessful in preventing the FBI’s disruption of the botnet.

“The Justice Department is zeroing in on the Chinese government backed hacking groups that target the devices of innocent Americans and pose a serious threat to our national security,” said Attorney General Merrick B. Garland. “As we did earlier this year, the Justice Department has again destroyed a botnet used by PRC- backed hackers to infiltrate consumer devices here in the United States and around the world. We will continue to aggressively counter the threat that China’s state- sponsored hacking groups pose to the American people.”

“The targeted hacking of hundreds of thousands of innocent victims in the United States and around the world shows the breadth and aggressiveness of PRC state-sponsored hackers,” said Eric G. Olshan, the United States Attorney for the Western District of Pennsylvania. “This court-authorized operation disrupted a sophisticated botnet designed to steal sensitive information and launch disruptive cyber attacks. We will continue to work with our partners inside and outside government, using every tool at our disposal, to defend and maintain global cybersecurity.”

“This dynamic operation demonstrates, once again, the Justice Department’s resolve in countering the threats posed by PRC state-sponsored hackers,” said Assistant Attorney General Matthew G. Olsen of the National Security Division. “For the second time this year, we have disrupted a botnet used by PRC proxies to conceal their efforts to hack into networks in the U.S. and around the world to steal information and hold our infrastructure at risk. Our message to these hackers is clear: if you build it, we will bust it.”

“The disruption of this worldwide botnet is part of the FBI’s commitment to using technical operations to help protect victims, expose publicly the scope of these criminal hacking campaigns, and to use the adversary’s tools against them to remove malicious infrastructure from the virtual battlefield,” said FBI Deputy Director Paul Abbate. “The FBI’s unique legal authorities allowed it to lead an international operation with partners that collectively disconnected this botnet from its China-based hackers at Integrity Technology Group.'

According to the court documents, the botnet was developed and controlled by Integrity Technology Group, a publicly traded company headquartered in Beijing, China. The company built an online application allowing its customers to log in and control specified infected victim devices, including with a menu of malicious cyber commands using a tool called “vulnerability-arsenal.” The online application was prominently labelled “KRLab,” one of the main public brands used by Integrity Technology Group.

The FBI assesses that Integrity Technology Group, in addition to developing and controlling the botnet, is responsible for computer intrusion activities attributed to China-based hackers known by the private sector as “Flax Typhoon.” Microsoft Threat Intelligence described Flax Typhoon as nation-state actors based out of China, active since 2021, who have targeted government agencies and education, critical manufacturing, and information technology organizations in Taiwan, and elsewhere. The FBI’s investigation has corroborated Microsoft’s conclusions, finding that Flax Typhoon has successfully attacked multiple U.S. and foreign corporations, universities, government agencies, telecommunications providers, and media organizations.

A cybersecurity advisory describing Integrity Technology Group tactics, techniques and procedures was also published today by the FBI, the National Security Agency, U.S. Cyber Command’s Cyber National Mission Force, and partner agencies in Australia, Canada, New Zealand and the United Kingdom. JCSA: People’s Republic of China-Linked Actors Compromise Routers and IoT Devices for Botnet Operations

The government’s malware disabling commands, which interacted with the malware’s native functionality, were extensively tested prior to the operation. As expected, the operation did not affect the legitimate functions of, or collect content information from, the infected devices. The FBI is providing notice to U.S. owners of devices that were affected by this court-authorized operation. The FBI is contacting those victims through their internet service provider, who will provide notice to their customers.

The U.S. Attorney’s Office for the Western District of Pennsylvania, FBI’s San Diego Office and Cyber Division, and the National Security Cyber Section of the Justice Department’s National Security Division led the domestic disruption effort. Assistance was also provided by the Criminal Division’s Computer Crime and Intellectual Property Section. These efforts would not have been successful without the collaboration of partners, including French authorities, and Lumen Technologies’ threat intelligence group, Black Lotus Labs, which first identified and described this botnet, which it named Raptor Train, in July 2023.

If you believe you have a compromised computer or device, please visit the FBI’s Internet Crime Complaint Center (IC3) or report online to CISA. You may also contact your local FBI field office directly.

The FBI continues to investigate Integrity Technology Group’s and Flax Typhoon’s computer intrusion activities.

Note: View the affidavit here.

The Justice Department today announced a court-authorized law enforcement operation that disrupted a botnet consisting of more than 200,000 consumer devices in the United States and worldwide. As described in court documents unsealed in the Western District of Pennsylvania, the botnet devices were infected by People’s Republic of China (PRC) state-sponsored hackers working for Integrity Technology Group, a company based in Beijing, and known to the private sector as “Flax Typhoon.”

The botnet malware infected numerous types of consumer devices, including small-office/home-office (SOHO) routers, internet protocol (IP) cameras, digital video recorders (DVRs), and network-attached storage (NAS) devices. The malware connected these thousands of infected devices into a botnet, controlled by Integrity Technology Group, which was used to conduct malicious cyber activity disguised as routine internet traffic from the infected consumer devices. The court-authorized operation took control of the hackers’ computer infrastructure and, among other steps, sent disabling commands through that infrastructure to the malware on the infected devices. During the course of the operation, there was an attempt to interfere with the FBI’s remediation efforts through a distributed denial-of-service (DDoS) attack targeting the operational infrastructure that the FBI was utilizing to effectuate the court’s orders. That attack was ultimately unsuccessful in preventing the FBI’s disruption of the botnet.

“The Justice Department is zeroing in on the Chinese government backed hacking groups that target the devices of innocent Americans and pose a serious threat to our national security,” said Attorney General Merrick B. Garland. “As we did earlier this year, the Justice Department has again destroyed a botnet used by PRC-backed hackers to infiltrate consumer devices here in the United States and around the world. We will continue to aggressively counter the threat that China’s state- sponsored hacking groups pose to the American people.”

“Our takedown of this state-sponsored botnet reflects the Department’s all-tools approach to disrupting cyber criminals. This network, managed by a PRC government contractor, hijacked hundreds of thousands of private routers, cameras, and other consumer devices to create a malicious system for the PRC to exploit,” said Deputy Attorney General Lisa Monaco. “Today should serve as a warning to cybercriminals preying on Americans – if you continue to come for us, we will come for you.”

“This dynamic operation demonstrates, once again, the Justice Department’s resolve in countering the threats posed by PRC state-sponsored hackers,” said Assistant Attorney General Matthew G. Olsen of the National Security Division. “For the second time this year, we have disrupted a botnet used by PRC proxies to conceal their efforts to hack into networks in the U.S. and around the world to steal information and hold our infrastructure at risk. Our message to these hackers is clear: if you build it, we will bust it.”

“The disruption of this worldwide botnet is part of the FBI’s commitment to using technical operations to help protect victims, expose publicly the scope of these criminal hacking campaigns, and to use the adversary’s tools against them to remove malicious infrastructure from the virtual battlefield,” said FBI Deputy Director Paul Abbate. “The FBI’s unique legal authorities allowed it to lead an international operation with partners that collectively disconnected this botnet from its China-based hackers at Integrity Technology Group.”

“The targeted hacking of hundreds of thousands of innocent victims in the United States and around the world shows the breadth and aggressiveness of PRC state-sponsored hackers,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “This court-authorized operation disrupted a sophisticated botnet designed to steal sensitive information and launch disruptive cyber attacks. We will continue to work with our partners inside and outside government, using every tool at our disposal, to defend and maintain global cybersecurity.”

“The FBI’s investigation revealed that a publicly-traded, China-based company is openly selling its customers the ability to hack into and control thousands of consumer devices worldwide. This operation sends a clear message to the PRC that the United States will not tolerate this shameless criminal conduct,” said Special Agent in Charge Stacey Moy of the FBI San Diego Field Office.

According to the court documents, the botnet was developed and controlled by Integrity Technology Group, a publicly-traded company headquartered in Beijing. The company built an online application allowing its customers to log in and control specified infected victim devices, including with a menu of malicious cyber commands using a tool called “vulnerability-arsenal.” The online application was prominently labelled “KRLab,” one of the main public brands used by Integrity Technology Group.

The FBI assesses that Integrity Technology Group, in addition to developing and controlling the botnet, is responsible for computer intrusion activities attributed to China-based hackers known by the private sector as “Flax Typhoon.” Microsoft Threat Intelligence described Flax Typhoon as nation-state actors based out of China, active since 2021, who have targeted government agencies and education, critical manufacturing, and information technology organizations in Taiwan, and elsewhere. The FBI’s investigation has corroborated Microsoft’s conclusions, finding that Flax Typhoon has successfully attacked multiple U.S. and foreign corporations, universities, government agencies, telecommunications providers, and media organizations.

A cybersecurity advisory describing Integrity Technology Group tactics, techniques and procedures was also published today by the FBI, the National Security Agency, U.S. Cyber Command’s Cyber National Mission Force, and partner agencies in Australia, Canada, New Zealand and the United Kingdom. 

The government’s malware disabling commands, which interacted with the malware’s native functionality, were extensively tested prior to the operation. As expected, the operation did not affect the legitimate functions of, or collect content information from, the infected devices. The FBI is providing notice to U.S. owners of devices that were affected by this court-authorized operation. The FBI is contacting those victims through their internet service provider, who will provide notice to their customers.

The FBI’s San Diego Field Office and Cyber Division, the U.S. Attorney’s Office for the Western District of Pennsylvania, and the National Security Cyber Section of the Justice Department’s National Security Division led the domestic disruption effort. Assistance was also provided by the Criminal Division’s Computer Crime and Intellectual Property Section. These efforts would not have been successful without the collaboration of partners, including French authorities, and Lumen Technologies’ threat intelligence group, Black Lotus Labs, which first identified and described this botnet, which it named Raptor Train, in July 2023.

If you believe you have a compromised computer or device, please visit the FBI’s Internet Crime Complaint Center (IC3) or report online to CISA. You may also contact your local FBI field office directly.

The FBI continues to investigate Integrity Technology Group’s and Flax Typhoon’s computer intrusion activities.

PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating a federal narcotics law, United States Attorney Eric G. Olshan announced today.

The one-count Indictment named Drew Gordon, 22, as the sole defendant.

According to the Indictment, on or about August 30, 2024, Gordon possessed with the intent to distribute a quantity of fentanyl.

The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $1 million, 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 Douglas C. Maloney is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Marshals Service, Pittsburgh Bureau of Police, Allegheny County Police Department, and Allegheny County Sheriff’s Department conducted the investigation leading to the Indictment.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

PITTSBURGH, Pa. – A former resident of McKees Rocks, Pennsylvania, was sentenced in federal court on September 11, 2024, to 10 years in prison, to be followed by six years of supervised release, for possession with intent to distribute fentanyl, United States Attorney Eric G. Olshan announced today.

Chief United States District Judge Mark R. Hornak imposed the sentence on Devon Lamont Johnson, 36, also sentencing Johnson on two separate violations of his supervised release. In both of those cases, Johnson was sentenced to 12 months and one day in prison, with the sentences to be served concurrently with one another but consecutively to the sentencing in the fentanyl case, for a total term of imprisonment of 11 years and one day.

According to the information presented to the Court, Allegheny County detectives were working on violent crime suppression detail in the Stowe/McKees Rocks area on April 5, 2021, when they responded to a shots fired call, possibly involving a dark SUV. Shortly after, officers attempted to initiate a traffic stop of a black Chevrolet Blazer, the driver of which managed to evade detectives. Detectives later found the vehicle unoccupied and obtained a search warrant for the SUV, from which they seized 12 bricks (approximately 600 doses) of suspected fentanyl with bags stamped “Monster High” and “Toad.”

On April 14, 2021, agents made a controlled purchase of fentanyl from Johnson. The purchased bags of fentanyl were stamped with a “Toad,” identical to the stamp bags previously found in the Chevy Blazer. Based on that information, the detectives obtained a search warrant for a Taggert Street residence, which they executed on April 21, 2021. As detectives were approaching the residence, Johnson was exiting the front door, but he closed the door and retreated inside upon observing the presence of police. Officers pursued the defendant and secured him prior to his destroying any evidence.

During the search of the residence, detectives located 12 bricks of suspected fentanyl and a drink container with a hidden compartment that contained a knotted baggie of approximately 50 tablets of fentanyl. The bricks, some of which were stamped with “Toad,” were packaged in a similar manner to the stamp bags found in the car, with the Allegheny County Medical Examiner’s Office also finding the defendant’s fingerprints on a shopping bag that contained the bricks. Johnson’s conduct violated the conditions of his supervised release for two previous criminal convictions, for escape from custody and distribution of heroin.

Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.

United States Attorney Olshan commended the Allegheny County Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Allegheny County Medical Examiner’s Office for the investigation that led to the successful prosecution of Johnson.

PITTSBURGH, Pa. – A resident of Lower Burrell, Pennsylvania, pleaded guilty in federal court to a charge of violating federal fraud laws, United States Attorney Eric G. Olshan announced today.

Jonathan Fry, 44, pleaded guilty before Senior United States District Judge David S. Cercone on September 9, 2024, to one count of fraudulently using credit cards that were issued to another person.

In connection with the guilty plea, the Court was advised that, from November 2018 to November 2019, Fry fraudulently used unauthorized access devices—specifically, credit cards in the name of the victim and the victim’s personal identification information, including social security number and birthdate—to make purchases. After opening accounts and applying for credit cards in the victim’s name without her authorization, Fry used the credit cards to purchase multiple items, making minimum payments toward the credit card balances so that he could continue to use the cards. Throughout the period, he charged tens of thousands of dollars worth of purchases, including a firearm worth more than $1,000.

Judge Cercone scheduled sentencing for January 9, 2024. The law provides for a total maximum sentence of up to 10 years in prison, a fine of up to $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 Brendan T. Conway is prosecuting this case on behalf of the government.

The United States Postal Inspection Service conducted the investigation that led to the prosecution of Fry.

PITTSBURGH, Pa. - A resident of Indianapolis, Indiana, has been sentenced in federal court to 12 months and one day in prison on her conviction of wire fraud, United States Attorney Eric G. Olshan announced today. Antranette Echols, 57, was also ordered to pay restitution of $373,690 to several financial institutions and the Small Business Administration, who were the victims in the fraud.

Senior United States District Judge Nora Barry Fischer imposed the sentence on Echols.

According to information presented to the Court, Echols prepared and submitted falsified COVID-19 pandemic relief loan applications on behalf of business borrowers, for which she took a fee. Some of the borrowers were located in the Western District of Pennsylvania.

Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.

United States Attorney Olshan commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Echols.

JOHNSTOWN, Pa. – A resident of Middletown, Delaware, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.

Paul Smith, 46, pleaded guilty to Count One of the Superseding Indictment before Senior United States District Judge Kim R. Gibson.

In connection with the guilty plea, the Court was advised that, from in and around April 2019 to in and around July 2021, in the Western District of Pennsylvania, Smith conspired with others to distribute and possess with intent to distribute 100 grams or more of a mixture and substance containing heroin. Smith was intercepted on a federal wiretap obtaining quantities of the drugs that he distributed to others.

Judge Gibson scheduled sentencing for January 21, 2025. The law provides for a total sentence of not less than five years and up to 40 years in prison, a fine of up to $5 million, 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 Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation’s Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation that led to the prosecution of Smith. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, Pennsylvania Office of Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department, and other local law enforcement agencies.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

PITTSBURGH, Pa. - A resident of Clairton, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges related to the sexual exploitation of minors, United States Attorney Eric G. Olshan announced today.

The 19-count Indictment named Joseph Primiero, 26, as the sole defendant.

According to the Indictment, on January 22, 2022, and between June 13, 2022, and June 28, 2022, Primiero produced material depicting the sexual exploitation of minors. During that same time frame, Primiero allegedly coerced and enticed a minor to engage in sexual activity, received and distributed material depicting the sexual exploitation of minors, and transferred obscene images and videos of himself engaged in sexually explicit conduct to a minor. Additionally, Primiero is charged with possession of material depicting the sexual exploitation of prepubescent minors and minors under 12 years of age on May 22, 2024.

The law provides for a maximum total sentence of up to life in prison, a fine of up to $4.75 million, 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 V. Joseph Sonson is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation and Allegheny County Police Department conducted the investigation leading to the Indictment.

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 (CEOS), 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.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

PITTSBURGH, Pa. - After deliberating for three hours, a federal jury on September 12, 2024, found Courtney Washington of Duquesne, Pennsylvania, guilty of two counts of violating federal firearms laws, United States Attorney Eric G. Olshan announced today.

Washington, 30, was tried before United States District Judge Christy Criswell Wiegand in Pittsburgh.

According to evidence presented at trial, Washington sold fentanyl to two confidential informants on April 3, 2023, during an ongoing drug trafficking investigation. Two weeks later, on April 17, 2023, law enforcement officers investigating the earlier fentanyl distribution executed a search warrant at Washington’s home and seized about $45,000 worth of fentanyl from a washing machine, where Washington unsuccessfully had attempted to destroy the drugs, along with a loaded and stolen .45 Glock handgun that Washington attempted to conceal in the ceiling rafters about six feet from the washing machine. Testimony established that the Glock was the same firearm that the confidential informants had observed in the console of Washington’s car during the April 3, 2023, transaction. Washington previously had been convicted of a federal drug trafficking felony and is therefore prohibited under federal law from possessing a firearm or ammunition.

Prior to trial, Washington pleaded guilty to distribution of fentanyl for the April 3, 2023, conduct, as well as possession with intent to distribute the fentanyl found in the washing machine on April 17, 2023. In addition to finding Washington guilty of possessing a firearm as a convicted felon, the jury concluded that Washington possessed the firearm on April 17, 2023, in furtherance of his drug trafficking activities, another violation of federal law. Recordings of prison calls also revealed that Washington attempted to extort and intimidate the confidential informants following his arrest.

Judge Wiegand scheduled sentencing for January 16, 2025. The law provides for a total sentence of not less than five years and up to life in prison, a fine of up to $1,250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history of the defendant. As Washington was on federal supervised release for his prior drug trafficking crime at the time he committed these crimes, he faces another sentence for violating the conditions of his supervised release.

Assistant United States Attorneys Brendan T. Conway and V. Joseph Sonson are prosecuting the case on behalf of the government.

The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Washington, with assistance from the Allegheny County Police Department and Duquesne Police Department.

PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of bankruptcy fraud and mail fraud, United States Attorney Eric G. Olshan announced today.

Prasad Margabandhu, 48, pleaded guilty to two counts before United States District Judge Christy Criswell Wiegand.

In connection with the guilty plea to the bankruptcy fraud charge, the Court was advised that, from March 2019 to June 2022, Margabandhu engaged in a scheme to defraud the bankruptcy court by filing multiple bankruptcy petitions in the names of companies he controlled called “RSP Pittsburgh” and “Shane Tracy Enterprises” solely to delay efforts by creditors such as the mortgage holder and taxing bodies to execute on judgments against a property at 1925 East Carson Street in Pittsburgh.

With respect to the guilty plea to the charge of mail fraud, Margabandhu admitted that his insurance claim relating to a June 2022 fire that destroyed the 1925 East Carson Street property was fraudulent. In particular, Margabandhu admitted that he had made several materially false statements to the company that insured the property.

Judge Weigand scheduled sentencing for January 14, 2025. The law provides for a total sentence of up to 25 years in prison, a fine of up to $500,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorneys Gregory C. Melucci and Shaun E. Sweeney are prosecuting this case on behalf of the government.

The Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service; Federal Bureau of Investigation, and Office of the United States Trustee conducted the investigation that led to the prosecution of Margabandhu.

JOHNSTOWN, Pa. – A resident of Johnstown, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy to commit money laundering, United States Attorney Eric G. Olshan announced today.

John M. Trabert Jr., 54, pleaded guilty to one count before United States District Judge Stephanie L. Haines on September 12, 2024.

In connection with the guilty plea, the Court was advised that, from in and around January 2020 through in and around March 2022 in the Western District of Pennsylvania, Trabert knowingly and unlawfully conspired with other individuals to commit money laundering by acting as a “money mule”— a person who, at someone else’s direction, receives and moves money obtained from victims of fraud—in a variety of romance, real estate, and gold scams. The scheme consisted of a co-conspirator outside of the United States directing victims, who believed they were investing in real estate, gold, or financial support of a fictional love interest, to send funds to one of Trabert’s bank accounts. Trabert then conducted financial transactions using proceeds of the fraud scams at the direction of and in concert with his co-conspirator, with Trabert retaining a portion of each transaction as personal profit.

Judge Haines scheduled sentencing for January 14, 2025. The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $500,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Arnold P. Bernard Jr. is prosecuting this case on behalf of the government.

The United States Secret Service conducted the investigation that led to the prosecution of Trabert.

PITTSBURGH, Pa. - A husband and wife from Pittsburgh, Pennsylvania, pleaded guilty in federal court to obstructing law enforcement during a public gathering and protest in 2023, United States Attorney Eric G. Olshan announced today.

Krystal DiPippa, 42, pleaded guilty before United States District Judge J. Nicholas Ranjan to one count of obstruction of law enforcement during civil disorder, and her husband Brian DiPippa, 37, pleaded guilty to one count of conspiracy and one count of obstruction of law enforcement during civil disorder.

In connection with the guilty pleas, the Court was advised that the DiPippas participated in an April 2023 protest that occurred on the University of Pittsburgh campus, during which Brian DiPippa ignited and dropped two homemade smoke bomb containers in and around a line of people waiting to enter a building for a scheduled event featuring guest speakers. When university police officers gathered and formed a barrier to prevent protesters from entering the rear of the building, Brian DiPippa, concealed by his wife (Krystal), ignited and threw a large explosive firework into the group of officers, causing a loud explosion and injuries to several officers.

“The United States Attorney’s Office is dedicated to prosecuting individuals who physically attack our law enforcement partners,” said U.S. Attorney Olshan. “The DiPippas went to this event not for the purpose of having their voices heard in a protest, but instead for the purpose of using this protest as a means of cover so that they could disrupt the protest and conceal themselves in a crowd while carrying out a cowardly attack on police officers.”

“The FBI and our Joint Terrorism Task Force partners want to make it clear: we will not allow the rights protected by the First Amendment to be exploited as cover for individuals to carry out violent attacks on law enforcement,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “Peaceful protest is a right afforded to everyone under the Constitution, but not when used as a guise for injuring, maiming, and leaving lasting impacts to victims by launching explosives. These attacks had very real consequences, not only for these individuals, but also for the law enforcement officers who were violently targeted while trying to ensure public safety.”

Judge Ranjan scheduled sentencing for January 6, 2025. The law provides for a maximum sentence of up to five years in prison, a fine of up to $250,000, or both, as to each charge. Under the federal Sentencing Guidelines, the actual sentences imposed are based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Pending sentencing, the Court continued the detention of Brian DiPippa, who has been in custody since his June 30, 2023, arrest.

Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation; Federal Bureau of Investigation Joint Terrorism Task Force, of which the University of Pittsburgh Police is a member; Bureau of Alcohol, Tobacco, Firearms and Explosives, and Pittsburgh Bureau of Police conducted the investigation that led to the prosecution in this case.

JOHNSTOWN, Pa. – A resident of Peoria, Arizona, was sentenced in federal court to 102 months in prison, to be followed by four years of supervised release, on his conviction of conspiracy to distribute and possession with intent to distribute fentanyl, United States Attorney Eric G. Olshan announced today.

Senior United States District Judge Kim R. Gibson imposed the sentence on Colby Barrow, 30.

According to information presented to the Court, from in and around August 2021 to in and around June 2023, in the Western District of Pennsylvania, Barrow conspired with others to distribute and possess with intent to distribute 40 grams or more of a mixture and substance containing fentanyl. Barrow was intercepted on a federal wiretap obtaining quantities of fentanyl that he distributed to others.

Assistant United States Attorney Arnold P. Bernard Jr. prosecuted this case on behalf of the government.

United States Attorney Olshan commended the Federal Bureau of Investigation’s Laurel Highlands Resident Agency and Homeland Security Investigations for the investigation that led to the successful prosecution of Barrow. Additional agencies participating in this investigation include the Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, and other local law enforcement agencies.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal law regarding the sexual exploitation of a minor, United States Attorney Eric G. Olshan announced today.

The two-count Indictment named Ashok Panigrahy, 53, as the sole defendant.

According to the Indictment, in November 2022, Panigrahy transported and attempted to transport material depicting the sexual exploitation of a minor in interstate commerce, as well as possessed material depicting the sexual exploitation of a minor.

The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $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 Heidi M. Grogan is prosecuting this case on behalf of the government.

Homeland Security Investigations (Pittsburgh and Chicago) conducted the investigation leading to the Indictment.

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.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

PITTSBURGH, Pa. - A resident of New Castle, Pennsylvania, pleaded guilty in federal court to charges of conspiring to distribute fentanyl and fluorofentanyl, United States Attorney Eric G. Olshan announced today.

Kailin Stewart, 37, pleaded guilty before Senior United States District Judge Arthur J. Schwab to conspiring to distribute 40 grams or more of fentanyl and 10 grams or more of fluorofentanyl between May 2021 and October 2022.

Judge Schwab scheduled sentencing for January 8, 2025. The law provides for a total sentence of not less than five years and up to 40 years in prison, a fine of up to $5 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.

The Federal Bureau of Investigation, Pennsylvania Office of Attorney General, United States Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Lawrence County Drug Task Force, Mercer County Drug Task Force, New Castle Police Department, Sharon Police Department, and Pennsylvania State Police conducted the investigation that led to the prosecution of Stewart.

PITTSBURGH, Pa. - A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court on September 3, 2024, to a charge of conspiring to commit mail and wire fraud, United States Attorney Eric G. Olshan announced today.

Jonathan Freeze, 65, pleaded guilty to one count before United States District Judge Robert J. Colville.

In connection with the guilty plea, the Court was advised that Freeze and his co-conspirators, Robert Irey (deceased) and Kevin Carney, 62, of Euclid, Ohio, owned and ran a company called Alternative Energy Holdings, LLC (AEH). The defendants informed victims that AEH was going to build a plant that would convert biodegradable waste into green energy and offered victims an opportunity to invest in AEH. Specifically, Freeze and his co-conspirators solicited short-term loans that offered high interest rates and, in some cases, an ownership interest in AEH. Additionally, Freeze informed several victims that he personally guaranteed repayment of their loans, despite having insufficient funds to cover any of the guarantees. From approximately June 2016 until April 2018, approximately 22 victims loaned AEH $2,017,228.44. Freeze and his co-conspirators further told victims that their funds would be used for costs associated with building the plant and other business expenses. Instead, the defendants often split the victims’ funds three ways and used it for their personal benefit, including for gambling, high-end clothing, and restaurants. Despite the promise of a short-term repayment and personal guarantees, the co-conspirators did not repay the victims.

Judge Colville scheduled sentencing for January 22, 2025. The law provides for a total sentence of up to 20 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Both Irey and Carney pleaded guilty to the same charge, with Carney’s sentencing scheduled for December 5, 2024.

Assistant United States Attorneys Lee J. Karl and Heidi M. Grogan are prosecuting this case on behalf of the government.

The United States Postal Inspection Service and Federal Bureau of Investigation conducted the investigation that led to the prosecution of Freeze and his co-defendants.

PITTSBURGH, Pa. - A resident of Aliquippa, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of possession of a firearm and ammunition by a convicted felon, United States Attorney Eric G. Olshan announced today.

The one-count Indictment named Tyland Witherspoon, 27, as the sole defendant. Witherspoon was arrested on August 30, 2024, related to this federal charge.

According to the Indictment, on or about June 19, 2024, Witherspoon, who was previously convicted of a felony, was found to be in possession of a Glock 23 40 caliber pistol along with Smith & Wesson 40 caliber ammunition. Federal law prohibits possession of a firearm or ammunition by a convicted felon.

The law provides for a total sentence of up to 15 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.

Assistant United States Attorney Nicole A. Stockey is prosecuting this case on behalf of the government.

The Bureau of Alcohol, Tobacco, Firearms and Explosives and Pittsburgh Bureau of Police conducted the investigation leading to the Indictment.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
 

PITTSBURGH, Pa. - A former resident of West Mifflin, Pennsylvania, pleaded guilty in federal court on August 28, 2024, to charges of violating federal drug trafficking and firearms laws, United States Attorney Eric G. Olshan announced today. 

Giante Hilliard, 30, pleaded guilty to four counts before United States District Judge J. Nicholas Ranjan. During his plea hearing, Hilliard admitted facts related to three separate incidents in late March and late May of 2023 that led to the charges in this case. 

The first incident took place on March 28, 2023, when Hilliard was involved in an exchange of gunfire outside of a McKees Rocks, Pennsylvania, bar. Video of the incident shows that, moments after Hilliard and another individual left the bar and started to drive off, a third person shot at the car they occupied. Hilliard returned fire from the vehicle’s passenger seat, with several muzzle flashes visible in the video. 

In the second incident, on May 8, 2023, Hilliard was the passenger in a vehicle that law enforcement attempted to stop. Rather than complying, the driver rammed three law enforcement vehicles—allowing one of the officers to observe Hilliard with a black firearm—and sped off. Shortly after, law enforcement located the disabled vehicle abandoned near a convenience store. Nearby surveillance video showed the driver and Hilliard leaving the disabled vehicle together, and then splitting up, with Hilliard holding a black bag that he attempted to conceal under a dumpster. The black bag was recovered by law enforcement and found to contain a loaded Smith & Wesson handgun and approximately 300 doses of what laboratory results later confirmed was a heroin and fentanyl mixture. Ballistic testing of the handgun against nearly a dozen 40 caliber casings from the earlier March 28 shooting determined the firearm to be a match with the one used by Hilliard in that earlier incident. The gun previously had been reported stolen. Based on evidence recovered in connection with the May 8 incident, including analysis of cell phones seized from within the disabled vehicle, the government obtained an arrest warrant for Hilliard.

Finally, in the third incident, on May 31, 2023, Hilliard posted on social media a video of himself with another firearm. Based on information from that video and other evidence gathered during the investigation, the government obtained a search warrant for a residence where Hilliard was hiding out and the vehicle that he had been driving. Law enforcement surrounded the house, but Hilliard refused to come out until several hours after officers fired multiple rounds of tear gas into the home. A subsequent search of the residence resulted in the seizure of a box of ammunition from a kitchen drawer and 100 stamp bags in a kitchen cabinet. The bags were marked with the same logo in the same colors of ink as those found in the black bag on May 8, and contained a heroin and fentanyl mixture similar to the May 8 drugs. In the vehicle, investigators also discovered yet another loaded firearm—a “ghost gun” without a serial number. 

Prior to these incidents, Hilliard had previously been convicted of a number of other felony offenses, including aggravated assault, possession of unlicensed firearms, and terroristic threats. Federal law prohibits possession of a firearm or ammunition by a convicted felon.

Hilliard pleaded guilty to being a felon in possession of a firearm and ammunition in connection with the March 28 incident; possession with intent to distribute heroin and fentanyl as well as possession of a firearm in furtherance of a drug trafficking crime in relation to the May 8 incident; and being a felon in possession of ammunition on May 31. The law provides for a total sentence of not less than five years and up life in prison, a fine of up to $1,750,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.

Assistant United States Attorneys Brendan T. Conway and Douglas C. Maloney are prosecuting this case on behalf of the government.

The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Hilliard, along with officers from the Pittsburgh Bureau of Police, Allegheny County Police Department, Homestead Police Department, West Homestead Police Department, and McKees Rocks Police Department. 

PITTSBURGH, Pa. - A resident of McKeesport, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating a federal firearms law, United States Attorney Eric G. Olshan announced today.

The one-count Indictment named Desmond Dontae Lee, also known as Desmond Donte Lee Belton, 46, as the sole defendant.

According to the Indictment, on or about March 1, 2023, Lee possessed ammunition after having been convicted of three prior felonies, including for drug trafficking and firearms charges. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition. Lee was found in possession of the ammunition as part of an investigation into a March 1, 2023, shooting at a McKeesport apartment complex during which two people were killed and another injured.

The law provides for a maximum total sentence of up to 15 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant. 

Assistant United States Attorney V. Joseph Sonson is prosecuting this case on behalf of the government.

The Allegheny County Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Indictment.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

PITTSBURGH, Pa. - After deliberating for approximately five hours, a federal jury found Pittsburgh resident Durrell Waters guilty of five counts of money laundering and conspiracy in connection with the sale and interstate transportation of stolen goods, United States Attorney Eric G. Olshan announced today.
 
Waters, 41, was tried before Chief United States District Judge Mark R. Hornak in Pittsburgh. He was found guilty of one count of conspiracy and four counts of money laundering. 

According to evidence presented during the two-and-a-half-week trial, Waters was one of the primary owners of a series of second-hand or resale businesses called Trader Electronics, Last Call Entertainment, and The Outlet. Waters conspired with others to use these businesses as a front for a criminal fencing operation that sold over the internet a wide variety of health and beauty aids and over-the-counter medications. 

From 2013 through 2016, retailers in the greater Pittsburgh area experienced a drastic uptick in the volume of thefts occurring at their stores. The investigation into those thefts led to the discovery that Waters’s stores and similar stores in the area engaged in high-volume purchases of brand-new retail health and beauty aids and other products, such as new-release DVDs, from walkin sellers who had shoplifted the items. The evidence established that, throughout this time, Waters and his co-conspirators knew that the vast majority of the products they were buying were stolen. The health and beauty aids included items like teeth whiteners, vitamins, hair and skin care products, makeup, and other similar items. Store records reflected that Waters and his businesses purchased hundreds of thousands of brand-new items from a group of repeat shoplifters. Waters and his businesses then resold that stolen property online via several Amazon and eBay storefronts, with the proceeds from the stores’s main Amazon account totaling over $4.3 million during the conspiracy.
 
Walk-in sellers to the Trader Electronics stores, several of whom testified during the trial, were often people experiencing drug addiction who would routinely steal large amounts of the products to fund their addiction by selling them at Waters’s and his co-conspirators’ stores. In addition to knowing that the items were stolen when purchasing them, Waters on several occasions bailed some of those same so-called “boosters” out of jail following their arrests for stealing goods and allowed the individuals to repay him the bail money in the form of other stolen goods.
 
“Durrell Waters and his conspirators brazenly used their second-hand stores as a front for fencing massive amounts of shoplifted retail products—some with the store identification and security stickers still intact—that they then turned around and sold for millions of dollars to online customers across the United States,” said U.S. Attorney Olshan. “To pull off their scheme, they relied on desperate people deep in the throes of addiction to maintain the flow of stolen goods, using them to steal from and ultimately undercut legitimate retailers. The ‘boosters’ in this case were reportedly lined up down the street outside Waters’s stores in the morning—waiting to get their first cash of the day so they could pay their dealers. This successful prosecution is the result of a regional effort involving the cooperation of many local law enforcement agencies, as well as the IRS, FBI, and U.S. Postal Inspection Service. We are committed to holding accountable those who would exploit the opioid epidemic as a way to line their pockets.”

“Today’s verdict reflects that those who commit financial crimes such as money laundering, and who steal and profit from money to which they were not entitled, will be held accountable,” said IRS-CI Philadelphia Field Office Acting Special Agent in Charge Denise Leuenberger. “It should also serve as notice to others not to take part in similar unlawful conduct.” 

“Legitimate businesses and the greater community suffer when fraud and money laundering take place,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “The ripple effect of consequences from these criminal acts undermines the foundations of fairness and trust in the economy. The FBI and our partners continue to work diligently to investigate and bring to justice those who feel they can get ahead through criminal means.”

Waters’s date of sentencing will be determined by the Court. The law provides for a maximum sentence of ten years in prison and a fine of $250,000 on each money laundering count. The conspiracy offense carries a maximum sentence of five years in prison and a fine of $250,000 or twice the gross pecuniary gain associated with the offense, whichever is greater. Under the federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant. 

Waters’s co-defendant and co-owner of the various resale shops, Anthony Costanzo, 35, of Carnegie, Pennsylvania, pleaded guilty on July 24, 2024, to four counts of engaging in monetary transactions involving property from an unlawful act. His sentencing is scheduled for December 17, 2024.

Waters is the eighth and final resale store owner to be found guilty of similar schemes that occurred during the same time and were part of the same investigation. Thach Duc Le, Milton Barr, Shane McFall, Michael McDavid, Qamar Zaman, and Aliya Zaman all pleaded guilty to similar charges related to stores affiliated either with Waters and Costanzo or another entity known as Ninja Entertainment.

Assistant United States Attorneys James R. Wilson and Benjamin C. Dobkin are prosecuting the case on behalf of the government. 

The Internal Revenue Service - Criminal Investigation, Federal Bureau of Investigation, and United States Postal Inspection Service conducted the investigation that led to the prosecution of Waters. Police departments from the City of Pittsburgh, Ross Township, and Shaler Township also assisted in the investigation.
 

JOHNSTOWN, Pa. – A resident of Indiana, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.

Lamar Johnson, 42, pleaded guilty before Senior United States District Judge Kim R. Gibson.

In connection with the guilty plea, the Court was advised that, from in and around August 2018 to March 2023, in the Western District of Pennsylvania, Johnson conspired with others to distribute and possess with intent to distribute 500 grams or more of cocaine, a quantity of heroin, and a quantity of crack cocaine. Johnson was intercepted on a federal wiretap obtaining quantities of the drugs that he distributed to others.

Following the guilty plea, Judge Gibson sentenced Johnson to 60 months in prison, to be followed by four years of supervised release.

Assistant United States Attorney Arnold P. Bernard Jr. is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation’s Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation that led to the prosecution of Johnson. Additional agencies participating in this investigation include the Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, and other local law enforcement agencies.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

ERIE, Pa. - A resident of Cambridge Springs, Pennsylvania, was sentenced in federal court on August 23, 2024, to two years in prison on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Eric G. Olshan announced today.

United States District Judge Susan Paradise Baxter imposed the sentence on Conrad Troy Shearer, 50.

According to information presented to the Court, from in and around June 2017 to March 2019, Shearer possessed visual images depicting prepubescent minors engaging in sexually explicit conduct.

Assistant United States Attorney Molly W. Anglin prosecuted this case on behalf of the government.

United States Attorney Olshan commended Homeland Security Investigations for the investigation leading to the successful prosecution of Shearer.

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 (CEOS), 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.

JOHNSTOWN, Pa. – A resident of Leechburg, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.

Ernest Clinton, 42, pleaded guilty before Senior United States District Judge Kim R. Gibson.

In connection with the guilty plea, the Court was advised that, from in and around August 2018 to March 2023, in the Western District of Pennsylvania, Clinton conspired with others to distribute and possess with intent to distribute 500 grams or more of a mixture and substance containing cocaine. Clinton was intercepted on a federal wiretap obtaining cocaine that he distributed to others.

Judge Gibson scheduled sentencing for January 14, 2025. The law provides for a total sentence of not less than five years and up to 40 years in prison, a fine of up to $5 million, 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 Arnold P. Bernard Jr. is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation’s Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation that led to the prosecution of Clinton. Additional agencies participating in this investigation include the Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, and other local law enforcement agencies.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

PITTSBURGH, Pa. – A resident of Farrell, Pennsylvania, has been sentenced to 235 months in federal prison on his conviction of fentanyl, heroin, and cocaine trafficking crimes, United States Attorney Eric G. Olshan announced today.

United States District Judge Cathy Bissoon imposed the sentence on Quinton Pinkins, 39, also ordering Pinkins to serve six years of supervised release following his prison sentence. Pinkins previously pleaded guilty in this case to conspiring to distribute at least 400 grams of fentanyl, 100 grams of heroin, and 500 grams of cocaine between June 2020 to June 2021, and to distributing fentanyl within 1,000 feet of public playground and housing authority properties on May 27, 2021.

According to information presented to the Court, Pinkins was a leader of a drug trafficking organization in Mercer County, Pennsylvania, and was responsible for the distribution of 1.2 kilograms of fentanyl, 100 grams of heroin, and 500 grams of cocaine during 2020 and 2021. The Court was further informed that, by May 2021, Pinkins was aware that his fentanyl dealing had resulted in the recent death of one of his customers and the hospitalization of another, but continued dealing the drug in Mercer County and even expanded his fentanyl dealing to Erie County. Prior to 2020, Pinkins had been convicted for heroin and cocaine trafficking and sentenced to incarceration in two separate Pennsylvania prosecutions in 2009 and 2018.

Assistant United States Attorneys Craig W. Haller and Benjamin C. Dobkin prosecuted this case on behalf of the United States.

United States Attorney Olshan commended the Federal Bureau of Investigation, Drug Enforcement Administration, Pennsylvania Office of Attorney General, Bureau of Alcohol, Tobacco, Firearms and Explosives, Pennsylvania State Police, Lawrence County Drug Task Force, Mercer County Drug Task Force, New Castle Police Department, Sharon Police Department, Hermitage Police Department, and Farrell Police Department for the investigation leading to the successful prosecution of Pinkins.

This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

JOHNSTOWN, Pa. – A resident of Johnstown, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.

Rodney Smith, 68, pleaded guilty to Count One of the Superseding Indictment before Senior United States District Judge Kim R. Gibson.

In connection with the guilty plea, the Court was advised that, from in and around January 2021 to in and around June 2021, in the Western District of Pennsylvania, Smith conspired with others to distribute and possess with intent to distribute quantities of heroin, cocaine, and cocaine base in the form commonly known as crack. Smith was intercepted on a federal wiretap obtaining quantities of the drugs that he distributed to others.

Judge Gibson scheduled sentencing for January 13, 2025. The law provides for a total sentence of up to 20 years in prison, a fine of up to $1 million, 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 Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation’s Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation that led to the prosecution of Smith. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, Pennsylvania Office of Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department, and other local law enforcement agencies.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating a federal firearms law, United States Attorney Eric G. Olshan announced today.

The one-count Indictment named Keith Harris, 25, as the sole defendant.

According to the Indictment, on June 11, 2024, Harris possessed a firearm and ammunition. Harris has a number of prior felony convictions, including a 2022 conviction as a felon in possession of firearm and/or ammunition. Federal law prohibits possession of a firearm or ammunition by a convicted felon.

The law provides for a maximum sentence of up to 15 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.

Assistant United States Attorney Kelly M. Locher is prosecuting this case on behalf of the government.

The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Indictment.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
 

PITTSBURGH, Pa. - After the conclusion of a non-jury trial, a federal judge on August 22, 2024, found James Taric Byrd guilty of one count of contempt of court by misbehavior that obstructs the administration of justice and one count of assault for striking his court-appointed attorney in a courtroom at the Joseph F. Weis Jr. U.S. Courthouse, United States Attorney Eric G. Olshan announced today.

Byrd, 47, formerly of Pittsburgh, Pennsylvania, was tried before United States District Judge Robert J. Colville in Pittsburgh. Byrd is currently serving a life sentence plus 20 years of incarceration on a 2022 conviction for violating federal narcotics and firearm laws.

The evidence presented at trial established that, on July 18, 2022, while Byrd was in trial before another federal judge on unrelated charges, Byrd struck his attorney in the head. The defendant’s assaultive conduct disrupted and delayed the trial proceedings and obstructed the orderly administration of justice. The Court also heard evidence suggesting that the defendant’s motive in striking his attorney was to prompt a mistrial and delay the 2022 jury trial proceedings.

Four months after his January 2023 sentencing of life imprisonment, Byrd was tried and found guilty by a federal jury of one count of possession of contraband in prison. He subsequently was sentenced to an additional eight months of incarceration on that May 2023 conviction.

Judge Colville scheduled sentencing for Byrd’s contempt of court and assault conviction for December 18, 2024. Byrd will remain in custody pending sentencing. The law provides for a maximum sentence of up to life in prison, a fine, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history of the defendant.

Assistant United States Attorneys DeMarr W. Moulton and Soo C. Song prosecuted the case on behalf of the government.

The United States Marshals Service conducted the investigation that led to the prosecution of Byrd.

JOHNSTOWN, Pa. – A resident of Houtzdale, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.

Joanna Shylock, 36, pleaded guilty to Count Two of the Superseding Indictment before Senior United States District Judge Kim R. Gibson.

In connection with the guilty plea, the Court was advised that, from in and around March 2020 to in and around April 2020, in the Western District of Pennsylvania, Shylock conspired with others to distribute a quantity of a mixture and substance containing methamphetamine. Shylock was intercepted on a federal wiretap obtaining quantities of the drugs that she distributed to others.

Judge Gibson scheduled sentencing for January 22, 2025. The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $1 million, 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 Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.

The Drug Enforcement Administration and Pennsylvania State Police conducted the investigation that led to the prosecution of Shylock. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

PITTSBURGH, Pa. – A resident of Wexford, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of attempting to transmit obscene material to a minor and attempting to induce a minor to engage in sexual activity, United States Attorney Eric G. Olshan announced today.

The four-count Indictment named Albert Maximillian Jeremias, 79, as the sole defendant.

According to the Indictment, on multiple occasions between January 2023 and May 2023, Jeremias made contact via internet chats with undercover agents in the Pittsburgh, Pennsylvania; Santa Fe, New Mexico; and Coral Gables, Florida, areas who he believed were young girls between the ages of 12 and 15. During those conversations, Jeremias sent pornographic photographs and livestream images of himself to the undercover agents and requested that the agents send sexually explicit pictures of themselves to him, even sending one of them a $50 gift card as enticement.

The law provides for a maximum total sentence of up to 10 years in prison, a fine of up to $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 Jacqueline C. Brown is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation and Northern Regional Police Department conducted the investigation leading to the Indictment.

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 (CEOS), 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.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

JOHNSTOWN, Pa. – A resident of Philadelphia, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.

James Pearcy, 60, pleaded guilty to Count One of the Superseding Indictment before Senior United States District Judge Kim R. Gibson on August 20, 2024.

In connection with the guilty plea, the Court was advised that, from in and around January 2021 to in and around June 2021, in the Western District of Pennsylvania, Pearcy conspired with others to distribute and possess with intent to distribute 500 grams or more of cocaine. Pearcy was intercepted on a federal wiretap obtaining quantities of cocaine that he distributed to others.

Judge Gibson scheduled sentencing for January 6, 2025. The law provides for a total sentence of no less than five years and up to 40 years in prison, a fine of up to $5 million, 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 Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation’s Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation that led to the prosecution of Pearcy. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, Pennsylvania Office of Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department, and other local law enforcement agencies.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

JOHNSTOWN, Pa. – A resident of Johnstown, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.

Amanda Weidner, 40, pleaded guilty to Count One of the Superseding Indictment before Senior United States District Judge Kim R. Gibson.

In connection with the guilty plea, the Court was advised that, from in and around February 2021 to in and around June 2021, in the Western District of Pennsylvania, Weidner conspired with others to distribute and possess with intent to distribute quantities of heroin and cocaine base. Weidner was intercepted on a federal wiretap obtaining quantities of the drugs that she distributed to others.

Judge Gibson scheduled sentencing for January 7, 2025. The law provides for a total sentence of up to 20 years in prison, a fine of up to $1 million, 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 Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation’s Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation that led to the prosecution of Weidner. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, Pennsylvania Office of Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department, and other local law enforcement agencies.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

PITTSBURGH, Pa. – A former resident of Crafton, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics and money laundering laws, United States Attorney Eric G. Olshan announced today.

Andrew Beatty, 40, pleaded guilty to two counts before United States District Judge Cathy Bissoon: conspiring to distribute five kilograms or more of cocaine and one kilogram or more of heroin, and conspiring to commit money laundering. Beatty has a prior federal drug trafficking conviction from 2007 for which he was sentenced to 78 months in prison.

In connection with the guilty plea, the Court was advised that communications intercepted on federal wiretaps by law enforcement between September 2013 and March 2014 revealed that Beatty was obtaining kilogram quantities of heroin and cocaine from a Mexican drug trafficking organization, communicating directly with an unidentified Mexican male known only as “Guero.” Guero arranged for heroin and cocaine to be hidden in vehicles in California and then transported to Pittsburgh and several other cities via car carrier trucks. Beatty, with the assistance of conspirators, would receive the cars and unload the heroin and cocaine, and also sell the drugs to other individuals, who further distributed the drugs throughout Western Pennsylvania. Once the drugs were sold, Beatty, again with the assistance of co-conspirators, hid the money in vehicles that he shipped to the Mexican organization in California. Often, the vehicles involved were older model Acura sedans equipped with sophisticated concealed compartments with hydraulic arms that were opened through a series of actions.

In December 2013, DEA agents arranged for the Ohio Highway Patrol to conduct a traffic stop of a car carrier truck based on information obtained through Beatty’s intercepted communications. The truck was carrying a car that Beatty had shipped to the Mexican organization in California, a search of which resulted in the seizure of approximately $130,000 in U.S. currency.

On January 12, 2014, and again on February 9, 2014, an undercover DEA agent posing as a money courier received from Beatty and his associates approximately $225,000 (on each occasion). The money was then deposited into bank accounts specified by the Mexican organization.

In early March 2014, agents intercepted communications between Guero and Beatty that revealed a car containing cocaine had been shipped to Pittsburgh and left in a parking lot for Beatty. On March 5, 2014, the agents located and towed the car before Beatty had the opportunity to retrieve it. A search warrant was executed, resulting in the seizure of approximately six kilograms of cocaine hidden in metal containers bolted to the wheels inside of the tires.

On March 19, 2014, agents executed search warrants, along with arrest warrants for Beatty and others, and seized approximately $400,000 in cash, the bulk of which was found in Beatty’s storage locker. A search of a conspirator’s residence resulted in the seizure of approximately 40 bricks of heroin and $40,000 in cash. During the execution of the search warrant at Beatty’s home, Beatty showed the agents how to open the concealed compartment of a silver Acura located at the residence, the only contents of which was marijuana, and claimed that he had sold the gold Acura for which the agents also had a warrant.

The following day, agents located the gold Acura belonging to Beatty parked on a city street near a conspirator’s home. The vehicle had an anti-theft steering wheel lock, the key to which, along with the key to the car itself, was found in Beatty’s residence on March 19. The agents also had observed Beatty move the same vehicle the previous night via a pole camera they had installed outside of Beatty’s residence. Upon the execution of a search warrant for the vehicle, agents found approximately 3.5 kilograms of heroin, three firearms, and four cell phones belonging to Beatty inside of a trap compartment in the door panel, which opened in the same unique manner that Beatty showed the agents on the silver Acura located at his residence the previous day. A later search of those cellular telephones revealed that they were among the cellular telephones that were intercepted during the wiretaps, as well as other incriminating evidence.

Judge Bissoon scheduled sentencing for December 17, 2024. The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of up to $10 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.

Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.

The Drug Enforcement Administration, Homeland Security Investigations, Internal Revenue Service-Criminal Investigation, Pittsburgh Bureau of Police, Baldwin Police Department, Munhall Police Department, Scott Township Police Department, Allegheny County Police Department, Pennsylvania State Police, Duquesne Police Department, West Homestead Police Department, and Ohio Highway Patrol conducted the investigation that led to the prosecution of Beatty.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.

The one-count Indictment named Eric Gerome Clancy, 38, of Pittsburgh’s East Hills neighborhood as the sole defendant.

According to the Indictment, on or about May 15, 2024, Clancy knowingly possessed with intent to distribute crack cocaine, powder cocaine, and a mixture containing methamphetamine and fentanyl. Following a stop for traffic violations by Mt. Lebanon police and subsequent search of Clancy’s vehicle, officers discovered nine “bricks” containing a mixture of methamphetamine and fentanyl. Officers also recovered from the vehicle several ounces of crack and powder cocaine, as well as a scale, in addition to finding a large amount of U.S. currency on Clancy.

At the time of the offense, Clancy was on federal supervised release following a 90-month sentence in federal prison for a drug trafficking and firearms conviction.

The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $1 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.

Assistant United States Attorney V. Joseph Sonson is prosecuting this case on behalf of the government.

The Mt. Lebanon Police Department and Drug Enforcement Administration conducted the investigation leading to the Indictment.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

JOHNSTOWN, Pa. – Two residents of Clearfield County, Pennsylvania, Clint Addleman, 47, and Kris Joseph Nevling, 47, have been indicted by a federal grand jury in Johnstown on charges of conspiracy to maliciously destroy property by explosive or fire and possession of an unregistered destructive device, United States Attorney Eric G. Olshan announced today. Addleman is also charged with malicious destruction of property by explosive or fire resulting in death, and conspiracy to distribute methamphetamine. The four-count Superseding Indictment was returned today against Addleman of Morrisdale, Pennsylvania, and Nevling, of Houtzdale, Pennsylvania.

According to the Superseding Indictment, Addleman was a drug dealer operating in and around Clearfield, Pennsylvania, who obtained large quantities of methamphetamine, a Schedule II controlled substance, from one or more sources of supply and sold and redistributed the methamphetamine to his customers, including co-defendant Nevling and a Clearfield resident identified as S.L.C. In and around the summer of 2019, Addleman “fronted” several hundred dollars’ worth of methamphetamine to S.L.C.—i.e., he provided the drugs to S.L.C. without an upfront payment. As alleged, S.L.C. did not repay the drug debt owed to Addleman during the following months. On multiple occasions, Addleman allegedly threatened violence against S.L.C. in connection with her failure to repay him.

The Superseding Indictment further alleges that, in and around early October 2019, Nevling and Addleman aided and abetted each other in the construction and possession of a destructive device—a bomb—which was subsequently concealed inside a package addressed to S.L.C. using her nickname. In the early morning hours of October 4, 2019, the package containing the bomb, pictured below, was delivered to a multi-unit rental property in Clearfield, where S.L.C. rented an apartment on the first floor.

Later that morning, the bomb detonated inside S.L.C.’s apartment, killing S.L.C. and causing significant damage to the property, including by fire. A picture of the building after the fire was extinguished appears below:

“As alleged, Clint Addleman and Kris Joseph Nevling were responsible for building a bomb that was used to murder one of Addleman’s methamphetamine customers and almost completely leveled the building where she lived,” said U.S. Attorney Olshan. “This conduct—involving lethal retaliation over nothing more than an outstanding drug debt—shocks the conscience and has no place in our communities or anywhere else. We stand shoulder to shoulder with our law enforcement partners in our shared commitment to investigate and prosecute those whose conduct presents such a clear and present danger to others, whether in the form of distributing illegal drugs, building and detonating deadly bombs, or, in this case, both.”

“Our ATF Special Agents worked tirelessly alongside our federal, state, and local partners to seek justice in this brutal murder case,” said Eric DeGree, Special Agent in Charge of ATF’s Philadelphia Field Office. “The perpetrators tried to hide their crime through the illegal use of explosives, but using our unique forensic tools, we were still able to recover the evidence that ultimately indicted them.”

The law provides for a sentence of up to life in prison, a fine of up to $1 million for Addleman and $250,000 for Nevling, 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.

Addleman is currently incarcerated serving an unrelated state sentence, and Nevling remains detained after being arrested on his original Indictment last fall.

Assistant United States Attorneys Maureen Sheehan-Balchon and Shaun E. Sweeney are prosecuting this case on behalf of the government.

The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Superseding Indictment.

A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

PITTSBURGH, Pa. – A resident of McKees Rocks, Pennsylvania, was sentenced in federal court on August 15, 2024, to 12 years of prison on his convictions for possession with intent to distribute 50 grams or more of a mixture containing methamphetamine and fentanyl, possessing a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon, United States Attorney Eric G. Olshan announced today.

Senior United States District Judge Nora Barry Fischer imposed the sentence on Reginald Bernard Blunt, 32.

According to information presented to the Court, an investigation by the Federal Bureau of Investigation and Pennsylvania State Police between August 2022 and June 2023 into a drug trafficking organization operating in McKees Rocks revealed that Blunt was a member of the organization and lived at a residence where firearms and controlled substances were being stored. On June 14, 2023, law enforcement executed a federal search warrant upon that residence and recovered from Blunt’s bedroom a backpack containing two prescription pill bottles bearing Blunt’s name, a loaded handgun containing 17 rounds of ammunition, and a “Glock switch” that, when attached to the handgun, would render the firearm fully automatic. Law enforcement also recovered from the residence approximately 60 grams of a fentanyl and methamphetamine mixture, 20 grams of fentanyl, and approximately 1,000 rounds of ammunition, in addition to seizing $4,300.

The firearm recovered by law enforcement was determined to be the same one that Blunt—who has previous felony drug trafficking and firearms convictions—had used just before law enforcement responded to a call at Blunt’s residence nearly one month earlier, where it was reported that two individuals were fighting and that one of the individuals possessed a gun. Traffic camera footage of this May 16, 2023, incident obtained by investigators in preparation for the federal search warrant revealed Blunt repeatedly pointing a firearm at an adult male who was accompanied by a child, with the adult carrying the child while ducking behind a vehicle to avoid Blunt as he pointed the firearm. The footage further recorded Blunt permitting the adult to place the child in the vehicle before Blunt brought the individual back to his residence, where, on the porch, the two males began exchanging punches. Federal law prohibits possession of a firearm or ammunition by a convicted felon.

Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.

United States Attorney Olshan commended the Federal Bureau of Investigation and Pennsylvania State Police for the investigation leading to the successful prosecution of Blunt.

PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, was sentenced in federal court on August 15, 2024, to 15 years of imprisonment on his convictions for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl, 100 grams or more of fluorofentanyl, and 500 grams or more of cocaine, as well as to possess with intent to distribute a quantity of fentanyl, United States Attorney Eric G. Olshan announced today.

United States District Judge William S. Stickman IV imposed the sentence on Andre Nunley, 50.

According to information presented to the Court, between June 2022 and December 2023, Nunley was the subject of a joint investigation by federal, state, and local law enforcement operating under the High Intensity Drug Trafficking Areas (HIDTA) program in Beaver County. As part of the investigation, law enforcement seized over 500 grams of cocaine from a mid-level drug dealer as he left a brief meeting with Nunley. In January 2023, law enforcement executed federal search warrants upon both of Nunley’s known stash houses, resulting in the seizure of approximately 15,000 counterfeit oxycodone pills, 4,200 stamp bags, 40 boxes containing empty glassine bags, and bulk U.S. currency. A laboratory confirmed that the seized substances contained about 1,352 grams of fentanyl, 797 grams of a fluorofentanyl and fentanyl mixture, and 199 grams of fluorofentanyl. Fluorofentanyl and fentanyl are Schedule I and II controlled substances, respectively.

Following that seizure, law enforcement continued to investigate Nunley’s drug trafficking operation and identified a third residence used by Nunley. In December 2023, law enforcement intercepted a parcel addressed to that residence, which contained about two kilograms of fentanyl. During a controlled delivery operation of the seized parcel to the third residence, law enforcement encountered Nunley, who confessed to expecting a parcel containing drugs.

Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.

United States Attorney Olshan commended the Drug Enforcement Administration, Pennsylvania Office of Attorney General, and United States Postal Inspection Service for the investigation leading to the successful prosecution of Nunley.

PITTSBURGH, Pa. – A former resident of Oxnard, California, was sentenced in federal court on August 14, 2024, to five years of imprisonment on his conviction for conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine, United States Attorney Eric G. Olshan announced today.

United States District Judge W. Scott Hardy imposed the sentence on Christopher Andrew Salgado, 24.

According to information presented to the Court, between March 2022 and September 2022, an Organized Crime Drug Enforcement Task Force (OCDETF) conducted an investigation into a drug trafficking organization operating in the Western District of Pennsylvania. The investigation revealed that a cocaine source of supply in California would mail parcels containing kilogram quantities of cocaine to a residence in Aliquippa, Pennsylvania. After investigators seized a parcel containing two kilograms of cocaine before it reached the Aliquippa residence, the source of supply began sending the parcels to Salgado in West Virginia. Thereafter, mobile and electronic surveillance confirmed that Salgado would drive the parcels from West Virginia to the Pittsburgh International Airport, pick-up co-defendant Jose Sanchez, who would arrive on flights from California, and transport both the parcel and Sanchez to another co-defendant, Romaro Foster Sr., in Aliquippa.

Following one re-supply of cocaine to Foster, law enforcement followed Salgado as he drove Sanchez back to the Pittsburgh airport, and observed Salgado dispose of a box in the trash of a fast food restaurant parking lot. Investigators recovered the box, observing a shipping label with Salgado’s West Virginia address as well as drug packaging material within the box. A field test of the packaging revealed the presence of cocaine.

In August 2022, investigators seized a parcel sent from California to Salgado in West Virginia. The parcel contained approximately two kilograms of cocaine. Investigators conducted a controlled delivery operation of the parcel at Salgado’s residence, executing a federal search warrant at the residence in conjunction with the operation. From Salgado’s bedroom, investigators recovered a separate parcel sent from California to Salgado containing approximately two kilograms of cocaine, along with a loaded 9mm handgun, an empty pistol magazine, a box of ammunition, and a digital scale.

Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.

United States Attorney Olshan commended the Department of Homeland Security, U.S. Postal Inspection Service, and Drug Enforcement Administration for the investigation leading to the successful prosecution of Salgado.

This prosecution is part of an OCDETF investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

PITTSBURGH, Pa. - Two residents of Myrtle Beach, South Carolina, each were sentenced in federal court on August 13, 2024, to a one-year term of probation, including 100 hours of community service, and ordered to pay a fine of $50,000 along with $403,142 in restitution to the U.S. Department of Veterans Affairs following their guilty pleas to committing a major fraud against the United States, United States Attorney Eric G. Olshan announced today.

United States District Judge William S. Stickman IV imposed the sentences on Edward DiGorio Jr., 66, and Edward Kessler, 69. Both men formerly resided in Pittsburgh, Pennsylvania.

According to information presented to the Court in connection with the defendants’ earlier guilty pleas, DiGorio and Kessler were the owners of two construction companies, ADDVETCO, Inc., and Hi-Def Contracting, Inc., operating in Pittsburgh. DiGorio and Kessler formed the companies for the purpose of bidding on and acquiring “set-aside” contracts issued by the United States Department of Veterans Affairs (VA) to small businesses owned and operated by service-disabled veterans of the U.S. military and pre-certified by the VA as Service-Disabled Veteran-Owned Businesses (SDVOBs). Neither DiGorio nor Kessler had served in the military, nor were they service-disabled. DiGorio and Kessler executed a classic “Rent-A-Vet” scheme, in which they paid service-disabled veterans to falsely represent themselves as the primary owners and operators of ADDVETCO and Hi-Def, and to falsely attest to ownership of the companies on critical documents submitted to the VA as part of the SDVOB certification process. During the period of 2007 to 2018, ADDVETCO and Hi-Def were awarded 67 contracts that were intended for SDVOBs, 50 of which were valued at $1 million or more. The two charges to which DiGorio and Kessler each pleaded guilty in March 2024 arose from the two most recent contracts awarded to the companies, for which the defendants received more than $400,000 in profits.

“For more than a decade, the defendants in this case cheated a laudable and important program established by the U.S. Department of Veterans Affairs and designed to benefit service-disabled veterans,” said U.S. Attorney Olshan. “DiGorio and Kessler profited shamelessly while defrauding the United States government and depriving many deserving veterans of the opportunity to perform lucrative construction work for the government. We are grateful for the important law enforcement partnerships that helped bring the defendants’ scheme to light and hold them accountable under federal law.”

“These sentencings hold the defendants accountable for their role in an elaborate scheme to fraudulently obtain millions of dollars in government contracts from programs designed to benefit service-disabled veteran business owners,” said Special Agent in Charge Kim R. Lampkins of the Department of Veterans Affairs – Office of Inspector General’s Mid-Atlantic Field Office. “The VA OIG remains committed to diligently pursuing these cases in an effort to maintain the integrity of VA programs. The VA OIG thanks the U.S. Attorney’s Office for the Western District of Pennsylvania and the FBI for their partnership in this joint investigation.”

“The actions of these two individuals to manipulate a system meant to help honest, legitimate veteran-owned businesses not only defrauded the government, but also undermines the integrity of these programs,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “The FBI and our partners will not tolerate the exploitation of the honor and sacrifice of those who have served for personal gain.”

In imposing the sentences, Judge Stickman emphasized the serious nature of the defendants’ offenses and their shameful disregard for the disabled servicemembers who had served their country, characterizing the defendants’ conduct as akin to “stolen valor.” Judge Stickman further opined that he viewed the defendants’ crimes as driven by “greed and pride.”

Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.

United States Attorney Olshan commended the Federal Bureau of Investigation and U.S. Department of Veterans Affairs – Office of Inspector General for the investigation leading to the successful prosecution of DiGorio and Kessler.

PITTSBURGH, Pa. - A resident of Rockwood, Pennsylvania, has been sentenced in federal court to one year and one day in prison, to be followed by one year of supervised release, and ordered to pay a fine of $40,000 and restitution of $207,378 (which has already been paid) to the Internal Revenue Service on his conviction of tax evasion and filing false income tax returns, United States Attorney Eric G. Olshan announced today.

United States District Judge Cathy Bissoon imposed the sentence on Jason R. Svonavec, 45.

According to information presented to the Court, Svonavec evaded tax liability in 2017 by illegally expensing the construction of his home in Somerset, Pennsylvania, through entities he operates called Heritage Coal and Natural Resources LLC and Banshee Crane. In 2018, he filed a tax return reporting false tax deductions for Heritage Coal.

Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.

United States Attorney Olshan commended the Internal Revenue Service for the investigation leading to the successful prosecution of Svonavec.

PITTSBURGH, Pa. – A resident of Moon Township, Pennsylvania, pleaded guilty in federal court to a charge of willfully filing a false tax return, United States Attorney Eric G. Olshan announced today.

Albert Boyd Jr., 53, pleaded guilty to one count before Senior United States District Judge Arthur J. Schwab.

In connection with the guilty plea, the Court was advised that, for each year from 2017 to 2022, Boyd failed to report income from his company, Boyd Roll-Off Services, Inc., on the business’s tax return for the relevant tax year, causing a total tax loss of at least $1,030,000. Specifically, Boyd ensured that much of the company’s income from the sale of scrap metal went unreported by causing cash proceeds not to be deposited in the business bank account and causing checks to be deposited into accounts other than the business bank account. Boyd then failed to provide his tax return preparer with records relating to the undeposited cash and diverted checks.

Judge Schwab scheduled sentencing for December 17, 2024. The law provides for a total sentence of up to three years in prison, a fine of up to $250,000 or twice the pecuniary gain or loss of the offense, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney William B. Guappone is prosecuting this case on behalf of the government.

The Internal Revenue Service conducted the investigation that led to the prosecution of Boyd.

JOHNSTOWN, Pa. – A resident of Phoenix, Arizona, was sentenced in federal court to 180 months in prison, to be followed by five years of supervised release, on his convictions of conspiracy to distribute and possession with intent to distribute cocaine, fentanyl, and methamphetamine, and conspiracy to commit money laundering, United States Attorney Eric G. Olshan announced today.

Senior United States District Judge Kim R. Gibson imposed the sentence on Jairo Morales, 22, on August 8, 2024. Morales was one of 35 defendants charged through a Second Superseding Indictment unsealed in January for their participation in a domestic and international narcotics and money laundering conspiracy involving substantial quantities of fentanyl, methamphetamine, and cocaine.

According to information presented to the Court, from in and around August 2021 to in and around June 2023, in the Western District of Pennsylvania, Morales conspired with others to distribute and possess with intent to distribute five kilograms or more of cocaine, 400 grams or more of fentanyl, and 500 grams or more of methamphetamine. Further, from in and around April 2022 to in and around March 2023, Morales conspired with others to commit money laundering. Morales was intercepted on a federal wiretap obtaining quantities of cocaine, fentanyl, and methamphetamine that he distributed to others. The Court found that Morales was responsible for conspiring to distribute 7.48 kilograms of cocaine, 83 kilograms of fentanyl, and 72 kilograms of methamphetamine and that Morales possessed firearms in connection with that drug trafficking activity.

Assistant United States Attorney Arnold P. Bernard Jr. prosecuted this case on behalf of the government.

United States Attorney Olshan commended the Federal Bureau of Investigation’s Laurel Highlands Resident Agency and Homeland Security Investigations for the investigation that led to the successful prosecution of Morales. Additional agencies participating in this investigation include the Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, and other local law enforcement agencies.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.