Western District of Pennsylvania
Press releases recorded for this federal judicial district.
Indiana, PA Man Sentenced for Distributing Heroin/Fentanyl Mix that Caused an Overdose DeathRead the Press Release
PITTSBURGH, Pa - A resident of Indiana, PA, has been sentenced in federal court to 70 months in prison and five years of supervised release on his conviction of a violation of federal narcotics law, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Justin Kromer, age 31.
According to information presented to the court, on March 30, 2016, Kromer possessed and distributed stamp bags marked with "Block Party" and containing a mixture of heroin and fentanyl to an individual with the initials J.W. On March 30, 2016, J.W. overdosed and died from using the controlled substances. As part of his guilty plea, Kromer accepted responsibility for causing J.W.’s death.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration, along with the Pennsylvania State Police, the Offices of the District Attorneys of Allegheny and Indiana Counties, the Indiana County Drug Task Force, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Kromer.
Pittsburgh Man Involved in Supplying Drug Gang Sentenced to Nearly 5 Years in PrisonRead the Press Release
PITTSBURGH, PA - A former resident of Pittsburgh, Pennsylvania, was sentenced in federal court to 57 months of imprisonment and 3 years of supervised release on his conviction of conspiracy to possess with intent to distribute heroin and fentanyl, United States Attorney Scott W. Brady announced today.
United States District Judge William S. Stickman, IV imposed sentence on Rico Taylor, 35.
According to information presented to the Court, in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and drug-trafficking activity in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
Intercepted communications revealed that Mr. Taylor was involved in the distribution of heroin and fentanyl. Specifically, Mr. Taylor served as a source of supply of heroin and fentanyl for Christopher Highsmith, who is among the most culpable co-defendants. As a condition of his guilty plea on April 29, 2020, Mr. Rico accepted responsibility for possessing with the intent to distribute 39 grams of a mixture containing heroin and fentanyl.
Assistant United States Attorneys Carolyn Bloch and Brendan J. McKenna prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Pittsburgh Felon Illegally Possessed a Loaded Handgun on Two OccasionsRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh pleaded guilty in federal court on charges related to federal firearms laws, United States Attorney Scott W. Brady announced today.
Clayton Sowell, 27, pleaded guilty to two counts of possession of a firearm and ammunition by a convicted felon, before United States District Judge Jagan N. Ranjan.
In connection with the guilty plea, the court was advised that in the early evening of December 19, 2019, Pittsburgh Police conducted a traffic stop of a vehicle driven by Clayton Sowell. During the traffic stop, officers recovered a loaded handgun containing 17 rounds of ammunition in the driver’s side door.
The court was further advised that in the late morning of April 28, 2020, an officer of the Penn Hills Police Department conducted a separate traffic stop of a vehicle driven by Mr. Sowell. During the traffic stop, law enforcement recovered a loaded handgun containing 18 rounds of ammunition in Mr. Sowell’s front waistband.
Finally, the Court was advised that Mr. Sowell has two prior felony convictions. On May 21, 2012, Mr. Sowell pled guilty to Fleeing or Attempting to Elude Officer in the Court of Common Pleas, County of Allegheny, Commonwealth of Pennsylvania. On June 20, 2016, Mr. Sowell pled guilty to Firearms Not to be Carried Without a License in the Court of Common Pleas, County of Allegheny, Commonwealth of Pennsylvania.
Judge Ranjan scheduled sentencing for March 4, 2021, at 10:00 am. The law provides for a total sentence of not more than ten 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. Mr. Sowell remains detained pending sentencing.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Pittsburgh Bureau of Police and Penn Hills Police Department conducted the investigation in this case.
Greene County Man Sentenced to 6 Years in Prison for Federal Drug and Gun OffensesRead the Press Release
PITTSBURGH – A former resident of Waynesburg, Greene County, Pennsylvania, has been sentenced in federal court to serve a total of 72 months’ imprisonment followed by 36 months’ supervised release on his convictions for violating the federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Nora Barry Fischer imposed the sentence on Julius Maurice Hurt, 35, formerly of Waynesburg, Greene County, Pennsylvania, who was convicted of possessing quantities of heroin and cocaine intending to redistribute those substances, and possessing firearms in furtherance of that drug trafficking crime.
According to information presented to the court, in the early morning hours of May 3, 2017, Waynesburg Borough Police Officers were dispatched to the area in and around the Greene County Courthouse based on 911 calls that an individual, later determined to be Mr. Hurt, was observed carrying firearms. The responding officers located Mr. Hurt in that area and found him in possession of two loaded firearms (a .45 caliber Colt pistol and a 9mm Smith & Wesson pistol). On his person, police found quantities of cocaine and heroin, which Mr. Hurt admitted to possessing with the intent to distribute. In Mr. Hurt’s Waynesburg residence, the state police found drug paraphernalia commonly used to package heroin and cocaine for further distribution. In connection with his guilty plea, Mr. Hurt admitted to possessing the firearms in furtherance of the charged drug trafficking offense.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, and the Waynesburg Borough Police Department for the investigation leading to the successful prosecution of Mr. Hurt.
Fentanyl Dealer Sentenced to Nearly 12 Years in PrisonRead the Press Release
PITTSBURGH – Dorian Dawson was sentenced to 11 years and 10 months (142 months) in prison for fentanyl trafficking while on state parole for prior heroin trafficking, United States Attorney Scott W. Brady announced today.
Dawson, age 31, of Pittsburgh, was sentenced by United States District Judge David S. Cercone. Judge Cercone also sentenced Dawson to serve six years of supervised release at the conclusion of his prison sentence.
On October 17, 2016, Dawson was arrested for trafficking fentanyl as a result of an investigation into the overdose death of one of his customers earlier that day. At the time, Dawson was on state parole following a four-year to 10-year state prison sentence that was imposed in 2012 for heroin trafficking. Dawson was convicted of heroin trafficking four times in four state prosecutions between 2010 and 2012.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pennsylvania Attorney General’s Office and the Brentwood Police Department conducted the investigation in this case.
Rehab Operator Sentenced to 10 Years for Heroin Trafficking and Tax FraudRead the Press Release
PITTSBURGH - A resident of McKees Rocks, PA, has been sentenced in federal court to 10 years’ imprisonment on his convictions of conspiracy to distribute heroin and aiding in the preparation of false income tax returns, United States Attorney Scott W. Brady announced today.
United States District Judge Joy Flowers Conti imposed the sentence on David Francis, age 69.
According to information presented to the court, Francis was the owner and operator of Next Step Recovery Housing, LLC, a purported drug rehabilitation center, located in McKees Rocks, PA. While operating Next Step Recovery Housing, the defendant also conspired to distribute more than 100 grams of heroin with suppliers from New York City, codefendants William Rosario and Jose Ortega, from November 2016 through February 2017. Francis redistributed the heroin that he obtained from Rosario and Ortega to his own customers, many of whom were current or former clients of Next Step Recovery Housing. During the same timeframe, Francis was also the owner and operator of All Personal Matters, an income tax return preparation business. Through All Personal Matters, Francis aided in the preparation and filing of fraudulent federal income tax returns on behalf of clients of All Personal Matters, resulting in a loss to the Internal Revenue Service of $1,681,607.54. Francis funded the heroin trafficking operations, in part, through the money he unlawfully obtained through the scheme to defraud the Internal Revenue Service.
Prior to imposing sentence, Judge Conti stated that the sentence satisfied the goals of punishment, rehabilitation and deterrence.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration, Internal Revenue Service, Monroeville Police Department, Stowe Township Police Department, Ingram Borough Police Department, Pennsylvania State Police, and Monaca Police Department for the investigation leading to the successful prosecution of Francis.
Federal Inmate Admits Participating in Scheme to Sell Controlled Substances Inside PrisonRead the Press Release
PITTSBURGH - Michael S. Frawley pleaded guilty to conspiring to distribute at least 500 grams of cocaine and a quantity of Schedule I synthetic cannabinoid controlled substances between 2017 and 2019, United States Attorney Scott W. Brady announced today.
Frawley, age 49, formerly a resident of Allegheny County, pled guilty before United States District Judge J. Nicholas Ranjan. Judge Ranjan scheduled sentencing to occur on March 3, 2021, at 10:00 a.m. Frawley was serving a federal prison sentence for a prior cocaine-trafficking conviction when he committed the additional drug-trafficking crime to which he pled guilty.
The law provides for a sentence of at least 10 years and up to life in prison and a fine of up to $8,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is to be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
This prosecution is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Erie Man Indicted on Child Sexual Exploitation ChargesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
The seven-count Indictment named Ryan Matthew Holden, 36, as the sole defendant.
According to the Indictment presented to the court, Holden used Instagram to induce a minor female to provide him sexually explicit images and sent images of his penis to the minor victim. Holden also sent images of child pornography to the minor victim. Holden also received and possessed thousands of other items of child pornography.
The law provides for a maximum total sentence of life imprisonment, a fine of $1,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation 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 (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.
North Huntingdon Man Sentenced in SCO Drug CaseRead the Press Release
PITTSBURGH, PA - A Western Pennsylvania resident has been sentenced in federal court on convictions of narcotics trafficking, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence of twelve months plus one day of imprisonment, and three years of supervised release, on Gregory Luptak, 52, of North Huntingdon, PA.
According to information presented to the Court, the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock section of Pittsburgh. Law enforcement identified several individuals who were illegally distributing controlled substances in the Greater Pittsburgh Region, as members of a neighborhood-based street gang, self-titled "SCO" and whose leader was identified as Howard McFadden.
In January of 2019, investigators obtained authorization to conduct a federal wiretap investigation, which continued through May of 2019. As a result of this investigation, Luptak, along with 32 others were indicted in June of 2019 by a federal grand jury in three separate, but related, Indictments.
The Court was informed that intercepted communications confirmed that Luptak obtained large quantities of heroin, which he distributed to others in and around the North Huntingdon area. Luptak informed the Court that he would sell the heroin to his drug customers at a mark-up so that he could buy more heroin for himself. On at least one occasion, law enforcement observed Luptak meet McFadden at a stash house location on Seddon Avenue in Braddock to conduct a drug transaction.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
United States Attorney Brady commended the multi-agency team, which was led by the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Moore. Partners in this investigation included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania
Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies included the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
U.S. Attorney Scott Brady Announces Record Number of Prosecutions for Western Pennsylvania for FY 2020Read the Press Release
PITTSBURGH, PA - Scott W. Brady, United States Attorney for the Western District of Pennsylvania, today announced that the number of cases being prosecuted by the district reached another all-time record high in fiscal year 2020.
From October 1, 2019 through September 30, 2020, the office filed cases against 757 defendants, an increase of 67% versus FY 2016. The total number of drug defendants prosecuted reached 376, a 122% increase versus FY 2016. The total number of firearms defendants prosecuted was 187, a 78% increase versus FY 2016.
All numbers represent the most defendants prosecuted in any one year in the history of the Western District of Pennsylvania.
Additionally, the cases filed against defendants in the last fiscal year also exceeded FY 2019’s record amounts. The total number of defendants prosecuted last year vs. FY 2019 increased by 14%; the number of drug defendants increased by 22%; and the number of firearms defendants increased by 50%.
"The commitment of the men and women of the US Attorney’s Office to the safety of our region is nothing short of remarkable," stated U.S. Attorney Brady. "Despite a global pandemic and grand jury being shut down for two months this year, our office has prosecuted a record number of total defendants, drug dealers and violent felons federally."
Brady continued: "I believe there is a direct, linear and causal relationship between the number of violent felons that our federal prosecutions remove from communities they are terrorizing, and how safe our neighbors are. We have just completed the two most productive years in the history of this office, and as the head of this office, I am proud that western PA families and their loved ones have safer communities in which to live and flourish than they did in 2016."
U.S. Attorney Brady highlighted seven significant cases involving drug trafficking organizations and the violence associated with these groups, all of which were charged federally and arrested/dismantled during the COVID-19 pandemic:
"OPERATION RENTS DUE" - In May and June 2020, 22 total people were charged with drug conspiracy and firearms violations following an intensive investigation into the narcotics trafficking activities of a neighborhood street gang, known as "11 Hunnit", operating in Pittsburgh’s Hill District neighborhood and beyond.
"OPERATION CRYSTAL HIGHWAY" - In June 2020, an indictment was returned charging 38 residents of Centre, Clearfield, Clinton and Erie Counties with narcotics trafficking, money laundering and unlawful possession of firearms. The organization was bringing kilo quantities of methamphetamine from Atlanta for distribution throughout north central Pennsylvania.
"OPERATION COPPER BEACH" - In June 2020, 19 Pennsylvania residents were indicted for their roles in a Philadelphia-to-Indiana County drug trafficking network that distributed methamphetamine, heroin, fentanyl and crack cocaine, primarily in Indiana County.
"OPERATION NORTH COUNTRY" – In June 2020, 9 members of a significant Philadelphia-to-Butler drug organization whose pipeline brought fentanyl, heroin and cocaine into Butler communities, including near neighborhood playgrounds and schools, were charged.
"OPERATION BEELINE" - In August 2020, 26 residents of western Pennsylvania were charged following a wiretap investigation into drug trafficking and gun violence by a street gang known as the "Shot Boyz", who were wreaking havoc in Wilkinsburg and Pittsburgh’s East Hills neighborhood.
"OPERATION NO MERCY" - In September 2020, 13 members of a drug trafficking organization based in New Castle, PA were indicted for trafficking significant quantities of cocaine and fentanyl in Pennsylvania, Ohio and Florida. The organization’s source of supply was traced to a cartel in Mexico.
"OPERATION TRIPWIRE" – In September 2020, 27 members of an international drug trafficking organization were indicted, following an investigation that dismantled a large-scale drug trafficking pipeline that brought hundreds of kilos of cocaine from Mexican cartels, into the United States through California and Arizona, and across the country to the streets of Pittsburgh.
Union City, PA Man Indicted on Child Sex Exploitation ChargesRead the Press Release
ERIE, Pa. - A resident of Union City, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
The two-count Indictment named Joseph Edward Schwenk, 68, 61 Parade Street, Apt. 201, Union City, Pennsylvania, as the sole defendant.
According to the Indictment presented to the court, from January 2018 to May 2020, Schwenk received and possessed computer images depicting prepubescent minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case. 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.
Pennsylvania Officials Discuss Election Security with U.S. Attorneys and FBI AgentsRead the Press Release
Harrisburg, Pa – Secretary of State Kathy Boockvar and Pennsylvania Director of Homeland Security Marcus Brown recently met with Pennsylvania’s three United States Attorneys and FBI agents from Philadelphia and Pittsburgh to review security and preparations for the Nov. 3 general election.
United States Attorneys Scott W. Brady of the Western District of Pennsylvania, David J. Freed of the Middle District of Pennsylvania, and William M. McSwain of the Eastern District of Pennsylvania participated in the Oct. 2 meeting, along with FBI Special Agents in Charge Michael Driscoll of the Philadelphia Field Office and Michael Christman of the Pittsburgh Field Office.
“Strong collaboration and communication between our federal, state, and local partners is key to ensuring that we protect every Pennsylvanian’s right to vote and maintain confidence in a safe, secure and accurate election,” said Secretary Boockvar. “We appreciated the opportunity to discuss these critical issues and expand our partnerships. We are also in close coordination with other key agencies such as the Pennsylvania Emergency Management Agency, all 67 counties across the commonwealth, and many other state and federal security and elections partners, to ensure a free and fair election for every Pennsylvanian.”
During the meeting, the officials discussed their shared commitment to ensuring the safety, security and integrity of the election for all Pennsylvanians and areas where they can continue to collaborate to strengthen protections in advance of and on election day.
“To maintain ordered liberty and the consent of the people, we must ensure that our elections are free and fair – both in reality and in the public’s perception,” U.S. Attorney Brady said. “This meeting was an important opportunity to work with the Secretary, my fellow U.S. Attorneys, and the FBI to discuss statewide and regional issues. With a stronger understanding of each other’s efforts, we are all in a better position to work toward the free and fair election that Pennsylvanians deserve.”
The Department of State has collaborated with the U.S. Attorneys and the FBI on election security and preparedness in the past.
“I appreciated the opportunity to meet with Secretary Boockvar and her team to discuss the upcoming general election,” U.S. Attorney Freed said. “From our office based in Harrisburg, we have worked closely, along with our colleagues from the FBI, with Pennsylvania Department of State elections staff on previous elections. This year will be no different. Our discussion and information sharing will further the joint goal of ensuring a free, fair and safe general election in Pennsylvania.”
In July 2018, the Inter-Agency Election Preparedness and Security Workgroup was created to ensure Pennsylvania meets the highest standards of election preparedness and integrity and to coordinate election security. The member agencies include the Departments of State and Military and Veterans Affairs, the Pennsylvania Emergency Management Agency, the Pennsylvania State Police and the offices of Administration, Governor, Homeland Security and State Inspector General.
“Coordination between our federal, state and local election officials, emergency managers and law enforcement is how Pennsylvania is ensuring our election is as safe as possible,” said Marcus L. Brown, director of the Pennsylvania Office of Homeland Security. “On the state level, the Election Security and Preparedness Interagency Workgroup is the forum that we have been using for the last several years to strategically identify election security gaps and then develop solutions.”
The commonwealth also works with all 67 county boards of elections, the Pennsylvania National Guard, the Center for Internet Security and other key partners to maintain and enhance the security of Pennsylvania’s election process. Pennsylvania uses a layered set of defenses to protect its voting systems, which are never connected to the internet nor permitted on internet-facing networks.
“Elections are the cornerstone of our democracy and therefore safeguarding their integrity is critical to the health of our Republic. Pennsylvanians can rest assured that their federal and state officials are working together– as they should be – on this shared mission,” U.S. Attorney McSwain said. “As President Lincoln once put it: ‘elections belong to the people.’ We will work tirelessly to give meaning to that simple but profound statement.”
Franklin, PA Felon Charged with Possessing Numerous FirearmsRead the Press Release
ERIE, Pa. - A resident of Franklin, Pennsylvania has been indicted by a federal grand jury in Erie on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Phillip John Dechant, 37, 739 Buffalo Street, Franklin, Pennsylvania, as the sole defendant.
According to the Indictment presented to the court, on or about April 22, 2020, Dechant possessed numerous firearms while being a convicted felon.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the Fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Resident Indicted for Concealing Marriage in Order to Continue to Receive Social Security BenefitsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges related to her theft of Social Security benefits, United States Attorney Scott W. Brady announced today.
The three-count Indictment charges Jacqueline Waters, 55, with one count of theft of government property, one count of make a false statement to retain Social Security Income benefits, and one count of fraudulent concealment to retain Social Security Income benefits. According to the Indictment, between July 2004 and July 2018, Waters concealed from the Social Security Administration a common law marriage that would have affected her continued eligibility for Social Security Income benefits by repeatedly failing to disclose that she lived with her spouse, including during a Social Security redetermination on or about May 14, 2018.
The law provides for a maximum total sentence of not more than ten years in prison for theft of government property and five years in prison for the false statement and fraudulent concealment charges. The maximum fine per count is $250,000. 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 Eric G. Olshan is prosecuting this case on behalf of the government. The Social Security Administration – Office of Inspector General conducted the investigation leading to the Indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New Kensington Man Indicted for Misappropriating VA Beneficiary FundsRead the Press Release
PITTSBURGH, PA - A resident of New Kensington, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of misappropriation of U.S. Department of Veterans Affairs ("VA") beneficiary funds, United States Attorney Scott W. Brady announced today.
The one-count Indictment charges Andrew Ziacik, 57, as the sole defendant. According to the Indictment, Ziacik was appointed as a Federal Fiduciary for a VA beneficiary and, as such, was responsible for receiving the beneficiary’s VA income and ensuring the beneficiary’s debts were paid. The Indictment further charges that Ziacik engaged in a pattern of conduct between July 2013 and late 2017 that violated his Fiduciary Agreement, including by making approximately $25,000 in unauthorized ATM cash withdrawals from the beneficiary’s VA bank account and transferring approximately $135,000 of the beneficiary’s VA benefits to Ziacik’s personal bank accounts. In addition, the Indictment alleges that the defendant misused the beneficiary’s VA benefits for his personal benefit including through financing payments made to Harley Davidson, the purchase of a diamond ring, and the purchase of a GMC truck, all in violation of Ziacik’s Fiduciary Agreement. Moreover, the Indictment also alleges that Ziacik failed to maintain accurate records and receipts related to the disposition of the beneficiary’s VA benefits, as required. and failed to provide complete and accurate records in response to a formal accounting initiated by the VA.
The law provides for a maximum total sentence of not more than five (5) years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government. The U.S. Department of Veterans Affairs Office of Inspector General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Pleads Guilty to Narcotics TraffickingRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of narcotics trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
Jonathan Laur, 37, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl before United States District Judge William S. Stickman IV. Mr. Laur and is one of 22 defendants charged in the Superseding Indictment. The defendant ultimately accepted responsibility for the distribution of 12 grams of heroin and fentanyl.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force, led by the Federal Bureau of Investigation, initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and drug-trafficking activity in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019. Intercepted communications revealed that the defendant distributed bag and bundle level quantities on behalf of a co-conspirator. Additionally, law enforcement arrested Mr. Laur in June 2019 while he was in possession of narcotics he had just obtained from a co-conspirator. Mr. Laur ultimately accepted responsibility for the distribution of 12 grams of heroin and fentanyl in the Pittsburgh area as a condition of the plea.
Judge Stickman scheduled sentencing for February 23, 2021 at 10:30 am. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Mr. Laur remains in detention pending the sentencing hearing.
Assistant United States Attorneys Carolyn Bloch and Brendan J. McKenna are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Federal Inmate Sentenced to 15 More Months for Conspiring to Distribute K2 Controlled SubstancesRead the Press Release
PITTSBURGH – Brandon Massie was sentenced to 15 months in prison for conspiring to distribute K2 controlled substances (Schedule I synthetic cannabinoids) while serving a federal prison sentence in 2017, United States Attorney Scott W. Brady announced today.
Massie, age 35, formerly of Pittsburgh, was sentenced by United States District Judge J. Nicholas Ranjan. Judge Ranjan directed that the prison sentence be served consecutively to the prison sentence Massie was serving at the time of the crime. Judge Ranjan also directed that Massie serve six years of supervised release following his prison sentence.
Massie was incarcerated at the federal prison in Loretto, Pennsylvania, when he conspired to distribute K2 controlled substances (Schedule I synthetic cannabinoids). He was serving a prison sentence at that time for conspiring to distribute at least one kilogram of heroin.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the Federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Office for Victims of Crime Awards Nearly $4 Million to Support Sexual Assault Nurse Examiner ProgramsRead the Press Release
The Office of Justice Programs’ (OJP) Office for Victims of Crime (OVC) announced that it has awarded almost $4 million to support the establishment or expansion of Sexual Assault Nurse Examiner (SANE) programs that offer medical forensic care, advocacy and other victim services to sexual assault survivors on campuses of higher education. OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan made the announcement during a roundtable discussion with U.S. Attorney for the Western District of Pennsylvania Scott W. Brady, OVC Director Jessica E. Hart, Dean of Duquesne University School of Nursing Mary Ellen Glasgow, and law enforcement leaders from Pittsburgh and surrounding jurisdictions.
“Victims of sexual assault deserve the best of care, including expert medical forensic attention that can help close out cases and bring perpetrators to justice,” said OJP Principal Deputy Assistant Attorney General Sullivan. “These grants will build a cadre of skilled medical professionals capable of responding immediately and holistically to the needs of sexual assault survivors. Making SANE Nurse positions available on college campus will help ensure survivors receive the trauma informed care they deserve and vital forensic evidence will be collected to ensure perpetrators are held accountable.”
“Nurses serving on the front lines of our communities are often the first to respond to and treat victims of sexual assault,” said U.S. Attorney Brady. “Far too many victims endure the physical and emotional trauma of a sexual assault only to wait long hours and have forensic exams conducted by personnel who lack the appropriate training and experience in forensic evidence collection. These SANE grants will allow our universities to create a pipeline of highly-skilled registered nurses to support victims of sexual assault and hold offenders accountable.”
This program will develop, expand or strengthen SANE services to improve the delivery of post-assault medical and advocacy services. Campuses will collaborate with victim service providers in the communities in which the institutions are located. If victim services programs are not available in the community or are not accessible to students, the institution will provide a victim services program on campus in collaboration with a community-based organization.
“Sexual assault is an appalling crime and an obscene violation of personal security and interpersonal trust,” said Director Hart. “The resources we are making available today will help institutions of higher learning bring comfort and relief to victims while widening the possibility for securing justice.”
OVC awarded $3,836,877 to eight institutions, listed below. Funds will help raise awareness and expand outreach about the SANE program and will provide more SANE services to survivors. Operational costs (including salaries and benefits for program staff), training and mentoring for aspiring and current SANEs and advocates, and equipment costs can be supported under this program. This program aims to respond to and empower sexual assault survivors while increasing perpetrator accountability.
- University of South Alabama, Alabama
- Total Awarded $493,244
- Arizona Board of Regents, University of Arizona, Arizona
- Total Awarded $499,382
- Duquesne University, Pennsylvania
- Total Awarded $499,391
- The Pennsylvania State University, Pennsylvania
- Total Awarded $500,000
- The Spartanburg Regional Healthcare System Foundation, South Carolina
- Total Awarded $345,926
- Tennessee Technological University, Tennessee
- Total Awarded $500,000
- The University of Texas Rio Grande Valley, Texas
- Total Awarded $499,948
- The Board of Regents of the University of Wisconsin System, Wisconsin
- Total Awarded $498,986
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The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
- University of South Alabama, Alabama
U.S. Attorney Brady Appoints Election Officers for the Western District of PennsylvaniaRead the Press Release
PITTSBURGH – United States Attorney Scott W, Brady announced today that Assistant United States Attorneys (AUSAs) Eric G. Olshan and Lee J. Karl will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election. AUSAs Olshan and Karl have been appointed to serve as the District Election Officers (DEOs) for the Western District of Pennsylvania, and in that capacity are responsible for overseeing the District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.
U.S. Attorney Brady said, "To maintain ordered liberty and the consent of the people, we must ensure that our elections are free and fair. Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will be active and vigilant this election season to protect the integrity of the election process."
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Brady stated that AUSAs/DEOs Olshan and Karl will be on duty in this District while the polls are open. AUSA Olshan can be reached by the public at the following telephone numbers: 412-644-3500 or 412-894-7446. AUSA Karl can be reached by the public at the following telephone numbers: 412-644-3500 or 412-894-7488.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at 412-432-4000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
United States Attorney Brady added, "Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available to my Office, the FBI, or the Civil Rights Division."
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Retired Administrative Law Judge Sentenced to 2 Years in Prison for Making a False Statement on a Firearms Purchase FormRead the Press Release
PITTSBURGH, PA – On October 17, 2020, a resident of Grove City, Pennsylvania, was sentenced in federal court to two years (24 months) in prison on his conviction of making a false statement in the acquisition of a firearm, United States Attorney Scott W. Brady announced today.
United States District Judge Robert J. Colville imposed the sentence on Karl Alexander, 79.
According to information provided to the court during the plea hearing, on Sept. 29, 2019, Alexander, an attorney and administrative law judge, knowingly made a false statement to a licensed firearms dealer when purchasing a Ruger AR556MPR AR-15 style rifle. Alexander admitted that he expressly lied on the ATF Form 4473 and answered "Yes" to the question: "Are you the actual transferee/buyer of the firearm listed on this form?" In fact, Alexander was purchasing the firearm for a convicted felon, Dennis Alan Riggs. Alexander admitted that Riggs was with him for the purchase and that Riggs picked out the firearm and paid Alexander for the firearm. Alexander also admitted he agreed to purchase the weapon because of their personal relationship.
Riggs pleaded guilty in May to being a felon in possession of a firearm and ammunition. He is scheduled to be sentenced on Nov. 18, 2020.
Prior to imposing sentence, Judge Colville stated that Mr. Alexander should have known better than to purchase the firearm for a known felon, especially in light of Mr. Alexander’s prior lengthy tenure as an Administrative Law Judge. In addition to 24 months in prison, Alexander was also sentenced to one year of supervised release and a fine of $10,000.00.
Assistant United States Attorneys Jessica Lieber Smolar and Brian M. Czarnecki prosecuted this case on behalf of the government.
The FBI Pittsburgh Joint Terrorism Task Force conducted the investigation leading to the conviction in the case. Members of the FBI’s Joint Terrorism Task Force who were directly involved in this investigation include: FBI, Pennsylvania State Police, Allegheny County Police Department, Allegheny County Probation, and the Pittsburgh Bureau of Police.
This case was brought as part of Project Guardian. Reducing gun violence and enforcing federal firearms laws have always been among the Department of Justice’s highest priorities. Project Guardian serves as a complementary effort to the success of Project Safe Neighborhoods (PSN).
McKeesport Felon Charged with Illegal Gun PossessionRead the Press Release
PITTSBURGH - A resident of McKeesport, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Jajuan Cash, age 24, as the sole defendant.
According to the Indictment, on October 17, 2020, Cash possessed a firearm, specifically a Glock semi-automatic pistol, knowing he had been previously convicted of Aggravated Assault, in the Court of Common Pleas of Allegheny County, on May 7, 2018. Federal law prohibits felons from possessing firearms.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000 or both. However, if it is determined that the defendant has three previous convictions for a violent felony or a serious drug offense, or both, then the term of imprisonment is not less than 15 years to a maximum of life imprisonment. 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 Nicole Vasquez Schmitt is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the Indictment in this case.
The case is being prosecution as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Inmate at FCI-Hazelton Pleads Guilty to Money Laundering ConspiracyRead the Press Release
PITTSBURGH – Lamar Middleton pled guilty to conspiring to launder drug trafficking proceeds between 2017 and 2019, United States Attorney Scott W. Brady announced today.
Middleton, age 33, pled guilty before United States District Judge J. Nicholas Ranjan. Judge Ranjan scheduled sentencing to occur on February 23, 2021, at 10:00 a.m. Middleton was serving a federal prison sentence at FCI-Hazelton in West Virginia when he committed the crime to which he pled guilty.
The law provides for a maximum sentence of up to 20 years in prison and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
This prosecution is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Homeless Men Charged with 4 Armed Robberies over 2 Days in August 2020Read the Press Release
PITTSBURGH, PA - Two homeless residents of Pittsburgh, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of robbery, United States Attorney Scott W. Brady announced today.
The four-count Indictment named Elijah Sayon and Rexford Wright, both 23.
According to Indictment, on August 3, 2020, Sayon and Wright robbed a Sunoco gas station on Donner Avenue in Monessen, PA and a Marathon gas station on State Route 51 North in North Belle Vernon, PA. The Indictment further alleges that on August 4, 2020, Sayon and Wright robbed a GetGo on Steubenville Pike in Kennedy Township, PA and a 7-Eleven on Dry Run Road in Monongahela, PA. All four robberies were at gunpoint.
The law provides for a maximum total sentence of not more than 80 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Allegheny County Police Department, Monessen Police Department, and the Monongahela City Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
DS44 Gang Member Admits Selling Fentanyl and HeroinRead the Press Release
PITTSBURGH - A resident of McKees Rocks, pleaded guilty in federal court to a charge of conspiracy to distribute and possess with the intent to distribute a quantity of fentanyl and heroin, United States Attorney Scott W. Brady announced today.
Lamont Benton, age 24, pleaded guilty to one count before United States District Judge William S. Stickman, IV.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
Benton was identified as a member of DS44 and a mid-level distributor, and in connection with his guilty plea, he accepted responsibility for distributing 39 grams of a mixture containing fentanyl and heroin. Mr. Benton is one of 40 defendants charged in the case.
Judge Stickman scheduled sentencing for February 24, 2021, at 10:30 a.m. The law provides for a total sentence of not more than twenty years in prison, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Benton be detained.
Assistant United States Attorneys Carolyn J. Bloch and Brendan J. McKenna are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Charleroi Felon Indicted on Federal Firearms Law OffenseRead the Press Release
PITTSBURGH - A resident of Charleroi, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Devon Johnson-Brown, age 31, as the sole defendant.
According to the Indictment, on October 16, 2020, Johnson-Brown possessed a firearm, specifically a Remington semi-automatic pistol, knowing he had been previously convicted of a crime with punishment exceeding one year. Federal law prohibits felons from possessing firearms.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000 or both. However, if it is determined that the defendant has three previous convictions for a violent felony or a serious drug offense, or both, then the term of imprisonment is not less than 15 years to a maximum of life imprisonment. 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 Nicole Vasquez Schmitt is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Indictment in this case.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Sentenced to Six Years for Receiving Child Sexual Abuse MaterialRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to six years’ (72 months’) imprisonment and seven years’ supervised release on his conviction of Receipt of Material Depicting the Sexual Exploitation of a Minor, United States Attorney Scott W. Brady announced today.
United States District Judge Marilyn J. Horan imposed the sentence on Michael Riley, age 35, of Pittsburgh, Pennsylvania.
According to information presented to the court, from January 2, 2020 through March 3, 2020, Riley used a computer issued to him by his employer to knowingly receive and attempt to receive visual depictions of minors engaging in sexually explicit conduct, namely videos.
Assistant United States Attorney Heidi M. Grogan prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Riley.
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.
Ex-President of Ohio Healthcare Management Company Pleads Guilty in $59 Million Check Kiting Scheme Targeting S&T BankRead the Press Release
PITTSBURGH – The former president of an Ohio healthcare management company waived indictment and pleaded guilty today to bank fraud, United States Attorney Scott W. Brady announced today.
Harold Sosna, age 67, of Cincinnati, Ohio, pleaded guilty to one count before United States District Judge Marilyn J. Horan.
"Sosna perpetrated a $59 million check kiting scheme that exploited banks throughout western Pennsylvania and Ohio," said U.S. Attorney Brady. "His greed and callousness caused significant financial harm to these community banks. Now he will be held accountable for these crimes. Together, with our law enforcement partners, we stand committed to protecting financial institutions from fraud."
"There is no question about it, this was a game for Mr. Sosna," said FBI Pittsburgh Special Agent in Charge Michael Christman. "He tried to game the system by floating money around to make it look like his accounts had millions of dollars in them. Instead, he committed large-scale fraud. One of the goals of the FBI is to safeguard the financial industry, which in turn protects the broader economy. We will investigate those who seek to defraud this system."
According to information provided to the Court, Sosna engaged in what is commonly known as "check kiting" scheme. The term "check kiting" refers to a form of check fraud which involves taking advantage of the float – the time between presentment of a check and the actual receipt of funds – to make use of non-existent funds in a checking or other bank account. The purpose of check kiting is to falsely inflate the balance of a checking account in order to allow written checks that would otherwise bounce to clear.
The court was advised that during the time of the check kite, Sosna was the president of Premier Healthcare Management (Premier), located in Blue Ash, Ohio. It owned and operated nine nursing care facilities in southern and central Ohio. Premiere provided in-facility, post-acute, and long-term care for individuals recovering from medical procedures, as well as assisted living services through various corporate entities. Each entity had a subsidiary relationship with Premier and operated individual bank accounts at various banks to include S&T Bank, headquartered in Indiana Pennsylvania, and First Financial Bank, headquartered in Cincinnati, Ohio.
According to information provided during the plea hearing, Sosna wrote checks between various S&T Bank and First Financial Bank accounts under his control and associated with Premier, in increasing dollar amounts. This was done to manipulate the numerical balance in the accounts and thereby create the false and fraudulent appearance that the defendant had sufficient legitimate available funds in various accounts, and to trick the banks into honoring checks drawn against accounts with insufficient funds. Between May 15, 2020, and May 18, 2020, by writing and negotiating checks, Sosna, sent more than $118,000,000.00 through S&T Bank and First Financial Bank, which were unfunded amounts and were the equivalent of obtaining money from the banks without actual properly secured loans. A total of 203 checks were negotiated in execution of his scheme. S&T Bank incurred a loss of $59,240,000.00.
Judge Horan scheduled sentencing for February 18, 2021 at 9:30 a.m. The law provides for a total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Robert S. Cessar and Jeffrey R. Bengel are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Sosna.
Six Russian GRU Officers Charged in Connection with Worldwide Deployment of Destructive Malware and Other Disruptive Actions in CyberspaceRead the Press Release
On Oct. 15, 2020, a federal grand jury in Pittsburgh returned an indictment charging six computer hackers, all of whom were residents and nationals of the Russian Federation (Russia) and officers in Unit 74455 of the Russian Main Intelligence Directorate (GRU), a military intelligence agency of the General Staff of the Armed Forces.
These GRU hackers and their co-conspirators engaged in computer intrusions and attacks intended to support Russian government efforts to undermine, retaliate against, or otherwise destabilize: (1) Ukraine; (2) Georgia; (3) elections in France; (4) efforts to hold Russia accountable for its use of a weapons-grade nerve agent, Novichok, on foreign soil; and (5) the 2018 PyeongChang Winter Olympic Games after Russian athletes were banned from participating under their nation’s flag, as a consequence of Russian government-sponsored doping effort.
Their computer attacks used some of the world’s most destructive malware to date, including: KillDisk and Industroyer, which each caused blackouts in Ukraine; NotPetya, which caused nearly $1 billion in losses to the three victims identified in the indictment alone; and Olympic Destroyer, which disrupted thousands of computers used to support the 2018 PyeongChang Winter Olympics. The indictment charges the defendants with conspiracy, computer hacking, wire fraud, aggravated identity theft, and false registration of a domain name.
According to the indictment, beginning in or around November 2015 and continuing until at least in or around October 2019, the defendants and their co-conspirators deployed destructive malware and took other disruptive actions, for the strategic benefit of Russia, through unauthorized access to victim computers (hacking). As alleged, the conspiracy was responsible for the following destructive, disruptive, or otherwise destabilizing computer intrusions and attacks:
- Ukrainian Government & Critical Infrastructure: December 2015 through December 2016 destructive malware attacks against Ukraine’s electric power grid, Ministry of Finance, and State Treasury Service, using malware known as BlackEnergy, Industroyer, and KillDisk;
- French Elections: April and May 2017 spearphishing campaigns and related hack-and-leak efforts targeting French President Macron’s “La République En Marche!” (En Marche!) political party, French politicians, and local French governments prior to the 2017 French elections;
- Worldwide Businesses and Critical Infrastructure (NotPetya): June 27, 2017 destructive malware attacks that infected computers worldwide using malware known as NotPetya, including hospitals and other medical facilities in the Heritage Valley Health System (Heritage Valley) in the Western District of Pennsylvania; a FedEx Corporation subsidiary, TNT Express B.V.; and a large U.S. pharmaceutical manufacturer, which together suffered nearly $1 billion in losses from the attacks;
- PyeongChang Winter Olympics Hosts, Participants, Partners, and Attendees: December 2017 through February 2018 spearphishing campaigns and malicious mobile applications targeting South Korean citizens and officials, Olympic athletes, partners, and visitors, and International Olympic Committee (IOC) officials;
- PyeongChang Winter Olympics IT Systems (Olympic Destroyer): December 2017 through February 2018 intrusions into computers supporting the 2018 PyeongChang Winter Olympic Games, which culminated in the Feb. 9, 2018, destructive malware attack against the opening ceremony, using malware known as Olympic Destroyer;
- Novichok Poisoning Investigations: April 2018 spearphishing campaigns targeting investigations by the Organisation for the Prohibition of Chemical Weapons (OPCW) and the United Kingdom’s Defence Science and Technology Laboratory (DSTL) into the nerve agent poisoning of Sergei Skripal, his daughter, and several U.K. citizens; and
- Georgian Companies and Government Entities: a 2018 spearphishing campaign targeting a major media company, 2019 efforts to compromise the network of Parliament, and a wide-ranging website defacement campaign in 2019.
Cybersecurity researchers have tracked the Conspirators and their malicious activity using the labels “Sandworm Team,” “Telebots,” “Voodoo Bear,” and “Iron Viking.”
The charges were announced by Assistant Attorney General John C. Demers; FBI Deputy Director David Bowdich; U.S. Attorney for the Western District of Pennsylvania Scott W. Brady; and Special Agents in Charge of the FBI’s Atlanta, Oklahoma City, and Pittsburgh Field Offices, J.C. “Chris” Hacker, Melissa R. Godbold, and Michael A. Christman, respectively.
“No country has weaponized its cyber capabilities as maliciously or irresponsibly as Russia, wantonly causing unprecedented damage to pursue small tactical advantages and to satisfy fits of spite,” said Assistant Attorney General for National Security John C. Demers. “Today the department has charged these Russian officers with conducting the most disruptive and destructive series of computer attacks ever attributed to a single group, including by unleashing the NotPetya malware. No nation will recapture greatness while behaving in this way.”
“The FBI has repeatedly warned that Russia is a highly capable cyber adversary, and the information revealed in this indictment illustrates how pervasive and destructive Russia’s cyber activities truly are,” said FBI Deputy Director David Bowdich. “But this indictment also highlights the FBI’s capabilities. We have the tools to investigate these malicious malware attacks, identify the perpetrators, and then impose risks and consequences on them. As demonstrated today, we will relentlessly pursue those who threaten the United States and its citizens.”
“For more than two years we have worked tirelessly to expose these Russian GRU Officers who engaged in a global campaign of hacking, disruption and destabilization, representing the most destructive and costly cyber-attacks in history,” said U.S. Attorney Scott W. Brady for the Western District of Pennsylvania. “The crimes committed by Russian government officials were against real victims who suffered real harm. We have an obligation to hold accountable those who commit crimes – no matter where they reside and no matter for whom they work – in order to seek justice on behalf of these victims.”
“The exceptional talent and dedication of our teams in Pittsburgh, Atlanta and Oklahoma City who spent years tracking these members of the GRU is unmatched,” said FBI Pittsburgh Special Agent in Charge Michael A. Christman. “These criminals underestimated the power of shared intelligence, resources and expertise through law enforcement, private sector and international partnerships.”
The defendants, Yuriy Sergeyevich Andrienko (Юрий Сергеевич Андриенко), 32; Sergey Vladimirovich Detistov (Сергей Владимирович Детистов), 35; Pavel Valeryevich Frolov (Павел Валерьевич Фролов), 28; Anatoliy Sergeyevich Kovalev (Анатолий Сергеевич Ковалев), 29; Artem Valeryevich Ochichenko (Артем Валерьевич Очиченко), 27; and Petr Nikolayevich Pliskin (Петр Николаевич Плискин), 32, are all charged in seven counts: conspiracy to conduct computer fraud and abuse, conspiracy to commit wire fraud, wire fraud, damaging protected computers, and aggravated identity theft. Each defendant is charged in every count. The charges contained in the indictment are merely accusations, however, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
The indictment accuses each defendant of committing the following overt acts in furtherance of the charged crimes:
Defendant
Summary of Overt Acts
Yuriy Sergeyevich Andrienko
· Developed components of the NotPetya and Olympic Destroyer malware.
Sergey Vladimirovich Detistov
· Developed components of the NotPetya malware; and
· Prepared spearphishing campaigns targeting the 2018 PyeongChang Winter Olympic Games.
Pavel Valeryevich Frolov
· Developed components of the KillDisk and NotPetya malware.
Anatoliy Sergeyevich Kovalev
· Developed spearphishing techniques and messages used to target:
- En Marche! officials;
- employees of the DSTL;
- members of the IOC and Olympic athletes; and
- employees of a Georgian media entity.
Artem Valeryevich Ochichenko
· Participated in spearphishing campaigns targeting 2018 PyeongChang Winter Olympic Games partners; and
· Conducted technical reconnaissance of the Parliament of Georgia official domain and attempted to gain unauthorized access to its network.
Petr Nikolayevich Pliskin
· Developed components of the NotPetya and Olympic Destroyer malware.
The defendants and their co-conspirators caused damage and disruption to computer networks worldwide, including in France, Georgia, the Netherlands, Republic of Korea, Ukraine, the United Kingdom, and the United States.
The NotPetya malware, for example, spread worldwide, damaged computers used in critical infrastructure, and caused enormous financial losses. Those losses were only part of the harm, however. For example, the NotPetya malware impaired Heritage Valley’s provision of critical medical services to citizens of the Western District of Pennsylvania through its two hospitals, 60 offices, and 18 community satellite facilities. The attack caused the unavailability of patient lists, patient history, physical examination files, and laboratory records. Heritage Valley lost access to its mission-critical computer systems (such as those relating to cardiology, nuclear medicine, radiology, and surgery) for approximately one week and administrative computer systems for almost one month, thereby causing a threat to public health and safety.
The conspiracy to commit computer fraud and abuse carries a maximum sentence of five years in prison; conspiracy to commit wire fraud carries a maximum sentence of 20 years in prison; the two counts of wire fraud carry a maximum sentence of 20 years in prison; intentional damage to a protected computer carries a maximum sentence of 10 years in prison; and the two counts of aggravated identity theft carry a mandatory sentence of two years in prison. The indictment also alleges false registration of domain names, which would increase the maximum sentence of imprisonment for wire fraud to 27 years in prison; the maximum sentence of imprisonment for intentional damage to a protected computer to 17 years in prison; and the mandatory sentence of imprisonment for aggravated identity theft to four years in prison. These maximum potential sentences are prescribed by Congress, however, and are provided here for informational purposes only, as the assigned judge will determine any sentence of a defendant.
Defendant Kovalev was previously charged in federal indictment number CR 18-215, in the District of Columbia, with conspiring to gain unauthorized access into the computers of U.S. persons and entities involved in the administration of the 2016 U.S. elections.
Trial Attorney Heather Alpino and Deputy Chief Sean Newell of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorneys Charles Eberle and Jessica Smolar of the U.S. Attorney’s Office for the Western District of Pennsylvania are prosecuting this case. The FBI’s Atlanta, Oklahoma City, and Pittsburgh field offices conducted the investigation, with the assistance of the FBI’s Cyber Division.
The Criminal Division’s Office of International Affairs provided critical assistance in this case. The department also appreciates the significant cooperation and assistance provided by Ukrainian authorities, the Governments of the Republic of Korea and New Zealand, Georgian authorities, and the United Kingdom’s intelligence services, as well as many of the FBI’s Legal Attachés and other foreign authorities around the world. Numerous victims cooperated and provided valuable assistance in the investigation.
The department is also grateful to Google, including its Threat Analysis Group (TAG); Cisco, including its Talos Intelligence Group; Facebook; and Twitter, for the assistance they provided in this investigation. Some private sector companies independently disabled numerous accounts for violations of the companies’ terms of service.
Six Russian Gru Officers Charged in Connection with Worldwide Deployment of Destructive Malware and Other Disruptive Actions in CyberspaceRead the Press Release
PITTSBURGH – On Oct. 15, 2020, a federal grand jury in Pittsburgh returned an indictment charging six computer hackers, all of whom were residents and nationals of the Russian Federation (Russia) and officers in Unit 74455 of the Russian Main Intelligence Directorate (GRU), a military intelligence agency of the General Staff of the Armed Forces.
These GRU hackers and their co-conspirators engaged in computer intrusions and attacks intended to support Russian government efforts to undermine, retaliate against, or otherwise destabilize: (1) Ukraine; (2) Georgia; (3) elections in France; (4) efforts to hold Russia accountable for its use of a weapons-grade nerve agent, Novichok, on foreign soil; and (5) the 2018 PyeongChang Winter Olympic Games after Russian athletes were banned from participating under their nation’s flag, as a consequence of Russian government-sponsored doping effort.
Their computer attacks used some of the world’s most destructive malware to date, including: KillDisk and Industroyer, which each caused blackouts in Ukraine; NotPetya, which caused nearly $1 billion in losses to the three victims identified in the indictment alone; and Olympic Destroyer, which disrupted thousands of computers used to support the 2018 PyeongChang Winter Olympics. The indictment charges the defendants with conspiracy, computer hacking, wire fraud, aggravated identity theft, and false registration of a domain name.
According to the indictment, beginning in or around November 2015 and continuing until at least in or around October 2019, the defendants and their co-conspirators deployed destructive malware and took other disruptive actions, for the strategic benefit of Russia, through unauthorized access to victim computers (hacking). As alleged, the conspiracy was responsible for the following destructive, disruptive, or otherwise destabilizing computer intrusions and attacks:
- Ukrainian Government & Critical Infrastructure: December 2015 through December 2016 destructive malware attacks against Ukraine’s electric power grid, Ministry of Finance, and State Treasury Service, using malware known as BlackEnergy, Industroyer, and KillDisk;
- French Elections: April and May 2017 spearphishing campaigns and related hack-and-leak efforts targeting French President Macron’s “La République En Marche!” (En Marche!) political party, French politicians, and local French governments prior to the 2017 French elections;
- Worldwide Businesses and Critical Infrastructure (NotPetya): June 27, 2017 destructive malware attacks that infected computers worldwide using malware known as NotPetya, including hospitals and other medical facilities in the Heritage Valley Health System (Heritage Valley) in the Western District of Pennsylvania; a FedEx Corporation subsidiary, TNT Express B.V.; and a large U.S. pharmaceutical manufacturer, which together suffered nearly $1 billion in losses from the attacks;
- PyeongChang Winter Olympics Hosts, Participants, Partners, and Attendees: December 2017 through February 2018 spearphishing campaigns and malicious mobile applications targeting South Korean citizens and officials, Olympic athletes, partners, and visitors, and International Olympic Committee (IOC) officials;
- PyeongChang Winter Olympics IT Systems (Olympic Destroyer): December 2017 through February 2018 intrusions into computers supporting the 2018 PyeongChang Winter Olympic Games, which culminated in the Feb. 9, 2018, destructive malware attack against the opening ceremony, using malware known as Olympic Destroyer;
- Novichok Poisoning Investigations: April 2018 spearphishing campaigns targeting investigations by the Organisation for the Prohibition of Chemical Weapons (OPCW) and the United Kingdom’s Defence Science and Technology Laboratory (DSTL) into the nerve agent poisoning of Sergei Skripal, his daughter, and several U.K. citizens; and
- Georgian Companies and Government Entities: a 2018 spearphishing campaign targeting a major media company, 2019 efforts to compromise the network of Parliament, and a wide-ranging website defacement campaign in 2019.
Cybersecurity researchers have tracked the Conspirators and their malicious activity using the labels “Sandworm Team,” “Telebots,” “Voodoo Bear,” and “Iron Viking.”
The charges were announced by Assistant Attorney General John C. Demers; FBI Deputy Director David Bowdich; U.S. Attorney for the Western District of Pennsylvania Scott W. Brady; and Special Agents in Charge of the FBI’s Atlanta, Oklahoma City, and Pittsburgh Field Offices, J.C. “Chris” Hacker, Melissa R. Godbold, and Michael A. Christman, respectively.
“No country has weaponized its cyber capabilities as maliciously or irresponsibly as Russia, wantonly causing unprecedented damage to pursue small tactical advantages and to satisfy fits of spite,” said Assistant Attorney General for National Security John C. Demers. “Today the department has charged these Russian officers with conducting the most disruptive and destructive series of computer attacks ever attributed to a single group, including by unleashing the NotPetya malware. No nation will recapture greatness while behaving in this way.”
“The FBI has repeatedly warned that Russia is a highly capable cyber adversary, and the information revealed in this indictment illustrates how pervasive and destructive Russia’s cyber activities truly are,” said FBI Deputy Director David Bowdich. “But this indictment also highlights the FBI’s capabilities. We have the tools to investigate these malicious malware attacks, identify the perpetrators, and then impose risks and consequences on them. As demonstrated today, we will relentlessly pursue those who threaten the United States and its citizens.”
“For more than two years we have worked tirelessly to expose these Russian GRU Officers who engaged in a global campaign of hacking, disruption and destabilization, representing the most destructive and costly cyber-attacks in history,” said U.S. Attorney Scott W. Brady for the Western District of Pennsylvania. “The crimes committed by Russian government officials were against real victims who suffered real harm. We have an obligation to hold accountable those who commit crimes – no matter where they reside and no matter for whom they work – in order to seek justice on behalf of these victims.”
“The exceptional talent and dedication of our teams in Pittsburgh, Atlanta and Oklahoma City who spent years tracking these members of the GRU is unmatched,” said FBI Pittsburgh Special Agent in Charge Michael A. Christman. “These criminals underestimated the power of shared intelligence, resources and expertise through law enforcement, private sector and international partnerships.”
The defendants, Yuriy Sergeyevich Andrienko (Юрий Сергеевич Андриенко), 32; Sergey Vladimirovich Detistov (Сергей Владимирович Детистов), 35; Pavel Valeryevich Frolov (Павел Валерьевич Фролов), 28; Anatoliy Sergeyevich Kovalev (Анатолий Сергеевич Ковалев), 29; Artem Valeryevich Ochichenko (Артем Валерьевич Очиченко), 27; and Petr Nikolayevich Pliskin (Петр Николаевич Плискин), 32, are all charged in seven counts: conspiracy to conduct computer fraud and abuse, conspiracy to commit wire fraud, wire fraud, damaging protected computers, and aggravated identity theft. Each defendant is charged in every count. The charges contained in the indictment are merely accusations, however, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
The indictment accuses each defendant of committing the following overt acts in furtherance of the charged crimes:
Defendant
Summary of Overt Acts
Yuriy Sergeyevich Andrienko
· Developed components of the NotPetya and Olympic Destroyer malware.
Sergey Vladimirovich Detistov
· Developed components of the NotPetya malware; and
· Prepared spearphishing campaigns targeting the 2018 PyeongChang Winter Olympic Games.
Pavel Valeryevich Frolov
· Developed components of the KillDisk and NotPetya malware.
Anatoliy Sergeyevich Kovalev
· Developed spearphishing techniques and messages used to target:
- En Marche! officials;
- employees of the DSTL;
- members of the IOC and Olympic athletes; and
- employees of a Georgian media entity.
Artem Valeryevich Ochichenko
· Participated in spearphishing campaigns targeting 2018 PyeongChang Winter Olympic Games partners; and
· Conducted technical reconnaissance of the Parliament of Georgia official domain and attempted to gain unauthorized access to its network.
Petr Nikolayevich Pliskin
· Developed components of the NotPetya and Olympic Destroyer malware.
The defendants and their co-conspirators caused damage and disruption to computer networks worldwide, including in France, Georgia, the Netherlands, Republic of Korea, Ukraine, the United Kingdom, and the United States.
The NotPetya malware, for example, spread worldwide, damaged computers used in critical infrastructure, and caused enormous financial losses. Those losses were only part of the harm, however. For example, the NotPetya malware impaired Heritage Valley’s provision of critical medical services to citizens of the Western District of Pennsylvania through its two hospitals, 60 offices, and 18 community satellite facilities. The attack caused the unavailability of patient lists, patient history, physical examination files, and laboratory records. Heritage Valley lost access to its mission-critical computer systems (such as those relating to cardiology, nuclear medicine, radiology, and surgery) for approximately one week and administrative computer systems for almost one month, thereby causing a threat to public health and safety.
The conspiracy to commit computer fraud and abuse carries a maximum sentence of five years in prison; conspiracy to commit wire fraud carries a maximum sentence of 20 years in prison; the two counts of wire fraud carry a maximum sentence of 20 years in prison; intentional damage to a protected computer carries a maximum sentence of 10 years in prison; and the two counts of aggravated identity theft carry a mandatory sentence of two years in prison. The indictment also alleges false registration of domain names, which would increase the maximum sentence of imprisonment for wire fraud to 27 years in prison; the maximum sentence of imprisonment for intentional damage to a protected computer to 17 years in prison; and the mandatory sentence of imprisonment for aggravated identity theft to four years in prison. These maximum potential sentences are prescribed by Congress, however, and are provided here for informational purposes only, as the assigned judge will determine any sentence of a defendant.
Defendant Kovalev was previously charged in federal indictment number CR 18-215, in the District of Columbia, with conspiring to gain unauthorized access into the computers of U.S. persons and entities involved in the administration of the 2016 U.S. elections.
Trial Attorney Heather Alpino and Deputy Chief Sean Newell of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorneys Charles Eberle and Jessica Smolar of the U.S. Attorney’s Office for the Western District of Pennsylvania are prosecuting this case. The FBI’s Atlanta, Oklahoma City, and Pittsburgh field offices conducted the investigation, with the assistance of the FBI’s Cyber Division.
The Criminal Division’s Office of International Affairs provided critical assistance in this case. The department also appreciates the significant cooperation and assistance provided by Ukrainian authorities, the Governments of the Republic of Korea and New Zealand, Georgian partners, and the United Kingdom’s intelligence services, as well as many of the FBI’s Legal Attachés and other foreign authorities around the world. Numerous victims cooperated and provided valuable assistance in the investigation.
The department is also grateful to Google, including its Threat Analysis Group (TAG); Cisco, including its Talos Intelligence Group; Facebook; and Twitter, for the assistance they provided in this investigation. Some private sector companies independently disabled numerous accounts for violations of the companies’ terms of service.
NOTE: To view the unsealed indictment, click here. To view Exhibit A, click here.
Low Level Drug Distributor for Pittsburgh Gang Pleads GuiltyRead the Press Release
PITTSBURGH - A resident of Venetia, Pennsylvania, pleaded guilty in federal court to a charge of conspiring to distribute and possess with intent to distribute quantities of fentanyl, heroin, and other controlled substances, United States Attorney Scott W. Brady announced today.
Michael Norman, age 48, pleaded guilty to one count before United States District Judge William S. Stickman, IV.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
Norman was identified as a low-level distributor, and in connection with his guilty plea, he accepted responsibility for distributing between 8 and 16 grams of fentanyl/heroin. Mr. Norman is one of 40 defendants charged in the case.
Judge Stickman scheduled sentencing for March 1, 2021, at 10:30 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court permitted Norman to remain on bond.
Assistant United States Attorneys Carolyn J. Bloch and Brendan J. McKenna are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Worker Admits Setting Fire that Destroyed a Johnstown Building Undergoing RenovationsRead the Press Release
PITTSBURGH - A resident of Johnstown, PA pleaded guilty in federal court to a charge of Malicious Destruction of Property by Fire, United States Attorney Scott W. Brady announced today.
Mark A. Hutchison, age 34, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on December 12, 2018 Mark Hutchinson intentionally set a fire that destroyed a large commercial building located at 151-161 Fairfield Avenue in Johnstown. The building had recently been purchased by a limited liability corporation based in New York known as "JoJe." The seller was a company known as "Citrona," which had an office in Johnstown but was based in Florida. The contract of sale set the price at $200,000 for the building, plus $275,000 more to cover renovations to be undertaken by Citrona. The renovations were underway as of the time of the fire. The building was being renovated to permit the operation of a laundromat at street level and rental apartments upstairs. The insurance claim made by JoJe as a result of the fire was for $1.2 million.
ATF’s investigation of the scene resulted in a determination that the fire originated in the middle section of the left side of the building at street level. Nearby businesses had surveillance cameras in place at the time of the fire. One of the cameras captured a person near the left side door of the building that burned. That person can be seen carrying some type of light, walking away from the building, at approximately 4:45 a.m., which was approximately 15 minutes prior to the fire being reported by a passerby. Other cameras led the agents to identify a truck, owned by Citrona, leaving the nearby premises shortly after the person with the light walked away from the building. Follow up investigation revealed that Mark Hutchison, who was one of the workers renovating the building, had the truck that night.
The agents interviewed Hutchison, who admitted that he had set the fire, and admitted that he was the person caught on video with the light. It was the light from his cell phone. He explained that he had purchased kerosene from a nearby Sheetz a couple days prior to the fire and that he had poured and ignited that kerosene inside the building. He then exited the side door, got in the Citrona truck and drove away.
Judge Gibson scheduled sentencing for February 11, 2021. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Pennsylvania State Police and Federal Bureau of Alcohol, Tobacco, and Firearms conducted the investigation that led to the prosecution of Mark A. Hutchison.
Washington, PA Fentanyl Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
PITTSBURGH – A former resident of Washington, Pennsylvania, has been sentenced in federal court to ten years’ imprisonment on his conviction for violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Romone Barnes, age 34, formerly of the City of Washington, Washington County, PA.
According to information presented to the Court, on June 26, 2017, investigators with the Pennsylvania State Police Drug Law Enforcement Division and the Washington County District Attorney’s Office Drug Task Force conducted an investigation into fentanyl distribution by Mr. Barnes. The Court was advised that on that date, Mr. Barnes distributed five "bricks" – the equivalent to 400 dosage units – containing fentanyl, which is a scheduled controlled substance under federal law, to an informant working on behalf of law enforcement. Thereafter, Mr. Barnes was charged in a one-count Indictment with distribution of fentanyl. On September 25, 2017, in connection with his arrest for that offense, agents seized approximately ten grams of methoxyacetyl fentanyl, which is an analogue of fentanyl. In connection with his plea, Mr. Barnes admitted to possessing that controlled substance intending to redistribute it.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
United States Attorney Brady commended the Pennsylvania State Police Drug Law Enforcement Division and the Washington County District Attorney’s Office Drug Task Force for the investigation leading to the successful prosecution of Mr. Barnes.
This case was prosecuted as part of Operation S.O.S. (Synthetic Opioid Surge), a Department of Justice enforcement initiative designed to dismantle deadly fentanyl distribution networks through cooperation with local, state and federal law enforcement, as well as local and state prosecutors. The Western District of Pennsylvania is one of ten districts from across the country to implement the S.O.S. program.
Defendant Pleads Guilty to Distributing and Receiving Child PornographyRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
Shawn Everett Daley, 41, pleaded guilty to two counts before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that Daly distributed and received computer movies depicting prepubescent minors engaging in sexually explicit conduct. An examination of Daly’s digital devices and cloud storage accounts revealed the presence of thousands of movies depicting young children being sexually abused. Daly has a prior conviction in Pennsylvania for the indecent assault of two minor females. Daly’s plea agreement contains a binding sentencing provision whereby the parties agreed to a sentence of 24 years in jail to be followed by 10 years of supervised release.
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.
Judge Baxter scheduled sentencing for February 5, 2021 at 1:30 p.m. The law provides for a total sentence of 80 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Daly.
Officials Announce International Operation Targeting Transnational Criminal Organization QQAAZZ that Provided Money Laundering Services to High-Level CybercriminalsRead the Press Release
Fourteen members of the transnational criminal organization, QQAAZZ, were charged by a federal grand jury in the Western District of Pennsylvania in an indictment unsealed today. A related indictment unsealed in October 2019 charged five members of QQAAZZ. One additional conspirator, a Russian national, was arrested by criminal complaint in late March 2020 while visiting the United States, bringing the total number of charged defendants to 20. Acting Assistant Attorney General Brian C. Rabbitt of the U.S. Department of Justice’s Criminal Division and U.S. Attorney Scott W. Brady for the Western District of Pennsylvania, made the announcement today.
The QQAAZZ members, acting in concert with cybercriminals across the world, are accused of conspiring to launder money stolen from victims of computer fraud in the United States and elsewhere. More than 40 house searches were conducted in Latvia, Bulgaria, the United Kingdom, Spain and Italy, with criminal prosecutions initiated in the United States, Portugal, Spain and the United Kingdom. The largest number of searches and arrests were carried out in Latvia by the Latvian State Police (Latvijas Valsts Policija), and an extensive bitcoin mining operation associated with the group was seized in Bulgaria. Today’s announcement is in coordination with announcements by Europol and several law enforcement agencies across Europe who collaborated with the United States to develop parallel investigations and prosecutions of the QQAAZZ members in their own countries.
“Today’s charges, brought in coordination with our European law enforcement partners, reflect the Criminal Division’s steadfast efforts to work with authorities worldwide to protect the public from fraudsters and the money launderers who help them hide their stolen money,” said Acting Assistant Attorney General Brian C. Rabbitt. “Our message to money laundering organizations like QQAAZZ is simple: international borders will not stop the dedicated efforts of law enforcement across the globe to bring you to justice. In addition to the Criminal Division team, I would like to recognize the outstanding efforts of the team led by U.S. Attorney Scott Brady, FBI Pittsburgh, and our European partners.”
“Cybercrime victimizes individuals and companies all over the world, so our work to identify and disrupt cybercriminals requires global collaboration,” said U.S. Attorney Scott W. Brady for the Western District of Pennsylvania. “For the past several years, law enforcement from 16 countries has been conducting coordinated investigations of this criminal gang, and now parallel prosecutions will commence in the United States, Portugal, United Kingdom and Spain. As this case demonstrates, we will be relentless in our pursuit of cybercriminals regardless of where they reside.”
“This was an extensive investigation that had implications around the world,” said FBI Pittsburgh Special Agent in Charge Michael Christman. “Partnerships are essential, as no one agency can combat cybercrime alone. This case highlights the FBI’s strategy to target and dismantle the most significant cybercriminal enterprises through a global task force approach. I can assure everyone that the FBI and our partners will continue to work tirelessly to combat these cyber threats.”
“Cybercriminals are constantly exploring new possibilities to abuse technology and financial frameworks to victimize millions of users in a moment from anywhere in the world,” said Fernando Ruiz, Head of Europol’s European Cybercrime Centre. “Today’s operation shows how through a proper law enforcement international coordination we can turn the table on these criminals and bring them to justice.”
The indictment alleges that the QQAAZZ network laundered, or attempted to launder, tens of millions of dollars’ worth of stolen funds from victims of cybercrimes since 2016.
Comprised of several layers of members from Latvia, Georgia, Bulgaria, Romania, and Belgium, among other countries, the QQAAZZ network opened and maintained hundreds of corporate and personal bank accounts at financial institutions throughout the world to receive money from cybercriminals who stole it from bank accounts of victims. The funds were then transferred to other QQAAZZ-controlled bank accounts and sometimes converted to cryptocurrency using “tumbling” services designed to hide the original source of the funds. After taking a fee of up to 40 to 50 percent, QQAAZZ returned the balance of the stolen funds to their cybercriminal clientele.
The QQAAZZ members secured these bank accounts by using both legitimate and fraudulent Polish and Bulgarian identification documents to create and register dozens of shell companies which conducted no legitimate business activity. Using these registration documents, the QQAAZZ members then opened corporate bank accounts in the names of the shell companies at numerous financial institutions around the world, thereby generating hundreds of QQAAZZ-controlled bank accounts available to receive stolen funds from cyber thieves.
QQAAZZ advertised its services as a “global, complicit bank drops service” on Russian-speaking online cybercriminal forums where cybercriminals gather to offer or seek specialized skills or services needed to engage in a variety of cybercriminal activities. The criminal gangs behind some of the world’s most harmful malware families (e.g.: Dridex, Trickbot, GozNym, etc.) are among those cybercriminal groups that benefited from the services provided by QQAAZZ.
The 14 defendants named in the indictment unsealed today are:
- Nika Nazarovi, aka “Nika Utiashvili,” aka “Mihail Atansov,” aka “Stefan Trifonov Zhelyazkov,” 32, of Georgia;
- Martins Ignatjevs, aka “Yordan Angelov Stoyanov,” aka “Aleksander Tihomirov,” aka “Svetlin Iliyanov Asenov,” 33, of Latvia;
- Aleksandre Kobiashvili, aka “Antonios Nastas,” aka “Ognyan Krasimirov Trifonov,” 32, of Georgia;
- Dmitrijs Kuzminovs, aka “Parush Gospodinov Genchev,” 35, of Latvia;
- Valentins Sevecs, aka “Marek Jaswilko,” aka “Rafal Szczytko,” 32, of Latvia;
- Dmitrijs Slapins, 35, of Latvia;
- Armens Vecels, 24, of Latvia;
- Artiom Capacli, 31, of Bulgaria;
- Ion Cebanu, 26, of Romania;
- Tomass Trescinkas, 25, of Latvia;
- Ruslans Sarapovs, 19, of Latvia;
- Silvestrs Tamenieks, 21, of Latvia;
- Abdelhak Hamdaoui, 48, of Belgium; and
- Petar Iliev, 37, of Bulgaria.
The five defendants charged in the indictment unsealed in October 2019 are:
- Aleksejs Trofimovics, aka “Aleksejs Trofimovich,” aka “Alexey Trofimovich,” aka “Aleko Stoyanov Angelov,” 24, of Latvia;
- Ruslans Nikitenko, aka “Krzysztof Wojciech Lewko,” aka “Milen Nikolchev Nikolov,” aka “Rafal Zimnoch,” 41, of Latvia;
- Arturs Zaharevics, aka “Piotr Ginelli,” aka “Arkadiusz Szuberski,” 33, of Latvia;
- Deniss Ruseckis, aka “Denis Rusetsky,” aka “Sevdelin Sevdalinov Atanasov,” 24, of Latvia; and
- Deinis Gorenko, 25, of Latvia.
The Russian national charged by criminal complaint and arrested in late March 2020 while visiting the United States is Maksim Boiko, aka “Maxim Boyko” aka “gangass,” 30, of Russia.
The U.S. victims who had funds stolen, or attempted to be stolen, from their online bank accounts (including from banks headquartered in Pittsburgh, Pennsylvania) and destined for QQAAZZ-controlled bank accounts overseas include:
- a technology company in Windsor, Connecticut;
- a Jewish Orthodox Synagogue in Brooklyn, New York;
- a medical device manufacturer in York, Pennsylvania;
- an individual in Montclair, New Jersey;
- an architecture firm in Miami, Florida;
- an individual in Acworth, Georgia;
- an automotive parts manufacturer in Livonia, Michigan;
- a homebuilder in Skokie, Illinois;
- an individual in Carrollton, Texas; and
- an individual in Villa Park, California.
Acting Assistant Attorney General Rabbitt and U.S. Attorney Brady praised the outstanding investigative work of the FBI’s Pittsburgh Field Office and their law enforcement partners from Portugal, Spain, the United Kingdom, Latvia, Bulgaria, Georgia, Italy, Switzerland, Poland, Czech Republic, Australia, Sweden, Austria, Germany and Belgium. Acting Assistant Attorney General Rabbitt and U.S. Attorney Brady also thanked Europol in The Hague, Netherlands for coordinating the investigative efforts of the law enforcement agencies from the 15 participating countries. The Justice Department’s Office of International Affairs of the Department’s Criminal Division provided significant assistance by coordinating requests to foreign countries for searches, arrests, extraditions and evidence sharing. Assistance was also provided by the National Cyber-Forensics and Training Alliance (NCFTA) in Pittsburgh.
The case is being prosecuted by Assistant U.S. Attorney Charles A. “Tod” Eberle, Chief of the National Security and Cybercrime Section for the Western District of Pennsylvania, Assistant U.S. Attorney Brian Czarnecki of the Western District of Pennsylvania, and Trial Attorney Michael Parker of the Money Laundering and Asset Recovery Section of the U.S. Department of Justice’s Criminal Division.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Officials Announce International Operation Targeting Transnational Criminal Organization Qqaazz That Provided Money Laundering Services to High-Level CybercriminalsRead the Press Release
Note: Pre-recorded statements from officials quoted in this news release can be viewed here, an infographic can be viewed here, and copies of the indictments can be obtained by clicking on: US v. Nazarovi, et. al. and US v. Trofimovics, et. al.
U.S. Victims of Various Cybercriminal Malware Schemes throughout the United States Had Stolen Multi-Million Dollar Funds Laundered by QQAAZZ
PITTSBURGH – Fourteen members of the transnational criminal organization, QQAAZZ, were charged by a federal grand jury in the Western District of Pennsylvania in an indictment unsealed today. A related indictment unsealed in October 2019 charged five members of QQAAZZ. One additional conspirator, a Russian national, was arrested by criminal complaint in late March 2020 while visiting the United States, bringing the total number of charged defendants to 20. Acting Assistant Attorney General Brian C. Rabbitt of the U.S. Department of Justice’s Criminal Division and United States Attorney Scott W. Brady for the Western District of Pennsylvania, made the announcement today.
The QQAAZZ members, acting in concert with cybercriminals across the world, are accused of conspiring to launder money stolen from victims of computer fraud in the United States and elsewhere. More than 40 house searches were conducted in Latvia, Bulgaria, the United Kingdom, Spain and Italy, with criminal prosecutions initiated in the United States, Portugal, Spain and the United Kingdom. The largest number of searches and arrests were carried out in Latvia by the Latvian State Police (Latvijas Valsts Policija), and an extensive bitcoin mining operation associated with the group was seized in Bulgaria. Today’s announcement is in coordination with announcements by Europol and several law enforcement agencies across Europe who collaborated with the United States to develop parallel investigations and prosecutions of the QQAAZZ members in their own countries.
"Today’s charges, brought in coordination with our European law enforcement partners, reflect the Criminal Division’s steadfast efforts to work with authorities worldwide to protect the public from fraudsters and the money launderers who help them hide their stolen money," said Acting Assistant Attorney General Brian C. Rabbitt. "Our message to money laundering organizations like QQAAZZ is simple: international borders will not stop the dedicated efforts of law enforcement across the globe to bring you to justice. In addition to the Criminal Division team, I would like to recognize the outstanding efforts of the team led by U.S. Attorney Scott Brady, FBI Pittsburgh, and our European partners."
"Cybercrime victimizes individuals and companies all over the world, so our work to identify and disrupt cybercriminals requires global collaboration," said U.S. Attorney Scott W. Brady for the Western District of Pennsylvania. "For the past several years, law enforcement from 16 countries has been conducting coordinated investigations of this criminal gang, and now parallel prosecutions will commence in the United States, Portugal, United Kingdom and Spain. As this case demonstrates, we will be relentless in our pursuit of cybercriminals regardless of where they reside."
"This was an extensive investigation that had implications around the world," said FBI Pittsburgh Special Agent in Charge Michael Christman. "Partnerships are essential, as no one agency can combat cybercrime alone. This case highlights the FBI’s strategy to target and dismantle the most significant cybercriminal enterprises through a global task force approach. I can assure everyone that the FBI and our partners will continue to work tirelessly to combat these cyber threats."
"Cybercriminals are constantly exploring new possibilities to abuse technology and financial frameworks to victimize millions of users in a moment from anywhere in the world," said Fernando Ruiz, Head of Europol’s European Cybercrime Centre. "Today’s operation shows how through a proper law enforcement international coordination we can turn the table on these criminals and bring them to justice."
The indictment alleges that the QQAAZZ network laundered, or attempted to launder, tens of millions of dollars’ worth of stolen funds from victims of cybercrimes since 2016.
Comprised of several layers of members from Latvia, Georgia, Bulgaria, Romania, and Belgium, among other countries, the QQAAZZ network opened and maintained hundreds of corporate and personal bank accounts at financial institutions throughout the world to receive money from cybercriminals who stole it from bank accounts of victims. The funds were then transferred to other QQAAZZ-controlled bank accounts and sometimes converted to cryptocurrency using "tumbling" services designed to hide the original source of the funds. After taking a fee of up to 40 to 50 percent, QQAAZZ returned the balance of the stolen funds to their cybercriminal clientele.
The QQAAZZ members secured these bank accounts by using both legitimate and fraudulent Polish and Bulgarian identification documents to create and register dozens of shell companies which conducted no legitimate business activity. Using these registration documents, the QQAAZZ members then opened corporate bank accounts in the names of the shell companies at numerous financial institutions around the world, thereby generating hundreds of QQAAZZ-controlled bank accounts available to receive stolen funds from cyber thieves.
QQAAZZ advertised its services as a "global, complicit bank drops service" on Russian-speaking online cybercriminal forums where cybercriminals gather to offer or seek specialized skills or services needed to engage in a variety of cybercriminal activities. The criminal gangs behind some of the world’s most harmful malware families (e.g.: Dridex, Trickbot, GozNym,
etc.) are among those cybercriminal groups that benefited from the services provided by QQAAZZ.
The 14 defendants named in the indictment unsealed today are:
1. Nika Nazarovi, aka "Nika Utiashvili," aka "Mihail Atansov," aka "Stefan Trifonov Zhelyazkov," 32, of Georgia;
2. Martins Ignatjevs, aka "Yordan Angelov Stoyanov," aka "Aleksander Tihomirov," aka "Svetlin Iliyanov Asenov," 33, of Latvia;
3. Aleksandre Kobiashvili, aka "Antonios Nastas," aka "Ognyan Krasimirov Trifonov," 32, of Georgia;
4. Dmitrijs Kuzminovs, aka "Parush Gospodinov Genchev," 35, of Latvia;
5. Valentins Sevecs, aka "Marek Jaswilko," aka "Rafal Szczytko," 32, of Latvia;
6. Dmitrijs Slapins, 35, of Latvia;
7. Armens Vecels, 24, of Latvia;
8. Artiom Capacli, 31, of Bulgaria;
9. Ion Cebanu, 26, of Romania;
10. Tomass Trescinkas, 25, of Latvia;
11. Ruslans Sarapovs, 19, of Latvia;
12. Silvestrs Tamenieks, 21, of Latvia;
13. Abdelhak Hamdaoui, 48, of Belgium; and
14. Petar Iliev, 37, of Bulgaria.
The five defendants charged in the indictment unsealed in October 2019 are:
1. Aleksejs Trofimovics, aka "Aleksejs Trofimovich," aka "Alexey Trofimovich," aka "Aleko Stoyanov Angelov," 24, of Latvia;
2. Ruslans Nikitenko, aka "Krzysztof Wojciech Lewko," aka "Milen Nikolchev Nikolov," aka "Rafal Zimnoch," 41, of Latvia;
3. Arturs Zaharevics, aka "Piotr Ginelli," aka "Arkadiusz Szuberski," 33, of Latvia;
4. Deniss Ruseckis, aka "Denis Rusetsky," aka "Sevdelin Sevdalinov Atanasov," 24, of Latvia; and
5. Deinis Gorenko, 25, of Latvia.
The Russian national charged by criminal complaint and arrested in late March 2020 while visiting the United States is Maksim Boiko, aka "Maxim Boyko" aka "gangass," 30, of Russia.
The U.S. victims who had funds stolen, or attempted to be stolen, from their online bank accounts (including from banks headquartered in Pittsburgh, Pennsylvania) and destined for QQAAZZ-controlled bank accounts overseas include:
• a technology company in Windsor, Connecticut;
• a Jewish Orthodox Synagogue in Brooklyn, New York;
• a medical device manufacturer in York, Pennsylvania;
• an individual in Montclair, New Jersey;
• an architecture firm in Miami, Florida;
• an individual in Acworth, Georgia;
• an automotive parts manufacturer in Livonia, Michigan;
• a homebuilder in Skokie, Illinois;
• an individual in Carrollton, Texas; and
• an individual in Villa Park, California.
Acting Assistant Attorney General Rabbit and U.S. Attorney Brady praised the outstanding investigative work of the FBI’s Pittsburgh Field Office and their law enforcement partners from Portugal, Spain, the United Kingdom, Latvia, Bulgaria, Georgia, Italy, Switzerland, Poland, Czech Republic, Australia, Sweden, Austria, Germany and Belgium. Acting Assistant Attorney General Rabbit and U.S. Attorney Brady also thanked Europol in The Hague, Netherlands for coordinating the investigative efforts of the law enforcement agencies from the 15 participating countries. The Justice Department’s Office of International Affairs of the Department’s Criminal Division provided significant assistance by coordinating requests to foreign countries for searches, arrests, extraditions and evidence sharing. Assistance was also provided by the National Cyber-Forensics and Training Alliance (NCFTA) in Pittsburgh.
The case is being prosecuted by Assistant U.S. Attorney Charles A. "Tod" Eberle, Chief of the National Security and Cybercrime Section for the Western District of Pennsylvania, Assistant U.S. Attorney Brian Czarnecki of the Western District of Pennsylvania, and Trial Attorney Michael Parker of the Money Laundering and Asset Recovery Section of the U.S. Department of Justice’s Criminal Division.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Pittsburgh-Area Postal Carriers Charged with Delay or Destruction of MailRead the Press Release
PITTSBURGH, Pa. – Two separate federal criminal complaints were filed today charging employees of the United States Postal Service with delay or destruction of mail by a postal employee, United States Attorney Scott W. Brady announced today.
"During this election season, the integrity of the mails is more important than ever," said U.S. Attorney Brady. "When any public employee, including a mail carrier, violates the law, we will respond quickly. These carriers each attempted to destroy mail, including both political advertisements and an application for a mail-in ballot. Anyone who would obstruct or delay United States mail that includes election-related materials should know that the Department of Justice will take quick, efficient action against them."
"The vast majority of the Postal Service’s 630,000 employees are trustworthy, dedicated individuals working around the clock to deliver the nation’s mail," said U.S. Postal Service Office of Inspector General Special Agent in Charge Kenneth Cleevely, of the Eastern Area Field Office. "However, when one of those employees decide to violate the trust placed in them, Special Agents with the U.S. Postal Service Office of Inspector General will conduct a thorough investigation, and seek criminal prosecution and termination of employment when appropriate. USPS OIG Special Agents are committed to ensuring that all election and political mail is delivered without delay or disruption. To report delay or destruction of mail, or any other crimes committed by postal employees, contact our Special Agents at www.uspsoig.gov or 888-USPS-OIG."
A one-count Criminal Complaint named Sean Troesch, 48, of Pittsburgh, PA 15236 (Baldwin), as the sole defendant.
According to the criminal complaint, Sean Troesch was a City Carrier for and employee of the United States Postal Service. He worked out of the Post Office in Mount Oliver, Pennsylvania, and lived on Meadowcrest Road in Baldwin, Pennsylvania. On or about October 8, 2020, an employee of the Postal Service received an allegation about a mail carrier who lives on Meadowcrest Road in Baldwin. According to the report received by the Postal Service, the mail carrier who lives on Meadowcrest Road had previously been seen taking mail from the rear of his vehicle and placing it into trash bags. The mail carrier who lives on Meadowcrest Road was later identified as Sean Troesch.
On Sunday, October 11, 2020, a Special Agent with the United States Postal Service – Office of Inspector General received a report that Troesch had placed nine trash bags at the street in front of his house. Trash pickup in Troesch’s neighborhood was scheduled for Monday, October 12, 2020.
Later on October 11, 2020, Special Agents went to Troesch’s residence to speak with him about the contents of the trash bags. When asked if the bags in front of his house contained mail, Troesch indicated that one of the bags did. An investigators opened that bag, which included only bundled mail. Although Troesch initially reported that only that single bag contained mail, he ultimately acknowledged that all of the trash bags did and told investigators to take them. Four mail items were also recovered from Troesch’s personal vehicle. Troesch told investigators that the mail had been intended for delivery on his route, and acknowledged that it was wrong to throw mail into the trash.
On October 13, 2020, at the Mount Oliver Post Office, agents inventoried the mail that had been recovered from Troesch’s vehicle and the trash bags in front of his residence. It included 314 items of First Class Mail, seven items of Certified Mail, one item of Priority Mail, and 1,311 items political advertisements or similar items of campaign mail. One application requesting the delivery of a mail-in ballot was included among the pieces of First Class Mail. The seized mail did not contain any mail-in ballots.
A second criminal complaint named James McLenigan, 29, of Pittsburgh, PA 15201, (Lawrenceville) as the sole defendant.
According to the criminal complaint, James McLenigan was a City Carrier for and employee of the United States Postal Service, working out of the Pittsburgh Post Office Bloomfield Station. His delivery route included parts of Pittsburgh’s Lawrenceville neighborhood.
On or about October 8, 2020, a Special Agent with the United States Postal Service – Office of Inspector General spoke with an employee of the Persad Center, located at 5301 Butler Street in Lawrenceville, who reported recovering mail from a trash bin outside of their office. The employee also reported that, on October 7, 2020 and October 8, 2020, the Persad Center’s video surveillance system had recorded a mail carrier throwing mail into a trash bin. The Special Agent took possession of the mail that had been collected by the Persad Center and the video surveillance.
The mail that had been collected by the Persad Center was subsequently inventoried by agents. It included 75 items of First Class Mail and 25 items of political advertisements or similar items of campaign mail. The seized mail did not contain any mail-in ballots, but it did contain one request for a mail-in ballot.. Agents also showed the video surveillance obtained from the Persad Center to the Postmaster of the Pittsburgh Post Office Bloomfield Station, who believed that the depicted carrier was James McLenigan.
On October 8, 2020, investigators interviewed McLenigan about the mail recovered from the trash bin outside of the Persad Center. During the interview, McLenigan acknowledged discarding mail intended for delivery into multiple trash cans along his route. He estimated that he discarded mail intended for delivery into a trash can that day, October 8, 2020, and acknowledged that it was wrong to do so.
The law provides for a maximum term of imprisonment of five years, a fine of $250,000, or both.
Assistant U.S. Attorney Jeffrey Bengel is prosecuting these cases on behalf of the government.
Special Agents of the United States Postal Service – Office of Inspector General investigated these cases.
A criminal complaint is only a charge and is not evidence of guilt. A defendant may not be prosecuted unless, within 30 days, a grand jury has found probable cause to believe that the defendant is guilty of an offense.
Former Pittsburgh Woman Sentenced for Role in Drug Trafficking RingRead the Press Release
PITTSBURGH - A former resident of the Beltzhoover neighborhood in Pittsburgh, has been sentenced in federal court to two years’ probation and 100 hours of community service on her conviction of a drug trafficking charge in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
United States District Judge William S. Stickman, IV, imposed the sentence on Amber Rogers, age 28, of North Carolina.
According to information presented to the court, the Greater Pittsburgh Safe Streets Task Force conducted an investigation targeting the Darccide/Smash 44, or "DS44", neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February 2019, the United States received authorization to conduct a federal wire investigation, which continued through June 2019.
Intercepted communications confirmed that Ms. Rogers was conspiring with others to distribute controlled substances, including heroin and fentanyl, in and around the South Side of Pittsburgh. Specifically, Ms. Rogers conducted narcotics transactions on behalf of other members of the conspiracy by obtaining the drugs from stash locations and distributing them to individual customers. The Court has earlier accepted Ms. Rogers’ guilty plea to conspiracy to distribute 10 grams of heroin and fentanyl.
Prior to imposing sentence, Judge Stickman stated that he was imposing a term of probation, rather than imprisonment, because, among other things, Rodgers was one of the least culpable of the defendants charged in the case, because she had no criminal history, and because she was lawfully employed.
Assistant United States Attorneys Carolyn J. Bloch and Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Rogers. The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pitcairn Woman Pleads Guilty to Child Sexual Exploitation ChargeRead the Press Release
PITTSBURGH - A former resident of Pitcairn, Pennsylvania, pleaded guilty in federal court to a charge of production and attempted production of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Rebecca Owens, age 24, pleaded guilty to one count before United States District Judge Robert J. Colville.
In connection with the guilty plea, the court was advised that on or about May 17, 2019 to on or about May 18, 2019, aided and abetted by another person known as "M.K.," Owens induced a female child victim to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct for Owens to send to M.K. during a sexual online chat.
"Our mandate is to use every resource to protect our children from sexual exploitation at the hands of pedophiles," said U.S. Attorney Brady. "No matter what dark shadows these predators hide in, law enforcement will shine a light on them and hold them accountable for their conduct. Our prosecutors and law enforcement partners will not rest until every victim of child sexual exploitation is rescued and defendants like Owens are behind bars."
Judge Colville scheduled sentencing for February 24, 2020, at 10 a.m. The law provides for a total sentence of not less than 15 years and not more than 30 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Pennsylvania State Police, as part of the Northeast Computer Crimes Task Force, and the Allegheny County Police and the Federal Bureau of Investigation, members of the Western Pennsylvania Violent Crimes Against Children Task Force, conducted the investigation that led to the prosecution of Owens.
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
Felon Indicted on Drug and Gun ChargesRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating drug trafficking and federal firearms laws, United States Attorney Scott W. Brady announced today.
The six-count Indictment named Raymar McKenzie, age 32, as the sole defendant.
According to the Indictment, on or about August 12, August 19, September 15, and September 18, 2020, McKenzie possessed and distributed a quantity of cocaine base and fentanyl. The Indictment also alleges that on or about September 18, 2020, the defendant possessed a firearm and ammunition in furtherance of this drug trafficking crime. McKenzie, a convicted felon, is prohibited by Federal law from possessing a firearm.
The law provides for a maximum total sentence of not more than life imprisonment, a fine of $8,500,000 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 Brendan J. McKenna is prosecuting this case on behalf of the government.
The Allegheny County Police Narcotics conducted the investigation leading to the Indictment in this case.
This prosecution is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Indicted in Project Safe Childhood CaseRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of production and attempted production of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
The three-count Indictment, returned on September 16 and unsealed October 5, named Matthew Joseph Gourley, age 48, as the sole defendant.
According to the Indictment, on January 6, 2020, January 14, 2020 and March 2, 2020, Gourley coerced Minor A, a minor female victim, to engage in sexually explicit conduct for the purpose of producing a visual depiction, namely, digital images and videos, depicting Minor A engaging in sexually explicit content.
The law provides for a maximum total sentence of not less than 15 years in prison but not more than 90 years in prison, a fine of $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Allegheny County Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
New York City Man Sentenced to 12 Years in Prison for Supplying DS44 Gang with Heroin and FentanylRead the Press Release
PITTSBURGH - A former resident of the Bronx borough of New York City, has been sentenced in federal court to 12 years’ imprisonment to be followed by a term of supervised release of 3 years on his conviction of charges related to drug trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
United States District Judge William S. Stickman, IV imposed the sentence on Holiday Vaughn, age 36, formerly of New York, New York.
According to information presented to the court at the time of his guilty plea, the Greater Pittsburgh Safe Streets Task Force initiated an investigation in 2017, targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
The court was further advised that Mr. Vaughn was a supplier of heroin and fentanyl to the drug trafficking organization, and that law enforcement officials intercepted conversations between Vaughn and his co-conspirator, Christopher Highsmith, discussing drug transactions. Additionally, law enforcement recovered 23 grams of fentanyl and heroin during a traffic stop on May 29, 2019, when Vaughn was traveling to Pittsburgh from New York. In connection with his guilty plea, Vaughn also accepted responsibility for distributing and possessing with intent to distribute 39 grams of heroin and fentanyl in the Pittsburgh area.
Prior to imposing sentence, Judge Stickman noted the defendant’s early admission of criminal conduct and his obvious desire to turn his life around going forward.
Assistant United States Attorneys Carolyn J. Bloch and Brendan J. McKenna prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
McKeesport Felon Sentenced to 9 Years in Prison for Drug and Gun OffensesRead the Press Release
PITTSBURGH - A former resident of McKeesport, has been sentenced in federal court to 9 years imprisonment to be followed by five years of supervised release on his conviction of conspiracy to distribute 40 grams or more of fentanyl and being a felon in possession of a firearm, United States Attorney Scott W. Brady announced today.
Senior United States District Judge David S. Cercone imposed the sentence on J’Vhante Hampton, age 27.
According to information presented to the court, between October 2016 and March 2017, Hampton participated in a conspiracy to distribute 40 grams or more of fentanyl, and on March 21, 2017, he possessed three firearms and 74 rounds of ammunition after have been convicted of the felony offenses of Aggravated Assault (three counts), Conspiracy to Commit Aggravated Assault, and Carrying a Firearm without a License.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Brady commended the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Allegheny County Police Department for the investigation leading to the successful prosecution of Hampton.
Don’t Be A Victim: Join Us October 15 for a Free Senior Outreach Event on Protecting Yourself from Financial Fraud and Potential ScamsRead the Press Release
PITTSBURGH - On October 15, 2020, at 10:00 a.m., the United States Attorney’s Office for the Western District of Pennsylvania, the Securities and Exchange Commission (SEC), and the Federal Bureau of Investigation (FBI) Pittsburgh Division are holding a virtual town hall event focused on protecting seniors from financial fraud and potential scams during the COVID-19 pandemic, U.S. Attorney Scott W. Brady announced.
One of the best ways to protect yourself or a loved one from financial fraud is to remain informed. The U.S. Attorney’s Office, the SEC, and the FBI have partnered to raise awareness and educate seniors in Pennsylvania about the latest financial scams.
The free virtual town hall will be live on the SEC’s website, www.sec.gov, between 9:30 a.m. and 11:00 a.m. on Thursday, October 15, 2020 ET. Attendees are also able to call in using the dial-in: 415-527-5035 or 929-251-9612, with the event ID 199 951 7027.
Participants may submit questions for the speakers in advance to: [email protected]. Attendees can also register in advance at [email protected]. Registration is encouraged but not required.
The DOJ Elder Justice Initiative aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educating older adults on how to identify scams; and promoting greater coordination with law enforcement partners. The DOJ provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime at www.ovc.gov. Additional elder justice resources, training, and outreach materials can be found at the Elder Justice Website at www.elderjustice.gov. Elder fraud complaints may be sent to the U.S. Attorney’s Office at [email protected] or to the IC3 at www.ic3.gov.
Pittsburgh Man Sentenced to 5+ Years in Prison for Drug and Gun OffensesRead the Press Release
PITTSBURGH – Raymont Harris was sentenced to 68 months in prison for committing fentanyl and heroin trafficking and gun crimes, United States Attorney Scott W. Brady announced today.
Harris, age 25, of Pittsburgh, was sentenced by United States District Judge William S. Stickman IV. Judge Stickman also sentenced Harris to serve three years of supervised release at the conclusion of his prison sentence.
In September 2018, while on bond in a state heroin-trafficking case, Harris distributed fentanyl and heroin and possessed a 9mm Ruger pistol in furtherance of his drug trafficking crimes. He was subsequently indicted and convicted in federal court via guilty pleas.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pennsylvania Office of Attorney General, the North Fayette Police Department, the Pittsburgh Bureau of Police, the Federal Bureau of Investigation, and the fBureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the convictions and sentence in this case.
This case was prosecuted as part of Project Safe Neighborhoods (PSN) which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Duquesne Man Gets 22-Year Federal Prison Sentence for Fifth Drug Trafficking ConvictionRead the Press Release
PITTSBURGH - A resident of Duquesne, PA, has been sentenced to 22 years' (264 months’) imprisonment and eight years of supervised release after his conviction for violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Senior United States District Judge David Stewart Cercone imposed the sentence on Donte Taylor, 37, of 825 Catherine Street, Duquesne, Pennsylvania who was found guilty of possessing with intent to distribute 28 grams or more of cocaine base and quantities of cocaine, heroin, fentanyl, and marijuana.
The evidence introduced during the trial established that on May 10, 2018, Taylor was on parole for a previous drug trafficking conviction when Pennsylvania Board of Probation and Parole Agents arrived at his residence to conduct a home visit. Agents smelled an odor of marijuana in Taylor’s residence. Taylor’s co-defendant, Ericka Smith, provided agents and Officers with the Duquesne Police Department consent to search the residence. They searched the residence and recovered approximately 279 grams of crack cocaine, 33 grams of cocaine, 56 grams of heroin, 12 grams of fentanyl, 155 grams of marijuana, $14,466, scales, and other drug trafficking materials. This was Taylor’s fifth drug trafficking conviction.
In pronouncing the sentence, Judge Cercone referenced Taylor’s lengthy criminal history and willingness to engage in drug trafficking despite numerous, previous drug trafficking convictions. Judge Cercone also emphasized that Taylor committed the instant offense while on parole and has never accepted any responsibility for his criminal conduct. Judge Cercone remanded Taylor to the custody of the United States Bureau of Prisons.
Assistant United States Attorney and Mark V. Gurzo prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration, Duquesne Police Department, and Pennsylvania Board of Probation and Parole for conducting the investigation leading to the prosecution of Taylor.
Owner of McKeesport Asian Grocery Pleads Guilty to Food Stamp Fraud and Money Laundering ConspiracyRead the Press Release
PITTSBURGH - A resident of Glassport, PA pleaded guilty in federal court to charges of Conspiracy, Food Stamp Fraud, and Money Laundering Conspiracy, United States Attorney Scott W. Brady announced today.
Sin Y Sit, age 46, pleaded guilty to three counts before United States District Judge William S. Stickman.
In connection with the guilty plea, the court was advised that beginning in and around March 2014, and continuing thereafter until May 2017, the defendant engaged in acts of food stamp fraud and money laundering conspiracy. Sin Y Sit and his wife Qiao Jiang owned and operated Mei A. Asian Grocery in McKeesport, PA. Sit and Jiang allowed customers to unlawfully exchange food stamp credits under the USDA’s S.N.A.P. program for cash (the defendants paid out fifty cents on a dollar) and other ineligible grocery items, such as tobacco. The amount of fraud during the term of the conspiracy is between $250,000 and $550,000. The defendant also engaged in financial transactions involving cash withdrawals of money which had been transferred into the store’s business account by the USDA to reimburse the defendant and his store for the food stamp credits which had been scanned by the defendant and his customers at the store during the fraudulent transactions. The cash withdrawn by the defendant was then used by the defendant at his store to pay more customers in the unlawful use of the food stamp credits.
Judge Stickman scheduled sentencing for February 17, 2021. The law provides for a total sentence of 45 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The U.S. Department of Agriculture Office of Inspector General, Department of Homeland Security Homeland Security Investigations, and Internal Revenue Service Criminal Investigation conducted the investigation that led to the prosecution of Sin Y Sit.
McKeesport Felon Charged with Illegal Gun PossessionRead the Press Release
PITTSBURGH - A resident of McKeesport, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Spayne Swindle, Jr., age 26, as the sole defendant.
According to the Indictment, on October 2, 2020, Swindle possessed a firearm, specifically a Glock 20, 10 mm semi-automatic handgun, knowing he had previously been convicted of Distribution of Cocaine within 1,000 Feet of a Protected Location, in the United States District Court for the Northern District of West Virginia, on January 8, 2014. Federal law prohibits felons from possessing firearms.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000 or both. However, if it is determined that the defendant has three previous convictions for a violent felony or a serious drug offense, or both, then the term of imprisonment is not less than 15 years to a maximum of life imprisonment. 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 Allegheny County Police conducted the investigation leading to the Indictment in this case.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian enhances coordination of federal, state, and local authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the Pennsylvania Instant Criminal Background Check System (PICS), to include taking appropriate actions when a prospective purchaser is denied for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Erie Woman Admits Defrauding the Non-Profit She Founded to Cover Her Gambling and Personal ExpensesRead the Press Release
ERIE, Pa. - The founder of an Erie non-profit organization and a resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of wire fraud and false writing or document to the government, United States Attorney Scott W. Brady announced today.
Sonya Arrington, 53, pleaded guilty to two counts before United States District Judge David S. Cercone. Arrington also accepted responsibility for all of the other counts of the Indictment and agreed that the conduct alleged at those counts may be considered by the Court at sentencing and utilized to calculate her Sentencing Guideline range.
"Every individual who made a donation to Sonya Arrington’s non-profit organization to help prevent teen violence was cheated," said U.S. Attorney Brady. "The Mothers Against Teen Violence has unofficially ceased to exist, and its initial intent to prevent violence among teens is left unfulfilled. We will continue to prioritize cases that compromise the public’s trust in prominent public servants."
"Ms. Arrington’s charity was supposed to help youth in the Erie community. Instead, she embezzled tens of thousands of dollars to line her own pocket," said FBI Pittsburgh Special Agent in Charge Michael Christman. "She deprived her community and its youth of that money and all the work it could’ve done. It is extremely disappointing when greed and selfishness take over, and today’s guilty plea sends a message that the FBI and our partners will continue our efforts to root out people who believe they are above the law."
"My office will work to hold accountable those who defraud or attempt to defraud the Social Security Administration," said Gail S. Ennis, Inspector General of Social Security. "I want to thank the FBI for its partnership throughout this investigation, and the U.S. Attorney’s Office for bringing the charges that resulted in today’s guilty plea."
In connection with the guilty plea, the court was advised that Arrington diverted funds donated to Mothers Against Teen Violence (MATV), a non-profit organization she created to help prevent violence among teenagers, to pay for her gambling and personal expenses. Specifically, from December 2011 to March 2018, Arrington engaged in a scheme to defraud MATV of at least $70,000. She solicited donations from individuals and entities in person and by email; received donations to MATV in cash and checks payable to MATV and deposited a portion of the donations into MATV bank accounts and kept a portion in cash for herself; and did not deposit cash but kept cash donations for herself. She also used the debit card for the MATV bank accounts to make purchases unrelated to the organization’s purposes, for things like personal items of clothing, groceries, car washes and food at restaurants; used the debit card for MATV to pay personal bills for
T-Mobile, State Farm, First Energy and others; and deposited checks to MATV into personal bank accounts and kept a portion for personal use.
Further, on at least 113 occasions from April 2012 to January 2018, Arrington used the MATV debit card to withdraw MATV funds at Presque Isle Downs & Casino. She would also on occasion leave the casino to travel to a nearby Sheetz for the purpose of using the MATV debit card to withdraw MATV funds and then immediately return to the casino to gamble with those funds. Arrington also fraudulently received approximately $29,558 in Social Security disability benefits and submitted a document to the Social Security Administration that contained a false statement which falsely claimed that she had submitted wage documentation to the Social Security Administration
Judge Cercone scheduled sentencing for February 23, 2021, at 11 a.m. The law provides for a total sentence of 25 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Arrington on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Special Agent Kenneth Grubb of the Social Security Office of the Inspector General, Philadelphia Field Division, under the supervision of Special Agent-in-Charge Michael McGill, conducted the investigation that led to the prosecution of Arrington.
Erie Man Sentenced to 20 Years for Fentanyl Death, Firearms OffensesRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty and was sentenced in federal court to 20 years (240 months) in prison on his conviction of violating federal drugs and firearms laws, United States Attorney Scott W. Brady announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Dona Arell Cowans, 38.
According to information presented to the court, Cowans sold a quantity of fentanyl that caused the death of R.R.W. on July 8, 2019. Investigators were able to conduct additional controlled buys from Cowans and during a search of Cowans’ residence the following day, located an additional 34 grams of fentanyl, cash, a loaded firearm, scales and packaging materials.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
United States Attorney Brady commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Cowans. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the Fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Cheswick Man Charged with Defrauding U.S. Postal ServiceRead the Press Release
PITTSBURGH, PA - A resident of Cheswick, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud and theft of government property, United States Attorney Scott W. Brady announced today.
The 12-count Indictment named Xiaodong Zhang, age 40, as the sole defendant.
According to the Indictment, from June 2015 to November 2016, the defendant falsified postage labels on the small parcels generated by his home business and defrauded the postal service in excess of $50,000.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The United States Postal Inspection Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.