Western District of Pennsylvania

PITTSBURGH - Kevin Livsey was sentenced to 19 years and two months (230 months) in federal prison for committing fentanyl and heroin trafficking and firearm crimes while on federal supervised release for heroin trafficking crimes, United States Attorney Scott W. Brady announced today.

Livsey, age 32, of Pittsburgh, was sentenced by United States Circuit Judge D. Michael Fisher. Livsey was ordered to serve six years of supervised release following his prison sentence.

Livsey was convicted of (1) possession with intent to distribute fentanyl, carfentanil, and heroin on May 9, 2018; (2) possession of a firearm in furtherance of a drug trafficking crime also on May 9, 2018; and (3) distribution of fentanyl and heroin on April 11, 2018. Livsey was on federal supervised release in 2018 following a prison sentence for prior federal convictions for distributing heroin. Livsey was also previously convicted of heroin trafficking in 2010 in Pennsylvania state court.

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

The Federal Bureau of Investigation, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pittsburgh Bureau of Police, and the Allegheny County Sheriff’s Office 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.

 

PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 84 months of imprisonment and 5 years of 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 Cathy Bissoon imposed the sentence on Mukesh Khawas. According to information presented to the court, from June 14, 2016, to June 15, 2016, Khawas engaged in online chat conversations with a female child via the social networking/dating application Skout.com, and during the conversations, Khawas requested and received sexually explicit images, knowing the minor victim had not yet attained 12 years of age.

In addition to his conviction for receipt of material depicting the sexual exploitation of a minor, Khawas acknowledged his responsibility for the production and possession of material depicting the sexual exploitation of a minor. Khawas, who is a citizen of Bhutan but a lawful permanent resident of the United States, has also agreed to be deported to Bhutan upon the conclusion of his sentence without the ability to appeal or reenter the United States.

Assistant United States Attorneys Christy C. Wiegand and Jessica Lieber Smolar prosecuted this case on behalf of the government.

The Federal Bureau of Investigation, the Allegheny County District Attorney’s Office, and the West Virginia State Police conducted the investigation leading to the successful prosecution of Khawas.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

PITTSBURGH - A former resident of Wilmerding, PA, pleaded guilty in federal court on one count of possession with intent to distribute more than 40 grams of fentanyl, United States Attorney Scott W. Brady announced today.

Ronnell Lawrence, age 31, pleaded guilty yesterday before United States District Judge David Cercone.

In connection with the guilty plea, the court was advised that on July 10, 2017, Rondell Lawrence drove his twin brother and co-defendant, Ronnell Lawrence to the Greyhound Bus Station in downtown Pittsburgh. Ronnell Lawrence then boarded a bus bound for New York City. Ronnell Lawrence returned to Pittsburgh after spending only one hour in New York City. On July 11, 2017, Rondell Lawrence returned to the Greyhound Bus Station to pick up his brother. Investigators observed Ronnell putting a large camouflage backpack into the back of the Nissan Pathfinder. Investigators later stopped the Nissan Pathfinder for having an expired registration. A subsequent search of the vehicle and the camouflage bag placed there by Ronnell revealed eight large bags of suspected heroin and fentanyl and a bus ticket to New York City. The Drug Enforcement Administration Laboratory later tested the substances seized from the bag and revealed that the substances were approximately 390 grams of a heroin/fentanyl mixture.

Judge Cercone set sentencing for September 10, 2019 at 1 p.m. The law provides for a maximum total sentence of not less than five years in prison and up to 40 years in prison, a fine of up to $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Lawrence has been detained since his initial appearance and will remain detained pending sentencing. Co-defendant Rondell Lawrence was previously sentenced to five years (60 months) in prison on the same charge.

Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.

The Drug Enforcement Administration, the Allegheny County District Attorney’s Narcotics Enforcement Team (DANET), Pittsburgh Bureau of Police, and North Versailles Police Department conducted the investigation leading to the indictment in this case.

PITTSBURGH, PA – United States Attorney Scott W. Brady announced today that three individuals were sentenced and three individuals entered guilty pleas in federal court in Pittsburgh this week in cases being prosecuted as part of the District’s Project Safe Neighborhoods (PSN) initiative.

"The PSN program was reinvigorated in 2017, as part of the Justice Department’s renewed focus on targeting each community’s most violent criminals," said U.S. Attorney Brady. "PSN brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone."

The following cases are products of PSN’s collaborative effort.

On Monday, May 13, Kedron Kedren Broadus, 34, of Pittsburgh, pleaded guilty before Senior United States District Judge Arthur J. Schwab. On November 13, 2017, Broadus, who has a prior felony conviction for Possession with Intent to Distribute Cocaine Base, unlawfully possessed a .40 caliber Glock 23 handgun and ammunition. Broadus was a passenger in a vehicle stopped by Pittsburgh Bureau of Police officers for a traffic violation, and he fled from the scene of the stop. During his flight, Broadus dropped the firearm. The officers eventually caught Broadus, and he had a backpack that contained multiple rounds of ammunition. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.

Judge Schwab scheduled sentencing for October 28, 2019 at 10 a.m. Also at that date and time, Judge Schwab will sentence Broadus because he violated the conditions of his supervised release by, among other ways, illegally possessing a firearm.

U.S. Attorney Brady prosecuted Broadus in 2005-2006 when Mr. Brady served as an Assistant U.S. Attorney. On February 16, 2006, Broadus received a sentence of 10 years in prison for trafficking crack cocaine. Despite the lengthy prison term, Broadus re-engaged in serious criminal activity after being released.

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

Also on Monday, Darby Donta Tigney, 24, of Pittsburgh, pleaded guilty before Judge Schwab. On October 14, 2018, Tigney illegally possessed a 9mm Smith and Wesson handgun. Tigney had been convicted of the felony offense of Possession of a Firearm with an Altered Serial Number in the Court of Common Pleas of Allegheny County just three months earlier on July 30, 2018.

Judge Schwab scheduled sentencing for October 28, at 11 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both.

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

The Pittsburgh Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigations that led to the prosecution of Kedron Broadus and Darby Donta Tigney.

On Wednesday, May 15, 2019, Herbert Lee Pope, 28, formerly Aliquippa, Pennsylvania, was sentenced to four years (48 months) in prison, five years of supervised release, and restitution in the amount of $3,793.25, on his conviction for violating federal bank robbery and firearms laws. United States District Judge Cathy Bissoon imposed the sentence. On February 16, 2016, Pope and another male entered the Sewickley Savings Bank in Sewickley, PA, both utilizing black semi-automatic handguns, vaulted the teller counter, and robbed the bank. The loss to the bank was $3,543.25.

Assistant United States Attorneys Jeffrey R. Bengel and Shaun E. Sweeney prosecuted this case on behalf of the government. The Federal Bureau of Investigation, the Sewickley Police Department, the Allegheny County Police Department, and the Ambridge Police Department conducted the investigation.

Also on May 15, 2019, Zackory James Sadler, 34, with former addresses in Monessen and Washington Pennsylvania, was sentenced by Senior United States District Judge Donetta W. Ambrose to three years of additional supervision and six months of incarceration, consecutive o all other sentences for escaping his federal sentence.

Sadler was back in federal prison for previously escaping from federal custody. He was back at the Renewal Center halfway house in Pittsburgh on December 19, 2018 and was given permission to meet with his federal Probation Officer (PO). Sadler did not visit his PO and then failed to return to the Renewal Center. The United States Marshals Service Fugitive Unit began an investigation and the Renewal Center contacted Sadler’s friends and family. On December 21, 2019, Sadler finally returned to the Renewal Center. He was subsequently removed from the halfway house and sent back to prison.

Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government. AUSA Lenhardt informed the Court that the current case is the defendant’s 17th conviction in juvenile and adult court. In recent years, Sadler was convicted of multiple cases in adult court, including a prior 2008 Washington County escape for walking away from a halfway house. In 2009, the defendant was charged in federal court with being a felon in possession of a firearm and was ultimately sentenced to five years (60 months) of incarceration. On August 9, 2013, the defendant walked away from the federal halfway house. He was later charged with escape and sentenced in 2014. Thus, the current matter actually involves his conviction for escaping from his escape sentence.

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

On May 16, 2019, Robert Tippett, 22, of Pittsburgh pleaded guilty before United States District Judge David S. Cercone. On May 4, 2018, Tippett possessed a loaded .357 caliber Smith & Wesson revolver. It is unlawful for Tippett, who has previously been convicted of a crime punishable by a term of imprisonment exceeding one year, to possess a firearm.

Judge Cercone scheduled sentencing for September 10, 2019. The law provides for a maximum total sentence of ten years in prison, a fine of $250,000 or both. Pending sentencing, the court ordered that Tippett remain in custody.

Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.

On May 17, 2019, Jaimere Erick Dehonney, 22, of Pittsburgh, was sentenced to four years (48 months) in prison and three years’ supervised release. United States District Judge Reggie Walton imposed the sentence. On June 8, 2017, Dehonney conspired with others in the Western District of Pennsylvania to possess with intent to distribute and distribute heroin, a Schedule I controlled substance. The Court was further advised that, on or about June 8, 2017, Dehonney unlawfully possessed two firearms – a 5.56 caliber "AK-style" pistol and a .45 caliber Springfield XD pistol (and ammunition for the same) – while he was an unlawful user of a controlled substance. Federal law prohibits the possession of a firearm and ammunition by an unlawful user of a controlled substance.

Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.

The Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Pittsburgh Bureau of Police conducted the investigation.

Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant(s).

This case was brought 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.

PITTSBURGH, Pa. - A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of possession with intent to distribute 10 grams or more of a fentanyl analogue, United States Attorney Scott W. Brady announced today.

William Lewis, 30, pleaded guilty to one count before Senior United States District Court Judge David S. Cercone.

In connection with the guilty plea, the court was advised that, on August 5, 2017, Pittsburgh Bureau of Police executed a search warrant on the defendant’s residence in the Oakland section of Pittsburgh. Inside of the home, police found a quantity of suspected heroin and "cut" which tested positive for 56 grams of cyclopropyl fentanyl. The search also revealed 225 stamp bags of packaged cyclopropyl fentanyl, stamped "Ferrari." Lewis also had 19 stamp bags that tested positive for straight fentanyl. Packaging paraphernalia was also found.

Judge Cercone scheduled sentencing for October 9, 2019. Judge Cercone ordered Lewis to remain detained pending sentencing. The law provides for a term of imprisonment of not less than 5 years to a maximum of 40 years. A fine not to exceed $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.

The Department of Homeland Security Investigations, the United States Postal Inspection Service and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Lewis.

PITTSBURGH, Pa. – A resident of Greenville, Pennsylvania, has been sentenced in federal court to a term of imprisonment of time served or 200 days, to be followed by two years of supervised release on her conviction on a charge of possession of a controlled substance, United States Attorney Scott W. Brady announced today.

Chief United States District Court Judge Mark R. Hornak imposed the sentence on Kristen Shearer, 24.

According to information presented to the court, on August 9, 2017, law enforcement executed a search warrant at a residence in the Elliot section of Pittsburgh connected to main target Lynell Guyton. Kristen Shearer and three other individuals, including Guyton were present at the house. Large amounts of narcotics and packaging paraphernalia were visible. The Allegheny County Medical Examiner’s Office confirmed that the narcotics recovered contained cyclopropyl fentanyl, an analogue of fentanyl. She admitted to packaging some of the stamp bags.

Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.

The Department of Homeland Security Investigations, the United States Postal Inspection Service and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Shearer

PITTSBURGH, Pa. - A former resident of Port Vue, Pennsylvania, pleaded guilty in federal court to charges of conspiracy to distribute and possession with intent to distribute one kilogram or more of heroin, United States Attorney Scott W. Brady announced today.

Jarran Bell, 38, formerly of Port Vue, PA, pleaded guilty to three counts before United States District Court Judge Cathy Bissoon.

In connection with the guilty plea, the court was advised that, this investigation, which utilized Title III intercepts from December 2014 through April 2015 of several different cellular telephones, surveillance, controlled drug purchases, and other investigative techniques, established the existence of a number of overlapping and interrelated drug distribution networks at work in the Western District of Pennsylvania and New Jersey.

Bell and his girlfriend Krystle Barretto were living together during the investigation. Bell and Barretto maintained numerous other residences, which were used as stash houses. Amanda Santiago lived in one of those residences during the investigative period.

In April of 2015, Bell and Barretto orchestrated two large shipments of heroin from Patterson, New Jersey, back to the McKeesport/Port Vue area. On April 19, 2015, a courier, Amanda Santiago, transported approximately 500 bricks of heroin from Patterson, New Jersey back to McKeesport via taxi cab.

On April 20, 2015, several search warrants were conducted. One of the search warrants took place at the primary residence of Bell and Barretto. Agents seized: a loaded firearm, approximately five bricks of heroin and a money counter. All of the aforementioned items were seized from the master bedroom of Bell and Barretto. The loaded gun was located in a dresser drawer along with the five bricks of heroin. Baretto was the lawful owner of the firearm.

Judge Bissoon scheduled sentencing for September 11, 2019. Judge Bissoon ordered Bell remained detained pending sentencing. The law provides for a term of imprisonment of not less than 15 years to a maximum of life. A fine not to exceed $20,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Amanda Santiago pleaded guilty and was sentenced to 2 ½ years (30 months) in prison. Krystle Barretto pleaded guilty and is scheduled to be sentenced on June 19, 2019.

Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Bell.

 

PITTSBURGH -A felon from Ellwood City, Pennsylvania, pleaded guilty in federal court to charges of violating federal firearms and narcotics laws, United States Attorney Scott W. Brady announced today.

Derick Davare, 32, pleaded guilty to four counts before United States District Judge Arthur J. Schwab.

In connection with the guilty plea, the court was advised that from in and around 2015, and continuing to on or about October 22, 2018, Davare conspired with others to distribute and possess with intent to distribute 400 grams or more of fentanyl, a Schedule II controlled substance. Additionally, on or about October 22, 2018, Davare, being a convicted felon, illegally possessed a F.N. (FN Herstal) Five-Seven, 57 Caliber Pistol, a Sig-Sauer P226 9mm Pistol with an obliterated serial number, 5.7 x .28 ammunition and 9mm ammunition. He also possessed additional rounds of ammunition on August 28, 2018. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm or ammunition.

Judge Walton scheduled sentencing for September 20, 2019 at 9 a.m. The law provides for a total sentence of not less than ten years in prison and not more than life in prison, a fine of $15,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorneys Brendan T. Conway and Marnie Sheehan-Balchon are prosecuting this case on behalf of the government.

A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation that led to the prosecution of Derick Davare. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lawrence County Drug Task Force, Pennsylvania Office of Attorney General, Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. 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.

PITTSBURGH – Seventeen people in four states have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics, money laundering and postal laws, United States Attorney Scott W. Brady announced today. The three separate, but related, indictments were returned on May 8, 2019 and unsealed this week.

"This is one of the largest cocaine distribution rings in western Pennsylvania," said U.S. Attorney Brady. "Together with our state and local law enforcement partners, we conducted an extensive investigation of this multi-state drug distribution network. My office will continue the fight to dismantle drug trafficking organizations and hold those who pollute our communities with drugs accountable."

"This drug distribution organization threatened the safety of the people of western Pennsylvania and beyond by peddling illegal drugs in their communities," said Pennsylvania Attorney General Josh Shapiro. "I’m grateful for the strong collaboration between local, state, and federal law enforcement to break up this criminal network. We will continue working together to get these poisons off our streets and hold those who push them into our neighborhoods accountable."

"This was an investigation that started at the local level and we quickly realized we needed the help of the U.S. Attorney’s Office and the Drug Enforcement Administration," said Lawrence County District Attorney Joshua Lamancusa. "Through the cooperation of local, state and federal agencies, we were able to make a substantial impact on drug trafficking in Lawrence County."

According to U.S. Attorney Brady, the indictments follow an 18-month investigation of a multi-state drug distribution network led by Hector Forbes, in which cocaine was sold throughout the country, including in New Castle and Pittsburgh, Pennsylvania. The group used the mail to transport the cocaine and to send cash back to Hector Forbes and Marcia Cunningham.

An eight-count indictment returned on May 8, names:

• Timothy Bonner, 38, of Pittsburgh, Pennsylvania;

• Garfield Campbell, aka "Sean Grant," 44, of Pittsburgh, Pennsylvania;

• Garfield Campbell, Jr., aka "Theo Campbell," 22, of Pittsburgh, Pennsylvania;

• Marcia Cunningham, aka "Elaine Ambersley," "Marcia Headley," 51, of Plantation, Florida;

• Hector Forbes, aka "Michael Ambersley," "Troy Williams," "Desmond Roreric," "Hextor Obian," "Hector Obytan," "Haneen Arrie," "Warren Blake," "Sperm," "Henry," 45, of Pomona, California;

• Robert Forbes, aka "Daniel Kirkpatrick," "Joe," 44, of Pittsburgh, Pennsylvania; and

• Anthony Portis, Jr., 36, of Pittsburgh, Pennsylvania, as defendants.

Cunningham and Hector Forbes were arrested in Florida on May 10, 2019. The remaining defendants were arrested in Lawrence and Allegheny counties on Monday, May 13, 2019. Garfield Campbell and Garfield Campbell, Jr. are father and son. Hector Forbes and Robert Forbes are brothers.

According to Count 1 of the Indictment, from in and around April 2017, and continuing thereafter to in and around April 2019, Hector Forbes participated in a continuing criminal enterprise involved in cocaine trafficking. That statute is often referred to as the Drug Kingpin Statute, and calls for a mandatory minimum sentence of 20 years of incarceration upon conviction.

At Count 2, the Indictment charges all defendants with conspiring to distribute and possess with intent to distribute 5 kilograms or more of cocaine, a Schedule II controlled substance from in and April 2017, and continuing thereafter to in and around April 2019, in the Western District of Pennsylvania and elsewhere. That statute calls for a mandatory minimum sentence of 10 years of incarceration upon conviction.

Garfield Campbell is charged at Count 3 with attempting to possess with intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance, in and around June 2017. That statute calls for a mandatory minimum sentence of five years of incarceration upon conviction.

Timothy Bonner is charged at Counts 4 and 5 with possessing with intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance, and less than 50 kilograms of marijuana, a Schedule I controlled substance, on or about February 11, 2019.

Garfield Campbell, Marcia Cunningham, Hector Forbes and Robert Forbes are charged at Count 6 with conspiring to commit money laundering, from in and April 2017, and continuing thereafter to in and around April 2019; and at Count Seven with interstate travel in aid of racketeering.

Marcia Cunningham and Hector Forbes are charged at Count 8 with using false names and addresses to conduct an unlawful business by means of the postal service, from in and April 2017, and continuing thereafter to in and around April 2019.

The law provides for a maximum total sentence of life in prison for all of these defendants.

A second indictment, returned on May 8, and containing 24 counts, names:

• Fawn Cox, 40, of New Castle, Pennsylvania;

• Wesley Cox aka "Michael Deshawn Carter," 37, of New Castle, Pennsylvania;

• Michael Cox, 48, of 811 High Street, of New Castle, Pennsylvania;

• Ronny Daniels, Jr. aka "Moocher," 36, of New Castle, Pennsylvania;

• Sergio Murillo, 45, of Detroit, Michigan;

• Eva Scialabba, 32, of Beaver Falls, Pennsylvania;

• Dondi Searcy, Jr. aka "Little Dondi," 34, of New Castle, Pennsylvania;

• Quantel Searcy, 45, of New Castle, Pennsylvania; and

• Christopher Shaner, 24, of New Castle, Pennsylvania, as defendants.

All of the defendants  were arrested on Monday, May 13, 2019, except for Wesley Cox and Sergio Murillo who were already in custody.  Fawn, Wesley and Michael Cox are siblings. Dondi Searcy, Jr. and Quantel Searcy are cousins.

According to the Indictment, from in and around 2017, and continuing thereafter to in and around May 2019, in the Western District of Pennsylvania and elsewhere, defendants Fawn Cox, Wesley Cox, Ronny Daniels, Jr., Sergio Murillo, Eva Scialabba, Dondi Searcy, Jr., Quantel Searcy and Christopher Shaner conspired with each other and others to distribute and possess with intent to distribute five kilograms or more of cocaine and 280 grams or more of cocaine base, in the form commonly known as crack, each a Schedule II controlled substance. That statute carries with it a mandatory minimum sentence of 10 years of incarceration.

Counts 2, 4, 5, 6, 7, 8, 10, 11, 12, 17, 18, 19, 20, 22, 23 and 24 of the Indictment charge Fawn Cox, Wesley Cox, Ronny Daniels, Jr., Dondi Searcy, Jr. and Quantel Searcy with distributing and possessing with the intent to distribute a quantity of cocaine, a Schedule II controlled substance, on various dates from February 2017 to April 2019.

Wesley Cox is further charged at Counts 3 and 9 with distributing and possession with intent to distribute crack cocaine and fentanyl, each a Schedule II controlled substance, on or about December 8, 2017 and February 28, 2018, respectively.

Count 13 charges Wesley Cox and Michael Cox with conspiring to commit money laundering from in and around 2017, and continuing thereafter to in and around May 2019.

Counts 14, 15 and 16 charge Ronny Daniels, Jr. with distributing and possessing with intent to distribute crack cocaine, on or about January 10, 2018, January 31, 2018, May 1, 2018, respectively.

Count 21 charges Sergio Murillo and Dondi Searcy, Jr. with attempting to distribute and possess with intent to distribute crack cocaine, on or about September 18, 2018.

The law provides for a maximum total sentence of life in prison for all of the defendants except for Michael Cox, who faces a maximum total sentence of twenty years of incarceration.

Finally, a third indictment returned on May 8, and containing two counts names:

• Rondell Palmer, 47, of Pontiac, Michigan, as the sole defendant.  Palmer was already in custody.

According to the Indictment, from in and around August 2018, and continuing thereafter to in and around September 2018, Palmer conspired with others to distribute and possess with intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance. Additionally, on or about September 17, 2018, Palmer attempted to distribute and possess with intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance.

The law provides for a maximum total sentence of not less than five years to a maximum of 40 years in prison, a fine not to exceed $5,000,000 or both.

Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant(s).

Assistant United States Attorneys Brendan T. Conway and Marnie Sheehan-Balchon are prosecuting this case on behalf of the government.

A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the Indictment in this case. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lawrence County Drug Task Force, Pennsylvania Office of Attorney General, Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police.

In this case, the Lawrence County Drug Task Force, the Lawrence County District Attorney’s Special Investigations Unit, the New Castle Police Department and the Union Township Police Department provided significant assistance in the investigation.

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.

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

 

A complex transnational organized cybercrime network that used GozNym malware in an attempt to steal an estimated $100 million from unsuspecting victims in the United States and around the world has been dismantled as part of an international law enforcement operation.  GozNym infected tens of thousands of victim computers worldwide, primarily in the United States and Europe.  The operation was highlighted by the unprecedented initiation of criminal prosecutions against members of the network in four different countries as a result of cooperation between the United States, Georgia, Ukraine, Moldova, Germany, Bulgaria, Europol and Eurojust. 

United States Attorney Scott W. Brady of the Western District of Pennsylvania made the announcement at Europol, located in The Hague, Netherlands, along with his international partners. 

The operation was conducted by the United States Attorney’s Office for the Western District of Pennsylvania and the FBI’s Pittsburgh Field Office, along with the Office of the Prosecutor General of Georgia, Prosecutor General’s Office of Ukraine, Office of the Prosecutor General of the Republic of Moldova, Public Prosecutor’s Office Verden (Germany), the Supreme Prosecutor’s Office of Cassation of the Republic of Bulgaria, Ministry of Internal Affairs of Georgia, National Police of Ukraine, General Police Inspectorate of the Republic of Moldova, the Luneburg Police of Germany and the Republic of Bulgaria’s General Directorate for Combatting Organized Crime with the significant assistance of Europol and Eurojust.

“International law enforcement has recognized that the only way to truly disrupt and defeat transnational, anonymized networks is to do so in partnership,” said U.S. Attorney Brady.  “The collaborative and simultaneous prosecution of the members of the GozNym criminal conspiracy in four countries represents a paradigm shift in how we investigate and prosecute cybercrime.  Cybercrime victimizes people all over the world.  This prosecution represents an international cooperative effort to bring cybercriminals to justice.”  

Earlier today, the U.S. Attorney’s Office for the Western District of Pennsylvania unsealed an Indictment returned by a federal grand jury in Pittsburgh charging 10 members of the GozNym criminal network with conspiracy to commit computer fraud, conspiracy to commit wire fraud and bank fraud, and conspiracy to commit money laundering.  An eleventh member of the conspiracy was previously charged in a related Indictment.  The victims of these crimes were primarily U.S. businesses and their financial institutions, including a number of victims located in the Western District of Pennsylvania. 

“This takedown highlights the importance of collaborating with our international law enforcement partners against this evolution of organized cybercrime,” said FBI Pittsburgh Special Agent in Charge Robert Jones.  “Successful investigation and prosecution is only possible by sharing intelligence, credit and responsibility.  Our adversaries know that we are weakest along the seams and this case is a fantastic example of what we can accomplish collectively."

According to the Indictment, the defendants conspired to:

• infect victims’ computers with GozNym malware designed to capture victims’ online banking login credentials;
• use the captured login credentials to fraudulently gain unauthorized access to victims’ online bank accounts; and,
• steal money from victims’ bank accounts and launder those funds using U.S. and foreign beneficiary bank accounts controlled by the defendants.    

The defendants reside in Russia, Georgia, Ukraine, Moldova and Bulgaria.  The operation was an unprecedented international effort to share evidence and initiate criminal prosecutions against members of the same criminal network in multiple countries.    

At the request of the United States, Krasimir Nikolov, aka “pablopicasso,” “salvadordali,” and “karlo,” of Varna, Bulgaria, was searched and arrested by Bulgarian authorities and extradited to the United States in December 2016 to face prosecution in the Western District of Pennsylvania.  Nikolov’s primary role in the conspiracy was that of a “casher” or “account takeover specialist” who used victims’ stolen online banking credentials captured by GozNym malware to access victims’ online bank accounts and attempt to steal victims’ money through electronic funds transfers into bank accounts controlled by fellow conspirators.  Nikolov is named as a GozNym conspirator in the newly unsealed indictment, although he is charged in a related Indictment filed in the Western District of Pennsylvania.  Nikolov entered a guilty plea in federal court in Pittsburgh on charges relating to his participation in the GozNym conspiracy on April 10, 2019.  He is scheduled to be sentenced on Aug. 30, 2019. 

Five of the named defendants reside in Russia and remain fugitives from justice.  However, to overcome the inability to extradite the remaining defendants to the United States for prosecution, an unprecedented effort was undertaken to share evidence and build prosecutions against defendants in the remaining countries where they reside, including Georgia, Ukraine and Moldova.  The prosecutions are based on shared evidence acquired through coordinated searches for evidence in Georgia, Ukraine, Moldova and Bulgaria, as well as from evidence shared by the United States and Germany from their respective investigations.   

The GozNym network exemplified the concept of “cybercrime as a service.”  According to the Indictment, the defendants advertised their specialized technical skills and services on underground, Russian-language, online criminal forums.  The GozNym network was formed when these individuals were recruited from the online forums and came together to use their specialized technical skills and services in furtherance of the conspiracy.

According to the Indictment, Alexander Konovolov, aka “NoNe,” and “none_1,” age 35, of Tbilisi, Georgia, was the primary organizer and leader of the GozNym network who controlled more than 41,000 victim computers infected with GozNym malware.  Konovolov assembled the team of cybercriminals charged in the Indictment, in part by recruiting them through the underground online criminal forums.  Marat Kazandjian, aka “phant0m,” age 31, of Kazakhstan and Tbilisi, Georgia, was allegedly Konovolov’s primary assistant and technical administrator.  Konovolov and Kazandjian are being prosecuted in Georgia for their respective roles in the GozNym criminal network. 

Gennady Kapkanov, aka “Hennadiy Kapkanov,” “flux,” “ffhost,” “firestarter,” and “User 41,” age 36, of Poltava, Ukraine, was an administrator of a bulletproof hosting service known by law enforcement and computer security researchers as the “Avalanche” network.  This network provided services to more than 200 cybercriminals, including Konovolov and Kazandjian, and it hosted more than 20 different malware campaigns, including GozNym.  Kapkanov’s apartment in Poltava, Ukraine was searched in November 2016 during a German-led operation to dismantle the network’s servers and other infrastructure.  Kapkanov was arrested for shooting an assault rifle through the door of his apartment at Ukrainian law enforcement officers conducting the search.  Through the coordinated efforts being announced today, Kapkanov is now facing prosecution in Ukraine for his role in providing bulletproof hosting services to the GozNym criminal network.

Alexander Van Hoof, aka “al666,” age 45, of Nikolaev, Ukraine, was a “cash-out” or “drop master” who provided fellow members of the conspiracy with access to bank accounts he controlled that were designated to receive stolen funds from GozNym victims’ online bank accounts.              

Eduard Malanici, aka “JekaProf,” and “procryptgroup, age 32, of Balti, Moldova, provided crypting services to cybercriminals.  Malanici crypted GozNym malware in furtherance of the conspiracy to enable the malware to avoid detection by anti-virus tools and protective software on victims’ computers.  Malanici, along with two associates, is being prosecuted in Moldova.

Victims of the GozNym malware attacks include:

• An asphalt and paving business located in New Castle, Pennsylvania;
• A law firm located in Washington, DC;
• A church located in Southlake, Texas;
• An association dedicated to providing recreation programs and other services to persons with disabilities located in Downers Grove, Illinois;
• A distributor of neurosurgical and medical equipment headquartered in Freiburg, Germany, with a U.S. subsidiary in Cape Coral, Florida;
• A furniture business located in Chula Vista, California;
• A provider of electrical safety devices located in Cumberland, Rhode Island;
• A contracting business located in Warren, Michigan;
• A casino located in Gulfport, Mississippi;
• A stud farm located in Midway, Kentucky; and
• A law office located in Wellesley, Massachusetts;

Five Russian nationals charged in the Indictment who remain fugitives from justice include:

Vladimir Gorin, aka “Voland,”  “mrv,” and “riddler,” of Orenburg, Russia.  Gorin was a malware developer who oversaw the creation, development, management, and leasing of GozNym malware, including to Alexander Konovolov. 

Konstantin Volchkov, aka “elvi,” age 28, of Moscow, Russia, provided spamming services to cybercriminals.  Volchkov conducted spamming operations of GozNym malware on behalf of the conspiracy.  The spamming operations involved the mass distribution of GozNym malware through “phishing” emails.  The phishing emails were designed to appear legitimate to entice the victim recipients into opening the emails and clicking on a malicious link or attachment, which facilitated the downloading of GozNym onto the victims’ computers. 

Ruslan Katirkin, aka “stratos,” and “xen,” age 31, of Kazan, Russia, resided in Khmelnytskyi, Ukraine, during the time frame of the charged conspiracy.  Katirkin, like Krasimir Nikolov, was a “casher” or “account takeover specialist” who used victims’ stolen online banking credentials captured by GozNym malware to access victims’ online bank accounts and attempt to steal victims’ money through electronic funds transfers into bank accounts controlled by fellow conspirators. 

Viktor Vladimirovich Eremenko, aka “nfcorpi,” age 30, of Stavropol, Russia, and Farkhad Rauf Ogly Manokhin, aka “frusa,” of Volgograd, Russia, were “cash-outs” or “drop masters” on behalf of the GozNym criminal network.  Like Alexander Van Hoof, Eremenko and Manokhin provided fellow members of the conspiracy with access to bank accounts they controlled that were designated to receive stolen funds from GozNym victims’ online bank accounts.  Manokhin was arrested at the request of the United States while visiting Sri Lanka in February 2017.  Following his arrest, Manokhin was released on bail but was required to remain in Sri Lanka pending the outcome of his extradition proceedings to the United States.  In December 2017, Manokhin unlawfully absconded from Sri Lanka and successfully fled back to Russia prior to the conclusion of the extradition proceedings.     

Other agencies and organizations partnering in this effort include the United States Secret Service, the National Cyber-Forensics and Training Alliance (NCFTA) in Pittsburgh and the Shadowserver Foundation.  The Justice Department’s Office of International Affairs provided significant assistance throughout the investigation and spearheaded the efforts to enable the United States to request searches, arrests, and extraditions in the foreign countries as well as the sharing of evidence with those countries through Mutual Legal Assistance Treaty requests.  

The case is being prosecuted by Assistant U.S. Attorney Charles A. “Tod” Eberle, Chief of National Security and Cybercrime for the Western District of Pennsylvania.   

PITTSBURGH – A complex transnational organized cybercrime network that used GozNym malware in an attempt to steal an estimated $100 million from unsuspecting victims in the United States and around the world has been dismantled as part of an international law enforcement operation.  GozNym infected tens of thousands of victim computers worldwide, primarily in the United States and Europe.  The operation was highlighted by the unprecedented initiation of criminal prosecutions against members of the network in four different countries as a result of cooperation between the United States, Georgia, Ukraine, Moldova, Germany, Bulgaria, Europol and Eurojust. 

United States Attorney Scott W. Brady of the Western District of Pennsylvania made the announcement at Europol, located in The Hague, Netherlands, along with his international partners. 

The operation was conducted by the United States Attorney’s Office for the Western District of Pennsylvania and the FBI’s Pittsburgh Field Office, along with the Office of the Prosecutor General of Georgia, Prosecutor General’s Office of Ukraine, Office of the Prosecutor General of the Republic of Moldova, Public Prosecutor’s Office Verden (Germany), the Supreme Prosecutor’s Office of Cassation of the Republic of Bulgaria, Ministry of Internal Affairs of Georgia, National Police of Ukraine, General Police Inspectorate of the Republic of Moldova, the Luneburg Police of Germany and the Republic of Bulgaria’s General Directorate for Combatting Organized Crime with the significant assistance of Europol and Eurojust.

“International law enforcement has recognized that the only way to truly disrupt and defeat transnational, anonymized networks is to do so in partnership,” said U.S. Attorney Brady.  “The collaborative and simultaneous prosecution of the members of the GozNym criminal conspiracy in four countries represents a paradigm shift in how we investigate and prosecute cybercrime.  Cybercrime victimizes people all over the world.  This prosecution represents an international cooperative effort to bring cybercriminals to justice.”  

Earlier today, the U.S. Attorney’s Office for the Western District of Pennsylvania unsealed an Indictment returned by a federal grand jury in Pittsburgh charging 10 members of the GozNym criminal network with conspiracy to commit computer fraud, conspiracy to commit wire fraud and bank fraud, and conspiracy to commit money laundering.  An eleventh member of the conspiracy was previously charged in a related Indictment.  The victims of these crimes were primarily U.S. businesses and their financial institutions, including a number of victims located in the Western District of Pennsylvania. 

"This takedown highlights the importance of collaborating with our international law enforcement partners against this evolution of organized cybercrime," said FBI Pittsburgh Special Agent in Charge Robert Jones.  "Successful investigation and prosecution is only possible by sharing intelligence, credit and responsibility.  Our adversaries know that we are weakest aloing the seams and this case is a fantastic example of what we can accomplish collectively."

According to the Indictment, the defendants conspired to:

• infect victims’ computers with GozNym malware designed to capture victims’ online banking login credentials;
• use the captured login credentials to fraudulently gain unauthorized access to victims’ online bank accounts; and,
• steal money from victims’ bank accounts and launder those funds using U.S. and foreign beneficiary bank accounts controlled by the defendants.    

The defendants reside in Russia, Georgia, Ukraine, Moldova and Bulgaria.  The operation was an unprecedented international effort to share evidence and initiate criminal prosecutions against members of the same criminal network in multiple countries.    

At the request of the United States, Krasimir Nikolov, aka “pablopicasso,” “salvadordali,” and “karlo,” of Varna, Bulgaria, was searched and arrested by Bulgarian authorities and extradited to the United States in December 2016 to face prosecution in the Western District of Pennsylvania.  Nikolov’s primary role in the conspiracy was that of a “casher” or “account takeover specialist” who used victims’ stolen online banking credentials captured by GozNym malware to access victims’ online bank accounts and attempt to steal victims’ money through electronic funds transfers into bank accounts controlled by fellow conspirators.  Nikolov is named as a GozNym conspirator in the newly unsealed indictment, although he is charged in a related Indictment filed in the Western District of Pennsylvania.  Nikolov entered a guilty plea in federal court in Pittsburgh on charges relating to his participation in the GozNym conspiracy on April 10, 2019.  He is scheduled to be sentenced on Aug. 30, 2019. 

Five of the named defendants reside in Russia and remain fugitives from justice.  However, to overcome the inability to extradite the remaining defendants to the United States for prosecution, an unprecedented effort was undertaken to share evidence and build prosecutions against defendants in the remaining countries where they reside, including Georgia, Ukraine and Moldova.  The prosecutions are based on shared evidence acquired through coordinated searches for evidence in Georgia, Ukraine, Moldova and Bulgaria, as well as from evidence shared by the United States and Germany from their respective investigations.   

The GozNym network exemplified the concept of “cybercrime as a service.”  According to the Indictment, the defendants advertised their specialized technical skills and services on underground, Russian-language, online criminal forums.  The GozNym network was formed when these individuals were recruited from the online forums and came together to use their specialized technical skills and services in furtherance of the conspiracy.

According to the Indictment, Alexander Konovolov, aka “NoNe,” and “none_1,” age 35, of Tbilisi, Georgia, was the primary organizer and leader of the GozNym network who controlled more than 41,000 victim computers infected with GozNym malware.  Konovolov assembled the team of cybercriminals charged in the Indictment, in part by recruiting them through the underground online criminal forums.  Marat Kazandjian, aka “phant0m,” age 31, of Kazakhstan and Tbilisi, Georgia, was allegedly Konovolov’s primary assistant and technical administrator.  Konovolov and Kazandjian are being prosecuted in Georgia for their respective roles in the GozNym criminal network. 

Gennady Kapkanov, aka “Hennadiy Kapkanov,” “flux,” “ffhost,” “firestarter,” and “User 41,” age 36, of Poltava, Ukraine, was an administrator of a bulletproof hosting service known by law enforcement and computer security researchers as the “Avalanche” network.  This network provided services to more than 200 cybercriminals, including Konovolov and Kazandjian, and it hosted more than 20 different malware campaigns, including GozNym.  Kapkanov’s apartment in Poltava, Ukraine was searched in November 2016 during a German-led operation to dismantle the network’s servers and other infrastructure.  Kapkanov was arrested for shooting an assault rifle through the door of his apartment at Ukrainian law enforcement officers conducting the search.  Through the coordinated efforts being announced today, Kapkanov is now facing prosecution in Ukraine for his role in providing bulletproof hosting services to the GozNym criminal network.

Alexander Van Hoof, aka “al666,” age 45, of Nikolaev, Ukraine, was a “cash-out” or “drop master” who provided fellow members of the conspiracy with access to bank accounts he controlled that were designated to receive stolen funds from GozNym victims’ online bank accounts.              

Eduard Malanici, aka “JekaProf,” and “procryptgroup, age 32, of Balti, Moldova, provided crypting services to cybercriminals.  Malanici crypted GozNym malware in furtherance of the conspiracy to enable the malware to avoid detection by anti-virus tools and protective software on victims’ computers.  Malanici, along with two associates, is being prosecuted in Moldova.

Victims of the GozNym malware attacks include:

• An asphalt and paving business located in New Castle, Pennsylvania;
• A law firm located in Washington, DC;
• A church located in Southlake, Texas;
• An association dedicated to providing recreation programs and other services to persons with disabilities located in Downers Grove, Illinois;
• A distributor of neurosurgical and medical equipment headquartered in Freiburg, Germany, with a U.S. subsidiary in Cape Coral, Florida;
• A furniture business located in Chula Vista, California;
• A provider of electrical safety devices located in Cumberland, Rhode Island;
• A contracting business located in Warren, Michigan;
• A casino located in Gulfport, Mississippi;
• A stud farm located in Midway, Kentucky; and
• A law office located in Wellesley, Massachusetts;

Five Russian nationals charged in the Indictment who remain fugitives from justice include:

Vladimir Gorin, aka “Voland,”  “mrv,” and “riddler,” of Orenburg, Russia.  Gorin was a malware developer who oversaw the creation, development, management, and leasing of GozNym malware, including to Alexander Konovolov. 

Konstantin Volchkov, aka “elvi,” age 28, of Moscow, Russia, provided spamming services to cybercriminals.  Volchkov conducted spamming operations of GozNym malware on behalf of the conspiracy.  The spamming operations involved the mass distribution of GozNym malware through “phishing” emails.  The phishing emails were designed to appear legitimate to entice the victim recipients into opening the emails and clicking on a malicious link or attachment, which facilitated the downloading of GozNym onto the victims’ computers. 

Ruslan Katirkin, aka “stratos,” and “xen,” age 31, of Kazan, Russia, resided in Khmelnytskyi, Ukraine, during the time frame of the charged conspiracy.  Katirkin, like Krasimir Nikolov, was a “casher” or “account takeover specialist” who used victims’ stolen online banking credentials captured by GozNym malware to access victims’ online bank accounts and attempt to steal victims’ money through electronic funds transfers into bank accounts controlled by fellow conspirators. 

Viktor Vladimirovich Eremenko, aka “nfcorpi,” age 30, of Stavropol, Russia, and Farkhad Rauf Ogly Manokhin, aka “frusa,” of Volgograd, Russia, were “cash-outs” or “drop masters” on behalf of the GozNym criminal network.  Like Alexander Van Hoof, Eremenko and Manokhin provided fellow members of the conspiracy with access to bank accounts they controlled that were designated to receive stolen funds from GozNym victims’ online bank accounts.  Manokhin was arrested at the request of the United States while visiting Sri Lanka in February 2017.  Following his arrest, Manokhin was released on bail but was required to remain in Sri Lanka pending the outcome of his extradition proceedings to the United States.  In December 2017, Manokhin unlawfully absconded from Sri Lanka and successfully fled back to Russia prior to the conclusion of the extradition proceedings.     

Other agencies and organizations partnering in this effort include the United States Secret Service, the National Cyber-Forensics and Training Alliance (NCFTA) in Pittsburgh and the Shadowserver Foundation.  The Justice Department’s Office of International Affairs provided significant assistance throughout the investigation and spearheaded the efforts to enable the United States to request searches, arrests, and extraditions in the foreign countries as well as the sharing of evidence with those countries through Mutual Legal Assistance Treaty requests.  

The case is being prosecuted by Assistant U.S. Attorney Charles A. “Tod” Eberle, Chief of National Security and Cybercrime for the Western District of Pennsylvania.   

PITTSBURGH, Pa. - A resident of Washington, PA, pleaded guilty in federal court to charges of aiding and abetting the unlawful distribution of controlled substances and health care fraud, United States Attorney Scott W. Brady announced today.

Jennifer Hess, 50, pleaded guilty to three counts before United States District Judge Arthur J. Schwab.

In connection with the guilty plea, the court was advised that Hess founded and owned Redirections Treatment Advocates LLC (RTA), an opioid treatment practice with offices in Washington and Bridgeville, PA and Morgantown, Weirton and Moundsville, WVA. Hess aided and abetted the illegal distribution of buprenorphine, also known as Subutex and Suboxone, by completing blank pre-signed prescriptions and/or forging doctors’ names on blank prescriptions. Hess also committed health care fraud for causing fraudulent claims to be submitted to Medicaid and Medicare for payments to cover the costs of the unlawfully prescribed buprenorphine.

Judge Schwab scheduled sentencing for October 30, 2019 at 10 a.m.. The law provides for a total sentence of 30 years in prison, a fine of $1,250,000, 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 Robert S. Cessar and Michael L. Ivory are prosecuting this case on behalf of the government.

The investigation leading to the filing of charges in these cases was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic. This unit has investigated and prosecuted more corrupt health care professionals than any other U.S. Attorney’s Office in the country.

The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.

PITTSBURGH, PA - A resident of Carnegie, Pennsylvania, has been sentenced in federal court to 18 months’ imprisonment and two years’ supervised release on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.

United States District Judge Arthur J. Schwab imposed the sentence on James Yeates, 53.

According to information presented to the court, from in and around January, 2016, and continuing thereafter to on or about November 30, 2017, Yeates conspired with others to distribute and possess with intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance. The Court was further advised that, on or about December 28, 2017, Yeates attempted to possess with intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance.

Assistant United States Attorneys Rebecca L. Silinski and Jeremy A. Moschetta prosecuted this case on behalf of the government.

A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation that led to the prosecution of James Yeates. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The Stowe Township Police Department also provided assistance in this investigation. 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.

JOHNSTOWN, Pa. – Two New Jersey residents were indicted by a federal grand jury in Johnstown on May 7, 2019, on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.

The three-count indictment named Jamel T. Brown, 37, and Beatrice Ortiz, 31, both of Camden, New Jersey.

According to the indictment presented to the court, on October 25, 2018, Brown and Ortiz distributed more than 28 grams of cocaine base, commonly known as "crack," and possessed with intent to distribute more than 50 grams of methamphetamine and a quantity of fentanyl.

The law provides for a maximum sentence of not less than five years and up to 40 years in prison and a fine of $5,000,000 or both for each Brown and Ortiz. 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 Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.

The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Brown and Ortiz.

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

PITTSBURGH, PA - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on a charge of Attempt to Possess with Intent to Distribute 40 Grams or More of a Mixture and Substance Containing a Detectable Amount of Fentanyl, United States Attorney Scott W. Brady announced today.

The one-count Indictment named Thomas E. Washington, Jr., age 56, of Turtle Creek, PA, as the sole defendant.

According to the Indictment, on or about December 18, 2017, Washington attempted to possess with intent to distribute and distribute 40 grams or more of fentanyl.

The law provides for a minimum total sentence of five years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Yvonne M. Saadi is prosecuting this case on behalf of the government.

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.

PITTSBURGH, Pa – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.

The one-count Indictment named Jamar Perminter, age 19, as the sole defendant.

According to the Indictment, on or about May 10, 2019, Perminter possessed with intent to distribute 28 grams or more of cocaine base and a quantity of heroin.

The law provides for a maximum sentence of not less than five years and up to 40 years in prison and a fine not to exceed $5,000,000. 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 Brian M. Czarnecki is prosecuting this case on behalf of the government.

The Pittsburgh Bureau of Police and the Drug Enforcement Administration 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 - A resident of North Carolina pleaded guilty in federal court to a charge of conspiracy to distribute a quantity of cocaine, United States Attorney Scott W. Brady announced today.

Joelle Hollis, 31, formerly of Pittsburgh, PA, pleaded guilty to one count before Senior United States District Judge Arthur J. Schwab.

In connection with the guilty plea, the court was advised that in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the Greenway Boy Killas (GBK) street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Joelle Hollis conspired with others to distribute cocaine. Hollis’s involvement in the conspiracy included sharing, with members of the conspiracy, sensitive law enforcement information which Hollis obtained from her friend, Erica Romanowski, who by virtue of her employment with the Allegheny County Sheriff’s Office, had access to such information, including information related to ongoing federal investigations.

Judge Schwab scheduled sentencing for October 29, 2019 at 9:00 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Pending sentencing, the court continued the defendant’s bond.

Assistant United States Attorneys Tonya Sulia Goodman and Yvonne Saadi are prosecuting this case on behalf of the government.

The Federal Bureau of Investigation and the Drug Enforcement Administration jointly led the multi-agency investigation, which also included the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, that led to the prosecution of Joelle Hollis.

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.

 

ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 2 years probation and ordered to pay a $1,000 fine on his conviction of visa fraud and false statements, United States Attorney Scott W. Brady announced today.

United States District Judge David S. Cercone imposed the sentence on Daniel Cabanillas, 49.

According to information presented to the court, Cabanillas was the Designated School Official (DSO) for the Student Exchange Visitor Program at Mercyhurst University until he was terminated on February 19, 2015. According to information provided to the court, while Cabanillas was employed as the DSO, he knowingly made materially false statements on various Form I-20, Certificates of Eligibility for Nonimmigrant (F-1) Student Status, subscribing to as true, the false certification of a person’s acceptance status at the university. A false Form I-20 was then used by an individual to obtain a student visa, which allowed entry into the United States. The court was advised that Cabinallas falsified acceptance documents for dozens of other students in connection with his work as the DSO.

U.S. Attorney Scott Brady stated, "The Student Exchange and Visitor Program relies on the honesty and integrity of Designated School Officials to truthfully certify to the information contained in Visa application documents, and when DSO’s provide or certify false information, our system of lawful immigration into the United States for educational purposes is frustrated."

"This investigation is an example of how those that abuse the immigration process will be held accountable to the fullest extent of the law. Mr. Cabanillas, while serving in his capacity as a designated school official at Mercyhurst University, abused his authority and undermined the integrity of the international student visa process." said Marlon V. Miller, special agent in charge of HSI Philadelphia. "I would like to thank U.S. Attorney Scott Brady for his collaboration in the investigation and prosecution of Mr. Cabanillas and for his ongoing commitment to aggressively pursue those individuals that exploit the immigration process."

Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.

United States Attorney Brady commended the Department of Homeland Security, Homeland Security Investigations and U.S. Border Patrol for the investigation leading to the successful prosecution of Cabanillas.

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.

Mark Joseph Bretz, 28, pleaded guilty to three counts before United States District Judge David S. Cercone.

In connection with the guilty plea, the court was advised that Bretz received computer images depicting minors engaging in sexually explicit conduct and used interstate communications to extort several victims into providing Bretz sexually explicit or suggestive material.

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.

Judge Cercone scheduled sentencing for October 7, 2019 at 3:00 p.m. The law provides for a total sentence of 24 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 Christian A. Trabold is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation, the Erie County Detectives Bureau and the Aurora, Colorado Police Department conducted the investigation that led to the prosecution of Bretz.

PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.

Tory Bryant, 32, pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.

In connection with the guilty plea, the court was advised that on March 13, 2018, Bryant possessed with the intent to distribute a quantity of heroin, a Schedule I controlled substance, a quantity of fentanyl, a Schedule II controlled substance, and a quantity of crack cocaine, a Schedule II controlled substance. An undercover officer arranged to make a purchase of narcotics from Bryant, and when the officers attempted to arrest Bryant at the scene of the arranged transaction, Bryant fled. The officers recovered the narcotics that Bryant intended to sell to the undercover officers on the path of Bryant’s flight.

Judge Ambrose scheduled sentencing for September 19, 2019 at 10 a.m. The law provides for a maximum sentence of not more than 20 years in prison, a fine of up to $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Also on that date, Judge Ambrose will sentence the defendant for violating the conditions of his supervised release by, among other ways, selling illegal narcotics. Bryant was on supervised release as a result of a previous federal conviction for heroin trafficking.

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

The Federal Bureau of Investigations and Wilkinsburg Police Department conducted the investigation that led to the prosecution of Bryant.

PITTSBURGH, PA - A resident of Sewickley, PA, has entered a plea of guilty to charges of tax evasion in Federal Court in Pittsburgh, Pennsylvania, United States Attorney Scott W. Brady announced today.

According to the information presented to the court, Mark Stanford, the owner of Y Clean in Wexford, PA, evaded payment of both his personal income taxes and the employer and employee portions of Social Security and Medicare taxes for employees that he should have paid by virtue of owning and operating his cleaning business during the period 2009 through 2013 (for the tax years 2008 through 2012). According to the information upon which Mr. Stanford’s plea was offered, he made large personal expenditures (such as two Bentley automobiles) rather than pay the taxes he knew were due and owing both for himself and for his employees. He also was shown to have filed a false document with the IRS regarding his personal and business financial situation. The document was false in that it failed to identify, among other things, the two Bentley automobiles on his list of assets and it failed to identify a bank account that he caused to be opened, which identified his son as the principal account holder, which he used to move money through that he took from his business and paid to himself in cash.

U.S. District Judge Cathy Bissoon set sentencing for September 4th, 2019, at 2:15 pm. The law provides for a maximum total sentence of up to five years in prison and a fine of up to $250,000 (or both) for each tax evasion count. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

The Internal Revenue Service, Criminal Investigations conducted the investigation leading to the indictment in this case.

PITTSBURGH, PA - A resident of Allegheny County, Pennsylvania, has pleaded guilty in federal court on a charge of Possession of a Firearm by a Convicted Felon, United States Attorney Scott W. Brady announced today.

Darby Donta Tigney, 24, of Pittsburgh, pleaded guilty to one count before United States District Judge Arthur J. Schwab.

In connection with the guilty plea, on October 14, 2018, Tigney illegally possessed a 9mm Smith and Wesson handgun. Tigney had been convicted of the felony offense of Possession of a Firearm with an Altered Serial Number in the Court of Common Pleas of Allegheny County just three months earlier on July 30, 2018. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.

The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

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

The Pittsburgh Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Darby Donta Tigney.

The 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.

PITTSBURGH, PA - A Beaver County resident has been sentenced in federal court to 8 years (96 months) in prison and five years supervised release on his conviction of violations of the federal narcotics laws, United States Attorney Scott W. Brady announced today.

Chief United States District Judge Mark R. Hornak imposed the sentence on Che Turner, age 39, of Aliquippa, PA.

According to information presented to the court, Smith conspired with others to distribute and possess with intent to distribute a quantity of a mixture and substance containing a detectable amount of cocaine totaling between 200 and 300 grams.

Assistant United States Attorney Robert C. Schupansky prosecuted this case on behalf of the government.

This prosecution was part of a long-term investigation by the FBI Greater Pittsburgh Safe Streets Task Force (GPSSTF), which targeted a large scale Drug Trafficking Organization operating in Butler, Beaver and Allegheny Counties. The GPSSTF is comprised of dedicated law enforcement professionals from the Wilkinsburg Police Department, Pennsylvania Attorney General’s Bureau of Narcotics Investigations, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pittsburgh Bureau of Police and the FBI.

This 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.

United States Attorney Brady commended the Federal Bureau of Investigation, along with the other federal, state and local agencies involved, for the investigation leading to the successful prosecution of Turner.

 

ERIE, Pa. - A resident of Allegany, New York, pleaded guilty in federal court to a charge of theft of mail by postal employee, United States Attorney Scott W. Brady announced today.

Bryant Richard, 30, pleaded guilty to one count before United States District Judge David S. Cercone.

In connection with the guilty plea, the court was advised that from in and around October 2018, to in and around November 2018, Richard, who was a postal employee, stole 18 items of mail which had been submitted to the Postal Service for delivery.

Judge Cercone scheduled sentencing for October 7, 2019 at 12:45 p.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Pending sentencing, the court continued Richard on bond.

Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.

The United States Postal Service, Office of Inspector General conducted the investigation that led to the prosecution of Richard.

 

ERIE, Pa. - A former resident of Hallandale Beach, Florida, has been sentenced in federal court to 3 years and 2 months (38 months) in prison on his conviction of violating federal drugs laws, United States Attorney Scott W. Brady announced today.

United States District Judge David S. Cercone imposed the sentence on Julio Forai Peguero Forne, 53.

According to information presented to the court, from in and around July 2014 to in and around January 2015, Forne conspired with two co-defendants to possess with intent to distribute and distribute cocaine, and transported approximately $150,000 in drug proceeds on behalf of the drug distribution organization.

Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.

United States Attorney Brady commended the U.S. Immigration and Customs Enforcement(ICE)/Homeland Security Investigations(HSI) and the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Forne.

PITTSBURGH, Pa. -A former resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of bank robbery, United States Attorney Scott W. Brady announced today.

Jonathan Owens-El, 56, formerly of Pittsburgh, PA, pleaded guilty on Wednesday to one count before Senior United States District Court Judge Joy Flowers Conti.

In connection with the guilty plea, the court was advised that, on March 19, 2018, Owens-El entered Key Bank, Downtown Pittsburgh, with a blue knit scarf around his face and wearing gloves. Owens-El passed the teller a note that said, "No Dye, No Alarm 50’s, 20’s, 10’s". The teller handed him $260 in U.S. Currency along with $40 wrapped around a GPS tracker. Owens-El fled and police used the GPS device to locate him on a Port Authority Transit bus.

After boarding the bus, the officer noticed the defendant seated in the back with a blue scarf tucked under his leg. When the officer asked Owens-El to stand up, the officer saw U.S. Currency protruding from his left front pants pocket.

Owens-El agreed to an interview and admitted that he handed the teller a note demanding money. He stated that once he received the cash, he placed the money into a bag then walked towards Smithfield Street and boarded a PAT bus. Owens said he picked Key Bank at random and decided to rob the bank to support his drug addiction.

Judge Conti scheduled sentencing for September 18, 2019. 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 is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Pending sentencing, the court ordered that Owens-El remain detained.

Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation and the Pittsburgh Bureau of Police Department conducted the investigation that led to the prosecution of Owens-El.

PITTSBURGH, PA – On May 8, 2019, two former residents of Philadelphia, Pennsylvania, were indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.

The three-count Indictment names Jermaine Kyle Clark, age 41, and Terry Suggs, Jr., age 34, as co-defendants. According to the Indictment, which was returned five days after a federal criminal complaint was filed, from February 24, 2019, to February 25, 2019, Clark and Suggs conspired to distribute and each possessed with intent to distribute 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine and 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine.

According to the Affidavit in Support of the Criminal Complaint, on February 25, 2019, investigators with the Allegheny County District Attorney Narcotics Enforcement Team (D.A.N.E.T), conducted a controlled purchase and delivery operation, relating to an ongoing investigation into drug-trafficking activity coming from Philadelphia, Pennsylvania, to Allegheny County. As a result of this investigation, law enforcement apprehended Clark and Suggs with approximately 23 separate, clear vacuum sealed packages, containing a white powdery substance, believed to be approximately 23 kilograms of cocaine, which were located within hidden compartments in the vehicles driven by the defendants. Additionally, in the vehicle operated by Suggs, investigators seized $8,060.00.

If convicted, the law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of up to $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.

The Allegheny County District Attorney Narcotics Enforcement Team made the initial arrest on February 25, 2019, relating to the charges set forth in the Indictment, and the Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.

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

PITTSBURGH, Pa. - A Jefferson County resident pleaded guilty in federal court on Tuesday to a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.

Brock Powell, 43, of Summerville, PA, pleaded guilty to one count of making false statements in relation to the acquisition of firearms, before Senior United States District Court Judge Joy Flowers Conti.

In connection with the guilty plea, the court was advised that, on January 14, 2017, Powell straw purchased three firearms from Grice Gun Shop in Clearfield, PA on behalf of Peter DiGiacomo, who then transferred them to a drug dealer in Niagara Falls, NY. The firearms included: a .40 caliber semiautomatic Walther pistol; a .40 caliber semiautomatic Taurus pistol; and a .40 caliber semiautomatic Smith & Wesson pistol. The defendant confessed to straw purchasing the firearms and admitted that he was a drug addict.

Judge Conti scheduled sentencing for Sept. 19, 2019. The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Pending sentencing, the court continued Powell’s bond.

Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation that led to the prosecution of Powell.

PITTSBURGH – A former resident of McKees Rocks, PA, was sentenced in federal court this week for violating federal narcotics laws, United States Attorney Scott W. Brady announced today.

United States District Judge David Stewart Cercone sentenced Jamar Everett, 37, to serve nine years (108 months) in prison following his guilty plea on December 19, 2018, to one count of conspiracy.

In connection with his guilty plea, Everett admitted that from in and around April 2016, and continuing thereafter to in and around October 2016, he conspired to distribute and possess with intent to distribute cocaine, a Schedule II controlled substance. At the time of his guilty plea, Everett admitted that he was responsible for between 500 grams and two kilograms of powder cocaine during the conspiracy.

Everett was charged as part of a nine-defendant indictment returned by a federal grand jury on August 1, 2017. To date, all defendants have pleaded guilty for their roles, and six have been sentenced.

Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government.

A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the Indictment in this case. The task force is headed by the Drug Enforcement Administration and comprises members drawn from the Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The Stowe Township Police Department also provided assistance in this investigation. 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.

PITTSBURGH, PA – A resident of Michigan has pleaded guilty in federal court on charges of Aiding or Assisting in the Preparation or Filing of False Federal Income Tax Returns, United States Attorney Scott W. Brady announced today.

Lakisha K. Pinkney, 42, of Eastpointe, MI pleaded guilty to one count before United States District Judge Nora Barry Fischer.

In connection with the guilty plea, Pinkney, a former tax preparer for now defunct "Cititax Refund" in Pittsburgh between 2010 and 2013 prepared federal income tax returns for other persons that included false Schedule C information, and which requested refunds for taxpayers totaling approximately $626,000.

Judge Fischer scheduled the sentencing for September 18, 2019 at 11 a.m. The law provides for a total sentence of 3 years imprisonment for each count, a fine of $100,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.

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

The Internal Revenue Service-Criminal Investigations conducted the investigation that lead to the prosecution of Lakisha K. Pinkney.

PITTSBURGH, Pa. - A former Pittsburgh radiologist has been sentenced in federal court to two years (24 months) in prison, three years’ supervised release, and order to pay a fine of $15,000 and restitution in the amount of $728 on his conviction of unlawfully distributing controlled substances and health care fraud, United States Attorney Scott W. Brady announced today.

United States District Judge Arthur J. Schwab imposed the sentence on Omar A. Almusa, 46, of Pittsburgh, PA.

According to information presented to the court, Almusa, while he was employed as a radiologist at the University of Pittsburgh Medical Center, conspired to create and submit unlawful prescriptions for Vicodin, and then unlawfully dispensed those controlled substances to other persons without a legitimate medical purpose. Almusa also committed health care fraud by submitting fraudulent claims to UPMC Health Plan for payments to cover the costs of the unlawfully prescribed Vicodin.

Prosecuting medical professionals who illegally prescribe powerful painkillers without a legitimate medical purpose is another front in our fight against the opioid epidemic," U.S. Attorney Brady said. "We will continue to investigate and prosecute these corrupt doctors."

Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.

The investigation leading to the filing of charges in these cases was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic. This unit has investigated and prosecuted more corrupt health care professionals than any other U.S. Attorney’s Office in the country.

The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.

PITTSBURGH - A Florida resident has been sentenced in federal court to two years and 10 months in prison and three years of supervised release on his conviction of conspiracy to commit mail fraud, wire fraud and bank fraud, United States Attorney Scott W. Brady announced today.

United States District Judge David Stewart Cercone imposed the sentence yesterday on Gennady Nudelman, 43, of Delray Beach, Florida.

According to information presented to the court, Nudelman participated in a sophisticated fraud scheme related to the fraudulent processing of credit card payments. The credit card companies will not allow their products and services to be used to pay for certain precluded activities, including the on-line sales of pharmaceutical drugs, including drugs that require prescriptions. The defendant participated in the conspiracy designed to conceal from the credit card companies the fact they used their products and services to pay for precluded activities and to subvert the internal controls the credit card companies had in place to detect and prevent this type of activity.

The fraud involved establishing shell corporations and web sites associated with the shell companies that falsely claimed that they sold products other than pharmaceutical drugs or products that violated trademark infringement laws. The conspirators then applied for merchant accounts from the credit card companies in the names of the shell corporations and the fake web sites. Once the merchant accounts were established, they were used to process payments for pharmaceutical drugs or products that violated trademark infringement laws. Additionally, the conspirators arranged for the credit card statements sent to the consumers to have the names of the shell corporations and telephone numbers. The conspirators set up a telephone bank to receive calls from customers questioning billings on their credit card statements, and the conspirators explained to the customers the true nature of the transactions in hopes of avoiding charge-backs that could cause the credit card companies to question the legitimacy of the transactions. Nudelman operated a business in Florida that specialized in using this complex fraud scheme to process payments primarily for pharmaceutical drugs that required prescriptions, but were sold to consumers in the United States through overseas websites without a prescription.

Assistant U.S. Attorney Brendan T. Conway prosecuted this case on behalf of the government.

U.S. Attorney Brady commended the Food and Drug Administration – Office of Criminal Investigations, Homeland Security Investigations, Pennsylvania State Police and United States Postal Inspection Service for the investigation leading to the successful prosecution of Nudelman.

PITTSBURGH – A Beaver County resident of New Brighton, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.

The one-count Indictment, returned yesterday, names Terrance Shelby, 34, of New Brighton as the defendant. According to the Indictment, on February 18, 2019, Shelby possessed with intent to distribute a quantity of heroin.

If convicted, the law provides for a maximum total sentence of not more than 20 years in prison, a fine of up to $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation and Center Township 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.

PITTSBURGH – Federal authorities will hold a news conference on May 8 at 2 p.m. ET in Pittsburgh to discuss a significant cybercrime enforcement action. This investigation was led by the United States Attorney’s Office in Western Pennsylvania and the Federal Bureau of Investigation – Pittsburgh Field Office, and also included the Criminal Division of the U.S. Department of Justice.

WHO:

U.S. Attorney Scott W. Brady, Western District of Pennsylvania

Deputy Assistant Attorney General Richard W. Downing, Justice Department’s Criminal Division

Special Agent in Charge Robert Allan Jones, FBI Pittsburgh Field Office

Eugenio Ricas, Brazilian Federal Police Attaché

Gabriel Bitton, Israel National Police Attaché for North America

WHEN:

WEDNESDAY, MAY 8, 2019

2 p.m. ET

WHERE:

U.S. Attorney’s Office

Joseph F. Weis Jr. United States Courthouse

700 Grant Street – Suite 4000

Pittsburgh, Pennsylvania 15219

LIVESTREAM ON:

KDKA.COM

The alleged owners and operators of a website known as DeepDotWeb (DDW) have been indicted by a federal grand jury sitting in Pittsburgh, Pennsylvania, for money laundering conspiracy, relating to millions of dollars in kickbacks they received for purchases of fentanyl, heroin, and other illegal contraband by individuals referred to Darknet marketplaces by DDW.  The website has now been seized by court order.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Scott W. Brady for the Western District of Pennsylvania, Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division and Special Agent in Charge Robert Allan Jones of the FBI’s Pittsburgh Field Office made the announcement.

In an indictment unsealed today, Tal Prihar, 37, an Israeli citizen residing in Brazil, and Michael Phan, 34, an Israeli citizen residing in Israel, were charged on April 24, 2019, in a one-count indictment by a federal grand jury in Pittsburgh.  Prihar was arrested on May 6, 2019 by French law enforcement authorities in Paris, pursuant to a provisional arrest request by the United States in connection with the indictment.  Phan was arrested in Israel on May 6 pursuant to charges in Israel.  Further, the FBI seized DDW, pursuant to a court order issued by the U.S. District Court for the Western District of Pennsylvania.

“According to the indictment unsealed today, these defendants allegedly made millions of dollars by providing a gateway to illegal Darknet marketplaces, allowing hundreds of thousands of users to buy fentanyl, hacking tools, stolen credit cards, and other contraband,” said Assistant Attorney General Benczkowski.  “The great work of our law enforcement partners and prosecutors allowed us to penetrate these supposedly anonymous online criminal networks, and those who used the networks to commit crimes will be held accountable regardless of where they live or how they attempt to hide their identities.”

“This is the single most significant law enforcement disruption of the Darknet to date,” said U.S. Attorney Scott W. Brady.  “While there have been successful prosecutions of various Darknet marketplaces, this prosecution is the first to attack the infrastructure supporting the Darknet itself.”

“For years, DeepDotWeb operated as a key gateway to the criminal underbelly of Darknet marketplaces, all while the website administrators profited from the Darknet economy,” said FBI Assistant Director Robert Johnson.  “Although they believed that they could hide in plain sight, this case demonstrates nothing could be further from the truth.  The FBI does not turn a blind eye to criminal activity happening on or off the Darknet. Rather, we have worked together with our partners, both at home and abroad, to investigate nefarious activity, shut down websites like DeepDotWeb that facilitate the introduction of opioids and other illicit contraband into the United States, and arrest the individuals profiting from these transactions. The indictment announced today represents a true international success and should serve as a message to others that the FBI will always pursue criminals victimizing Americans, no matter where they may try to hide.”

“Websites like DeepDotWeb pose global threats that require global partnerships,” said FBI Special Agent in Charge Jones.  “DDW acted as a gateway to the Darknet, allowing for the purchase and exchange of illicit drugs and other illegal items around the world, and the individuals charged today profited from those nefarious transactions.  The efforts of federal and international law enforcement should send the message that we are coming after the operators of these dangerous websites.”

Summary

According to the indictment, from in and around October 2013 and continuing through the date of the indictment, Tal Prihar and his co-conspirator Michael Phan allegedly owned and operated DDW, hosted at www.deepdotweb.com and also accessible on the Darknet at DeepDot35Wveyd5.onion.

DDW provided users with direct access to numerous online Darknet marketplaces, not accessible through traditional search engines,  at which vendors offered for sale illegal narcotics such as fentanyl, carfentanil, cocaine, heroin, and crystal methamphetamine, firearms, including assault rifles, malicious software and hacking tools; stolen financial information and payment cards and numbers; access device-making equipment and other illegal contraband. 

Prihar and Phan received kickback payments, representing commissions on the proceeds from each purchase of the illegal goods made by individuals referred to a Darknet marketplace from the DDW site.  These kickback payments were made in virtual currency, such as bitcoin, and paid into a DDW-controlled bitcoin “wallet.” To conceal and disguise the nature and source of the illegal proceeds, totaling over $15 million, Prihar and Phan transferred their illegal kickback payments from their DDW bitcoin wallet to other bitcoin accounts and to bank accounts they controlled in the names of shell companies.

The Money Laundering Kickback Scheme

According to the indictment, Darknet marketplaces operated on the “Tor” network, a computer network designed to facilitate anonymous communication over the Internet.  Because of Tor’s structure, a user who wanted to visit a particular Darknet marketplace needed to know the site’s exact .onion address. DDW simplified this process by including pages of hyperlinks to various Darknet marketplaces’ .onion addresses.

Further, the indictment alleges that users who visited DDW were able to click on the hyperlinks to navigate directly to the Darknet marketplaces.  Embedded in these links were unique account identifiers, which enabled the individual marketplaces to pay what they referred to as “Referral Bonuses,” to DDW.  Kickbacks in the form of referral bonuses, paid in virtual currency, were a percentage of the profits of all of the activities conducted on the marketplace by any user who made purchases on the marketplace by using DDW’s customized referral link.  Through the use of the referral links, DDW received kickbacks from Darknet marketplaces every time a purchaser used DDW to buy illegal narcotics or other illegal goods on the marketplace.

During the time period relevant to this Indictment, DDW’s referral links were widely used by users in the Western District of Pennsylvania and elsewhere to access and then create accounts on many Darknet marketplaces, including AlphaBay Market, Agora Market, Abraxas Market, Dream Market, Valhalla Market, Hansa Market, TradeRoute Market, Dr. D’s, Wall Street Market, and Tochka Market.  When AlphaBay was seized by law enforcement in 2017, it was one of the largest Darknet markets that offered illegal drugs, fraudulent identification materials, counterfeit goods, hacking tools, malware, firearms, and toxic chemicals.  Approximately 23.6 percent of all orders completed on AlphaBay were associated with an account created through a DDW referral link, meaning that DDW received a referral fee for 23.6 percent of all orders made on AlphaBay.

Over the course of the conspiracy, the defendants referred hundreds of thousands of users to Darknet marketplaces.  These users in turn completed hundreds of millions’ of dollars’ worth of transactions, including purchases of illegal narcotics such as fentanyl, carfentanil, cocaine, heroin, and crystal methamphetamine; firearms, including assault rifles; malicious software and hacking tools; stolen financial information and payment cards and numbers; access device-making equipment; and other illegal contraband.  Through the use of the referral links, the defendants received kickbacks worth millions of dollars, generated from the illicit sales conducted on Darknet marketplace accounts created through the site.

The defendants grew and promoted the DDW site, which functioned to drive further traffic to the DDW referral links, generating additional income for the defendants.  Prihar functioned as the administrator of DDW. He registered the domain, made infrastructure payments and maintained control over site content.  Phan was responsible for DDW’s technical operations, designing and maintaining the website’s day-to-day operation. Phan and Prihar communicated on a daily basis to facilitate their criminal enterprise.

From in or before November 2014 until the date of this indictment, the defendants controlled a bitcoin wallet that they used to receive the kickback payments for purchases completed on the various Darknet marketplaces.  Throughout the course of the conspiracy, DDW operated accounts on Darknet markets and communicated with the operators of various Darknet markets regarding kickback payments.

Between in and around November 2014 and April 10, 2019, DDW received approximately 8,155 bitcoin in kickback payments from Darknet marketplaces, worth approximately $8,414,173 when adjusted for the trading value of bitcoin at the time of each transaction.  The bitcoin was transferred to DDW’s bitcoin wallet, controlled by the defendants, in a series of more than 40,000 deposits and was subsequently withdrawn to various destinations both known and unknown to the grand jury through over 2,700 transactions.  Due to bitcoin’s fluctuating exchange rate, the value of the bitcoin at the time of the withdrawals from the DDW bitcoin wallet equated to approximately $15,489,415.  In seeking to conceal their illicit activities and protect their criminal enterprise and the illegal proceeds it generated, the defendants set up numerous shell companies around the world.  The defendants used these companies to move their ill-gotten gains and conduct other activity related to DDW.  These companies included WwwCom Ltd., M&T Marketing, Imtech, O.T.S.R. Biztech, and Tal Advanced Tech.

An indictment contains only allegations.  A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

This case was brought in conjunction with the Joint Criminal Opioid and Darknet Enforcement (J-CODE) Team.  Established within the FBI’s Hi-Tech Organized Crime Unit, J-CODE is a U.S. Government initiative announced in January 2018, aimed at targeting drug trafficking, especially fentanyl and other opioids, on the Darknet.  The J-CODE team brings together agents, analysts, and professional staff with expertise in drugs, gangs, health care fraud, and more.  J-CODE entities, including the FBI, U.S. Drug Enforcement Administration (DEA), U.S. Postal Inspection Service (USPIS), U.S. Customs and Border Protection (CBP), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Department of Defense (DOD), Financial Crimes Enforcement Network (FinCEN), and Department of Justice focus on disrupting the sale of drugs via the Darknet and dismantling criminal enterprises that facilitate this trafficking.   

Assistant U.S. Attorney Jessica Lieber Smolar of the U.S. Attorney’s Office for the Western District of Pennsylvania, Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, and Trial Attorneys Alexander Gottfried and Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.  The FBI’s Pittsburgh Field Office is investigating the case.  The Department thanks the French authorities, as well as its law enforcement colleagues at the U.S. Postal Inspection Service, National Cyber-Forensics and Training Alliance, IRS Criminal Investigation, Brazilian Federal Police Cyber Division, Israeli National Police, Dutch National Police, Europol Darkweb Team, German Federal Criminal Police (the Bundeskriminalamt), Polizeidirektion Zwickau and Saxon Police in Germany and law enforcement authorities in the United Kingdom.  Significant assistance was also provided by the U.S. Department of Justice’s Office of International Affairs. The prosecution and investigative team thanks the AlphaBay prosecution team and the Criminal Division’s Money Laundering and Asset Recovery Section for their assistance.

PITTSBURGH - United States Attorney Scott W. Brady announced today the alleged owners and operators of a website known as DeepDotWeb (DDW) have been arrested on charges of money laundering conspiracy relating to millions of dollars in kickbacks they received for purchases of fentanyl, heroin, and other illegal contraband by individuals referred to Darknet marketplaces by DDW. The website has now been seized by court order.

In an indictment unsealed today, Tal Prihar, 37, an Israeli citizen residing in Brazil, and Michael Phan, 34, an Israeli citizen residing in Israel, were charged on April 24, 2019, in a one-count indictment by a federal grand jury in Pittsburgh. Prihar was arrested on May 6, 2019 by French law enforcement authorities in Paris, pursuant to a provisional arrest request by the United States in connection with the indictment. Phan was arrested in Israel on May 6 pursuant to charges in Israel. Further, FBI Pittsburgh seized DDW, pursuant to a court order issued by the U.S. District Court for the Western District of Pennsylvania.

“This is the single most significant law enforcement disruption of the Darknet to date,” said U.S. Attorney Scott W. Brady. “With western Pennsylvania at the epicenter of the opioid crisis in America, the U.S attorney’s office has leveraged its significant cyber expertise in attacking the sale of fentanyl and opioids on the Darknet. This case signifies the first takedown of the very infrastructure that supports and promotes the illegal marketplaces where these deadly drugs are sold on the Darknet.”

According to the indictment, between October 2013 until the date of the indictment, Tal Prihar and his co-conspirator Michael Phan allegedly owned and operated DDW, hosted at www.deepdotweb.com.

DDW provided users with direct access to numerous online Darknet marketplaces, not accessible through traditional search engines, where vendors sold illegal narcotics such as fentanyl, carfentanil, cocaine, heroin, and crystal methamphetamine, firearms, including assault rifles, malicious software and hacking tools stolen financial information and payment cards and numbers access device-making equipment and other illegal contraband.

Prihar and Phan received kickback payments, representing commissions on the proceeds from each purchase of the illegal goods made by individuals referred to a Darknet marketplace from the DDW site. These kickback payments were made in virtual currency, such as bitcoin, and paid into a DDW-controlled bitcoin “wallet.” To conceal and disguise the nature and source of the illegal proceeds, totaling over $15 million, Prihar and Phan transferred their illegal kickback payments from their DDW bitcoin wallet to other bitcoin accounts and to bank accounts they controlled in the names of shell companies.

The Money Laundering Kickback Scheme

According to the indictment, Darknet marketplaces operated on the “Tor” network, a computer network designed to facilitate anonymous communication over the Internet. Because of Tor’s structure, a user who wanted to visit a particular Darknet marketplace needed to know the site’s exact .onion address. DDW simplified this process by including pages of hyperlinks to various Darknet marketplaces’ .onion addresses.

Users who visited DDW were able to click on the hyperlinks to navigate directly to the Darknet marketplaces. Embedded in these links were unique account identifiers, which enabled the individual marketplaces to pay what they referred to as “Referral Bonuses,” to DDW. These kickbacks, paid in virtual currency, were a percentage of the profits of all of the activities conducted on the marketplace by any user who made purchases on the marketplace by using DDW’s customized referral link. Through the use of the referral links, DDW received kickbacks from Darknet marketplaces every time a purchaser used DDW to buy illegal narcotics or other illegal goods on the marketplace.

During the time period relevant to this Indictment, DDW’s referral links were widely used by users in the Western District of Pennsylvania and elsewhere to access and then create accounts on many Darknet marketplaces, including AlphaBay Market, Agora Market, Abraxas Market, Dream Market, Valhalla Market, Hansa Market, TradeRoute Market, Dr. D’s, Wall Street Market, and Tochka Market. These Darknet markets offer illegal drugs, fraudulent identification materials, counterfeit goods, hacking tools, malware, firearms, and toxic chemicals. Two of the largest markets included AlphaBay and Hansa Market, which were both seized by law enforcement in 2017. Approximately 23 percent of all orders completed on AlphaBay and 47% of all orders completed on Hansa were associated with accounts created through DDW referral links, meaning that DDW received referral fees for 23%of all orders made on AlphaBay and 47% of all orders made on Hansa.

During the time period relevant to this Indictment, DDW’s referral links were widely used by users in the Western District of Pennsylvania and elsewhere to access and then create accounts on many Darknet marketplaces, including AlphaBay Market, Agora Market, Abraxas Market, Dream Market, Valhalla Market, Hansa Market, TradeRoute Market, Dr. D’s, Wall Street Market, and Tochka Market. When AlphaBay was seized by law enforcement in 2017, it was one of the largest Darknet markets that offered illegal drugs, fraudulent identification materials, counterfeit goods, hacking tools, malware, firearms, and toxic chemicals. Approximately 23.6%of all orders completed on AlphaBay were associated with an account created through a DDW referral link, meaning that DDW received a referral fee for 23.6% of all orders made on AlphaBay.

Over the course of the conspiracy, the defendants referred hundreds of thousands of users to Darknet marketplaces. These users in turn completed hundreds of millions’ of dollars’ worth of transactions, including purchases of illegal narcotics such as fentanyl, carfentanil, cocaine, heroin, and crystal methamphetamine, firearms, including assault rifles, malicious software and hacking tools, stolen financial information and payment cards and numbers, access device-making equipment, and other illegal contraband. Through the use of the referral links, the defendants received kickbacks worth millions of dollars, generated from the illicit sales conducted on Darknet marketplace accounts created through the site.

The defendants grew and promoted the DDW site, which functioned to drive further traffic to the DDW referral links, generating additional income for the defendants. Prihar functioned as the administrator of DDW. He registered the domain, made infrastructure payments and maintained control over site content. Phan was responsible for DDW’s technical operations, designing and maintaining the website’s day-to-day operation. Phan and Prihar communicated on a daily basis to facilitate their criminal enterprise.

From in or before November 2014 until the date of this indictment, the defendants ,,ontrolled a bitcoin wallet that they used to receive the kickback payments for purchases completed on the various Darknet marketplaces. Throughout the course of the conspiracy, DDW operated accounts on Darknet markets and communicated with the operators of various Darknet markets regarding kickback payments.

Between in and around November 2014 and April 10, 2019, DDW received approximately 8,155 bitcoin in kickback payments from Darknet marketplaces, worth approximately $8,414,173 when adjusted for the trading value of bitcoin at the time of each transaction. The bitcoin was transferred to DDW’s bitcoin wallet, controlled by the defendants, in a series of more than 40,000 deposits and was subsequently withdrawn to various destinations both known and unknown to the grand jury through over 2,700 transactions. Due to bitcoin’s fluctuating exchange rate, the value of the bitcoin at the time of the withdrawals from the DDW bitcoin wallet equated to approximately $15,489,415. In seeking to conceal their illicit activities and protect their criminal enterprise and the illegal proceeds it generated, the defendants set up numerous shell companies around the world. The defendants used these companies to move their ill-gotten gains and conduct other activity related to DDW. These companies included WwwCom Ltd., M&T Marketing, Imtech, O.T.S.R. Biztech, and Tal Advanced Tech.

“While there have been successful prosecutions of various Darknet marketplaces, this prosecution is the first to attack the infrastructure supporting the Darknet itself,” said U.S. Attorney Brady. The website has been seized by the FBI based on a court order obtained in the Western District of Pennsylvania.

 

“Websites like DeepDotWeb pose global threats that require global partnerships,” said FBI Special Agent in Charge Robert Jones. “DDW acted as a gateway to the Darknet, allowing for the purchase and exchange of illicit drugs and other illegal items around the world, and the individuals charged today profited from those nefarious transactions. The efforts of federal and international law enforcement should send the message that we are coming after the operators of these dangerous websites.”

An indictment contains only allegations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

This case was brought in conjunction with the Hi-Tech Organized Crime Unit, Joint Criminal Opioid and Darknet Enforcement (J-CODE) Team. Announced by the U.S. Attorney General in Pittsburgh, Pennsylvania, in January, 2018, J-CODE is a Department of Justice initiative targeting drug trafficking, especially fentanyl and other opioids, on the Darknet. The J-CODE team brings together experienced prosecutors, agents, analysts and professional staff with expertise in drugs, gangs, health care fraud and cyber-based investigations. J-CODE entities, including the FBI, Drug Enforcement Administration, U.S. Postal Inspection Service, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement Homeland Security Investigations, Department of Defense, Financial Crimes Enforcement Network and Department of Justice focus on disrupting the sale of drugs via the Darknet and dismantling criminal enterprises that facilitate this trafficking.

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. 

Assistant U.S. Attorney Jessica Lieber Smolar of the U.S. Attorney’s Office for the Western District of Pennsylvania, Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, and Trial Attorneys Alexander Gottfried and Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case. The FBI’s Pittsburgh Field Office is investigating the case. The United States Attorney thanks the French authorities, as well as its law enforcement colleagues at the United States Postal Inspection Service, Internal Revenue Service, Brazilian Federal Police Cyber Division, Israeli National Police, Dutch National Police, Europol Darkweb Team, Federal Criminal Police Office of Germany, and law enforcement in the United Kingdom. Significant assistance was also provided by the United States Department of Justice, Criminal Division’s Office of International Affairs.

Indictment

• DeepDotWeb Indictment

PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to three years and one month (37 months) in prison and three years’ supervised release on his conviction of being a felon in possession of a handgun, United States Attorney Scott W. Brady announced today.

United States District Judge Donetta W. Ambrose imposed the sentence on Christian Erik Ralph, 24.

According to information presented to the court, on December 26, 2017, security guards at the Monroeville Mall saw Ralph in possession of a handgun near one of the mall’s stores. The officer asked Ralph whether he had a conceal/carry permit for the weapon. Ralph did not reply and began to walk away. The Monroeville Police Department was provided with a description of Ralph and dispatched a unit. The police encountered Ralph near one of the mall’s entrances. Ralph admitted to the officers that he was armed and was placed under arrest. In 2016, Ralph had been convicted in state court of possession with intent to deliver a controlled substance and for carrying a firearm without a license, both of which are felonies. Federal law Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.

Assistant United States Attorney Michael Leo Ivory prosecuted this case on behalf of the government.

United States Attorney Brady commended the Monroeville Mall Security Department, the Monroeville Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Ralph.

The case was brought as part of Project Safe Neighborhoods. 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.

 

JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., has been indicted by a federal grand jury in Johnstown on a charge of possession of a prohibited object in prison, United States Attorney Scott W. Brady announced today.

The indictment named Bryan Wade Smith, 29.

According to the indictment presented to the court, on October 3, 2018, Smith possessed a quantity of Buprenorphine.

The law provides for a maximum sentence of 20 years in prison and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.

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

The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the prosecution of Smith.

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

PITTSBURGH, PA – An illegal alien who had been residing in Frederick, MD, pleaded guilty yesterday to Identity Theft, and has been sentenced in federal court to time served, United States Attorney Scott W. Brady announced today.

Chief United States District Judge Mark R. Hornak imposed the sentence on Elfego Sanchez-Carranza, 23, of Mexico, who has been in federal custody since November 10, 2018. Following service of the sentence of imprisonment, Sanchez-Carranza was remanded to the custody of federal immigration authorities for commencement of deportation proceedings.

According to the information presented to the court, Elfego Sanchez-Carranza used the name and Social Security number of another person to obtain employment with tree-trimming company Pennline, which is headquartered in the Western District of Pennsylvania.

The court was further advised that the defendant was not in the United States legally during the time of his employment with Pennline, and would not have been eligible to obtain employment in his own name during that time period. Defendant worked at Pennline between January and November of 2018, and earned wages at Pennline under the identity of the United States citizen whose name and Social Security number he did not have the authority to use.

Assistant United States Attorney Christy C. Wiegand prosecuted this case on behalf of the government.

United States Attorney Brady commended the U.S. Immigration and Customs Enforcement (ICE)/Homeland Security Investigations (HSI) and the Department of Labor, Office of the Inspector General for the investigation leading to the successful prosecution in this case.

PITTSBURGH, PA – A resident of Westmoreland County, Pennsylvania, has pleaded guilty in federal court on charges of aiding or assisting in the preparation or filing of false federal income tax returns, United States Attorney Scott W. Brady announced today.

Daniel K. Hamilton of Arnold, PA, pleaded guilty to one count before United States District Judge Nora Barry Fischer.

In connection with the guilty plea, the court was informed that between 2010 and 2016, Hamilton, a tax preparer for Cititax Refund Co. in Pittsburgh, prepared federal income tax returns for other persons that included false Schedule C information, and which requested more than $2 million in false Earned Income Tax Credit refunds for the taxpayer.

Judge Fischer scheduled the sentencing for October 2, 2019 at 9 a.m. The law provides for a total sentence of three years imprisonment for each count, a fine of $100,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.

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

The Internal Revenue Service-Criminal Investigations conducted the investigation that lead to the prosecution of Daniel K. Hamilton.

ERIE, Pa. - A citizen of Mexico pleaded guilty in federal court to a charge of violating federal immigration laws, United States Attorney Scott W. Brady announced today.

Juan Aranda-Lara, 38, pleaded guilty to one count before United States District Judge Susan Paradise Baxter.

In connection with the guilty plea, the court was advised that on or about December 17, 2018, Aranda-Lara was found to be unlawfully present within the United States. Aranda-Lara had been previously ordered deported and removed from the United States on May 11, 2001 and was removed from the United States on May 15, 2001, September 29, 2009, November 14, 2009, November 24, 2009, December 1, 2009, and November 20, 2014. The defendant subsequently reentered the United States, and was found to be present in this country without the permission of the Attorney General of the United States or his successor the Secretary of the Department of Homeland Security.

Judge Baxter scheduled sentencing for August 22, 2019 at 11 a.m. The law provides for a total sentence of two 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 offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.

Immigration and Customs Enforcement conducted the investigation that led to the prosecution of Aranda-Lara.

PITTSBURGH, PA - A former Beaver County resident pleaded guilty in federal court to charges of production and distribution of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.

Randolph Guy Gum, 25, formerly of Rochester, Pennsylvania pleaded guilty to three counts before Senior United States District Judge Mark R. Hornak.

In connection with the guilty plea, the court was advised that on January 19, 2014 and March 3, 2014, Gum employed, used, persuaded, induced, enticed, or coerced a minor—Minor A— to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct in the form of video and image files. At the time of the offense, Minor A was under the age of 18 years old. Gum produced the images and videos using material that had traveled in interstate commerce and knowingly distributed the images and videos containing the material depicting the sexual exploitation of Minor A to another individual via the Internet on July 23, 2015.

Judge Hornak scheduled sentencing for August 29, 2019 at 3:30 p.m. The law provides for a maximum sentence life imprisonment for the production of child pornography counts, and a maximum sentence of 20 years imprisonment for distribution of child pornography, and a fine of up to $750,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Pending sentencing, the Judge continued Gum's detention.

Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.

The Department of Homeland Security, Immigration & Customs Enforcement and the Rochester Pennsylvania Police Department conducted the investigation that led to the prosecution of Randolph Guy Gum.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

 

PITTSBURGH, Pa - A resident of Wilkinsburg, Pennsylvania, pleaded guilty yesterday in federal court to a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.

Mitchell Thompson, 21, pleaded guilty to one count before Chief United States District Judge Mark R. Hornak.

In connection with the guilty plea, the court was advised that on August 30, 2018, Thompson unlawfully possessed a Glock 9 millimeter pistol, after having been convicted of crimes punishable by more than one year in prison. Specifically, on August 30, 2018, law enforcement observed Mitchell take a black semi-automatic handgun from the front left side of his pants, and attempt to discard the gun into a row of bushes next to the sidewalk. The gun did not go into the bushes, instead bouncing back onto the sidewalk. The magazine then fell from the gun. Thompson’s convictions include one conviction for a firearms violation and one conviction for possession with intent to deliver a controlled substance and conspiracy to deliver a controlled substance. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.

Judge Hornak scheduled sentencing for August 29, 2019. The law provides for a maximum total sentence of 10 years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal historyof the defendant.

Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation, along with the Bureau and Alcohol, Tobacco, Firearms and Explosives and the Wilkinsburg Police Department, conducted the investigation leading to the Indictment in this case. The case was brought as part of Project Safe Neighborhoods. 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.

PITTSBURGH: A resident of Wellsburg, West Virginia, has been sentenced in federal court to three year of probation on his conviction of violating federal laws of interstate transportation of fraudulently obtained property, United States Attorney Scott W. Brady announced today.

United States District Judge Nora Barry Fischer imposed the sentence on James E. Miller, III, age 48, of Wellsburg, West Virginia.

According to the information presented to the court, Miller unlawfully caused two checks totaling $32,671.50, issued by a victim business, to be transported from Charleroi, Pennsylvania to Wellsburg, West Virginia, knowing that the checks were taken by fraud.  Miller transported a check in the amount of $19,527.50 in November 2016 and a check in the amount of $13,144.00 in January 2017.

Assistant United States Attorney Yvonne M. Saadi prosecuted this case on behalf of the government.

The U.S. Attorney commended the United States Postal Inspection Service – Criminal Investigation for the investigation leading to the successful prosecution of James E. Miller, III.

PITTSBURGH, Pa. -- A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug and firearms laws, United States Attorney Scott W. Brady announced today.

The three-count Indictment, returned on April 30 and unsealed yesterday, named William Bennett, aka Bucks, age 40, as the sole defendant.

According to the Indictment, on October 15, 2018, Bennett possessed with intent to distribute fentanyl and heroin. The Indictment further alleges that Bennett unlawfully possessed a Smith & Wesson model CS9 pistol in furtherance of the drug offense, after having been convicted of multiple crimes punishable by more than one year in prison. Those convictions include two convictions for firearms violations, and one conviction for receiving stolen property. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.

The law provides for a maximum total sentence of not less than five years and up to life in prison, a fine of $1,500,000, 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 Christy C. Wiegand is prosecuting this case on behalf of the government.

The Bureau of Alcohol, Tobacco, Firearms and Explosive, along with the Wilkinsburg Police Department, conducted the investigation leading to the Indictment in this Project Safe Neighborhoods (PSN) case. 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.

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

PITTSBURGH, PA - A former resident of Allegheny County, Pennsylvania, has been sentenced in federal court to two years’ (24 months’) imprisonment, followed by 10 years’ supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.

Senior United States District Judge Nora Barry Fischer imposed the sentence on John Edward Desalome, age 31, of Bridgeville, Pennsylvania.

According to information presented to the court, Desalome possessed on November 23, 2016, approximately 143 videos in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age. Desalome had been identified as a user of Bit Torrent, a peer-to-peer filing sharing network through which he was receiving, distributing, and possessing child pornography videos.

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

United States Attorney Brady commended the Federal Bureau of Investigation (FBI) for the investigation leading to the successful prosecution of Desalome.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

PITTSBURGH, PA - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to three years and six months of probation, with 10 months to be served on home confinement with electronic monitoring, and restitution in the amount of $103,415.00 on his conviction of theft of government property and false statement to the government, United States Attorney Scott W. Brady announced today.

United States District Judge Mark R. Hornak imposed the sentence on Robert J. Harris, Jr., 70, of Wilkinsburg, PA.

According to the information presented to the court, Harris converted to his own use $103,415.00 in Social Security benefits and Economic Stimulus money being paid to a fictitious person. He also lied to an employee of the Social Security Administration to make it appear that the fictitious claimant receiving benefits was still alive.

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

U.S. Attorney Brady commended the U.S. Social Security Administration-Office of Inspector General for the investigation leading to the successful prosecution of Robert J. Harris, Jr.

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

JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.

Justin R. Guillarmod, 36, pleaded guilty to one count of the indictment before United States District Judge Kim R. Gibson.

In connection with the guilty plea, on July 27, 2017, Guillarmod and a co-defendant did possess with intent to distribute more than 100 grams of heroin.

Judge Gibson scheduled sentencing for Sept. 30, 2019, at 11 a.m. The law provides for a maximum sentence for Guillarmod of 40 years in prison and a fine of $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.

The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Guillarmod.

 

PITTSBURGH, PA -A former resident of Washington, Pennsylvania, pleaded guilty in federal court to a charge of escaping from his federal sentence, United States Attorney Scott W. Brady announced today.

Zackory James Sadler, 34, pleaded guilty to the sole count of the indictment before Senior United States District Judge Donetta W. Ambrose.

In connection with the guilty plea, the court was advised that Sadler was back in federal prison as a result of: 1) violating his prior federal sentence for being a convicted felon in possession of a firearm; and 2) for previously escaping from federal custody. Sadler was at the Renewal Center halfway house in Pittsburgh on December 19, 2018 and was given permission to meet with his federal Probation Officer (PO). Sadler did not visit his PO and then failed to return to the Renewal Center. The United States Marshals Service Fugitive Unit began an investigation and the Renewal Center contacted Sadler’s friends and family. On December 21, 2019, Sadler returned to the Renewal Center. He was subsequently removed from the halfway house and sent back to prison.

Judge Ambrose scheduled sentencing for May 16, 2019 at 1 p.m. The law provides for a total sentence of up to five years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.

Pending sentencing, the court remanded Sadler back to prison.

Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.

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

JOHNSTOWN, PENNSYLVANIA - A resident of Clearfield County, Pennsylvania, has been sentenced in federal court to a term of imprisonment of four years and six months, to be followed by 10 years of supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.

United States District Judge Kim R. Gibson imposed the sentence yesterday in Johnstown on Ellis D. Passmore, Jr., 46, of Mahaffey, Pennsylvania.

According to information presented to the court, the Laurel Highlands Resident Agency of the FBI received a lead from the FBI’s Innocent Images Operations Unit regarding an individual in Washington State who produced images of at least three different children as she sexually molested them. The woman transmitted the images over the Internet to individuals whom she met online. Ellis D. Passmore, Jr.’s email address was identified as an address to where the images had been sent.

On October 5, 2015, FBI conducted a knock-and-talk at the Passmore’s residence. He admitted to viewing child pornography images on his computer. Agents obtained a search warrant for Passmore’s electronic devices and a forensic review revealed 1,182 videos depicting the sexual exploitation of prepubescent children, some of which depicted bondage.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

Assistant United States Attorneys Shanicka L. Kennedy and Jessica Lieber Smolar prosecuted this case on behalf of the government.

The Federal Bureau of Investigation conducted the investigation leading to the prosecution of Passmore, Jr.