Western District of Pennsylvania
Press releases recorded for this federal judicial district.
Sewickley Man Charged with Evading Taxes for Himself and His Cleaning BusinessRead the Press Release
PITTSBURGH, PA -- A resident of Sewickley, Pa., has been indicted by a federal grand jury in Pittsburgh, Pennsylvania on charges of tax evasion and obstructing the due administration of the internal revenue laws, United States Attorney Scott W. Brady announced today.
The three-count indictment named Mark Stanford as the sole defendant.
According to the indictment presented to the court, Stanford evaded payment of both his personal income taxes and the employer and employee portions of Social Security and Medicare taxes that he should have paid by virtue of owning and operating a cleaning business during the period 2009 through 2013. He is alleged to have made large personal expenditures (such as Bentley automobiles) rather than pay the taxes due and owing. He is also alleged to have lied to the IRS about his ability to pay his tax obligations and to have filed a false report with the IRS regarding his personal and business financial situation.
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 and up to three years in prison and a fine of up to $250,000 (or both) for the obstruction 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.
Assistant United States Attorney James R. Wilson is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Ohio Man Pleads Guilty to Multi-State Identity Theft ChargesRead the Press Release
PITTSBURGH, PA – A resident of Blacklick, Ohio, pleaded guilty in federal court to charges of conspiracy, transfer of a false identification document, mail fraud, wire fraud, and aggravated identity theft, United States Attorney Scott W. Brady announced today.
Albert McCall, 55, pleaded guilty to six counts before United States District Judge Arthur J. Schwab after jury selection and opening statements, but before the presentation of any evidence.
In connection with the guilty plea, the court was advised that McCall engaged in a conspiracy to violate various federal identity theft laws, harming victims from across the country. McCall and his co-conspirators obtained the victims’ personal identification information by purchasing the information on the dark web or through a variety of other means. Using embossing machines and card reader/writer tools, McCall created counterfeit identification documents, such as Ohio drivers’ licenses, and produced fraudulent credit cards that functioned as though they were real. McCall and his co-conspirators then used the counterfeit driver licenses and credit cards to purchase merchandise and rent hotel rooms and cars in the victims’ names. Further, they used the counterfeit identification documents to open lines of credit in victims’ names and without their knowledge, including a line of credit used to purchase more than $7,000 worth of jewelry from the Kay Jewelers in the Ross Park Mall. Investigators interrupted McCall’s criminal plot to use victims’ identities to purchase vehicles using the counterfeit driver licenses and stolen personal identification information.
The investigation included the use of an undercover federal law enforcement officer, who communicated with McCall and purchased from McCall a counterfeit Ohio driver’s license. McCall was arrested by the police department in Warren, Michigan, and the cellular telephones found on his person at the time of his arrest linked him to much of the criminal conduct at issue. Search warrants executed both in Ohio and in Pennsylvania provided further evidence of McCall’s extensive multi-state identity-theft scams.
Judge Schwab scheduled sentencing for November 27, 2018 at 9:30 AM. The law provides for a total sentence of not less than two years and up to 82 years in prison, a fine of $1,500,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered McCall detained.
Assistant United States Attorneys Brendan T. Conway and Christy C. Wiegand are prosecuting this case on behalf of the government.
The United States Secret Service and the United States Postal Inspection Service, in conjunction with multiple police departments in Pennsylvania and Ohio, including police departments from Columbus, Ohio, Canfield, Ohio, Bucks County, Ohio, Allegheny County, Pennsylvania, Pittsburgh, Pennsylvania, Ross Township, Pennsylvania, and Wilkins Township, Pennsylvania, conducted the investigation that led to the prosecution of McCall.
Kentucky Doctor Pleads Guilty in Johnstown to Conspiring to Defraud the U.S.Read the Press Release
JOHNSTOWN, Pa. - A resident of Louisville, Kentucky, pleaded guilty in federal court to a charge of conspiring to commit an offense against the United States, United States Attorney Scott W. Brady announced today.
Dr. John R. Baird, 52, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with Dr. Baird’s guilty plea to conspiring to commit an offense against the United States:
Universal Oral Fluid Labs ("UOFL") was a clinical drug testing and drug screening laboratory located in Greensburg, Pennsylvania. UOFL was located at 475 Willow Crossing Road, Greensburg, Westmoreland County, Pennsylvania. Dr. Baird was a physician licensed in the Commonwealth of Kentucky and the State of Indiana, who specialized in physical medicine, rehabilitation and pain treatment. Dr. Baird’s primary medical practice was located at 3012 East Point Parkway, Louisville, Kentucky 40223.
Both Dr. Baird and UOFL were enrolled providers in the Medicare program and the Kentucky Medicaid program. As a condition of becoming a Medicare provider and being authorized to bill Medicare, Dr. Baird and UOFL, like all other providers of health services to Medicare patients, were required to certify on their enrollment applications that they would comply with all applicable federal and state laws, regulations, policies, procedures, and program requirements.
UOFL billed, and was paid by, Medicare for performing drug tests and related services for Medicare beneficiaries who were referred to UOFL by physicians enrolled in the program, including Dr. Baird.
From on or about May 1, 2012, and continuing thereafter until at least July 31, 2013, in the Western District of Pennsylvania and elsewhere, Dr. Baird conspired with persons at UOFL and others to commit offenses against the United States, that is, to solicit and receive kickbacks from UOFL in return for referring patients to UOFL for the referral of patient lab
work, for which payment was made in whole or in part under a Federal health care program, namely, Medicare and Medicaid, contrary to Title 42, United States Code, Section 1320a- 7b(b)(1)(A).
It was a part of the conspiracy that Dr. Baird received monthly checks from UOFL in exchange for referrals, including Medicare and Medicaid referrals. Specifically, the monthly kickback checks UOFL paid to Dr. Baird were paid pursuant to the terms of a "joint venture" that Dr. Baird entered into with UOFL. Under this "joint venture," Dr. Baird referred all of his patients, including Medicare and Medicaid beneficiaries, to UOFL for drug testing and related services. UOFL, in turn, billed third-party payors, including Medicare and Medicaid, for such tests, and then kicked back to Dr. Baird, for each referred patient, reimbursement amounts for the tests that exceeded agreed upon thresholds, which were typically between $100.00 and $150.00. Dr. Baird received these "joint venture" payments from UOFL solely in exchange for the referrals Dr. Baird provided to UOFL, and not in exchange for the performance of any other services. Between May 1, 2012 and July 31, 2013, Dr. Baird received $567,609.36 in kickbacks from UOFL in return for Dr. Baird referring his patients' lab work to UOFL.
Judge Gibson scheduled sentencing for Dec. 6, 2018, at 10:30 a.m. The law provides for a maximum total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the 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 Federal Bureau of Investigation, Health and Human Services Office of Inspector General, the Internal Revenue Service Criminal Investigation, and Pennsylvania Office of Attorney General Medicaid Fraud Control Section conducted the investigation that led to the prosecution of Dr. Baird.
Johnstown Woman Admits Possessing and Distributing Crack CocaineRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Sabrina L. Rogers, 35, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on July 6, July 10, and July 11, 2017, Rogers distributed less than 28 grams of cocaine base, also known as "crack," and on July 12, 2017, Rogers possessed with the intent to distribute less than 28 grams of "crack."
Judge Gibson scheduled sentencing for Dec. 12, 2018, at 11 a.m. The law provides for a maximum sentence of 80 years in prison and a fine of $4,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Rogers.
Johnstown Woman Admits Distributing Cocaine and Using her Residence as a Drug HouseRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Patricia Ann Hawes, 54, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on May 11, 2016, Hawes distributed less than 500 grams of cocaine. Likewise, between April 22, 2016 and June 7, 2016, Hawes maintained her residence in Johnstown, Pa., for the purpose of distributing and using heroin and cocaine.
Judge Gibson scheduled sentencing for Dec. 11, 2018, at 10 a.m. The law provides for a maximum sentence of 40 years in prison and 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 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 Hawes.
Johnstown Woman Admits Distributing Cocaine and Using her Residence as a Drug HouseRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Patricia Ann Hawes, 54, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on May 11, 2016, Hawes distributed less than 500 grams of cocaine. Likewise, between April 22, 2016 and June 7, 2016, Hawes maintained her residence in Johnstown, Pa., for the purpose of distributing and using heroin and cocaine.
Judge Gibson scheduled sentencing for Dec. 11, 2018, at 10 a.m. The law provides for a maximum sentence of 40 years in prison and 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 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 Hawes.
Johnstown Man Admits Distributing Heroin on Four Occasions, Once within 1,000 Feet of a PlaygroundRead the Press Release
JOHNSTOWN, Pa. – A Cambria County resident pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Charles A. Meyer, 37, of Johnstown, Pa. pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Oct. 20, 2015, within 1,000 feet of a playground, and on Dec. 22, 2015, and Jan. 22, 2016, Meyer distributed less than 100 grams of heroin on each of those dates. Also on Jan. 22, 2016, Meyer possessed with the intent to distribute less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Dec. 11, 2018, at 11 a.m. The law provides for a maximum sentence of 100 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 offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Meyer.
Cambria County Man Pleads Guilty to Distributing HeroinRead the Press Release
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.
Joseph L. Prave, III, 52, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Jan. 26, 2016, Prave distributed less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Dec. 12, 2018, at 10:00 a.m. The law provides for a maximum sentence of 20 years in prison and a fine of $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 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 Prave.
Indiana, Pa. Bank Employee Sentenced for Embezzling Funds from Customers’ AccountsRead the Press Release
PITTSBURGH, Pa. - A resident of Indiana, Pennsylvania, has been sentenced in federal court to one day in prison, six months of community confinement and six months of home confinement on her conviction of embezzling from a federally insured bank, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Madeline Isenberg, 37, of Indiana, Pennsylvania.
According to information presented to the court, from in or around February 2012 until in or around August 2015, Isenberg, while employed as an Assistant Manager for First Commonwealth Bank, embezzled approximately $88,000 from customers’ accounts. Upon discovering the theft, the Bank reimbursed the customers.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Isenberg.
Weis Markets, Inc. Settles False Claims Act AllegationsRead the Press Release
PITTSBURGH – Weis Markets, Inc. a food retailer based in Sunbury, Pennsylvania, agreed to pay the United States $77,320 to resolve allegations that it violated the False Claims Act by inappropriately using gift cards to induce Medicare and Medicaid beneficiaries to transfer or fill their prescriptions at its affiliated pharmacies, United States Attorney Scott W. Brady announced today.
The settlement resolves allegations that between January 1, 2009, and May 31, 2016, Weis Markets offered and/or provided improper inducements to Medicare and Medicaid beneficiaries in order to influence their decision to transfer or fill their prescriptions at Weis-affiliated pharmacies.
This matter was investigated by the Office of Inspector General of the Department of Health and Human Services. Assistant United States Attorney Rachael L. Mamula handled this matter on behalf of the United States.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Pittsburgh Teen Charged with Federal Drug Trafficking and Firearms CrimesRead the Press Release
PITTSBURGH, PA – Daryl Williams has been indicted by a federal grand jury in Pittsburgh for committing drug trafficking and firearm crimes, United States Attorney Scott W. Brady announced today.
The indictment, returned on July 10 and unsealed today, charges Williams, age 19, of Pittsburgh, with possession of a mixture of heroin and para-fluoroisobutyryl fentanyl with intent to distribute on May 6, 2018; possession of a firearm in furtherance of a drug trafficking crime on May 6, 2018; possession of mixtures of heroin and para-fluoroisobutyryl fentanyl, heroin and fentanyl, and heroin with intent to distribute on May 29, 2018; and possession of a firearm in furtherance of a drug trafficking crime on May 29, 2018.
The law provides for a maximum total sentence of not less than 30 years and up to life in prison, and a fine of up to $2,500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime. The Green Tree Police Department, the Pittsburgh Bureau of Police, the Federal Bureau of Investigation, and the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives 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.
Judge Sentences Ambridge Fentanyl Dealer to 18 Years in Federal PrisonRead the Press Release
PITTSBURGH – Jeffrey Rogers, formerly of Ambridge, Pennsylvania, was sentenced to 18 years in prison for conspiring to distribute over 40 grams of fentanyl and for then distributing fentanyl, United States Attorney Scott W. Brady announced today.
The sentence was imposed yesterday by Chief United States District Court Judge Joy Flowers Conti. Rogers was also sentenced to serve eight years of supervised release upon release from prison.
Rogers was convicted following his guilty pleas in March 2018. As part of his plea agreement, Rogers accepted responsibility for causing the death of H.P. through fentanyl distribution. Also as part of his guilty plea, Rogers acknowledged that he was responsible for the distribution of at least 280 grams of fentanyl. Rogers was previously convicted of drug trafficking in 2007 in the Beaver County Court of Common Pleas.
Assistant United States Attorneys Katherine A. King and Craig W. Haller prosecuted this case on behalf of the United States.
The conviction and sentence in this case was conducted by the Drug Enforcement Administration in partnership with the Pennsylvania Office of the Attorney General, Ambridge Police Department, New Brighton Police Department, Beaver Police Department, Aliquippa Police Department, Moon Township Police Department, Wilkinsburg Police Department, West Mifflin Police Department, Allegheny County Police Department, Duquesne Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police.
The investigation was a product of 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.
Attorney General Sessions Announces Operation Synthetic Opioid SurgeRead the Press Release
PITTSBURGH – Attorney General Jeff Sessions and U.S. Attorney Scott W. Brady of the Western District of Pennsylvania today announced Operation Synthetic Opioid Surge (S.O.S.), a new program that seeks to reduce the supply of deadly synthetic opioids in high impact areas and to identify wholesale distribution networks and international and domestic suppliers.
As part of Operation S.O.S., the Department will launch an enforcement surge in ten districts with some of the highest drug overdose death rates, including the Western District of Pennsylvania. The Organized Crime Drug Enforcement Task Forces (OCDETF) Executive Office will send an additional two-year term Assistant United States Attorney to each participating district to assist with opioid-related prosecutions.
The ten participating districts are:
Northern District of Ohio
Southern District of Ohio
Eastern District of Tennessee
Eastern District of Kentucky
Southern District of West Virginia
Northern District of West Virginia
District of Maine
Eastern District of California
Western District of Pennsylvania
District of New Hampshire
Each participating United States Attorney’s Office (USAO) will choose a specific county and prosecute every readily provable case involving the distribution of fentanyl, fentanyl analogues, and other synthetic opioids, regardless of drug quantity. The surge
will involve a coordinated DEA Special Operations Division operation to ensure that leads from street-level cases are used to identify larger-scale distributors.
"When it comes to synthetic opioids, there is no such thing as a small case," Attorney General Sessions said. "In 2016, synthetic opioids killed more Americans than any other kind of drug. Three milligrams of fentanyl can be fatal--that's not even enough to cover up Lincoln's face on a penny. Our prosecutors in Manatee County, Florida have shown that prosecuting seemingly small synthetic opioids cases can have a big impact and save lives, and we want to replicate their success in the districts that need it most. This new strategy—and the new prosecutors who will help carry it out—will help us put more traffickers behind bars and keep the American people safe from the threat of these deadly drugs."
"The opioid epidemic is the single greatest drug crisis of our lifetimes. Opioid-related overdoses have increased to unprecedented levels, with fentanyl and its analogues more available and lethal than ever," stated U.S. Attorney Brady. "In response, we have attacked this epidemic with urgency. In partnership with Washington County District Attorney Gene Vittone, our appointment of a Washington County Assistant District Attorney to serve as a Special Assistant United States Attorney has resulted in dozens of successful prosecutions and a reduction in the number of overdose deaths. Through Operation S.O.S., the addition of a full-time federal prosecutor to focus on this ‘hot spot’ county within our district will allow us to continue this vital work."
Located to the southwest of Pittsburgh, Washington County has an estimated population on 208,261 people and encompasses an area of 861 square miles. In 2017 there were 98 fatal drug overdoses, 71 of which contained fentanyl. This compared to: 109 overdoses in 2016 (68 containing fentanyl), 73 overdoses in 2015 (38 containing fentanyl), and 36 overdoses in 2014 (five containing fentanyl).
Operation S.O.S. was inspired by a promising initiative of the United States Attorney’s Office in the Middle District of Florida involving Manatee County, Florida. In Manatee County, a county just south of Tampa with a population of about 320,000, overdoses and deaths skyrocketed in 2015 (780 overdoses/84 opioid related deaths) and 2016 (1,287 overdoses/123 opioid related deaths). In summer of 2016, local law enforcement reported frequent, street-level distribution of fentanyl and carfentanil for the first time.
To combat this crisis, the Middle District of Florida committed to prosecuting every readily provable drug distribution case involving synthetic opioids in Manatee County regardless of drug quantity. The effort resulted in the indictments of 45 traffickers of synthetic opioids. Further, from the last six months of 2016 to the last six months of 2017, overdoses dropped by 77.1% and deaths dropped by 74.2%. Overall, the Manatee County Sheriff’s Office went from responding to 11 overdoses a day to an average now of less than one per day.
Washington Man Charged with Conspiring to Defraud Credit UnionsRead the Press Release
PITTSBURGH, PA – A resident of Washington, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal bank laws, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on July 10, charged Solomon Chambers, Sr., age 50, with one count of conspiracy to commit bank fraud.
According to the indictment, from on or about July 14, 2016 to on or about July 23, 2016, Chambers and other individuals conspired to defraud Members 1st Federal Credit Union and Pennsylvania State Employees Credit Union. Chambers and other conspirators deposited non-sufficient checks into bank accounts at those credit unions, and then made cash withdrawals or point-of-sale purchases that rendered those accounts overdrawn.
The law provides for a maximum total sentence of 30 years in prison, a fine of either $250,000 or an alternative amount depending on the victims’ losses, 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 Adam N. Hallowell is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pleasant Hills Man Charged with Robbing 2 Westmoreland County BanksRead the Press Release
PITTSBURGH, PA - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of bank robbery, United States Attorney Scott W. Brady announced today.
The two-count indictment, returned on July 10, named Matthew David Stanley, age 32, formerly of Pleasant Hills, Pennsylvania, as the sole defendant.
According to the Indictment, on August 19, 2013, Matthew David Stanley robbed the First Commonwealth Bank on 8091 Route 22, New Alexandria, Pennsylvania, PA 15670 of $3,700. Stanley also robbed the Citizens Bank at 2841 Ligonier Street, Latrobe, PA 15650 of $2,413 on August 23, 2013, according to the Indictment.
The law provides for a maximum total sentence of not more than 20 years in prison and a fine of not more than $250,000.00 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt, a prosecutor in the Major Crimes Section, is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Latrobe Police Department and the Westmoreland County Bureau of Criminal Investigation conducted the investigation that lead to the prosecution of Matthew David Stanley.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Facing Bank Robbery ChargesRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and committing bank robbery, United States Attorney Scott W. Brady announced today.
The two-count indictment, returned on July 10, named Mark Hammond, 54, as the sole defendant.
According to the indictment, on or about January 10, 2018, Hammond conspired with another individual to rob Huntington Bank located at 650 Smithfield Street, Pittsburgh, PA 15222.
The law provides for a maximum total sentence of not more than twenty (20) years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Rebecca L. Silinski and Timothy M. Lanni are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Clairton Man Sentenced for Role in Cocaine Trafficking SchemeRead the Press Release
PITTSBURGH, PA – A resident of Clairton, Pennsylvania, has been sentenced in federal court to three years’ probation, 180 days of which is to be served in home confinement, and a $7,500 fine on his conviction of conspiracy to distribute narcotics, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Samuel Lopresti, 56.
According to information presented to the court at the time he entered a guilty plea, Lopresti, from March through June 2017, regularly purchased cocaine in 1.5 ounce to four ounce quantities from his codefendant, Skyler Carter, for personal use and for further distribution in the Clairton area. He was held responsible for the distribution of between 400 and 500 grams of cocaine during that period. Lopresti is the fourth of the 21 defendants charged in the conspiracy to be sentenced.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. 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.
Braddock Felon Charged with Illegally Possessing Heroin and GunsRead the Press Release
PITTSBURGH, PA – A former resident of Allegheny County, 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 July 10, named Javell R. Garner, a/k/a "Vell", a/k/a "Trill", age 25, of Braddock, Pennsylvania, as the sole defendant.
According to the Indictment, in May 2017, Garner possessed a .22 caliber semi-automatic Phoenix Arms pistol; and on June 14, 2018, he possessed a .45 G.A.P. caliber semi-automatic Springfield Armory pistol and .45 G.A.P caliber ammunition, after having been convicted of previous felony drug trafficking offenses. The Indictment further alleges that on June 14, 2018, Garner possessed with intent to distribute heroin, a Schedule I controlled substance.
The defendant faces a maximum total penalty of up to 40 years 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 of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to theiIndictment in this case with valuable assistance from the Pittsburgh Bureau of Police, the Port Authority Police Department, the Allegheny County Housing Authority, the Braddock Police Department, and the Pennsylvania State Police. This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Woman Sentenced for Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH - A former resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to three years probation, with the first eight months to be served on home detention with electronic monitoring, on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Sharima Zyhier, 41, of Pittsburgh, Pennsylvania.
According to information presentenced to the court, from in and around January 2016, and continuing thereafter to in and around May 2016, Zyhier conspired with others to distribute, and possess with intent to distribute, cocaine, a Schedule II controlled substance.
Assistant United States Attorneys Cindy K. Chung and Katherine A. King prosecuted this case on behalf of the government.
U.S. Attorney Scott W. Brady commended the federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) for conducting the investigation leading to the successful prosecution of Sharima Zyhier. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Pennsylvania Office of the Attorney General, Ambridge Police Department, New Brighton Police Department, Beaver Police Department, Aliquippa Police Department, Moon Township Police Department, Wilkinsburg Police Department, West Mifflin Police Department, Allegheny County Police Department, Duquesne 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 Man Took Nearly $120K During 2016 Bank Robbery Spree across Southwestern PARead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of armed bank robbery and bank robbery, United States Attorney Scott W. Brady announced today.
Gregory Magee, 48, pleaded guilty to two counts of armed bank robbery and four counts of bank robbery before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Magee robbed six banks between January through November of 2016.
The court was advised that on the afternoon of January 20, 2016, Magee entered First Niagara Bank located at 20111 Route 19, Cranberry Township, Pennsylvania, wearing a hooded sweatshirt, cap, sunglasses, gloves, and scarf covering this face. Upon entering the bank, Magee brandished a black handgun and demanded money from several tellers, who gave him $5,526.
The court was further advised that on the afternoon of February 29, 2016, Magee entered First Merit Bank located at 2090 West State Street, New Castle, Pennsylvania, wearing a green poncho, sunglasses, gloves, and scarf covering his face. Upon entering the bank, Magee brandished a black handgun, handed plastic bags to several tellers, and demanded money from the tellers, who complied and gave him $10,126. Magee fled the scene of the robbery in his personal vehicle, a black Cadillac ATS with black rims, which was observed on video surveillance and by an eyewitness.
The court was further advised that around noon on March 31, 2016, Magee entered First Niagara Bank located at 4073 Washington Road, McMurray, Pennsylvania, wearing sunglasses and gloves. Upon entering the bank, Magee threatened that he had a gun, gave plastic bags to tellers, and demanded money from the tellers, who complied and gave him $9,133. Magee carried an open umbrella inside the bank while committing this robbery. Magee fled the scene of the robbery in a bronze Cadillac ATS, which he was driving as a loaner vehicle. This vehicle was captured on surveillance video and observed by an eyewitness.
The court was further advised that late morning on June 8, 2016, Magee entered First Commonwealth Bank located at 5847 Forbes Avenue, Pittsburgh, Pennsylvania, wearing a hooded sweatshirt, sunglasses, and gloves. Upon entering the bank, Magee threatened that he had a gun, handed out plastic bags to several tellers, and demanded money from the tellers, who complied and gave him $3,709. Magee again held an open umbrella during this robbery.
The court was further advised that on the afternoon of August 11, 2016, Magee entered Citizens Bank located at 2537 Constitution Boulevard, Beaver Falls, Pennsylvania, wearing a hooded sweatshirt, baseball cap, sunglasses, gloves, and scarf covering his face. Upon entering the bank, Magee threatened to have a bomb, handed plastic bags to several tellers, and demanded money from the tellers, who complied and gave him $12,559. Magee again carried an open umbrella in the bank while committing this robbery. Magee’s hat was left at the scene of the robbery. DNA was recovered from the hat and found by the FBI laboratory to match a DNA sample from Magee. Magee was observed fleeing the scene in a Buick Regal, which he was driving as a loaner vehicle that day.
The court was further advised that around noon on November 8, 2016, Magee entered S&T Bank located at 4580 Broadway Boulevard, Monroeville, Pennsylvania, wearing a hooded jacket, sunglasses, and gloves. Upon entering the bank, Magee threatened to have a bomb and displayed a bag with protruding wires. Magee handed plastic bags to several tellers and demanded money from them, and they complied. Magee also demanded access to the bank’s vault. The bank manager opened the vault and gave cash from the vault to Magee. Magee stole $78,643 during this robbery. Magee was apprehended by law enforcement shortly after the robbery hiding in a drainage pipe in a wooded area near the bank. Magee was in possession of the stolen currency and bag with protruding wires, later determined to be Ethernet cables. Magee had driven a loaner Cadillac vehicle, which was located near the scene of the robbery.
After his arrest, a 9mm Kel-Tec handgun loaded with nine rounds of ammunition was recovered from Magee’s personal vehicle.
Judge Fischer scheduled sentencing for November 29, 2018. With respect to each armed bank robbery, the law provides for a maximum sentence of not more than 25 years in prison, a fine of $250,000, or both. With respect to each bank robbery, the law provides for a maximum 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 offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney David Lew is prosecuting this case on behalf of the government. The Federal Bureau of Investigation, Cranberry Township Police Department, Union Township Police Department, Peters Township Police Department, Pittsburgh Bureau of Police, Chippewa Township Police Department, Monroeville Police Department, and Allegheny County Sheriff’s Office conducted the investigation leading to the guilty plea in this case.
Johnstown Residents Charged with Violating Federal Drug and Gun LawsRead the Press Release
JOHNSTOWN, Pa. – Two Cambria County residents were indicted by a federal grand jury in Johnstown on charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The indictment named Alissa N. Mosley, 29, and Justin R. Guillarmod, 35, of Johnstown, Pa.
According to the indictment presented to the court, on July 27, 2017, Mosley and Guillarmod did possess with intent to distribute more than 100 grams of heroin. Also, on July 27, 2017, Guillarmod was found in possession of a Taurus Magnum .357 caliber revolver. On Dec. 2, 2014, Guillarmod was convicted in the Court of Common Pleas of Cambria County, PA, of drug trafficking, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
The law provides for a maximum sentence for Mosley of 40 years in prison and a fine of $5,000,000 or both. The law provides for a maximum sentence for Guillarmod of 50 years in prison and a fine of $5,250,000 or both Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney 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 Mosley and Guillarmod.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Erie Resident Charged with Violating Federal Laws Regaarding the Sexual Exploitation of ChildrenRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
The four-count indictment named Mark Joseph Bretz, 27, as the sole defendant.
According to the indictment presented to the court, 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.
The law provides for a maximum total sentence of 26 years in prison, a fine of $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.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Erie County Detectives Bureau 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.
Federal Inmate Charged with Illegally Possessing Buprenorphine in PrisonRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., was 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 Ramon Santiago-Sandoval, 27.
According to the indictment presented to the court, on October 23, 2017, Santiago-Sandoval 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 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 Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the prosecution of Rodriguez-Melendez.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Felon Indicted for Illegally Possessing Crack Cocaine and PistolsRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The indictment named Leon E. Szewczyk, 34, of Johnstown, Pa.
According to the indictment presented to the court, on April 6, 2018, Szewczyk possessed with the intent to distribute more than 28 grams of cocaine base, commonly known as "crack," and a quantity of fentanyl. Also, on April 6, 2018, he was found in possession of a loaded Raven ArmsModel MP25, .25 caliber semi-automatic pistol and a Ruger, Model LCP, .380 caliber semi-automatic pistol. On Nov. 2, 2010, Szewczyk was convicted in United States District Court for the Western District of Pennsylvania, of drug trafficking, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
The law provides for a maximum sentence of 70 years in prison and a fine of $6,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney 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 Szewczyk.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
FCI-Loretto Inmate Charged with Possessing Prohibited Substance in PrisonRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., was 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 Dilpreet Singh, 33.
According to the indictment presented to the court, on July 14, 2017, Singh 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 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 Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the prosecution of Rodriguez-Melendez.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Erie Man Charged with Receiving and Possessing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
The two-count indictment named Mark Anthony Prindle, 24, 1534 Taki Drive, Erie, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, Prindle received and possessed computer images and movies depicting prepubescent minors engaging in sexually explicit conduct.
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.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations and the Millcreek 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.
Altoona Woman Charged with Illegally Using Her Son’s Social Security BenefitsRead the Press Release
JOHNSTOWN, Pa. - A Blair County resident has been indicted by a federal grand jury in Johnstown on a charge of conversion of government funds, United States Attorney Scott W. Brady announced today.
The indictment named Delores Ann Clouser, 68, of Altoona, Pa.
According to the indictment presented to the court, from May 1, 2015, to March 1, 2017, Clouser did receive and convert falsely to her own use a total of $16,865, which represents approximately 23 separate Social Security Administration benefit payments made to her as representative payee for her son, to which she was not entitled.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Judge Sentences CPA to Prison for Helping Cyber Charter School CEO in Fraud SchemeRead the Press Release
PITTSBURGH, PA - A resident of Koppel, Pennsylvania, has been sentenced by a federal district court judge in Pittsburgh, Pennsylvania, to one year and a day in prison on charges of Criminal Conspiracy to Impede the Lawful Functions of the Internal Revenue Service in Ascertaining and Collecting Taxes, United States Attorney Scott W. Brady announced today.
Neal Prence, 62, entered a plea of guilty on September 28, 2016, to Count 6 (Criminal Conspiracy) of an Indictment that was returned by a grand jury against Prence and co-defendant Nicholas Trombetta in August of 2013. In his plea, Prence acknowledged that his actions had played a part in causing a tax loss to the Federal Government that Judge Conti found was $437,632.
According to the particular charges set forth in Count 6 of the Indictment, Prence, a certified public accountant, was instrumental in aiding the former head of the PA Cyber Charter School, Trombetta, in funneling approximately $8,000,000 from PA Cyber through an entity then known as NNDS and finally to a company called Avanti Management Group, where Trombetta had free access to the funds. Among the matters charged in Count 6 that were attributed to Prence were the filing of tax returns that attributed Trombetta’s income to the four straw owners of Avanti, the filing of false tax returns by Trombetta’s sister, Elaine Trombetta Neill, and the filing of false tax returns on behalf of Trombetta. All of this was done to disguise income that should have been reported by Trombetta, but was shifted to other persons or entities.
At the sentencing proceeding, Chief U.S. District Judge Joy Flowers Conti also imposed a three-year term of supervised release on Prence and ordered him to pay $50,000 in restitution to the IRS. Judge Conti stated that, "As a CPA, Prence knew what he was doing was illegal."
Assistant United States Attorneys Stephen R. Kaufman, Robert S. Cessar and James R. Wilson prosecuted this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation and the United States Department of Education – Office of Inspector General conducted the investigation leading to the prosecution of this case.
Judge Finds Ohio Man Guilty of Possessing CocaineRead the Press Release
PITTSBURGH, PA - Upon the conclusion of a non-jury trial before United States District Judge Reginald B. Walton, Judge Walton found Adolph Brown guilty of one count of possession with intent to distribute 500 grams or more of cocaine, United States Attorney Scott W. Brady announced today.
Brown, 47, formerly of Akron, Ohio, waived his right to a jury trial, resulting in a non-jury bench trial before the Honorable Judge Walton in Pittsburgh, Pennsylvania.
According to Assistant United States Attorneys Stephen S. Gilson and Eric Olshan, who prosecuted the case, the evidence presented at trial established that, on March 2, 2015, Adolph Brown traveled from Akron, Ohio, to Farrell, Pennsylvania, for the purposes of completing a sale of approximately 722 grams of cocaine. While on his way to Farrell, the vehicle Brown was traveling in was stopped by police and searched. The search resulted in the discovery of the cocaine hidden behind inside a child’s car seat in the back seat of the vehicle. Upon the discovery of the cocaine, Brown voluntarily spoke with special agents from the Federal Bureau of Investigation, who were leading the investigation In this interview with the FBI, Brown admitted that the cocaine was his and that he was on his way to sell the cocaine to a customer in Farrell. Drug lab reports later confirmed the amount and type of narcotics was approximately 722 grams of cocaine.
Judge Walton scheduled sentencing for November 13, 2018 at 2 p.m. The law provides for a total sentence of not less than 10 years and not more than life in prison, a fine not to exceed $8,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued the defendant’s detention.
The Federal Bureau of Investigation conducted the investigation thethat led to the prosecution of Adolph Brown, with assistance from the Southwest Mercer County Regional Police Department, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office.
North American Power Group Ltd and its Owner Agree to Pay $14.4 Million to Resolve Alleged False Claims for Department of Energy Cooperative Agreement FundsRead the Press Release
North American Power Group Ltd. (NAPG) and its owner and president, Michael Ruffatto, have agreed to pay the United States $14.4 million to resolve allegations that they violated the False Claims Act by submitting fraudulent claims under a cooperative agreement with the Department of Energy (DOE) National Energy and Technology Laboratory (NETL), located in Pittsburgh, Pennsylvania, the Department of Justice announced today.
Based in Greenwood Village, Colorado, NAPG develops, owns, operates and manages energy-related projects. On December 8, 2009, NETL awarded a $14 million cooperative agreement to NAPG for a Carbon Site Characterization Project to collect and analyze data, as well as to design and implement carbon sequestration wells at the Two Elk Energy Park (TEEP) located in Campbell County, Wyoming. Between December 2009 and January 2012, Ruffatto served as NAPG’s representative for the cooperative agreement and was responsible for authorizing the submission of the company’s invoices to NETL for payment. During that time, NAPG was paid approximately $5.7 million by NETL for costs purportedly related to the project. In fact, however, none of the claimed costs were for work associated with the project and instead reflected expenses incurred by Ruffatto to pay legal fees, car payments, jewelry, international travel and other personal items unrelated to the scope of work under the cooperative agreement. The DOE suspended the cooperative agreement in January 2012 after discovering the fraudulent claims.
“The money allocated by Congress for the National Energy and Technology Laboratory is designed to fund the important mission carried out by the laboratory, not to be diverted for personal use,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This investigation and its resolution demonstrate that the Justice Department will work with its agency partners to ensure that public funds are used for their intended purposes.”
“This $14.4 million False Claims Act settlement is the largest NETL settlement in the history of western Pennsylvania,” said U.S. Attorney Scott W. Brady of the Western District of Pennsylvania. “Protecting taxpayer funds is an important priority of our office and this settlement, along with yesterday’s sentence, demonstrate we will use every tool in our arsenal to prevent and deter wrongful expenditures of government monies.”
“The Office of Inspector General is committed to ensuring the integrity of Department subcontractors by detecting and holding accountable those who choose to abuse their positions of trust while attempting to hide behind sophisticated fraud schemes,” said Acting Inspector General April G. Stephenson for the Department of Energy’s Office of Inspector General. “We appreciate the efforts of the DOJ in pursuing this important matter resulting in an 18 month sentence of incarceration, a $50,000 fine and a $14.4 million civil settlement for Mr. Ruffatto and NAPG. We will continue to work with the DOJ to aggressively investigate those who seek to defraud Department programs.”
On October 21, 2016, Ruffatto entered a plea of guilty in the U.S. District Court for the Western District of Pennsylvania to a felony count of intentional submission of false claims under 18 U.S.C. § 287. He was sentenced on June 27, 2018, to 18 months in prison, three years supervised release, a $50,000 fine and $2 million dollars more in restitution.
This settlement was the result of a joint investigation conducted by the DOE Office of Inspector General, the Civil Division of the Department of Justice and the U.S. Attorney’s Office for the Western District of Pennsylvania.
Turtle Creek Woman Pleads Guilty to Multiple Federal CrimesRead the Press Release
PITTSBURGH, Pa – A resident of Turtle Creek, Pennsylvania pleaded guilty in federal court to charges of violating federal firearms laws, conspiracy to commit identity theft offenses, unauthorized use of counterfeit driver’s licenses and credit cards, wire fraud, aggravated identity theft, and accessing protected computers without permission, United States Attorney Scott W. Brady announced today.
Quinyahta Rochelle, 32, pleaded guilty yesterday to six counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Rochelle participated in a number of different crimes. Between March 2016 and July 2016, Rochelle assisted another individual gain access to social media accounts of various celebrities by hacking into their accounts. During a search warrant related to that investigation, law enforcement executed a search warrant at her home, where the officers located several stolen firearms and many rounds of ammunition. Rochelle was a felon at the time of the search and therefore could not legally possess firearms or ammunition under federal law.
Contemporaneously with the execution of the arrest warrant on the firearms charge, law enforcement executed a second search warrant at her home based on information that Rochelle was engaged in a complex multi-state identity theft scheme. Ultimately, the investigation revealed that Rochelle obtained the names, dates of birth, social security numbers, credits cards, and other information through a variety of means, including through purchasing the material on the internet. Rochelle and her conspirators would then use that information to manufacture counterfeit credit cards and driver’s licenses, which they then used to make purchases and apply for credit both on-line and in person.
Judge Schwab scheduled sentencing for November 26, 2018. The law provides for a total maximum possible sentence of no less than two years and no more than 48 years in prison, a fine of $1,350,000, 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 Brendan T. Conway is prosecuting this case on behalf of the government.
The United States Secret Service and the United States Postal Inspection Service, in conjunction with the multiple police departments in Pennsylvania, Ohio, and California, including police departments from Columbus, Ohio, Canfield, Ohio, Bucks County, Ohio, Allegheny County, Pennsylvania, Pittsburgh, Pennsylvania, Ross Township, Pennsylvania, Wilkins Township, Pennsylvania, and Los Angeles, California, conducted the investigation that led to the prosecution of Rochelle.
North American Power Group, Ltd. and Michael Ruffatto Agree to Pay $14.4 Million to Resolve Alleged False Claims for Department of Energy Cooperative Agreement FundsRead the Press Release
PITTSBURGH - North American Power Group, Ltd. (NAPG) and its owner and president, Michael Ruffatto, have agreed to pay the United States $14.4 million to resolve allegations that they violated the False Claims Act by submitting fraudulent claims under a cooperative agreement with the Department of Energy (DOE) National Energy and Technology Laboratory (NETL), located in Pittsburgh, Pennsylvania, U.S. Attorney Scott W. Brady announced today.
Based in Greenwood Village, Colorado, NAPG develops, owns, operates and manages energy-related projects. On December 8, 2009, NETL awarded a $14 million cooperative agreement to NAPG for a Carbon Site Characterization Project to collect and analyze data, as well as to design and implement carbon sequestration wells at the Two Elk Energy Park (TEEP) located in Campbell County, Wyoming. Between December 2009 and January 2012, Ruffatto served as NAPG’s representative for the cooperative agreement and was responsible for authorizing the submission of the company’s invoices associated with the project to NETL for payment. In that time, NAPG submitted more than $7 million in claims for reimbursement under the cooperative agreement, of which approximately $5.7 million was reimbursed by NETL. A federal investigation revealed that the $5.7 million paid by DOE to NAPG for costs supposedly related to the NETL project were actually used by Ruffatto to pay legal fees, car payments, jewelry, international travel, and other personal items unrelated to the scope of work under the cooperative agreement. The DOE suspended the cooperative agreement in January 2012 after discovering the fraudulent claims.
On October 21, 2016, Ruffatto entered a plea of guilty in the U.S. District Court for the Western District of Pennsylvania to a felony count of intentional submission of false claims under 18 U.S.C. § 287. He was sentenced on June 27, 2018, to 18 months in prison, three years supervised release, a $50,000 fine and was directed to pay $2 million dollars more in restitution as the remainder of the civil settlement.
"This $14.4 million False Claims Act settlement is the largest NETL settlement in the history of western Pennsylvania," said U.S. Attorney Scott W. Brady of the Western District of Pennsylvania. "Protecting taxpayer funds is an important priority of our office and this settlement, along with yesterday’s sentence, demonstrate we will use every tool in our arsenal to prevent and deter wrongful expenditures of government monies."
The settlement was the result of a joint investigation conducted by the DOE Office of Inspector General, the Civil Division of the Department of Justice, and the U.S. Attorney’s Office for the Western District of Pennsylvania. Senior Trial Counsel Donald J. Williamson of the Department of Justice’s Civil Frauds Section and Assistant United States Attorney Paul E. Skirtich handled the investigation that led to this civil settlement on behalf of the United States.
Local Amateur Radio Operator Agrees to Pay $7,000.00 to Settle Federal Complaint for Violations of the Federal Communications ActRead the Press Release
PITTSBURGH – An experienced and well-known local amateur radio operator agreed to pay the United States $7,000.00 to resolve allegations that he intentionally disrupted the communications of other amateur operators without their consent or permission, United States Attorney Scott W. Brady announced today.
The settlement resolves allegations in a Complaint filed in Federal Court in Pittsburgh, Pennsylvania, against Brian Crow, a resident of Westmoreland County. The settled claims contend that on March 14, 2014, Crow intentionally and unlawfully engaged in one-way communications, which interfered with the licensed communications of other amateur operators and also failed to use his ‘call sign’ as required by Federal law and enforced by the Federal Communications Commission (FCC). Licensed amateur radio operators can only communicate with other operators who agree to participate. To allow otherwise would not only disrupt consensual communications among radio operators but would lead to a chaotic situation. Besides paying the above amount, Crow agreed that his license operating class will be reduced to Technician class for the next six months and agreed to discontinue contact with the individuals involved in this case. Crow has held an amateur radio operator license at the most advanced class since 1997, and obtained his first license in 1976.
"Allowing licensed amateur radio operators the freedom to converse with others in an orderly fashion and without unwanted disruption is one of the missions of the FCC," said U.S. Attorney Brady. "This complaint identifies one such individual who intentionally interfered with other law-abiding amateur radio operators."
This matter was investigated by the Enforcement Bureau of the Federal Communications Commission. Assistant United States Attorney Paul E. Skirtich handled the investigation that led to the filing of the Complaint and settlement on behalf of the United States.
The case is captioned as United States of America v. Brian Crow (No. 17-595).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Family Practice Doctor Pays $360,000 to Settle False Claims Act AllegationsRead the Press Release
PITTSBURGH – Brent E. Clark, M.D., a former family practice doctor in Pittsburgh, agreed to pay $360,000 to the United States to settle claims that he violated the False Claims Act by submitting or causing to be submitted false claims to Medicare and Medicaid for medically unnecessary and unreasonable services, United States Attorney Scott W. Brady announced today.
Between February 2015 and February 2017, Clark billed Medicare and Medicaid for medically unreasonable and unnecessary office visits and procedures and falsified records to support the billings. The settlement follows Clark’s earlier guilty plea and sentencing on related criminal charges.
Assistant United States Attorney Rachael L. Mamula handled the investigation that led to this civil settlement on behalf of the United States.
United States Attorney Brady commended the Drug Enforcement Administration, the Department of Health and Human Services, Office of Inspector General, and the Federal Bureau of Investigation for conducting the investigation.
Allentown Man Pleads Guilty to Heroin Distribution ChargeRead the Press Release
JOHNSTOWN, Pa. – A Lehigh County resident pleaded guilty in federal court in Johnstown to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Clayton D. Dudley, 31 of Allentown, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on May 30, 2017, Dudley distributed less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Oct. 31, 2018, at 1:00 p.m. The law provides for a maximum sentence of 20 years in prison and a fine of $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 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 Dudley.
Newark Man Conspired to Possess and Distribute HeroinRead the Press Release
PITTSBURGH, PA - A resident of Newark, New Jersey, pleaded guilty in federal court to charges of conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin, United States Attorney Scott W. Brady announced today.
Shawn Robinson, age 36, pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Robinson conspired with other individuals to possess with intent to distribute, and possessed with intent to distribute over 100 grams of heroin.
The Court was further advised that on October 14, 2015, one of Robinson’s co-conspirators made arrangements to sell 100 bricks of heroin for $14,500 to another individual. Robinson’s co-conspirator also agreed to advance an additional 50 bricks of heroin. Robinson and another of his co-conspirators arrived at the Hyatt Place in Robinson Township to deliver the heroin. When they arrived, Robinson was carrying a black plastic shopping bag. Inside of the shopping bag, officers recovered a clear plastic vacuum-sealed bag containing 150 bricks of heroin, weighing 185.92g.
Judge Bissoon scheduled sentencing for November 6, 2018. The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, 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.
Pending sentencing, the court ordered that Robinson remain detained.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Robinson.
Munhall Drug Dealer Guilty of Trafficking Deadly FentanylRead the Press Release
PITTSBURGH – William Harvey Scott, Jr., aka "PacMan", pleaded guilty in federal court to multiple charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Scott, age 27, formerly of Munhall, Pennsylvania, pleaded guilty to three felony counts before United States District Judge Cathy Bissoon.
The court was advised that Scott sold the manmade opiate fentanyl, in stamp bags marked "LIZZ" to a female on July 13, 2016 and that this woman died as a result. Law enforcement located the victim’s cellphone and determined that she had been purchasing drugs from a person she labelled as "Chris Man." Law enforcement used the victim’s phone to text "Chris Man" and asked him to meet and sell more of the drugs. When Scott appeared at the prearranged location, he was found to possess more stamp bags of fentanyl marked "LIZZ".
During his guilty plea, the defendant specifically admitted to selling the fentanyl and to causing the July 2016 death of the young woman. During the guilty plea hearing, the defendant specifically agreed to pay restitution to the victim’s family.
Judge Bissoon scheduled sentencing for October 22, 2018, at 10 a.m. The defendant was remanded to jail, pending his sentencing hearing.
Defendants charged with these types of felony drug offenses face a maximum sentence of 20 years in prison and at least six years of supervision by the United States Probation Office. The actual sentence imposed will be based upon information that includes the defendant’s criminal, family, educational and work histories.
Assistant United States Attorney Ross E. Lenhardt, a federal prosecutor with the Violent Crime and Major Crime Sections of the U.S. Attorney’s Office, is prosecuting this case on behalf of the government.
Special Agents and Task Force Officers from the Drug Enforcement Administration, and law enforcement officers from the Duquesne Police Department, Homestead Police Department, and Allegheny County Sheriff’s Office, conducted the investigation that led to the prosecution of the defendant.
United States Attorney Brady noted that 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, state, and local agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Butler Woman Charged with Wrongfully Obtaining and Disclosing Health Information of OthersRead the Press Release
PITTSBURGH, PA - A Butler County woman has been indicted by a federal grand jury in Pittsburgh on charges of both wrongfully obtaining and disclosing the health information of another individual, United States Attorney Scott W. Brady announced today.
The six-count indictment, returned on June 28, named Linda Sue Kalina, 61, of Butler, Pennsylvania.
According to the indictment presented to the court, Kalina, while employed as a Patient Information Coordinator by the University of Pittsburgh Medical Center, and then by the Allegheny Health Network, wrongfully obtained health information, in violation of the Health Insurance Portability and Accountability Act (HIPAA), from March 30, 2016, through August 14, 2017, relating to 111 individual patients. The indictment also charges that on four occasions between December 30, 2016, and August 11, 2017, Kalina wrongfully disclosed the health information of three such individuals, with the intent to cause malicious harm.
The law provides for a maximum total sentence of 11 years in prison, a fine of $350,000, 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 Carolyn Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Western District of Pennsylvania Participated in Largest Health Care Fraud Enforcement Action in Department of Justice HistoryRead the Press Release
PITTSBURGH – United States Attorney Scott W. Brady today announced, as part of a nationwide health care fraud enforcement action, three Pittsburgh-area doctors were charged and two medical professionals – a doctor and a Suboxone clinic manager – pleaded guilty to unlawfully dispensing and distributing controlled substances and health care fraud. U.S. Attorney Brady’s announcement followed a national announcement by Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, of the largest ever health care fraud takedown by the Medicare Fraud Strike Force which involved 601charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings.
"Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer," said Attorney General Sessions. "In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history. This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever."
"Every single day, 91 Americans and 13 Pennsylvanians die from an opioid overdose. To attack this scourge, the U.S. Attorney’s Office is aggressively prosecuting corrupt doctors and medical professionals who unlawfully distribute painkillers and other prescription narcotics," stated U.S. Attorney Brady. "If you are a doctor who is exploiting your patients’ addiction to feed your greed, you are hereby on notice: first we will take away your livelihood and then we will take away your liberty."
"These were trusted health care professionals. They had an obligation to prescribe an appropriate amount of opioid medications and only what was necessary," said Acting Special Agent in Charge Chad Yarbrough. "Instead, they betrayed that trust and contributed to the growing opioid epidemic. The FBI wants to make it clear: dishonest medical professionals will be held accountable for their crimes."
According to U.S. Attorney Brady, the following five cases were part of the national health care fraud takedown:
1. United States v. Peter James Ridella: Dr. Peter James Ridella was charged with one count of conspiracy to unlawfully dispense and distribute oxycodone and Percocet and one count of health care fraud. Ridella conspired to create and submit unlawful prescriptions for oxycodone and Percocet, and then unlawfully dispensed over 24,000 mg of controlled substances to other persons. Ridella is also charged with health care fraud for allegedly submitting fraudulent claims to Highmark, for payments to cover the costs of the unlawfully prescribed oxycodone and Percocet.
2. United States v. Michael Cash: Dr. Michael Cash was charged with one count of unlawfully dispensing and distributing a Schedule III controlled substance, one count of conspiracy to unlawfully dispense and distribute Schedule III controlled substances, and one count of health care fraud. Cash conspired to create and submit unlawful prescriptions for buprenorphine, known as Subutex and Suboxone, and then unlawfully dispensed 32,000 doses of buprenorphine to other persons. Cash is also charged with health care fraud for allegedly submitting fraudulent claims to Medicare, for payments to cover the costs of the unlawfully prescribed buprenorphine.
3. United States v. Ruth Jones: Dr, Ruth Jones was charged with one count of unlawfully dispensing and distributing a Schedule III controlled substance, one count of conspiracy to unlawfully dispense and distribute Schedule III controlled substances, and one count of health care fraud. Jones conspired to create and submit unlawful prescriptions for buprenorphine, and then unlawfully dispensed 22,382 doses of buprenorphine to other persons. Jones is also charged with health care fraud for allegedly submitting fraudulent claims to Medicare, for payments to cover the costs of the unlawfully prescribed buprenorphine. Dr. Jones is scheduled to plead guilty on Friday, June 29, 2018, at 10:30 a.m.
4. United States v. Christopher Handa: Suboxone clinic operations manager Christopher Handa pleaded guilty today, June 28, 2018, to two counts of unlawfully dispensing and distributing a Schedule III controlled substance, one count of conspiracy to unlawfully dispense and distribute Schedule III controlled substances, and one count of health care fraud. Handa was employed by Redirections Treatment Advocates, a Suboxone clinic located in Washington, Pennsylvania. Handa and others conspired together to create and submit unlawful prescriptions for buprenorphine, and then unlawfully dispensed 18,146 doses of buprenorphine to other persons. Handa also committed health care fraud by causing fraudulent claims to be submitted to Medicaid for payments to cover the costs of the unlawfully prescribed buprenorphine.
5. United States v. Omar Almusa: Dr. Omar Almusa pleaded guilty yesterday, June 27, 2018, to one count of unlawfully dispensing and distributing Schedule II controlled substances, one count of conspiracy to unlawfully distribute Schedule II controlled substances, and one count of health care fraud. Almusa conspired to create and submit unlawful prescriptions for Vicodin, and then unlawfully dispensed 39,600 mg of Vicodin to other persons. 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.
These cases are being prosecuted by Assistant U.S. Attorney Robert S. Cessar.
Since Attorney General Sessions announced the formation of Opioid Fraud and Abuse Detection Units throughout the country in August 2017, the Western Pennsylvania
OFADU has been one of the national leaders in attacking opioid diversion by medical professionals. Following its formation, the Western Pennsylvania OFADU filed the first indictment against a doctor in the nation, and has filed charges against 15 doctors and medical professionals. Further, a total of ten DEA Registrations, which allow doctors to prescribe controlled substances, and seven doctors’ licenses to prescribe Medication Assisted Treatment have been surrendered; and five medical licenses have been suspended by the Pennsylvania Department of State.
The investigations leading to the filing of charges in these cases were conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: 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, 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 and the Pennsylvania Bureau of Licensing.
Today’s national enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, and State Medicaid Fraud Control Units.
A complaint, Information, or Indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The filing of an Information generally indicates that the defendant intends to enter a guilty plea.
Varicose Vein Treatment Company Agrees to Pay $1,205,000 to Resolve False Claims Act AllegationsRead the Press Release
PITTSBURGH – Circulatory Centers of America, LLC, a Pennsylvania company that provided treatments for varicose veins in several states, together with related subsidiaries, its former owner and chief executive officer Thomas E. Certo, president David Gilpatrick, chief financial officer Everett Burns, and medical director Dr. Louis Certo, M.D., (collectively "Defendants"), agreed to pay the United States $1,205,000.00 to settle False Claims Act allegations, United States Attorney Scott W. Brady announced today.
The settlement resolves allegations in a whistleblower lawsuit filed in federal court in Pittsburgh, Pennsylvania. The United States contended that Defendants submitted claims to the Medicare program to receive reimbursement for services purportedly performed by non-physicians "incident to" the supervision of a physician when, in fact, no physician was present in the office. Billing services as "incident to" a physician’s supervision commands a higher reimbursement rate than billing those same services without physician supervision. The Complaint also alleged that Defendants submitted claims to the federal government for medically unnecessary and unreasonable ultrasound services performed by technicians who did not have the requisite license, certification, and/or training; and ultrasound services that were not actually provided.
"Inflating the cost of healthcare services defrauds taxpayers and depletes the limited funds available to provide medical care to deserving patients," said U.S. Attorney Brady. "Today’s settlement signals our commitment to aggressively pursue entities and individuals who attempt to cheat American taxpayers."
This matter was investigated by the Office of Inspector General of the Department of Health and Human Services and the Federal Bureau of Investigation. Assistant United States Attorneys Colin J. Callahan, Rachael L. Mamula and Jill L. Locnikar handled this matter on behalf of the United States.
This case is captioned United States ex rel. Paul Shields, et al. v. Circulatory Centers of America, LLC, et al., Civil Action No. 15-cv-229 (W.D. Pa.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
North Versailles Man Sentenced to Prison for Violating Drug and Firearms LawsRead the Press Release
PITTSBURGH, Pa. – A resident of North Versailles, Pennsylvania, has been sentenced in federal court to 13 months incarceration and three years supervised release on his conviction of conspiracy to possess and distribute oxycodone, an opiate, and violating federal firearms laws, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence yesterday on John Zurick, 41, of 506 Porter Street.
According to information presented to the court, Zurick participated in a criminal network of drug dealers that obtained opiate pain killers and then illegally distributed them to users in the Pittsburgh area. Zurick helped transport Antoinette Adair, one of the key dealers in the criminal network, to buy and sell opiate pills. While transporting Adair, Zurick was armed with a firearm, in violation of federal law.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Office of the Attorney General, the Pittsburgh Bureau of Police, and the Allegheny County Police Department for the investigation leading to the successful prosecution of Zurick.
Judge Sentences New York Man to 10 Years in Prison for Illegally Possessing Guns and HeroinRead the Press Release
PITTSBURGH, PA – A former resident of Brooklyn, New York, has been sentenced in federal court to 10 years of imprisonment and eight years of supervised release on his convictions for conspiracy to distribute 100 grams or more of heroin and for possession of a firearm by a convicted felon, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Nashawn Williams, 35, currently incarcerated, but who last resided in Brooklyn, New York.
According to information presented to the court, Williams acted as a supplier in a drug trafficking organization that distributed heroin in Pittsburgh. Upon execution of a search warrant, agents found Williams to be in possession of over 100 grams of heroin and firearms. Federal law prohibits felons from possessing firearms, and Williams has a prior felony conviction for conspiracy to distribute 50 grams or more of cocaine. He was also on supervised release for the prior offense at the time of the current offense.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration for the investigation leading to the successful prosecution of Williams.
Colorado Power Company Executive Sentenced to Prison, Fined, Ordered to Pay Restitution for Defrauding the Department of EnergyRead the Press Release
PITTSBURGH, PA - A Colorado power company executive has been sentenced in federal court to 18 months’ imprisonment, three years supervised release, a $50,000 fine and $2 million dollars in restitution on his conviction of filing a false claim against the United States Department of Energy, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Joy Flowers Conti imposed sentence yesterday on Michael J. Ruffatto, 72, of Englewood, CO.
In connection with the sentencing, the court was advised that on December 8, 2009, the Department of Energy’s National Energy Technology Laboratory, located in Pittsburgh, Pennsylvania, awarded a multi-million dollar cooperative agreement to North American Power Group Ltd. (NAPG), a corporation headquartered in Denver, Colorado, that is owned and controlled by Ruffatto, an attorney and graduate of Stanford University.
The purpose of the agreement was to study the carbon sequestration potential of an 880-acre site in Campbell County, Wyoming. The agreement required NAPG to conduct seismic studies and to drill wells necessary for the studies. Instead of performing the work required under the cooperative agreement, Ruffatto fraudulently transferred millions of dollars of award monies into his personal bank account and used the award monies to fund an extravagant lifestyle. Ruffatto secretly filtered millions of dollars of award monies through Ruffatto’s wholly owned subsidiary, North American Land and Livestock, LLC, while falsely representing to the Department of Energy that the subsidiary was doing work on the project.
At Ruffatto’ s direction, NAPG submitted twelve invoices to the Department of Energy that were false and fraudulent, resulting in the wrongful payment of over $5,700,000 in award monies as a result of the fraud. As part of the terms of the plea agreement, Ruffatto accepted responsibility for all twelve false claims filed with the Department of Energy and agreed to make full restitution of over 2 million dollars currently owed as restitution to the Department of Energy. Ruffatto has already paid $3.7 million to the government toward his restitution.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Department of Energy, Office of Inspector General, for the investigation leading to the conviction in this case.
Beaver County Man Pleads Guilty to Distributing Fentanyl that Caused a Fatal OverdoseRead the Press Release
PITTSBURGH - A resident of Hopewell Township, PA, pleaded guilty in federal court to one count of distribution of fentanyl, which he acknowledged caused the death of a victim identified as L.K., United States Attorney Scott W. Brady announced today.
Corey Bargerstock, age 43, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that on July 6, 2016, Bargerstock sold stamp bags of fentanyl to L.K., which caused L.K. to fatally overdose.
Judge Fischer scheduled sentencing for November 16, 2018, at 11 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine not to exceed 1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense/offensesoffense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorneys Tonya Sulia Goodman and Timothy Lanni are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Beaver County District Attorney’s Office, Detectives Bureau, and the Hopewell Township Police Department conducted the investigation that led to the prosecution of Bargerstock.
New Castle Man Conspired to Distribute Crack CocaineRead the Press Release
PITTSBURGH - A resident of New Castle, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy to distribute 28 grams or more of crack cocaine, United States Attorney Scott W. Brady announced today.
Waverly Primm, age 30, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that in 2015, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, and other agencies joined forces in a long-term wiretap investigation of drug trafficking in New Castle. The investigation revealed that Primm conspired with others to distribute crack cocaine, which was transported from Buffalo, NY, to the New Castle area for further distribution.
Judge Fischer scheduled sentencing for November 20, 2018 at 1 p.m. The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $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 of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the New Castle Police Department, and the Lawrence County Drug Task Force conducted the investigation that led to the prosecution of Primm.
Federal Inmate Sentenced to Another Year in Prison for Illegally Possessing BuprenorphineRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., pleaded guilty in federal court in Johnstown to a charge of possession of a prohibited object in prison, and was sentenced to one year and one day in prison, consecutive to the current prison term he is serving, followed by three years’ supervised release, United States Attorney Scott W. Brady announced today.
Alexander Rodriguez-Melendez, 30, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on May 12, 2017, Rodriguez-Melendez possessed a quantity of Buprenorphine.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, for the investigation leading to the successful prosecution of Rodriguez-Melendez.
North Versailles Man Sentenced to Prison for Conspiring to Distribute Fentanyl and CocaineRead the Press Release
PITTSBURGH, PA. - A resident of North Versailles, Pennsylvania, has been sentenced in federal court to 51 months’ imprisonment, followed by six years’ supervised release, on his conviction of conspiring to distribute narcotics, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Dawndre Bivins, age 30.
According to information presented to the court at the time he entered a guilty plea, Bivins, as frequently as twice per month, purchased four to five grams of fentanyl, commonly known as "bricks", and two ounces of cocaine from his codefendant, Skyler Carter, for further distribution in the Clairton, Pennsylvania, area. The court found Bivens to be responsible for the total distribution of 1.9 kilograms of cocaine and 40 grams of fentanyl. He is the third of 21 defendants charged in the conspiracy to be sentenced. Bivins had a previous conviction for a felony drug trafficking offense, and as such, was subject to enhanced penalties.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. 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.
Irwin Man Sentenced to 5 Years in Prison for Collecting and Trading Child Porn VideosRead the Press Release
PITTSBURGH, PA. – A resident of Westmoreland County, Pennsylvania, has been sentenced in federal court to a term of imprisonment of 60 months to be followed by five 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.
Chief United States District Judge Joy Flowers Conti imposed the sentence yesterday on Jeffrey John Valenta, age 57, formerly of Irwin, Pennsylvania.
According to the information presented to the court, in November 2010, the Pennsylvania State Police were conducting an undercover investigation into the internet sharing of child pornography. In connection with the investigation, the state police obtained evidence that led to Valenta’s home. Troopers executed a search warrant at the residence of Valenta on January 6, 2011. He admitted to collecting and trading child pornography. A forensic review of Valenta’s computer revealed 33 video files depicting child pornography.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
Bridgeville Suboxone Clinic Owner Pleads Guilty to Filing False Tax ReturnsRead the Press Release
PITTSBURGH, PA - A resident of Washington County, Pennsylvania, pleaded guilty in federal court to charges of false income tax returns, United States Attorney Scott W. Brady announced today.
Allan W. Clark, M.D. pleaded guilty to three counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Clark was the owner and operator of the South Hills Recovery Project (SHRP), a strictly cash based suboxone clinic located in Bridgeville, Pa. A patient’s first visit fee during the relevant times was $250. The follow up monthly visits were $150. Over the course of 2011, 2012 and 2013, Clark hired approximately 11 different doctors to work part time at SHRP to assist him in handling the follow up visits. Of the $150 collected from the patient for the follow up visit, the 11 doctors were paid approximately half, or $75, and SHRP kept the other $75. Clark did not report all of the cash collected, and used some of it for personal expenses such as improvements on his home.
Judge Schwab scheduled sentencing for November 13, 2018. The law provides for a maximum total sentence per count of three 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 Nelson P. Cohen is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigations conducted the investigation leading to the information filed in this case.
Johnstown Man Stopped in Butler County Had Illegal Loaded Handgun, Heroin and Crack CocaineRead the Press Release
PITTSBURGH, Pa. – A Cambria County resident pleaded guilty in federal court to charges of possession of a firearm and ammunition by a felon, carrying a firearm during and in relation to a drug trafficking crime and possession with intent to distribute heroin and crack cocaine, United States Attorney Scott W. Brady announced today.
Andrew Edwards, age 32, of Johnstown, Pennsylvania, pleaded guilty to three counts before Senior United States Circuit Court Judge D. Michael Fisher.
In connection with the guilty plea, the court was advised that on April 11, 2016, Edwards was a passenger in a vehicle stopped for traffic violations in Middlesex Township, Butler County. The driver gave the officer permission to search the vehicle. In the backseat of the vehicle, where Edwards had been seated, officers observed a jacket and a backpack. From the jacket, officers recovered 528 bags of heroin, and a plastic baggie containing crack cocaine. From the backpack, officers recovered a Springfield XD 45 caliber semi-automatic handgun with six rounds in the magazine. Personal items including a towel, hairbrush and a toothbrush were also in the backpack. The FBI laboratory determined that there was support for the inclusion of Edwards as a contributor to the DNA found on the toothbrush.
Judge Fisher scheduled sentencing for November 9, 2018. The law provides for a maximum total sentence of not less than five years and up to life in prison, a fine of $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 of the defendant. Pending sentencing, the court ordered Edwards to 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 Middlesex Township Police Department conducted the investigation leading to the indictment in this case.