Western District of Pennsylvania
Press releases recorded for this federal judicial district.
New Castle Man Pleads Guilty in Lawrence and Mercer County Robbery SpreeRead the Press Release
PITTSBURGH – A former resident of New Castle, Pennsylvania, pleaded guilty in federal court to robbery charges, United States Attorney Scott W. Brady announced today.
Eric Barbati, age 32, pleaded guilty to four counts of Hobbs Act robbery and two counts of bank robbery before United States District Judge David Cercone.
In connection with the guilty plea, the court was advised that Eric Barbati robbed four convenience stores and two banks over a three-week period across Lawrence County, PA. Barbati committed the following convenience store robberies:
- August 26, 2017 – BFS Foods Convenience Store, New Castle, PA
- August 31, 2017 – Red Apple Convenience Store, New Castle, PA
- September 4, 2017 – Market 24 Convenience Store, New Castle, PA
- September 17, 2017 – Market 24 Convenience Store, New Castle, PA
In each robbery, Barbati approached the teller at the store while holding a Mountain Dew bottle. When the teller went to give Barbati change for his purchase, Barbati would forcefully take money from the drawer or the entire cash drawer and flee from the store.
Barbati also robbed the PNC Bank in Hermitage, PA on September 5, 2017 and the Huntington Bank in New Wilmington, PA on September 11, 2017. At the PNC Bank robbery, Barbati approached the teller and stated, "This is a robbery, place all your money on the counter," and then received approximately $2,702 in U.S. currency before fleeing the bank. At the Huntington Bank robbery, Barbati passed a note to the teller stating, "This is a robbery, put all your money on the counter," then received approximately $1,641 in U.S. currency before fleeing the bank.
Judge Cercone scheduled sentencing for July 23, 2018. The law provides for a maximum sentence of up to 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior record, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Hermitage Police Department, the New Wilmington Borough Police Department, the New Castle Police Department, and the Neshannock Township Police Department conducted the investigation leading to the guilty plea in this case.
Convicted Felon Indicted for Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The four-count indictment, returned on January 16 and unsealed yesterday, named Tohn Robinson, aka "Tizzy," age 36, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment, on August 22, 2016 and again on August 23, 2016, Robinson distributed and possessed with intent to distribute fentanyl, a Schedule II controlled substance, resulting in serious bodily injury to the users of the fentanyl. In addition, on August 29, 2016, Robinson possessed with intent to distribute quantities of fentanyl and heroin. Further, the indictment charges that on or about April 3, 2016, Robinson, a convicted felon, was in possession of a firearm and ammunition. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
For the drug distribution resulting in serious bodily injury, the law provides for a maximum total sentence of not less than 20 years and up to life in prison, a fine of $1,000,000, or both. For the firearms offense, the law provides for a maximum total sentence 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Caitlin A. Loughran is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Penn Hills Police Department and the Monroeville 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.
Erie Man Sentenced to 5 Years in Prison in Tax Refund Fraud CaseRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 60 months in jail and ordered to pay $62,653.00 in restitution on his conviction of conspiracy to defraud the government with respect to claims and aggravated identify theft, United States Attorney Scott W. Brady announced today. The 60 month sentence is consecutive to Johnson’s 120 month sentence he received on October 8, 2013 for a federal firearm conviction.
United States District Judge David S. Cercone imposed the sentence on James Lamont Johnson, 52.
According to information presented to the court, Johnson engaged in a conspiracy to defraud the United States by submitting false claims for income tax refunds using individuals’ identification information which was unlawfully obtained. Johnson stole the identities of 56 individuals who were clients of the Community of Caring, a non-profit social service agency in Erie, where he had access to the clients’ personal identification information. Johnson utilized TurboTax and filed approximately 71 tax returns, seeking refunds from the IRS of more than $100,000.00. Johnson and his co-conspirator inputted the stolen identity information and used wage information from W-2 forms taken from actual employees of local businesses to perpetrate the fraudulent tax refund scheme. The scheme to defraud successfully obtained more than $60,000.00 in tax refunds. The refunds came in the form of prepaid debit cards and U.S. Treasury checks, which were mailed to addresses where Johnson could access the mail and retrieve the refunds.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
United States Attorney Brady commended the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Johnson.
Cocaine and Meth Trafficker Extradited from Mexico Sentenced to 15 Years in PrisonRead the Press Release
ERIE, Pa. - A former resident of Mexico has been sentenced in federal court to 180 months in jail on his conviction of violating federal drug laws, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Ignacio Montes Leon, 37.
According to information presented to the court, from June 2013 through February 2015, Leon engaged in a conspiracy with 18 co-defendants to distribute and possess with intent to distribute between 50 and 150 kilograms of cocaine, and more than 100 grams of 99% pure methamphetamine. According to information provided to the court, Montes Leon was the local leader of a drug trafficking organization involved in importing cocaine and methamphetamine from Mexico into Texas, which was then transported to Erie, Pennsylvania and elsewhere in hidden compartments in vehicles. Montes Leon was responsible for coordinating the drug shipments with higher-level conspirators in Texas, was directly selling pure methamphetamine to individuals in Erie on multiple occasions, and was responsible for distributing multi-kilogram quantities of cocaine at a time to his co-conspirators. In December 2013, law enforcement officers seized four kilograms of cocaine in Erie, Pennsylvania connected to Montes Leon. According to information provided to the Court, on November 1, 2014, after Montes Leon traveled to Texas to coordinate another drug shipment, two of his drug couriers were transporting the cocaine when they were stopped by the Arkansas State Police while traveling east near milepost 253 on Interstate 40. Montes Leon arranged for those couriers to travel to the Houston, Texas area to pick up a load of cocaine destined for delivery to Erie and elsewhere. The Court was further advised that a search warrant was executed on the vehicle and that individually wrapped packages of cocaine were located in a hidden compartment in the vehicle. The packages were discovered to contain more than five kilograms of cocaine. Montes Leon then fled into Mexico. Law enforcement officers located Montes Leon in Mexico, and he was arrested and extradited back into the United States to face prosecution in Erie.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
United States Attorney Brady commended the U.S. Immigration and Customs Enforcement/Homeland Security Investigations; the Drug Enforcement Administration; the Pennsylvania State Police; U.S. Border Patrol; the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section; the U.S. Postal Inspection Service; the U.S. Marshals Service; the Bureau of Alcohol Tobacco Firearms and Explosives; and the Arkansas State Police for the investigation leading to the successful prosecution of Leon.
Pittsburgh Man Passed Counterfeit $100 Bills at Western Pennsylvania Target StoresRead the Press Release
PITTSBURGH – A resident of Pittsburgh pleaded guilty in federal court to charges of passing and uttering counterfeit money, United States Attorney Scott W. Brady announced today.
Peter A. Maiolo, Jr., 42, of Pittsburgh, PA pleaded guilty to three counts before United States District Judge Cathy Bissoon
In connection with the guilty plea, the court was advised that on or about July 6, 2015, July 10, 2015, August 2, 2015, August 18, 2015, August 22, 2015, August 25, 2015, August 30, 2015, and September 7, 2015, Maiolo passed counterfeit $100 Federal Reserve Notes at Target in the Western District of Pennsylvania.
Judge Bissoon scheduled sentencing for June 6, 2018 at 10 a.m. The law provides for a maximum total sentence of 60 years in prison, a fine of $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Maiolo.
Judge Sentences Armed Heroin Dealer to 6 Years in Federal PrisonRead the Press Release
PITTSBURGH – A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to federal narcotics and firearms charges and was then sentenced, United States Attorney Scott W. Brady announced today.
Ismael Felix, age 41, pleaded guilty to one count of possession with intent to distribute heroin and one count of possession of a firearm by a convicted felon before United States District Judge David Cercone. Shortly after Judge Cercone accepted Felix’s plea, he also sentenced him to a term of imprisonment of 76 months and a term of supervised release of six years.
In connection with the guilty plea, the court was advised that on August 8, 2017, FBI Special Agents and Task Force Officers executed a search warrant at Felix’s apartment in Pittsburgh. While inside, agents discovered Felix in his living room with approximately 12 bricks of heroin and a loaded firearm. Felix subsequently confessed to possessing the heroin as well as to being a heroin trafficker. FBI Agents also seized over $80,000 in cash from Felix’s apartment and his home. In connection with his guilty plea and sentence, Felix agreed to forfeit the cash and the firearm.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation leading to guilty plea in this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sherriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, West Mifflin Police Department, and Pennsylvania Attorney General’s Office.
Harrisburg Consultant Pleads Guilty to Defrauding Financial Services CompanyRead the Press Release
PITTSBURGH - A Pennsylvania resident pleaded guilty in federal court to charges of wire fraud and damaging a computer, United States Attorney Scott W. Brady announced today.
William Simon Sullivan, Jr., 44, of Harrisburg, Pennsylvania, pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Sullivan worked as a consultant for Triangle Benefits Services, Inc. (TBS), a Pennsylvania corporation that provides clients with various financial services including payroll and tax escrow processing services. From January 12, 2013, and continuing to January 24, 2014, Sullivan executed a scheme to defraud TBS and its clients. Using his position as a consultant to TBS and his remote access to TBS’s computer network, Sullivan fraudulently altered TBS’s daily computer files and caused over $374,000 to be transferred via wire transfers from bank accounts of TBS and its clients to Sullivan’s personal bank accounts, without the knowledge, approval or authorization of TBS or its clients.
Judge Bissoon scheduled sentencing for June 6, 2018. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of William Simon Sullivan, Jr.
Westmoreland County Woman Sentenced to Probation for Defrauding Victoria’s SecretRead the Press Release
PITTSBURGH – A Westmoreland County resident has been sentenced in federal court on her conviction of mail fraud, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Charlene D. Moff, 60, of New Derry, PA. Moff received a sentence of two years probation and was ordered to pay approximately $30,169.56 in restitution.
According to information presented to the court, from September 2013 to March 2016, Moff fraudulently ordered merchandise from Victoria’s Secret using her or her husband’s online account. After the items were delivered, she would call customer service and falsely represent one of the following: that she did not receive the shipment of merchandise, the shipment was missing certain items, or some of the merchandise was incorrect or damaged. She would then receive a credit to her account or a re-shipment of merchandise.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Moff.
Westmoreland County Man Sentenced for Selling Deadly Heroin and FentanylRead the Press Release
PITTSBURGH - A resident of Monessen, Pennsylvania, has been sentenced in federal court to 96 months in prison on his conviction of violating federal drug laws, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence yesterday on Jalen Cameron Madison, age 24.
In connection with the guilty plea, the court was advised that from 2013 until October 26, 2016, Madison knowingly, intentionally and unlawfully conspired with persons, both known and unknown to the United States Attorney, to distribute and possess with intent to distribute a quantity of a mixture and substance containing a detectable amount of fentanyl and heroin. In addition, Madison admitted that the drugs he sold caused the August 22, 2015 death of victim John Brooks Watkins.
Judge Conti called the defendant’s actions in selling heroin and fentanyl "playing with death" and ordered that Madison be supervised by federal Probation Officers for four years after his release from the 96-month period of imprisonment.
Assistant United States Attorney Ross E. Lenhardt, a federal prosecutor in the Violent Crime section of the U.S. Attorney’s Office, prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration (DEA), the Washington County Drug Task Force, the Pennsylvania Office of the Attorney General, the Pennsylvania State Police, the Washington County District Attorney’s Office, and numerous local police departments including the Canonsburg Police Department, the Donora Police Department, the Monessen Police Department, and the Charleroi Police Department, as well as the Washington County Coroner’s Office, and the Allegheny County Medical Examiner’s Office, for the investigation leading to the successful prosecution of Madison.
New Castle Man Admits Traveling for Sex with a MinorRead the Press Release
PITTSBURGH - A Lawrence County resident pleaded guilty in federal court to a charge of travel with intent to engage in illicit sexual conduct, United States Attorney Scott W. Brady announced today.
Bradley Richard Moore, 44, of New Castle, Pennsylvania, pleaded guilty before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Moore posted an ad on Craigslist seeking to "participate in real incest." A Special Agent of the Office of the Pennsylvania Attorney General working in an undercover capacity posed as an adult male and responded to this advertisement. During communications with the advertisement’s poster, the undercover agent stated that he was a father of a 12-year-old boy who would be open to a sexual relationship with the poster. On October 14, 2017, Moore knowingly traveled from Ohio to Cranberry, Twp., Pennsylvania, for the purpose of engaging in illicit sexual conduct with the child.
United States District Judge Schwab scheduled sentencing June 13, 2018, at 9 a.m. The law provides for a maximum total sentence of 30 years imprisonment, a fine of $250,000.00, a term of lifetime supervised release, or any or all. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Office of the Pennsylvania Attorney General conducted the investigation that led to the prosecution of Moore.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Judge Sentences Getaway Driver in Attempted Robbery to 5 Years in PrisonRead the Press Release
PITTSBURGH - A Western Pennsylvania resident has been sentenced in federal court to 62 months imprisonment, which includes 20 months already served, and five years supervised release, on his convictions for attempted robbery and brandishing a firearm during a crime of violence, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence yesterday on Raymond Denson, 38, of Trafford, Pennsylvania.
According to information presented to the court, on April 27, 2016, Denson and his codefendants, David Lipinski and Anthony Bailey, attempted to rob a van making a delivery of pharmaceutical drugs to the Giant Eagle in Gibsonia. Denson was the getaway driver. A firearm was brandished by Lipinski while he and Bailey tried unsuccessfully to force the driver back into the van. Denson and the others then aborted the robbery attempt.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Firearms, Tobacco ahd Explosives and the Northern Regional Police Department for the investigation leading to the conviction of Denson. The case is 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. The efforts of PSN led to the successful prosecution of Denson.
Justice Department Coordinates Nationwide Elder Fraud Sweep of More Than 250 DefendantsRead the Press Release
WASHINGTON – Attorney General Jeff Sessions and law enforcement partners announced today the largest coordinated sweep of elder fraud cases in history. The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.
Attorney General Sessions was joined in the announcement by FBI Acting Deputy Director David Bowdich; Chief Postal Inspector Guy Cottrell; FTC Acting Chairman Maureen Ohlhausen; and Kansas Attorney General and President of the National Association of Attorneys General Derek Schmidt.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim. The schemes charged in these cases caused losses to more than a million victims.
“Winners. That’s what so many of the people who received these solicitations in the mail thought they were. But they’re not. They are victims of scams that Postal Inspectors have seen and investigated for decades. In fact, some of the same operators we encountered 20 years ago are back. But so are we. Yesterday, Postal Inspectors around the country executed search warrants on 14 locations that some of these same operators used to run their scams. We’re letting the American public know – and especially our vulnerable older Americans – that Postal Inspectors are working hard to protect them and ensure their confidence in the U.S. Mail,” said Chief Postal Inspector Cottrell.
“Over the last year, the FBI has initiated more than 200 financial crimes cases involving elderly victims who were devastated financially, emotionally, mentally and physically. Picking up the pieces of these fraud schemes can be equally as traumatizing for the caregivers of these elderly victims,” said Acting Deputy Director Bowdich. “The FBI reminds seniors and their caregivers to be vigilant. If any person believes they are the victim of, or have knowledge of fraud involving an elderly person, regardless of the loss amount, they should report it to the FBI.”
United States Attorney Scott W. Brady of the Western District of Pennsylvania added, “Financial exploitation of the elderly often has devastating effects, including depleted life savings, lost homes and personal emotional harm, for people who worked hard and played by the rules all of their lives. In many cases, the fraud is perpetrated by someone the senior knows and trusts. If you suspect you may be the target or victim of a financial scam, please contact law enforcement right away. We are committed to doing everything in our power to keep seniors in Western Pennsylvania safe from criminals who would exploit them, and will investigate and prosecute them to the fullest extent of the law.”
U.S. Attorney Brady pointed to two recent prosecutions in which individuals in Western Pennsylvania who targeted seniors were held accountable for their actions.
In October, Keith A. Bassi pleaded guilty to three counts of mail. Beginning in 2013, Bassi, a licensed attorney, misappropriated for personal use approximately $505,000.00 in funds belonging to the estate of an elderly person diagnosed with dementia. Bassi held a power of attorney for the victim, and then engaged in a series of financial transactions in which he diverted the victim’s assets into bank accounts he created and controlled. In one instance, Bassi made insurance premium payments using the victim’s funds on a whole life policy purchased in the name of someone other than the victim, and then later cancelled the policy and kept the surrendered cash proceeds for himself. He also used the victim’s estate funds to operate a publishing company he owned. Sentencing is scheduled for March 14, 2018.
In January, John F. Hogan was sentenced to 10 years in prison followed by three years of supervised release on his conviction of mail fraud. Hogan, formerly a licensed insurance agent in Swissvale, Pennsylvania, defrauded clients out of approximately $8.2 million dollars in a Ponzi scheme. He persuaded his clients to invest in an illusory ‘Promissory Note’ investment program in which Hogan promised to invest their funds and earn sizeable interest rate returns for his clients. Instead, Hogan used the funds to maintain real estate holdings and office expenses. Victims of Hogan’s fraud testified that they were advised by Hogan to open whole life insurance policies, and then to borrow money against cash values to invest with him.
Actions against the Mass-mailing Fraud Industry
As part of the initiative, the Department’s Consumer Protection Branch, working with the U.S. Attorney’s Office for the Eastern District of New York and others, brought numerous cases this past week in a coordinated strike against more than 43 mass-mailing fraud operators, including criminal charges against six individuals. In addition, law enforcement agents executed 14 premises search warrants from Las Vegas to south Florida, served numerous asset seizure warrants, and coordinated with the Vancouver Police in Canada, who executed over 20 warrants, including search warrants on business premises.
“The defendants targeted elderly and vulnerable consumers both in the United States and abroad, using U.S. addresses and the U.S. mails to try to legitimize their fraudulent schemes,” said U.S. Attorney for the Eastern District of New York Richard P. Donoghue. “They sold false promises of life-changing prizes that never came true. We will pursue the perpetrators of these mail schemes wherever they are located, and hold them accountable.”
These recently filed cases particularly targeted transnational criminal actors who collectively defrauded at least a million victims out of hundreds of millions of dollars. Indeed, just one of the schemes prosecuted criminally by the Consumer Protection Branch operated from 14 foreign countries to cost American victims more than $30 million. Click here for map showing a transnational, single fraud scheme.
Mass-mailing fraud inflicts hundreds of millions of dollars in losses to elderly U.S. victims each year. Department prosecutors and U.S. Postal Inspectors have taken a comprehensive approach to combatting this fraud, disrupting and prosecuting individuals who manage the schemes, artists who draft the fraudulent solicitations, list brokers who supply victim lists, and individuals who collect victim payments. Click here for fact-sheet with cases on mass-mailing fraud.
Actions against other elder fraud schemes
Prosecutors across the country from the Criminal Division’s Fraud Section, the Consumer Protection Branch and the U.S. Attorney’s Offices have heeded the call to focus resources on elder fraud cases. Over 50 U.S. Attorney’s Offices and Department Components filed elder fraud cases in the last year. Some examples of the elder financial exploitation prosecuted by the Department include:
- “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
- “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
- “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
- “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
- “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.
Many of these cases illustrate how an elderly American can lose his or her life savings to a duplicitous relative, guardian, or stranger who gains the victim’s trust. The devastating effects these cases have on victims and their families, both financially and psychologically, make prosecuting elder fraud a key Department priority.
Public Education
The Department has partnered with Senior Corps, a national service program administered by the federal agency the Corporation for National and Community Service, to educate seniors and prevent further victimization. The Senior Corps program engages more than 245,000 older adults in intensive service each year, who in turn, serve more than 840,000 additional seniors, including 332,000 veterans.
Using its vast network operating in more than 30,000 locations, Senior Corps volunteers will communicate about elder fraud to potential victims across the country and will use their skills, knowledge and experience to educate their peers and caregivers about the most prolific types of schemes and how to avoid them.
Coordination with state officials
Kansas Attorney General Schmidt highlighted the cases filed by state Attorneys General targeting elder frauds within in the sweep period, and he emphasized efforts at the state level to combat elder abuse and protect seniors from fraud and exploitation. He encouraged all of the state Attorneys General to devote enforcement and public education resources to preventing financial exploitation of senior citizens.
Coordination with foreign law enforcement
Exceptional assistance from foreign law enforcement partners amplified the effectiveness of the Department’s initiative. The sweep announced today benefited greatly from the work of the International Mass-Marketing Fraud Working Group (IMMFWG), a network of civil and criminal law enforcement agencies from Australia, Belgium, Canada, Europol, the Netherlands, Nigeria, Norway, Spain, the United Kingdom and the United States. The IMMFWG is co-chaired by the U.S. Department of Justice and FTC, and law enforcement in the United Kingdom, and serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude for the outstanding efforts of the working group, including law enforcement action taken as part of the sweep by the Vancouver Police Department in Canada to halt mass mailing schemes that defrauded hundreds of thousands of elderly victims worldwide.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Greensburg Drug Lab Owner and Kentucky Psychiatrist Charged in Kickbacks for Referrals SchemeRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pa., and a resident of Louisville, Ky., were indicted by a federal grand jury in Pittsburgh on a charge of conspiracy, United States Attorney Scott W. Brady announced today.
The indictment, returned on February 21, named William J. Hughes, 70, of Pittsburgh, Pa., and Dr. Varanise C. Booker, 62, of Louisville, Ky.
According to the indictment presented to the court, Universal Oral Fluid Labs (UOFL) was a clinical drug testing and drug screening lab located in Greensburg, Pa. William J. Hughes was the owner and operator of UOFL. Dr. Varanise C. Booker was a Kentucky licensed physician in the area of psychiatry, who owned and operated Family and Children Behavioral Health Services, in Louisville, Ky.
Both Dr. Booker and UOFL were enrolled providers in the Medicare program and the Kentucky Medicaid program. As a condition of becoming a Medicare and/or Medicaid provider and being authorized to bill Medicare and/or Medicaid, Dr. Booker and UOFL were required to certify on their enrollment applications, Medicare Form 885B, that they would comply with all applicable federal and state laws, regulations, policies, procedures, and program requirements.
UOFL billed, and was paid by, Medicare and KentuckyMedicaid for performing drug tests and related services for Medicare and Medicaid beneficiaries who were referred to UOFL by physicians enrolled in the program, including Dr. Booker. UOFL also billed, and was paid by, various private health care insurance companies in the business of providing health care insurance to individuals and entities under various insurance policies, pursuant to which the private insurers paid UOFL for drug tests and related services performed for insureds who had been referred to UOFL by physicians.
From in or around October, 2011, and continuing thereafter until at least August, 2013, Dr. Booker conspired with Mr. Hughes and others to commit offenses against the United States, that is, to solicit and receive remuneration, directly and indirectly, overtly and covertly, in cash and in kind, namely kickbacks, from Mr. Hughes and UOFL in return for referring patients to UOFL for the furnishing and arranging for the furnishing of items and services, that is, 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).
Dr. Booker received cash payments from Mr. Hughes and UOFL in exchange for referring Medicare and Medicaid patients to UOFL. Likewise, Dr. Booker received monthly checks from Mr. Hughes/UOFL in exchange for referrals, including Medicare and Medicaid referrals. Mr. Hughes and Dr. Booker also agreed on the value of the "kickbacks" that Mr. Hughes/UOFL would pay Dr. Booker for each referral of lab work sent to UOFL by Dr. Booker. Specifically, the monthly "kickback" checks Mr. Hughes paid to Dr. Booker were paid pursuant to the terms of a "Joint Venture Agreement" that Dr. Booker entered into with Mr. Hughes/UOFL. Under this "Joint Venture Agreement," Dr. Booker referred her patients, including Medicare and Medicaid beneficiaries, to UOFL for saliva drug testing. Mr. Hughes/UOFL, in turn, billed third-party payors, including Medicare and Medicaid, for such tests, and then "kicked back" to Dr. Booker, for each referred patient, reimbursement amounts for the tests that exceeded the agreed upon threshold of $150.00. Dr. Booker received these "joint venture" payments from Mr. Hughes in exchange for the referrals Dr. Booker provided to UOFL, and not in exchange for the performance of any other services.
Between September, 2012 and August, 2013, Dr. Booker received $843,242.31 in "kickbacks" from Mr. Hughes/UOFL for referrals. UOFL then received millions of dollars from third party payors (including Medicare), based on Dr. Booker’s referrals.
The law provides for a maximum sentence, for each defendant, of five 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 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 Federal Bureau of Investigation, Health and Human Services Office of Inspector General, Internal Revenue Service-Criminal Investigation, and the Pennsylvania Office of Attorney General Medicaid Fraud Control Section conducted this investigation.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Turtle Creek Man Indicted for Illegally Possessing a Pistol and AmmunitionRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on Feb. 20, named Iklas Richard Davis, 36, of Turtle Creek, Pennsylvania.
According to the indictment, on or about October 13, 2017, Davis, an individual with a prior felony conviction for theft by unlawful taking or disposition, did knowingly and unlawfully possess a Ruger .45 caliber American Pistol and ammunition. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
For Davis’s offense, the law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history 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 Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the indictment in this case. 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 an accusation. A defendant is presumed innocent unless and until proven guilty.
Sex Offender Sentenced to 13 Years in Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH - A former resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 156 months imprisonment, followed by a term of lifetime supervised release, on a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Robert Roy Hegner, age 67, of Sewickley, Pennsylvania.
According to information presented to the court, on August 25, 2016, Hegner possessed images and videos in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age. Hegner was previously convicted of Indecent Assault, Endangering the Welfare of a Child, Corruption of Minors and Sexual Abuse of Children (F3) in a 1999 case and at the time of this offense was a Megan’s Law Offender.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Scott W. Brady commended the Federal Bureau of Investigation, the Allegheny County District Attorney Investigations Unit, and the Allegheny County Police Department for conducting the investigation leading to the successful prosecution of Hegner.
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.
Romanian Man Facing Fraud Charges for ATM Skimmer SchemeRead the Press Release
PITTSBURGH –A Texas resident has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to commit bank fraud, bank fraud, and aggravated identity theft, United States Attorney Scott W. Brady announced today.
The three-count indictment named Nicu Sorin Pantelica, age 28, of Houston, Texas.
According to the indictment, Pantelica, a native of Romania, participated in a conspiracy in which he and his conspirators placed skimming devices, along with pinhole cameras, on several automated teller machines throughout the Pittsburgh area. The skimming devices collect the account information contained on the magnetic strips on automated teller machines cards. The pinhole cameras collect personal identification numbers used by customers using the automated teller machines. Pantelica and his conspirators manufactured cloned automated teller machine cards and used those cloned cards and the personal identification numbers to access and withdraw funds from accounts.
The law provides for a minimum sentence of two years in prison and a maximum total sentence of 62 years in prison, a fine of $2,250,000 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 Brendan T. Conway is prosecuting this case on behalf of the government.
The United States Secret Service, with the assistance of the South Strabane 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.
Plumbing Franchise Owner Sentenced for OSHA Violation that Caused Employee’s DeathRead the Press Release
PITTSBURGH - A resident in Beaver County, Pennsylvania, has been sentenced in federal court to two years’ probation on his conviction of willfully violating an OSHA regulation causing the death of an employee, United States Attorney Scott W. Brady announced today.
United States Magistrate Judge Cynthia R. Eddy imposed the sentence on Wayne A. George, d/b/a A Rooter Man of Pittsburgh, LLC.
According to the information presented to the court, George was a part owner of A Rooter Man, and was responsible for all of its trench work. Most of that trench work involved excavating, installing and repairing septic systems. OSHA requires employers to provide life-saving cave-in protection in most trenches more than five feet deep. George spent most of his working life as an excavator and was very familiar with those important safety and legal requirements.
The events leading to the death took place on September 28, 2015, at the Shelbourne Personal Care Home in Penn Township, Butler County. George was physically present, operating a backhoe and supervising the replacement of a terra cotta sewer line with PVC pipe. George dug a trench that was 11 feet deep and had a ladder in the trench that was used by his employees to climb in and out of the trench. The trench had no cave-in protection.
The victim, Jacob Casher, was a 21-year-old A Rooter Man employee, who was in the trench at the depth of approximately 11 feet below the surface when the trench collapsed. He was killed instantly.
As a result of its investigation, OSHA issued citations for two willful violations and several serious violations of construction industry safety standards. In response, George paid a penalty of $87,000.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
U.S. Attorney Brady commended the U.S. Department of Labor’s Occupational Safety and Health Administration and the Office of the Regional Solicitor for the investigation leading to the successful prosecution of Wayne A. George.
Pittsburgh Woman Sentenced for Health Care Fraud and Prescription Painkiller Distribution SchemeRead the Press Release
PITTSBURGH - A local woman has been sentenced in federal court to three years probation on her conviction of health care fraud and conspiracy to distribute Oxycodone and Oxymorphone, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence yesterday on Angela Vernon, 66, of Pittsburgh, Pennsylvania.
According to information presented to the court, Vernon was part of a group of individuals involved in a large-scale health care fraud and pill distribution network. As part of the criminal enterprise, Vernon and others obtained powerful and addictive prescription pain medication through physicians under the false pretense that they intended to use that medication themselves. In fact, they intended to sell the medication to individuals addicted to those medications. Additionally, medication was often paid for through taxpayer-funded health care insurance programs. Thus, the taxpayers ended paying much of the prescription medications that these conspirators sold.
Assistant United States Attorney Brendan T. Conway is prosecuting these cases on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Drug Enforcement Administration for the investigation leading to the successful prosecution of these defendants.
Ohio Man Admits Crashing through Security Gate at FBI-Pittsburgh HeadquartersRead the Press Release
PITTSBURGH - An Ohio resident pleaded guilty in federal court to a charge of willfully injuring or committing depredation against any property of the United States, United States Attorney Scott W. Brady announced today.
Thomas Ross, age 49, formerly of New Waterford, Ohio, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on July 26, 2016, Ross drove his vehicle, a large dump truck, through the gate of the FBI Pittsburgh Field Office, located at 3311 East Carson Street, in Pittsburgh. Ross proceeded to ram through the security barriers at a high rate of speed, inflicting extensive damage on the gate and security barriers and causing the vehicle to become airborne. Upon hitting the ground, the vehicle struck a nearby light post in the interior parking lot of the FBI Pittsburgh.
The court was advised that the total amount of loss attributable to Ross’s actions will be determined at sentencing. The government estimates that the cost to repair and replace the gate and security barriers struck by Ross’s vehicle was approximately $175,000, and that the cost to repair the light post was approximately $13,684. The government also advised the court that, while the gate and security barriers were being repaired, the FBI also hired additional security personnel at additional cost to the FBI.
Judge Conti scheduled sentencing for June 13, 2018. 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 is based upon the seriousness of the offense 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 Pittsburgh FBI and Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Thomas Ross.
McKeesport Man Sentenced to Prison and Ordered to Pay Restitution for Overseas Reshipping SchemeRead the Press Release
PITTSBURGH – A resident of the Western District of Pennsylvania has been sentenced in federal court on his conviction of fraud conspiracy; mail fraud; wire fraud; conspiracy to commit money laundering; trafficking or using unauthorized access devices aggregating $1,000 or more (attempt); and possession of 15 or more access devices, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence yesterday on Daniel K. Miller, 52, of McKeesport, Pennsylvania. Miller received a sentence of 33 months in prison, followed by three years supervised release, and was ordered to pay approximately $71,472 in restitution.
According to information presented to the court, Miller falsely represented to be employees of companies in order to arrange and cause the unauthorized purchases of merchandise, and thereafter directing its shipment to individuals (re-shippers) who would re-ship the merchandise to co-conspirators overseas or would sell the products online and transfer the proceeds to co-conspirators overseas. Miller also knowingly transported, transmitted, or transferred monetary instruments or funds from a place in the United States to a place outside the United States (Nigeria). On or about September 10, 2010, Miller attempted to traffic in and use an unauthorized credit card in the amount of $2,213.44. On or about September 17, 2010, Miller possessed 15 or more unauthorized credit cards.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
United States Attorney Scott Brady commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Miller.
Georgia Man Sentenced to Probation for Transporting Stolen Car Across State LinesRead the Press Release
PITTSBURGH - A Georgia man has been sentenced in federal court to two years’ probation with six months’ home detention on his conviction of interstate transportation of a stolen vehicle, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Tom Smith, 55, of Atlanta, Georgia.
According to information presented to the court, on or about July 1, 2015, Smith transported a stolen Range Rover Sport, valued at $74,000, from the Commonwealth of Pennsylvania across state lines into the State of West Virginia.
Prior to imposing sentence, Judge Cercone stated that the sentence satisfies all of the factors set forth under 18 U.S.C. § 3553.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation, the Pennsylvania State Police and the Monroeville Police Department for the investigation leading to the successful prosecution of Smith.
Former UPMC Claims Director Sentenced to Prison for Embezzling $846K through Ghost EmployeesRead the Press Release
PITTSBURGH – A Washington state resident has been sentenced in federal court to 24 months of imprisonment, followed by three years supervised release, and was ordered to pay approximately $846,819 in restitution on his conviction of embezzlement, United States Attorney Scott W. Brady announced today.
United States District Judge David Stewart Cercone, imposed the sentence on Ronald Larry Locy, 48, of Southeast Olympia, Washington.
According to information presented to the Court, at the time of the offense, Locy was the Senior Director of Claims for the UPMC Health Plan Claims Department. Over an eight-year period, Locy caused UPMC to pay two "ghost employees" of UPMC Health Plan, for work and bonuses to which those ghost employees were not entitled. The loss to UPMC Health Plan was approximately $846,819.
According to Judge Cercone, Locy’s scheme was sophisticated in that Locy falsified records and emails in order to conceal his ghost employee fraud.
U.S. Attorney Brady commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Locy.
Pittsburgh Felon to Spend 3½ More Years in Prison for Second Escape from Corrections CenterRead the Press Release
PITTSBURGH – Tyrenzo Morton was sentenced to 42 months in federal prison for escape from federal custody following a prior federal sentence, United States Attorney Scott W. Brady announced today.
Morton, 32, of Pittsburgh, was sentenced by United States District Court Judge Nora Barry Fischer. Morton’s sentence also includes a term of three years of supervised release following the prison sentence. The sentence that Morton escaped from this time was for a prior escape from federal custody following prior sentences for the commission of felon in possession of firearm crimes, one of which was committed while on bond for the other.
Morton’s escapes were from Renewal, Inc., a community corrections center located in Pittsburgh. Morton was serving the last parts of his prior federal prison sentences at Renewal when he escaped this time and last time. In conjunction with Morton’s sentencing for his most recent escape, the Court was informed by the prosecution that, while residing at Renewal, Morton engaged in threatening and aggressive behavior toward a female Renewal employee and was engaged in drug dealing.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The United States Marshals Service and the Pittsburgh Bureau of Police conducted the investigation leading to the conviction and sentence in this case.
Judge Sentences Johnstown Heroin Dealer to 9 Years in PrisonRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., has been sentenced in federal court in Johnstown to 108 months in prison and three years’ supervised release on her conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Ava Blackwell, 25, of Johnstown, Pa.
According to information presented to the court, from Aug. 25, 2016, through Sept. 14, 2016, Blackwell conspired with a co-defendant to distribute and possess with the intent to distribute less than 100 grams of heroin.
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 Cambria County Drug Task Force for the investigation that led to the successful prosecution of Blackwell.
Altoona Man Sentenced to 7 Years in Prison for Possessing Child PornographyRead the Press Release
JOHNSTOWN, Pa. – A resident of Altoona, Pa. has been sentenced today in federal court to 84 months in prison, followed by 10 years’ supervised release, and was ordered to register as a convicted sex offender within three days of this sentence, on his conviction of possession of child pornography, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Trenton Stehley, 20, of Altoona, Pa.
According to information presented to the court, on August 11, 2015, Stehley knowingly possessed videos and images in individual computer graphic files which were produced using minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
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 Altoona Police Department for the investigation that led to the successful prosecution of Stehley.
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 better 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.
Ohio Man Pleads Guilty in Scheme to Distribute Heroin in Western PennsylvaniaRead the Press Release
PITTSBURGH – An Ohio resident pleaded guilty in federal court to a count of conspiracy to distribute heroin, United States Attorney Scott W. Brady announced today.
Christopher Smith, 21, of East Liverpool, Ohio, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Smith conspired with others to possess with intent to distribute and to distribute kilogram quantities of heroin, which was supplied from Mexico to Ohio and then later to Aliquippa in the Western District of Pennsylvania.
Judge Cercone scheduled sentencing for June 22, 2018. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Hopewell Township Police Department, Beaver County District Attorney’s Office, Aliquippa Police Department, and the Beaver County Sheriff’s Office conducted the investigation that led to the prosecution of Christopher Smith.
Judge Sentences Penn Hills Man to 11 Years in Prison for Stealing Delivery Truck and Attempted Robbery of Delivery VanRead the Press Release
PITTSBURGH - An Allegheny County resident has been sentenced in federal court to 11 years imprisonment, five years supervised release, and ordered to pay restitution in the amount of $15,030, on his convictions for attempted robbery and theft from interstate shipment, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Anthony Bailey, 39, of Penn Hills, Pennsylvania.
According to information presented to the court, on April 13, 2016, Bailey stole a Sears delivery truck which was parked at a convenience store in Lawrenceville. The truck contained $15,030 worth of washers, dryers, refrigerators and other appliances, which he later sold in Homewood.
Two weeks later, on April 27, 2016, Bailey and his codefendants, Raymond Denson and David Lipinski, attempted to rob a van making a delivery of pharmaceutical drugs to the Giant Eagle in Northtowne Center in Gibsonia. Lipinski brandished a firearm while he and Bailey tried unsuccessfully to force the driver back into the van. Bailey and the others then aborted the robbery attempt. Bailey has previous felony convictions from California for robbery and firearms offenses.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Firearms, Tobacco ahd Explosives and the Northern Regional Police Department for the investigation leading to the conviction of Bailey. The case is 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 a 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. The efforts of PSN led to the successful prosecution of Bailey.
Clairton Felon Sentenced for Drugs and GunsRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 199 months in federal prison, followed by five years of supervision by United States Probation Officers, as a result of violating federal firearm and drug laws, United States Attorney Scott W. Brady announced today.
Dwight D. Henley, 38, formerly of Clairton, Pa., received the sentence after previously pleading guilty to one count of possession of a firearm by a convicted felon and one count of possessing marijuana with the intent to distribute it, before United States District Judge Mark Hornak.
In connection with the guilty plea, the court was advised that Henley was previously convicted of a total of 16 counts at six different cases in the Allegheny County Court of Common Pleas. These convictions included drug offenses (12 counts), Terroristic Threats (one count), DUI (two counts), and Criminal Use of a Communication Device (one count). Each of these offenses was serious enough to preclude him from possessing a firearm or ammunition under federal law.
The Court learned that Henley was on state parole for his prior crimes when parole officers located marijuana in his house on February 23, 2015. As local police officers obtained a search warrant to search the entire residence, Henley admitted that he had marijuana, as well as a gun in the house "for protection." The search warrant revealed a loaded semi-automatic pistol, ammunition for two different guns, approximately 1.5 pounds of marijuana, over $2,100 in cash, three cellphones, two iPads and a laptop. Testimony from a prior hearing indicated that Henley was associated with the Ruff Ryders and Maxx’d Out motorcycle groups.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
Judge Hornak noted that since the defendant is an Armed Career Criminal with at least three prior convictions for serious drug and/or violent felony offenses, the law provided for a total sentence of not less than 15 years and up to life imprisonment. The Court was provided with a lengthy Pre-Sentence Report created by the United States Probation Office that detailed the defendant’s background, including his criminal, educational, family, and work history, before determining that the 199-month sentence was sufficient but not greater than necessary.
The defendant has been incarcerated in the custody of the United States Marshal Service since the time of his federal arrest.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Henley, with the valuable assistance of agents from the Pennsylvania Board of Probation and Parole, the Pennsylvania Attorney General’s Office and police officers from the Clairton and Elizabeth police departments. United States Attorney Brady commended all of the law enforcement officers involved for their cooperative efforts in the successful investigation.
Wexford Man Indicted for Failure to Register as a Sex Offender and Failure to Surrender to Serve his Prison SentenceRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of failure of to register as a sex offender and failure to surrender for service of sentence, United States Attorney Scott W. Brady announced today.
The two-count indictment, returned on February 13, named Daniel Teed, 56, of Wexford, Pa., as the sole defendant.
According to the indictment, from October 23, 2017, and continuing through the date of this indictment, Teed, who was required to register under the Sex Offender Registration and Notification Act (SORNA) after being convicted of Conspiracy to Commit Sex Trafficking of Children on June 14, 2017, knowingly failed to register, as required by the SORNA. The indictment further alleges that on January 2, 2018, Teed, after having been released, while awaiting surrender for service of sentence after conviction for Sex Trafficking of Children, a felony, and having been directed by the Court to surrender for service of sentence to the Federal Correctional Institution (FCI) Loretto in the Western District of Pennsylvania, knowingly and willfully failed to surrender for service of sentence as ordered by the Court.
Teed was arrested on February 12 in Flagstaff, Ariz. The U.S. Marshals Service led a nationwide manhunt that resulted in the apprehension. Teed, a convicted sex offender, was wanted for failing to surrender to serve a 10-year prison term. Deputy Marshals were dispatched to multiple states and eventually developed information that Teed had traveled to Flagstaff. Investigation revealed that Teed was employing an alias and had disguised his appearance to avoid capture. Deputy Marshals developed information that Teed was at staying at the Super 8 in the 2500 block of East Lucky Lane, in Flagstaff. Teed was arrested without incident late Monday afternoon as he exited the motel and approached his vehicle.
The law provides for a maximum total sentence of 20 years imprisonment, fine of $500,000, a term of supervised release for no more than three years, or any or all of the above. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The United States Marshals Service and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.
Second Pittsburgh Woman Sentenced for Role in Fraudulent Tax Return SchemeRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to three years probation on her convictions of mail fraud conspiracy and conspiracy to defraud the United States, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Simone Prater, 29, who was incarcerated pending sentencing. Judge Hornak also ordered that Ms. Prater pay $25,000 in restitution to the Internal Revenue Service.
According to information presented to the court, Sean Brooks, while incarcerated on other charges, prepared and arranged for the filing of more than one hundred fraudulent tax returns on behalf of fellow inmates and other individuals and generated more than $200,000 in fraudulent refunds. The fraudulent refunds were sent to a number of different addresses, and, after forging the endorsement of the payees, the checks were cashed through federally insured financial institutions and through check-cashing establishments. Simone Prater, among others, assisted the conspiracy in a variety of ways, including sending the Internal Revenue Service the fraudulent tax returns, picking up refund checks and providing them to others to cash; disbursing the proceeds of the fraud amongst the conspirators, and providing the names and addresses of closed businesses for Brooks to use as fake employers for taxpayers on the fraudulent tax returns.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service and the Department of Homeland Security – Homeland Security Investigations, for the investigation leading to the successful prosecution of Prater.
Pittsburgh Woman Sentenced for Participating in Tax Return SchemeRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to three years of probation on her convictions of mail fraud conspiracy and conspiracy to defraud the United States, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence yesterday on Amber Eubanks, 28, who was incarcerated pending sentencing. Judge Hornak also ordered that Ms. Eubanks pay $26,000 in restitution to the Internal Revenue Service.
According to information presented to the court, Sean Brooks, while incarcerated on other charges, prepared and arranged for the filing of more than 100 fraudulent tax returns on behalf of fellow inmates and other individuals and generated more than $200,000 in fraudulent refunds. The fraudulent refunds were sent to a number of different addresses, and, after forging the endorsement of the payees, the checks were cashed through federally insured financial institutions and through check-cashing establishments. Amber Eubanks, among others, assisted the conspiracy in a variety of ways, including receiving and cashing the fraudulent refund checks using power of attorney provided to her by Brooks, and arranging for checks to be sent to the address of a friend, after which Eubanks would pick up and cash the checks.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service and the Department of Homeland Security – Homeland Security Investigations, for the investigation leading to the successful prosecution of Eubanks.
Pittsburgh Man Pleads Guilty to Illegally Distributing Oxycodone PillsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania pleaded guilty in federal court to a charge of possession with intent to distribute and distribution of oxycodone, a Schedule II controlled substance, United States Attorney Scott W. Brady announced today.
Michael C. Pegher, 46, pleaded guilty yesterday to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Pegher, from April 2013 to September 2014, unlawfully distributed more than 3,000 oxycodone tablets he acquired by prescription from Alan Barnett, M.D. Alan Barnett entered a guilty plea on August 26, 2016, to unlawfully distributing prescriptions for oxycodone to Pegher and others, knowing that the recipients were drug addicts or were unlawfully distributing the drugs to others. Barnett was sentenced to five years probation, to include eight months of home detention, and 250 hours community service. Barnett was also ordered to pay $50,000 in fines.
Judge Conti scheduled Pegher’s sentencing for June 4, 2018, at 3:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pegher was released on an unsecured bond pending sentencing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Pegher.
Law Office Manager Forged and Cashed Firm Checks for Personal UseRead the Press Release
PITTSBURGH - An Allegheny County resident pleaded guilty in federal court to a charge of bank fraud, United States Attorney Scott W. Brady announced today.
Anthony Calaiaro, 34, of Pittsburgh, Pennsylvania, pleaded guilty to one count before United States District Judge David S. Cercone.
According to the indictment, from June 2014 through approximately April 2016, Calaiaro, who was employed as an Office Manager for a law firm, wrote checks to himself by forging the signature of a partner from the firm. Calaiaro then cashed the forged checks at various locations and used the funds for his own personal use. The total loss is approximately $827,020.39.
Judge Cercone scheduled sentencing for June 22, 2018 at 11 a.m. The law provides for a total sentence of 30 years in prison, a fine of $1,000,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Anthony Calaiaro.
Former President and CEO of Pennsylvania Health Services Company Indicted for Conspiring to Defraud the IRS and Filing False Tax ReturnsRead the Press Release
PITTSBURGH – The former President and Chief Executive Officer of a Pennsylvania health services management company has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to defraud the United States and filing fraudulent income tax returns, United States Attorney Scott W. Brady announced today.
The 10-count indictment, returned on February 13, named Joseph W. Nocito as the sole defendant.
"This indictment charges Joseph Nocito, the CEO and President of AHS, Inc., with defrauding the Internal Revenue Service through a multi-year, multi-million dollar tax fraud," stated U.S. Attorney Brady. "The indictment alleges that Nocito conspired to conceal millions of dollars in personal income from the IRS in two ways: first, by causing construction costs for his multi-million dollar personal residence to be recorded as business expenses of companies he controlled, and second, by devising an elaborate shell game where he transferred money among his companies for the purpose of evading taxes. My office is committed to protecting the taxpayers of western Pennsylvania from those who would defraud the United States government."
Ed Wirth, Acting Special Agent in Charge, IRS Criminal Investigation, added, "When dishonest individuals fraudulently write off their personal expenses and underreport their income, this cheats the honest taxpayers who pay their fair share for the government services and protections that we all enjoy. The Special Agents of IRS Criminal Investigation remain committed to investigating and recommending prosecution of these individuals."
According to the indictment, Joseph W. Nocito was CEO and President of Automated Health Systems Inc. (AHS), a Pittsburgh-based company that administered public health programs for state and local governments. The indictment alleges that Nocito conspired with others to defraud the IRS by fraudulently claiming millions of dollars of personal expenses as corporate business expenses – including the construction of his 39,000 square-foot home in Sewickley, which Nocito referred to as "Villa Noci," payments on a Jaguar, Maserati, and Rolls Royce, a personal butler and cook, and country club memberships. Nocito is also charged with understating his income on his personal tax returns by not reporting the income he diverted for personal expenses.
The indictment further alleges that Nocito concealed millions in taxable profits of AHS by shuffling millions in payments between AHS and other companies Nocito owned, such as Northland Properties, Golden Triangle Leasing, Management Financial Services, in order to fraudulently deduct the payments as business expenses and reduce the tax liability of AHS. Nocito is accused of falsely characterizing these payments as management, administrative and consulting expenses, and in turn fraudulently deducting the payments on corporate tax returns filed with the IRS.
The law provides for a total sentence of 32 years in prison, a fine of $2,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorneys Gregory C. Melucci, Mary M. Houghton, and Nelson P. Cohen, as well as Department of Justice Tax Division Trial Attorney Jeffrey B. Bender, are prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation and the United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former President and CEO of Pennsylvania Health Services Company Indicted for Conspiring to Defraud the IRS and Filing False Tax ReturnsRead the Press Release
The former President and CEO of a Pennsylvania health services management company was indicted by a federal grand jury in Pittsburgh yesterday for conspiring to defraud the United States and filing fraudulent income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney Scott W. Brady for the Western District of Pennsylvania.
According to the indictment, Joseph W. Nocito was CEO and President of Automated Health Systems Inc. (AHS), a Pittsburgh-based company that administered public health programs for state and local governments. The indictment alleges that Nocito conspired with others to defraud the Internal Revenue Service (IRS) by fraudulently claiming millions of dollars of personal expenses as corporate business expenses – including the construction of his 39,000 square-foot home in Sewickley, which Nocito referred to as “Villa Noci,” payments on a Jaguar, Maserati, and Rolls Royce, a personal butler and cook, and country club memberships. Nocito is also charged with understating his income on his personal tax returns by not reporting the income he diverted for personal expenses.
The indictment further alleges that Nocito concealed millions in taxable profits of AHS by shuffling millions in payments between AHS and other companies Nocito owned, such as Northland Properties, Golden Triangle Leasing, Management Financial Services, in order to fraudulently deduct the payments as business expenses and reduce the tax liability of AHS. Nocito is accused of falsely characterizing these payments as management, administrative and consulting expenses, and in turn fraudulently deducting the payments on corporate tax returns filed with the IRS.
Nocito faces a statutory maximum sentence of five years in prison on the conspiracy charge and three years in prison on each count of filing a fraudulent tax return. He also faces a period of supervised release, restitution and monetary penalties. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Brady praised special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U. S. Attorneys Gregory C. Melucci, Mary M. Houghton and Nelson P. Cohen and Trial Attorney Jeffrey B. Bender of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Federal Inmate Sentenced to 3 Additional Months in Prison for Possessing MarijuanaRead 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 immediately following, was sentenced to three months in prison, consecutive to the current prison term he is serving, and three years’ supervised release, United States Attorney Scott W. Brady announced today.
Edward R. Harris, 42, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on January 9, 2017, Harris possessed a quantity of marijuana.
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 Harris.
Unsealed Indictment Charges Floridian in Complex Fraud SchemeRead the Press Release
PITTSBURGH - Today, the Court unsealed the indictment of a Florida man charging him conspiracy to commit mail fraud, wire fraud, and bank fraud, United States Attorney Scott W. Brady announced.
The one-count indictment, returned on December 12, 2017, named Garri Shihman, 46, of Parkland, Fla., as the sole defendant.
According to the indictment presented to the court, Shihman was involved in a complex fraud that involved fraudulently processing credit card payments. The credit card companies will not allow their products and services to be used to pay for certain precluded activities, including the on-line sales of pharmaceutical drugs and of products violating trademark infringement laws. Shihman participated in a conspiracy designed to conceal from the credit card companies the fact that Shihman and his co-conspirators used their products and services to pay for precluded activities and to subvert the internal controls the credit card companies had in place to detect and prevent this type of activity. The fraud involved establishing shell corporations and web sites associated with the shell companies that falsely claimed that they sold a product other than pharmaceutical drugs or products that violated trademark infringement laws. The conspirators then applied for merchant accounts from the credit card companies in the names of the shell corporations and the fake web sites. Once the merchant accounts were established, they were used to process payments for pharmaceutical drugs or products that violated trademark infringement laws. Additionally, the conspirators arranged for the credit card statements sent to the consumers to have the names of the shell corporations and telephone numbers. The conspirators set up a telephone bank to receive calls from customers questioning billings on their credit card statements, and the conspirators explained to the customers the true nature of the transactions in hopes of avoiding charge-backs that could cause the credit card companies to question the legitimacy of the transactions.
The law provides for a maximum total sentence of 30 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 offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Food and Drug Administration – Office of Criminal Investigations, Homeland Security Investigations, Pennsylvania State Police and United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Conspired to Distribute Fentanyl-Laced HeroinRead the Press Release
JOHNSTOWN, Pa. – A former resident of Philadelphia, Pa., pleaded guilty in federal court in Johnstown to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Kareem Jamal Jones, 28, pleaded guilty to one count of the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from Aug. 25, 2016, through Sept. 14, 2016, Jones conspired with a co-defendant to distribute and possess with the intent to distribute less than 100 grams of heroin laced with fentanyl.
Judge Gibson scheduled sentencing for June 12, 2018, at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed 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 Jones.
Mt. Pleasant Man Sentenced to 5 Years in Prison for Receiving Child PornographyRead the Press Release
PITTSBURGH - A former resident of Westmoreland County, Pennsylvania, has been sentenced in federal court to 60 months’ imprisonment, followed by 10 years’ supervised release, on a charge of receipt of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Charles Kaper, age 53, of Mt. Pleasant, Pennsylvania.
According to information presented to the court, the court was advised that from June 2016 to July 2016, Kaper received videos and images containing material depicting the sexual exploitation of minors.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the United States.
U.S. Attorney Brady commended the Federal Bureau of Investigation for conducting the investigation leading to the successful prosecution of Kaper.
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.
Business Manager Sentenced to 41 Months in Prison for Embezzling $1.5 Million from Boilermakers Local 154Read the Press Release
PITTSBURGH - A former Boilermakers union official has been sentenced in federal court to 41 months in prison, followed by three years of supervised release, on his conviction of embezzlement and theft of Labor Union assets and income tax evasion, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Raymond Ventrone, 60, of Pittsburgh, Pa. In addition to the prison sentence, Judge Hornak ordered Ventrone to pay $2,391,183 in restitution to the Boilermakers Union, followed by restitution of $500,000 to Zurich Surety and Financial Claims of Schaumburg, Illinois, and ordered him to pay $223,881 to the Internal Revenue Service.
According to information presented to the court, Ventrone caused a loss to Local 154 of approximately $3,000,000 over a four-and-one-half-year period between January 2010 and June 2015. When his thefts were discovered he was forced to resign his position as Business Manager of Local 154. That position was the most powerful job within the union. Ventrone used his unchecked power to authorize payments of retail goods that were of no use to the union. Some of these items were stored in his home, others were stored in storage units paid for by the Local, and others were on the Local’s premises, but not accessible to members.
Judge Hornak said that, “By any measure, this is an extraordinarily serious offense…Officers have a significant fiduciary responsibility to the members they represent.” The court also noted that Ventrone had engaged in “plainly unlawful and inappropriate conduct” by sending one of his subordinates to cash three Local 154 checks totaling $105,000 from a gas station owner friendly with Ventrone. The cash was returned to Ventrone.
Listed below are totals of payments to various retail establishments made by Local 154 at Ventrone’s direction:
- Approximately: $970,000 at Best Buy;
- $105,000 at the Apple Store;
- $527,000 spent on Louis Vuitton purchases;
- $198,602; $38,000 spent on drums, percussion instruments and musical accessories, from Drum World that the defendant maintained under lock and key on the premises of Local 154, unavailable and off limits to Local 154 members;
- $10,623.95 spent on Coco Lunette eye glasses for the defendant; $26,000 spent on concrete work at the defendant’s home; and
- $9,000 spent on a kitchen remodel at the defendant’s home.
The court noted that Ventrone had unnecessarily involved his son, a former NFL player, by renting him a spacious and extravagantly furnished apartment on the Local’s property for a mere $500 per month. The furnishings for the rental were from Restoration Hardware, Levins, Macy’s, Williams Sonoma, Best Buy and Pool City. The rental included a full and complete private fitness center with several large televisions that was not for the use or benefit of union members, but only for his son’s use. Local 154 also paid the utilities. The rental wasn’t vacated until this investigation became public. The loss to the union for the rent and furnishings was approximately $39,000, and the loss for the private fitness center was approximately $44,000.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
U.S. Attorney Brady commended the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations, the Department of Labor-OIG and the Office of Labor Management Standards for conducting the investigation leading to the prosecution of this defendant.
West Mifflin Man Charged with Distributing Multiple Illegal SubstancesRead the Press Release
PITTSBURGH – An Allegheny County man has been indicted by a federal grand jury in Pittsburgh and charged with violations of federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on February 6 and unsealed today, named Stanley Church, 47, of West Mifflin, Pa., as the sole defendant.
According to the indictment, on or about March 17, 2017, Stanley Church possessed with the intent to distribute quantities of heroin, fentanyl, cocaine, crack cocaine, MDMA, and Psilocyn mushrooms.
The law provides for a total maximum sentence of not more than 20 years in prison, and a fine of up to $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Allegheny County Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
West Mifflin Man Charged with Distributing Multiple Illegal SubstancesRead the Press Release
PITTSBURGH – An Allegheny County man has been indicted by a federal grand jury in Pittsburgh and charged with violations of federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on February 6 and unsealed today, named Stanley Church, 47, of West Mifflin, Pa., as the sole defendant.
According to the indictment, on or about March 17, 2017, Stanley Church possessed with the intent to distribute quantities of heroin, fentanyl, cocaine, crack cocaine, MDMA, and Psilocyn mushrooms.
The law provides for a total maximum sentence of not more than 20 years in prison, and a fine of up to $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Allegheny County Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Pittsburgh-area Men Charged in Fentanyl Distribution SchemeRead the Press Release
PITTSBURGH – Two Allegheny County residents have been indicted by a federal grand jury in Pittsburgh and charged with violations of federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The four-count indictment, returned on February 6 and unsealed today, named the defendants as:
• Edjuan Jackson, 28, of Duquesne, PA; and
• Anthony Ptomey, 26, of Steuben Street, Pittsburgh, PA.
According to the indictment, from on or about March 1, 2017, to on or about March 30, 2017, the defendants are charged with conspiring to possess with the intent to distribute and distribute a quantity of fentanyl. Individually, Edjuan Jackson is charged with possession with intent to distribute a quantity of fentanyl on March 30, 2017. On the same date, Jackson is also charged with possession of a firearm in furtherance of a drug trafficking crime. Anthony Ptomey is charged with possession with intent to distribute heroin fentanyl on April 17, 2017.
For Jackson, the law provides for a total maximum sentence of not more than 20 years in prison, and a fine of up to $1,000,000, or both for the drug charges. For the firearms charge, Jackson faces a total maximum sentence of not less than five years and up to life in prison, a fine of $250,000, or both. For Ptomey, the law provides for a total maximum sentence of not more than 20 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 Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation leading to the indictment in this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sherriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, West Mifflin Police Department, and Pennsylvania Attorney General’s Office.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Pittsburgh-area Men Charged in Fentanyl Distribution SchemeRead the Press Release
PITTSBURGH – Two Allegheny County residents have been indicted by a federal grand jury in Pittsburgh and charged with violations of federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The four-count indictment, returned on February 6 and unsealed today, named the defendants as:
• Edjuan Jackson, 28, of Duquesne, PA; and
• Anthony Ptomey, 26, of Pittsburgh, PA.
According to the indictment, from on or about March 1, 2017, to on or about March 30, 2017, the defendants are charged with conspiring to possess with the intent to distribute and distribute a quantity of fentanyl. Individually, Edjuan Jackson is charged with possession with intent to distribute a quantity of fentanyl on March 30, 2017. On the same date, Jackson is also charged with possession of a firearm in furtherance of a drug trafficking crime. Anthony Ptomey is charged with possession with intent to distribute heroin/fentanyl on April 17, 2017.
For Jackson, the law provides for a total maximum sentence of not more than 20 years in prison, and a fine of up to $1,000,000, or both for the drug charges. For the firearms charge, Jackson faces a total maximum sentence of not less than five years and up to life in prison, a fine of $250,000, or both. For Ptomey, the law provides for a total maximum sentence of not more than 20 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 Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation leading to the indictment in this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sherriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, West Mifflin Police Department, and Pennsylvania Attorney General’s Office.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Sentenced to Six Years in Prison for Operating Forged Prescription Drug RingRead the Press Release
PITTSBURGH - A resident of Pittsburgh, has been sentenced in federal court to 74 months, followed by three years supervised release and ordered to pay $3,533.62 on his conviction of a health care fraud conspiracy to commit offenses against the United States and aggravated identity theft, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Barry Lee Dorsey, II, 26, of Pittsburgh, Pennsylvania.
According to information presented to the court, Dorsey operated a forged prescription ring. Prescriptions were forged with the names, DEA numbers, medical license numbers, and signatures of real medical doctors. The prescriptions, most of which were forged for oxycodone and Percocet, were filled at a large number of Western Pennsylvania pharmacies and primarily paid for with Medicaid funds. The fraudulently obtained prescription pills were then sold on the street for substantial profit.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
U.S. Attorney Brady commended the Federal Bureau of Investigation, Drug Enforcement Administration, Pittsburgh Bureau of Police, Brentwood Police Department, Mt. Pleasant Police Department and Bellevue Police Department for the investigation leading to the successful prosecution of Dorsey.
Pittsburgh Felon Admits Stealing Rifles and Ammunition from West Mifflin Sports StoreRead the Press Release
PITTSBURGH - An Allegheny County resident pleaded guilty in federal court to charges of possession of a firearm and ammunition by a convicted felon and stealing firearms from a licensed firearms dealer, United States Attorney Scott W. Brady announced today.
Marquis Trammel, aka Marquis Botelho-Trammel, aka Marquis Motelho-Trammel, 20, formerly of Pittsburgh, Pennsylvania, pleaded guilty to two counts before Chief U.S. District Judge Joy Flowers Conti.
According to information presented to the court, on December 20, 2016, Trammel and a juvenile stole five rifles from a display case they broke open and an unknown number of boxes of handgun ammunition from the drawer below the rifle case located inside the Dunham’s Discount Sports store located in West Mifflin, Pennsylvania. Trammel was convicted on or about December 9, 2015, in the Court of Common Pleas, County of Allegheny, Criminal Division of the crimes of Robbery, Terroristic Threats, and Theft by Unlawful Taking, which are crimes punishable by imprisonment for a term exceeding one year, and preclude him under federal law from possessing a firearm or ammunition.
Judge Conti scheduled sentencing for May 31, 2018 at 3:30 p.m. The law provides for a maximum total sentence of 10 years in prison, a fine not greater than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosive and the West Mifflin Police Department conducted the investigation leading to the indictment in this case. 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.
Patton, Pa. Woman Sentenced to Probation with Home Confinement for Stealing MailRead the Press Release
JOHNSTOWN, Pa. – A Cambria County resident has been sentenced in federal court to three years’ probation, with the condition that the first six months of her probation be served by a term of home confinement, and was ordered to perform 300 hours of community service, as a result of her conviction of theft of mail, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Jennifer R. Miller, 29, of Patton, Pa.
According to information presented to the court, in Dec. 2011 Miller stole various pieces of mail from mail boxes.
Assistant United States Attorney John J. Valkovci, Jr. prosecuted this case on behalf of the government.
U.S. Attorney Brady commended the United States Postal Service, Office of Inspector General, for the investigation that led to the successful prosecution of Miller.
Judge Sentences Pittsburgh Heroin Dealer to 8 Years in PrisonRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to eight years in prison, followed by four years of supervised release, on his conviction of violating the federal drug laws, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Clinton Robinson, 33, of Pittsburgh, Pennsylvania.
According to information presented to the court, from January 2016 to August 2016, Clinton conspired with others to distribute and to possess with intent to distribute more than 700 grams but less than one kilogram of heroin. In addition, on August 22, 2016, Clinton attempted to possess with intent to distribute over 100 grams of heroin.
Assistant United States Attorney Amy L. Johnston prosecuted this case on behalf of the government. This prosecution was part of a federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) investigation that resulted in several federal indictments in August of 2016. The OCDETF task force was headed by the Federal Bureau of Investigation and was comprised of members drawn from the FBI Greater Pittsburgh Safe Streets Task Force including the Pittsburgh Bureau of Police, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, and the Allegheny County Police Department. Substantial assistance was provided by FBI San Juan, Puerto Rico (St. Thomas Resident Agency, U.S. Virgin Islands) and the United States Postal Inspection Service. Numerous other FBI field offices, including Detroit, Cleveland, New York, and Atlanta, in addition to the Bureau of Alcohol, Tobacco, and Firearms, also assisted with this investigation. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
United States Attorney Brady commended the agencies for the investigation leading to the successful prosecution of Clinton Robinson.
Convicted Bank Robber who Escaped from Renewal Center Gets More Prison TimeRead the Press Release
PITTSBURGH – Walter Cody Tribble was sentenced to a prison term of 12 months and one day for escaping from federal custody following a prior federal felony conviction, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Tribble, age 43, who formerly resided in Slippery Rock, Pennsylvania. Tribble was also sentenced to serve three years of supervised release following the expiration of his prison sentence.
Prior to imposing the sentence, the Court was informed that, in 2010, Tribble was sentenced to 110 months in federal prison for three armed bank robbery convictions. As of December 3, 2016, Tribble was in pre-release custody at the Renewal Center in Pittsburgh serving the last part of his federal prison sentence. On that date, Tribble was authorized to leave Renewal to go to a local business, but he was required to return by a particular time on that date. Tribble never returned to Renewal. On January 18, 2017, the United States Marshals Service arrested Tribble after tracking him down at a residence in Guys Mills, Crawford County, Pennsylvania.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The United States Marshals Service and the Crawford County Sheriff’s Office conducted the investigation leading to the conviction and sentence in this case.
Bedford Woman Sentenced to Probation for Conspiring to Distribute Controlled SubstancesRead the Press Release
JOHNSTOWN, Pa. – A resident of Bedford, Pa. has been sentenced in federal court in Johnstown to one year probation on her conviction of conspiracy to distribute, possess with intent to distribute and distribution of quantities of various Schedule IV controlled substances, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Damaris Rispoli, age 56, of Bedford, Pa.
According to information presented to the court, from in and around Aug. 2014, to on or about May 20, 2015, Rispoli conspired with another to distribute and possess with intent to distribute quantities of Tramadol, Zolpidem, Clonazepam, Lorazepam, and Carisoprodol, and on or about May 20, 2015, Rispoli possessed with intent to distribute Carisoprodol, and distributed quantities of Tramadol, Zolpidem, Clonazepam, and Lorazepam.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Brady commended the Department of Homeland Security for the investigation that led to the successful prosecution of Rispoli.