Middle District of Pennsylvania

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Joshua Ryan Lazar, age 37, of Mountain Top, Pennsylvania, was sentenced on January 19, 2023, to 60 months’ imprisonment by United States District Court Judge Malachy E. Mannion for receipt and distribution of child pornography.

According to United States Attorney Gerard M. Karam, on January 25, 2022, Lazar was indicted on one count of receiving and distributing visual depictions of minors engaged in sexually explicit conduct between September 2021 and November 30, 2021.  During the execution of a search warrant at Lazar’s residence agents seized his computer which contained over 1,560 images and 32 videos of child pornography.  The images included prepubescent minors and infants.  

At the time of sentencing, Judge Mannion ordered Lazar to pay $27,000 to victims for restitution. 

The case was investigated by Homeland Security Investigations.  Assistant U.S. Attorney Jenny Roberts prosecuted the 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.usdoj.gov/psc.

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ricardo Soto, a/k/a “the Chicken Man,” age 52, of Lancaster, Pennsylvania, was sentenced by U.S. District Court Judge Jennifer P. Wilson to 47 months in prison.

 According to United States Attorney Gerard M. Karam, Soto conspired with others to smuggle kilograms of cocaine into Central Pennsylvania through the U.S. Mail. The cocaine was shipped in Puerto Rico and mailed to various drop locations in Lancaster, where the parcels were retrieved by conspirators for further distribution. They also engaged in street level drug trafficking, including selling heroin and fentanyl to customers. The conspirators transported cash back to Puerto Rico in furtherance of the trafficking. Soto entered a guilty plea to conspiracy to traffic cocaine, heroin, and fentanyl.

Soto’s coconspirator, Jonathan Lopez Arizmendi, pleaded guilty on August 8, 2022, to conspiracy to distribute 5 kilograms and more of cocaine, and is awaiting sentencing. The remaining coconspirators are awaiting trial. 

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

The case was investigated by the U.S. Drug Enforcement Administration (DEA), the Pennsylvania State Police, the United States Postal Inspection Service, Lancaster County Drug Task Force and York County Drug Task Force. Assistant U.S. Attorney Michael Consiglio is prosecuting the case.

All persons charged are presumed to be innocent unless and until found guilty in court.        

# # #

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Paul Quick, age 26, of Scranton, Pennsylvania, pleaded guilty on January 23, 2023, before U.S. District Court Judge Malachy Mannion, to the charge of possession with intent to distribute more than fifty grams of methamphetamine.

According to United States Attorney Gerard M. Karam, Quick admitted to possessing more than fifty grams of methamphetamine for distribution in the Scranton area in 2022. The charge stems from an incident in June 2022, in which members of the Scranton Police Department and Pennsylvania State Police conducted a search of a residence on South Webster Avenue in Scranton and found Quick in possession of several packages of methamphetamine for distribution, as well as a loaded .380 caliber handgun.

The charges against the defendant resulted from an investigation conducted by the Scranton Police Department, the Pennsylvania State Police, and the Drug Enforcement Administration.  Assistant United States Attorneys Robert J. O’Hara and Brian Gallagher are prosecuting the case.

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

Under federal law, Quick faces a mandatory minimum sentence of five years in prison and a maximum sentence of forty years, a term of supervised release and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

# # #

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on January 18, 2023, Donald Royce, age 46, of Orlando, Florida, was sentenced to 46 months in prison by U.S. District Court Judge Robert D. Mariani, for defrauding taxpayers of more than $250,000.

According to United States Attorney Gerard M. Karam, on May 16, 2017, Royce was indicted on one count of mail fraud and eight counts of filing fraudulent tax forms.  Following indictment, Royce alleged he was incompetent to stand trial due to a head injury that he claimed occurred in August 2013.  Between 2019 and 2021, Royce was evaluated by numerous medical professionals to assess his claims of traumatic brain injury. Evaluators reported that Royce presented with “cave-man” speech and claimed he was unable to understand his charges or assist his attorney in his defense.  Following a two-year delay in the prosecution of his case, the Court held a competency hearing on November 22, 2022, where a neuropsychologist testified that there was no medical basis for Royce’s allegations. Based on the medical evidence that Royce was malingering—or faking his symptoms—Judge Mariani found Royce competent to stand trial. 

Royce pleaded guilty on March 7, 2022, to one count of mail fraud charge and one count of tax fraud. In pleading guilty, Royce admitted that, as a tax preparer working in Scranton, he defrauded a number of local taxpayers in 2014. After providing the victim taxpayers with a “client copy” of their tax return that showed the correct refund amount, Royce submitted fraudulent tax returns to the IRS that inflated the refund due. After the IRS sent the refund to Royce, the defendant kept the difference between the legitimate refund amount and the higher fraudulent amount for his own personal use.  In one case, Royce instructed the victim clients to provide him with their tax payment and instead forwarding the payment to the IRS, Royce kept the payment for himself.  Due to Royce’s actions, his victims suffered more than $250,000 in losses.

At the time of sentencing, Judge Mariani found that Royce’s intentional actions to feign incompetency amounted to obstruction of justice which increased his sentencing guidelines exposure.  In addition to the term of incarceration, Judge Mariani imposed a three-year term of supervised release to be served upon release from prison. The Court further ordered that money seized from Royce be used to pay more than $336,000 in restitution to over forty victims and the IRS, and that Royce must forfeit over $155,000 in proceeds of his crimes.        

The case was investigated by the Internal Revenue Service, Criminal Investigations.  Assistant United States Attorney Jenny P. Roberts prosecuted the case.

# # #

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on January 13, 2023, Jorgelis Torres-Figueroa, age 25, of McAdoo, PA, was sentenced to 70 months’ imprisonment to be followed by a 3-year term of supervised release by United States District Court Judge Robert D. Mariani for conspiracy to distribute over 50 grams of methamphetamine.

According to United States Attorney Gerard M. Karam, from September through November 2018, along with a coconspirator, Torres-Figueroa distributed approximately 490 grams of methamphetamine at locations in and around Hazleton, PA.  

This matter was investigated by the Drug Enforcement Administration (DEA) and the Pennsylvania State Police (PSP).  Assistant United States Attorney Jeffery St John prosecuted the case.

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

# # #

HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Amy Kruleski, age 40, of New Cumberland, Pennsylvania, was sentenced yesterday by U.S. District Court Judge Jennifer P. Wilson to 6 months’ imprisonment for cyberstalking.  

According to United States Attorney Gerard M. Karam, Kruleski previously admitted to harassing and intimidating two individuals in May 2018 through an electronic communication service.  Over three days, Kruleski made numerous phone calls to those individuals, pretending to be a family member, and claiming to have been kidnapped.  During the calls, Kruleski claimed that she had been drugged, beaten, and sexually assaulted.  Law enforcement confirmed relatively quickly, however, that the person Kruleski was purporting to be had not been kidnapped and was safe.

The case was investigated by the Federal Bureau of Investigation.  Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that United States District Court Judge Jennifer P. Wilson sentenced Heriberto Ortiz-Torres, age 34, of Harrisburg, Pennsylvania, to 139 months in prison for drug trafficking and was sentenced separately to 78 months in prison for possession of a firearm by a felon.  The sentences are to run concurrently.

According to United States Attorney Gerard M. Karam, Ortiz-Torres pleaded guilty to conspiracy to possess with intent to distribute over 500 grams of cocaine. Ortiz-Torres was part of a conspiracy that brought kilogram size quantities of cocaine into the Harrisburg area from Puerto Rico.  Ortiz-Torres was involved in several transactions involving multiple ounces of cocaine and was also overheard in conversations discussing procuring and storing firearms. 

Ortiz-Torres was arrested by the Harrisburg Police Department on February 8, 2019, following a traffic stop in which he possessed a loaded .40 caliber Glock handgun. The handgun was modified to fire on fully automatic, and Ortiz-Torres had previously been convicted of a felony offense, prohibiting him from possessing firearms.  

The cases were investigated by the Harrisburg Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorneys Daryl F. Bloom and Scott R. Ford prosecuted the cases.

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

# # #

SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Matthew Luce, a/k/a “Luck,” age 36, of Effort, Pennsylvania, was sentenced to 240 months’ imprisonment by United States District Court Judge Malachy E. Mannion for distributing fentanyl resulting in death.  Judge Mannion also sentenced Luce to 188 months on a separate drug trafficking conspiracy case. The sentences are to run concurrently.

According to United States Attorney Gerard M. Karam, on February 6, 2021, Luce knowingly and intentionally distributed a quantity of fentanyl within the Middle District of Pennsylvania, resulting in the death of a 36-year-old Clinton, New Jersey man.  Luce was also responsible, between November 26, 2020 until the date of his arrest on February 23, 2021, for conspiring to distribute and possess with the intent to distribute over 50 grams of methamphetamine and 100 grams of heroin.  Luce had previously pleaded guilty to both charges. 

The case was investigated by the Federal Bureau of Investigation (FBI), the Monroe County District Attorney’s Office, the Hunterdon County Prosecutor’s Office (NJ), the Clinton Police Department (NJ), the Stroud Area Regional Police Department, and the Pennsylvania State Police.  Assistant U.S. Attorney James M. Buchanan prosecuted the case.

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

This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.  Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

# # #

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Joshua Sweet, age 32, of Hazleton, Pennsylvania, was sentenced to 37 months in prison by United States District Court Judge Robert D. Mariani for drug trafficking and money laundering charges. 

According to United States Attorney Gerard M. Karam, Sweet previously entered a guilty plea to two felony counts charging money laundering and drug trafficking.  Between October 2016 and May 2018, Sweet manufactured, distributed, and possessed with the intent to manufacture and distribute oxycodone, methylphenidate, tramadol, fentanyl, methamphetamine, alprazolam, lysergic acid diethylamide, cocaine, marijuana, and psilocin.  Sweet also engaged in money laundering during the same period by engaging in transactions intended to promote his drug trafficking and conceal the nature, location, source, and ownership of the proceeds of the illegal sales of controlled substances. Sweet exchanged over $200,000 in bitcoin, proceeds from the sale of controlled substances, for cash through an unlicensed remitter. Investigators also seized bitcoin, gold bars, and cash from Sweet, totaling approximately $100,000 in value.

The case was investigated by the Homeland Security Investigations (HSI) and the Hazleton Police Department. Assistant U.S. Attorney Sean A. Camoni prosecuted the case.

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

This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.  Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced the unsealing of an indictment charging Earl Marshawn Washington, age 60, and his wife, Zsanett Nagy, age 31, both residents of Honolulu, HI, with conspiracy to commit wire fraud, mail fraud, and money laundering, and charging Washington separately with bank fraud and conspiracy to commit bank fraud.

According to United States Attorney Gerard M. Karam, the indictment alleges that from 2018 to 2021, Washington and Nagy sold counterfeit artistic goods known as “woodblocks” or “woodcuts” to various buyers and then laundered the proceeds from the sale of those goods. According to the indictment, xylography is the art of making “woodcuts,” or engravings made from wooden blocks, especially for printing using historical techniques. In traditional xylography, an artist uses a sharpened tool to carve a design into the surface of a woodblock. The raised areas that remain after the block has been cut are inked and printed, while the recessed areas that are cut away do not retain ink and will remain blank in the final print. Woodblock images can be printed onto paper, fabrics, textiles, or other materials. The technique has been used in different geographic regions at different times. One woodblock tradition stems from Germany starting around the 14th century and continuing for several hundred years thereafter.

The indictment also alleges that Washington and Nagy sold inauthentic woodblocks and prints made from woodblocks that they advertised as being from between the 15th and early 20th centuries. The buyers included a pair of woodblock collectors residing in France, as well as a buyer of a woodblock print who then resided in Hummelstown, PA. The buyers of the woodblocks in France allegedly made $84,350.91in PayPal payments to Nagy before learning that the woodblocks they purchased were not from the 15th and 16th centuries, as advertised. According to the indictment, Nagy received these payments through PayPal, moved the proceeds to a bank account in her name, and then quickly converted the proceeds to cash through withdrawals of several thousand dollars at a time.  It is alleged that Washington admitted to one of the French buyers as being the creator of the woodblocks sold to the French buyers.

Washington is also charged with defrauding a collector of woodblocks from York, PA. The indictment alleges that this collector paid Washington, who used the alias “River Seine,” and his then girlfriend, $118,810 from 2013 to 2016 in exchange for approximately 130 woodblocks, again advertised as being several centuries old. The indictment alleges that at least some of these woodblocks were, in fact, made in the second half of the twentieth century.

“If you promise people one thing and sell them another, that’s fraud, plain and simple,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Here we had collectors paying for what they believed were old, rare, and valuable woodblocks and prints, but what they allegedly received were none of the above. The FBI’s Art Crime Team is uniquely positioned to investigate matters like this and committed to holding art fraudsters accountable.”

The indictment contains forfeiture allegations seeking over $200,000 from Washington and Nagy collectively, which is allegedly the amount they received from buyers of their counterfeit artistic goods.

This case was investigated by members of the FBI's Art Crime Team assigned to the Philadelphia Division. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.

The maximum penalty under federal law for conspiracy to commit wire fraud, mail fraud, and money laundering is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty under federal law for wire fraud is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. In addition, Washington faces a maximum penalty under federal law for conspiracy to commit bank fraud and bank fraud of 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Duvany Zambrano, age 43, of Hamilton, New Jersey, and Sergio Jara, age 37, of Allentown, Pennsylvania, were indicted on January 4, 2023, by a federal grand jury for defrauding the Pennsylvania Turnpike Commission. 

According to United States Attorney Gerard M. Karam, the indictment alleges that beginning in 2018, Zambrano, Jara and others began acquiring thousands of E-Z Pass transponders from retailers in Pennsylvania and New Jersey.  They then registered the transponders using false personal information and false credit card information.  They sold the transponders to truckers in the New Jersey area who travelled on the Pennsylvania Turnpike hauling materials. In doing so, the indictment alleges that Zambrano, Jara, and others avoided paying approximately $1,000,000 in tolls.

The indictment was unsealed following Zambrano and Jara’s initial appearances.  Defendants are currently scheduled for trial on March 4, 2023, before U.S. District Court Judge Christopher C. Conner.

The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Michael A. Consiglio is prosecuting the case.

The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

# # #

SCRANTON – The Justice Department announced today that it has reached a settlement with Schuylkill County, Pennsylvania, to resolve the department’s claims in Doe et al. v. Schuylkill County et al., a lawsuit filed in the U.S. District Court for the Middle District of Pennsylvania alleging violations of Title VII of the Civil Rights Act of 1964 (Title VII).

The consent decree resolves the department’s allegations that County Commissioner George F. Halcovage, Jr., sexually harassed four female employees and that those employees suffered retaliation when they opposed Halcovage’s sexual harassment. The complaint also alleged multiple incidents of sexual advances, coercion of sexual intercourse, and inappropriate sex-based comments occurring over many years.  

“All people deserve to go to work each day without fear of sexual harassment and retaliation when they oppose that harassment,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This resolution sends a clear message that the Justice Department will not tolerate sexual harassment and retaliation especially when it is perpetrated by an elected official who abuses the powers of their office.”   

“Today, by this consent decree, we emphasize that local governments must have comprehensive policies and training to prevent sexual harassment and retaliation by public servants,” said U.S. Attorney Gerard M. Karam.  “No official can abuse their power and position to a workforce they were elected to supervise, and this settlement provides steps the County must take to prevent and address this abusive behavior.”

Under the terms of the consent decree, if approved by the court, the County will, among other things, retain a consultant from a list of consultants approved by the Justice Department.  The consultant will conduct a workplace climate survey, propose improvements to the County’s equal employment opportunity policies, and develop a new sexual harassment training program.  The consent decree also includes restrictions on Commissioner Halcovage, who has refused to resign from his position and who can only be removed, under state law, through impeachment in the Pennsylvania House of Representatives and conviction in the Pennsylvania Senate.    

The four women harassed by Halcovage, who have additional claims under state and federal law against Schuylkill County and several individual Defendants, will continue to pursue their claims.

This lawsuit is part of the Civil Rights Division’s Sexual Harassment in the Workplace Initiative.  The Initiative is aimed at eradicating sexual harassment in state and local government workplaces. It focuses on litigation, outreach, and development of effective remedial measures to address and prevent future sex discrimination and harassment.

Trial Attorneys Allan Townsend and Amber Trzinski Fox of the Civil Rights Division’s Employment Litigation Section and by Assistant U.S. Attorney Michael Butler of the U.S. Attorney’s Office for the Middle District of Pennsylvania prosecuted this case. 

The full and fair enforcement of Title VII is a top priority of the Civil Rights Division’s Employment Litigation Section.  Additional information about the Civil Rights Division and the Employment Litigation Section is available on its websites www.justice.gov/crt and www.justice.gov/crt/employment-litigation-section.   

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Esteban Latorre-Cacho, age 37, of Lockport, New York, pleaded guilty on January 10, 2023, before U.S. District Court Judge Christopher C. Conner, to the charge of possession with intent to distribute more than five kilograms of cocaine.

According to United States Attorney Gerard M. Karam, Latorre-Cacho admitted to possessing 67 kilograms of cocaine for further distribution. The charge stems from an incident on April 30, 2021, in which members of the Pennsylvania State Police made a traffic stop of a vehicle in Lehigh County.  Latorre-Cacho was the sole occupant of the vehicle.  A subsequent search of the vehicle resulted in the seizure of 67 kilograms of cocaine found hidden inside boxes within the vehicle.  Further investigation showed that Latorre-Cacho had picked up the boxes containing the cocaine at a location within the Middle District of Pennsylvania.  

The investigation was conducted by the Pennsylvania State Police and the Drug Enforcement Administration.  Assistant United States Attorney Robert J. O’Hara is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun

violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The charge carries a mandatory minimum sentence of ten years in prison.  The maximum penalty under federal law is up to life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances, and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational, and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

###

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Usbaldo Padilla, age 49, of Los Angeles, California, was indicted by a federal grand jury on an escape charge. 

According to United States Attorney Gerard M. Karam, the indictment alleges that on October 11, 2022, Padilla escaped from the extended limits of his confinement from the United States Penitentiary Canaan, Waymart, Pennsylvania. Padilla had been furloughed to be transported by commercial bus to report to a halfway house in California to complete the term of his imprisonment.  Padilla failed to report as required.  Los Angeles police later arrested Padilla on November 11, 2022, while walking on a street, in Los Angeles, California.

The case was investigated by the United States Marshals and the Bureau of Prisons. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.

The maximum penalty under federal law for this offense is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

# # #

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Emmanuel Tenneh, age 29, an alien who resided in Lancaster County, Pennsylvania, was sentenced on January 10, 2022, to 12 months’ imprisonment to be followed by one year on supervised release by U.S. District Court Judge Robert D. Mariani, for hindering his deportation from the United States.

According to United States Attorney Gerard M. Karam, Tenneh is a native of Liberia who was admitted into the United States as a refugee in 2004. Since the time of being admitted into the United States, Tenneh was convicted of several crimes including felony drug distribution, simple assault, driving under the influence, and firearms violations. Tenneh was ordered deported to his home country of Liberia by an immigration court but refused to cooperate in his deportation. After serving his sentence, Tenneh will face deportation.

The case was investigated by the Homeland Security Investigations. Assistant U.S. Attorney Todd K. Hinkley prosecuted the case.

# # #

SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on January 10, 2023, United States District Judge Robert D. Mariani sentenced Juan Esdrada-Beret, age 41, a native and citizen of Mexico, to 8 months’ imprisonment, for illegally reentering the United States after being previously removed following a prior illegal reentry conviction.

According to United States Attorney Gerard M. Karam, after two prior removals from the United States to Mexico, Esdrada-Beret was arrested in 2017 in Schuylkill County and prosecuted in the Middle District of Pennsylvania for Illegal Reentry.  He was sentenced to a period of imprisonment of time served (113 days) on April 10, 2018 and removed through Hidalgo, Texas on April 25, 2018. Sometime thereafter, Esdrada-Beret once again reentered the United States without the required permissions. 

This case was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Jeffery St John prosecuted the case.

# # #

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Demetrius Taylor, age 30, of Patterson, New Jersey, and Joseph Decker, age 28, of Monroe County, Pennsylvania, were sentenced by U.S. District Court Judge Malachy E. Mannion for heroin/fentanyl trafficking offenses resulting in death. Taylor received a sentence of 240 months in prison and Decker was sentenced to 180 months in prison.

According to United States Attorney Gerard M. Karam, both Decker and Taylor previously pleaded guilty to distribution and possession with intent to distribute heroin and fentanyl, resulting in death.  On February 21, 2020, Taylor distributed heroin and fentanyl to Decker, who subsequently distributed the heroin and fentanyl to an individual who, in turn, shared it with a 32-year-old woman.  The woman overdosed and died on February 26, 2020 after ingesting the drugs. 

On July 18, 2022, Taylor and Decker’s co-conspirator, Mary Keiper, age 27, of Monroe County, pleaded guilty to conspiring to distribute and possesses with intent to distribute more than 100 grams of heroin and fentanyl and is awaiting sentencing.

The charges stem from a joint investigation involving the Federal Bureau of Investigation (FBI) in Scranton, the Pennsylvania State Police, and the Pocono Mountain Regional Police Department.  United States Attorney Michelle Olshefski is prosecuting the case.

This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and fentanyl.  Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

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

# # #

SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Robert Semenza, Jr., age 47, of Old Forge, Pennsylvania, was sentenced by United States District Judge Malachy E. Mannion, to 12 months of imprisonment for committing bribery.

According to United States Attorney Gerard M. Karam, Semenza, the former President of the Old Forge Borough Council, pleaded guilty to soliciting, demanding, and accepting cash payments in exchange for performing and promising to perform official acts, between January 2019 and February 2020.  The official acts were in connection with a civil litigation filed by Old Forge Borough against a local business owner in a dispute over Old Forge zoning ordinances.  Semenza agreed, in exchange for cash payments, to vote on the local business owner’s behalf in matters before the Old Forge Borough Council, to advocate on behalf of the local business owner with the Old Forge Borough Council, the Old Forge Borough Solicitor, and Old Forge zoning officials, and to propose a favorable resolution for the civil litigation to the Old Forge Borough Council and Solicitor, among other things.

Judge Mannion also imposed one year of supervised release on Semenza, following his term of imprisonment.  In pronouncing the sentence, Judge Mannion highlighted the negative effect that the public corruption offense had on the public’s trust in its elected officials.

Semenza’s conspirator, James J. Peperno, Jr., was convicted following a jury trial, of conspiracy, federal program bribery, honest services wire fraud, Travel Act, false statement, and perjury offenses. Peperno is awaiting sentencing.

The case was investigated by the Scranton Federal Bureau of Investigation’s Public Corruption Task Force, which consists of members of the Pennsylvania State Police and the Pennsylvania Attorney General’s Office, and federal agents from the FBI and Internal Revenue Service.  Assistant U.S. Attorneys Phillip J. Caraballo and Jeffrey St John prosecuted the case.

# # #

SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Javier Correa, age 41, of Scranton, Pennsylvania, was sentenced on January 3, 2023, to 210 months’ imprisonment by U.S. District Court Judge Malachy E. Mannion, for possession with intent to distribute more than 50 grams of methamphetamine and more than 400 grams of fentanyl.

According to United States Attorney Gerard M. Karam, on April 29, 2021, following a confidential tip, state parole and Drug Enforcement Administration agents searched Correa’s Scranton residence and seized 174 grams of methamphetamine, 611 grams of fentanyl, a loaded Bersa 9mm handgun, firearm magazines, ammunition, and $30,427.25.  

This case was investigated by DEA, the Scranton Police Department, and the Pennsylvania State Parole officers.  Assistant U.S. Attorneys Geoffrey W. MacArthur and Brian Gallagher prosecuted the case.

This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department

launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

# # #

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeremy Edward Johnson, age 31, of Stroudsburg, Pennsylvania, was sentenced to 300 months in prison by U.S. District Court Judge Malachy E. Mannion following his conviction for conspiring to distribute and possess with intent to distribute heroin and fentanyl within the Middle District of Pennsylvania, resulting in the death of a person.

According to United States Attorney Gerard M. Karam, Johnson and Nickas were engaged in a conspiracy to obtain and distribute controlled substances, heroin and fentanyl, for the time beginning January 2020 through March 2021, which resulted in a death.  Both defendants were also found guilty of aiding and abetting each other in the December 10, 2020 distribution of heroin and fentanyl, resulting in that death.

Prosecutors from the U.S. Attorney’s Office presented the testimony of multiple witnesses during trial, including Dr. Michael Coyer, a Forensic Toxicologist, who opined that death resulted from the use of heroin and fentanyl; and a PSP Forensic Chemist, who analyzed drugs found at the scene of the death.  Additional testimony was provided by officers and detectives from the Monroe County District Attorney’s Office; the Pennsylvania State Police; the Pocono Township Police Department, the FBI – Scranton Office; and an FBI special agent from the Pittsburgh Office.

Nickas is currently scheduled to be sentenced on February 3, 2023.

The charges stem from a joint investigation involving the FBI in Scranton, the Pennsylvania State Police, and the Monroe County District Attorney’s Office.  Assistant United States Attorneys Michelle Olshefski and Sean Camoni prosecuted the case.

This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and fentanyl.  Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

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

# # #

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that William Heck, age 41, of Hazleton, Pennsylvania, pleaded guilty on January 5, 2023, before U.S. District Court Judge Malachy E. Mannion, to a charge of possession with intent to distribute more than fifty grams of methamphetamine and additional amounts of fentanyl.

According to United States Attorney Gerard M. Karam, Heck admitted to possessing more than fifty grams of methamphetamine and additional amounts of fentanyl for distribution in the Hazleton area of Luzerne County in 2020.  The charges stem from an incident on October 2, 2020, in which members of the Pennsylvania State Police served a search warrant at a residence in Hazleton, where Heck was living, and seized 226 grams of methamphetamine, 2,464 packets of fentanyl, $4,452 in U.S. currency, and other items of drug paraphernalia.

The charges resulted from an investigation conducted by the Pennsylvania State Police and the FBI Safe Streets Task Force.  Assistant United States Attorney Robert J. O’Hara is prosecuting the case.

This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

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

Under federal law, Heck faces a mandatory minimum sentence of five years in prison for the drug trafficking charge, up to a maximum sentence of forty years in prison, a term of supervised release following imprisonment, and a fine.  A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

###

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Shakier Jamean Kingsley, age 31, of Allentown, Pennsylvania, was sentenced yesterday to 180 months’ imprisonment to be followed by 5 years on supervised release by U.S. District Court Judge Malachy E. Mannion, for possession with intent to distribute fentanyl.

According to United States Attorney Gerard M. Karam, Kingsley was encountered by the Pennsylvania State Police while driving on State Route 901, Barry Township, Pennsylvania. When police attempted to pull Kingsley’s vehicle over, he refused to stop resulting in a highspeed chase.  Kingsley drove his vehicle along various roads near and through Minersville Borough placing the public at risk. During the chase police witnessed Kingsley’s passenger throw several objects out of the passenger side window of the vehicle.  Kingsley’s vehicle was eventually stopped using spike strips which disabled his vehicle. During the chase, at least two stationary vehicles were struck by Kingsley, and a police cruiser was damaged when it collided with Kingsley’s vehicle to stop him. Police retraced the route and discovered that Kingsley’s passenger had thrown more than 500 grams of fentanyl and heroin and two loaded firearms out the car’s window during the pursuit.

The case was investigated by the DEA and the Pennsylvania State Police. Assistant U.S. Attorneys Samuel Dalke and Todd K. Hinkley prosecuted the case.

This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

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

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Juan Carlos Delcid-Diaz, age 33, of Honduras, was indicted yesterday by a federal grand jury on a charge of Illegal Reentry.

According to United States Attorney Gerard M. Karam, the indictment alleges that Delcid-Diaz was removed from the United States on or about November 3, 2008, through San Antonio, Texas, and it is alleged that he reentered the United States without first obtaining legal permission to do so.  The indictment also alleges that on September 28, 2022, Delcid-Diaz was encountered in York County, Pennsylvania.           

The case was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO).  Assistant U.S. Attorney Jaime M. Keating is prosecuting the case.

The maximum penalty under federal law for this offense is two years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

# # #

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that United States District Court Judge Malachy E. Mannion sentenced Mariluz Arias De Gonzalez (“Arias”), age 49, of Hazleton, Pennsylvania, to 12 months and 1 day of imprisonment and a 3-year term of supervised release, for distribution of methamphetamine.

According to United States Attorney Gerard M. Karam, on two occasions on February 10, 2020, Arias distributed over 50 grams of methamphetamine in the Hazleton area.  Arias, a Dominican national, obtained the methamphetamine from a known Hazleton-based drug trafficker, who had previously fled to the Dominican Republic to avoid prosecution.   

The matter was investigated by the Drug Enforcement Administration (DEA).  Assistant U.S. Attorney Jeffery St John prosecuted the case.

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

# # #

WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Larry Todd Wilcox, age 55, of Berwick, Pennsylvania, was indicted on December 8, 2022, by a federal grand jury on drug trafficking charges. The case was unsealed following Wilcox’s arrest.

According to United States Attorney Gerard M. Karam, the indictment charges Wilcox with possession with intent to distribute and distribution of 50 grams and more of actual methamphetamine on July 26, 2022, in Columbia County.  Wilcox is also charged with possession with intent to distribute and distribution of 50 grams and more of a mixture and substance containing methamphetamine on November 3, 2022, in Luzerne County.

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

This case was investigated by the Federal Bureau of Investigation.  Assistant U.S. Attorney Alisan V. Martin is prosecuting the case.

The maximum penalty under federal law for the most significant offense is life imprisonment, a period of supervised release, and a fine.  A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Indictments are only allegations. All persons charged by indictment are presumed to be innocent unless and until found guilty in court.

# # #

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 19, 2022, Algernon Donte Martin, age 26, of Bronx, New York, was sentenced to 16 months’ imprisonment by U.S. District Court Judge Christopher C. Conner following his conviction for bank fraud.  Judge Conner also ordered Martin to pay victims restitution in the amount of $82,969.06, and to serve three years of supervised release following his release from prison.

According to United States Attorney Gerard M. Karam, Martin was a member of a conspiracy in which he and others stole mail from postal boxes, rifled that mail to find checks that had been made payable to third parties, and then altered the checks and deposited them in other bank accounts.  The conspiracy was formed in the New York City area, and its reach extended into central Pennsylvania.  The investigation identified at least 40 stolen checks, of which 19 had been cashed, resulting in financial losses to victims.  The conspiracy involved the participation of Kazaria Blair, age 32, a U.S. Postal Service employee working in the Harrisburg area.  Blair provided the conspirators access to a postal key that enabled them to open blue postal collection boxes to steal the mail.  She has pleaded guilty to conspiracy charges in relation to the scheme. 

Judge Conner previously sentenced two co-defendants: 

• Edward Hart, age 32, of Bronx, New York, was sentenced to 18 months in prison; and,
• Travis Terrell Price, age 27, of Allentown, Pennsylvania, was sentenced to serve four months in prison.

The case was investigated by the United States Postal Inspection Service – Harrisburg Office.  Assistant U.S. Attorney Christian T. Haugsby prosecuted the case.

# # #  

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeovanny Shultz, age 28, an inmate at the State Correctional Institution at Mercer, was sentenced by United States District Court Judge Christopher C. Conner to 11 months in prison for conspiring to steal pandemic funds.

According to United States Attorney Gerard M. Karam, Shultz pleaded guilty to conspiring with five others to file false claims for unemployment assistance during the pandemic. These defendants gathered personal identification information from inmates housed within the Pennsylvania Department of Corrections system and filed unemployment claims. The payments were mailed to particular addresses in New Cumberland, Pennsylvania, where the funds were accessed. Shultz arranged for the payment of approximately $11,000 in benefits which he was not entitled to obtain.

Andrew Marszalek, age 24, of New Cumberland, entered a guilty plea to the fraud conspiracy and was sentenced to 18 months in prison.  Nicholas Baggio, age 32, an inmate at the State Correctional Institution at Mahanoy, entered a guilty plea to conspiracy to commit mail fraud and was sentenced to one year and a day in prison.  Alexis Figueroa, age 32, of Philadelphia, entered a guilty plea to the fraud conspiracy and was sentenced to 18 months in prison. Oscar Martinez, age 30, an inmate at State Correctional Institution at Rockview, pleaded guilty and is awaiting sentencing.  Joseph Powles, age 33, of Philadelphia, is wanted as a fugitive.

The case was investigated by the U.S. Postal Inspection Service and the United States Department of Labor Office of Inspector General. Assistant U.S. Attorney Michael Consiglio is prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies

across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

All persons charged are presumed to be innocent unless and until found guilty in court.

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ricardo Soto-Delgado, age 48, of Harrisburg, Pennsylvania, was sentenced on December 15, 2022, to 18 years’ imprisonment by United States District Court Judge Christopher C. Conner for cocaine trafficking.

According to United States Attorney Gerard M. Karam, Soto-Delgado entered a guilty plea for his role in a conspiracy to have kilograms of cocaine shipped into Harrisburg, Pennsylvania through the United States Postal Service.  Between April 2018 and November 2019, Soto-Delgado had approximately 35 kilos of cocaine shipped from Puerto Rico to various addresses in Cumberland and Dauphin Counties.  Postal Inspectors uncovered the drug trafficking operation after they intercepted parcels destined for the addresses.

His codefendant, Becky Cro, pleaded guilty to assisting Soto-Delgado. She was sentenced to six months in prison.

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

The case was investigated by the U.S. Postal Inspection Service and the Pennsylvania State Police. Assistant U.S. Attorney Michael A. Consiglio prosecuted the case.

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Scott E. Boone, age 51, of Enola, PA, Daniel E. McGuire, age 60, of Landisville, PA, Thomas E. Lauer, age 60, of Butler, PA, and Rebecca J. Davis, age 73, of Bethel Park, PA, were indicted yesterday by a federal grand jury on six counts of violating the Major Fraud Act and two counts of conspiracy to defraud the United States and to commit violations of the Major Fraud Act. 

According to United States Attorney Gerard M. Karam, the indictment alleges that between 2003 and 2014, all four defendants conspired to obtain and did obtain federal government contracts reserved for companies run by socially and economically disadvantaged individuals through the U.S. Small Business Administration’s 8(a) Business Development Program.  This program required socially and economically disadvantaged individuals to exercise unconditional control over their own companies.  It also required these companies to commit to performing at least 15% of the cost of any contract with their own employees.  When companies met these criteria, they could enter the program for a period of up to nine years and then bid on contracts reserved for companies in the 8(a) Program.  These reserved contracting opportunities are often referred to as “set-aside” contracts.

Rebecca J. Davis was the president of a company called Elstner Construction Company.  Davis and her company were admitted to the SBA’s 8(a) Program in 2001.  Starting around 2007, she and the other defendants allegedly began conspiring to get construction contracts at Letterkenny Army Depot, a facility under the command structure of the U.S. Army Aviation and Missile Command, that were set aside for 8(a) Program participants.  With the assistance of an unnamed government official working at Letterkenny Army Depot, these four individuals allegedly obtained contracts on which Davis and her existing employees played no meaningful role.  Instead, Boone, McGuire, and Lauer allegedly ran all of the contract work, and Davis’s role was allegedly limited to signing checks for vendors, suppliers, and subcontractors.  According to the indictment, Davis was rarely, if ever, present at Letterkenny Army Depot following an initial meeting with her codefendants and the unnamed government official in 2007.

In order to make it appear falsely that Elstner Construction was meeting the 15% self-performance requirement, she and the other defendants allegedly moved actual laborers who were on site at Letterkenny Army Depot onto the Elstner Construction payroll.  The unnamed government official assisting them to secure contracts was allegedly aware of this practice and, more generally, was aware that Davis and her existing employees were not performing on-site work. 

The indictment also alleges that the unnamed government official provided Boone with confidential information in an effort to assist the four defendants, acting through Elstner Construction, to win a $60 million construction contract in 2009. 

The indictment alleges that the four defendants together obtained approximately $85 million in construction contracts at Letterkenny Army Depot through fraudulent means.  The indictment contains forfeiture allegations against the four defendants seeking the same amount. 

In addition, three defendants—Boone, McGuire, and Lauer—were indicted for conspiring to obtain and obtaining a contract at the VA Medical Center in Salem, Virginia worth approximately $5.3 million through fraudulent means.  Boone, McGuire, and Lauer were able to obtain this contract because Boone qualified for a different small business development program focused on service-disabled veteran owned small businesses (SDVOSBs).  Boone’s SDVOSB, Bon Secour Management, allegedly obtained this contract and then moved employees of an electrical subcontractor onto its payroll in order to make it appear that Bon Secour was complying with its own similar requirement to perform at least 15% of the labor under the contract with its own employees.

The indictment contains forfeiture allegations seeking approximately $5.3 million from Boone, McGuire, and Lauer, in addition to the approximately $85 million in forfeiture alleged against all four defendants.

“Investigating schemes that undermine the integrity of Department of Defense (DoD) procurement is a top priority for the DoD Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office.  “Today’s announcement demonstrates our commitment to work with the Department of Justice and our law enforcement partners to ensure that the contracting process for legitimate small businesses remains fair and competitive, and that individuals who abuse set-aside programs are held accountable.”

“We are very pleased with today’s announcement,” said Special Agent in Charge L. Scott Moreland, of the Department of the Army Criminal Investigation Division’s Major Procurement Fraud Field Office. “This is a true testament to the continued commitment of our special agents to work seamlessly with Department of Justice and our fellow law enforcement agencies to bring to justice those who attempt to defraud the U.S. Government and U.S. Army.”

“These allegations of conspiring to gain federal contracts set aside for service-disabled veterans are something the VA Office of Inspector General investigates very vigorously,” said Special Agent in Charge Christopher Algieri with the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “VA OIG is committed to identifying and stopping those individuals who would misuse an opportunity meant solely for our nation’s veterans with disabilities.  We appreciate the efforts of the Department of Justice, and our law enforcement partners for their work leading to today’s charges.”

The case was investigated by the U.S. Department of Defense Office of Inspector General’s Defense Criminal Investigative Service, Department of the Army Criminal Investigation Division, U.S. Department of Veterans Affairs Office of Inspector General, and the U.S. Small Business Administration Office of Inspector General.  Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.

The maximum penalty under federal law for violations of the Major Fraud Act is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine.  The maximum penalty under federal law for conspiracy is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine.  A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

# # #

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ernesto Richards, age 36, formerly of Wilkes-Barre, Pennsylvania, was charged yesterday by a federal grand jury with narcotics trafficking, firearms, and false statement offenses.

According to United States Attorney Gerard M. Karam, the indictment alleges that Richards conspired to distribute cocaine and crack cocaine in Luzerne County between February and September 2022.  During that time, it is alleged that Richards also conspired to import cocaine from foreign countries, and possessed firearms, including a stolen firearm, in relation to his drug trafficking activities.  In addition to being charged with a narcotics conspiracy, Richards also was charged with three counts of distributing and possessing with intent to distribute cocaine and crack cocaine.  Richards further was charged with possessing firearms in furtherance of his drug trafficking activities, and with possessing firearms and ammunition despite being prohibited as a convicted felon. Richards was also charged with lying to federal agents about his drug trafficking activities.

The case was investigated by Homeland Security Investigations and the Pennsylvania State Police.  Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.

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

The penalties under federal law for the most serious narcotics charges are a minimum of five years and maximum 40-year term of imprisonment, a term of supervised release following imprisonment, and a fine.  The most serious firearms charge carries a mandatory five-year term of imprisonment and maximum term of life, to run consecutive to any other term of imprisonment imposed, a term of supervised release following imprisonment, and a fine.  The false statement charges carry up to a five-year term of imprisonment, a term of supervised release following imprisonment, and a fine.  A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

# # #

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 13, 2022, John Bartel, age 63, of Pottsville, Pennsylvania, was indicted by a federal grand jury for methamphetamine and fentanyl trafficking.

According to United States Attorney Gerard M. Karam, the indictment charges Bartel with possession with intent to distribute more than fifty grams of methamphetamine and an additional amount of fentanyl, on August 3, 2022, in Schuylkill County. 

The investigation was conducted by the Pennsylvania State Police and Federal Bureau of Investigation’s Safe Streets Task Force. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.

This case was prosecuted as part of a district wide initiative to combat the nationwide

epidemic regarding the use and distribution of heroin and other opioids. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin and opioid traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit opioid trafficking offenses.

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

The charge carries a mandatory minimum sentence of five years in prison. The maximum sentence under federal law is up to forty years in prison, a term of supervised release and a fine.  A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

###

SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Mason Morey, age 26, of Lebanon, Pennsylvania, was indicted yesterday by a federal grand jury on a charge of attempted online enticement. 

According to United States Attorney Gerard M. Karam, the indictment alleges that between November 28, 2022 and December 8, 2022, in Luzerne County, Morey used the internet to attempt to entice a minor to engage in sexual activity.

The case was investigated by Homeland Security Investigations (HSI). Assistant U.S. Attorney Jenny P. Roberts is prosecuting the 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 justice.gov/psc.

The maximum penalty under federal law for this offense is lifetime imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 8, 2022, James A. Coccagna, age 67, of Chambersburg, Pennsylvania, pleaded guilty before United States Magistrate Judge Martin C. Carlson to a criminal information charging him with one count of conspiracy to commit violations of the Major Fraud Act.

According to United States Attorney Gerard M. Karam, between 2003 and 2014, Coccagna, then Chief of the Engineering and Planning Division in the Directorate of Public Works at Letterkenny Army Depot, in Chambersburg, worked with a number of unnamed coconspirators to defeat the rules and purpose of the U.S. Small Business Administration’s 8(a) Business Development Program. Coccagna admitted to steering federal government contracts to certain participants in the 8(a) Program, knowing that those companies and their existing employees, if any, were not playing any meaningful role in performing contracts awarded to them.

The 8(a) Program requires socially and economically disadvantaged individuals to exercise unconditional control over their own companies. It also requires these companies to commit to performing at least 15% of the cost of any contract with their own employees. When companies meet these criteria, they can enter the 8(a) Program for a period of up to nine years and then bid on contracts reserved for companies in the 8(a) Program. These reserved contracting opportunities are often referred to as “set-aside” contracts.

Coccagna admitted to conspiring with three individuals who worked in the field of construction—known in the information as coconspirator 1, coconspirator 2, and coconspirator 3—to get set-aside contracts at Letterkenny awarded to a series of 8(a) Program participants controlled by the three unnamed individuals. These 8(a) Program participants included a company known as 8(A) company 1, which was affiliated with another unnamed individual known as coconspirator 4 in the information.

Starting around 2007, Coccagna and coconspirators 1, 2, 3, and 4 began conspiring to obtain 8(a) Program set-aside construction contracts at Letterkenny Army Depot, a facility under the command structure of the U.S. Army Aviation and Missile Command. Coccagna recommended that the Letterkenny contracting office select 8(A) company 1 for a series of contracts because he knew of 8(a) company 1’s affiliation with coconspirator 1, coconspirator 2, and coconspirator 3. Coccagna made similar recommendations for several other 8(a) Program participants, likewise on the basis of their affiliation with coconspirator 1, coconspirator 2, and coconspirator 3.

In order to make it appear falsely that 8(A) company 1 was meeting the 15% self-performance requirement, coconspirators 1, 2, 3, and 4 moved actual laborers who were on site at Letterkenny Army Depot onto the 8(A) company 1 payroll. This same practice was also carried out with the other unnamed 8(a) Program participants dating back to 2003. Coccagna was aware of this practice and, more generally, was aware that coconspirator 4 and her existing employees, if any, were not performing on-site work. Furthermore, coconspirator 4 was rarely, if ever, present at Letterkenny Army Depot following an initial meeting with Coccagna and the other unnamed conspirators in 2007.

For several years starting around 2007, coconspirators 1, 2, and 3 were simultaneously affiliated with both 8(A) company 1 and one of the other 8(a) Program companies. Their representations about which company they were affiliated with depended on which contract a job fell under. From Coccagna’s perspective, however, the day-to-day performance of the work was unaffected by which company’s name coconspirators 1, 2, and 3 were operating under.

Coccagna also admitted that coconspirator 1 solicited, and Coccagna unlawfully provided to coconspirator 1, confidential information in order to help coconspirators 1, 2, 3, and 4 win a $60 million construction contract in 2009.

The total value of the contracts associated with this conspiracy exceeded $100 million. Coccagna understood that there was a financial benefit to the individuals who were, on paper, the heads of the various 8(a) Program participants to which he steered maintenance and construction contracts, such as coconspirator 4.  

The case was investigated by the U.S. Department of Defense Office of Inspector General, Department of the Army Criminal Investigation Division, U.S. Department of Veterans Affairs Office of Inspector General, and the U.S. Small Business Administration Office of Inspector General. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.

The maximum penalty under federal law for conspiracy is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

# # #

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dr. Martin Evers, age 64, of Pike County, Pennsylvania, was found guilty on December 5, 2022, for unlawfully distributing controlled substances resulting in death, after a three-week trial before U.S. District Court Judge Robert D. Mariani.

According to United States Attorney Gerard M. Karam, Evers was found guilty on 71 counts of unlawful distribution of controlled substances, as charged in the superseding indictment.  The counts involved the unlawful distribution of oxycodone, fentanyl and methadone, all Schedule II controlled substances, and diazepam, a Schedule IV controlled substance.  One of the counts of which Evers was convicted involved the unlawful distribution of oxycodone and fentanyl that resulted in the death of a 48-year-old Monroe County woman on February 11, 2019.

During the three-week trial, prosecutors from the U.S. Attorney’s Office presented the testimony from the Drug Enforcement Administration (DEA) - Diversion Division, six pharmacists who refused to fill prescriptions issued by Evers, a Walmart Global Investigations witness who offered testimony related to Walmart’s issuance of a nationwide ban for filling all narcotic prescriptions issued by Evers, an expert on pain medicine, an expert toxicologist, an expert pathologist, a Pennsylvania State Police Officer, and a witness from the Monroe County Coroner’s Office.

Evers was an employee of the Bon Secours Charity Health System and practiced as a primary care physician in Milford, Pennsylvania.  He was licensed in the Commonwealth of Pennsylvania and authorized to prescribe controlled substances for legitimate medical purposes and in the usual course of professional practice.  His medical license was suspended on September 4, 2019.

The jury found that Evers repeatedly prescribed oxycodone and other opioids outside the usual course of professional practice and not for legitimate medical purposes and as a result, addiction and death occurred.

After the jury’s verdict, prosecutors asked that Evers be immediately detained pending sentencing.  Judge Mariani ordered Evers detained.

The two-year long investigation in this case was conducted by the Drug Enforcement Administration (DEA) and its Diversion Division, the Pennsylvania State Police, and the Pennsylvania Office of Attorney General.  Assistant U.S. Attorneys Michelle Olshefski and Jenny Robert prosecuted the case.

This case was prosecuted as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and other opioids. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin and opioid traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit opioid trafficking offenses.

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

The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Juan Carlso Flores-Ramirez, age 34, of Mexico, was indicted yesterday by a federal grand jury on a charge of illegal reentry.        

According to United States Attorney Gerard M. Karam, the indictment alleges that Flores-Ramirez was removed from the United States on or about August 10, 2012, through Hidalgo, Texas, and it is alleged that he reentered the United States without first obtaining legal permission to do so.  The indictment also alleges that on November 4, 2022, Flores-Ramirez was encountered in Juniata County, Pennsylvania.

The case was investigated by the U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant U.S. Attorney Jaime M. Keating is prosecuting the case.

The maximum penalty under federal law for this offense is 2 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

# # #

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Reynard Lewis, age 29, formerly of Nanticoke, Pennsylvania, was charged on December 6, 2022, by a federal grand jury with wire fraud conspiracy, wire fraud, aggravated identity theft, identification and access device, and false statement offenses.

According to United States Attorney Gerard M. Karam, the indictment alleges that Lewis and his coconspirators used stolen identities to create forged identification documents and credit and debit cards.  The conspirators used those forged items and stolen identities to open bank accounts, apply for lines of credit, and obtain retail merchandise.  The conspirators also used the stolen identities to apply for multiple COVID-19 pandemic relief loans issued under the Small Business Administration’s Paycheck Protection Program (PPP), including by submitted false federal tax documentation.  The conspirators allegedly received over $100,000 in pandemic stimulus funds.

The PPP is designed to help small businesses facing financial difficulties during the COVID-19 pandemic.  Funded by the March 2020 CARES Act, PPP funds are offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses.

Lewis previously was charged in a criminal complaint and arrested on September 16, 2022.  He has remained in detention since his arrest.  Lewis’s alleged coconspirator, Robert Brownstein, age 51, of Scranton, Pennsylvania, was previously charged in a criminal information with wire fraud conspiracy and aggravated identity theft.

The case was investigated by the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, and the Pottsville Bureau of Police. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The maximum penalty under federal law for the most serious offenses is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine.  The aggravated identity theft offenses carry a mandatory two-year sentence of imprisonment that is to run consecutive to any other term of imprisonment imposed.  A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Indictments and informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

# # #

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 2, 2022, Casian Amir Jackson-Flowers, age 22, of Pottsville, Pennsylvania, was sentenced to 60 months’ imprisonment by United States District Court Judge Malachy E. Mannion for drug trafficking and firearm offenses.

According to United States Attorney Gerard M. Karam, Jackson-Flowers previously pleaded guilty to possessing with the intent to distribute over 50 grams and more of methamphetamine and 40 grams and more of fentanyl, as well as possessing a firearm with an obliterated serial number.  On October 2, 2021, in Schuylkill County, Pennsylvania, Jackson-Flowers possessed approximately 158 grams of methamphetamine, 111 grams of fentanyl, and 53 grams of marijuana in a bookbag which he threw away while being chased by officers of the Pottsville Police Department.  Jackson-Flowers also possessed a 9mm Ruger P89 pistol with an obliterated serial number which was recovered in a backyard near where he was observed fleeing from the police.

The matter was investigated by the Federal Bureau of Investigation (FBI), the Schuylkill County District Attorney’s Office, and the Pottsville Police Department.  Assistant United States Attorney James Buchanan prosecuted the case.

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

This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.  Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

# # #

WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Cody Drumheller, age 28, of Berwick, Pennsylvania, was sentenced on December 2, 2022, to 66 months’ imprisonment by United States District Court Chief Judge Matthew W. Brann for possessing firearms as a convicted felon.

According to United States Attorney Gerard M. Karam, in July 2021, Drumheller possessed a stolen 9mm handgun and two sawed-off 12-gauge shotguns, in Berwick, Pennsylvania.  Drumheller is prohibited from possessing firearms based on prior convictions.        

This case was investigated by the Bureau of Alcohol, Tobacco and Firearms, and the Pennsylvania State Police.  Assistant U.S. Attorney Geoffrey W. MacArthur prosecuted the case.

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

# # #

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Alex Ulloa, age 46, an inmate at Federal Correctional Institute-Schuylkill, Minersville, Pennsylvania, was charged by criminal information for unlawfully possessing a prohibited object.

According to United States Attorney Gerard M. Karam, the information alleges that on September 9, 2022, Ulloa possessed a Samsung cellphone.  Federal law makes the possession of cell phones by an inmate in prison illegal out of security concerns that arise from unmonitored calls.

The matter is being investigated by the Federal Bureau of Prisons and Federal Bureau of Investigations. United States Attorney Sean A. Camoni is prosecuting the case.

The maximum penalty under federal law for this offense is one year of imprisonment.    A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Criminal informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that James A. Coccagna, age 67, of Chambersburg, Pennsylvania, was charged by criminal information on one count of conspiracy to commit violations of the Major Fraud Act. 

According to United States Attorney Gerard M. Karam, the indictment alleges that between 2003 and 2014, Coccagna, then Chief of the Engineering and Planning Division in the Directorate of Public Works at Letterkenny Army Depot, in Chambersburg, worked with a number of unnamed coconspirators to defeat the rules and purpose of the U.S. Small Business Administration’s 8(a) Business Development Program. It is alleged that Coccagna steered federal government contracts to certain participants in the 8(a) Program, knowing that those companies and their existing employees, if any, were not playing any meaningful role in performing contracts awarded to them.

The 8(a) Program requires socially and economically disadvantaged individuals to exercise unconditional control over their own companies.  It also requires these companies to commit to performing at least 15% of the cost of any contract with their own employees.  When companies meet these criteria, they can enter the 8(a) Program for a period of up to nine years and then bid on contracts reserved for companies in the 8(a) Program.  These reserved contracting opportunities are often referred to as “set-aside” contracts.

The information alleges that for over a decade Coccagna conspired with three individuals who worked in the field of construction—known in the information as coconspirator 1, coconspirator 2, and coconspirator 3—to get set-aside contracts at Letterkenny awarded to a series of 8(a) Program participants controlled by the three unnamed individuals.  These 8(a) Program participants included a company known as 8(A) company 1, which was affiliated with another unnamed individual known as coconspirator 4 in the information.

Starting around 2007, it is alleged that Coccagna and coconspirators 1, 2, 3, and 4 began conspiring to obtain 8(a) Program set-aside construction contracts at Letterkenny Army Depot, a facility under the command structure of the U.S. Army Aviation and Missile Command.  Coccagna allegedly recommended that the Letterkenny contracting office select 8(A) company 1 for a series of contracts because he knew of 8(a) company 1’s affiliation with coconspirator 1, coconspirator 2, and coconspirator 3.  It is furthermore alleged that Coccagna made similar recommendations for several other 8(a) Program participants, likewise on the basis of their affiliation with coconspirator 1, coconspirator 2, and coconspirator 3.

In order to make it appear falsely that 8(A) company 1 was meeting the 15% self-performance requirement, coconspirators 1, 2, 3, and 4 allegedly moved actual laborers who were on site at Letterkenny Army Depot onto the 8(A) company 1 payroll.  This same practice was allegedly carried out with the other unnamed 8(a) Program participants dating back to 2003.

It is alleged that Coccagna was aware of this practice and, more generally, was aware that coconspirator 4 and her existing employees, if any, were not performing on-site work.  It is furthermore alleged that coconspirator 4 was rarely, if ever, present at Letterkenny Army Depot following an initial meeting with Coccagna and the other unnamed conspirators in 2007.

The information also alleges that coconspirator 1 solicited, and Coccagna provided, confidential information to coconspirator 1 in order to help coconspirators 1, 2, 3, and 4 win a $60 million construction contract in 2009.  The total value of the contracts associated with this alleged conspiracy exceeded $100 million. 

The case was investigated by the U.S. Department of Defense Office of Inspector General, Department of the Army Criminal Investigation Division, U.S. Department of Veterans Affairs Office of Inspector General, and the U.S. Small Business Administration Office of Inspector General.  Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.

The maximum penalty under federal law for conspiracy is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine.  A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Criminal informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

# # #

WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 29, 2022, James Edward King, III, age 45, of Danville, Pennsylvania, was sentenced by United States District Court Chief Judge Matthew W. Brann, to 210 months’ imprisonment for methamphetamine trafficking.

According to United States Attorney Gerard M. Karam, King was convicted on July 21, 2022, of conspiracy to distribute 50 grams and more of a mixture and substance containing methamphetamine. The investigation began based on information that King and his codefendant, Christopher Lee Brown, age 42, of Mifflinburg, Pennsylvania, were having a large quantity of methamphetamine delivered through UPS to Union County, Pennsylvania, for distribution. The Pennsylvania State Police intercepted the shipment and arrested both King and Brown.

On June 16, 2022, Brown pleaded guilty, to conspiracy to distribute 50 grams and more of a mixture or substance containing methamphetamine. Brown is awaiting sentencing.

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

The case was investigated by the U.S. Drug Enforcement Administration (DEA) and the Pennsylvania State Police. Assistant U.S. Attorneys Jaime Keating and Alisan Martin are prosecuting the case.

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dr. Musaddiq Nazeeri, of Lebanon, Pennsylvania, has agreed to pay the United States $86,506.30 to resolve civil liability for alleged violations of the False Claims Act.

According to the United States Attorney Gerard M. Karam, between February 10, 2021 and January 21, 2022, Dr. Nazeeri billed Medicare for certain services that were not supported by the medical record. During the above timeframe, Dr. Nazeeri submitted Evaluation & Management (E&M) claims when the only service rendered was the administration of the COVID-19 vaccine. It is those type claims that were not supported by the medical record.  Dr. Nazeeri cooperated with the investigation.

“The U.S. Attorney’s Office is dedicated to combatting fraud and abuse impacting taxpayer-funded programs,” said United States Attorney Karam. “We use every tool at our disposal to do so, and this resolution reflects that commitment.”

“Investigating violations of the False Claims Act is a top priority,” said Maureen R. Dixon, Special Agent in Charge for the Office of the Inspector General, U.S. Department of Health and Human Services. “We will continue to work with the U.S. Attorney’s Office to ensure the integrity of the Medicare program.”

This Settlement Agreement is neither an admission of liability by Dr. Nazeeri nor a concession by the United States that its claims are not well founded.

This matter was investigated by the U.S. Department of Health and Human Services Office of Inspector General.  The investigation was handled by Assistant United States Attorney, Tamara Haken, and the Affirmative Civil Enforcement (ACE) Unit within the U.S. Attorney’s Office.

# # #

SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tomi Moscat-Lara, age 44, a native and citizen of the Dominican Republic, was sentenced by United States District Court Judge Malachy E. Mannion to 18 months’ imprisonment, for illegally reentering the United States after being previously removed following conviction for a felony offense.

According to United States Attorney Gerard M. Karam, in April of 2013, while residing in this country without legal status, Moscat-Lara was convicted of a cocaine trafficking offense.  After serving a 12-to-24-month county prison sentence for that offense, Moscat-Lara was deported.  Sometime thereafter, Moscat-Lara unlawfully reentered the United States, and on January 14, 2021, he was arrested in Luzerne County and charged with cocaine and fentanyl trafficking.  Following a guilty plea in the Luzerne County Court of Common Pleas to those charges, he was sentenced to a three-to-six-year imprisonment term.

Lara was charged with the illegal reentry offense in federal court.  He pleaded guilty to that offense.  Following the conclusion of his 18-month federal sentence imposed by Judge Mannion, Muscat-Lara will face deportation. 

This case was investigated by the U.S. Immigration and Customs Enforcement and Removal Operations (ERO).  Assistant United States Attorney Jeffery St John prosecuted the case.

# # #

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Darius Jamal Scott, age 45, of Tobyhanna, Pennsylvania, was indicted by a federal grand jury for drug trafficking offenses involving heroin, fentanyl, and cocaine.

According to United States Attorney Gerard M. Karam, the indictment alleges that from approximately April 2022 until June 15, 2022, Scott conspired with others to distribute heroin, fentanyl, and cocaine in the Monroe County area.    

The matter was investigated by Homeland Security Investigations (HSI) and the Pennsylvania Office of the Attorney General’s Bureau of Narcotics Investigations (BNI).  Assistant United States Attorney Jeffery St John is prosecuting the case.

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

This case is also being brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.  Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

The maximum penalty under federal law for this offense is 40 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Alexis Figueroa, age 32, of Philadelphia, was sentenced to 18 months in prison for conspiring to steal pandemic funds. She was sentenced by United States District Court Judge Christopher C. Conner.

According to United States Attorney Gerard M. Karam, Figueroa pled guilty to conspiring with five others to file false claims for unemployment assistance during the pandemic. These defendants gathered personal identification information from inmates housed within the Pennsylvania Department of Corrections system and filed unemployment claims. The payments were mailed to particular addresses in New Cumberland, Pennsylvania, where the funds were accessed. The conspirators arranged for the payment of approximately $94,000 in benefits which they were not entitled to obtain.

Andrew Marszalek, age 24, of New Cumberland, entered a guilty plea to the fraud conspiracy. He was sentenced to 18 months in prison.  Nicholas Baggio, age 32, an inmate at the State Correctional Institution at Mahanoy, entered a guilty plea to conspiracy to commit mail fraud. He was sentenced to one year and day in prison.  Jeovanny Shultz, age 28, an inmate at the State Correctional Institution at Mercer, entered a guilty plea and is awaiting sentencing. Oscar Martinez, age 30, an inmate at State Correctional Institution at Rockview, has also entered a guilty plea and is awaiting sentencing.

Joshua Powles, age 33, of Philadelphia, is wanted as a fugitive.

The case was investigated by the U.S. Postal Inspection Service and the United States Department of Labor Office of Inspector General. Assistant U.S. Attorney Michael Consiglio is prosecuting the case.

All persons charged are presumed to be innocent unless and until found guilty in court.    

# # #

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Al-Salaam I. Hale, age 46, of Hanover Township, Pennsylvania, was sentenced to 60 months in prison by U.S. District Court Judge Malachy E. Mannion, for distributing heroin.

According to United States Attorney Gerard M. Karam, Hale was intercepted during a DEA wire investigation communicating with coconspirators regarding heroin trafficking in the Wilkes-Barre, Pennsylvania area.  Hale also sold heroin to a confidential informant who was working with agents as part of the investigation. The investigation determined that Hale was responsible for distributing between 100 and 400 grams of heroin.

The DEA investigated the case. Assistant U.S. Attorney Todd K. Hinkley was the prosecutor.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun

violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

# # #

HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jose Dominguez, age 58, of the Dominican Republic, was sentenced today by U.S. District Court Judge Jennifer P. Wilson to 18 months’ imprisonment for conspiring to evade federal excise taxes on imported large cigars.  Dominguez was immediately remanded to the custody of the U.S. Marshal.

According to United States Attorney Gerard M. Karam, Dominguez owned and operated the Dominican-based cigar manufacturer Victor Sinclair Cigars.  Dominguez previously admitted that he conspired to evade the excise taxes imposed on the importation of Victor Sinclair manufactured cigars from 2009 to 2012.  Dominguez’s co-conspirators included his U.S. importers, Donna Venturini and Hope Carbone, both of East Stroudsburg, Pennsylvania.  During the conspiracy, Dominguez, Venturini, and Carbone collected approximately $3.9 million in excise taxes from U.S. purchasers of Victor Sinclair manufactured cigars.  By using fraudulent invoices, the co-conspirators paid only approximately $2.1 million to the government, unlawfully retaining approximately $1.8 million for themselves.  As part of his sentence, Dominguez was ordered to pay restitution.

Venturini and Carbone also pleaded guilty.  They were sentenced to two years of probation in August 2022.

The case was investigated by the Internal Revenue Service – Criminal Investigation and the Department of Treasury, Alcohol and Tobacco Tax and Trade Bureau.  Assistant U.S. Attorneys Carlo D. Marchioli, Joseph J. Terz, and Michael A. Consiglio prosecuted the case.

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 17, 2022, Daniel Gutman, age 40, and Benjamin Gutman, age 40. both residents of Maryland, were each sentenced by United States District Court Judge Jennifer P. Wilson to 30 months in prison for a conspiracy to defraud and commit offenses against the United States. Collectively, they were ordered to pay $1,938,646.42 in fines and forfeiture.

According to United States Attorney Gerard M. Karam, Daniel Gutman and Benjamin Gutman are brothers who own and operate a livestock exporting business known as Gutman Brothers Dairy Cattle (“Gutman Brothers”), with operations in Maryland and Pennsylvania.  Federal law requires cattle transported in interstate and foreign commerce to be tested for certain diseases prior to shipment, including Tuberculosis, Brucellosis, Leucosis, and Bovine Viral Diarrhea.  The United States Department of Agriculture certifies that U.S. agricultural and food products shipped to international markets meet both U.S. and foreign requirements. When it comes to dairy cattle, this process relies upon the services of USDA-accredited veterinarians and the animal exporters to whom these veterinarians provide services.

The USDA’s investigation revealed that Daniel Gutman and Benjamin Gutman, with the assistance of Dr. Donald Yorlets, a USDA-accredited veterinarian, conspired to carry out a scheme to defraud foreign customers and the USDA. They did so by submitting non-authentic, bovine blood samples for the detection of disease to a USDA-accredited testing laboratory located in Harrisburg, Pennsylvania and by issuing false and fraudulent health certificates for the untested animals. In addition, Yorlets also falsely claimed in health certificates that cattle had tested negative for Bovine Tuberculosis when, in fact, the required caudal skin fold test had not been administered. Furthermore, Yorlets submitted these false and fraudulent health certificates to a USDA Veterinary Services Endorsement Office. The USDA’s endorsement of these health certificates permitted dairy cattle to be shipped in interstate and foreign commerce.

Yorlets signed international health certificates for Gutman Brothers dating back to 2014. With his assistance, Daniel and Benjamin Gutman shipped close to 20,000 head of dairy cattle to buyers in foreign countries, making millions of dollars in profits.

Previously, Daniel and Benjamin Gutman pleaded guilty conspiracy to defraud the United States in connection with the scheme.  Likewise, on August 31, 2020, Yorlets pleaded guilty to a one-count criminal information charging him with conspiracy to defraud the United States. Yorlets currently awaits sentencing.

“Trade and commerce with our foreign and domestic partners require that all parties conduct themselves in a fair, legal, and transparent manner. Without trust in the system, there can be no trade. The Gutman brothers have broken this trust and damaged relations with our partners," said William S. Walker, Special Agent in Charge of HSI’s Philadelphia office.  “Thankfully, special agents with HSI and the USDA who focus on trade-based investigations were able to uncover this criminal conspiracy that impacted both the United States and our partner nations.”

“We appreciate the ongoing commitment and concerted efforts of our law enforcement partners at the U.S. Attorney’s Office and the Department of Homeland Security, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, as well as the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service, Investigative and Enforcement Services to investigate a long running scheme affecting the exportation of healthy animals from the U.S. and the illegitimate issuance of required health certificates based on fraudulent test results” said Special Agent-in-Charge Bethanne M. Dinkins of the U.S. Department of Agriculture (USDA), Office of Inspector General (OIG).  “In order to ensure integrity in international commerce, USDA, OIG will continue to dedicate resources and prioritize work that disincentivizes those who seek to take short cuts in order to increase their own profit margins while at the same time demeaning the value and safety of American agricultural products.” 

The case was investigated by the United States Department of Agriculture, Office of Inspector General and Homeland Security Investigations. Assistant U.S. Attorneys Ravi Romel Sharma and Philip J. Caraballo prosecuted the case. Now retired Assistant U.S. Attorney Kim Douglas Daniel previously worked on the case.  Assistance was provided by the Department of Justice’s Office of International Affairs and the FBI Legal Attaché for Qatar and Kuwait. 

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 16, 2022, John William “JW” Eddy, age 40, of Fayette County, Pennsylvania was sentenced by United States District Court Judge Sylvia H. Rambo to five years of probation, including 21 months of home detention with electronic monitoring, for misappropriating funds from clients of his law practice between 2016 and 2020.

According to United States Attorney Gerard M. Karam, Eddy ran a private law practice, Eddy Law Office. As an attorney representing members of the public in the practice of law, Eddy was required to maintain a trust account for client funds, also known as an Interest on Lawyer Trust Account or “IOLTA.” This account was to be used for the securing of client funds, such as proceeds from legal settlements, fees advanced for services not yet performed, or money for court fees.  Eddy admitted that between 2016 and 2020 he misappropriated $242,975.89 of client funds entrusted to him.

Eddy pleaded guilty to one count of wire fraud on February 9, 2022.  Prior to his guilty plea, Eddy made full restitution to his victims in the amount of $242,975.89, equal to the amount of client funds that he misappropriated.

The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.

# # #

SCRANTON - United States Attorney Gerard M. Karam today announced his office’s participation in the Department of Justice’s new initiative to better counter hate crimes and hate incidents in the Middle District of Pennsylvania.

The Middle District of Pennsylvania was one of the first of 16 U.S. Attorney Offices to launch the United Against Hate program. The United Against Hate initiative seeks to strengthen collaborative relationships of federal, state, and local law enforcement agencies with communities in order to build trust and encourage the reporting of hate crimes and hate incidents.  As part of the initiative, U.S. Attorney Karam hosted a meeting yesterday with an audience of various law enforcement agencies and community leaders from across the mid-state.

“The foundation of our democracy seeks for us all to have equal protection and opportunities under the law,” said U.S. Attorney Karam. “With the rising number of crimes occurring because of someone’s skin color, the faith they practice, who they love, or because they have a disability, we recognize the need to reach out to our community leaders and our state and local law enforcement colleagues to develop a partnership to combat acts of hate.  Through the United Against Hate initiative, we have combined the strengths of law enforcement with community leaders to identify, report, investigate, and prosecute hate crimes.”

At this initial event, subject matter experts from the United States Attorney’s Office, the Pennsylvania Attorney General’s Office; the Federal Bureau of Investigations, the Pennsylvania State Police, the York County District Attorney’s Office, the Anti-Defamation League, and other local law enforcement identified federal and state criminal hate crime statutes.  The audience was made up of groups of community leaders, civil rights advocates and organizations, and religious leaders of various faiths.  Presenters highlighted differences between hate crimes versus hate incidents and provided options for responding to hate incidents when situations do not constitute a federal or state crime. Presenters also distinguished unlawful conduct from protected First Amendment activity, including identifying protected speech versus speech that advocates violence or encourages people to commit hate crimes.

As part of its United Against Hate programming, the U.S. Attorney’s Office will continue to collaborate with communities across the Middle District of Pennsylvania to expand connections with those communities, further hate crimes prevention efforts, and encourage more people to report hate crimes and hate incidents.

Those who believe they are subject to hate crimes or incidents should contact local law enforcement and the FBI.  Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/. Anyone in the Middle District of Pennsylvania may also report civil rights violations to the Civil Rights coordinator of the U.S. Attorney’s Office for the Middle District of Pennsylvania by calling 717-614-4911 or emailing usapam.civil.rights@usdoj.gov.

# # #