Middle District of Pennsylvania

HARRISBURG – Two biofuel company owners were sentenced to prison for conspiracy and making false statements to the U.S. Environmental Protection Agency (EPA) and conspiracy to defraud the IRS and preparing a false tax claim announced U.S. Attorney David J. Freed for the Middle District of Pennsylvania, Principal Deputy Assistant Attorney General Jonathan D. Brightbill of the Justice Department’s Environment and Natural Resources Division, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, Jessica Taylor, Director of the EPA’s Criminal Enforcement Program, Chief Jim Lee, IRS Criminal Investigation, and Special Agent in Charge Michael J. Driscoll of the FBI's Philadelphia Field Office.

On October 20, 2020, U.S. District Judge John E. Jones III sentenced Ben Wootton, 55 of Savannah, Georgia, to 70 months and Race Miner, 51, of Marco Island, Florida, to 66 months, after a jury convicted both defendants and their company, Keystone Biofuels Inc. (Keystone), in April 2019.  The company was originally located in Shiremanstown, Pennsylvania, and later in Camp Hill, Pennsylvania.  Miner was the founder and chief executive officer of Keystone.  Wootton was president of Keystone, and a former member of the National Biodiesel Board.  The court ordered both men to pay restitution of $4,149,383.41 to the IRS and restitution of $5,076,376.07 to the Pennsylvania Department of Environmental Protection.  Wootton and Miner will also have to serve a three-year term of supervised release after their term of imprisonment.  Keystone was sentenced to five years’ probation and ordered to pay restitution of $4,149,383.41 to the IRS and restitution of $5,076,376.07 to the Pennsylvania Department of Environment Protection criminal fine.

“The EPA and IRS renewable fuels incentive programs are important components of the Congressional program to increase the use of biofuels to benefit the environment,” said Principal Deputy Assistant Attorney General Jonathan D. Brightbill of the Justice Department’s Environment and Natural Resources Division.  “Today’s sentences are a strong reminder that the federal government will not allow supposed “green” conmen to illegally take advantage of federal and state programs that are meant to offer financial incentives to enhance the environment and energy sustainability.”

“The complex fraud perpetrated by the defendants in this case struck directly at the heart of a government program that was specifically created to benefit the environment, business owners and the community at large,” said U.S. Attorney David J. Freed of the Middle District of Pennsylvania.  “Encouraging companies to develop and provide for sale clean renewable fuels is truly a win-win proposition for everyone.  Unfortunately, the defendants used this program to benefit only themselves.  Today’s sentences send a clear message that my office, our federal partners and the United States Department of Justice will not tolerate renewable fuels fraud and related offenses.”

“The defendants defrauded the IRS and sought to profit from a system intended to protect the environment,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.  “The Tax Division will continue to aggressively investigate and prosecute with our partners such tax crimes.”

“Today’s sentencing demonstrates there are real penalties for those defrauding the Renewable Fuel Standard (RFS) program,” said Jessica Taylor, Director of the EPA’s criminal enforcement program. “With this action EPA and its enforcement partners are continuing to protect both the integrity of the RINs program and the American taxpayer.” 

“Wootton and Miner actively engaged in a multimillion-dollar scheme designed to rob the government and line their own pockets.  Today, they learned there is a steep price to be paid for such greed,” said Jim Lee, Chief, IRS Criminal Investigation (IRS-CI).  “It is the partnerships between IRS-CI and other federal agencies like the EPA that allow cases like this to come to fruition, holding accountable those who seek to enrich themselves through fraudulent means.”    

“The only green resource these two cared about was money, and they told lie after lie to perpetuate their fraud,” said Special Agent in Charge Michael J. Driscoll of the FBI's Philadelphia Field Office.  “Fair warning to anyone else seeking to scam the U.S. government and taxpayers like this: the FBI and our partners stand ready to investigate and hold you accountable as well.”

Wootton, Miner, and Keystone falsely represented that they were able to produce a fuel meeting the requirements set by the American Society for Testing and Materials (ASTM) for biodiesel (a renewable fuel) and adopted by the EPA, and as such were entitled to create renewable fuel credits, known as RINs, based on each gallon of renewable fuel produced.  The fuel and the RINs have financial value and could be sold and purchased by participants within the federal renewable fuels commercial system. 

Wootton and Miner were also convicted of fraudulently claiming federal tax refunds based on IRS’s Biofuel Mixture Credit.  The Biodiesel Mixture Credit is a type of “blender’s credit” for persons or businesses who mix biodiesel with diesel fuel and use or sell the mixture as a fuel.  Wootton and Miner caused Keystone to fraudulently claim tax refunds based on non-qualifying fuel and, in at least some instances, non-existent or non-mixed fuel.  In an attempt to hide their fraud scheme, the men created false corporate books and records and sham financial transactions to account for the nonexistent and non-qualifying fuel, and to create the appearance of legitimacy.

The prosecution of Wootton, Miner and Keystone is the first prosecution of a case under the federal renewable fuels program based on fuel that did not meet the program renewable fuel quality standards. 

The case was prosecuted by Senior Litigation Counsel Howard P. Stewart of the Environment and Natural Resources Division’s Environmental Crimes Section, Assistant U.S. Attorney Geoffrey MacArthur, Special Assistant U.S. Attorney David Lastra, and Trial Attorneys Mark Kotila and Michael C. Vasiliadis of the Tax Division. EPA Region III Criminal Investigation Division, IRS Criminal Investigation and the FBI Philadelphia’s Harrisburg Resident Agency investigated the matter.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Steven M. Lukach, Jr., age 70, of Nesquehoning, Pennsylvania, was sentenced on October 20, 2020, to 27 months’ imprisonment by U.S. District Court Judge Robert D. Mariani for mail fraud and falsification of records. 

According to United States Attorney David J. Freed, Lukach served as the Clerk of Courts for Schuylkill County for approximately 27 years.  In 2013-2014, county auditors with the Controller’s Office began an in depth examination of the Clerk’s Office and discovered misappropriation of funds by Lukach.  An FBI investigation ensued and while the audit was going on, Lukach interfered with the audit by stealing mail that was sent to banks, forged records and sent the fake bank records to the Controller’s Office.  Lukach did so in an effort to conceal that he was taking funds from various accounts for his own personal purposes, such as paying a family member’s credit card bill, paying for meals, making car payments, and other personal expenses. The total funds misappropriated was $40,000.

Judge Mariani found that Lukach’s criminal conduct was two-fold. One involved theft and the other involved obstruction of justice. Judge Mariani characterized the theft as an abuse of power and trust given to him by the people of Schuylkill County and the Commonwealth of Pennsylvania. The judge noted that his crimes were not a one-off event but pervasive theft over years from many different aspects of the criminal justice system, including stealing from funds due to be paid as restitution to crime victims, fines and cost due to be paid to county and state, and bail funds due to be returned to those properly posted the funds. His obstruction was described by the judge as simply bold.  Judge Mariani indicated that the sentence of 27 months in prison was enough to deter yet punish his wrongdoing.

Judge Mariani ordered Lukach to pay $15,927 in restitution and to surrender to the Bureau of Prisons on November 17, 2020.

The case was investigated by the Pennsylvania State Police and the Federal Bureau of Investigation.  Assistant U.S. Attorney Michael Consiglio prosecuted the case.             

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Special Agent with the U.S. Department of Labor, Office of Inspector General, Thomas Hartley, age 47, of Henryville, Pennsylvania, was indicted on October 20, 2020, by a federal grand jury for theft of government funds, making false claims against the United States, and making false statements.

According to United States Attorney David J. Freed, the indictment alleges that while on leave from his position with the Department of Labor and serving with the New Jersey National Guard, Hartley submitted false documents to the Department of the Army and thereby obtained approximately $23,580 in housing allowance funds to which he was not entitled.

The case was investigated by the U.S. Department of Labor, Office of Inspector General, Office of Special Investigations and the United States Army, Criminal Investigation Command.  Assistant United States Attorney Robert J. O’Hara is prosecuting the case.

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

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.

Under federal law, the charge of Theft of Government Funds carries up to a maximum sentence of ten years in prison, a term of supervised release following imprisonment, and a fine. The charges of False Claims against the United States and False Statements each carry up to a maximum penalty of five years 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.

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Two biofuel company owners were sentenced to prison for conspiracy and making false statements to the U.S. Environmental Protection Agency (EPA) and conspiracy to defraud the IRS and preparing a false tax claim.  

U.S. District Judge John E. Jones III sentenced Ben Wootton, 55 of Savannah, Georgia, to 70 months and Race Miner, 51, of Marco Island, Florida, to 66 months, after a jury convicted both defendants and their company, Keystone Biofuels Inc. (Keystone), in April 2019.  The company was originally located in Shiremanstown, Pennsylvania, and later in Camp Hill, Pennsylvania.  Miner was the founder and chief executive officer of Keystone.  Wootton was president of Keystone, and a former member of the National Biodiesel Board.  The court ordered both men to pay restitution of $4,149,383.41 to the IRS and restitution of $5,076,376.07 to the Pennsylvania Department of Environmental Protection.  Wootton and Miner will also have to serve a three-year term of supervised release after their term of imprisonment.  Keystone was sentenced to five years’ probation and ordered to pay restitution of $4,149,383.41 to the IRS and restitution of $5,076,376.07 to the Pennsylvania Department of Environment Protection criminal fine.

“The EPA and IRS renewable fuels incentive programs are important components of the Congressional program to increase the use of biofuels to benefit the environment,” said Principal Deputy Assistant Attorney General Jonathan D. Brightbill of the Justice Department’s Environment and Natural Resources Division.  “Today’s sentences are a strong reminder that the federal government will not allow supposed “green” conmen to illegally take advantage of federal and state programs that are meant to offer financial incentives to enhance the environment and energy sustainability.”

“The complex fraud perpetrated by the defendants in this case struck directly at the heart of a government program that was specifically created to benefit the environment, business owners and the community at large,” said U.S. Attorney David J. Freed of the Middle District of Pennsylvania.  “Encouraging companies to develop and provide for sale clean renewable fuels is truly a win-win proposition for everyone.  Unfortunately, the defendants used this program to benefit only themselves.  Today’s sentences send a clear message that my office, our federal partners and the United States Department of Justice will not tolerate renewable fuels fraud and related offenses.”

“The defendants defrauded the IRS and sought to profit from a system intended to protect the environment,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.  “The Tax Division will continue to aggressively investigate and prosecute with our partners such tax crimes.”

“Today’s sentencing demonstrates there are real penalties for those defrauding the Renewable Fuel Standard (RFS) program,” said Jessica Taylor, Director of the EPA’s criminal enforcement program. “With this action EPA and its enforcement partners are continuing to protect both the integrity of the RINs program and the American taxpayer.”  

“Wootton and Miner actively engaged in a multimillion-dollar scheme designed to rob the government and line their own pockets.  Today, they learned there is a steep price to be paid for such greed,” said Jim Lee, Chief, IRS Criminal Investigation (IRS-CI).  “It is the partnerships between IRS-CI and other federal agencies like the EPA that allow cases like this to come to fruition, holding accountable those who seek to enrich themselves through fraudulent means.”    

“The only green resource these two cared about was money, and they told lie after lie to perpetuate their fraud,” said Special Agent in Charge Michael J. Driscoll of the FBI's Philadelphia Field Office. “Fair warning to anyone else seeking to scam the U.S. government and taxpayers like this: the FBI and our partners stand ready to investigate and hold you accountable as well.”

Wootton, Miner, and Keystone falsely represented that they were able to produce a fuel meeting the requirements set by the American Society for Testing and Materials (ASTM) for biodiesel (a renewable fuel) and adopted by the EPA, and as such were entitled to create renewable fuel credits, known as RINs, based on each gallon of renewable fuel produced.  The fuel and the RINs have financial value and could be sold and purchased by participants within the federal renewable fuels commercial system. 

Wootton and Miner were also convicted of fraudulently claiming federal tax refunds based on IRS’s Biofuel Mixture Credit.  The Biodiesel Mixture Credit is a type of “blender’s credit” for persons or businesses who mix biodiesel with diesel fuel and use or sell the mixture as a fuel.  Wootton and Miner caused Keystone to fraudulently claim tax refunds based on non-qualifying fuel and, in at least some instances, non-existent or non-mixed fuel.  In an attempt to hide their fraud scheme, the men created false corporate books and records and sham financial transactions to account for the nonexistent and non-qualifying fuel, and to create the appearance of legitimacy.

The prosecution of Wootton, Miner and Keystone is the first prosecution of a case under the federal renewable fuels program based on fuel that did not meet the program renewable fuel quality standards. 

The case was prosecuted by Senior Litigation Counsel Howard P. Stewart of the Environment and Natural Resources Division’s Environmental Crimes Section, Assistant U.S. Attorney Geoffrey MacArthur, Special Assistant U.S. Attorney David Lastra, and Trial Attorneys Mark Kotila and Michael C. Vasiliadis of the Tax Division.  EPA Region III Criminal Investigation Division, IRS Criminal Investigation and the FBI Philadelphia’s Harrisburg Resident Agency investigated the matter.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Daquan Seabrook, age 25, of Chambersburg, Pennsylvania, was sentenced to 10 years’ imprisonment followed by five years of supervised release by Chief United States District Court Judge John E. Jones III, for drug trafficking.

According to United States Attorney David J. Freed, Seabrook pleaded guilty to possession with intent to distribute 100 grams and more of heroin in October 2017, in Chambersburg, Franklin County.  One hundred grams of heroin is equivalent to approximately 4,000 individual doses of heroin.

Chief Judge Jones also ordered Seabrook to forfeit $15,000 of cash seized at the time of his arrest.

The case was investigated by the Franklin County Drug Task Force and the Harrisburg Office of the Federal Bureau of Investigation.  Assistant U.S. Attorney James T. Clancy 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

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.

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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Carlos Di Santi, age 39, Angell Hungaro, age 46, and Benedicto Correia, age 58, all Brazilian nationals, were sentenced on October 15, 2020, by Chief Judge John E. Jones III for their participation in a debit card skimming scheme that caused a total loss of $14,971 to dozens of victims.  Di Santi was sentenced to 32 months’ imprisonment.  Hungaro was sentenced to 28 months’ imprisonment.  Correia was sentenced to 24 months’ imprisonment.   

According to United States Attorney David J. Freed, Di Santi and Hungaro previously pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft.  Correia previously pleaded guilty to aggravated identity theft.  The three men admitted that in April 2019, they placed skimming devices and cameras on multiple ATMs in Cumberland and York Counties.  They further admitted that they then used the information obtained from the skimming devices and cameras to withdraw money from the bank accounts of dozens of victims.   

The case was investigated by the United States Secret Service, the Silver Spring Township Police Department, the Springettsbury Township Police Department, and the Spring Garden Township Police Department. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.

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Harrisburg - United States Attorney David J. Freed announced today that Assistant United States Attorney (AUSA) Eric Pfisterer will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election.  AUSA Eric Pfisterer has been appointed to serve as the District Election Officer (DEO) for the Middle District of Pennsylvania, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.

United States Attorney Freed said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud.  The Department of Justice will always act appropriately to protect the integrity of the election process.”

The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur.  The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through election day.

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them.  For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law.  Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).

The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Freed stated that AUSA/DEO Eric Pfisterer will be on duty in this District while the polls are open.  He can be reached by the public at the following telephone number: 717-221-4482.

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.  The local FBI field office can be reached by the public at 215-418-4000.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ 

Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities.  State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

United States Attorney Freed said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate.  It is imperative that those who have specific information about discrimination or election fraud make that information available to my Office, the FBI, or the Civil Rights Division.”

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SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Gene Hawkins, age 50, of Hazleton, Pennsylvania, was sentenced on October 9, 2020, by U.S. District Court Judge Robert D. Mariani to 21 months’ imprisonment for selling 1.5 grams of heroin in 2015.

According to United States Attorney David J. Freed, Hawkins pleaded guilty to distributing a “brick” (approximately 50 individual doses) of heroin on August 3, 2015 in Hazleton.

The case was investigated by the Drug Enforcement Administration (DEA) and the Hazleton Police Department. Assistant U.S. Attorney Francis P. Sempa 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

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.     

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 8, 2020, United States District Court Judge Jennifer P. Wilson sentenced Edward Lee McDowell, III, age 23, to 57 months’ imprisonment for firearms and drug trafficking offenses.

According to United States Attorney David J. Freed, McDowell previously pleaded guilty to firearms and drug trafficking offenses based on conduct that occurred in York County in December 2016 and February 2017.  In addition to the 57 months in prison, McDowell was ordered to serve three years of supervised release following his prison term.

The case was investigated by the York County Drug Task Force and the Harrisburg Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  The case was prosecuted by Assistant U.S. Attorney James T. Clancy and former Assistant U.S. Attorney Meredith Taylor.

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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeffrey Dixon, age 53, of Gettysburg, Pennsylvania, was indicted on September 30, 2020, by a federal grand jury for theft of Social Security benefits totaling more than $30,000 over a two-year period. 

This case was investigated by the Social Security Administration’s Office of Inspector General.  Prosecution is assigned to Assistant U.S. Attorney Christian T. Haugsby.

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

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.

If convicted of the charge, Dixon faces a maximum penalty of 10 years’ imprisonment and a fine of $250,000.  Under the Federal Sentencing Guidelines, the Judge is 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.

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HARRISBURG – U.S. Attorney David J. Freed joined the Department of Justice in announcing the charging of more than 14,200 defendants with firearms-related crimes during Fiscal Year (FY) 2020, despite the challenges of COVID 19 and its impact on the criminal justice process. These cases have been a Department priority since November 2019 when Attorney General William P. Barr announced his commitment to investigating, prosecuting, and combatting gun crimes as a critical part of the Department’s anti-violent crime strategy. These firearms-related charges are the result of the critical law enforcement partnership between United States Attorneys’ Offices and the Bureau of Alcohol, Tobacco, Firearms and Explosives, led by Acting Director Regina Lombardo, who has made firearms-related investigations a priority.

“Working together with our state and local partners, we are laser-focused on reducing violence in our communities,” said U.S. Attorney Freed.  “Violent crime in the Middle District of Pennsylvania invariably involves firearms – firearms that are illegally obtained and possessed.  Violent crime is about power.  When we concentrate on investigating, prosecuting and combatting gun crimes we directly impact the power that violent criminals hold over their victims.  Those victims, law abiding citizens, are the reason that we will continue to concentrate our efforts on firearm related violent crime.”

“The number one priority of government is to keep its citizens safe,” said Attorney General Barr. “By preventing firearms from falling into the hands of individuals who are prohibited from having them, we can stop violent crime before it happens. Violating federal firearms laws is a serious crime and offenders face serious consequences.  The Department of Justice is committed to investigating and prosecuting individuals who illegally buy, sell, use, or possess firearms. Reducing gun violence requires a coordinated effort, and we could not have charged more than 14,000 individuals with firearms-related crimes without the hard work of the dedicated law enforcement professionals at the ATF, our U.S. Attorneys’ Offices across the country, and especially all of our state and local law enforcement partners.”

“Protecting the public from violent crime involving firearms is at the core of ATF’s mission,” commented ATF Acting Director Regina Lombardo.  “Every day the men and women of ATF pursue and investigate those who use firearms to commit violent crimes in our communities, many of whom are prohibited from possessing firearms from previous convictions.  ATF, in collaboration with the U.S. Attorneys’ Offices across the nation, is committed to bringing these offenders to justice for their egregious and violent criminal acts.”

Of the more than 14,200 cases charged, 64 cases have been brought by the Middle District of Pennsylvania in 2020, announced U.S. Attorney Freed. Below are four cases recently charged on October 13, 2020:

• Tyrick Friday, age 23, of Scranton, Pennsylvania, was indicted for unlawfully possessing a loaded firearm as a convicted felon. 

• Cory O’Connor, age 32, of Scranton, Pennsylvania, was indicted for drug trafficking and possessing a firearm with an obliterated serial number in furtherance of a drug trafficking crime.

• Edwin Smith, age 26, of Scranton, Pennsylvania, was indicted for arranging for straw purchasers to make false statements to several Lackawanna County federally licensed firearms dealers in order to purchase a total of 10 firearms.  

• Lakeem Hunter-Knight, age 20, of Tobyhanna, Pennsylvania, was indicted for armed robbery of the Pickerel Inn General Store and possession of a firearm in furtherance of a crime of violence.

Under federal law, it is illegal to possess a firearm if you fall into one of nine prohibited categories including being a felon, illegal alien, or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime.  It is also illegal to purchase – or even to attempt to illegally purchase - firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, is also a federal offense.  The Department is committed to prosecuting these firearms offenses as well as using all modern technologies available to law enforcement such as the National Integrated Ballistic Information Network, known as NIBIN, to promote gun crime intelligence. Keeping illegal firearms out of the hands of violent criminals will continue to be a priority of the Department of Justice and we will use all appropriate, available means to keep the law abiding people of this country safe from gun crime. 

For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.     

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Paul Robinson, age 31, of Chambersburg, Pennsylvania, was indicted on October 7, 2020, by a federal grand jury on child pornography charges.

According to United States Attorney David J. Freed, the indictment alleges that Robinson produced images depicting the sexual abuse of a minor less than one year old (Counts 1 through 3), then distributed those images over the internet (Count 2).  After obtaining a search warrant, federal law enforcement officers searched the defendant’s home and located additional images and videos containing child pornography (Count 3).

Homeland Security Investigations and the Pennsylvania State Police investigated the case.  Assistant U.S. Attorney Daryl F. Bloom 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  www.usdoj.gov/psc For more information about internet safety education, please visit  www.usdoj.gov/psc and click on the tab "resources."

Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.  The maximum penalty under federal law for each of Counts 1 through 3 is 30 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Each offense carries a mandatory term of imprisonment of 15 years.  The maximum penalty for Count 2 is 20 years of imprisonment, a term of supervised release following imprisonment, and a $25,000 fine. The offense carries a mandatory term of imprisonment of five years.  Due to the age of the victim, the maximum penalty for Count 3 is 20 years of imprisonment, a term of supervised release following imprisonment, and a $25,000 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.

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that charges were unsealed yesterday for five Luzerne County men, for various fentanyl, cocaine, and tramadol trafficking offenses, including fentanyl dealing that resulted in death.  The defendants are:

1. Edwin Tejeda, age 30, of Wilkes-Barre, Pennsylvania and the Dominican Republic;
2. Jose Raymer Tejeda, age 36, of Wilkes-Barre, Pennsylvania;
3. Emilio Tejeda, age 32, of Wilkes-Barre, Pennsylvania;
4. James Garris, Jr., age 51, of Wilkes-Barre, Pennsylvania; and
5. James Tindol, Jr., age 37, of Nanticoke, Pennsylvania.

Brothers Edwin, Jose Raymer, and Emilio Tejeda were indicted by a federal grand jury on June 30, 2020, with conspiring to traffic cocaine and 400 grams or more of fentanyl, between January 2016 and February 2020.  According to United States Attorney David J. Freed, the indictment alleges that Edwin Tejeda and Jose Raymer Tejeda are charged with causing the death of A.V. as a result of that conspiracy.  The three also are charged varyingly with 19 counts of trafficking fentanyl and tramadol during the course of the conspiracy, and with maintaining a drug premises.  The indictment also seeks forfeiture of two Wilkes-Barre properties, two firearms and ammunition, and over $25,000 seized by law enforcement.  The defendants all await trial.  The indictment remained under seal until Edwin Tejeda was apprehended while traveling to the United States from the Dominican Republic.

James Garris, Jr., was charged in an information on June 3, 2020, with delivering fentanyl that resulted in death.  Garris pleaded guilty to that charge on July 7, 2020, and awaits sentencing.  James Tindol, Jr. also was charged in an information on March 4, 2020, with delivering fentanyl that resulted in death.

In a related case, on June 30, 2020, Kearon Brinson, age 40, of West Nanticoke, Pennsylvania, and Lamont Hubbard, age 49, of Plymouth, Pennsylvania, were indicted by a federal grand jury on drug trafficking and ammunition charges.  According to United States Attorney Freed, the indictment alleges that Brinson and Hubbard conspired to traffic in excess of 40 grams of fentanyl between January 2019 and February 2020.  Brinson was charged with possessing with the intent to distribute crack cocaine on February 24, 2020.  Brinson and Hubbard both were charged with possessing with the intent to distribute fentanyl on February 24, 2020.  Hubbard also was charged with possessing ammunition as a convicted felon.  The indictment also seeks forfeiture of assorted ammunition and over $3,500 seized by law enforcement during the investigation.  Both defendants await trial.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Luzerne Country Drug Task Force, and the Kingston Police Department.  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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.  Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.

This case further 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.

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

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 maximum penalty under federal law for the drug delivery resulting in death charges are a minimum 20 years and maximum life term of imprisonment.  Other drug charges against the defendants carry five and ten-year mandatory minimums. 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 on October 1, 2020, Mark Heath, age 41, and Amy Casey, age 42, both of Wilkes-Barre, Pennsylvania, were sentenced by United States District Court Judge Malachy E. Mannion for methamphetamine offenses.  Heath was sentenced to 84 months’ imprisonment and four years of supervised release.  Casey received a time served sentence of 10 months’ imprisonment, and two years of supervised release.

According to United States Attorney David J. Freed, Heath pleaded guilty to conspiring to manufacture and distribute 50 grams or more of crystal methamphetamine in Pennsylvania between approximately May 2017 and June 2017.  The evidence established that Heath manufactured methamphetamine in a Wilkes-Barre, Pennsylvania residence.  Casey pleaded guilty to maintaining a drug premises, for permitting and assisting Heath and others in running the methamphetamine laboratory in her residence, in exchange for free methamphetamine.  In pronouncing both sentences, Judge Mannion highlighted that the crimes jeopardized the safety of several children living in the residence, for which the defendants received sentencing enhancements.

Two other defendants were convicted in connection with this investigation:

(1) Shawn Melleski, formerly of Wilkes-Barre Pennsylvania, pleaded guilty to a methamphetamine conspiracy and was sentenced to 46 months’ imprisonment and three years of supervised release; and

(2) Michael Laury, formerly of Wilkes-Barre Pennsylvania, was convicted at trial of a methamphetamine conspiracy, managing a drug premises, and for providing false statements to law enforcement.  Laury awaits sentencing.

The matter was investigated by the FBI, the Pennsylvania State Police, and the Wilkes-Barre Police Department.  Assistant United States Attorneys Phillip J. Caraballo and Jeffrey St John are 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 30, 2020, Gerald McFadden, age 36, of Lewistown, Pennsylvania, was indicted by a federal grand jury on drug trafficking offenses.

According to United States Attorney David J. Freed, the indictment charges McFadden with conspiracy to distribute and possess with intent to distribute crack cocaine and heroin between August 17, 2019 and October 17, 2019, in Mifflin County. The indictment also charges McFadden with 15 separate instances of possession with intent to distribute crack cocaine and heroin, and one count of possession with the intent to distribute more than 28 grams of crack cocaine. 

This case was investigated by the FBI, the Pennsylvania State Police, and the Mifflin County Drug Task Force.  Assistant U.S. Attorney Christian T. Haugsby is prosecuting the case.

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

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.

Based upon the weight of the drugs involved in the alleged conspiracy, the maximum penalties that may be imposed upon conviction are 40 years’ imprisonment and a $5 million fine.  A sentence for these drug trafficking offenses also includes a period of supervised release following imprisonment.  Under the Federal Sentencing Guidelines, the Judge is 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.

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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

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 Mary Handzus, age 64, of Laporte, Pennsylvania, was sentenced on October 1, 2020 to 12 months and a day followed by two years on supervised release by United States District Court Judge Matthew W. Brann, for theft from the Sullivan County Sheriff’s Office.

According to United States Attorney David J. Freed, between 2012 and 2019, Handzus was employed as the Administrative Deputy by the Sullivan County Sheriff’s Office and stole $198,566 from the Sheriff’s Office account.

Judge Brann also ordered Handzus to pay restitution in the amount of $250,755, for the money she stole and the forensic audit conducted following the discovery of the theft.

The case was investigated by the Federal Bureau of Investigation (FBI) and the Pennsylvania State Police. Assistant U.S. Attorney Jenny P. Roberts prosecuted the case.

# # #

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that the former mayor for the City of Scranton, William L. Courtright, age 63, of Scranton, Pennsylvania, was sentenced to seven years’ imprisonment by United States District Court Judge Malachy E. Mannion, on public corruption charges. 

According to United States Attorney David J. Freed, Courtright previously pleaded guilty on July 2, 2020, to charges involving criminal conspiracy, bribery and extortion in July 2019.  Courtright had been the subject of a multi-year year undercover investigation headed by the FBI.  The undercover investigation captured the former mayor accepting cash payments from vendors doing business with the city.   

In addition to the prison term, Judge Mannion also ordered Courtright to pay a $25,000 fine, and be supervised by a probation officer for three years following his release from prison.

“In this County, in this Commonwealth, in this Country – our elected officials work for us,” said U.S. Attorney Freed.  “Not the other way around.  Using public office for personal financial gain is a crime, plain and simple. We are pleased with Judge Mannion’s sentence.  Elected officials should remain on notice that we will continue to work together with our state and local partners to investigate and prosecute public corruption cases at all levels.  There is no such thing as a little bit of corruption.  Corruption, not matter the scope is insidious.  I want to commend the painstaking work of our partners at the FBI who have never wavered in their commitment to the citizens of this district.  We are also grateful for the valuable assistance of IRS-Criminal Investigations and the Pennsylvania State Police.  We will not rest in the fight against corruption.”

“Instead of working honestly on behalf of his constituents, William Courtright traded on his office, embracing a corrupt pay-to-play culture,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “With every bribe pocketed and favor accepted, he sold out the city of Scranton a little more. The damage he’s done to the public trust is profound and for that he must be held accountable. Cases like this only fuel the FBI's commitment to tackling public corruption.”

In addition to the prison term, Judge Mannion also ordered Courtright to pay a $25,000 fine, and be supervised by a probation officer for three years following his release from prison.

The FBI was assisted during the investigation by the Pennsylvania State Police and the Internal Revenue Service Criminal Investigation.  Assistant United States Attorneys Michael Consiglio and Michelle Olshefski prosecuted the case.

# # #

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 29, 2020, Robert Duus, age 34, of Monroe County, Pennsylvania, was indicted by a federal grand jury for attempted online enticement of a minor and attempted sex trafficking of a child.

According to United States Attorney, David J. Freed, the indictment alleges that Duus attempted to use a facility of interstate commerce to entice a minor to engage in sexual activity.  Additionally, the indictment alleges that Duus attempted to cause a child to engage in a commercial sex act.   

The charges stem from an investigation by the Federal Bureau of Investigation (FBI) – Philadelphia Division and its state and local law enforcement partners in Monroe County, Pennsylvania.  Assistant United States Attorney Jeffery St. John is prosecuting the case.

The maximum penalties under federal law for these offenses is life imprisonment, a mandatory minimum period of imprisonment of 15 years, 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.

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. 

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 September 29, 2020, Philip Schmaldinst, age 44, of Lehigh County, Pennsylvania, was indicted by a federal grand jury for attempted online enticement of a minor and attempted sex trafficking of a child.

According to United States Attorney, David J. Freed, the indictment alleges that Schmaldinst attempted to use a facility of interstate commerce to entice a minor to engage in sexual activity.  Additionally, the indictment alleges that Schmaldinst attempted to cause a child to engage in a commercial sex act.   

The charges stem from an investigation by the Federal Bureau of Investigation (FBI) – Philadelphia Division and its state and local law enforcement partners in Monroe County, Pennsylvania.  Assistant United States Attorney Jeffery St. John is prosecuting the case.

The maximum penalties under federal law for these offenses is life imprisonment, a mandatory minimum period of imprisonment of 15 years, 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.

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.

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 September 30, 2020, Damion Phillip Gress, age 24, of Franklin County, was indicted by a federal grand jury for offenses involving the exploitation of minors.

According to United States Attorney David J. Freed, the indictment alleges that Gress persuaded and used a minor to produce images of child pornography between August 2015 and October 2016 with respect to two separate victims.  Gress is also alleged to have received images of child pornography during that time period and to have possessed images of child pornography on August 12, 2019.  The four-count indictment also includes a notice of the Government’s intent to forfeit all images of child pornography and the electronic devices associated with those images.

This case was investigated by the Federal Bureau of Investigations and the Pennsylvania State Police.  Assistant United States Attorney James T. Clancy is prosecuting the case. 

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

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 maximum penalty for use of a minor to produce child pornography is 30 years’ imprisonment and a $250,000 fine.  That charge carries a mandatory minimum term of imprisonment of 15 years and a term of supervised release after imprisonment.  Receipt of child pornography carries a maximum term of imprisonment of 20 years, a five-year mandatory minimum prison sentence, a $250,000 fine and a period of supervised release after imprisonment.  Possession of child pornography carries a maximum 10-year prison term, a $250,000 fine and a period of supervised release after imprisonment.  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.

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.  For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

# # #

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 29, 2020, Lorenz Quiambao, age 39, of Easton, Pennsylvania, was indicted by a federal grand jury for attempted online enticement of a minor and attempted sex trafficking of a child.

According to United States Attorney David J. Freed, the indictment alleges that Quiambao attempted to use a facility of interstate commerce to entice a minor to engage in sexual activity.  Additionally, the indictment alleges that Quiambao attempted to cause a child to engage in a commercial sex act.   

The charges stem from an investigation by the Federal Bureau of Investigation (FBI) – Philadelphia Division and its state and local law enforcement partners in Monroe County, Pennsylvania.  Assistant United States Attorney Jeffery St. John is prosecuting the case.

The maximum penalties under federal law for these offenses is life imprisonment, a mandatory minimum period of imprisonment of 15 years, 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.

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.

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 Jean Quinones, age 25, of Scranton, of Pennsylvania, was indicted on September 29, 2020, by a federal grand jury for drug trafficking.

According to United States Attorney David J. Freed, the indictment charges Quinones with attempt to possess with intent to distribute in excess of 500 grams of cocaine on September 4, 2020.

The investigation was conducted by the Department of Homeland Security, United States Postal Inspectors, United States Customs and Border Patrol and the Scranton Police Department. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.

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

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.

Under federal law, the drug trafficking offense carries a mandatory minimum sentence of five years in prison, up to a maximum sentence of forty years 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.

This case is also part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.

# # #

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that a native of Nigeria who became a naturalized U.S. Citizen, Cyprian Ngbadi, age 63, of New York City, was sentenced to 36 months’ imprisonment by United States District Court Judge Christopher C. Conner on charges that he conspired to commit mail fraud, wire fraud and money laundering between 2007 and 2009.  Ngbadi was also ordered to pay $435,664 restitution to 194 victims.

According to United States Attorney David J. Freed, Ngbadi and six codefendants perpetrated a scheme to defraud dozens of individuals, some of whom were senior citizens residing in the Middle District of Pennsylvania, out of hundreds of thousands of dollars on a variety of mass marketing fraud schemes, including but not limited to bogus sweepstakes scams, loan schemes, employment opportunity scams, person in need schemes, and internet purchase scams.

Between 2007 and 2009 Ngbadi owned and/or operated two MoneyGram and Western Union outlets, “Rockaway Business Center” and “Neighborhood Express Payment,” in the greater Queens, New York area.  Mass marketing fraudsters used Ngbadi to convert fraud induced money transfers from victims into cash and to distribute the proceeds to other co-conspirators, some of whom resided in Canada and Nigeria.  For his role in the conspiracy Ngbadi kept approximately 10% of the proceeds.   

Western Union and MoneyGram determined in 2008 that Ngbadi, who was then doing business as Rockaway Business Center, was complicit in consumer fraud and money laundering activities and, as a result, both companies terminated their money transfer agreements with him.  Undeterred, with the unwitting assistance of a straw party, Ngbadi opened new Western Union and MoneyGram outlets under the name of “Neighborhood Express Payment” in New York.  Thereafter, Ngbadi continued to cash out and launder additional money transfers sent by consumer fraud victims until Western Union and MoneyGram finally terminated Neighborhood Express Payment’s operations in 2009. 

Ngbadi was arrested on February 8, 2019, upon his arrival in New York City on a flight from Nigeria where Ngbadi has been residing for the past five years.

The case was investigated by the Harrisburg Office of the United States Postal Inspection Service.  Assistant United States Attorney Kim Douglas Daniel prosecuted the case. 

The United States Attorney and United States Postal Inspectors remind all citizens that they should never make an advance payment of any kind on the promise of a sweepstakes prize, loan or grant.

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

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, and could include a term of supervisory 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 on September 29, 2020, Michael Sean Riley, age 52, of Ocala, Florida, was sentenced to 72 months’ imprisonment and ordered to forfeit up to $800,000, by United States District Court Judge Christopher C. Conner for his role in a money laundering conspiracy involving $800,000 in drug proceeds.

According to United States Attorney David J. Freed, Michael Riley arranged with John T. Oiler to rent a storage unit in Baltimore and travel to Pennsylvania to take possession of more than $800,000 of cash drug proceeds Michael Riley skimmed from a larger load of cash.  Oiler took the vast majority of those proceeds and stored them in the rented unit in Baltimore.  Michael Riley then contacted his cousin, Timothy Riley, then a Narcotics Agent of the PA Attorney General’s Office Bureau of Narcotics Investigations Mobile Street Crimes Unit, and turned over the rest of the cash proceeds to him and other agents from the Mobile Street Crimes Unit.  Michael Riley paid Timothy Riley three cash payments totaling $48,000 which Timothy Riley subsequently laundered.  Oiler and Michael Riley each netted about $400,000 of the proceeds and each conducted numerous financial transactions with the cash drug proceeds.

Coconspirator Timothy B. Riley was sentenced to 36 months’ imprisonment and conspirator John T. Oiler was sentenced to 30 months’ imprisonment.

The case was investigated by the Harrisburg Offices of the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation, with the full assistance of the Pennsylvania Office of Attorney General.  Assistant U.S. Attorneys James T. Clancy and Carlo Marchioli 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

# # #

SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Crispin Fernandez, age 27, of Pacoima, California, was sentenced on September 30, 2020 to 13 years’ imprisonment and to serve 10 years on supervised release by U.S. District Court Judge Malachy E. Mannion for his participation in a heroin trafficking conspiracy that shipped more than a kilogram of heroin from California to Carbon County, Pennsylvania.

According to United States Attorney David J. Freed, Fernandez previously pleaded guilty to conspiracy to distribute more than a kilogram of heroin, which is equivalent to more than 40,000 retail bags of heroin, between July 2018 and November 2018.

The case was investigated by the Drug Enforcement Administration (DEA) and the Pennsylvania State Police. Assistant U.S. Attorney Francis P. Sempa 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

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 two companies have entered resolutions with the government requiring the payment of a combined $4.3 million in monetary penalties, and an enhanced environmental compliance program, for their involvement in Clean Air Act violations.

According to United States Attorney David J. Freed, Rockwater Northeast LLC, a Pennsylvania-based company that provides water management services to companies in the oil and gas industry, was charged in a criminal information on September 24, 2020, with 31 counts of violating the Clean Air Act, for tampering with the emissions systems on 31 heavy-duty diesel trucks owned by the company, and installing “defeat devices” that disabled emissions diagnostic systems on the trucks.  Rockwater Northeast LLC also is alleged to have caused the trucks to pass annual vehicle safety inspections by the Department of Transportation (DOT), despite the modified emissions systems.

Separately, Select Energy Services, Inc., a Texas-based company and the successor in interest to Rockwater Energy Solutions, Inc., parent company of Rockwater Northeast LLC, entered a three-year non-prosecution agreement with the United States.  The agreement resolves Clean Air Act violations for modified emissions systems on 29 additional heavy-duty diesel trucks that were owned by Rockwater Energy Solutions, Inc.  Select Energy Services, Inc. has cooperated with the investigation since its acquisition of Rockwater Energy Solutions, Inc. in 2017.

Rockwater Northeast LLC agreed to pay a monetary resolution of $2 million, and Select Energy Services, Inc. agreed to pay a monetary resolution of $2.3 million.  Under the terms of the non-prosecution agreement, Select Energy Services, Inc. agreed to continue cooperating with the government, and to implement an environmental compliance program designed to prevent future Clean Air Act violations.  Select Energy Services, Inc. also is required to conduct annual audits during the three-year term of the agreement, to ensure Clean Air Act compliance.

Six individuals have been prosecuted in connection with this investigation; four of whom are current or former employees of Rockwater Northeast LLC, and two of whom are former third-party vendors of Rockwater Northeast LLC.  All six individuals pleaded guilty to conspiring to impede the lawful functions of the Environmental Protection Agency (EPA) and DOT, and to violate the Clean Air Act:

1. Brian Mellot, of Cumberland, Maryland, was sentenced to six months of imprisonment and one year of supervised release;
2. Gavin Rexer of Jersey Shore, Pennsylvania, pleaded guilty and is awaiting sentencing;
3. Dennis Paulhamus of Jersey Shore, Pennsylvania, pleaded guilty and is awaiting sentencing;
4. Joseph Powell of Hickory, Pennsylvania, pleaded guilty and is awaiting sentencing;
5. John Joseph of Canonsburg, Pennsylvania, pleaded guilty and is awaiting sentencing; and
6. Timothy Sweitzer of Jersey Shore, Pennsylvania, pleaded guilty and is awaiting sentencing.

“We take seriously our job of protecting the environment in Pennsylvania, and we won’t hesitate to prosecute individuals committing environmental crimes,” said United States Attorney Freed.

“The defendants in this case knowingly and repeatedly installed ‘defeat devices’ to remove emissions controls in dozens of diesel trucks in violation of the Clean Air Act,” said Environmental Protection Agency (EPA) Special Agent in Charge Jennifer Lynn of EPA’s Criminal Investigation Division in Pennsylvania. “Today’s announcement demonstrates that EPA and our law enforcement partners are committed to enforcing our environmental laws.  

“Businessmen and companies that intentionally falsify records in order to circumvent federal laws and regulations will be held accountable for their actions,” said Douglas Shoemaker, Regional Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General. “This multi-million dollar settlement demonstrates our continuing effort to combat transportation-related fraud and abuse in the State of Pennsylvania and throughout the country.”

The matter was investigated by the EPA’s Criminal Investigations Division and the DOT’s Office of the Inspector General, with the assistance of the Pennsylvania State Police and other law enforcement agencies.  The case was prosecuted by Assistant United States Attorneys Phillip J. Caraballo and Sean Camoni, and by Special Assistant United States Attorney Patricia C. Miller.

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

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 September 25, 2020, Luis Torres-Jiminez, age 31, of New York, was sentenced to 87 months’ imprisonment by U.S. District Court Judge Robert D. Mariani, for his participation in a drug trafficking conspiracy.

According to United States Attorney David J. Freed, Torres-Jimenez conspired with Juan Roman-Polanco and others to distribute and possess with intent to distribute powder cocaine and cocaine base, or “crack.”  Specifically, Torres-Jimenez admitted responsibility for over 500 grams of cocaine and 28 grams of crack.       

Roman-Polanco was previously sentenced to 151 months’ imprisonment.

The case was investigated by the U.S. Drug Enforcement Administration (DEA), Wilkes-Barre Police Department, and Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni prosecuted the case.

This case is also part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.

# # #

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 24, 2020, Lucas Hernandez-Torres, age 48, of Hazleton, Pennsylvania, was sentenced to 11 months’ imprisonment by United States District Court Judge Robert D. Mariani, for defrauding the United States, and for the unlawful procurement of naturalization.

According to United States Attorney David J. Freed, Hernandez-Torres was convicted of defrauding the IRS by allowing other conspirators to claim his dependents as their own, thereby incurring federal tax credits and refunds.  Hernandez-Torres received kickbacks in return, and also made false claims in his personal tax returns for wages that he had not earned, thus accruing additional tax credits.  The offenses occurred for tax years 2010 through 2014.

Hernandez-Torres, a Mexican national, also was convicted of making false statements on a naturalization application.  He faces deportation after the conclusion of his sentence of imprisonment.  As part of the sentence, Judge Mariani ordered Hernandez-Torres to pay $56,395 in restitution to the IRS.

Hernandez-Torres’s wife, Leticia Salazar, previously was convicted of passport fraud, and deported to Mexico after serving approximately six months in prison.  Salazar had submitted a fraudulent application for a United States passport in May 2008.  In the ultimately unsuccessful application, Corona-Salazar used a United States citizen’s identity as her own.  Corona-Salazar was deported before charges were filed in 2015, but identified and re-arrested in Hazleton, Pennsylvania, in May 2018, having re-entered the United States at an unknown time and place.

The matter was investigated by the Internal Revenue Service and by Homeland Security Investigations.  The case was prosecuted by Assistant United States Attorney Phillip J. Caraballo.

# # #

HARRISBURG – The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that on September 16, 2020, Maurice Lackey, age 40, of Harrisburg, Pennsylvania, was sentenced to 40 years’ imprisonment for drug trafficking and firearms charges.  Lackey was also sentenced to 46 months’ imprisonment to be served concurrent to his 40-year sentence, for violating the terms of his supervised release. 

According to United States Attorney David J. Freed, Lackey was arrested by the Harrisburg Bureau of Police on June 18, 2017, after two firearms and approximately 167 baggies of crack cocaine were found in his vehicle during a traffic stop.  One of the firearms was loaded at the time of his arrest and both firearms had previously been reported as stolen.  In 2003, Lackey had been convicted of possession with intent to distribute more than 5 grams of crack cocaine and possession of a firearm in furtherance of drug trafficking.  Lackey was sentenced to 15 years’ imprisonment for those offenses, and was released from prison less than eight months prior to his arrest on June 18, 2017.  On December 5, 2019, Lackey was convicted by a jury of possession with intent to distribute crack cocaine, possession of a firearm in furtherance of drug trafficking, and possession of a firearm as a felon and armed career criminal. 

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Harrisburg Police Department.  Assistant U.S. Attorney Scott Ford prosecuted the case.

This case is also part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.

# # #

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 24, 2020, U.S. District Court Judge Robert D. Mariani sentenced Jose Rafael Hidalgo, age 43, a Dominican national, to 70 months’ imprisonment for drug trafficking.

According to United States Attorney David J. Freed, Hidalgo admitted that between 1994 and 1999, he conspired with Luzerne County resident David Drozdowski and others to distribute and possess with intent to distribute cocaine.  Hidalgo supplied Drozdowski with cocaine, which he admitted was between 5 and 15 kilograms, which Drozdowski and others then distributed in and around Luzerne County. 

Hidalgo was arrested on August 25, 1999, and, after entering an agreement with the United States to plead guilty, he was granted conditional release.  At some point between October 12, 1999, and February 2000, while residing in New Jersey under supervised pre-trial release, Hidalgo removed an electronic monitoring device and absconded. 

On February 22, 2000, the United States District Court for the Middle District of Pennsylvania issued an arrest warrant for Hidalgo.  The United States Marshals Service took charge of the investigation to locate and apprehend Hidalgo, and, in 2016, confirmed that Hidalgo was living in the Dominican Republic.  The United States Attorney’s Office for the Middle District of Pennsylvania initiated extradition procedures in conjunction with the Department of Justice Office of International Affairs and the U.S. State Department, leading to Hidalgo’s arrest by Dominican law enforcement authorities on January 17, 2019.  Extradition was granted on March 25, 2019, and the U.S. Marshals returned Hidalgo to the United States where he appeared before a federal Magistrate Judge for an initial appearance on May 20, 2019.

The original drug trafficking case was investigated by the U.S. Drug Enforcement Administration (DEA) and the Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni prosecuted the case.

This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF).  OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

# # #

HARRISBURG - On Monday, September 21, 2020, at the request of Luzerne County District Attorney Stefanie Salavantis, the Office of the United States Attorney along with the Federal Bureau of Investigation, Scranton Resident Office, began an inquiry into reports of potential issues with a small number of mail-in ballots at the Luzerne County Board of Elections.

Since Monday, FBI personnel working together with the Pennsylvania State Police have conducted numerous interviews and recovered and reviewed certain physical evidence.  Election officials in Luzerne County have been cooperative. At this point we can confirm that a small number of military ballots were discarded.   Investigators have recovered nine ballots at this time.  Some of those ballots can be attributed to specific voters and some cannot.  Of the nine ballots that were discarded and then recovered, 7 were cast for presidential candidate Donald Trump. Two of the discarded ballots had been resealed inside their appropriate envelopes by Luzerne elections staff prior to recovery by the FBI and the contents of those 2 ballots are unknown.

Our inquiry remains ongoing and we expect later today to share our up to date findings with officials in Luzerne County.  It is the vital duty of government to ensure that every properly cast vote is counted.

# # #

Shelby Watchilla, Director of Elections of Luzerne County Bureau of Elections

Dear Ms. Watchilla:

On Monday, September 21, 2020, at the request of Luzerne County District Attorney Stefanie Salavantis, the Office of the United States Attorney along with the Federal Bureau of Investigation, Scranton Resident Agency, began an inquiry into reports of potential issues with a small number of mail-in ballots at the Luzerne County Board of Elections.

Since Monday, FBI personnel have conducted numerous interviews and recovered and reviewed certain physical evidence.  While at this point the inquiry remains active, based on the limited amount of time before the general election and the vital public importance of these issues, I will detail the investigators’ initial findings.

The FBI has recovered a number of documents relating to military ballots that had been improperly opened by your elections staff, and had the ballots removed and discarded, or removed and placed separately from the envelope containing confidential voter information and attestation.  Specifically, a total of nine (9) military ballots were discovered to have been discarded.  Seven (7) of those ballots when discovered by investigators were outside of any envelope.  Those ballots were all cast for presidential candidate Donald Trump.  One (1) of those seven (7) ballots was able to be identified to an envelope that was recovered, and thereby potentially tied to a specific voter. Two (2) military ballots that had been discarded were previously recovered by elections staff, reinserted into what appeared to be their appropriate envelopes, and then resealed.  Therefore, the votes cast on those two (2) ballots are unknown.  Thus, is appears that three (3) of the nine (9) recovered ballots can be potentially attributed to specific voters.  Six (6) of the ballots were simply removed and discarded, and cannot be attributed to a specific voter at this time.

In addition to the military ballots and envelopes that were discarded and recovered as detailed above, investigators recovered four (4) apparently official, bar-coded, absentee ballot envelopes that were empty. Two (2) of those envelopes had the completed attestations and signatures on the reverse side.  One (1) envelope with a handwritten return address was blank on the reverse side.  The fourth empty envelope contains basic location information and the words “affirmation enclosed” on the reverse side.  The majority of the recovered materials were found in an outside dumpster. 

As you know, the appropriate method for processing received military ballots is to securely store the ballot, unopened, until such time as ballot pre-canvassing can begin, which is in no event earlier than 7:00 a.m. on Election Day.  Opening a military or overseas ballot, or an absentee or mail-in ballot for that matter, violates the controlling statutes and is contrary to Pennsylvania Department of State guidance.  The preliminary findings of this inquiry are troubling and the Luzerne County Bureau of Elections must comply with all applicable state and federal election laws and guidance to ensure that all votes—regardless of party—are counted to ensure an accurate election count.   Even though your staff has made some attempts to reconstitute certain of the improperly opened ballots, there is no guarantee that any of these votes will be counted in the general election.  In addition, our investigation has revealed that all or nearly all envelopes received in the elections office were opened as a matter of course.  It was explained to investigators the envelopes used for official overseas, military, absentee and mail-in ballot requests are so similar, that the staff believed that adhering to the protocol of preserving envelopes unopened would cause them to miss such ballot requests.  Our interviews further revealed that this issue was a problem in the primary election--therefore a known issue--and that the problem has not been corrected.

While the assigned investigators are continuing their work including reviewing additional discarded materials, it is imperative that the issues identified be corrected.  District Attorney Salavantis and I would be happy to meet with you at a mutually convenient time to discuss this matter. Please be assured that the investigators will carefully preserve all documents collected in connection with this investigation.  Our goal, that I am sure you share, is to ensure that every properly cast ballot is counted. 

                                                                                    Sincerely,

                                                                                    DAVID J. FREED

                                                                                    UNITED STATES ATTORNEY

cc:       David Pedri, Luzerne County Manager

           Tim McGinley, Luzerne County Council Chair

           Stefanie Salavantis, Luzerne County District Attorney

WASHINGTON – The Department of Justice announced today that the Western Union Remission Fund began its second distribution of approximately $148 million in funds forfeited to the U.S. government from the Western Union Company (Western Union) to approximately 33,000 victims located in the United States and abroad.  These victims, many of whom were elderly victims of consumer fraud and abuse, will be recovering the full amount of their losses.

This is the second in a series of payment distributions to occur in the Western Union remission.  The first distribution paid approximately $153 million to over 109,000 victims in March of this year.  The Department of Justice anticipates authorizing compensation for many more victims in the coming months.  The department is accepting petitions on an ongoing basis and will be providing potential victims who have not applied for remission the opportunity to apply.

“Through the tireless work of the Department of Justice, today 33,000 more individuals, including many elderly victims of the criminals who exploited Western Union’s deficient anti-money laundering controls, are being made whole through this distribution of an additional $148 million,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.  “Together with the first distribution, the department has now remitted more than $300 million to over 142,000 victims of this fraud.  These results reinforce the department’s commitment to compensating victims whenever possible.”

“After the first distribution of funds to victims of these nefarious scammers, I said that it was a good start,” said U.S. Attorney David J. Freed.  “Today’s announcement marks another important event in this lengthy and complicated case.  While ensuring fair business practices and anti-fraud programs is certainly a worthy goal, our aim is always to compensate our victims.  We credit the innovative and industrious efforts of our investigative partners and thank them for their sustained efforts to make the victims whole.”

“We are very pleased to deliver $148 million to provide financial justice for these thousands of victims,” said Damon E Wood, Inspector in Charge of the U.S. Postal Inspection Service’s (USPIS) Philadelphia Division.  “This brings the total returned to victims to over $300 million.  Especially in these difficult times, the monies will hopefully provide relief for those who were scammed.  The Postal Inspection Service will continue to be at the forefront of protecting Americans from the scams that harm our most vulnerable citizens and delivering justice for all.”

In 2017, Western Union entered into a deferred prosecution agreement (DPA) with the United States.  Pursuant to the DPA, Western Union acknowledged responsibility for its criminal conduct, which included violations of the Bank Secrecy Act and aiding and abetting wire fraud, and agreed to forfeit $586 million, which has been made available to compensate victims of the international consumer fraud scheme through the remission process. Western Union simultaneously resolved a parallel civil investigation with the Federal Trade Commission.

In this scheme, fraudsters targeted consumers, including seniors, through multiple scams.  Three specific scams directed towards seniors include the grandparent scam, where the fraudster would pose as the victim’s relative in need of immediate money to avoid personal harm, lottery or sweepstakes scams, where the fraudster would tell the victim that they had won a large cash prize but had to pay fees such as taxes to claim the prize, and romance scams, where the fraudster would pose as an online love interest and request funds for a visit or for another purpose.  In each of these scams the fraudsters convinced their victims to send money through Western Union.

Certain owners, operators or employees of Western Union agent locations were complicit in the schemes.  Western Union aided and abetted the fraud scheme by failing to suspend or terminate complicit agents and by allowing them to continue to process fraud-induced monetary transactions.  Western Union fulfilled its obligations under the DPA and the court granted the motion to dismiss the information this year.

The Justice Department, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime and acknowledges the significant assistance of the USPIS Philadelphia Division’s Harrisburg, Pennsylvania Office in the Western Union remission.  The victim compensation payments in the Western Union case would not have been possible without the extraordinary efforts of the Criminal Division’s Money Laundering and Asset Recovery Section; the U.S. Attorneys’ Offices for the Middle District of Pennsylvania, the Central District of California, the Eastern District of Pennsylvania, and the Southern District of Florida.  The FBI’s Los Angeles Field Office, IRS-Criminal Investigation, U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations, the Federal Reserve Board and the Consumer Financial Protection Bureau Office of Inspector General, and the Department of the Treasury Office of Inspector General provided valuable assistance.  

More information about the Western Union remission and its compensation to victims is available on the Western Union remission website at www.westernunionremission.com.  Further questions may be directed to the Western Union Remission Administrator by phone at 844-319-2124 or by email at info@WesternUnionRemission.com.

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert L. Hayes, Sr., age 74, of Harrisburg, Pennsylvania, was sentenced on September 21, 2020 to 10 years’ imprisonment followed by 15 years of supervised release by Chief U.S. District Court Judge John E. Jones III, on child exploitation charges.

According to United States Attorney David J. Freed, Hayes possessed images of prepubescent minors under the age of 12 years old on October 16, 2018 and November 20, 2018, in Harrisburg.  Hayes was on federal Supervised Release following a prison term after pleading guilty to a similar federal child exploitation offense in 2007. 

The case was investigated by the U.S. Postal Inspection Service and the U.S. Probation Office. Assistant U.S. Attorney James T. Clancy 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 For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

# # #

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 18, 2020, Justin Wade Lynch, age 44, originally of Texas, was sentenced to 84 months’ imprisonment by United States District Court Judge Malachy E. Mannion for armed bank robbery.

According to United States Attorney David J. Freed, Lynch admitted that, on October 30, 2012, he robbed Penn Security Bank & Trust in Peckville, Lackawanna County, Pennsylvania.  Lynch brandished a firearm during the robbery, and stole $12,470. 

Lynch has been incarcerated since 2013 in Texas on an unrelated armed robbery conviction.  The 84 month federal sentence will run concurrent with the remainder of the Texas sentence.  Lynch was ordered to serve three years of supervised release after his prison term, and to pay full restitution.

The case was investigated by the Blakely Police Department, the Pennsylvania State Police, and the U.S. Federal Bureau of Investigation (FBI), and was prosecuted by Assistant U.S. Attorney Sean A. Camoni.

This case is also part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.       

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Shaquan Jones, age 25, of Harrisburg, Pennsylvania, was sentenced on September 18, 2020, by U.S. District Court Judge Jennifer Wilson to 60 months’ imprisonment for possession of a gun in furtherance of drug trafficking and possession of crack cocaine with intent to distribute it.  Jones had entered a guilty plea to the charges in February 2020.

According to United States Attorney David J. Freed, the charges arose from a September 26, 2018, arrest by the Harrisburg Bureau of Police of Jones. Dauphin County Probation and Parole Officers were dealing with another individual on supervision when they encountered Jones. During their interaction with him, they realized he had a gun in his pocket. They also knew that Jones was previously convicted of drug trafficking, because Jones had just completed parole three days earlier. Harrisburg Police responded and found that Jones was in possession of a stolen handgun. During the arrest, police also recovered two bags of crack cocaine.

Judge Wilson cited Jones’ long criminal history and the circumstances of the incident as aggravating factors for the sentence.

The case was investigated by the Federal Bureau of Investigation, the Harrisburg Police Department and the Bureau of Alcohol Tobacco Firearms and Explosives. Assistant U.S. Attorney Michael Consiglio prosecuted the case.

This case is also part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.

# # #

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Michael Laury, age 41, formerly of Wilkes-Barre, Pennsylvania, was convicted following a jury trial, of methamphetamine and false statement offenses.  The six-day trial was held before United States District Court Judge Malachy E. Mannion in Scranton.

According to United States Attorney David J. Freed, the jury returned the guilty verdict on all counts charged in the superseding indictment after approximately three hours of deliberation.  Laury was convicted of one count of managing a drug premises, one count of conspiring to manufacture and distribute methamphetamine, and one count of making a false statement to the FBI.

The evidence presented at trial showed that in May and June 2017, Laury assisted two drug dealers in running a methamphetamine laboratory in the basement of Laury’s Wilkes-Barre residence.  The FBI and Pennsylvania State Police shuttered the laboratory in June 2017, when executing a search warrant.  Following the search, Laury made false statements to the FBI about his knowledge of and involvement with the laboratory.

Laury has remained in custody since his October 2017 arrest.  He was charged with three coconspirators, all of whom pleaded guilty to various methamphetamine offenses:

1. Mark Heath, of Wilkes-Barre, Pennsylvania, pleaded guilty to a methamphetamine conspiracy and awaits sentencing;
2. Shawn Melleski, of Wilkes-Barre, Pennsylvania, pleaded guilty to a methamphetamine conspiracy and was sentenced to 46 months of imprisonment and three years of supervised release; and
3. Amy Casey, of Wilkes-Barre, Pennsylvania, pleaded guilty to maintaining a drug premises and awaits sentencing.

The matter was investigated by the FBI, the Pennsylvania State Police, and the Wilkes-Barre Police Department.  The case was prosecuted by Assistant United States Attorneys Phillip J. Caraballo and Jeffrey St John.

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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

The combined maximum penalty under federal law for Laury is up to 45 years of imprisonment. There is also 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 the indictment yesterday of a Scranton doctor, Kurt Moran, age 68, on charges related to receiving healthcare kickbacks and unlawfully distributing controlled substances, including distributions resulting in death.  Moran is scheduled to appear before United States Magistrate Judge Karoline Mehalchick at 3:00pm on September 16, 2020.

According to United States Attorney David J. Freed, the 423-count indictment alleges that beginning in December 2014 and continuing into 2017, Moran conspired with others to pay and receive bribes in exchange for prescribing the drug Subsys (sublingual fentanyl) to his patients.  Subsys is a transmucosal immediate release fentanyl (TIRF) drug.  It is approved by the Food and Drug Administration (FDA) only for use in cancer patients suffering from breakthrough cancer pain.  It is alleged that Moran was paid approximately $140,000 over a two year period to prescribe Subsys to his patients for pain not associated with cancer.  In order to conceal and disguise that kickbacks and bribes were being paid to Moran to prescribe Subsys, Insys falsely designated the payments to Moran as “honoraria” for purportedly providing educational presentations regarding Subsys.

Moran is also charged with multiple counts of unlawfully distributing Subsys to 13 patients and two counts of unlawfully prescribing Schedule II controlled substances, including oxycodone and fentanyl, which resulted in the death of a 35 year old man and a 32 year old woman.

The indictment alleges that Moran contracted with Insys Therapeutics, Inc. in 2014 to participate in the Insys Speaker Program (ISP), which was used as a vehicle to pay doctors and other clinicians to prescribe Subsys off-label.  In fact, the ISP was used as a way to funnel money to doctors like Moran under the guise of an “honorarium” appearing to be legitimate.  In reality, many of the speaker programs were merely social gatherings at high-end restaurants with no educational presentation whatsoever.   Most also lacked an appropriate audience of peer-level doctors with a professional reason to be educated about Subsys.  Moran allegedly was selected by Insys to participate in the sham speaker program because he consistently ranked as one of the top prescribers of opioid medications in Pennsylvania, including fentanyl.  Moran allegedly was paid as an Insys speaker as long as he continued to prescribe Subsys and the more prescriptions written by Moran for Subsys – and the higher the dose – the more speaking opportunities were awarded to him and the more money he made.  It is further alleged that Moran prescribed millions of micrograms of the sublingual fentanyl spray to patients with no cancer diagnosis and not suffering from breakthrough cancer pain.  The indictment charges hundreds of counts of unlawful distribution of Subsys by Moran. 

The indictment includes multiple counts of health care fraud related to the payment of claims by Medicare, FEHBP, and other private insurers who paid for the Subsys prescriptions.  It is alleged that had these health care benefit programs known that Moran was prescribing Subsys in exchange for a kickback and outside the usual course of professional practice, the claims would not have been paid by the insurers.

The indictment seeks to forfeit to the United States any and all proceeds derived from unlawful activity as a result of the offenses alleged in the indictment, including U.S. currency and the forfeiture of Moran’s medical license as facilitating property.

United States Attorney Freed stated, “this defendant, an experienced and substantial dispenser of powerful pain medications, lined his own pockets to the detriment of his patients.  He accepted bribes and kickbacks for prescribing medication narrowly approved to treat only cancer patients suffering breakthrough cancer pain.  He then concealed and disguised the payments he received for prescribing that drug as compensation for providing educational presentations.  In addition, but no less important, Moran improperly prescribed powerful schedule II controlled substances resulting in two deaths.  While physicians are properly given great leeway under the law to treat their patients, we are compelled to intervene when their fraudulent and criminal actions cause harm to others.  We are grateful for the thorough investigative work of our federal agency partners.” 

“Dr. Moran was responsible for the criminal distribution of oxycodone and sublingual fentanyl, both of which are extremely powerful and dangerous prescription opioid painkillers.  Moran’s unlawful prescribing ultimately resulted in the death of two people.” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division.  “Doctors have a legal and ethical obligation to prescribe these medications only for legitimate medical purposes and to do no harm to their patients.  The kickbacks that Dr. Moran received for being one of the highest prescribers of sublingual fentanyl in Pennsylvania showed his utter disregard for these same obligations.” 

“An important mission of the Office of Inspector General is to investigate allegations of fraud related to the U.S. Department of Labor’s (DOL) Office of Workers’ Compensation Programs (OWCP).  We will continue to work with our law enforcement partners and OWCP to protect the integrity of DOL’s benefit programs,” said Derek Pickle, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.

U.S. Postal Service Office of Inspector General Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office stated, “the U.S. Postal Service spends billions of dollars per year in workers compensation-related costs, most of which are legitimate. However, when medical providers choose to flout the rules and profit illegally, special agents with the USPS OIG will work with our law enforcement partners to hold them responsible. To report fraud or other criminal activity involving the Postal Service, contact our special agents at www.uspsoig.govor 888-USPS-OIG.”

The charges stem from an investigation initiated in 2016 by the Drug Enforcement Administration (DEA) located in Scranton, the United States Postal Service – Office of Inspector General, Department of Labor – Office of Inspector General, U.S. Office of Personnel Management – Office of Inspector General (OPM/OIG) and the Pennsylvania Attorney General’s Office.  Prosecution is assigned to Assistant United States Attorneys Michelle Olshefski and Michael Consiglio.

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

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

In this case, the maximum penalty under the federal statute for the unlawful distribution of controlled substances resulting in death is life imprisonment.  The unlawful distribution of controlled substances charges carry a maximum term of 20 years’ imprisonment.  The charges related to receiving health care kickbacks carry a maximum sentence of 10 years’ imprisonment.  Each charge also carries a fine and a term of supervised release following any period of incarceration.  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 two previously deported aliens were indicted separately on September 9, 2020, by a federal grand jury for illegal reentry into the United States. These matters arose in counties throughout the District including York, and Lackawanna.

According to United States Attorney David J. Freed, Saldivar Tapia was previously deported from the United States to Mexico in June 2013.  He is alleged to have illegally reentered the United States sometime after June 2013 and was found in the United States in Lackawanna County, Pennsylvania after eluding examination or inspection by immigration officers.

Marin Ortiz was previously deported from the United States to Mexico in October 2017.  He is alleged to have illegally reentered the United States sometime after October 2017 and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.

These cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO).  Assistant United States Attorney Joanne Sanderson is prosecuting the cases.

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

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.

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 today that Enrique Reyes, age 20, of Bronx, New York pleaded guilty to aggravated identity theft on September 8, 2020 before United States District Court Judge Sylvia H. Rambo.

According to United States Attorney David J. Freed, on January 4, 2020, in the borough of Steelton, Dauphin County, Pennsylvania, Reyes along with Josue Peguero, age 21, of Bronx, New York and Marlon Valoy De La Rosa, age 21, of Bronx, New York tampered with a U.S. Mail collection box using a rope with an object attached to it to “fish” into the mailbox’s opening.  Reyes, De La Rosa, and Peguero also made several fraudulent ATM transactions using stolen checks and debit cards in other persons’ names that were obtained elsewhere. De La Rosa and Peguero were previously charged separately and are awaiting trial.

At the time of their arrest, Reyes, De La Rosa, and Peguero also were allegedly in possession of several debit cards in different names, a stolen license plate that is believed to have been used for mail fishing, and what appeared to be a “washed” check—a check from which the writing had been visibly removed.

The case was investigated by the United States Postal Inspection Service and the Steelton Borough Police Department. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.

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

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.

Aggravated identity theft carries a mandatory two-year prison sentence. The charge may also carry a fine of up to $250,000 and a one-year term of supervised release following imprisonment. 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.

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Frank Kelly, age 63, of New Cumberland, Pennsylvania, was indicted on August 26, 2020, for conspiracy to defraud the Internal Revenue Service.  Kelly appeared before United State Magistrate Judge Martin C. Carlson on September 4, 2020, and pled not guilty to the charge.  Trial is scheduled for November 2, 2020, before United States District Court Judge Jennifer P. Wilson.   

According to United States Attorney David J. Freed, Kelly was an enrolled agent with the I.R.S. which permitted him to represent clients who were being audited by the I.R.S.  The indictment alleges that in 2014 Kelly conspired with a client to defraud the I.R.S. with respect to the client’s 2010, 2011, and 2012 tax returns which were under civil audit.  Specifically, it is alleged that Kelly knowingly made false statements to the Revenue Agent who was conducting the audit that resulted in a lower amount of taxes being assessed against the client. 

The case was investigated by the Criminal Investigation Division of the I.R.S. and is assigned to Assistant United States Attorney Kim Douglas Daniel for prosecution.

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

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 maximum penalty under federal law is 5 years of 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.

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Caraballo, age 37, formerly of Vermont, pleaded guilty on September 4, 2020, before U.S. District Court Judge Robert D. Mariani, to assault with a dangerous weapon and possession of contraband in prison.   

According to United States Attorney David J. Freed, Caraballo, an inmate at USP Canaan, admitted to assaulting another inmate with a sharpened piece of metal commonly known as a “shank.”  Caraballo also admitted to possessing the metal “shank,” which is contraband in a federal prison.  The incident occurred in February 2017. 

Judge Mariani ordered a presentence report to be completed.  Sentencing will be scheduled at a later date.

The case was investigated by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service.  Assistant United States Attorney Robert J. O’Hara prosecuted the case.

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 maximum penalty under federal law is 10 years of 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.

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 3, 2020, Miguel Scott Arnold, age 33, of Harrisburg, Pennsylvania, was sentenced to 25 years’ imprisonment by United States District Court Judge Sylvia H. Rambo, for his role as the leader of a human trafficking operation.

According to United States Attorney David J. Freed, Arnold was convicted on June 21, 2019, after a four-day jury trial. He was convicted of (1) conspiracy to commit sex trafficking by force, fraud, and coercion; (2) sex trafficking by force, fraud, and coercion; (3) conspiracy to possess with intent to distribute heroin and marijuana; and (4) possession with intent to distribute heroin. Arnold was part of a significant sex trafficking operation that exploited over 20 victims, including juveniles.  Arnold and his co-conspirators coerced the sex trafficking victims though fraud, physical assault, the deprivation of heroin to addicted victims, and threats of violence.  

Four co-defendants in the case previously pleaded guilty to engaging in sex trafficking by force, fraud, and coercion, participated in a conspiracy that began in Harrisburg in the fall of 2015, and continued until it was dismantled in August 2016.  Arnold and the co-conspirators rented hotel rooms and posted “escort” advertisements and photographs on backpage.com, a website that the FBI has since seized and which is no longer operational.  Arnold and his co-conspirators would frequently solicit women to engage in prostitution by lying to them about the services that they would be expected to perform.  Arnold and his co-conspirators would also target victims who were vulnerable by virtue of their age, financial insecurity, or drug addiction.  At least three victims of the conspiracy were minors, one as young as 14 years old.  Arnold and the others would take the majority of the money made during the course of the prostitution business, and distributed drugs to the women, including heroin.

In addition to Arnold, four others from Harrisburg were charged in the indictment:

• Tevin Bynoe, age 27, pleaded guilty to sex trafficking by force, fraud, and coercion on September 20, 2018, and is awaiting sentencing;
• Terrence Hawkins, age 26, pleaded guilty to sex trafficking by force, fraud, and coercion on September 20, 2018, and is awaiting sentencing;
• Joshua Guity-Nunez, age 31, pleaded guilty to conspiracy to engage in sex trafficking by force, fraud, and coercion, and was sentenced to 15 years’ imprisonment on July 10, 2020; and
• Emonie Murphy, age 23, pleaded guilty to sex trafficking by force, fraud, and coercion on August 27, 2018, and was sentenced to six years’ imprisonment on September 3, 2020.  

Arnold faced a mandatory sentence of 15 years in prison for his role as the leader of sex trafficking operation. Judge Rambo noted the seriousness of the criminal conduct as the compelling reason justifying the sentence.

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 For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

The FBI coordinated the investigation and was aided by law enforcement agencies in the Harrisburg area.  Assistant U.S. Attorneys Michael A. Consiglio and Christian T. Haugsby prosecuted the case on behalf of the United States.

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SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 1, 2020, Earnest Lee Pittman, Jr., age 45, of Cresco, Pennsylvania, was indicted by a federal grand jury on online child enticement charges.

According to United States Attorney David J. Freed, the indictment alleges that between August 4-12, 2020, Pittman used the internet, a computer and a cellular telephone in an attempt to entice an individual under the age of 18 to engage in sexual activities.

The case was investigated by the Federal Bureau of Investigation (FBI) and the Kingston Municipal Police Department. 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  www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

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

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 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.

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HARRISBURG – The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that Dr. Donald Yorlets, age 66, of New Oxford, Pennsylvania, pleaded guilty today before U.S. District Court Judge Jennifer P. Wilson to defrauding the U.S. Department of Agriculture between 2016 and 2019 by submitting false blood samples for bovine disease testing and by issuing false Certificates of Veterinary Inspection for the animals.  Yorlets has been a Pennsylvania licensed veterinarian since 1981. 

According to U.S. Attorney David J. Freed, federal law requires that each cow transported in interstate or international commerce be first tested for various bovine diseases, such as Bovine Tuberculosis, Brucellosis, Bovine Leucosis and Bovine Viral Diarrhea. Bovine Tuberculosis and Brucellosis are communicable diseases that can be transmitted to humans under certain circumstances.  Bovine Tuberculosis is screened for by what is known as a Caudal Fold skin test. The test must be administered by a USDA accredited veterinarian and involves the injection of a tuberculin substance under the skin and checking it for a reaction 72 hours later.  Testing for Brucellosis, Bovine Leucosis and Bovine Viral Diarrhea requires the drawing of blood and the submission of samples to an accredited laboratory for analysis.

Animals transported in international commerce can only be exported with an International Certificate of Veterinarian Inspection (ICVI).  To lawfully issue an ICVI, a USDA accredited veterinarian must verify that each animal has been physically examined, tested for disease, vaccinated and medically treated as required by the USDA prior to shipment. 

During the guilty plea hearing Yorlets admitted that he conspired with two unnamed exporters to avoid the disease testing requirements by falsely representing he tested every cow for Bovine Tuberculosis when, in fact, he did not.   Yorlets also admitted he submitted hundreds of non-authentic, bovine blood samples to a PA Department of Agriculture testing laboratory in Harrisburg for testing and by issuing false Certificates of Veterinary Inspection for the untested animals.  The false blood test results and Certificates enabled the sellers to quickly export hundreds of untested cows to Mexico, Canada, Qatar, and Puerto Rico.

The investigation began in 2017 when the Pennsylvania Veterinary Laboratory (PVL) in Harrisburg became suspicious that dozens of blood specimens submitted by Dr. Yorlets were not authentic.  To confirm their suspicions the PVL sent 804 blood samples submitted by Dr. Yorlets to the USDA’s National Veterinary Services Laboratory (NVSL) in Iowa for Antibody Profile testing.

Each animal has a unique Antibody Profile in its blood.  If all of the Yorlets’ blood specimens were genuine, Antibody Profile testing should have shown that all 804 blood samples had a unique Antibody Profile.  However, the NVSL’s testing only found 70 unique Antibody Profiles in the 804 samples.  The results confirmed that Dr. Yorlets’ repeatedly submitted the same blood samples for different animals and issued false Certificates of Veterinary Inspection for hundreds of cows that were never tested.  This allowed the sellers to export the animals quickly and reduce expenses incurred in keeping the animals on domestic feeder lots.

Dr. Yorlets’ stipulated the loss sustained by the USDA for the out of pocket laboratory expenses was $38,005, and has agreed to make full restitution in that amount. No date has been scheduled for Yorlets’ sentencing pending preparation of a pre-sentence report.

The case was investigated by the USDA’s Office of Inspector General and the Department of Homeland Security.  Assistant United States Attorney Kim Douglas Daniel is prosecuting the case. 

The maximum penalty for this offense is five years imprisonment and a $250,000 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, and could include a term of supervisory 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.

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WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 27, 2020, David Piaquadio, age 63, of Galeton, Pennsylvania, was sentenced by U.S. District Court Judge Christopher C. Conner to 20 years’ imprisonment following his conviction for conspiracy to distribute Oxycodone, Fentanyl and Heroin, distribution of Oxycodone and Fentanyl, and attempted distribution of Oxycodone.

According to U.S. Attorney David J. Freed, on March 12, 2015, Piaquadio delivered Fentanyl to an individual who overdosed after using the drug.  The overdose victim was found by his mother unconscious with a syringe stuck in his right arm in close proximity to a metal spoon containing Fentanyl residue that was distributed by Piaquadio. 

Piaquadio admitted that he and his girlfriend, who is now deceased, sold between 100 to 120 Oxycodone tablets and one or two Fentanyl patches per month.  On the morning of March 12, 2015, the day he delivered Fentanyl to the overdose victim, Piaquadio filled a prescription for 150 Oxycodone tablets and 10 Fentanyl patches.

The federal investigation was conducted by the Office of Inspector General, U.S. Department of Health and Human Services, the Pennsylvania State Police, with the assistance of the Galeton Borough Police Department and the Potter County District Attorney’s Office.  Assistant United States Attorneys Geoffrey W. MacArthur and George J. Rocktashel 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 Opioids like Fentanyl and Oxycodone.  Led by the United States Attorney’s Office, the Heroin Initiative targets 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 heroin related offenses.

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 maximum penalty under federal law for this offense is life imprisonment, a 20-year mandatory minimum sentence because the drug offense resulted in serious bodily injury, 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.

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 27, 2020, Truman Jones, age 45, of Wilkes-Barre, Pennsylvania, was sentenced to 211 months’ imprisonment and four years of supervised release by United States District Judge Malachy E. Mannion, for heroin and crack cocaine trafficking and firearms offenses.

According to U.S. Attorney David J. Freed, Jones was convicted by a jury of all counts charged in the indictment: one count of conspiring to distribute 100 grams and more of heroin and crack cocaine, seven counts of distributing and possessing with intent to distribute heroin, and one count of possessing firearms in furtherance of his drug trafficking activities.

The evidence presented at trial showed that between the summer of 2015 and February 2016, Jones worked with several other individuals to distribute hundreds of grams of heroin and crack cocaine, often mixed with other controlled substances, including fentanyl, tramadol, and cocaine, in the Wilkes-Barre area.  During a search warrant executed at a drug house maintained by Jones and another member of his conspiracy, the United States seized three loaded firearms, approximately 90 grams of heroin, and over $4,600.  As a felon, Jones was prohibited from possessing firearms.

At sentencing, Jones was held accountable for at least 400 grams of heroin, which is the equivalent of approximately 16,000 potentially fatal doses of heroin, and for maintaining a drug stash house used to store, package, and sell narcotics.  In pronouncing the sentence, Judge Mannion also highlighted Jones’s role as the leader of his drug trafficking organization, extensive criminal history, and the presence of young children when he was caught packaging heroin during a search warrant execution.

As part of the sentence, Judge Mannion forfeited two firearms and ammunition seized from Jones, multiple electronics, and $4,642.  Investigators recovered and forfeited other firearms and ammunition from other codefendants.

Jones is the last defendant to be sentenced in this investigation.  Five other members of his drug ring previously were sentenced after pleading guilty:

1. Davon Beckford, of Wilkes-Barre, Pennsylvania, was sentenced to time served of approximately 13 months’ imprisonment and three years of supervised release.  After violating the terms of his supervised release, Beckford was sentenced to an additional 6 months’ imprisonment.
2. Jaquan Henderson, of Wilkes-Barre, Pennsylvania, was sentenced to 96 months’ imprisonment and three years of supervised release.
3. Stephanie Walter, of Sugar Notch, Pennsylvania, was sentenced to two years’ probation.
4. Al Dunlap, of Wilkes-Barre, Pennsylvania, was sentenced to 108 months’ imprisonment and three years of supervised release.
5. Na’Deardra Mayhams, of Wilkes-Barre, Pennsylvania, was sentenced to 66 months’ imprisonment and three years of supervised release.

The matter was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives, the Wilkes-Barre Police Department, the Luzerne County Drug Task Force, and the Pennsylvania State Police.  Assistant United States Attorneys Phillip J. Caraballo and Jenny Roberts 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

This case also is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.  Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.

This case further 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.

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SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kevin Peterson, age 36, of Scranton, Pennsylvania, was sentenced to 41 months’ imprisonment followed by three years on supervised release on August 25, 2020, by U.S. District Court Judge Malachy E. Mannion for participating in a conspiracy to distribute alpha-pvp, commonly known as “bath salts.”

According to United States Attorney David J. Freed, Peterson admitted to agreeing with others to distribute the drug to customers in the Luzerne County area during 2014 and 2015. The members of the conspiracy obtained the alpha-pvp from suppliers in China.

Peterson was one of seven people charged by a grand jury in August 2016. That indictment was the fourth wave of arrests connected to alpha-pvp distribution in Luzerne County. In all, 18 people have been charged in the case since July 2013, including the Texas-based suppliers of the bath salts. All of the defendants have entered guilty pleas in the case.

The investigation was conducted by Homeland Security Investigations, United States Postal Inspectors, the Drug Enforcement Administration, members of the Pennsylvania State Police, and local police from Luzerne County. Assistant United States Attorney Francis P. Sempa 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

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SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that William Barratt, age 40, of Sugarloaf Township, Pennsylvania, was sentenced to five years’ imprisonment on August 27, 2020, by U.S. District Court Judge Malachy E. Mannion for receiving child pornography.

According to United States Attorney David J. Freed, Barratt previously pleaded guilty to using his cell phone and computer to access images and videos of child pornography from websites on the internet. Barratt committed the offense between April 2018 and March 5, 2019, in Luzerne County.

Judge Mannion also ordered Barratt to serve five years on supervised release following his prison sentence. Barratt must also pay restitution in the amount of $3000 to each of nine victims identified in the images of child pornography that were seized from Barratt’s devices. Judge Mannion also ordered Barratt to undergo sex offender treatment and to comply with the Sex Offender Registration and Notification Act.

The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Luzerne County District Attorney’s Office. Assistant United States Attorney Francis P. Sempa 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 For more information about internet safety education, please visit  www.usdoj.gov/psc and click on the tab "resources."

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 11, 2020, Todd Houghtlin, age 50, of Duryea, Pennsylvania, was indicted by a federal grand jury for illegal possession of a firearm and fentanyl.

According to United States Attorney David J. Freed, the indictment alleges that on July 14, 2020, Houghtlin, who was a user of illegal drugs, was found in possession of fentanyl and a .380 caliber handgun loaded with four rounds of ammunition. 

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Luzerne County Drug Task Force and the Kingston Police Department, Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.

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

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 maximum penalty for the firearm offense is ten years’ 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.

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