Middle District of Pennsylvania

SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that Emmanuel Delcastillo, age 26, of Tobyhanna, pleaded guilty on November 14, 2018, before U.S. Magistrate Judge Karoline Mehalchick to distributing heroin in July 2014.

According to United States Attorney David J. Freed, Delcastillo admitted to distributing 100 bags of heroin to a confidential informant on July 1, 2014, in Tobyhanna.  

Judge Mehalchick ordered a pre-sentence investigation to be completed. Sentencing will be scheduled at a later date.

Delcastillo was indicted by a federal grand jury in October 2014, as a result of an investigation by the Drug Enforcement Administration, the Pennsylvania State Police, and Pocono Mountain Regional Police. Assistant U.S. Attorney Francis P. Sempa 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. Attorney General Jeff Sessions 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.

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 20 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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HARRISBURG, The United States Attorney’s Office for the Middle District of Pennsylvania announced that VWR International, LLC, a global laboratory supplier and distributor of chemicals, has agreed to pay the United States $430,194.25 to settle allegations from a self-disclosure by VWR to the Department of Navy.

According to the voluntary disclosure and the investigation that followed, from October 1, 2011, through March 16, 2015, VWR, which acquired VWR Chemicals, LLC, formerly Anachemia chemicals, LLC, allegedly failed to disclose that Anachemia was no longer a small business in contracts awarded and paid by the Naval Supply Weapons Systems Support (NSWSS), Mechanicsburg, Pennsylvania.  VWR has since taken corrective action.  This settlement resolves the matter without the filing of litigation.

This case was investigated by the United States Attorney’s Office for the Middle District of Pennsylvania and the United States Naval Criminal Investigative Service of the NSWSS.  This matter was handled by Assistant United States Attorney Melissa Swauger for the United States Attorney’s Office.

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SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that James Famularo, age 61, of Swiftwater, Pennsylvania, was charged in a criminal information with tax evasion.

According to United States Attorney David J. Freed, the information alleges that Famularo failed to report a total of $646,663.40 in income between tax years 2012 ($197,611.60), 2013 ($153,745.10), 2014 ($145,510.20), and 2015 ($149,796.50).  Famularo, who was then a resident of Pocono Summit, Pennsylvania, allegedly filed false Form 1040 Individual Income Tax Returns for each of those tax years.

The case was investigated by the Internal Revenue Service’s Criminal Investigations Division.  The case is being prosecuted by Assistant U.S. Attorney Phillip J. Caraballo.

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 for this offense is five 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 has announced that a Grand Jury in Scranton returned a two-count Indictment yesterday charging a Monroe County man with drug distribution resulting in the death of two individuals.

According to United States Attorney David J. Freed, the Indictment alleges that on or about August 10, 2018, to on or about August 12, 2018, Vincent John Ingino, age 27, of East Stroudsburg, Monroe County, Pennsylvania, knowingly and intentionally distributed and possessed with intent to distribute controlled substances that included a mixture of acetyl fentanyl, fentanyl and heroin, causing the deaths of two individuals.

The charges stem from a joint investigation involving the Federal Bureau of Investigation (FBI) in Scranton, the Pennsylvania State Police, and Detectives from the Monroe County District Attorney’s Office.  Prosecution is assigned to Assistant U.S. Attorney Michelle Olshefski.

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

This case is 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. Attorney General Jeff Sessions 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.

Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature 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.

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 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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SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Leticia Corona-Salazar, age 40, of Tlaxcala, Mexico, was sentenced yesterday by United States District Judge James M. Munley to a time-served sentence of approximately 6 months imprisonment for committing passport fraud.

According to United States Attorney David J. Freed, Corona-Salazar 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 Homeland Security Investigations and the Internal Revenue Service.  The case was prosecuted by Deputy Criminal Chief William S. Houser and by Assistant United States Attorney Phillip J. Caraballo.

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SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Holly Kaszuba, age 45, of Dickson City, was found guilty of unlawfully distributing a controlled substance resulting in the death of another person after a five-day trial before Senior U.S. District Court Judge A. Richard Caputo. 

According to United States Attorney David J. Freed, jurors deliberated for approximately two hours before rendering the guilty verdict against Kaszuba for the December 13, 2015 death of Christopher Graff, age 30, of Dunmore, Pennsylvania.

Prosecutors from the U.S. Attorney’s Office presented the testimony of Dr. Gary Ross, Forensic Pathologist, Dr. Michael Coyer, Forensic Toxicologist, and Dr. Stacey Hail, an expert in Emergency Medicine and Medical Toxicology.  All three opined that fentanyl laced heroin caused the death of Christopher Graff.  Additional testimony was provided by Dunmore Police Detectives and other individuals related to the investigation who testified that Kaszuba arranged and facilitated the distribution of the fentanyl laced heroin to Christopher Graff that ultimately caused his death.

The investigation was conducted by the Drug Enforcement Administration – Scranton Office, the Dunmore and Scranton Police Departments, the Lackawanna County District Attorney’s Office, the Lackawanna County Office of Probation/Parole, and the Coroner’s Office of Lackawanna County.  Assistant United States Attorneys Michelle Olshefski and Daryl Bloom prosecuted the case.

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

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. Attorney General Jeff Sessions 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 maximum penalty under federal law is life in prison, a term of supervised release following imprisonment, and a fine. The drug distribution resulting in death charge also carries a mandatory minimum penalty of 20 years’ 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.          

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            From the day that Jeff Sessions took office as Attorney General of the United States, he motivated law enforcement professionals at all levels to recommit to the highest ideals of community protection, public service and respect for the rule of law.  AG Sessions made crystal clear to anyone who had the honor of working with him that he was leading a department that he loves. 

            The United States Attorneys Office for the Middle District of Pennsylvania had the great fortune to host Attorney General Sessions on two visits during his tenure.  During those visits Attorney General Sessions made sure to include time in his schedule to meet with members of state and local law enforcement, as well as our employees and federal partners.  Attorney General Sessions truly recognized that we accomplish so much more working together.  And under his leadership the Department of Justice has reduced violent crime, attacked the heroin and opioid crisis, protected our borders, dismantled transnational criminal organizations and steadfastly upheld the rule of law.

            Jeff Sessions is a prosecutor at heart, a respected public servant and a true gentleman.  We are proud to have served under his leadership.

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HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Patrick Bruce Reachard, age 53, a resident of Spring Grove, Pennsylvania was sentenced yesterday by U.S. District Court Judge Yvette Kane to 200 months’ imprisonment in a child pornography case.  On June 19, 2018, Reachard pleaded guilty to the sexual exploitation of children involving the production of child pornography, receipt and distribution of child pornography and possession of child pornography.

According to United States Attorney David J. Freed, Reachard took sexually explicit photographs of at least one minor under five years of age and distributed those images online.  After completing a forensic examination of Reachard’s electronic devices, investigators discovered Reachard also received numerous images of child pornography from various users.  During the investigation, agents and troopers worked cooperatively to identify other individuals involved in this child pornography trading ring in other federal districts.  Law enforcement arrested one perpetrator in Kentucky; he pleaded guilty and has been sentenced in federal court on similar charges. 

This case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.

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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WASHINGTON – MoneyGram International Inc. (MoneyGram), a global money services business headquartered in Dallas, Texas, has agreed to extend its deferred prosecution agreement and forfeit $125 million due to significant weaknesses in MoneyGram’s anti-fraud and anti-money laundering (AML) program resulting in MoneyGram’s breach of its 2012 deferred prosecution agreement (DPA).  In addition to the monetary payment and extension of the deferred prosecution agreement, the company must enhance its anti-fraud and AML compliance programs. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney David J. Freed of the Middle District of Pennsylvania, Federal Trade Commission (FTC) Chairman Joseph Simons and Postal Inspector-in-Charge Daniel B. Brubaker of the U.S. Postal Inspection Service (USPIS) Philadelphia Division made the announcement.

A two-count felony criminal information was filed on Nov. 9, 2012, in the Middle District of Pennsylvania charging MoneyGram with willfully failing to maintain an effective AML program and aiding and abetting wire fraud.  The government agreed to defer prosecution on the information for five years provided MoneyGram complied with the DPA.  Today’s amendment to the agreement will extend the term of the DPA for 30 months. 

According to court documents filed in 2012, MoneyGram was involved in consumer fraud schemes perpetrated by corrupt MoneyGram agents and others.  In the fraud scams, which generally targeted the elderly and other vulnerable groups, perpetrators contacted victims in the United States and falsely posed as victim’s relatives in urgent need of money, falsely promised large cash prizes, or promised items for sale over the internet at deeply discounted prices.  The perpetrators required the victims to send funds through MoneyGram’s money transfer system.

According to the joint motion filed today to extend and amend the DPA, MoneyGram breached its 2012 DPA.   During the course of the DPA, MoneyGram experienced significant weaknesses in its AML and anti-fraud program, inadequately disclosed these weaknesses to the government, and failed to complete all of the DPA’s required enhanced compliance undertakings.  As a result of its failures, MoneyGram processed at least $125 million in additional consumer fraud transactions between April 2015 and October 2016. 

Today, as a result of MoneyGram’s breach of the DPA, the government filed a motion to extend all the terms of MoneyGram’s DPA and amend and enhance MoneyGram’s compliance requirements pursuant to the DPA.  In addition, MoneyGram agreed to forfeit $125 million, which the department intends to return to victims of fraud through the Justice Department’s Victim Compensation Program.  Under the terms of the extension, the government has agreed to continue to defer prosecution for a period of 30 months, after which time the government would seek to dismiss charges if MoneyGram has complied with the agreement.

As part of the amendment to and extension of the DPA, MoneyGram has agreed to additional enhanced compliance obligations, including creating policies or procedures:

• to block certain reported fraud receivers and senders from using MoneyGram’s money transfer system within two days of receiving a complaint identifying those individuals;
• to require individuals worldwide to provide government-issued identification to send or receive money transfers;
• to monitor all money transfers originating in the United States in its anti-fraud program; and
• to terminate, discipline, or restrict agents processing a high volume of transactions related to reported fraud receivers and senders.

 

In a related case, MoneyGram agreed to settle contempt allegations by the FTC filed today in the U.S. District Court for the Northern District of Illinois, alleging that MoneyGram violated its 2009 order with the FTC. The FTC alleges that MoneyGram failed to implement the comprehensive fraud prevention program mandated by the 2009 order, which requires the company to promptly investigate, restrict, suspend, and terminate high-fraud agents. According to the FTC, MoneyGram was aware for years of the high levels of fraud and suspicious activities involving certain agents, including large chain agents, but failed to promptly conduct required reviews or suspend or terminate agents, as required by the 2009 order.

In resolving the FTC allegations, MoneyGram agreed to a monetary judgment of $125 million and to an expanded and modified order that will supersede the Commission’s 2009 order and apply to money transfers worldwide. The modified order requires, among other things, that the company block the money transfers of known fraudsters and provide refunds to fraud victims in circumstances where its agents fail to comply with applicable policies and procedures. In addition, the modified order includes enhanced due diligence, investigative, and disciplinary requirements.

The USPIS and the U.S. Attorney’s Office for the Middle District of Pennsylvania have been investigating and prosecuting consumer fraud schemes using MoneyGram’s money transfer system since 2007. To date, the U.S. Attorney’s Office of the Middle District of Pennsylvania has charged 37 MoneyGram agent owners for conspiracy, money laundering and fraud-related violations.  Twenty-eight of those charged have been convicted.

USPIS’s Philadelphia Division’s Harrisburg, Pennsylvania Office investigated the case.  Senior Trial Attorney Margaret A. Moeser of the Criminal Division’s Money Laundering and Asset Recovery Section’s Bank Integrity Unit and Assistant U.S. Attorney Kim Douglas Daniel of the Middle District of Pennsylvania are prosecuting the case.  The department appreciates the significant cooperation and assistance provided by the FTC in this matter.

Persons who believe they were victims of the fraud scheme should visit the Department of Justice’s victim website at MoneyGramRemission.com or call 844-269-2630 for updates on how to request compensation as a result of this action.

The Victim Compensation Program, operated by the Money Laundering and Asset Recovery Section, is composed of a team of experienced professionals, including attorneys, accountants, auditors and claims analysts.  In hundreds of cases, the Victim Compensation Program has successfully used its specialized expertise to efficiently convert forfeited assets to victim recoveries.

The Bank Integrity Unit investigates and prosecutes complex, multi-district, and international criminal cases involving financial institutions.  The Unit’s prosecutions focus on banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.

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MoneyGram International Inc. (MoneyGram), a global money services business headquartered in Dallas, Texas, has agreed to extend its deferred prosecution agreement and forfeit $125 million due to significant weaknesses in MoneyGram’s anti-fraud and anti-money laundering (AML) program resulting in MoneyGram’s breach of its 2012 deferred prosecution agreement (DPA).  In addition to the monetary payment and extension of the deferred prosecution agreement, the company must enhance its anti-fraud and AML compliance programs. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney David J. Freed of the Middle District of Pennsylvania, Federal Trade Commission (FTC) Chairman Joseph Simons and Postal Inspector-in-Charge Daniel B. Brubaker of the U.S. Postal Inspection Service (USPIS) Philadelphia Division made the announcement.

A two-count felony criminal information was filed on Nov. 9, 2012, in the Middle District of Pennsylvania charging MoneyGram with willfully failing to maintain an effective AML program and aiding and abetting wire fraud.  The government agreed to defer prosecution on the information for five years provided MoneyGram complied with the DPA.  Today’s amendment to the agreement will extend the term of the DPA for 30 months. 

According to court documents filed in 2012, MoneyGram was involved in consumer fraud schemes perpetrated by corrupt MoneyGram agents and others.  In the fraud scams, which generally targeted the elderly and other vulnerable groups, perpetrators contacted victims in the United States and falsely posed as victim’s relatives in urgent need of money, falsely promised large cash prizes, or promised items for sale over the internet at deeply discounted prices.  The perpetrators required the victims to send funds through MoneyGram’s money transfer system.

According to the joint motion filed today to extend and amend the DPA, MoneyGram breached its 2012 DPA.  During the course of the DPA, MoneyGram experienced significant weaknesses in its AML and anti-fraud program, inadequately disclosed these weaknesses to the government, and failed to complete all of the DPA’s required enhanced compliance undertakings.  As a result of its failures, MoneyGram processed at least $125 million in additional consumer fraud transactions between April 2015 and October 2016. 

Today, as a result of MoneyGram’s breach of the DPA, the government filed a motion to extend all the terms of MoneyGram’s DPA and amend and enhance MoneyGram’s compliance requirements pursuant to the DPA.  In addition, MoneyGram agreed to forfeit $125 million, which the department intends to return to victims of fraud through the Justice Department’s Victim Compensation Program.  Under the terms of the extension, the government has agreed to continue to defer prosecution for a period of 30 months, after which time the government would seek to dismiss charges if MoneyGram has complied with the agreement.

As part of the amendment to and extension of the DPA, MoneyGram has agreed to additional enhanced compliance obligations, including creating policies or procedures:

• to block certain reported fraud receivers and senders from using MoneyGram’s money transfer system within two days of receiving a complaint identifying those individuals;
• to require individuals worldwide to provide government-issued identification to send or receive money transfers;
• to monitor all money transfers originating in the United States in its anti-fraud program; and
• to terminate, discipline, or restrict agents processing a high volume of transactions related to reported fraud receivers and senders.

In a related case, MoneyGram agreed to settle contempt allegations by the FTC filed today in the U.S. District Court for the Northern District of Illinois, alleging that MoneyGram violated its 2009 order with the FTC.  The FTC alleges that MoneyGram failed to implement the comprehensive fraud prevention program mandated by the 2009 order, which requires the company to promptly investigate, restrict, suspend, and terminate high-fraud agents.  According to the FTC, MoneyGram was aware for years of the high levels of fraud and suspicious activities involving certain agents, including large chain agents, but failed to promptly conduct required reviews or suspend or terminate agents, as required by the 2009 order.

In resolving the FTC allegations, MoneyGram agreed to a monetary judgment of $125 million and to an expanded and modified order that will supersede the Commission’s 2009 order and apply to money transfers worldwide.  The modified order requires, among other things, that the company block the money transfers of known perpetrators of fraud schemes and provide refunds to fraud victims in circumstances where its agents fail to comply with applicable policies and procedures.  In addition, the modified order includes enhanced due diligence, investigative, and disciplinary requirements.

The USPIS and the U.S. Attorney’s Office for the Middle District of Pennsylvania have been investigating and prosecuting consumer fraud schemes using MoneyGram’s money transfer system since 2007.  To date, the U.S. Attorney’s Office of the Middle District of Pennsylvania has charged 37 MoneyGram agent owners for conspiracy, money laundering and fraud-related violations.  Twenty-eight of those charged have been convicted.

USPIS’s Philadelphia Division’s Harrisburg, Pennsylvania Office investigated the case.  Senior Trial Attorney Margaret A. Moeser of the Criminal Division’s Money Laundering and Asset Recovery Section’s Bank Integrity Unit and Assistant U.S. Attorney Kim Douglas Daniel of the Middle District of Pennsylvania are prosecuting the case.  The department appreciates the significant cooperation and assistance provided by the FTC in this matter.

Persons who believe they were victims of the fraud scheme should visit the Department of Justice’s victim website at MoneyGramRemission.com or call 844-269-2630 for updates on how to request compensation as a result of this action.

The Victim Compensation Program, operated by the Money Laundering and Asset Recovery Section, is composed of a team of experienced professionals, including attorneys, accountants, auditors and claims analysts.  In hundreds of cases, the Victim Compensation Program has successfully used its specialized expertise to efficiently convert forfeited assets to victim recoveries.

The Bank Integrity Unit investigates and prosecutes complex, multi-district, and international criminal cases involving financial institutions.  The Unit’s prosecutions focus on banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dickson Gutierrez, age 43, of Scranton, Pennsylvania, was sentenced on November 6, 2018, by Senior U.S. District Court Judge James M. Munley to serve 50 months’ imprisonment and three years’ supervised release for cocaine trafficking.  Gutierrez was also sentenced to serve an additional 10 months in prison for violating the terms of his supervised release by committing the offense.

According to United States Attorney David J. Freed, Gutierrez previously admitted to possessing between 300 and 400 grams of cocaine for further distribution.  The charge stems from an investigation, conducted in August 2017, in which police made two purchases of cocaine from Gutierrez and then obtained a search warrant for Gutierrez’s residence and vehicle, both located on Hampton Street in Scranton, and seized additional amounts of cocaine as well as $10,275 in cash.  Gutierrez was on court-ordered supervised release at the time of these incidents. 

The investigation was conducted by the Drug Enforcement Administration, the Pennsylvania State Police and the Scranton Police Department.  Assistant United States Attorney Robert J. O’Hara 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.  Attorney General Jeff Sessions 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 today that Maurice L. Ross, age 35, of Harrisburg, Pennsylvania, was convicted on November 6, 2018, for unlawful possession of a firearm as a convicted felon and three armed robberies after a two-day jury trial before United States District Court Judge Yvette Kane.

According to United States Attorney David J. Freed, the jury returned the verdict after approximately two hours of deliberations and convicted Ross of three counts of a felon in possession of a firearm (a Charter Arms .38 caliber revolver), three counts of interference with commerce by threats or violence, and three counts of carrying and brandishing a firearm in furtherance of a crime of violence.

Ross robbed the Brookwood Mart, located in Harrisburg, by gunpoint on three separate occasions on December 8, 17, and 22, 2016. Each time, he stole hundreds of dollars of cash from the store registers.  Two of the three times, he also stole dozens of instant lottery tickets.

There was surveillance footage from the robberies, but Ross was heavily hooded and masked, so identification was a significant issue, but Ross cashed some of the stolen lottery tickets the morning after one of the robberies at another convenience store, before the tickets could even be reported stolen.  The PA Lottery provided the location, date and time of the cashings, and Harrisburg detectives were able to review in-store surveillance videos at the store where the tickets were cashed.  That surveillance footage revealed a license plate that led detectives to Ross’ residence where a search warrant was executed.  Detectives found the very distinctive gun Ross used in all three robberies, a shirt tied like a mask, a pair of black boots, a black knit hat and a flat-brimmed hat seen in surveillance footage. 

The case was investigated by the Harrisburg Police Department.  Assistant United States Attorneys James T. Clancy and Carl 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. Attorney General Jeff Sessions 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.

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 each of the unlawful possession of firearm charges is 10 years in prison, a term of supervised release following imprisonment, and a fine.  The maximum penalty for each of the armed robbery charges is 20 years in prison, a term of supervised release following imprisonment, and a fine.  The maximum penalty for each charge of brandishing a firearm during a crime of violence is life in prison; each of those charges carries a mandatory consecutive 25-year sentence.  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 John Jacob Hasay, age 21, of Benton, Pennsylvania, was charged in a criminal information with the illegal possession of a machinegun.

According to United States Attorney David J. Freed, the information alleges that Hasay possessed a Glock 19 9mm bearing an auto sear from October 22, 2017 through August 23, 2018.  Law enforcement identified Hasay after he posted content in online forums espousing racist, white supremacist, and Nazi ideologies, and threatened to commit a hate crime.

The information also seeks forfeiture of several firearms, ammunition, and firearms components, including:

1. Glock 19 9mm bearing an auto sear;
2. CAA Model G3, Micro Roni pistol carbine conversion bearing a scope;
3. IWI Model MP Uzi bearing a shortened barrel (a semiautomatic firearm that is capable of accepting a large capacity magazine);
4. GSG Model 522 bearing a shortened barrel and a Black and Brown optic (a semiautomatic firearm that is capable of accepting a large capacity magazine);
5. Charter Arms Model AR-7 Explorer bearing a shortened barrel (a semiautomatic firearm that is capable of accepting a large capacity magazine);
6. Mossberg Model 500A bearing a shortened barrel;
7. I.O. Inc. Sporter bearing a suppressor (a semiautomatic firearm that is capable of accepting a large capacity magazine); and
8. two suppressors.

Hasay has remained in detention since his arrest on August 23, 2018.

The case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  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. Attorney General Jeff Sessions 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.

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 for this offense 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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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that James Eugene Rought, age 30, of Tunkhannock, Pennsylvania, was indicted on October 16, 2018, by a federal grand jury for drug distribution resulting in death and serious bodily injury. The case was unsealed following Rought’s initial appearance.

According to United States Attorney David J. Freed, the indictment alleges that on or about August 16, 2018, Rought knowingly and intentionally distributed and possessed with intent to distribute fentanyl, a Schedule II controlled substance, causing the death of one person and serious bodily injury to another. 

The charges stem from a joint investigation involving the Federal Bureau of Investigation (FBI) in Scranton, the Wyoming County District Attorney’s Office, and the Wyoming County Detectives.  United States Attorney Michelle Olshefski 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. Attorney General Jeff Sessions 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.

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.

In this case, the maximum penalty under the federal statute for drug distribution resulting in death is life imprisonment.  The maximum penalty for possession with intent to distribute a controlled substance is 20 years imprisonment and a $1,000,000 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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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that John B. Snow, age 26, of Manchester, Pennsylvania, was indicted on October 31, 2018, by a federal grand jury on child exploitation charges and the offense of personation of a federal official, specifically a Deputy U.S. Marshal.  The indictment was unsealed following Snow’s initial appearance. Snow was temporarily detained pending a detention hearing scheduled for November 16, 2018.

According to United States Attorney David J. Freed, the indictment alleges that between January 2017 and April 2017, Snow impersonated a Deputy U.S. Marshal and claimed he was running a training program for the U.S. Marshals Service in the York, Pennsylvania area.  The indictment also alleges between February 18 and 24, 2017, Snow used a minor to produce sexually explicit images and between January 2017 and April 2017, coerced a sixteen-year-old minor online to engage in other sex acts.

The case was investigated by the U.S. Marshals Service, the Federal Bureau of Investigation and the Northern York County Regional Police Department. Assistant U.S. Attorney Meredith A. Taylor 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 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 for these offenses is lifetime 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.

 

# # #

SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Catherine Abbey, age 34, formerly of Saw Creek, Pennsylvania, who now resides in Wisconsin, was sentenced today by Senior U.S. District Court Judge James M. Munley to serve one year in prison for her role in a heroin and cocaine trafficking conspiracy based in Monroe County.

According to United States Attorney David J. Freed, Abbey previously admitted to participating in the drug conspiracy headed by Eddie Pace, which operated in Monroe County between 2012 and 2015. Abbey admitted to obtaining between 80 and 100 grams of heroin (which is equivalent to between 3,000 and 4,000 retail bags of heroin) in Paterson, New Jersey, on several occasions and transporting it to Pace in Monroe County. Pace and others distributed the drugs to customers in the Monroe County area.

Abbey was indicted by a federal grand jury in March 2015. All seven members charged in the indictment have entered guilty pleas. Daryl Trent was sentenced to 90 months in prison. Anton Woodson received a 63-month prison sentence. Shawnette Isaac was sentenced to 30 months in prison. Eddie Pace, the leader of the drug ring, and two other co-conspirators are awaiting sentencing.

Judge Munley ordered Abbey to serve three years on supervised release following her prison sentence.

The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police from Monroe County. 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. Attorney General Jeff Sessions 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.

 

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Keanu Davone Martinez, age 22, of Chambersburg, Pennsylvania, was sentenced on November 1, 2018, by Chief U.S. District Court Judge Christopher C. Conner to 10 years’ imprisonment for transporting a minor for the purposes of committing commercial sex acts.

According to United States Attorney David J. Freed, Martinez and his co-conspirators recruited and transported victims of sex trafficking, girls between the ages of 14 and 24 years old, to engage in commercial sex acts in Pennsylvania, Maryland, Virginia, West Virginia, Florida, Rhode Island, New York and the District of Columbia.  In furtherance of these crimes, Martinez and the others rented hotel rooms and posted advertisements and photographs on backpage.com from July 2012 through January 2015. Martinez, Albert Martinez, Anthony D’Ambrosio and the others would keep the majority of the money made during the course of the prostitution business, and distributed various drugs to the victims, including oxycodone, cocaine hydrochloride and heroin.  

On December 5, 2017, Martinez pleaded guilty to transporting a minor for the purposes of committing commercial sex acts. Albert E. “Pipo” Martinez, age 36, of Chambersburg, Pennsylvania previously pleaded guilty to all sex trafficking and drug trafficking offenses in the superseding indictment.  On March 12, 2018, Chief Judge Conner sentenced Albert Martinez to 180 months’ imprisonment followed by 10 years of supervised release.  Brandon Hill, age 30, of Harrisburg, Pennsylvania received a sentence of 37 months’ imprisonment after pleading guilty to the drug trafficking offense. 

A jury in Harrisburg, Pennsylvania convicted Anthony “Tony” D’Ambrosio, age 36, of Chambersburg, Pennsylvania, and Armando Delgado, age 22, of Chambersburg, Pennsylvania, of various sex trafficking and drug trafficking offenses on December 18, 2017.  A sentencing date has not yet been set for these defendants, but they have been detained since the jury returned guilty verdicts.

This case was investigated by the Federal Bureau of Investigation.  Assistant United States Attorney Meredith A. Taylor is prosecuting the case.

If the case involves the sexual exploitation of children, include this:  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 today that Laverne Schaeffer, age 46, of Schuylkill Haven, Pennsylvania, pleaded guilty on October 30, 2018 before U.S. District Court Judge Robert D. Mariani to conspiracy to distribute more than 50 grams of methamphetamine.

According to United States Attorney David J. Freed, Schaeffer admitted to conspiring with her husband, Ernest Schaeffer and others to distribute methamphetamine to customers in the Schuylkill County area. Schaeffer committed the offense between July 2016 and May 24, 2017, in Schuylkill County and elsewhere.

Schaeffer was indicted by a grand jury along with three other persons in August 2017. Schaeffer’s husband Ernest previously pleaded guilty and is awaiting sentencing.

As part of a plea agreement, Schaeffer agreed to forfeit dozens of acres of real estate in Schuylkill County—property that Schaeffer and her husband used to store and distribute methamphetamine.

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

The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police from Schuylkill County. Assistant U.S. Attorney Francis P. Sempa 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. Attorney General Jeff Sessions 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.

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 40 years in prison, a term of supervised release following imprisonment, and a fine. The charge also carries a mandatory minimum penalty of five years’ 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.

# # #

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Roberto Torner, age 45, Liza Robles, age 34, both of Freeland, Pennsylvania, and David Alzugaray-Lugones, age 49, of Weatherly, Pennsylvania, were convicted on October 31, 2018, of heroin trafficking, firearms, and stolen military C-4 explosives offenses.  The 12-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. Torner was convicted of one count each of conspiring to distribute heroin, distributing heroin, conspiring to be a felon in possession of firearms and ammunition, being a felon in possession of firearms and ammunition, possessing stolen explosives, and being a felon in possession of explosives.

Robles was convicted of one count each of conspiring to distribute heroin, distributing heroin, conspiring to have a felon possess firearms and ammunition, and one count of providing firearms and ammunition to a felon. Alzugaray-Lugones was convicted of one count of conspiring to distribute heroin, and one count of distributing heroin.

The evidence presented at trial showed that in June 2015, Torner, Robles, and Alzugaray-Lugones worked together to sell approximately five grams of heroin (which is approximately  200 individual doses of heroin) to a confidential informant.  The United States also presented evidence that over the course of nearly a decade, Robles purchased numerous handguns, assault rifles, a shotgun, a rifle, and ammunition that she made available to her fiancé, Torner, who was prohibited from possessing firearms and ammunition as a three-time convicted felon.

After the defendants were charged in an initial indictment for the heroin trafficking and firearms offenses, Torner was released on pretrial supervision.  The evidence at trial showed that while on pretrial supervision, he planted a brick of stolen U.S. military C-4 plastic explosives on one of his rental properties, last inhabited by Alzugaray-Lugones.  Law enforcement officials recovered 1.5 lbs. of stolen C-4, which resulted in additional explosives charges being filed against Torner.

The United States forfeited approximately 1,500 rounds of ammunition, and several firearms seized during the investigation.  The firearms are:

• Magnum Research 1911U .45acp;
• Hi-Point JHP .45acp;
• Stag Arms STAG-15, .223 cal. (a semiautomatic firearm that is capable of accepting a large capacity magazine);
• Mossberg 500 12-gauge shotgun; and
• Norinco MAC90 (a semiautomatic firearm that is capable of accepting a large capacity magazine); and a
• Tikka T3, 30.06 rifle.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Weatherly Police Department, the Luzerne County Drug Task Force, the Pennsylvania State Police, and other federal, state, and local law enforcement agencies.  Assistant United States Attorneys Phillip Caraballo and Todd Hinkley 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. Attorney General Jeff Sessions 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 case also 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.

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 combined maximum penalty under federal law for Torner is up to life imprisonment, for Robles up to 20 years of imprisonment, and for Alzugaray up to 20 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 today that Daryl Johnson, age 33, formerly of Washington, D.C., was sentenced on October 30, 2018, by United States District Court Judge A. Richard Caputo to 13 months’ imprisonment and three years’ supervised release for assaulting a federal employee.

According to United States Attorney David J. Freed, Johnson, then serving a sentence for armed robbery, kicked a correctional officer in the face during an altercation at the United States Penitentiary at Canaan in September 2016.  The correctional officer suffered minor injuries.

The case was investigated by the Federal Bureau of Investigation and officers at USP Canaan.  Assistant U.S. Attorney Sean A. Camoni prosecuted the case.

 

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jay Eugene Reed, age 58, of Three Springs, Pennsylvania was sentenced on October 30, 2018, by United States District Court Judge Yvette Kane to 70 years’ imprisonment followed by a lifetime term of supervised release for exploitation of minors.   

According to United States Attorney David J. Freed, the Pennsylvania State Police initially charged Reed in July 2015 with rape and sexual assault charges relating to a number of minors.  During the investigation, the Pennsylvania State Police seized a cell phone, a computer, and other electronic devices belonging to Reed from his residence.  On February 2, 2017, Reed pleaded guilty to all counts of the September 2015 federal indictment and admitted to both producing and possessing images of child pornography that were found on several of the seized devices.  Reed also pleaded guilty to obstruction of justice for the letters he wrote to a minor victim and a family member asking that they not talk about what he had done.

Before the Court imposed the 70-year sentence, the defense offered testimony from defense expert Dr. Joseph Silverman, a psychiatrist. Dr. Silverman opined dementia, sleep apnea or brain dysfunction may have caused Reed to rape and molest the four minor victims when they were between the ages of 9 and 13, photograph their naked genitals approximately 200 times, collect 300 pornographic images of prepubescent children from the internet and then write letters trying to convince the witnesses not to talk about what he did. Judge Kane rejected the defense’s request to impose only the mandatory minimum of 15 years, describing Dr. Silverman’s testimony as “fanciful” and “not based in science.”

Reed also pleaded guilty to three counts of rape in the Court of Common Pleas of Huntingdon County on May 4, 2018.  A sentencing date has not yet been scheduled.   

This case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police and the Huntingdon County District Attorney’s Office.  Assistant United States Attorney Meredith A. Taylor 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."

 

# # #

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 6, 2018, general election.  AUSA 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 abuses 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 act promptly and aggressively 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 on 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 abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Freed stated that AUSA/DEO 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’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to voting.section@usdoj.gov or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.

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 immediately to my Office, the FBI, or the Civil Rights Division.”

 

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tommy Lee Phillips, age 30, of Harrisburg, Pennsylvania, pled guilty on October 29, 2018, before Chief U.S. Magistrate Judge Martin C. Carlson for being a felon in possession of a stolen handgun.

According to United States Attorney David J. Freed, on October 10, 2017, Harrisburg Police responded to a call of a man with a gun at a Harrisburg bar. When officers responded, they observed Phillips on the street near the bar. After running from police, officers arrested Phillips and found near where he was arrested a stolen .380 caliber handgun.  Phillips was previously convicted in federal court for robbery, therefore he was prohibited by law from possessing a firearm.

No sentencing date has been scheduled as of yet.

The case was investigated by the Federal Bureau of Investigation and the Harrisburg Police Department.  Assistant U.S. Attorney Michael Consiglio 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. Attorney General Jeff Sessions 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.

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 these offenses 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.

 

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jason Ehrhart, age 48, of Thompsontown, Pennsylvania, and Jason’s former wife, Laurie Ehrhart, age 48, of Newport, Pennsylvania, were charged with defrauding a disabled Veteran, the Veteran’s Administration, and the Social Security Administration out of $316,360.

According to United States Attorney David J. Freed, Jason Ehrhart is charged by way of a criminal information with one count of health care fraud. Jason’s former wife, Laurie Ehrhart, is charged in an indictment with one count of health care fraud and one count of conspiracy to commit health care fraud.

According to the charges, a veteran who was a former resident of Perry County, Pennsylvania, was diagnosed with multiple sclerosis while serving in the U.S. Army in 1985.   The veteran later began receiving disability benefits from the Department of Veterans Affairs (VA) and the Social Security Administration (SSA) and was eventually hospitalized on a permanent basis at the VA hospital in Lebanon, Pennsylvania, on November 8, 2004. 

On August 8, 2006, the veteran was deemed by the VA to be incompetent to handle his own financial affairs.  As a result, on October 2, 2006, Jason Ehrhart successfully applied to serve as the veteran’s VA Fiduciary and Legal Custodian.  Under the terms of a Fiduciary Agreement, Jason Ehrhart agreed to use all of the veteran’s VA disability benefits exclusively for the veteran’s benefit. The agreement warned him that the funds were not for his personal use. The Fiduciary Agreement also required Jason Ehrhart to submit an annual accounting to the VA with respect to the amount of money spent on the veteran’s behalf.

The charges allege, however, that between October 2006 and August 2016, Jason Ehrhart and Laurie Ehrhart, who was then Jason’s wife, misspent $316,360 of the veteran’s VA and Social Security disability benefits on themselves.

While Jason Ehrhart served as the veteran’s VA Fiduciary and Legal Custodian, all of the veteran’s VA benefits, plus most of his Social Security disability checks, were deposited into a checking account Jason opened as a legal custodian account in the veteran’s name.  Altogether, $476,260 in federal benefits ($422,828 in VA disability, $48,187 in Social Security disability, and $5,244 in VA clothing allowance) were deposited into the account between January 2009 and August 2016.

The charging documents alleged that, at least $316,360 of the $476,260 was misappropriated by Jason and Laurie Ehrhart and converted to their own use.  Checks totaling $218,832 ($96,202 payable to Jason Ehrhart and $122,630 payable to Laurie Ehrhart), some of which exceeded $5,000, $6,000 and $7,000, were drawn against the account.  Of the $218,832, $157,742 was allegedly deposited into Jason and Laurie Ehrhart’s joint checking account at the Juniata Valley Bank (JVB) and at least $23,496 was converted to cash.  Thereafter, it is alleged that the funds in the joint JVB account were employed by Jason and Laurie Ehrhart to pay personal expenses. 

The charging documents further allege that another $7,174 in checks were made payable to Jason and Laurie Ehrhart’s two minor children.  Jason Ehrhart allegedly instructed the children to take the checks to the bank, cash them, and surrender the cash to him.

Another $19,890 in checks were allegedly made payable to another couple who were Jason and Laurie Ehrhart’s best friends. According to the charges, Jason Ehrhart regularly treated the couple and their children to dinners out and at least two, all-expense paid vacations to Disney World in Florida, purchased two automobiles for the family, and paid for the wife’s dental work.

To conceal his embezzlements, it is alleged that Jason Ehrhart submitted eight false annual accountings to the VA in which he falsely claimed he spent $402,408 on the veteran’s behalf between October 2006 and October 2015.  According to the charges, the itemized expenditures in the accountings were grossly inflated. For example, Jason Ehrhart claimed he paid the mortgage on the veteran’s residence ($1,631 per month) plus the veteran’s share of the mortgage on his mother’s residence ($881) after she died in May 2011.  However, the lenders against both properties obtained judgments and they were eventually foreclosed and sold.

According to the charges, Jason Ehrhart also falsely claimed in the annual accountings that he spent thousands on miscellaneous expenditures for the veteran, including storage unit rentals, vehicle maintenance bills, state and local taxes, life and auto insurance, and credit card bills.  However, in 2016 the veteran’s specially equipped wheelchair van, for which Jason Ehrhart claimed he spent approximately $32,395 for vehicle maintenance, was found broken down and abandoned along a Perry County roadside.

The veteran died at the Lebanon VA Hospital on July 30, 2018. 

Laurie Ehrhart was arraigned on the charges before U.S. Magistrate Judge Susan E. Schwab this afternoon and released on her own recognizance. No date has yet been set for Jason Ehrhart’s initial appearance on the charges.

The Department of Veteran Affairs, the Office of Inspector General, the Pennsylvania State Police, and the Social Security Administration’s Office of Inspector General investigated the case.  Assistant United States Attorney Kim Douglas Daniel 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.

The maximum penalty under federal law for this offense 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.

# # #

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jose David Santiago-Curet, age 22, of York, Pennsylvania, was indicted by a federal grand jury on drug trafficking and firearm offenses.

According to U.S. Attorney David J. Freed, the indictment alleges that Santiago-Curet  possessed with the intent to distribute cocaine base, possessed a firearm in furtherance of drug trafficking, and possessed a firearm (9mm Ruger) as a previously convicted felon on June 30, 2018, in York County.

The matter was investigated by the York City Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  Assistant U.S. Attorney Scott R. Ford 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. Attorney General Jeff Sessions 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.

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

 

# # #

HARRISBURG –The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lucas Obi, age 53, of Toronto, Canada, a former Western Union and MoneyGram agent, was sentenced to 12 years’ imprisonment on October 23, 2018, by United States District Court Judge Yvette Kane for defrauding thousands of victims out of approximately $4.4 million via international mass marketing, consumer fraud schemes.

According to United States Attorney David J. Freed, Lucas Obi, A/K/A “Suleman Ajukwusualim, was the owner/operator of a Western Union and a MoneyGram agency, both of which were known as Canada Cash Express, Inc., and located at the same Toronto address. Obi conspired with others between 1999 and 2010 to commit the wire fraud offense and was the leader of a group of fraud complicit MoneyGram and Western Union agents in the greater Toronto area. Obi was the group’s mentor and leader who taught others how to engage in mass marketing fraud and complicit money transfer agent activity.  Obi trained the agents on how to process fraud induced money transfers and allowed them to keep a cut, 5% to 10%, for their role in the schemes.  Obi also recruited persons to act as money transfer outlet owners on his behalf, gathered fraudulently induced money transfer checks from other fraud complicit agents, and deposited the checks with fictitious name endorsements into his bank accounts.  Obi then distributed the fraud proceeds, less his cut, to numerous greater Toronto area fraudsters and money launderers.

The known total dollar loss associated with all fraud reported money transfers paid out at Canada Cash Express and Obi’s other fraud complicit check-pooling agents is $4,482,927.  Pursuant to a deferred prosecution agreement with MoneyGram, a $100 million victim restitution fund was established for victims of Obi’s fraud.  A $586 million restitution fund is also being established for victims who sent their money via Western Union pursuant to the filed, January 19, 2017, Western Union deferred prosecution agreement with the U.S. Attorney’s Office for the Middle District of Pennsylvania and the U.S. Justice Department.

Judge Kane ordered Obi to pay $2,393,906.34 in restitution to 2,641 Western Union and MoneyGram victims.  The restitution was reduced from the total loss amount of $4,482,927 due to monies that were previously paid out by MoneyGram.

The case was investigated by the Harrisburg Office of the U.S. Postal Inspection Service, the Federal Trade Commission, the Toronto Police Service, the Royal Canadian Mounted Police, the Ontario Provincial Police, the Canadian Anti-Fraud Centre, the Canada Competition Bureau, and the Ministry of Government Services.  The Justice Department's Office of International Affairs provided assistance with the extradition of the defendant.  Assistant United States Attorney Kim Douglas Daniel prosecuted the case.

           

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WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Hakim Handy, age 35, of Williamsport, Pennsylvania, was sentenced on October 16, 2018, by U.S. District Court Judge Matthew W. Brann to 25 years’ imprisonment and eight years’ of supervised release for his role in conspiring to distribute heroin and crack cocaine.

According to United States Attorney David J. Freed, Handy conspired to distribute more than 28 grams of crack cocaine and 4.2 grams of heroin (approximately 168 individual doses of heroin) between December 2014 and January 2015, in Lycoming County.  Handy was designated a career offender due to three prior felony convictions for drug offenses.

The case was investigated by the Williamsport Police Department, Lycoming County District Attorney’s Office, the Lycoming County Narcotics Enforcement Unit, and the Federal Bureau of Investigation Safe Streets Task Force. Assistant United States Attorney Alisan V. Martin 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. Attorney General Jeff Sessions 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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SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Michael Portanova, age 27, of West Hazleton, pleaded guilty on October 17, 2018, to receiving child pornography before Senior U.S. District Court Judge James M. Munley.

According to United States Attorney David J. Freed, Portanova admitted that he used his cell phone to receive images and videos of child pornography using a file-sharing network on the internet. Portanova committed the offense between August 2017 and October 30, 2017, in Luzerne County.

Portanova also admitted that he committed the offense after having been convicted of dissemination and possession of child pornography in Luzerne County in 2014.

Judge Munley ordered a presentence investigation to be completed, and scheduled sentencing for January 17, 2019.

Portanova was indicted by a federal grand jury in January 2018, as a result of an investigation conducted by Homeland Security Investigations and the Luzerne County District Attorney’s Office. Assistant United States Attorney Francis P. Sempa 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."

The maximum penalty under federal law for these offenses is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of 15 years’ 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.

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WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jason Webb, age 45, of Williamsport, Pennsylvania, was indicted on October 16, 2018, by a federal grand jury for conspiracy to distribute marijuana and possession with intent to distribute marijuana.

According to United States Attorney David J. Freed, Webb conspired with others to distribute marijuana from December 2017 to October 5, 2018, in Lycoming County.  

The case was investigated by the Williamsport Bureau of Police, Pennsylvania State Police and the Federal Bureau of Investigation.  Assistant United States Attorney Alisan V. Martin 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 penalty under federal law for the offenses is a maximum sentence of up to 30 years in prison and a $2,000,000 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 Peter Mastin, age 26, an inmate at the Federal Correctional Institute at Schuylkill, Pennsylvania, was indicted by a federal grand jury for possession of a weapon.

According to United States Attorney David J. Freed, the indictment alleges that on June 24, 2018, Mastin possessed a seven-inch metal weapon sharpened to a point, commonly known as a “shank.”

The case was investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigations (FBI).  Assistant U.S. Attorney Jenny P. Roberts 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.

The maximum penalty under federal law for this offense 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 today that Jason Keiser, age 27, of Lehighton, Pennsylvania, was sentenced on October 9, 2018, to 270 months’ imprisonment and 20 years’ supervised release by United States District Court Judge Malachy E. Mannion for sexual exploitation of children. Judge Mannion also ordered that Keiser be required to comply with the Sexual Offender and Registration Notification Act (SORNA), a national system for the registration of sex offenders.

According to United States Attorney David J. Freed, in May 2017, Keiser produced videos and visual depictions of minors under the age of 12 engaged in sexually explicit conduct. 

The charges stemmed from a federal law enforcement investigation, in which investigators executed search warrants that resulted in the discovery of a very large collection of child pornography on Keiser’s electronic devices, including child pornography images and videos created by Keiser.  Keiser also shared child pornography with others via social media applications.

Keiser was indicted by a federal grand jury on August 22, 2017, after an investigation conducted by United States Homeland Security Investigations – Philadelphia Division.  Assistant United States Attorney Michelle Olshefski 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 Anton Woodson, age 34, of East Stroudsburg, was sentenced yesterday by Senior U.S. District Court Judge James M. Munley to serve 63 months in prison for his role in a Monroe County-based heroin and cocaine trafficking conspiracy.

According to United States Attorney David J. Freed, Woodson previously pleaded guilty to conspiracy to distribute more than 100 grams of heroin and cocaine during 2014. Woodson admitted to being responsible for distributing between 100 grams and 400 grams of heroin, which translates to between approximately 4000 and 16,000 retail bags of heroin.

Woodson was one of seven people charged by a federal grand jury in a superseding indictment in March 2015. The others charged—Eddie Pace, Shawnette Isaac, Daryl Trent, Myron Owens, William Young, and Catherine Abbey—all have entered guilty pleas in the case. Trent was sentenced to 90 months’ imprisonment on drug and gun charges, and Isaac was sentenced to 30 months’ imprisonment for her role in the drug conspiracy. The other defendants, including Pace who was the leader of the drug ring, are awaiting sentencing.

Judge Munley also ordered that Woodson serve four years on supervised release following his prison sentence.

The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police from Monroe County. Assistant U.S. Attorney Francis P. Sempa prosecuted 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.  Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.   In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

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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A Harrisburg, Pennsylvania man pleaded guilty yesterday in federal court to one count of conspiring to defraud the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environmental and Natural Resources Division, EPA Criminal Investigation Division Director Jessica Taylor, and U.S. Attorney David J. Freed for the Middle District of Pennsylvania.

According to documents and information provided to the court, David Tielle served as Director Business Development at Keystone Biofuels Inc. (Keystone), located in Shiremanstown, Pennsylvania, and later in Camp Hill, Pennsylvania. Keystone purported to be a producer and seller of biodiesel, a type of renewable fuel. Between 2009 and 2012, Tielle participated in a conspiracy to fraudulently claim tax refunds based on the Biodiesel Mixture Tax Credit – a federal excise tax credit for persons or businesses who mix biodiesel with petroleum and use or sell the mixture as a fuel.

“Fraud committed against the United States Government, making all of us victims, is always disappointing,” said U.S. Attorney David J. Freed.  “It is particularly so when the fraud is connected to a program with the laudable aim of encouraging renewable fuel production.  The defendant in this case nefariously turned a program meant to benefit our community into a scheme to enrich himself and his partners, at our expense.  I commend the tireless work of all of our partners in this case, especially the investigators with IRS-Criminal Investigation and the Environmental Protection Agency Criminal Investigation.”

“A strong enforcement program is essential to maintaining the integrity of the renewable fuel program,” said EPA Special Agent in Charge Jennifer Lynn.  “Yesterday's guilty plea should send a clear message that EPA and our law enforcement partners are committed to vigorously pursuing these criminal cases.”

As part of the conspiracy, Tielle caused inflated fuel amounts to be reported to the IRS in order to fraudulently claim tax refunds on fuel Keystone was not producing. To account for the inflated fuel amounts, Tielle created false books and records and engaged in a series of sham financial transactions intended to mirror the false books and records. Tielle also caused Keystone to fraudulently claim tax refunds on fuel that did not meet the quality standards needed to qualify for the Biodiesel Mixture Tax Credit and on fuel Keystone had not mixed with petroleum. The total loss resulting from Tielle’s conduct is approximately $4,149,983.41.

Tielle faces a statutory maximum sentence of five years in prison, as well as a period of supervised release, restitution, and monetary penalties.

The case was investigated by IRS-Criminal Investigation and the EPA Criminal Investigation Division.  The prosecution is being handled by Assistant U.S. Attorney Geoffrey MacArthur, Special Assistant U.S. Attorney David Lastra, Trial Attorneys Mark Kotila and Kimberly Ang of the Justice Department’s Tax Division and Senior Litigation Counsel Howard P. Stewart of the Justice Department’s Environmental and Natural Resources Division.

HARRISBURG - A Harrisburg, Pennsylvania man pleaded guilty in federal court to one count of conspiring to defraud the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environmental and Natural Resources Division, EPA Criminal Investigation Division Director Jessica Taylor, and U.S. Attorney David J. Freed for the Middle District of Pennsylvania.

According to documents and information provided to the court, David Tielle served as Director Business Development at Keystone Biofuels Inc. (Keystone), located in Shiremanstown, Pennsylvania, and later in Camp Hill, Pennsylvania. Keystone purported to be a producer and seller of biodiesel, a type of renewable fuel. Between 2009 and 2012, Tielle participated in a conspiracy to fraudulently claim tax refunds based on the Biodiesel Mixture Tax Credit – a federal excise tax credit for persons or businesses who mix biodiesel with petroleum and use or sell the mixture as a fuel.

“Fraud committed against the United States Government, making all of us victims, is always disappointing,” said U.S. Attorney David J. Freed.  “It is particularly so when the fraud is connected to a program with the laudable aim of encouraging renewable fuel production.  The defendant in this case nefariously turned a program meant to benefit our community into a scheme to enrich himself and his partners, at our expense.  I commend the tireless work of all of our partners in this case, especially the investigators with IRS-Criminal Investigation and the Environmental Protection Agency Criminal Investigation.”

“A strong enforcement program is essential to maintaining the integrity of the renewable fuel program,” said EPA Special Agent in Charge Jennifer Lynn.  “Today’s guilty plea should send a clear message that EPA and our law enforcement partners are committed to vigorously pursuing these criminal cases.”

As part of the conspiracy, Tielle caused inflated fuel amounts to be reported to the IRS in order to fraudulently claim tax refunds on fuel Keystone was not producing. To account for the inflated fuel amounts, Tielle created false books and records and engaged in a series of sham financial transactions intended to mirror the false books and records. Tielle also caused Keystone to fraudulently claim tax refunds on fuel that did not meet the quality standards needed to qualify for the Biodiesel Mixture Tax Credit and on fuel Keystone had not mixed with petroleum. The total loss resulting from Tielle’s conduct is approximately $4,149,983.41.

Tielle faces a statutory maximum sentence of five years in prison, as well as a period of supervised release, restitution, and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman, Acting Assistant Attorney General Wood, and U.S. Attorney Freed thanked agents of IRS-Criminal Investigation and the Environmental Protection Agency Criminal Investigation Division, who conducted the investigation, and Assistant U.S. Attorney Geoffrey MacArthur, Special Assistant U.S. Attorney David Lastra, Trial Attorneys Mark Kotila and Kimberly Ang of the Justice Department’s Tax Division and Senior Litigation Counsel Howard P. Stewart of the Justice Department’s Environmental and Natural Resources Division, who prosecuted the case.

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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Millan-Miranda, age 31, of Lebanon, Pennsylvania, was sentenced yesterday to 151 months’ imprisonment and five years’ supervised release by United States District Court Judge John E. Jones, III for various drug trafficking offenses.

According to United States Attorney David J. Freed, Millan-Miranda was convicted on April 11, 2017, along with codefendants Julio Aviles, Sr. age 49, of Lebanon, Pennsylvania, and Israel Nazario, age 62, of Philadelphia, Pennsylvania, all members of a Lebanon County Drug Trafficking Organization, of conspiracy to distribute and possess with intent to distribute one kilogram and more of heroin.  The parties stipulated that Millan-Miranda was responsible for at least three but less than 10 kilograms of heroin (which is equivalent to approximately 120,000 to 400,000 individual doses of heroin).  Millan-Miranda was also convicted of possession with the intent to distribute heroin and the distribution of heroin.  The six-day trial was held in federal court in Harrisburg before United States District Judge John E. Jones, III. 

The two-year investigation by the Drug Enforcement Administration and the Lebanon County Drug Task Force culminated with the execution of search warrants at 513 Arnold Street and 443 North 6th Street, in Lebanon, Pennsylvania, on May 14, 2015.  During the search at 513 Arnold Street, law enforcement agents discovered a “heroin mill” where kilogram amounts of heroin were being processed on a weekly basis.  The evidence at trial revealed that Julio Aviles, Sr., a previously convicted drug dealer, owned and operated the heroin mill and employed a network of sellers, packagers, brokers and testers to conduct this illegal enterprise.  Packagers were paid approximately $500 a week like factory workers to process and package the heroin for later distribution.  The testers operated as quality assurance inspectors to ensure the heroin was of sufficient quality.  At the time of the searches, law enforcement agents found over 400 grams of heroin, over 85 grams of cocaine powder, and over 71 grams of crack cocaine.  A kilogram of heroin, which weighs approximately 2.2 pounds is equivalent to approximately 40,000 to 50,000 individual doses of heroin, any one of which can be fatal depending on its purity and the nature of its other ingredients.  In this case the evidence established that the drug trafficking organization was mixing the heroin with Fentanyl, morphine, oxycodone and Lidocaine.  Law enforcement agents estimated that this drug operation was distributing heroin, crack cocaine, and cocaine for a two-year period and during the last few months was distributing kilogram quantities of heroin, crack cocaine and cocaine powder.  The value of the drugs distributed has a conservative street value of between $3 million and $5 million. 

Located in the processing room were over 52,000 small Ziploc style bags, 37,000 small glassine bags and over 28,000 rubber bands that are used to package controlled substances.  Each rubber band was used to package ten individual bags of heroin, called a bundle.      

Law enforcement also located three handguns, ten rifles, six shotguns and paraphernalia consistent with a large-scale drug trafficking operation.  During the search at 443 North 6th Street, law enforcement officers located additional quantities of heroin, cocaine powder, and crack cocaine along with drug packaging materials.

Thirteen individuals, all together were charged as part of this operation:

• Julio Aviles, Sr., age 49, sentenced to life imprisonment;
• Isrrael Nazario, age 62, sentenced to 180 months’ imprisonment;
• Julio Aviles, Jr., age 24, sentenced to 28 months’ imprisonment;

• Leandro Nazario, age 30, sentenced to 240 months’ imprisonment;
• Suheidy Soto-Concepcion, age 35, sentenced to 120 months’ imprisonment;
• Eliezer Soto-Concepcion, age 36, sentenced to 144 months’ imprisonment;
• Brenda Soto, age 35, sentenced to 12 months and one day in prison;
• Geidy Arroyo, age 37, time served;
• Brittany Rivera, age 24, sentenced to one year and one day in prison;
• Brent Moyer, age 22, sentenced to 18 months’ imprisonment;
• Carlos Nazario, age 72; pending sentencing; and
• Kengie Millan-Miranda, age 27, remains a fugitive. If you have any information on the whereabouts of Kengie Millan-Miranda, please contact Crime Stoppers at 717-270-9800.

 

Julio Aviles, Jr., Brittany Rivera, Brent Moyer, Carlos Nazario, Brenda Soto and Geidy Arroyo all pled guilty to conspiracy to distribute and possess with intent to distribute 1,000 grams and more of heroin.  On the day of trial, Leandro Nazario, Eliezer Soto-Concepcion and Suheidy Soto-Concepcion all pled guilty to conspiracy to distribute and possess with intent to distribute 1,000 grams and more of heroin, 280 grams and more of cocaine base, or crack cocaine and an unspecified quantity of cocaine hydrochloride or powder cocaine. 

            The investigation was conducted by the Drug Enforcement Administration, Lebanon County Drug Task Force, Lebanon County Detective Bureau, Lebanon City Police Department, Cornwall Borough Police Department, and assisted by the Lebanon County Probation Department. Assistant United States Attorney Daryl F. Bloom, Chief of the Organized Crime and Drug Enforcement Task Force and Special Assistant United States Attorney Nichole Eisenhart who also serves as the First Assistant District Attorney in Lebanon County, Pennsylvania prosecuted the case.   

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury returned a superseding indictment on October 2, 2018, charging Phillip Finn, Jr, age 48, of Plains Township, Pennsylvania, with interstate communications and using fire to commit a felony. 

According to United States Attorney David J. Freed, the superseding indictment charges Finn with using his email account to send a Luzerne County caseworker threatening emails between March 4, 2017 and March 5, 2017.  It also alleges that on March 6, 2017, Finn used three Molotov cocktails to firebomb the Luzerne County Children and Youth Services building in Wilkes-Barre, Pennsylvania, to commit the felony of stalking.    

On July 11, 2017, Finn was indicted on charges of stalking, interstate communications and malicious damage to federal property by fire.  The indictment alleged that between March 3, 2017 and March 6, 2017, Finn used Facebook, Google and his cell phone to engage in a course of conduct, to harass and intimidate two Luzerne County Children and Youth Services employees.  The superseding indictment added the charge of use of fire to commit a felony and an additional count of interstate communication.

The case was investigated by the U.S. Federal Bureau of Investigation (FBI), the Wilkes-Barre City Police Department and the Luzerne County District Attorney’s Office.  Assistant U.S. Attorney Jenny P. Roberts 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.

The combined maximum penalty under federal law for these offenses 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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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Lamarr Adams, age 31, of Scranton, Pennsylvania, was indicted on October 2, 2018, by a federal grand jury on drug trafficking and ammunition charges.

According to United States Attorney David J. Freed, the indictment alleges that Adams conspired to distribute and possess with intent to distribute over 500 grams of cocaine between February 1, 2018 and September 25, 2018, in Scranton, Pennsylvania.  The indictment also alleges that Adams possessed ammunition when he is prohibited because of a prior felony conviction.

The case was investigated by the U.S. Drug Enforcement Administration (DEA) and the Scranton Police Department.  Assistant U.S. Attorney Jenny P. Roberts 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.

The maximum penalty under federal law for this offense is 40 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 – U.S. Attorney David J. Freed joined the Department of Justice today in announcing more than $70 million in grant funding to bolster school security, educate and train students and faculty, and support law enforcement officers and first responders who arrive on the scene of a school violence incident, including $37,550 for the County of York to fund STOP School Violence Threat Assessment and Technology Reporting Program and $1 million to the Pennsylvania Department of Education in the Middle District of Pennsylvania to fund STOP School Violence Prevention and Mental Health Training Program.

These grants are in addition to the funding to the National Association of School Resource Officers (NASRO), announced by Attorney General Sessions last week, to expand and update their curriculum to better support training programs. These grants combined will better protect students, teachers, faculty, and first responders across the United States. Additionally, the Department is awarding more than $64 million to state agencies to improve the completeness, quality, and accessibility of the nation’s criminal record systems, which will help law enforcement and increase the effectiveness of background checks.

“President Trump and his administration will ensure the safety of every American school," Attorney General Jeff Sessions said. "Earlier this year he signed into law the STOP School Violence Act, which provides grant funding to develop anonymous school threat reporting systems, to implement school building security measures, and to train students, school personnel, and law enforcement on how to prevent school violence. Today I am announcing $70 million in these grants to hundreds of cities and states across America. These grants will go a long way toward giving young people and their families both safety and peace of mind.”

“With today’s awards, the United States Department of Justice continues to dedicate substantial resources to areas of critical need,” said U.S. Attorney Freed.  “These funds will improve assessment and reporting capabilities in York County, and support prevention and mental health training efforts throughout the District.  Too many times, incidents of school violence are the end result of inadequate or ineffective mental health intervention and treatment.  While we at the United States Attorney’s office will always remain focused on our mission of law enforcement and public protection, we know well that prevention and treatment can stop incidents before they start.”

The Office of Justice Program’s (OJP) Bureau of Justice Assistance (BJA) and the Office of Community Oriented Policing Services (COPS Office) together are making more than 220 awards to jurisdictions across the country to help make schools more secure. The awards, granted through three funding streams, will provide new technology for reporting systems and other threat deterrent measures and create school safety training and education programs for school administrators, staff, students, and first responders. This includes the support for existing crisis intervention teams and the creation of new ones.

• BJA’s STOP School Violence Threat Assessment and Technology Reporting Program will provide 68 awards valued at more than $19 million. This funding supports training to create and operate threat assessment and crisis intervention teams and to develop technology for local or regional anonymous reporting systems. This technology may be in the form of a mobile phone application, hotline, or website.

• The STOP School Violence Prevention and Mental Health Training Program, also managed by BJA, will provide training and education on preventing violence and effectively responding to related mental health crises. This program will fund 85 awards at nearly $28 million.

• The COPS Office School Violence Prevention Program (SVPP) will provide nearly $25 million to 91 jurisdictions for school safety measures including coordination with law enforcement, training for law enforcement to prevent student violence against others and self, target hardening measures, and technology for expedited notification of law enforcement during an emergency.

The grants are authorized by the STOP School Violence Act, which are intended to improve school security by helping students and teachers reduce exposure to risks, prevent acts of violence, and quickly recognize and respond to violent attacks.

The Department also announced that it has awarded more than $64 million to state agencies to improve the completeness, quality, and accessibility of the nation’s criminal record systems. These grants are administered by the Bureau of Justice Statistics, part of OJP. Approximately $43 million in funding will be administered through the National Criminal History Improvement Program (NCHIP), and nearly $21 million will be awarded under the National Instant Criminal Background Check System (NICS) Act Record Improvement Program.  These grant programs help states automate and upgrade records accessed by the firearms background check system.  This year, at the direction of the Attorney General, the Department prioritized funding for projects that improve accessibility of criminal history records, domestic violence convictions, and information on persons who are prohibited from possessing firearms for mental-health related reasons.

The Department is also investing over $1 million in research to better understand the factors behind mass shooting incidents. The grant awards, made by the Department’s National Institute of Justice (NIJ), part of OJP, support scientific investigations that will examine factors that contribute to mass violence, identify any patterns in mass shootings, analyze psychological and social life histories of mass shooters and community-level predictors of mass violence, and will examine firearm purchasing patterns of known mass shooters in order to create a risk prediction tool.  

For additional information on today’s grant announcements, visit www.bja.gov or www.cops.usdoj.gov. 

NOTE: The breakdown of the STOP School Violence Grants can be found here: STOP School Violence Threat Assessment and Technology Reporting Program, STOP School Violence Prevention and Mental Health Training Program, and COPS Office School Violence Prevention Program

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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Matthew Dows, age 39, and Robert Garofalo, age 31, both of Mechanicsburg, Pennsylvania, pleaded guilty on October 1, 2018, before Chief United States Magistrate Judge Susan E. Schwab to one count of conspiracy to commit health care fraud and one count of obtaining controlled substances by deception.

According to David J. Freed, Dows, a Physician’s Assistant, and Garofalo, a Registered Nurse, conspired between February 2017 and March 2018 to obtain more than 7,470 medically unnecessary oxycodone pills and 1,620 medically unnecessary morphine pills.

A total of 67 prescriptions were issued by Dows for Garofalo and two other unidentified individuals without the other individuals’ knowledge or consent. Dows and Garafalo then filled all of the prescriptions at local pharmacies and converted the controlled substances to their own use. 

Dows was terminated from his employment as a Physician Assistant at Pinnacle’s Health’s Fisher Road Office in Mechanicsburg on January 5, 2018.  After Dows’ termination, he wrote 11 more prescriptions for oxycodone and morphine on counterfeit Pinnacle prescription forms. Under Pennsylvania law, a Physician Assistant may not legally write a prescription if he is not under the supervision of a physician.

The matter was investigated by the Harrisburg Office of the Drug Enforcement Administration. Assistant U.S. Attorney Kim Douglas Daniel is prosecuting 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.

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 twenty previously deported aliens were indicted separately on September 26, 2018, by a federal grand jury for illegal re-entry into the United States. These matters arose in counties throughout the District including Cumberland, Dauphin, Franklin, Lackawanna, Lebanon, Luzerne, Monroe and York.

According to United States Attorney David J. Freed, Rogaciano Hernandez-Sanchez, age 56, of Mexico, was previously deported from the United States to Mexico in March 2001, October 2009, and May 2012.  He is alleged to have illegally re-entered the United States sometime after May 2012, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.

Jose Perez-Amaro, age 23, of Mexico, was previously deported from the United States to Mexico in March and April 2016.  He is alleged to have illegally re-entered the United States sometime after April 2016, and was found in the United States in Lackawanna County, Pennsylvania after eluding examination or inspection by immigration officers.

Hernandez-Sanchez and Perez-Amaro face a maximum penalty of ten years of imprisonment, a term of supervised release following imprisonment, and a fine. 

Wilder Orodonez-Calderas, age 26, of Guatemala, was previously deported from the United States to Guatemala in March 2018.  He is alleged to have illegally re-entered the United States sometime after March 2018, and was found in the United States in Monroe County, Pennsylvania after eluding examination or inspection by immigration officers.

Francisco Sacaria, age 38, of Honduras, was previously deported from the United States to Honduras in July 2014.  He is alleged to have illegally re-entered the United States sometime after July 2014, and was found in the United States in Luzerne County, Pennsylvania after eluding examination or inspection by immigration officers.

Abel Perez-Perez, age 25, of Mexico, was previously deported from the United States to Mexico in November 2013.  He is alleged to have illegally re-entered the United States sometime after November 2013, and was found in the United States in Lebanon County, Pennsylvania after eluding examination or inspection by immigration officers.

Gustavo Vazquez-Ramirez, age 31, of Mexico, was previously deported from the United States to Mexico in May 2011.  He is alleged to have illegally re-entered the United States sometime after May 2011, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.

Juan Martinez-Vazquez, age 29, of Mexcio, was previously deported from the United States to Mexico in August and September 2012.  He is alleged to have illegally reentered the United States sometime after September 2012 and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.

Jairo Rodrigues-Murillo, age 39, Honduras, was previously deported from the United States to Honduras in June 2008 and March 2012.  He is alleged to have illegally re-entered the United States sometime after March 2012, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.

Irais Estrada-Martinez, age 32, of Mexico, was previously deported from the United States to Mexico in December 2015.  She is alleged to have illegally re-entered the United States sometime after December 2015, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.

Nicacio Lopez-Hernandez, age 37, of Mexico, was previously deported from the United States to Mexico in February 2014 and January 2015.  He is alleged to have illegally re-entered the United States sometime after January 2015, and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.

Pedro Santiz-Santiz, age 29, of Mexico, was previously deported from the United States to Mexico in October 2012.  He is alleged to have illegally re-entered the United States sometime after October 2012, and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.

Hipolito Morales-Cortez, age 51, of Mexico, was previously deported from the United States to Mexico in January 2007.  He is alleged to have illegally re-entered the United States sometime after January 2007, and was found in the United States in Lackawanna County, Pennsylvania after eluding examination or inspection by immigration officers.

Martin Romero-Mercado, age 47, of Mexico, was previously deported from the United States to Mexico in September and October 2017.  He is alleged to have illegally re-entered the United States sometime after October 2017, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.

Ernesto Guevara-Aldade, age 38, of Mexico, was previously deported from the United States to Mexico in September 2015.  He is alleged to have illegally re-entered the United States sometime after September 2015, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.

Jesus Carranza-Mondragon, age 29, of Mexico, was previously deported from the United States to Mexico in June 2014 and July 2014.  He is alleged to have illegally re-entered the United States sometime after July 2014, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.

Kevin Lopez-Calderon, age 30, of Guatemala, was previously deported from the United States to Guatemala in November 2006 and March 2013.  He is alleged to have illegally re-entered the United States sometime after March 2013, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.

Luis Avila-Munguia, age 29, Guatemala, was previously deported from the United States to Guatemala in September 2010 and August 2015.  He is alleged to have illegally reentered the United States sometime after August 2015 and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.

Estaban Santiago-Sanchez, age 38, of Mexico, was previously deported from the United States to Mexico in August 2016.  He is alleged to have illegally re-entered the United States sometime after August 2016, and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.

Ramiro Olivares-Velasquez, age 27, of Mexico, was previously deported from the United States to Mexico in June 2013 and July 2015.  He is alleged to have illegally re-entered the United States sometime after July 2015, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.

Rogaciano Hernandez-Sanchez, age 56, of Mexico, was previously deported from the United States to Mexico in March 2001, October 2009, and May 2012.  He is alleged to have illegally re-entered the United States sometime after May 2012, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.

Under federal law, Orodonez-Calderas, Sacaria, Perez-Perez, Vazquez-Ramirez, Martinez-Vazquez, Rodrigues-Murillo, Estrada-Martinez, Lopez-Hernandez, Santiz-Santiz, Morales-Cortez, Romero-Mercado, Guevara-Aldade, Carranza-Mondragon, Lopez-Calderon, Avial-Munguia, Santiago-Sanchez, Olivares-Velasquez and Hernandez-Sanchez face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.  

These cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO).  Special Assistant United States Attorney Brian G. McDonnell 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.

 

# # #

SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that Charles Davis, III, age 46, of Wilkes-Barre, Pennsylvania, was sentenced on September 28, 2018, to three years’ imprisonment and to serve four years on supervised release by Senior U.S. District Court Judge James M. Munley, for his role in a heroin trafficking conspiracy that operated in Luzerne County during February through November 2014.

According to United States Attorney David J. Freed, Davis previously admitted to transporting Desmond Mercer, the leader of the conspiracy, to numerous heroin transactions and to distributing heroin for Mercer to other customers in Luzerne County. Davis admitted to involvement in the distribution of between 100 and 400 grams of heroin, which is approximately equivalent to between 4,000 and 16,000 retail bags of heroin.

Davis is the last member of the drug ring to be sentenced to prison in the case. Desmond Mercer, the leader of the drug conspiracy, previously pleaded guilty and was sentenced to 14 years in prison. Shaliek Stroman and Shaquan Murphy, two key associates of Mercer, were each sentenced to more than 12 years in prison for their roles in the conspiracy. The remaining members of the conspiracy received the following prison sentences:

• Antuan Jamison—five years
• Omar Bell—52 months
• Megan Fox—30 months
• Brandy Malinosky—28 months
• Cleveland Linder, Jr—27 months
• Corey Wortham—18 months
• Brianna Rattigan—one year

Davis was indicted by a federal grand jury in February 2016, as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Luzerne County District Attorney’s Office, and the Kingston Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.

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

This case is 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. Attorney General Jeff Sessions 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 today that Lucas Hernandez-Torres, age 47, of Hazleton, Pennsylvania, was charged in a criminal information with defrauding the United States, and with the unlawful procurement of naturalization.  The charges were filed on February 1, 2017, but remained under seal until September 27, 2018.

According to United States Attorney David J. Freed, Hernandez-Torres admitted to 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 made false statements on a naturalization application.

Hernandez-Torres pleaded guilty to the charges on April 25, 2017, before United States District Court Judge Robert D. Mariani, and is awaiting sentencing.

The matter was investigated by Homeland Security Investigations and by the Internal Revenue Service, Criminal Investigation.  Assistant United States Attorney Phillip J. Caraballo is prosecuting 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 for the most serious charge is up to 10 years of 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.

# # #

HARRISBURG –The United States Attorney’s Office for the Middle District of Pennsylvania announced that James W. Pilsner, age 60, of Harrisburg, Pennsylvania, former Vice President of Rite Aid, pleaded guilty today before United States District Court Judge John E. Jones, III, to vendor kick-back and tax evasion charges.

According to U.S. Attorney David J. Freed, Pilsner was charged in a criminal information filed on September 20, 2018, with one count of wire fraud and one count of federal income tax evasion.  Pilsner, a former Vice President for Advertising for Rite Aid, engaged in a kick-back scheme with Larry Nuckols and Vance Taylor, the owners of Nuvision, Inc., an Atlanta, Georgia based company, between 1995 and August of 2017. 

Pilsner entered into an agreement with Nuckols and Taylor whereby Pilsner would approve Nuvision’s invoices, some of which were false and inflated, for payment.  In exchange, Nuckols and Taylor would “kick-back” a significant portion of Rite Aid’s payments to Pilsner. 

Between 2001 and August of 2017, Rite Aid paid Nuvision approximately $45.3 million dollars.  Pilsner allegedly received no less than $5,124,862 in kick-backs over that time period, with another $634,300 paid to other Rite Aid employees designated by Pilsner.

The criminal information also charged Pilsner with Income Tax Evasion for tax year 2013.  In March of 2014, Pilsner filed an income tax return with the IRS that did not report his receipt of $411,500 in kick-back money during 2013, thereby avoiding approximately $157,648, in federal income taxes.  The information also seeks the forfeiture of Pilsner’s interests in $5,743,162 and his Harrisburg residence.

Today Pilsner paid $300,000 towards his tax restitution obligation for the period 2013-2017 of approximately $592,000, and agreed to pay the balance at sentencing. 

Nuckols’ initial appearance/arraignment and guilty plea is scheduled for November 20, 2018.  Taylor was indicted on 40 counts of mail fraud, wire fraud, and money laundering on September 19, 2018, and is awaiting his initial appearance/arraignment on the charges.

The case is being investigated by the Harrisburg offices of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation.  Assistant United States Attorney Kim Douglas Daniel is prosecuting 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 for Mail Fraud and Wire Fraud is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty for Unlawful Monetary Transactions is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty for Income Tax Evasion 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.

 

# # #

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Brandon Black, age 34, of Etters, Pennsylvania, was indicted on September 26, 2018, by a federal grand jury for armed bank robbery.

According to United States Attorney David J. Freed, the indictment alleges that Black robbed the S&T Bank in Camp Hill, Pennsylvania, with a knife on August 31, 2018, taking approximately $2,823.     

The case was investigated by the Federal Bureau of Investigation and the Camp Hill Borough Police Department.  Assistant U.S. Attorney Carlo D. Marchioli 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. Attorney General Jeff Sessions 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.

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 imprisonment for twenty-five 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.

 

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Hollis Lee Ball, age 45, of Virginia, was sentenced on September 24, 2018, by United States District Court Judge John E. Jones, III to 235 months’ imprisonment followed by a life term of supervised release for production of child pornography.

According to United States Attorney David J. Freed, between March 5 and 11, 2017, Ball contacted two minor children in Pennsylvania through an Ipad application known as “Musical.ly.”  Ball used his access to the minor children through Musical.ly to persuade one of the children to send him exploitative images.    

Ball was previously convicted of a sex offense and was on the sex offender registry in Virginia when he committed the offense. 

This case was investigated by the Lower Paxton Police Department and the Federal Bureau of Investigation.  Assistant U.S. Attorney Chelsea Schinnour 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 today that William Fischer, age 46, of Dunmore, Pennsylvania, was sentenced on September 21, 2018, by United States District Court Judge Malachy E. Mannion to 235 months’ imprisonment for robbing 14 banks and brandishing firearms during the course of those robberies.

According to United States Attorney David J. Freed, Fischer robbed 14 banks located throughout northeastern Pennsylvania between December 1, 2015 and September 13, 2017.  Fischer was apprehended shortly after the September 13, 2017 robbery by the Pennsylvania State Police.  For 12 of the offenses, Fischer robbed the banks while armed with a firearm.  He also was convicted of brandishing a firearm during a crime of violence.  Fischer wore a ballistic vest during the robberies and was arrested with a loaded assault rifle and a loaded handgun.  Fischer’s crime spree netted $203,779.30; law enforcement recovered $16,769.00 of the stolen funds.

 

December 1, 2015

NBT Bank, Elmhurst

$6,946

December 22, 2015

NBT Bank, Newfoundland

$4,000

January 13, 2016

Community Bank, Scranton

$27,100

February 4, 2016

NBT Bank, Scranton

$9,136

February 11, 2016

NBT Bank, Newfoundland

$19,013

March 21, 2016

First Keystone Community Bank, Newfoundland

$13,413.98

April 7, 2016

Community Bank, Scranton

$40,226.50

October 3, 2016

First National Bank, Tannersville

$16,764.80

October 27, 2016

First Keystone Community Bank, Stroudsburg

$13,020

December 15, 2016

NBT Bank, Eynon

$8,717

January 26, 2017

PNC Bank, West Pittston

$11,159

June 8, 2017

NBT Bank, Eynon

$5,790.02

August 7, 2017

First National Bank, Tannersville

$11,724

September 13, 2017

Peoples Security Bank and Trust, Gouldsboro

$16,769

 

In addition to the sentence of imprisonment, Judge Mannion ordered that Fischer pay $187,010.30 to the victims of his crimes.  The United States forfeited $29,697.75 of Fischer’s assets, 24 firearms, ammunition, a suppressor, and other firearms components.

The matter was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and by numerous local law enforcement authorities throughout northeastern Pennsylvania.  Assistant United States Attorney Phillip J. Caraballo 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.  Attorney General Jeff Sessions 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 today that Brian Douglas Sheaffer, age 56, of Port Royal, Pennsylvania, was indicted on September 19, 2018, by a federal grand jury with ten counts of mail and wire fraud.

According to United States Attorney David J. Freed, the indictment alleges that between January 2010 and May 2016, Sheaffer, a former President, sole owner, and manager of Perry Petroleum Equipment Ltd., Inc. (PPE), engaged in a scheme to defraud business acquaintances, family, and friends by, among other things, falsely representing to them that the money they agreed to loan to Sheaffer and PPE would be used to fund the purchase of fuel tanks and other equipment PPE used in its operations.  The indictment alleges that Sheaffer used the loan proceeds to pay for personal expenses such as gambling and business expenses such as PPE payroll, insurance, federal taxes, and state taxes.  It is also alleged that Sheaffer solicited and received more than $1,000,000.00 in loans from more than twenty lenders. 

The case was investigated by the Federal Bureau of Investigation.  Assistant Joseph J. Terz 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 under federal law for these offenses is 40 years of imprisonment, a term of supervised release following imprisonment, and a $1,000,000 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.

 

# # #

HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jamar McMillan, age 34, of Harrisburg, Pennsylvania, was sentenced on September 21, 2018, to 20 years’ imprisonment and four years supervised release by Chief United States District Court Judge Christopher C. Conner for possession with the intent to distribute heroin, PCP, and synthetic marijuana, possession of a stolen firearm as a previously convicted felon and in furtherance of a drug trafficking crime.   

According to United States Attorney David J. Freed, McMillan was convicted by a jury in March 2018, following a three-day trial before Chief Judge Conner.  The case arose as a result of an arrest of McMillan in August 2015.  During his arrest, officers found heroin, PCP and synthetic marijuana on his person, and located a craftsman soft pouch on the driver’s seat of his vehicle, containing a stolen loaded .45 Heckler and Koch pistol, a balaclava face mask and a phone. The face mask and firearm were processed by the PA State Police laboratory and McMillan’s DNA was found on the items.

The case was investigated by the Harrisburg Police Department Vice Unit and the Federal Bureau of Investigation.  Assistant U.S. Attorney Chelsea Schinnour 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.  Attorney General Jeff Sessions 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.

# # #

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Nagy Mohamed Abdelhamed, age 68, of York, Pennsylvania, was indicted on September 19, 2018, by a federal grand jury on one count of health care fraud and six counts of false statements in health care matters.  The indictment was unsealed following Abdelhamed’s arrest.

According to the United States Attorney David J. Freed, the indictment alleges that on August 13, 2014, Abdelhamed applied for Medicaid and SNAP (formerly known as Food Stamp) benefits with the York County Assistance Office in August of 2014, even though he owned a four- bedroom residence in York, a gas station in York, a 2008 Mercedes Benz E350 automobile, received $1,124 a month in Social Security disability benefits, and held approximately $58,500 in eight different bank accounts.

The Indictment further alleges that on August 22, 2014, Abdelhamed sold his gas station for $172,883 and deposited $87,016 of the sales proceeds into a bank account.  Abdelhamed did not notify the York County Assistance Office of the sale or his receipt of the sales proceeds. According to the Indictment Abdelhamed continued to receive Medicaid and SNAP benefits into 2018 and as a result, fraudulently obtained approximately $29,337 in benefits, including approximately $20,338 in Medicaid benefits.

The case was investigated by the Harrisburg Offices of the Federal Bureau of Investigation and the U.S. Health and Human Services Office of Inspector General. Assistant U. S. Attorney Kim Douglas Daniel 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 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 a former Rite Aid Vice President and the two owners of an Atlanta based company have been charged for their role in a $5.7 million vendor kick-back scheme.

According to U.S. Attorney David J. Freed, James W. Pilsner, age 60, of Harrisburg, Pennsylvania, was charged in a criminal information filed on September 20, 2018, with one count of wire fraud and one count of federal income tax evasion.  The criminal information alleges that Pilsner, a former Vice President for Advertising for Rite Aid, engaged in a kick-back scheme with Larry Nuckols and Vance Taylor, the owners of Nuvision, Inc., an Atlanta, Georgia based company, between 1995 and August of 2017. 

According to the criminal information, Pilsner entered into an agreement with Nuckols and Taylor whereby Pilsner would approve Nuvision’s invoices, some of which were false and inflated, for payment.  In exchange, Nuckols and Taylor would “kick-back” a significant portion of Rite Aid’s payments to Pilsner. 

The criminal information alleges that between 2001 and August of 2017, Rite Aid paid Nuvision approximately $45.3 million dollars.  Pilsner allegedly received no less than $5,124,862 in kick-backs over that time period, with another $634,300 paid to other Rite Aid employees designated by Pilsner.

The criminal information also charges Pilsner with Income Tax Evasion for tax year 2013.  In March of 2014, Pilsner allegedly filed an income tax return with the IRS that did not report his receipt of $411,500 in kick-back money during 2013, thereby avoiding approximately $157,648, in federal income taxes.  The information also seeks the forfeiture of Pilsner’s interests in $5,743,162 and his Harrisburg, PA residence.

Larry D. Nuckols, age 69 of Valdosta, Georgia, is also charged in the same criminal information as Pilsner with one count of wire fraud. The information seeks the forfeiture of Nuckols’ interests in nine properties located in Florida, Georgia, Alabama, and Costa Rico, plus Nuckols’ half interest in a $1.3 million yacht, to the government.

Vance Taylor, age 71, of Acworth, Georgia, also owner of Nuvision, was indicted on September 19, 2018, by a federal grand jury and charged with 40 counts of mail fraud, wire fraud and unlawful monetary transactions.  The indictment seeks the forfeiture of $1,239,058 in U.S. Currency, eight cash/investment accounts, 73 tracts of real estate in Georgia, Florida and Alabama, and Taylor’s half interest in the $1.3 million yacht.

No date yet has been scheduled for the defendants’ initial appearances and arraignments on their charges before the U.S. District Court in Harrisburg.

The case is being investigated by the Harrisburg offices of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation.  Assistant United States Attorney Kim Douglas Daniel 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.

The maximum penalty under federal law for Mail Fraud and Wire Fraud is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty for Unlawful Monetary Transactions is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty for Income Tax Evasion 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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