Middle District of Pennsylvania

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Gavin Rexer, age 29, Dennis Paulhamus, age 39, Timothy Sweitzer, age 41, all of Jersey Shore, Pennsylvania, Joseph Powell, age 31, of Hickory, Pennsylvania, and John Joseph, age 38, of Canonsburg, Pennsylvania, were charged in a criminal information on May 25, 2018, with conspiring to impede the lawful functions of the Environmental Protection Agency (EPA) and Department of Transportation (DOT), and to violate the Clean Air Act.

According to United States Attorney David J. Freed, Rexer, Powell and Joseph were employees of Rockwater Northeast LLC, a company that serviced the fracking industry.  In the course of their employment, Rexer, Powell, and Joseph conspired to modify the emissions systems on approximately 30 Rockwater heavy-duty diesel trucks by using “defeat devices.”  The defeat devices were obtained from Paulhamus and Sweitzer and their purchases were concealed in Rockwater’s books and records by mislabeling them as exhaust systems.  The conspirators also are accused of taking the modified commercial motor vehicles to state approved inspection stations, including Sweitzer’s Garage, to pass federally regulated commercial motor vehicle inspections falsely.

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

“For years, the defendants engaged in a broad-based criminal conspiracy to manipulate vehicle emission components as a cost savings measure,” said Assistant Special Agent in Charge Jennifer Lynn of EPA’s Criminal Investigation Division.  “EPA and its law enforcement partners are committed to holding responsible those who violate environmental laws for competitive advantage.”      

“This investigation demonstrates our commitment to ensuring the safe and efficient travel of commercial motor vehicles,” said Douglas Shoemaker, regional Special Agent-in-Charge of the DOT Office of Inspector General. “Working with our Federal, State, and local law enforcement and prosecutorial colleagues, we will continue to protect the public’s safety from those that would seek to circumvent DOT-related laws and regulations.”

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

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

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

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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WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Marc Punzalan, age 24, of Rockville, Maryland, was indicted on May 24, 2018, by a federal grand jury on one count of stalking and one count of the attempted sexual exploitation of a minor.

According to United States Attorney David J. Freed, the indictment alleges that in June 2013, Punzalan used an internet messaging service to harass and intimidate a 13-year-old female in Lycoming County, Pennsylvania, causing her substantial emotional distress and resulting in her death. The indictment also alleges that Punzalan attempted to persuade, entice and induce the minor female to engage in sexually explicit conduct using a video web camera. 

The case was investigated by the South Williamsport Police Department and the Federal Bureau of Investigation.  Assistant United States Attorney Geoffrey W. MacArthur 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.

Punzalan faces a mandatory minimum sentence of 15 years in prison and a potential 30-year maximum sentence for the attempted sexual exploitation of a child, and up to life imprisonment for cyberstalking the victim.  The maximum possible fine for these offenses is $250,000. 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 Robert E. Miller, III, age 34, of York County, Pennsylvania, was sentenced on May 23, 2018, by United States District Court Judge John E. Jones, III, to 84 months’ imprisonment, 10 years’ supervised release and to pay a $5,200 special assessment, for being in the possession of images depicting the sexual exploitation of children and receipt of obscene visual representations depicting the sexual abuse of children. 

According to United States Attorney David J. Freed, Miller was convicted on December 6, 2017, following a three-day trial. The case originated when the FBI Major Case Coordination Unit sent a lead to the FBI Harrisburg office regarding a user browsing a known child pornography website. After obtaining a search warrant, federal and local law enforcement officers located hundreds of images and videos containing child pornography and obscene material depicting the sexual abuse of children, including violent rape, sodomy, bondage and forcible penetration with an object. 

This case was investigated by the Federal Bureau of Investigation and the Northern York County Regional Police Department.  Assistant United States Attorneys Daryl Bloom and Carlo Marchioli 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 today that Gerald Pambianco, age 29, of Plains Township, Pennsylvania, and Derek Spaide, age 26, of Hanover Township, Pennsylvania, were indicted on May 22, 2018, by a federal grand jury on one count of conspiracy to use firearms in furtherance of a crime of violence, one count of armed bank robbery, one count of brandishing a firearm in furtherance of a crime of violence, and one count of being convicted felons in possession of firearms.

According to United States Attorney David J. Freed, the indictment alleges that on May 16, 2018, Pambianco and Spaide traveled to the Luzerne National Bank in Plains Township. Spaide placed a t-shirt over his face, entered the bank and pointed a rifle at a bank employee,  demanded money and stole approximately $8,204. Spaide then entered a vehicle driven by Pambianco, who drove away from the bank and engaged in a high-speed vehicle chase with police.

The investigation was conducted by the Federal Bureau of Investigation, the Pennsylvania State Police, the Plains Township Police Department, and the Hanover Township Police Department. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and 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 and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

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

The maximum penalty for the armed bank robbery charge under federal law is 25 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. The charge of brandishing a firearm in furtherance of a crime of violence carries a mandatory minimum sentence of seven years, consecutive to any other 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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HARRISBURG –The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tackya Whyte, age 41, a Jamaican citizen who formerly resided in Richmond, Virginia, was sentenced today to 51 months’ imprisonment and to serve two years’ supervised release by United States District Court Judge John E. Jones, III, for his role in an international “sweepstakes scam” that defrauded seven American victims out of $459,881.

According to United States Attorney David J. Freed, Whyte pled guilty on August 28, 2017, to one count of mail fraud pursuant to a plea agreement with the government.  Whyte and unidentified fraudsters perpetrated a scheme that defrauded at least seven U.S. senior citizens, including at least one victim who resided in the Middle District of Pennsylvania.  The victims were falsely told they had won multi-million dollar international sweepstakes prizes.  The purported winners were directed to send Western Union and MoneyGram money transfers payable to Whyte, and others, to pre-pay taxes and other fictitious expenses in order to collect the non-existent cash prizes.  Whyte then re-transferred a portion of the fraud proceeds to conspirators in Jamaica, thereby serving as a “money mule” for the fraudsters.

During the sentencing hearing, Judge Jones noted Whyte and his co-conspirators deliberately preyed upon the elderly and that most of the victims had suffered substantial financial hardship as a result of the scam.  Five of the victims were in their 80’s, one was 74, and the youngest was 68. Many lost their life savings and retirement accounts. One victim lost $171,379, another lost her home to foreclosure, and a third had her electricity turned off during the winter months.

Judge Jones also ordered Whyte to pay $459,881 in restitution to the victims.

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

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

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Charles H. Bitner, Jr., age 45, of Carlisle, Pennsylvania, the President and Owner of Bitner Brothers Construction Company, Inc. (Bitner Brothers), located in Carlisle, entered a plea of guilty on May 22, 2018, on behalf of Bitner Brothers before United States Magistrate Judge Martin C. Carlson to violations of the Toxic Substances Control Act.

According to United States Attorney David J. Freed, Bitner Brothers was an experienced construction contractor certified by the U.S. Environmental Protection Agency as a lead renovator since October 2010.  Charles H. Bitner, Jr. was certified as a lead renovator by the U.S. Environmental Protection Agency since October 2010.  The company pled guilty to violating applicable work practices enacted pursuant to the Toxic Substances Control Act governing the reduction of lead exposure during renovations at a residential facility, by conducting power grinding without a shroud or containment system equipped with HEPA vacuum of lead-based painted surfaces.

“By ignoring important rules regarding the presence of lead in older buildings, the defendant’s actions put children in the local community at risk for serious injury,” said Assistant Special Agent-in-Charge Jennifer Lynn of the U.S. Environmental Protection Agency’s Criminal Investigation Division in Pennsylvania. “Today’s plea should serve notice that anyone who fails to comply with critical environmental regulations that protect public health will be prosecuted to the fullest extent of the law.”

The case was investigated by the U.S. Environmental Protection Agency’s Criminal Investigation Division.  Assistant U.S. Attorney William A. Behe 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 this offense is five years’ probation, and a $200,000 fine. Bitner Brothers Construction agreed not to be involved in lead abatement projects for the period of probation. 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 Johnny Fletcher, age 40, an inmate at the United States Penitentiary at Canaan (USP Canaan), located in Waymart, Pennsylvania, was indicted on May 22, 2018, by a federal grand jury for assaulting two federal correctional officers and possession of contraband in prison.

According to United States Attorney David J. Freed, the indictment alleges that on February 5, 2018, Fletcher  assaulted two correctional officers and possessed three sharpened pieces of metal commonly known as “shanks.” 

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

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

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

The maximum penalty which can be imposed under federal law is eight years of imprisonment, a term of supervised release following imprisonment, and a $250,000 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 Derek Pelker, age 28, of Wernersville, Pennsylvania, was convicted on May 18, 2018, by a jury on four counts of armed bank robbery, four counts of conspiracy to commit armed bank robbery, two counts of brandishing a firearm in relation to a crime of violence; and, two counts of possession of a firearm by a felon.  Pelker represented himself during the five-day trial held before United States District Court Judge Yvette Kane. 

According to U.S. Attorney David J. Freed, the jury returned a verdict of guilty after approximately two-days of deliberations and convicted Pelker of robbing the Susquehanna Bank in East Prospect, Pennsylvania on April 24, 2015; the BB&T Bank in Valley View, Pennsylvania on November 17, 2015; the Gratz Bank in Valley View, Pennsylvania on January 14, 2016; and, the M&T Bank in Lebanon, Pennsylvania on April 5, 2016. 

Pelker’s co-defendants pled guilty in relation to these robberies and are awaiting sentencing:

• Andrew Ishman, age 31, Wrightsville, pled guilty to the East Prospect bank robbery on October 3, 2016;
• Ryan Miller, a/k/a “Otis,” age 25, Robinson Township, pled guilty to the East Prospect robbery and a separate bank robbery on December 6, 2016;
• Keith Pelker, age 28, Wernersville, pled guilty to the Lebanon bank robbery on October 3, 2016;
• Shannon Gadzouris, age 24, Shillington, pled guilty to the Lebanon bank robbery on October 3, 2016;
• Ryan Martin, age 27, of Reading pled guilty to the two Valley View bank robberies on December 1, 2017; and  
• Kelsie Bair, age 28, and Lindsey School, age 27, both of Lebanon, pled guilty to accessory after the fact after they disposed of the weapon used in the Lebanon bank robbery off a pier in Ocean City, New Jersey.  The weapon was ultimately recovered by the FBI scuba diving team.

One co-defendant was sentenced:

• William Papoutsis, Pelker’s uncle, age 35, of Reading, pled guilty to obstruction of justice in relation to these robberies and was sentenced to six months’ imprisonment;

The investigation was conducted by the Federal Bureau of Investigation Capital City Violent Crimes Task Force, the Pennsylvania State Police, the South Lebanon Township Police Department, the U.S. Marshals Fugitive Task Force, and the Lebanon and York County District Attorney’s Offices.  The Capital City Violent Crimes Task Force consists of representatives from the FBI’s Harrisburg Field Office and the Harrisburg Police Department.  Assistant U.S. Attorneys Scott R. Ford and 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. 

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

The maximum penalty for the offenses is life imprisonment, a term of supervised release following imprisonment, and a $1,250,000 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 Johnnie Gresham, age 39, of Charleston, West Virginia, pleaded guilty on May 17, 2018, before U.S. District Court Judge Robert D. Mariani, to producing and attempting to produce child pornography.

According to United States Attorney David J. Freed, Gresham admitted that he persuaded a minor to take and forward to him videos and photographs of the minor engaged in sexually explicit conduct. Gresham committed the offense between April 2017 and June 2017, in Susquehanna County and elsewhere. Gresham used a cell phone and the internet to commit the crimes.

Judge Mariani ordered a presentence investigation to be completed. Sentencing will be scheduled after the presentence report is filed.

Gresham was indicted by a federal grand jury in November 2017, as a result of an investigation by Homeland Security Investigations and the Pennsylvania Attorney General’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 30 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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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Gary Stinson Smith, age 61, of Mechanicsburg, Pennsylvania, was sentenced on May 14, 2018, to 60 months’ imprisonment, a $50,000 fine and 10 years supervised release by United States District Court Judge John E. Jones, III, for possession of child pornography.

According to United States Attorney David J. Freed, Smith pled guilty in November 2016, and admitted to possessing images depicting child pornography.  After obtaining a search warrant, law enforcement officers searched the defendant’s computer in November 2015 and located over 1,000 images and 16 videos containing both child pornography and erotica. 

Judge Jones noted that this is not a victimless crime and ordered Smith to report to the Bureau of Prisons on May 18, 2018.

This case was investigated by the United States Postal Inspection Service and the Pennsylvania Office of the Attorney General.  Assistant United States Attorney Daryl Bloom 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 today that on May 11, 2018, United States District Court Judge Malachy E. Mannion sentenced Pablo Martinez, age 28, of East Stroudsburg, Pennsylvania, to 150 months’ imprisonment for a shooting that occurred in East Stroudsburg on January 12, 2016.

According to United States Attorney David J. Freed, Martinez pled guilty to the discharge of a firearm during and in relation to a drug trafficking crime and a crime of violence.  Martinez admitted that he was part of a conspiracy to rob a fellow drug dealer, lured to a meeting under the guise of a marijuana deal.  Martinez and co-conspirators waited in a pickup truck until the victim entered the front passenger seat, then sped off.  During the ensuing altercation, Martinez shot the victim twice, and the victim was thrown from the truck at speed, suffering severe injuries.  Martinez was a member of the Brick City Brims, a violent street gang involved in drug trafficking and other criminal activity in the East Stroudsburg area.

Two codefendants, Deshaun Lipscomb and Orrett Campbell, have pled guilty to felony charges and are awaiting sentencing.

The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Stroud Area Regional Police Department.  Assistant U.S. Attorney Sean A. Camoni 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.

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on May 10, 2018, United States District Court Judge Matthew W. Brann sentenced Robert Stoddard, of Washington D.C., to nine years in prison for assault with a dangerous weapon and possession of contraband while an inmate at United States Penitentiary, Allenwood.  A federal jury in Williamsport found Stoddard, age 47, guilty of both charges after a two-day trial in January.

According to United States Attorney David J. Freed, Stoddard attacked another inmate with a weapon fashioned from a razor blade.  The victim required over fifty stitches for his wounds and was permanently scarred on a substantial portion of his face.  Jurors viewed a security camera video of the attack from two angles and heard testimony from correctional officers, a prison psychologist, and the victim himself.  Stoddard testified in his own defense, and was later found to have obstructed justice, in part, because he gave testimony that was untruthful.

By law, the 108-month sentence will run consecutive to Stoddard’s current sentence, which won’t be fully served until March of 2021.

The investigation was conducted by the Federal Bureau of Investigation and officers at USP Allenwood.  The case was prosecuted by Assistant United States Attorneys Sean A. Camoni and Alisan VanFleet.

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the Third Circuit Court of Appeals on May 10, 2018, affirmed the 15 ½-year prison sentence of Thurman Stanley, age 41, of Stroudsburg, Pennsylvania, including a requirement that Stanley comply with the Sex Offender Registration and Notification Act (SORNA), imposed by Senior U.S. District Court Judge James M. Munley.    

According to United States Attorney David J. Freed, the Court ruled that Stanley, who pleaded guilty to drug and interstate prostitution charges in March 2017, waived his right to appeal the applicability of SORNA because he agreed in the plea agreement that SORNA applied to his offenses.

Stanley argued on appeal that SORNA did not apply to interstate transportation offenses where the prostitution involved consenting adults and did not involve force or coercion. The government argued that Stanley waived his right to challenge the court’s imposition of SORNA requirements when he acknowledged in the plea agreement that SORNA applied, and argued that there was sufficient evidence to show that Stanley used force, threats and coercion in his prostitution activities.

In affirming Stanley’s sentence, the Court explained that, “[a] defendant who stipulates to a point in a plea agreement cannot later make arguments taking a contrary position.”

Stanley was indicted on sex trafficking, prostitution, and drug charges by a federal grand jury in November 2016, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police from Monroe County. Stanley subsequently admitted to prostituting 11 adult females in Pennsylvania, including transporting three of the females to New York, Iowa, and North Dakota for purposes of prostitution.

Assistant United States Attorney Francis P. Sempa prosecuted the case and argued the appeal for the government before a three-judge panel of the Third Circuit Court.

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HARRISBURG - Communities across the United States gather during National Police Week, which is observed from Sunday, May 13 to Saturday, May 19, 2018, to remember federal, state, and local law enforcement officers who made the ultimate sacrifice in the line of duty to share their stories of courage and sacrifice and to honor their memory.

“One officer death is too many,” Attorney General Jeff Sessions said.  “While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high.  At the Department of Justice, we honor the memories of the fallen and we pray for their families.  We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us.  As always, we have their backs and they have our thanks.”

“The citizens of this District were reminded in stark terms on January 18, 2018 of the sacrifices that law enforcement officers and their families make to protect us every day,” said United States Attorney David J. Freed.  “The tragic and heroic death of Deputy United States Marshal Christopher Hill once again highlighted the potential dangers faced by men and women in law enforcement each time they take to the streets.  We seek to honor the memory of USDM Hill and others lost in the line of duty through our constant efforts to reduce violence in our communities.”

During National Police Week and in honor of fallen officers, two Middle District of Pennsylvania Assistant United States Attorneys are participating in the Police Unity Tour to help raise awareness of law enforcement officers who have died in the line of duty. 

According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 – a 21 percent decrease from 2016 when 118 law enforcement officers were killed in line-of-duty incidents.

Additionally, in 2017 there were 46 law enforcement officers killed in line-of-duty incidents as a result of felonious acts – this is a 30 percent decrease from 2016, when 66 law enforcement officer were killed in line-of-duty incidents as a result of felonious acts.

In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty.  The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.  

The names of all 93 fallen officers nationwide will be formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018.  So that people across the country can experience this unique and powerful ceremony, the vigil will be livestreamed beginning at 8:00 p.m. EDT on May 13th. To register for this free online event, visit www.LawMemorial.org/webcast.

Among those added this year from Pennsylvania will be:

• Brian Shaw, New Kensington Police Department, who died in November 2017;
• Michael Stewart, III, Pennsylvania State Police, who died in July 2017;
• Shawn Rager, Johnstown Police Department, who died in October 2016;
• David Weaver, State Correctional Institute Graterford, who died in September 2016; and
• Raymond Diaz, Jr., Philadelphia Police Department, who died in September 2016.

Along with remembering the officers who made the ultimate sacrifice in the line of duty, Police Week is an opportunity to recognize and honor all law enforcement officers in our communities, who courageously stand on the front lines each day for the safety and protection of others.

The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2018.

For more information about other National Police Week events, please visit www.policeweek.org.

To access the FBI's 2017 Law Enforcement Officers Killed and Assaulted report, please visit www.fbi.gov.

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that James Williams, III, a/k/a “Dilly,” age 30, of Stroud Township, Pennsylvania, was indicted on May 8, 2018, by a federal grand jury on drug trafficking and firearms charges.

According to United States Attorney David J. Freed, the indictment alleges that Williams conspired to distribute and possess with the intent to distribute 500 grams and more of cocaine beginning in 2017 in Monroe County, Pennsylvania.  The indictment further charges Williams with distribution and possession with intent to distribute within 1,000 feet of Stroudsburg High School on two occasions in March and April of this year.  Williams was also charged with possession with intent to distribute 500 grams and more of cocaine on May 3, 2018.  The indictment further alleged that Williams, a convicted felon, illegally possessed three firearms, one of which was stolen and had an obliterated serial number, and possessed of a firearm in furtherance of drug trafficking.

The case was investigated by the U.S. Federal Bureau of Investigation, the Stroud Regional Police Department, and the Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni 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 this offense is 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.

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WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Scott Grenninger, age 36, of Lock Haven, Pennsylvania, was indicted today on one count of possession of child pornography, two counts of production of child pornography, two counts of the attempted enticement of minors to engage in prostitution, and one count of transmitting obscene materials to a minor.

According to United States Attorney David J. Freed, the indictment alleges that on various dates in 2017, Grenninger produced child pornography in Lock Haven with a female under the age of 12 and also used a computer to compile videos of himself and minor children appearing by web-cam over the internet.  Grenninger is also alleged on two occasions to have used chat-rooms on the internet to attempt to offer money to girls under the age of 12 in exchange for sex and in connection with one of these attempts sent obscene materials over the internet.

The case was investigated by the Pennsylvania State Police and the Federal Bureau of Investigation with assistance from the Clinton County District Attorney’s Office.  Assistant United States Attorney Geoffrey W. MacArthur 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.

Grenninger faces a mandatory minimum sentence of 15 years in prison and a potential 30-year maximum sentence for the production of child pornography charge, up to 10 years in prison for the enticement counts, and up to 10 years’ imprisonment each for the transmission of obscene materials to a minor and possession of child pornography.  The maximum possible fine for these offenses is $1,500,000. 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 Joan Cicchiello, age 67, of Annville and Mount Carmel, Pennsylvania, was sentenced on May 9, 2018, to 72 months’ imprisonment and three years of supervised release by United States District Court Judge John E. Jones, II on Health Care Fraud related charges.   

According to United States Attorney David J. Freed, Cicchiello, a licensed Certified Registered Nurse Practitioner and Registered Nurse who is certified by the Commonwealth of Pennsylvania, was indicted in October 2016, and charged with one count of Health Care Fraud, thirty-seven counts of making false statements related to health care matters, and one count of obstruction of a federal audit. 

Cicchiello was the owner and operator of Twilight Beginnings, located in Mount Carmel, that provided mental health services.  Cicchiello used her company to recruit individuals who were either not properly licensed or unlicensed and have them “provide” psychiatric care to patients.  Despite the fact that Cicchiello knew these individuals were not trained, licensed nor authorized to provide these psychiatric related services, Cicchiello directed that they meet with elderly residents of nursing homes throughout central and northeastern Pennsylvania, as well as with adolescents seeking psychiatric care at her Mount Carmel, Pennsylvania office.  These individuals, whom Cicchiello referred to as her “counselors,” included a retired chiropractor, a convicted felon whose clinical social worker license was suspended, and numerous other unqualified individuals. 

Cicchiello directed these individuals provide to her with a listing of the patients they met.  Cicchiello then utilized these lists to falsely bill the Medicare program as though she, a properly licensed and trained practitioner, personally provided face-to-face psychotherapy related services to the adolescent and elderly patients. 

Additionally, Cicchiello created false documents representing that her “counselors” were properly trained and licensed.  Cicchiello provided these false documents to the Medicare program as well as nursing homes and personal care homes throughout central and northeastern Pennsylvania.  Cicchiello falsely billed the Medicare program when she claimed she was providing psychotherapy to patients in Pennsylvania when, in fact, she was vacationing in such locations as Las Vegas, Russia, Denmark, London, Iceland, Italy, Norway, Scotland and Ireland.  Cicchiello directed her employees to create false psychiatric progress notes documenting care never provided by her to patients while she was traveling abroad. 

Prior to rendering sentence, Judge Jones commented that the fraud was of a particularly disturbing nature and had many moving parts. Not only did she falsely bill Medicare and created false licenses for her employees, but her scheme preyed upon the elderly, the disabled and the infirm by using individuals who are unqualified to provide counseling and psychotherapy services in every way.  These “services” were provided by such individuals as a licensed clinical social worker whose license was suspended based upon two prior felony drug convictions, an 80- year-old chiropractor, and a convicted Megan’s Law offender. Judge Jones also noted that Cicchiello ran her business out of an abandoned church in Mt. Carmel and organized it as a charity. 

Judge Jones also ordered that Cicchiello be immediately remanded into custody, pay restitution to the Medicare program in the amount of $152,122, a $150,000 fine, and the moneys previously seized by the government, in bank accounts owned and/or controlled by her that were proceeds of her false and fraudulent billings she submitted to Medicare.

“This brazen fraud was compounded by the fact that it was perpetrated on some of our most vulnerable citizens,” said United States Attorney Freed.  “The hard-working agents of HHS-OIG and the FBI should be commended for their tireless work on this investigation.  The outstanding efforts of these investigators resulted in appropriate punishment for the offender, recovery of taxpayer funds and the opportunity for the victims to receive the legitimate help that they need.”

“The Medicare program exists to provide health care services to the most vulnerable members of our society-the elderly and disabled,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General. “Ms. Cicchiello actions show she valued money over the health and safety of her elderly, disabled and adolescent patients.  HHS- OIG Special Agents and our law enforcement partners will continue to work tirelessly to hold such individuals accountable for these types of actions.” 

"It's not enough that this defendant fleeced the taxpayers in stealing money from Medicare," said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "What's truly despicable is the manner in which she did so. Her sham mental health clinic put many vulnerable patients at risk, while she was pocketing the payments for personal gain. Proper mental health treatment can be life-changing. Sadly, so can sub-standard care."

The case was investigated by the Office of Inspector General (OIG) for the US Department of Health and Human Services, Harrisburg Field Office, and the Federal Bureau of Investigation (FBI), Williamsport Resident Agency.  Assistant United States Attorneys Joseph J. Terz and Chelsea B. Schinnour prosecuted the case.

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on May 4, 2018, Charles Cole Memorial Hospital, a Pennsylvania nonprofit corporation in Coudersport, Pennsylvania, agreed to pay the United States $373,547.54 to settle allegations from two self-disclosures by Charles Cole to the Office of Inspector General for the United States Department of Health and Human Services (OIG) through the OIG’s Provider Self-Disclosure Protocol.

According to United States Attorney David J. Freed, the first self-disclosure and the investigation that followed, from August 1, 2007, through December 2013, alleged that Charles Cole failed to bill under a particular modifier to reduce the Medicare reimbursement amount for services provided by physician assistants and nurse practitioners in its pain management, orthopedics, gastroenterology, and medical oncology physician office practices.  According to the second self-disclosure and the investigation that followed, Charles Cole allegedly failed to perform required face-to-face encounters with some of its Medicare hospice patients prior to the third benefit period recertification and every subsequent benefit period re-certification from January 1, 2001 through February 1, 2014. Charles Cole has since taken corrective action and voluntarily disclosed these matters.  This settlement resolves the matter without the filing of litigation.

This case was investigated by the Office of Inspector General for the United States Department of Health and Human Services. This matter was handled by Assistant United States Attorney Melissa Swauger for the United States Attorney’s Office.

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Charles W. Johnston, age 70, of Camp Hill, Pennsylvania,  was indicted by a federal grand jury on April 12, 2018, for obstruction of proceedings before agencies of the United States.  The indictment was unsealed today

According to United States Attorney David J. Freed, the indictment alleges that from August 28, 2014 to May 1, 2015, Johnston, legal counsel for the Plumbers and Pipefitters Local Union 520 Plan, corruptly withheld and concealed documents related to allegations of mismanagement of the pension plan and fraud made by PATH, the pension’s third party administrator.  

"An important mission of the Office of Inspector General is to investigate allegations of fraud affecting the employee benefit plans covered by the Employee Retirement Income Security Act. We will continue to work with our law enforcement partners to investigate these types of allegations,” said Richard Deer, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.

“The prosecution of those who obstruct the investigative activities of the Employee Benefits Security Administration is essential to this agency’s mission to protect the rights of America’s workers,” said Michael Schloss, EBSA Regional Director in Philadelphia.  “We and our law enforcement partners will continue to aggressively investigate such crimes on behalf of workers nationwide.”

The case was investigated by the U.S. Department of Labor Office of Inspector General,  the Employee Benefits Security Administration, and the Federal Bureau of Investigation.  Assistant U.S. Attorney Joseph J. Terz 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 four years of imprisonment, a term of supervised release following imprisonment, and a $250,000 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.

# # #

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Justin Weist, age 26, of Berwick, Pennsylvania, was sentenced on May 2, 2018, to 33 months’ imprisonment by United States District Court Judge Robert D. Mariani for Bank Robbery. 

According to United States Attorney David J. Freed, Weist admitted to the February 23, 2017, robbery of First National Bank in Tannersvile, Monroe County, Pennsylvania during his guilty plea on October 11, 2017.  Weist stole $1,800, all of which was recovered.  Weist, who did not possess a weapon, robbed the bank by presenting a note to a teller demanding money.

The case was investigated by the U.S. Federal Bureau of Investigation (FBI) and was prosecuted by Assistant U.S. Attorney Sean A. Camoni.

# # #

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg indicted seven individuals in two separate indictments on April 25, 2018, on drug trafficking and firearms charges. 

According to United States Attorney David J. Freed, the indictments charge the following defendants for offenses that took place between November 2017 and April 2018 in York County:

• Francisco Rivera-Rivera, age 26 – is charged with one count of conspiracy to distribute heroin; one count of possession of a firearm in further of a drug trafficking crime; one count of felon in possession of firearm; one count of possession of a stolen firearm; and four counts of distribution of heroin; 
• Axel Pena-Reyes, age 24 – is charged with one count of conspiracy to distribute heroin; two counts of distribution of heroin; one count of possession with intent to distribute heroin, marijuana, cocaine base and cocaine hydrochloride;
• Jessica Curet, age 37 – is charged with one count of conspiracy to distribute 100 grams of heroin (which is equivalent to approximately 4,000-5,000 individual doses); six counts of distribution of heroin; two counts of distribution of cocaine base; one count of felon in possession of firearm;
• Christopher Cruz-Ortiz, age 23 - is charged with one count of conspiracy to distribute heroin; nine counts of felon in possession of firearm; five counts of possession of a stolen firearm; one count of distribution of heroin; three counts of possession of a firearm with obliterated serial number;
• Jaiell Montalvo, age 19 - is charged with one count of felon in possession of firearm; one count of possession of a firearm with obliterated serial number;
• Deondre Densby, age 35 – is charged with one count of felon in possession of firearm; one count of possession of a stolen firearm; and
• Edwin Garbrial Ramos-Reyes, age 37 – is charged with one count of being a felon in possession of firearm.

The indictment also alleges that defendants sold 16 firearms, including 15 pistols and one AK style rifle. Of the firearms that were sold, six were confirmed stolen, and three had their serial numbers obliterated.

“There are two important takeaways from today’s announcement,” said United States Attorney Freed.  “First, our concerted efforts to address violent crime in York are a team effort and we are true partners.  And we are not going anywhere. In the last few years the United States Attorney’s office has prosecuted more than 70 violent felons from York.  And as long as this criminal behavior continues, we will be standing together with our local partners.  Second, today’s announcement again underscores that drug dealing is inherently violent activity.  Illegal drugs and illegal guns go hand in hand.  We will not rest in our mission to reduce violence in this city.”

"This investigation is an example of ATF’s dedication to working with our state, local and federal partners in identifying, targeting, and investigating violent criminals who are involved in selling narcotics and firearms who prey upon innocent citizens and lessen the quality of life in our neighborhoods,” said ATF Special Agent in Charge Donald Robinson. “Our neighborhoods deserve to exist without fear and intimidation inflicted by all violent drug gangs. We will continue to work with our partners to impact the violent drug related activity that has wreaked havoc throughout York.”

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), York City Police Department, York County District Attorney’s Office, the York County Drug Task Force and West Manchester Police Department, with assistance on arrests of defendants by York County Probation and the United States Marshal Service Task Force. Assistant U.S. Attorney Daryl Bloom 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.

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

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

The maximum penalty under federal law for the charges of conspiracy to distribute and possess with intent to distribute heroin; distribution of heroin; possession with intent to distribute heroin; distribution of cocaine base are all up to 20 years’ imprisonment; the charges of felon in possession; possession of a stolen firearm; felon in possession and aiding and abetting; possession of a firearm with an obliterated serial number are all up to 10 years’ imprisonment; and possession of a firearm in furtherance of drug trafficking is up to 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.

# # #

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jeremy Baney, age 47, an inmate at SCI Smithfield, Huntingdon, Pennsylvania, pleaded guilty on May 2, 2018, before Senior United States District Court Judge Sylvia H. Rambo to aiding and assisting in making false statements to the IRS. 

According to United States Attorney David J. Freed, Baney admitted to being involved in a prison tax scheme from November 17, 2009 through February 25, 2012.  Baney obtained names and social security numbers of inmates to file false tax returns or would send that information to a former inmate who would then prepare and file the fraudulent 1040EZ tax returns with fictitious wages and holdings in order to get a tax refund. 

The government is alleging that Baney attempted to receive tax refunds totaling $236,407, to which he was not entitled to receive.

Judge Rambo ordered a presentence report to be completed by the end of June.  Sentencing will be scheduled at a later date.

“Tax refunds should only be issued to taxpayers who are entitled to them," said Guy Ficco, Special Agent in Charge IRS Criminal Investigation. “IRS-CI is sworn to protect the tax system and bring to justice those who would steal from the Treasury.”

The investigation was conducted by the Internal Revenue Service Criminal Investigation.  Assistant United States Attorney William A. Behe 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 is three 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.

# # #

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Joseph Stefanski, age 37, of Wilkes-Barre Township, Pennsylvania, pleaded guilty today before Senior United States District Court Judge James M. Munley to theft of mail. 

According to United States Attorney David J. Freed, Stefanski admitted to stealing mail between December 2014 and February 2015.  The thefts were discovered after postal customers in the areas of Dallas, Shavertown, Plains, Trucksville and Luzerne Township, Luzerne County, complained about mail that was not received and mail that was received with contents missing.  Some of the missing contents included cash, gift cards, and lottery tickets. 

Further investigation revealed that Stefanski, who was employed by a trucking company hired to transport mail from one post office to another, had removed mail and its contents from mail containers in his truck.

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

The investigation was conducted by the United States Postal Service, Office of Postal Inspection Services.  Assistant United States Attorney Robert J. O’Hara 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 is 5 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 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.

# # #

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Matthew Tomlin, age 32, of New Jersey, was sentenced on April 16, 2018, by United States District Court Judge James Munley to 70 months’ imprisonment for bank robbery. 

According to United States Attorney David J. Freed, on January 31, 2017, Tomlin entered the PNC Bank, located in Carbondale, Pennsylvania, and gave the teller a note stating, “100s, 50s, 20s, and I have a gun,” before taking more than $1,000 and leaving the bank.  Minutes after Tomlin left PNC Bank, Carbondale police officers stopped him and recovered the money. 

This case was investigated by the Federal Bureau of Investigation and the Carbondale Police Department. Assistant United States Attorney Evan Gotlob 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 community to develop effective, locally-based strategies to reduce violent crime.

# # #

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Anthony Michael Cobb, age 48, of Waynesboro, Pennsylvania, was convicted on April 25, 2018, of unlawful possession of firearms and drug trafficking after a two-day jury trial held before United States District Court Judge Sylvia H. Rambo.

According to United States Attorney David J. Freed, the jury returned a verdict of guilty after approximately two hours of deliberations and convicted Cobb of three counts of unlawful possession of five separate firearms and of being a previously convicted felon who was not permitted to possess firearms.  The jury also found Cobb guilty of possession with intent to distribute cocaine hydrochloride (powder cocaine), cocaine base (crack cocaine), and heroin.

The charges stemmed from a stabbing and shooting incident in Waynesboro.  On May 9, 2016, Waynesboro Police Officers went to Cobb’s apartment with a search warrant and found a firearm, marijuana, cocaine, crack, heroin, an assortment of prescription pills, digital scales, ziplock bags, razor blades, and piles of cash. Police also located firearms at Cobb’s storage unit. 

The matter was investigated by the Waynesboro Police Department and the Federal Bureau of Investigation.  Assistant U.S. Attorneys James T. Clancy and Carlo D. 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. 

The case also is 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 the unlawful possession of firearm charges is life in prison, a term of supervised release following imprisonment, and a fine.  The maximum penalty for each of the drug trafficking charges is 30 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.  A sentencing date has not yet been set.

# # #

SCRANTON--The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Samuel Lombardo, age 53, of Pittston, Pennsylvania, was convicted on April 24, 2018, on drug trafficking and firearms charges after a two-day jury trial held before United States District Court Judge James M. Munley.

According to United States Attorney David J. Freed, the jury returned a verdict of guilty after approximately one hour of deliberations and convicted Lombardo of three felony offenses for distribution and possession with the intent to distribute heroin, and possession of a firearm in furtherance of his drug trafficking activity.  The evidence at trial established that Lombardo sold heroin on August 12, 2015, and again on August 13, 2015, to a confidential informant of the Kingston Police Department. Immediately after the August 13, 2015 operation, Kingston officers arrested Lombardo and searched his car, recovering seven additional bags of heroin, brass knuckles with a hidden switchblade, over $500, and a loaded .25 caliber semi-automatic handgun.

This was a joint investigation between the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Kingston Police Department.  Assistant United States Attorneys Evan Gotlob and Phil Caraballo 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.

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.

Lombardo faces a minimum of 5 years’ imprisonment and a maximum term of lifetime imprisonment, a term of supervised release following imprisonment, and fines totaling $3,250,000.  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 Gamarius Jones, age 23, of Harrisburg, Pennsylvania, was indicted on April 25, 2018, by a federal grand jury on drug trafficking and firearms charges.

According to United States Attorney David J. Freed, the indictment alleges that Jones possessed with the intent to distribute crack cocaine on December 5, 12 and 21, 2017, in Dauphin County.  The indictment also alleges that on February 12, 2018, in Dauphin County, Jones unlawfully possessed a .45 caliber Springfield handgun as a previously convicted felon.

The matter was investigated by the Harrisburg Police Department, the Office of Attorney General, 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.

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 this offense 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 today that on April 18, 2018, Chief United States District Court Judge Christopher C. Conner sentenced Jeff Smith, age 30, of York, Pennsylvania, to 168 months’ imprisonment for conspiracy to possess with intent to distribute cocaine base (“crack cocaine”). 

According to U.S. Attorney David J. Freed, Smith pled guilty on October 16, 2017 to the charge of conspiracy to possess with intent to distribute 280 grams and more of cocaine base.    Smith distributed crack cocaine in the York area from 2014 through his arrest on October 5, 2016.  At the time of Smith’s arrest, agents recovered 20 grams of crack cocaine on Smith.  During the investigation, agents and detectives seized 180 grams of crack cocaine, along with approximately $15,000 cash from residences associated with Smith.

The case was investigated by the Drug Enforcement Administration and the York City Police Department.  Assistant United States Attorney Meredith A. Taylor 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.

# # #

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Eric T. Banks, age 38, of York, Pennsylvania, was indicted on April 18, 2018, by a federal grand jury on drug trafficking and firearms charges.

According to United States Attorney David J. Freed, the indictment alleges that Banks possessed with intent to distribute heroin and cocaine on January 19, 2018, in York.  The indictment also alleges that Banks possessed multiple firearms in furtherance of drug trafficking and unlawfully possessed those firearms as a previously convicted felon.

The case was investigated by the Federal Bureau of Investigation and the York County Drug Task Force.  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.

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.

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 imprisonment for life, 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 seven previously deported aliens were indicted separately on April 18, 2018, by a federal grand jury for illegal re-entry into the United. 

According to United States Attorney David J. Freed, Jorge Martinez-Casas, age 38, of Mexico, was previously deported from the United States to Mexico in June 2016.  He is alleged to have illegally re-entered the United States sometime after June 2016, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.

Rey Sanchez-Fierro, age 42, of Mexico, was previously deported from the United States to Mexico in December 2010, January 2011, 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.

Erasmo Rivera-Reyes, age 46, of Mexico, was previously deported from the United States to Mexico in February 2012 and April 2013.  He is alleged to have illegally re-entered the United States sometime after April 2013, and was found in the United States in Lebanon County, Pennsylvania after eluding examination or inspection by immigration officers.

Jose Gonzalez-Villegas, age 23, of Mexico, was previously deported from the United States to Mexico in June 2014 and October 2016.  He is alleged to have illegally re-entered the United States sometime after October 2016, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.

Antonio Rodriguez-Ramirez, age 41, of Honduras, was previously deported from the United States to Honduras in September 2001 and January 2011.  He is alleged to have illegally re-entered the United States sometime after January 2011, and was found in the United States in Lackawanna County, Pennsylvania after eluding examination or inspection by immigration officers.

Rosalio Zamora-Lopez, age 43, of Mexico, was previously deported from the United States to Mexico in January 2011, April 2011, February 2012, March 2014 and March 2014.  He is alleged to have illegally re-entered the United States sometime after March 2014, and was found in the United States in Adams County, Pennsylvania after eluding examination or inspection by immigration officers.

Omar Lopez-Hernandez, age 29, of Mexico, was previously deported from the United States to Mexico in February 2011.  He is alleged to have illegally re-entered the United States sometime after February 2011, and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.

Under federal law, Martinez-Casas, Sanchez-Fierro, Rivera-Reyes, Gonzalez-Villegas, Rodriguez-Ramirez, Zamora-Lopez, Lopez-Hernandez all 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 on April 18, 2018, United States District Court Judge Robert D. Mariani sentenced Donald Korus, age 40, of Plymouth, Pennsylvania, to 45 months’ imprisonment for illegally possessing a firearm as a convicted felon. 

According to United States Attorney David J. Freed, Korus unlawfully possessed a stolen handgun during an altercation outside his Plymouth home on October 2, 2015.  Korus pointed the gun at two victims, who were outside Korus’s home to repossess a vehicle, and threatened them.  In the ensuing struggle, the gun discharged, firing a single shot into the floor of the vehicle.  Korus intentionally gave false testimony during an evidentiary hearing, resulting in additional jail time.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Plymouth Borough Police Department.  Assistant United States Attorney Sean A. Camoni prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and 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 Brianna Rattigan, age 25, of Wilkes-Barre, Pennsylvania, was sentenced on April 18, 2018, to serve one year in prison by Senior U.S. District Court Judge James M. Munley, for her role in a heroin trafficking conspiracy that operated in Luzerne County during February through November 2014.

According to United States Attorney David J. Freed, Rattigan previously pleaded guilty to conspiracy to possess with intent to distribute more than 100 grams of heroin. Rattigan admitted to allowing her sister, Megan Fox, to store between 100 and 400 grams of heroin in Rattigan’s residence. That quantity of heroin is approximately equivalent to between 4,000 and 16,000 retail bags of heroin.

Megan Fox previously pleaded guilty to running the heroin trafficking operation while the leader of the drug ring, Desmond Mercer, was in prison. Fox was sentenced to 30 months in prison. Mercer 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. Another member of the drug ring, Antuan Jamison, was sentenced to five years in prison.

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

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

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.

# # #

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Patrick Hynes, age 21, of Tobyhanna, Pennsylvania, pleaded guilty on April 17, 2018, before U.S. District Court Judge A. Richard Caputo to conspiracy to distribute heroin and cocaine.  

According to United States Attorney David J. Freed, Hynes admitted to participating in a conspiracy to distribute between 40 and 60 grams of heroin (which is equivalent to 1,600 to 2,400 individual doses of heroin), as well as additional quantities of cocaine, in the Monroe County area between May and July 2015.  Davis was one of eleven individuals indicted by a grand jury in July 2015, and charged with conspiring to distribute heroin and cocaine in the Monroe County area.

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

The investigation was conducted by the Drug Enforcement Administration (DEA) and the Pocono Mountain Regional Police Department.  Assistant United States Attorney Robert J. O’Hara is prosecuting the case.

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

# # #

WILKES-BARRE – The United States Attorney’s Office for the Middle District of Pennsylvania announced that today United States District Court Judge A. Richard Caputo sentenced Michael Mejia, age 21, who resided in Wilkes-Barre, Pennsylvania, to a time-served sentence of approximately six months of imprisonment and two years of supervised release.

According to United States Attorney David J. Freed, from approximately May 11, 2017 through August 23, 2017, Mejia conspired with others to steal checks from mail receptacles throughout Luzerne County, deposit the checks into accounts under their control, and withdraw the funds in cash.  As part of the sentence, Judge Caputo also ordered Mejia to pay $16,310.91 to the victims of his crimes.

The investigation was conducted by United States Postal Investigators.  Assistant United States Attorney Phillip J. Caraballo prosecuted the case.

# # #

WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that John Sherman Jumper, age 52, of Memphis, Tennessee was indicted on April 12, 2018, by a federal grand jury for embezzling $5.7 million from the pension benefit plan for employees of Snowshoe Refractories, a fire brick manufacturer located in Clarence, Centre County, Pennsylvania.

According to United States Attorney David J. Freed, the indictment alleges that Jumper, a securities broker based in Memphis, Tennessee, forged signatures on fraudulent documents that purportedly authorized him to transfer funds from the pension plan on three separate occasions between March 2015 through April 2016.  The indictment also alleges that Jumper used the embezzled funds to make unauthorized loans and investments for the purchase of a tubing plant in Arkansas and three other business, to pay off $1.2 million of his personal loans, and to cover his personal legal fees.  The indictment further alleges that Jumper received a personal interest in the businesses purchased with the embezzled pension funds, and his securities company, Alluvion Securities in Memphis, received over $1 million in fees from the sale of the Arkansas tubing plant.

The indictment alleges that the Snow Shoe Refractories Employee Pension Plan for Hourly Employees included about 129 active and retired employees.  At the time the alleged $5.7 million embezzlement began, the pension plan assets were worth approximately $9.8 million. 

The indictment charges Jumper with four counts of wire fraud, three counts of embezzlement from an employee pension benefit plan, and five counts of false statements and concealment of facts in pension benefit plan records.

The case was investigated by the Federal Bureau of Investigation, with the assistance of the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), the Financial Industry Regulatory Authority (FINRA), and the United States Securities and Exchange Commission. Assistant U.S. Attorney George J. Rocktashel 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 65 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 that Theodore Martin, age 54, and his wife, Arminda Martin, age 47, formerly of York County, Pennsylvania, were indicted by a federal grand jury for mail fraud and conspiracy to commit mail fraud.  

            According to U.S. Attorney David J. Freed, between 2003 and 2016, the Martins owned and operated Suburban Memorial Gardens Cemetery in Dover, Pennsylvania.  As owners and operators of the cemetery business, the Martins sold burial services, including burial plots, vaults, caskets, and grave markers.  The indictment alleges that from 2010 to on or about 2016, the Martins defrauded at least 200 of their customers of Suburban Memorial Gardens Cemetery out of approximately $500,000. Instead of applying the customers’ monies to the prepaid cemetery services and products contracted for, the Martins embezzled the money for their own personal gain including for gambling.

            The investigation was conducted by the United States Department of Veterans Affairs Office of Inspector General, Northern York County Police Department and the Federal Bureau of Investigation, and is assigned to Assistant U.S. Attorney Joseph J. Terz.

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

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

            The maximum penalty under federal law is 20 years’ of imprisonment on each count, a term of supervised release following imprisonment, and a $250,000 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 - With the deadline for filing income tax returns rapidly approaching, the U.S. Attorney’s Office for the Middle District of Pennsylvania, and the Philadelphia Field Office, IRS Criminal Investigation Division, jointly announced a warning to those who are thinking about breaking the law by committing tax crimes including listing recent tax fraud prosecutions and sentences.

“Millions of individuals file their federal income tax returns in a timely and accurate manner but unfortunately, there are some who choose not to pay their fair share,” said United States Attorney David J. Freed.  “These individuals are taking advantage of the honest taxpayers who finance the government’s operations and subject themselves to criminal prosecution.”

“As the 2018 tax season draws to a close, everyone is reminded of their obligation to file tax returns that accurately reflect all of their income and expenses” said Guy Ficco, Special Agent in Charge of the Philadelphia Field Office.  "The Special Agents of IRS Criminal Investigation will continue to pursue the prosecution of those who willfully and intentionally violate their known legal duty of filing and paying their fair share of taxes."

Over the last year, the U.S. Attorney’s Office has prosecuted and convicted numerous individuals for filing false federal tax returns and committing tax evasion. Defendants have received substantial sentences for tax fraud, ranging from several years in prison to home confinement. Restitution is mandatory and often includes substantial interest and penalties.  For example, the following individuals were charged and/or sentenced for tax fraud recently:

FILING FALSE TAX RETURNS AND TAX EVASION

• Donna Marie Wozniak, age 57, of New Freedom, Pennsylvania, pled guilty on August 14, 2017, to a two-count criminal information charging her with embezzlement in connection with healthcare and tax evasion. Wozniak was the business manager for Susquehanna Valley Surgery Center (SVSC), Harrisburg, Pennsylvania from 2000 through 2014.  As part of Wozniak’s job duties, she received invoices form vendors of SVSC that needed to be paid from SVSC’s general operating account. Upon receipt of these invoices, Wozniak would then review the invoices to decide when and how much each vendor would be paid. Wozniak obtained blank checks ostensibly for payment to vendors.  During a forensic audit of SVSC's financial records, it was discovered that Wozniak made a portion of the signed blank SVSC checks payable to herself and that these checks were cleared through SVSC's M&T Bank account. Wozniak cashed or deposited a total of $4.3 million utilizing multiple bank accounts she maintained. In order to conceal her theft, Wozniak created false invoices from legitimate SVSC vendors. Wozniak would then falsify entries into the QuickBooks accounting software maintained by SVSC, showing the checks and payments were being made to the vendors. Wozniak admitted to the theft of SVSC funds and was terminated from SVSC in November of 2014.  Wozniak failed to report the embezzled income on her Federal Income Tax Returns for a total tax loss of $1,312,000.  Wozniak was sentenced to 71 months’ imprisonment and ordered to pay $5,587,026.13 in restitution.
• Richard J. Morgan, age 54, of Shavertown, Pennsylvania, pled guilty on July 7, 2017, for committing bank fraud and interfering with the administration of the Internal Revenue laws. Morgan owned and operated Wilkes-Barre Bookkeeping LLC, a Shavertown, Pennsylvania-based business that provided payroll services to its clients.  Local businesses contracted Morgan to pay employee payroll and salary expenses, to file IRS Form 941 Employer Quarterly Federal Tax Returns, and to remit employment tax liabilities to federal, state and local taxation authorities.  For three of his clients, Morgan failed to file the IRS Forms 941 and remit the employment taxes to the appropriate authorities, instead embezzling the funds for his own personal use.  Between March 2010 and October 2016, Morgan embezzled $376,224.85 from those clients, all while lying to them about his activities. Morgan also served as a Treasurer for a non-profit corporation and was tasked with selling its assets and winding up its operations when it closed in February 2010.  Instead, after paying the non-profit corporation’s outstanding liabilities, Morgan embezzled the remaining residual sales proceeds of $68,172. Morgan was sentenced on February 13, 2018, to 38 months’ imprisonment and was ordered to pay $494,618.85 in restitution to his victims and the IRS.
• Nicholas A. Long, age 30, of Mechanicsburg, Pennsylvania, pled guilty on October 4, 2017, to an information charging him with the willful failure to pay federal payroll taxes owed by his business, Harrisburg Commercial Interiors, LLC during 2013. An Internal Revenue Service (IRS) investigation revealed that Long, through his solely owned commercial drywall business, Harrisburg Commercial Interior, LLC (HCI), willfully did not pay $216,304 in payroll taxes during 2013 and 2014. The IRS investigation began when several HCI employees contacted the IRS because they did not receive their 2013 income tax refunds. As the owner of HCI, Long exercised primary control over the financial affairs of the business, was solely responsible for issuance of all paychecks, and had sole signature authority on HCI's business bank account. Although he issued payroll checks totaling $730,788 in gross wages during 2013 and 2014, Long did not file the requisite Employer's Quarterly and Annual Federal Tax Returns, Forms and 940, with the IRS, nor pay over the $160,399 he withheld from his employees’ pay checks to the government. Long was sentenced on March 9, 2018, to one year and one day imprisonment and ordered to make full restitution in the amount of $216,304.   
• Michael Powers, age 53, of New Cumberland, Pennsylvania, who owns and operates Powers Auto Repair in New Cumberland, pled guilty on September 11, 2017, to understating his true income by $238,381 on his 2010 income tax return. The tax owed on that unreported income amounted to $42,774.  Under the terms of his plea agreement, Powers will make restitution to the Internal Revenue Service (IRS) in that amount plus another $26,198 for unpaid taxes owed on unreported income of $208,979 for tax year 2012.  Thus, the total loss to the IRS as a result of Powers’ underreporting of income was $68,972. Powers was sentenced on March 12, 2018, to one year probation and home confinement and ordered to pay $68,972 in restitution.
• Sopheak Kim, age 68, of Harrisburg, Pennsylvania, pled guilty on March 28, 2018, to willful failure to collect or pay employment tax and corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue Service.  Kim owned and operated Trojan Services, Inc., a Harrisburg-based company which contracted to provide labor to local companies. From 2010 through 2013, Kim failed to maintain business records relating to the operation of Trojan Services, Inc., to include records relating to employees, payroll and tax withholdings. The total tax loss alleged is approximately $250,110.  Kim is awaiting sentencing.
• Atef Hussein, age 48, of Hagerstown, Maryland, pled guilty on October 30, 2017, to income tax evasion.  Hussein, former owner/operator of the Fairground Diner in Carlisle, Pennsylvania, understated income and taxes due, resulting in false income tax returns for tax years 2012 through 2015.  The tax loss for that period totaled $122,003. Hussein is scheduled to be sentenced on May 30, 2018.
• Geraldo Ramos, age 44, of Harrisburg, Pennsylvania, pled guilty on November 13, 2017, to conspiracy to submit false claims and submitting false claims against the United States regarding income tax refunds. Between 2010 and 2014, Ramos acted as a tax return preparer and filed numerous false and fraudulent tax returns for family and friends claiming $58,659 in refunds they were not entitled to receive.  As a result, the IRS paid the conspirators $52,711, which was shared with Ramos.  The fraudulent tax returns included misrepresenting Schedule C income, listing fictitious dependents and manipulating filing status.  Ramos is scheduled to be sentenced on April 24, 2018.
• Donald Royce, age 41, of Scranton, Pennsylvania, was indicted on May 16, 2017, for tax preparation fraud charges.  Royce was a tax preparer in Scranton who defrauded a number of local residents in 2014.  The indictment alleges that Royce prepared fraudulent tax returns for multiple taxpayers causing more than $250,000 in losses. Royce gave the taxpayers a client copy of their tax return, then made material fraudulent changes to the client copy, and submitted the false return to the Internal Revenue Service (IRS) for his financial benefit. The indictment further alleges that Royce took clients’ IRS payment checks and deposited them directly in to his own account without ever remitting the amount to the IRS, all without the taxpayers’ knowledge. Royce is awaiting trial.

STOLEN IDENTITY REFUND FRAUD

In addition to prosecuting tax evaders and fraudulent tax return preparers, the IRS and the U.S. Attorney’s Office are continuing a major effort to investigate and prosecute individuals who steal the identities of taxpayers and file fraudulent tax returns.

Federal penalties for each count of conviction of tax crimes range from a maximum of one year in prison and a $100,000 fine for failure to file a tax return, false withholding exemptions, and delivering or disclosing false tax documents, to a maximum of 10 years in prison and a $250,000 fine for conspiracy to defraud with respect to false refund claims. Other penalties include a mandatory term of two years in prison and a $250,000 fine for aggravated identity theft charges, three years in prison and a $250,000 fine for obstructing or impeding an investigation and filing or preparing a false tax return, and a maximum of five years in prison and a $250,000 fine for tax evasion, failure to pay taxes, conspiracy to commit a tax offense or conspiracy to defraud.

TAX SCAM WARNING

The U.S. Attorney’s Office and the IRS remind tax payers to exercise caution during tax season to protect themselves against tax schemes ranging from identity theft to return preparer fraud. Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice to shutdown scams and to prosecute the criminals behind them.  The IRS would like to warn taxpayers of a quickly growing scam involving erroneous tax refunds being deposited into their bank accounts. Criminals steal client data from tax professionals and filing fraudulent tax returns, these criminals use the taxpayers' real bank accounts for the deposit.  Thieves are then using various tactics to reclaim the refund from the taxpayers, and their versions of the scam may continue to evolve.  In one version of the scam, criminals posing as debt collection agency officials acting on behalf of the IRS contacted the taxpayers to say a refund was deposited in error, and they asked the taxpayers to forward the money to their collection agency.  In another version, the taxpayer who received the erroneous refund gets an automated call with a recorded voice saying he is from the IRS and threatens the taxpayer with criminal fraud charges, an arrest warrant and a “blacklisting” of their Social Security Number. The recorded voice gives the taxpayer a case number and a telephone number to call to return the refund.

The IRS urges taxpayers to follow established procedures for returning an erroneous refund to the agency. The IRS also encourages taxpayers to discuss the issue with their financial institutions because there may be a need to close bank accounts. Taxpayers receiving erroneous refunds also should contact their tax preparers immediately. Here are the official ways to return an erroneous refund to the IRS. If the erroneous refund was a direct deposit:

1. Contact the Automated Clearing House (ACH) department of the bank/financial institution where the direct deposit was received and have them return the refund to the IRS.
2. Call the IRS toll-free at 800-829-1040 (individual) or 800-829-4933 (business) to explain why the direct deposit is being returned.

If the erroneous refund was a paper check and hasn't been cashed:

1. Write "Void" in the endorsement section on the back of the check.
2. Submit the check immediately to the appropriate IRS location listed below.The location is based on the city (possibly abbreviated) on the bottom text line in front of the words TAX REFUND on your refund check.
3. Don't staple, bend, or paper clip the check.
4. Include a note stating, "Return of erroneous refund check because (and give a brief explanation of the reason for returning the refund check)."

The erroneous refund was a paper check and you have cashed it:

• Submit a personal check, money order, etc., immediately to the appropriate IRS location listed below.
• If you no longer have access to a copy of the check, call the IRS toll-free at 800-829-1040 (individual) or 800-829-4933 (business) (see telephone and local assistance for hours of operation) and explain to the IRS assistor that you need information to repay a cashed refund check.
• Write on the check/money order: Payment of Erroneous Refund, the tax period for which the refund was issued, and your taxpayer identification number (social security number, employer identification number, or individual taxpayer identification number).
• Include a brief explanation of the reason for returning the refund.
• Repaying an erroneous refund in this manner may result in interest due the IRS.

For your paper refund check, here are the IRS mailing addresses to use based on the city (possibly abbreviated). These cities are located on the check’s bottom text line in front of the words TAX REFUND:

• ANDOVER – IRS, 310 Lowell Street, Andover, MA 01810
• ATLANTA – IRS, 4800 Buford Highway, Chamblee, GA 30341
• AUSTIN – IRS, 3651 South Interregional Highway 35, Austin, TX 78741
• BRKHAVN – IRS, 5000 Corporate Ct., Holtsville, NY 11742
• CNCNATI – IRS, 201 West Rivercenter Blvd., Covington, KY 41011
• FRESNO – IRS, 5045 East Butler Avenue, Fresno, CA 93727
• KANS CY – IRS, 333 W. Pershing Road, Kansas City, MO 64108-4302
• MEMPHIS – IRS, 5333 Getwell Road, Memphis, TN 38118
• OGDEN – IRS, 1973 Rulon White Blvd., Ogden, UT 84201
• PHILA – IRS, 2970 Market St., Philadelphia, PA 19104

Education is the best way to avoid these common schemes.  To learn more about other scams and for help with recognizing and avoiding abusive tax schemes, the IRS offers educational material at www.irs.gov.

# # #

WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Susquehanna Supply Company, Inc., of Williamsport, Pennsylvania, was sentenced on April 10, 2018, by U.S. Magistrate Judge William I. Arbuckle to pay a fine of $250,000 for willfully committing an OSHA violation that resulted in an employee’s death.

According to United States Attorney David J. Freed, the sentence was part of a plea agreement in which Susquehanna Supply Company acknowledged that it was guilty of willfully violating an OSHA regulation during its work on a bridge rehabilitation project near Eyers Grove in Columbia County in the summer of 2015.  The rehabilitation project involved digging large trenches at each end of the bridge.  OSHA regulations require that an employee working in a trench must be protected from cave-ins by an adequate protective system, such as sloped walls.  Cave-ins represent the greatest danger during a trenching operation and are more likely than other trenching-related accidents to result in worker fatalities. 

On July 7, 2015, a Susquehanna Supply Company employee entered a trench at one end of the bridge to remove additional soil.  The trench was approximately twelve feet deep.  Although Susquehanna Supply Company was aware of the applicable OSHA regulations, the company had not implemented a protective system in the trench.  While the employee was working, one of the trench’s vertical dirt walls collapsed, burying the employee up to his chest and crushing him against the bridge’s concrete abutment.  The collapse caused massive trauma to the employee’s upper body and killed him almost instantly.

The case was investigated by the Occupational Safety and Health Administration, Wilkes-Barre, and was prosecuted by Assistant U.S. Attorney Carlo D. Marchioli.

# # #

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the Department of Justice recognized the 50th Anniversary of the Fair Housing Act as Attorney General Jeff Sessions announced the nationwide rollout of an initiative aimed at increasing awareness and reporting of sexual harassment in housing. The initiative includes an interagency task force between the Department of Housing and Urban Development (HUD) and the Justice Department to combat sexual harassment in housing, an outreach toolkit, and a public awareness campaign. This three-pronged approach will strengthen the Department’s efforts to combat sexual harassment in housing.

“Sexual harassment in housing is illegal, immoral, and unacceptable," said Attorney General Sessions. “It is all too common today, as too many landlords, managers, and their employees attempt to prey on vulnerable women. We will not hesitate to pursue these predators and enforce the law. In October, I ordered a new initiative to bring more of these cases, and we have already won relief for 15 victims. Today we announce three new steps to make the initiative more effective and to win more cases. I want to thank the dedicated and committed professionals in our Civil Rights Division and our partners in the Department of Housing and Urban Development for their hard work in this effort. We will continue to aggressively pursue harassers, because everyone has a right to be safe in their home.”

“All discrimination stains the very fabric of our nation, but HUD is especially focused on protecting the right of everyone to feel safe and secure in their homes, free from unwanted sexual harassment,” said Secretary Ben Carson. “No person should have to tolerate unwanted sexual advances in order to keep a roof over his or her head. Part of our mission at HUD is to provide safe housing and we will remain diligent in this mission to protect those we serve. I look forward to working with Attorney General Sessions and the Department of Justice as part of this task force to bring an end to this type of discrimination.”

“The United States Attorney’s Office for the Middle District of Pennsylvania stands ready to ensure that violations of the Fair Housing Act in the form of sexual harassment in public housing are addressed quickly and aggressively,” said United States Attorney David J. Freed.  “The right to be secure in our homes is fundamental, and no less so for our friends and neighbors in public housing.   We look forward to working with our partners at the federal, state and local level to increase public awareness of this issue, streamline the complaint process and, most important, hold violators to account.”

In October 2017, the Justice Department announced an initiative to combat sexual harassment in housing and launched pilot programs in D.C. and the Western District of Virginia. The initiative sought to increase the Department’s efforts to protect women from harassment by landlords, property managers, maintenance workers, security guards, and other employees and representatives of rental property owners. During the pilots, the Department developed and tested ways to better connect both with victims of sexual harassment in housing and with those organizations that victims may turn to first for help – including law enforcement, legal services providers, public housing authorities, sexual assault services providers, and shelters.  The Department also tested certain aspects of the initiative in other jurisdictions, including New Jersey, the Central District of California, Massachusetts, Vermont, and Michigan.

The two pilot programs generated an upswing in harassment reporting to the Department from both D.C. and the Western District of Virginia. In D.C., the Department generated six leads since the October 2017 launch. In Virginia, the Department generated three leads. While the Justice Department recognizes that leads and investigations do not always lead to enforcement actions, the pilot program’s results—when extrapolated across all the U.S. Attorney’s Offices across the country—could lead to hundreds of new reports of sexual harassment in housing across the country.

Because of these promising results, the Department is rolling out three major components to the Initiative.

First, the new HUD-DOJ Task Force to Combat Sexual Harassment in Housing will drive a shared strategy between the Department and HUD for combatting sexual harassment in housing across the country. It will focus on five key areas: continued data sharing and analysis, joint development of training, evaluation of public housing complaint mechanisms, coordination of public outreach and press strategy, and review of federal policies.

Second, the outreach toolkit is designed to leverage the Justice Department’s nationwide network of U.S. Attorney’s Offices. The toolkit provides templates, guidance, and checklists based on pilot program feedback. It ultimately will amplify available enforcement resources and help victims of sexual harassment connect with the Department.

Third, the public awareness campaign has three major components: a partnership package with relevant stakeholders, launch of a social media campaign, and Public Service Announcements (PSAs) run by individual U.S. Attorney’s offices. The campaign is specifically designed to raise awareness, and make it easier for victims all over the country to find resources and report harassment.

More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of sexual harassment in housing should call the Department at 1-844-380-6178, send an e-mail to fairhousing@usdoj.gov, or contact HUD at 1-800-669-9777.  If you have information or questions about any other housing discrimination, you can contact the Department at 1-800-896-7743.

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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Khiri Arter, age 25, of Harrisburg, Pennsylvania, was indicted on April 11, 2018, by a federal grand jury on drug trafficking and firearms charges.

According to United States Attorney David J. Freed, the indictment alleges that Arter possessed with intent to distribute heroin, fentanyl, and crack cocaine on September 13, 2017, in Harrisburg.  The indictment also alleges that Arter possessed a loaded Smith & Wesson 9mm handgun in furtherance of drug trafficking and unlawfully possessed that handgun as a previously convicted felon.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Police Department.  Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.   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.

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 imprisonment for life, 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 Jesus Chavez, age 27 and Rudy Mendoza age 33, both federal inmates at the United States Penitentiary Canaan (“USP Canaan”), located in Waymart, Pennsylvania, were indicted on April 10, 2018, by a federal grand jury with assaulting another inmate with a dangerous weapon.

According to United States Attorney David J. Freed, the indictment alleges that Chavez and Mendoza assaulted a fellow inmate at USP Canaan on June 17, 2017.  Both inmates were also charged with possessing a homemade weapon fashioned from a sharpened piece of metal, commonly known as a “shank.”

The investigation was conducted by the Federal Bureau of Investigation and officers from USP Canaan.  The case is being prosecuted by Assistant United States Attorney Evan Gotlob.

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 is 15 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 on April 10, 2018, John Golom, age 52, of Florida, was indicted by a federal grand jury on sex trafficking charges.

According to United States Attorney David J. Freed, the indictment alleges that between 2014 and February 1, 2018, Golom trafficked two women as prostitutes through force, threat, and coercion in Florida and Monroe County, Pennsylvania. 

The case was investigated by the Federal Bureau of Investigation, the Monroe County Detectives Office, Stroud Regional Police Department, and the Monroe County District Attorney’s Office.  Assistant U.S. Attorney Sean A. Camoni 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 this offense is a life term 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.

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.

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WILKES-BARRE – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on April 6, 2018, United States District Court Judge A. Richard Caputo sentenced Jaquan Henderson, age 28, of Wilkes-Barre, Pennsylvania, to eight years’ imprisonment and three years of supervised release, for conspiring to distribute crack cocaine.

According to United States Attorney David J. Freed, Henderson pleaded guilty to conspiring to distribute and possess with intent to distribute crack cocaine in February 2016.  Henderson was charged with five other individuals in May 2016.  Henderson’s sentence was impacted, in part, by his significant criminal history, which qualified him as a career offender under the advisory United States Sentencing Commission Guidelines.

The matter was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives, and by the Luzerne County Drug Task Force.  Assistant United States Attorney Phillip J. Caraballo 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.

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Durrell Davenport, age 27, and Amod Phillips, age 28, both of Scranton, Pennsylvania, pleaded guilty on April 9, 2018, before United States District Court Judge Malachy E. Mannion, to federal robbery charges filed in connection with the armed robbery of the EFuel gas station and food mart located on Pittston Avenue in Scranton.

According to United States Attorney David J. Freed, Davenport and Phillips admitted to the charge of brandishing firearms in furtherance of a crime of violence, filed in connection with the robbery of the EFuel gas station on June 8, 2017.  Approximately $266 and several packs of cigarettes were taken in the robbery.  Davenport also pleaded guilty to the charge of interference with commerce by robbery, stemming from a separate armed robbery of the Sunoco gas station and convenience store on South Main Avenue in Scranton, which occurred on June 20, 2017.  Davenport stole $386 and several packs of cigarettes in that robbery.  Davenport and Phillips were indicted by a grand jury in November 2017.

Judge Mannion ordered a presentence investigation be completed.  Sentencing will be scheduled at a later date.

The investigation was conducted by the Scranton Police Department, the Bureau of Alcohol, Tobacco and Firearms, and the Federal Bureau of Investigation.  Assistant United States Attorney Robert J. O’Hara is prosecuting the case.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.  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.  

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

The maximum penalty for the robbery charges under federal law is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. The charge of brandishing a firearm in furtherance of a crime of violence carries a mandatory minimum sentence of seven years’ imprisonment, consecutive to any other 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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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Donna Marie Wozniak, age 57, of New Freedom, Pennsylvania, was sentenced today to 71 months’ imprisonment and three years’ supervised release by United States District Court Judge John E. Jones, III, for embezzlement in connection with healthcare and tax evasion.

According to United States Attorney David J. Freed, on August 14, 2017, Wozniak pled guilty to a two-count criminal information charging her with embezzlement in connection with healthcare and tax evasion. Wozniak was the business manager for Susquehanna Valley Surgery Center (SVSC), Harrisburg, Pennsylvania from 2000 through 2014.  As part of Wozniak’s job duties, she received invoices form vendors of SVSC that needed to be paid from SVSC’s general operating account. Upon receipt of these invoices, Wozniak would then review the invoices to decide when and how much each vendor would be paid. Wozniak obtained blank checks ostensibly for payment to vendors.  During a forensic audit of SVSC's financial records, it was discovered that Wozniak made a portion of the signed blank SVSC checks payable to herself and that these checks were cleared through SVSC's M&T Bank account. The evidence shows that Wozniak cashed or deposited a total of $4.3 million utilizing multiple bank accounts she maintained. In order to conceal her theft, Wozniak created false invoices from legitimate SVSC vendors. Wozniak would then falsify entries into the QuickBooks accounting software maintained by SVSC, showing the checks and payments were being made to the vendors. Wozniak admitted to the theft of SVSC funds and was terminated from SVSC in November of 2014.  During sentencing, Wozniak represented to the Court that her gambling addiction caused her to embezzle the funds.

“We appreciate the outstanding effort of our partners at IRS Criminal Investigation in this substantial embezzlement case,” said United States Attorney Freed.  “As evidenced by Judge Jones’ sentence, there are stiff consequences for individuals who choose to commit such high dollar thefts.”

“All income is taxable, no matter what the source of the income,” said Guy Ficco, Special Agent in Charge of IRS Criminal Investigation.  “Today’s sentencing should serve as a deterrent to others who might consider attempting a similar scheme in the future.”   

The case was investigated by the Internal Revenue Service Criminal Investigation.  Assistant United States Attorney Joseph J. Terz prosecuted the case.

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WILKES-BARRE – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on April 6, 2018, United States District Court Judge A. Richard Caputo sentenced Steven M. Caravella, age 28, who formerly resided in East Stroudsburg, Pennsylvania, to a time-served sentence of approximately nine months’ imprisonment and two years of supervised release for stealing social security benefits paid to his mother by the Social Security Administration.  

According to United States Attorney David J. Freed, Caravella used a government-issued debit card to obtain the social security benefits for approximately one year after his mother’s death, and before the Social Security Administration was advised of her death.  Caravella obtained approximately $7,762 in benefits between August 2012 and July 2013, as a result of the theft.

The case was investigated by the Social Security Administration’s Office of the Inspector General.  Assistant United States Attorney Phillip J. Caraballo prosecuted the case.

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tianna Thompson, age 26, of Washington D.C., pleaded guilty on April 4, 2018, before U.S. District Court Judge James M. Munley to the charge of providing contraband to an inmate at the United States Penitentiary at Canaan.

According to United States Attorney David J. Freed, Thompson admitted to providing several small packages of marijuana to inmate Charles Elegalam, age 30, formerly of Washington D.C., on July 1, 2017, during a social visit at the United States Penitentiary at Canaan. The marijuana packages were subsequently seized from Elegalam by prison staff members.  Thompson and Elegalam were indicted by a grand jury in September 2017.  The charges against Elegalam are currently pending.

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

The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service.  Assistant United States Attorney Robert J. O’Hara 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 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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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the Estate of Dr. Leroy Pelicci has agreed to pay the United States $625,000 to settle False Claims Act allegations.

According to United States Attorney David J. Freed, Leroy J. Pelicci was a physician and owner of the Pelicci Pain Relief Center in Scranton, Pennsylvania until his death in March 2014.  The United States alleged that Dr. Pelicci submitted numerous improper claims for payment to the Department of Labor Office of Workers’ Compensation Programs under the Federal Employees Compensation Act and the Federal Employees Health Benefits Program for trigger point injections, which were upcoded to receive a higher reimbursement amount than permitted, between June 11, 2003 and March 4, 2014.  The settlement reflects the amount of loss to the Government as a result of these allegations, as well as the costs of the investigation.

The United States Postal Service Office of Inspector General (USPS OIG) Special Agent in Charge Kenneth G. Cleevely, Pittsburgh, stated, “The U.S. Postal Service pays about $3 billion per year in workers compensation costs. USPS OIG special agents, along with our law enforcement partners, conduct investigations of those individuals who choose to take advantage of the system. I want to thank the U.S. Attorney’s Office for their diligence in pursuit of this civil settlement, and for recovering what the government is due.”

Scott Rezendes, Special Agent in Charge, Office of Personnel Management Office of Inspector General (OPM OIG) said, “Today’s settlement should serve as a warning to those who would attempt to defraud the Government.  The OPM OIG is committed to protecting the integrity of the Federal Employees Health Benefits Program, and we will continue to investigate and prosecute illegal billing practices that waste taxpayer dollars and increase the cost of medical care.”

This case was investigated by the Office of Personnel Management Office of Inspector General, the United States Postal Service Office of Inspector General and the United States Department of Labor Office of Inspector General. The civil settlement was handled by Assistant United States Attorney Melissa Swauger.

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Leandro Nazario, age 39, currently in Adams County Correctional Complex, Gettysburg, Pennsylvania, was sentenced on April 2, 2018, to 20 years’ imprisonment and five-years supervised release by U.S. District Court Judge John E. Jones, III, for conspiring to distribute heroin and cocaine in Lebanon County.

According to United States Attorney David J. Freed, 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 kilograms of heroin were being processed on a weekly basis. 

The investigation 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.  Nazario, formerly of Puerto Rico, was the second-in-command of the drug trafficking organization and was the foreman of the processing mill.  All together 13 individuals were charged.  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. 

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.

The individual defendants previously convicted:

• Israel Nazario was sentenced to 180 months’ imprisonment;
• Julio Aviles, Sr. is awaiting sentencing;
• Michael Millan-Miranda is awaiting sentencing.

The individual defendants who previously pleaded guilty:

• Eliezer Soto-Concepcion was sentenced to 144 months’ imprisonment;
• Suheidy Soto-Concepcion was sentenced to 120 months’ imprisonment;
• Julio Aviles, Jr. was sentenced to 28 months’ imprisonment;
• Brenda Soto was sentenced to 12 months and 1 day imprisonment;
• Geidy Arroyo was sentenced to time served and three years’ supervised release;
• Brittany Rivera is awaiting sentencing;
• Brent Moyer is awaiting sentencing;
• Carlos Nazario is awaiting sentencing.

Kengie Millan-Miranda remains a fugitive. If anyone knows the whereabouts of Kengie Millan-Miranda please contact law enforcement.

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 and Special Assistant United States Attorney Nichole Eisenhart, who also serves as the First Assistant District Attorney in Lebanon County, Pennsylvania, 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 was also 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.

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Myles Davis, age 29, of Tobyhanna, Pennsylvania, pleaded guilty on April 2, 2018, before U.S. District Court Judge A. Richard Caputo to the charge of conspiracy to distribute more than 100 grams of heroin.

According to United States Attorney David J. Freed, Davis admitted to participating in a conspiracy to distribute between 100 and 400 grams of heroin (which is equivalent to 4,000 to 16,000 individual doses of heroin) in the Monroe County area between May and July 2015.  Davis was one of eleven individuals indicted by a grand jury in July 2015 and charged with conspiring to distribute heroin and cocaine in the Monroe County area.

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

The investigation was conducted by the Drug Enforcement Administration (DEA) and the Pocono Mountain Regional Police Department.  Assistant United States Attorney Robert J. O’Hara is prosecuting the case.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.  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.         

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 up to 40 years in prison, a term of supervised release following imprisonment, and a fine. The charge also carries a mandatory minimum sentence 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.

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