Middle District of Pennsylvania

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daleo G. Powell, age 34, of Harrisburg, was sentenced to 43 months in federal prison for possession with intent to distribute heroin by Senior U.S. District Court Judge William W. Caldwell in Harrisburg.

According to United States Attorney Peter Smith, the sentence follows a two- day jury trial in January 2016.  The charges were the result of an initial investigation by Harrisburg Bureau of Police in December 2014 in which Powell was found in possession of a loaded firearm and nine bundles of heroin in Harrisburg.  The jury acquitted Powell of a related firearms charge. The nine bundles contained 90 bags or 90 individual doses of heroin. 

This case was investigated by the Federal Bureau of Investigation and the Harrisburg Bureau of Police. The case was prosecuted by Assistant United States Attorney Meredith A. Taylor.

This case 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.

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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former 17 year veteran police officer with the Fairview Township Police Department pled guilty today to federal charges stemming from the theft of seized money that was evidence in two separate drug cases.

According to United States Attorney Peter Smith, Tyson Baker, age 42, Etters, York County, pled guilty to two counts of theft of federal funds before U.S. District Court Judge Sylvia H. Rambo in Harrisburg.  No date has been set for sentencing.

As the government stated as part of the record at the guilty plea hearing, the Federal Bureau of Investigation in Harrisburg received information that Baker stole money from drug traffickers who were arrested, the subject of traffic stops, or both. On November 21, 2015, Baker orchestrated the theft of $2,000 in drug proceeds seized by the Fairview Township Police Department during a search of a residence that resulted in the seizure of several pounds of marijuana and approximately $15,000. At the time another officer with the Fairview Township Police Department cooperating with the FBI recorded conversations with Baker regarding the theft in which Baker discussed how the officer should steal drug proceeds from drug traffickers during traffic stops.

On December 16, 2015 the FBI, with the full cooperation of the Fairview Township Police Department, arranged for an undercover vehicle operated by an undercover FBI agent to be stopped by Fairview Township. Baker had the vehicle towed from the scene and, without a warrant and in spite of directions from an FBI agent not to search the vehicle, Baker searched the vehicle and stole $3,000 out of $15,000 concealed in a gym bag in the back of the vehicle. The undercover vehicle was equipped with video recording equipment that recorded Baker going through the vehicle without a warrant. On December 18, 2015 Baker was arrested by the FBI and confessed to both incidents.

United States Attorney Smith pointed out that Fairview Township Police initiated the complaint concerning Baker’s actions and that the Police Department cooperated fully with the FBI and state law enforcement in the investigation. “Law enforcement professionals recognize that a corrupt police officer is a danger to the community as well as fellow officers and that corruption only aids other law breakers.  We appreciate and thank the Fairview Township Police who exposed and helped removed Baker from his position of authority.”

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. The combined maximum penalty under federal law is 20 years. There is also a term of supervised release following imprisonment, and a $500,000 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.

The case was investigated by the Harrisburg Resident Office of the Federal Bureau of Investigation, the Pennsylvania State Police, the Pennsylvania Office of Attorney General, and the Fairview Township Police Department.

The case is being prosecuted by Assistant United States Attorneys William A. Behe and Michael Consiglio.

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SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 29-year-old Brooklyn, New York man was sentenced to 135 months (11 ½ years) in federal prison on August 31 by U.S. District Court Judge Malachy E. Mannion in Scranton, for sex trafficking of a minor.  

According to United States Attorney Peter Smith, the defendant, Clinton Hayden a/k/a “Showtime,” previously pleaded guilty in March 2016, to recruiting, enticing, and transporting two minor females from Luzerne County to Brooklyn to engage in commercial sex acts.  

Hayden was charged in an Information filed in December 2015, as a result of an investigation by Homeland Security Investigations and the Pennsylvania State Police.

Hayden admitted that between May 2015 and November 2015, he recruited the minor females, posted photographs of them in advertisements on a website, and transported them from Luzerne County to Brooklyn, where they engaged in prostitution at Hayden’s direction.

Judge Mannion also ordered that Hayden be placed on supervised release for 10 years following his prison sentence. Hayden must also register as a sex offender, receive sex offender treatment, and comply with the provisions of the Sex Offender Registration and Notification Act.

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."

Assistant U.S. Attorney Francis P. Sempa prosecuted the case.     

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania has announced that yesterday a federal grand jury in Scranton indicted a Pike County woman charging her with drug distribution resulting in death.

According to United States Attorney Peter Smith, the Indictment alleges that between September 3, 2015 and September 4, 2015, Brittany Ann Banscher, age 21, of Hawley, Pennsylvania, knowingly and intentionally possessed with intent to distribute and distributed heroin, a Schedule I controlled substance, resulting in the death of another person.  Banscher is also charged in a separate count with possession with intent to distribute heroin on or about September 21, 2015.

The charges stem from a joint investigation by the Drug Enforcement Administration (DEA), the Scranton Police Department, and the Pennsylvania State Police.  Prosecution is assigned to United States Attorney Michelle Olshefski.

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

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.  In this case, the maximum penalty under the federal statute for drug distribution resulting in death is life imprisonment and a $1,000,000 fine.  The maximum penalty for possession with intent to distribute a controlled substance is 20 years’ imprisonment and a $1,000,000 fine.

Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs.  For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Hazleton man was charged by the United States Attorney’s Office in a Criminal Information filed on August 30 with conspiracy to distribute the prescription drugs Tramadol and Ambien.

According to United States Attorney Peter Smith, the Information alleges that Azim Hosein, age 45, committed the offense during November 2014 through January 2016.

The charge stems from an investigation by the Drug Enforcement Administration and Hazleton Police into the importation of controlled substances from India and their subsequent distribution in the Hazleton area.

Assistant U.S. Attorney Francis P. Sempa 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 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 Jermaine Johnson, age 42, of York, was sentenced today by U.S. District Court Judge Yvette Kane to seven years in federal prison for possessing ammunition as a felon.

According to United States Attorney Peter Smith, Judge Kane noted at sentencing that Johnson had a long history with the criminal justice system, including multiple convictions for drug trafficking and possession of a firearm. The judge noted that for this case, Johnson deserved a sentence in the middle of the sentencing guidelines.

On October 24, 2013, York City Police engaged in a traffic stop of a car Johnson was driving. After he gave the police a false name, Johnson was arrested and his car was searched. Police found in the car a magazine clip containing .40 caliber ammunition.  Weeks before this Johnson was shot and taken to the hospital. When authorities sought his cooperation in that shooting, he refused and gave the police a false name.

As a part of the U.S. Attorney’s Office’s Southside initiative, this case was adopted for federal prosecution and Johnson was indicted on September 17, 2014.  On October 5, 2015, Johnson entered a guilty plea to possession of ammunition as a felon.

The case was investigated by the York City Police Department and the U.S. Bureau of Alcohol Tobacco Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Michael A. Consiglio.

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SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton has indicted John Vercusky, age 38, a federal inmate at the United States Penitentiary Schuylkill (“USP Schuylkill”), Minersville, Pennsylvania, charging him with possession of a prohibited object.  Specifically, marijuana, at the facility on October 25, 2015.

The investigation was conducted by the Federal Bureau of Investigation and officers from USP Schuylkill.  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 5 years of imprisonment for Vercusky, 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 on August 24, a grand jury in Harrisburg indicted two men on charges of possessing and conspiring to possess and distribute methamphetamine.

According to United States Attorney Peter Smith, the indictment charges Delfin Ricardo-Hechevarria, 55, Albany, NY, and Jorge Gonzalez-Gonzalez, 59, Reading, PA, with possessing methamphetamine and with conspiring to distribute methamphetamine on July 3, 2016 in Cumberland County.  Both men were arrested when a search of their vehicle incident to a traffic stop led to the seizure of methamphetamine. Both defendants are in custody.

The investigation was conducted by the Drug Enforcement Administration in Harrisburg, the Pennsylvania State Police, and the Cumberland County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney William A. Behe.

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 on each charge is life imprisonment and a mandatory minimum 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.

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal Grand Jury in Harrisburg charged a Mexican national, Heriberto Barrueta-Diaz, age 28, with illegal re-entry into the United States by a previously deported alien.  He was previously convicted of illegal entry in Arizona and removed from the United States in 2010.

This matter was investigated by the Department of Homeland Security, Immigration and Customs Enforcement.  Prosecution has been assigned to Assistant U.S. Attorney James T. Clancy.

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 2 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 a federal Grand Jury in Harrisburg has charged Gerardo Medina with illegal re-entry into the United States by a previously deported felon.  Medina, 28, is a native and citizen of Mexico. He was previously convicted of simple assault in Adams County and of illegal entry into the United States.  He was previously removed from the United States in 2008 and 2011.

This matter was investigated by the Department of Homeland Security, Immigration and Customs Enforcement.  Prosecution has been assigned to Assistant U.S. Attorney James T. Clancy.

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

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Lebanon man was sentenced August 23, 2016 by United States District Court Chief Judge Christopher C. Conner in Harrisburg, to serve 15 years in prison for conspiracy to possess with intent to distribute cocaine hydrochloride.

According to United States Attorney Peter Smith, Glauco Kelvin Celedonio-Smith, age 20, of Lebanon, previously pleaded guilty to the charge of conspiracy to possess with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime.  Celedonio-Smith and ten co-defendants were originally indicted by a federal grand jury in Harrisburg in July 2015 and a Superseding Information was filed in June 2016. 

The charges stem from an investigation in which the Department of Homeland Security Investigations (HSI) agents in Lebanon County intercepted packages sent from Santo Domingo, Dominican Republic to the United States between June and October 2014.  The packages contained kilogram quantities of cocaine hydrochloride inside. 

Celedonio-Smith and a co-defendant were stopped by Pennsylvania State Police on October 8, 2014 in Reading after taking receipt of a package from the Dominican Republic. The following day a search warrant was executed on their vehicle and cellular telephones, a .38 caliber Smith & Wesson revolver, and a 9 mm Glock pistol were also seized.

The investigation was conducted by HSI, the Pennsylvania State Police and the Berks County District Attorney’s Office Detective Unit.  The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.

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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg has returned two indictments against five men in connection with bank robberies near York and Lebanon.      

According to U.S. Attorney Peter Smith, Derek Pelker, age 26, Wernersville, Ryan Miller, a/k/a “Otis,” age 24, Robinson Township, and Andrew Ishman, age 31, Wrightsville, were indicted for conspiracy, armed bank robbery, and possession of a firearm in furtherance of a crime of violence in relation to the robbery of the Susquehanna Bank (now the BB&T Bank), in East Prospect on April 24, 2015.  Pelker and Miller are also charged with possessing firearms as convicted felons. 

The grand jury also returned a separate indictment charging Derek Pelker, his brother, Keith Pelker, age 27, Wernersville, and Shannon Gadzouris, age 23, Shillington, with conspiracy and armed bank robbery in relation to the robbery of the M&T Bank in Lebanon on April 5, 2016.  According to the indictment, the defendants used a CO2 gun which appeared to be a firearm to commit that robbery. 

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.  The case is being prosecuted by Assistant U.S. Attorney Scott R. Ford.   

This case was also brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.

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

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

The maximum penalty for the offenses related to the East Prospect robbery is life imprisonment, a term of supervised release following imprisonment, and a fine.  The maximum penalty for the offenses related to the Lebanon robbery is 25 years 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 a Ukrainian man who posed as a high school student in Harrisburg and was indicted by a federal grand jury on May 25, 2016, for passport fraud and social security fraud plead guilty today to both charges before U.S. District Court Judge Sylvia H. Rambo in Harrisburg.

According to United States Attorney Peter Smith, Artur Samarin, age 23, using the identity of Asher Potts, applied for a United States passport, was fraudulently issued a social security card on July 17, 2014 and, later applied for and received a replacement card on November 18, 2015.

This case was investigated by the Department of State Diplomatic Security Service, the City of Harrisburg Bureau of Police and the Social Security Administration Office of Inspector General.  The case is being prosecuted by Assistant United States Attorney Daryl F. Bloom. 

No date was set for sentencing. Samarin also recently pleaded guilty to a separate charge in state court in Dauphin County.

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’ imprisonment, a term of supervised release following imprisonment, and a $500,000 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 that a Luzerne County woman pleaded guilty today before Senior U.S. District Court Judge James M. Munley in Scranton, to participating in a heroin trafficking conspiracy that operated in Luzerne County during February through October 2014.

According to United States Attorney Peter Smith, the defendant, Brandy Carey Malinowsky, age 40, admitted to conspiring with others to distribute heroin to customers in the Luzerne County area. The defendant acknowledged being involved in distributing more than 100 grams of heroin as part of the conspiracy, the equivalent of more than 3,300 retail bags.

Milinowsky was indicted by a federal grand jury in Scranton in February 2016, as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Kingston and Plymouth Police Departments, and the Luzerne County District Attorney’s Office.

The indictment charged six additional people with participating in a larger conspiracy headed-up by Desmond Mercer. Mercer, who was charged in a previous indictment, pleaded guilty and was sentenced to 14 years in prison. Mercer’s co-defendants Shaliek Stroman, of Wilkes-Barre, and Shaquan Murphy, of New Jersey, were both sentenced to more than 12 years in prison.

Judge Munley ordered a presentence investigation to be completed, and scheduled sentencing for November 29, 2016. The charge to which the defendant pleaded guilty carries a mandatory minimum sentence of five years in prison, and a potential maximum sentence of 40 years in prison.

Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.

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

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

The maximum penalty under federal law is 40 years in prison, a term of supervised release following imprisonment, and a fine. 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 Rachel Lynn Howze, age 30, Pittsburgh, pleaded guilty today before United States District Court Chief Judge Christopher C. Conner in Harrisburg, to obstructing an official federal proceeding while serving as a U.S. Probation Officer in Pittsburgh.

According to United States Attorney Peter Smith, Howze, was charged, in a Criminal Information filed in June 2016 in U.S. District Court in Pittsburgh, with attempting to obstruct, influence, and impede an investigation by intentionally disclosing to unauthorized persons the existence of a state criminal investigation involving an individual under federal supervised release.

Howze plead guilty pursuant to a plea agreement with the government which was subject to the approval of the court.  Howze is no longer employed by the U.S. Probation Office.

Sentencing is tentatively scheduled for November 28, 2016 before Chief Judge Conner.

The U.S. Attorney’s Office for the Western District of Pennsylvania, would otherwise be prosecuting the case, is recused under U.S. Department of Justice policy, because the defendant was an employee under the supervision of the U.S. District Court in Pittsburgh at the time of the alleged activity.

This investigation was conducted by the Pittsburgh Office of the Federal Bureau of Investigation.  Assistant United States Attorney Joseph J. Terz is assigned to prosecute 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 20 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 an employee of the Luzerne County Correctional Facility has been charged in a Criminal Information with violations of federal law. 

According to United States Attorney Peter Smith, John Stachokus, age 41, of Plains Township, has been charged in a Criminal Information filed today in the United States District Court in Scranton, with extortion and tampering with a witness.  It is alleged that the witness tampering charge is the result of Stachokus’ attempt to persuade a Government witness to offer false statements to federal law enforcement agents when asked about an investigation involving the extortion.

The Criminal Information further alleges that while acting in his official capacity as a corrections officer at the Luzerne County Correctional Facility, Stachokus extorted money and other items of value from work release inmates in exchange for affording them special privileges and unauthorized furloughs.  It is alleged that in addition to cash, one particular inmate also purchased cocaine for Stachokus in exchange for special favors.  Stachokus allegedly engaged in such conduct beginning in November 2013 through February 2016.

The Criminal Information was filed pursuant to a plea agreement with Stachokus.  The plea agreement is subject to approval by the court.  No date has been scheduled as yet for the entry of Stachokus’ guilty plea.

The charges are the result of an investigation conducted by the Federal Bureau of Investigation.  Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.

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

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

In this case, the maximum penalty under the federal statute for the extortion charge is 20 years’ imprisonment.  The witness tampering charge also carries a maximum term of 20 years’ imprisonment.  Each charge carries a fine of $250,000 and a term of supervised release following any period of incarceration.  Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a federal grand jury in Scranton indicted seven people on August 9, 2016, for participating in a conspiracy to sell the substance alpha-pyrrolidinopentiophenone (a-pvp), commonly referred to as “bath salts.” The indictment was unsealed today following the arrests of defendants.

According to United States Attorney Peter Smith, the indictment alleges that the defendants obtained the bath salts from suppliers in China and distributed it to customers in Luzerne County and elsewhere during March 2014 to January 2016. The grand jury also alleges that the conspirators used violence, intimidation, and possessed firearms in furtherance of the drug trafficking activities.

Those charged in the drug conspiracy are:

                        --William Wylie, age 47, of Wilkes-Barre;

                        --Jason Randazzo, age 43, of Mountain Top;

                        --Daniel Fitzgibbon a/k/a “Diz,” age 46, of Wilkes-Barre;

                        --Robert Benussi III, age 25, of Kingston;

                        --Kerry Wylie, age 24, of Wilkes-Barre;

                        --Kevin Peterson, age 32, of West Pittston;

                        --David Popish, age 37, of Pittston.

William Wylie, Kerry Wylie and Jason Randazzo are also charged with conspiracy to import a-pvp from China, and an attempt to possess with intent to distribute a-pvp on December 21, 2015.

William Wylie is further charged with possessing a firearm in connection with drug trafficking, and possessing a firearm as a convicted felon.

The charges against the defendants resulted from an investigation by Homeland Security Investigations and the Pennsylvania State Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the cases.

William Wylie faces a mandatory minimum sentence of five years in prison and a potential maximum sentence of life in prison if convicted of the firearms related to drug trafficking charge, up to 10 years in prison if convicted of the felon in possession of a firearm charge, and up to 20 years in prison on each of the conspiracy to distribute and import a-pvp counts.

Kerry Wylie and Jason Randazzo each face up to 40 years in prison if convicted of the conspiracy to import and distribute a-pvp counts. The remaining defendants face up to 20 years in prison if convicted of the conspiracy to distribute a-pvp count.

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.

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SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on July 26, 2016, a federal grand jury in Scranton indicted Carrie F. Aker and Mario M. Valentine, a Shenandoah, Pennsylvania couple, for conspiracy to commit wire fraud using counterfeit credit cards, and with laundering the proceeds of their fraudulent activities.  Aker and Valentine also are charged with aggravated identity theft, credit and debit card frauds, and with possessing credit and debit card-making equipment.  The indictment was unsealed today following the arrests of the defendants.

According to United States Attorney Peter Smith, the indictment charges Aker, age 44, and Valentine, age 33, with obtaining credit and debit card account information of other individuals from unindicted co-conspirators and from black market internet websites.  Aker and Valentine allegedly manufactured counterfeit credit and debit cards using the information, traveled to locations at which the actual cardholders resided, and used the counterfeit cards at  retail stores.  The couple also allegedly used aliases and forged names and signatures on credit and debit card receipts.  The activities took places from in or about November 2011 through September 2015.

The indictment also alleges that Aker and Valentine engaged in money laundering activities with the proceeds of their credit and debit card frauds by purchasing pre-paid gift cards and retail items at retail stores, reselling the cards and items or uploading the card balances to payment processor accounts, and then using and disbursing the funds via cash, checks and bank accounts.

The investigation was conducted by the Federal Bureau of Investigation and by the Pennsylvania State Police.  The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo.

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 most serious charges are up to 30 years of imprisonment, a term of supervised release following imprisonment, and a fine.  The aggravated identity theft charges carry a mandatory two-year term of imprisonment, to run consecutive to any other term of imprisonment.  Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.     

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WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Williamsport indicted Christopher Goins, age 40, Ashley Dixon, age 28, Troi Venable, age 36, and Perlie Johnson, age 31, yesterday, for assault with a deadly weapon.

According to United States Attorney Peter Smith, Goins, Dixon, Venable and Johnson are charged with conspiring to assault a fellow inmate while they were confined at the United States Penitentiary at Lewisburg, and subsequently arming themselves with improvised weapons and carrying out the assault in November 2014, causing serious injury to the victim.

In a separate incident, Goins is alleged to have committed a second assault on a different inmate in December 2014 that resulted in serious bodily injury to the victim.

The investigation was conducted by the Federal Bureau of Investigation, and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Geoffrey W. MacArthur has been assigned to prosecute 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 statues and the Federal Sentencing Guidelines. 

In this case, the maximum penalty for each count is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine of $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 necessarily 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 a federal Grand Jury in Harrisburg returned an indictment yesterday charging Manel Smith, age 39, with possession with intent to distribute heroin. Smith is a resident of New Jersey and was driving a car through Lebanon County when he was stopped.

This matter was investigated by the Pennsylvania State Police and the Drug Enforcement Agency.  Prosecution has been assigned to Assistant U.S. Attorney Chelsea Schinnour. 

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.

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

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Grand Jury in Scranton indicted a Luzerne County man on August 9, charging him with drug distribution resulting in death.  

According to United States Attorney Peter Smith, between July 5, 2016 and July 7, 2016, Luis Antonio Zayas, age 46, of Hazleton, possessed and distributed fentanyl, a controlled substance, resulting in the death of another. 

Zayas is also charged with possession and distribution of a controlled substance to a pregnant individual.  The distribution of the controlled substance allegedly occurred within 1,000 feet of a daycare center with an outdoor playground.

The Indictment was unsealed August 10, following Zayas’ arrest and initial appearance before United States Magistrate Judge Joseph F. Saporito.  A detention hearing is scheduled for August 18, 2016.

The charges stem from a joint investigation by the Drug Enforcement Administration (DEA), and the Pennsylvania State Police.  Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.

U.S. Attorney Smith said, “This is not just another drug case.  It is a tragic result of the public health menace presented by the plague of extremely dangerous and enhanced drugs, coupled with the consequences of untreated addiction and the increasing presence of deadly components, such as fentanyl, in the substances.  The harm to users, their loved ones and communities is devastating.  For that reason the charges, are, and will continue to be, the most serious ones available to this office.”

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.

For information on overdose death statistics for Pennsylvania, see the attached 2015 Pennsylvania State Coroners Association Report on Overdose Death Statistics. 

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

In this case, the maximum penalty under the federal statute for drug distribution resulting in death is life imprisonment.  Because the distribution is alleged to have occurred within 1,000 feet of a protected area, the maximum penalties for the charges are doubled.  As such, the maximum penalty for possession with intent to distribute a controlled substance is 40 years imprisonment and a $2,000,000 fine.  Distribution of a controlled substance to a pregnant individual carries a mandatory 12 months incarceration.

Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs.  For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg indicted Tyshawn Jones yesterday for possession with intent to distribute heroin and crack and possession of a firearm in furtherance of drug trafficking.      

According to U.S. Attorney Peter Smith, Jones, a 19 year old resident of Harrisburg, was arrested by Dauphin County Probation Officers when they found heroin, crack, and a firearm on Jones during a visit to the home in which he was residing.       

The matter was investigated by the Dauphin County Probation Office, the Harrisburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  The case is being prosecuted by Assistant U.S. Attorney Scott R. Ford.   

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 was also brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.

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

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

The maximum penalty for 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.

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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Western Union and MoneyGram agent pleaded guilty yesterday to charges he participated in an international mass marketing consumer fraud scheme.

According to United States Attorney Peter Smith, Alex Mgbolu, age 45 of Toronto, Canada, pleaded guilty today before Chief U.S. District Court Judge Christopher C. Conner in Harrisburg to conspiracy to commit mail fraud, wire fraud and money laundering. 

According to the Indictment by a Middle District of Pennsylvania grand jury in September 2012, Mgbolu conspired with Chima Nneji, William Nneji, and other unnamed individuals between July 2002 and May 2010 to commit the crimes.  Mgbolu was extradited to the United States from Canada.

Mgbolui was the owner/operator of a Western Union agency called FA CAM Associates (FA CAM) and a MoneyGram agency also known as FA CAM.  Both agencies were located in Toronto, Canada.  Between July 2002 and May 2010 international mass marketing fraudsters allegedly instructed hundreds of consumer fraud victims across the United States to send Western Union and MoneyGram money transfers to Canada where the transfers were paid out by Mgbolu at FA CAM. Mgbolu concealed the fraudsters’ identity by entering false names and identification data into the Western Union and MoneyGram computer data bases.  Analysts from the Toronto Police and U.S. Postal Inspection Service have determined that over 90% of the payee addresses and identification numbers entered at FA CAM were invalid. For his role in the scheme Mgbolu retained a portion of the money transfers before sending the balance of the proceeds on to the fraudsters.

After Western Union terminated FA CAM and MoneyGram restricted FA CAM’s ability to pay out money transfers, money transfer checks from other fraud-complicit MoneyGram Western Union agents in the greater Toronto area were deposited into FA CAM’s bank account. The deposit of fraudulently induced funds into what appears to be a legitimate business bank account and the subsequent reissuance of the proceeds via checks and wire transfers helps to launder the proceeds and conceal the identity of the fraudsters is known as “check pooling.”  

Overall, between July 2002 and May 2010, FA CAM and the 13 complicit Western Union and MoneyGram agents paid out 907 money transfers totaling $2,127,410  that were reported by the Senders as being fraud induced.

Codefendant Chima Nneji pleaded guilty to the same conspiracy charge before Judge Conner on July 21, 2016.  No date has been scheduled as yet for Mgbolu’s or Nneji’s sentencing.

Codefendant William Nneji remains a fugitive from justice.

The case is part of a long term continuing investigation by the Harrisburg Office of the United States Postal Inspection Service, assisted by the Toronto Police and is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.

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SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jared Miller, age 28, a Sayre, Pennsylvania resident, and Aaron Vanderpool, age 34, a Wysox, Pennsylvania resident, have been charged in separate Criminal Informations with firearms and controlled substance offenses associated with a May 2015 gun store burglary in Bradford County.

According to United States Attorney Peter Smith, Vanderpool stole 48 firearms from Fulmer’s Sporting Goods, a federally licensed firearms dealer in Wysox, Pennsylvania, on or about May 24, 2015.  The information also charges Vanderpool with distributing heroin on May 8, 2015.

A separate information filed against Miller charges him with transporting 47 of the stolen firearms from Pennsylvania to New York, between May 26, 2015 and June 15, 2015.  The Information also charges Miller with conspiring to distribute and possess with the intent to distribute 400-700 grams of heroin, equivalent to approximately 16,000 to 28,000 doses of heroin, during a three-year period from June 1, 2012 through June 15, 2015.

The government simultaneously filed plea agreements with both Vanderpool and Miller which are subject to approval of the court.  A date for their arraignments has not been set.

Miller and Vanderpool were initially charged with and arrested for firearms and heroin offenses in a criminal complaint filed on June 16, 2015.  Both men have remained in custody since their arrest.

The matter was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives and the Pennsylvania State Police.  The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo.

This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district-wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania.  Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend and prosecute individuals who commit violent crimes.

This case also was brought as part of a district wide initiative to combat the nationwide epidemic of 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.

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 penalties under federal law for the charges filed against Miller are 50 years of imprisonment, a term of supervised release following imprisonment, and a fine.  The heroin conspiracy charge carries a five-year mandatory minimum sentence of imprisonment.  The maximum penalties under federal law for the charges filed against Vanderpool are 30 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 Sherman Hills Realty LLC and Park Management LLC (collectively referred to as “Sherman Hills Realty”), have agreed to pay $125,000 to resolve allegations that Sherman Hills Realty violated the False Claims Act. 

The United States alleges that Sherman Hills Realty failed to provide qualifying tenants with utility reimbursement funds and instead kept the funds.  The funds were provided by the United States Department of Housing and Urban Development (HUD) to Sherman Hills Realty to be disbursed to low and no income tenants at the Sherman Hills Apartments in Wilkes-Barre, Pennsylvania.   

According to United States Attorney Peter Smith, this settlement agreement resolves allegations that Sherman Hills Realty, which has its headquarters in Brooklyn, New York, was an owner and manager of a multifamily property located at 300 Parkview Circle, Wilkes-Barre, PA (Sherman Hills Apartments) and failed to provide some of the qualifying low and no income tenants at the facility with utility reimbursement funds during the period April 1, 2011 through April 30, 2014. 

Pursuant to a Housing Assistance Payments (HAP) contract, Sherman Hills Realty was required to submit to HUD accurate utility reimbursement requests for qualifying low and no income tenants on each of the monthly vouchers submitted to HUD.  Pursuant to the HAP contract and HUD policies and regulations, Sherman Hills Realty had an obligation to provide Sherman Hills Apartment tenants with utility assistance payments or credit the funds back to HUD.  Sherman Hills Realty was not permitted to retain funds for utility assistance payments if the funds were not provided to the tenants.  The purpose of the funds is to assist very low or no income tenants with the provision of basic necessities. 

Sherman Hills Apartments was taken over by another company in April 2014.

According to Brad Geary, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General, “This settlement is the latest example of our continued effort to collaborate with the Department of Justice as a means to protect HUD subsidized residents with the greatest financial needs.  This agreement could not have occurred without the selfless efforts of prosecutors and investigators, who ensured HUD's program was not compromised at the expense of its tenants."

The case is the result of an investigation by the United States Attorney’s Office for the Middle District of Pennsylvania and the United States Department of Housing and Urban Development, Office of Inspector General.  The case was litigated by Assistant United States Attorney Timothy S. Judge. 

Tenants and former tenants of Sherman Hills Apartments seeking information concerning utility reimbursement funds that may have been wrongfully withheld by Sherman Hills Realty LLC and/or Park Management LLC should contact the Philadelphia Regional Office of the U.S. Department of Housing and Urban Development, 100 Penn Square East, Philadelphia, PA 19107 at (215) 656-0500.

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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg has indicted Christian Hogan, age 35, for distribution of heroin and unlawful possession of firearms. 

According to U.S. Attorney Peter Smith, the West Manchester Police Department allegedly observed Hogan selling heroin on September 22, 2015. Subsequent further investigation, including a search warrant resulting in the alleged seizure of handguns and evidence of additional alleged sales of heroin by Hogan in February 2016.

The matter was investigated by the West Manchester and York Police Departments, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  The case is being prosecuted by Assistant U.S. Attorney Scott R. Ford.   

This case was brought as part of two district wide initiatives to combatting the nationwide epidemic regarding the use and distribution of heroin.  Led by the United States Attorney’s Office; (1) 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; and (2) the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.

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

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

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

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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that two Michigan men were indicted by a grand jury in Harrisburg on multiple charges arising out of a nation-wide investment fraud scheme.

According to United States Attorney Peter Smith, Dennis Tubbergen, age 53 , and Christopher Ostrowski, age 53, both of Michigan, were charged with allegedly defrauding investors from California to Pennsylvania between 2010 and 2013.  The grand jury found that Tubbergen and Ostrowski used a company based in Grand Rapids, Michigan named GTBK Marketing to sell an investment program called Immediate Legacy (ILP). The United States mail and the internet and email were used to market the investment program nationwide. A material part of their representation to investors was that ILP was being used by hospitals, charities, colleges and universities and that each investor who purchased the program was guaranteed at least 14 pre-contacted customers who were waiting to buy the product.

The investigation established that these alleged material representations were false and that as a result investors lost a total of approximately $2.1 million dollars. Ostrowski is also separately charged with having made false statements and representations to both the FBI and the federal grand jury in Harrisburg when interviewed and questioned in 2013 about his involvement in selling the ILP to potential investors.

The government is also seeking forfeiture of the approximately $2.1 million obtained in connection with the scheme and property by the defendants from the proceeds.

This case was investigated by the Harrisburg Office of the Federal Bureau of Investigation. Assistant United States Attorney William A. Behe has been assigned the prosecution of this 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 on each of the wire fraud and conspiracy to commit wire and mail fraud counts is 20 years imprisonment, a term of supervised release following imprisonment, and a $250,000.00 fine. The obstruction of the grand jury charge is punishable by up to 10 years imprisonment and a $250,000.00 fine, while the charges of providing false information to law enforcement and to the federal grand jury are each punishable by up to 5 years imprisonment and a $250,000.00 fine. 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 a federal grand jury in Harrisburg has indicted a Steelton man on criminal charges of fraudulently obtaining Social Security benefits.

According to United States Attorney Peter Smith, Mohammed Rizk, age 53, Steelton, was charged with theft and Social Security fraud. The charges stem from Rizk obtaining approximately $67,000 in benefits under the Social Security Administration’s Retirement and Survivor’s Insurance (RSI) Program between 2014 and 2016 by falsely representing that the minor children of his deceased spouse were living with him when in fact they were living elsewhere. Allegedly, Rizk, as representative payee, took the funds that the children were entitled to and converted them to his own use.  The government is also seeking forfeiture of the funds obtained through the fraud.

The case was investigated by the Social Security Administration’s Office of Inspector General and the Dauphin County District Attorney’s Office Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney William A. Behe.  Rizk is also facing related charges brought against him by the District Attorney’s Office for insurance fraud.

An indictment is only an allegation. 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 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former employee of the Mohegan Sun Casino at Pocono Downs has been charged with engaging in a money laundering conspiracy.

According to United States Attorney Peter Smith, Rochelle Poszeluznyj, age 38, of Kingston, is charged in a Criminal Information filed today in United States District Court in Scranton with Conspiracy to Commit Money Laundering.  The Criminal Information charges Poszeluznyj with conspiring with Robert Pellegrini and Mark Heltzel, to defraud the Mohegan Sun Casino by engaging in a money laundering scheme involving the use of stolen names and PINs (personal identification numbers) that were tied to players’ loyalty club cards. 

It is alleged that while employed as a cocktail waitress at the casino, Poszeluznyj had access to the names and PINs of casino players as she served them beverages.  Poszeluznyj stole the names and PINs of those players and provided them to Pellegrini, who then used the stolen information to create duplicate player club cards.  Pellegrini then loaded the duplicate cards with “free play” credits and provided them to Heltzel to gamble with, primarily at poker slot machines.  The scheme began in May 2014 and continued to April 2015, netting the defendants winnings in the approximate amount of $422,147. 

The Criminal Information was filed pursuant to a plea agreement with Poszeluznyj.  The agreement is subject to approval by the court.  No date has been scheduled as yet for the entry of Poszeluznyj’s guilty plea.

Pellegrini and Heltzel were indicted by a grand jury in Scranton on April 19, 2016 and charged with conspiracy to commit money laundering, access device fraud and aggravated identity theft.  Those charges remain pending.

The charges stem from an investigation by the Internal Revenue Service Investigations and the Pennsylvania State Police.  Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.

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

A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.  The maximum sentence for Conspiracy to Commit Money Laundering is up to 20 years imprisonment and a $500,000 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 the owner/operator of a former Utz Quality Foods, Inc. supplier has pleaded guilty to charges that he defrauded Utz out of approximately $1.4 million.

Jonathan Haas, age 45, of Easton, Pennsylvania, the former owner of Haas Packaging and Design, Inc. in Bethlehem, Pennsylvania, pleaded guilty today before United States Magistrate Judge Susan E. Schwab in Harrisburg to wire fraud.

Haas and Kevin Myers, age 38, formerly of Abbottstown, PA, and the former Director of Purchasing for Utz, were charged in June of this year with the one count wire fraud Information.  The Information was filed against Myers and Haas pursuant to plea agreements they executed with the government.  Myers entered his guilty plea to the wire fraud count before Magistrate Judge Schwab on Tuesday.

Between 2007 and 2014 Haas Packaging & Design supplied Utz with shelving and packaging products.  During the guilty plea proceeding Haas admitted he and Myers defrauded Utz between 2010 and 2014 by Myers’ preparation of bogus purchase orders and Haas’ submission of false invoices against the phony purchase orders for packaging product Utz never received.  After Myers approved Haas’ false invoices for payment, Haas would kick back a portion of Utz’s payment to Myers. 

The Information alleges Haas received approximately $1,474,765 from Utz and from that amount Haas paid Myers approximately $651,000.   Haas’ plea agreement requires the court to determine the actual loss amount and the amount of restitution to be paid Utz. 

Haas also admitted he and Myers attempted to conceal some of the kickbacks Haas paid Myers as payments for fictional consulting services.  To facilitate the ruse Myers opened up a bank account under the name of “Myers Packaging Consulting,” a non-existent, paper entity.

The specific wire fraud charge relates to an alleged interstate wire transmission of a $26,000 Haas check into a Myers Packaging Consulting bank account in January 2014. 

The government is seeking forfeiture of approximately $1.4 million from the defendants as illegal proceeds of the scheme.

The case was investigated by the Harrisburg Office of the Federal Bureau of Investigation and Utz Quality Foods, Inc. cooperated with the investigation. The case is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.

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, 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 Dr. Walter Krajewski, a primary care doctor in York, Pennsylvania, has agreed to pay $300,000 over five years to settle allegations that he violated civil provisions of the federal Controlled Substances Act by pre-signing prescriptions that were later filled for 24,530 tablets of oxycodone that were medically unnecessary.

U.S. Attorney Peter Smith stated, “Working with the Drug Enforcement Administration (DEA), the U.S. Attorney’s Office will seek substantial civil penalties against providers and medical professionals who fail to manage controlled substances, such as oxycodone, safely, wisely and with the appropriate care.”

“We entrust doctors to medically care for ourselves and our family members.  However, with that trust comes the responsibility of safeguarding prescriptions and writing them only when medically necessary,” said Gary Tuggle, the Special Agent in Charge of the DEA’s Philadelphia Field Division.  “The DEA will remain vigilant in pursuing civil charges, as well as criminal charges where appropriate, against doctors that fail to comply with the requirements of the Controlled Substances Act.”

According to the investigation by the DEA, Dr. Krajewski repeatedly pre-signed blank prescriptions at his office practice from January 2014 to May 2015 and provided them to his office manager, allegedly enabling the prescriptions to be filled for 24,530 tablets of oxycodone that had no legitimate medical purpose and that were issued outside the usual course of Dr. Krajewski’s professional practice.  Upon discovery, DEA determined that Dr. Krajewski’s office manager allegedly filled those 148 prescriptions of oxycodone because Dr. Krajewski pre-signed the prescriptions without completing the necessary drug and patient information at the same time.

Krajewski is a doctor of osteopathic medicine, specializing in family medicine.  As a practitioner licensed to dispense controlled drugs, he is subject to requirements of the Controlled Substance Act as administered by the DEA.  The U.S. Attorney’s Office and DEA contend that Dr. Krajewski’s pre-signing and providing the blank prescriptions for over a year to his office manager, resulting in oxycodone issued with no legitimate medical purpose and outside the usual course of his professional practice, amounted to civil violations of the Controlled Substances Act.

The settlement of the case resolves the matter without the filing of litigation.

As part of the settlement, Dr. Krajewski has agreed to pay $300,000, with an initial payment of $60,000 within 20 days of the date of the agreement and monthly installments of $4,000 for 60 months.  The agreement includes penalty provisions in the event of any failure to comply with terms of the settlement.

Dr. Krajewski has changed his office protocol to prohibit pre-signing of prescriptions for controlled substances.

As part of the settlement, Dr. Krajewski also entered into a Memorandum of Agreement (MOA) with the DEA under which he agreed to comply with heightened compliance requirements for logging and reporting his prescriptions of controlled substances to the DEA, and DEA agreed to forgo administrative action against Dr. Krajewski subject to his compliance with the MOA’s terms and conditions.  DEA has reported Dr. Krajewski’s conduct to the Pennsylvania Board of Medicine.

This matter was investigated by the Civil Division of the United States Attorney’s Office for the Middle District of Pennsylvania and the DEA and is assigned to Assistant United States Attorney Anthony D. Scicchitano.

Amy Schneider, Dr. Krajewski’s former office manager and her husband, Joseph Schneider were prosecuted criminally by the U.S. Attorney’s Office in 2015.  Amy Schneider wrote prescriptions beginning in approximately January 2014 and continuing until May 2015 for herself and Joseph Schneider, who allegedly took the forms to pharmacies to be filled.  The oxycodone tablets were then divided between Amy and Joseph Schneider.  Some of the tablets were distributed to others.

Amy and Joseph Schneider were charged with conspiracy and distribution of oxycodone in a Criminal Information filed in December 2015.  Amy Schneider was also charged with illegally using a Drug Enforcement registration to obtain a controlled substance.  Joseph Schneider was charged with acquiring a prescription by fraud or forgery.  Both defendants plead guilty in January 2016 and were sentenced by U.S. District Court Judge Sylvia H. Rambo in June 2016.  Amy Schneider was sentenced to 30 months’ imprisonment, and Joseph Schneider was sentenced to 46 months’ imprisonment.  Former Assistant United States Attorney Christy H. Fawcett prosecuted the case.

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Dauphin County man was indicted by a federal grand jury on July 27, 2016, for distribution of cocaine base, also known as crack cocaine, possession with intent to distribute over 28 grams of cocaine base, and possession of a firearm in furtherance of a drug trafficking crime. 

According to United States Attorney Peter Smith, the grand jury alleges that Torray D. Eden, age 30, distributed cocaine base in Harrisburg, Pennsylvania on June 14, 2016.  A search of Eden’s vehicle located approximately two ounces of cocaine and a firearm with an obliterated serial number.  During the drug deal Eden allegedly possessed this firearm in furtherance of the drug transaction.

This case was investigated by the Drug Enforcement Administration and the Harrisburg Bureau of Police.  The case is being prosecuted by Assistant United States Attorney Daryl F. Bloom.  

This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.

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 Count 1 is 40 years’ imprisonment, a term of supervised release following imprisonment, and a $5,000,000 fine; Count 2 is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $1,000,000 fine; Count 3 is life 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 that a federal Grand Jury in Harrisburg has indicted Andrew Manganas, and Panthera Painting, Inc., on embezzlement, fraud, false statements, and environmental charges related to a subcontract performed as part of a $42 million rehabilitation project administered by the Pennsylvania Department of Transportation (PennDot).

The Project

According to United States Attorney Peter Smith, Manganas, age 59, is a resident of Canonsburg, Washington County, Pennsylvania, and his company, Panthera Painting, Inc., is also headquartered in Canonsburg.

In September 2009, PennDOT awarded a contract for rehabilitation work on the George Wade Bridge to J.D. Eckman, Inc. (Eckman), as the prime contractor.

The George Wade Bridge spans the Susquehanna River on Interstate 81 in Cumberland and Dauphin Counties, Pennsylvania. The Federal Highway Administration (FHWA) of the U.S. Department of Transportation conducted reviews and approvals during the project’s design and construction phases.  The contract amount was $42,480,434 with the FHWA’s federal-aid programs reimbursing 90 percent of that cost. In October 2009, Panthera was awarded a $9,875,000 subcontract by Eckman.  The subcontract covered the blasting, resurfacing, and painting of the structural steel on the George Wade Bridge. The subcontract amount ultimately rose to approximately $10 million.

The Embezzlement, False Statement and Fraud Charges

The federal oversight and funding of the contract required each contractor and subcontractor to submit Certified Payroll Reports for every worker and every pay period to certify that the appropriate federally established prevailing wage was being paid to each worker. 

Manganas and Panthera allegedly embezzled money from benefit and pension plans by engaging in a “side payroll” scheme through which workers on the George Wade Bridge Project received two checks, one for regular hours and a separate “per diem” check.  The “per diem” checks allegedly were for overtime hours worked and did not include required contributions to the workers’ union welfare benefit and individual employee’s pension plans.  The Indictment alleges that approximately $400,000 was embezzled from union benefit and workers’ pension plans by Manganas and Panthera between 2011 and 2013.

The Indictment also charges the defendants with 21 separate counts of making and using false statements in a matter within the jurisdiction of the FHWA by causing false certified payroll reports relating to workers on the George Wade Bridge project to be submitted to the agency between 2011 and 2013.  The defendants are also charged with 21 counts of wire fraud by causing the FHWA to wire payments from the Federal Highway Trust Fund to the Commonwealth of Pennsylvania which included payments for work performed by the defendants.  The alleged loss of wages of workers Panthera used on the project was approximately $208,879, as a result of the failure to pay the federally established prevailing wages

Environmental Charges

The Indictment charges that the defendants knowingly caused discharges of pollutants into the Susquehanna River during and connected with work on the George Wade Bridge project.  The Federal Clean Water Act and its regulations, and the project’s contract, prohibit the discharge of pollutants without a permit.  Panthera and Manganas were supposed to use methods to ensure that pollutants did not enter the Susquehanna River, including construction of “containment” to cover bridge areas being blasted clean and repainted, using ropes, cables, fabric, metal pans and waste collection and recycling systems on segments of the bridge being blasted and repainted to prevent pollutants from being discharged into the River. 

The Indictment alleges that between 2011 and 2013, Panthera workers, at the direction of and with the knowledge of defendant Manganas, in fact used a variety of methods and equipment to discharge pollutants, including abrasive paint blasting materials, waste paint, and metal, into the Susquehanna River, rather than collect them for recycling or disposal as hazardous waste. These techniques allegedly included, blasting paint off metal pieces outside areas in which the workers had set up containment to capture waste material (open blasting), using air hoses connected to blasting equipment to blow debris off bridge components into the River, setting up containment in which the fabric had holes, having workers poke holes in containment to let wastes discharge into the River, pushing waste off the side of the bridge, and tipping over metal pans used to collect paint waste, all without a permit to do so.

“Businesses receiving federal funds have an obligation to do honest, transparent work in return,” said FBI Special Agent in Charge William F. Sweeney Jr. “Anything less is a violation of public trust and a waste of taxpayers’ money. The FBI will continue its work to ensure that fraudsters are thoroughly investigated and brought to justice.”

“The indictment handed down today against Andrew Manganas, owner of Panthera Painting Company, Inc., on charges including wire fraud and false statements demonstrates the strong commitment of the Department of Transportation and the Office of Inspector General to ensuring the integrity of the Federal-aid Highway Program,” said Douglas Shoemaker, U.S. DOT OIG regional Special Agent-in-Charge.  “Working with our law enforcement and prosecutorial colleagues, we will continue to protect the taxpayers’ investment in our Nation’s infrastructure from fraud, waste, abuse and violations of law.”​

“Unpermitted discharges of pollution threaten our lakes, rivers and streams and can pose serious risks to public health and our communities,” said Jennifer Lynn, Assistant Special Agent in Charge of EPA's criminal enforcement program in the Middle Atlantic States.  “Today’s indictment demonstrates that EPA and its partner agencies will aggressively investigate and prosecute actions that put our waterways at risk.”

# # #

This matter was investigated by the U.S. Department of Labor, Office of Inspector General; the U.S. Department of Transportation, Office of Inspector General; the U.S. Environmental Protection Agency, Criminal Investigation Division; and the Federal Bureau of Investigation.  Prosecution is assigned to Assistant U.S. Attorney James T. Clancy and Special Assistant U.S. Attorney Martin Harrell of the EPA Region 3 Office in Philadelphia.

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 embezzlement offense carries a maximum penalty of up to 5 years in prison and a $250,000 fine; the false statement charges each carry a maximum penalty of up to 5 years in prison and a $250,000 fine; the wire fraud charges each carry a maximum penalty of up to 20 years in prison and a $250,000 fine; the Clean Water Act charges each carry a maximum penalty of up to 3 years in prison, and a fine of up to $50,000 per day of violation, 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 a New York man was sentenced yesterday in federal court in Scranton by United States District Judge James M. Munley, to serve 157 months (13 years) in prison on the charges of conspiracy, armed bank robbery, and use of a firearm in furtherance of a crime of violence. 

According to United States Attorney Peter Smith, Jemel Laquan King, a/k/a “Melo,” age 38, was found guilty of the federal crimes after a trial held in Scranton in May 2016.   A federal jury found King guilty of conspiring with others to commit the November 26, 2014 armed robbery of the NBT Bank located on Keyser Avenue in Scranton.   Approximately $111,000 was stolen during that robbery.  In addition to the prison term, Judge Munley also ordered that King be supervised by a probation officer for three years following his release from prison.

Those previously charged with conspiring with King to commit the robbery of the NBT Bank include Jule Futrell, age 43, Endicott, New York, and Dorian Whitehead, age 30, Binghamton, New York.  Both have entered guilty pleas and are await sentencing. 

King was indicted by a federal grand jury on May 12, 2015, after an investigation conducted by the Federal Bureau of Investigation – Scranton and Binghamton offices.  The case was prosecuted by Assistant United States Attorney Michelle Olshefski.

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Gettysburg man has pled guilty before United States District Court Judge John E. Jones, III in Harrisburg to a charge that he produced child pornography of children under 12 who were in his custody.

According to United States Attorney Peter Smith, Steven L. Berwager, age 73, Gettysburg, Pennsylvania pled guilty before United States District Court Judge John E. Jones, III and admitted that he produced videos of minor children engaging in sexually explicit conduct with Berwager. The minor children were in Berwager’s care and custody at the time the videos were produced.

Berwager was arrested on March 23, 2016 after a search of his home by state and federal law enforcement officers led to the recovery of thousands of images of child pornography stored on various electronic devices. Berwager agreed to forfeit all of the electronic devices seized during the search of his home that were used in producing, storing and transmitting child pornography.  Berwager has been in custody ever since his arrest and was recently charged by state authorities on Adams County with sexual assault charges involving the same minor victims.  

The case was investigated by the by the United States Department of Homeland Security, the United States Postal Inspection Service, the Pennsylvania State Police and the Adams County District Attorney’s office. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.

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."

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 a mandatory 15 years term of imprisonment up to 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under federal law, 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 a federal grand jury in Scranton has indicted Marcos Osorio Villalba for illegally re-entering the United States after having been previously deported. 

According to United States Attorney Peter Smith, the Indictment charges a 38 year old Mexican national with unlawfully returning to the United States after having been deported to Mexico in 2014.  Osorio Villalba was removed from the country after a conviction in federal court in Ohio for his involvement in a heroin conspiracy.

The investigation was conducted by the U.S. Department of Homeland Security/ Immigration and Customs Enforcement and Removal Operations.  The case is being prosecuted by Assistant United States Attorney Sean A. Camoni.

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

# # #

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Utz Quality Foods, Inc. executive has pleaded guilty to charges that he defrauded Utz out of approximately $1.4 million.

Kevin Myers, age 38, a former resident of Abbottstown, Pennsylvania, and the former Director of Purchasing for Utz, pleaded guilty today before United States Magistrate Judge Susan E. Schwab in Harrisburg to a one count Information charging him with Wire Fraud.

Myers and Jonathan Haas, age 45 of Easton, Pennsylvania, the former owner of Haas Packaging and Design, Inc. in Bethlehem, Pennsylvania, were charged in June of this year with  wire fraud.  The Information was filed against Myers and Haas pursuant to plea agreements with the government.

According to United States Attorney Peter Smith, Haas Packaging & Design was a vendor that supplied Utz with shelving and packaging products between January 2007 and August 2014.  The defendants allegedly defrauded Utz by Haas’ submission of approximately 83 false invoices and approximately 43 bogus purchase orders prepared by Myers for products Utz never actually received.  After Myers approved Haas’ false invoices for payment, Haas allegedly would kickback a portion of the proceeds to Myers. Haas allegedly received approximately $1,474,765 from Utz as a result of the false invoices and kicked back approximately $651,000 of that amount to Myers. 

The defendants also allegedly attempted to conceal kickbacks to Myers as payments for consulting services.  Some of the kickbacks were in the form of checks payable to “Myers Packaging Consulting,” a fictional business entity created by Myers.

The specific wire fraud charge relates to an alleged interstate wire transmission of a $26,000 check into a Myers Packaging Consulting bank account in January 2014.  The government is also seeking forfeiture of approximately $1.4 million as proceeds of the scheme.

The case was investigated by the Harrisburg Office of the Federal Bureau of Investigation and Utz Quality Foods, Inc. cooperated with the investigation. The case is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.

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, 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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SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton returned an indictment on July 19, charging a 44-year-old Basking Ridge, New Jersey man with production of child pornography, receiving child pornography, and enticement of a minor to engage in illegal sexual activity, all through the use of a computer and cellular telephone.  

According to United States Attorney Peter Smith, the Indictment, unsealed July 21, alleges that Hubert Young persuaded and coerced a 13-year-old girl to engage in sexually explicit conduct for the purpose of producing a visual image of such conduct, received images of child pornography from the minor, and enticed, persuaded and coerced the minor to engage in illegal sexual activity between January 2015 and June 2016.  The victim is a resident of Luzerne County.

The charges stem from an investigation by the Federal Bureau of Investigation, Luzerne County Detectives, and the Pittston Police Department.

If convicted of the charges, Young faces a mandatory minimum sentence of 15 years in prison and a potential maximum sentence of 30 years in prison for the child pornography production charge, a mandatory minimum sentence of 10 years in prison and a potential maximum sentence of life in prison for the enticement of a minor charge, and a mandatory minimum five years in prison and a potential maximum sentence of 20 years in prison for the receiving child pornography charge.

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."

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

# # #

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that charges relating to the improper disposal of mailed items were filed against David T. Clocker on July 20.  Clocker, age 34, of Wilkes-Barre, Pennsylvania, was charged with one count of misdemeanor destruction of mail in a Criminal Information filed today in U.S. District Court in Scranton.

According to U.S. Attorney Peter Smith, Clocker is charged with delay and destruction of mail between January and March 2016.  The charges stem from an investigation by the Office of Inspector General, United States Postal Service. 

Along with the Information, a plea agreement was filed in which Clocker agrees to plead guilty to the delay and destruction of mail charge.  The plea agreement must be approved by the court.  Clocker faces a maximum of one year in prison and a $100,000 fine, Smith said.

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 one year 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.

The case was investigation by OIG-USPS.  The case is being prosecuted by Assistant United States Attorney Todd K. Hinkley.

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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that as a part of the ongoing investigation into pay-to-play activities at the Pennsylvania Treasury, a grand jury in Harrisburg has indicted a Valley Forge business owner for making hundreds of thousands of dollars in secret campaign contributions to the Pennsylvania Treasurer in a bid to influence the awarding of hundreds of millions of dollars in Pennsylvania state investments.

According to First Assistant United States Attorney Dennis Pfannenschmidt, Richard W. Ireland, age 79, of Coatesville, was indicted for secretly making over a half-million dollars in campaign payments to former Treasurer of Pennsylvania Robert M. McCord as part of a seven-year long bribery scheme designed to influence investment decisions at Treasury and the State Employees Retirement System (SERS).  Ireland also promised to put McCord on “his payroll” after he left office in exchange for McCord’s influence.  The secret campaign contributions were made during McCord’s two campaigns for Pennsylvania Treasurer and in his unsuccessful 2014 bid for Governor of Pennsylvania. 

The investigation revealed that Ireland used straw campaign contributors to support McCord’s campaigns. At least $375,000 in campaign contributions were funneled through charities to conceal from the public that Richard Ireland was the true source of McCord’s campaign contributions. Hundreds of thousands of dollars in other campaign contributions were funneled through employees, who as straw campaign donors, hid Ireland as the true source of the campaign contributions.  Between 2009 and 2014, over $500,000 in secret campaign contributions were given to McCord.

These secret campaign contributions were given in exchange for McCord’s official decisions to continue to invest in businesses affiliated with Ireland.  These businesses had contracts with the Pennsylvania Treasury to manage hundreds of millions of dollars in Pennsylvania state assets.  Because of fee sharing agreements, these businesses paid Ireland as much as 50% of all the fees they received from Pennsylvania Treasury.  Over the years of this scheme, Ireland and these related businesses earned over $10,000,000 in fees.

First Assistant U. S. Attorney Pfannenschmidt was designated United States Attorney for this case because United States Attorney Peter J. Smith recused himself.  Mr. Smith previously worked for former Treasurer Robert M. McCord for a short period of time at the Pennsylvania Treasury Department.

This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, and the Pennsylvania State Police.  The case is assigned to Assistant United States Attorneys Michael A. Consiglio and William S. Houser.

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, a term of supervised release following imprisonment, and a fine for each of the bribery charges brought against Richard Ireland.  The false statements charge has a maximum 5 years of imprisonment as well as a fine and a term of supervised release. 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 a Newark, New Jersey man was sentenced to 151  months in prison today by Senior U.S. District Court Judge James M. Munley in Scranton, for distributing heroin in Luzerne County during October 2014.

According to United States Attorney Peter Smith, the defendant, Shaquan Murphy, age 29, previously pleaded guilty on October 11, 2014 to distributing heroin to Luzerne County-based drug traffickers. Murphy was responsible for distributing between 100 and 400 grams of heroin, equivalent to between 3,300 and 13,000 retail bags of heroin.

Murphy was indicted by a federal grand jury in Scranton in October 2014 as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Kingston Police, Plymouth Police and the Luzerne County District Attorney’s Office.

Judge Munley also ordered Murphy to forfeit his interest in more than $7000 in cash and a vehicle seized during the investigation and placed him on three years of supervised release following his prison sentence.

Murphy was one of six people charged in connection with the drug trafficking operation. Desmond Mercer, the leader of the drug operation, pleaded guilty to conspiracy to distribute heroin and was sentenced to 14 years in prison. Co-defendant Shaliek Stroman also pleaded guilty to conspiracy and was sentenced to 151 months in prison. Antuan Jamison, who helped Murphy deliver the drugs on October 11, pleaded guilty to conspiracy and received a five-year prison sentence.

Assistant U.S. Attorney Francis P. Sempa prosecuted the case.

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

# # #

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg has indicted the former Treasurer of Pennsylvania for concealing from federal investigators the receipt of hundreds of thousands of dollars in consulting fees.

According to United States Attorney Peter Smith, Barbara H. Hafer, age 72, of Indiana, Pennsylvania, was charged yesterday with two counts of making false statements to federal agents. In May 2016, federal agents interviewed Hafer as a part of an ongoing investigation.  During the interview, Hafer allegedly concealed her financial relationship with a business person, referred to in the indictment as “Person #1”, claiming that this person did not help with her consulting business.  When shown a signed contract between Hafer & Associates, LLC, and a company owned by the business person, Hafer denied receiving any payment on the contract.

According to the Indictment, Person #1 had a financial relationship with multiple businesses and had relationships, including fee sharing arrangements, with entities that provided asset management services to the Pennsylvania Treasury while Hafer served as Treasurer.

The Hafer interview took place as part of an ongoing long-term FBI-IRS investigation of alleged pay-to-play activities involving the Pennsylvania State government. The investigation revealed that in February 2005, within weeks of leaving the Office of Treasurer, a firm associated with Person #1 began making payments to Hafer’s consulting firm. For a year, Hafer & Associates received $41,667 a month, totaling the $500,000 committed in the contract.  Further, the investigation found that payments began before the contract was signed by the parties.  

Although Hafer allegedly claimed that this business person did not help her consulting business, the investigation revealed that the money allegedly accounted for approximately 73% of the funds Hafer & Associates earned in 2005.  According to the Indictment, Person #1 allegedly helped Hafer’s business by causing the $500,000 agreement to be entered into between Hafer & Associates and a company associated with Person #1 which did not require Hafer & Associates to achieve any particular result; before the Agreement was signed by all parties, Person #1 caused a company associated with Person #1 to pay the first of 12 monthly installments of $41,667 due pursuant to the Agreement; Person #1 caused the payment of approximately $500,000 to be made under the Agreement during the first year Hafer & Associates was in operation; and Person #1 caused an additional $175,000 to be paid to Hafer’s business during calendar years 2006 and 2007.

Hafer served two terms as Pennsylvania’s elected State Treasurer from 1997 to 2005 and two terms as State Auditor General from 1989 to 1997.

This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service.  The case is assigned to Assistant United States Attorneys Michael A. Consiglio and William S. Houser.

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

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

The maximum penalty under federal law is 5 years of imprisonment on each count. 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 Louis Elmy, age 51, of Wilkes-Barre, pleaded guilty before United States District Court Judge Edwin M. Kosik today in Scranton to extortion and a firearms violation. 

According to United States Attorney Peter Smith, Elmy was charged in a Criminal Information filed in June 2016 in the U.S. District Court in Scranton, with extortion and possession of a firearm in furtherance of drug trafficking, specifically, the possession of and intent to distribute crack cocaine. The Information was filed pursuant to a plea agreement between the United States and Elmy.

While acting in his official capacity as the work release counselor at the Luzerne County Correctional Facility, Elmy extorted money and other items of value from inmates on work release in exchange for giving them special privileges and unauthorized furloughs.

In order to have documentation for the furloughs that would appeared legitimate, Elmy created court orders by cutting and pasting a Luzerne County Judge’s signature from an older order onto the fraudulent order, and then photocopied the document for the file.  Elmy engaged in the conduct between November 2013 and February 2016.

Elmy was arrested in February 2016 on a criminal complaint relating to the firearms charge.

Elmy was employed by Luzerne County for approximately 20 years, including work as a corrections officer at the correctional facility prior to being a work release counselor.  Elmy also served as a member and president of the Wilkes-Barre Area School Board prior to the time period when the alleged criminal conduct occurred.

The charges are the result of an ongoing investigation by the Scranton Office of the Federal Bureau of Investigation.  Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.

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

In this case, the maximum penalty under the federal statute for the extortion charge is 20 years’ imprisonment.  The firearms charge carries a maximum term of life, with a mandatory minimum sentence of five years’ imprisonment.  Each charge also carries a fine of $250,000 and a term of supervised release following any period of incarceration.  Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

# # #

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Western Union and MoneyGram agent in Canada has pleaded guilty to charges that he conspired to defraud hundreds of American residents out of more than $900,000 via mass marketing consumer fraud schemes.

According to United States Attorney Peter Smith, Chima Nneji, age 55, of Toronto, Canada, entered his guilty plea today  before U.S. District Court Chief Judge Christopher C. Conner in Harrisburg.  Nneji pleaded guilty to conspiracy to commit mail fraud, wire fraud and money laundering. 

According to the Indictment by a Middle District of Pennsylvania grand jury in September 2012, Chima Nneji conspired with his codefendant brother, William Nneji, codefendant Alex Mgbolu, and other unnamed individuals between July of 2002 and May of 2010 to commit the crimes.  Chima Nneji was extradited to the United States from Canada and was arraigned on his charges in Harrisburg in July 2015.

According to the Indictment, Chima Nneji was the owner/operator of a Western Union agency called Advanced Computer and a MoneyGram agency known as Hallmark Services, in Toronto, Canada.  Between November 2004 and April of 2007, international mass marketing fraudsters instructed hundreds of consumer fraud victims across the United States to send Western Union and MoneyGram money transfers to Advanced Computer Service and Hallmark Services. The transfers were then paid out by Chima Nneji, and his brother.  Nneji and his brother cashed out the money transfers in a manner that maintained the anonymity of the fraudsters, by entering false names and identification data into the Western Union and MoneyGram computer data bases.  Analysts from the Toronto Police Service and U.S. Postal Inspection Service determined that over 90% of the payee addresses and identification numbers entered at Advanced Computer Service and Hallmark Services were invalid.  For his role in the scheme, Chima Nneji retained a portion of the money transfers before sending the balance of the funds on to the fraudsters.

Law enforcement personnel sent questionnaires to hundreds of MoneyGram customers in the United States whose $1,000 plus money transfers were paid out at Hallmark Services.  Not a single sender reported that their transfer was sent for a legitimate purpose.  198 customers reported that their money transfers, which totaled $579,436, were fraud-induced.  The known total dollar loss associated with all consumer fraud induced money transfers paid out at Advanced Computer Service and Hallmark Services is $915,978.

Codefendant William Nneji is a fugitive from justice.  Codefendant Alex Mgbolu is scheduled for trial before Judge Conner on August 15, 2016.  No date has been scheduled as yet by Judge Conner for Nneji’s sentencing.

The case is part of an ongoing investigation by the Harrisburg Office of the U.S. Postal Inspection Service and is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.

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 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 a federal grand jury in Harrisburg indicted Jose Ricardo Pena yesterday for illegally re-entering the United States after having been previously deported. 

According to U.S. Attorney Peter Smith, Pena, a 50 year old Dominican national was arrested by officers of U.S. Immigration and Customs Enforcement on May 4, 2016 as a result of a May 2016 conviction for felony drug trafficking in Dauphin County, Pennsylvania. Pena had previously been deported after an Immigration Judge ordered his removal following a conviction for drug offenses in Boston, MA.        

The matter was investigated by the U.S. Department of Homeland Security/ Immigration and Customs Enforcement and Removal Operations and the case is being prosecuted by Assistant U.S. Attorney Meredith A. Taylor.

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

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

The maximum penalty for this offense under federal law is 10 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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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today the indictment of a Pike County physician, Fuhai Li, age 51, on charges of unlawfully distributing controlled substances without a legitimate medical purpose, money laundering, and tax evasion.  Li was taken into custody today and will appear later today before United States Magistrate Judge Joseph F. Saporito, Jr. in Wilkes-Barre for his initial appearance.

According to U.S. Attorney Peter Smith, the 24 count indictment by a Federal Grand Jury in Scranton on July 19, unsealed today, alleges that, beginning in 2011 and continuing into 2015, Li unlawfully provided prescriptions for excessive quantities of oxycodone and other narcotics to individuals who he knew were not seeking the drugs for a legitimate medical purpose.  One charge specifically alleges that Li unlawfully distributed a controlled substance and caused the death of one of his patients. 

Li is also charged with 15 counts of alleged unlawful distribution of controlled substance to different persons repeatedly over extended periods between 2011 and 2015.  He is also charged with unlawfully distributing and dispensing a controlled substance to a pregnant individual and with opening and maintaining premises at two locations in Milford, Pennsylvania, for the purpose of distributing controlled substances outside the usual course of professional practice and without legitimate medical purpose.

Li allegedly sought and received payments in cash from recipients of the unlawfully distributed controlled substance.  Many of the recipients were from outside of Pennsylvania.  Some of the recipients, in turn, distributed the unlawfully obtained controlled substance to others in exchange for money.

Li’s activities were allegedly not in the usual course of medical practice in one or multiple ways, as stated in the indictment, including:

• inadequate verification of the patient’s medical complaint;

• cursory or no medical examinations by LI;

• inadequate patient medical history and no follow-up verification;

• incomplete or inadequate mental or physical examinations;

• treating patients with highly addictive controlled substances while failing to consider other treatment options;

• lack of, or inadequate, diagnostic testing;

• increasing the patients’ dosages over time unnecessarily; and

• prescribing inappropriate combinations of drugs to patients.

Li is charged with three counts of tax evasion for the years 2011 through 2013.  The indictment alleges that during the execution of federal search warrants by Drug Enforcement Administration (DEA) agents at his office and residences in January 2015, more than $1,000,000 in cash was seized.  The indictment alleges that for the years 2011 through 2013, Li evaded federal taxes in an amount in excess of $300,000. 

Li is also charged with money laundering in connection with a $385,572 wire transfer mortgage payment on an East Stroudsburg residence and a $158,699 certified check for the purchase of a property in Milford, both allegedly involving properly derived from Li’s unlawful distribution of controlled substances.

According to the Indictment, Li is subject to forfeiture to the United States government, of any and all proceeds derived from unlawful activity as a result of the offenses alleged in the indictment, including U.S. currency and properties located in both Pike and Monroe counties.

Currently, Li continues to maintain a Pennsylvania medical license.  He surrendered his DEA registration at the time the search warrants were executed.

“The allegations against Li are serious.  He allegedly distributed a controlled substance that resulted in the death of one of his patients, which is troubling as physicians have an ethical obligation to uphold standards of medical practice,” said Gary Tuggle, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division.  “In 2015, 3,383 people died across Pennsylvania from drug overdoses; 53% of those overdose deaths were the result of opioids such as oxycodone.  The DEA will remain vigilant in pursuing investigations against physicians that violate their positions of trust in our communities.” 

Akeia Conner, Internal Revenue Service, Special Agent in Charge, said “Today’s indictment was achieved through the tireless efforts of all the agencies involved.  When a physician knowingly abandons his oath and distributes controlled substances for financial gain instead of legitimate medical purpose, the Internal Revenue Service, Criminal Investigation will provide the financial expertise in tracking and accounting for the proceeds of this unlawful activity.

The charges stem from a coordinated investigation initiated by Drug Diversion Agents located in Scranton, DEA, Scranton, and the Internal Revenue Service – Criminal Division, Scranton.  Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.

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 guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

In this case, the maximum penalty under the federal statute for the unlawful distribution of controlled substances is life imprisonment. The money laundering charges carry a maximum term of 20 years’ imprisonment, per count. The maximum penalty for tax evasion is 5 years’ imprisonment, per count.  Each charge also carries a fine and a term of supervised release following any period of incarceration.  Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury returned an indictment on June 19, charging Damari Mykel Roulhac, of Pike County, with assaulting a National Park Service Ranger while fleeing apprehension.

According to United States Attorney Peter Smith, Damari Mykel Roulhac, age 25, was located in the Delaware Water Gap National Recreation Area when he struck a Ranger with his automobile while fleeing after being ordered to stop.

Roulhac previously was charged on July 5, 2016 with a Criminal Complaint alleging the same violations.  Roulhac currently is serving a state sentence of imprisonment in Pike County for driving under the influence charges.

The investigation was conducted by the National Park Service Rangers.  The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo. 

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

The maximum penalty under federal law for the most severe charge is a, eight-year 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.                  

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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Sherry Garner, age 54, Red Lion, PA, the former CEO-Manager of the HD York Federal Credit Union in York, Pennsylvania was sentenced by United States District Court Judge John E. Jones, III in Harrisburg to 24 months in federal  prison for evading federal income taxes on money she embezzled from the Credit Union.

According to United States Attorney Peter Smith, Garner previously pled guilty on February 19, 2016, to a Criminal Information charging her with bank larceny and tax evasion. Garner embezzled $252,106 from the HD York Credit Union between 2010 and 2013 and failed to report $70,983 in stolen income on her federal income tax return for 2011, thereby evading $19,069 in federal income taxes.

In a plea agreement filed with the Information, Garner also admitted the total tax loss to the IRS on her unreported $252,106 income ($58,034 in 2010, $70,983 in 2011, $64,308 in 2012, and $58,780 in 2013) was $62,704.  Garner agreed to make restitution to both the York Federal Credit Union and the IRS as ordered by the Court.

Judge Jones ordered Garner to pay $252,106 in restitution to CUMIS Insurance Society, Inc. and $62,704 to the IRS.  Garner is to surrender to the Bureau of Prisons on September 19, 2016.

The case was investigated by the Harrisburg Offices of the Internal Revenue Service and the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Kim Douglas Daniel.                

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SCRANTON-The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 37-year-old Mexican national who resided in Chicago at the time of his arrest was sentenced on Tuesday to serve four years in prison by U.S. District Court Judge Robert D. Mariani in Scranton for his role in a drug conspiracy that was responsible for distributing large quantities of heroin during a four-year time period in Monroe, Carbon, Montgomery, and Berks Counties in Pennsylvania.

According to United States Attorney Peter Smith, the defendant, Gilberto Bautista-Ocampo, previously admitted to acting as a courier to transport heroin from Chicago to Pennsylvania during February 2014.

Bautista-Ocampo was indicted by a federal grand jury in March 2014, as a result of an investigation by the Drug Enforcement Administration (DEA), Homeland Security Investigations, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, Berks County Detectives and Montgomery County Detectives.

Judge Mariani also noted that the defendant faces possible deportation as a result of his criminal conduct.

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.

Assistant U.S. Attorney Francis P. Sempa prosecuted the case.

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Martin Allen Mentzer, age 44, Franklin County, was sentenced to 20 years (240 months) in federal prison by United States District Court Judge Sylvia H. Rambo in Harrisburg for production of child pornography.

According to United States Attorney Peter Smith, a grand jury indicted Mentzer in August 2015 for producing, distributing and possessing child pornography.  The production occurred in his home by using a 13 year old boy to engage in sexually explicit conduct for the purpose of producing the visual depictions of the activity.  The conduct took place during a period beginning in October 2014. 

Additionally, Judge Rambo ordered Mentzer to pay $1,000 restitution and be placed on 15 years supervised release following his imprisonment.

This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Daryl F. Bloom.  

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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