Middle District of Pennsylvania

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Gabriel Palmer, age 22, York, Pennsylvania, was sentenced to 120 months in prison by United States District Court Judge John E. Jones, III, in Harrisburg, for coercion and enticement of a minor to engage in sexual activity.

According to United States Attorney Peter Smith, Palmer sexually assaulted a teenage boy and received and distributed child pornography to coerce the minor to engage in sexual activity between 2013 and 2015. 

Palmer was indicted by a federal grand jury in Harrisburg in May 2015, as a result of an investigation by the United States Postal Inspection Service, the Silver Spring Township Police Department, Homeland Security Investigations and the Cumberland County Forensics Team.  The case was prosecuted by Assistant United States Attorney Daryl Bloom. 

           

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Harvey Blake, age 57, of Philadelphia, Pennsylvania, was sentenced today to 33 months in prison by United States District Court Judge John E. Jones, III, in Harrisburg, for passing $17,400 in counterfeit $100 bills in four central Pennsylvania counties between October 2014 and March 2015.

Judge Jones also ordered that Blake make restitution to the victims as follows: Lowe’s - $7,600; Home Depot - $9,000; Staples - $300; Wal-Mart - $300; and Giant - $300.

According to United States Attorney Peter Smith, Blake was charged in a one count indictment in July 2015 with passing $17,400 in counterfeit $100 bills in Dauphin, Franklin, York and Cumberland Counties. The bills were used to purchase merchandise at Home Depot, Lowes and Walmart stores in the four counties. Blake pled guilty to the indictment in October 2015.

The case was investigated by the Harrisburg office of the United States Secret Service, and the police departments of Lower Paxton Township, Swatara Township, and Hampden Township, as well as the loss prevention personnel for the affected stores.  Assistant United States Attorney William A. Behe prosecuted the case.

         

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dariusz J. Prugar, age 32, of Syracuse, New York, was convicted on Friday, after a week-long trial before a federal jury in Harrisburg, Pennsylvania, of computer fraud and wire fraud.  Prugar was continued on bail and no date is set for sentencing. Senior U.S. District Court Judge Sylvia H. Rambo presided over the trial.

According to United States Attorney Peter Smith, Prugar was the network administrator for Pa Online, an internet service provider formerly located in Enola, Pennsylvania.  Prugar was fired by Pa Online in June 2010. Days later, Prugar secretly hacked into the business’s computer network which caused files and directories to be erased and ultimately caused the network to crash. For approximately a week, Pa Online was unable to provide sustained service to over 5,000 residential customers and over 500 business customers. He also installed numerous “backdoor” entry points into the network so that he could access the network again.

Over a dozen former employees, outside consultants, and former clients of Pa Online testified to the impact the outage had.  Former employees and outside consultants hired by Pa Online testified that the crash caused them to work for days attempting to return service.  Former customers described their inability to access tools essential to their businesses, which resulted in the customers terminating their relationship with Pa Online. The business owner testified he had the entire network rebuilt to prevent Prugar from sabotaging the business again.

The computer fraud charge related to Prugar’s unlawful intrusion to the computer network, which caused thousands of dollars in damage. The wire fraud charge related to Prugar’s attempt to cause financial loss to his former employer through the use of interstate wires.

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Michael A. Consiglio and Carl D. Marchioli.

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 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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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Hung Danh, age 55, Harrisburg, Pennsylvania, was sentenced to six months in prison by U.S. District Court Judge John E. Jones, III, in Harrisburg for a conspiracy to evade $337,000 in employment taxes in connection with his operation of an employee leasing business known as HD Staffing. 

In addition, Danh was ordered to pay restitution to the IRS in the amount of $337,302 and serve three years supervised release. Danh was ordered to surrender to the Bureau of Prisons on March 28, 2016 to commence service of his sentence.

According to U.S. Attorney Peter Smith, Danh helped operate an employee leasing business between 2009 and 2010, known as HD Staffing.  HD Staffing provided laborers to various businesses throughout the Harrisburg area and failed to withhold payroll taxes from the laborers’ wages.

Employers are required to withhold income taxes from employee wages based on the number of allowances on the employees’ W-4 Form.  Employers are also required to withhold FICA taxes from their employees’ wages at the FICA tax rate and remit those payments, along with the employee’s matching FICA tax, when they file their Employer’s Quarterly Federal Income Tax Return-Form 941. 

Danh admitted he conspired with two other previously convicted individuals to evade these employment taxes for HD Staffing.  Danh was indicted in July 2014 along with two other individuals and remained a fugitive until he was detained by U.S. Customs authorities entering the country on July 12, 2015 at JFK airport.

On March 23, 2015, Vanny Son, age 34, of Harrisburg, was sentenced to 37 months’ imprisonment and ordered to pay $682,897 in restitution to the IRS for his role in the conspiracy.  On March 24, 2015, Son Thach, age 56, of Harrisburg, was sentenced to one month imprisonment and ordered to pay $682,897 in restitution to the IRS for his role in the conspiracy.

The case was investigated by the Criminal Investigation Division of the IRS and was prosecuted by Assistant United States Attorney Bruce Brandler, Chief of the Criminal Division.

 

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Stephen Chang, age 27, from Los Angeles, California was arrested at the Harrisburg International Airport on Saturday, March 5, 2016 and charged with three counts of travel with intent to engage in criminal sexual conduct.

According to United States Attorney Peter Smith, Chang allegedly began communicating with a minor female when she was only 13 years old.  The communications began in August 2014 and continued until the day of his arrest.  During these conversations, Chang enticed the juvenile to produce and send sexual exploitative images.  Chang also traveled from Los Angeles, California to Elizabethtown, Pennsylvania on December 12, 2014, October 1, 2015 and March 4, 2016, to engage in sexual conduct with the minor.  On January 29, 2016, police were notified by the National Center for Missing and Exploited Children in a CyberTipline report about Facebook communications between the minor residing in Elizabethtown, Pennsylvania and an adult male in California, later identified as Stephen Chang. 

Chang appeared before U.S. Magistrate Judge Susan E. Schwab today for his initial appearance and preliminary hearing.  Judge Schwab found probable cause to conclude that Chang traveled to Pennsylvania to engage in sexual conduct with a minor.  Chang was ordered temporarily detained pending a detention hearing which is scheduled for March 10, 2016.

This case was investigated by the Federal Bureau of Investigation, the Lancaster County District Attorney’s Office, the Elizabethtown Police Department, the Northwest Regional Police Department, the Dauphin County District Attorney’s Office and the Harrisburg International Airport Police and demonstrates an excellent collaborative investigative effort to remove dangerous sexual predators from the street and protect the communities’ children.  The federal charges are being prosecuted by Assistant United States Attorney Daryl Bloom. 

If you have any information related to this case or believe you or someone you know may be a victim, you are encouraged to contact the Federal Bureau of Investigation at 717-232-8686.

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."

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 each offense is 30 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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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Joseph Stefanski, age 35, Wilkes-Barre, was indicted by a federal grand jury on March 1, 2016 in Scranton for theft of mail. The indictment was unsealed today following his arrest.

According to United States Attorney Peter Smith, the indictment charges Stefanski with theft of mail between December 2014 and February 2015.  The alleged thefts were discovered after postal customers in the areas of Dallas, Shavertown, Plains, Trucksville and Luzerne Township, Luzerne County, complained about mail that was not received and/or mail that was received with contents missing.  Some of the missing contents included cash, gift cards, and lottery tickets. 

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

The case is being investigated by the United States Postal Service, Office of Postal Inspection Services, and is being prosecuted by Assistant United States Attorney Robert J. O’Hara.

Anyone who believes they may be a victim or have further information should contact Postal Inspector David Heinke, United States Postal Service, at 877-876-2455

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

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

The maximum penalty under federal law is 5 years of imprisonment, a term of supervised release following imprisonment, and a $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 Tennessee man was indicted and arrested for fraudulently obtaining $7,319 in Veterans’ unemployment compensation benefits from the Pennsylvania Department of Labor & Industry.

According to U.S. Attorney Peter Smith, Earl Lafayete Hall, III, age 35 of Arlington, Tennessee, is charged with 12 Counts of Mail Fraud and 10 Counts of Money Laundering. According to the Indictment filed on March 2, 2016, Hall applied for Veteran’s unemployment compensation benefits under the false name and identity of another individual.  The bogus application was submitted to the Pennsylvania Department of Labor & Industry in Harrisburg. As a result, the Department mailed Hall unemployment compensation benefit checks totaling $7,319 between July and November of 2014.           

The Indictment also alleges the benefit checks were deposited into a bank account Hall controlled in Illinois.  Thereafter, $4,900 in cash was removed from the account. The cash withdrawals form the basis of the Money Laundering counts in the Indictment.

The Indictment also charges Hall with one count of Aggravated Identity Theft.

The indictment was unsealed yesterday following Hall’s arrest by federal agents in Arlington. Hall appeared before a U.S. Magistrate Judge in Memphis, Tennessee for a bail hearing and was released on a $5,000 unsecured bail.

Hall received the benefits under the Unemployment Compensation for Ex-Service Members Program, which is commonly known as “The UCX Program.” The UCX Program is a federally funded U.S. Department of Labor program administered by the States.  Under this federal-state partnership, the States pay out unemployment insurance benefits to the veterans and are subsequently reimbursed by the various branches of the military.  Benefits are based upon the military wages and pay grade of the serviceman at the time of his or her separation from military service. There is no payroll deduction for UCX unemployment insurance protection. 

The investigation is being conducted by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering & Fraud Investigations, U.S. Defense Criminal Investigative Service, U.S. Postal Inspection Service with assistance from Pennsylvania Department of Labor and Industry, Internal Audits Division, Pennsylvania Department of Labor and Industry, Office of Unemployment Compensation Benefits and Policy, and the Pennsylvania Department of the Treasury, Office of Unemployment Compensation Disbursements. The case is being prosecuted by Assistant U.S. 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 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 Jimmy Cantelmo, age 27, Scranton, was sentenced today to 10 years in prison by Senior U.S. District Court Judge James M. Munley.

According to United States Attorney Peter Smith, Cantelmo previously pleaded guilty to conspiracy to commit sex trafficking of a minor. Cantelmo admitted to conspiring with others to commit the crime during February through August 2014.

The sex trafficking activity involved placing photographs of the minor along with ads in the adult “escort” section of a website; renting motel rooms in Lackawanna and Luzerne Counties where the prostitution activities occurred; and serving as security or “bodyguards” at the motels where the commercial sex acts took place.

Cantelmo was indicted by a federal grand jury in April 2015, as a result of an investigation by Homeland Security Investigations, the Pennsylvania State Police, and the Lackawanna County District Attorneys Office. Four persons have been charged in connection with the investigation. Sean Cantelmo, Jimmy Cantelmo’s brother, previously pleaded guilty and was sentenced to 151 months in prison. Justin Strait pleaded guilty and is awaiting sentencing.  A fourth defendant is awaiting trial.

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

Judge Munley also ordered that Cantelmo serve five years on supervised release following his prison sentence. Cantelmo will also have to comply with the registration requirements of the Sex Offender Registration and Notification Act when released from prison.

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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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Maria Colvard, age 50, of Chambersburg, was sentenced today to 36 months in prison by United States District Court Chief Judge Christopher C. Conner in Harrisburg, for extortion in connection with an attempt to shut down a rival tax preparation business.

Colvard was convicted in June 2015 after a four-day jury trial on two counts of extortion and one count of aiding the impersonation of an employee of the United States.        

According to U.S. Attorney Peter Smith, between February and May 2013, Colvard convinced an employee at Tax Max LLC, a tax preparation service owned by Colvard in Chambersburg and Hanover, Pennsylvania, to claim to be a criminal investigator with the Internal Revenue Service to shut down the rival business, known as Christina’s Tax Service, also located in Chambersburg.  The employee, Merarys Paulino, then claimed to be an IRS agent and demanded money from Christina’s Tax Service as well as its client list. Paulino previously entered a guilty plea to impersonating an IRS agent.

Colvard also faces deportation as a non-citizen.

This case was investigated by the United States Treasury Inspector General for Tax Administration (TIGTA) and was prosecuted by Assistant United States Attorney Daryl F. Bloom.           

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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 returned a 13-count superseding indictment on February 11, 2016 charging 19 individuals with conspiracy to distribute heroin, crack cocaine, and the opiate buprenorphine, known as Suboxone.  The indictment was unsealed today following the arrests of the defendants.

According to U.S. Attorney Peter Smith, the indictment alleges that the following men and women conspired to distribute heroin, crack cocaine, and buprenorphine to a network of drug users and sellers along the Interstate 80 corridor between Bloomsburg and Williamsport from August 14, 2014 through the date of the indictment:

 

Names                         Age                 Town/State

Kalif English                 27                    Philadelphia, PA

Corey Hughes              26                    Williamsport, PA

Sharonda Walker         24                    Upper Darby, PA

Troy Brown                  39                     Yeadon, PA

Shawn Hayman           18                     Williamsport, PA

Donald Avery               21                     Philadelphia, PA

Paris Watkins, Jr.         24                     Philadelphia, PA

Tayza Brown                18                     Williamsport, PA

Naquann Lee               19                     Williamsport, PA

Taiquan Falana            20                     Philadelphia, PA

Keith Harding               35                     Philadelphia, PA

Shawn Gambrell           27                    Philadelphia, PA

Omar Brown                 32                    Philadelphia, PA

Timothy Moses             34                    Philadelphia, PA

Marissa Copen             25                    Linden, PA

Alkeisha Edwards        20                    Philadelphia, PA

Chantel McFarlin         32                    Philadelphia, PA

Lamont Johnson          23                    Philadelphia, PA

Randy Thompson        34                    Philadelphia, PA

In addition to the conspiracy charge, the indictment also charges that the defendants distributed and possessed with intent to distribute multiple bags of heroin and crack cocaine and Suboxone, or buprenorphine, on various dates during the period of the conspiracy.  The indictment also charges Troy Brown with possession of a firearm by a convicted felon.

According to the indictment, during the period from August 2014 to the present, the conspirators obtained heroin and other controlled substances in Philadelphia and transported the drugs to the Bloomsburg and Williamsport areas for distribution and sale.  The indictment alleges that they utilized rental vehicles and motel rooms to facilitate the distribution of heroin and that they conducted drug trafficking activities using cell phones.  In addition, according to the indictment, the conspirators bought and exchanged firearms for heroin and other controlled substances.  In the forfeiture allegation, the indictment identifies cash, firearms, and a property at 810 Rhodes Alley in Williamsport that are subject to forfeiture as criminal proceeds and means of facilitating the drug distribution and conspiracy charges.

The investigation was conducted by the Federal Bureau of Investigation with the assistance of the Pennsylvania State Police, the Old Lycoming Police Department, the Williamsport Bureau of Police, the Lycoming, Northumberland-Montour and Columbia County Drug Task Forces, and the Internal Revenue Service-Criminal Investigation.  Assistant United States Attorney George J. Rocktashel has been assigned to the prosecution of this matter.

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 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 sentencing judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum penalty under federal law is imprisonment for life, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the sentencing 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 yesterday charging Jose Mendoza, age 38, and Edwin Aguilar, age 25, with conspiracy to distribute heroin and the possession of heroin with the intent to distribute. 

According to U.S. Attorney Peter Smith, the indictment alleges that the crimes occurred on August 31, 2015, in Monroe County, Pennsylvania. Both individuals are New York residents    

The investigation was conducted by the Pennsylvania State Police and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  Prosecution is assigned to Assistant U.S. Attorneys John C. Gurganus, Jr. and Phillip Caraballo.   

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.

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

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

The maximum penalty for each offense under federal law is 20 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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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an inmate at a state prison was charged yesterday by a federal grand jury in Scranton with mailing a threatenting letter to a Lancaster County Judge.

According to United States Attorney Peter Smith, the defendant, Joshua Keziah, age 27, an inmate at the State Correctional Institution in Frackville, Schuylkill County, allegedly mailed the letter in October of 2015 from the prison to the Lancaster County Courthouse threatening to kill the President Judge. 

The charge stems from an investigation by the United States Postal Inspection Service and the Lancaster County Police Department.  Assistant United States Attorney Evan Gotlob 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 $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 Luzerne County man was sentenced today by Senior U.S. District Court Judge James M. Munley in Scranton, to 14 years in prison for 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, Desmond Mercer, age 28, previously pleaded guilty to conspiring with others from Luzerne County, New Jersey, and Alabama, to distribute heroin to customers in the Luzerne County area. Mercer in his plea acknowledged distributing more than 700 grams of heroin and playing a leadership role in the conspiracy. During part of the conspiracy, Mercer ran the drug operation while an inmate at the Luzerne County Prison.

Mercer was indicted by a federal grand jury in Scranton in October 2014, as a result of an investigation by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Kingston Police, Plymouth Police and the Luzerne County District Attorney’s Office.  Assistant U.S. Attorney Francis P. Sempa prosecuted the case.

All six defendants charged in the conspiracy have pleaded guilty. Co-defendant Shaliek Stroman, another Luzerne County resident, was sentenced by Judge Munley to more than 12 years in prison for his role in the conspiracy. New Jersey resident Antuan Jamison was sentenced to five years in prison. Corey Wortham, from Alabama, who played a minor role in the conspiracy, was sentenced to 18 months in prison. Co-defendants Shaquan Murphy and Megan Fox are awaiting sentencing in the case.

Judge Munley also ordered Mercer to serve three years on supervised release following his prison sentence. Mercer was also ordered to forfeit more than $7000 in cash and a vehicle seized by agents during the investigation.

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.

 

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Harrisburg man indicted by a federal grand jury in Harrisburg on firearm charges has pleaded guilty today to being a felon illegally in possession of a firearm.

According to United States Attorney Peter Smith, Christopher Fleisher, age 35, was previously charged in an indictment with being a felon in possession of a firearm and with possessing a stolen firearm. The indictment alleged the offenses occurred on June 4, 2015 in Harrisburg and involved a stolen .38 caliber Smith and Wesson handgun. Fleisher agreed to plead guilty to the felon in possession charge pursuant to a plea agreement with the government. 

The case was investigated by the by the Harrisburg Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Harrisburg Police Department, and the Commonwealth of Pennsylvania’s Office of Probation and Parole. Prosecution of the case is assigned to Assistant United States Attorney William A. Behe.

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.

A sentence following a finding of guilt or plea of guilty 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 crime of being a felon in possession of a firearm is 10 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 Waynesboro man has been indicted by a federal grand jury in Harrisburg for the offenses of Sexual Exploitation of a Minor.

According to United States Attorney Peter Smith, Evan Matthew Lawbaugh, age 32, is alleged to have sexually assaulted an infant in December 2015 and recorded and distributed the video depicting such assault. 

This case was investigated by the United States Postal Inspection Service, the Pennsylvania State Police and the Pennsylvania Office of Attorney General.  The case is being prosecuted by Assistant United States Attorney Daryl Bloom. 

If you have any information related to this case or believe you or someone you know may be a victim, you are encouraged to contact Postal Inspector Michael Corricelli of the U.S. Postal Inspection Service at 717-257-5581.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit  www.usdoj.gov/psc and click on the tab "resources."

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

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

The maximum penalty under federal law for this offense is 50 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine.   Count I carries a mandatory term of imprisonment of 25 years’ imprisonment.  Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

 

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SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a South Carolina woman who resided in the Stroudsburg area at the time of the offense, pleaded guilty today before U.S. District Court Judge Malachy E. Mannion in Scranton, to participating in a sex trafficking conspiracy in which young women were threatened, forced and coerced into engaging in prostitution in northeastern Pennsylvania.

According to United States Attorney Peter Smith, the defendant, Selena Bayer-Davis, age 21, admitted to conspiring with others to commit sex trafficking crimes between 2012 and 2014.

Bayer-Davis was indicted along with six other people by a federal grand jury in Scranton in September 2015, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, Maine State Police, the Monroe County District Attorney’s Office, and local police in Monroe County.

The indictment alleges that Bayer-Davis and her co-defendants joined and participated in a street gang known as the Black P-Stones that male gang members were “beaten-in” to the gang and female members were “sexed-in” to the gang.

The indictment further alleges that some females were “sexed-in” to the gang by being forced to engage in sex with male gang members; recruited and coerced to engage in prostitution; advertised as adult escorts on a website; provided with heroin and other drugs; and placed in various are hotels/motels to work as prostitutes. Bayer-Davis admitted that she and others used threats, force, and intimidation to coerce females to engage in prostitution.

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

Bayer-Davis faces a mandatory minimum sentence of 15-years in prison and a possible life sentence for her participation in the sex trafficking of others.

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

 

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Hazelton man has been indicted by a federal grand jury in Scranton on conspiracy and firearm offenses.

According to United States Attorney Peter Smith, the indictment charges Stefan Rease, age 19, with stealing firearms from Bob’s Sporting Goods, a federally licensed firearms dealer in Hazleton, in December 2015. 

The charges stem from a joint investigation between the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Hazelton Police Department which alleges that the defendant and co-conspirators broke into the establishment and stole four firearms.

The investigation was conducted by the ATF, working in conjunction with the Hazelton Police Department. Prosecution is assigned to Assistant United States Attorney Evan Gotlob.

This case was brought as part of the Violent Crime Reduction Partnership (“VRCP”), 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 VRCP 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 all charges under federal law is up to 25 years imprisonment, a term of supervised release following imprisonment, and $750,000 in fines. Under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

 

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former owner of a group of internet sports memorabilia businesses pleaded guilty before United States District Court Judge John E. Jones, III, in Harrisburg, to a $2.5 million dollar fraud scheme.

The Criminal Information was filed in January 2016 pursuant to a plea agreement entered into between the United States and Shores. The agreement, which is subject to the approval by the court, includes joint recommendations relating to loss amounts, forfeiture allegations, and an agreement to pay restitution as determined by the court. Judge Jones ordered a presentence investigation to be completed, and no sentencing date has been scheduled. 

According to United States Attorney Peter Smith, Joshua Aaron Shores, age 41, of Bel Air, Maryland and also of Ocean City, Maryland, pleaded guilty to Wire Fraud based upon Shores’ five-year scheme, between 2008 and 2013, to obtain money and property by dealing in counterfeit and fraudulent sports memorabilia. Shores created, owned, and operated internet businesses under the names of Dealakhan, LLC, Stadium Authentics, Autograph Showcase, Sunset Beach, End Game Sports, Authenticgraph, and others with facilities in York County, Pennsylvania and in Maryland, and used the businesses to traffic in counterfeit and fraudulent sports memorabilia.

Shores represented addresses of mailbox receiving services to customers as his business address, created and registered PayPal and Amazon.com accounts in his name and in the names of others to receive payments from customers, purchased counterfeit sports jerseys in bulk from China and affixed fraudulent autographs to them representing them to be authentic autographs of well-known athletes and sports figures, and also using fake certificates of authenticity.  According to the Criminal Information, Shores unlawfully obtained approximately $2.5 million dollars from buyers of the fraudulent items.

The Criminal Information also seeks forfeiture of real property located in Ocean City, Maryland, U.S. currency in the approximate amount of $140,000, and an additional amount of $26,000 in proceeds related to a Harley-Davidson motorcycle and a sports utility vehicle. The government will also seek restitution for victims of the fraud scheme.

The investigation was conducted by the Federal Bureau of Investigation and Homeland Security Investigations.  The case is being prosecuted by Assistant United States Attorney Michelle Olshefski.

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

The charge of Wire Fraud is punishable by up to 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 U.S. Attorney’s Office for the Middle District of Pennsylvania announced today that a former worker at the DLA Distribution Center Susquehanna in New Cumberland was indicted yesterday by a federal grand jury in Harrisburg on charges he had illegal and unwanted sexual contact with three co-workers.  

According to United States Attorney Peter Smith, Ricardo Reyes, age 35, of Harrisburg, Pennsylvania was an employee at the Defense Distribution Center Susquehanna in New Cumberland and in June of 2015, Reyes allegedly had indecent, unwanted sexual contact with three women, identified by the grand jury only by their initials.

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 a 2 year term of imprisonment on each count, 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 investigated by the DLA Office of Inspector General.  Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.

           

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HARRISBURG-The United States Attorney's Office for the Middle District of Pennsylvania announced that Jesse Brewer, 41, of Jamaica, New York was sentenced today to life imprisonment plus 20 years by the Honorable William W. Caldwell for Brewer’s convictions of robbery and firearms offenses following a September 2015 jury trial.

According to United States Attorney Peter Smith, the jury convicted Brewer of robbing White Jewelers in York, PA with a firearm on July 12, 2012.  Brewer, along with Jamell Smallwood and Timothy Forbes, robbed the store of more than fifty Rolex watches valued at over $500,000.  In the course of the robbery, Brewer shot the owner of the store, permanently disabling him.  Co-defendant Jamell Smallwood of Allentown, Pennsylvania pleaded guilty previously and was sentenced to 17 years for his role in this robbery.  Timothy Forbes of Allentown, Pennsylvania pleaded guilty and is awaiting sentencing. 

This case was investigated by the Federal Bureau of Investigation and the York Area Regional Police Department, with assistance from the Allentown Police Department and the New York City Police Department.  This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.

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HARRISBURG-Ernest G. Fink, Jr., 70, of Orwigsburg, Pennsylvania, the former Chief Operating Officer and co-owner of Schuylkill Products Inc., was sentenced in federal court in Harrisburg, Pennsylvania, today to 41 months’ imprisonment and ordered to pay fines totaling $25,100 for his role in a massive conspiracy to defraud the Disadvantage Enterprise (DBE) program, announced Peter Smith, U.S. Attorney for the Middle District of Pennsylvania. 

According to the U.S. Department of Transportation (USDOT), this scheme, which lasted for over 15 years and involved over $136 million in government contracts in Pennsylvania alone, is the largest reported Disadvantaged Business Enterprise (DBE) fraud in the nation’s history.

On July 14, 2014, Fink was sentenced to 51 months’ imprisonment and ordered to pay fines totaling $25,100 for his role in the offense.      

That sentence was vacated by the U.S. Court of Appeals for the Third Circuit on September 30, 2015 based on the findings of an incorrect calculation of the loss amount under the Sentencing Guidelines.  Today’s sentence was based on a revised loss amount of $1,037, 828.61, which represents the amount of profit diverted from legitimate DBE’s as a result of the scheme.  Previously, the loss was calculated based on the total amount of DBE contracts SPI received as a result of the scheme. 

 The investigation was conducted by the FBI, the U.S. Department of Transportation Inspector General’s Office, the U.S. Department of Labor Inspector General’s Office, and the Criminal Investigation Division of the IRS.  Assistant U.S. Attorney Bruce Brandler handled the prosecution.

Fink was Vice-President, Chief Operating Officer and co- owner of Schuylkill Products Inc. (SPI) and its wholly-owned subsidiary CDS Engineers Inc. (CDS), until April 2009 when SPI was sold.  SPI, based in Cressona, Pennsylvania, manufactured concrete bridge beams used on highway construction projects in Pennsylvania and surrounding states.  CDS was SPI’s erection division and installed SPI’s bridge beams as well as other suppliers’ products on highways in Pennsylvania and surrounding states.  The conspiracy defrauded USDOT, the Pennsylvania Department of Transportation (PennDOT) and the Southeastern Pennsylvania Transportation Authority (SEPTA) in connection with the federal government’s DBE program.

USDOT provides billions of dollars a year to states and municipalities for the construction and maintenance of highways and mass transit systems on the condition that small businesses, owned and operated by disadvantaged individuals, receive a fair share of these federal funds.  In Pennsylvania, PennDOT and SEPTA receive these funds and requires contractors to award a percentage of their subcontracts to eligible DBE’s.

Fink and his co- conspirators executed the scheme by using a small Connecticut highway construction firm known as Marikina Construction Corporation as a front company to obtain these lucrative government contracts.

Marikina was owned by Romeo P. Cruz of West Haven, Connecticut, a naturalized American citizen born in the Philippines.  Marikina was certified by PennDOT and SEPTA as a DBE.  Although Marikina received the DBE contracts on paper, all the work was performed by SPI and CDS personnel, and SPI and CDS received all the profits.  In exchange for letting SPI and CDS use its name, Marikina was paid a small fixed-fee, set by SPI.

SPI and CDS personnel pretended to be Marikina employees by using Marikina business cards, email addresses, stationery, and signature stamps, as well as using magnetic placards and decals bearing the Marikina logo to cover up SPI and CDS logos on SPI and CDS vehicles.

In 2014, four other former executives associated with SPI, CDS and Marikina were sentenced for their roles in the scheme.

Joseph W. Nagle, the former President and co-owner of SPI, was found guilty after a four week trial of 26 charges and was sentenced to 84 months imprisonment and ordered to pay fines totaling $27,600.  Nagle’s conviction was affirmed by the U.S. Court of Appeals for the Third Circuit on September 30, 2015, but his sentence was vacated along with Fink’s for the same reasons.  Nagle has not been resentenced yet.  He has a petition for writ of certiorari pending with the U.S. Supreme Court regarding the Third Circuit’s decision to affirm his conviction.

Romeo P. Cruz, the former owner of Marikina, was sentenced to 33 months’ imprisonment, must pay $119 million in restitution and serve two years’ supervised release.

Timothy G. Hubler, of Ashland, Pennsylvania, CDS’ former Vice-President in charge of field operations, was sentenced to 33 months’ imprisonment, pay $119 million in restitution and serve two years’ supervised release.

Dennis F. Campbell, of Orwigsburg, Pennsylvania, SPI’s former Vice-President in charge of sales and marketing was sentenced to 24 months’ imprisonment, $119 million in restitution and serve two years’ supervised release. 

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HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announces that a York man was sentenced to 10 years in prison today by Chief U.S. District Court Judge Christopher C. Conner in Harrisburg, for drug trafficking.

According to United States Attorney Peter Smith, the defendant, Charlie Rivera, age 26, previously pleaded guilty to possessing cocaine, crack cocaine, heroin, and oxycodone when arrested by the Pennsylvania State Police and York City Police on December 12, 2012. When arrested, he was also found in possession of a firearm.  Rivera was wanted at the time of his arrest for failing to report to prison to serve a seven year sentence in another drug trafficking case.

Rivera was indicted by a federal grand jury in Harrisburg in January 2013, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and the York City Police Department.

Chief Judge Conner also ordered Rivera to be placed on three years of supervised release following his prison sentence.  The court also directed that his sentence be served consecutively to the 7-14 years sentence he is currently serving.

Assistant United States Attorney Michael A. Consiglio 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.

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Diego Rojas, age 42, of Dunmore, Pennsylvania, was indicted on January 19, 2016 by a federal grand jury in Scranton for conspiracy to make false claims against the government.  The case was unsealed on February 19, 2016 following Rojas’ initial appearance before U.S. Magistrate Judge Joseph F. Saporito, Jr.

Rojas owned and operated Dunmore Cash Checking, a check-cashing, tax preparation and money transfer business in Dunmore. In 2013 Rojas deposited more than 350 United States treasury checks, at least 250 of which were identified as Stolen Identitiy Refund Fraud (SIRF) checks.  The approximate value of these checks was $1,600,000.  Each of these checks was deposited into a bank account that Rojas owned under the name of Dunmore Cash Checking between January and November 2013.

According to United States Attorney Smith, the prosecution of fraudulent tax refund schemes that rob tax payers as well as the government is a high priority in this district.

The Department of Justice views the prosecution of Stolen Identity Refund Fraud, or “SIRF,” as vital. These schemes disrupt the orderly administration of the income tax system for hundreds of thousands of law abiding taxpayers nationwide and have cost the United States Treasury billions of dollars. SIRF crimes are often perpetrated by criminal enterprises with key individuals at all stages of the scheme: those who steal Social Security Numbers and other personal identifying information, those who file false returns with the Internal Revenue Service, those, including check cashers, who facilitate obtaining the refunds, and those who promote the schemes. These criminal enterprises exploit the highly automated systems for storing personal information, preparing and filing tax returns electronically, and generating income tax refunds quickly—often in the form of electronic payments.  Everyone with a Social Security Number is potentially vulnerable to having his or her identity stolen.  The IRS estimates that during the 2013 filing season alone, over 5 million tax returns were filed using stolen identities, claiming approximately $30 billion in refunds. 

The charges in the present case are the result of ongoing investigations by the Scranton Office of the Internal Revenue Service, Criminal Investigation, with assistance from the Pennsylvania State Police, the Hazelton, Taylor, Dickson City, Dunmore and Olyphant Police Departments, and the Lackawanna and Luzerne County District Attorneys’ Offices.  The case is assigned to Assistant United States Attorney Evan Gotlob for prosecution.

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 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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HARRISBURG  - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Navy Contractor has pleaded guilty to submitting a False Statement to the government in connection with $4.4  million contract to renovate warehouses at the Naval Support Facility in Mechanicsburg, PA .

According to United States Attorney Peter Smith, Andrew Persuad, age 43, of Mt Holly Springs, Pennsylvania, was indicted in October 2015.  Persuad pleaded guilty to one count of false statements before Senior U.S. District Court Judge Sylvia Rambo.

The Indictment alleged that Persaud was the President and Corporate Director of Persuad Companies, Inc., a Virginia and Maryland based construction company that entered into a $4.4 million contract in 2011 to renovate warehouses at the Naval Support Activity (NSA) facility in Mechanicsburg. 

Persuad hired approximately 17 sub-contractors to work on the project which began in May of 2012.       In June and July of 2012 Persuad submitted invoices to the Navy for progress payments.  In the documents Persuad attached signed Certifications stating that all of his subcontractors had been paid for their work. Relying on Persuad’s representations, the Navy paid Persaud $1,206,470 between June and August of 2012.

However, by September of 2012 most of the subcontractors had walked off the job site and the Navy terminated Persaud’s contract after it learned, contrary to Persuad’s Certifications, that none of the subcontractors had received any payment for their work on the project.

 The Navy had required Persuad to purchase a materials/labor bond prior to his first contract draw, the premium for which cost Persuad $53,539.  As a result, the subcontractors filed claims and eventually received payments from the bond carrier for their work totaling $1,281,753.

 Under the terms of a plea agreement with the government Persaud has agreed that the loss suffered by the victims in the case is $1,206,470.  Persaud has also agreed to make restitution in this amount and has agreed to forfeit the sum of  $1,206,470.

The offense is punishable by a maximum of 5 years imprisonment and a $250,000 fine.  No date has been set as yet for sentencing.

The case was investigated by the Inspector General’s Offices of the U.S. Navy and Department of Defense, and is being prosecuted by Assistant U.S. 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.

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 returned an indictment on February 3, 2016 charging Dane Burnell Merritt, age 52, with possession of a firearm after having been previously convicted of a felony offense. 

According to United States Attorney Peter Smith, the indictment was unsealed February 19, 2016 following Merritt’s initial appearance before U.S. Chief Magistrate Judge Martin C. Carlson. The case arose as a result of an arrest of Merritt by Harrisburg Police in October of 2015.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Police Department.  Prosecution has been assigned to Assistant U.S. Attorney Chelsea Schinnour. 

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

 

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Wilkes-Barre resident pleaded guilty yesterday in Scranton, before United States District Judge James M. Munley, to failing to comply with sex offender registration requirements.

According to United States Attorney Peter Smith, Joseph Brant, age 56, pleaded guilty to being a person required to comply with the Sex Offender Registration and Notification Act by reason of a sexual abuse conviction under the laws of the State of New York, but who failed to do so upon establishing a residence in Pennsylvania. 

Brant was indicted by a federal grand jury in July 2015.  The government filed a plea agreement in the case. The indictment charged that Brant established a residence in Wilkes-Barre, but failed to register or update his sex offender registration information in Pennsylvania as required by the law. 

The charges are the result of an investigation by the Scranton and New York offices of the United States Marshals Service. The case is being prosecuted by Assistant United States Attorney Michelle Olshefski.

The maximum possible penalties for the violation include 10 years’ incarceration, 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 Treiu Thuy Duong, age 37, of Sarasota, Florida, and Maura Kathio, age 27, of Yatesville, Pennsylvania, were sentenced today by U.S. District Court Judge Malachy E. Mannion in Scranton, for drug related offenses. 

According to United States Attorney Peter Smith, Duong, who resided in Texas at the time of her arrest, was sentenced today to serve 70 months in prison and ordered to forfeit her interest in more than $750,000 in assets for her role in a conspiracy to distribute and possess with intent to distribute alpha-pvp, commonly known as “bath salts.”

Duong admitted to conspiring with others to distribute alpha-pvp to customers in at least 32 states, including Pennsylvania, over various web sites during 2011 through March 2014.

Treiu Thuy Duong was indicted by a federal grand jury in March 2014.

Judge Mannion ordered the defendant to forfeit to the government her interest in a residence in Texas valued at approximately $300,000, coins valued at more than $260,000, four bank accounts containing over $200,000, two vehicles, over $7000 in cash and more than $17,000 in uncashed money orders, and two firearms. Duong must also spend three years on supervised release following her prison sentence.

Kathio was sentenced to 18 months in prison for her role in a drug conspiracy that distributed alpha-pvp in 2012-2013 in the Luzerne County area. Kathio, previously pleaded guilty to conspiracy to distribute alpha-pvp. Kathio admitted to participating in the West Pittston-based drug conspiracy and to distributing 150 grams of alpha-pvp, a controlled substance analogue.

Kathio was indicted by a federal grand jury in Scranton in August 2014.

Judge Mannion also ordered Kathio to be placed on three years of supervised release following her prison sentence.

Eleven persons have been charged as participants in the conspiracy which involved wholesale suppliers of alpha-pvp based in Texas, and retail distributors of the drug in Luzerne County. All eleven suspects have entered guilty pleas in the case.

The investigation was conducted by agents of the Department of Homeland Security, the Drug Enforcement Administration, United States Postal Inspectors, the Pennsylvania State Police, and West Pittston Police. 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 Ashley Gries, age 21, of Shippensburg, Pennsylvania, was sentenced yesterday by U.S. District Court Chief Judge Christopher C. Conner to 120 months incarceration for heroin trafficking that resulted in the death of a local young man.

Gries pleaded guilty on August 10, 2015 to conspiring with co-defendants Danny Forrester, Gabriel Stouffer, and Eugene Stallings, Jr. to distribute heroin that resulted in the death of Kyle Golter, a 21 year old resident of Newburg, Pennsylvania.  Gries has been detained since her arrest on March 5, 2014.  Forrester, and Stouffer have pleaded guilty for their roles in this drug trafficking organization.  Stallings was convicted on February 5, 2016 after a jury trial.  Chief Judge Conner previously sentenced Forrester to 180 months incarceration.  Stouffer and Stallings have not yet been sentenced.    

According to United States Attorney Peter Smith, Gries, Forrester and Stouffer traveled from the Shippensburg area to purchase heroin from Stallings in Baltimore, Maryland, and then engaged in heroin trafficking in Franklin and Cumberland County.  Heroin obtained from Stallings led to the death of 21 year old Kyle Golter in Newburg on February 7, 2014.  Franklin County Coroner Jeffrey R. Conner determined that the cause of Golter’s death was the result of heroin toxicity. 

This case was investigated by the Drug Enforcement Administration, the Pennsylvania State Police, the Shippensburg Police Department, and the Cumberland County Drug Task Force.  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 David Auman, age 37, of Liverpool, was sentenced yesterday to 77 months in prison by U.S. District Court Judge John E. Jones, III, after pleading guilty to being a convicted felon in possession of a firearm.

According to U.S. Attorney Peter Smith, Auman was indicted by a federal grand jury in Harrisburg in May 2015, as a result of an investigation by the Harrisburg Police Department, the Pennsylvania State Police and the Harrisburg Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney William A. Behe prosecuted the case.

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HARRISBURG - The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that a racing official at Penn National Race track in Grantville, was sentenced to 4 months in prison today by Chief U.S. District Court Judge Christopher C. Conner.  

According to United States Attorney Peter Smith, Craig Lytel, age 61, of Hershey, Pennsylvania was an employee of the Hollywood Casino at Penn National Race Track (Penn National) who served as a racing official at the track.  Lytel pled guilty in September 2015 to wire fraud for accepting money and other gratuities in exchange for providing inside information to trainers on which races to enter their horses in order to have a better chance at winning. On one occasion Lytel was the recipient of an interstate wire transfer of $1,000 from a bank in Kentucky to Lytel’s bank in Pennsylvania in exchange for providing inside information on the makeup of horse races at Penn National. Lytel admitted to accepting cash, dinners, gift cards and golf outings in exchange for the information thereby depriving his employer of his honest service and defrauding other horsemen and the betting public. The identities of the trainers who paid Lytel for the information was not disclosed by the government as the investigation is ongoing.

Lytel was sentenced to serve 4 months in a federal prison and was ordered to surrender at the institution selected by the Bureau of Prisons by 10:00 a.m. on March 23, 2016.

The case was investigated by the Harrisburg Resident Office of the Federal Bureau of Investigation and the Pennsylvania Horse Racing Commission as part of an ongoing investigation of racing at Penn National.

Prosecution of the case was handled by Assistant United States Attorney William A. Behe.

           

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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Almuntasser “Alex” Hbaiu, age 34, and Michael Kang, age 46, both of Los Angeles, California, were sentenced on February 11, 2016 by U.S. District Court for the Central District of California Judge John A. Kronstadt

Judge Kronstadt sentenced Hbaiu to 24 months in prison for distribution of misbranded drugs, and structuring financial transactions with proceeds from criminal activity of more than $10,000.  Hbaiu was ordered to pay a $60,000 fine and to forfeit his interest in the house at 1806 Meadow Ridge Drive, Hummelstown, Pennsylvania, $20,000 cash and the contents of two bank accounts.  Hbaiu also agreed to the destruction of all seized sexual enhancement supplements.

Kang was sentenced to one month in prison, five months home confinement and a $5,000 fine for distribution of misbranded drugs.

Criminal charges were originally brought against Hbaiu in the Middle District of Pennsylvania in March 2013 before U.S. District Court Judge Sylvia H. Rambo and were later transferred to California.

According to the United States Attorney’ Office, Hbaiu was involved in companies that sold drugs including “Mojo Nights,” “Libigrow” and “Blue Diamond” marketed as “all natural” versions of drugs such as Viagra. In fact, the drugs contained sildenafil citrate, the active ingredient in Viagra, and Tadalafil, the active ingredient in Cialis. The misbranded “performance enhancers” products were sold on internet web sites as well as physical locations, including one in York County. 

Kang headed companies in the Los Angeles area that supplied companies owned by Hbaiu with the misbranded dietary supplements and their ingredients.

Also charged with criminal conspiracy were Ahed Hbaiu, age 32, of Etters in York County, Pennsylvania, Gil Conrad Dizon, age 28, of Los Angeles, and Christopher Mouzon, age 27, of Los Angeles.  In July 2015, Mouzon was sentenced by Judge Rambo in Harrisburg to six months in prison and four months home confinement for testifying falsely before the grand jury. Ahed Hbaiu reportedly left the country and Dizon is purportedly in the Philippines. Warrants have been issued for their arrest. 

Hbaiu was charged with conspiring to avoid the requirement that banks report cash transactions of $10,000 or more by “structuring” deposits made into various bank accounts.  Hbaiu made cash deposits of less than $10,000 in accounts of family members and associates and then transferred the money to accounts controlled by him. Some of the funds “structured” in this fashion were used to pay off the mortgage on a residence at 1806 Meadow Ridge Drive, Hummelstown, which was eventually titled to Alex Hbaiu.  Other structured funds were used to fund the business operations of Caliber Investments, 1 Stop Sunoco Gas Station and Eclipse Builders, all located in Etters, York County.

“U.S. consumers rely on FDA oversight to ensure that dietary supplements contain only those ingredients that are disclosed on the label, and certainly to not contain the active ingredients in prescription drugs. When individuals manufacture and distribute supplements with undeclared and potentially dangerous ingredients, they place the health of consumers at serious risk,” said Glen A. McElravy, Acting Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office.  “We will continue to direct our resources to bringing to justice those who threaten the public health.”

“The structuring and concealment of monies derived from illegal activities is what enables criminal conduct  such as the distribution of misbranded drugs to flourish,” said Internal Revenue Service, Special Agent in Charge Akeia Conner. “The Internal Revenue Service, Criminal Investigation is committed to enforcing the laws that insure individuals do not use our financial institutions to conceal the proceeds of their crimes.”

This case was investigated by the Internal Revenue Service, Criminal Investigation, The Food and Drug Administration Office of Criminal Investigations, and the Drug Enforcement Administration.  The case was prosecuted by Assistant U.S. Attorney Christy H. Fawcett.

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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 Melton Minto of making a false statement in a passport application, falsely claiming United States citizenship, and aggravated identity theft.    

According to U.S. Attorney Peter Smith, Minto, a 46 year old Jamaican national, presented a fraudulent driver’s license and birth certificate in applying for a U.S. Passport in Harrisburg in 2011. 

The matter was investigated by the U.S. Department of State Diplomatic Security Service and the case is being prosecuted by Assistant U.S. Attorney Scott R. Ford.   

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 under federal law is 45 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 Harrisburg man has pleaded guilty to being a felon in possession of a firearm.  Shaun L. Graves, age 33, entered a guilty plea today to the charge before Senior U.S. District Court Judge William Caldwell in Harrisburg.  The plea was conditional so that Graves can appeal Judge Caldwell’s December 2, 2015 denial of his motion to suppress the firearm to the U.S. Court of Appeals.  

The Indictment stems from an October 16, 2014, incident in South Harrisburg in which Graves was arrested by Harrisburg police officers and was found to be in possession of a loaded Bersa .380 caliber semi-automatic pistol with an obliterated serial number.

The case was investigated by the Harrisburg Office of the Bureau of Alcohol, Tobacco,  Firearms and Explosives and is being prosecuted by Assistant US Attorney Kim Douglas Daniel.

This case is part of the Violent Crime Reduction Partnership (“VCRP”), a districtwide 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.

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 felon in possession charge is life imprisonment. The maximum term of imprisonment for the obliterated serial number charge is five years imprisonment.

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

 

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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Schuylkill County employee, Virginia G. Kunigonis, age 54, of Pottsville, Pennsylvania, was sentenced to 12 months imprisonment by U.S. District Judge William W. Caldwell to embezzling $452,186 from the Schuylkill County Conservation District between 2007 and 2014.

Kunigonis pled guilty in October 2015 before Judge Caldwell to an Information charging her with Theft From Programs Receiving Federal Funds pursuant to a plea agreement with the government.  The Schuylkill County Conservation District receives in excess of $10,000 in federal grant monies each year. 

According to United States Attorney Peter Smith, the Information alleged Kunigonis forged 437 Conservation District checks totaling $410,435 payable to herself between October of 2007 and May of 2014.  The Information also alleged Kunigonis charged $41,751 in personal expenses against a Conservation District credit card during that same time period.  Evidence elicited during the sentencing hearing was that the embezzlement scheme was undetected for so long because of the District’s failure to implement adequate internal controls and that Kunigonis used the stolen money, in part, to pay down more than $135,000 in credit card debt.

In addition to her 12 month sentence, Judge Caldwell ordered Kunigonis to pay $452,186 restitution consisting of $3,122 to Schuylkill County and $449,064 to Pennsylvania Counties Risk Pool (PCoRP), Schuylkill County’s bonding company.  Judge Caldwell also directed the forfeiture of Kunigonis’ interest in her Pottsville residence, and her interest in her Schuylkill County retirement account.

Kunigonis began working as an administrative assistant for the Schuylkill County Conservation District in approximately 2002.  Prior to that she worked in various capacities for Schuylkill County since 1986.  

The case was investigated by the Scranton Office of the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. 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.

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 Dr. Robert Gorrell, who formerly worked for Wayne Memorial Hospital in Honesdale, Pennsylvania, was charged with evading payment of his income taxes, and with filing a false document with the Internal Revenue Service (IRS).  The indictment was returned by a federal grand jury in Scranton on December 8, 2015, but remained sealed until Dr. Gorrell was found and arrested in Texas on February 11, 2016.

 

According to United States Attorney Peter Smith, the indictment charges Gorrell, age 65, with engaging in a years-long pattern of activities to avoid paying over $148,000 in tax deficiencies. The grand jury charged Gorrell with, among other things, causing his tax preparer to file Form 1040 tax returns and Form 433-A collection statements that falsely claimed Gorrell paid for his own medical malpractice insurance.  Gorrell also allegedly lied to IRS agents and submitted forged documentation to the IRS in support of his claims.  The activities occurred between October 2006 and April 2012.

The indictment also charges Gorrell with causing his tax preparer to file a Form 433-A collection statement with the IRS that falsely claimed he paid for his own medical malpractice insurance, failed to report the extent of his bank accounts, and failed to report his ownership of a Porsche Cayenne.

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

 

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kurt Smith, age 50, formerly of Wyalusing, Pennsylvania, was sentenced today and Patrick Russell, age 50, of LeRaysville, Pennsylvania, was sentenced February 10, 2016, by U.S. District Court Judge Edwin M. Kosik in Scranton, for drug related offenses.

According to United States Attorney Peter Smith, Judge Kosik sentenced Smith to 24 months imprisonment for conspiracy to distribute and possession with intent to distribute Alpha-PVP, commonly known as “bath salts.”  Smith imported two kilograms of the substance from sources of supply in China by placing orders over the internet.  The bath salts were then distributed by Smith and other individuals in Bradford County.  Smith has since moved to Kentucky.

Smith was initially charged in a Criminal Information on August 25, 2015 and pled guilty on September 8, 2015.

Russell was sentenced to 31 months imprisonment for his involvement in the conspiracy to distribute and possession with intent to distribute “bath salts.” Russell was directly involved in the importation and distribution of at least 500 grams of bath salts.

Russell was initially charged in an Indictment on December 10, 2013 and pled guilty on April 14, 2015.

The cases were investigated by Drug Enforcement Administration (DEA), the Pennsylvania State Police, and the Athens Borough Police Department and were prosecuted by Assistant U.S. Attorney Todd K. Hinkley.

 

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SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that on February 9, 2016, a federal grand jury in Scranton indicted a 55-year-old Dominican national who resides in Hazleton for distributing heroin on two occasions between December 2015 and January 2016.

According to United States Attorney Peter Smith, the two-count indictment alleges that Juan Elvis Monsanto, who used the street name “Elvi,” distributed heroin on December 15, 2015, and January 28, 2016.  

The indictment was unsealed yesterday following Monsanto’s arrest. He was arraigned late yesterday by U.S. Magistrate Judge Karoline Mehalchick in Scranton and was ordered to be detained in prison pending trial in the case.

The charges against Monsanto resulted from an investigation by the Drug Enforcement Administration (DEA) and Hazleton Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.

Monsanto faces up to 20 years in prison for each charge.

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 today that a Wilkes-Barre man was indicted yesterday by a federal grand jury in Scranton on heroin, hydrocodone and cocaine possession, and firearm offenses.

According to United States Attorney Peter Smith, the indictment charges Andre Allen, age 25, with possessing with intent to distribute heroin, hydrocodone and cocaine in Wilkes-Barre in September 2015.  The indictment also charges Allen with possessing multiple firearms in furtherance of his heroin, hydrocodone and cocaine trafficking activities.  

The charges stem from a joint investigation between the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Wilkes-Barre Police Department in which the Wilkes-Barre Police Department executed a search warrant at Allen’s residence in Wilkes-Barre.  From the residence, the police recovered four firearms, two of which were stolen, over 200 grams of marijuana, 31 grams of heroin, 33 grams of cocaine and other drug paraphernalia.

The investigation of these cases was conducted by the ATF, working in conjunction with the Wilkes-Barre Police Department. The prosecution is assigned to Assistant United States Attorney Evan Gotlob.

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

Allen faces a minimum of 5 years and up to a lifetime term of incarceration as well as fines totaling $1,500,000. 

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.

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

 

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SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 25-year-old Shenandoah resident connected to a large-scale heroin trafficking ring that operated in Schuylkill County during 2012 through September 2015, pleaded guilty today before Senior U.S. District Court Judge James M. Munley in Scranton.

According to United States Attorney Peter Smith, Derek Yashinsky pleaded guilty to conspiracy to distribute more than 100 grams of heroin. Yashinsky admitted to distributing heroin and transporting other drug traffickers to Patterson, New Jersey, and Hazleton to obtain large quantities of heroin on multiple occasions. Yashinsky was involved in transporting and distributing between 400 grams and 700 grams of heroin, which is equivalent to between than 13,000 and 23,000 retail bags of heroin.

Yashinsky was indicted by a federal grand jury sitting in Scranton in September 2015, as a result of an investigation by agents of the Federal Bureau of Investigation, investigators from the Pennsylvania State Police, and local police in Schuylkill County.

Judge Munley ordered a presentence investigation to be completed, and scheduled sentencing for May 11, 2016. Yashinsky faces a mandatory minimum sentence of five years in prison and a potential maximum sentence of 40 years in prison.

Four co-defendants—Rhashean Strange, Carlos Correa, Nicolai Varga, and Paul Jadus—have also pleaded guilty to participating in the drug conspiracy. Three other co-defendants are awaiting trial in the case.

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

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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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Eugene Stallings, Jr., age 28, of Baltimore, Maryland, was convicted on February 5, 2016 of heroin trafficking that resulted in death and other charges after a 4-day jury trial in Harrisburg before Chief U.S. District Court Judge Christopher C. Conner.

According to United States Attorney Peter Smith, the jury returned with a guilty verdict to all five counts on the indictment relating to Stallings after less than 2 hours of deliberation.  The jury convicted Stallings, aka Bruno, of conspiring to distribute and for distributing more than 100 grams of heroin to Ashley Gries, Danny Forrester, Gabriel Stouffer, and Michael DeCarlo between October 2013 and April 2014.  Gries, Forrester and Stouffer traveled from the Shippensburg, Pennsylvania area to purchase heroin from Stallings in Baltimore, and then engaged in heroin trafficking in the Franklin and Cumberland County areas.  Gries, Forrester, Stouffer and DeCarlo have pleaded guilty for the roles in the drug trafficking organization. 

According to the evidence presented at trial, heroin obtained from Stallings led to the death of 21 year old Kyle Golter in Shippensburg, on February 7, 2014.  Franklin County Coroner Jeffrey R. Conner determined that Golter’s death was the result of heroin toxicity.  The jury also convicted Stallings of conspiring to distribute and for distributing heroin that resulted in Golter’s death. This charge carries an enhanced penalty requiring a mandatory minimum 20 years’ imprisonment.

U.S. Attorney Smith stated that, “Golter’s death was a senseless tragedy and the serious penalties that the defendant faces reflect the dangerous consequences of trafficking heroin.”

Chief Judge Conner has not scheduled a sentencing date for Stallings, but Stallings will remain detained pending a sentencing hearing.

This case was investigated by the Drug Enforcement Administration, the Pennsylvania State Police, the Shippensburg Police Department, and the Cumberland County Drug Task Force.  The case is being prosecuted by Assistant United States Attorneys Meredith A. Taylor and Scott Ford.

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.

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.

 

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HARRISBURG  - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the former Chief Executive Officer-Manager of the HD York Federal Credit Union in York, Pennsylvania has been charged with embezzlement from the Credit Union and with evading federal income taxes.

According to U.S. Attorney Peter Smith, Sherry Garner, age 53, of Red Lion, Pennsylvania, is charged in a Criminal Information with bank larceny. The Information alleges that Garner embezzled $252,106 from the 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 that the total tax loss of $62,704 on her unreported income. Garner has agreed to make restitution to both the credit union and the IRS as ordered by the Court.

HD York Federal Credit Union merged with White Rose Credit Union on May 30, 2014.

No date has yet been scheduled for Garner’s arraignment on the charges. The charges in the Information carry an aggregate maximum term of 15 years imprisonment and $350,000 fine.

The case was investigated by the Harrisburg Offices of the Internal Revenue Service and the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. 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 for Health Care Fraud is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum term of imprisonment for  False Statements in Health Care Matters is 5 years imprisonment.

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

 

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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Bartonsville man was sentenced today to 97 months in prison by United States District Court Judge Sylvia H. Rambo in Harrisburg to a charge stemming from an investment fraud.

According to United States Attorney Peter Smith, Joseph Gallardo, age 48, Bartonsville,  previously plead guilty to mail fraud in September 2014.  Gallardo was a registered investment advisor with investment firms in New Jersey and Pennsylvania. He persuaded clients with those investment firms to invest in Blue Meadow Group LLL, his personal real estate venture. Victims were guaranteed attractive rates of return and were falsely told that their money was invested in and protected by real estate. Contrary to what was represented to the victims, Blue Meadow Group was not a real estate investment trust and its securities were not registered with the Pennsylvania and New Jersey Securities Commissions.

In fact, victims’ monies were used to purchase a gas station and convenience store and to fund Gallardo’s on-line day trading account that lost a substantial amount of money.  Investigators determined that victims of Gallardo’s criminal activity lost approximately $1.8 million.

During July 2009, the Pennsylvania Securities Commission issued a cease and desist order ordering Gallardo to stop offering or selling investment properties in Pennsylvania. After the cease and desist order, Gallardo solicited additional victims who invested money with him.

Gallardo was indicted by a federal grand jury in September 2014 as a result of an investigation by the United States Postal Inspection Service.  Assistant U.S. Attorney Christy H. Fawcett prosecuted the case.     

Judge Rambo ordered the defendant to pay restitution in the amount of $1,792,170 to victims and to serve a three-year term of supervised release following his incarceration.

 

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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Fulton Bank employee has been charged with stealing $13,325 from Fulton Bank in York, Pennsylvania 

According to United States Attorney Peter Smith, Donna S. Miller, age 45 of Felton, is charged with bank larceny in a one count Information filed in U.S. District Court in Harrisburg.

Miller allegedly stole $13, 325 from the Fulton Bank, S. Queen Street branch in York between September 2013 and November 2014. Miller was terminated in November 2014 and has made full restitution to Fulton Bank.

The government also filed a plea agreement with the defendant which is subject to approval by the court. No date has yet been scheduled for Miller’s guilty plea. 

The case was investigated by the Harrisburg Office of the Federal Bureau of Investigation and 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 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 that two northeast Pennsylvania check cashers have been charged as a result of their participation in separate stolen identity refund fraud schemes. 

Jose Cabreja, age 30, of Scranton, and Franklyn Nunez, age 40, of Hazleton, were charged in one-count criminal informations filed today in federal court in Scranton with conspiracy to make false claims against the government. 

According to United States Attorney Peter Smith, the Cabreja Information charges that Cabreja operated Frank Check Casher, Inc. in Olyphant, and that his co-conspirators used the identities of unknowing third parties to prepare and file fraudulent federal income tax returns.  The Information alleges that Cabreja deposited and cashed fraudulently obtained tax refund checks totaling $876,731 between June and August 2013. 

The Nunez Information charges that he operated The Closet Multi-Service, LLC in Hazleton, and alleges that co-conspirators of Nunez used the identities of unknowing third parties to prepare and file fraudulent federal income tax returns.  The Information also alleges that Nunez deposited and cashed fraudulently obtained tax refund checks totaling $358,525 between June and September 2011.

The government also filed a plea agreement in each case which is subject to approval by the court.

According to United States Attorney Smith, the prosecution of fraudulent tax refund schemes that rob tax payers as well as the government is a high priority in this district.

The Department of Justice views the prosecution of Stolen Identity Refund Fraud, or “SIRF,” as vital. These schemes disrupt the orderly administration of the income tax system for hundreds of thousands of law abiding taxpayers nationwide and have cost the United States Treasury billions of dollars. SIRF crimes are often perpetrated by criminal enterprises with key individuals at all stages of the scheme: those who steal Social Security Numbers and other personal identifying information, those who file false returns with the Internal Revenue Service, those, including check cashers, who facilitate obtaining the refunds, and those who promote the schemes. These criminal enterprises exploit the highly automated systems for storing personal information, preparing and filing tax returns electronically, and generating income tax refunds quickly—often in the form of electronic payments.  Everyone with a Social Security Number is potentially vulnerable to having his or her identity stolen.  The IRS estimates that during the 2013 filing season alone, over 5 million tax returns were filed using stolen identities, claiming approximately $30 billion in refunds. 

The charges in the present cases are the result of ongoing investigations by the Scranton Office of the Internal Revenue Service, Criminal Investigation, with assistance from the Pennsylvania State Police, the Hazelton, Taylor, Dickson City, Dunmore and Olyphant Police Departments, and the Lackawanna and Luzerne County District Attorneys’ Offices.  The cases are assigned to Assistant United States Attorney William Houser for prosecution.

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.

 

# # #

SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 27-year-old Shenandoah resident connected to a large-scale heroin trafficking ring that operated in Schuylkill County during 2012 through September 2015, pleaded guilty yesterday before Senior U.S. District Court Judge James M. Munley in Scranton.

According to United States Attorney Peter Smith, Nicolai Varga pleaded guilty to conspiracy to distribute more than 100 grams of heroin. Varga admitted to distributing heroin and transporting other drug traffickers to New York, Patterson, New Jersey, and Hazleton to obtain large quantities of heroin on multiple occasions. Varga was involved in transporting and distributing between 400 grams and 700 grams of heroin, which is equivalent to between than 13,000 and 23,000 retail bags of heroin.

Varga was indicted by a federal grand jury in Scranton in September 2015, as a result of an investigation by agents of the Federal Bureau of Investigation, investigators from the Pennsylvania State Police, and local police in Schuylkill County.

Judge Munley ordered a presentence investigation to be completed, and scheduled sentencing for April 28, 2016.  Varga faces a mandatory minimum sentence of five years in prison and a potential maximum sentence of 40 years in prison.

Three co-defendants—Rhashean Strange, Carlos Correa, and Paul Jadus—have also pleaded guilty to participating in the drug conspiracy. Four other co-defendants are awaiting trial in the case.

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

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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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an Adams County man was indicted by a federal grand jury in Harrisburg on January 20, 2016 for receipt and possession of child pornography.

According to United States Attorney Peter Smith, the grand jury alleges that Earl Greg Walker, age 53, received and possessed child pornography at his home in Adams County in 2011-2012.  The indictment was unsealed today following Walker’s arrest on January 29, 2016.  Walker is due to appear before U.S. Magistrate Judge Susan E. Schwab today for his initial appearance.

This case was investigated by Homeland Security Investigations and the Pennsylvania State Police and is being 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."

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 30 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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WILLIAMSPORT.  The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Williamsport man was indicted yesterday by a federal grand jury for narcotics trafficking and possessing firearms in furtherance of his drug trade.

According to United States Attorney Peter Smith, the grand jury alleges that Kalonji Jones, age 37, trafficked a substantial quantity of heroin in Williamsport and the surrounding area. A search of his premises at the time of his arrest yielded 110 packets of heroin packaged for individual sale to users and additional materials for the packaging and distribution of heroin including empty glassine packets, a grinder and scale.  Also recovered at the time of the Defendant’s arrest were 3 unlicensed handguns that he is prohibited from possessing under Federal law.  These items were found in a 2014 investigation by the Williamsport Police Department.

The charges stem from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Williamsport Bureau of Police, and the Lycoming County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Geoffrey MacArthur.

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

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 30 years to life imprisonment, a term of 6 years’ supervised release following imprisonment, and a $2 million dollar 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 35-year-old Kingston resident was sentenced to five years in prison today by U.S. District Court Judge Malachy E. Mannion in Scranton, for his role in a drug conspiracy that distributed alpha-pvp (commonly known as “bath salts”) in 2012-2013 in the Luzerne County area.

According to United States Attorney Peter Smith, the defendant, Frank Brennan, previously pleaded guilty to conspiracy to distribute alpha-pvp. Brennan admitted to participating in the West Pittston-based drug conspiracy and to distributing a kilogram of alpha-pvp, a controlled substance analogue.

Brennan was indicted by a federal grand jury in Scranton in August 2014, as a result of an investigation by agents of the Department of Homeland Security, the Drug Enforcement Administration, United States Postal Inspectors, the Pennsylvania State Police, and West Pittston Police.

Eleven persons have been charged as participants in the conspiracy which involved wholesale suppliers of alpha-pvp based in Texas, and retail distributors of the drug in Luzerne County. All eleven suspects have entered guilty pleas in the case.

Judge Mannion also ordered Brennan to be placed on three years of supervised release following his prison sentence.  

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 a former owner of a group of internet sports memorabilia businesses has been charged in connection with a $2.5 million dollar fraud scheme.

According to United States Attorney Peter Smith, Joshua Aaron Shores, age 41, of Bel Air, Maryland and also of Ocean City, Maryland, is charged with Wire Fraud in a Criminal Information filed today in the United States District Court in Scranton.

The charge is based upon Shores’ alleged five-year scheme, between 2008 and 2013, to obtain money and property by dealing in counterfeit and fraudulent sports memorabilia. Shores allegedly created, owned, and operated internet businesses under the names of Dealakhan, LLC, Stadium Authentics, Autograph Showcase, Sunset Beach, End Game Sports, Authenticgraph, and others with facilities in York County, Pennsylvania and in Maryland, and used the businesses to traffic in counterfeit and fraudulent sports memorabilia.

Shores allegedly represented addresses of mailbox receiving services to customers as his business address, created and registered PayPal and Amazon.com accounts in his name and in the names of others to receive payments from customers, purchased counterfeit sports jerseys in bulk from China and affixed fraudulent autographs to them representing them to be authentic autographs of well-known athletes and sports figures, and also using fake certificates of authenticity.  According to the Criminal Information, Shores unlawfully obtained approximately $2.5 million dollars from buyers of the fraudulent items.

The Criminal Information also seeks forfeiture of real property located in Ocean City, Maryland, U.S. currency in the approximate amount of $140,000, and an additional amount of $26,000 in proceeds related to a Harley-Davidson motorcycle and a sports utility vehicle. The government will also seek restitution for victims of the fraud scheme.

The Criminal Information was filed pursuant to a plea agreement entered into between the United States and Shores. The agreement, which is subject to the approval by the court, includes joint recommendations relating to loss amounts, forfeiture allegations, and an agreement to pay restitution as determined by the court.

The investigation was conducted by the Federal Bureau of Investigation and Homeland Security Investigations. The case is being prosecuted by 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 guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The charge of Wire Fraud is punishable by up to 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 U.S. Attorney's Office for the Middle District of Pennsylvania announced today that Susan C. Kevra-Shiner, age 46, of Clarks Summit, Pennsylvania, was convicted yesterday of seven counts of Mail Fraud in connection with the operation of her abstract and title insurance company. The three-day jury trial of Kevra-Shiner was held before U.S. District Court Judge Edwin M. Kosik in Scranton.

According to U.S. Attorney Peter Smith, the jury returned with the verdict of guilty after approximately seven hours of deliberation. 

In 2009, Kevra-Shiner was an attorney who also owned and operated GK Abstract Co., Inc., an abstract and title insurance company located in Avoca, Pennsylvania. As part of her legal practice, Kevra-Shiner handled real estate transactions, and, starting in 2003, she began issuing title insurance policies as an authorized agent of the Stewart Title Guaranty Company, a title insurance underwriter based in Texas. 

Kevra-Shiner’s agency agreement with Stewart was terminated on September 23, 2008, but the defendant nevertheless continued to issue numerous title insurance policies to her clients after that date.  As a result, she defrauded at least sixty-nine (69) homeowners and/or the associated lenders of at least $69,000 in title insurance premiums. The policies Kevra-Shiner sold her clients were invalid and she never remitted any portion of the premiums she received to the underwriter.

On February 28, 2013, the Pennsylvania Office of Disciplinary Counsel suspended Kevra-Shiner's law license for four years as a result of these activities.

The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorneys Peter Hobart and Evan Gotlob.                  

           

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